UNIT – V

MARKETING RESEARCH & TRENDS IN MARKETING

PART A – 2 Marks

1) What is ethics in marketing? (May/Jun 2014)

Ethics in marketing means objective concern for the consumers or user of

product and services, i.e. for the welfare of society that prevents or limits
individual and corporate behaviour from unethical practices such as unfair
trade practices, restrictive trade practices, pollution of environment and so on.

2) Write short notes on the trends in online marketing? (May/Jun 2014)

 Mobile-optimization will become more important than ever

Optimizing for mobile has been a significant priority for businesses in

2014, but 2015 will be the year that mobile strategies move beyond simply
having a responsive site or mobile app, and focus on mobile-optimized
content and social media marketing as well.

 Social media ad spend will sharply increase as brands realize the

importance of social media marketing

In the first part of 2014, we saw Facebook reporting increased ad

revenue (10%) over the previous fiscal period. As organic post reach
continues to fall, and as Facebook restricts what types of posts can be
shown in users feeds, paid advertising is only going to increase as
businesses struggle to maintain traffic and sales from social media
channels.

 Content marketing will be (even) bigger than ever

According to the B2B Content Marketing Benchmarks report, 93% of

B2B marketers said they used content marketing in 2014, and 42% said
they considered their strategy effective (up from 36% last year).
3) What is meant by relationship commitment?

Relationship commitment is defined as an enduring desire to maintain a valued

relationship. A strong commitment to a relationship develops if the relationship
is mutually beneficial to the parties. A committed partner believes the
relationship has value and is willing to work at preserving it. This is especially
true of relationships with supplier’s intermediaries.
4) Internal marketing enhances relationship building - How?
Marketers who stress service quality and relationship marketing strive to
manage the service encounter. This is because the customer’s evaluation of
service quality and the building of a positive relationship between the customer
and the organization are highly dependent on what takes place during the
service encounter. Internal marketing is important in improving the service
employees provide, which in turn improves relationship with customers.
5) What is marketing research?

Marketing research is the systematic and objective process of generating

information for use in making marketing decision. This process includes
defining the problem and identifying what information is required to solve the
problem, designing a method for collecting information, managing and
implementing the collection of data, analyzing the result, and communicating
the findings and their implications.

6) Define MIS.

“A marketing information system is a continuing and interacting structure of

people, equipment and procedures to gather, sort, analyze, evaluate, and
distribute pertinent, timely and accurate information for use by marketing
decision makers to improve their marketing planning, implementation and
control.
7) What is meant by brand equity research?

Brand equity research measures the breadth and depth of brand power in your
target markets. We use both standard and custom tailored brand equity survey
measurements. A key to research design is the goal of a brand equity
measurement study.

8) Define E-Commerce.

E-commerce involves the exchange of products, services, information and

payment through the electronic medium of computers/networks. In other
words, e-commerce means business done online. E-commerce results when a
firm connects its business systems to its customers, distributors, vendors, and
suppliers-via Intranets, extranets, and the Internet/web. E-commerce is the
umbrella term for the entire spectrum of activities such as electronic data
interchange (EDI), electronic payment system, order management, information
exchange and other business applications, with electronic/ paperless
documentation.

9) Write short notes of cause related marketing.

Cause Related Marketing is defined as (A) strategic positioning and marketing

tool that links a company or a brand to a relevant social cause or issue, for
mutual benefit. A commercial activity by which business and charities or
causes form a partnership with each other to market an image, product or
service for mutual benefit.

It occurs when the charitable contributions of a firm are tied directly to the
customer revenues produced through the promotion of its products.

10) Write the importance of marketing in retailing. / What are the new
trends in retailing in present market? (Apr/May 2015)
 Form: First is utility regarding the form of a product that is acceptable to
the customer. The retailer does not supply raw material, but rather offers
finished goods and services in a form that the customers want. The
retailer performs the function of sorting the goods and providing us with
an assortment of product in various categories.
 2. Time: He creates Time utility by keeping the store open when the
consumers prefer to shop. Preferable shopping hours.
  3. Place: By being available at a convenient location, he creates place
utility.
 4. Ownership: Finally, when the product is sold, ownership utility is
created.
 5. Arranging Assortment: Manufacturers usually make one or a variety
of products and would like to sell their entire inventory to few buyers to
reduce costs. Final
11) What is MIS? (MAY/JUNE – 2016)

MIS stands for management information system. Business managers at

all levels of an organization, from assistant managers to executives, rely on
reports generated from these systems to help them evaluate their business'
daily activities or problems that arise, make decisions, and track progress
12) How do we measure advertisement effectiveness? (MAY/JUNE – 2016)

Measuring advertising effectiveness is not easy. Sometimes, the results of

measuring are just better guesses. Still, it is much better this way than not to
adress this problem at all. There are dramatic differences in the
effectiveness of various forms of advertising. If you pay for advertising, then
it is probably important for you see some results. But if you waste money on
inefficient advertising, you are missing better opportunities and the results
may not come at all.
The basics of measuring effectiveness
Our main objective in measuring advertising effectiveness is to
determine the effect of each advertising campaign from the results of our
measuring and compare it with its price. Then we can decide which campaigns
bring the best value for the money spent.
It is also important to realise the various factors influencing advertising. The
medium, ad copy (exact wording), the format, audience (is the ad well aimed
to the people who use our products?) – all of this effects the final success of the
campaign. Therefore, it is necessary to judge the effectiveness in context.
Before we start, we need to decide which criteria are we going to monitor.
These will differ with respect to the medium used, our possibilities, the
purpose of the ad etc.
Examples of possible criteria are:
 customers tell how did they learn about us
 increase in sales of the promoted goods
 more calls to our toll-free line
 calls to a campaign-specific phone number
 specific codes applied by customers to receive offered discount (i.e.
„Tube“)
 redeemed coupons or vouchers that were given out at a campaing
 increased visits on our website
 other metrics from our website statistics (i.e. orders amount) – see below
It is best to combine several criteria, because a customer can for example
either contact you by calling your line or by sending you an email. Also, accept
the fact, that we are not going to be able to measure everything. Especially
if you run several campaigns in various media simultaneously, it may be
difficult to ascribe the measured effects to a specific campaign. This can be
helped by careful choice of criteria or by running campains seperately (though
it is not always desirable). Contrary to traditional media, online campaigns
are usually very easily traceable and can be measured well.
Small companies will probably not use the methods of big corporations (ad
recognition or recall) which are based on questioning samples of people once
the campaign has ended. This would be too costly for small advertisers.
Instead, you can simply judge the impact by how many people has the medium
reached (viewers, readers, listeners) and comparing how much did it cost to
reach thousand people (this is called CPM).

PART B – 13 Marks
1) What are the steps in the marketing research process? (Nov/Dec 2012)
(Apr/May 2015) or Write about Marketing research process? (MAY/JUNE –
2016)
Stage 1 : Defining The Problem
The idea that problem definition is central to the marketing research process is
so obvious that its importance is easily overlooked. Albert Einstein noted
that .The formulation of a problem is often more essential than its solution.
This is valuable advice for marketing managers and researchers who, in their
haste to find the right answer, may fail to ask the right question. Too often,
data are collected before the nature of the problem has been carefully
established. Except in cases of coincidence or good luck, such data will not
help resolve the marketer's difficulties. Researchers are well advised to
remember the adage .a problem well defined is a problem half solved..
Problem definition : The crucial first stage in the marketing research process.
determining the problem to be solved and the objectives of the research.
Problems Can Be opportunities : On many occasions, the research process is
focused not on a problem but on an opportunity. For example, a toy maker who
has developed a fabulous new item might face the .problem. of determining
what age groups will most likely want the toy or which advertising media are
the best to use. In this happy circumstance, the problem definition stage of the
research might well be called the opportunity definition stage. The point is that
the problems addressed by marketing research are frequently good problems
and not disasters.
Don't Confuse Symptoms with the Real Problem : There is a difference between
a problem and the symptoms of that problem. Pain, for example, is the
symptom of a problem. The cause of the pain, perhaps a broken leg, is the
problem. In marketing, falling sales are symptoms that some aspect of the
marketing mix is not working properly. Sales may be falling because price
competition has intensified or because buyer preferences have changed.
Defining the general nature of the problem provides a direction for the
research.
Stage 2 : Planning The Research Design
After researchers have clearly identified the research problem and formulated a
hypothesis, the next step is to develop a formal research design. The research
design is master plan that identifies the specific techniques and procedures
that will be used to collect and analyze data about a problem. The research
design must be carefully compared to the objectives developed in Stage I to
assure that the sources of data, the data collected, the scheduling and costs
involved, and so on are consistent with the researcher’s goals.
At the outset, the researchers should determine if the data they need have
already been generated by others or if primary research is required.
Research Design Using Secondary Data : As we have mentioned, data already
in the researcher's decision support system or in the library may provide an
adequate basis for a formal research effort. For example, a marketer of mobile
phones might know that sales of this products showing regular increase in the
numbers. A comparison of past sales record will verify it. In this case, the
research design involves the analysis of secondary data only.
Research Design Using Primary Data : Researchers who find that no
appropriate secondary data are available can choose from three basic
techniques for collecting primary data; surveys, observation, and experiments.
Stage 3 : Selecting a Sample
Once a researcher has determined which research design to use, the next step
is to select a sample of people, organization, or whatever is of interest. The
methods for selecting the sample are important for the accuracy of the study.
Sampling : Any procedure in which a small part of the whole is used as the
basis for conclusions regarding the whole.
Sample : A portion or subset of a larger population.
Population in marketing research, any complete group of people or entities
sharing some common set of characteristics the group from which a sample is
taken.
Stage 4 : Collecting Data
Once the problem has been defined, the research techniques chosen, and the
sample to be analyzed selected, the researcher must actually collect the needed
data. Whatever collection method is chosen, it is the researcher's task to
minimize errors in the process. and errors are easy to make.
Pretesting : Conducting limited trials of a questionnaire or some other aspect of
a study to determine its suitability for the planned research project.
Generally, before the desired data are collected, the collection methods are
pretested. A proposed questionnaire or interview script might be tried out on a
small sample of respondents in an effort to assure that the instructions and
questions are clear and comprehensible.

Stage 5 : Analyzing the Data

Editing : Checking completed questionnaires or other data collection forms for
omissions, incomplete or otherwise unusable responses, illegibility, and obvious
inconsistencies.
Once a researcher has completed what is called the fieldwork by gathering the
data needed to solve the research problem, those data must be manipulated, or
processed.
The purpose is to place the data in a form that will answer the marketing
manager's questions.
Processing requires entering the data into a computer. Data processing
ordinarily begins with a job called editing, in which surveys or other data
collection instruments are checked for omissions, incomplete or otherwise
unusable responses, illegibility, and obvious inconsistencies.
Coding : Establishing meaningful categories for responses collected by means of
surveys or other data collection forms so that the responses can be grouped into
usable classifications.
Once the data collection forms have been edited, the data undergo coding. After
editing and coding, the researcher is ready to undertake the process of
analysis. Data analysis may involve statistical analysis, qualitative analysis, or
both.
Stage 6 : Drawing Conclusions and Preparing a Report
Remember that the purpose of marketing research is to aid managers in
making effective marketing decisions. The researcher's role is to answer the
question .What does this mean to marketing managers? Therefore, the end
result of the research process must be a report that usefully communicates
research findings to management.
Stage 7 : Following Up
After the researcher submits a report to management, he or she should follow
up to determine if and how management responded to the report. The
researcher should ask how the report could have been improved and made
more useful. This is not to say that researchers should expect that managers
will always agree with a report's conclusions or pursue its suggested courses of
action.
2) What is meant by marketing information system? What are its
advantages and disadvantages? (May/Jun 2014)
“A marketing information system is a continuing and interacting structure of
people, equipment and procedures to gather, sort, analyze, evaluate, and
distribute pertinent, timely and accurate information for use by marketing
decision makers to improve their marketing planning, implementation and
control.
ASSESSING INFORMATION NEEDS
The company begins to find out what informant the mangers would like to
have. But managers do not always need all the information they ask for and
they may not ask for all they really need.
DEVELOPING INFORMATION
 Analysis
 Planning
 Implementation
 Organization
 Control
 Marketing Information Systems
 Assessing Internal
 Marketing Information Records
 Intelligence Needs
 Distribution Information
 Marketing Information
 Analysis Research
 Marketing Environment
  Target marketing channels
 Competitors
 Environment Forces

The information needed by marketing managers can be obtained from internal

company records, marketing intelligence and marketing research. The
information analysis system processes this information to make it more useful
to managers.
INTERNAL RECORDS SYSTEM
Most marketing managers use internal records and reports regularly especially
for making day-to-day planning, implementation and control decisions.
Internal records information consists of information gathered from sources
within the company to evaluate marketing performance and to detect
marketing problems and opportunities.
MARKETING INTELLIGENCE
Marketing intelligence is every day information about developments in the
marketing environment. The marketing intelligence system determines what
intelligence is needed, collects it by searching the environment and delivers it
to marketing managers who need it. Marketing intelligence can be gathered
from company executives, dealers, sales force, competitors, the accounts and
annual reports of other organizations etc. that helps managers prepare and
adjust marketing plans.
MARKETING RESEARCH
Marketing Research is used to identify and define marketing opportunities and
problems: to generate, refine and evaluate marketing actions; to monitor
marketing performance and to improve understanding of the marketing
process.
INFORMATION ANALYSIS
Information gathered by the company’s marketing intelligence and marketing
research systems require detailed analysis. This includes use of advanced
statistical analysis. Information analysis might also involve collection of
mathematical models that will help marketers make better decisions. Each
model represents some real system, process, or outcome. These models can
help answer the questions of what, if and which is best.

DISTRIBUTING INFORMATION
The information gathered through marketing intelligence and marketing
research must be distributed to the marketing managers at the right time.
Most companies have centralized marketing information systems that provide
managers with regular performance reports, intelligence updates, and reports
of research studies. Mangers need these routine reports for making regular
planning, implementation, and control decisions.
Developments in information technology have caused a revolution in
information distribution. With recent advances in computers, software and
telecommunication, most companies are decentralizing their marketing
information systems. In many companies marketing managers have direct
access to the information network through personal computers and other
means. From any location, they can obtain information from internal records or
outside information services, analyze the information using statistical packages
and models, prepare reports on a word processor or desk-top publishing
system, and communicate with orders in the network through electronic
communications.
Such systems offer exciting prospects. They allow the managers to get the
information they needed directly and quickly and to tailor it to their own needs.

3) What do you mean by ethics in marketing? Explain with suitable

illustrations taking Indian marketing system.

The American Marketing Association commits itself to promoting the highest

standard of professional ethical norms and values for its members
(practitioners, academics and students). Norms are established standards of
conduct that are expected and maintained by society and/or professional
organizations.
Values represent the collective conception of what communities find desirable,
important and morally proper. Values also serve as the criteria for evaluating
our own personal actions and the actions of others. As marketers, we recognize
that we not only serve our organizations but also act as stewards of society in
creating, facilitating and executing the transactions that are part of the greater
economy. In this role, marketers are expected to embrace the highest
professional ethical norms and the ethical values implied by our responsibility
toward multiple stakeholders (e.g., customers, employees, investors, peers,
channel members, regulators and the host community).

ETHICAL NORMS

As Marketers, we must:

1. Do no harm. This means consciously avoiding harmful actions or omissions

by embodying high ethical standards and adhering to all applicable laws and
regulations in the choices we make.

2. Foster trust in the marketing system. This means striving for good faith and
fair dealing so as to contribute toward the efficacy of the exchange process as
well as avoiding deception in product design, pricing, communication, and
delivery of distribution.

3. Embrace ethical values. This means building relationships and enhancing

consumer confidence in the integrity of marketing by affirming these core
values: honesty, responsibility, fairness, respect, transparency and citizenship.

ETHICAL VALUES

Honesty – to be forthright in dealings with customers and stakeholders. To

this end, we will:

 Strive to be truthful in all situations and at all times.

 Offer products of value that do what we claim in our communications.

 Stand behind our products if they fail to deliver their claimed benefits.

 Honor our explicit and implicit commitments and promises.

Responsibility – to accept the consequences of our marketing decisions and
strategies. To this end, we will:

 Strive to serve the needs of customers.

 Avoid using coercion with all stakeholders.

 Acknowledge the social obligations to stakeholders that come with increased

marketing and economic power.

 Recognize our special commitments to vulnerable market segments such as

children, seniors, the economically impoverished, market illiterates and others
who may be substantially disadvantaged.

 Consider environmental stewardship in our decision-making.

Fairness – to balance justly the needs of the buyer with the interests of the
seller. To this end, we will:

 Represent products in a clear way in selling, advertising and other forms of

communication; this includes the avoidance of false, misleading and deceptive
promotion.

 Reject manipulations and sales tactics that harm customer trust. Refuse to
engage in price fixing, predatory pricing, price gouging or ―bait-and switch‖
tactics.

 Avoid knowing participation in conflicts of interest. Seek to protect the

private information of customers, employees and partners.

4) Discuss the cause – related marking concept in detail.

Cause marketing or cause-related marketing

Cause Related Marketing is defined as (A) strategic positioning and marketing
tool that links a company or a brand to a relevant social cause or issue, for
mutual benefit.
A commercial activity by which business and charities or causes form a
partnership with each other to market an image, product or service for mutual
benefit.
Cause related marketing can be understood as a strategic positioning and
marketing tool which links a company or a brand to a relevant social cause or
issue for mutual benefit. It is the initiation and funding of deserving causes.
Cause related marketing is a strategic marketing activity a way for a company
to do well by doing good-distinct from sales promotion, corporate philanthropy,
corporate sponsorship, corporate Samaritan acts and public relations, though
it is often an amalgam of such activities. Nothing builds brand loyalty among
today’s increasingly hard to please consumers like a company’s proven
commitment to a worthy cause. Other things being equal many consumers
would do business with a company that stands for something beyond profits.
In nutshell, cause related marketing results in increased sales, visibility, and
consumer loyalty and enhanced company image along with positive media
coverage.
Indian Scenario

Cause related marketing and its impact on organizational selling and brand
loyalty.

1. The HLL announced a contribution of fifty paisa to a diarrhea project on sale

of each of its LIFEBUOY brand soap. It helped to improve market share for
lifebuoy.

2. OBEROI Hotels had specially designed and printed envelopes placed in all
Oberoi properties where in the guest could contribute to CRY, a non
government organization and collected more than Rs. 6.50 lakhs in 18 months.
CRY is a NGO whose role is that of an enabler a catalyst between two groups of
people (a) development organization and individuals working at grass root level
with marginalized children, their families and communities and people from all
walks of life who believe in the rights of children.

3. In India ‗whisper‗ a brand in the sanitary nappies market where the

materialistic difference is minimal announced a contribution of Re 1 on every
pack of its sales for blind relief society. It helped to improve market share for
Whisper.

4. NOVARTIS INDIA LTD a pharmaceutical company in a cause related

marketing scheme donated 2% or value of sales of OVALTLINE PLUS towards
CRY‗S (a NGO‗s) Gujarat rehabilitation operations. Total amount raised was
approximate Rs. 40, 000

5. The HLL announced a Rs. 5/- contribution to SOS children’s village, a social
service organization working for educating every little heart by inserting
coupons in its Brook bond Taj Mahal tea powder packs. The customer has to
tell the coupon number to the company through a toll free telephone number.

American Express first coined the phrase ―Cause Related Marketing‖ in the
1980s while raising money for the restoration of the Statue of Liberty in New
York City. The CRM trend rapidly caught on with corporate in India during the
1990s. CRM became the vehicle by which companies indirectly propagandized
their brands and it has provided companies with a new tool to compete in the
market. The Principle goal of a

Cause Related Marketing program has been to impact a company’s bottom line
through increased Sales. Some of its potential benefits include: Attracting and
Retaining Customers, Market Differentiation, outreach to Niche Markets.

5) Write notes on

I. Brand personification

II. E-Commerce

III. persuasive advertisements

IV. Strategies of Customer Acquisition

Brand personificationAsk subjects what kind of person they think of when the
brand is mentioned: “If the brand were to come alive as a person, what would it
be like, what would it do, where would it live, what would it wear, who would it
talk to if it went to a party (and what would it talk about)?” .The brand
personality delivers a picture of the more human qualities of the brand.
Persuasive Advertising. This becomes important in the competitive stage,
where a company’s objective is to build selective demand for a particular
brand. Most advertising falls in this category. Persuasive advertising is
undertaken when a strong primary demand is in existence. The product should
be distinctive, its benefits should be visible and also a strong brand
consciousness must be generated.
E-commerce has three broad components.
B
B to B (B2B)
B to C (B2C)
B refers to Internet transactions of e-commerce. B-to-B (B2B) or business-to-
business e-commerce refers to inter-enterprise e-commerce, where business
firms sell their products and services to other business firms on the net. B-to-C
(B2C) or business-to consumer e-commerce refers to marketing of product and
services to ultimate/household consumers on the net.
Strategies of Customer Acquisition
Customer acquisition is a process of identifying, approaching and developing
new customer relationships.
Acquiring customers is one of the most important factors in the success of a
business. The importance of acquisition not only lies in the volume of
customers acquired, but the profitability and value that the customer will
bring. Adopting a strategic approach is advised when it comes to acquiring
customers.
Determining what type of customer best suits the business needs, enables you
to target customers which will be profitable and add value to the organisation.
A successful customer acquisition strategy is that of which adopts a fully
integrated multi channel approach. Another important factor of customer
acquisition is ensuring that a company’s brand immersion methodology is
aligned with their customer acquisition strategies.
6. Define advertising. Write briefly about how to develop and manage
advertising program. (MAY/JUNE – 2016)

Advertising is a means of communication with the users of a product or

service. Advertisements are messages paid for by those who send them and are
intended to inform or influence people who receive them, as defined by the
Advertising Association of the UK.

Developing and Managing An Advertising Program

Advertising is called direct communication with customers
According to Phillip Kotler: advertising is the paid form of non-personal
presentation and promotion of ideas, goods, or services by an identified
sponsor.
Mission: It states the objectives of the advertising. It also includes the sales
goals of the company.
Money: It gives an idea that how much money should be spent by the company
for the advertisement. Factors to be considered for this are stage of product life
cycle, market share and consumer base, competition, advertisement frequency
and product substitutability.
Message: Message includes what message should be spent in advertisement. It
includes message generation, message evaluation and selection, message
execution and social responsibility review.
Media: It includes which media should be used for the advertisement. It also
includes reach, frequency, impact of the advertisement. It also contains major
media types, media vehicles, media timing and geographical media allocation.
Measurement: it is nothing but evaluation of the results. It measures
communication impact and sales impact by an advertisement.
SETTING THE OBJECTIVES
1) Informative advertising :
The prime objective of the advertising is to inform the existing and potential
customers about the product.
2) Persuasive advertising:
It aims to create liking preference, conviction and purchase of a product or
service. Persuasion will create demand of the product.
3) Reminder advertising:
It aims to simulate repeat purchase of products and services.
This will remind the customers that the product may be needed in the near
future.
4) Reinforcement advertising:
It aims to convince current purchases that they made the right choice.
DECIDING ON THE ADVERTISING BUDGET.
After determining advertising objectives the company next sets its advertising
budget for each product.
Specific factors that should be considered when setting the advertising budget.
1) Stage in the product life cycle:
New products typically need large advertising Budgets to build awareness and
to gain consumer trial. Mature brands usually require lower budgets as the
ratio to sales.
2) Market share and consumer base:
High market share brands usually needs more advertising spending as a
person of sales than do low market share brands. Building the market or
taking share from competitor requires larger advertising spending than does
simply maintaining current share.
3) Competition and clutter :
In a market with many competitors and high advertising spending, a brand
must advertise more heavily to be notices above the noise in the market.
4) advertising frequency:
when many repetitions are needed to present the brand’s message to
consumers, the advertising budget must be larger.
5) Product substitutability:
A brand that closely resembles other brands in its product class requires heavy
advertising to set it apart. When the product differs greatly from competitors,
advertising can be used to point out the differences to consumers.
Developing The Advertising Campaign
In designing and evaluating an ad campaign, it is important to distinguish the
message strategy or positioning of an ad from its creative strategy.
Message generation and evaluation
A large advertising budget does not guarantee a successful advertising
campaign. No matter how big the budget, advertising can succeed only if
commercials gain attention and communicate well.
Today’s advertising messages must be better planned, more imaginative, more
entertaining and more rewarding to consumers to gain and hold attention.
Creative strategy will play an increasingly important role in advertising
success.
Effective message strategy begins with identifying customer benefits that can
be used as advertising appeals. Advertising appeals should have three
characteristics:
+Meaningful, Believable and Distinctive.
Creative Development and Execution
The impact of the message depends not only on what is said but also on how it
is said. Any message can be presented in different execution styles. Message
execution can be decisive. They can be following advertising medium for
execution:

Television Ads: It is generally acknowledge as the most powerful advertising

medium. Properly designed and executed TV ads can improve brand equity and
affect sales and profits.
Print Ads: It offer a stark contrast to broadcast media. In general there are two
main print media: Magazines and
Newspaper.
Radio Ads: It is cheaper than television. Radio listening is expected to increase
significantly over the coming years. Radio Ads can be extremely creative.
Creative devices can tap into the listeners imagination to create powerfully
relevant and popular images.
Film Ads: India is the largest producer of films in the world. Many local firms
use this medium to advertise their products and services as this minimizes the
spillage and the wastage of advertisement money.
SOCIAL RESPONSIBILITY REVIEW:
Advertiser and their agencies must be sure advertising does not over step social
and legal norms. Public policy makers have developed a substantial body of
lows and regulations to govern advertising.
DECIDING ON MEDIA AND MEASURING EFFECTIVENESS:
After choosing the message, the advertiser’s next task is to chose media to
carry it. Major steps in media selection are as under:
1) Deciding on reach, frequency, and impact:
Reach is a measure of the percentage of people in the target market who are
exposed to the ad campaign during a given period of time.
Frequency is a measure of how many times the average percent in the target
market is exposed to the message.
The advertiser must also decide on the desired media impact-the qualitative
value of a message exposure through a given medium.
2) Choosing among major media types:
The major media types are newspapers, televisions, direct mail, radio,
magazines, outdoor and online. The media habits of the target consumers will
affect media choice. Advertisers look for media that reach target consumers
effectively. Different types of messages may require different media. Cost is
another major factor in media choice. The media planner looks at the total cost
of using a medium. Media impact an cost must be reexamined regularly. As a
result, advertisers are increasingly turning to alternative media, ranging from
cable television and outdoor advertising to parking meters and shopping cards.
3) Selecting specific vehicles:
The media planner now must chose the best media vehicles and specific media
within each general media type, media planners must complete the cost per
thousand percents reached by a vehicle. The media planners must also
consider the cost of producing ads for different media. Whereas, newspaper ads
may cost very little to produce flashy television ads may cost millions.
4) Deciding on media timing and allocation:
The advertiser must also decide how to schedule the advertising over the
course of a year. The firm can vary its advertising to follow the seasonal
pattern, or to be the same all year. Most firms do some seasonal advertising.
The advertiser has to chose the pattern of the ads. The idea is to advertise
heavily for a short period to build awareness that carries over to the next
advertising period.
EVALUATING ADVERTISING EFFECTIVENESS:
Good planning and control of advertising depend on measures of advertising
effectiveness. Most advertisers try to measure the communication effect of an
ad-that is, its potential effect on awareness, knowledge, or preferences.
Communication-Effect Research:
It seeks to determine whether an ad is communicating effectively. There are
three major methods of pre testing.
CONSUMER FEEDBACK METHOD:
Ask the consumers for their reactions to a proposed ad.
PORTFOLIO TEST:
It ask consumers to view or listen to a portfolio of advertisements. Consumers
are than asked to recall all the ads on their contains, aided or unaided by the
interviewer.
LABORATORY TEST:
It use equipment to measure physiological reactions like heartbeat, blood
pressure, perspiration to an ad; or consumers may be ask to turn a knob to
indicate their moment to moment liking or interest while viewing sequence
material.
Sales Effect Research:
Advertising’s sales effect is generally harder to measure than its
communication effects. Sales are influenced by many factors such as features,
price and availability as well as competitors actions.
Formula for measuring the sales impact of advertising:
1.) Share of Expenditure
2.) Share of voice
3.) Share of Mind and Heart
4.) Share of Market
SALES PROMOTION
Sales Promotion consists of short-term incentives to encourage purchase or
sales of the product or service. Whereas advertising offers reasons to buy a
product or service, sales promotion offers reasons to buy now.
Sales promotion includes tools for:
+ Consumer promotion
+ Trade Promotion
+ Business and Sales- force promotion.
OBJECTIVES
Sales promotion tools vary in their specific objectives.
Sales promotions should be consumer relationship building. They should help
to reinforce the product’s position and build long-term relationships with
consumers. Even price promotions can be designed to help build customer
relationships.
MAJOR DECISIONS
In using sales promotion, a company must establish its objectives, select the
tools, develop the program, pretest the program, implement and control it, and
evaluate the results.
ESTABLISHING OBJECTIVES
Sales promotion objectives are derived from broader promotion objectives,
which are derived from more basic marketing objectives developed for the
product. For consumers, objectives include encouraging purchase of larger-
sized units, and long term brand equity effects.
For the sales force, objectives include encouraging support of a new product or
model, encouraging more prospecting, and stimulating off season sales.
SELECTING CONSUMER PROMOTION TOOLS
The main consumer promotion tools include samples, coupons, cash refunds,
premiums, advertising specialties, patronage rewards, point of purchase,
displays and demonstrations and contests, sweepstakes and games.
SELECTING CONSUMER PROMOTION TOOLS
More sales promotions are directed to retailers and wholesalers than to
consumers. Trade promotion can persuade retailers or wholesalers to carry a
brand, to give it shelf space, to promote it in advertising, and push it to
consumers.
Manufacturers use several trade promotion tools. Many tools are used for
consumer promotions contests, premiums, displays can also be used as trade
promotions. Or the manufacturer may offer a straight discount off the list price
on each case purchased during a stated period of time. Dealers can use the
discount for immediate profit, for advertising or for price reductions to their
customers.
Manufacturers also offer an allowance in return for the retailer’s agreement to
feature the manufacturer’s products in some way. Manufacturers may offer
free goods, which are extra cases of merchandise, to resellers who buy a
certain quantity or who feature a certain flavor or size.
SELECTING BUSINESS AND SALES FORCE PROMOTION TOOLS
Companies spend large amounts of money on business and sales force
promotion tools. These tools are used to gather business leads, impress and
reward customers, and motivate the sales force to greater effort. Companies
typically develop budgets for each business promotion tool that remain fairly
constant from year to year.
DEVELOPING THE PROGRAM
In planning sales promotion programs, marketers are increasingly blending
several media into a total campaign concept. In deciding to use a particular
incentive, marketers have several factors to consider:
+ size of the incentive
+ conditions for participation
+ duration of the promotion
+ distribution vehicle
+ timing of the promotion
+ total sales promotion budget.
PRETESTING, IMPLEMENTING, CONTROLLING, AND EVALUATING THE
PROGRAM.
Although most sales promotion programs are designed on the basis of
experience, pretests can determine if the tools are appropriate, the incentive
size optimal, and the presentation method efficient. Consumers can be asked
to rate or rank different possible deals, or trial tests can run in limited
geographic areas.
Marketing managers must prepare implementation and control plans that
cover lead time and sell-in time for each individual promotion.
Manufacture can evaluate the program using three methods:
+ sales data
+ consumer surveys and
+ experiments.
EVENTS AND EXPERIENCES
EVENTS OBJECTIVES
Marketers report a number of reasons why they sponsor events:
1) to identify with a particular target market or life style
2) to increase awareness of company or product name
3) to create reinforce consumer perceptions of key brand image associations
4) to enhance corporate image dimensions.
5) to create experiences and evoke feelings
6) to express commitment to the community or on social issues.
7) to entertain key clients or reward key employees.
8) to permit merchandising or promotional opportunities.
MAJOR DECISIONS
Developing successful sponsored events involves choosing the appropriate
events; designing the optimal sponsorship program for the event; and
measuring the effects of sponsorship.
CHOOSING EVENT OPPORTUNITIES
Because of the huge amount of money involved and the number of event
opportunities that exist, many marketers are becoming much more strategic
about the events with which they will get involved and the manner in which
they will do so.
An ideal event might be one :
1) whose audience closely matches the desired target market
2) that generates much favorable attention
3) that is unique but not encumbered with many sponsors
4) that lends itself to ancillary marketing activities
5) that reflects or enhances the brand or corporate image of the sponsor
DESIGNING SPONSORSHIP PROGRAMS
A sponsor can strategically identify itself at an event in a number of ways,
including banners, signs and programs. At least two to three times the amount
of the sponsorship expenditure should be spent on related marketing activities.

MEASURING SPONSORSHIP ACTIVITIES

As with public relations measurement of events is difficult.
There are two basic approaches to measuring the effects of sponsorship
activities:
+ the supply side method : it focuses on potential exposure to the brand by
assessing the extent of media coverage.
+ the demand- side method: It focuses on reported exposure from consumer.
PUBLIC RELATIONS
Public relations is building good relations with the company’s various publics
by obtaining favorable public, building up a good corporate image, and
handling or heading off unfavorable rumors, stories, and events. Public
relations departments may perform any or all of the following functions.
+ Press relations or press agency
+ Product publicity
+ public affairs
+lobbying
+ investor relations
+ development
MARKETING PUBLIC RELATIONS
MPR, like financial PR and community PR, serves a special constituency, the
marketing department.
The old name for MPR was publicity.
MPR is also effective in blanketing local communities and reaching specific
groups. Managers must acquire more skill in using MPR.
MAJOR DECISIONS IN MARKETING
In considering when and how to use MPR, management must establish the
marketing objectives, choose the PR messages and vehicles, implement the
plan carefully, and evaluate the results. The main tools of MPR are described
as under :
+ Publications
+ Events
+ Sponsorship
+ News
+ Speeches
+ Public- service activities
+ Identify Media
ESTABLISHING OBJECTIVES
MPR can build awareness by placing stories in the media to bring attention to a
product, service, person, organization, or idea. It can hold down the promotion
cost because MPR costs less than direct- mail and media advertising.
MPR is increasingly borrowing the techniques and technology of direct-
response marketing to reach target audience members one-on-one.
CHOOSING MESSAGES ANS VEHICLES
The MPR manager must identify or develop interesting stories about the
product. PR ideas include hosting major academic conventions, inviting expert
or celebrity speakers, and developing news conferences. Each event is an
opportunity to develop a multitude of stories directed at different audiences.