Introduction to Integrated

Marketing Communications
Your guide for the journey: Dr. Sumanjit Dass
Contents to be covered

• Marketing Mix
• Product and its Layers
• Product Mix
• Promotion/ Communication Mix
• How marketing of communication
work using Hierarchy-of-effects
model, attitude formation and
change and post experience models
• Jealous as Axe
 Marketing Mix
Product Mix
Communication Mix
Marketing Mix

• Product
• Price
• Place
• Promotion Does
What is
product Types of
a
have Products
product
layers
Instruments of Marketing Mix
What is a product

Choose the right answer

❑ Something that fulfills my needs and wants
❑ Fulfills my desires
❑ Gives good performance
❑ Is close to my heart
❑ Is an extension of who I am as a person
What is
a
product
Tata Salt to captain cook
What is
a
product

Captain Cook:- https://youtu.be/1oQxwvHNOOg

Product entities that can be marketed
Lets design the Product Levels of Tropicana

Potential

packaging, variations “no pulp”

,“lots of pulp, ”low acid” and
distribution strategy.
Augmented
does not contain any water,
sugar, or preservatives

100% pure and natural juice Expected

never made from concentrate
59-ounce container
of juice
Hygienic and safe Basic

Quench thirst core

Product classification (CID) Types of
Products

Durable vs
non-durable
goods

Industrial
Goods

Consumer
Goods
Product mix decisions

Number of product lines

WIDTH company carries

PRODUCT LINE
serve same / similar
Total number of items in the PRODUCT
LENGTH mix
needs or dissimilar MIX
needs but in related
manner DEPTH Number of variants of each
products in the line.

CONSISTENCY How closely related the

various product lines are in
end use, production
requirements, distribution
channels or some other
ways.
Product mix… and its siblings
1. Line vulnerability
2. Line extension
3. Leveraging or up market stretch
4. Brand Deleveraging or down market
stretch
5. two way stretch
6. Product bundling
7. Line filing
8. Line modernization
( modernization, featuring/ image anchors and
pruning).
What’s promotion

“
Inform, persuade
and Remind
A great ad campaign will consumers
make a bad product fail
faster. It will get more “
people to know it’s bad.
Bill Bernbach,
Marketing Industry Legend

The ways to influence

consumer decision
making process
The Marketing Communications or Promotional Mix (PRPS ADS + Events)
The American Association of Advertising Agencies
uses the following definition
of IMC:

‘a concept of marketing communication planning that

recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of communication
disciplines, e.g. general advertising, direct response, sales

promotion and public relations – and combines these

disciplines to provide clarity, consistency and maximum

communication impact ’
 Integrating
Marketing Mix and
IMC
The marketing mix and integrated marketing communications

a) Corporate advertising
b) Sales force and channel
communications, trade shows,
packaging, direct marketing,
sales promotions, etc.
c) Distribution, logistics, pricing
new product development, etc.
d) Investor, community, employee
and government relations
e) Product publicity, brochures,
collaterals, crisis
communication, sponsorships
f) Traditional mass media
marketing

Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Evolution of Marketing Thought’,
Journal of Business Research, 37, 155–62.
Perception of IMC in the motor carrier industry
Classic versus integrated communication
Business insight: Combining marketing communications tools to create synergies

Integrating the various tools can lead to synergies in a number of ways. Here
are some examples:

■ The sales team have an easier job if their product or company is well known
as a result of sponsorship or advertising.
■ In-store or point-of-purchase communications that are consistent with
advertising are much more effective.
■ A promotional campaign that is supported by advertising is generally more
successful.
■ Direct mailing is more effective when prepared by an awareness-increasing
advertising campaign and supported by a sales promotion campaign.
■ Public relations, corporate advertising and sponsorship can have synergetic
effects on company image-building.
■ Websites will be more frequently visited when announced in mass media
advertising.
■ Advertising for a trade show will be more effective if an incentive to visit the
stand is offered.
 How marketing
communications
work
Hierarchy-of-effects model
 Hierarchy-of-effects model

THINK

FEEL

DO
Hierarchy-of-effects model vis-à-vis marketing objective
Other Hierarchy-of-effects models
Attitude formation and change and post experience models
The Elaboration Likelihood Model
Elaboration Likelihood model
The Elaboration Likelihood Model
Environment/ source Characteristics Internal
Level of expertise of speakers, are they
Schools should Schools should knowledgeable, trustworthy
not (NO) have have (YES) cola External
cola dispensers dispensers Discussion in campus/bar/ webinar/ ad

How persuasive they are with their

message, their grammar and vocabulary
Message , if the message was well though of or
Characteristics how well was it written, the mood of
the speakers

Its everything about the listener

How intelligent, interested and
motivated are the listeners
Are they in good or bad mood
Target audience Characteristics
The Elaboration Likelihood Model
Lasting Attitude Change
Internal
Level of expertise of speakers, are they
Environment/ source
knowledgeable, trustworthy
Characteristics Message/ Source
External Target
Central Consumers learn
Discussion in campus/bar/ webinar/ ad Characteristics through interest.
information Motivated Hence, Deep
How persuasive they are with their processing of
Routes Inspired
Message message, their grammar and vocabulary information
Important
Characteristics , if the message was well though of or
how well was it written, the mood of
the speakers Target
Peripheral Characteristics Message/ Source
Pay less attention to
Its everything about the listener information Demotivated message and
Target audience Not Inspired
Characteristics How intelligent, interested and Routes importance to
Not Important superficial
motivated are the listeners characteristics (how
Are they in good or bad mood attractive is speaker
or PPT)
Shallow processing
of information

Information can take 2 routes Temporary Attitude Change

The Elaboration Likelihood Model
 Modern day
marketing
: Profile, Target
and position

Traditional
Marketing
Where the game of STP all starts
Where STP Starts?

Identifying markets with unfulfilled needs

Determining market segmentation

Selecting a target market(s)

Positioning through marketing mix program

Levels of Market Segmentation
 Mass Marketing
One mm for all :-coke 6.5 ounce Levels of Market
bottle
Segmentation
Segment Marketing
One or more mm targeted to
one or more segments:- A,B,C
Segment cars

Niche Marketing
One or more mm targeted to
one or more sub-segments:-Diabetic Living or
Ebony, People magazines

Micro Marketing (1-1)

Local One or more mm targeted to specific individuals or Individual
Marketing communities:- B1G2 , private jet manufacturers, Marketing
Emu Today and tomorrow, Potato Review
What is an effective segmentation
Any segment should have the following

• Actionable
• Measurable
• Sustainable
• Accessible
• Differentiable
Bases (basis) for segmentation
 Customer Characteristics

Only in
Bases (basis) for segmentation 2 ways
Customer Behaviour
Bases or criteria for Segmentation

Customer Characteristics Customer Behaviour

(lifestyle, personality, and values)

 Geographic Demographic Psychographic

Customer Characteristics

Bases (basis) for segmentation

Customer Behaviour
Users Benefits Usage Loyalty
Demographic Segmentation: INCOME
 Established middle class
Elite Technical middle class
New affluent workers
Traditional working class
Emergent service workers

Precariat
What is Social?
 Human Resource
Production
R&D Competitor
Financial capability Organization
Marketing Department Suppliers
Market
Intermediaries
Internal Environment
Customers
Firm
Micro environment
External Environment
Macro environment Political
Economic
Social
Technological
Legal
Environmental
Cultural
International
National
Micro (my) Demographics
Society is organised
When we talk of culture we In the social
group of people
almost are taking of things change you will be
living together and
Culture is set of that are almost tangible like able to identify
each society is
learned values, (our language, technology, the roots of the
geographically
customs behaviours churches, schools, houses, social institutions.
dispersed from the
and beliefs that government and our But in cultural
other.
characterise a group institution) and intangible change the roots
of people. (roles, status, norms and can be identified
Society: a bunch of
Put simply it’s a way values). with the
people living and
of making a technology and
working together Cultural change has
population into a some new ways of
Culture: how those a very broad and
group by their: life.
people live and work dynamic sort of
way of Living
together. change appearance.
On other side social Social change is
change is the part of defined to be the
the cultural change. change of
improvements that
is hence made to
uplift certain life
style.
Definition of Culture
Culture provides the FRAMEWORK
within which individual and household
lifestyles evolve.

Culture is the complex VALUE SYSTEM

whole that includes knowledge, belief, art,
law, morals, customs, and any other
capabilities and habits acquired by humans
as members of society.
Demographic Segmentation: INCOME
Demographic Segmentation: INCOME
Demographic Segmentation: GENERATION

X Y (echo boomers) Z
major cultural, political and economic experiences ,outlooks and values
Demographic Segmentation: FAMILY LIFE CYCLE
Traditional family life
cycle
1. The Bachelor stage
2. Newly married couple
3. Full nest 1
4. Full nest 2
5. Full nest 3
6. Empty nest 1
7. Empty nest 2
8. Solitary survivor
(retired) Modernised life cycle
 Bases or criteria for Segmentation
Psychographic Demographic AGE SEX LIFE customer
CYCLE RACE His
LIFE EDUCATION
STYLE/VALS2 Behaviour
Customer
Characteristics

Geographic REGION CLIMATE

URBAN/RURAL

Usage Rate Brand Loyalty

Behavioral
Towards a product

Awareness Attitude
 High resources
Psychographic Segmentation
Actualizers

Fulfilled Achievers Experiencers

Principle Status Action

Believers Strivers Makers

strugglers
Low resources
Behavioural Segmentation
1. Decision Roles
2. Behavioural Variables
✓ Occasions
✓ Benefits sought (shampoo for strong hair/
dandruff etc.)
✓ User status (non-users, ex-users, potential
users, first-time users, regular users)
✓ Usage rate (light, medium, heavy)
✓ Buyer readiness stage (Awareness,
Knowledge, Liking, Preference, Conviction,
Purchase).
✓ Loyalty status (Hard-core, Split, shifting,
Switchers)
✓ Attitude (enthusiastic, positive, indifferent,
negative and hostile)
What is an effective Targeting
Targeting

Targeting is the second stage to the segmentation process (STP).

After the market has been separated into its segments, the marketer
will select a single segment or series of segments and

'target' it/them. Marketing mix

Selecting a Target Market
5 patterns of target market selection (Product X Market selection ways)

Undifferentiated
marketing

Differentiated
marketing
What is Positioning
Positioning: Select, organize, interpret information
• Positioning is all about “perception”
• Creates customer-focused value preposition
• Value preposition is a statement by a company about an
outcome that a consumer or organization can have using
the companies product or services.
• Products or services are 'mapped' together on a
'positioning map'.

value preposition, the statement

Competitive frame of reference
A brand’s frame of reference is the context in which consumers
view it.
❑ The category it belongs (Pepsi belongs to the carbonated soft
drink category).
❑ its close competitors and substitutes
❑ consideration set consumers use in making brand choice

POPs and PODs

• Points of Parity (POPS) are qualities that you share with
competitive brands deemed to be excellent.
• Points of Distinction (PODS) are attributes, behaviors, or
qualities that make you stand out from your competitive set.
• Dettol vs Savlon
Competitive advantage

Cost Advantage
Competitive advantage
is anything that a (similar product at
lower cost) Personnel
particular company differentiation
does better compare to
its competitors in the Differential Advantage
Channel
same industry (price premium from
differentiation
unique product)
Image
differentiation
 Understanding Brand Branded Endorsed
Architecture Architecture
House Brand

House of
Sub Brand
Brands

Branded House

Endorsed Brand

House of Brand

Sub Brand
CBBE Model
Thank You
Formulating Marketing strategies.
Your guide for the session:- Sumanjit Dass
CBBE Model
PLC Cycle
Eight stages of Product life cycle
• Development.
• Introduction.
• Take-off
• Growth.
• Shakeout.
• Maturity.
• Saturation.
• Decline.
Product is adopted in two ways in the market

Adoption Cycle
= PLC Curve

Diffusion cycle =
diffusion of innovation curve
Product Life Cycle (the adoption cycle)
Saturation

Shake-out

Take-off

Take-off
Other forms or Patterns of PLC Curve
Forget the PLC curve
Examples of brands that did not follow PLC
Seven-up, whose growth had been impeded
because of its image strictly as a mixer, now has
more room to expand as a result of taking the
“Uncola” position against Coke and Pepsi.

Listerine Antiseptic has succeeded in retaining

its lion’s share of the mouthwash market
despite heavy competitive pressures and the
introduction of strongly supported new brands.

Marlboro is fast edging up to top place in the

highly segmented filter-cigarette market by
focusing on the same basic theme—only
developing different variations of it.
 Davidson approach

BCG Strategic
Environment matrix

Porter’s Value Chain

Instruments for identifying potential

competitive advantage
 Porter, Michael E., "Competitive Competitive Advantage
Advantage". 1985, Ch. 1, pp 11-15. The Free
Press. New York.

Low Cost Differentiation

Broad Target Market

Low cost Leadership Differentiation Leadership

Sustainable
competitive advantage

Competitive
Scope

Cost Focus Differentiation Focus

Narrow Target Market

Porters Generic Strategies for competitive Advantage
Pioneer

Market entry :
Better be a pioneer, follower, Leader, Challenger or Nichers
Strategic marketing programs for pioneers
• Mass-market penetration
• Niche penetration
• Skimming and early withdrawal.
Fundamental strategies for pioneers
Targeting 5 option Mass-market penetration
• Single segment specialization
( through Economy or Penetration)
• Selective specialization or
concentrated marketing Niche penetration
• Product Specialization ( through premium or even economy)
• Market Specialization
• Full market coverage Skimming and early withdrawal.

For Volume

For Profit
Strategies for growth markets.
Your guide for the session:- Sumanjit Dass
Market Leader/ Challenger/ Follower
Should the market
Nichers leader be always
measured by
market share?
Distribution
Coverage Technological
Leader: Advancement
Largest Challenger:
Market Attacks
Advertising
Share By virtue of
Leader by
Intensity
Pricing
being better
Rate of new
product
introductions Follower:
Status-quo
Strategies for
Market
Leaders
Strategies for Market Leaders

Will it fall here

New Users
New Usage 6
More usage defensive
strategies Where will product development fall
Next Session No 6: Strategies for growth markets
 Integrated Marketing
Communication
The Traditional and the modern way to say your consumers

“ I LOVE YOU ”
What’s promotion

“A great ad campaign will

make a bad product fail
faster. It will get more
Inform,
persuade
people to know it’s bad.
“ and Remind
Bill Bernbach,
consumers
Marketing Industry Legend

The ways to influence

consumer decision
making process
wilbur schramm’s model of communication
Promotion square ( the blocks between encode and decode)

THE COMPANY Encode THE PRODUCT

PROMOTION SQUARE Encode

Decode

THE BUYER THE CHANNEL

Decode
The promotion or communication mix
The Marketing Communications or Promotional Mix (PRPS ADS + Events)
What is Advertising

Advertising is a process, not a medium in

its own right, although it uses different
media forms to communicate.

Non personal

Paid for

Identified
salesmanship in Print
sponsor

Competitive Act

for Target Customers

Objective Versus Subjective versus Value-oriented benefit of advertisement

These are in the These appeal to the

These are tangible, consumers mind. consumers deepest
physical and concerns, their basic
measurable. These are drives as individual
perceptions. human beings.
These are in the There are only a few of
product. These are what the them - power, security,
consumer believes social acceptance, status,
They are what you she will get as a result greed, sex, survival - and
get by using it. of the objective they are very powerful.
benefit.
Identify the sentences with benefits

Owning the beautiful Toyota Corolla car makes “ Feeding my children with organic meals make me

me feel special, a person clearly of a higher feel that I am fulfilling

status with a more refined taste my role as a mother better”

My new car has better leg-space, pick-up speed

and good mileage

Identify the sentences with corresponding advertising benefits
Advertising Appeals

Advertising appeals are communication strategies that marketing and advertising

professionals use to grab attention and persuade people to buy or act. ...
 1. Moral
2. Rational
3. Emotional
4. Direct Appeal: product
5. Indirect Appeal

Advertising Appeals
Relationship between Advertisement and PLC

Competitive
Comparative
So we leant about appeals lets learn the execution style

The approach used to attract the

attention of consumers
Advertising
Appeals
To influence consumer feelings toward
a product,
service or cause

The way an appeal is turned into an

advertising message
Execution
Style
The way the message is presented to
the consumer
Advertising execution techiques
Ad execution techniques/ Creative formats

Comparison Animation

Testimonial Scientific

Personality Symbol Humor

Demonstration Straight sell

Dramatization Imagery

Music
Slice of life Combinations
Teaser
Lifestyle Fantasy
Vignette
Advertising Copy

Your first love letter to client

What is an Advertisement copy and its objective

An advertisement copy is all the written or spoken matter in an

advertisement expressed in words or sentences and figures designed to
convey the desired message to the target consumers.

DIRECT ACTION-Objective is to cause INDIRECT ACTION-Establishes

immediate direct action on the part favorable attitude towards the
of the consumer. company/brand/idea/service.
USP’s are very strongly mentioned Buying happens in course of time.
Components/ Structure of a an Advertising Copy

• Headline
• Sub headline
• Illustration
• Logo
• Slogan
• Brand name
Techniques of illustrations
10 concrete ways to do it
Comparison illustrations
Comparison
It first shows similarities of the new
product with an existing established
product and then draws the
attention of readers to the new
products comparing it effectively
with merits
Contrast illustrations
• It contrast or shows
dissimilarities of one product
with another as in before n
after; plus n minus.
• It should be done so well that
the product benefits should
be BOUGHT home.
Headline Dramatization
• Both headline and illustration
emerges as attention getters
when used together in a form
that is DRAMATIZED.
• It guarantees both getting
attention and keen interest.
Magnification
• Magnification is used to
emphasize a particular section of
product in detail.
• Normally used for industrial
products and consumer durables.
PRODUCT TECHNIQUE
• Product Technique uses
picture of the product in
isolation
• The basic purpose is to
image the product then the
brand and hence the
company.
• It helps for product
identification
Product in setting
• The product is displayed
information with a
background behind to add
grace to the object.
• This arouses interest of the
reader in the product.
Product in action
• This technique uses the product in
action or use.
• The action used should make
dramatic impression on the reader.
• That’s why a clean shirt is shown on
a smart person and a pressure
cooker with a smart wife.
Product result
• Consumer is more interested
in the satisfaction the product
gives than the product itself.

• Here merits resulting into

benefits and thus satisfaction
is greatly emphasized.
Situation dramatization
• Human is slaves of situations
created by themselves or others
or super natural. Advertisers use
these situations dramatize it and
effectively makes the user come
out with their SOLUTION on sell.
Symbol
• Some abstract ideas like
freshness, status, respect,
danger, purity, responsibility,
speed, generosity , intelligence
can be symbolized and
advertisers use it effectively so
that their brand recall is higher.
Types of Advertising COPY
Various types of Advertising copy

• Human interest copy

• Institutional Copy
• Reason why copy
• Educational Copy
• Suggestive- Copy
• Expository copy
Advertising Layout
What is Advertising Layout

Advertising Layout
the placement of ad elements; headline,
visuals, body copy and signature; to fit the size of the
area the advertiser purchases Proportional guideline:
1. Illustration 65 %
2. Headline 10 %
3. Copy 20 %
4. Logo 5 %
100 %
-------------
Layout Essentials
• In the layout is presented a diagram indicating the exact size of the ad, the headline and other
important display lines.
• the position and size of the illustrations.
• the location of the text matter and, usually, the name of the advertiser
• the background type n size in which the advertisement is to be set
• the character of the border with which it is to be enclosed
• and the arrangement of the white space.
• The text matter is not written on the layout but on a separate sheet of paper known as the
"copy" sheet. Where the several paragraphs are to be placed in the advertisement is indicated
by letters or figures which correspond to similar letters or figures marked on the layout.
• The Size. In preparing the layout the first thing to do is to decide upon the size of the
advertisement.
 Illustration and headline

background
Arrangement
of white space
Position and size of
illustration

Text
matter
Principles of Good Layout
1. Principle of balance
2. Principle of rhythm
3. Principle of emphasis
4. Principle of proportion superb
5. Principle of unity
6. Principle of simplicity
DESIGNING OF LAYOUT

Steps for making a perfect Layout

39
Layout Stages and Formats
1. Thumbnail Layouts
2. Rough Layouts
3. Finished (Tight) Layouts
4. Comprehensive Layouts
Advertising Spiral

Campaign Planning
Advertising Spiral
Colours in Advertising

Your colour consumers judgement

Red
• Red is the color of fire and blood, so it is associated with energy, war, danger, strength, power,
determination as well as passion, desire, and love.
• Red is a very emotionally intense color. It enhances human metabolism, increases respiration
rate, and raises blood pressure. It has very high visibility, which is why stop signs, stoplights, and
fire equipment are usually painted red. In heraldry, red is used to indicate courage. It is a color
found in many national flags.
• Red brings text and images to the foreground.
• Use it as an accent color to stimulate people to make quick decisions; it is a perfect color for 'Buy
Now' or 'Click Here' buttons on Internet banners and websites. In advertising, red is often used to
evoke erotic feelings (red lips, red nails, red-light districts, 'Lady in Red', etc). Red is widely used
to indicate danger (high voltage signs, traffic lights). This color is also commonly associated with
energy, so you can use it when promoting energy drinks, games, cars, items related to sports and
high physical activity.
• Light red represents joy, sexuality, passion, sensitivity, and love.
Pink signifies romance, love, and friendship. It denotes feminine qualities and passiveness.
Dark red is associated with vigor, willpower, rage, anger, leadership, courage, longing, malice, and
wrath.
Brown suggests stability and denotes masculine qualities.
Reddish-brown is associated with harvest and fall.
Orange
• Orange combines the energy of red and the happiness of
yellow. It is associated with joy, sunshine, and the tropics. Orange represents
enthusiasm, fascination, happiness, creativity, determination, attraction, success,
encouragement, and stimulation.
• To the human eye, orange is a very hot color, so it gives the sensation of heat.
Nevertheless, orange is not as aggressive as red. Orange increases oxygen supply
to the brain, produces an invigorating effect, and stimulates mental activity. It is
highly accepted among young people. As a citrus color, orange is associated with
healthy food and stimulates appetite. Orange is the color of fall and harvest. In
heraldry, orange is symbolic of strength and endurance.
• Orange has very high visibility, so you can use it to catch attention and highlight
the most important elements of your design. Orange is very effective for
promoting food products and toys.
• Dark orange can mean deceit and distrust.
Red-orange corresponds to desire, sexual passion, pleasure, domination,
aggression, and thirst for action.
Gold evokes the feeling of prestige. The meaning of gold is illumination, wisdom,
and wealth. Gold often symbolizes high quality.
Yellow
• Yellow is the color of sunshine. It's associated with joy, happiness, intellect, and energy.
• Yellow produces a warming effect, arouses cheerfulness, stimulates mental activity, and generates muscle
energy. Yellow is often associated with food. Bright, pure yellow is an attention getter, which is the reason
taxicabs are painted this color. When overused, yellow may have a disturbing effect; it is known that
babies cry more in yellow rooms. Yellow is seen before other colors when placed against black; this
combination is often used to issue a warning. In heraldry, yellow indicates honor and loyalty. Later the
meaning of yellow was connected with cowardice.
• Use yellow to evoke pleasant, cheerful feelings. You can choose yellow to promote children's products
and items related to leisure. Yellow is very effective for attracting attention, so use it to highlight the most
important elements of your design. Men usually perceive yellow as a very lighthearted, 'childish' color, so
it is not recommended to use yellow when selling prestigious, expensive products to men – nobody will
buy a yellow business suit or a yellow Mercedes. Yellow is an unstable and spontaneous color, so avoid
using yellow if you want to suggest stability and safety. Light yellow tends to disappear into white, so it
usually needs a dark color to highlight it. Shades of yellow are visually unappealing because they loose
cheerfulness and become dingy.
• Dull (dingy) yellow represents caution, decay, sickness, and jealousy.
Light yellow is associated with intellect, freshness, and joy.

Jab we met
Green
• Green is the color of nature. It symbolizes growth, harmony, freshness, and fertility. Green
has strong emotional correspondence with safety. Dark green is also commonly associated
with money.
• Green has great healing power. It is the most restful color for the human eye; it can improve
vision. Green suggests stability and endurance. Sometimes green denotes lack of experience;
for example, a 'greenhorn' is a novice. In heraldry, green indicates growth and hope. Green,
as opposed to red, means safety; it is the color of free passage in road traffic.
• Use green to indicate safety when advertising drugs and medical products. Green is directly
related to nature, so you can use it to promote 'green' products. Dull, darker green is
commonly associated with money, the financial world, banking, and Wall Street.
• Dark green is associated with ambition, greed, and jealousy.
Yellow-green can indicate sickness, cowardice, discord, and jealousy.
Aqua is associated with emotional healing and protection.
Olive green is the traditional color of peace.
Blue
• Blue is the color of the sky and sea. It is often associated with depth and
stability.
• It symbolizes trust, loyalty, wisdom, confidence, intelligence, faith, truth, and heaven.
• Blue is considered beneficial to the mind and body. It slows human metabolism and produces a calming
effect. Blue is strongly associated with tranquility and calmness. In heraldry, blue is used to symbolize
piety and sincerity.
• You can use blue to promote products and services related to cleanliness (water purification filters,
cleaning liquids, vodka), air and sky (airlines, airports, air conditioners), water and sea (sea voyages,
mineral water). As opposed to emotionally warm colors like red, orange, and yellow; blue is linked to
consciousness and intellect. Use blue to suggest precision when promoting high-tech products.
• Blue is a masculine color; according to studies, it is highly accepted among males. Dark blue is
associated with depth, expertise, and stability; it is a preferred color for corporate America.
• Avoid using blue when promoting food and cooking, because blue suppresses appetite. When used
together with warm colors like yellow or red, blue can create high-impact, vibrant designs; for example,
blue-yellow-red is a perfect color scheme for a superhero.
• Light blue is associated with health, healing, tranquility, understanding, and softness.
Dark blue represents knowledge, power, integrity, and seriousness.
Purple
• Purple combines the stability of blue and the energy of red.
Purple is associated with royalty. It symbolizes power, nobility,
luxury, and ambition. It conveys wealth and extravagance.
Purple is associated with wisdom, dignity, independence,
creativity, mystery, and magic.
• According to surveys, almost 75 percent of pre-adolescent
children prefer purple to all other colors. Purple is a very rare
color in nature; some people consider it to be artificial.
• Light purple is a good choice for a feminine design. You can use
bright purple when promoting children's products.
• Light purple evokes romantic and nostalgic feelings. Mr Grey:
Fifty shades of Grey
Dark purple evokes gloom and sad feelings. It can cause
frustration.
White
• White is associated with light, goodness, innocence, purity, and
virginity. It is considered to be the color of perfection.
• White means safety, purity, and cleanliness. As opposed to black,
white usually has a positive connotation. White can represent a
successful beginning. In heraldry, white depicts faith and purity.
• In advertising, white is associated with coolness and cleanliness
because it's the color of snow. You can use white to suggest
simplicity in high-tech products (white goods). White is an
appropriate color for charitable organizations; angels are usually
imagined wearing white clothes. White is associated with
hospitals, doctors, and sterility, so you can use white to suggest
safety when promoting medical products. White is often
associated with low weight, low-fat food, and dairy products.
Black
• Black is associated with power, elegance, formality, death, evil, and
mystery.
• Black is a mysterious color associated with fear and the unknown (black
holes). It usually has a negative connotation (blacklist, black humor,
'black death'). Black denotes strength and authority; it is
considered to be a very formal, elegant, and prestigious color
(black tie, black Mercedes). In heraldry, black is the symbol of
grief.
• Black gives the feeling of perspective and depth, but a black background diminishes readability. A
black suit or dress can make you look thinner. When designing for a gallery of art or photography, you
can use a black or gray background to make the other colors stand out. Black contrasts well with bright
colors. Combined with red or orange – other very powerful colors – black gives a very aggressive color
scheme.
The colour palette
 Print and broadcast ads
Packaging inserts
Motion pictures
Advertising Brochures and booklets

Types Posters
Billboards
POP displays
Logos
Videotapes
 Contests, games

Premiums

Sampling

Trade shows, exhibits

Sales Coupons

Sweepstakes
Promotions Rebates

Loyalty marketing program

Entertainment
 Internet marketing

Direct mail

DIRECT Telemarketing

Direct response advertising

Marketing
Loyalty marketing program

TV Home shopping
 Media Relations

Community Relations

Corporate Social Responsibility

Public Public Affairs

Relation Crisis Management

Social issues

Employee Relations
Types of Advertising Media
Advertising Media
Types of Advertising Media
 IMC
Budget and Media Planning
Guide for the session:- Prof. (Dr) Sumanjit Dass
Topics to be covered

• Budgeting objective
• Budgeting Methods
• Media Planning Objective
• Media Planning Process
• Media Selection
Budgeting objective
Advertising Budget and its Objective defined

An advertising budget is the amount of money allocated towards an

advertising of a brand or product
Adv. Budget
effects
Adv. Objective

An advertising objective are strategic (long term) and tactical decisions

(short term) made and achieved using various forms of communication mix for
a brand or product.
Adv. Objective
can be 2 types

Sales Communication

Objective Objective
Objective: Increase in
Objective: Increase sales Awareness, develop
of a product interest or change attitude
towards oa product
Things one must consider while developing Advertising budget

• Market size and potential

• Product life cycle
• Market share
• Intensity of competition
• Advertising frequency
• Product differentiation strategies
Budgeting Approaches and
Methods
Budgeting methods : 2 types

Judgment oriented Data Driven

methods methods

• Marginal Analysis
• Competitive parity
• Inertia
method
• Arbitrary method
• Objective-to-task
• Affordable budgeting
method and
method and
• Pay-out planning
• Percentage-to-sales
method
method
Top Down Build up
Approach approach
Inertia

Keeping advertising budget constant year-on-year, while ignoring market

environment opportunities, the competition and consumer preferences.

Arbitrary method

Whatever the general manager or managing director decides will be

implemented.
This very subjective way of deciding how to spend promotional funds does, of
course, lack critical analysis and overall strategy.

Judgment oriented methods

Affordable budgeting method

In this method ‘leftover’ resources, after all input costs (i.e. human
resources, operational and financial costs), are invested in communications. This
method is often used in small and medium enterprises.

Percentage-to-sales method

In this technique, budgets are defined as a percentage of the projected sales of the
next year. An alternative to this technique is to take the communications outlays of
the past year as a basis and then add a certain percentage, based on the projected
sales growth of the following year.

Judgment oriented methods

Competitive parity method
Can someone
explain why niche
Competitive parity means and leader is
that companies look at the above the 45° line
amount of money
competitors spend on
communications and then
Data Driven methods

copy their budgets.

The advantage of this
method is that the market
will not be destabilised by
over-investments or
extremely low promotional
budgets.
This method is often used in
fast-moving consumer goods
where sales are believed to SOV =
be highly influenced by Own communication investment
advertising and
communications spending.
-------------------
communication investment of all market players
Objective-to-task method

Steps
1. Define communication objectives
2. Define the resources (investment) needed to reach that goal
Data Driven methods

3. All investment then are added to get a cumulative investment.

4. Cumulative investment equals overall communication budget
Pay-out planning method

Payout planning involves fixing of the communications budget on the basis of

the expected revenues that it will obtain in future.
Under this method a company allocates a higher budget during the introductory
Data Driven methods

stage of the product and reduces the spending as the product moves into its
maturity and decline stages.
Media Planning Objective
Media Planning objective

The objective of media planning is to:

• Selecting the right media vis-à-vis target audience
• Selecting the right media vis-à-vis the media characteristics.
• Calculating and Comparing the technical components of media objectives
(such as frequency, reach, weight, continuity and cost) vis-à-vis earlier
historic components and competitors components.
Media Planning Process
What is a Media Plan

Media plan can be defined as a

DOCUMENT
specifying
❑which media and vehicles will
be purchased
❑When will it be purchased
❑At what price will it be
purchased and
❑With what expected
results.
Product Hierarchy

Item
Product type
(several possible
forms of the
product)
Product Line
(products within a product
class that are closely related )

Product Class
(satisfy the core with functional
coherence)

Product Family
(satisfy the core)

Need Family (core need)

Media Objectives

Media objectives are derived

from the

communications
objectives,
and ought to be concrete,
measurable and realistic.

Media has following

Marketing objectives
characteristics
( Increase in market share)

communications objectives
Media objectives ( Increase in reach of audience)
( Increase in market share by using television ads )
Wait before we go ant further lets understand the difference between

MEDIUM and MEDIA VEHICLE

Advertising message sent through
TV, Radio and Outdoor hoardings

Media Vehicle
(a SPECIFIC television
MEDIUM program, radio station or
(of transmission) outdoor advertising location)
Media Characteristics: Frequency

In conclusion, several reasons have been reported in the literature as to why a

high (but not excessive) repetition level of advertising might be beneficial:
■ It makes the message more memorable and raises brand recall.
■ It makes attitudes more accessible and raises consumers’ confidence in their
attitudes, making them more resistant to attitude change and brand switching.
■ It increases the believability of the ad claims.
■ It leads to a greater top-of-mind brand awareness.
■ It functions as a signal or cue for brand quality.
Media Characteristics: Weight (GRPs)

Media weight is a term used in advertising to refer to the size of the audience
(Reach or net reach but not gross reach) reached by an advertising campaign.
Media weight is usually expressed in the form of
• GRP's (Gross rating Points) = Reach X Frequency
Reach is the number of individuals or homes who saw an ad at least once in
your campaign schedule;
frequency is the average number of times they saw it.

Calculate Total GRPs for commercials on two

different media vehicles.
Ad A airs 3 times and gets 15 percent of
viewers tune in. Ad B airs five times and gets
10 percent of viewers tune in.
Media Characteristics: TRP

If 40% of the TV audience

watch a particular show
and you air three ads while
it's broadcasting,
your gross rating points
are 120.
If one quarter of the GRP
audience belongs to your
target demographic, then
your target rating points
would be 30.
Media Characteristics: Continuity

Continuity (straight-through-advertising) means message

deliveries over a period of time or a season OR how an advertisers
schedules his ad over a period-of-time
In other words, it’s the timing and the way of media insertions (ad
insertions).
Three ways to do it:
• a continuous- regular intervals of the year
• a pulsing- a certain level of advertising takes place during the whole
campaign period, but during particular periods higher advertising
levels are used
• a flighting (bursting) schedule: when advertising is concentrated in
only a few periods and not during the whole campaign period
The right media selection
Media Media
Context Mix
Media Mix

A media mix is the combination of

communication channels (medium) your
business can use to meet its marketing
objectives. Typically, these include
newspapers, radio, television, billboards,
websites, email, direct mail, the Internet and
social media, such as Facebook or Twitter.
Media Mix Criteria

Before deciding which media will and will

not be included in the media mix, the
different media should be evaluated on
several criteria.

These criteria can be categorized in

quantitative, qualitative and
technical criteria.
Qualitative versus Quantitative Mix Media Criteria
Qualitative criteria to evaluate Quantitative criteria deal with factors
different media are the extent to which such as how many people can be reached,
the medium is capable of building a how often and how quickly the target group
brand image and a brand personality, can be reached, whether the advertising
the impact the medium has on the message can be adapted for different
audience, how involved the audience is geographic regions, whether the medium is
with the medium and, as a more effective during certain periods of the
consequence, whether the audience is year than during others, and how
active or passive and whether the
selective the advertising medium is.
audience pays a lot of or only minor
attention to the messages conveyed by
the medium. Medium Selectivity
Index
Medium Selectivity

Medium Selectivity shows how well

the chosen advertising medium is
tuned towards a target audience.
Like Instagram is tuned towards
Youngsters while LinkedIn towards
working professionals
Media Context

Advertising always forms part of a surrounding context.

Advertising context = Receiver context + Medium context
The medium context refers to
characteristics of the content of
the medium in which an ad is
inserted.
Several studies indicate that the media context
has an influence on how people perceive, interpret
and process an advertising message.
 Advantages
and Disadvantages
of each medium
Outdoor

Outdoor advertising consists of media

such as
• Billboards
• but also transit media in the form of
messages on buses, trams, in stations,
etc.

Both frequency and reach is higher.

People do not feel highly involved in
billboards or transit advertising and
usually do not pay a lot of attention
to it.
Targeting is difficult
Magazines

• Large audience
• Specific target group, such as females
or youngsters
• Good medium for image building (e.g.
Vogue).
• message life is relatively long
• slow medium
Newspapers

• Maximum number of people can be reached in

the shortest period of time
• flexible medium
• Disadvantages of newspapers are the limited
selectivity of the medium and the low quality of
reproduction
• A transient medium in the sense that the
message has a very short life since a newspaper
lasts only one day.
Door-to-door

• Door-to-door advertising periodic publications (once a week, once a month,

etc.) are distributed locally and free of charge.
• Advertisers in this medium are usually local merchandisers or local service
organisations.
• Geographical flexible and relevant context in a particular location is its main
advantage.
• Lot of information can be provided at a fairly low cost.
• Limitations are that the medium is not at all selective and people may only be
marginally involved in door-to-door publications and may not pay much
attention unless they are interested in certain promotions.
• Because of the overload of such publications, people often react negatively to
this form of irresponsible use of paper and ‘environmental pollution’, and more
and more people are putting a note on their mailbox stating ‘no advertising
please’.
Television

• A clear advantage of television is the communication power of an audiovisual

message which, in general, leads to a fairly high (especially emotional) impact.
• Passive medium, making it a good choice for transferring a brand image or
brand personality.
• A lot of people can be reached in a fairly short period of time.
• Research on viewing habits reveals that different personalities and people with
different lifestyles watch different programmes, creating the possibility of using TV
as a selective medium.
• A major drawbacks are the high production costs that are involved and the fact
that it is not always possible to direct a message at a selective target group.
• A lot of occasional viewers are reached, which results in a low effective reach.
• The lifetime of a message is extremely short: 15 or 30 seconds pass very quickly
and often nothing is left of the message afterwards.
• High advertising clutter in a small span of time when advertisements are aired.
Cinema

• Like Television, cinema benefits from the audio

visuality of the message, leaving a greater impact on
the audience.
• The impact of cinema advertising is even increased
by the fact that the audience pays much more
attention to the message than in any other
circumstances, while distraction is less likely to occur.
• The surroundings and context further add to the
value of the message, because of the mood and
expectations of the audience.
• The disadvantages are that the potential reach is
limited, and that the speed and the frequency of
reaching the audience is very slow.
Radio

• The major benefit of radio advertising is that potentially a lot of people can be
reached.
• The production costs are low
• The radio is a very dynamic medium. Different people (not only in terms of
demographic characteristics, but also in terms of lifestyle, etc.) seem to listen
to different radio stations, making it a selective medium to target a specific
consumer group.
• Limitations are that the lifetime of a message is very short and that people
use the radio as background noise. The latter means that the potential
attention that will be paid to a message is fairly low.
Sales Promotion

Guide for the session:- Prof. (Dr) Sumanjit Dass

Topics to be covered

• Importance of Sales Promotion

• Objectives of Sales Promotion
• Types of Sales Promotion
• Measuring effectiveness of Sales Promotion
What is Sales promotion

According to Philip Kotler – “Sales promotion So according to

consists of a diverse collection of incentive tools, you where in
mostly SHORT-TERM, designed to stimulate Ansoff grid can
quicker and/or greater purchase of particular Sales promotion
product/services by consumers or the trade.” work and HOW?

According to Institute of Sales Promotion, UK–

“Sales promotion comprises that range of
techniques used to attain sales/ marketing
Marketing too objectives in a cost effective manner by adding
but HOW? value to a product or service either to
intermediaries or end users normally but not
exclusively within a defined time period.”
Importance of Sales Promotion
What are Sales Promotions

Sales promotions are techniques/ action

communication aimed at increasing sales
in the short run.
Used to attract new customers, on the basis
of a temporary incentive or deal.
• The main characteristics of promotions are
that they are limited in time and space,
they offer better value for money.
Although the main purpose of
• It proves an immediate promotions is to trigger immediate
behavioral response. sales, they can also be used more
strategically, i.e. to generate,
• operant conditioning through trial purchases and
mechanism subsequent learning effects, a
change in the attitude towards the
• Seduction tool brand and, as a result, brand loyalty.
Objectives of sales promotion to consumers

• Inducing trial by new customers

is one of the most important
objectives of a promotion Horizontal effect
campaign
• Normal promotions versus Trial
Promotions
• Existing customers can be made
loyal, and loyal customers can be
rewarded for their loyalty.
• Consumer ‘basket-filling’ Vertical effect
• Promotions can serve as
reinforcers of other
communications tools. An
advertising campaign can have a
greater impact if a promotion is
included.
Objectives for sales promotions to the trade

The major objective of trade promotions are used

to keep the distribution channel loyal to a product
(category)/ brand/ manufacturer.
Factors that affect traders to give shelf space to
a manufacturer
• Traders are believed to maximize their profits
through higher margins or higher turn-over.
• Traders are also affected by their buyer
(customers) behavior.
✓ Profile of their own customers
✓ Size and location of the store
✓ Established versus newer outlets
Objectives for sales promotions to the field force

• Sales force today are being incentivized for their

short term performance of achieving monthly and
weekly goals over yearly goals
• HR Policies in place for them where fixed salaries
are reduced but rewards are given on sales
performance
• While short-term incentives work good with
FMCG, conferences, some short-term course or
holiday works best with consumer, industrial and
pharmaceuticals' goods, where product knowledge
of both the sales person and retailer is important.
Types of Sales Promotion
 Consumer Promotions Trade Promotions Salesforce Promotions
Types of Sales Promotions

Sampling On-consignment sales Incentive schemes

Price-off Dealer- contest Star Awards

Quantity deals Dealer-gifts Sales meet

Branded offers Display-contests Local ad budgets

In-product gift Point-of-sale material Promotional aids

Out-product gift Shop board painting

Coupons Dealer Discounts

Trading stamps Trade fair participation

Consumer contests Dealer meets

Premium/ freemium/ Saving Cards Cooperative Advertising

Consumer Promotions
Sampling

Consumer Promotions
• Works best when the product introduced
is new
• Used majorly in FMCG
• Samples can be distributed in retail
outlet or can be inserted or pasted in
magazines or any other food product
• One can attach questionnaire to be filled
after the sample is used.
• Most expensive method of
consumer promotion, without any
guarantee that consumer will buy the
main sale pack after using the sample
Price-off

• Offers consumer
the products lower
than the marked
maximum retail
price.
• It induces
immediate trial
amongst customers

Consumer Promotions
Quantity deals

Consumer Promotions
• Here the company offers more quantity
of the same product for the same price
or a marginally increased price.
• This is done in product categories such
as ice-creams, talcum powders etc.
Branded offers

Consumer Promotions
• The company chooses to sell two or
more packs together of the same product
or different products at a discounted
price.
• This clear shelves out of a slow moving
product
In-Product gift versus out-product gift

• The gift inside the Consumer Promotions

product. A locket inside
soap or a spoon inside the
detergent packet are
examples of in-product
gift
• When a gift item is
attached to the product
from the outside. A bowl
offered with cerelac is an
example of out-product
gift
• Companies generally
don’t use out-product gift
because it chances of
breakage, gets lost in the
transit or doesn’t reach
the intended audience
Coupons

Consumer Promotions
• They are normally in the form of a
certificate that is introduced in the pack.
It can be redeemed for a price-off, a gift
or a discount on the subsequent
purchase.
• There are 2 types of coupons

In/On-Pack In-Store

Bounce-back Tear-off pads

Cross-ruff Hands-out

Instant Dispenser

Register printout
Bounce Back coupons

Bounce back coupons are coupons that Consumer Promotions- Bounce back
accompany a delivered product within the
product box or with the product statement In/On-Pack
or invoice.
The coupons can be auto-generated right
onto the invoice or statement, or can be an
additional coupon or flier accompanying
the product or statement.
The goal of a bounce back coupon is to
entice the client to "bounce back" or return
to place an additional order.
Cross-ruff
• Cross-ruff coupons are obtained at the time
of purchase of a carrier brand and may be
redeemed at a later date on a target Consumer Promotions-Cross-ruff
brand.
• These coupons therefore have the ability In/On-Pack
to link consumer purchases across different
brands as well as shopping trips.
• The effects of cross-ruff coupons on
consumer choice behavior is high as it
derives the conditions under which cross-
ruff coupons can lead to higher sales and
profits than other types of package
coupons.
• Unlike direct mail and newspaper coupons,
cross-ruff coupons can be redeemed on a
purchase occasion different from the one
on which they are obtained, thereby
linking consumer purchases across
shopping trips.
Instant Redeemable Coupons (IRC's)

• Instant redeemable coupons are

promotions attached directly to your Consumer Promotions-Instant
product packaging, typically by way of an
adhesive backing – although other
methods are not uncommon. In/On-Pack
• IRCs put your product promotions
directly in the hands of your customers Uses of IRCs
at the point of sale, reducing friction in IRCs present a number of sales
the purchasing process and inspiring opportunities for your brand,
increased sales. including:

• Driving impulse purchases at the

point of sale
• Encouraging increased purchases
such as buy-one-get-one-free
• Promoting new products
• Offering rebates
• Displaying recipes
• And more
Tear-off pads
• Tear-off pad coupons are a type of
manufacturer coupon (such as Consumer Promotions-Tear-off pads
coupons for food and personal care
brands).
• They can be used in any of the retailers In-Store
keeping the manufacture’s brand.
• The best part of tear-off pad coupons
are that they have elaborate explanation
and they have long time expiration
dates.
• The coupon can be used when there is
best deal (price at the lowest level)
available.
Hands-Out

Consumer Promotions- Hands-out

In-Store
Dispensers

Consumer Promotions- Dispensers

In-Store
Register Printout
• Register Printout coupons are the
coupons that print out from the printers Consumer Promotions- Register Printout
near the registers after you make a
purchase.
• They are almost always manufacturer In-Store
coupons but they also have a store logo
on them. Because of the store logo, most
stores will not take coupons from other
stores, even though they are
manufacturer coupons and scan just fine
at the register.
Trading stamps/ Loyalty Programmes

Consumer Promotions
• These are schemes run by large
retailers. They are in the form of stamps
given depending upon the quantum of
purchase. E.g. one stamp for purchase of
Rs100, two stamps for a purchase of Rs
200 etc.
• The customers collects them and later
redeems them from the store for a gift or
a discount in subsequent purchases
• Today these are called loyalty points and
the programme is the Loyalty
programme.
• The bigger retailers like Big Bazaar,
Pantaloons, Crossword all run such
promotion programmes.
Consumer contests and Sweepstakes

Consumer Promotions
• A sweepstake is a type of contest where
a prize or prizes may be awarded to a
winner or winners.
• Sweepstakes began as a form of lottery
that were tied to products sold.
• Under these laws of sweepstakes it was
"No purchase necessary to enter or win"
and "A purchase will not increase your
chances of winning“.
• Its more a matter of luck rather than
purchase
Premium/ Freemium/ Saving Cards

• Premium apps (or Paid apps) have an

upfront price before they can even be Consumer Promotions
downloaded. Similar to licensed software,
except that the App Store makes all
future upgrades to the premium app free
once purchased.
• Contrast this with freemium (a
portmanteau of “free” and “premium”),
where the app is free to download and
use. However, some features inside the
app are unavailable until you pay for
them.
• Saving card are digital coupons—offers
from specialty retailers that you can
easily load straight to your debit or credit
card. ... The savings will show up as a
cash-back bonus on your card account
statement later.
Trade Promotions
 Trade Promotions
• On-consignment sales: For new companies who let the
trade to stock their goods and pay them once the stock moves
out of the shelves
• Dealer Contests: Dealers purchases the stocks and sells
them. The amount of stocks bought vis-à-vis sold, lets them
win awards, recognition and prizes
• Dealer gifts: Giving dealers regularly some gifts to maintain
good rapport.
• Display contests: Tried by newer brands. Here the dealers
are expected to buy minimum quantity of stocks during the
display period (season) and display them prominently in the
show windows of the shop and in other prominent places.
Company representatives visit and judge them and award
them prizes.
• Point-of-sale material: Traders are given attractive point-
of-sale material for displaying company sales products. Maggi’s
yellow net, Coca Cola Fridge, Bunting stands and stickers.
 Trade Promotions
• Shop board painting: Companies provide attractive
signage for shops which is either painted or lightened up.
• Dealer discounts: trade schemes that give discounts to
dealers on bulk buying OR free goods such as “Buy 10 get
one free”.
• Trade fair participation: When companies fund partly
or fully the participation of their exclusive dealers in
promotional fairs such as Inside-Outside fair, India
international trade fair, Car expo etc.
• Dealer meets : In international locations and
recognizing them through awards and this platform is also
used to set targets for the next year.
• Cooperative advertising: This involves sharing of cost
of local advertising by the dealer and the company. The
dealer then has the name of the outlet printed below the
advertisement and gets mileage in terms of consumer
enquiries.
Sales force Promotions
Sales force promotions

• Incentive schemes
• Star Awards
• Sales meets
• Local ad budget
• Promotional aids
Direct, Database, Relationship
Marketing & Public Relations
Guide for the session:- Prof. (Dr) Sumanjit Dass
Topics to be covered

• Introduction to Direct Marketing and its characteristics

• The quintessential elements of Direct Marketing
• Direct Marketing media and tools
(Direct mail, catalog, telemarketing)
• Database Marketing
• Relationship Marketing
• Public Relations
 DiRECT
Marketing
Introduction to Direct Marketing
Direct marketing is the process involved in selling goods and services
without the aid of wholesaler or retailer using direct response
advertising.
The definition of direct marketing has gone through various changes.
• In the beginning (the 1960s), it was considered as a type of
distribution (direct selling through a different channel), as used by mail
order companies.
• In the 1970s, direct marketing became a marketing communications
tool with emphasis on feedback (through feedback postcards) and
optimizing response rates on mailings and other direct marketing tools.
• From the 1990s onwards, long-term relationship building and
increasing customer loyalty (‘retention marketing’) became the main
issues in direct marketing.
HOW
Common channels of direct marketing

• Face-to-Face selling
• Direct-mail marketing
• Catalogue
• Tele marketing
• Television marketing
• Direct response media
• Kiosk
• Online Marketing
• Automatic vending machine
Characteristics of Direct Marketing

• Interactive
• Response Mechanism
• Transaction Medium
• Database
• Measurable Response
Advantages of Direct Marketing

• Quicker sales
• Better Targeting
• Tailored Message
• Relationship Building
• Predictable Investment and
Returns
• Enhanced Profits
• Less Competition
• Aide to market research
• Database formation
Disadvantages of Direct Marketing

• Image factors
• Content Support
• Brand Familiarity
• Accuracy of lists

Discuss the type of products

where Direct Marketing works
the best
 The quintessential elements of Direct Marketing

3 Elements which are at

the heart of direct
marketing
The List
The Message
The Offer

We will learn about it in copywriting

Roll of customers who
would be targeted in the
Grabs attention of the prospect
campaign. Product/
service with
Tips for Direct Marketer
House List. Augmented and
1. Comprehension of message should be easy
potential layer
2. Payment options should be many
Response List. highlighted
3. Time bound offers
4. Free gifts
Compiled List. 5. Longer the customer takes to read your email, more
likely he will respond
The elements of good
body copy in a mail

• Problem
• Promise of Solution (BIG PROMISE)
• Reassurance
• Call-to-action

Disadvantages of Direct Mail

• High cost
• Low response rate
• Junk mail
How and why is writing copy for direct marketing
different from writing copy for advertising

Which is one is
copywriting and content
writing
Direct Marketing media and tools
Catalogs
Catalog marketing is a form of direct
marketing in which consumers or
business customers select and order
products from a printed or online
catalog, rather than visiting a retail
outlet.
tools
Direct 2
customers
Direct Response Marketing
The direct marketer runs an
advertisement in a newspaper,
magazine or on a radio and television
describing the product.
The direct marketer chooses the
media that maximize the number of
orders for the amount paid for the
advertisement.
This strategy is particularly useful to
specialty retailers dealing in specific
products.
Tele Marketing
• Most convincing
• Answers most specific question
• Relationship building
tools
Direct Marketing media and tools
Television
Television is used in 3-ways to
market products directly to the
customers
• Direct-response advertising
• At-home shopping channels
• Videotext
Print/ Radio
The buyer reads about an order and
directly buys it
Automatic Vending Machine/
ROBOT Retailing
As against currency dropped in the
machine, consumer gets the actual
product
tools
Direct 2
customers
Kiosk
Companies place customer-order
placing machines called KIOSKS.
Example: Florsheim Shoe
By allowing on-the-go kiosks to act as
virtual salesmen, merchants are seeing
an increase in sales as well as an
increase in brandy loyalty.
In a 2009 survey offered by the Self-
Service Kiosk Association, consumers
said the top three reasons for choosing
to use a kiosk over a cash register was
convenience, speed, and working
directly with technology.
tools
DataBASE
Marketing
Database Marketing

A database is a collection of interrelated data of customers (prospects) which

can be used for different applications such as analysis, individual selection,
segmentation and customer retention, loyalty and service supports.

A good database should capture the following information

• Personal consumer information
• Transaction (purchase history)
• Communication (received mailings, incentives, marketing actions and
marketing reactions)
• Product bought, sales person involved, what form of advertising worked
Database should capture the following information

Market Data Relationship Data Company Data

Consumers Action Data • Departments

• Geographical Data • Promotions • Products
• Socio-demographic data • Direct mail actions • Sales team
• Lifestyle data • Sales technique

Business-to-Business Reaction Data

Sector Response to direct mail
Company Amplitude Complaints
Decision-markers, Influencers Purchases

DATABASE
Five stages in the use of database marketing

Untargeted
Marketing
Product driven
Marketing
Client driven
mailings
Multi-channel
database marketing

Event-driven
database marketing
Relationship
Marketing
What is Relationship Marketing

Relationship marketing is a strategy (Tactics) designed to foster customer

loyalty, interaction and long-term engagement. It is designed to develop strong
connections with customers by providing them with information directly suited
to their needs and interests and by promoting open communication.
 pUblic
Marketing
Public Relation

The Institute of Public Relations (IPR) defines public relations as:

Public Relation is the practice of deliberately managing the spread of
information between an individual or an organization and the public.

Public relations is the dimension of communications which is specifically

concerned with establishing and enhancing goodwill between an organization
and the various publics with which it seeks to communicate.

PR targets important stakeholders and difficult-to-reach audiences

Strengths of PR
Weakness of PR
Identify which are PR activities and which isn’t

1. Anticipating, analysing and interpreting public

opinion, attitudes and issues which might impact,
for good or ill, on the operations and plans of the
organization.
2. Counselling management at all levels with
regard to policy decisions, courses of action and
communication.
3. Researching, conducting and evaluating, on a
continuing basis, programmes of action and
communication to achieve informed public
understanding necessary for the success of the
organization’s aims.
4. Planning and implementing the organization’s
efforts to influence or change public policy.
The Publics of Public
Relation
The 6 touch-points of good Public Relation in Business

PRESS Supplier Financial Community

Customer Stock/Share Holders

Employee
The 6 touch-points of good Public Relation in Business
The 2 touch-points of good Public Relation in Government
Sub-point from last slide: Planning of PR Activities

Possible areas for measurement

are as follows:
• Shifts in awareness;
• Shifts in attitudes towards the
company or organization;
• Growth in enquiries;
• Reduction in level of complaints;
• Improvement in share price;
• Volume of coverage in target
media.
 Suggest PR activities for a business school vis-à-
vis PR Objectives
• Building product awareness
• creating interest
• providing information about
products and services
• stimulating demand
• reinforcing the brand
PR Objectives
• The press release;
• The exclusive story;
• Interviews;
• Press conferences;
• By-lined article;
• Speeches;
• Writing new releases, reports, booklets,
Promotional Tools for
speeches, trade and general magazine articles,
film sequences, radio and television copy,
production information and technical material;
PR Activities
• Editing employee publications, newsletters,
annual reports and other management
communications for internal and external
audiences;
• Placing client or employer news and features
with media editors and others responsible for
selecting copy and preparing programmes;
• Promoting through special events, such as
press parties, open houses, anniversaries,
award programmes and institutional films;
• Speaking and preparing speeches for others;
• Producing brochures, booklets, special
reports and house periodicals;
• Developing overall PR programmes;
• Publicizing a company’s name and reputation.
E- communication
From the evolution to the revolution
PART 1
How it all started
A century in between
1970s 1990s
One-2-one
Turbulent
1950s Targeting Emotional
Postwar Positioning Experiential
Marketing mix Strategic Internet
marketing Digital
PLC Sponsorship
Marketing Service marketing
Disruption
concept marketing

1980s Early 2000s

1960s Uncertain ROI Driven
Soaring Global Brand equity
Marketing myopia Local
Direct Social responsibility
Life style marketing
marketing Consumer power
CRM
Tribalism
Evolution of Marketing
1.0

2.0
Production Product Selling Marketing
concept Concept Concept Concept
3.0

4.0
Revolution with digital disruption

product, service and value.

did the consumer engage with our content and share it
Marketing 4.0 is about 3 major outlook shifts

Vertical to Horizontal

Exclusive to inclusive

Individual to Social
The paradoxes of marketing to connected
consumers
The paradoxes of marketing to connected customer
• Mature markets Vs emerging markets
( achievers to actualizers).
• Breaking the myths of connectivity
❑ Brick-and-mortar stores versus the newbies
❑ Its not about competition but collaboration
❑ Connectivity is not a mere technology but a strategic choice
❑ from connectivity to experiential (breadth of connectivity- through touch
points) to social connectivity (depth of connectivity through communities).
❑ Netizens today will be older tomorrow and connectivity shall become the
new normal
The paradoxes of marketing to connected customer
Paradox 1:
Online versus offline interaction
• Coexistence of online and
offline marketing for a holistic
customer experience ( Zappos:
school of wow with
Zapposspeak ;Bank of America’s
ATM with teller, Amazon’s Dash
button experience).
• Beacon transmitter and its
experience
• See in TV and connect through
twitter for review
The paradoxes of marketing to connected customer
Paradox 2: 2 challenges for the marketer of
tomorrow
Informed versus Distracted Customer
Though highly informed today’s customers
• Hold consumers attention
are not in control of what they want to buy. creating a WOW effect
They are regulated by 3 factors: (even for 30 seconds).
• Influenced by marketing communication • Be a part of community
discussion without much
mix control
• 4f’s (family, friends, fans and followers)
• One’s own potential knowledge, attitude
and past experience about certain brands
Future consumers will be connected yet
distracted.
The paradoxes of marketing to connected customer
Paradox 3:
Negative advocacy versus
positive advocacy
• How negative advocacy helps
• Spontaneous versus
prompted advocacy
• Polarization helps: as it
creates effective engaging
conversation
McDonalds: 33% lovers 29%
haters, nearly balanced
Starbucks: 30% lovers 23%
haters
The influential digital subcultures
• Youth for mindshare
• Women for market share
• Netizens for heart share
Marketing 4.0 in the digital economy
 Marketing 4.0 in the digital economy
WOW

Man meets
machine

WOW
From selling 4P’s to commercializing the 4C’s

Marketing Mix then: Marketing Mix Now:

Product
Price Co-Creation
Place Currency
Promotion Communal Activation
Conversation

From customer service processes to Collaborative customer care

The online marketing mix

E-product E-price

E-Mix

E-place E-promotion
PART 2
New frameworks for marketing in the digital economy
The new customer path in Marketing 4.0
Understanding how people buy: from 4 A’s to 5 A’s

Like/
Dislike

Community

Derek Rucker of the Kellogg School of management

Loyalty then= retention + repurchase Loyalty Now= retention + repurchase+ Advocacy

Driving awareness to advocacy: The O zone (O3)
Marketing Productivity Metrics
Introducing PAR and BAR

PAR BAR
 Lets do PAR and BAR calculation: Brand
X
9 ADVOCATED

BAR
= 9/90 = 0.1
of 90 people 18 bought

Brand
PAR
awareness Recalled Brand X = 90 people = 18/90 = 0.2
= 90/100 =
0.9
Is The
Brand X
population = 100 people in the market healthy ??
Four Major Industry Archetypes
A1: Awareness
A2: Appeal
A3: Ask
A4: Act
A5: Advocate
No Buying (ACT) but Affinity (ADVOCATE) is higher

Low price point

Point-of-Purchase Communications
Guide for the session:- Dr Sumanjit Dass
Contents to be covered

Point-of-Purchase
• Understand why point-of-purchase communication are important
• Learn about the tools and objectives of point-of-purchase communications
• The effectiveness of the various tools of point-of-purchase communications
Sponsorship
Really!!!
Really!!!
Understand why point-of-purchase
communication are important
 What is point-of-purchase
• Point of Purchase (POP) refers to any promotion that occurs within the store….
and it could refer to promotion that occurs via texting and mobile phone use
while consumers are in the store .
• POP displays usually take up floor space within the retailer, while POS displays
are smaller and take up space near or on the checkout counter.

Point-of-purchase or POP advertising can be defined as any promotional

material placed at the point of purchase, such as:
• interior displays,
• printed material at shop counters or
• window displays.
What all POP includes

However, it also includes:

• in-store broadcasts,
• video screen demonstrations,
• shopping-trolley advertising,
• shelf talkers,
• coupon dispensers,
• wastepaper baskets and
• interactive kiosks.
 In store purchases classification
• Specifically planned purchases: Consumer has bought the specific product and
brand one has intended to buy before entering the store

• Generally planned purchases: Consumer has assumed the purchase of the

product but not the brand was planned before entering the store.

• Substitute product or brand purchases: Consumer had assumed to buy a

particular product or brand before entering the store but ended up buying
another product or brand.

• Unplanned Purchases: are defined as those purchases that the consumers did
not plan in advance
Objectives of POP Communications

The store image,

store design, the
scent and the music
in the store, the
way the products
are placed on the
shelves and the
packaging of the POP communications involve all the
products form an aspects of the store and the store
integral part of POP environment that can
communications. signal something to customers
about the quality, price or product
assortment,
whether it is initiated by the retailer
or by the manufacturer.
The point-of-Purchase communication tools
Permanent Displays
• Intended for six months or more

Semipermanent Displays
• Intended for two to six months

Temporary Displays
• Intended for fewer than two months

In-Store Media
• Executed by a third party (in-store radio advertising, digital signage, shopping cart
ads, shelf ads, and floor graphics)
What Does POP Accomplish- Manufacturer

• Keeps the company’s name and brand name before the consumer
• Reinforces brand image
• Calls attention to sales promotions
• Stimulates impulse purchasing
What Does POP Accomplish- Retailers

• Attracts the consumer’s attention

• Extends the amount of time spent in the store
• Maximizes available space
• Better organizes the shelf and floor space (improves inventory control and turnover)
What Does POP Accomplish- Consumers

• Delivers useful information

• Simplifies shopping
• Sets brands apart
• Informs consumers of new products and brands
• HOWEVER: Consumers can be overwhelmed by excessive POP stimuli
On Premise Business Signage
On-premise signage

Considered the most cost-effective and efficient form of communication available

to retail businesses
Types of On-Premise Signs:
• Free-standing: monument signs, pole signs, A-frame (sandwich board) signs,
portable signs, inflatable signs
• Building-mounted: Projecting signs, wall signs, roof signs, banners, murals,
canopy signs, awning signs
Free-standing
Building-Mounted Sign
Illustration of a Specialty Board
Illustration of a Transit Advertisement
Sponsorship
 Sponsorship defined

Sponsorship can be defined as an investment in cash or kind in an activity, in return for

access to the exploitable commercial potential associated with this activity.
The company promotes its interests and brands by tying them to a specific and
meaningfully related event or cause
Types of Sponsorship

• Event sponsorship
• Title sponsorship
• Activity sponsorship
• Media sponsorship
• Educational sponsorship
Developing a sponsorship programme

• Analyze the current situation

• Define the sponsorship objectives
• Agree the strategy
• Develop the tactics
• Define the target audience
• Consider what resources are needed to make the sponsorship a success