Professional Documents
Culture Documents
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Marketing Plans
Production
Distribution (Place) Promotion
Pricing Planning
m e Promotion Mix
Personal
Advertising Selling
Publicity/
Direct Public
Marketing
marget Audience Relations
Sales
Interactive/ Promotion
Internet
Marketing
Advertising
originates from t e Latin Word Ëad vertere· w ic means Ëto
turn t e mind towards·
mImage Advertising
mEvent sponsors ip
mAdvocacy advertising
mCause-related advertising
Objectives of Corporate Advertising
m Create a positive image for t e firm
m Communicate t e organization·s viewpoint on various issues
m Boost employee morale
m Smoot labor relations
m Help newly deregulated industries
m Help diversified companies establis an identity
C evron Engages in Image Advertising
Event Sponsors ip
Event Sponsors ip is a form of marketing communications
w ereby an organization becomes involved wit a particular
event by developing sponsors ip relations.
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Public Relations Management Process
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Advertising Regulation
Legal, Moral and Et ical Aspects of
Advertising
Federal mrade Commission (US)
Promotional practices of t e mobacco and Alco ol Industry
Healt Claims in t e food Industry
C ildren·s Advertising D moy Industry ² ´Dial A Santaµ
Advertising to t e Elderly D Healt Safety, Financial Security
Environment
´Starbucks Yanks Ad
9/11µ
(P ilip Morris,1969)
Responses
Informed c oice v. disinformation
mobacco promotion
maxation
Smoking in public and workplaces
Smoking cessation support
Reduce armfulness of t e product
Warning...
Realms of Realms of
Understanding Understanding
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Noise Noise
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Linear Model
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1. Source D Individual/Organization sending t e message
2. Encoding D transferring intended message to symbolic style
t at can be transmitted
3. Signal D transmission t roug particular media
4. Decoding D understanding and interpreting t e symbolic
style
5. Receiver D Individual/org receiving t e message
6. Feedback D Receivers Communication Back to source
7. Noise D distortion of t e communication message
Realms of Understanding
m e concept ¶realms of understanding· is an important element
in t e concept of communication process because it
recognizes t at successful communications are more likely to
be ac ieved if t e source and t e receiver understand eac
ot er. m is understanding concerns attitudes, perceptions,
be aviour, and experience.
m e Ot er Forms/Role Players
One Step
mwo Step
Multi Step
Word of Mout
Opinion Leaders
Opinion Formers
Opinion Followers
Process of Adoption
New Product Adoption m eory
ADOPmION PROCESS
- m e consumer decision stages t at lead to innovation
acceptance/rejection
- A micro process process t at focuses on
internal forces of t e consumer
* Intra Personal (Psyc ) Influences
* Inter Personal (Social) Influences
* Product Selection Criteria
Process of Adoption
Prior Conditions
Needs/Problems
Communication C annels
Rogers 1983
Example
Knowledge ² Ra ul cleans is teet , begins to notice
sensitivity
Persuasion ² Notices t at ¶Special Paste· claim t ey reduce
sensitivity. Friend also confirms
Decision ² Prepared to believe. Given free sample ( or
special price deal)
Implementation ² Buys and tests it
Confirmation ² Improves. Reads article t at w ets it.
Continues to buy it
An Example
Reliance India Mobile
Category Need D Knowledge/Persuasion
Awareness
Brand Awareness D Decision
Implementation
Brand Facilitation/Purc ase Intention
Web Worlds
501 Sc eme
Free malk
Process of Diffusion
New Product Diffusion m eory
- t e spread of an innovation from its source to t e ultimate
consumer.
Early Majority
Early Adopters Late Majority
Laggards
Innovators
2.5% 13.5% 34% 34% 16% 2.5% 13.5% 34% 34% 16%
mime
Process of Diffusion
Innovators D Like new ideas ave large disposable incomes
Early Adopters D Large opinion leaders, important in
speeding diffusion, younger and educated. Consult people.
Imp to Mktg Comms. As t ey speed process.
Early Majority D Usually opinion followers, average age,
education, social status and income.
Late Majority D Skeptical of new ideas, adopt because of
social and economic factors
Laggards D Suspicious of all new ideas. Lowest on rung.
Speed of Diffusion
is influenced by«
* Competitive Intensity
* Good Supplier Reputation
* Standardization of mec nology
* ertical C annel Coordination
* Resource Commitments
Categories
Nonadopters
² Refuse to c ange
*,
Life-Style C aracteristics of Innovators &
Non innovators
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Product Interest MORE LESS
Opinion Leaders ip MORE LESS
PersonalityD
Dogmatism OPEN-MINDED CLOSE-MINDED
Social C aracter INNER-DIRECm OmHER-DIRECm
Category Widt BROAD NARROW
enturesome ness MORE LESS
Perceived Risk LESS MORE
Life-Style C aracteristics of Innovators &
Non-innovators
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Purc ase and Consumption mraitsD
Brand Loyalty LESS MORE
Deal Proneness MORE LESS
Usage MORE LESS
Media HabitsD
Magazine Exposure MORE LESS
melevision LESS MORE
Specialized Magazine MORE LESS
Life-Style C aracteristics of Innovators and
Non-innovators
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Demograp ic C aracteristicsD
Age YOUNGER OLDER
Income MORE LESS
Education MORE LESS
Occupational Status MORE LESS
Social C aracteristicsD
Social Integration MORE LESS
Group Members MORE LESS
Some merminology
RELAmIE ADANmAGE - is an en anced bundle of benefits or
clear-cut advantages over existing offerings
COMPAmIBILImY ² is acceptance wit existing abits, values
and consumption be avior, similar usage as existing products
mRIAL ABILImY is t e experience or see t e newness
Easily tested, Low risk, Inexpensive, No special equipment
Free samples or coupons
OBSERABILImY - is t e opportunity for buyers to see t e
newness
COMPLEXImY - is a disadvantage for new products w ic slows
diffusion and may be offset by simplifying usage or t roug
extensive education
W y Some New Products Fail and
Ot ers Succeed
Situational
Culture Social Class
Influences
Communication
Groups
Situations
Cognitive Dissonance
Is a state w ere after any decision as been made a buyer
mig t feel tension about is/ er past decision because t e
product fails to reac expectations or t e consumer becomes
aware of a superior alternative
Market Capitalisation
N T , 5%
100%
80% Non-
Tangible,
60% 75%
Book Value,
95%
40%
0%
1980s 1999
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Art ur Anderson·s report on Fortune 500 companiesD
m e | of a Company
is increasingly being determined by its
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only to t ose Companies
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1. Own or Influence t e Environment
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W en ? Against W om ?
WHY ?
W at is t e specific consumer benefit do we bring to
t e consumer ?
Sony brings innovation
Nokia connects people
Intel brings swiftness,fast processes
P ilips makes t ings better
FOR WHOM ?
m is indicates t e marget Audience
Kissan s Maggi
Colgate s Pepsodent
Clinic s Head & S oulders
BRAND POSImIONING
Positioning is important as it reminds us t at it is
meaningless unless positioned in t e consumers
mind versus competition
But Positioning is more a reflection of a product,
and does not exploit its full potentialities
m us t e need for
A Brand Identity
BRAND IDENmImY
mo become a power brand & remain so, a brand as
a duty to be fait ful to its identity.
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Idealism Durability
Fickleness Co erence
Opportunism Realism
mHE BRAND IDENmImY PRISM
(mOOL)
P ysique Personality
Relations ip Culture
Young Minded,
Self En ancement
Autonomous
SOURCES OF IDENmImY
m e Products (Benetton - colour)
Power of Name (Apple - Computers)
Brand C aracters & Symbols (Gattu, Amul Girl)
mrademark and Logos (Mercedes Emblem)
Geograp ical/Historical Roots (Swissair)
Advertising D Content & Form (Marlboro Man)
India Kings
An Example
mHE BRAND IDENmImY PRISM
(mOOL)
P ysique Personality
Relations ip Culture
Attributes - w at t e Brand as
Benefits - w at t e consumers want
Motivation - is w at consumers want t e benefit for
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AN EXAMPLE
W ic is t e rig t answer ?
A great Agency delivers bot but be ind every
successful execution lies a
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Examples ??
m e importance of
Strategic Planing
WHY SmRAmEGIC PLANNING
?
Client wants Creativity
² Creativity t at sells, adds value to t eir brand and
even more to t eir bottom line
Consumers are Experts
² Not empty vessels, knowledgeable, know w en
t ey are patronized, bored or uninvolved
² Reject advertising t at does not appeal
ADERmISING SmAmISmICS
76 get noticed
12 remembered
Can be based in
È Benefit
È Reason to believe
È Emotional alue
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AXE
Insig t D ã
Discriminator D
Advertising Idea ,% ,ã
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Executional Idea ,-.
BRAND EXPERIENCE