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1
   Marketing Communications are the means by
    which firms attempt to inform, persuade, and
    remind consumers-directly or indirectly-
    about the products and brands that they sell.
    In a sense, marketing communications
    represent the “voice” of the brand and are a
    means by which it can establish a dialogue
    and build relationships with the customer.




                                                    2
   Advertising: Any paid form of nonpersonal
    presentation and promotion of ideas, goods, and
    services by an identified sponsor
   Sales promotion: A variety of short-term
    incentives to encourage trial or purchase of a
    product or service
   Events and experiences: Company-sponsored
    activities and programs designed to create daily
    or special brand-related interactions
   Public relations and publicity: A variety of
    programs designed to promote or protect a
    company‟s image or its individual product


                                                       3
   Direct marketing: Use of mail, telephone, fax,
    e-mail, or Internet to communicate directly
    with or solicit response or dialogue from
    specific customers and prospects.

   Personal selling: Face-to-face interaction
    with one or more prospective purchasers for
    the purpose of making presentations,
    answering questions, and procuring orders.



                                                     4
   Macromodel Of The Communication Process
    ◦ Major parties: Sender and receiver
    ◦ Major communication tools: Message and Media
    ◦ Major Communication Functions: Encoding, Decoding,
      Response, Feedback
   Micromodel Of Consumer Responses
    ◦ Response Hierarchy Models
      AIDA Model (Attention-Interest-Desire-Action)
      Hierarchy –Of-Effects Model (Awareness-Knowledge-Liking-
       Preference-Conviction-Purchase)
      Innovation-Adoption Model (Awareness-Interest-Evaluation-
       Trial-Adoption)
      Communications Model (Exposure-Reception-Cognitive
       Response-Attitude-Intention-Behavior)


                                                                   5
   Identify the Target Audience
    ◦ The first step is to measure the target audience‟s
      knowledge of the object, using the familiarity scale:
      Never heard of     Heard Of Only      Know a Little Bit Know
       A Fair Amount      Know Very Well
     Respondents who are familiar with the product can be asked
       how they feel toward it, using the favorability scale:
       Very Unfavorable      Somewhat Unfavorable Indifferent
       Somewhat Favorable Very Favorable
   Determine the Communications Objectives
    ◦ Brand Awareness
    ◦ Brand Attitude
    ◦ Brand Purchase Intention



                                                                      6
   Design the Communications
    ◦ Message Strategy
    ◦ Creative Strategy: Creative Strategies are how marketers
      translate their messages into specific communication
      Informational Appeals: It elaborates on product or service
       attributes or benefits (example: Excedrin stops headache
       pain quickly)
      Transformational Appeals: It elaborates on a non-product
       related benefit or image. It might depict what kind of person
       uses a brand (E.g: VW advertises to active, youthful people
       with their “Drivers Wanted” campaign)
    ◦ Message Source (Expertise, Trustworthiness, Likability)




                                                                       7
   Select the Communications Channels
    ◦ Personal Communications Channels (involves two or
      more persons communicating directly face-to-face,
      person-to-audience, over the telephone, or through
      e-mail.)
    ◦ Nonpersonal Communications Channels are
      communications directed to more than one person
      and include media, sales promotions, events and
      publicity).
    ◦ Integration of Communication Channels




                                                           8
   Establish the Total Marketing
    Communications Budget
    ◦   Affordable Method
    ◦   Percentage-Of-Sales Method
    ◦   Competitive-Parity Method
    ◦   Objective-And Task Method




                                     9
   Deciding on The Marketing Communications
    Mix
    ◦   Advertising
    ◦   Sales Promotion
    ◦   Public Relations and Publicity
    ◦   Events and Experiences
    ◦   Direct Marketing
    ◦   Personal Selling




                                               10
   Factors in Setting the Marketing
    Communications Mix

     Type of Product Market
     Buyer Readiness Stage
     Product Life-Cycle Stage




                                       11
   Measuring Communication Results

   Managing the Integrated Marketing
    Communications Process




                                        12
   In the marketing context, Advertising has
    been defined :
    ◦ „as any paid form of non-personal presentation and
      promotion of ideas, goods or services by an
      identified sponsor.‟
   How does Advertising Persuade the Buyer?
    ◦ Should be of Interest to the Audience
    ◦ The Audience should Interpret the Message in the
      Intended Manner
    ◦ The Advertisement should Influence the Audience



                                                           13
   Theories on Attitude Change
    ◦ The Consistency Theories
      The Consistency theories rest on the basic idea that man
       seeks consistency, balance and harmony in his belief system
    ◦ The Congruity Theory and the Dissonance Theory
      The Congruity theory lays stress on the nature of
       relationship among the elements of the cognitive structure;
       the basic need is for balance, congruity and harmony. The
       dissonance theory also rests on the logic of „cognitive
       balance reasoning‟.
    ◦ The Balance Theory: Any cognitive structure has three
      elements- an individual or a perceiver, another person
      who tries to interact and some object- and that there is
      a definite relationship among them



                                                                     14
   The source or the endorser
    ◦ The credibility of the source
    ◦ Likeability/Attractiveness of the source
    ◦ The source‟s approach to the views and disposition of
      the audience
   The Message
    ◦ The Message structure
      Message sidedness
      Order of Presentation
      Stating conclusion in a message
    ◦ The Message appeal
      Rational appeals : It is generally woven around the
       specialities of the product on offer. The intention is to use
       reason and logic to convince the audience.
      Emotional appeals: They are woven around sensations


                                                                       15
   AIDA- the Four-Stage Model
   Innovation-Adoption Model
    ◦   Awareness
    ◦   Interest
    ◦   Evaluation
    ◦   Trial
    ◦   Adoption
   Six-Stage Model (Lavidge and Steiner)
    ◦   Awareness
    ◦   Knowledge
    ◦   Liking
    ◦   Preference
    ◦   Conviction
    ◦   Purchase
   DAGMAR (Defining Advertising Goals for Measured
    Advertising Results)


                                                      16
   Objectives and Task Approach

   Percentage of Sales Approach

   Competitive Matching Approach

   Arbitrary Approach




                                    17
   Main Steps in Copy Development ( The term
    „copy‟ includes every single feature that
    appears in the body of advertisement. In the
    earlier days,‟copy‟ was used to refer only to
    the written matter. In present times, copy is
    an all-embracing term, covering all that
    appear in an advertisement- the written
    matter, pictures, designs etc
    ◦ The Fact-Finding Stage (What is the central issue to
      be tackled)?
    ◦ The Idea Finding Stage (Interviewing, Synectics etc)

                                                             18
   Developing the Copy: The term „copy‟ has a
    very broad connotation: It refers to every
    single element that appears in an
    advertisement. However the major elements
    of a copy are: the message and the source.
    While developing the copy, it is essential to
    understand the various dimensions relating
    to these two factors.

   Testing the Copy


                                                    19
   Media Commonly Used in Advertising
    ◦ Outdoor Media (Hoardings, Posters, Neon Signs,
      transit advertising, Fairs and exhibitions, etc)
    ◦ The Print Media
    ◦ Direct Mail
    ◦ Audio/Visual/Audio-Visual/Electronic Media
        TV
        Radio
        Cinema
        Cable TV
        The internet
        Cassetes-audio, video and CDs



                                                         20
   Considerations in Media Selection
    ◦ Who are You Trying To Reach?
    ◦ What are your Communication Objectives?

   Media Characteristics
    ◦ Exposure
    ◦ Reach and Frequency
      Reach denotes the total number of persons exposed to the
       given media vehicle at least once during the period under
       reference.
      Frequency denotes the number of times the audience is
       exposed to the media vehicle during this period
    ◦ Weighing Reach and Frequency Against Costs
    ◦ Measuring TV Viewership


                                                                   21
   Impact of the Media
    ◦ Media Class-Source Effect and Media Vehicle-Source
      Effect
   Media Scheduling (Media category, media
    vehicles, programme choice, timing etc)
   Evaluating Advertising Effectiveness
    ◦ Evaluating How Far the Communication Task has been
      Accomplished
    ◦ Evaluating How Far the Sales Task has been
      Accomplished
   Advertiser-Ad Agency Relation
    ◦ The advertising job has become so complex and large
      that normally no business firm chooses to handle the
      function directly. They employ advertising agencies.



                                                             22
   Communication-effect Research: it seeks to
    determine whether an ad is communicating
    effectively
    ◦ Consumer feedback method asks consumers for
      their reactions to a proposed ad.
    ◦ Portfolio test ask consumers to view or listen to a
      portfolio of advertisements.
    ◦ Laboratory tests use equipment to measure
      physiological reactions- heartbeat, blood pressure,
      pupil dilation etc- to an ad; or consumers may be
      asked to turn a knob to indicate their moment-to-
      moment liking or interest while viewing sequenced
      material.

                                                            23
   Sales-Effect research:
    ◦ A company‟s share of advertising expenditures
      produces a share of voice (i.e., proportion of
     company advertising of that product to all
     advertising of that product) that earns a share of
     consumers‟ minds and hearts and, ultimately, a
     share of market.




                                                          24
   Public Relations is one of a firm‟s corporate
    affairs activities. The goal of public relations
    is to track public attitudes, identify issues
    that may elicit public concern, and develop
    programs to create and maintain positive
    relationships between a firm and its
    stakeholders.
   It can be used to promote the firm, its
    people, its ideas, and its image and can even
    create an internal shared understanding
    among employees.


                                                       25
   Public relations involves a variety of programs
    designed to promote or protect a company‟s
    image or its individual products




                                                      26
   Publications: Companies rely extensively on
    published materials to reach and influence
    their target markets. These include annual
    reports,brochures,articles, company
    newsletters and magazines etc
   Events: Companies can draw attention to new
    products or other company activities by
    arranging special events like news
    conferences, seminars, trade shows etc that
    will reach the target publics


                                                  27
   Sponsorships: Companies can promote their
    brand and corporate name by sponsoring
    sports and cultural events and highly
    regarded causes
   News: One of the major tasks of PR
    professionals is to find or create favorable
    news about the company, its products, and
    its people, and get the media to accept press
    releases and attend press conferences.



                                                    28
   Speeches: Increasingly, company executives must
    field questions from the media or give talks at
    trade association or sales meetings, and these
    appearances can build the company‟s image.
   Public- Service Activities: Companies can build
    goodwill by contributing money and time to good
    causes
   Identity Media: Companies need a visual identity
    that the public immediately recognizes. The
    visual identity is carried by company logos,
    stationery, brochures, signs, business cards,
    buildings, uniforms, dress codes, etc.


                                                       29
   “ A sales person is an individual acting for a
    company by performing one or more of the
    following activities: prospecting,
    communicating, servicing, and information
    gathering.” (Philip Kotler)

   Personal selling is the direct personal
    presentation by company sales force for sales
    and building customer relationship.



                                                     30
   Personal selling is paid personal communication
    that attempts to inform customers about
    products and persuade them to purchase those
    products.
   The goal of Personal Selling typically involves
    finding prospects, informing prospects,
    persuading prospects to buy, and keeping
    customers satisfied through follow-up service
    after the sale. To effectively deliver on these
    goals, salespeople have to be not only competent
    in selling skills but also thoroughly trained in
    technical product characteristics.


                                                       31
   It enhances the customer‟s confidence in the
    seller
   It promotes long-term business relations
    through personal intimacy
   It provides a human touch to business
    transactions
   It helps facilitate the seller to understand each
    customer‟s needs and preferences more clearly
   It helps satisfy a customer by modifying the
    product as per the customer‟s choice and
    preference

                                                        32
   Personal selling followed by personal service helps build
    long-term relations between the business and the
    customer
   It helps keep up the competition in the market, based
    on product customization as per customer‟s
    preferences
   It is a powerful and effective tool in convincing the
    customer about the product
   Through personal selling the time lag between
    introducing a product through the media and actual
    selling is reduced
   It provides prospective customers with a better
    understanding of the product and an interactive
    opportunity to liaise with the sales personnel

                                                                33
   Salesmanship is one of the skills used in
    personal selling. It is the art of successfully
    persuading prospects or customers to buy
    products or services from which they can
    derive suitable benefits, thereby increasing
    their total satisfaction. Salesmanship is a
    seller-initiated effort that provides
    prospective buyers with information and
    other benefits, motivating or persuading
    them to decide in favour of the seller‟s
    product or service.


                                                      34
   Know   the Product
   Know   the Company
   Know   the Competition
   Know   the Customers
   Know   the Process Of Selling
   Know   Own Self




                                    35
   Enthusiasm
   Patience
   Initiative
   Self-confidence
   Job commitment
   Customer orientation
   Independence
   Self-motivation
   Excellent listening skill
   Friendliness
   Persistence
   Attentiveness


                                36
   Honesty
   Relationship orientation
   Discipline
   Hardworking nature
   Team spirit




                               37
   According to the AIDAS theory, during the personal
    selling interview, the prospective buyer‟s mind
    passes through the five successive mental stages
    shown below. The buyer goes through these stages
    consciously, so the sales person should lead the
    buyer through them in the right sequence if a sale
    is to result
    ◦   A-Attention
    ◦   I-Interest
    ◦   D-Desire
    ◦   A-Action
    ◦   S-Satisfcation


                                                         38
   Prospecting and Qualifying: Prospecting is the process of identifying
    prospects or potential buyers and eliminating non-prospects. Success in
    selling depends on approaching the right potential buyers. The sales person
    may have to approach many prospects to get just a few sales. The sales
    person should also know how to qualify the leads, i.e., identifying the good
    ones and screening out the unwanted ones. Qualifying the prospects can be
    done by studying their financial background, volume of business, special
    needs, location and scope for growth.
   Pre-approach: The sales person has to do his homework before meeting
    the prospect. He should learn as much as possible about the organization
    and its buyers, as a pre-approach. The salesperson should set call
    objective. Another task is to decide on the best contact approach, which
    might be a personal visit, a phone call, or a letter. Finally, the sales person
    should plan an overall sales strategy for the account.


                                                                                      39
   Approach: The sales person should know hoe to meet and greet the buyer
    appropriately and get the relationship off to a good start. His appearance,
    opening lines of conversation and the follow up remarks are important in
    this step

   Presentation and Demonstration: The sales person presents the product
    to the buyer through the ‘product story’, explaining its attributes, customer
    benefits and how the product could solve the customer’s problems.

   Overcoming Objections: Customers typically pose objections during the
    presentation or when asked for the order. Psychological resistance includes
    resistance to interference, preference for established sources or brands,
    reluctance to giving up something, predetermined ideas, dislike of making
    decisions etc



                                                                                    40
Logical resistance might consist of objections to the price, delivery
  schedule, or certain product or company characteristics.
The sales person should handle objections with a positive approach,
  seek out hidden objections, ask for clarifications, convert the
  objections into opportunities to explain more about the product and
  its benefits, and turn objections into reason for buying.

   Closing: Once the objections are handled properly, the sales person
    tries to persuade the prospect to take the buying decision, i.e.,
    closing the sale. Sales persons should know how to recognize
    closing signals from the buyer, which includes body language,
    comments and questions. The sales person can ask for the order,
    summarise points of agreement, offer to help to write the purchase
    order, ask whether the buyer wants this model or that one, etc


                                                                          41
   Follow –Up and Maintenance: This is necessary if the
    salesperson wants to ensure customer satisfaction and repeat
    business. The sales person should follow up the sales and
    ensure that there is proper installation, instruction on usage
    and servicing arrangements. Such follow up actions would
    reveal any problems, assure the customer of the sales person’s
    interest, and reduce any dissonance that might have arisen in
    the buyer’s mind, after the purchase.




                                                                     42
   According to American Marketing
    Association, Sales promotion can be defined:
    ◦ „ In a specific sense, sales promotion includes those
      sales activities that supplement both personal
      selling and advertising, and coordinate them and
      make them effective, such as displays, shows,
      demonstrations and other non-recurrent selling
      efforts not in the ordinary routine.‟




                                                              43
   According to Philip Kotler, “Sales promotion
    consists of short-term incentives to
    encourage purchase or sales of a product or
    service. Whereas advertising and personal
    selling offer reasons to buy a product or
    service, sales promotion offers reasons to
    buy now.”




                                                   44
   For facilitating introduction of new products
   For overcoming a unique competitive
    situation
   For unloading accumulated inventory
   For overcoming seasonal slumps
   For getting new accounts
   For retrieving lost accounts
   As a support and supplement to the
    advertising effort
   As a support and supplement to the
    salesmen‟s effort

                                                    45
   For persuading salesmen to sell the full line
    of products
   For persuading the dealer to buy more/
    increase the size of the orders




                                                    46
   Sales promotion aimed at consumers is
    termed Consumer Promotion

   Sales promotion in business markets is
    known as Trade Promotion. By targeting
    channel intermediaries with promotional
    activities, manufacturers hope to push their
    products through the channel by increasing
    sales and encouraging increased effort
    among their channel partners.


                                                   47
   A Push Strategy involves the manufacturer
    using its sales force and trade promotion
    money to induce intermediaries to carry,
    promote, and sell the product to end users. A
    Pull Strategy involves the manufacturer using
    advertising and promotion to persuade
    consumers to ask intermediaries for the
    product, thus inducing the intermediaries to
    order it.



                                                    48
   Demonstrations
    ◦   Demonstration at retail store
    ◦   School demonstration
    ◦   Door-to-door demonstration
    ◦   Demonstrations to key people
   Trade Fairs and Exhibitions
   Coupons, Premiums, Free Offers, Price-Offs, etc
    ◦ Coupons are certificates which offer price reductions to
      consumers for specified items.
   Free samples (Free samples are offered to persuade
    consumers to try the product)
   Joint promotion (Two or more firms from different
    industries, but with shared markets and values, join
    together and conduct sales promotion programmes)



                                                                 49
   Contests
   Display
   Gifts ( Companies also distribute gifts to
    customers, dealers and influential and key
    people. These gifts include pen, calendars,
    diaries, table decorations, etc. gifts normally
    carry the company‟s name and logo).
   Sales promotion on the Internet




                                                      50
   Direct marketing is the use of consumer-
    direct channels to reach and deliver goods
    and services to customers without using
    middlemen. These channels include direct
    mail, catalogs, telemarketing, interactive TV,
    kiosks, Web sites, and mobile devices.
   Direct marketing is defined as direct
    communications with carefully targeted
    individual consumers to obtain an immediate
    response and cultivate lasting customer
    relationships.


                                                     51
   Direct marketing requires a sound customer
    database- an organized collection of
    comprehensive data about individual
    customers or prospects, including
    geographic, demographic, psychographic and
    behavioural data. Such database is used to
    locate good potential customers, tailor
    products and devices to the special needs of
    target buyers, and maintain long-term
    customer relationships.


                                                   52
   Direct marketing has different forms like tele-
    marketing, direct mail, catalogue sales, direct-
    response TV marketing, kiosk marketing and
    online marketing. Tele-marketing uses the
    telephone to sell directly to customers. Direct
    mail consists of the company sending an offer
    through mail to buyers at their address.
    Catalogues are sent through mail to buyers in
    catalogue marketing. TV is used as medium in
    direct response TV marketing. Kiosks are
    information and ordering machines placed in
    stores, airports, etc. Online marketing is done
    through the Internet.



                                                       53
   Advantages Of Direct Marketing
    ◦ Focused Approach
    ◦ Cost Effective
    ◦ Measurable and Attributable
    ◦ Immediate and Flexible
    ◦ Ability to Test, Retest and measure the Impact of
      Variables
    ◦ Easy International reach
    ◦ Tailored Messages
    ◦ Opportunity to Build a Database



                                                          54
   Disadvantages Of Direct Marketing
    ◦ Competition to existing Intermediaries
    ◦ Intrusive marketing : Many customers perceive
      direct marketing as an intrusion in their life and
      work. Especially tele-marketing practices are often
      found to be intruding into the life of customers and
      creating irritation among customers.




                                                             55
   Electronic business, commonly referred to as
    "eBusiness" or "e-business", or an internet business,
    may be defined as the application of information and
    communication technologies in support of all the
    activities of business. Commerce constitutes the
    exchange of products and services between
    businesses, groups and individuals and can be seen
    as one of the essential activities of any business.
    Electronic commerce focuses on the use of ICT to
    enable the external activities and relationships of the
    business with individuals, groups and other
    businesses.[
   The term "e-business" was coined by IBM‟s marketing
    and Internet teams in 1996.



                                                              56
   M-commerce (mobile commerce) is the buying
    and selling of goods and services through
    wireless handheld devices such as cellular
    telephone and personal digital assistants (PDAs).
    Known as next-generation e-commerce, m-
    commerce enables users to access the Internet
    without needing to find a place to plug in. The
    emerging technology behind m-commerce,
    which is based on the Wireless Application
    Protocol (WAP), has made far greater strides in
    Europe, where mobile devices equipped with
    Web-ready micro-browsers are much more
    common than in the United States.



                                                        57

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Module 7 mm

  • 1. 1
  • 2. Marketing Communications are the means by which firms attempt to inform, persuade, and remind consumers-directly or indirectly- about the products and brands that they sell. In a sense, marketing communications represent the “voice” of the brand and are a means by which it can establish a dialogue and build relationships with the customer. 2
  • 3. Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, and services by an identified sponsor  Sales promotion: A variety of short-term incentives to encourage trial or purchase of a product or service  Events and experiences: Company-sponsored activities and programs designed to create daily or special brand-related interactions  Public relations and publicity: A variety of programs designed to promote or protect a company‟s image or its individual product 3
  • 4. Direct marketing: Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects.  Personal selling: Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders. 4
  • 5. Macromodel Of The Communication Process ◦ Major parties: Sender and receiver ◦ Major communication tools: Message and Media ◦ Major Communication Functions: Encoding, Decoding, Response, Feedback  Micromodel Of Consumer Responses ◦ Response Hierarchy Models  AIDA Model (Attention-Interest-Desire-Action)  Hierarchy –Of-Effects Model (Awareness-Knowledge-Liking- Preference-Conviction-Purchase)  Innovation-Adoption Model (Awareness-Interest-Evaluation- Trial-Adoption)  Communications Model (Exposure-Reception-Cognitive Response-Attitude-Intention-Behavior) 5
  • 6. Identify the Target Audience ◦ The first step is to measure the target audience‟s knowledge of the object, using the familiarity scale:  Never heard of Heard Of Only Know a Little Bit Know A Fair Amount Know Very Well Respondents who are familiar with the product can be asked how they feel toward it, using the favorability scale: Very Unfavorable Somewhat Unfavorable Indifferent Somewhat Favorable Very Favorable  Determine the Communications Objectives ◦ Brand Awareness ◦ Brand Attitude ◦ Brand Purchase Intention 6
  • 7. Design the Communications ◦ Message Strategy ◦ Creative Strategy: Creative Strategies are how marketers translate their messages into specific communication  Informational Appeals: It elaborates on product or service attributes or benefits (example: Excedrin stops headache pain quickly)  Transformational Appeals: It elaborates on a non-product related benefit or image. It might depict what kind of person uses a brand (E.g: VW advertises to active, youthful people with their “Drivers Wanted” campaign) ◦ Message Source (Expertise, Trustworthiness, Likability) 7
  • 8. Select the Communications Channels ◦ Personal Communications Channels (involves two or more persons communicating directly face-to-face, person-to-audience, over the telephone, or through e-mail.) ◦ Nonpersonal Communications Channels are communications directed to more than one person and include media, sales promotions, events and publicity). ◦ Integration of Communication Channels 8
  • 9. Establish the Total Marketing Communications Budget ◦ Affordable Method ◦ Percentage-Of-Sales Method ◦ Competitive-Parity Method ◦ Objective-And Task Method 9
  • 10. Deciding on The Marketing Communications Mix ◦ Advertising ◦ Sales Promotion ◦ Public Relations and Publicity ◦ Events and Experiences ◦ Direct Marketing ◦ Personal Selling 10
  • 11. Factors in Setting the Marketing Communications Mix  Type of Product Market  Buyer Readiness Stage  Product Life-Cycle Stage 11
  • 12. Measuring Communication Results  Managing the Integrated Marketing Communications Process 12
  • 13. In the marketing context, Advertising has been defined : ◦ „as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.‟  How does Advertising Persuade the Buyer? ◦ Should be of Interest to the Audience ◦ The Audience should Interpret the Message in the Intended Manner ◦ The Advertisement should Influence the Audience 13
  • 14. Theories on Attitude Change ◦ The Consistency Theories  The Consistency theories rest on the basic idea that man seeks consistency, balance and harmony in his belief system ◦ The Congruity Theory and the Dissonance Theory  The Congruity theory lays stress on the nature of relationship among the elements of the cognitive structure; the basic need is for balance, congruity and harmony. The dissonance theory also rests on the logic of „cognitive balance reasoning‟. ◦ The Balance Theory: Any cognitive structure has three elements- an individual or a perceiver, another person who tries to interact and some object- and that there is a definite relationship among them 14
  • 15. The source or the endorser ◦ The credibility of the source ◦ Likeability/Attractiveness of the source ◦ The source‟s approach to the views and disposition of the audience  The Message ◦ The Message structure  Message sidedness  Order of Presentation  Stating conclusion in a message ◦ The Message appeal  Rational appeals : It is generally woven around the specialities of the product on offer. The intention is to use reason and logic to convince the audience.  Emotional appeals: They are woven around sensations 15
  • 16. AIDA- the Four-Stage Model  Innovation-Adoption Model ◦ Awareness ◦ Interest ◦ Evaluation ◦ Trial ◦ Adoption  Six-Stage Model (Lavidge and Steiner) ◦ Awareness ◦ Knowledge ◦ Liking ◦ Preference ◦ Conviction ◦ Purchase  DAGMAR (Defining Advertising Goals for Measured Advertising Results) 16
  • 17. Objectives and Task Approach  Percentage of Sales Approach  Competitive Matching Approach  Arbitrary Approach 17
  • 18. Main Steps in Copy Development ( The term „copy‟ includes every single feature that appears in the body of advertisement. In the earlier days,‟copy‟ was used to refer only to the written matter. In present times, copy is an all-embracing term, covering all that appear in an advertisement- the written matter, pictures, designs etc ◦ The Fact-Finding Stage (What is the central issue to be tackled)? ◦ The Idea Finding Stage (Interviewing, Synectics etc) 18
  • 19. Developing the Copy: The term „copy‟ has a very broad connotation: It refers to every single element that appears in an advertisement. However the major elements of a copy are: the message and the source. While developing the copy, it is essential to understand the various dimensions relating to these two factors.  Testing the Copy 19
  • 20. Media Commonly Used in Advertising ◦ Outdoor Media (Hoardings, Posters, Neon Signs, transit advertising, Fairs and exhibitions, etc) ◦ The Print Media ◦ Direct Mail ◦ Audio/Visual/Audio-Visual/Electronic Media  TV  Radio  Cinema  Cable TV  The internet  Cassetes-audio, video and CDs 20
  • 21. Considerations in Media Selection ◦ Who are You Trying To Reach? ◦ What are your Communication Objectives?  Media Characteristics ◦ Exposure ◦ Reach and Frequency  Reach denotes the total number of persons exposed to the given media vehicle at least once during the period under reference.  Frequency denotes the number of times the audience is exposed to the media vehicle during this period ◦ Weighing Reach and Frequency Against Costs ◦ Measuring TV Viewership 21
  • 22. Impact of the Media ◦ Media Class-Source Effect and Media Vehicle-Source Effect  Media Scheduling (Media category, media vehicles, programme choice, timing etc)  Evaluating Advertising Effectiveness ◦ Evaluating How Far the Communication Task has been Accomplished ◦ Evaluating How Far the Sales Task has been Accomplished  Advertiser-Ad Agency Relation ◦ The advertising job has become so complex and large that normally no business firm chooses to handle the function directly. They employ advertising agencies. 22
  • 23. Communication-effect Research: it seeks to determine whether an ad is communicating effectively ◦ Consumer feedback method asks consumers for their reactions to a proposed ad. ◦ Portfolio test ask consumers to view or listen to a portfolio of advertisements. ◦ Laboratory tests use equipment to measure physiological reactions- heartbeat, blood pressure, pupil dilation etc- to an ad; or consumers may be asked to turn a knob to indicate their moment-to- moment liking or interest while viewing sequenced material. 23
  • 24. Sales-Effect research: ◦ A company‟s share of advertising expenditures produces a share of voice (i.e., proportion of company advertising of that product to all advertising of that product) that earns a share of consumers‟ minds and hearts and, ultimately, a share of market. 24
  • 25. Public Relations is one of a firm‟s corporate affairs activities. The goal of public relations is to track public attitudes, identify issues that may elicit public concern, and develop programs to create and maintain positive relationships between a firm and its stakeholders.  It can be used to promote the firm, its people, its ideas, and its image and can even create an internal shared understanding among employees. 25
  • 26. Public relations involves a variety of programs designed to promote or protect a company‟s image or its individual products 26
  • 27. Publications: Companies rely extensively on published materials to reach and influence their target markets. These include annual reports,brochures,articles, company newsletters and magazines etc  Events: Companies can draw attention to new products or other company activities by arranging special events like news conferences, seminars, trade shows etc that will reach the target publics 27
  • 28. Sponsorships: Companies can promote their brand and corporate name by sponsoring sports and cultural events and highly regarded causes  News: One of the major tasks of PR professionals is to find or create favorable news about the company, its products, and its people, and get the media to accept press releases and attend press conferences. 28
  • 29. Speeches: Increasingly, company executives must field questions from the media or give talks at trade association or sales meetings, and these appearances can build the company‟s image.  Public- Service Activities: Companies can build goodwill by contributing money and time to good causes  Identity Media: Companies need a visual identity that the public immediately recognizes. The visual identity is carried by company logos, stationery, brochures, signs, business cards, buildings, uniforms, dress codes, etc. 29
  • 30. “ A sales person is an individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering.” (Philip Kotler)  Personal selling is the direct personal presentation by company sales force for sales and building customer relationship. 30
  • 31. Personal selling is paid personal communication that attempts to inform customers about products and persuade them to purchase those products.  The goal of Personal Selling typically involves finding prospects, informing prospects, persuading prospects to buy, and keeping customers satisfied through follow-up service after the sale. To effectively deliver on these goals, salespeople have to be not only competent in selling skills but also thoroughly trained in technical product characteristics. 31
  • 32. It enhances the customer‟s confidence in the seller  It promotes long-term business relations through personal intimacy  It provides a human touch to business transactions  It helps facilitate the seller to understand each customer‟s needs and preferences more clearly  It helps satisfy a customer by modifying the product as per the customer‟s choice and preference 32
  • 33. Personal selling followed by personal service helps build long-term relations between the business and the customer  It helps keep up the competition in the market, based on product customization as per customer‟s preferences  It is a powerful and effective tool in convincing the customer about the product  Through personal selling the time lag between introducing a product through the media and actual selling is reduced  It provides prospective customers with a better understanding of the product and an interactive opportunity to liaise with the sales personnel 33
  • 34. Salesmanship is one of the skills used in personal selling. It is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction. Salesmanship is a seller-initiated effort that provides prospective buyers with information and other benefits, motivating or persuading them to decide in favour of the seller‟s product or service. 34
  • 35. Know the Product  Know the Company  Know the Competition  Know the Customers  Know the Process Of Selling  Know Own Self 35
  • 36. Enthusiasm  Patience  Initiative  Self-confidence  Job commitment  Customer orientation  Independence  Self-motivation  Excellent listening skill  Friendliness  Persistence  Attentiveness 36
  • 37. Honesty  Relationship orientation  Discipline  Hardworking nature  Team spirit 37
  • 38. According to the AIDAS theory, during the personal selling interview, the prospective buyer‟s mind passes through the five successive mental stages shown below. The buyer goes through these stages consciously, so the sales person should lead the buyer through them in the right sequence if a sale is to result ◦ A-Attention ◦ I-Interest ◦ D-Desire ◦ A-Action ◦ S-Satisfcation 38
  • 39. Prospecting and Qualifying: Prospecting is the process of identifying prospects or potential buyers and eliminating non-prospects. Success in selling depends on approaching the right potential buyers. The sales person may have to approach many prospects to get just a few sales. The sales person should also know how to qualify the leads, i.e., identifying the good ones and screening out the unwanted ones. Qualifying the prospects can be done by studying their financial background, volume of business, special needs, location and scope for growth.  Pre-approach: The sales person has to do his homework before meeting the prospect. He should learn as much as possible about the organization and its buyers, as a pre-approach. The salesperson should set call objective. Another task is to decide on the best contact approach, which might be a personal visit, a phone call, or a letter. Finally, the sales person should plan an overall sales strategy for the account. 39
  • 40. Approach: The sales person should know hoe to meet and greet the buyer appropriately and get the relationship off to a good start. His appearance, opening lines of conversation and the follow up remarks are important in this step  Presentation and Demonstration: The sales person presents the product to the buyer through the ‘product story’, explaining its attributes, customer benefits and how the product could solve the customer’s problems.  Overcoming Objections: Customers typically pose objections during the presentation or when asked for the order. Psychological resistance includes resistance to interference, preference for established sources or brands, reluctance to giving up something, predetermined ideas, dislike of making decisions etc 40
  • 41. Logical resistance might consist of objections to the price, delivery schedule, or certain product or company characteristics. The sales person should handle objections with a positive approach, seek out hidden objections, ask for clarifications, convert the objections into opportunities to explain more about the product and its benefits, and turn objections into reason for buying.  Closing: Once the objections are handled properly, the sales person tries to persuade the prospect to take the buying decision, i.e., closing the sale. Sales persons should know how to recognize closing signals from the buyer, which includes body language, comments and questions. The sales person can ask for the order, summarise points of agreement, offer to help to write the purchase order, ask whether the buyer wants this model or that one, etc 41
  • 42. Follow –Up and Maintenance: This is necessary if the salesperson wants to ensure customer satisfaction and repeat business. The sales person should follow up the sales and ensure that there is proper installation, instruction on usage and servicing arrangements. Such follow up actions would reveal any problems, assure the customer of the sales person’s interest, and reduce any dissonance that might have arisen in the buyer’s mind, after the purchase. 42
  • 43. According to American Marketing Association, Sales promotion can be defined: ◦ „ In a specific sense, sales promotion includes those sales activities that supplement both personal selling and advertising, and coordinate them and make them effective, such as displays, shows, demonstrations and other non-recurrent selling efforts not in the ordinary routine.‟ 43
  • 44. According to Philip Kotler, “Sales promotion consists of short-term incentives to encourage purchase or sales of a product or service. Whereas advertising and personal selling offer reasons to buy a product or service, sales promotion offers reasons to buy now.” 44
  • 45. For facilitating introduction of new products  For overcoming a unique competitive situation  For unloading accumulated inventory  For overcoming seasonal slumps  For getting new accounts  For retrieving lost accounts  As a support and supplement to the advertising effort  As a support and supplement to the salesmen‟s effort 45
  • 46. For persuading salesmen to sell the full line of products  For persuading the dealer to buy more/ increase the size of the orders 46
  • 47. Sales promotion aimed at consumers is termed Consumer Promotion  Sales promotion in business markets is known as Trade Promotion. By targeting channel intermediaries with promotional activities, manufacturers hope to push their products through the channel by increasing sales and encouraging increased effort among their channel partners. 47
  • 48. A Push Strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users. A Pull Strategy involves the manufacturer using advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it. 48
  • 49. Demonstrations ◦ Demonstration at retail store ◦ School demonstration ◦ Door-to-door demonstration ◦ Demonstrations to key people  Trade Fairs and Exhibitions  Coupons, Premiums, Free Offers, Price-Offs, etc ◦ Coupons are certificates which offer price reductions to consumers for specified items.  Free samples (Free samples are offered to persuade consumers to try the product)  Joint promotion (Two or more firms from different industries, but with shared markets and values, join together and conduct sales promotion programmes) 49
  • 50. Contests  Display  Gifts ( Companies also distribute gifts to customers, dealers and influential and key people. These gifts include pen, calendars, diaries, table decorations, etc. gifts normally carry the company‟s name and logo).  Sales promotion on the Internet 50
  • 51. Direct marketing is the use of consumer- direct channels to reach and deliver goods and services to customers without using middlemen. These channels include direct mail, catalogs, telemarketing, interactive TV, kiosks, Web sites, and mobile devices.  Direct marketing is defined as direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships. 51
  • 52. Direct marketing requires a sound customer database- an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic and behavioural data. Such database is used to locate good potential customers, tailor products and devices to the special needs of target buyers, and maintain long-term customer relationships. 52
  • 53. Direct marketing has different forms like tele- marketing, direct mail, catalogue sales, direct- response TV marketing, kiosk marketing and online marketing. Tele-marketing uses the telephone to sell directly to customers. Direct mail consists of the company sending an offer through mail to buyers at their address. Catalogues are sent through mail to buyers in catalogue marketing. TV is used as medium in direct response TV marketing. Kiosks are information and ordering machines placed in stores, airports, etc. Online marketing is done through the Internet. 53
  • 54. Advantages Of Direct Marketing ◦ Focused Approach ◦ Cost Effective ◦ Measurable and Attributable ◦ Immediate and Flexible ◦ Ability to Test, Retest and measure the Impact of Variables ◦ Easy International reach ◦ Tailored Messages ◦ Opportunity to Build a Database 54
  • 55. Disadvantages Of Direct Marketing ◦ Competition to existing Intermediaries ◦ Intrusive marketing : Many customers perceive direct marketing as an intrusion in their life and work. Especially tele-marketing practices are often found to be intruding into the life of customers and creating irritation among customers. 55
  • 56. Electronic business, commonly referred to as "eBusiness" or "e-business", or an internet business, may be defined as the application of information and communication technologies in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses.[  The term "e-business" was coined by IBM‟s marketing and Internet teams in 1996. 56
  • 57. M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next-generation e-commerce, m- commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commerce, which is based on the Wireless Application Protocol (WAP), has made far greater strides in Europe, where mobile devices equipped with Web-ready micro-browsers are much more common than in the United States. 57