Marketing Management - II

What is Marketing?

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 How do you define Marketing in terms of value ?
“Marketing is an organizational function and a set of processes for
creating, capturing, communicating and delivering value to customers
and for managing customer relationships in a way that benefit the
organization and its stakeholders

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 Do you think price is the only factor which an individual consider
during one's decision making ?

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 What do you mean by value ?

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 Do you think cost is always monetary in nature ?

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 When will a person perceive ‘higher value’ ?

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 What should a company do to ‘enhance value’ ?

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 Can we enhance value of a product after creating it ?

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 Do Marketer’s ‘Create Needs’ ?

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 What are the ‘4 Ps’ of Marketing?
Product, Price, Place and Promotion

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 How do a company reach to a product ?

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 What are the additional ‘3 Ps’ in case of services?
People, Physical Evidence and Process

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 ‘3 Ps’ in case of services
• People : People/staff can be used as differentiators

• Improving the employees’ knowledge and skills

• Improving the employees’ understanding of the needs of the customers

• Improving their responsiveness and willingness to help customers with

promptness, caring and individualized attention

E.g., Reliance Digital Vs Croma (How they can differentiate ?)

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 ‘3 Ps’ in case of services
• Physical Evidence: can be differentiated by physical evidences of the services
like:

• Physical Facilities

• Equipment

• Physical Environment/atmospherics in which the service is provided

E.g., Decoration, Cleanliness, air-conditioned comfort etc.

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 ‘3 Ps’ in case of services
• Process: Process of service delivery can act as a differentiator
• Imagine the process of opening a saving account in a bank: offline
• Online bank account opening facility: achieved using process
innovation
E.g., ICICI bank online account opening service;
Platform 65 (delivery of food through the train/ experience
throughout the dining)
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 Managing Marketing Communications

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 What is ‘Paid, Owned and Earned Media’ ?

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 Paid, Owned and Earned Media
• Paid: For which we pay to the advertiser/advertising agency.

• Owned: Media on which company/organization has full control.

E.g., Facebook and twitter handle, brand brochure etc.

• Earned: Free media, which is generated by the consumers of your product or

services

E.g., blog post, e-WOM etc.

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 What is ‘Marketing Communication’ ?
Marketing communication is the means by which firms attempt to
inform, persuade and remind customers – directly or indirectly – about
the products and brands they sell.

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 Why do communication so important in marketing?

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 What can ‘Marketing Communication’ achieve for the organization?

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 What can ‘Marketing Communication’ achieve for the organization?

The specific set of outcomes that marketing communication aims to attain:

• What is the purpose of using the product?

• The main motive behind the product will be the foremost agenda of marketing
communication.
• E.g., Phillips advertisements show how the idea was to drive away from the
darkness.
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 What can ‘Marketing Communication’ achieve for the organization?

• What is the best way to use the product?

• How the product can be utilized for maximum benefit.

• E.g., Cadburys advertisements have made precise use of this. They cleverly
position in various scenarios like a gift for Diwali or a celebration of love on
valentine’s day.

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 What can ‘Marketing Communication’ achieve for the organization?

• Who is eligible to use the product?

Do you think, a product is helpful for all?

• Not all products are helpful for everyone. Marketing communication ensures
that fact as to whom the product is being made.
• E.g., Durex advertisements make sure the suitable age group of people are cast
in their advertisements.
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 What can ‘Marketing Communication’ achieve for the organization?

• Which environment can the product be used?

• Marketing communication sets the place where the products can be used.

• E.g., Pesticides advertisements are mainly shown outdoors and on large farms.

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 What can ‘Marketing Communication’ achieve for the organization?

• When can you use the product?

• Advertisements show clearly when the products are used.

• E.g., an Apple watch ad clearly shows a range of instances when the product
can be used apart from seeing time.

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 What is communication process?

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 Communication Process
Noise from the Environment

Now Open
---- - --- ---
---- ---- ----
---- --- ----

Sender Transmitter Communications Receiver

(Firm) Encodes Channel (Consumer)
Message (Media) News Decodes Message

Feedback
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 Communication Process
• The Sender:
• A message originates from a sender who must be clearly identified to the
intended audience.
• E.g., Home Depot want to send message using its brand logo about the
“Diwali Sale”.
Why is it important to consider the aspect of target audience while creating the
message?
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 Communication Process
• The Transmitter:
• A sender works with the creative department, whether in-house or from a
marketing agency to develop marketing communication.
• E.g., Home Depot want to send message, hence it work with an advertising
agency to develop the message about its upcoming sales offers.
• Encoding: Refers to converting sender’s ideas into a message: could be
verbal, visual or both. E.g., different ads on different platform
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 Communication Process
• The Communication Channel:
• It is a medium: print, broadcast, the internet- that carrier the message.
• E.g., Home Depot want to send message, it can transmit message through:
• Television
• Radio
• Various Print Advertisements
• Media chose must be appropriate to connect sender with its desired recipient.

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 Communication Process
• The Receiver:
• The receiver is a person who reads, hears, sees and processes the information
contained in the message.
• E.g., Home Depot wants its message to received and decoded properly by
people who are likely to shop in its stores.
• Decoding: Refers to the process by which the receiver interprets the sender’s
message.
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 Communication Process
• Noise:

• Noise is anything that distracts or diverts you from the message.

• E.g., A print advertisement has multiple images or too much text. It will make it
difficult to recognize what you want to communicate.

• Noise can also be created when your message is similar to your competitors.

If your received not able to differentiate between products, they are not going to buy.

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 Communication Process
• Feedback loop:
• It allows the receiver to communicate with the sender and inform sender
whether the message was received and decoded properly,
• Feedback can be in form of purchase of the item, a complain or compliment
and redemption of coupon or rebate.
• E.g., Home Depot noticed an increase in store traffic and sales: implies the
intended audience received the message and understood it well.
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 How do consumers perceive communication?

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 Do all consumers perceive a communication in the same way?

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 Do you think sender should adjust message according to the medium
and receiver’s traits?
Different ads for kids and other customers

What about the Thumps Up ads by Mahesh Babu?

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 What do you know about AIDA model?

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 AIDA model
Consumer Decision Journey:

A consumer goes through different stage in they buying journey.

AIDA Model
• Awareness
• Interest
• Desire
• Action
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 AIDA model

Awareness What is it?

Interest I like it

Desire I want it

Action I am getting it

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 AIDA Model
• Awareness

• The objective here to create awareness about product/service/brand

• When Ford redesigned F-150 truck, its first step to make consumer aware of new
design

• Hence, Ford can utilize media and placed ads:

• Television ads, radio spots, internet and print advertising to reach target audience
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 AIDA Model
• Interest
Is it enough to make consumer aware about the product/brand ?
• It is also known as ‘consideration stage’, where consumer has substantial
number of brand in their mind.

How can we create interest about the product/brand in consumers?

• Show the customers the extraordinary features of the products.
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 AIDA Model
• Desire

• The goal of the message here should move the consumer from

‘I like it’ ‘I want it’

• Inform them about an appealing offer: Special discount offers, also can offer
product bundle

• E.g., Buy Smart Monitor get (keyboard + mouse) at Rs. 99

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 AIDA Model
• Action

• Main goal of any marketing communication is to drive the receiver to action.

• Inform customer about the ease of locating retail stores or availability of product
online.

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 Developing an Effective Communication Program
Setting the Objectives

Identifying Your Audience

Creating the Message

Decide on the Media

Developing the Creative Approach

Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives
• Setting a communication objectives can involve

Identifying Your Audience three types of decisions:

• Focus of Company Communications
Creating the Message • Setting Communication Benchmarks
• Determining Communication Budget
Decide on the Media

Developing the Creative Approach

Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives
Identifying Your Audience
Creating the Message
Decide on the Media
Developing the Creative Approach
Measuring Performance
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Defining focus of Company Communication: It is a
specific task to achieve the objective.
• Creating Awareness:
• Creating Awareness of a need
• Creating Awareness of a specific offering
• Building Preferences: Can use comparative
communication (two brands) to motivate customers
• Inciting Action: Motivating consumers to purchase
or take purchase related actions.
E.g., Coupons, product bundling
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 Focus of Company Communication

Communication program is effective, Company should focus on creating

Product Fails, improve the product awareness and encouraging brand trial IIMV
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 Developing an Effective Communication Program
Setting the Objectives Communication Benchmarks: A company must set
some benchmarks that define the magnitude of desired
Identifying Your Audience
impact and the time frame within which a particular

Creating the Message outcome (awareness, preference or action) must be

achieved.
Decide on the Media
• It can be of two types: Quantitative and Temporal

Developing the Creative Approach

• E.g., Quantitative (level of awareness) Vs Temporal

Measuring Performance (timeframe for these outcomes)

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 Developing an Effective Communication Program
Setting the Objectives • E.g.,

• Increase the number of customers from 10% to

Identifying Your Audience
30% (Quantitative) in one year (temporal).

Creating the Message • Creating the awareness among 40 % millennial

consumers (Quantitative) about a movie before
its premier (temporal).
Decide on the Media

Developing the Creative Approach

Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives Communication Budget: One of the most important
and difficult decision. How does a company know it is
Identifying Your Audience
spending the right amount?

Creating the Message • Objective-and-task budgeting: A company can

develop a budget by defining:
Decide on the Media • Specific Objectives
• Identifying task to achieve these objectives
Developing the Creative Approach
• Estimating the cost involve (Sum of these costs

Measuring Performance is your propose budget)

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 Budgeting
• Consider:
• Stage in product life cycle
• Product differentiation
• Market share
• Message complexity
• Reach
• Competitive communication
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 Developing an Effective Communication Program
Setting the Objectives
Here the business need to identify its target
audience:
Identifying Your Audience
• Find out to whom you want to target through
communication campaign
Creating the Message
• Ultimate goal of the communication campaign is
Decide on the Media to facilitate awareness, preference, purchase and
usage of company’s offerings
Developing the Creative Approach
• E.g. Having a brand sells Sportwear, then target
users who are engaged in sports activities.
Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives
• Crafting the communication which should resonate
with the consumers rationally and emotionally.
Identifying Your Audience
• Also, distinguishes the brand from the competitors.
Creating the Message

Decide on the Media

Developing the Creative Approach

Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives • A company need to allocate their marketing
communication budget over the nine major modes of
Identifying Your Audience
communications:
• advertising, online and social media, mobile
Creating the Message
communication, direct marketing, events and
Decide on the Media experiences, word-of-mouth, publicity and public
relations, personal selling and packaging.
Developing the Creative Approach
• Company need to identify the communication mix.
What is Communication Mix?
Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives Do you think the way in which a company is going to
say does matters?
Identifying Your Audience
• Determining the Message Appeal: The effectiveness
of a communication depends on how well its
Creating the Message message is expressed in addition to its content.

• Informational Appeal: Elaborates the

Decide on the Media
product/service benefits. E.g., Problem solving

Developing the Creative Approach • Transformation Appeal: Focuses on non-

product-related benefits. The kind of person
who uses a brand, E.g. Mountain Dew
Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives

Identifying Your Audience

Creating the Message

Do you think Source of message also matter?
Decide on the Media

Developing the Creative Approach

Measuring Performance
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 Developing an Effective Communication Program
Setting the Objectives

Identifying Your Audience

Creating the Message How do you measure the effectiveness?

Decide on the Media

Developing the Creative Approach

Measuring Performance
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 What is ‘Integrated Marketing Communication’ ?
It represents the Promotion P of the four Ps. It encompasses a variety of
communication disciplines – general advertising, personal selling, sales
promotion, public relations, direct marketing and electronic media – in
combination to provide clarity, consistency and maximum
communicative impact.

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