Professional Documents
Culture Documents
Advertising 2. Direct Marketing 3. Interactive
Advertising 2. Direct Marketing 3. Interactive
1. Advertising
2. Direct Marketing
3. Interactive /internet marketing
4. Sales Promotion
5. Publicity/ Public Relations
6. Personal Selling
7.
Advertising
Paid form of non personal
communication is normally
called advertisement
PSA or Public Service
Announcement is donated by
media
Non personal communication
means involvement of mass
media- TV, Radio, print
No opportunity for immediate
feed back
Importance of
advertisment
Character of pervasiveness
Vital for products that target mass
consumers
Most cost effective way to reach large
audiences
30 sec ad in 4 channels (US) reaches 6
million households
Cost per thousand household in 2004 =
$19.85
Pop shows like American Idol or
desperate hw reaches 25 to 30 million
viewers per week
Indian scene
Expenditure on IMC in India = Rs
200 million
Average 30 sec commercial on DD
reaches 4 million households
6 million can be reached if aired in
DD and 3 other channels
Average cost per thousand
household less than Rs 50/-
India-Pak cricket or Kaun Banega
Crorepati reached 15-20 million
households
Advertisement Gains
Build brand
Inform consumer
Build perception
Create differentiated image in
crowded market
Create the Basis for brand recall
Direct Marketing
Direct marketing one of the
fastest growth sectors in US
economy
Includes data base management,
direct selling, telemarketing,
direct response mails through
internet, or other ads
Eg: Tupperware, Discovery Toys,
Amway. Ell became market
leader
No distribution channel; direct
Direct Response
Advertising
Product promoted through ads
Consumers encouraged to buy
from manufacturer
Dual income, more money less
time to shop
Growth of credit cards,
Toll free numbers
Internet revolution
Database management
Interactive/Internet
marketing
Internet has brought about
revolution in communication
New media basic essence =
interactive
Text messaging contests : Frito
Lay Black Pepper Jack brand of
chips: creation of consumer
involvement
Data base creation and
generation of metrics
Sales Promotion
Extra incentive for sale
Consumer oriented – coupons,
rebates, offers etc ( short term
boost noticed)
Trade oriented- price deals, sales
contests trade shows
Consumer packaged goods 60-
70% promotional budget on
sales promotion
Decreasing brand loyalty and
Publicity
Publicity: nonpersonal
communications not directly
paid for
News reports, editorials ,
announcements etc
Credibility high
Costs low
Impact of negative publicity and
ways to counter it
PR
Managing public perception
through planned action
Publications
Sponsorship
Toyota creating jobs in the US!
CSR
Indian PR firms growing at 20%
annually
Personal Selling
Person to person direct
communication
Face to face
Phone calls
Customised sale possible
Instant tailoring of product
possible