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M6- ADVERTISING AND INTEGRATED BRAND MANAGEMENT

MODULE -1: THE PROCESS What is advertising? Communication & Business process of advertising Types & economic effects of advertising Structure of advertising industry Evolution of promoting and advertising brands Social, ethical, regulatory aspects of advertising

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WHAT IS ADVERTISING? Advertising is any paid form of non-personal presentation & promotion of ideas, goods, & services by an identified sponsor. (AMA-1963) It is paid persuasive communication, using nonpersonal mass media & other interactive communications to connect an identified sponsor with a target audience. (modern definition). Advertising is a substitute for human salesman. (Sidney Bernstein-1990)

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ADVERTISING AS A COMMUNICATION PROCESS.

Sender Encoding the message Encoded message in media Decoding of the message Receiver

Noise Distortions Feed back Response

For effectiveness, message must gain attention, be understood, & stimulate receiver. The noise may distort effectiveness of communication.

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ADVERTISING AS A BUSINESS PROCESS

Strategic Business Plan at SBU Marketing plan Marketing Mix Strategy Advertising or IMC Plan

The figure shows how advertising is linked to strategic business plan. The process followed in business/ marketing/ advertising plan is the same : viz. objectives, strategies, and tactics (or action plan)

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MAJOR TYPES OF ADVERTISING 1. National/Brand/Consumer Advertising. Objective: Inform/remind consumers @ firm/brand. Focus : Long-term brand identity & image. Does not necessarily mean nationwide. Done by the manufacturer. 2. Local/Retail Advertising Often done by the retailer. Objectives: Store loyalty & retailer image. Sometimes done by small-size manufacturer to sell initially in local markets.

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3. B2B/Industrial Advertising

Done by business marketers. Objective : Support personal selling. Main media: Business magazines, journals. 4. Corporate/Institutional Advertising P.R. Approach, directed at various stakeholders. Objectives: Corporate image building, investor support. 5. Non-Profit Advertising Done by not-for-profit organisations. Objectives: Volunteers, donations, program participation.

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6. Public Service Advertising Done by government, social service institutions, or business firms. Objectives : Promote awareness on social issues/public causes (e.g. child marriage, drug adiction, drunken driving) 7. Direct Response Advertising Done by marketers. Objective: Stimulate a sale directly. Media used: Internet, telephone, direct mail, directresponse print/broadcast advertising.

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8. Trade Advertising Done by manufacturer. Objectives: attraction new outlets, motivate traders to stock company products. 9.Professional Advertising Done by manufacturers of certain products. Objective: Ad Message to professionals who are decision makers (e.g. doctors, architects) Media used: Professional journals, direct/e-mails, sales persons.

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ECONOMIC EFFECTS OF ADVERTISING

Advertising has effects on: Value of products/services Advertised brand adds value to a brand. Advertising adds value by educating consumers. Prices Advertising increases or reduces the price of a product? Consumer demand & choice Advertising/IMC increases consumer consumption/demand. Advertising offers consumers right of choice or restricts choice? Competition Advertising discourages competition?

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SCOPE/ROLES/FUNCTIONS OF ADVERTISING Identifying advertisers name. Providing information about products & brands. Creating demand for a product by hard-sell or soft-sell approaches. Building awareness & image of products & brands. Reminding existing & prospective customers. Supporting personal selling function.

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STRUCTURE OF ADVERTISING INDUSTRY

TYPICAL STURUCTURE OF AD. INDUSTRY
Advertiser (client orgn.)

Advertising Dept.

Independent Advertising Agencies

Service Organisations (Service Specialists)

Media Organisations

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KEY PLAYERS IN ADVERTISING INDUSTRY Advertiser/Client Organisation. Provide funds for advertising. Decide ad.budget and target audience. Approve ad/IMC plan. Advertising Department Most large companies have ad.dept. Communicate, Coordinate between marketing dept, ad. agencies, service specialists. Headed by Advertising Manger/Director.

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Independent Advertising Agencies

Hired by large/medium-sized advertisers. Provide advertising/promotional services. Assist advertiser in planning & executing ad & other promotional programmes.

Media Organistaions
Referred as channels of communications/media vehicles. Provide platform for advertisers message to the audience.

Service Organisations/Specialists/Suppliers/Vendors.
Provide speicalised services like copy writing, marketing research, video production.

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FUNDAMENTAL INFLUENCES ON EVOLUTION OF ADVERTISING INDUSTRY

History of advertising goes back to 5000 years. Since ancient times urge to advertise is human nature.

Four fundamental influences:

Trade marks: individual distinctive marks by craftsmen. Signs: painting commercial messages on rocks by traders. Town criers: spreading news, announcements. Records of results: In 1890s, an ad. agency included this similar to todays research dept.

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Evolution of Brands
Brand s help to differentiate products. In 18th century, producers names identified products, e.g. Ford automobiles from Ford family i.e. some kind of corporate branding. In mid 20th century, mass production of non-durables made branding compulsory. Brand names were based on (1) personal names of inventor/shopkeeper (Edison Phonograph), (2) place names (Columbia Bicycles), (3) artificial names (Kodak), (4) descriptive names(Shredded Wheat)

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TRENDS IN ADVERTISING & PROMOTION INDUSTRY A trend is direction /sequence of events that has some momentum & durability. Trends in Ad industry are: Will rely more on marketing research. Impressive development of vernacular advertising. Shift of focus from goods to services advertising. Electronic media will become cost effective. Interactive TV programmes & commercials. Production quality of TV ads will improve. More social control of advertising.

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SOCIAL ASPECTS OF ADVERTISING

Advertising can bring change in society by creating
awareness about social issues. Why questions are asked about social role of advertising? Has advertising become a kind of social guide?

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ETHICAL ASPECTS OF ADVERTISING

Ethical issues applicable to advertising:

Misleading / false advertising claims.

Offensive / poor-taste advertising.

Sex appeals / nudity used in ads.

Puffery (exaggerated / vague claims). ASCI (Advertising Standards Council of India) enforces ethical code for advertisers.

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REGULATORY ASPECTS OF ADVERTISING

ICC (International Chamber of Commerce) have published codes for advertisers. GOI have given legal recognition to ASCI (in 2006).

TV commercials to abide by ASCI codes.

Tobacco Products ads legally prohibited.

Infant milk substitutes (Lactogen - Nestle)ads legally

forbidden.

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MODULE -2: THE PLANNING

THE CONSUMER AS A DECISION MAKER

What is the difference between a consumer and a customer? How consumers are categorised? Business markets (B2B) Consumer markets (B2C) How buying decisions are made in B2B and B2C markets?

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MODES (PROCESS) OF CONSUMER DECISION MAKING IN CONSUMER MARKETS

Stages / Steps in Consumer decision making are : Problem / Need recognition. Information search. Evaluation of alternatives. Purchase decision. Post-purchase evaluation. For high involvement products consumers go through all five stages. For low-involvement products one/two stages are skipped.

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Problem / Need Recognition Should advertising stimulate the need? Information Search What is the difference between internal and external search? Consumer behavior of searchers and impulse buyers. Evaluation of Alternatives What is the difference between evoked set and consideration set of brands. Objective & subjective criteria.

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Purchase Decision Selection of the product / brand. Where to buy? When to buy? Post-purchase Evaluation Relationship between expectations and satisfaction influence a repeat purchase. Cognitive dissonance. Dissatisfied consumer experiencing dissonance spreads negative WOM.

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BUYING DECISION PROCESS IN BUSINESS MARKETS Eight stages/phases involved: Problem/Need recognition. Characteristics & quantity of the needed product. Specification of the needed product. Search & quality of potential suppliers. Obtain & analyse supplier proposals. Evaluate and select suppliers. Select an order routine. Performance feedback and post-purchase evaluation.

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TYPE OF BUYING SITUATIONS IN BUSINESS MARKETS

New Task (New Purchase)

Modified Rebuy (Change in Supplier) Straight Rebuy (Repeat Purchase)

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CONSUMER AS A SOCIAL BEING What is a social class (social being)? It is a homogeneous and stable division of people, who have similar values, interest, lifestyles, and behaviors. Factors used to classify individuals into a social class are: Income, Education, Occupation, Religion, etc. These factors vary from one society to another. In India, broad social classes are: upper, middle, lower.

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REFERENCE GROUPS (R.Gs) A consumer accepts many values, beliefs, attitudes, or behavior of reference groups. Who are reference groups? Family, friends, colleagues, etc. Why family is the most important R.G.? Advertisers must understand family structure, working and changes why ?

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MARKET SEGMENTATION, POSITIONING, & THE VALUE PROPOTION Steps in identifying target segments: 1) Segment consumer / business markets based on variables for
Consumer Markets Demographics Geographics Psychographics Behavioral Benefits sought Business Markets Macro: Industry type, geographic location, consumer type, End-use / application Usage Rate. Micro : Purchasing Criteria, Personal Characteristics.

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2. Segment Targeting How many & which segments to target? Criteria used: Segmentsize (Market Potential) Growth rate (Present & Future) Profitability Company objectives, resources, and competencies (strengths) in relation to competitors.

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3. Segment Profiling It means describing characteristics (age, income, etc) of target segments /customers. In addition, marketers find benefits sought, what

motivates to buy, media habits, etc.

Profiling useful for media and message decisions.

After profiling, marketers estimate market potential

of target segments.

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POSITIONING What is Positioning? How to develop a positioning strategy? The steps are: 1) Collect market information. 2) Select attributes / benefits for positioning in relation to competitors. 3) Communicate the companys positioning.

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DIFFERENT POSITIONING APPROACHES / STRATEGIES Attribute / Benefit positioning. Product category positioning. Price Quality positioning. Use / Application positioning. Competitor positioning. Repositioning.

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ADVERTISING / PROMOTIONAL RESEARCH

Marketing Research

Advertising/ Promotional Research

Advertising Strategy Research

Creative Concept Research

Pre-testing Research

Post-testing Research

Target Audience Research

Product & Positioning Research

Communication media Research

Advertising Message Research

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DEVELOPMENTAL AD AND COPY RESEARCH Marketing research & market research same? Advertising strategy research is called developmental research. why? Because it is used for developing strategies like positioning, selection of target audience, media & message. Creative concept research & Pretesting are used for concept & copy testing and hence called copy research.

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TARGET AUDIENCE / CONSUMER INSIGHT RESEARCH It develops a product / brands target consumers (or Primary users) profile. Profile includes geographic, demographic, psychographic & behavioural characteristics. The research finds information on potential market segments for new products. Methods used : Consumer attitude and usage studies.

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PRODUCT / BRAND POSITIONING RESEARCH For effective Brand positioning strategy, advertiser should know : 1) Target consumers perceptions about the firms & competitors brands on product / service quality, features, benefits. 2) What factors lead to initial purchases and brand loyalty.

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COMMUNICATION MEDIA RESEARCH It helps in developing 1) Media strategy from various media types 2) Selecting media vehicles. To obtain information on reach, audience profile, and effectiveness of different media vehicles, ad. agencies subscribe to syndicated research services, like : NRS (National Readership Survey) IRS ( Indian Readership Survey)

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ADVERTISING MESSAGE RESEARCH Ad. Agencys creative team does formal and informal research. Formal research by reading secondary information provided by the client (advertiser) on the company, product category, brand, competition. Informal personal research is also done. How?

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CREATIVE CONCEPT RESEARCH/COPY RESEARCH Research done on: Concept testing Name testing Slogan testing Timing : before ad. Agency begins production. Process followed: Creative people prepare tentative ad concepts (i.e. copy platform/story board) Focus groups of users discuss tentative concepts. Researchers observe & videotape discussions. Most promising creative concept identified.

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PRE-TESTING RESEARCH Done by advertising agency before finished artwork

is sent to the client.

Purpose: To find any flaws in the ad message.

or, To creat an effective ad. Message.

Technique used : Consumer panels (focus groups)

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POST-TESTING RESEARCH Done after an ad/ad campaign is over. It evaluates impact of ad campaign/an ad. It measures factors like awareness, attitude

(preference / liking), purchases.

Actual measurements are compared with ad. goals to evaluate success.

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PLANNING ADVERTISING & INTEGRATED BRAND PROMOTION Advertising plan & Its marketing context A typical advertising / IMC Plan includes: 1. Situational analysis 2. Marketing & Advertising objectives 3. Advertising / IMC budget 4. Media strategy 5. Message strategy 6. Integration with other IMC tools 7. Evaluation of effectiveness

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SITUATION ANALYSIS INCLUDES Background research : collect, analyse information

about company, product, brand, consumers,

competition. SWOT analysis:

Based on above analysis,

(1) Identify communication related problems (attitudes, perceptions) to be solved by advertising.

or (2) Identify opportunities that advertising can exploit / creat.

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MARKETING AND ADVERTISING OBJECTIVES. Marketing objectives based on corporate objectives & situational analysis. Advertising objectives/goals derived from marketing objectives. Definition: a specific communication task & achievement level to be accomplished with a specific audience in a specific period of time. To be effective, an ad must be seen, read, understood, believed, and acted upon. Hence, ad objectives has 3 categories : sales, communication, behavioural objectives.

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SALES OBJECTIVES Some times ad objective stated as increase in sales

by %, quantity, or value.
This is unrealistic and unfair. Why? Communication objectives Existing levels of awareness, knowledge, liking, and preference for a brand measured. If low, message & media strategies developed to increase it.

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BEHAVIOURAL OBJECTIVES Achieving communication objectives is not enough.

Advertising should induce action / behaviour in

consumers like trial / purchase. Hence, behavioural objectives could be: (1) Increase brand usage rate among existing consumers (2) Encourage non-users for trial and / or purchase of brand.

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ADVERTISING BUDGET How much a company need to spend on advertising /

promotion / IMC ?
Four commonly used budgeting methods are:

Percentage-of-sales method
Competitive parity method

Affordable method
Objective and task method

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PERCENTAGE-OF-SALES METHOD Most common method

Budget worked as a percentage of projected sales.

Advantages : (1) Simple, (2) Easy to implement, (3)

Expenses related to sales, (4) Comparison with

competitors budgets possible. Disadvantages : (1) Ignores objectives of advertising; (2) Products with low sales, high potential, gets less budget.

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COMPETITIVE PARITY METHOD Budget based on competitors promotional

expenditures.
Assumptions (as advantages) are: Competitors expenditures show collective wisdom. would prevent promotion war. Both assumptions are incorrect. Why? Disadvantage: Ignores companys capability. Should be used with some other method.

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AFFORDABLE METHOD

After allocating to other relevant company

expenditures, whatever left is allocated.

Advantages: Simple, easy to implement, comparison

with other company expenditures. Disadvantages: Ignores role of advertising as investment in brand building and its impact on sales.

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OBJECTIVE & TASK METHOD Increasingly popular method. Process / procedure includes: Specify ad objectives / goals. Decide tasks to be performed to achieve ad objectives. Estimate cost of performing tasks. Total costs of all tasks to arrive at ad budget Advantages: (1) build-up approach; (2) shows relationship between expenditure, ad insertions, awareness levels, attitudes, purchases. Disadvantage : difficulty in deciding tasks & cost estimates.

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ROLE OF ADVERTISING AGENCY Role / Functions of advertising agency:

Advertising planning & execution For SMEs as clients. Helps clients achieve advertising and marketing goals. Provides specialised services Like sales promotion, video production. For particular market / industry. Three types of ad agencies Full-service agencies Creative agencies Media-buying agencies

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ADVERTISEMENT PLANNING: AN INTERNATIONAL PERSPECTIVE

International advertising has two approaches: Market-oriented approach. Culture-oriented approach. Most companies have central control of ad campaign with local adaptation in execution. Steps involved in planning international advertising Global advertising objectives Targeting issues Positioning the global brand Setting ad budget Executing international ad campaign

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MODULE -3: CREATING BRANDS

What is a brand? A product is a physical thing. A brand is a perceptual thing that lives in consumers mind. Main tasks in creating / building a brand are: Choosing / selecting brand names. Positioning the brand. Providing effective communication support.

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CHOOSING BRAND NAMES

Alternatives available are: Name of a person (e.g. Tata, Honda) Nature of the business (e.g. IBM, British Airways) Use of Acronyms (e.g. H.P., IBM) Artificial names (e.g. Accenture, Xerox) Metaphorical names(e.g. Oracle, Apple)

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BRAND POSITIONING It means establishing a distinct, valued place for a brand in target customers mind. First decide target customers / market segments. Then determine brand positioning by Deciding distinct / unique value proposition. It should answer target customers question: why should I buy your brand, rather than competing brand.

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PROVIDING EFFECTIVE COMMUNICATION This is done by using brand building tools:

Advertising in TV, news papers, magazines, journals.

Sponsorship in events (Cricket matches, Car races)

Direct marketing (Internet, Direct mail,

Telemarketing).

Public relations.
Marketing firms hire brand consultants.

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CREATIVE PROCESS What is creativity?

What is an important trait of a creative person?

Graham Wallass steps in creative process:

1. Preparation
2. Incubation

3. Illumination
4. Verification

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ANOTHER APPROACH TO CREATIVE PROCESS James Youngs 5-step approach: 1. Immersion 2. Digestion 3. Incubation 4. Illumination 5. Reality / Verification

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What is an Advertising Message?

It is the idea, thought, image, attitude, or other

information conveyed by advertiser to target audience. It is conveyed in words or visuals. It is delivered through communication media.

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MESSAGE OBJECTIVES Advertiser to know what objectives the message should achieve. The message objectives are: Perception: Create awareness, interest, attention, recognition, recall. Affective: Touch emotions, create feelings. Cognitive: Deliver information & understanding. Persuasion: Change attitudes, create conviction and preference. Transformation: Establish brand identity & associations. Behaviour: Stimulate trial, purchase, or repurchase.

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MESSAGE STRATEGIES Message / appeal strategies are: 1. Rational / Informational / Logical Appeals 2. Emotional / Transformational Appeals 3. Moral Appeals 4. Combining Rational & Emotional Appeals 5. Other types of Appeals

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RATIONAL / INFORMATIONAL / LOGICAL APPEALS Also called Head Strategy, as they relate to head,

using hard-sell approaches:

Feature appeal Focus on traits / attributes.

Used by high-involvement / technical products.

Favourable price appeal

Competitive advantage appeal

Popularity appeal

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EMOTIONAL / TRANSFORMATIONAL APPEALS These appeals relate to customers psychological & social needs. They arouse positive / negative emotions that motivate purchase of product / service. These appeals focus on: (1) Personal bases of feelings (e.g. Joy / happiness, Sorrow / grief, Love/affection) (2) Social bases of feelings (e.g. Respect / status, Affiliation / belonging)

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MORAL APPEALS They draw attention of audience to what is right. These appeals ask people to support social issues (Polio eradication, AIDS prevention, Child labour prevention) Combining Rational & Emotional Appeals In many purchase decisions, consumers decisions are based on combination of R&E appeals. Degree varies upon buying situations and product / service category.

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OTHER TYPES OF APPEALS Teaser Advertising Typically used when a new product is introduced. Objective: to build audience curiosity, interest, and excitement. Reminder Advertising Objective: to keep brand name in audiences mind.

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COPY WRITING What is a copy? Creative plan includes attention getting and memorable phrases. Copy-writer shapes words in an ad Copy writing for print advertisements It has two types of copy writing Display copy : Includes larger type-size elements Body copy (or Text) : Includes smaller type sizes

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DISPLAY COPY Large type-size elements are: Headlines, subhead lines, Taglines, slogans Headline It is conveys ad message / theme It is a sentence / phrase important for catching attention Types of Headlines Benefit headline Information / News headline Puzzle / Provocative headline Question headline

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SUBHEADS Most adds have one / more subheads. They enhance readability and highlight key sales points.

When subhead is above headline, it is underlined,

called kicker / overline.

When subhead is below headline, its type-size is

smaller than headline, but larger than body copy.

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SLOGANS Slogans / theme lines are repeated from ad to ad. why? They must be catchy and memorable. TAGLINES Sometimes slogans are used as taglines. Used at the end of an ad, to complete / wrap up the creative idea.

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BODY COPY It is main text of an ad It includes sales story, arguments, explaination, proof. Only 10% readers read body copy. Long enough to complete message, short enough to retain readers interest. Body copy writing styles / approaches: Straight forward : factual copy Narrative : Story telling Dialogue : Conversation Explaination : Explains working of something Translation : of technical information

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CAPTIONS Part of body copy captions explain visuals.

Visuals and captions have high readership.

VISUAL ELEMENTS They are major components of print advertising. These elements work with headline & body copy to enhance ad impact. Art director decides. Responsibility with artists / photographs.

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COPY WRITING FOR CYBER SPACE Web / Internet advertising is more interactive than any other mass medium. Web copywriting challenges are: To attract people to the site. To have dialogue-based communication. Purposes of internet Advertising: Brand reminder for people visiting Web site. Delivers persuasive message. Drives traffic to advertisers Web site. Online / Web / Internet advertising classified as: (1) Banner Ads, (2) Web Ads, (3) Other formats.

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BANNER ADS They are most common form of online ads. These are small rectangular boxes with text, images, animations, with company / brand name. Like outdoor ads, importance to creativity with clever phrases & bright visuals, by Offering discounts / freebies Changing offer frequently (perhaps daily) Offering knowledge / asking provocative questions. Asking sufers opinion & rewarding them. Informing, entertaining, providing links.

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WEB ADS Similar to traditional print advertising. Copy writing important for creating interest. Objectives Create awareness, interest in products / services Build brand image. OTHER WEB FORMATS Marketers experiment with other web formats like pop-ups, Ad buttons, sponsorships, Interstitials, classified ads Internet method using broadcast media better than TV advertising. (Why?) These designs are constantly changing.

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COPY WRITING FOR BROADCAST ADVERTISEMENT Radio / TV ads are 10,15,30 or 60 seconds in length. Radio ads are different & difficult. (Why?) Tools of Radio Copy Writing It includes audio elements : Voice, music, sound effect. Voice: Includes jingles, dialogue, announcements. Speaking style should match target audience speech. Music : Jingles help remember slogan Hummable music sticks in our minds. Sound Effects: Important for attention-getting & memorable Generate anger, joy, suspense, or sorrow. Create effects of door opening, laughter, etc.

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GUIDELINES OF EFFECTIVE RADIO COPY WRITING Use conversational languages. Design to speak to audience interests like sports, music. Keep it simple & short (KISS): Simple words, short sentences. Make it easy to remember: By repetition. Design to break inattention with something unexpected. Planning radio commercials Radio script format. Sources of audio written on left. Content on right. Instructions & descriptions in capital letters. Appoint producer, who casts the commercial. Select music director to choose music Studio mixes music, sound with voices, sends tape to radio station.

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HOW TO WRITE A TELEVISION COPY? Powerful medium, combining visuals & verbal messages. TV commercial production is complex & expensive. Characteristics of TV copy Action: TV action & motion attracts viewers attention & interest. Demonstration: TV ads are suitable for products needing demonstration. Storytelling: TV commercials use storytelling about product & people using it. Emotion: TV Commercials make emotional appeals.

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TOOLS / COMPONENTS OF TV COPY WRITING Two components of TV commercials : Audio & Video Both work in coordination to create impact. Video Elements Includes presenter, action sequence, sets, lighting, etc. Emotions expressed in facial expressions, body language. These are used in movies, TV shows, plays. Audio Elements Similar to Radio, 3 elements: Music, Voice, Sound effects Used differently in TV, due to audio connected to visual image. Voice may be of a presentor, 2/3 persons in conversation, or unseen presentor (voiceover) Background music / song used for jingles / catchy songs.

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PLANNING & PRODUCTION OF TV COMMERCIAL Planning a TV commercial includes: Type of appeal: Rational, emotional, moral, combination Scenes: No. of scenes. Key visual: That would be remembered by the viewers. Length of the commercial: 10,15,20,30,60 seconds(Most common?) TV commercials planned based on 2 documents: (1) TV scripts (Prepared by copy writer) (2) Story board (Drawn by art director)

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SCRIPT & STORYBOARDS TV Script: Like radio script, a written form of commercials audio plan. It includes words, dialogue, instructions, description of sets, lighting etc,. Storyboard: It is a visual plan / layout of commercial. It includes no of video scenes, shots in each scenes, etc. Art director & copy writer create storyboard, combining video scenes with audio parts. It gives clear picture of TV commercial. Animatic is a videotape of storyboard with soundtrack. Production of commercial starts after approval of storyboard / animatic by the client.

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ART DIRECTION & PRODUCTION IN PRINT ADVERTISING Steps in art direction: Choose elements: Photos, illustrations, colour, typograph Produce layout by handling above elements on paper Arrange elements using design principles. Steps in production of print ad: Understanding print media requirements for newspaper and magazine ads. Use lineart or halftone print images, and colour reproduction. Common printing processes used in advertising: Letterpress, offset lithography / printing, silk screen, etc Trend in print production is digitisation, using computers.

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ART DIRECTION & PRODUCTION IN TV ADVERTISING TV art direction includes: Visual storytelling. Making video advertising on computers. TV commercial length is important in design. Steps in production of TV commercials Message design Preproduction Production Postproduction

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MODULE -4:
PLACING THE MESSAGE IN CONVENTIONAL AND NEW MEDIA
World of promotional media Fundamentals (basic concepts) of media planning Media planning process Media strategies (including media mix selection / media choices) Scheduling Contemporary essentials (challenges) Media choice (planning) & integrated brand promotion (IMC) Strategic planning considerations in media choice

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WORLD OF PROMOTIONAL MEDIA

Firms allocate budget to promotional media. Companies achieve efficiencies by replacing one promotional media with other. Characteristics & costs of media: Advertising Sales promotion PR & Publicity (MPR) Personal selling Direct marketing

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FUNDAMENTALS (BASIC CONCEPTS) OF MEDIA PLANNING

Media : The channels of communication that carry the ad message to the target audience. Media planning : A decision process for using advertising time & space in achieving ad objectives. Media plan: Identifies best media to use for delivering ad message to target audience, in a written form. Media class: General category / type of medium (TV, radio, newspaper) to carry ad messages. Media vehicle: A specific message carries within a medium (TOI in newspaper class in print media) Media mix: Combination of various media types in ad plan to deliver a message to target audience.

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BASIC CONCEPTS (CONTINUED) Reach: Percentage of (or measure of ) media audience exposed atleast once to ads message in specific time. Frequency: Number of times a person (audience) is exposed to ad in a time period (i.e. repetition of ads). Impression: Estimates readership of a newspaper / magazine, actual viewers of TV, listeners for radio Circulation: Measures number of copies sold for a newspaper or magazine. Exposure: Measure households with TV sets turned on (HUT-Households using television). Coverage: Potential audience that may get to exposed to ad message through a media vehicle.

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MEDIA PLANNING PROCESS The media planning process is shown below:

Carry out Media Research Set Media Objectives Develop Media Strategies

Workout Media Scheduling

Who are involved in media planning process? What is the difference between media planning and media plan?

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MEDIA RESEARCH Focus of media research and analysis is: Target audience Factors influencing media plan

Where and when to advertise

Category development index (CDI), and Brand development index (BDI) are used to decide where to advertise.

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SETTING MEDIA OBJECTIVES Derived from marketing & communication objectives. Media planner consider 3 important elements:

Degree of exposure / impressions.

No. of people exposed to message (reach). Repetition needed to make impression (frequency).

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MEDIA STRATEGIES Media strategies should achieve media objectives, reach target audience with cost effective media-mix to deliver the ad message.

It includes following decisions:

Geographic selection (coverage) Media mix selection (Media choice) Cost effective media & media vehicles.

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GEOGRAPHIC SELECTION / COVERAGE Geographic location of target audience is an important factor. Use of category development index (CDI) helps to indicate geographic areas where a product category is strong & weak. Use of brand development index (BDI) shows geographic areas where a brand is strong & weak Accordingly geographic areas are selected & advertising budget allocated. How to calculate CDI & BDI?

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CALCULATION OF BDI & CDI

Brand development index (BDI)

% of brands total country sales in Karnataka X 100

% of total country population in Karnataka

Category Development Index (CDI)= % of product categorys total country sales in Karnataka X100 % of total country population in Karnataka

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WHERE TO ADVERTISE?
BRAND DEVELOPMENT INDEX (BDI)
High Low

High market share Good market potential High market share Low market potential

Low market share Good market potential Low market share Low market potential

CATEGORY DEVELOPMENT INDEX (CDI)

Based on above, where should company advertise? Source of secondary data: NRS, IRS, I& B Ministrys Annual report.

Low

High

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MEDIA - MIX SELECTION / MEDIA CHOICES What is media-mix? Why most firms use it? Factors used for selection of media-mix are: Product characteristics Media characteristics

Message characteristics
Media habits of target audience

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PRODUCT CHARACTERISTICS Product characteristics like visuability, believability, and colour can be best shown by selecting appropriate media. (any examples?) Message characteristics Media choice / selection is influenced by information content & timeliness. (examples?)

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MEDIA CHARACTERISTICS Selection of media is also influenced by comparison of media & their characteristics
Medium Advantages Disadvantages

Newspapers

Mass coverage, local market coverage, High believability, Large space, Choice of ad position
Combined impact in sight, sound, motion; Mass coverage; High reach; High attention.

Short life, Poor reproduction quality, Low attention getting, clutter, Selective exposure.
High cost, High clutter, Short exposure, Low audience selectivity.

Television

Radio

Mass use, Low cost, High Only audio, Low attention frequency, High demographic & getting, Noise, Short lived geographic selectivity. message.

/AD/KKH/M4/15/28 Medium Magazines Advantages Focused segmentation, High quality reproduction, Long life message, High information content. Disadvantages Long lead time for ad placing, only visual, Low frequency, Ad position not guaranteed.

Outdoor

Low cost, High repeat exposure, Short message, short High visibility, Low Competition, exposure time, Creative Specific location. Limitations, Poor image,Limited audience selection. Interactive possibilities, Lowcost, High selectivity, Increased attention & involvement. New media, Low users in some countries, Limited creative capabilities.

Internet

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MEDIA HABITS OF AUDIENCE Information on media habits of target audience can be obtained through consumer research. EG. TV & radio are effective media for reaching

teenagers.
Information on media vehicles for specific target

audience can be obtained through target audience

research.

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COST-EFFECTIVE MEDIA & MEDIA VEHICLES Media characteristics tables show high & low cost media. Size & cost of reaching target audience, referred as CPM (Cost per thousand circulation), is more important.
CPM=

Cost of ad space

circulation

X1000

Used for comparing media vehicles for magazines.

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COST PER RATING POINT (CPRP) For broadcast media, CPRP or CPP (cost per point) are used to compare vehicles.
CPRP = CPP =

Cost of message /commercial time

Programme rating

Programme rating (percentage of exposure) of 30 means 30% of house holds with TV had tuned in to that programme. For newspapers, when cost of advertising is know,
CPM=

Cost of ad

Circulation

X1000

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SCHEDULING Media schedule is the calendar of advertising plan.

Media planner manage schedules tactfully for

maximum impact with given ad budget. Scheduling strategies include: Timing (when to advertise?) Duration (how long to advertise?) Continuity (how often to advertise?)

Who executes the media plan?

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TIMING (WHEN TO ADVERTISE?) This is based on seasons, months, parts of week, or

the day.
Factors considered for timing decisions are: How often the product is purchased? Whether the product used more in some months? Customers best time to buy. Competitors ad schedules.

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DURATION (HOW LONG TO ADVERTISE?) If its a ad campaign, how long it should run? If budget is small, how to cover the year? How much advertising is enough? Lead time concept: Two meanings.

1) Time allowed before beginning of sales period.

2) Production time to get ad in the medium.

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CONTINUITY (HOW OFTEN TO ADVERTISE)

There are 3 strategies: Continuous strategy Flighting strategy. Pulsating strategy.

Continuous strategy
Regular / continuous pattern without any gaps. i.e. every day, every week, every month. Suitable for product categories regularly consumed / used. Advantages: Covers buying cycle, continuous reminders, get media discounts & preferred ad locations. Disadvantages: High costs, overexposure possibility.

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FLIGHTING STRATEGY

Alternating periods of intense advertising & no advertising. Used for products with seasonal demands. Advantages : cost efficiency (covers purchase cycles only), use many media & vehicles with limited budget. Disadvantages: decreased awareness, interest, retention of ad message during non-scheduled periods, advantage to competitors. Pulsating strategy It is a combination of continuous & flighting strategy. Advantages of both continuous & flighting. Disadvantages: Not suitable for small budgets & seasonal products.

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SCHEDULING STRATEGIES

Jan F

Continuous Flighting Pulsating

Criteria used for decision: Advertising objectives Buying cycles Advertising decay level Ad budget Competitive spending

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1.

2. 3.

CONTEMPORARY CHALLENGES / ESSENTIALS Media industry is changing fast. These changes create new ways of doing things: Changes in media buying & planning: Tug of war between media-buying firms and ad agencies. Online media-buying. Changes needed in media research. Reliable audience research on new media Improvements needed in media monitoring system. Need information on effectiveness of combined media.

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1.

2.

3.

MEDIA CHOICE / PLANNING & INTEGRATED BRAND PROMOTION (IBP) How media choice (planning) will change to accommodate new tools from integrated brand promotion (IMC)? Reliance on mass media to be reduced. Data base analysis needed often to know which new media reaches target audience. Numerical data needed For comparing media vehicles, media exposure data of the past to be mixed with scanner sales data. Media planners to know more about other communication tools. By sitting in creative meetings. Undertaking special training.

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MEDIA CHOICE & IBP (CONTINUED) 4. Need to evaluate off-beat communication tools.

are they ads? Their effectiveness?

5. Reach & frequency will continue. For brands with wide distribution, reach & frequency will be important. 6. Cost per thousand (CPM) will continue CPM will be one of the many criteria for media vehicle selection.

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STRATEGIC PLANNING CONSIDERATIONS IN MEDIA CHOICE Strategic planning (thinking) media choice (selection) includes: 1. Effective matching a mediums audience profile to target audience. Consult marketing research agencies. 2. Use consumer research information on media habits Use data collected during strategic planning i.e. segmenting & targeting.

Consumers moving towards new media. 3. Use company sales forecasts by geographic areas for media choice.

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MODULE -5:
INTEGRATED BRAND PROMOTION

We shall discuss in this module:

What is Traditional support media? What are Event Sponsorship and Branded entertainment? Sales Promotion: Definition, directed at consumers, trade channel, business markets. What is direct marketing and its media applications? Public relations, corporate advertising.

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TRADITIONAL SUPPORT MEDIA Traditional media are : advertising, personal selling, sales & trade promotions.. These media alongwith direct marketing and public relations form Integrated Brand Promotion. In B2B marketing, traditional medium (like advertising) supports other promotional activities (e.g. personal selling, trade shows) In consumer marketing, advertising is primary media. Other promotional tools support advertising.

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EVENT SPONSORSHIP (ES) Event sponsorship occurs when company supports an event. (Examples?) Event marketing is similar to sponsorship marketing. Events include sports, musical concerts, entrainment tours,etc. Benefits of event sponsorship? Building company image Developing customer relationship Boosting employee morale

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FOR ENSURING MAXM. BENEFITS FROM ES Companies should:

Set objectives of the sponsoring event.

Match event with target segments

Ensure company name, logo in event promotion ads &

brochures. Evaluate results & investment. Why popularity of ES gone up? Freelance event marketing specialists available.

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BRANDED ENTERTAINMENT (BE)

It is placing a branded product in the content of an entertainment programme. BE / Advertainment is integrating brands in the content of TV Shows. (Examples?) Under 25 segment likely to try brands placed in movies. Expenditure of brands placed in Video games may reach $1 billion by 2010. Success of BE depends on authenticity of the claim and celebrity connection. Consumer advocacy groups want consumers to be informed :BE are paid ads. Regulations vary form country to country.

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SALES PROMOTION & POP ADVERTISING Definitions of sales promotion are many. Why? Kotler : Sales Promotion includes diverse incentive tools, short term, to stimulate quicker / greater purchase of products / services by consumers / trade. Strang: Sales promotions are short term incentives to encourage purchase / sale of a product / service. Sales Promotion offers an incentive to buy.

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SALES PROMOTION DIRECTED AT CONSUMERS It is called consumer sales promotions / consumer promotions. It done by manufacturers / retailers. Major objective: to stimulate consumers to buy, by using pull strategy. Other objectives: Encourage prospects to try a product Increase consumption of established brand Retain consumers & build brand equity.

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MAJOR CONSUMER PROMOTION TOOLS Samples / sampling.

Coupons
Price-offs / Price discounts / Price deals

Premiums
Prizes (contests & Sweepstakes)

Refunds & Rebates

Frequency programs

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CONSUMER SALES PROMOTION Samples / sampling Encourage consumers to try new products. Normally, they are provided free of charge. Distributed thru sales force, retailers, direct mail, ad offer, or attached to another product. Coupons Price reduction offers to consumers Used by manufacturers & retailers. Distributed by direct mail, attached to / enclosed in other products, or inserted in newspaper / magazine ads.

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CONSUMER SALES PROMOTION (CONTINUED) Price Discounts / Price offs / Price Deals. Temporary reduction in price. Can be physically marked on products. Benefits: stimulate sales, Counter competition Premiums Are gifts, prizes, special offers. Major types: Free-in-the-mail: gifts against proof of purchase In / on package : gifts attached or in the package. Store / manufacturer : gifts given by retailer / manufacturer after purchase. Self liquidating: specified amount covers cost of premium.

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CONSUMER SALES PROMOTION (CONTINUED) Prizes (contests & sweepstakes) Major factor: Prizes should be desirable for participation. Contests: Require activity from participants. Sweepstakes: Based on luck / chance factor. Benefits: increase in awareness, image, customer traffic. Company provides prizes, entry forms, ads, display material, and legal statements (if required)

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CONSUMER SALES PROMOTION (CONTINUED) Refund & Rebates Refund is cash return, after purchase & proof of purchase, on soft goods (clothing, food items). Rebate is same thing on hard goods / major value items. Benefits: Increases buying excitements; Retailers like it. Frequency Programme. It is a incentive plan for repeat buying. (Examples?) Objectives / Benefits : Develop customer loyalty. Match / preempt competition

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SALES PROMOTIONS DIRECTED TOWARDS TRADE CHANNEL Called Trade Promotions, it is directed at resellers (wholesalers, distributors, dealers, retailers) Push strategy of manufacturers. Higher expenditure on trade promotions (47%), than consumer promotions (28%), because: Resellers resistance / demand. Competitive pressures. Sales managers views.

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OBJECTIVES / BENEFITS OF TRADE PROMOTIONS Stimulate resellers to push products.

Promote brands by display, carry more stocks.

MAJOR TRADE PROMOTION TOOLS

Trade allowances (off-invoice / off-list)

Free goods Display & advertising allowances Sales contests Point-of-purchase (POP) advertising

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MAJOR TRADE PROMOTIONS 1) Trade Allowances

Purpose : Offer financial incentives to motivate channel members to buy. Types of trade allowances: Off invoice / off list: Discount / rebate on price list / invoice on each case purchased in a time period. Drop ship : Paid to retailers to bypass wholesalers / distributors for preplanned orders. Slotting fees: Paid to retailers to stock a new product. Exit fees: Paid to retailers for removing existing size (SKU) from inventory, in place of a new size.

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TRADE PROMOTIONS (CONTINUED) 2) Free Goods Offered extra cases free to resellers for buying specific quantity or carrying a particular size / flavour. 3) Display / Merchandise Allowance Given to retailers for arranging special product display & for merchandising efforts. 4) Advertising / Cooperative Advertising Allowance Given to retailers / dealers for advertising manufacturers products in a local media (often 5050% basis)

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5) Point-of-Purchase (POP) Advertising A special type of display that advertise products in retail store where products are available for purchase. POP materials: Stickers, banners, posters, signs, streamers. Purposes: getting customers attention; Promoting incentives; Reinforcing message; Boosting sales. 70% brand choices (for all products) made in store Disadvantage: Waste when not used. (why not used?) For effective POP: Consult retailers, integrate messages, make it attractive.

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TRENDS IN POP DISPLAY Integrate with company web site. Change message daily / weekly. Monitor results with cash register data. Difference between POP & POS? 6) Sales contest / Trade contest Purpose: To increase sales over specific period. Held at various levels. Effective when held for a region / state. Prizes (spiff money) given to successful participants.

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SALES PROMOTION DIRECTED TOWARDS BUSINESS MARKETS Major Sales Promotion tools for Business Markets Trade shows / Exhibitions. Sales contests. Specialty advertising / promotional novelties / Gifts. Seminars Catalogues Promotional letters Demonstration

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TRADE SHOWS / EXHIBITIONS Mostly for industrial products in B2B markets Industrial associations organise Members / suppliers buy space, display, demonstrate their products. Major benefits: Generate orders & sales leads Customer contacts & relationship Introduce new products / services Disadvantages: High costs and hence select few trade shows. Competitors know new products.

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SPECIALTY ADVERTISING / PROMOTIONAL NOVELTIES / GIFTS Low cost gifts are given to customers. Objective: Strengthen business relationships. Should be unique; convey name / logo subtle way. Catalogs Give information about products / services. Sales people establish contacts with technical people. Two types : General, Specific. Distribute through direct mail, trade shows, sales people.

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SEMINARS Convey technical / educational information. Audio visual presentation by technical experts. Benefits: Influence key buying centre members Build relationships. Promotional Letters Sent to business customers with catalogs by direct mail / e-mail. Objectives: Create awareness, favourable impression. Demonstration Useful for salespeople for presentations. For prospective customers at factory, trade show, another customers premises.

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DIRECT MARKETING (DM) What is Direct Marketing? It uses customer direct channels to reach & deliver goods / services to customers without marketing middlemen. Media Applications / Channels of DM: Direct mail Catalogs Telemarketing E-marketing / Internet Kiosks Direct response media / Mass media.

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BENEFITS OF DM Benefits to customers Home shopping convenient, hassle free, fun. Saves time, comparison, orders for others also. Benefits to marketers Builds relationships with customers Customised (Individualised) message Less visible to competitors More profitable (How?) Enhance brand / company loyalty.

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DIRECT MAIL / MAIL Sending offers, announcements, reminders by letters, coupons, CDs, etc. Types:(A) Paper-based: By postal service, courier, fax. (B) Electronic: E-mail (C) Telephone: Voice-mail, cell phones Stages passed through by direct-mail. Mass mailing of standard messages, low response. Database marketing: Digital direct-to-press, higher response rate. Interactive marketing Lifetime value marketing

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DIRECT MAIL (CONTINUED) Advantages Enough space for complete sales message. Customised communication with database. Reach audience inaccessible to other media. Disadvantages Negative (junk-mail) perception. Low response rate. Mailing lists need continuous updation.

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CATALOGS / CATALOG MARKETING Category of catalogs: Multipage & full-line; Specialty; Business Forms: Print, online, CDs, Videos Advantages of online catalogs Access to global customers Large savings in printing & mailing costs. Complete information, high-quality design. Disadvantages Viewed as junk mail High cost, low response rate Need continuous updation of database.

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TELEMARKETING Use of telephone & call centres to attract prospects, to sell merchandise, provide service, answer questions. Two types: Inbound & outbound Key points: Message simple enough for delivery on phone Short & compelling message to continue listening Advantages Reduces prospecting & selling costs. Increases sales revenue; improves customers satisfaction. Disadvantages Restriction from do-not-call list Many consumers resent calls from firms

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E-MARKETING / INTERNET Functions of Internet: Communication channel Distribution channel Transaction channel Information channel Used as a library, newspaper, TV set, shopping mall. Advantages: Provides greater interaction & individualisation Makes one-to-one marketing possible Disadvantages: Generates spams & spoofing Permission marketing approach to minimise spams

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KIOSK It is Special structure, with selling / information unit. (Examples?) Often located at high-traffic places. DIRECT RESPONSE MEDIA / MASS MEDIA Mass media used for direct marketing: TV, Radio, Magazines, Newspapers. Ads in mass media should carry toll-free numbers, web sites. Consumers can ask more information / book orders. Newspapers, magazines can target specific audience.

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PUBLIC RELATIONS (PR) It includes many programmes designed to promote / protect company image. PR Department A company unit, managing relations with internal & external stakeholders. Functions performed: Advising, Lobbying, Press relations, Corporate communications, Monitoring stakeholders. Marketing public Relations (MPR), new name for publicity, performs many tasks. Tools used by MPR : Publications, Events, Sponsorships, Public Service activities, News.

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CORPORATE ADVERTISING (CA) CA is extension of PR functions. Objectives of CA Enhance company image (Corporate image ads) Create & maintain corporate identity (Corporate identity ads). Express company views on issues (Advocacy Advertising) Associate company with national / social causes Counter negative image / attitude towards the company. (Examples?)