UNIVERSITI TEKNOLOGI MARA

PERLIS

MARKETING COMMUNICATIONS
INTEGRATED APPROACH

BY:
DR. SHAMSHUL ANAZ KASSIM

FACULTY OF BUSINESS MANAGEMENT

©All Rights Reserved 2017

Handle with care

2017
 PREFACE

‘Dengan Nama Allah Yang Maha Pemurah Lagi Maha Penyayang’

Syukur Alhamdulillah, finally this study manual has finally come to an end.

This study manual highlights the various possible knowledge of an Integrated Approach of
Marketing Communications such as advertising, direct marketing, sales promotion, personal
selling, public relations, point of purchase, packaging, brand name, media, budget, internet
marketing and so fourth.

This study manual can be useful to the students who are taken this subject in any higher learning
institutions in Malaysia.

I would like to take this opportunity to record my sincerest appreciation for all the assistance
rendered by my parent and my friends. Their support, encouragement and understanding
inspired for success.

I really hope that this study manual can be useful guide to those who are interested in the topic.

Thank you. Wassalam.

Amin. Amin. Amin. Ya Rabbal ‘Nga La Min.

“DO IT RIGHT AT THE FIRST TIME”

“WHEN THE EYE SEE, WHEN THE EAR HEAR, THE MIND BELIEFS”.

i
IMPORTANT MESSAGE

ABOUT LIFE
“The Never Ending Journey About Life,
Never Easy To Get It,
Life Is Too Short,
Seek This Life With The True Path,
Gain Knowledge With Gods Grace, Effort and Sincerity,
You Will Be Guided Towards Success,
A Triumph For Your Heart Too…!”

-Shamshul Anaz Kassim

©All Rights Reserved : Unauthorised copying, re-sale, broadcast, cable transmission, distribution or
extraction of this product or any trademark or copywright work that forms part of this product are
prohibited. (2017)

ii
©All Rights Reserved : Unauthorised copying, re-sale, broadcast, cable
transmission, distribution or extraction of this product or any trademark or
copywright work that forms part of this product are prohibited. (2017)
CONTENTS

Chapter 1

1.0 Historical Development of Marketing Communication.

Chapter 2
2.0 Marketing Communication Process.

Chapter 3
3.0 Environmental Issues In Marketing Communication.

Chapter 4
4.0 Consumer behavior psychology

Chapter 5
5.0 Advertising

Chapter 6
6.0 Direct Marketing

Chapter 7
7.0 Sales Promotion

Chapter 8
8.0 Personal Selling

Chapter 9
9.0 Public Relations and Sponsorship

Chapter 10
10.0 Point Of Purchase, Packaging & Brand Name

Chapter 11
11.0 Media & Vehicles

Chapter 12
12.0 Internet Marketing

Chapter 13
13.0 Apropriation and Budget

Chapter 14
14.0 Apropriarion of IMC
LEARNING OBJECTIVES

At the completion of the subject, students will be enable to :

a) Understand the relationship between marketing plans and marketing

communications as the basis for selecting and achieving a balanced marketing
communication mix.

b) Understand how an organization communicates with its markets and publics

through the marketing communication mix.

c) Identify buying motivations in a given market, to ensure that marketing

communications plans are correctly based.

d) Apply the criteria which determine the deployment of the marketing

communications mix for given situations to achieve specified objectives.

e) Design and develop effective marketing communications plans.

 CHAPTER
ONE
1.0 HISTORICAL DEVELOPMENT
OF MARKETING COMMUNICATION

1.1 DEFINITION OF MARKETING AND MARKETING COMMUNICATION:

 Marketing is a process of identifying, anticipating and satisfying customer needs and

wants, profitably. In a simple word, marketing is a way of doing business.
 Communication is a process and sharing some idea, attitude or information.
 Marketing Communication is the process of effectively communicating product,
information or ideas to target audience.

1.2 THE MARKETING MIX AND ITS RELATIONSHIP TO MARKETING

COMMUNICATIONS MIX

The marketing mix is a features of product, price, place and promotion to increase the
chances that the consumer to buy a product or services. The marketing mix elements
as follows :

 Product - Name, packaging and ingredients

 Price - Price, term of trades
 Place - Retailers, agents, direct marketing
 Promotion - Advertising, Sales Promotion, Personal Selling etc

Where,

Marketing Communication Mix is the activities (or tools) used to achieve the
marketing communication objectives. Both marketing mix and marketing
communication mix are incorporate in order to increase goodwill, achieve brand
equity, add more customers and consumers and getting more revenue and positive
number of physical products.

1.3 THREE REASONS WHY MARKETER COMMUNICATE:

a) To Inform
 Marketers communicate to inform about a new product in the market or new
improvements made to the present product, change of location or address, etc.
  Example: the marketer used direct marketing tools to inform to the customer
about the new product and show the location, where can customer get the
product.

b) To Persuade
 All marketing communication tries to persuade the target audience to change an
attitude or behavior or provider information.
 Example: Kraft wants customer to believe that its cheese is the best value
compared to all other cheese brands.

c) To Induce Action
 In this situation the marketers wants the customers to get into action such as
trying the product that is being promoted.
 Example: Dove

1.4 IMPORTANT FACTORS IN MARKETING COMMUNICATIONS:

a) Impact of globalization
 Has forced business to alter their promotional programs, as the market becomes
more universal.
 The market has become more complex due to globalization, the promotional
programs must also be systematic and comprehensive.

b) Change in consumer’s consumption pattern

 Consumers are now becoming more concerned about their consumption pattern.
 These changes have created challenges for marketers to develop responsive and
creative marketing communications practices.

c) An increased number of working women

 Has been an increased in the number of working women causing them to have
less time left for other activities such as the household chores.

d) Decrease in government intervention

 Less government intervention, competition has increased and this has influenced
marketing and promotional practices.

1.5 THE MARKETING COMMUNICATION TOOLS

There are six tools of marketing communication:-

 I. ADVERTISING
Is any paid form of non-personal communication used by an identified sponsor that
promotes ideas, goods or services. It can either be mass communication such as
television, radio, newspaper or magazines or direct communication.

II. PERSONAL SELLING

Is a face-to-face communication where the seller attempts to persuade the customer
and the prospects for the purpose of making sales. For example, door-to-door selling,
telemarketing selling and others.

III. SALES PROMOTION

Consist of all marketing activities that add to the basic value of the product or service
for a limited time and directly stimulate consumer purchasing. For example, coupons,
sampling, discount and others.

IV. PUBLIC RELATIONS

Is the component of the marketing communication that foster goodwill between the
marketer and the public. PR specialists use many tools such as publicity and news
releases, corporate advertising, publications and others.

V. POINT-OF-PURCHASE
Means materials that deliver marketing communication message at the point of sales
that facilitate the consumer likelihood to purchase.

VI. SPONSORSHIP MARKETING

A company’s financial support of an events or cause in exchange for an affiliation
with the organization or event sponsored. For example, Telekom Malaysia
sponsors Le Tour De Langkawi.

Quotes.

Communication is like a heaven. - Shamshul Anaz Kassim

Questions For Discussions

1. Define MC and how the system works ?

2. What are the factors of the development MC ?

3. What do you understand of marketing communication tools ?

 CHAPTER
TWO
2.0 THE MARKETING COMMUNICATION PROCESS

2.1 Definition
a) Communication Process
Definition :- A process in which two or more persons attempt to consciously /
unconsciously influence each other by using symbol.

b) Communication
Definition :- Are a process and sharing same idea, attitude and information.

2.2 THE 9 ELEMENTS IN MARKETING COMMUNICATION MODEL

The communication model as follows :

Sender Encoding Message Media Sender Decoding

N O I S E

Feedback Response

THE COMMUNICATION MODEL PROCESS

Source : Terence A. Shimp, Promotion and Advertising, 2000

The communication process will start with:

1. The Sender
Senders refers to the party that sends the message to another party, example of the
sender is it can be the manufacturer, seller and reseller.
2. Encoding

Refer to the process that translated the message into the symbolic form. Example of
the symbolic form is words, pictures, sound and etc.

3. Message
Message is the set of the symbol that the sender transmits.

4. Media
Media is the communication channel through which the message moves from sender to
receiver. Example, television, radio, newspaper, etc.

5. Receiver
Receiver is a party that received the message sent by another party. In marketing
communication receiver refer to the target market.

6. Decoding
Decoding is a process by which the receiver assigns meaning to the symbols encoded
by the sender.

7. Response
The reactions of the receiver after being exposed to the message.

8. Feedback
The part of the receiver response communicated back to the sender.

9. Noise
The unplanned static or distortion during the communication process. It can be physical
or non physical. It also can be present at any level of communication.

2.3 MARKETING COMMUNICATION PROCESS

Marketing communication process can involve into two, planned and unplanned.

A. Planned communication
 The communication that are specifically planned to achieve some marketing
objective
 Planned message are delivered through the following of marketing tools:

i. Advertising: - any paid form of communication by an identified sponsor

that promotes ideas, goods or services. It can be sending through mass
media, example radio, television, newspaper and magazines.
 ii. Sales promotion: - Marketing activities that add value of the product for
limited time and directly stimulate consumer purchasing. For example,
coupons and product sampling.

iii. Public relation: - A coordinated attempt to create a favorable product

image in the mind of public. For example supporting program and
activities, publishing commercially news in a widely circulated medium that
is not paid for by selling the product.

iv. Direct marketing: - An interactive system of marketing that allows the

consumer to access information, purchase of product through variety of
media. For example include direct mail, catalogs and online catalogs
services.

v. Personal selling - An interpersonal communication with one or more

prospective buyers for making sales. For example field selling, retail
selling, door-to-door selling, telemarketing.

vi. Point-of-purchase: - Materials that deliver marketing communication

message at the point of sales that facilitate the consumer likelihood. For
example in-store coupons.

vii. Packaging: - A container for product and a display for marketing

communication message. It is the last marketing message a consumer
sees before making product purchase decision.

viii. Specialties: - Free gift used as remember items because they carry the
brand and corporate identification.

ix. Sponsorship: - A company financial support of an event in exchange for

affiliation with the organization or event sponsored. Examples, product of
100 plus sponsor for tour of cycling.

x. Licensing - The practice of selling rights to use a company character or

logo on other company’s product. For example selling sweatshirt with
UiTM`s logo on it.

xi. Customer service: - Dealing with customer after they have bought the
product. For example by used warranties and guaranties.

B. Unplanned communication
 Unintentional gesture that can communicate messages to customers
 It can be delivered through:
 i. Employee gossip and behavior: - It refers to how salesperson treats
customer.

ii. Facilities: - Whether the facilities provided can satisfy the customer’s
need and want. For example the storeroom must be in good condition.

iii. Transportation: - Dirty trucks for example will be effects on consumer

perception about our company as having poor service.

iv. Response service: - If the customer well served in return the company
will get good credit for it. For example friendly receptionist.

v. Crisis management: - All these crises in company must handle in proper

way because the negative message from the company will impact on
deliver the planned communication.

2.4 THE MARKETING COMMUNICATION DECISION PROCESS

Can be divided into 4 components:

1. Structuring the organization

I. Is a proper organizational arrangement that facilitates the organizational
arrangement and environment, satisfy its customer and implement marketing
communication process.
II. Many organizations have to rearrange their organization due to several
pressure such as:
 Customer : - better service to customer.
 Consumer : - to satisfy consumers who are the end user
 Competitors : - with a well-structured organization, a company can
easily outperformed competitors

2. Monitoring and managing environment

I. The company has to manage controllable and uncontrollable environment.
These environments can be managed by using SWOT analysis.
 S = strengths
 W = weaknesses
 O = opportunity
 T = threat

3. Brand-level marketing communication decision

The marketer has to decide on 3 important decision:
 a. The general choice
i. Targeting the right market
ii. Objective setting; determine the marketing communication objectives such
as:
 To increased the brand awareness
 To introduce the brand into the market
 To encourage trial of the brand/ services
 To educate the customers
 To ward off competitors
iii. Budgeting; the marketer has to do budget to carry out their marketing
communication’s programmed.

b. The specific choice

Marketers have to identify the specific choice

i. Mixing elements
Determine the choice of marketing communication tools that is going to be
used by marketers.

ii. Creating message

Careful messages selection will avoid miscommunication the encoding
process. The marketer has to decide the best appeal to be utilized.

iii. Selecting media

Marketers can choose the best media available in doing communication
decision.

iv. Establishing momentum

Momentum is a metaphor to the continuity and impact of promotional
effort. Achieving momentum requires sufficient investment to make
advertising efforts worthwhile. It refers to timing, impact and continuity.

v. Program evaluation
Measure the result from the marketing communication efforts. Corrective
action must be taken for the performance that is not achieved
expectations.

4. Enhancing brand equity

I. The amount of equity depends on how favorable customer perceived the
brand’s features and benefit compare to competitive brand and how strong
these views are held in their memory.
II. A brand equity is enhanced when customer:
 Become familiar with the brand
 Have strong, favorable and unique association with the brand
2.5 INTEGRATED MARKETING COMMUNICATION (IMC)

IMC is the practice of unifying all marketing communication tools, from advertising to
packaging to send target audience a consistence, persuasive message that promotes
company goals.

Marketing experts, Don Schultz, Stanley Tannenbaum and Robert Lauterborn define
IMC as, “a new way of looking at the whole, where once we saw only parts such as
advertising, PR, sales promotion, purchasing, employee communication”.

2.6 CHARACTERISTICS OF AN EFFECTIVE IMC

a) Unify all the communication tools

An effective IMC is using all the marketing and promotional mix

b) Able to achieve synergy

“Synergy” is the sum of the whole is greater than the sum of the parts. Its mean the
yield from combination all the marketing tools are greater than the tools work
separately.

c) Establish relationship
An effective IMC must have good and long-term relationship between marketers and
consumers.

d) Affect consumer behavior

A good IMC must be able to build consumer awareness until being loyal towards
their product/ services.

2.7 THE 3 METHODS USED IN SEGMENTING THE MARKET

a) Demographic variables
 Population that can be measured
 It is measured through age, income, education, etc.

b) Psychographics variables
 Population that cannot be measured
 Measurement is based on the lifestyle of the target audience. The variables are:
 Activities of the population
 The population interest
 Their opinions
c) Geodemographics variables
 Combination of demographic and psychographics
 Marketers believe there are similarities between consumers in a given cluster.

2.8 THE IMPORTANT OF SEGMENTATION

I. Influence the message

Segmentations can influence the message and appall that is going to be used in
IMC

II. Determine media

Media can be chosen according to market segment

III. Avoid wastage

The message will not reach to the non-target group.

IV. Marketers can focus on their strategies

Marketers can develop suitable strategies for their target market.

Quotes

Communication is everything. Everything is communication.

– Shamshul Anaz Kassim
Questions For Discussions

1. Explain the communication element process ?

2. What is the important components of IMC ?

3. Define IMC and how the system works ?

 CHAPTER
THREE

3.0 ENVIRONTMENTAL ISSUES IN MARKETING COMMUNICATION

3.1 Introduction.

The environmental issues in the Integrated Marketing Communication include the social
and cultural issue, ethical issue and the regulatory issue. We will discuss all of the
related issues in this summary.

3.2 SOCIAL RESPONSIBILITY ISSUE.

In this following explanation, we will discuss about the six societal issues that affect
marketing communicators. It is divided into manipulation, the right of privacy, puffery,
offensive products and appeal, stereotyping and advertising to children.

a) Manipulation.

Manipulation means influencing people to do or to take action about certain things that
favor the manipulator. Critics claim that marketing communication manipulates people
so that they purchase products and services that they neither need nor want.

However, this critic raises some extremely difficult issue. This because some factors
such as;

i) Some people appear to be gullible people, which they believe everything they
hear or read.
ii) Some people buy everything they see, regardless of whether they can afford
it or not.
iii) Other people such as children, the senile or the poorly educated may not
have intellectual or physical capabilities to judge good from bad or real from
unreal.

In the case of subliminal message, where the message is sent in such a way that the
receiver is not consciously aware of receiving it, it is obviously wrong thing for
communicators to do. This usually means that the symbols are too faint or too brief to
be clearly recognized by the receivers.

b) Privacy

One basic human right is privacy, which means the right to be alone. Critics argue that
marketing communications violates our personal privacy. For example, ads sent at our
fax machines, household receiving at least one telemarketing or sales call and junk
mails of ads in our mailbox.
The possible solution for this is identifying consumers who are truly interested in the
products. Providing the toll free number for consumers to call is also the possible
solution.

c) Puffery

Puffery is advertising or other sales representations that praise the product or service
with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating
no specific facts. Statements such as ‘Nestle makes the very best chocolates’ and
‘Minum Milo badan jadi sihat dan kuat’ are a few examples of puffery.

d) Offensive Products and Appeals.

Feminine hygiene products, hemorrhoid cures, and jock itch are a few products whose
advertisements offend some people. Sexual appeals may also offend people.

The problem of being sensitive to other people’s tastes becomes even more
complicated when communicating in other cultures. In South Korea, for example,
marketing communicators are not allowed to advertise products such as beer, liquor
and cigarettes.

They also prohibited the advertising of pet related products because it was
inappropriate to advertise such products while some families had difficulty feeding their
children.

e) Stereotyping.

The portrayal of people, not products, has also become a social issue. Stereotyping
ignores differences among individuals and presents a group in an unvarying pattern.

Three examples of stereotypes are sexual stereotypes such as portraying women body,
racial or minorities and senior citizens.

f) Advertising to children.

Those who favor regulating children’s advertising are concerned that children do not
posses the skills necessary to evaluate the advertising message and to make informed
purchase decisions.

They also believe that certain advertising techniques and strategies appropriate for
adults are confusing and misleading to children.
3.3 THE ETHICAL ISSUES IN MARKETING COMMUNICATION

Ethics are moral principles or values that govern the actions and decisions of a person.
However it is difficult for us to draw the line of what is ethical and what it is not in the
area of marketing communication. We will next examine how five areas of marketing
communication their legal environment aspects: advertising, sales promotion,
public relation, directs marketing and personal selling.

3.4 ADVERTISING AND THE LEGAL ENVIRONMENT

According to the Federal Trade Communication (FTC), where, it is the primary
governing agency over the advertising industry. Their objective is to identify and
eliminate ads that are deceptive must have one or more of the following characteristics.
 A false testimonial or endorsement
 An indication that the product possesses certain qualities it does not have.
 An untrue characterization of the price or deal.
 Nondisclosure about some important aspects of the product
 Ambiguous statements that may appear true in isolation but can deceive if taken
as a whole.

But from the FTC, they describe that an ad to be deceptive if it contains the three
elements such as:
 There must be a representation, omission or practice that is likely to mislead the
consumer.
 The deceptive must be considered from the perspective of a consumer acting
reasonably in the circumstances.
 The representation, omission, or practice must be material one. The basic
question is whether the act or practice is likely to affect the consumer’s conduct
or decision concerning a product or service. If so, the practice is material and
consumer injury is likely because consumers probably would have chosen
differently without the influence of the deception.
 Areas of deceptive advertising involve:-

i. Unreasonable Basis for Making a Claim

Before an advertising claim can be made about product performance, the advertiser
must have a reasonable basis for making the claim. If the advertiser cannot show that it
had proof to support the claim before it developed the ad, the ad is illegal even if the
claim is true and the product performs as advertised.

ii.Misleading Demonstrations
A demonstration of a product performance on television must not mislead viewers. The
issue is whether the demonstration shoes the product in a normal way in a normal
setting without falsely upgrading the upgrading the consumer’s perception.

iii. Reinforcement of False Beliefs

As that create or reinforce false beliefs are also illegal. What is critical is how audiences
perceive the ad and how it affects their opinions and beliefs about the advertised
product or service. Meaning to say, deception exists if consumer perception of the
truthfulness of a claim is inconsistent with actual truthfulness.

iv. Unfair Comparison Advertising

Actually it is the comparison of two or more specifically named or recognizably
presented brands of the same generic product or service class in terms of one or more
specific product or service attributes. The effect of comparison ads on market share,
advertiser image and competitor image is still uncertain, where it will provide
consumers with biased information on the relative importance of two or more brands,
and disparage brands either by implication or by direct criticism.

v. False Endorsements and Testimonies

An endorsement or testimonial is any advertising message that consumers perceive as
reflecting the opinions, beliefs or experiences of an individual, group or institution.
 Because consumers rely on expert endorsements to make purchase decisions, it is
important that the endorser uses the product and be qualified to make expert
judgment.

vi. “Free” Bargains

Usually, special promotions or bargains are presented as two-for-one sales, cents off
sales, multiple purchase discounts or special offerings. These special deals generally
suggest to the consumer that something is being offered free of charge or at a
discount. If “free” is contingent on the purchase of other products or has additional
costs associated with receiving the item, FTC view this message as deceptive.

3.5 PUBLIC RELATION

According to Burnett J. and Moriarty S., public relation is the use of
communication of information through a variety of media to influence public opinion.
Public relation informs a company’s story to publics to foster goodwill and
understanding. There are four such areas of law will be discussed:

A) Defamation
Defamation is any untruthful communication to at least one other person that
tends to damage a reputation. Usually defamation is divided into slander and libel.
Slander is classified as oral defamation while libel is classified as written defamation.

Public relations practitioners may be involved in libel action in two ways. One of
the practitioners’ clients might be libeled or more likely the practitioner could be
accused of libel through a news release, speech, or other communication.

B) Privacy
The right of privacy applies only to people, not to organization and it takes four forms:-
 intrusion into solitude
  portraying someone in a false light (making the person appear to be someone he
or she isn’t)
 public disclosure of private information
 appropriation
Appropriation, that using private pictures without permission is the violation that causes
most public relations problems.

C) Copyright
Under copyright laws, users of another person’s creative works must
understand the fair use exception to the copyright law. It is the only defense against
copyright infringement. The fair use exception allows the use of part or parts of the
work in criticism, comment, news reporting, teaching, scholarship, or research without
seeking permission from the copyright holder.

D) Contract Negotiations
When a PR practitioner gives a printer a brochure to print, both parties are
entering into a contract. Typically standard forms are used for such transactions. The
forms should include five elements:
 names of all parties
 consideration specified (something of value exchanged)
 an explanation of the extent of the use of the work (e.g. a photo is to be used in
one brochure only)
 duration of the arrangement
 an indication of any other important factors
Still these forms should be evaluated periodically and legal experts should be employed
whenever possible.
3.6 ETHICAL ISSUE IN PERSONAL SELLING.

Clearly the salesperson is often closest to the customers and is the organization’s
primary communicator. Consequently, the marketing communication manager must be
familiar with the laws that impact the sales person and the sales manager.

a) Commercial Bribery
It is the act of influencing or attempting to influence the actions of another company’s
employee, such as a purchasing agent or buyer ,by giving the employee money or gift
without his or her employer’s knowledge.

b) Price fixing.
It is the illegal act of setting prices in concert with competitors. Price fixing occurs most
often in concentrated industries where several major competitors exist.
Ex.Steel manufacturing.

c) Tying Arrangement.
This is happen when the seller forces a buyer to buy or purchase one product to obtain
the right to purchase another.

3.7 ETHICAL ISSUES IN PACKAGING.

Ethical issue in packaging include several unethical aspect.

a) Weight
Sometimes producer produce their product not base on their specific content that
stated on the pack but usually less than.
b) Halal and Haram
Some product didn’t mentioned about Halal & Haram label and it is the unethical aspect
in term of using this product brand especially by Muslim people.
c) Date
Usually, we can see the some producer didn’t mentioned about the expired of their
product to enable they to sell to the customer and to prevent loss of unsold product.

d) Size
Sometimes producers are likely to package their products in a large package but with a
smaller quantity of the product. It is the strategy to attract more people to buy their
product and also to make their product more attractive.

e) Labelling.
Producers are also likely to use the bombastic words to ensure that their products are
challenging to other competitors but it will affect to the customers that will buy the
product because they didn’t understand the complicated words used by producers.

3.8 ETHICAL ISSUE IN DIRECT MARKETING.

The use of direct marketing techniques such as telemarketing, direct advertising, direct
mail, and catalogs is growing rapidly. All of these activities is monitors and regulated by
FTC. FTC regulates the direct-mail companies to ensure that ads are not deceptive or
misleading or misrepresent the product or service being offered. Laws prohibit mailing
unordered merchandise to consumer and using “negative option” plans where by
accompany sends merchandise to consumers and expects payment unless the customer
sends a notice of rejection or cancellation. The FTC also encourage direct mail marketer
to ship merchandise promptly (for instant, within 30 days if no time is stated).

Telemarketing regulations are still evolving. In 1995, congress asked the FTC to
develop a set of rules to complement the Telephone Consumer Fraud an Abuse
Prevention Act of 1994. Under the new rules, telemarketers must state their named, the
company they represent, and the purpose of the call. Companies offering credit and
loans or similar services, can only bill consumer once services have been rendered. In
addition the rule also prohibit telemarketers from calling consumers more than once
every three months for the same product.

Telemarketer must also be aware of the complex set rules develop by FCC in supporting
of the Telephone Consumers Protection Act 1991. Telemarketers must maintain an in-
house list of residential telephone subscribe who do not want to be called.
Telemarketers are banned from using automatic dialer machines that contain a
prerecorded sales massage and from sending recorded message to emergencies
phones, health care facilities, and to numbers, which the call recipient may be charged.

Affirmative disclosure, such as warning on cigarettes or on alcohol, is often required of

deceptive advertisers, particularly in the food and drug industries. These are designed
to help consumers make objective, informed decision. The FTC frequently accompanies
affirmative disclosure order with a cooling-off directive, requiring the company to give
consumers three-day period to reconsider their product purchase. These directives are
only apply to sales made at location other than the seller’s place of business.

The FTC also requires firms to submit on demand documentation to substantiated

advertising and product uniqueness claims. When the FTC issues a complaint against
company, it is the company’s responsibility to show that there is a reasonable basis for
the product claims it has made through such means as acceptable, objective, well-
document research procedures.

3.9 SELF-REGULATION OF MARKETING COMMUNICATION.

One reason for the heavy regulation of marketing at both the federal and the state level
is the long standing assumption the marketing involves illegal and unethical activities.
Marketing communication has unfortunately caught the brunt of the criticism.
Consequently, professionals working in marketing communication have develops
guidelines and codes of ethical conduct so that marketing communication managers
and their companies can both avoid violating the law and can act in a socially
responsible manner.

a) Self – Regulation by Professional Groups

To date there are very few, if any universal standards by which to judge marketing
communication activities. Marketing communicators do not agree among themselves as
what is legal or ethical, and critics apply their own ethical standards. Despite the lack of
consensus, uncertainty about what is permissible has decreased during the last two
decades. Most of this change comes as a result of the activities of independent
organizations that impose regulation through public pressure, and codes develop by
groups within the promotion industry that are attempting self – regulation. These codes
are usually area – specific and deal with topics such as testimonials, personal selling
techniques or coupon.

b) The National Advertising Review Council (NARC)

The most ambitious example of self – regulation occurred in 1971 when the American
Advertising Federation, The American Association Of Advertising Agencies, The
Association of National Advertisers and The Council of Better Business Bureaus
established The National Advertising Review Council to implement a program of self-
regulation. As an intermediaries between the, consumers and federal government,
NARC is charged with maintaining high standards of honesty and accuracy in national
advertising.

Complaints regarding the truth and the accuracy of ads may be initially submitted by
the consumers, consumer’s groups, industrial organization or advertising firm to the
NARC’s investigative staff, The National Advertising Division (NAD). After the complaints
are filed, the NAD evaluates the legitimacy of the complaint and if the complaint is
justified, attempts to resolve the problems. If the advertiser or advertising agencies is
unwilling to change or to withdraw the ad, the complaint is appealed to the National
Advertising Review Board (NARB). This regulatory group consists of members
representing national advertisers, advertising agencies and public or non-industry fields.
On receipt of the appeals the chairperson of the NARB appoint the 5 members panel to
resolves the issue. After receiving both the NAD’s findings and the advertiser’s
counterarguments, the NARB’s decision. If efter the exhausting all appropriates
remedies, the advertisers are still unwilling to accept the NARB’s decision, the federal
government is inform of the violation and the appropriate regulatory agencies take
over.

c) The NAD and The Children’s Advertising Review Unit

The NAD has a special Children’s Advertising Review Unit and has published guidelines
on children and advertising. This unit was established on the 1974 in response to the
special problems of the advertising and directed to children. It purposes to promote
truthful, accurate advertising that sensitive to the special nature of it audience. The
areas is primarily investigates include how products is presented to children, the
amount information provided and the amount of overt pressure to buy.

d) The NAB and Other Media Group

The media have attempted to regulate advertising by screening and rejecting ads that
violate their standards of truth and good standards. The National Association of
Broadcasters (NAB) has separates codes of conduct for radio and television that specify
presenting ads or offering contests, premiums and offers.

As a results of a civil antitrust suit filed against the NAB in 1979 that charged that NAB
rules regulating television advertising were anticompetitive and in restraint of trade, the
NAB has no formal standards concerning the following:

 The number of commercial minutes per hour

 The number of commercial per hour
 The number of consecutive commercials at each commercial interruption.
 The number of products that can be promoted at each commercials interruption
 The purchase of network time for liquor ads
 The actual consumption of beer and wine on television

Many broadcasters, including the major television networks, have a standards and
Pratices Devision, which carefully reviews all ad submitted for possible broadcasts and
regulates the number of ads and the type of products advertised.

e) Other Agents of Self-Regulation

The Better Business Bureau (BBB), local advertising review boards, advertising agencies
and advertising media and public relation firms have also supported self-regulation.
Supported by local businesses, the BBB investigates complaints, attempts to persuade
offenders to stop unfair practices and if necessary employ legal restriction on
advertising.

The Better Business Bureau urges businesses to adopt the following three principles of
advertising self-regulation:

 My organization will take primarily responsibilities for truthful and non-deceptive

advertising.
 My organization will make available to the media or the BBB, evidence to
substantiate advertising claims.
 My organization will ensure that the overall impacts of its advertising is not
misleading, even through every statement may be true when viewed separately.

Quotes

Don’t hope others to respect you BUT you have to respect others.
– Shamshul Anaz Kassim
Questions For Discussions

1. Why is the ethical issues is very important to MC ?

2. How you want to prevent the unethical issues in MC ?

3. Give the examples of unethical issues in promotional mix ?

 CHAPTER
FOUR

4.0 CONSUMER BEHAVIOR PSYCHOLOGY

Key Aspect Of
Consumer
Behavior
Psychology

Learning
Motivation

Attitudes

4.1 KEY ASPECT OF CONSUMER BEHAVIOR.

a) Motivation
Motive can be defined as an inner drive or pressure to act in order to eliminate the
tension, to satisfy need and want, to solve a problem or to restore a sense of balance.
The source of motive are biological or psychological or environment.

Motives can be divided into two:

a. Rational motives - supported by a reasoning process that consumer perceive as
being rational at peers. The criteria include such as price, reliability, risk and
performance.
b. Emotional motives - characterized by feelings that may emerge without careful
thought or consideration of social consequence.
- It is also known as latent motives.
b) Learning

1. Learning can be define as a process of taking an information, processing it along

with existing information and also producing new knowledge.
2. Cues are the stimuli that give direction to motive in learning. How the individual
react to the cues are depends on their response. A positive response to the cues is
called positive reinforcement and a past response to the cues will call as negative
reinforcement.
3. There are two types of behavioral learning:
a. Classical conditioning: A response is learned as a result of the pairing of two
stimuli.
b. Instrumental conditioning: A response is learned because of associated with
certain consequences.

c) Attitudes

1. An attitude is an enduring disposition, favorable or unfavorable, toward an idea, a

person, a thing or a situation.
2. Three components of attitudes:
a. Cognitive component: The beliefs and knowledge about the object of a attitude.
b. Affection component: The feeling about the object.
c. Conative component: The action taken toward the object.

4.2 MULTIATTRIBUTE ATTITUDE MODEL

This model is the systematically predicts individuals attitudes toward an object by

examining their reactions to specific object attributes. According to this model, a
person's overall attitude toward a brand can be measured by determining:
 The consumer's evaluation of individual brand or product attributes.
 The consumer's ideal for those attributes
  The importance the consumer assigns to those attributes

Attitudes can be change depends to extent on two characteristics:

a. Centrality: depends on the degree to which an attitude is tired to values.
b. Intensity: depends on the affective component of an attitude.

Psychographics And Lifestyles

1. Psychographics is a tool that combines consumer characteristic, such as

attitudes and motives, may have bearing on their response to products,
packaging, advertising, sales promotion and public relation efforts.

2. Lifestyle is sociological concepts that studies how individuals choose to allocate

their time and energy. Lifestyles analysis more accurate and it is easy applied to
business strategy decisions. More focus on how people spend their money, their
patterns of work and leisure; the major interest and their opinion on social and
political issues and institution.

4.3 CONSUMER DECISION MAKING PROCESS

a) The consumer make decision depends on whether the consumer engages in simple
or complex decision-making.

i. Complex decision-making requires a search for information and evaluation of

alternatives.

ii. Simple decision-making requires some information search and minimizing of

alternatives evaluation may occur.

b) Types of decision- making depends on:

1. Whether the decision is novel or routine
 2. The extent of the consumers’ involvement with the decision

c) High-involvement decisions:
- High-involvement decisions are decisions that closely tied to the consumer’s ego
and self-image.

Types of risk involve to the consumer:

1. Financial risk (high-priced items)
2. Social risk (products important to the peer group)
3. Psychological risk (the wrong decision might cause the consumer some
concern and anxiety)
In making this decision it worth’s the consumer’s time and energy to consider
product alternatives.
- Complex process of decision-making is for high-involvement purchases.

d) Low-involvement decisions:
 Low-involvement decisions are not important to the consumer
 Financial, social, and psychological risks are not risky
 Not worth the time and effort to search for information about brands or to
consider other alternatives.
 Low-involvement purchase uses a simple decision-making process.

When a consumer has bought a product many times in the past, the decision- making is
likely to be simple, regardless of whether it is a high- or a low- involvement decision.

The customer’s careful consideration of this service product has produced brand
loyalty, which is the result of involvement with the product decision. Once a consumer
is brand loyal, a simple decision-making process is all that is required for subsequent
purchases.
The consumer now buys the product through habit, which means making a decision
without the use of additional information or the evaluation of alternative choices. This is
a simple but high-involvement decision.

Habitual buying may also reflect low-involvement, simple decision-making. If a

consumer is not highly involved in the initial decision to buy a product and makes no
commitment to the product but simply responds to the positive reinforcement it
provides, the person may develop a type of brand loyalty called inertia.

When a consumer buys a brand for the first time, if it is an expensive, unexciting
product that is purchased regularly, the consumer is likely to exert very little effort in
choosing the product. This type of process is simple, low involvement decision.

When a consumer deciding whether to buy for the first time an expensive, personal or
emotion-laden product the consumer will expend a great deal of effort on the process.
This process is a complex, high-involvement decision.
 COMPLEX DECISION MAKING SIMPLE DECISION MAKING

RECOGNITION RECOGNITION
OF ONE’S OF ONE’S
NEEDS NEEDS

INFORMATION EVALUATION OF
SEARCH ALTERNATIVES

EVALUATION PURCHASE
OF DECISION
ALTERNATIVES

PURCHASE
DECISION

POSTPURCHASE POSTPURCHASE
EVALUATION EVALUATION

The Process of Complex and Simple Decision Making

Source : John Burnett and Sandra Moriarty , Introduction To Marketing Communications : An
Integrated Approach, 1998.
 4.4 RECOGNIZING NEEDS AND PROBLEMS

a) People resolve the problem depend on two factors:

1. The magnitude of the discrepancy between what they have and what they need
2. The importance of the problem
Personal hierarchy of needs varies from one person to another person, time and
situations. Consumer must know the problem before they solve it.

b) Marketing communication managers become involved in the need-

recognition stage in two ways:
1. If they know what problems consumers are facing, they may help develop a
marketing mix to solve those problems. To measure problem recognition, marketers use
market research techniques, including surveys, focus groups, observations and
consumer feedbacks. Use this research to select the best communication tools and
messages that address how the product solves a consumer problem.

2. Marketers may activate problem recognition

a) Marketers define the need or problem
b) Marketing communication managers can influence need definition greatly in part
because people usually experience several motives at a time and usually act based on a
mixture of rational and emotional motives.

4.5 INFORMATION SEARCH AND PROCESSING

Information search is the second step in complex decision- making and involves mental
and physical activity. The search takes time, energy and money and requires more
desirable activities. Information search may save money, receiving better quality or
reducing risk
a) Types of information search:
i. Internal search
The consumer attempts to resolve problems by recalling previously stored information.

ii. External search

When problems cannot be resolved through an internal search, people search externally
for additional information. The external sources may include family, friends,
professionals, government or corporate publications, ads, sales personnel or displays.

The sources that a person uses may depend on the importance of the decision, past
experience, confidence in particular sources and psychological makeup. Some
consumers find it too troublesome to search for information and are willing to rely on
the information provided by a salesperson for a minor purchase.

b) Steps in Information Processing:

1. Exposure
To start the process, marketing communication managers must attract consumers to
the stimulus in the path of people in the target market. Messages that contain celebrity
endorsements or coupons to attract customers should appear in a media mix that
consumers will be exposed to.

2. Selective Attention
People must pay attention in order to process the input. Without attention, no further
information processing occurs, and the messages are lost. Some stimuli are more
attention-getting those others.

For example, bright colors and movement both attract attention. Contrast (size of the
stimulus relative to its background) and intensity (loudness and brightness) also
prompt attention.
Personal attributes also influence which stimuli will attract attention. People are likely to
pay attention to messages when it provides information that is relevant to problems
that evoke high involvement and that they are motivated to resolve.

People also tend to pay attention to messages that are perceived to be consistent with
their attitudes and ignore those perceived as inconsistent. Employing an IMC approach
provides a wide variety of tools to create attention and annual reports can grab the
attention of the target audience.

Furthermore, people focus and consider the information that they have been exposed.
There are three (3) types of attention :

a) Involuntary attention : It requires little or no effort on the part of the receiver.

Attention is gained based on the intensity of the stimulus such as loud sound, bright
colour etc.

b) Non-voluntary attention : It is the kind when a person is attracted to a stimulis and

continues to pay attention because it hold his/her interest.

c) Voluntary attention : It is a type of attention when a person willfully notices a

stimulus.

3. Perception & Comprehension

Is the assignment of meaning to stimuli received through the senses. It involves
classifying incoming signals into meaningful categories, forming patterns and
assigning names or images to them.

Perception are shaped by:

a) The physical characteristics of the stimuli
b) The context
c) The individual perceiving the stimuli

The senses transmit signals about the shape, color, sound and feel of stimuli but each
individual perceives those stimuli within the particular context shaped by the person’s
own frame of reference. Thus, a person’s past learning, attitudes, personality, self-
image and current motivations and emotions shape perception.

Some stimuli are perceived totally, some partially, some accurately, some inaccurately.
The perceptual process results in a highly personalized mental representation of
sensory stimuli.

Perception is thought to be a three-stage process: selection, organization and

interpretation of stimuli.
If expectations can be changed dramatically, it is possible to influence the selection
process. This is called creating contrast.

People tend to perceive things they need or want. The stronger the need, the greater
the motivation to perceive stimuli that will satisfy their need or want and ignore stimuli
that will not.

Evidence indicates that marketers group stimuli in a manner that forms a unified
picture or impression to facilitate memory and recall.

Comprehension is the part of the perceptual process, but it goes beyond labeling and
identification to produce a more thorough evaluation of the perceived stimuli. If
consumers were unable to group a variety of cues in some sort of meaningful manner,
they could not see how a number of communication techniques blend into a
comprehensive message.
4. Agreement & Comprehended
People will agree with the message they understand such as credible, contains
information and appeals where its package with values which is important to them.

5. Retention & Search

Is a storage of information for later reference.
The role of memory in the sequence is twofold:
a) Memory holds information while it is being processed throughout the sequence.
b) Memory stores the information for future, which is for long-term use.

Process of memory:
Encoding
Before a person can remember anything, information must be put into a form the
memory system can use. Once encoded, information can be stored in memory.
Information can be encoded and stored automatically, without conscious effort, but
rehearsal, the mental repetition of material, is often necessary to ensure that these
processes occur.

Rote repetition is sometimes sufficient, but it is not as effective as elaborative

rehearsal, which involves thinking about the information and relating it to other and
stored information.

6. Retrieval and Application

The process by which information is recovered from the memory storehouse is called
retrieval. If consumers can retrieve relevant information about a product, brand or
store, they will apply it to solve a problem or meet a need.

Research findings suggest that the most effective way for marketing communication
managers to aid product information retrieval is to provide information about the
product’s benefits and attributes and then show a strong connection between them.
7. Deciding Alternatives
In deciding among alternatives, usually people use simplifying strategies or heuristics to
make decisions. There are three (3) types of heuristics, namely :
a) Affect referral : It is a heuristic where simply calls from memory which an attitude
towards relevant alternatives and choose where the effect of the most positive
alternatives.
b) Compensatory : It is a heuristic used for non-dominant circumstances where
something must be given up in order to get something else.
c) Conjunctive heuristic : It is a type of non-compensatory heuristics that requires the
consumers to establish minimums of all selected choices. It will retain an alternative for
further consideration after meeting minimum criterias.

8. Acting Basis Decision

Eventhough, people gone through every information process before buying, they are
not consistently remains with their preferences because people need and wants always
influence by desires. This decision basically comes from their attention of information
they are looking for their choices such as the types of information of Consumer
Processing Model (CPM) and Hedonic, Experiential Model (HEM). This two (2) models
are describes on how consumer process information and make choices among
alternatives and relates to each other of eight stages of information processing.

The CPM model, behavior is seen as “rational, cold, highly cognitive, calculating,
systematic and reasoned”.
The HEM model views people behavior as driven by emotions in pursuit of “fun,
fantasies and feelings”.
Those model can be viewed as follows :

CPM HEM
 ‘Cold’  ‘Hot’
 ‘Calculating’  ‘Emotional’
 ‘Cognitive’  ‘3 Fs – Funs,
Fantasies &
Feelings’

CPM HEM

CPM & HEM MODEL OF CONSUMER BEHAVIOR

EXPOSURE SELECTIVE PERCEPTION

RE ATTENTION &
COMPREHENSION

RETRIEVAL RETENTION & AGREEMENT &

AND COMPREHENDED
& SEARCH
APPLICATION
&

ACTING BASIS DECIDING

DECISION
ALTERNATIVES

&
The Eight Steps in Information Processing Model
Source : Terence A. Shimp, Advertising Promotion, 2000
4.6 IDENTIFYING AND EVALUATING ALTERNATIVES

Factors of searching for alternatives:

1. The cost in time and money
2. How much information they already have
3. The perceived risk associated with a wrong decision
4. Their predispositions about making choices

4.7 PURCHASE AND POSTPURCHASE BEHAVIOR

 Marketing communication managers can play a key role at the purchase

stage.
 Providing basic product, price and location information through advertising,
personal selling and public relation is an obvious starting point.
 Product sampling, coupons, rebates and premiums are a few of the sales
promotion devices used to encourage the customer to purchase.
 Communication elements at the point of sale may also be important.
 Packaging, signage, store appearance, merchandise techniques and attitude
of the sales and management personnel are relevant in closing a sale.
 A consumer’s feelings and evaluations after the sale are also significant to a
marketer because they can influence repeat sales and what the consumer
tells others about the product or brand.
 Consumers typically experience some post purchase anxiety after all but
routine and inexpensive purchases. This anxiety reflects a phenomenon called
cognitive dissonance.
 People strive for consistency among their cognitions (knowledge, attitudes,
beliefs, values).
 When inconsistencies arise, dissonance is created, which people try to
eliminate.
  In some cases, the consumer makes the decision already aware of the
dissonant elements.
 In other instances dissonance is aroused by disturbing information received
after the purchase.
 To avoid or eliminate dissonance, consumers may avoid negative information.
They may change their behavior, their opinion or their attitudes. They may
seek information or opinions that support their purchased.
 Sometimes, the consumer’s attempt to reduce dissonance can produce dire
consequences for the marketer.
 The marketer may take specific steps to reduce post purchase dissonance.
 Advertising that stress the many positive attributes or confirms the popularity
of the product can be helpful.

4.8 ORGANIZATIONAL MARKET BEHAVIOR

 Business-to-business marketing is those who supply goods and services

to consumer markets are themselves in need of goods and services to run
their business.

4.8.1 Characteristics of Organizational Buying

 Each organization has its own business philosophy that guides its actions in
resolving conflicts, handling uncertainty and risk, searching for solutions and
adapting to change.
 Five characteristics mark the organizational buying process:
1. In organizations many individuals are involved in making buying decisions.
2. The organizational buyer is motivated by both rational and emotional factors
in choosing products and services. Although the use of rational and
quantitative criteria dominates in most organizational decisions, the decision
makers are people, subject to many of the same emotional criteria used in
personal purchases.
 3. Organizational buying decisions frequently involve a range of complex
technical dimensions.
4. The organizational decision process frequently spans a considerable time,
creating a significant lag between the marketing communicators’ initial
contact with the customer and the purchasing decision. Because many factors
can enter the picture during this lag time, the marketer’s ability to monitor
and adjust to these changes is critical.
5. Organizations cannot be group into precise categories. Each organization has
a characteristic way of functioning and a personality.

4.8.2 Three main types of buying situations exist: the straight rebuy, the modified
rebuy and the new tasks.
 The straight rebuy is the simplest situation: The company reorders a
good or service without any modifications. The transaction tends to be
routine and may be handled totally by a purchasing agent.
 The modified rebuy, the buyer is seeking to modify product
specifications, prices and so on. The purchaser is interested in
negotiation and several participants may take part in the buying
decision.
 A company faces a new task when it considers buying a product for
the first time. The number of participants and the amount of
information sought tend to increase with the cost and risks associated
with the transaction. This situation represents the best opportunity for
the marketer because the customer is open to new information and
alternatives.
4.9 PURCHASING OBJECTIVES:

1. Price
 Buyers in the business arena are more concerned than ordinary consumers
with the cost of owning and using a product.
 The large volume of a particular product purchased or the high per-unit
cost, means that businesses spend thousands or millions of dollars with
each purchase decision.
 In evaluating price, therefore, businesses consider a variety of factors that
generate or minimize costs.

2. Services
 Business buyers require multiple services, such as technical assistance,
availability of spare parts, repair capability and training information so it is
highly valued.

3. Quality
 Organizational customers search for quality levels consistent with
specifications. They are reluctant to pay for extra quality or to compromise
specifications for a reduced price.
 The crucial factor is uniformity in end products, reduced the need for costly
inspections and testing of incoming shipments and ensure a smooth blending
with the production process.

4. Assurance of Supply
 Interruptions in the flow of parts and materials can shut down the production
process, resulting in costly delays and lost sales. To guard against
interruptions in supply, business firms rely on a supplier’s established
reputation for delivery.
 4.10 STAGES OF ORGANIZATIONAL BUYING

PROBLEM RECOGNITION GENERAL DESCRIPTION

PRODUCT SPECIFICATION SUPPLIER SEARCH

PROPOSAL SOLICITATION SUPPLIER SELECTION

ORDER-ROUTINE SPECIFICATION PERFORMANCE REVIEW

Stages of Organizational Buying

Source : John Burnett and Sandra Moriarty , Introduction To Marketing Communications : An
Integrated Approach, 1998.

1. Problem recognition
 Begins when someone in the organization recognizes a problem or need that
can be met by acquiring a good or service.
 The recognition can occur due to internal or external stimuli.

2. General Need Description

 The salesperson serves as the primary information source for many industrial
customers.
 Armed with extensive product knowledge, this sales person is capable of
addressing virtually all the product-related concerns of a typical customer.
 Trade advertising provides valuable information to smaller or isolated
customer.
 Direct marketing and public relations plays a significant role through the
placement of stories in various trade journals.

3. Product Specification
 Engineers design several alternatives depending on the priority list
established earlier.

4. Supplier Search
 The buyer tries to identify the most appropriate vendor.
 The buyer may examine trade directories, do a computer search or phone
other businesses for recommendations.
 Marketing communication managers can participate in this stage by
contacting the buyer directly.
 Personal selling plays a major role at this stage.

5. Proposal Solicitation
 The business buyer invites qualified suppliers to submit proposals.
 Some suppliers will send only a catalog or sales representatives in lieu of a
proposal.
 Proposal development is a complex task that requires extensive research and
skilled writing and presentation.

6. Supplier Selection
 The buyer screens the proposals and makes a choice.
 A significant part of this selection is an evaluation of the vendor.
 Most important characteristics of the vendor are:
a) delivery capability
b) consistent quality
c) fair price
d) different attribute varies with the type of buying situation.
 7. Order-routine Specification
 The buyer writes the final order with the chosen supplier, listing the technical
specifications, the quantity needed and the warranty.

8. Performance Review
 The buyer reviews the supplier’s performance.
 It is a very simple or a very complex process.

Quotes

The people around you is only a guideline. It is only you need to drive.
– Shamshul Anaz Kassim
Questions For Discussions

1. Explain the cognitive, affective and conative elements of an attitude. Provide

examples of each using your attitude toward the idea of your pursuing a career
in sales management and advertising ?

2. What is the key aspects of consumer behavior ?

3. What do you understand of CPM and HEM model. Elaborate your answer with
examples.
CHAPTER 5: ADVERTISING

5.1 INTRODUCTION

The main reason why we choose to discuss advertising first is because advertising has
become synonymous with promotion. And it is one of the tools in marketing
communication that is familiar to us.

In everyday life, we have come across advertisements, advertising campaign,

and advertising program. Advertising is costly. Often its effects are uncertain
and sometimes it takes a while before it has an impact on consumer’s buying
behaviour.

Before we go further into advertising, let’s see some of the terms in advertising.

1. Advertising.

A form of either mass communication or direct-to-consumer communication that

is non personal and is paid for by various business firms, non-profit organizations,
and individual who are in some way identified in advertising message and who hope
to inform or persuade members of a particular audience.

2. Advertisements.

Specific messages that someone or some organization has placed in an attempt to

persuade the audience. It is some times referred to as a copy of commercials.
Advertisement is the final product of the advertising process.
 3. Advertising Campaign.
A series of coordinated advertisements and other promotional efforts that
communicate reasonably cohesive also integrated theme to the target audience.
Advertising campaign is also called advertising program.

5.2 FUNCTIONS OF ADVERTISING.

In general advertising is valued because it is recognised as performing a variety

of critical communication functions. The function are informing, persuading,
reminding, adding value and assisting other company efforts.

 Informing.
Advertising makes consumers aware of new products. Inform them about
specific brands and educate them about particular product features and
benefits. Advertising is an efficient form of communication, capable of
reaching mass audiences. It facilitates the introduction of new products and
increase demand for existing product.

 Persuading.
Effective advertising persuades customers to try the advertised products.
Persuasion takes the form of influencing primary demand whilst frequently
advertising attempts to build secondary demand.

 Reminding.
Advertising also keeps a company’s brand fresh in the consumer’s memory.
When a need arises that is related to the advertised product, past advertising
impact make it possible for the advertiser’s brand to come to the consumer’s
mind as a purchase candidate.
  Adding Value.
Advertising adds value to products and specific brands by influencing consumers

perception. Effective advertising causes brand to be viewed as more elegant,

more stylish, more prestigious, and perhaps superior to competitive offerings.

This can lead to increased market share and greater profitability for a brand

name and company.

 Assisting Other Company Efforts.

Advertising may be used as a vehicle for delivering sales promotions. That is,
advertisements are the physical vehicles for delivering coupons, and
sweepstakes and attracting attention to these sales promotion tools. Another
crucial role of advertising is to assist sales representatives. Advertising also
enhances the results of other marketing communications. For example,
consumer can identify product packages in the store and recognize the value
of a product more easily after seeing it advertised on television or in a
magazine.

5.3 TYPES OF ADVERTISING

There are two main categories of advertising above-the-line and below-the-line

advertising.

5.3.1 Above-the-line-advertising

Usually refers to the advertising that using the mainstream media such as the electronic
media (TV and Radio) and print media (newspaper and magazine).
  Newspapers - the advantages are flexibility, timeliness, good local market
coverage, broad acceptability and high believability. The limitations are short life,
poor reproduction quality, small pass-along audience
 Television - good mass-market coverage, combine sight, sound and
motion; appealing to the senses. The limitations are nigh absolute cost, high
clutter, fleeting exposure; less audience selectivity.
 Radio - good local acceptance, high geographic and demographic selectivity
and low cost. The limitations are audio only, low attention because just sound
whit hut motions and fragmented audiences.
 Magazine - credibility and prestige, high-quality reproduction, long life and
good pass-along readership

5.3.2 Below the line advertising

Other supporting medium such as outdoors advertising, direst response advertising,

telemarketing etc.
 Outdoors - flexibility, high repeat exposure, low cost, low message competition
and good positional selectivity. The limitations little audiences selectivity and
creative limitations.
 Online - high selectivity, low cost, immediacy, interactive capabilities. The
limitations are small, demographically skewed audience, relatively low impact,
and audience controls exposure.

5.4 THE STRUCTURE OF AN ADVERTISING INDUSTRY

There are many parties involve in the production of an advertisement. The

advertisement may look very plain and simple.
5.4.1 Advertisers

Advertisers are those who have something to advertise. Advertisers can be the
manufacturer, an individual, resellers (wholesalers and retailers) and nonprofits
organisations. The advertiser must make sure their advertisement is effective in term of
gain the audience attention.

5.4.2 Advertising Agencies

This is an organization of professionals who provide creative and business services to

clients related to planning, preparing, and placing the advertisements. There are many

advertising agencies, locally established as well as international advertising agencies.

The examples of local advertising agencies are Bloomingdale and AMC while the

international agencies includes Dentsu and McCann Erikson.

 The role of advertising agencies

a) In house advertising operation

A company can maintain its own, in house advertising operation.

This necessitates employing an advertising staff and absorbing the

Overhead required to maintain the staff’s operation. Such an

Arrangement is unprofitable unless a company does a relatively

Large and continuous amount of advertising.

b) Full service advertising agency

Full service agencies perform research, creative services, media

planning and buying services, and a variety of client services. They

also may be involved in the advertiser’s total marketing process

 and, for a fee, may perform other marketing services including

sales promotion, publicity, package design, strategic marketing

planning and sales forecasting.

c) Purchases advertising services a la carte

That is, rather than depending on a single full service agency to

perform all advertising and related functions, an advertiser may

recruit the services o a variety of firms with particular specialties in

creative work, media selection, production, advertising research,

sales promotion, publicity, new product development and so on.

5.4.3 External Facilitators

These are organizations or individuals who provide specialized services to advertiser

and agencies. They may include professional photographers, film directors and editors.

These professionals may bring knowledge, expertise and efficiencies that companies do

not possess among them.

5.4.4 Media Organizations

It comprises of media available to advertisers. Among media organizations includes

broadcasts stations, newspapers, magazines publishers, site owners and transportation

companies.
5.5 ADVERTISING STRATEGY

Advertising strategy involves five major activities as follows :

DETERMINE THE
ADVERTISING
OBJECTIVE

IDENTIFY THE
TARGET MARKET

DETERMINE THE
ADVERTISING
BUDGET
CHOOSONG THE
CREATIVE STRATEGY

SELECTING THE
MEDIA

Figure 5.5.1 The Advertising strategy

Source : Terence A. Shimp, Promotion and Advertising, 2000

 MARKETING
STRATEGY

ADVERTISING STRATEGY
 Objective setting
 Budgeting
 Message strategy
 Media strategy

STRATEGY
IMPLEMENTATION

ASSESSING
ADVERTISING
EFFECTIVENESS

Figure 5.5.1 The Advertising Management Process

Source : Terence A. Shimp, Promotion and Advertising, 2000

5.5.1 DETERMINE THE ADVERTISING OBJECTIVE

Advertising objectives are goals that advertising efforts attempt to achieve. There are
three major reasons for setting advertising objectives:
1. To increase sales

2. To make the target market aware of a new brand.

3. To facilitate consumer understanding of a brand’s attributes and its benefits

compared to competitive brands.

4. To enhance attitudes

5. To influence purchase intention

6. To encourage trial of brand

7. To increase the customer loyalty

5.5.1.1 WHY IS IT IMPORTANT TO HAVE ADVERTISING OBJECTIVE?

a. Guide the marketer on the course of action that they will take

b. Objectives represent the management consensus. And is therefore not a

personal decision

c. Objectives will facilitate the identification of the target audience and

budgeting

d. Objective will act the benchmark for measuring the advertising

effectiveness

5.5.1.2 REQUIREMENTS FOR SETTING GOOD ADVERTISING OBJECTIVES

1. Specific- Objective must include a precise statement of who, what

and when. - Objective must be stated in precise terms. Objective should

specify the target audience (who), indicated the specific goal to be

accomplished (what-egg: awareness level) and indicate the relevant time

frame (when) in which to achieve the objective.

2. Measurable-Objectives must be quantitative and measurable-

objective should be stated in quantitative terms.

3. Objective must specify the amount of change- objective must specify

the amount of change they are intended to accomplish. E.g.: the advertising

objective this year is to increase brand X’s sales (WRONG because not specify

the amount of change) e.g.: B the advertising objective is to increase by July

31st the target audience awareness of brand X from 60 percent to 90 percent.

(RIGHT- because clearly specify).

4. Objective must be realistic- unrealistic objectives are as useless as having

no objective at all. An unrealistic objective is one that cannot be

accomplishing in the time allotted to the proposed advertising investment.

Example a brand that had achieved only 15 percent consumer awareness

during its first two years on the market could not realistically expect a small

advertising budget to increase the awareness level to, say, 65 percent.

5. Objective must be internally consistent- advertising objective must be

internally consistent with objective set for other components of the promotion

mix. E.g. if we cannot increase the awareness level but reduces our

promotion budget at the same time.

6. Objective must be cleared and in writing. - Objective must be stated

clearly and in writing so that they can be disseminated among their users and

among those who will be held responsible for seeing that the objectives are

accomplished.
5.5.1.3 DIRECT VERSUS INDIRECT ADVERTISING OBJECTIVES.

Direct objectives are those that seek an overt behavioral response from the

audience. Indirect objectives are aimed at communication task that need to be

accomplished before overt behavioral responses can be achieve.

Direct advertising is used in:

 Direct response advertising- much advertising via in the mail or in mass media

(Television or newspaper). In general direct response advertising is design to

generate immediate sales volume.

 Business to business advertising- business that market their products to other

businesses rather that to final consumers often use advertising as a means of

generating prospects for their salespeople. (Telephone numbers or mail inquiries

receive from prospective customers.)

 Retail advertising- sometime retail advertising merely informs prospective

customers about a new store or attempts to elevate a store’s image. These types

of advertising would be regarded as indirect in that the purpose is not to

generate immediate buyer action. On the other hand, much of the advertising

undertaken by supermarket, mass merchandise and other retailers promotes new

or sales items and is designed to bring customers to the store. This type of

advertising has a direct objective- to sell merchandise immediately or in the very

near future.

 Sales promotion advertising- sales promotion in the form of coupons, contests,

and premium offers, and other techniques are delivered via advertisements in
 media such as newspapers and magazines. This form of advertising is expected

to generate quick buyer action as indicated by the number of coupons redeemed

or the number of people who enter the contest.

5.5.2 IDENTIFY THE TARGET MARKET

Identify the target market is importance because we need to focus our promotional

efforts. Marketer cannot cater to all markets available. Marketers have to determine the

best segment to which their promotional efforts are to be directed at. Are they going to

be children? Men? Women? Or what age group? It is also will influence the message as

well as the choice of media. There are many ways in which the market can be

segmented:

 Demographic Variable

There are any characteristics of the population that can be measured. These

include factors such as age, income, education levels, numbers of households,

etc.

 Psychographics variables

Usually known as lifestyle segmentation. Lifestyle is not easy to measure,

therefore measurement is made using variable that describe the lifestyle of the

target audience. The variables used are:

1. Activities

2. Interests

3. Opinion
  Geodemographic variables

Is a combination of demographics and psychographics variables. Using

geodemographic factors, the marketer belief that there are similarities between

consumers in a given geographic cluster. Understanding the different ways of

segmenting the market is important because of several factors:

1. Influence the message and the appeal that is going to be used in Marketing

Communication.

2. Determine the choice of media

3. Avoid wastage- the message will not reached the non-target group.

4. Marketers are more focused in the strategies.

5.5.3 DETERMINE THE ADVERTISING BUDGET

The advertising budgeting decision is in many respects the most importance decision

advertisers make. If too little money is spent on advertising, sales volume will not be as

high as it could be, and profit will be loss. If too much money is spent, expenses will be

higher than the need to be, and profits will be reduced.

5.5.3.1 WHY ADVERTISING BUDGET IS DIFFICULT?

1. It is difficult to evaluate the effectiveness of the promotional tools used.

2. Changes in sales may be affected by many factors, not only one promotional

tools used. Other marketing mix may also influence it.

3. To come out to an agreement of a budget is also difficult since each unit in

an organization view the budget in different perspective.

5.5.3.2 BUDGETING METHODS

There are two main methods that are commonly used by many companies:

1. PREDETERMINED BUDGETARY METHODS

A. PERCENTAGE-OF- SALE METHOD

 A company set its advertising budget for a particular brand by simply

establishing the budget as a fixed percentage of past or anticipated sales

volume.

 Assume for example: that the company allocates three percentages of

anticipated sales to advertising and that the company project next year’s

sales to be RM10, 000,000. Its advertising budget would be set at RM

300,000.

 Its means that the more the company sold last year, the more money it

has available for marketing budgeting this year.

B. UNIT OF SALES METHOD

 This method is similar with the percentage of sales method, instead of

dollar sales; the physical volume of either past or future is used. This

method is commonly used in the automobile industry.

 C. COMPETITIVE PARITY METHOD

 Many companies set the amount to spend on promotion based on their

competitor’s expenditure. This technique is not usually used in isolation of

others; instead it is used together with other budgetary methods.

 Company that used this method is aware of existence of competitors

surrounding them. This method is also very simple since it only requires

information on the dollar amount spent by rivals.

D. AFFORDABILITY

 In this method the amount left over after all the other relevant company

expenditures are paid is used for promotional appropriation. It is usually used

for newly introduced products. Although this method influences all company,

it is commonly used for smaller companies.

2. STRATEGY BASED BUDGETING METHODS

 Unlike the predetermined budgetary methods, the strategy-based methods

are all based on the strategy of the marketing budgeting itself. The

methods are:

o Objective task

o Mathematical methods

o The experimental methods

o Payout planning
5.3.3 FACTORS AFFECTING BUDGETARY DECISION

o The product

o The numbers of promotional tools to be used

o The tasks to be undertaken by the tools

o The degree of competitions in the market place

o The financial condition of the company.

5.5.4 CHOOSING CREATIVE STRATEGY

Advertising strategy is the formulation of an advertising message that communicates the

brand’s primary benefit or how it can be solving the consumer’s problem. Among the

issues are:

i) Effective Advertising Strategies

 It must extend from a sound marketing strategy. An ad is not

considered to be effective if there is no clear link with the marketing

strategy regardless of how creative an ad is.

 Effective advertising must take the consumer view. For example,

marketer may fell that the consumer buy the brand because they like to

design however on the other hand the consumer may like the brand

because it is cheap.

 The advertising must find a unique way to break through the

clutter. Clutter means too many advertisements as a certain point.

 Marketer must find effective ways to make their ad stand out from the

rest.

 An effective ad must never promise more than it can deliver. As a

sensitive marketer never over promise the audience. Over promising or

ever exaggerating may backfire. For example there is no such thing as

“lebih putih daripada putih” – a detergent.

 The creative idea must not overwhelm the strategy. In simple terms

the advertisements must not be too creative that the audience cannot

understand the message conveyed.

ii) Alternative Creative Strategies

According to Charles Frazer, there is several creative approaches which can be

adopted by advertisers. The approaches are:

 Generic Strategy

Make no effort at differentiation; claim could be made by any in the

market, use in monopolistic situations.

 Pre-emptive

Uses a common attribute or benefit but gets there first, forces competition

into “me too” positions, uses categories with little differentiation or in new

product categories.
 Unique Selling Proposition (USP)

Uses a distinct differentiation in attributes that creates a meaningful

consumer benefit, appropriate in categories with relatively high levels of

technological improvements.

 Brand Image

Uses a claim of superiority or distinction based on extrinsic factors such as

psychological differences in minds of consumer, used with homogeneous,

low technology goods with little physical differentiation.

 Positioning

Establishes a place in the consumer’s mind relative to the competition,

suited to new entries or small brands that want to challenge the market

leaders.

 Resonance

Uses situations, lifestyle and emotions that the target audience can

identify with, used with highly competitive, non-differentiated product

categories.

 Emotional / Anomalous / Affective

 Uses an emotional, sometimes even ambiguous, message to break

through indifference and change perception, used where competitors are

playing it straight.

iii) Message Appeals And Endorsers

Once the marketer has identified which creative strategies that they want to use,

the next step is to determine what appeal they would like to utilize to promote their

brands.

iv) Creative Advertising Appeals

Creative strategy is general idea or the central theme that the marketer wishes

to adopt in their advertisements. Appeals on the other hand are the specific

attraction used to reinforce the promotion message. An advertiser can use a USP

strategy with a humour appeal or any combination, which is deemed appropriate.

 Humours Appeal

The use of humours is effective for getting people to look at the

advertisements and creating brand awareness. It was found out those

humours:

 Attract attention to the ad

 Enhance liking of the advertisements as well as the advertised

brand
  Humours does not harm comprehension

 Fear Appeal

Moderate amount of fear can help enhance the consumers’ attention to

the advertised brands. There are 2 types of fear:

 Negative consequences for not using the advertised brand, usually

in he form of social approval

 Negative consequences for engaging in a dangerous behaviour

 Sex Appeal

There are 2 types of sex appeal:

 Suggestive

 Nudity

Sex play several functions:

 Served as a stopping power

 Enhance recall of the message

 Evoke emotional response

 Use Of Music

Good music composition may help to enhance the image and recall of the
advertised brand. Among the effective use of music is the Winston
advertisements and Nescafe.

 Endorser In Advertising
There are 2 types of endorsers used in advertising namely:

 Celebrity endorsers

A celebrity is a personality known to the public for his or

accomplishment in areas other the products class endorsed. Actors,

artists, sportsperson, singers and politicians are examples of celebrity

endorsers.

Among the criteria used are:

 Celebrity credibility – based on the trustworthy and

knowledge about the brand’s effectiveness

 Celebrity / audience match up – celebrity must have

qualities that the audience find desirable

 Celebrity / product match up – the celebrity’s image, values

and personality must be compatible with the product that she or

he endorsing

 Celebrity attractiveness – attractiveness may include factors

like friendliness, likeability, physique and occupation

 Miscellaneous consideration

 Cost of engaging the celebrity

 Likelihood of the celebrity getting into trouble

  How easy the celebrity to work with

 Other brand endorsed by the celebrity

 Typical-person endorsers

Regular person used to endorse products. Testimonials advertising

usually used typical person.

The use of multiple people is more persuasive than a single individual.

There are 2 basic attributes that contribute to endorser’s effectiveness

namely:

 Attractiveness

The general concept of attractiveness consists of similarity,

familiarity and liking.

 Credibility

The properties that enhanced credibility are expertise and

trustworthiness as perceived by the target audience.

v) Corporate Image And Issue Advertising

 Corporate image advertising is aimed at creating a specific personality

in the mind of the general public. Corporate image advertising do not

stress on the specific brand but overall image of the company. In Malaysia
 corporate image are normally predominant during festival period such as

the National Day, Hari Raya and Chinese New Year.

 Issue advertising, which is sometimes, referred to as advocacy

advertising takes a position on a controversial social issue to sway the

public opinion. A goods example can be seen during the dioxins crisis

where almost all diary products manufacturers advertised on the safety of

their milk products.

Quotes

Advertising is splendor. Its can flicker the world – Shamshul Anaz Kassim
Questions For Discussions

1. What is the functions of advertising ?

2. List and explain the various types of alternative creative strategies ?

3. Advertising is synonym to celebrity and endorser in whatever types of product

and services that offered by various companies to manipulate customers to buy.
Why this culture is still remains and growth drastically in business and
advertising market ? Discuss.

4. Find an example of print ad that you think is very creative and also dull and
boring. Comments each ad from creative perspective. What makes one ad
creative and the other ad plain ?

5. Find an example of an ad or campaign that you think reflects one of the

approaches used to develop a major selling idea such as unique selling
proposition, brand image or positioning. Discuss how the major selling idea is
used in this ad or campaign.
CHAPTER 6 : DIRECT MARKETING

6.1 DEFINITION
o Interactive system of marketing, which can use one or more advertising
media.
o A two way communication and personal in nature between marketers and
consumer.
o Marketing via many advertising media, interact directly with consumer, for
consumer to make direct response.

6.2 FACTORS LEAD TO GROWTH OF DIRECT MARKETING

1. Need to use more cost effective communication methods

o Marketers have to find new and effective way to reach target audience.

2. Introduction and explosion of database

o Accurate database allow use direct marketing efficiently.

3. Change in social trends

o Many consumers are too busy to shop. They rather buy through Internet.

4. Consumer is responsive.
o The main reasons the phenomenal growth in direct marketing is mainly due
to customer.

5. Increased emphasis on measurable advertising result

o Direct marketing more result oriented and highly measurable.
6.3 DIRECT MARKETING TECHNIQUES

1. Direct Response Advertising

o Require immediate response. E.g. Direct mail
o Characteristics of direct response
Make definite offer
Contain all information to make decision
Include response device

2. Direct Mail
o Less attention received, marketer can experiment with control.
o Advantages of direct mail as direct response
Most selective
Most potential for personalization
Flexible, suitable for testing
High potential rate of response
Simple, inexpensive to change

3. Direct Selling
o Conducted at buyer’s or seller’s location
o Via face to face, telephone
o Strength – ability of sales people to develop, modify and maintain flexible
intercommunicating relationship with customers.

4. Telemarketing
o Use of outbound calls – business to business communication
o Use inbound calls – business to business and customer, enhance via free
phone / low call tariff numbers to encourage potential customers to call.
 o Advantages to company
One step ahead from competitors
Improve relationship via two-way dialogue
Increase customer confidence – direct contact
Increase customer loyalty
Improve awareness and public image

o Advantages to customers
Prefer business by phone
Control of situation – no pushy sales representative
Direct contact with customer
Quick result – customer get what they want faster

5. Database Marketing
o Use to locate good potential customer, tailor product and services to the
special needs of the targeted customer, and maintain long-term customer
relationship.
o It also for targeting marketing communications and selling efforts.

6. Internet Marketing
o Catching very quickly with the marketers.
o Doing business through cyberspace.
6.4 STRENGHTS AND WEAKNESSES OF DIRECT MARKETING

A) STRENGHTS

 More targeted
 Ability to personalize approach; flexible
 Results are more measurable

B) WEAKNESSES

 Ineffective, unless use as long term strategy

 Poor image if poorly executed
 Lead to decrease in goodwill
 Message conflict with other marketing communication message

6.5 EVALUATE DIRECT MARKETING

1. Profitability Analysis
- Determine cost incurred and revenue earn if use Direct Marketing
- If costs too high, Direct Marketing is not good marketing communication
alternative.

2. Customer characteristics and responses

- Respondent / nonrespondents survey
- Tracking studies
- Geodemography

Quotes

Please direct to the point in whatever you do. Don’t try to be a snake.
– Shamshul Anaz Kassim
Questions For Discussions

1. Discuss the role of direct marketing.

2. What is the advantages and disadvantages of direct marketing ?

CHAPTER 7 : SALES PROMOTION

7.1 DEFINITION
The incentive is additional to the basic benefits provided by the brand and temporarily
changes its perceived price or value.

7.2 SALES PROMOTION STRATEGY

1. Stimulate pull and push strategy

Pull strategy refer to marketing efforts directed to final consumer and usually
implemented with large advertising expenditures. It’s used when the demand of
the product is high and when there is high differentiation among products real or
perceived benefits.

Push strategy refer to promotional efforts by manufactures directed at gaining

trade support from wholesalers and retailer. It’s usually used when the product is
new, complex or has many substitutes.

2. Introduce new product

Sales promotion can create awareness of brand and can used together with
advertising. Its also can be used to reinforce customer loyalty with coupons,
rebates and others.

3. Build a brand
Many sales promotion experts believe that sales promotion can build brand
loyalty.
7.3 TYPES OF SALES PROMOTION

A) Consumer Oriented Sales Promotion

1) Sampling
Almost a necessity when introducing truly new products. Includes
actual or trial sized product to consumer.

The methods of sampling

 Direct mail - mail directly to household targeted by
demographic characteristic.
 Newspaper and magazine - it is an attractive medium for
broad scale sampling.
 On- or –in pack sampling – uses the pack of another product
to serve as the sample carrier.
 Door to door- allows considerable targeting and cost of
delivering is low and also short lead times.
 High traffic location- samples are distributed at shopping
centers, movie theaters or airports.
 In store sampling- demonstrators provide product in grocery
stores or retail outlets for trial while consumer are shopping.
2) Coupons
Is a promotional devise that provides cents off saving to consumer
upon its redemption. There are several types of coupons :
i) Point of purchase - instant, shelf delivery and electronically
delivered by optical scanner.
ii) Mail and media delivered coupons- for mail delivered coupons
its usually introduce new or improved products and can increase
amount of purchase. Media delivered coupons also perform an
advertising function.
 In and on pack coupons- not peel able in the stores but are remove
at home.

iii) Premiums
Articles of merchandise or service and offered by manufacturers to
induce action on the part of the sales force, trade representatives or
consumers.

iv) Price offs

Called as cents off price packs or reduction in a brand regular price.
The objectives are to get consumer buy more quantities and
encourage repeat purchase.

v) Bonus packs
It refers to an extra quantities of a product that company gives to
consumer at the regular price.

vi) Rebates or refunds

Refers to the practice in which manufacturers give cash discounts to
consumer who submits proof of purchase and encourage customer to
make multiple purchases or by rewarding previous users with cash
discount for again purchasing the manufacturer brands.

vii) Contest and sweepstakes

Contest may need the consumers to solve the contest problem and
may be submits proofs of purchase and the consumers has opportunity
to win cash, merchandise or travel prizes.
 B) Trade Oriented Sales Promotion

The objectives of Trade Oriented Sales Promotion:

 To introduced new or improved products.
 To increased distribution of new packages or sizes.
 To build retail inventories.
 To maintain or increase the manufacturer’s share of shelf space.
 To obtain display outside normal shelf locations.
 To reduce excess inventories and increase turnover.
 To achieve product features in retailer advertisement.

There are several types of Trade Oriented Sales Promotion such as :

i) Trade allowances-
Used by manufacturer to reward wholesalers and retailer for
performing activities in support of the manufacturer’s brand. The
objective is to increase wholesaler and retailer purchases of the
manufacturer brands and increase consumer purchase that brands
from retailer.

ii) Cooperates advertising and vendor support programs: -

It is a cooperatives arrangement between manufacturer and reseller.
The manufacturer pay for all advertising costs undertaken by the
reseller. For the vendor support retailer that develop advertising
programs in consultation with local advertising media and then invite
the supplier to pay the specifics percentage of the media costs initiates
programs.

iii) Trade contest and incentive.

Develop by the manufacturer to encourage better performance from
retail management and the sales people. Contest based on managers
 meeting a sales goal establish by the manufacturer and incentives are
given to retail manger and sales people for performing certain tasks.

iv) Specialty advertising

Advertising and promotions medium that utilizes useful or decorative
articles to transmit to target audience organization identification and
promotional messages.

v) Trade shows
Is a temporary forums (usually for a few day) for seller of a product
category, exhibit and demonstrate their goods to buyers.

CAPABILITIES AND LIMITATIONS OF SALES PROMOTION

A) Capabilities

 Stimulate sales force enthusiasm for new, improved or matured product.

 Increase sales of mature product.
 Facilitate the introduction of new product to the trade.
 Increase on and off shelf merchandising space.
 Neutralize competitive advantages and sales promotion.
 Obtain trail purchase form.
 Loading consumer.
 Reinforce advertisement.

B) Limitation
 Compensate for a poor trained sales force or for lack of advertising.
  Give the trade or consumer any compelling long term reason continue
purchasing a brand.
 Permanently stop an establish brand’s declining sales trend or change the basic
non-acceptance of undesired product.

Quotes

Shacking your world with sales promotion – Shamshul Anaz Kassim

Questions For Discussions

1. Why sales promotion is so important to the company?

2. What do you meant of push and pull strategy system in sales promotion ?

3. List and explain the types of sales promotion ?

CHAPTER 8 : PERSONAL SELLING

8.1 UNDERSTANDING PERSONAL SELLING

Personal selling is a marketing communication tool that is used to increase sales directly
through personal contact. The impact of personal selling is direct compare to the other
marketing communication. It is because direct impact of the tool demonstrated by the
number of people employed in the personal selling field where the number is high
compares the number of people employed in advertising.

8.2 Definition

Personal selling is the face-to-face presentation of a product or idea to a potential

customer by representative of the company or organisation.

From the definition we can know that:

1. Personal selling involved one on one communication rather than the mass
communication that characterises advertising, sales promotion and public relation.
2. Personal selling is differ from direct marketing, in personal selling information is
presented personally, there is immediate feedback and adjustments to the message
can be immediately.
8.3 Comparison of Personal Selling and Other Elements of Marketing
Communication

Items Personal Selling Other Marketing

Task and the The main task is to build
problem relation between salespeople
and customer, salespeople
and supervision and
salespeople and other
organisation.
Participation House their marketing
communication specialist in
the marketing department.
Communication
The main task is different,
advertising for example is
creating a message.
Separate the sales force from
the other communication
areas or a business.

8.4 STRENGHTS AND WEAKNESSESS OF PERSONAL SELLING

Strengths
 Flexibility
 Minimizes wasted
effort
 Facilitates buyer
action
 Multiple capabilities
Descriptions
Can tailor presentation to suit needs motives and
behaviors of individual customer.
Unlike mass media marketing communication, the
marketing message is only offered to a target
audience of likely buyers.
The one on one interaction allows specific request
for action on repeated basis, if necessary.
Collection of payment, servicing the product,
accepting returned profit and collecting information
are all possible.
 Weaknesses Descriptions
 High cost Cost per contact is high due to travel, lodging and
salaries.
 Finding and retaining Both sales people and the company look for
salespeople alternative ways to maximises personal benefits.
 Motivation Due to independent of sales force, delivering a
unified message is difficult
 Message inconsistency Difficult to motivate sales people to use required
sales techniques, make all necessary sales calls, use
new technology and behave ethically.

8.5 THE ROLE OF PERSONAL SELLING IN THE MARKETING

COMMUNICATION MIX

The personal selling in the marketing communication mix, which are strictly one-way
communication, like advertising, personal selling involves a two-way, personal
communication between the salespeople and the prospect. In short, personal selling
serve as a critical link between a company and its customer.

The role of personal selling in the marketing communication mix depends on several
factors:

1. Types of the market

Personal selling is emphasis in industrial market or in selling to reseller rather than
in the consumer market.

2. Type of product
Technical product an automobile or applicants that require an extra explanation
require need personal selling.
3. The availability of the distribution channel
Different type of product needs different type of distribution channel.

Ultimately, the marketing director or the marketing communication manager employs 4

criteria to determine the role of personal selling in the marketing communication
strategy.

1. The nature of the information that should be exchange to promote the product or
service
2. The marketing communication objective
3. The marketing communication mix alternatives available to the organisation, with
special concern for the firm capabilities to implement each other.
4. The relative cost of personal selling compares with the other marketing
communication mix elements.

8.6 INTEGRATING PERSONAL SELLING

Bringing personal selling and marketing communication mix elements together remain a
major frustration in most business, but under circumstances the benefits out-weigh the
cost of integrating personal selling with other elements.

1. Personal Selling and Advertising

Advertising can reach large audiences simultaneously with a vivid message. The
message must be quite general and the copy relatively shorts; opportunity for
feedback and adjustment is virtually nil. Personal selling offers the opposite set of
strengths and weaknesses as advertising does, advertising and personal selling tend
to complement each other. In other word, when advertising is needed to create
awareness and provide basic information, but personal selling is necessary to
complete the exchange process, the advertising-personal selling combination make
sense.
2. Personal Selling and Sales Promotions
Sales promotion is an important tool that can help sales representatives during or in
addition to the selling process. Sales promotions add to the value of the product or
service and made the product easier to sell. The combination is particularly effective
in competitive situation where products are similar and the salesperson needs
something extra to create a competitive advantage.

3. Personal Selling and Public Relation

In some instances the role of the salesperson as a public relations provider is
informal and revolves around the person’s day-to-day activities. Salespeople are also
excellent at explaining the company’s product to the customer that requests such
information. However, the salesperson can also be involved in more formal public
relations activities that help both the salesperson and the public relations manager.
For example, salespeople are encouraged to get involved in community activities,
join a public service organization and other public relation activities.

4. Personal Selling and Other Marketing Tools

Personal selling can increase in value when combined with other communication
tools such as direct marketing, point-of-purchase marketing and so forth.

8.7 THE WORLD OF PERSONAL SELLING

Although the sophistication of personal selling has increased over time due to better-
educated individuals and advance technology, the selling process has basically
remained the same. In the section that follows, we discuss the types of personal selling
and the process of personal selling.
8.8 Types of Personal Selling

The six following types of sales differ in some important ways

1. Responsive selling
In responsive selling the salesperson reacts to the buyer’s demands. Route driving
and retailing is two kinds of responsive selling.

2. Trade selling
Trade selling involves calling on dealers, taking orders, expediting deliveries, setting
up displays and rotating stock.

3. Missionary selling
A missionary salesperson is normally not an order-taker. Instead, his primary
responsibility is to explain a new product to the market before the total product is
available to the public.

4. Technical selling
This type of salesperson sells a service – the ability to solve customer’s technical
problems through expertise and experience. The salesperson’s ability to identify,
analyze and solve customer’s problem is essentials.

5. Creative selling
Normally relating to new product or to an existing product that is being introduced
into a new market. The salesperson is an “order-getter” who emphasized and
stimulates demands for the said products.

6. Consultative selling
This type of selling is a form of relationship marketing. The salesperson first meets
with customers, offer little direction and builds rapport. After the sales, the
 salesperson uses support to reinforce the sale, ensure satisfaction and maintain the
relationship.

8.9 THE PROCESS OF PERSONAL SELLING

Attaining
knowledge

Prospecting

Pre-approach

Approach

Sales
presentation

Follow-up

PROCESS OF PERSONAL SELLING

Source: John Burnett et.al Introduction To Marketing Communications, 1998

Attaining knowledge
 The salespeople need a thorough knowledge of the buyer’s motives, characteristics
and behaviour. They also need the factual information about their own company and
the competition.
 The amount and kind required depend on the type of product, product line,
characteristic of the customer, organisational structure and the types of selling.

Prospecting
 Is the process of locating customers and then obtaining permission to present a
sales presentation.
 It is vary for different types of selling. The most common methods of prospecting
follows:
1. Inquiries :- most companies receive a steady supply of sales leads from their
advertising, telephone calls and catalogs.
2. Endless-chain method :- the salesperson obtains a least one sales lead from each
person interviewed.
3. Center of influence method :- this method is modified from of the endless-chain
method. Here, the salesperson cultivates people in the territory who are willing
to supply prospecting information.
4. Public exhibition, demonstration and trade shows :- people attending these
events are often already interested in the product so they become prospect that
the salesperson meet with at or after the events.
5. Lists :- individual sales representatives may develop their own lists of potential
customer by referring to such sources as public records, classified telephone
directories, club memberships, database and hits/inquiries on web sites.
6. Friends and acquaintances :- these people are often a source of sales leads for
new sales representatives.
7. Cold canvas method :- the salesperson makes calls on every individual or
company in target group without any knowledge of their interest level.

Pre-approach
 The salesperson need to learn more about the prospect to determine the best
sealing approach, identify the problem areas and avoid mistakes.
 The salesperson must know as much as possible the organisation and the buyers
who are responsible for buying.

Approach
 The salesperson should know how to appropriately meet and greet the buyer.
 It is the strategy used to gain the prospect attention to the salesperson can make
effective sales presentation.
 Used the several approach method e.g. phone calls, and the salesperson must
immediately establish a rapport.

Sales presentation
 Explain in details how the product meets the customer requirement.
 The salesperson must inform the prospects, the product is, its characteristic and
features emphasising on the benefits to the buyers.
 There are number of sales presentation categories. All starts with understanding of
the customer `s needs and wants. They tend to vary in term of formality.
 This involves of the handling the objection and closing.
 In handling the objection, the salesperson should not blurted in anger, if the buyer
objects instead use the positive approach the reason behind the objections and take
every opportunity to provide more information.
 Closing - the salesperson should try to close the sales. They should know the right
time to close the sales after.

Follow up
 Is to ensure that the buyer’s satisfaction is enhanced. This can be done through
prompt delivery, courtesy calls and visits and speedy service.
 The salesperson needs to make sure the buyer understands the sales contracts and
the guarantees fully.
 The salesperson should reassure customer that they made the right decision by
summarising the product benefits, repeating why their choice is better than the
others and pointing how satisfied they will be with the product’s performance.
8.10 STYLE OF COMMUNICATION IN PERSONAL SELLING

There are 5 elements of communication style:

1) Pace
The speed of which salesperson moves to close a sale is known as pace. A
salesperson must adjust this pace so that the buyer does not feel rushed, offended
or bored.

2) Scope
Refer to the variety of benefits, features and sales term discussed. Some sales
presentation designed to appeal to all customers use a broad scope. For high-prized,
customised product, the presentation tends to have a narrower scope, focusing on
the most important benefit to the buyer.

3) Depth of inquiry
The extent of the salesperson’s efforts to learn the details of the buyer’s decisions
process. The appropriate depth is affected by 3 factors:
a) The salesperson’s previous experience with the prospect
b) The extends to which several people are involved in the purchased.
c) The prospect’s feeling about the product before and after the presentation.

4) Interactive communication
In personal selling two-way communication must be initiated and maintained.
Salespeople must ask question and listen carefully to match the product with
customer needs. They must avoid the temptation to present the product in a
manner that discourages customer interaction.
5) Use of supporting materials
It is to support the salespeople make their presentation because it is difficult for
buyers to visualise intangible or complex products, flip charts, slides and so on that
help customer visualise product benefits.

8.11 MANAGING A SALES FORCE

Most sales executives agree that strong sales supervision is a key ingredient in building
in excellent sales force. A typical sale force is composed of men and woman with
diverse background and experience levels, often separated by headquarters by
thousands of miles. Through necessity, many salespeople become the primary
connection between the customer and the company. Consequently, they are running
their own business. In the recent past sales managers made overt attempt to decrease
this independent by requiring salespeople to report for weekly meeting. Because of the
high cost of the travel combined with the communication capabilities of laptop
computers, this pattern has changed.

Today salespeople find themselves walking a thin line, splitting loyalties between
customer and the company that pays their salary. Salespeople see their customers
regularly but may have little contact with the company. In fact, the sales manager may
be the only contact the salesperson has with the company.

The sales manager becomes they key link between the company and the sales force.
The sales manager defines and interprets business policy, directs the daily efforts of the
sales force, coaches the sales force and help salespeople resolves problem. The sales
manager’s task is far more complex than it was 20 years ago. Product and services are
more diverse and sophisticated. Buyers are more knowledgeable. Consequently, sales
managers have had to become proficient at 5 sets of business activities:
a) Planning
Process of forming objectives and strategies for personal selling. Taking into account
both internal and external factors, sales managers should organises and plan a
firm’s personal selling efforts so that it is consistent with other aspect of a firm’s
marketing communication program.

b) Staffing
Staffing activities are those acts that sales managers take to recruit hire train and
maintain a quality sales force.

c) Implementing
This is the process of taking steps to achieve the firm’s sales plan. One step might
be to design a program that helps salespeople meet the firm’s sales revenue goal.

d) Controlling
This set of activities is concerned with the performance of salespeople. Performance
must be evaluated on a regular basis and must be equitable and consistent.

e) Adapting to change
Sales manager must develop the ability to adapt to changes in the company, the
business world and technology. Global competition, for instance, may lead to
company cost cutting that forces sales managers to maintain or increase productivity
with fewer resources.

8.12 SETTING SALES OBJECTIVES

The specific objectives for the sales force should be driven by the marketing
communication objective and should complement the stated objective for the other
marketing communication tools. Unfortunately, it is co-ordination of objective is rarely
done. Instead, sales managers revert most often to traditional personal selling objective
such as target and quotas.

 Sales target
Is the desired level of sales for a product or product line during a specific time.

 Sales quota
Is the shares of the overall sales goal that is allocated to a sales person, territory or
some other segment of the company business.

8.13 MOTIVATING THE SALES FORCE

Providing such incentive is one of the most time-consuming aspects of the sales
manager job. Motivation provides positive incentive, discipline involves the use of
negative incentive.
The sales managers use several methods to motivate. Among the most common are
financial bonuses, security, opportunity for advancement, a meaningful job, status,
personal power, sales-determination and pleasant working condition.

i) Financial incentives

Financial incentives can be divided into two categories, based compensation and extra
compensation. Extra compensation includes incentives such as bonuses, optical
program, prize and reward.

There are three types of based compensation that is straight salary, straight
commission and combination. Straight salary is compensate people for a time spent on
the job, straight commission, salespeople are paid a fixed or sliding rate of earning
based on their sales volume or profit contribution. The commission reward people for
getting orders.

Combination plant attempts to eliminate the limitation of straight salary and straight
commission. The primary benefit of combination plan is that they can allow the
compensation program to be tailored to the needs of a particular firm.

ii) Other motivators

 Opportunity for advancement
 Meaningful job
 Individual status
 Increase sales people authority
 Good working condition

Quotes

Vend yourself with your personal characters. It is the moment of truth.

- Shamshul Anaz Kassim

Questions For Discussions

1. Discuss the role in personal selling.

2. List and explain the types of personal selling.

3. Discuss the process of personal selling.

4. Motivation is very important to employees. In this case, how you want to

motivate your salesman in order to increase your physical products and revenues
in your company?
CHAPTER 9 : PUBLIC RELATION (PR) AND SPONSORSHIP

9.1 DEFINITION

 Publics are all the audience that the marketing communicator targets to receive
message about the company.
 Relations release that these public are involved in a relationship with the company
and it relationship should be positive to ensure an effective business operation.
 Companies try to create goodwill and control their image through public relations
activities. Nowadays there are rapid growths in public relations industry.

9.2 THE ROLE OF PUBLIC RELATION

 Public relations tell an organization’s story to public to foster goodwill and
understanding.
 Public relations practitioners help shape the company’s practices by counseling top
management on public opinion and issues, and on the positive and negative
implication of certain behaviors.
 Public relations are the use and communication of information through a variety of
media to influence public opinion.
 Monitoring attitudes and public opinion is an important part of PR`s role.
 Another function of Public relations is to plan how to handle communication about
crises before they occur or how to handle unpredictable crises in a quick and careful
way.

9.3 STRENGTHS OF PUBLIC RELATIONS

1) Its target and manages relationship with important shareholder.

2) It can reach difficult-to-reach audience, such as opinion leaders and upscale
consumers. These communities normally are uninterested in advertising. So,
publicity presented through the news media can more effectively reach this group.
3) Public relations professionals, ever to sensitive to public opinions, can advise clients
and companies on the implications of trends and corporate activities.
4) Public relations specialist can present the company as a good citizen through careful
relationship management and monitoring of an organization’s reputation and
corporate image.
5) They can play how to handle crises, thereby minimizing negative effects on the
organization’s reputation.
6) It offers a business more message flexibility compared with advertising and sales
promotion because law governing news release on less strict than for those
regulating advertising of all forms.
7) PR add credibility and believability because target audience usually consider new
stories to be more objective than other marketing communication that are develop,
presented and paid for by a sponsor.
8) Public relations break through clutter more effectively than other marketing
communication areas because people are willing to believe a news message than a
commercial message.
9) Public relations are relatively cost-effective because new coverage, if warranted, is
free.

9.4 WEAKNESSES OF PUBLIC RELATIONS

1) The lack of control over how stories are covered. The press may not use business
information released to the media as the company intended, especially because the
press has access to order information sources.
2) Inabilities to control varies stories receives coverage. Editors and producers are the
person who is deciding what gets into the newspaper, magazines or new program
and only concentrate on the news that has values.
3) It is hard to evaluate its effectiveness. Public relations are monitored in terms of the
extent of the media coverage that a story generates, but that doesn’t really measure
its impact on public opinion or other stakeholder relationship.
9.5 UNDERSTANDING PR`S PUBLIC
 A public exists whenever a group of people, set together by specific interest, has
opinions about those issues.
 Individuals are frequently members of several publics, which may result in
overlapping roles and conflict of interest.
 There are two types of public which is:-

A) Internal Public
 Are the people with whom an organization normally communicates in the ordinary
routine of work, such as employees, investors suppliers dealer and regular
customers.
 The most important internal audience is employees.
 In order to foster employee relation companies rely on three types of
communication:
1) Downward communication from management to employees keeps people
informed about program and policies. Handled through employees
newspaper and magazine, video news broadcast, bulletin boards,
poster, etc.
2) Upward communication from employees to management, relying on informal
feedback, suggestion boxes, surveys, group meeting and open door policies.
3) Horizontal communication across department lines is usually structured
through teamwork projects, networking programs or team meetings.

B) External Publics

 The first concern is usually with the press because it can influence the public
opinion.
 Consumers are a large external public. They are reached directly through advertising
and sales and indirectly through media publicity.
 Government is the second external public. Frequently, governmental interest overlap
with consumers, particularly consumer activist groups.
 Third is financial community – investors, stockbrokers and the financial press. They
must have a basic understanding of business law, economics, corporate finance and
investment practices. They must understand how corporate and external activities
affect stock prices and changes in the company’s bond rating.

9.6 TYPES OF PUBLIC RELATIONS

1. Media Relations
 Media relations`s specialist develop personal relationship with their media
covering their industry or company.
 They provide information in the form of story ideas, press releases and other
publicity materials, serve as a source or find an expert when reporters need to
talk to someone knowledgeable, and train other corporate executives in how to
be interviewed and how to handle questions from the media.
 The relationship between the news and the PR professional can be both
cooperative and adversarial.

2. Corporate Public Relation

 Is the term for high-level counselling with senior management about the
company’s overall reputation?
 Corporate public relation practitioners help shape their organization: determine
the concerns and expectations of the organization’s public and explain these
concern to management.
 Manages corporate advertising, which is advertising, which is advertising used
by the company to create positive attitudes and goodwill the company.
 Advocacy advertising is a type of corporate advertising that expresses the
viewpoint of the company on some issue.
3. Employees Relations

 A company’s internal communication to its employees, creates

programs designed to motivate employees to do their best work.
 They are involved in the development of newsletter, bulletin boards and video
programs.

 If employee relations are effective, companies are much more likely to have
high employee morale, motivation and productivity.

 These will help improve the company’s bottom in because employees also help
produce positive relationship with customer and other stakeholder.

4. Financial Relations

 Is a public relations field in which specialist who understand finance work with
the financial community and comply with government financial regulations for
public companies?

 Financial relation’s specialist manages communication with stockbrokers and

investors and the financial press.
 They also deal with a wide variety of financial information, such as changes in
company policies and how those changes may affect stock prices, and changes
in the company’s bond rating and stock prices,

5. Public Affairs and Community Relations

 Programs that focus on government regulations work closely with federal,
regional, state and local government agencies.
 Lobbying, activities aimed at influencing policy decisions of government officials,
is a type of public affairs activity.
 Community relations involve managing relations with stakeholder in the local
community.

6. Marketing Public Relation (MPR)

 It is important in the launch of a new product.
  MPR specialists work closely with marketing people on marketing.

9.7 MANAGING PUBLIC RELATIONS

A successful public relations requires a plan. A plan requires research as follows :

A) Public Relations Research

 The organization should correctly identify the image in order to communicate an
image to others by used the research to diagnose the organization’s image.
 The objective of PR research include probing basic attitudes, measuring actual
opinions, identifying opinion leaders describing the characteristic of various
stakeholder group, testing themes and media and identifying potentially trouble
some issues before they develop.
 The role of PR managers is to intelligently assess such findings, puzzle out the
contradictions and identify the relevance for their organization.

B) Planning Public Relations

 The plan development consist of the following six steps:

i. An assessment of the current situation
ii. A statement of objectives
iii. Selection of target audience
iv. Selection of methods of implementation
v. A determination of cost
vi. An evaluation of result

 Assessing the situation

Research helps organization assess current situation. Confused and unconfused
corporate image is a key problem often uncovered. It takes constant vigilance to
maintain a positive image and reputation.
 Example: Procter & Gamble made an immediate and expensive public relation
response to quell negative word of mouth surrounding the rumors that the origin of
its logo from a satanic cut.

 Objectives and Targeting

Most PR objectives relate to attitudes, opinions, information, and feelings. Some,
however, relate to behavior. The potential audiences for a public relation effort
should be researched just as carefully as the target audiences for an advertising
campaign. The more PR practitioner knows about each audience, the better the
message design will be.

 Implementation
Implementations includes the choice of specific public relation tools, decision about
the message strategy and the method and time of delivery of the message.

 Budget and Evaluation

Planner must know – not guess – what things cost. The most effective way to
communicate with a specific audience might be via a prime-time television program.
But the cost of this type of public relations might exceed the budget. To match the
needs of the business to the budgetary constraint, PR planners must ask: What can
we afford to do to implement the public relations objectives properly?

 Integrating Public Relation

Successful public relation efforts depend in large part on how well they are
integrated with other marketing communication functions.
For public relations to have an important role in a total communication program, it
must be recognize that PR`s expertise is in relationship management, which is the
heart of a marketing communication program.
 Integration is essential, especially in areas where it overlaps with other marketing
communication tools. Corporate advertising, advertising for PR purpose, overlaps
with advertising and can enhance the advertising message and brand image.

9.8 TOOLS OF PUBLIC RELATIONS

A) Publicity
 One of the responsibilities of a media relation program.
 Publicity can deliver impact that no advertising budget can accomplish.
 Most publicity is delivered in the form of a news release that commits a story to
paper or video in the style acceptable to the medium for which it is intended.
 To make a significant announcement to representatives of the press, an
organization may hold an event called a press conference.
 A collection of supporting material known as a press kit provides photographs,
releases and copies of speeches, maps, timetable and other material that might
be of use to reporter.

B) Corporate Advertising
 Corporate advertising is communication by an organization about its work, views
and problem that aims to gain public support.
 The emphasis is on the image of the company rather than the sale of a product.
 Unlike publicity, corporate advertising is paid for by the organization and this allows
the sponsor to tell its stories when and how it chooses.

C) Publications
 Publications may come in various forms such as magazines and newspaper,
brochures, annual reports, flyers, posters and other forms of printed materials.
 Publications are distributed to internal audience such as company employees or
external audience such as shareholders, legislators, donors, alumni, etc.
 For example: A university may publish brochures or magazines for their alumni. All
these publication create prestige, goodwill and an understanding of the
organizations.

D) Videos and Film

 Videos and film are some of the most complex and expensive means of
communication.
 Offer an opportunity to influence viewers in a way that no other medium can match.
 For example, business may send video news release to television station as a type of
publicity. Videos can also be used for sales meeting, training and staff conference.
Some large companies even produce their own news shows that are played for
employees during lunch or break.
 Some limitations to video and film:
 People are accustomed to quality image and therefore expect to see videos and
film that are professionally produced and that means these materials will be
expensive.
 Moving image tend to proceed at their own pace and allow little time for viewers
to ask question, so they do not generate two-way conversations.

E) Special Events and Communication Sponsorship

 Special events such as open houses and tours are useful way to educate people
about where people work and what they produce.
 Tours are usually provided for general consumers but also for special groups such as
students, scientist and members of the trade.
.
F) Lobbying
 Lobbying is an area of great sensitivity because it involves contacting government
officials with information and persuasive communication.
 Lobbyists are use persuasive communication and their in-depth information when
influencing government officials in dealing with proposed legislation and regulation.
G) Fundraising
 Fundraising is important for nonprofit associations who rely on goodwill to stimulate
memberships and donations.
 Fundraising is a specialty that involves public relations.
 Professional fundraisers are skill at developing campaigns that can bring in large
sum of money.
 Fundraising also called development is way of life for most universities.

H) Meetings
 A meeting is an effective communication technique since they involves personal,
interactive communication. Perhaps it is often neglected because it seems too
simple.
 Meetings are limited by the size of the setting, they should be used to communicate
with relatively small stakeholders groups. They often used for such purpose as an
annual report meeting for investors.

I) Social activities
 Some interesting events includes company picnics, holiday parties, bowling or other
sport activities can be conducted to create a pleasant atmosphere for employees
and to create an impression that management is thoughtful and interested.

J) Sponsorship
 A sponsorship is the provision of financial support for an activity or organization.
 The aim of sponsorship is to polish the sponsor’s image in ways that reflect
positively on the bottom line.
 A stadium of sponsorship is one of the newest types of sponsorship.
 Sponsorship of executive suites, sometimes calls skyboxes in the stadium is the big
business.
 Companies sponsor children’s program at the local symphony, provide materials for
schools and award scholarships for students.
 Business also gives grants to artist to support their creative work.
K) Event Marketing
 Many companies began using event marketing – that is promoting special events to
gain more visibility to their companies.
 The objectives is to cut through the clutter of mass media and gain higher levels of
awareness by linking with some cause, entertainment or activity that creates a
positive association for the company.
 Public relation programs also use special events to celebrate happening such as a
groundbreaking and a ribbon cutting.
 In marketing public relation (MPR), special events are used to link companies and
brands to public events, issues or ideas that engage the interest of the public.
 Special events are not tied to any one marketing area but they combine many
traditional marketing communication activities.
 There are two levels at marketing communication involved in most events
1. The events itself
2. The media coverage of the events
 There are three reasons explain the industry growth.
1. Event tends to attract a homogeneous audience; that is appreciative of the
sponsor of the event.
2. Event sponsorship builds support from trade members and an employee; that is
the employees who manage the event may receive recognition and trade
members often participate in the event.
3. Event management; it’s simple because many of the elements can be
prepackaged, they can used the same group of people and the same plan to
manage many different events.

 Three pitfalls to event marketing exist:

1. If the match between the event and the company is poor, the benefit to the
company maybe small compared to the cost.
2. Many uncontrollable factors such as weather can influence an event.
3. Special events generally reach a smaller audience than mass media advertising.
L) Sports Marketing
 The fastest sponsorship category is sport marketing.
 The sponsor may sponsor a sporting event such as the Olympics and a stockcar
race.
 The athletes use the company’s product and appear in its ads and other marketing
communication program.
 A company may also sponsor a participants in a sporting events.
 Sports equipment manufacturers who promote their products are also considered
sports marketers.
 Sport marketing involve a variety of marketing communication activities, ranging
from celebrity endorsement to licensed premiums to advertising and public relations
activities.
 The value sports marketing is the boost such programs give to trade and employee
motivation.
 Marketers must understand the size and type of the sport event audience.

M) Cause Marketing
 The company earns the right to tell customer that the more of a company’s product
they buy, the more the cause will be benefit.
 Companies use cause marketing to do something good for the society, associate
themselves with a positive cause that will reflect well on their corporate image,
break through the commercial clutter and target a group of people relations spin.
 The cause marketing helps keep a company or brand top-of-the mind.
 It is often poorly integrated into a company’s overall marketing communication
program and may as a result be ineffective.
 In relatively short term, opportunistic and seen by more people as self-serving and
exploitive.
 The `strategic philanthropy` adds an element of trust to the relationship between
the company and its customer and other stakeholders.
 It provides a tool to create a truly integrated marketing program because it `foster
synergy among business units`.

Quotes

PR, PR, PR. Everybody chasing for PR. BUT PR cannot stand alone without
exertion, result and outcomes – Shamshul Anaz Kassim
Questions For Discussions

1. Compare and contrast between Public Relations (PR) and Marketing Public
Relations (MPR).

2. List and explain the various tools of Public Relations (PR).

3. The image is very important to various companies. Discuss.

CHAPTER 10: POINT OF PURCHASE (POP), PACKAGING AND BRAND NAME

10.1 DEFINITION
It refers to encompass displays, posters, signs and a variety of other materials that are
designed to influence buying decisions at the point of purchase. For example like at in-
store displays played a critically important aspect in attracting consumer’s attention to
trial-size samples of certain products.

10.2 PACKAGING AND BRAND NAME

Product feature play important sales in consumers purchase and repurchases decisions,
choice also are influenced by product between such as package shape, design, color
and brand name.

10.3 PACKAGING
 The packaging serve to:
1. Draw attention to a brand
2. Break through competitive clutter at the point of purchase.
3. Justify price or value to the customer
4. Signify brand features and benefit
5. Ultimately motivate consumer is brand choices.
 Packaging is particularly important far differentiating homogeneous brands from
available substitute
 A tendency for consumer to input characteristic from package of the brand is called
sensation transference.
 The nation underlying good packaging is gestalt, that is people nearest to the whale,
not
to the individual parts.
10.4 THE IMPORTANT OF PACKAGING
A) The Use of Color in Packaging
 Have the ability to communicate many things to prospective buyers including
quality, taste and the product’s ability to satisfy various psychological needs.
 The important role that color plays in affecting our sense
 The color of packaging because effective because color affect people emotionally

B) Design and Shape Cues in Packaging

 Communicate differences in the product to consumer.

o Design: - refers to organization of the element of a package

- Package designers bring various elements together in package to help
define a brand’s image
o Line of package: Horizontal line - suggest restfulness and evolving
feeling of targeting.
Vertical line - evolves feeling of strength confidence
and even pride.
Slanted line –suggest upward movement to most
people in the western world who read from left to
right and thus view slope lines as ascending then
descending.

o Shape: Arouse certain emotions and have specific connotations.

E.g. round, curving lone cannot-feminist, whereas sharp, regular lines
suggest masculinity.

C) Physical Material in Packaging

 Packaging material can arouse consumer emotion, usually subconsciously
Metal - strength
 Plastic - cannot newness, lightness, cleanliness
Soft - feminist
Foil - prestige
Wood - masculinity

D) Product Information a Package

 Product information refers to keywords a package, information and the back panel,
ingredient, warning, pictures and illustration.
 The words new improved and free frequently appear on package - stimulate
immediate trial purchase.

E) Evaluating the Package

View model:
V : Visibility - the ability of package to extract attention at the point of purchase.
I : Information - deal with product usage instruction, claimed benefit, slogan and
supplementary information.
E : Emotional appeal - ability of the package to evaluate a desired feeling or
mood
W : Work ability - in value how a package functions rather than communicate

10.5 BRAND NAMING

 It identifies the product and differentiate its from others an the market.
 Through brand name, a company can create excitement, elegance exclusiveness
and various sensory perceptions.

10.6 SELECTING BRAND NAME

 Distinguish the product from competitive brands
 Describe the product or its benefits
 Compatible with the product
 Memorable and easy to pronounce
10.7 POINTS OF PURCHASE SIGNS AND DISPLAYS
Variety that use the point use of purchasing communication
 Signs
 Mobile
 Plagues
 Banners
 Shelf tapes
 Mechanical mannequin
 Light
 Mirror
 Plastic

10.8 POINT OF PURCHASE GROWTH

 Companies are increasingly investing promotional dollars in point of purchase
materials.
 Impressive growth is due to the fact that point of purchase materials provides a
successful service for all participants in the marketing process.
 For manufacturer, point of purchase keeps the company’s name and the brand
name before the consumer and reinforces a brand image that has been previously
establish through advertising
 Point of purchase serves :
a) Retailers - by attracting the consumer’s attention
- increasing his or her interest in shopping
- extending the amount of time spent in the store.
b) Consumer - by point or purchase units the deliver useful information

10.9 FUNCTIONS PERFORMED BY POINT OF PURCHASE MATERIALS

 Informing
 Reminding
 Encouraging
 Merchandising

10.10 THE USE AND NONUSE OF POINT OF PURCHASE MATERIALS

 Why point of purchase material go unused
1. No incentive for the retailers to use certain point of purchase materials.
2. Some displays take up too much space for the amount of sales to generate.
3. Some materials are too unwieldy, too difficult to set up
4. Lack eye-appeal
 Ways to get retailers to use point of purchase materials
1. Point of purchase materials must be satisfy the retailer’s needs and the needs of
the retailer’s customer rather than just the manufacturer’s needs
2. Point of purchase materials must be designed so that:
 they are the right size and format
 they fit the store door
 they are’ user friendly’ that is easy for the retailer to attach or otherwise use.

Quotes

Groom yourself with POP, Packaging and Brand Name. Grooming comes with
victory. - Shamshul Anaz Kassim
Discussions For Questions

1. Why packaging is very important to the company?

2. How the company wants to establish its brand name ?

3. Point of Purchase (POP) is extremely growth in recent years. Discuss. How the
company serves to impressive their customers ?
CHAPTER 11 : MEDIA & VEHICLES

11.1 INTRODUCTION

Advertising industry terminology conventionally distinguishes between

advertising media and vehicles. Media are the general communication methods
that carry advertising messages such as television, magazines, newspaper etc.
Vehicles are the specific broadcast programs or print choices in which
advertisements are placed. For example, television is a specific medium, and
Gerak Khas, Edisi Siasat, Majalah Tiga, International Herald Tribune (IHT) are
vehicles carrying television advertisements. Magazines are other medium, and
Mastika, Malaysian Business, CLEO are vehicles in which magazine are placed.

11.2 PRINT MEDIA

Printed media has been used long time ago and dominated communication tools
before the emergence of the television and radio. Daily newspapers previously
are the primary source of information. Catalogs, telemarketing and infomercials
are gradually supplanting magazines as the media through which niche markets
learn about products. A study conducted shows that consumers consider print
ads more informative, more entertaining and less offensive than broadcast
commercials.

11.3 NEWSPAPER

Until the introduction of television, newspapers were the primary

source of news. Today the role and appearance of newspapers have
changed.

 Use of four-color presses and includes eye-catching charts and weather

maps.
 Emphasizing on `soft news’ such as entertainment, sports and travel over the
traditional `hard news’ such as politics, social issues and world events.
Newspapers are changing the way they deliver the news.

 Link customer through telephones and cable television hookups.

 Online newspaper including through the electronics catalogs.
 Allow readers to interact in different ways with the paper information database.

i) Newspaper Strengths
1. Serve as trusted source of local information for many consumers.
Sales promotion information and public relations information can all be
delivered through newspaper.
2. Market flexibility
Newspapers have the capability of reaching special-interest group, unique
ethnic or racial group, or even people living in isolated parts of the world
3. Lead time flexibility
Lead time is the amount of time between when an advertising must be
delivered to the medium and when it is actually run.
4. Large pass-along audience
A group of members share the newspaper such as family, railroad station and
professional offices.
5. Effectively combine local advertising or sales promotions with national
promotions
A local retailer can easily tie in with a national campaign by using a similar
advertising.

ii) Newspaper Weaknesses

1. Clutter
Advertising filled 65 percent or more of typical newspaper, it is difficult to
create awareness.
2. One-day life of a paper
One-day life of a paper means that a message has a very short time in which
to work.
3. Technical quality
Technical quality of newspaper which used porous paper and poor
reproduction of print and photography often mean that an advertising is
difficult to read.
4. High advertising rates
High advertising rates for national advertisers, newspapers remain an
attractive alternative for national advertisers.

11.4 MAGAZINES

Magazines are the most specialized of the mass media, dramatically

demonstrating the facts that the mass audience is becoming increasingly
segmented. A special interest magazine is a magazine published to reach specific
group of audience according to their interest and information needs.

There are three types of magazine on the basis of audience served; consumer
magazines, farm magazines and business magazines. Magazines also can be
classified into geographic content, demographics editions and editorial content.

i) Magazines Strengths
1. Highly segmented target audience
Ability to reach highly segmented target audience translated into absolute
cost for magazine promotions is fairly low.
2. Narrow targeting
Through selective binding, consumer magazine publishers will be able to offer
ultranarrow targeting previously available only through trade magazines.
3. Excellent visual quality
Magazines are printed on good paper and provide excellent photo
reproduction in either black and white or color.
4. Accommodate advertisers need and wants
Magazines can provides coupon distributions, special edition and prints
advertising of various sizes.

5. Reader involvement
People subscribe to magazines because they are interested in their content
and time spent reading the magazine is active involvement. Readers also do
not view magazine advertising to be as intrusive as advertising in other
media.

ii) Magazines Weaknesses

1. Difficulty of reaching a mass audience
Advertising in mass-audience magazines leads to waste circulation, high cost
per contact and limited premium location.
2. High clutter
Some of magazines consist of 70 percent advertising and 30 percent editorial
material.

11.5 BROADCAST MEDIA

Broadcast media refer to radio and television. Today some experts prefer the
term electronic in favor of the term broadcast because they believe its reflects
the technology in amore accurate manner and broadens its scope to include
computer generated message that are broadcast to mass audience.

i) TELEVISION

Television is a media that capable to send a communication message in text,

graphics picture and voice simultaneously. From the past, the television has
undergo through development to keep pace with current needs.
 Local Station and Network
Local station can be either independent or affiliated with a network. Network is a
program service with 150 or more hours of prime-time programming.

 Cable Television
Cable television originated because obstacle such as tall buildings, forests and
mountains prevented normal television broadcast signals for reaching potentials
viewers. The cable service builds a community antenna on a hill or tall structure
to pick up signals from conventional television stations.

 Public Television
Public television is previously not contained advertising. But they nowadays need
advertising to support financing the television station.

 Syndication
A network program that has run its course can be sold to a local station in
syndication. Syndicated program are either network shows that may still be
running or original programs produced for syndication.

a) Television Strengths
1. Create an impression on consumer minds
Television combining moving pictures, voices, music and convincing acting. It
has the capability to run the entire gamut of human emotions.
2. Wide market coverage flexibility
Allow the marketing communicator to reach the entire country or even other
country.

3. The important role television plays in culture

For many people, television is the primary, most reliable source of
entertainment, news and sports.
4. Ability to deliver well-defined audiences
There are remarkable similarities in the characteristic of viewers. Each of
television programs usually develops to meet prior defined audience.

5. Medium for delivering variety of communication tools.

Besides delivering advertising message, television also can deliver sales
promotion, public relations and personal selling.

b) Television Weaknesses
1. High cost
Cost of advertising is still high and only a few promoters can afford national
television.
2. Clutter
Too much advertising can caused cluttering which effectiveness will
decreased.
3. Not suitable to all types of product
Television doesn’t work with product that are unattractive, cant be
demonstrated or that do not hare inherent emotional characteristic or
emotional associations.

ii) Radio

Radio is a media used to transmit verbal communication only. The transmissions

used transmit signals via amplitude modulation (AM) or via frequency modulation
(FM). The signal can travel from 40 miles up to 700 mile.
.
Network radio is the traditional line networks interconnected by AT&T circuits,
for example is CBS. Network programming is limited in time, station usually
belong to more than one network, each providing specialized programming to
complete a station schedule.
Today radio talk shows, call ins, advice shows and the creation of local radio
celebrities draw listeners everywhere. Because that, radio is become important
media in promotion and communication for marketers.

a) Radio Strengths
1. High selective audience at very low cost
Radio can reach high number of audience at very low cost compared to other
media. It is one of a media that can allow market penetration and high
repetition.

2. Very flexible medium

A radio station is tolerant of last-minutes changes, unusual formats, mobile
hookups and so forth. This adaptability makes radio appealing to a wide
variety of companies and business.

3. Provides immediacy
Radio provides immediacy because it is constantly delivering the latest news,
time and weather, so the audience actively and constantly listens to the
radio.

4. Encourage imagination and imagery

Marketing communicator encourage imagination and imagery, radio can do
an excellent job of creating high interest of involvement.

b) Radio Weaknesses

1. Passive medium
Radio is viewed as a passive medium because its provides only sound and
people tend to have the radio on while they are doing other thing.
2. Low recall of message content
People have low recall on the radio message content compared with
television message, except for high interest message.

3. Not appropriate for all types of product

Radio is not appropriate with certain product that are difficult to visualize or
that are used infrequently or to reach a national audience simultaneously.

11.6 OUT-OF-HOME MEDIA

Out-of-home media refers to all media that carry message where the message or
the consumer is on the move or mobile. Relatively a minor medium that
supplements prints or broadcast.

11.7 OUTDOOR MEDIA

Outdoor advertising represents the oldest medium because it is a distant cousin

of the sign. There are three primary types of advertising:
1. Posters
Advertising message on poster is usually lithographed on sheets of paper and
then posted on some structure.

2. Painted bulletins
Painted bulletins are changed two or three times a year and can also be
painted on walls as opposed to structures such as billboards. Some bulletins
can provide a three-dimensional effects and most bulletined are illuminated.

3. Spectaculars
Spectaculars are large, illuminated and often animated sign in special high
traffic location.
a) Outdoor Media Strengths

1. Quick association
By combining color, art, and short copy, outdoor advertising can quickly
create an association with a particular brand.

2. Provides repetition
A product or service advertised in busy crossroad, audience sees the
advertising again and again. The more often the idea is repeated, the more
likely it is to be retained.

3. Immediacy
Immediacy and can be located in the neighborhoods that are most relevant
to the marketing communicator.

4. Reasonable cost
The cost per billboard in a major metropolitan area is quite low.

5. Size
Outdoor advertising gains attention through sheer size

b) Outdoor Media Weaknesses

1. Short message
Outdoor copy must be because it is perceived while the audience is on the
move.
2. Uncontrollable factors
Many uncontrollable factors may lessen the effectiveness of outdoor
advertising such as sign, trees, structures, traffic signals and others.
3. Limited location
Good locations usually are limited and need to compete for better location.
4. Ecological nuisance
Many people view outdoor advertising as an ecological nuisance.

11.8 TRANSIT MEDIA

Transit media is advertising carried by bus, subways, rapid transit and commuter
vehicles. Transit media is consider as minor medium but consumer has a
relatively longer time to look at transit message compared to outdoor
advertising.

There are three primary types of transit advertising:

1. Car cards
The cards are placed inside the vehicles along each side above the windows.
2. Outside displays
Exterior travelling displays are located on buses and taxi.
3. Station posters
A mini billboard is located at bus, railroads, subway and air terminals.

a) Transit Media Strengths

1. Inexpensive medium
Transit poster offers a relatively inexpensive medium for reaching a variety of
locations.
2. Flexible and attractive
Several techniques make the medium flexible and attractive, including
backlighted display, curved frames, optical effects and take one poster.
3. As a reminder
Transit promotion can serve as types of reminder advertising in conjunction
with other media.
b) Transit Media Weaknesses
1. Short message
Transit card must carry relatively short and concise message.
2. Hard to attract and retain
Audience attention may hard to attract and retain the message because of
the many distractions.
3. Space
Transit space is not available in all markets.

11.9 SUPPLEMENTAL AND NEW MEDIA

In media plan, several supplemental new media are used to support primary
media. Their intent is to reinforce the primary idea and reach the target audience
at time when primary media cannot.

 SUPPLEMENTAL MEDIA

Specialty advertising, in-store media, telemarketing and direct mail is an

alternative supplemental media. These media intended to create last minute
reminder information through a pen or a sign. Directories represent an important
supplemental medium, especially to local business. Directories cam be industry
specific, product specific or target market specific.

The other supplemental media includes advertising spliced onto videotaped

movies, advertising on videocassettes, advertising sends via fax, advertising
shown in movie theaters or in flight movies, advertising on computer disk or CD-
ROM, advertising that are implicit by placing a product in a movie or TV show
and advertising found in changing room, bathroom stalls and brochures hung on
door knob.
i) Supplemental Media Strengths
1. Less expensive than other primary media.

ii) Supplemental Media Weaknesses

1. Lack of market coverage.

11.10 NEW MEDIA

The emergence of digital interactive technology is the most dramatic

breakthrough in media development during the last decade. This new technology
of media is the new wave of the future and affected the conventional
advertising. But it is uncertain how relevant this media will be in the immediate
future.

11.11 MEDIA PLANNING PROCESS AND STRATEGY

To create a plan, the media planners should plan, evaluate and select the
communication channels in which the message want to deliver to target
audience. The place of media planning and process of media planning and
strategy as follows :

Marketing Plan Marketing Mix Marketing Communication

Plan

IMC Mix Creative Plan

Implementation
Media Plan

The Place of Media Planning

Source : John Burnett et.al , Introduction to Marketing Communications, 1998
The marketing strategy provides the driving and direction for the select of
advertising and media strategy. The advertising strategy consist of objectives,
budget, message and media strategy where portray the entire marketing
strategy. The media strategy consist of four main activities such as target
audience selection, objective specification, media and vehicle selection and
media buying. Those four elements are important to produce the entire package
of media planning process. The diagram of media planning process as follows :

Marketing Strategy

Advertising Objectives Advertising Budget Message Strategy Media Strategy

 Target Audience
 Objective Specification
 Media and Vehicle Selection
 Media Buying

OVERVIEW OF MEDIA-PLANNING PROCESS

Source : Terence A. Shimp, Advertising and Promotion, 2000

11.12 SELECTING AND SEGMENTING TARGET AUDIENCE

The media planner should consider on the target market or target audience. The
right measurement in choosing target audience will affect the positive result to
the organization. In segmenting target audience, four factors are normally used
such as geographic, demographic, product usage and psychographics/lifestyle in
order to appeal the target audience.

11.13 SPECIFYING MEDIA OBJECTIVES

There are five media objectives, namely :

a) Reach
The number of people or households exposed to a particular media vehicle (such
as a specific magazine or TV program) or media schedule (the total number of
vehicles across a period of time) at least once during a specific time period
(usually weekly or monthly).

b) Frequency

The number of times within a given period that a consumer is exposed to a

message (usually figured on a weekly and/or monthly basis.

c) Weight

The two measures, reach and frequency can be combined to get weight, called
gross rating point (GRP). GRP is derived by multiplying reach by frequency. For
example Majalah Tiga has an audience of 500,000 viewers and TM Net advertise
five times during the program. So, the GRP will be 2,500,000 (500,000 x 5).

d) Continuity

It is a media planning consideration that involves the matter of how advertising

should be allocated during the course of an advertising campaign and has to do
with timing.

e) Continuous

A continuity pattern called for if the audience constantly needs to be exposed to

the message because of the nature of the product and excessive competition. It
is usually used for food products, laundry detergents etc and requires large
media budget.

f) Flighting

A continuity pattern that calls for heavy scheduling during shorter time periods in
order to increase rate and frequency with the hope that these effects will carry
over into longer time periods. It is appropriate for seasonal products such as
hotel.

g) Pulsing

A combination of continuous advertising and flighting, with continuous

advertising emphasized during the best sale months. This continuity pattern
tends to minimize waste and thus represents the best of both techniques. It is
suitable for products that are sold year-round, but it has heavy sale at certain
period of the year such as stationery, text books etc.
h) Cost Per Thousand (CPM)

An abbreviation for cost per thousand, in which the M represents the roman
numeral for 1,000. It is the cost of reaching 1,000 people in the medium’s
audience.

Example :

Magazine A is read by 200, 000 people and costs RM 40,000 for a full-page, 3
color advertisement. Magazine B reaches 150, 000 and costs RM 30,000 for a
full page, 3 color advertisement. Holding all other factors constant, in which
magazine would you choose to advertise ?

Answer :

CPM (Cost Per Thousand) is the basis for comparing the two magazines. The
CPM for Magazine A is RM 200.00 (RM 40,000 / 200,000 x 1000) AND the CPM
for magazine B is RM 300 (RM 30,000 / 100,000 x 1000). Magazine A is the
better bargain.

i) Cost Per Thousand – Target Market (CPM-TM)

A refinement of CPM that measures the cost of reaching 1,000 members of the
target market, excluding those people who fall outside of the target market. In
another word, it is the cost computations that include an audience adjustment.

Example :

A TV Program has a rating of 20.5 with approximately 27 Million TV households

in Malaysia as of 2003. What is that program’s CPM if a 30 second commercial
costs RM 450,000 ? Now assume that an advertiser’s target audience consists
only people aged 25-55, which constitute 62 percent of the program’s total
audience. What is the CPM-TM in this case ?

Answer :

A rating of 20.5 means that the program is watched in 20.5% of the 27 million
households that have TV, or approximately 20.5 million households. The cost of
the 30 second ad is RM 450,000. Therefore, the CPM (Cost Per Thousand) is
(RM 450,000 / 5,535,000) x 1000 = RM 81.30.
j) Gross Rating Point (GRP)

The combined measure of reach and frequency that reflects the total weight of a
media effort. It is derived by multiplying reach times frequency.

Quotes

Media is the most powerful tools. Use it wisely.

- Shamshul Anaz Kassim
Discussions For Questions

1. Discuss the meaning of media ?

2. What do you understand of vehicles ?

3. Discuss how media and vehicles differs from other elements of the
promotional mix. Identify a product, service or cause that has been
negatively or positively affected by media and vehicles in recent years.
Analyze the response process the company or organization took to deal
with the problems or opportunities created by the media and vehicles.

4. REMAJA is read by 400, 000 people and costs RM 80,000 for a full-page, 3
color advertisement. Magazine B reaches 200, 000 and costs RM 60,000
for a full page, 3 color advertisement. Holding all other factors constant,
in which magazine would you choose to advertise ?

5. A TV 8 has a rating of 25.5 with approximately 27 Million TV households in

Malaysia as of 2003. What is that program’s CPM if a 30 second
commercial costs RM 500,000 ? Now assume that an advertiser’s target
audience consists only people aged 25-55, which constitute 70 percent of
the program’s total audience. What is the CPM-TM in this case ?
CHAPTER 12 : INTERNET MARKETING

12.0 Definition of Internet

It is a worldwide of exchanging information and

communicating through a series of interconnected computers.

12.1 The Internet Features

NO. FEATURE USE

1. ELECTRONIC MAIL (e-mail) Sending electronic mail
anywhere in the world.
2. Usenet Discussion groups,
newsgroup and electronic
bulletin boards, similar to
those offered by online
services.
3. Telnet Online databases, library
catalogs and electronic
journals at hundred of
colleges and public
libraries.
4. File Transfer Protocol (ftp) or hypertext The ability to transfer
transfer protocol (http) files from one mainframe
computer to another.
5. Client server Allows for the transfer of
files from one mainframe
computer to another.
6. Gopher A document a retrieval
system used to search
for information.
7. Wide area Information server (WAIS) Enables one to use
keywords in specific
databases and retrieve
full text information.
8. World Wide Web (WWW) Same thing as gopher
and WAIS, but the
different is combination
of sound, graphic image,
video and hypertext on a
single page.
12.2 INTERNET TERMINOLOGY

NO. TERMS MEANING

1. Browser A graphic interface that provides simple access to
documents on the world wide Web (for example,
Netscape is a browser).
2. Surfing Slang word used to describe the act of searching for
information on the Web.
3. Homepage The first page on a Website.
4. Website The entire set of links that comprise the information
compiled by a company, organization or individual.
5. URL Uniform resource locator – the ‘address’ that tells the
browser the specific place you want to go. It usually
starts with http://, Telnet, gopher or ftp.
6. Links On Web documents, links are shaded or colored
differently from text; when a link is selected, the
browser will clear the window and retrieve the link
document.
7. Provider The company or institution that owns the server that
you are accessing and regulates the access. It usually
charges, user fees.
8. HTML Hypertext markup language; the language used to
create Web pages with graphic, links and text.
12.3 INTERNET INFORMATION, COMMUNICATION AND EDUCATION
(ICE)

The most useful profile of Web users determine highly with other studies of why
users access the internet for information, communication and education as
follows :

PERCENTAGE (%)
Information
80
Access
70
Communications
60
50 Education
40
30 Advertising &
Marketing
20
Entertaintment
10
0 Buying & Selling
Under 30 to 50 and
30 49 older
Banking
AGE
Community
Users of All Ages Value the Internet’s
Services
Information, Communication and Education (ICE)

Adapted : American Demographics, July 1996, p.52

Source : Advertising and Promotions (An Integrated Marketing
Communications Perspective), George E. Belch and Michael A.
Belch, 1998
12.4 INTERNET OBJECTIVES

a) Primary Objective

The primary objective advertising on the Internet is to generate sales directly.

b) The general objectives on the Internet as follows :

 Disseminating information in order to provide in depth information about a

company’s products and services.
 Creating awareness of an organization as well as its specific product and
service offerings.
 Gathering research information where the users used to gain audience profile
information.
 Creating an image to posses an image of the organization or company.
 Stimulating trial where organization or company offer electronic coupons to
attempt to stimulate trial offerings.

12.5 ADVANTAGES AND DISADVANTAGES OF INTERNET

ADVANTAGES DISADVANTAGES
1. Specific target group. 1. Measurement problems.
2. Message tailoring. 2. Audience characteristics.
3. Interactive capabilities 3. WebSnarl where time required to
access.
4. Information access 4. Clutter.
5. Sales potential 5. Potential for deception.
6. Creativity 6. Costs.
7. Market potential 7. Limited production quality.

12.6 INTERNET ADVERTISING WITH OTHER PROMOTIONAL TOOLS

a) Sales Promotions

Internet offering variety of sales promotions. For example like coupons, recipes
and sweepstakes entries.
b) Public Relations

Currently, most companies offer seminars and other forms of information content
such as Guinness allows users to download its latest TV commercial to use as a
screensaver to enhance its goodwill.

c) Personal Selling

For personal selling, the companies can effectively used internet to generate
quick selling, identify customer inquiries and response.

12.7 E-COMMERCE

Nowadays, the growth of internet has led to a critical mass of consumers and
firms participating in a global online market or E-commerce.

12.8 DEFINITION OF E-COMMERCE

It can be defined as the application and information sharing technologies among

trading partners to the pursuit of business objectives. According to Hoffman and
Novak (1999); E-Commerce can be defined as strategic deployment computer
mediated tools and information technologies to satisfy business objectives.

12.9 MAJOR ACTIVITIES OF E-COMMERCE ON MARKETING SYSTEM

The major activities of E-Commerce as follows :

 Bringing products to market

 Matching buyers with sellers (e.g. electronic malls)
 Communicating with firms/institutions in pursuit of commerce
 Deliver electronic goods (e.g. information)

The most important technologies for E-commerce to communicate are

streamlining processes, interconnectivity, Internet, electronic data interchange
(EDI), electronic funds transfer, e-mail, security, electronic document
management, workflow processing, middleware, bar coding, imaging, smart
cards, voice response and networking (MIRL, 1999).

12.10 THE IMPORTANCE OF E-COMMERCE TO MARKETING

COMMUNICATIONS

The importance of E-Commerce to marketing communications in order to

promote their products and services are as follows:
 Everybody and every organization will be connected.
 The connections to communicate will be at very high bandwidth rate, greater
than a billion bits per second and capable to carry out interactive multi-media
transactions.
 Cheap, high speed computation and low-cost of coordination transactions.
 A market choice box will serve as the ‘middlemen’ between the consumer and
the organizations.
 It will be no market access favoritism.

12.11 ADVANTAGES AND DISADVANTAGES OF E-COMERCE

NO. ADVANTAGES DISADVANTAGES

1. The consumer will have free market The producers must ensure the
access. production supply is stable to meet
consumer demand.
2. Reduced costs to consumers from The marketing infrastructures and
increased competition in logistics must be adequated and
procurement. ready to handle fast order and on-
tome delivery.
3. Lower coordination cost throughout The security purpose of financial
the industry value chain. information transmitted over the
Internet and the impact on
consumer willingness to buy or sell
products.
4. Lower physical distribution costs. Cultural barriers between buyers
and sellers.

Quotes

Life is getting mobile and wired. - Shamshul Anaz Kassim

Discussion For Questions

1. Differentiate between internet and e-commerce.

2. Why is internet and e-commerce playing important role in any business

organization ?

3. Recently internet and advertising for on-line companies is leading to a

new creative revolution in advertising. Do you feel advertising for various
dot.com and on-line companies is leading to a new creative revolution in
advertising. Why or why not ?
CHAPTER 13 : APPROPRIATION AND BUDGET

13.1 APPROPRIATION AND BUDGET

An appropriation can be defined as the maximum amount of money that

management allocates to a specific purpose. Meanwhile a budget is the further
of how the sum of money will be used. The two terms are often used in the
interchangeably by many marketers. An integrated approach in budgeting is
important in achieving an integrated marketing communication (IMC) where each
of the promotional tools managers should work together as one to combine their
effort so as to achieve synergy. One of the approaches is practiced, the money
being spent for promotion will be regarded as an investment and it should be
understood that result couldn’t be measured immediately the benefit will be
enjoyed in the long run.

13.2 BUDGETARY METHODS

There are two (2) main methods that are commonly used by many companies.
They are: -

(1) Predetermined budgetary methods

(2) Strategy-Based Budgeting methods

i) Predetermined Budgetary Method

There are four (4) techniques used under these techniques. They are: -
(1) Percentage-of-sales, (2) Unit-of-Sales, (3) Competitive Parity Method,
(4) Affordability

(a) Percentage-of-sale method

For this method, a company will sets the communications appropriation,
per say the advertising, as a fixed percentage of past or anticipated sales.
For example, if the company allocates certain percent such as 4% of the
 anticipated sales to the promotion (e.g. point of purchase, advertising)
and the next year projected sales will be RM 2 million, so the budget will
be RM 80,000.

Appropriation = f (Past/ Anticipated Sales)

For conclusion, the more the company sold last year, for example
the more money it has available for marketing communications this year.

(b) Unit-of-Sales method

For this method, it is similar to the percentage-of-sales method. But the
company is using the physical volume of either past or future is used
instead of dollar sales.

(c) Competitive Parity Method

For many companies, they set the amount that will be spend on the
promotion but based on their competitors expenditures. But for these
techniques, it is not usually used in the isolation of others; instead it is used
together with other budgetary methods. For the companies that used this
method normally aware on the existence of the competitors.

(d) Affordability
Meanwhile for this method, the amount left over after all the other
relevant company expenditures are paid is used for the promotional
appropriation. But normally it is used for new introduced product.
Moreover smaller companies use it.

ii) Strategy-Based Budgeting Method

The strategy-based methods are all based on the strategy of marketing

communication itself. The four strategy-based budgetary methods are: (1) the
objective task, (2) mathematical model, (3) experimental, and (4) payout
planning methods.
(1) Objective-Task
With this method, the marketing communication manager first studies the
market and product thoroughly to set logical marketing communications
objectives. After setting the objectives, the marketing communicator determines
how much money will be necessary to achieve them. The advantages are:
a) It develops the budget from the ground up, so that objectives are
implemented strategically which does not rely on factors outside the
control of the decision-maker, such as past sales or competitor’s spending.
b) The task method works well for new product launches, when advertising
must be developed more or less when the firm makes major changes in
the marketing communication program for established products.
Meanwhile the drawback of objective task method is its result is only as good as
the stated objectives and the accuracy assigned to each objective. If done
poorly, the budget and the marketing communication fare poorly.

(2) Mathematical Models

Mathematical models have not been widely accepted because of some reasons:
a) They require experimental and formal analysis techniques beyond the
capabilities of many companies.
b) The process is time-consuming and expensive.
c) Models from other fields have not been successfully modified to apply to
marketing, and little agreement exists as to the reliability of the marketing
communication budgeting models.

(3) The Experimental Approach

The marketing communication manager uses tests and experiments for different
marketing communication budget options in one or more markets areas and uses
the results to guide budget decision. For instance, a product might be tested
simultaneously in several markets with a similar population, brand usage level,
and brand share. This technique eliminates the problems associated with the
other budgetary approaches. The major drawbacks are the time expense
involved in getting the data and the difficulty of controlling the environment.

(4) Payout Planning

It is often used with other budget-setting methods to assess the investment
value of the marketing communication. It projects future revenues generated
and costs incurred, usually for two-or three year period. Its purpose is to show
what level expenditures needs to be made, what level of return might be
expected, and what time period is necessary before the return will occur. Many
marketing communicators believe that this is useful for newly introduced product
with a commitment to invest heavily in marketing communication.

13.3 FACTORS AFFECTING BUDGETARY DECISION

Whether the firm that is spending thousands or millions dollar, the budgeting
decision will give an impact on the success of the communications programs. But
still there are some factors that must be considered by the budget planners that
can affect the amount of expenditures to be allocated on the marketing
communications. Factors that need to be considered are: -
 The product
 The number of promotional tools to be used
 The tasks to be undertaken by the tools
 The degree of competition in the market place
 The financial condition of the company

Moreover, in deciding the amount of money to allocate to marketing

communication, the decision-maker should evaluate the key situation factors.
Which factors are influential depends on whether the marketing communicator is
a manufacturer, a retailer, or a direct marketer.
13.4 SITUATIONAL FACTORS INFLUENCING THE MANUFACTURER
Manufacturers consider the following 6 factors when determining the marketing
communication appropriation:
a) The product, including its type, stage in the life-cycle, and strategic
components
b) The market
c) The competition
d) The financial condition of the company
e) Research guidelines
f) The distribution system

13.5 Situation Factors Influencing the Retailer

Many of the factors mentioned above influenced retailers as well as
manufacturers. However, retailers who engage in budgeting must also consider
these 7 factors:
a) Age of store: New stores require more advertising
b) Location of store: Bad locations may require more promotion
c) Merchandising policies: Discount stores usually need a greater amount of
mass selling to turn over product
d) Competition: The greater the level of competition, the more promotion is
needed
e) Media availability: The size of community often dictates the type and
extent of the media that can be employed
f) Size of the trading area: Marketing communication tends to increase with
market size
g) Support from the manufacturer: Manufacturers may provide retailers with
advertising support, point-of-purchase displays, sales training, and other
promotion support that will reduce the expenditures required of the
retailers.
13.5 Situational Factors Influencing the Direct Marketer
There are also a number of situational factors that affect the direct marketer’s
budget allocation.
a) The database: The more specific and the more frequent the update of the
database, the more it will cost
b) The role of technology: Using new technology, such as interactive and
artificial intelligence, will add risk and expense
c) Legal implications: Several direct-mail techniques, especially telemarketing
and direct mail, are heavily legislated. Compliance with these laws add
greatly to the expected expense.
d) Location of target audience: Delivering a direct-marketing message
usually is more costly the further it has to travel or the more isolated the
recipient.
e) Direct marketing via retailing: Factory outlets are like direct marketing and
must consider the same factors found with retailing.

13.6 WHY BUDGETING IS DIFFICULT?

Budgeting decision is not a trivial matter. In fact, it is one of the most difficult
decisions in marketing communications. Why is this so? Part of the reasons:
 It is difficult to evaluate the effectiveness of the promotional tools used
 Changes in sales may be affected by many factors, not only one promotional
tools used. It may also be influenced by other marketing mix.
 To come out to an agreement of a budget is also difficult since each unit in
an organization view the budget in different perspective.

Marketing communication budgets are normally will be budgeted for on an

annual basis and they are put forward for approval before the start of the
financial year. For all companies, they want good results from the promotional
expenditures, but they never be sure whether it is the correct amount to
marketing communication. Many marketing communicators agree that budgeting
to one of the most difficult promotional decision to make.

Quotes

The right way to hunt your ‘lights’ is budget, budget, budget.

– Shamshul Anaz Kassim
Discussion for Questions

1. List and explain the factors of affecting budget ?

2. Why budgeting difficult ?
3. Discuss the budgetary methods that can be used by the company or
organization ?
CHAPTER 14 : PLANNING OF IMC

14.1 INTRODUCTION

This chapter is to reiterate on how all the things that will be used to generate a
commitment, consistent, creative and integrated messages which will help the
company to achieve the objectives, mission and vision via the medium use of
IMC.

14.2 MEASURING EFFECTIVENESS PROGRAMS

In measuring the effectiveness programs is through research, review the internal

message, get externally focused, know the customers needs and wants, identify
the best integrated marketing communication (IMC) plan, review the
communication process, known well of positioning and survey the external
perception of customers and public.

Marketing communication budgets are normally will be budgeted for on an

annual basis and they are put forward for approval before the start of the
financial year. For all companies, they want good results from the promotional
expenditures, but they never be sure whether it is the correct amount to
marketing communication. Many marketing communicators agree that budgeting
to one of the most difficult promotional decision to make.

Quotes

Review your life plan by mediation and meditation.

– Shamshul Anaz Kassim
Discussion For Questions

1. How you want to produce the appropriate IMC plan ?

2. What is the key elements of measuring effectiveness programs of IMC ?

3. Assume that UiTM is currently undertaking a huge marketing

communications campaign targeted to high school students. Explain how
UiTM might use all marketing communication tools to increase enrollment.
REFERENCES

1. Advertising, Promotion and Supplemental Aspects of Integrated Marketing

Communications, 4th Edition by Terence A Shimp, 2000 ; The Dryden
Press.

2. An Integrated Marketing Communications Perspectives, 4th Edition by

George E. Belch et. Al, 1998 ; Irwin/McGraw-Hill.

3. Introduction To Marketing Communications : An Integrated Approach,

1998 ; Prentice Hall.