Advertising & Media

Unit 1
Intro. to Adv. Mgt.
Marketing theories, Adv. theories, Role
of Adv. In Marketing, Etc….
What is Marketing?

• Marketing refers to activities undertaken by a company to promote the buying or

selling of a product or service.

• Marketing includes advertising, selling, and delivering products to consumers or

other businesses.

• Some marketing is done by affiliates on behalf of a company.

• Professionals who work in a corporation's marketing and promotion departments

seek to get the attention of key potential audiences through advertising.
• Promotions are targeted to certain audiences and may involve
celebrity endorsements, catchy phrases or slogans, memorable packaging or
graphic designs and overall media exposure.

Understanding Marketing

• Marketing as a discipline involves all the actions a company undertakes to draw in

customers and maintain relationships with them.

• Networking with potential or past clients is part of the work too, including writing
thank you emails, playing golf with a prospective client, returning calls and emails
quickly, and meeting with clients for coffee or a meal.
• At its most basic, marketing seeks to match a company's products and services to
customers who want access to those products.

• The matching of product to customer ultimately ensures profitability.

Definition of Marketing

According to Philip Kotler

• Marketing Management is “a societal process by which individuals & groups

obtain what they need & want through creating offering & freely exchanging
products & services of value with others”.
Marketing Communication

Definition

• The Marketing Communication refers to the means adopted by the companies

to convey messages about the products and the brands they sell, either directly or
indirectly to the customers with the intention to persuade them to purchase.

• In other words, the different medium that company adopts to exchange the
information about their goods and services to the customers is termed as
Marketing Communication.

• The marketer uses the tools of marketing communication to create the brand
awareness among the potential customers, which means some image of the
brand gets created in their minds that help them to make the purchase decision.
Marketing communication offer solutions to the following questions:

• Why shall the product be used?

• How can the product be used?

• Who can use the product?

• Where can the product be used? And

• When can the product be used?

• Marketing communication includes Advertising, Sales Promotion, Events and

Experiences (sponsorship), Public Relations and Publicity, Direct Marketing,
Interactive Marketing, Word-of-Mouth Marketing, Personal Selling.

• These tools of communication are collectively called as Integrated Marketing

Communication Tool / Mix (IMC).
INTEGRATED MARKETING COMMUNICATION TOOL (IMC)
1. Advertising

• It is an indirect, paid method used by the firms to inform the customers about their
goods and services via television, radio, print media, online websites etc….

• Advertising is one of the most widely used methods of communication mix

wherein the complete information about the firm’s product and services can be
communicated easily with the huge target audience coverage.

2. Sales Promotion

• The sales promotion includes the several short-term incentives to persuade the
customers to initiate the purchase of the goods and services.
• This promotion technique not only helps in retaining the existing customers but
also attract the new ones with the additional benefits.

• Rebates, discounts, paybacks, Buy- one –get- one free scheme, coupons, etc. are
some of the sales promotion tools.

3. Events and Experiences:

• Several companies sponsor the events such as sports, entertainment, non-profit

or community events with the intention to reinforce their brand in the minds of the
customers and create a long term association with them.

• The name of the firm sponsoring the event can be seen on the playground
boundaries, player’s jerseys, trophies, awards in the entertainment shows,
hoardings on stage, etc….
4. Public Relations and Publicity

• The companies perform several social activities with a view to creating their
positive brand image in the market.

• The activities that companies are undertaking such as, constructing the public
conveniences, donating some portion of their purchase to the child education,
organizing the blood donation camps, planting trees, etc. are some of the
common moves of enhancing the Public Relations.

5. Direct Marketing

• With the intent of technology, the companies make use of emails, fax, mobile
phones, to communicate directly with the prospective customers without involving
any third party in between.
6. Interactive Marketing

• Interactive Marketing has recently gained popularity as a marketing

communication tool, wherein the customers can interact with the firms online and
can get their queries resolved online.

• Amazon is one of the best examples of interactive marketing wherein the

customers make their choice and can see what they have chosen or ordered in
the recent past.

• Also, Several websites offer the platform to the customers wherein they ask
questions and get the answers online such as answer.com.
7. Word-of- Mouth Marketing

• It is one of the most widely practiced method of communication tool wherein

customer share their experiences with their peers and friends about the goods
and services they bought recently.

• This method is very crucial for the firms because the image of the brand depends
on what customer feels about the brand and what message he convey to others.

8. Personal Selling

• This is the traditional method of marketing communication wherein the salesmen

approach the prospective customers directly and inform them about the goods
and services they are dealing in.
• It is considered as one of the most reliable modes of communication because it is
done directly either orally, i.e., face to face or in writing via emails or text
messages.

• Thus, marketing Communication mix refers to the different tools that a firm can
adopt to inform, persuade, and remind the customer about the product and
services it sells.

Advertising

• The word Advertising originated from a Latin word “Advertire”, meaning “to turn
to”, i.e., when anything is brought to the notice of consumers in a public manner.
Definition of Advertising

According to American Marketing Association

“Advertising is any paid form of non-personal presentation and promotion of ideas,

goods and services by an identified sponsor”

According to John.S.Wright

“Advertising refers to controlled, identifiable information and persuasion by means of

mass-communication media”

• Advertisements are designed to target a group of customers rather than individuals.

• It helps a business to promote their brands and products to the targeted audience
with the aim to increase sales, enhance brand value, inform customers about new
products, educate customers about product features etc….
Publicity is to publicize a product, service or company to provide information.
Advertising is what a company says about its own product, but Publicity is what
others says about a product
Classification of Advertising

It can be classified on the basis of

a) Function

b) Region

c) Target Market

d) Company demand

e) Desired response

f) Media

a) Function

• Advertisement informs the customers about a product (Informative Adv.)

• Advertisement persuades the consumers to buy a products (Persuasive Adv)

• Adv. reminds existing customers about the presence of the product in the market
(Reminder Adv)
b) Region

• Global, National, Regional Local Advertising.

c) Target Market

• Consumer products

• Industrial products

• Trade Advertising (designed for whole-sellers and distributers)

• Professional Advertising (particular trade or business stream like Doctors,

Engineers, teachers etc….)

• Financial Advertising (for banks, financial institutions, etc…)

d) Desired Response

• Direct action advertising – season sale, purchase coupon (with time limit), etc…
In-direct action advertising

• is carried out to make a positive effect on the mind of the reader or viewer. After
getting the advertisement he does not rush to buy the product but he develops a
favorable image of the brand in his mind.

Surrogate advertising

• This is a new category of advertising. In this type of promotional effort, the

marketer promotes a different product.

For example:

• the promotion of Bagpiper soda.

• The firm is promoting Bagpiper Whisky, but intentionally shows soda.

e) Media

• Audio – Public Announcement (P.A) Systems, auto / van promotions, etc…

• Visual – Displays, text catalogues, cloth banners, etc….

• Audio-Visual – Slides, movies, T.V ad’s etc….

• Written Ad’s – letters, fax, messages, newspapers, magazines, etc….

• Internet / Social Media – websites, Ad’s on webpages, pop-up ad’s, email ad’s etc.

• Verbal – conferences, seminars, group discussions, etc….

Types of Advertising – ATL, BTL and TTL

• Although these types of marketing have been around for quite some time now, it was
only in 1954, that Procter and Gamble gave an accurate classification of the different
types of advertising, based on what spheres of audience they affect, presence or
absence of direct results, and the amount of direct return on investments.
1. Above-The-Line Advertising (ATL)

• Above-The-Line activations are a widespread advertising and marketing

campaign or activity that is undertaken at a general level, without any specific
audience targeting.

• Good examples will be a huge brand’s national/international advertising campaign

that’s untargeted and broad-reaching in nature.

• As is apparent, Above-The-Line activations are marketing activities that are

generally undertaken as a brand-building exercise, and to establish a clear brand
image among a massive audience.
General ATL Advertising Activities

a) Television Advertising: Advertising campaigns that are targeted at a national or

global level.

b) Print Media: Newspaper ads, online articles and print media campaigns that are
global.

c) Radio: National and international radio broadcasting advertisement campaigns.

• The major focus of Above-The-Line activations, is on building a good, well-defined

brand image, and to increase the brand’s reach to wider horizons of audience.
• Definite returns-on-investments or conversions aren’t ATL’s forte, and it is precisely for
this reason that ATL activities aren’t target-centric in nature.

• The idea behind ATL advertising activities is to make the brand or the product in
discussion known to the customer, and to create larger brand visibility.

2. Below-The-Line Advertising (BTL)

• In stark contrast to Above-The-Line activations, Below-The-Line activations or BTL

activities are more focused in nature, and are directed towards a specific group of
individuals that the company identifies as potential customers.

• Below-The-Line activations are highly targeted and advertisements are created

considering all the necessary parameters of the audience’s interest, to better connect
with them.
• The communication strategies employed by Below-The-Line activations are highly
personalized and objective, a primary focus on gaining tangible results through conversions,
a quantifiable ROI and definitive audience interaction.

• Unlike ATL advertising, where the results of the activities are largely untenable, BTL
advertising activities have the advantage of easily trackable results and quantifiable
parameters for judging the success of an advertising campaign.

Popular Below-The-Line Activation Activities

• Outdoor Advertisements: Billboard ads, flyers, banners, sandwich boards etc.

• Direct Marketing: SMS, emails, Social Media posts, pamphlets etc.

• Sponsorship: Advertising through events, competitions etc.

• Public Relations: Advertising through press conferences, viral marketing campaigns etc.

• In-Store Promotions: Advertising done through visual merchandising, retailer popups,

product sampling, sales promotion etc.
• BTL advertising majorly focuses on higher ROI, gaining user conversions, along
with defining and bringing about quantifiable campaign success measures for the
brand.

• Highly user-centric and targeted, BTL activities are undertaken to ensure

buyers/customers for the brand’s products/campaigns etc.

• Many companies and well-established brands make use of BTL advertising

methods like Email Marketing, Social Media and Event marketing.

• Events are quickly taking over the corporate space, with brands using those to up
their ante when it comes to regional presence, customer satisfaction and
exceptional experiences.
• Giving customers a memorable event experience is a part of a well-thought-out
BTL advertising campaign, assisted by event marketing methods known otherwise
as Experiential Marketing Solutions.

• These are interactive technology solutions deployed through Experiential

Marketing Technology agencies, that scoop out and analyze your audience’s
demographics for creating a personalized event experience for them to enjoy.

Some of these Experiential Marketing Solutions that brands use at their events
to give their guests a personalized experience are listed below:

a) Magic Mirror Photo-booth

• An interactive Photo Booth that clicks the pictures of your guests making crazy
poses lets them customize those as they like, and then post those across their
• social media profiles with your event’s unique hashtag to give your branded event a
higher social media outreach.

• The Photo Booth makes your event memorable for your guests, and gives your brand a
much needed social media boost.

• https://www.youtube.com/watch?v=clQq1VzYc2Y (2.24 Min)

b) Instagram Hashtag Printer

• A hashtag printer is almost a necessity in a corporate event, product launch or a brand

party.

• A fun interactive Photo Booth that lets your guests take photos and get them as a handy
print-out instantly, along with your event’s unique hashtag to let them have a wonderful
memory of your event. It also allows your guests to post these photos on their social
media profiles with your event’s unique hashtag, thus making your event’s social media
profiles rank higher.

• https://www.youtube.com/watch?v=pvqUQDfOeOA (2.10 Min)

c) Social 360

• This rotating Photo/GIF Booth captures fun photos / videos / GIFs of your guests
through 360 degree cameras that make your guests feel like they’re in a celebrity
photo-shoot.

• The guests can then post those across their social media profiles with your
event’s unique hashtag, that generates a goodly amount of authentic User
Generated Content (UGC) for your brand, as well as lets your guests remember
your branded event as a fun, memorable experience!

• https://www.youtube.com/watch?v=SXhlfWOl0_Y (Mute volume – 1.56 Min)

d) AR Selfie

• The AR Selfie Photo Booth lets you transport your guests to their dreamlands,
capturing their photos in sceneries of their choice through the agency of a green
screen and a high-quality camera!

• Your guests can then post those on their social media profiles using your event’s
unique hashtag, thus increasing your brand’s social media reach as well as brand
recall value among your guests!

• https://www.youtube.com/watch?v=rfafnNsXlEA (1.32 Min)

e) Social Mosaic

• A fun interactive tech solution, the Social Mosaic is a creative wall art of your
guests’ pictures snapped at your event, placed together strategically to create a
bigger masterpiece that in some way or the other, represents the theme of your
event!

• Not only does it make for amazing-looking Instagram worthy photo moments, but
also gives your guests a feeling of being involved in the event, and guarantees
that none of your guests are left behind!

• Not to mention the crazy amount of authentic UGC it generates for your branded
event!
• Choosing from these Experiential marketing technology solutions will ensure your
branded events become memorable for your guests and lets them have a good
time, along with giving your brand a heightened social media reach, and making
your brand a household name.

• https://www.youtube.com/watch?v=x88o0KWISLs (2.35 Min)

f) Through-The-Line Advertising (TTL)

• An advertising approach that integrates both ATL and BTL advertising activities,
through-the-line activations or TTL advertising are marketing activities that
combine both ATL and BTL approaches to secure your brand a greater visibility,
better brand recall value & increased sales through measurable, quantifiable
parameters.
Theories of Advertising

1. Stimulus Response Model / Black Box Model

• A well-developed and tested model of buyer behavior is known as the stimulus-response

model, which is summarized in the diagram below:
• In the above model, marketing and other stimuli enter the customers “black box”
and produce certain responses.

• Marketing management must try to work out what goes on the in the mind of the
customer (an invisible process) – the “black box”.

• The Buyer’s characteristics influence how he or she perceives the stimuli; the
decision-making process determines what buying behaviour is undertaken.
1. Marketing & other Stimuli
2. Hierarchy of Effects Model

• is a model which tells advertisers to make an advertisement in such a way that

the customer goes through all these six stages.

• It is created by Robert J Lavidge and Gary A Steiner in 1961.

a) Awareness

• This is the most crucial step and the starting point for purchase.

• Brands must make sure that the consumer is aware of the presence of your brand
in a particular product segment.

• For example, if Tina wants to buy a toothbrush, and you as the marketing
manager of Colgate wants her to buy your brand’s toothbrush, you have to make
sure that you advertise well so that she is aware of the existence of such a brand
for toothbrushes.

b) Knowledge

• This is where your product will be evaluated against other brands by the
consumer.
• Make sure enough (positive) knowledge is available about your product – through
the internet, retail stores and the product package itself.

• For example, now Tina, aware that there is a Colgate brand will try figure out
what unique features and benefits you are offering over any other brand like
Colgate and Oral-B.

3. Liking

• This is where the consumer builds a liking to your product. This is where your
product is being considered for its emotional benefits; be sure to make them
prominent.

• For example, now Tina has evaluated the pros & cons of buying a Colgate brush
but might not like the colour of it, or might feel that this brush is for the elderly.
• As the marketing manager of Colgate, you have to make sure that these features,
that leave emotional impact, are taken care of properly in the marketing
communication program.

d) Preferences

• By this time consumer may be convinced to try out your product, but may like
other brands of toothbrush too.

• So what is it that will make her prefer Colgate over the other brands?

• These points of differentiations or unique selling points need to be highlighted to

make sure that the consumer likes your brand more than the others in her
consideration list.
• For example, Tina now may be actually considering buying a Colgate toothbrush.
But is she thinking that she’ll buy it to try it only or is she thinking that the next buy
will also be a Colgate brush?

e) Conviction

• This is the stage where the doubt in consumers’ minds about buying the product
of your brand needs to be converted into action.

• Marketers can aid in this step by giving out free samples, test drives etc.

• This step should also decide if the consumer will stick to your brand i.e. actually
buy your brand, or switch after testing the sample.
• For example, Tina tried the brush you gave her for a month and then when time
came to buy one, she bought an Oral-B one.

• Make sure that doesn’t happen and that trial builds loyalty.

• Incorporate such unique features in your brand that will encourage purchase.

f) Purchase

• The last and the most crucial stage of the consumer buying cycle is the purchase.
You need to make sure that purchase experience is easy and perhaps even
enjoyable for the consumer.

• Some of the ways to encourage purchase is by keeping simple and multiple

paying options, making the product available easily, easy to understand usage
instructions, offers etc.
• For example, now that Tina has decided to buy your brand after trying it out for a
month, make sure she knows where to buy it from and how she can pay.

• You may also give her a tube of toothpaste free to delight her.

• The main aim of this tool that serves as a marketing communication tool is to
encourage consumers to go through the six steps that end in purchase of product.

• It is not necessary that consumers always go through all the six steps but the aim
is to land a purchase.
Lavidge and Steiner further grouped these six stages into three main stages of
consumer behaviour:

1. Cognitive

2. Affective

3. Conative

1. Cognitive

• Also called the “thinking” stage, this is where the consumer gathers knowledge
about the product and becomes aware of it.

• This can be said to be a rational step where pros and cons, product specifications
etc. of a product are evaluated.
2. Affective

• Also called the “feeling” stage is when the consumer starts developing a liking
for the product, and may even develop strong positive (or negative) feelings
toward it.

3. Conative

• This is the “behaviour” stage of the process.

• This is when the consumer, after weighing the pros and cons, and deciding his/her
preference actually buys the product.
2. AIDA Model

• The AIDA model is an acronym - it stands for Attention, Interest, Desire and
Action.

• It is a model used in marketing that describes the steps a customer goes through
in the process of purchasing a product.

• The AIDA model was developed by the American businessman, E. St. Elmo
Lewis, in 1898 (19th Century), It has been modified many times since.

• The original main purpose was to optimize sales calls, specifically the interaction
between seller and buyer concerning the product.
The AIDA model is based on four individual stages that attract interested parties who
are deciding on a product or service.

1. Attract attention

• The product must attract the consumer's attention.

• This is done via the advertising materials. It is a type of “eye-catcher.”

• Examples: a sensational YouTube clip, or a themed newsletter, or a graphic on

a landing page (of the website).

2. Maintain interest

• In the first phase, the attention of the potential customer is caught; their interest in
the product or service should be aroused.

• Example: detailed information on the product is presented, for example, the product
description on a website, a product brochure or flyer, photos, or video clip of the
product.
3. Create desire

• If interest in the product is aroused, it is the seller’s task to persuade the customer
that they want to own this product.

• In the best-case scenario, the advertisement or the product itself creates the
desire to purchase.

• Example: the seller provides clear examples of the advantages of the product or
service, taking into account the daily lives of the target group.

• In the online shop, a bullet point list can generate the desire to buy.

• This desire to buy can also be awakened by an advertising medium that

specifically addresses the emotions of the customer.
4. Take action

• As soon as the desire to buy is aroused, this must be transferred into an action,
that is, the purchase.

• Example: In the case of online shops, this would ultimately be the shopping cart
process, in which a customer is lead to a conversion.

• The customer can be encouraged to buy the product with a call-to-action.

• Nowadays, the AIDA formula is frequently supplemented with an “S” for

"satisfaction", because the product has to ultimately satisfy the consumer.

• With the insertion of the “confidence” (trust) factor, a sixth element can also be
added.

• Many marketers also work with the AIDCAS model to optimize sales processes
and advertising.
3. DAGMAR Model

• The DAGMAR model was introduced by Russell Colley in a 1961 report to

the ”Association of National Advertisers” and was expanded upon in 1995 in a
book by Solomon Dutka.

• DAGMAR is an abbreviation for “Defining Advertising Goals to Measure

Advertising Results”.

• Russell colley observed that although people were investing in advertising, they
had to invest a lot of time in other marketing activities to get the ROI of
advertising.

• This is because the ROI from advertising was unknown.

The Two core concepts that DAGMAR Model stands for are

1. Creation of communication task to achieve goals

2. Defining the objective of the communication tasks in a manner that results can be
measured.

1. Creation of communication task to achieve goals

• A marketing task is a combination of an advertising activity, a branding activity and

possibly a customer service activity.

• Russell colley designed the communication tasks.

• Creating a communication task, which involves communications between the

company and the consumer, was solely the responsibility of the Advertising
department.
The goal of communication task in DAGMAR is as follows

a. Awareness

• Communication tasks involved making the consumer aware of the brand or

the product.

b. Comprehension

• These tasks also helped the consumer in understanding the attributes and the features
of the product and what the product will do for the consumer.

c. Conviction

• The communication task convinced the customer that this product was meant for them

d. Action

• Ultimately, after conviction, the customer was to be enticed to take action.

• You will notice how the above ACCA model is similar to the AIDAS model of sales.
This is because AIDAS is used to measure the effectiveness of sales technique.

• Similarly the ACCA model is used to understand the effectiveness of advertising

and the communication task that advertising carried out.

• However, in the DAGMAR model, the issue does not end at just creating the
communication task. Because creating this task is very difficult if the objectives of
advertising are not known.

• Thus, DAGMAR then also involved defining the Objectives for communications.
2. Defining objectives in the DAGMAR Approach

• In this modern age, we know that advertising is used for introducing a product,
building brand eqtuity, for sales promotions or for plain old brand recall.

The objectives of advertising in DAGMAR (which are used to create communication

tasks) are as follows:

a. Concrete and measurable tasks

• The tasks need to be a precise statement of what the advertiser wants to achieve
through the communication.

• Does he want to strengthen the brand image, maximize the brand presence,
penetrate new markets or increase overall sales?
b. Define the target audience

• Before the communication task commences, the target audience needs to be

defined as precisely as possible.

• Example: Are you targeting youngsters, adults, elderly?

• Any of the various forms of segmentation can be used to define the target
audience.

c. Degree of change sought

• What level of perception, attitude or awareness of the customer do you want to

change?

• If a customer is aware of the product, do you want his negative attitude to change
to positive?

• Or if the market is completely unaware, do you want the whole market to be

• aware or only partially the target group itself? These degrees of change which are
going to be the objective of the communication task need to be defined in
advance.

d. Time Period

• To achieve the objectives of the communication tasks, how much time are you
ready to allot.

• If you think that in a month, the product can create awareness in the complete
market, then you are very wrong.

• That’s why major advertisers try to introduce the product for 3 months, and then
communicate the features and benefits in the next 3 months so that the brand
recall is high and the brand acceptance is high as well.

• A defined time period gives better measurability.

• The DAGMAR approach is used by many promotional planners to set plans of
advertising and marketing.

• This approach is also used to set advertising objectives and to measured the
results against the plan

FCB (FOOTE, CONE & BELDING GRID) Grid

• The FCB grid was developed by Richard Vaughn. a Senior Vice President of
Foote, Cone and Belding Advertising.

• It helps direct both our creative strategy and our media strategy as it clarifies how
consumers approach the buying process for different products
• The Grid helps us understand where a product stands in the mind of a consumer,
by estimating whether or not purchase requires a highly involved emotional
decision or a highly involved intellectual decision.

• With that information, we can devise four advertising concepts about a single
product that will influence different buyers.
Quadrant 1

• Decisions are based on highly involved thinking. Purchase requires information

first, which leads to awareness and a considered buy.

• A DSLR purchase needs a lot of analysis since there is high investment.

• There’s also emotion, which pushes the purchase nearer to the right-most feeling
side of the chart, but it’s a thoughtful purchase.

• Health insurance stays on top of high involvement.

• Ironically it juts (sticks out) slightly more to the right-most feeling side of the chart
because it’s more important (or costs more) than the camera.
Quadrant 2

• Decisions are based on highly involved feeling. Purchase requires reflection first,
as personal ego and self-esteem cajole us to buy.

• Skin softening soap is just at the beginning of the feeling side of the grid.

• Perfume blows it away, ending up on the far right of feeling.

• Fragrance evokes higher feeling than a Hallmark card, and also requires higher
involvement.
Quadrant 3

• Decisions are based on lowly involved thinking. Purchase of practical goods

based on habit and routine behavior.

• We learn about the product only after taking it home and not before.

• Example: It’s like the detergent we assess after the first wash.

Quadrant 4

• Decisions are on lowly involvement. It’s the purchase of pleasure products led by
quick personal or peer-led satisfaction.

• Their motto is: “Just do it.”

• Cookies are a low intellectual item, the less you think about them, the more you
want them.

• Now that you know where your product lives, reconsider it from that spot using the
same four quadrants.

• You’ll discover new aspects that are high and low thinking, and high and low
feeling.

• This information develops effective creative options such as using rational versus
emotional appeals, increasing involvement levels, or even getting consumers to
evaluate a think-type product on the basis of feelings.
Cognitive Dissonance

• Cognitive dissonance is the state of mind that holds opposing, and even
irreconcilable (in-compactable ) ideas, at the same time.

• It's a state of mind that most people find sufficiently uncomfortable to motivate them
to find some way of reconciling the two views – for instance, by rejecting the
authority of one of the views.

• Often, the resolution is irrational.

• Marketing strategies that employ cognitive dissonance can be effective, although

only within certain limits.

• People are hardwired to seek consistency in their views and behaviors. Cognitive
dissonance occurs when information comes along that runs counter to your beliefs.
Cognitive Dissonance in Marketing

• Cognitive dissonance strategies that require a consumer to reconcile two

conflicting views by buying a product can be effective in marketing, especially if
the reconciliation of opposing views protects or enhances the consumer's self-
image.

• For instance, you consider yourself a savvy automotive enthusiast. In the course
of a visit to a high-end auto dealership, the salesperson emphasizes that "a lot of
Americans aren't sophisticated enough to understand why this car is actually a
great buy.“

• On one hand, if you resist the sales pitch for this very expensive car, you appear
unsophisticated;
• on the other hand, if you agree, then you're progressing down the marketing pitch
toward the purchase of a car you can't afford.

• Faced with this kind of cognitive dissonance, many consumers will go along with
the sales pitch to avoid being viewed as an unsophisticated person without the
real knowledge required to fully appreciate the car.

Reminder

• Cover 4 P’s of Marketing for PPT Assignment next slide

PPT PRESENTATION (will be considered for 10 Marks -- INTERNALS)

• Make Teams of min. 6 Members

• Assume you are a Marketing Manager of a MNC (product / Service company).

• Prepare a presentation for 15 Min (Max.) on a new Product / Service launch

• Use the theories of Advertising (6 Theories done previously) in explaining to

the Top Management, how you are analyzing and predicting the potential buyer
behavior for the new product / service.

• Also, state the product / service advantages, disadvantages, over their

competitors in the market.

• Apply the 4 P’s of Marketing as well.

Innovation Adaption Model

• The Innovation Adoption Model Process includes 5 phases.

• This model shows the phases from which the customer goes to accept the
innovation in product and service.

The customer has to cross these 5 stages to adapt an innovative product:

a) Awareness

b) Interest

c) Evaluation

d) Trial, and

e) Adopt.
a) Awareness

• Is the phase in which the customers are made aware of the product or services,
that there is a new product available in the market.

• In this stage, Advertising has to highlight the features and benefits of the new
product/s.

• It will help customers to differentiate the product with old product or competitor
product.

b) Interest

• Is the second stage of the customer where he finds the product interesting.
• Now the awareness of the new product spreads in the market., customers start
getting more information about the product.

• If a customer is looking for some specific features, then you have to make sure
this product caters to those needs.

c) Evaluate

• The customer starts liking the product so he starts evaluating the product more.

• The customer evaluates in depth, conducts analysis and compares if there is any
similar products or services, available in market , from competitors.

• And also evaluates, at what price to buy the product?

d) Trial

• Consumer trials are an essential part of a new product launched in the market.

• Product trails and samples allow consumers to try a product at no risk before
considering it for purchase.

• If the product is of long-term use then the trail will help the company to generate
leads, since the consumer gains faith in use of product.

e) Adoption

• Product adoption defines the process of the customer in which they are ready to
buy the product because they understand it’s value.
• This stage needs to be smooth and simple, otherwise, the customer will get
irritated and walk away without a purchase.

For Ex:

• A variety of payment options encourages purchase because if they don’t have one
type, they can go for the one which they have.

• On the other side, if the website has a slow / insecure payment gateway,
customers will stay away.
Information Process Model of Advertising ( IP Model )

• William McGuire developed IP model which assumes that the advertising

audiences act like information processors and problem solvers.

• They observe, understand, digest, compare, contrast the advertisement, they

decide whether it solves their problems or not, and decide on whether to buy or
not buy.

• This model is similar to the Hierarchy model that explains how a customer go
through six phases to take the final decision of purchase.
1. Presentation

• Is when the product is introduced to the customer and make aware that this
product exists in market.

• In this stage, it highlights the features, benefits and uses of product.

• It will help customer differentiate the product with that of rivals.

2. Attention

• The product must attract the customers’ attention. This is done via., advertising
materials. It is a type of “eye catcher”. To grab peoples’ attention you could use:

Photos Powerful
graphics
Illustrations Solving problems
Personality words
Discounts videos
Sound Unique content
3. Comprehension

• Customers evaluate the product in depth.

• Customers check if there are any products of similar nature available in market,
and if there, compare it to competitors.

• They also analyze how much to pay for product?

4. Yield

• This step is about assuring that the customer likes your product.

• The work “liking” should not be confused with an emotional attachment with the
product.

• In this case, liking refers to the consumer viewing some positive benefits
associated with the brand.

Ex: it is available, it looks like a good product, it’s a healthy product, it fits with my
budget, and so on.
5. Retention

• refers to the ability of the consumer to accept and store in memory the relevant
information about the product or service.

• Retention of information is important because most advertising is designed to

motivate customers.

• It does not happen immediately, however, used at a later time to make purchase
decision by customer.

6. Behavior

• This is the final phase, it includes the purchase of products and services.

• Purchase can be offline or online both.

• This stage describes that the purpose of advertising gets fulfilled and it convinces
the customer to purchase the product.
Role of Advertising in Marketing Process

1. Marketing Strategy & Analysis

Marketing strategies are the result of a meticulous market analysis.

• A market analysis forces the Company to become familiar with all aspects of the
market so that the target market can be defined and the company can be
positioned in order to garner its share of sales.

• A market analysis also enables the Company to establish pricing, distribution, and
promotional strategies that will allow the company to become profitable within a
competitive environment.

• In addition, it provides an indication of the growth potential within the industry, and
this will allow you to develop your own estimates for the future of your business.
Marketing Mix Strategy

Definition:

The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market.

The 4 P’s make up a typical marketing mix

a) Product

b) Price

c) Place

d) Promotion
a) Product

• The product or service that you are selling needs to be correctly defined.

• It’s features, how it is packaged must be clear, and then the benefits that can
accrue to customers from their use must be built on.

• At this stage you must decide on all aspects of your marketable product or
products, whether it is style, the quality, the packaging or whether you intend to
provide warranties.
b) Price

• This is the only aspect in the 4 P’s which gives revenue, all others are
expenditure.

• it has a very important role in the image that your product will have and the
branding it will create.

• This can be quite difficult and needs to take into consideration a lot of factors, and
this becomes all the more difficult if there are a lot of variables, in the industry you
are in business in.

• You need to have a strategy on pricing, both for wholesale and retail, bulk sale
and whether you are in a position to offer discounts to ensure customer loyalty.
c) Place

• The distribution of the product is determined by how you plan to distribute your
product.

• Can you set up a system to sell directly to customers, or do you need to deal with
retail stores?

• Is your product only conducive to wholesale methods of marketing?

• These decisions affect the need for warehousing, and can affect your marketing
mix, when costs get added on, because of this decision.

• You also have to decide at this time how you will store your inventory, process
orders and the avenues you will use to ensure that your product is available in the
regions that have a market for it.
d) Promotion

• Promotion of a product has to be undertaken, so that prospective customers learn

about the availability of the item from your business.

• This may require a number of strategies and the use of various media, and the
strategies which can be used for this aspect of marketing are so varied and wide,
that it requires a constant awareness of the effect of any strategy adapted, on the
final sales figures.

• It may be necessary to constantly review the success of each strategy, and find
new ones to constantly boost sales.
• Public relations and how your business is perceived by the customers and the
market in general, can also play a part in proper promotional activities, which are
successful.

• All these four aspects of a marketing mix need to be constantly reviewed and
improved upon, as all of them can make a substantial contribution to final sales
figures and bottom lines.

• Proper research into potential markets and the purchasing power of various
sections of society, who have need for your product, can help to concentrate
marketing efforts so that it has the correct mix to enable growth and expansion of
the business.
Target Market Selection & Identification

• Marketing tailors a marketing mix for one or more segments identified by market
segmentation.

• Target marketing contrasts with mass marketing, which offers a single product to
the entire market.

Two important factors to consider when selecting a target market segment are

a) The attractiveness of the segment and the fit between the segment and

b) the firm's objectives, resources, and capabilities.

a) Attractiveness of a Market Segment

The following are some examples of aspects that should be considered when

evaluating the attractiveness of a market segment:

• Demographics (Age, gender, Geographic location, need / occupation, Edu. Qualif)

• Size of the segment (number of customers and / or number of units)

• Growth rate of the segment

• Competition in the segment

• Brand loyalty of existing customers in the segment

• Attainable market share given promotional budget and competitors‘ expenditures

• Required market share to break even

• Sales potential for the firm in the segment

• Expected profit margins in the segment

• Market research and analysis is instrumental in obtaining this information.

• For example, buyer intentions, sales-force estimates, test marketing, and statistical
demand analysis are useful for determining sales potential.

• The impact of applicable micro-environmental and macro-environmental variables

on the market segment should be considered.

Note that
• larger segments are not necessarily the most profitable to target since they likely will
have more competition.

• It may be more profitable to serve one or more smaller segments that have little
competition.

• On the other hand, if the firm can develop a competitive advantage, for example,
via patent protection, it may find it profitable to pursue a larger market segment.
b) Suitability of Market Segments to the Firm

Market segments also should be evaluated according to how they fit the firm's
objectives, resources, and capabilities.

Some aspects of fit include:

• Whether the firm can offer superior value to the customers in the segment

• The impact of serving the segment on the firm's image

• Access to distribution channels required to serve the segment

• The firm's resources vs. capital investment required to serve the segment

• The better the firm's fit to a market segment, and the more attractive the market
segment, the greater the profit potential to the firm.
Target Market Strategies

• There are several different target-market strategies that may be followed.

Targeting strategies usually can be categorized as one of the following:

1. Single-segment strategy - also known as a concentrated strategy.

• One market segment (not the entire market) is served with one marketing mix. A
single segment approach often is the strategy of choice for smaller companies
with limited resources.

• Example: Tata Salt (no differentiation on age, gender, occupation etc…)

2. Selective specialization - this is a multiple-segment strategy, also known as a

differentiated strategy.

• Different marketing mixes are offered to different segments.

• The product itself may or may not be different - in many cases only the promotional
message or distribution channels vary.

• Example, Off-line stores and On-line stores.

3. Product specialization

• the firm specializes in a particular product and tailors it to different market

segments.

• Example, Levis jeans (for kids, ladies, gents)

4. Market specialization

• the firm specializes in serving a particular market segment and offers that segment
an array of different products.

• Example, J&J Baby & Mother products

5. Full market coverage

• the firm attempts to serve the entire market.

• This coverage can be achieved by means of either a mass market strategy in

which a single undifferentiated marketing mix is offered to the entire market, or by
a differentiated strategy in which a separate marketing mix is offered to each
segment.

• The following diagrams show examples of the five market selection patterns given
three market segments S1, S2, and S3, and three products P1, P2, and P3.
• A firm that is seeking to enter a market and grow should first target the most
attractive segment that matches its capabilities.

• Once it gains a foothold, it can expand by pursuing a product specialization

strategy, tailoring the product for different segments, or by pursuing a market
specialization strategy and offering new products to its existing market segment.

• Another strategy whose use is increasing is individual marketing, in which the

marketing mix is tailored on an individual consumer basis.

• While in the past impractical, individual marketing is becoming more viable thanks
to advances in technology.
Market Segmentation

• The process of defining and sub-dividing a large homogenous market into clearly
identifiable segments having similar needs, wants, or demand characteristics.

• It’s objective is to design a marketing mix that precisely matches the expectations
of customers in the targeted segments.

• Few companies are big enough to supply the needs of an entire market; Most
must breakdown the total demand into segments and choose those that the
company is best equipped to handle.
The 6 basic factors (Attributes) that affect Market Segmentation are:

1. Clear identification of the segment.

2. Measurability of it’s effective size – should justify resources required to target the
segments.

3. It’s accessibility through communication, distribution & promotional efforts

4. It’s appropriateness to the policies and resources of the company.

5. The markets Unique needs – responding differently to different markets.

6. Market responsiveness
Need for Market Segmentation

• Mass Marketing refers to the treatment of the market as a homogenous group &
offers the same marketing mix to all it’s consumers.

• Mass marketing allows economies of scale, realized through mass production,

distribution, & communication.

• The drawback is that consumers needs, taste and preferences will differ and
ignoring the same will let to a Competitor taking it’s benefits.

• Target marketing on the other hand, recognizes the diversity of consumers and
does not try to please all of them with the same product / service.

• The first step, is to target the markets based on their Individual needs, tastes,
preferences in terms of economic, cultural, political, social, technological and
other related aspects.
Bases for Segmentation in Consumer Markets
They can be Segmented on the following basis:-
1. Geographical Segmentation
2. Demographic Segmentation
3. Psychological Segmentation
4. Behavioral Segmentation

1. Geographical Segmentation:

The following are some of the examples of geographic variables:

a) Region: By Continent, Country, State, or even Neighborhood

b) Size of Metropolitan area: Segmented according to size of population

c) Population density: Often classified as Urban, Sub-urban or Rural.

d) Climate: According to local weather patterns in diff. geographical areas

2. Demographic Segmentation

Some of the Demographic Segmentation includes:

Age
Gender
Family size
Family lifecycle
Generation: Baby Boomers, Gen X, Gen Y (Millennium),Gen Z, Gen Alpha…
Income / Occupation
Education levels
Ethnicity / Nationality
Religion
Social Class

• Many of these variables have standard categories For Ex: DINKS (Double
Income No Kids), Full Nest, Empty Nest or Solitary survivors etc….
•
3. Psychological Segmentation

• Segmented according to lifestyle. Activities, Interest, and opinions (AIO) surveys

are one way of measuring lifestyles.

• Some Psychological variables include: Activities, Interests, Opinions, Attitudes,

and Values.

4. Behavioral Segmentation
• Is based on the actual customer behavior towards a product / service.

Some Characteristics are:-

Benefits sought
Usage rate
Brand loyalty
User Status: 1st time, potential, regular, experimental, stumbled upon, recommended
Readiness to buy
Occasions: Events (wedding, birthday, death, naming ceremony, wedding anniversary
etc..), Holiday
Market Positioning

• Market Positioning refers to the ability to influence consumer perception regarding

a brand or product relative to competitors.

• The objective of market positioning is to establish the image or identity of

a brand or product so that consumers perceive it in a certain way.

For example:

• A handbag maker may position itself as a luxury status symbol

• A TV maker may position its TV as the most innovative and cutting-edge

• A fast-food restaurant chain may position itself as the provider of cheap meals
Types of Positioning Strategies

• Product attributes and benefits: Associating your brand / product with certain
characteristics or with certain beneficial value. (Ex: Ayurvedic products)

• Product price: Associating your brand / product with competitive pricing (Ex: Jio)

• Product quality: Associating your brand / product with high quality (Ex: Apple
devices)

• Product use and application: Associating your brand / product with a specific use
(Ex: Fitness Bands to measure heartrate, calories tracker, oxygen levels etc..)

• Competitors: Making consumers think that your brand / product is better than your
competitors (Ex: Apple vs Samsung phones)
How to create an effective Market Positioning Strategy?

1. Determine Company uniqueness by comparing competitors (identify your

strengths and / or their weaknesses).

2. Identify current market position (and how new position will be beneficial)

3. Competitor positioning analysis (identify conditions of market place, and the

amount of influence each competitor can place on each other).

4. Develop a positioning strategy (based on the above steps)

Market Re-Positioning

• Market repositioning is when a company changes its existing brand or product

status in the marketplace.

• Repositioning is usually done due to declining performance or major shifts in the

environment.

• Many companies, instead of repositioning, choose to launch a new product or

brand because of the high cost and effort required to successfully reposition a
brand or product.

Example:

• Maruti Suzuki Baleno initially launched in 1995 (Europe & India) was
discontinued and re-launched in 2015.

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