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Module III , Promotion Advertising Sales Promotion Personal Selling Public Relation Publicity Propaganda

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8/6/2019 MM-II (Module – III )

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Module III , Promotion

�Advertising

�Sales Promotion

�Personal Selling

�Public Relation

�Publicity

�Propaganda

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MARKETING COMMUNICATION MIX

Marketing Communication Mix/Promotion mix is the"Promotion" of the Marketing Ps and covers every method

and medium of communicating with your target audience.

Propaganda

Sales 

Promotion

Public

Relation

Personal

Selling

Publicity

Advertising

Marketing

Communication 

Mix

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Advertising ± A definition

It can be defined as the paid form of non-personal

communication and presentation of ideas, goods and

services by an identified sponsor.

Defining Modern Advertising

� Paid persuasive communication

� Uses non-personal / mass media to reach broad audiences

� Connects an identified sponsor with a target audience

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Advertisement Defined

Ads are like people

You can see most people a hundred times

and not remember them,

but meet someone you like once,

and you will never forget them

Sir frank Lowe

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Advertising and Advertisement

*Advertising refers to the art and job of 

presenting goods and services etc. It is a

process.* But the term advertisement refers to the

form in which the actual massage appears.

*Advertising is made through advertisements

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Five Ms of Advertisement

� Advertising is called direct communication with customers which includes following five Ms

1. Mission: It states the objectives of  the advertising and 

the steps to achieve the objectives. It also includes the sales goal of  the company.

2. Money: It gives an idea that how much money should be spent by the company for the advertisement. 

Factors to be considered for this are stage of  product life cycle, market share and consumer base, competition, advertisement frequency and product substitutability.

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3. Message: Message includes what message should 

be given. It includes message generation, message 

evaluation and selection, message execution and 

social responsibility review.

4. Media: It includes which media should be used for 

the advertisement. It also includes reach, frequency, 

impact of  the advertisement. It also contains major 

media types, media vehicles, media timing etc.

5. Measurement: it is nothing but evaluation of  the 

results. It measures communication impact and 

sales impact by an advertisement.

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Advertising Objective

Informing

Persuading

Reminding

Reinforcement

Assisting Other Company Efforts 8

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Advertising Objective

Informing

� Makes consumers aware, educates them about

the features and benefits, and facilitates thecreation of positive brand images

� Facilitates the introduction of new brands and

increases demand for existing brands

3

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Advertising Objective

Persuading

� Persuades customers to try advertisedproducts and services

�� Primary demandPrimary demand:

�� Secondary demandSecondary demand:

10

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Advertising Objective

Reminding

� Keeps a companys brand fresh in the consumers memory

� Influences brand switching

11

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Advertising Objective

Reinforcing

� It seeks to assure current purchasers that they have made the right choice.

12

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13

Advertising Objectives

Assisting Other Company Efforts

�A

dvertising is just one member of themarketing communications team

� Sometimes, an assister that facilitates other

company efforts in the marketing

communications process

� Examples?13

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FUNCTIONS OF ADVERTISING:-

 Advertising isn¶t an end but a

means to an end ± A tool that advertisers can use

to reach their goals.

1.Stimulating demand

2.Strengthen other promotion mix element

3.Cut cost

4.Lower price

5.Competitive weapon

6.Create differentiation

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ADVERTISING MESSAGE

Message consist of  idea together with 

other relevant information. The idea spots the 

uniqueness of  the product to win a place in the consumer mind. Information gives detail of  the 

product which helps in taking the final decision.

Advertising message design identifies 

the consumers perceptions about the products.

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Message Structure

Most advertising messages share common components within the message including:

� The Appeal This refers to the underlying idea that captures the attention of  a message receiver. Appeals can fall into such categories as rational, emotional, fearful, humorous 

etc. � Value Proposition The advertising message often contains 

a reason for customers to be interested in the product which often means the ad will emphasize the benefits obtained from using the product. 

� Slogan To help position the product in customers mind 

and distinguish it from competitors offerings, advertisements will contain a word or phrase that is repeated across several different messages and different media outlets.

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MESSAGE GENERATION

Message generation can be done in thefollowing ways:

� Inductive: By talking to consumers, dealers,experts and competitors. Consumers are the

major source of good ideas. Their feeling aboutthe product, its strengths, and weaknesses givesenough information that could aid the Messagegeneration process.

� Deductive: John C. Meloney proposed aframework for generating Advertising Messages.

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MESSAGE GENERATION

According to him, a buyer expects four types of rewards from a product:

� Rational� Sensory

� Social

� Ego Satisfaction. 

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Advertising Media

A Media is a vehicle for carrying the sales 

message of  an advertiser to the prospect. 

It is indeed a vehicle by which advertiser convey their message to a large group of  

prospect and thereby closing the gap 

between producer and consumer.

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Types of media

� Above - the - line Media:- The recognized agencies get commission from these medias. Press, TV, 

Outdoor, Posters , cinema and radio comes under 

these category.

� Below the line Media:- Those who dont give commission to the ad agency. The agency adds a 

percentage as a handling or profit charge or 

charge a service fee. The examples are: Direct 

mail, POS, sales promotion, exhibition and sales literature

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Major Ad Media Categories: ± Print

� Newspapers� Magazines� Out-of -Home

 ± Broadcast� Radio� Television

� Narrow-cast Media ± Outdoor 

 ± Transit  ± Other Media

� Direct Mail, Yellow Pages, etc� New Media / Specialty Media� Direct Advertising / Direct Marketing� Internet

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Major Ad Media Categories: ± Print

� Newspapers� Magazines� Out-of -Home

 ± Broadcast� Radio� Television

� Narrow-cast Media ± Outdoor 

 ± Transit  ± Other Media

� Direct Mail, Yellow Pages, etc� New Media / Specialty Media� Direct Advertising / Direct Marketing� Internet

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NEWSPAPER

1. The primary role of newspaper is prompt

delivery & detailed coverage of news and

other information.

2. It incorporates interesting features forreaders

3. Detailed message can be processed at the

readers convenient pace.4. These are high-involvement media.

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NEWSPAPER

Types of Newspaper:-

1. Classified advertising

2. Display advertising

3. Special interest advertising

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Magazines

1. Availability of  wide variety of  magazines make them quite appealing to a large no. of  advertisers.

2. It can cover a wide range & variety of  customers.

3. It can allow detailed presentation with beautiful reproduction & colorful 

photographs.4. It is comparatively more high involvement 

than newspaper.

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Magazines

Types of Magazines:-1. Consumer Magazines

* General interest magazine

* Women / Lifestyle magazines

* Film Magazine*  Special interest magazine

2. Business Publication

*General business

* Professional

*Trade & Industrial

* Institutional publication

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RADIO

1. Radio is used to be a premier mass medium

for audience and advertiser

2. Radio can deliver ad messages to a very large

number of audience at their convenienceacross the length and breadth of our country

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TELEVISION

1. Television is believed to be the mostauthoritative, influential, and exciting of all

medium.

2. It is the most ideal medium for advertisingbecause of its ability to combine visual images,

sound, motion and colour.

3. It provides advertiser most creative &imaginative ad message as compared to any

other medium.

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Outdoor advertising

1. It is the oldest medium existed as early as 5000 years ago in Babylon, Greece and Egypt .

2. Outdoor ad can generate considerable reach and 

frequency levels at a fraction of  cost of  mainstream 

media.3. It can generate immediate brand name recognition 

when introducing anew product and complement 

other forms of  advertising.

4. To remind customers about established and recognized 

brands of  the marketers

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Transit Advertising

1. Transit ad is targeting millions of people whoare exposed to various modes of transport.

2. The rate structure varies depending on the

site, period and size of display.3. A very large part of ambulatory population

exposed to transit advertising

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Budgeting Considerations

in Practice

� What is the Ad objective?

� How much are competitors spending?� How much money is available?

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Advertising Budget

A budget is a forward plan of  any activity expressed in terms of  rupees and budgeting is the process of  this planning.

Requirement of  an advertising budget:-1. Ad budget is the translation of  an advertising plan 

into rupees.

2. This is the important source for management to get 

knowledge regarding ad.3. It serves as a decision-making as well as controlling 

tool for the top management.

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Budgeting Methods

� Percent-of-Sales Budgeting

� Objective-and-Task Method

� Competitive Parity Method

(match competitors method)

� Affordability Method

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Percentage-of-Sales Budgeting

� A company sets a brands advertising

budget by simply establishing the budget as

a fixed percentage of past or anticipatedsales volume

� Criticized as being illogical.

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Objective-and-Task Method

� The most sensible and defendable

advertising budgeting method� Specify what role they expect advertising

to play for a brand and then set the budget

accordingly

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The Competitive Parity Method

� Sets the ad budget by basically following

what competitors are doing

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Affordability Method

� Only the funds that remain after budgeting

for everything else are spent on advertising

� Only the most unsophisticated and

impoverished firms

� However, affordability and competitive

considerations influence the budgeting

decisions of all companies

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Sales Promotion

Sales promotion consists of a diversecollection of incentive tools, mostly short term designed to

stimulate quicker or greater purchase of particular product

or services by consumer or the trade.

Sales promotion is the act of influencingcustomer/consumer perception and behaviour to build

market share and sales that reinforce brand image

Sales promotion is a term that is closely

linked with direct and online marketing, but has itsorigins in FMCG

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Sales Promotion

The main tools falling into this category include:

1. Samples

2. Redeemable coupons

3. Cash-back offers4. Cents-off deals or price packs

5. Premium offers

6. Advertising specialties

7. Patronage rewards

8. Point-of-purchase (POP) promotions

9. Contests and games of chance and skill

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Selecting Sales Promotion

Tools

Sales Promotion Tools

Contests and games

of  skill and chanceSamples

Point-of -

Purchase coupons

Patronage

Rewards

Cash-back

offers

Premiums

Advertising

Specialties

Cents-off  deals

or Price Packs

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Purpose of Sales Promotion1

.Sellers use sales promotions to attract new triers,2. to reward brand-loyal customers and thereby retain

them,

3. to reduce the time between purchases, and even to

turn light users into medium or heavy users.4. The aim might also be to regain past purchasers who

have ceased buying.

New triers of a product category fall into one of 

three groups:non-usersloyal users of another brandbrand switchers

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Developing Sales Promotion

Programs

� The marketer must decide:

 ± The size of the incentive.

 ± Conditions for participation.

 ± Duration of promotion

 ± Selection of proper vehicle to carry the program.

 ± Decide promotion budget

 ± How to evaluate the promotions program throughsurveys and/or experiments etc.

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Personal Selling

� Sales personnel serves as the companys personallink to the customers.

� The people who do the selling go by many names,such as key account managers, account executives,

sales consultants, sales engineers, agents, districtmanagers, and account development reps.

� Salespeople are involved in two-way personalcommunication with customers with whom they

build long term relationships and brings back profitto the organization.

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The Role of the Sales force

� The sales force is a critical link between the company and itscustomers.

� They find and develop new customers and communicateinformation about the companys offerings.

� They sell products, answer objections, negotiate prices andterms and close sales.

� Sales people change their approach by understandingcustomers psychology and produce profit for the company by

satisfying customers.� They should be able to understand sales data, measure market

potential, gather market intelligence and develop marketingstrategies and plans.

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DESIGNING & MANAGING SALESFORCE:

Designing

Sales ForceS.F.

Objective

S.F.

Strategy

S.F.

Structure

S.F.Size

S.F.Compensation

Improving

Sales force

Effectiveness

Recruiting &

Selecting

Sales force

Training

Sales force

Supervising

Sales force

Motivating

Sales force

Evaluating

Sales force

Training in

Selling

Technique

Negotiation

Skill

Relationship

Building

Skill

Managing

Sales Force

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Major steps in effective selling

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PUBLICITY

� Publicity is the deliberate attempt to managethe public's perception of a subject. The subjects

of publicity include people, goods and services,

organizations of all kinds, and works of art orentertainment.

� From a marketing perspective, publicity is one

component of promotion & one element of the

 promotional mix  But the publicist cannot wait aroundfor the news to present opportunities. They must also

try to create their own news.

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About Publicity� Publicity involves supplying information that is factual,

interesting, and newsworthy to media such as radio,television, magazines, newspapers, and trade journals

� Publicity is information from an outside source that is

used by the media because the information has news

value.

� It is an uncontrolled method of placing messages in the

media because the source does not pay the media for

placement.� Publicity is typically generated from an organization's

public relations department and its goal is to gain media

coverage.

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Examples of publicity:

� Art exhibitions

� Event sponsorship

� Arrange a speech or talk

� Make an analysis or prediction

� Conduct a poll or survey� Issue a report

� Take a stand on a controversial subject

� Arrange for a testimonial

� Announce an appointment� Invent then present an award

� Stage a debate

� Issue a commendation

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Importance of Publicity

� The advantages of publicity are low cost, andcredibility (particularly if the publicity is aired in

between news stories like on evening TV news casts).

� Publicity draws on several key themes including

birth, love, marriage and death. These are of  particular interest because they are themes in

human lives which feature heavily throughout life.

� Ethical performance will help a company prevent or

counteract negative publicity and will give a

company, organization, or individual a competitive

edge in achievement of goal.

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� Effective publicity can persuade customers to

buy a product or service, bring more customers

into a store, increase attendance at a special

event, and help clarifying misconceptions.

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Public Relation

� A public is any group that has an actual or

potential interest in or impact on a companys

ability to achieve its objectives.

� Public relation (PR) involves a variety of  

programs designed to promote/protect a

companys image or its individual products.

� The old name of MPR was publicity.

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Activities of PR Department

� Press relation

� Product publicity

� Corporate communication

� Lobbying

� Counseling

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Role of Public Relation

� Assisting in the launch of new product.

� Assisting in repositioning a mature product

� Building interest in a product category� Influencing specific target group

� Defending products that have encountered

public problem� Building the corporate image in a way that

projects favorably on its product.

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Major decisions in PR

� Establishing the marketing objectives

� Choosing the PR messages & vehicles

� Implementing the PR� Evaluating the PR results