Professional Documents
Culture Documents
ABM Notes
ABM Notes
ABM Notes
Unit 1
Advertising need & importance;
growth of modern advertising;
advertising & the marketing mix;
types & classification of advertisements;
. Interactive ads: Allow users to engage with the ad content, rather than just
passively viewing it. Interactive ads can be designed for various platforms
including online and mobile, and can take many forms such as videos, games,
quizzes, polls, and surveys.
. Value of Products:
The advertised products are not always the best products in the market. There are
some unadvertised products also present which are good enough. But advertising
helps increase value for the products by showing the positive image of the product
which in turn helps convincing customers to buy it. For e.g. mobile phones were first
considered as necessity but nowadays the cell phones come with number of
features which makes them mode of convenience for consumers.
. Effect on Prices:
Some advertised products do cost more than unadvertised products but the vice
versa is also true. But if there is more competition in the market for those products,
the prices have to come down, for e.g., canned juices from various brands. Thus
some professional like chartered accountants and doctors are not allowed to
advertise.
But some products do not advertise much, and they don’t need much of it and even
their prices are high but they are still the leaders in market as they have their brand
name. e.g., Porsche cars.
Eg: To capture the audience's attention, you might create a headline that reads
"Get Fit in Just 30 Days!" with an image of a person exercising. This headline and
image are designed to grab the audience's attention and encourage them to read
on.
Interest: Once the consumer is aware that the product or service exists, the
business must work on increasing the potential customer’s interest level.
Eg: Once you have their attention, you need to generate interest by highlighting
the key benefits of the fitness program. For example, you might say "Our fitness
program is perfect for busy people who want to get in shape quickly and easily.
Our workouts are only 30 minutes long and can be done from the comfort of your
own home."
Desire: After the consumer is interested in the product or service, then the
goal is to make consumers desire it, moving their mindset from “I like it” to “I
want it.”
Eg: In order to create desire for the fitness program, you need to appeal to the
audience's emotions and show how the program can solve their problem or fulfill
their desires. You might say "Imagine feeling more confident and energized than
ever before. Our program will help you achieve your fitness goals, no matter how
busy your schedule is."
Action: The ultimate goal is to drive the receiver of the marketing campaign to
initiate action and purchase the product or service.
Eg: Finally, you need to encourage the audience to take action. You might include a
call-to-action at the end of the message, such as "Sign up today and get started on
your fitness journey!"
hierarchy of effect,
Explains how consumers move through a series of steps before making a purchase.
The model suggests that consumers go through a series of cognitive, affective, and
behavioral stages before deciding to purchase a product or service.
. Awareness: This is the most crucial step and the starting point for purchase.
Brands must make sure that the consumer is aware of the presence of your
brand in a particular product segment.
. Knowledge: This is where your product will be evaluated against other brands by
the consumer. Make sure enough (positive) knowledge is available about your
product – through the internet, retail stores and the product package itself.
. Liking: This is where the consumer builds a liking to your product. This is where
your product is being considered for its emotional benefits; be sure to make them
prominent.
. Preference: By this time consumer may be convinced to try out your product, but
may like other brands too. So what is it that will make her prefer XYZ over the
other brands? These points of differentiation or unique selling points need to be
highlighted to make sure that the consumer likes your brand more than the
others in her consideration list.
. Conviction: This is the stage where the doubt in consumers’ minds about buying
the product of your brand needs to be converted into action. Marketers can aid in
this step by giving out free samples, test drives etc. This step should also decide if
the consumer will stick to your brand i.e. actually buy your brand, or switch after
testing the sample.
. Purchase: The last and the most crucial stage of the consumer buying cycle is
the purchase. You need to make sure that purchase experience is easy and
perhaps even enjoyable for the consumer. Some of the ways to encourage
purchase is by keeping simple and multiple paying options, making the product
available easily, easy to understand usage instructions, offers etc.
The model outlines five stages that individuals go through when adopting a new
innovation:
Four key factors that influence the rate of adoption of a new product or technology:
Eg: Neeraj Chopra in CRED. Tata Sky: Isko lga daala to life Jinga lala
. Familiarity: Familiarity refers to the degree to which people are familiar with the
product or brand being advertised. The more familiar people are with a product or
brand, the more likely they are to have positive attitudes and preferences towards
it. Familiarity can be achieved through repeated exposure to advertisements,
product placements, or endorsements by trusted sources.
. Maximize exposure: The marketer should focus on selecting the right channels
for advertising, such as TV, social media, and online advertising, to maximize the
exposure of the energy drink to the target audience. For instance, they can
advertise during popular sports events like the Olympics or Super Bowl to reach a
larger audience.
. Increase salience: The marketer should create ads that capture people's attention
by using bright colors, catchy slogans, and unique branding. They could use
high-energy visuals that showcase the product and its benefits, such as providing
energy, alertness, and improved focus.
. Build familiarity: The marketer should create campaigns that help to build
familiarity with the energy drink brand by ensuring that it is consistently and
regularly advertised across different channels. This could include product
placements in popular TV shows, social media campaigns, and celebrity
endorsements.
. Use integrated marketing communications: The marketer should use an
integrated marketing communications approach that combines multiple
channels like TV, social media, print media, and online advertising. This will help
to maximize the exposure of the energy drink and increase the chances of
creating salience and familiarity.
. Monitor and optimize campaigns: The marketer should track metrics such as
reach, frequency, brand awareness, and sales to determine the effectiveness of
the campaign. They should adjust the advertising strategy as necessary to
optimize the campaign's performance.
low involvement,
High and low involvement learning are two models that describe how consumers
learn and process information from advertising, based on the level of involvement
they have with the product being advertised.
. High involvement learning: This occurs when a consumer is highly motivated and
actively engaged in the process of learning about a product. High involvement
learning is more likely to occur when the product is expensive, complex, or
perceived to have significant consequences for the consumer. In this case,
consumers are likely to spend more time and effort learning about the product,
and are more likely to engage in research and seek out more information before
making a decision. In high involvement learning, consumers tend to be more
critical and analytical of the information presented in the advertisement, and will
process it more deeply.
. Low involvement learning: This occurs when a consumer has little motivation or
interest in learning about a product. Low involvement learning is more likely to
occur when the product is inexpensive, simple, or perceived to have little impact
on the consumer. In this case, consumers are more likely to process information
about the product superficially, and may not be actively engaged in the learning
process. In low involvement learning, consumers tend to rely more on heuristics,
or mental shortcuts, when processing information about the product.
The Elaboration Likelihood Model (ELM) is a theory of persuasion that explains how
people process and respond to persuasive messages. There are two routes to
persuasion: the central route and the peripheral route.
. Central Route: This route involves a person carefully considering and analyzing
the persuasive message. The central route is more likely to be taken when the
message is personally relevant, the person has the ability to process the
information, and the message is presented in a way that is clear and compelling.
In this route, the person will carefully consider the arguments and evidence
presented in the message, and make a decision based on the strength of those
arguments.
. Peripheral Route: This route involves a person being persuaded by cues outside of
the message itself, such as the credibility of the speaker, the attractiveness of the
advertisement, or the emotions evoked by the message. The peripheral route is
more likely to be taken when the message is not personally relevant or when the
person does not have the ability to process the information presented. In this
route, the person is more likely to be swayed by superficial aspects of the
message rather than the actual arguments presented.
Based on 2 factors:
Helps the marketers to see such factors as important to see how their ad campaigns
affects their target audience.
The nature of the thoughts that go on in a consumer’s head while viewing the ad
impacts his attitudes towards the product as the consumer evaluates the incoming
information in the context of past knowledge and attitudes.
The CRM proposes that a person's cognitive responses to a message fall into three
categories:
. Supportive Arguments: These are thoughts or attitudes that are favorable to the
message, such as agreeing with the claims made in the ad, finding the message
informative or interesting, or feeling positively toward the product being
advertised.
. Counter Arguments: These are thoughts or attitudes that are unfavorable to the
message, such as disagreeing with the claims made in the ad, finding the
message unconvincing or uninteresting, or feeling negatively toward the product
being advertised.
. Source Derogations: These are thoughts or attitudes that are critical of the
source of the message, such as distrusting the advertiser or feeling negatively
toward the spokesperson or ad campaign.
The CRM also proposes that the more a person engages in supportive responses, the
more likely they are to be persuaded by the message. Conversely, the more a person
engages in counterarguments or source derogations, the less likely they are to be
persuaded by the message.
Implications for a Marketer (how CAs and SAs can be managed: Pg 179 - 180)
. Comparative advertising:
. Inoculative Advertising:
. Refutational advertising:
emotional approaches;
The FCB Grid, also known as the Foote, Cone, and Belding Grid, consists of four
quadrants, each representing a different type of product or service, and each
requiring a different type of advertising approach. The two dimensions used in the
grid are:
. Involvement: This refers to the level of interest or involvement a consumer has in
a particular product or service.
. Thinking: This refers to the way in which consumers process information and
make decisions about products or services.
Marketers can develop more effective advertising strategies that resonate with the
target audience and lead to increased sales and brand loyalty.
→ When advertsiers don’t have any unique features to show (typically low
involvement products), they rely upon developing a brand personlaity to leave a mark
on teh consumers mind.
→ It guides how a particular message will be presenetd in an ad.
→ Brand Personality: refers to a set of huamn characteristucs asscoiated with a
brand. Provides an emotional identity for a brand and encourages consuemrs to
respond with feeling and emotions towards the brand. Reflelcts how people feel
about the brand rather than what they think the brand is or does.
Sincerity: Disneyland
Excitemnet: Mountain Dew
Competence: LIC
Sophistication: Swarovski
Ruggedness: Woodland
. Age: How long a brand has been in the market? New entrants tend to have
younger brand personalities
. Sponsorships: Types of events sponsored by the brand. Lakme sponsoring Indian
Fashion Week
. Symbol: a powerful influence since it can be controlled and can have strong
associations. Apple’s bitten apple, Nike’s aerodynamic swoosh
. User Imagery: Powerful driver as user is already a person and so conceptualizing
the personality is reduced.
execution,
1. Straight Sell
You tell your customer what the product is, what attributes are most appealing, and
provide the facts to back it up. This style of no-nonsense advertising is
straightforward, but may not be enough to make your product or service stand out.
2. Scientific or Technical Evidence
It’s unfortunate that many people automatically assume your product is exaggerated
or embellished in some way. To counteract this, you can use scientific studies to
support your claims or endorsement from a scientific body. This works well with
technical products or ones where the benefits aren’t immediately clear.
3. Demonstration
Demonstration is a technique that involves showing how the product works, how it
can be used, and its benefits, which helps to convince the audience of the product's
value and effectiveness.
4. Comparison
This is where you compare your product to your nearest competitor.
5. Testimonial
A testimonial is when someone talks about his or her positive experiences with your
product and how it affected their life. The more trustworthy the source, the more
effective the testimonial. As such, many celebrities are well-sought after for their
considerable influence.
6. Slice of Life
Slice of life execution technique involves creating a scenario or situation that shows
how the product or service can be used in real-life situations, which makes it more
relatable to the audience.
7. Personality Symbol
This involves creating a personality or mascot that’s intricately tied to your brand and
resonates with your viewers. Think Ronald McDonald, the Pillsbury Doughboy, the
Energizer Bunny, and so on.
8. Dramatization
Similar to the slice-of-life example, but more focused on excitement and action.
While dramatization is generally much more interesting to watch, there is a risk of
viewers being so drawn in to the action that they’re missing out on the product being
sold in the first place!
USP,
The USP is a unique benefit or feature that sets a product or service apart from its
competitors and provides a clear reason for the target audience to choose it over
other options.
entertainment;
→ Advertising should not only inform and persuade, but also entertain and engage
the audience.
→ Advertising that was entertaining could capture the viewer's attention and create
an emotional connection with the brand. This emotional connection could help to
build brand loyalty and increase the likelihood of a purchase.
format & formulae for presentation of appeals (slice of life, testimonials, etc);
→ Rational and emotional appeal
→ types of execution strategy
→ Types of Ad copy:
. Scientific copy – prepared for technical products such as computers,
machinaries. Generally describes the features, advantages, uses and content of
the product. This copy is written for an audience, who is presumed to be having
technical knowledge.
→ Headline: word or phrase printed in large letters above the advertising message.
Types of headlines
• Direct
– “ Head and Shoulders shampoo gets rid of dandruff”
Principles:
Functions of Ad layout:
. Grabbing attention: A well-designed ad layout should grab the viewer's attention
and make them interested in reading the ad further.
. Creating a hierarchy: Ad layout creates a visual hierarchy of information that
guides the reader's eye from the most important information to the least
important information.
. Emphasizing key points: Ad layout is used to emphasize key points and important
information in an ad.
. Enhancing readability: Ad layout can enhance the readability of an ad by making
the text easy to read and the visuals easy to understand.
. Creating a cohesive brand image: Ad layout is used to create a cohesive brand
image by using consistent colors, fonts, and imagery throughout the ad.
. Differentiating from competitors: Ad layout is used to differentiate an ad from
competitors by using unique visuals and layouts.
. Providing a clear call-to-action: Ad layout can provide a clear call-to-action that
directs the reader to take a specific action, such as visiting a website or making a
purchase.
layout stages,
1. Thumbnail Sketches
They are miniature sketches that are used by the art directors to convey the basic
layout style and treatment without spelling out small details.
2. Rough Layout
Rough layouts or visuals, are prepared for almost all advertisements. They are the
same size as the finished advertisements except for outdoor posters.
3. Finished Layouts
The next stage is the preparation of the finished layout, which is worked more
carefully than the rough layout. They suggest in considerable detail the style of the
illustration and headlines and therefore serve as a guide to artist and typographer.
4. Comprehensive Layouts
A comprehensive layout is prepared for a client when they are unable to judge the
effect of the finished advertisements by looking at the finished layout. These layouts
come very close to resembling the finished advertisements.
5. Working Layouts
Working layouts are not really layouts, but rather a sort of “blueprint” for production,
indicating the exact position of the various elements and appropriate instructions for
the typographer and engraver. They are also known as “mechanicals”.
difference in designing of television, audio & print advertisement
. Visual vs. audio medium: Television and print advertisements are visual mediums,
while audio advertisements rely solely on audio. This means that designers must
take into account the different ways that viewers or listeners will experience the
advertisement.
. Time limitations: Television and audio advertisements have time limitations,
meaning that designers must be able to effectively communicate the message
within a limited amount of time. Print advertisements do not have these
limitations.
. Format: Television and audio advertisements have a specific format, such as 30-
second spots, while print advertisements can vary in size and layout. Designers
must work within the constraints of the specific format.
. Use of sound: Audio advertisements rely on sound to convey the message, while
television advertisements use both sound and visuals. Print advertisements do
not include sound.
. Production costs: Television and audio advertisements typically require higher
production costs due to the need for filming, recording, and editing. Print
advertisements, on the other hand, have lower production costs.
. Target audience: The target audience for each type of advertisement may differ,
and designers must take this into account when creating the advertisement. For
example, a television ad may be geared towards a more visual audience, while an
audio ad may be targeted towards commuters who listen to the radio.
Unit 3
Media planning and scheduling:
Introduction to broadcast & non -broadcast media;
Broadcast media
Broadcast media refers to the mass communication channels that transmit
information to a large audience through electronic means, such as radio and
television.
Advantages:
. Wide Reach: Broadcast media has the potential to reach millions of people
simultaneously, making it a powerful tool for spreading information to a large
audience.
. Timeliness: Broadcast media can deliver news and information in real-time,
providing the most up-to-date information to the public.
. Cost-effective: Compared to print media, broadcast media can be relatively
affordable, especially for smaller businesses that want to advertise their products
or services.
. Audience Engagement: Broadcast media can engage its audience through live
events, interactive programming, and other features that encourage
participation.
Disadvantages:
. Limited Targeting: Unlike other forms of media, broadcast media does not allow
for precise targeting of specific audiences, making it less effective for niche
marketing.
. Short-lived Content: Broadcast media content is often fleeting, with news stories
and commercials only lasting a few minutes, making it less effective for long-term
branding efforts.
. Lack of Flexibility: Once a broadcast is transmitted, it cannot be changed or
edited, meaning that mistakes or errors cannot be easily corrected.
. Overcrowded Market: With so many different channels and networks vying for
the audience's attention, broadcast media can become overcrowded and
oversaturated, making it difficult to stand out.
NON BROADCAST
Non-broadcast media refers to any media that is not transmitted over the airwaves,
such as print, outdoor, and online media.
Examples: You Tube, BBC IPLAYER, CD etc.
Advantages:
. Targeted Audience: Non-broadcast media allows for precise targeting of specific
audiences, making it more effective for niche marketing.
. Longevity: Non-broadcast media content can last longer than broadcast media
content, such as print ads that can be kept for an extended period of time.
. Flexibility: Non-broadcast media allows for changes and edits to be made to
content, making it easier to correct mistakes or update information.
. Variety: Non-broadcast media provides a wide variety of options for advertisers,
including print ads, billboards, direct mail, and online advertising.
Disadvantages:
. Limited Reach: Non-broadcast media often has a smaller reach than broadcast
media, which can limit the number of people who are exposed to the message.
. Lack of Timeliness: Non-broadcast media may not be as timely as broadcast
media, as it may take longer to produce and distribute content.
. Higher Cost: Non-broadcast media can be more expensive than broadcast media,
particularly for certain forms of advertising such as outdoor or print media.
. Limited Engagement: Non-broadcast media may not engage the audience as
effectively as broadcast media, as it is often a passive experience for the
consumer.
Media Planning refers to an analytical method for making media decisions, and
describe the process of taking the message across to the target audience at the
right time and place, and using the right media vehicle.
2. NATURE OF CONSUMERS
An appropriate media plan must consider the type or number of customers.
Consumers differ in their age , sex , education , income , personality etc. different
medias choose for different customers example, in the case of youth chose social
medias for ad. In the case if illiterate,
radio and tv are better.
3. ADVERTISING OBJECTIVES
If the objective of advertising are to get immediate result then fast media of
communication like newspapers, banners, will be considered. If the objective of
advertising is to build goodwill and brand-equity, then magazines , tv , neon
signboards will be considered.
4. SIZE Of AD BUDGET
If amount of ad budget is more, then costly media can be selected Like tv.
6. MEDIA AVAILABILITY
Media availability must be considered for media planning. Sometimes some medias
are not available eg : television , first page of newspaper etc.
7. MEDIA FREQUENCY
It refers to average number of times , the audience is exposed to media – vehicle in a
specified period of time.
8. MEDIA DISCOUNT
Some time some medias offer attractive discount schemes. The advertisers consider
these discount schemes while selecting media.
9. LANGUAGE
The advertiser select that media which communicates in the language well known to
our target customers.
. Market analysis:
Identify and understand the target audience for the campaign. This includes
demographic information, interests, behaviors, and media consumption habits.
Gather market research data to understand market trends, consumer behavior, and
media consumption patterns. This helps in identifying the media channels that will
effectively reach the target audience.
Internal factors—size of AD, image of the organization, budget and potential market.
External factors – competitors , media cost and coverage, media image.
Example: The target audience for the outdoor adventure gear company is males and
females aged 25-45, who are outdoor enthusiasts, enjoy hiking, and have an active
lifestyle. Market research reveals that the target audience for the hiking boots
campaign consumes a mix of online content, outdoor magazines, and social media
platforms.
. Reach: Reach refers to the total number of people who are exposed to an
advertising message over a given period of time. The objective of reach is to
maximize the number of people who are exposed to the message, with the goal of
increasing brand awareness and generating interest in the product or service.
. Frequency: Frequency refers to the number of times the target audience is
exposed to the advertising message over a given period of time. The objective of
frequency is to reinforce the message and increase the likelihood that the target
audience will remember the brand or product.
. Continuity: Continuity refers to the duration and scheduling of an advertising
campaign. The objective of continuity is to maintain a consistent presence in the
market, with the goal of keeping the brand top-of-mind among the target
audience.
. Cost: Cost refers to the budget allocated for the advertising campaign. The
objective of cost is to ensure that the campaign is cost-effective and that the
budget is being used in a way that maximizes the return on investment.
. Weight: Weight refers to the total amount of advertising in a given period of time.
The objective of weight is to achieve a certain level of exposure among the target
audience, with the goal of generating interest in the product or service.
Example: Media objectives include reaching 70% of the target audience at least
three times during the campaign period, allocating 50% of the budget to online
advertising, 30% to outdoor magazine placements, and 20% to social media
promotions.
Mainly 4 decisions to be taken care of: media class, vehicle, option and scheduling.
(Duration of campaign, when to be campaigned? where to be campaigned? )
Example: The media planner analyzes the campaign's performance, comparing the
reach and frequency achieved, engagement levels, and sales figures against the set
objectives. The report concludes that the campaign successfully increased brand
awareness and contributed to a 20% increase in hiking boot sales.
Media decisions-
media class,
. MEDIA CLASS
This is the class of medium under each type of media such as newspapers and
magazines (print), television , radio and cinema (audio-visual), banners, posters (
outdoors) etc.
MEDIA CLASS
Audio
Television
Print
Digital publication
Outdoor
Social medias
media vehicle &
Media vehicle refers to a specific method ( like digital , radio, newspaper etc)of
media used by a business to deliver advertising messages to its target audience.
The first step is ti pick a suitable media class , that is a general category of media
like radio, tv, newspapers etc. this is followed by selection of the right media
vechile , such as a specific radio station , television channel, print publication. The
aim is to reach the target consumer group and receive a
good response to the advertising messages from the group
2. PRINT VEHICLE
Newspapers and magazines
Newspapers vehicles include national newspapers and community newspapers.
media option;
This is detailed description of an ad other than copy and artwork such as size (
full –page or half page), colour backgrounds etc. example , length of ad –slot of
10, 30, 60 seconds., ad location.
Scheduling-
flighting,
This mode is all so called “BURSTING”. This absolute season based products
model.
The ad here run at very irregular intervals. Advertisement are for very shorter
periods and sometimes no ads at all.
ADVANTAGES
Less waste of funds as the ads run only at the peak time when the product
demand is on high.
Eg: snowploughing company
pulsing,
Pulsing combines flighting and continuous scheduling by using a low advertising
level all year round and heavy advertising during peak selling periods . Product
categories that are sold year round but experience a surge in sales at intermittent
periods are good candidates for pulsing.
Eg: clothing, car insurance
continuous
The run ads whole year round. The advertisements under this type run at regular
and fixed intervals. The main advantage here is reminding about the products to
the customers continuously. This model helps maintain a continuous and
complete purchase cycle. This is a best model for the products having continuous
demand all the year round.
Unit 4
Management of sales promotion:
Importance & need for sales promotion;
Sales Promotion
“A direct inducement that offers an extra value or incentive for the product to the
sales force, distributors, or the ultimate consumer with the primary objective of
creating an immediate sale.”
1. Communication: Sales promotion usually provides information that may lead the
customer to the product.
2. Incentive: It incorporates some concession, inducement, or contribution that gives
value to the consumer.
3. Invitation: It includes a distinct invitation to engage in the transaction
immediately.
Objectives of Sales Promotion
1. Building product awareness
In the situations of new product introduction, sales promotion techniques are used
to create awareness among the consumers about the product.
2. Immediate increase in sales
Advertising, personal selling and other methods of promotion produce slower sales
response compared to sales promotion.This creates an immediate positive impact on
sales.
3. Competitive advantage
Due to increase in competition, companies are finding it increasingly difficult to
compete on quality. They are therefore resorting to more innovative methods of sales
promotion in order to have an advantage over its competitors.
4. Strengthen the brand image
Sales promotion techniques are used by organisations to create a distinct image for
their brands in the target market. Thus, sales promotion strengthens the brand
image.
5. Attracts customers
Sales promotions are very effective in creating interest in a product. Appealing sales
promotions increase attraction of the consumers to the products.
6. Motivation of the existing customers
The most important use of sales promotion is to build demand by convincing
customers to make a purchase.
7. Reinforcing the brand
Once customers have made a purchase, sales promotion can be used to both
encourage additional purchasing and also as a reward for purchase loyalty. Sales
promotion is used to reinforce the brand in the market.
. Set objectives:
Clearly define the objectives of the sales promotion program. This could be to boost
sales during a specific period, increase customer loyalty, introduce a new product, or
target a particular market segment.
Example: A cosmetics company wants to increase sales of its new line of skincare
products by 20% within the next three months.
Identify the specific target audience for the sales promotion program. This includes
understanding their demographics, preferences, buying habits, and motivations.
Example: The target audience for the skincare products includes females aged 25-
45 who are interested in skincare, beauty enthusiasts, and health-conscious
consumers.
Choose the promotional tools and tactics that align with the objectives and target
audience. This can include discounts, coupons, contests, loyalty programs, samples,
in-store displays, online promotions, or partnerships.
Example: The sales promotion program may include offering a 20% discount on the
skincare products for a limited period, providing free samples with every purchase,
and running an online contest to win a skincare gift set.
Allocate a budget for the sales promotion program, considering the costs associated
with promotional materials, advertising, incentives, staff training, and any additional
expenses.
Example: The cosmetics company allocates a budget of $50,000 for the sales
promotion program, which includes advertising costs, printing of promotional
materials, and prizes for the online contest.
Create a timeline for the sales promotion program, specifying the start and end
dates for each promotional activity. This helps in coordinating different tactics and
ensuring they are executed in a timely manner.
Example: The skincare products' sales promotion program will run for three months,
starting from June 1st and ending on August 31st. The discount offer will be
available for the first month, while the online contest will run throughout the entire
period.
Execute the planned promotional activities as per the timeline. This involves
coordinating with various departments or external partners, training staff, creating
promotional materials, and launching the campaign.
. Evaluation and Follow Up: Evaluate the success of the sales promotion program
and corrective action to be taken in future.
Example: The company tracks sales data, monitors website traffic and conversions,
and analyzes customer feedback. They find that the sales promotion program has
resulted in a 25% increase in sales, a high redemption rate for the discount offer, and
a significant increase in website traffic during the contest period.
different types of consumer schemes.
1) Couponing
It is a scheme of distributing discount coupons to the customers. Coupons are paper
offers that are available in magazines and newspapers, may be downloaded from the
internet or are available at the point-of-purchase and entitle the recipient to a
reduction in price for a product or service.
Objectives:
→ To attract new consumers
→ Encourage repeat purchase
→ Clear out old inventory
→ Compete with competitors
2) Sampling
It refers to offering free product samples to consumers for trial . Sampling provides
the consumer with the opportunity to use the product by giving a free small portion
of the product for the consumer to test.
Objectives:
→ To increase the product trial and brand awareness
→ To generate interest
→ Influence purchase decisions: earlier apprehensive but aren’t now
→ Gain customer feedback and insights
→ Competitor differentiation
→ Brand loyalty
→ Personal connection create
3) Rebates
Certain part of the purchase amount is returned to the buyer by the seller. It is
usually given on the purchase of a certain quantity or value, product and for a limited
period of time.
Objectives:
4) Gifts/Premium
In this scheme, customers are entitled to get gifts while purchasing a brand.
A premium is a product or offer a consumer receives when they buy another
product. Wanting your favorite cereal because there was a toy in the box? Toy is the
premium.
Objectives:
→ Build customer loyalty
→ Enable repeat purchases
→ Strengthen brand image
→ Attract new customers
→ Introduce new products
→ Competitor differentiation
Objectives:
→ Attract price sensitive customers
→ Clear excess inventory
→ Increase market share
→ Create a sense of urgency
6) Quantity-off offers
It refers to offering more quantity of a product at the regular price.
Objectives:
→ Clear excess inventory
→ Enable repeat purchases
→ Upsell or cross-sell related products: businesses can offer a discount on a second
item when a customer purchases a specific product, thereby encouraging
customers to explore complementary products or upgrade to a higher-priced option.
7) Consumer contests
In the case of contests, consumers are invited to participate in competition and the
winners are given special gifts.
Objectives:
→ Increase brand awareness
→ Engage customers
→ Drive website traffic
. Sweepstakes: Lucky draws basically. Winners are selected randomly. are games
of chance people enter for the opportunity to win money or prizes. Sweepstakes
are often structured as some variation on a random drawing.
Objectives:
→ Engage customers
→ Increase brand awareness
Objectives:
→ TO enable repeat purchases
→ To build customer loyalty
Unit 5
Brand Management:
Concept of a brand;
Brand
The term brand refers to a business and marketing concept that helps people
identify a particular company, product, or individual. Brands are intangible, which
means you can't actually touch or see them. As such, they help shape people's
perceptions of companies, their products, or individuals. Brands commonly use
identifying markers to help create brand identities within the marketplace. They
provide enormous value to the company or individual, giving them a competitive
edge over others in the same industry. As such, many entities seek legal protection
for their brands by obtaining trademarks.
What Is Brand Management?
Brand Vs Product
. Definition:
Product: A product refers to a tangible item or an intangible service that is
offered to fulfill a particular need or want of consumers.
Brand: A brand encompasses the overall identity, perception, reputation, and
emotional associations that consumers have with a company, its products, or
services.
. Focus:
Product: The focus of a product is primarily on its features, functions, quality,
and value proposition. It emphasizes what the product does and how it
satisfies the customers' needs.
Brand: The focus of a brand is on building a distinct and recognizable identity
that sets it apart from competitors. It aims to create a strong and positive
perception in consumers' minds, establishing an emotional connection and
loyalty.
. Scope:
Product: Products are specific and concrete entities that can be physical items
like smartphones, clothing, or cars, or intangible offerings such as software or
financial services.
Brand: A brand is a broader concept that encompasses the entire
organization, its products, services, culture, values, and customer experience.
It represents the overall image and reputation of the company.
. Longevity:
Product: Products have a lifecycle and can change, evolve, or become obsolete
over time. They can be replaced or upgraded as technology advances or
market demands shift.
Brand: Brands have the potential for long-term sustainability and can outlive
individual products.
. Perception and Trust:
Product: Consumers evaluate products based on their features, performance,
and value for money. They may have specific expectations and make purchase
decisions primarily on product attributes.
Brand: Brands evoke emotions and create trust. A well-established brand is
associated with quality, reliability, and consistency, which can influence
consumer choices and instill confidence in their purchase decisions.
. Competitive Advantage:
Product: Differentiation among products is often based on specific features,
functionality, performance, or price. Products can compete directly with
similar offerings from other companies.
Brand: A strong brand can provide a competitive advantage by establishing a
unique identity, building customer loyalty, and commanding premium pricing.
It creates a distinctive position in the market that is difficult for competitors to
replicate.
. Product Brands: These brands are associated with specific products or product
lines. Examples include Nike for athletic footwear, Apple for electronic devices,
and Coca-Cola for soft drinks.
. Service Brands: Service brands represent intangible services rather than
tangible products. Examples include FedEx for courier services, Hilton for hotel
accommodations, and Amazon for online retail services.
. Corporate Brands: Corporate brands represent the overall identity and
reputation of a company or organization. These brands encompass all the
products, services, and activities of the company. Examples include Google, IBM,
and Coca-Cola Company.
. Personal Brands: Personal brands are associated with individuals, typically public
figures, experts, or influencers. These brands are built around the person's
expertise, reputation, and personal identity. Examples include Oprah Winfrey,
Elon Musk, and Cristiano Ronaldo.
. Umbrella Brands: Umbrella brands are overarching brands that cover a range of
related products or services. These brands create a common identity and
association across multiple offerings. Examples include Virgin Group, which
spans various industries such as airlines, music, and telecommunications, and
Procter & Gamble (P&G), which owns multiple consumer goods brands.
. Private Labels: Private labels, also known as store brands or own brands, are
developed and owned by retailers or distributors. These brands are exclusive to a
particular retailer and compete with national or global brands. Examples include
Kirkland Signature (Costco) and Great Value (Walmart).
. Co-Brands: Co-brands are created through a partnership or collaboration
between two or more brands. This type of brand combines the strengths and
attributes of each participating brand. Examples include Nike and Jordan Brand,
Apple and Nike+ (for fitness tracking), and Nestle and KitKat.
. Online Brands: Online brands specifically operate in the digital space and have a
strong online presence. They may include e-commerce platforms, online services,
or digital-native companies. Examples include Amazon, Netflix, and Airbnb.
. Financial challenges
Another of the top branding challenges businesses face regarding branding is the
funding it needs to be successful.
A sensible budget should be allocated to branding, along with marketing, which is a
significant consideration to make.
. Savvy customers
. Increasing job turnover
. Maturing markets
You need to define where and what they need to communicate with the potential
buyers. Once you identify where different categories of your potential consumers
spend time, you have to design campaigns to try and reach out to people where they
are present. Profiling the users on the major social media platforms like Facebook,
Twitter, Instagram, Pinterest, and LinkedIn.
Once if you build a social media branding strategy, it is essential to be persistent and
consistent regarding branding efforts to keep on top of the competition.
However, it is not all about always rushing to be seen by customers every minute of
the day.
Remember – overdoing it will only adversely affect your branding challenges online.
. Brand Name: The brand name is the primary verbal or linguistic identifier of a
brand. It can be a unique word or a combination of words that represent the
brand. Examples include Coca-Cola, Apple, and Nike.
. Logo: The logo is a visual representation or symbol that represents the brand. It
often incorporates typography, imagery, and colors that are distinct to the brand.
Logos provide instant recognition and serve as a visual cue for consumers. Well-
known logos include the Nike swoosh, the Apple bitten apple, and the
McDonald's golden arches.
. Tagline/Slogan: A tagline or slogan is a short and memorable phrase that
captures the essence or key message of a brand. It helps convey the brand's
positioning, benefits, or values. Examples include Nike's "Just Do It," McDonald's
"I'm Lovin' It," and BMW's "The Ultimate Driving Machine."
. Brand Colors: Brands often have specific colors associated with them, which can
evoke emotions and create brand recognition. For example, the red and white
color scheme of Coca-Cola or the blue and yellow of IKEA.
. Jingle/Music: Some brands have distinctive audio elements, such as jingles or
soundtracks, that help reinforce brand recognition. These audio cues can create
a strong association with the brand and trigger instant recall. Examples include
the Intel jingle and the McDonald's "I'm Lovin' It" song.
. Packaging: The packaging reflects the brand's visual identity and can
differentiate it from competitors on store shelves. Packaging elements may
include logo placement, color schemes, and typography consistent with the
brand.
. Brand Characters/Mascots: Brands sometimes use fictional characters or
mascots to personify and represent their brand. These characters can help
establish a memorable and relatable connection with consumers. Examples
include the GEICO gecko, Tony the Tiger for Kellogg's Frosted Flakes, and Ronald
McDonald.
. Brand Voice/Tone: The brand voice refers to the style, tone, and language used
in brand communications. It represents the personality and character of the
brand, shaping how it interacts with consumers. The brand voice can be formal,
casual, humorous, authoritative, or any other tone that aligns with the brand's
positioning.
In order to build a strong brand, you must shape how customers think and feel about
your product.
The four steps of the pyramid represent four fundamental questions that your
customers will ask – often subconsciously – about your brand.
These four steps also contain six building blocks that must be in place for you to
reach the top of the pyramid, and to develop a successful brand.
Ask yourself:
What decision-making processes do your customers go through when they
choose your product?
How are they classifying your product or brand?
How well does your brand stand out from other, similar ones?
You are able to sell your product because it satisfies a particular set of your
customers' needs; this is your unique selling proposition, or USP. Do they fully
understand these USPs when they're making their buying decisions?
Step 2: Brand Meaning – What Are You?
Identify and communicate what your brand means to your customers, and what it
stands for. Do this by considering your brand in terms of "performance" and
"imagery":
Performance defines how well your product meets your customers' needs.
According to Keller's model, performance consists of five categories: primary
characteristics and features; product reliability, durability, and serviceability;
service effectiveness, efficiency, and empathy; style and design; and price.
Imagery refers to how well your brand meets your customers' needs on a social
and psychological level. Your brand can meet these needs directly, from a
customer's own experiences with a product; or indirectly, with targeted
marketing, or by word of mouth.
Take both performance and imagery into account, and create a "brand personality."
Again, identify any gaps between where you are now and where you want to be, and
look at how you can bridge these.
Customers also respond to your brand according to how it makes them feel.
According to the model, there are six positive "brand feelings" customers can get
from a product or service they use: warmth, fun, excitement, security, social
approval, and self-respect.
Which, if any, of these does your current marketing strategy focus on? What can you
do to enhance these feelings in your customers?
Brand "resonance" sits at the top of the brand equity pyramid because it's the most
difficult – and the most desirable – level to reach. You have achieved brand
resonance when your customers feel a deep, psychological bond with your brand.
Keller breaks resonance down into four categories:
Behavioral loyalty – this includes regular, repeat purchases.
Attitudinal attachment – your customers love your brand or your product, and
they see it as a special purchase.
Sense of community – your customers feel a sense of community with people
associated with the brand, including other consumers and company
representatives.
Active engagement – Customers are actively engaged with your brand, even
when they are not purchasing it or consuming it. This could include joining a club
related to the brand; participating in online chats, marketing rallies, or events;
following your brand on social media; or taking part in other brand-related
activities.
Your goal, in the last stage of the pyramid, is to strengthen your brand resonance in
each of the four categories listed above.
Process
This positioning strategy focuses on the relationship between price and quality and
the consumer's perception of the value of a product. In comparing jacket prices, a
buyer might assume that a jacket higher in price is higher in quality. Conversely, a
lower-priced product will position for affordability. Designer jeans boast quality
because of cost, while department store jeans are accessible to all.
3. Use or application
When a brand reaches a larger market or changes the purpose of the brand or
product, positioning may be based on its use or function. For example, a company
that advertises its hot tea during colder seasons begins to promote an iced version
during the summer to alter its brand's use to reach a larger market through
modifying applications. Tape or adhesives often used for home repairs can reposition
the brand for decorative or craft projects. Widening the reach accesses a different
type of customer.
4. Product user
This is when a brand is associated with a specific user. Endorsements by famous
personalities or product influencers are examples. The athleticism exhibited by
basketball players who wear specific sneaker brands is expected to be associated
with the brand in consumers' minds. In purchasing that brand, the expectation is
that all who wear it will be as athletic.
5. Product class
This consists of positioning two related products in the same product class
simultaneously, resulting in an increased customer base. By positioning dried milk as
both a breakfast substitute and a protein shake, the appeal is doubled to two
different customer needs.
6. Cultural symbols
The objective of positioning based on a cultural symbol is to identify something like a
symbol significant to people that hasn't been used by competitors and harness it to
associate your brand with that symbol. Airlines have done this with cultural symbols
to associate with royal treatment.
brand extension;
Types:
. Line Extension:
Introduction of new variants or flavors within an existing product category.
Example: Coca-Cola launching Diet Coke, Coke Zero, and Cherry Coke alongside
its original Coca-Cola brand.
. Category Extension:
Expansion into a new product category that is related or complementary to the
existing brand.
Example: Apple extending its brand from computers to mobile devices with the
launch of the iPhone.
. Brand Family Extension:
Introduction of a range of products or sub-brands under the same brand
umbrella, spanning multiple categories.
Example: Nestlé's KitKat brand extending to various flavors, sizes, and variants
like KitKat Chunky, KitKat Minis, and KitKat Ice Cream.
. Vertical Extension:
Expansion into a different level of the value chain or adding products or services
at different stages of production or distribution.
Example: Nike moving beyond footwear and apparel to offer sports equipment,
such as basketballs, soccer balls, and golf clubs.
. Horizontal Extension:
Introduction of new products or services that are unrelated to the original brand
but appeal to the same target market.
Example: Virgin Group, originally known for its music business, extending into
diverse industries such as airlines, telecommunications, and finance.
. Geographical Extension:
Expanding the brand's presence into new geographic markets.
Example: McDonald's opening new restaurants in different countries around the
world to cater to local tastes and preferences.
. Co-Branding:
Collaborating with another brand to launch a joint product that combines the
strengths of both brands.
Example: Nike and Jordan.
. Licensing:
Allowing other companies to use the brand name and associated elements to
produce and market products in different categories.
Example: Disney licensing its characters to be used on various merchandise,
clothing, toys, and home decor items.
. Digital Extension:
Expanding the brand's presence into the digital realm by offering digital
products, services, or platforms.
Example: Spotify, a music streaming platform, extending to podcasting by
providing podcast content alongside its music offerings.
brand hierarchy-
Kapferer.
Kapferer’s Brand Identity Prism
Brand equity;
Brand equity refers to the value and strength of a brand in the marketplace. It
represents the intangible assets and advantages that a brand possesses, which
can contribute to its ability to generate demand, command premium pricing, and
maintain customer loyalty.
brand personality.
Aaker’s Brand Personality Model
Help Scout on Twitter: "Stanford professor Jennifer Aaker identified 5 common
dimensions in a brand's personality: https://t.co/qrfP4VUq1C
https://t.co/Sy21J5fsz1" / Twitter
Sincerity: Disneyland
Excitemnet: Mountain Dew
Competence: LIC
Sophistication: Swarovski
Ruggedness: Woodland
PYP Analysis
2018
a. Creative Approach: Emotional Appeal
c. Flighting Model
→ Only during holidays required
→ Less wastage of funds
→ Seasonal product: travelling during holidays
→ Doesn’t lead to ad wearout
d. → Remembering jingle: long lasting effect
→ Interest more: music is a good combo with visuals
→ Attention: something’s happening
→ Creates a pleasing atmosphere: Putting in a good mood
→ Helpful for low involvement and peripheral route
Humor would:
→ distract
→ strength of arguments would weaken
→ SAs fall and CAs rise
-
→ Headline, visual elements, sub head, body copy, proof of claim, slogan, CTA
→ Laout: explain few principles
Advertising Spiral
Creates a circle where rather than going in a state of decline, a new outlook is given
to the brand and product to revive it, sometimes even by repositioning.
. Intro/pioneering stage:
→ awareness for brand or product category
→ Primary demand/generic demand
. Competitive:
→ create and highlight USP
→ brand specific demand
. Retention:
→ most people have adopted the product
→ repurchase and replacement purchase
→ replacement demand
→ instead of going into decline, brand repositions itself and revives through new
product development, packaging changes, advertising and promotions etc.
→ inability to do this means other brands will take your space
. New competition:
. New Retention:
2019
i. Celebrity Endorser
Short Note:
2022
. Sample, Gifts
. Discount, Price off, Quantity off
. Rebate, Financial subsidizing
. Quantity off, Price off, Discount
. Prizes/gifts, Product Placement
. Sample, Contest,