Professional Documents
Culture Documents
2. Personal selling
Personal selling is the second most common method to communicate the benefits of your
products to the end customer and convert him from a lead to a prospect and ultimately to your
customer. This is the reason that many top companies and even small businesses nowadays are
focused on personal selling.
If you enter a branded retail outlet, you will many times find that the company promoter is
already present in the retail outlet. The reason that the company appoints their own brand
promoter is because this ensures that the customer will have better attention from their individual
brand. Along with this, the company’s salesman will also have more knowledge of product and
competition as he has been dedicatedly hired by the brand.
If instead of a brand promoter, there was the retailers’ own salesman, he would have promoted
any brand on the shelf. At the same time, the retailers’ salesman might not be as knowledgeable
as the brand salesman because he has so many brands and products to sell. He gets overloaded
and ultimately forgets the features of products he is selling. So, if a company wants to
communicate the benefits of its products, convince and convert the customer, then personal
selling with hand picked and trained executives is the best option.
3. Sales promotion
There are many different ways of running sales promotions and many different tips and tactics
present depending on the sector you are in. Where trade discounts and freebies work very well in
FMCG, in consumer durables, free services and value addition (free installation) works better
then discounts.
Sales promotion also involves providing the consumer with an incentive for the purchase of the
product. At the same time, it may involve giving incentives to dealers or distributors to get the
product selling & moving in the market. The expenses in Sales promotion is lower and the
investment is very less because it gets the product moving.
Sales promotions is increasingly being used as a tool especially after the rising popularity of E-
commerce and online sales. Every other day you will see a “Sale” or “Deal” online which will be
time bound and which customers will impulsively purchase. Due to some discount being given
for certain amount of time, online retailers can move huge quantities of products across the
country or the region they are selling in.
4. Public relations
Public relation is the art of spreading the news about your products or services in the public
domain so that some hype is created and people talk to each other about it. One of the most
commonly observed public relations exercise is when there is some news related to a Movie or
related to a product which is published in the newspapers just before the movie is supposed to be
released or the product is supposed to be launched.
Similarly, there are multiple public relation exercises which can be carried out by a brand. In
today’s date, social media is one of the biggest platforms for public relations exercise. You will
see a lot of news being published with regards to what is trending. Similarly, press conferences,
face to face interaction with consumers, newspaper advertorials, involving the community are
various ways that public relations exercises can be implemented.
Public relation is an important part of the communications mix. It helps in building a strong
brand image and a brand can slowly release the information therefore keeping the public
attention intact. In fact, if you notice, information about a movie which is going to be big starts
coming in newspapers much before the movie launch date is announced.
This is nothing else but Public relations wherein the marketing manager wants the public to be
hooked to whats about to happen in the movie. They want to create a hype. Off course, some
movies (like the latest star wars franchise) would rather hide their details then show it to public.
5. Direct marketing / Internet marketing
In the last few years, Digital marketing was giving tough competition to television advertising as
well as newspaper advertising. As of end quarter of 2016, digital marketing has practically
overtaken Television advertising and has a major spend amongst all media.
Off course, the benefit of digital advertising is that even small businesses can get involved and it
is not as costly as Television advertising. As a result, the overall revenue generated from digital
advertising is much more then television or newspaper. But even then, not only small businesses,
even top brands take part in digital marketing because it helps the brand in reaching the end
consumer.
The key attraction of digital marketing is the personal connect that the brand makes with the
consumer. Your email box, your facebook wall, your twitter feeds are your private space and via
social marketing, brands can enter this private space and make a connection. The brand which
really does good campaigns can actually walk away with a large population of digital followers.
6. Packaging
Although packaging is supposed to be a part of the marketing mix and not the communications
mix, lately, due to competition and the increasing rivalry between businesses, even packaging is
considered as an important medium of communicating with your consumers.
The packaging of the product is the last point of sales for the company. When the consumer is
standing in a retail aisle, he or she has a plethora of products in front of them to choose from.
Many a times, the decision is made looking at the overall packaging of the product as well as the
information written on the product.
If a customer wants an aloe-vera shampoo, he might look at the packaging and decide against an
Anti dandruff shampoo. However, if the packaging is poor, and the distinguishing feature is not
mentioned clearly, the consumer might ignore the product altogether. As a result, BECAUSE
even packaging communicates to the consumer, it is now considered as an element of the
communications mix.
5 M's of Advertising
The 5 M's of advertising are as follows:
1. Mission
2. Money
3. Message
4. Media
5. Measurement
1. Mission:
Advertising Objectives can be classified as to whether their aim is:
• To inform: This aim of Advertising is generally true during the pioneering stage of a product
category, where the objective is building a primary demand.
• To persuade: Most advertisements are made with the aim of persuasion. Such advertisements
aim at building selective brand.
• To remind: Such advertisements are highly effective in the maturity stage of the product. The
aim is to keep the consumer thinking about the product.
2. Money:
This M deals with deciding on the Advertising Budget
The advertising budget can be allocated based on:
• Departments or product groups
• The calendar
• Media used
• Specific geographic market areas
There are five specific factors to be considered when setting the Advertising budget.
i. Stage in PLC: New products typically receive large advertising budgets to build awareness
and to gain consumer trial. Established brands are usually supported with lower advertising
budgets as a ratio to sales.
ii. Market Share and Consumer base: high-market-share brands usually require less
advertising expenditure as a percentage of sales to maintain their share. To build share by
increasing market size requires larger advertising expenditures. Additionally, on a cost-per-
impressions basis, it is less expensive to reach consumers of a widely used brand them to reach
consumers of low-share brands.
iii. Competition and clutter: In a market with a large number of competitors and high
advertising spending, a brand must advertise more heavily to be heard above the noise in the
market. Even simple clutter from advertisements not directly competitive to the brand creates the
need for heavier advertising.
iv. Advertising frequency: the number of repetitions needed to put across the brands message to
consumers has an important impact on the advertising budget.
Product substitutability: brands in the commodity class (example cigarettes, beer, soft drinks)
require heavy advertising to establish a different image. Advertising is also important when a
brand can offer unique physical benefits or features.
3. Message:
Message generation can be done in the following ways:
A. Inductive: By talking to consumers, dealers, experts and competitors. Consumers are the
major source of good ideas. Their feeling about the product, its strengths, and weaknesses gives
enough information that could aid the Message generation process.
B. Deductive: John C. Meloney proposed a framework for generating Advertising Messages.
According to him, a buyer expects four types of rewards from a product:
• Rational
• Sensory
• Social
• Ego Satisfaction.
4. Media:
The next M to be considered while making an Advertisement Program is the Media through
which to communicate the Message generated during the previous stage. The steps to be
considered are:
5. Measurement:
Evaluating the effectiveness of the Advertisement Program is very important as it helps prevent
further wastage of money and helps make corrections that are important for further
advertisement campaigns. Researching the effectiveness of the advertisement is the most used
method of evaluating the effectiveness of the Advertisement Program. Research can be in the
form of:
i. Communication-Effect Research
ii. Sales-Effect Research
Message evaluation and selection of a good advertisement normally focuses on one core selling
proposition, messages should be rated on desirability, exclusiveness, and believability. Message
execution can be decisive for highly similar products, such as detergents, cigarettes, coffee, and
soft drinks. Advertising does not overstep social and legal norms.
Copy writing is the next step of advertisement programme it is a specialized form of
communicating ideas that are meant to serve the requirements of modern marketing. It helps in
establishing link between advertising and their prospects. It may also use to promote the
acceptance of idea and utilized words to convey message having commercial information.
The term copy includes every single feature that appear in the body of advertisement, copy – is
an all-embracing term covering all that appears in an advertisement the written matter, pictures,
labels and design. Developing copy is a creative process copy development is mostly done by
professional advertising agencies.
AIDA:
In 1898 St. Elmo Lewis presented a model which attempted to explain how personal selling
works. The model, AIDA, laid out a set of stair-step stages which described the process a
salesperson must lead a potential customer through in order to achieve a sale. The stages,
Attention, Interest, Desire, and Action, form a linear hierarchy.
Simply put, in order to be motivated to actually make a purchase, customers must 1) be aware of
a product’s existence, 2) be interested enough to pay attention to the product’s features/benefits,
3) have a desire to benefit from the product’s offerings. Lewis believed that the fourth stage,
Action, would come as a natural result of movement through the first three stages; i.e., desire
leads to action.
It is important to note that Lewis was primarily interested in creating a practical framework to be
applied within the context of personal sales. Although his ideas are fundamental to the later
emerging field of consumer behavior research, his work was, for the most part, dedicated to the
singular goal of helping salespeople understand his approach to salesmanship. Nevertheless, with
few exceptions, the AIDA model, and similar, derivative models were widely adopted by
advertising theorists for the next sixty years.
In 1913, Walter Dill Scott, a psychologist at Northwestern University who wrote widely on
advertising, developed a model that he called “attention-comprehension-understanding”, which
was based on then current theories of sensory perception and motivation. AIDA name was first
proposed by E К Strong in 1925. This model is popular because it helps marketers appeal to
consumers’ emotional and social needs. It is far from foolproof, but advertisements designed
according to its principles can be highly effective.
It is generally agreed, by marketers at least, that in order to be successful, a company must learn
to understand the wants and needs of its consumers and their motivation and decision-making
processes. Surveys and other field work can usually give a fairly clear picture of wants and needs
as static concepts. We know, for instance, probably without being told, that people want and
need cars.
The problem comes when attempting to understand how, when, where and why people choose to
buy cars, and what cars of the many on offer they choose to buy. Here, survey work is of only
limited use; what people say in answer to a questionnaire and what they actually do at a different
time and place are often quite different.
To marketers, the human brain is a black box. Until an effective technology for reading minds is
developed, they can only understand consumer motivation and decision-making in a very general
way. To do this, they use a number of models, based usually on concepts from psychology,
which purport to show how people reach decisions.
One of the most important of these is AIDA (awareness, interest, desire, action), which suggests
that when considering making purchases, human thought processes go through four stages. The
model is commonly used in designing advertising and promotions, and advertisers try to develop
material that stimulates as many stages as possible in response to a single advertisement.
The AIDA model is fairly simple, which partly explains its longevity and widespread use. It
identifies 4 objectives that an advertisement should consider in order to be effective:
i. Attract Attention
ii. Secure Interest
iii. Build Desire for the product and finally
iv. Obtain Action
Attention (A):
Consumers need to be aware that the product exists, what it is, what it does, and perhaps also
where and when it is available before they will make a purchase decision. But in reality, all the
media are full of advertisements from so many other products for which it becomes difficult for
the prospective customers to identify the product distinctly from other ones.
This phenomenon is called clutter. Now, a good advertisement should be able to break this
clutter by creating attention in various methods. The greater effectiveness in attention generation
lies in hitting the right target audience in conjunction with their predominant communication
needs.
For this, the various receiver types like credent, apathetic, critical, sophisticated, hostile etc. need
to be understood and tackled. In order to overcome receiver apathy and forgetfulness,
advertisements incorporate different techniques, which generate emotional reactions on the part
of customer thus making the advertisements register in customers’ mind.
1. Shock – startle, shake or surprise the audience.
2. Suspense – keeping them guessing
3. Humour – in language or situation to overcome apathy.
4. Novelty – something new or innovative or creative.
5. Familiarity – keeping audience interest through something known.
6. An inside story – something to do with behind the scene activities.
The layout in case of print and outdoors and storyboard in case of audio-visual advertisement is
the most important factor that directs attention to an advertisement. Typography, colours,
graphics used in the layout or the jingle, script and delivery in case of audio-visual ad can attract
a person easily. The size of the print and outdoors or duration of audio-visual advertisement also
compels to get attracted to it. The examples are:
i. Contrast by white space in print ad
ii. Usage of attractive font
iii. Wrong spelling like “muzic” instead of music
iv. Use of ‘combo’ word like “Youngistan” used in Pepsi ad
v. Physical movement of scrolling neon signage
vi. The position of the advertisement in front page either in right bottom place (called “solus”) or
at the corners of masthead (called “ear panels”)
vii. The placement of ad in between two over’s of a vital cricket match
viii. Use of celebrities in the advertisement
Interest (I):
Next, consumers need to be stimulated to take some interest in the product. The obvious
questions that a customer asks are:
i. What special features does the product have?
ii. What benefits does it offer to me?
iii. How much will it satisfy a variety of needs and wants that my family members and I might
have?
During this stage the consumer starts developing a reaction to the product, usually either
favourable or unfavorable. But advertisement being seen, heard or read does not mean that the
advertisement was comprehended in a manner as desired by the advertisers. Mostly people see or
read the illustrations, but do not observe or listen. In such case cases, the generated attention is
not effective enough for the advertisers. Hence, the advertisements must provoke further
comprehension and create an interest for the product being advertised.
Desire (D):
If the response is favourable and the advertisement is successful in awakening interest, it then
attempts to create in the consumer’s mind a desire to purchase. It does this by successfully
connecting the benefits of the product with the consumer’s needs and wants. This is often the
most difficult aspect of advertising design; it is one thing to portray a product in an attractive
manner that stimulates interest in consumers, it is quite another to persuade them that they
actually need it.
Most of us find Mercedes as interesting in that they are attractive, well-engineered cars; rather
fewer of us actively desire to own one (if only because we know we can’t afford it). So this
phase of advertising has to both show consumers that there is a product available which will
satisfy their needs and show them that they can satisfy that need by purchasing the product in
question.
Since the basic purpose of advertising is to create a desire for the product or service being
advertised, it must involve appeals required to motivate people. For this the ad makers must be
aware of buying motives, physiological as well as psychological, of the target customers. The
copy of the advertisement must kindle these motives.
The ads must also overcome certain barriers, which exist as certain reservations in the mind of
customers regarding price, quality, service etc. The ads have to convince customers by giving
evidence, testimonials, endorsements, and facts and figures so that customers’ motives get
aroused and they become prone to buy the product.
Action (A):
This leads to final stage of action where consumers actively seek the product and buy it.
1. Products are associated with company.
2. The message is repeated.
3. Certain immediate action appeals are used.
Regarding AIDA model, we must remember that it is not foolproof and the advertisements
designed in accordance with its principles are frequently unsuccessful. The most common
problem is the failure to make the transition from interest to desire. We are all aware of ads that
offer interesting and attractive products, which we do not particularly want to buy.
Numerous models were developed based on Lewis’ AIDA. A detailed chronological listing of
these models is available in Thomas Barry’s, The Development of the Hierarchy of Effects.
While there were differences of opinion as to the exact order, number, and naming of the stages
leading towards purchase, all of the models in this loosely defined period held Action (purchase)
to be the singular goal of advertising.
This similarity is a key issue in understanding the development of the Hierarchy of Effects
theory. The singular focus on sales is indicative of a general consensus about the role of
advertising within a marketing framework. Thus it is not the models themselves which define
this period in the development of the theory so much as it is the larger, underlying assumptions
about the role of advertising itself. The next major phase in the development of the theory would
introduce a shift in these underlying assumptions. Some other variants of AIDA model are
mentioned below.
i. AICA:
Here A, I and A imply the same as AIDA model, i.e. “Attention”, “Interest” and “Action”; but С
stands for “Conviction”.
ii. AIDAS:
AIDAS model takes account of the increasingly important phenomenon of post-purchase
behaviour, with the final ‘S’ meaning “Satisfaction”.
iii. AICCA:
AICCA model inserted “Confidence” and “Conviction” before “Action”.
iv. AIDCA:
The AIDCA model expects that an advertising communicator should lead its viewer through a
series of mental steps as s/he interacts with the ad. For example, in case of one print
advertisement, the “Attention” stage stops the reader from flipping the page, “Interest” stage gets
the reader to read the headline and body copy, “Desire” stage creates in the reader a desire for
your product or service, “Conviction” stage goes one step further than desire so that the reader
chooses the advertised product over others and lastly in the “Action” stage, the reader is
motivated to act according to the advertiser’s desired response.
v. A1DMA:
In the AIDMA model, the consumer first experiences “Attention” and “Interest” at the
recognition stage, then moves to “Desire” and “Memory” that belong to the emotional stage and
finally begins the “Action” that belongs to the behavioral stage.
vi. AISAS:
Due to the convergence or linkage of communications and broadcasting, AIDMA model evolves
into AISAS model, that consists of “Attention,” “Interest,” “Search,” “Action” and “Sharing” as
shown below.
Let us take the scenario anticipated from the One-Seg broadcasting (TV broadcasting for cellular
phone terminals) as an actual example. First, the information transferred by broadcasting arouses
the “Attention” and “Interest” of the consumer. Then, the primary and secondary linkage
functions induced by the data broadcasting content enable the audience to easily perform a
“Search”. Conventionally they had to manually input the URL announced in a broadcast but the
bi-directional transmission system allows them to perform a search simply by clicking on the
URL contained in the data broadcasting content.
The audience can also visit the opinion posting sites where opinions on specific products are
exchanged or a mail community for the audience to share product information or improve their
knowledge levels and finally take the Action that is the actual purchase. This behavioral series
can be regarded as the result of creating a new mode of consumer behavior based on a seamless
integration of the information transfer levels and the formation of TV communities as described
above.
This process is enabled by simple operations on the cellular phone terminal. In addition to the
case taking consumer behavior as an example, public services may also be developed by using
the same mechanism. For example, a local government can enhance its PR services by
broadcasting portal content through its public services outlets and the residents may use such
content to perform searches or share information via grapevine communications within their
communities.