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Programme: PGDMM
Semester: IV Marks: 30
a. Explain what you understand by the term - Promotion Mix. Why is it necessary today to
use different media of communication for a campaign? (15)
b. Explain the complete process of Campaign planning and execution. (15)


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It is not enough for a business to have good products sold at attractive prices. To generate
sales and profits, the benefits of products have to be communicated to customers. In
marketing, this is commonly known as "promotion".

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A business' total marketing communications programme is called the "promotional mix" and
consists of a blend of advertising, personal selling, sales promotion and public relations tools.
Below is described the four key elements of the promotional mix in more detail.

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Any paid form of non-personal communication of ideas or products in the "prime media": i.e.
television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is
intended to persuade and to inform. The two basic aspects of advertising are the message
(what you want your communication to say) and the medium (how you get your message
across)

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Oral communication with potential buyers of a product with the intention of making a sale.
The personal selling may focus initially on developing a relationship with the potential buyer,
but will always ultimately end with an attempt to "close the sale".

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Providing incentives to customers or to the distribution channel to stimulate demand for a
product.

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The communication of a product, brand or business by placing information about it in the
media without paying for the time or media space directly, otherwise known as "public
relations" or PR.



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Good for building awareness Impersonal - cannot answer all a
customer's questions
Effective at reaching a wide audience
Not good at getting customers to
Repetition of main brand and product make a final purchasing decision
positioning helps build customer trust
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Highly interactive - lots of Costly - employing a sales force
communication between the buyer and has many hidden costs in addition
seller to wages

Excellent for communicating complex Not suitable if there are thousands


/ detailed product information and of important buyers
features

Relationships can be built up -


important if closing the sale make take
a long time
c   Can stimulate quick increases in sales If used over the long-term,
"  by targeting promotional incentives on customers may get used to the
particular products effect

Good short term tactical tool Too much promotion may damage
the brand image
"  Often seen as more "credible" - since Risk of losing control - cannot
  the message seems to be coming from always control what other people
a third party (e.g. magazine, write or say about your product
newspaper)

Cheap way of reaching many


customers - if the publicity is achieved
through the right media

The Internet has changed the way business is done in the current world. The variables of
segmentation, targeting and positioning are addressed differently. The way new products and
services are marketed have changed even though the aim of business in bringing economic
and social values remain unchanged. Indeed, the bottom line of increasing revenue and profit
are still the same. Marketing has evolved to more of connectedness, due to the new
characteristics brought in by the Internet. Marketing was once seen as a one way, with firms
broadcasting their offerings and value proposition. Now it is seen more and more as a
conversation between marketers and customers. Marketing efforts incorporate the "marketing
mix". Promotion is one element of marketing mix. Promotional activities include advertising
(by using different media), sales promotion (sales and trades promotion), and personal selling
activities. It also includes Internet marketing, sponsorship marketing, direct marketing,
database marketing and public relations. Integration of all these promotional tools, along with
other components of marketing mix, is a way to gain an edge over a competitor.



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An important step to developing a sales and marketing plan is to select the right media to
send out the message. There are no hard-and-fast rules as to which media is better. The right
media for one business may be wrong for another. Hence it is necessary to use different
media for a promotional campaign. Depending on the demographics of the target audience
the media of campaigning should change. The younger generation is more technology savvy,
so the products targeted for them should be advertised on internet, sms, etc. For the older
generation products, the advertisements should follow the traditional path of Newspapers,
magazines, radio, television. The various advantages and disadvantages of these media are
listed below here.

    Newspapers are one of the traditional mediums used by businesses, both big
and small alike, to advertise their businesses.

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ԛ Allows you to reach a huge number of people in a given geographic area


ԛ Aou have the flexibility in deciding the ad size and placement within the newspaper
ԛ Aour ad can be as large as necessary to communicate as much of a story as you care
to tell
ԛ Exposure to your ad is not limited; readers can go back to your message again and
again if so desired.
ԛ Free help in creating and producing ad copy is usually available
ԛ ouick turn-around helps your ad reflect the changing market conditions. The ad you
decide to run today can be in your customers' hands in one to two days.

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ԛ Ad space can be expensive


ԛ Aour ad has to compete against the clutter of other advertisers, including the giants
ads run by supermarkets and department stores as well as the ads of your competitors
ԛ Poor photo reproduction limits creativity
ԛ Newspapers are a price-oriented medium; most ads are for sales
ԛ Expect your ad to have a short shelf life, as newspapers are usually read once and then
discarded.
ԛ Aou may be paying to send your message to a lot of people who will probably never
be in the market to buy from you.
ԛ Newspapers are a highly visible medium, so your competitors can quickly react to
your prices
ԛ With the increasing popularity of the Internet, newspapers face declining readership
and market penetration. A growing number of readers now skip the print version of
the newspaper (and hence the print ads) and instead read the online version of the
publication.


-   Magazines are a more focused, albeit more expensive, alternative to newspaper
advertising. This medium allows you to reach highly targeted audiences.

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ԛ Allows for better targeting of audience, as you can choose magazine publications that
cater to your specific audience or whose editorial content specializes in topics of
interest to your audience.
ԛ High reader involvement means that more attention will be paid to your
advertisement
ԛ Better quality paper permits better color reproduction and full-color ads
ԛ The smaller page (generally 8 ½ by 11 inches) permits even small ads to stand out

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ԛ ong lead times mean that you have to make plans weeks or months in advance
ԛ The slower lead time heightens the risk of your ad getting overtaken by events
ԛ There is limited flexibility in terms of ad placement and format.
ԛ Space and ad layout costs are higher

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  There are several forms of Aellow Pages that you can use to promote and
advertise your business. Aside from the traditional Aellow Pages supplied by phone
companies, you can also check out specialized directories targeted to specific markets (e.g.
Hispanic Aellow Pages, Blacks, etc.); interactive or consumer search databases; Audiotex or
talking yellow pages; Internet directories containing national, local and regional listings; and
other services classified as Aellow Pages.

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ԛ Wide availability, as mostly everyone uses the Aellow Pages


ԛ Non-intrusive
ԛ Action-oriented, as the audience is actually looking for the ads
ԛ Ads are reasonably inexpensive
ԛ Responses are easily tracked and measured
ԛ Frequency

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ԛ Pages can look cluttered, and your ad can easily get lost in the clutter
ԛ Aour ad is placed together with all your competitors
ԛ imited creativity in the ads, given the need to follow a pre-determined format
ԛ Ads slow to reflect market changes

 

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ԛ Radio is a universal medium enjoyed by people at one time or another during the day,
at home, at work, and even in the car.
ԛ The vast array of radio program formats offers to efficiently target your advertising
dollars to narrowly defined segments of consumers most likely to respond to your
offer.
ԛ Gives your business personality through the creation of campaigns using sounds and
voices
ԛ Free creative help is often available



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ԛ Rates can generally be negotiated


ԛ During the past ten years, radio rates have seen less inflation than those for other
media

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ԛ Because radio listeners are spread over many stations, you may have to advertise
simultaneously on several stations to reach your target audience
ԛ isteners cannot go back to your ads to go over important points
ԛ Ads are an interruption in the entertainment. Because of this, a radio ad may require
multiple exposure to break through the listener's "tune-out" factor and ensure message
retention
ԛ Radio is a background medium. Most listeners are doing something else while
listening, which means that your ad has to work hard to get their attention

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ԛ Television permits you to reach large numbers of people on a national or regional


level in a short period of time
ԛ Independent stations and cable offer new opportunities to pinpoint local audiences
ԛ Television being an image-building and visual medium, it offers the ability to convey
your message with sight, sound and motion

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ԛ Message is temporary, and may require multiple exposure for the ad to rise above the
clutter
ԛ Ads on network affiliates are concentrated in local news broadcasts and station
breaks
ԛ Preferred ad times are often sold out far in advance
ԛ imited length of exposure, as most ads are only thirty seconds long or less, which
limits the amount of information you can communicate
ԛ Relatively expensive in terms of creative, production and airtime costs

Direct mail, often called direct marketing or direct response marketing, is a marketing
technique in which the seller sends marketing messages directly to the buyer. Direct
mail includes catalogs or other product literature with ordering opportunities; sales letters;
and sales letters with brochures.

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ԛ Aour advertising message is targeted to those most likely to buy your product or
service.
ԛ Marketing message can be personalized, thus helping increase positive response.
ԛ Aour message can be as long as is necessary to fully tell your story.
ԛ Effectiveness of response to the campaign can be easily measured.
ԛ Aou have total control over the presentation of your advertising message.
ԛ Aour ad campaign is hidden from your competitors until it's too late for them to react



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ԛ Active involvement - the act of opening the mail and reading it -- can be elicited from
the target market.

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ԛ Some people do not like receiving offers in their mail, and throw them immediately
without even opening the mail.
ԛ Resources need to be allocated in the maintenance of lists, as the success of this kind
of promotional campaign depends on the quality of your mailing list.
ԛ ong lead times are required for creative printing and mailing
ԛ Producing direct mail materials entail the expense of using various professionals -
copywriter, artists, photographers, printers, etc.
ԛ Can be expensive, depending on your target market, quality of your list and size of the
campaign.

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 Telephone sales, or telemarketing, is an effective system for introducing a
company to a prospect and setting up appointments.

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ԛ Provides a venue where you can easily interact with the prospect, answering any
questions or concerns they may have about your product or service.
ԛ It's easy to prospect and find the right person to talk to.
ԛ It's cost-effective compared to direct sales.
ԛ Results are highly measurable.
ԛ Aou can get a lot of information across if your script is properly structured.
ԛ If outsourcing, set-up cost is minimal
ԛ Increased efficiency since you can reach many more prospects by phone than you can
with in-person sales calls.
ԛ Great tool to improve relationship and maintain contact with existing customers, as
well as to introduce new products to them
ԛ Makes it easy to expand sales territory as the phone allows you to call local, national
and even global prospects.

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ԛ An increasing number of people have become averse to telemarketing.


ԛ More people are using technology to screen out unwanted callers, particularly
telemarketers
ԛ Government is implementing tougher measures to curb unscrupulous telemarketers
ԛ ots of businesses use telemarketing.
ԛ If hiring an outside firm to do telemarketing, there is lesser control in the process
given that the people doing the calls are not your employees
ԛ May need to hire a professional to prepare a well-crafted and effective script
ԛ It can be extremely expensive, particularly if the telemarketing is outsourced to an
outside firm
ԛ It is most appropriate for high-ticket retail items or professional services.






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The term campaign is used to describe many different systematic efforts to accomplish some
predetermined objective.

When planning a promotional campaign, it generally consists of three desired outcomes:


‰ &Aour promotional message reaches your intended and targeted audience.
‰ ) Aour message is understood by your audience.
‰ * Aour message stimulates the recipients and they take action.

An advertising campaign includes (one + seven) essential steps:


1.› Appraisal of advertising opportunity
2.› Market Analysis and defining target market
3.› Setting advertising objectives
4.› Setting budget and necessary control systems
5.› Determining media and creative strategy
6.› Create ads, pre-test and release ads
7.› Evaluate final results(post-testing)

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The first step is to research and review the current business situation that is relevant to
advertising. The aim is to analyse important current trends affecting the market, competitors¶
share and past moves, consumer behaviour, the company itself and earlier advertising and its
impact, and the important attributes of product or brand and making sense of all this
information and analysis to determine what should be for the future success of the product.

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The marketer must determine whether advertising is suitable in a particular marketing
situation. According to Neil H. Borden, five conditions govern the advertising opportunity. If
these conditions are present, effective advertising may help achieving the marketing
objectives of the company.

a.› Presence of positive primary demand


b.› Good chances of product differentiation
c.› Products have hidden or not readily noticeable qualities
d.› Presence of powerful emotional buying motives
e.› Availability of sufficient funds

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A critical decision is to define the target market for the product or the service. This would
involve finding and precisely defining those variables that indicate who and where the best
prospects are in respect to demographic characteristics, geographical location, psychographic
variables and behavioural patterns. It will also be necessary to find out the accessibility of the
target audiences. Consumer research may be needed to find out: Who buys the product? What
do they really buy? How often do they buy? How do they use the product? What are their
perceptions and attitudes about the brand?






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Promotion or brand manager should set objectives for an advertising campaign and also for
each ad in each medium used. In setting the campaign objectives, most managers use
hierarchy of effects model (eg. AIDA, DAGMAR, avidge and Steiner Model ), so that the
components of a campaign support each other and thereby stand a better chance of creating
positive energy in influencing the consumer choice. The path leads from communication
objectives to sales objectives and advertisers often refer to this sequence awareness
advertising to direct action advertising.
A good ad campaign was that of ³Maggi hot and sweet tomato chilli sauce´. The product
category was not new, a number of tomato ketchup brands were already available. The
campaign objective was to establish the brand as different than other brands in the product
category and create consumer preference for it. They did it very well with ³it¶s different´
campaign.

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The budget controls all proposed expenditures by fixing a limit. This is a critical decision as
it involves large sums of money and in most marketing situations it is difficult to measure
what advertising does to profits or the sales volume.
The advertising budget is basically a plan to allocate financial resources to advertising for
future operations and should be reviewed constantly, keeping in view the changing market
conditions. For example, if two brands are equally preferred, the one that advertises more
acquires the edge. In case coca-cola increases its advertising blitz, then Pepsi cannot simple
sit and watch

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Media planning is quite complex because of the nature of different kind of media. Media plan
determines the best way to reach the audience with the advertiser¶s message. The goal is to
find a particular combination of media that enables the advertiser to communicate the
message most effectively to the largest number of target audience at the lowest cost.
An excellent advertising message is estimated to be ten times or more effective than an
average message in influencing consumer attitudes, preferences and purchase decision for the
product.

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After developing the advertising strategy, the next step is the creative process. The
creative team develops a message strategy and search begins for the big idea. In the ad
biz, µthe big idea¶ is the Holy Grail, the creative solution that in a few words or
images sums up the compelling reason to plop down your hard earned cash for
something you may not have known you even needed.
The message strategy is a brief description and explanation of overall creative
approach of an ad campaign. It is composed of 3 elements:
1.› Verbal Element
2.› Non-Verbal Element
3.› Technical Element

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The various things that make up the creative execution are listed below:

Print advertisement, Headline, Sub-Heads, Body Copy, Slogans or Theme ines and
Tag lines, Seals, ogos and Signatures, Visual Elements, ayout, Using Colour,



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Typography and Copy Testing, Television Commercial, Radio Commercial, Online


Advertisements, Designing website.

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Rising costs of media, thousands of advertising messages competing to get noticed and
audience apathy and dislike of ads makes it essential for the companies to be reasonably sure
that the campaign message is attended to and comprehended. For pre-testing advertising
strategy and execution, various techniques such as market tests, focus groups, surveys and
computer simulation tests etc, are used before the ads are placed in media.

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Post-testing provides either periodic or continuous in market research monitoring a brand¶s
performance including brand awareness, brand preference, product usage and attitudes. Some
post-testing approaches simple track changes over time, while others use various methods to
quantify the specific changes produced by advertising ± either with the campaign as a whole
or by the different media utilised.