advertising and promotions project
TRANSCRIPT
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Project by:
Joseph -14
Praneet-25
Divya - 26
Huda- 18
Kirti- 71
Poonam-31
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Topics to be coveredo Advertising Rules and Regulations
o Direct marketing
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Advertising Rules and Regulations Rules and Regulations are part of everyones
life
There are 2 opinions with regard to advertising
regulations
Govt Intervention
Self regulations byadvertising professionals
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Areas focused:
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Dir ct t w r Ki
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Medici e, health
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Foodadverti i
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Fi ancial adverti ing
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Environmental friendl
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Deceptive Advertising Affects Perceptual process adversely by
altering reality and affects buying behaviour
Focus of deception has moved to- Likelihood
of misleading
The claims should be restrained keeping in
mind the commercial focus
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Various forms of Deception: Misrepresentation- Amul Macho
Unsubstantiated Claims- Complan
Bait and switch- Garnier
Unidentified Advertising- Asian Sky Shop Telemarketing
Intellectual Property-High Implying a benefit needed Doodh doodh campaign
Implying benefit not delivered.
Endorsement Non existent and partially existent benefit- Lemon drink
Implying unique benefit- Crocin
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Puffery Puffery can be subjective or outright spoof
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Protection against Puffery or false
representation?
Reasonable Consumer Hair Dye
Concept of Materiality
Advertising research to Determine Deception
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Acceptable Level of Misinterpretation
Anything about 5% is acceptable
Ad comprehension till 30% is acceptable
Remedies cease and desist order,compensation of damage, affirmative disclosure
of omitted information and corrective
advertising to rectify past deception
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Direct Marketing MS Geller sketches DMs growth.
Traces with origin to first mail catalogue sent
by Aldus Manutius in Venice in 1948. Success of DM depends on maximum response
at lowest possible cost.
In DM its important to leran the customers-
both demographically, psychographically. DM is basically a part of relationship
marketing.
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Definition ofDirect MarketingAccording to Lester Wunderman the main focus of direct
marketing is and will remain creation of customerswho make repeat purchases rather than on
prospecting for product trials.
o It can only successful when it creates share of marketrather than share of mind.
o DM means right message to right people at the righttime.
o DM message should appeal to rationality and
emotions.o In 21st century its every marketer aims at building
lasting customer relationship by integrating 4Ps andDM helps it to be done at comparatively lower cost.
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Four attributes of DM Focus
Measurability
Personalisation
Immediacy
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From Books to computers.
Access to prospects efficiently
Mainly high involvement product
There has always been initial resistance to DM.
With concept of customer being focus andrelationship being the base gaining importance DM isgrowing slowly and steadily
DM is like an iceberg- marketers need to explore thesame
CreditCards
CosmeticsPackage tours Bankingproducts
Product old through DM
Books &periodicals
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DM in India Mainly used by business to business marketers
Products category includes consumer durable,
industrial goods, insurance, automobiles, IT, Telecom,
Financial services., Jewellery, luxury goods segment,
premium product segment etc.
Below the line marketing in India accounts for Rs.300
cr business.
It mainly focuses on specific consumer group.
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Direct marketing MediaDM Media
Newspaper
Insets
Press
AdvMagazines TV Cable TV Radio InternetDirect Mail
First Second Free Standing
Inserts
Blind In cards
Loose deck
Cards
Classified Regular
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Difference between DRTVcommercial
and BrandAdvertising.Brand Advertising Direct response TV
Advertising
1. Works on PT slots. Chases
High TRP slots
1. Works better in NPT slots.
It is more informative anddemonstrative in nature
2. It can talk about the brand in
most innovative manner
2. Everthing related to brand
has to be spoken in first 5 secs
3. It can be in the range of 10-50 secs ad
3.It is minimum 60 or 90 or120 secs
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Use of database in Direct Marketing
The database has to be correct
Timely revisions are to be made
Segmentation of the list can help. For ex-
high income buyers and low income ones.
Professional agencies also maintain
database and sell them to Companies.
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Important terms in Database marketing List Complier
List broker- link between list owner and
buyer. Broker represents buyer List manager - markets the list. Manager
represents owner.
Salting the list -Giving fake or decoynames.
Exmaple- telecom companies
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Testing Mail order list Mail order research is called testing. The
sample representation and database is
checked with expected response to thetest.
Product testing- Product concept is tested
mainly through questionnaire. Example- Amway products, tupperware
etc.
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Copy forDM It has to follow the AIDA process
It has to be more objective and factual
In case of personalized letters to customers it has tobe addressed as say Dear card member
Copy be it print, internet, TV or radio should use
simple direct words.
IN DM, the writing should be less complex but atthe end the database it reaches to will maximize the
effect of the same.
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Other aspects in DM The enclosures like a small gift, card etc should be
attractive.
In DM the first look is the impression that will motivatethe customer on the offer.
In case of letters envelopes should be attractive andcarry phrases that will make customer open the same.
Even order cards and coupons attached for any offershould have gripping words that will make customer gothrough the same.
Payment details for the offer should also be mentionedproperly
For example Shoppers Stop season sale offer card,Membership cards for clubs etc.
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DM - Catalogues Mainly used in case of industrial marketing
It should be of high quality in terms of production
More pictures for low involvement products
Long copy for high involvement products. It involves high cost of production so it is most of
the time sent once prospective customer isidentified.
It is sent as per seasonal scale quarterly, halfyearly or yearly.
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Telemarketing Outbound and Inbound calls.
It is used for receiving enquires, complaints,
orders and feedback. Database is very important
It should not intrigue the privacy of the
receiver.
Timing should be considered while usingtelemarketing
Example - Citibank, Vodafone etc.
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Post Sales activity Sale is not the only aim of DM
Customer satisfaction and retention is what DM aims
at.
A customer should never feel cheated after taking a
particular decision
Product quality, guarantee, warranty, delivery time,
acknowledgement letter, congratulatory letters, post
sales satisfaction are certain points to be considered.
Best example to demonstrtae is Eureka Forbes.
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DMCostings
Any business operates at break even point before makingprofits.
BEP (in units)= FixedOverheads
per unit contribution.
OR BEP (units)= Fixed overheads
P/V ratio%
P/V ratio= Contribution per unit x 100
Sales per unit
Contribution margin= Sales price (unit)- variable cost (unit) Gross Contribution margin= Total revenue total variable cost
In DM cost of all fixed overheads are in the range of 10-15percent.
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Database Marketing- shortcomings
Intrusion to privacy is one of the major factors
leading to failure of DM
Database loading research is one effective way-sought data from consumers
DM reduces cost as it avoids wrong targeting
unlike mass advertising
Still DM is at an initial growing stages in India. Direct marketing Guild of India is formed to secure
recognition
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Conclusion
DM is useful in communicating-
To small set of audience
When premium goods are sold It helps in reducing cost
Degree of comfort with the customer