Professional Documents
Culture Documents
DIFFERENCE B/W
Advertisement Publicity
• Great control over ads • No control
• Low credibility(information) • High credibility
• High cost for ads in media
• High flexibility • Low cost
• Time is specifiable • Low flexibility
• Measurable the impact • Time is tentative for information
• Not measurable
• D – Desire: convince customers that they want and desire the product or service and that it
will satisfy their needs. Explain the features of the product or service and the related
benefits and demonstrate how the benefits fulfill the need.
• A – Action: lead customers towards taking action and/or purchasing. Now that you've
created the desire to make a purchase, the final step is to persuade the prospects to take
immediate action. In a one-on-one sales process, this is the time to ask for the sale. In the
advertising world, techniques involve creating sense of urgency by extending an offer for a
limited time or including a bonus of special gift to those who act within a specific time
frame.
Using a system like this gives one a general understanding of how to target a market
effectively. Moving from step to step, one loses some percent of prospects. AIDA is a
historical model, rather than representing current thinking in the methods of advertising
effectiveness
6.Sex appeal
These advertisements appeals display the attraction between the sexes. The appeal is used
to signify that buying certain products will have a positive impact on the opposite sex and
improve your romantic or love life. Fragrances, automobiles and other products use these
types of advertising appeals.
EXPLAIN BRIEFLY MARKETING AND PROMOTION PROCESS MODEL/IMC PLANNING MODEL.
✓ 1.Review of the Marketing Plan
✓ 2.Promotional Program Situation Analysis
✓ 3. Analysis of the Communications Process
✓ 4. Budget Determination
✓ 5.Integrate and Implement Marketing Communications Strategies
✓ 6.Monitoring, Evaluation, and Control
1.Review of the Marketing Plan
The first step in the IMC planning process is to review the marketing plan and objectives.
Before developing a promotional plan, marketers must understand where the company (or
the brand) has been, its current position in the market, where it intends to go, and how it
plans to get there.
Most of this information should be contained in the marketing plan, a written document that
describes the overall marketing strategy and programs developed for an organization, a
particular product line, or a brand.
Marketing plans can take several forms but generally include five basic elements:
1. A detailed situation analysis that consists of an internal marketing audit and review and an
external analysis of the market competition and environmental factors.
2. Specific marketing objectives that provide direction, a time frame for marketing activities,
and a mechanism for measuring performance.
3. A marketing strategy and program that include selection of target market(s) and decisions
and plans for the four elements of the marketing mix.
4. A program for implementing the marketing strategy, including determining specific tasks
to be performed and responsibilities.
5. A process for monitoring and evaluating performance and providing feedback so that
proper control can be maintained and any necessary changes can be made in the overall
marketing strategy or tactics.
2.Promotional Program Situation Analysis: After the overall marketing plan is reviewed, the
next step in developing a promotional plan is to conduct the situation analysis. In the IMC
program, the situation analysis focuses on the factors that influence or are relevant to the
development of a promotional strategy. Like the overall marketing situation analysis, the
promotional program situation analysis includes both an internal and an external analysis.
Internal Analysis : The internal analysis assesses relevant areas involving the product/service
offering and the firm itself. The capabilities of the firm and its ability to develop and
implement a successful promotional program, the organization of the promotional
department, and the successes and failures of past programs should be reviewed. The
analysis should study the relative advantages and disadvantages of
1. Promotional department organization
2. Firm’s ability to implement promotional program
3. Agency evaluation and selection
4. Review of previous program results
External Analysis
1. The external analysis focuses on factors such as characteristics of the firm’s customers,
market segments, positioning strategies, and competitors.
2. An important part of the external analysis is a detailed consideration of customers’
characteristics and buying patterns, their decision processes, and factors influencing their
purchase decisions. Attention must also be given to consumers’ perceptions and
attitudes, lifestyles, and criteria for making purchase decisions.
3. On what their Positioning of product related with the utility or price or quality.
4. Budget Determination
After the communication objectives are determined, attention turns to the promotional
budget.
Two basic questions are asked at this point:
1. What will the promotional program cost?
2. How will the money be allocated? Ideally, the amount a firm needs to spend on promotion
should be determined by what must be done to accomplish its communication objectives.
In reality, promotional budgets are often determined using a more simplistic approach,
such as how much money is available or a percentage of a company’s or brand’s sales
revenue. At this stage, the budget is often tentative. It may not be finalized until specific
promotional-mix strategies are developed.
Arbitrary Allocation
• By which the budget is arbitrarily set without any rationality and analysis of the
task of advertising. This is referred to as the arbitrary method Some advertisers
decide that they will spend 'X' rupees on advertising next year.
• They claim that, because of their first hand knowledge of business, they have
acquired a sort of "gut feeling" about how much advertising expenses would be
appropriate. This is a "human" method.
Percentage of Sales
• Perhaps the most commonly used method for budget setting (particularly in
large firms) is the percentage-of-sales method, in which the advertising and
promotions budget is based on sales of the product.
• In this approach the budget is determined by taking a fixed percentage of sales.
The sales figure taken could pertain to the previous year or it may bean average
of past few years. The percentage could also be based on forecasted sales of the
year under consideration. Since advertising expenditure is related to the sales, it
is easy in understanding, executing and even in calculation.
• The percentage-of-sales guide is the most common approach to setting
advertising budgets. If a firm or brand has been successful over several years
using the percentage-of-sales approach, it might be assumed that the decision
rule yielded budgets reasonably close to the optimal, so there is little incentive to
change to another approach in setting budgets.
5. Management determines the amount by either
(1) Taking a percentage of the sales dollars or
(2) Assigning a fixed amount of the unit product cost to promotion and
multiplying this amount by the number of units sold.
Return Of Investment
In this method money spent on advertisement is considered as an investment and not
an
expenditure.
It is an investment in the sense that a certain return in terms of profit is expected
under this method. The advertising budget is prepared; under this method by taking
into account the increased profits generated by an increase in sales and goodwill on
account of advertising. If sales and profits are higher, the excess may be assumed to
the result of advertising.
A budgeting method in which advertising and promotion are considered investments
and thus measurements are made in an attempt to determine the returns achieved by
these investments.
BOTTOM UP APPROACH-
• A method of determining the budget for advertising and promotion by determining
the specific task that have to be performed and estimating the cost of performing
them.
• A more effective budgeting strategy would be to consider the firm's
communications objectives and budget what is deemed necessary to attain these
goal.
By Using Judgment
This method relays upon the judgment of experienced managers. Over the years,
some of these individuals develop a feel for the market that permits them to arrive at
appropriate decisions, given the organization’s objectives and limitations. It is a vital
input for the determination of the budget. When the management uses other
methods, it should temper them with the judgmental evaluations made by
experienced managers. Judgment is subject to error and bias. Other methods should
supplement this technique.
DEFINE MEDIA PLANNING: EXPLAIN THE FACTORS AFFECTING MEDIA PLANNING?
it is series of decisions involved in delivering the promotional message to the
prospective purchasers and/or users of the product or brand.
DEFINE
1. CONTINUITY,
2. FIGHTING AND
3. PULSING
Continuity: refers to a continuous pattern of advertising, which may mean every day,
every week, or every month. The key is that a regular (continuous) pattern is
developed without gaps or non-advertising periods. Such strategies might be
used for advertising for food products, laundry detergents, or other products
consumed on an ongoing basis without regard for seasonality.
Fighting: employs a less regular schedule, with intermittent periods of advertising
and non-advertising. At some time periods there are heavier promotional
expenditures, and at others there may be no advertising.
Many banks, for example, spend no money on advertising in the summer
but maintain advertising throughout the rest of the year.
Pulsing
It is actually a combination of the first two methods. In a pulsing strategy,
continuity is maintained, but at certain times promotional efforts are stepped up. In
the beer industry, advertising continues throughout the year but may increase
at holiday periods such as diwali, dussehera etc.
3. Explain the PROCESS OF MEDIA PLANNING? STATE THE PROBLEMS FACED IN MEDIA
PLANNING
Media Planning, in advertising, is a series of decisions involving the delivery of
message to the targeted audience. Media Plan is the plan that details the usage of
media in an advertising campaign including costs, running dates, markets, reach,
frequency, rationales, and strategies.
PROCESS OF MEDIA PLANNING
1. Market Analysis
2. Establishing the Media Objective
3. Setting the Media Strategy
4. Select the media
5. Evaluation and Follow-up
Market Analysis
Every media plan begins with the market analysis or environmental analysis. Complete
review of internal and external factors is required to be done. At this stage media
planner try to identify answers of the following questions:
1. Who is the target audience?
2. What internal and external factors may influence the media plan?
3. Where and when to focus the advertising efforts?
1. The target audience can be classified in terms of age, sex, income, occupation, and
other variables. The classification of target audience helps media planner to
understand the media consumption habit, and accordingly choose the most
appropriate media or media mix.
2. The audience is the number and type of people your advertising targets. The
audience can be classified according to age, sex, income, occupation, etc.
Performing this analysis will help you to project costs and determine the right
media for your campaign.
Establishing the Media Objective
The media objective is the goal of the media plan. To establish this objective, you must
determine your goal for reach, frequency, circulation, cost, and penetration. Reach is
the amount of people the message is in front of over a period of time. Frequency is
the average number of times the message is in front of those people. Circulation is
used for printed advertisements. This is the number of prints that are produced and
sent out. Cost is broken down into two different sections: cost per thousand (CPM)
and cost per person (CPP). It is important to understand the cost as you are
budgeting. The cost will tell you which form of media is the best option for your
business. Penetration is the number of audience members reached by the advertising.
The company must determine if it wants to take over a market or just reach a certain
group prior to setting the penetration goals and strategies.
Setting the Media Strategy
Now that you understand who you are marketing to and how much it will cost you,
you will need to make a decision about what type of media you will use. Some options
include Internet, television, radio, newspaper, consumer and business publications,
and interactive media platforms. Which option reaches the largest audience? How
often will it reach the audience? Does it fit in your budget?
Implementation
You have a plan. Now it's time to set it in motion. This is when you buy media. Media
buying is the purchasing of the space in the selected media. This involves committing
to the media provider, submitting the ad, and paying the bill. This is the exciting part.
You see all your hard work come together.
Evaluation and Follow-up
After everything is said and done, it is time to see how successful your media plan
was. To do so, you need to follow-up and evaluate the results. Ask yourself, 'Did we
meet media objectives? How successful were the strategies?' The success of this
media plan will determine future media plans.
The problems in media planning:
1. Insufficient information:
2. Inconsistent Terminologies:
3. Time pressures:
4. Difficulty measuring effectiveness:
5. Target market coverage
6. Geographic coverage
7. Scheduling time
8. Creative aspects and mood
9. Flexibility
10. Budget considerations
11. More competitors
12. Rising costs
13. Media complexity
14. Greater audience fragmentation
15. More media options
EXPLAIN PROCESS OF ADVERTISING BUDGET
1. Setting advertising objectives
2. Determining tasks to be performed to achieve advertising objectives
3. Preparing advertising budget
4. Allocation of advertising
5. Monitor & control
consist only one word or many words. A copy consists of headlines, subheads,
captions etc. The copy supports the illustration and contains description of the
products merits, demerits, uses,services etc.
Define Direct marketing. List the tools in direct marketing. What are merit of DM
1 Direct marketing is a system of marketing by which organizations communicate
directly with target customers to generate a response or transaction.
The tools in Direct Marketing
• Direct selling
• Direct mail
• Telemarketing
• Internet selling
• Direct action marketing
• Catalog selling
• Television/ print media
• Cable TV
Advantages of DM
• Direct marketing can help sales to grow when used along with sales
promotions and advertising campaigns.
• It is also useful for small businesses through guest books, visitors lists, and lists
of enquiries. These operations rely on repeat business.
• Direct marketing builds relationships; it is an important tool in customer
relationship management (CRM).
• It helps to measure response to campaigns to decide which media is most
profitable.
• It helps to find cost effective approach of media.
Theatre Test:
A group of people who could be a captive audience for an entertainment programme
is considered and a questionnaire is sent to them. The free tickets are later sent to
them for the programme, where the test ads are run. On viewing these, they are
asked to fill up another questionnaire. It assesses product, brand and its theme.
3.
Define Corporate Advertising – advertising whose purpose is to promote the image
of a corporation rather than the sale of a product or service; also called institutional
advertising. This advertising is also used to create public awareness of a corporation
or to improve its reputation in the marketplace.
A form of institutional advertising focusing not on a particular product or product
range but on the organization itself.
A sponsorship
It involves paying a fee to have your name associated with different things like events,
workshops, programme, such as the following:
EX: VIVO sponsored the sport event IPL-2017
• A particular venue (Wrigley Field; the Staples Center)
• A superstar’s apparel (Tiger Woods wearing Nike hats and shirts)
• An event (the AT&T National Golf Tournament; the Chick-fil-A Peach Bowl)
• A cause (M&M’s support of the Special Olympics)
• An educational workshop or information session.
Press release
Its Part of a company’s public relations efforts includes putting a positive spin on
news stories. A press release is a news story written by an organization to promote a
product, organization, or person. Consider how much
better a story or a product recommendation is likely to be perceived when the
receiver thinks the content is from an objective third party rather than an
organization writing about itself. Public relations personnel frequently prepare press
releases in hopes that the news media will pick them up and disseminate the
information to the public. However, there is no guarantee that the media will use a
press release. Some of the PR opportunities that companies may seek to highlight in
their press releases include charity events, awards, new products, company reports,
and things they are doing to improve the environment or local community.
Information that is communicated as a part of the regular TV or/and radio
programme, newspapers, magazines and other types of mainstream media achieves a
much bigger impact than advertisements. This is due to the fact that most people
consider such information more trustworthy and meaningful than paid adds. Press
release is therefore one of the oldest and most effective PR tools.
Newsletters.
Sending newsletters – relevant information about the organisation or/and its
products/services - directly to the target audience is also a common method to create
and maintain a strong relationship with the public. Newsletters are also a common
marketing strategy but PR specialists use it to share news and general information
that may be of interest to the target audience rather than merely promoting
products/services.
Blogging.
To reach the online audience, PR specialists use the digital forms of press releases and
newsletters but they also use a variety of other tools such as blogging and recently,
micro blogging. It allows them to create and maintain a relationship with the target
audience as well as establish a two-way communication.
Media release:
Public relations experts create awareness and market their organization and its
products/services to various media sources which include TV, Radio, internet,
newspapers, magazines and so on. Public relations experts develop and design
various interesting and creative stories about their organization and products and
pitch it to various media people. Organizations bank on their relations with media
channels to enhance the reputation of their brand.