SLM Unit 12 MB0046

Marketing Management
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Structure: 12.1
Promotion Management: Managing Non Personal Communication Channels
Introduction Learning Objectives 12.2 Integrated Marketing Communication 12.3 Communication Development Process 12.3.1 Preparing target customer profile 12.3.2 Identifying promotion objectives 12.3.3 Designing message 12.3.4 Selecting channels of communication 12.3.5 Selecting message source 12.3.6 Target customer feedback 12.4 Budget Allocation Decisions in Marketing Communications 12.5 Introduction to Advertising 12.5.1 Types of Advertisements 12.5.2 Decisions involved in developing advertisement programs 12.5.3 Characteristics of major media 12.6 Fundamentals of Sales Promotion 12.7 Basics of Public Relations (PR) and Publicity 12.8 Summary 12.9 Terminal Questions 12.10 Answers 12.11 Mini-case
12.1 Introduction
A good product with better distribution and affordable price will fail if its attributes are not properly communicated to target customers. Marketer should understand how shall company develop and channelize the communication in an effective way. Communication is defined as "Any act by which one person gives to or receives from other person any information about that person's needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional, may involve conventional or unconventional signals, may take linguistic or nonlinguistic
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forms, and may occur through spoken or other modes." The definition provides the general view of all types of communication. The definition can be interpreted in marketing as marketing communication is the process of providing the information to the consumers about the marketing mix (essentially the 4 Ps) either through personal channels (direct selling, direct marketing etc..) Or through non-personal channels (advertising, sales promotion etc...). Both personal channels and non personal channels constitutes the Marketing communication mix or promotion mix. Promotion mix: This is an assortment of advertising, sales promotion, public relation, Personal selling and direct marketing any organization must have an ideal promotion mix to promote its products. Therefore, it is a very crucial task for the marketer to properly list out the promotion mix strategies and its benefits. Advertising- Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. For example: Print ads, radio and television ads, billboard, brochures and, signs, in-store displays, posters, motion pictures and banner ads, Personal selling- The type of promotion mix that involves sales people who will help and persuade one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. For Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople. Sales promotion- Incentives designed to stimulate the purchase or sale of a product, usually in the short term and generally adopted in the stores or point of purchase. For example: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, and self-liquidating premiums. Public relations- This is the process of non-paid non-personal stimulation of demand for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. For example: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. Direct Marketing: The communication tool used to interact with the customers directly by using telephone, mail, online mediums and other tools. For example, telemarketing, e-mails, voicemail marketing etc.
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Publicity: this medium of communication may be used with or without the organization knowing about it. When the company itself is involved in publicizing a certain message or idea then publicity is organizational oriented; if any other external party such as media is involved in communicating any issue about the company then it gets publicity through others. For example, film producers often use publicity stunts to promote their films even before it is released. Learning Objectives After studying this unit, you will be able to Explain the importance of integrated marketing communication. Describe the stages involved in developing effective communication. Analyze budget allocation decisions in marketing communication. Understand the fundamentals of advertising and sales promotion. Discuss the role of public relation (PR) in marketing communication.
12.2 Integrated Marketing Communications (IMC)

According to The American Marketing Association, Integrated Marketing communication is a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. Objective of Integrated Marketing Communication: To plan, develop, execute and evaluate coordinated communications with organizations stakeholders. Reasons for the growth of Integrated Marketing Communication 1. The growth of innovative promotional tools and need to integrate them. 2. Specialized media vehicles for niche target customers. 3. Growth of retailer dominated market and passing of control from manufacturer to the customer. 4. Growth of database marketing. 5. Wider geographical coverage through internet. 6. Higher accountability and performance linked compensation schemes.
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12.3 Communication Development Process
12.3.1 Preparing target customer profile Effective marketing communication starts with identifying the target customer to whom the communication is developed. In this stage company prepares target customer profile.
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Company: Exide industries. Copy: Help, whenever wherever your car battery is in trouble we will be there, just dial the bat mobile number of your city and we will be right there r to bring your car back to life. Because, we love cars. Target customer profile:
Customer Characteristics Type of customer Income Media exposure Occupation Need of the product Individual Upper middle class and upper class. Print ( English magazines, dailies and journals) Salaried or business class. OEM of a car Description
12.3.2 Identifying promotion objectives Target customer profile provides inputs about his/her readiness to purchase the product. Customer may be in any of the six stages of hierarchy of effects. The six stages are awareness, knowledge, liking, preference, conviction and purchase. Every company will like to bring their customers to the purchase stage from other five stages. Therefore it creates different promotion program at different stage. To make it clearer, Company first creates awareness about the product, educate them about the advantages, induce them to choose the brand, stimulates and monitors that customer purchases the product. a. Awareness: Marketer creates the new range of products. Awareness level for these products is very low. Intention of the advertisement is to create awareness about these new products. In the following example of Reeboks play dry technology garments, it focuses to create awareness among the target audience. Look at the message copy of print advertisement. Copy: Dravid does this simply by sporting his Reebok Play Dry apparel. These fabrics have been designed with a special moisture ventilation system that dries away perspiration in action. It works effectively by pushing moisture away from the skin to the outer layer of the fabric for evaporation. So if you want to stay cool all summer, just do what the hottest players do. Walk into the nearest Reebok Store.
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b. Knowledge: In this stage target audience dont have complete knowledge of the product. Marketer explains the product in detail and its advantages to the target customers. Following advertisement of Parry Neutraceuticals explains the advantages of beta carotenes. Company: Parry Neutraceuticals Copy: You know these are good for you, Natural beta carotene and other carotenoids like it, are the natural pigments found in orange, yellow, red and some green fruits and vegetables. They're some of the biggest reasons why fruits and veggies are good for you. They help prevent the worst things that can happen to you - cancer, heart disease, diabetes, arthritis, cataract and even ageing. The age-related or 'degenerative' diseases begin with repeated damage to cells, which adds up over time. The biggest cause of damage to cells is a common process called oxidation. Carotenoids help prevent oxidation damage because they're some of nature's best anti-oxidants. But to get enough natural beta carotene and other carotenoids, you need to eat 5 servings of fruits and 5 servings of vegetables every day or just one soft gel of Parry's Natural Beta Carotene. It is a mixture of natural carotenoids that comes from Dunaliella salina, one of nature's best sources of carotenoids c Liking: Promotion is used to convert knowledgeable audience into likeable category. Marketer uses celebrities to create interest in the product. For example, Reid and Taylor highlight their product quality in the advertisement by using Amitabh Bachhan a film actor. Preference: Creating differentiation in the market place so that customer identifies it over the rival brands. Big bazaar advertisement with tag line is se sasta aur achcha kahin nahi or nobody sells cheaper and better is alluring the customer by telling them what differentiation they can bring.
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e. Conviction: customer may have preference over the product but he/she still not able to decide. In this situation, marketer develops the messages in such a way that it provides platform for him to decide. For example, Tata indigo, requests its customer to go for test drive and experience the truth. Customer may be convinced about indigo but not developed the conviction. Look at the words used in the copy. Copy: Business class travel, now with power dressing, presenting the stylish new Tata Indigo. Make a powerful style statement on the roads with the new Tata Indigo. The fascia is accentuated by dual chamber headlamps and more pronounced chrome-lined grille, while sill valance covers, chrome insert door rub rails and dual tone ORVMs add a sporty touch to the overall elegance of the car. The rear sports a chiseled bodyhugging bumper, new tail lamps and chrome surround registration plate garnish. The interiors turn beige for the full range, and the new cockpit topped off by the 3-spoke steering wheel carries forward the classic modernity of the exteriors. The best-selling sedan just got better. Take a test drive today. And discover power dressing on Wheels. Spoil yourself.
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f.
Purchase: Sometimes customers have strong desire to buy the product but due to affordability or any other environmental factor, they are not able to purchase. In this situation, marketer uses promotional schemes particularly reduced price schemes to attract the customer. Company also comes out with communication programs for repeat buyers and loyal customers.
12.3.3 Designing a message After deciding the communication objectives, Marketer turns to develop right message which should create attention, interest, desire or action (AIDA) by the customer. Before deciding what should be there in the message, we will have to understand AIDA model in detail. The main objective of any message is to meet the AIDA model although the message framed will be subject to product type/category, ad budget and creativity skills of individuals. I. AIDA model: Attention: The marketing communication should generate attention towards the product. In this stage customer is having the need; organization should provide solution from their communication. For example, when advertisers use a popular film star or a celebrity to promote a perfume brand or even a soap or a toothpaste, it will immediately catch the audiences attention. Interest: Once the customer provides enough attention towards the communication, organization should stimulate it to create interest. For example, if celebrities are used to endorse products, audience must be curious enough to know what they are saying about that particular product. Desire: The interest created should be forced in the customer mind so that he will develop desire towards the product. For example, when people have seen the ad and show interest, next thing would be to create a desire for that product. People should have the willingness to buy the product and unless they dont desire it, they will not be eager to buy the same. Action: Strong desires should be turned into action. Hence company should provide the advantages of purchasing of the product in their communication messages. For example, it is very difficult for the
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Insurance companies to grab the attention of people towards insurance products, create interest and desire as to make a person buy the same. So, its a challenge to the marketer to develop such a message that immediately gets the attention and make a person to go for it. For example, it is easy to catch peoples attention towards ice-creams so that they will have interest and desire to taste it and eventually buy it. II. Deciding the message content. Message content must have any one of the following appeals Emotional appeal: Positive emotional appeal or negative emotional appeals are strong tools used to intensify the purchasing activity of the customer. Positive emotions like love, pride, joy and humor are used in the message. Following are the advertisement where such attributes of positive emotions used.
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www.makemytrip.com- Joy
BMW fastest saloon car in the world- pride
Fevicol humor
Wheel- love.
The negative emotions like fear guilt and shame are also used in the advertisement to attract the customer.
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ICICI prudential- fear.
NIIT- if you are not studying at NIIT you are missing somethingguilt
Rexona deodorant shame.
Rational appeals highlight on the desired benefits about the products. They highlight quality, economy value or performance of the product.
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Dabur Amla value appeal ( long Hair)
Lakme products.
brilliance-
Quality
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Reliance India mobileperformance( works even in flood situations)
Reliance Infocom- Like the first three, the mobile phone must come to me as a necessity and not as a luxury- economy
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Moral appeal: These are concerned towards public health or environment or social responsibility. For example, Shell lubricants show its commitment towards environment in their advertisements. III. Message format: In this section we will discuss how message should look and stimulate the interest. Constituents of message format:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Characteristics Headline Copy Illustration Color Pictures Message size Shape Words Sounds Voice Body language Texture Scent Distinctive formats Suitable media. Print, Outdoor, Online Print, TV, outdoor, online Print, TV, Outdoor, online Print, TV, outdoor, online Print, Outdoor, online Print, TV, Outdoor Print, Outdoor, Online Print, TV, Product, Outdoor Radio, TV, Online, Outdoor Radio, TV, Online TV, Online Product, Print, Online Product Print, Online, Outdoor
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Print advertisement Message format:

Pictures
Headline
Sub Headline
Body copy
Base line
Colors used: Saffron, Yellow, Red, Watermark brown, Black, Brown. Size: 3.5inch breadth* 4.2 inch length Shape: Rectangle Words: Straight out of the pack and into your mouth, that's the usual style of eating Haldiram's Namkeen. But now, there's a whole new way of doing it! A blend of our delicious namkeen with a dash of imagination, presented in a list of yummy recipes, just for you. But where do you get these Recipe Remixes? Just write to us at the address given below and we'll send you a Recipe Remix booklet, absolutely free! What's more, you can also try these recipes at most of the Haldiram's outlets. So, get your own booklet and start whipping up your remixes in your kitchen itself or simply visit us at our
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outlets. But wait, there's more! You can even create your own recipes and send it to us. Who knows your recipe could win you a gift voucher of up to Rs. 2500/-*. Not only that, your winning recipe could also feature in our next Haldiram's Recipe Remix booklet. So, get those recipes started and let the good times begin! Activity 1: Take any newspaper and mark those advertisements that you think has a good message content, right kind of appeals and aspects that can grab the readers attention. 12.3.4 Selecting the channels of communications The communicator may use company sales people, reference groups, blogs, RSS, webinar, online communities and social networking sites to promote their products. These media are called as personal communication channels. The word of mouth campaigns, buzz marketing and viral marketing are some examples of personal communication channels. Word of mouth communication: the personal communication between customers and their reference groups about the product Buzz marketing: The marketing technique in which organizations create opinion leaders (people whose opinion are sought by others) and spread the product information to others. For example, Gmail - Google did no marketing, they spent no money. They created scarcity by giving out Gmail accounts only to a handful of "power users." Other users who aspired to be like these power users "lusted" for a Gmail account and this manifested itself in their bidding for Gmail invites on eBay. Demand was created by limited supply; the cachet of having a Gmail account caused the word of mouth, rather than any marketing activities by Google. Viral marketing: The marketing technique of using social networks on the internet to create the brand image. Viral marketing is a phenomenon that facilitates and encourages people to send messages to others voluntarily. Viral promotions may take the form of video clips, interactive Flash games, images, or even text messages. For
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example, Cadbury's Dairy Milk 2007 Gorilla advert was heavily popularized on YouTube and Face book. The communicators are using mass media like print (Newspaper, magazine, journals) Broadcast (radio, television) Outdoor (hoardings, Bill board posters) and online (e-mail, communities, groups, websites) to communicate their product attributes. 12.3.5 Selecting the message source Messages communicated by the celebrities and proper sources have high credibility among the target consumers. Many companies use well known actors and actresses, cricket players, and even cartoon characters to promote their advertisements. Colgate- Palmolive well known FMCG company used Indian Dental Associations (IDA) recommendation to promote their toothpaste. As we have seen earlier Rahul Dravid, Amitabh Bachan and Karishma Kapoor are used as sources for Reebok, Reid and Tayolr, and Dabur Amla respectively. Companies should be very careful about the selection of the sources. If the product character does not match with sources, then product will fail in the market. Recently Pepsi dropped its sources Rahul Dravid and Sourav Ganguly and selected Rohit Sharma for the promotion campaigns. 12.3.6 Target Customer Feedback The communicator collects the feedback on the promotion campaign to assess how many of target customers are able to see, hear or read the message. This stage helps communicator to understand how many of target customers actually able to recall the message? And among them how many of them really purchased it. Some companies go further and ask the customer to provide suggestion to improve the promotion campaign.
12.4 Budget Allocation Decisions in Marketing Communications

Media vehicle selection, number of insertions and message structure depend on the budget allotted for the communication program. A popular channel may charge more for advertisement but organization gets better viewership. A newspaper having high circulation charges premium for the advertisement but all the organization may not have enough budgets to support such campaign. Hence marketer would like to decide what is the budget for the communication program? And how shall it be allotted
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optimally? There are four different methods on which a media planner decides the allocation of advertisement budget. a) Affordable method: This method is used by small companies who dont have enough communication budgets. In this method company allots the fixed amount for the communication program. The advantage of this method is company can have better control over the spending on the communication. The disadvantage is if sales require higher communication effort, company is not in a position to allocate the budget. b) Percentage of sales method. In this method company allots the budget on the basis of total sales forecasted. This is the simplest method. Marketer can have better control over the budget and also have flexibility to allocate the budget. c) Follow the Competitor method: The Company sets its promotion budget on the basis of competitors advertising effort. Here company closely monitors the developments of the competitors communication program and study the industry trends in communication budget prior to setting up communication budget. d) Objective and task method: The procedure involved in estimating the advertisement budget by this method are First, Objectives are set for the communication programs. Second, identifying the task to be performed to achieve the objective and third, estimating the cost of achieving these objectives. Self Assessment Questions 1. Expansion of AIDA is _________________________________ 2. The three appeals used in the message content are ________, ___________ and _____________. 3. The technique of using the social network on the internet to create the brand image is called as -----------4. Percentage of sales method of advertisement budget decision is determined on the basis of affordability of the company a. True b. False 5. The promotion objective used when customer may have preference over the product but he/she still not able to decide is -------------Sikkim Manipal University Page No. 247
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12.5 Introduction to Advertising

Please remember we already discussed definition of advertisement in the promotion mix concepts at the beginning of this unit. In this section we will discuss different types of advertisement and four important decisions management takes in developing advertisement program. 12.5.1 Types of advertisements Institutional advertising: The objectives of advertisements are to enhance the image of the company rather than selling the product. For example, Wipro uses Applying Thought for all its businesses thus promoting the company. Product advertising: The objective of this type of advertisement is to communicate about the product attributes to the target customer. Product advertising is further classified into three types. They are 1. Pioneer advertising: This mode of advertisements is used to create awareness and demand in the initial stage of the product life cycle. For example, TATA Docomo advertised initially as to why a person should pay for the unused minutes when talks may last for seconds. 2. Competitive advertisements: This type of advertisement is used to highlight the differentiation of organizations product. This method is usually used in the growth phase of product life cycle. For example, Detergents like Ariel, Surf and Tide constantly differentiate their product features from each other. 3. Comparative advertisements: This type of advertisements highlight on the comparing companys communication message with competitors product information. This method is used when the competition is very high or sales are sluggish. For example, soft drinks like Pepsi and Coca-cola at some point were involved in comparative advertising. 12.5.2 Decisions involved in developing advertisement programs Determining the advertisement objectives: Marketers should determine the objectives of advertisements in the initial phase of the program. The objectives of advertisements are i. Provide the information about awareness about the product.
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advertisements
and
create
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ii. Highlight the uniqueness of companys products over competitors. iii. Reminding about the product and facilitating the thinking about the product in order to make a purchase. Determining the advertisement budget: We discussed four important techniques used in setting up communication budget in the beginning of this unit. In this section we will discuss the factors that influence the advertisement budget decisions. i. Stage of the product in the product life cycle: In the introduction stage of product life cycle Company spends more money on advertising to inform the consumers about the product and to create awareness.
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ii. The market share of the company: If the share of the company is high, it tries to defend by heavy advertisement and if it is low and market is attractive organizations promote companys product heavily. Developing advertisement strategy: Advertisement strategy depends on two important factors. They are developing messages and choosing proper media. i. Message development: Message should be developed only after preparing the complete target profile. Understand what interests target customer. Message should answer the objectives of the program. Message should be simple and can be understood by anybody. Use more interactive communication tools. ii. Selecting advertising media: Assess how many target communication message. customers should view the
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Point out how many times a target customer will expose to the advertisement. Evaluate the impact of advertisement message on the target audience. List out the media habits of the target customers. Find the suitable media for type of product organization have.
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Prepare cost sheet and choose optimum media. Choose particular media vehicle (Zee channel, Times now, Prajavani, Hindu etc) Decide how many times advertisement should be given in the year and also decide the continuity of advertisement. Allocate the media execution strategy on the basis of prime time and non prime time or seasonal and non seasonal decisions.
Evaluating advertisements: Communication department is interested in identifying whether the message given is effectively reaching the consumer and inducing them to purchase the product. Therefore they critically evaluate the advertisements through various methods. Some of the important methods through which advertisements evaluated are recognition method (showing the advertisement and asking whether thy have seen it before), aided recall (asking people to tell the brand they remember) and unaided recall (asking people if they can remember seeing any ads within an identified product category). 12.5.3 Characteristics of major media I. Broad cast media Radio 1. Provides up to date information 2. Reaches the local audience effectively 3. After FM revolution this is one of the fastest growing media. Television 1. Expensive medium 2. Products can be well explained and demonstrated. 3. It provides wide geographic coverage 4. Image creation is difficult in this medium because of spontaneity. 5. Wide number of media vehicle creates the problem for media planners. II. Print media Newspapers 1. Continue to dominate local markets 2. Retail and classified advertisement are key
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3. Important advantages include flexibility and community prestige 4. Newspapers offer powerful merchandising services like promotional and research support Magazines 1. Divided into two broad categories of consumer magazines and business magazines 2. These categories are also subdivided into monthly publications and weekly publications 3. Specialty advertisements can be promoted through this media. III. Outdoor Advertising 1. Includes billboards, painted bulletins or displays, and electric boards 2. The oldest and simplest media business 3. Effective in the high traffic areas. 4. Environmentalists oppose this type of advertisement. IV. Online advertising 1. Contains characteristics of both print and broadcast media 2. Enhances two-way communication and encourages audience participation 3. Example of this media is e- mail. Other Advertising Media 1. Transit advertisement: advertisements placed on the buses and moving vehicles. 2. Movie advertising: Inserting the advertisement inside the movie 3. In flight commercials: advertisements placed in the airplanes. 4. Using yellow pages and pamphlets to advertise the product. Activity 2: Take any product and observe how it is advertised on different media. Compare the message advertised and where it is more successful.
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V.
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12.6 Fundamentals of Sales Promotion

Sales promotions are short term programs that encourage consumers purchase or sale of a product or service immediately. According to the Institute of Sales Promotion, "Sales Promotion comprises that range of techniques used to attain sales or marketing objectives in a cost effective manner by adding value to a product or service either to intermediaries or end users, normally but not exclusively within a defined time period." Sales promotions are short term incentives and best suits for generating instant sales. Organizations that are into the retailing and managing it independently are using these to the maximum. According to AdEX India a TAM India subsidiary, sales promotion accounted for 18% of total print advertisement. Sales promotion methods according to Indian market: Sales promotion uses three different types of tools. They are consumer promotion tools, Trade promotion tools and business promotion tools. Consumer promotion tools: These promotion tools are directly targeted to customer. These tools stimulate an interest among target customer to purchase the products quickly. Some of the consumer promotion tools used in the Indian market is listed below. (Source: AdEX- a TAM media company) 1. Price promotion: Organization offers price reduction on the product. For example, Rs 5 off on the purchase of Revive 200g. 2. Contest promotion: organization requests the customer to purchase the product to participate in the contest and win the prizes. For example, Britannias Britannia khao, world cup jao 3. Multiple promotions: Promotions offer includes more than one promotional offer. For example, Rs 30 off and a multipurpose jar free on the purchase of 1 liter pack of Halo shampoo. 4. Add on promotion: Promotion offers a free or an add on product (same or different) on the product. For example, an 8 ml Sunsilk shampoo sachet is free with 75g Pears.
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5. Exchange promotion: Price of a product is reduced in an exchange of an old product. For example, bring your old color television and take home a Philips LCD TV for Rs 15,000. 6. Combination promotion: two or more products are offered together at a discount price or some incentive is given on a combination pack. For example, save Rs 10 on the combined purchase of Colgate toothpaste and tooth brush. 7. Volume promotion: allows additional quantity of product free on its purchase. For example, get 50g extra on purchase of 100g Tide. Top 10 companies on usage of sale promotions (2007). 1. Maruti Suzuki limited 2. Reliance communications limited 3. Nokia Corporation. 4. LG electronics India ltd. 5. Pantaloons India limited. 6. HP India limited 7. Tata Sky limited 8. Planning consultant India limited. 9. Samsung India electronics limited. 10. Hero Honda motors limited. Trade promotion tools: These promotions are targeted to retailers and wholesalers. The objective of this type of promotion is to get the self space, motivate to sell the products and promote brands in the local media. There are various types of Trade promotion tools are used in the market but we are limiting our discussion to two major types. They are discounts and allowances. 1. Discounts: manufacturer offers straight reduction in the list price on every purchase that channel member does in the particular period. 2. Allowances: This is the promotion value provided by the manufacturer to the channel member to advertise the product in the local media or display the product in the store. Business Promotion tools: the promotion tools used to lead generation, reward customer and motivate salespeople for business customers. An organization uses conventions and trade shows. For
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example, Machine tool industry organizes Amtex exhibition in different places of the country. Organization also conducts sales contest to its sales executives to motivate them to sell more.
12.7 Basics of Public Relations and Publicity

Public relations (PR) involves with the management of internal and external communication of an organization to create and maintain a positive image. Public relations involve popularizing successes, downplaying failures, announcing changes, and many other activities such as investor relations, communication during crises, participating in societal causes etc. Methods of PR: Lobby groups: these are established to influence government policy, corporate policy, or public opinion. These groups claim to represent a particular interest. News conferences and grand openings to attract media and customers. Using written and audio visual material to reach the publics. Social responsibilities of the organization have shown through public service activities. Preparing interactive website, communities and blogs on the internet. Even the front office desk or the receptionist counter at the entrance or the enquiry desk is designed with the main objective of establishing PR. Advantages of PR: It helps in building and maintaining relations with local community. For example, coca cola Indias initiatives of transforming villages campaign helped it to get better image among the rural consumers. It helps in keeping better relations with the investors. A good image with social groups creates word of mouth advertising. It helps in reducing the conflicts and misconception about company or its products. It helps in publicizing the products. Role of PR in marketing communications: Public relation messages are created by the company staff and circulated in the media without any cost. If the message is powerful, it reaches different media. Whenever the company
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faces the issues, it looks towards the public relations rather than advertisements. For example, Cadburys chocolate worm controversy or Cola pesticide issue in which PR becomes more applicable than using other forms of advertisements. The firms public relations should be blended smoothly with the other promotion activities within the company have overall integrated marketing communications effort. Publicity: Publicity can be said as a simple act of making a suggestion to the concerned parties TV or radio channel, news reporter or journalist, film makers, etc. that leads to the inclusion of a company/products in an already existing story or a newly developed one. Publicity may also include any such information that attracts attention to a company, its products, its people or any event, usually generated by a third party such as media. Publicity maybe a part of PR or it may be independent of it in certain situations. Good Publicity and Bad Publicity: Publicity may have positive or negative impacts. For example, it became a negative publicity for Coca-Cola when people in India, started to throw or break the bottles on the roads because of the belief that it contained pesticides or toxic substances. News channels covered the same giving negative publicity to the company and the products. Ways in which organizations can use publicity as a communication tool are as follows: Organizing events, contests, exhibitions, public displays, tours, etc. Sponsoring awards, scholarships or giving charity for any noble cause. Issuing reports, conducting survey or polls, taking stand on any debatable or environmental issues, etc. Any other way that is appropriate like for example displaying the products in a movie and asking the lead actors to use the products in that movie. Ways in which organizations can avoid or minimize the effects of bad publicity: Providing people with the accurate information and giving clarifications if needed either through press release, media interviews, websites, public messages, advertising etc.
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Companys top management or spokesperson can give a public statement or comment in the various media. Improvising Public Relations and designing good publicity message to erase the effects of bad publicity. Continuing to provide quality products and services to the consumers. Involving in community work or environmental protection campaigns or any such activity for a good cause.
Self Assessment Questions 6. _________ Advertisements are used to create awareness. 7. _________ and _________ advertisement budget. 8. Television is a type of a. Broadcast media. b. Print media. c. Out door media. d. Online media 9. A sales promotion technique in which marketer offers two or more products together at a discount price or some incentive is given on a combination pack is called as ______________ 10. Lobbying is the method of a. Sales promotion b. Public relations c. Advertising d. All the above
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are
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12.8 Summary
Promotion mix is comprises of a combination of various marketing communications techniques which includes of Advertising, Sales Promotion, Public Relation, Publicity, Personal Selling and Direct Marketing.
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AIDA model discusses creating attention, interest, desire in the consumers and making them ready for action which is nothing but buying the product. . Buzz marketing refers to the marketing technique in which organizations create opinion leaders (people whose opinion are sought by others) and spread the product information to others. Advertisement allocation (ad budget) can be done on the basis of affordable method, objective and task method, percentage of sales method, competition method. Advertisements are classified as institutional advertising and product advertising. Media planners have broadcast media, print media, outdoor media, online media and other types of Medias to allocate the budget. Trade promotions are provided to channel members where as Conference and exhibitions are examples of business promotion tools. Lobbying and press conferences are tools of Public Relations.
List of Key terms
Promotion mix Advertising Sales promotion Public Relations Publicity Media Ad appeals Message Ad copy Target audience or customers
12.9 Terminal Questions

1. What do you mean by promotion mix? 2. 3. Explain the reasons for growth of integrated marketing communications. Explain the communication development process with examples.
4. What do you mean by consumer sale promotion? Explain the consumer sales promotion techniques used in the Indian market. 5. Write a note on public relations.
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12.10 Answers
Answers to Self Assessment Questions: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Attention, Interest, Desire and Action. Emotional, rational and moral Viral marketing False Conviction Pioneer. Product stage in the PLC and market share. Broadcast media. Combination promotions. Public relations.
Answer to Terminal Questions: 1. 2. 3. 4. 5. Refer 12.1 Refer 12.2 Refer 12.3 Refer 12.6 Refer 12.7
12.11 Mini-Case
Sales impact of Goodwill Goodwill Electricals is a manufacturer of home appliances. It is a company that distributes its products in its own showrooms located in metros and cities. In March this year, they introduced an electric shaver priced at almost 15% lower than the competitors. This shaver according to the manufacturer is superior to competitive products in quality and user-friendly. Goodwill was keen to launch their shaver in the national market. Accordingly, they gave advertisements in print media (in English newspapers and magazines). The advertisement is as below: Headline: You can shave electrically Body: Picture of shaver with brand name Smooth and word with across the picture.
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Closing: Brand name Smooth written in bold and address of company in right hand corner. Till June end Goodwill had spent Rs.25 lakhs in advertisements as against sales of only Rs.30,000. Mr. Rajan the proprietor was worried and depressed. On July 3rd, Rajan decided to abandon the whole project of shavers. However, before doing so, he contacted Brilliant Ad Agency and made a contract with them to have a last shot at establishing the product. After a careful analysis of the situation and market position, by the end of July, the agency presented the following advertisement: Headline: Now you can shave in the Luxury of your Bed. Body: Picture showing a double-bed with a lady sleeping peacefully on one side of the bed. On the other side, a man is shown holding a cup of tea in his left hand and shaving his cheek with his right hand. He is shown to be absolutely relaxed and reclining on the pillows and the whole setting is of a middle class bed-room Closing: Below the picture, brand name Smooth is mentioned and below this in brackets (*) (August 1st onwards shave in Luxury; contact nos.) (No. of distributor) Then on right hand corner-Quality symbol of Goodwill. Within August 5th and after just 6 ad insertions, Goodwill recorded sales on an all India basis of about Rs. 12 lakhs and pending orders of about Rs. 3 lakhs. (*) Action date was changed on each advertisement.
(Source: Modified case based on original case study of Fast Track ElectricalsCases and Simulations in Marketing Management edited by Prof. M.K. Rampal and Dr. S.L. Gupta)
One of the new recruits in the Ad agency was very impressed with this move and compared the appeals of the 2 print ads. If he did this comparison and found out the right associations, then he would be able to know how the desired impact on sales was achieved. The new recruit is also interested to know how other media types could be utilized to promote this product. Assume you are the new recruit and make the assessment.

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Marketing Management

Promotion Management: Managing Non Personal Communication Channels

12.2 Integrated Marketing Communications (IMC)

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12.3 Communication Development Process

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BMW fastest saloon car in the world- pride

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ICICI prudential- fear.

Rexona deodorant shame.

Dabur Amla value appeal ( long Hair)

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Reliance India mobileperformance( works even in flood situations)

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Print advertisement Message format:

12.4 Budget Allocation Decisions in Marketing Communications

12.5 Introduction to Advertising

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12.6 Fundamentals of Sales Promotion

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12.7 Basics of Public Relations and Publicity

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List of Key terms

12.9 Terminal Questions

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