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Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.

Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Concept Question
1. Define Communication

Descriptive Questions
1. Explain the advertising Communication Process 2. The steps in an integrated marketing communication process.

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Advertising is the backbone for any business. It is a form of mass communication, a powerful marketing tool. When a market or a firm has developed a product to satisfy market demand after thoroughly analyzing the market, there is a need for establishing contact with the target market to eventually sell the product. Advertising helps in reaching to the target market. Advertising can thus aptly be called as the MOTHER OF ALL COMMUNICATION. Advertising is all around us. We are bombarded with ads (commercials) over TV, radio &in the print. When we go to our colleges, offices we are expose to many bill boards, which tell us to drink more milk, donate are eyes, gives you more information, tells you to do family planning etc. On an average, an Indian citizen is exposed to more than 20 commercials per day. In modern times, advertising prevails in all walks of life. It has acquired the distinction of being the most visible & glamorous method of marketing communication. It is the worlds fifth largest industry. Oil, Automobiles, Computers & Agriculture follow advertising in that order. Today it is a million dollar business. Advertising = means to inform COMMUNICATION DEFINED The steps between source and a resource that result in the transference and understanding of meaning - STEPHEN R. ROBINS


Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel & a receiver. In addition, the receiver will sometimes become a source of information by talking to friends or associates. This type of communication is termed word-of mouth communication and it involves social interactions between two or more people & the important ideas of group influence & the diffusion of information.

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Perception process

Source Destination **MODEL OF THE ADVERTISING COMMUNICATION SYSTEM** Message Receiver (Advertiser) Audience (DIAGRAM)

Channel (Media)

Channel (Word-of-Mouth)


Model of the advertising communication system

The source of a message in the advertising communication system is the point of which the message originates. There are many types of sources in the context of advertising, such as the company offering the product, the particular brand or the spokesperson used. MESSAGE: The message refers to both the content and execution of the advertisement. It is the totality of what is perceived by the receiver of the message. The message can be executed in great variety of ways for e.g. the use of humor & fear CHANNEL: The message is transmitted through some channel from the source to the receiver. The channel in an advertising communication system consist of one or more kinds of media, such as radio, TV, newspaper, magazines, billboards, point-of-purchase display, &so on. The impact of the communication can be different for different media. RECEIVER: The receiver in an advertising communication system is also called the target audience. Thus, the receiver can be described in terms of audience segmentation variables, lifestyle, benefits sought, demographics, & so on. Of particular interest might be the receivers involvement in the product & the extent to which he/she is willing to search for and/or process information. It is the characteristics of the receiver-the demographics, psychological, & social characteristics-that provide the basis for understanding communication, persuasion & market processes. 3

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ DESTINATION: The communication model in above diagram does not stop at the receiver but allows for the possibility that the initial receiver might engage in word-of mouth communication to the ultimate destination of the message. The receiver then becomes an interim source & the destination becomes another receiver. Word-of-mouth communication resulting from advertising can be a critical part of a campaign. The reality is that for some products the absence of word-of-mouth communication can be fatal. It is only the word-of-mouth communication that has credibility, comprehensiveness, & impact of affect the ultimate behavior of a portion of the audience. Advertising can actually stimulate word-of-mouth activity, even when it cannot stimulate it, knowledge of its appropriateness and power can be very helpful. An advertising message can have a variety of effects upon the receiver. It can: Create awareness Communicate information about attributes & benefits Develop or change an image or personality Associate a brand with feelings & emotions Create group norms Precipitate behavior


The following diagram of communication & persuasion process shows the various processes that can occur after consumers are exposed to advertisements. First, exposure to the advertisement can create awareness about brand, leading to a feeling of familiarity with it. Second, information about the brands benefits & the attributes on which the benefits are based can register with the consumer can also result from exposure to the ad. Third, advertisements can also generate feelings in an audience that they begin to associate with the brand or its consumption. Fourth, through the choice of the spokesperson & image for the brand, often called brand personality. Fifth, the advertisements can create the impression that the brand is favored by the consumers peers, or experts-individuals & group the consumer likes to emulate. This is often how products & brands are presented as being fashionable. These five effects can create favorable liking, or attitude, towards the brand, which in turn should lead to purchasing action. Sometimes the advertisers will attempt to spur purchasing action directly by providing a reminder or by attacking reasons why the consumer may be postponing that action.

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ These two models help us to understand how & why consumers acquire process &use advertising information. It is also important to at the planning stage to develop a good understanding of where advertising fits into the total pool of information & influence sources to which consumer is exposed. Understanding information processing invariably leads to the need for understanding a wide range of other important psychological constructs, such as perception, learning attitude formation & change, source of effects, brand personality & image.

Awareness / Familiarity with brand Information i.e. brand attributes or benefits

Creation of brand image / personality

Ad Exposure

Association of feelings with brands

Brand Attitude

Purchase Behaviour

Linkage of brand with peers / experts and group norms

Reminder or inducement about brand trait A Model of the communication / persuasion process

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ An integrated marketing communications planning model

Review of marketing plan

Analysis of promotional program situation

Budget determination

Develop integral marketing communication program


Direct Marketing

Interactive / Internet Marketing

Sales Promotion

Personal Selling

Advertising objectives

Direct Marketing objectives

Interactive / internet marketing Objectives

Sales Promotion Objectives

Personal Selling Objectives

Advertising strategy

Direct Marketing Strategy

Interactive / internet marketing Strategy

Sales Promotion Strategy

Personal Selling Strategy

Advertising Message & media strategy & tactics

Direct marketing Message & media strategy & tactics

I.I.M. Message & media strategy & tactics

Sales promotion Message & media strategy & tactics

Sales Message & media strategy & tactics

Develop integral marketing communication program

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ INTEGRATED MARKETING COMMUNICATION (IMC) DEFINED The process of managing all sources of information about a product service to which a customer or prospect is exposed which behaviorally moves the customer towards a sale and maintains customer loyalty. -Northwestern University, Medill School of Journalism

Review of Marketing Plan

Examine overall marketing plan & objectives Role of advertising & promotions Competitive analysis Assess environmental influence

Analysis of Promotional Program Situation

Internal analysis Promotional department Organization Firms ability to implement Promotional program Review of previous program result ANALYSIS OF COMMUNICATION PROCESS Analyze receivers response processes Analyze source, message, channel factors Establish communications goals & objectives BUDGET DETERMINATION Set tentative marketing communications budget Allocate tentative budget DEVELOP INTEGRATED MARKETING COMMUNICATION PROGRAM 7 External analysis Market Segmentation & Target Marketing Consumer Behavior Analysis

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Advertising: Set advertising objectives Determine advertising budget Develop advertising message Develop advertising media strategy DIRECT MARKETING Set direct marketing objectives Determine direct marketing budget Develop direct marketing message Develop direct marketing media strategy

INTERACTIVE/INTERNET MARKETING Set interactive/internet marketing objectives Determine interactive/internet marketing budget Develop interactive/internet message Develop interactive/internet media strategy

SALES PROMOTION Set sales promotion objectives Determine sales promotion budget Develop sales promotion tools & develop messages Develop sales promotion media strategy

PUBLIC RELATION/PUBLICITY Set PR/publicity objectives Determine PR/publicity budget Develop PR/publicity messages Develop PR/publicity media strategy

PERSONAL SELLING Set personal selling & sales objectives Determine personal selling & sales budget Develop sales messages Develop selling roles & responsibilities 8

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ INTEGRATE & IMPLEMENT MARKETING COMMUNICATIONS STRATEGIES Integrate promotional mix strategies Create & produce ads Purchase media time, space, etc. Design & implement direct marketing programs Design & distribute sales promotion materials Design & implement PR/publicity programs Design & implement interactive/internet marketing programs MONITOR, EVALUATE, & CONTROL COMMUNICATIONS PROGRAM INTEGRATED MARKETING

Evaluate promotional program results/effectives Take measures to control & adjust promotional strategies

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

ADVERTISING SALES PROMOTION Print and Contests, Broadcast Ads Games, Sweepstakes, Lotteries Packaging Premiums and Outer gifts Packaging Sampling Inserts Motion Pictures Fairs and trade shows Brochures and Exhibits Booklets Posters and Demonstrations Leaflets Directories Coupons Reprints of Ads Rebates Billboards Display Signs Point-ofpurchase Displays Audio Visual Material Symbols and logos Video Tapes Low interest Financing Entertainment Trade in allowances Continuity Programmes Tie - ins PUBLIC PERSONAL DIRECT RELATIONS SELLING MARKETING Press Kits Sales Catalogues Presentations

Speeches Seminars Annual Report Charitable Donations Sponsorships Publications Community Relations Lobbying Identity Media Company Magazine Events

Sales Meetings Incentive Programmes Samples Fair & Trade Shows

Mailings Telemarketing Electronic Shopping


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________







Mc CANN PULSE: Technique of transforming consumer information into consumer insight. + Mc FOOTPRINT: Method of transforming brands from one market opportunities into expanded multinational platforms. ^ Mc CANN SELLING: Transforming Consumer Insight into effective advertising. Mc CANN ERICKSON



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Concept Questions 1. Function of an ad agency 2. Selection of an ad agency 3. Evaluation of an Ad agency 4. Five Ms of Advertising Descriptive Questions 1. Organisation of an Ad agency with their function 2. Explain the organization structure of an advertising agency (of your choice) 3. How much would you select and evaluate an advertising agency.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

An outsiders perception of the work in an ad agency is one of glamour and glitz. It is often assumed that working in an ad agency means being surrounded by glam dolls and hunks. That it is a profession of high profile and high living with a lot of showmanship, socializing and partying. Till a few years ago people would have ranked it second only to the world of films in terms of the glamour co-efficient. But politics and fashions world have pushed it down the ladder a bit since. Well, the real world of advertising is most certainly a world of high and intensity but in a different way. Though at a first glances an ad agency would seem like any other corporate office, often the similarity would end at the office reception. Once inside, you are in the battle zone. The decibel levels and chaos is often striking arguably second only to the commodity and stock exchange pits. So is the pressure of deadlines, client calls and chasing of work and people both inside and outside the agency. Usually a working day in the agency for most people is long, hectic, unpredictable, stressful, full of drama, yet loads of fun, often including the weekends.

Advertising is an important promotional tool for any marketing campaign. So much so that whenever we think of marketing we think of advertising although it is just one of the marketing tools. Today government bodies as well as non-government organizations go for high profile advertising campaigns. The purpose here is not to increase the sales figure but to increase the awareness of people regarding the relevant topics. Today the marketing manager has a range of advertising options to choose fromfrom interpersonal communication to Internet. Deciding on a correct option calls for detailed analysis aspects like objective behind advertising (Mission), companys earmarked budget (Money), content of communication through advertising (Message), advertising vehicle (Media) and impact of advertising (Measurement). These can be broadly classified as the five Ms of advertising.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ MISSION First of all the marketing manager must be clear on the companys purpose for advertising. Increase in sales figure will be a very broad and to a certain context a vague objective. According to Mr. Philip Kotler, a renowned authority in this field, there can be three possible objectives behind advertising: Information- when a new product is launched, the purpose should only be to inform people about the product Persuasion- Persuading people to actually go out and buy the product. This objective is of paramount importance because of cutthroat competition. Any advertisement must be persuasive in nature, attracting consumers towards the brand Reminder: This objective is relevant for well-established companies. These types of advertisements only try to remind the consumers of the brand existence. For instance whenever we hear or read yeh dil maange more, we tend to think about Pepsi. Same way we tend to associate two minutes with Maggie noodles. The marketing manager should establish a clear goal as on the purpose of advertising, information, persuasion or reminder. MONEY After the objective has been decided upon, the next step is to decide upon the budget. There are several methods for deciding on the advertising budget. The most common among them is the percentage of sales method. Under this method, a certain percentage of sales are allotted for advertising expenditure. Though this method is used widely, there are some problems with this method. The first issue is what percentage the company should take? Even if a company somehow decides a percentage figure, this would mean increase in advertising expenditure when sales are up and less spending when sales are down. This in some ways is quite paradoxical, because logically the reverse should happen. The company needs to spend more on advertising when sales are down. But this method uses circular reasoning and views sales as cause for promotion. In fact sales are a result of promotion. Another method suggests that a company should spend as much as its competitors are spending. This method claims that it would prevent promotional wars. But then like each individual each company is also different. It may not make any sense in spending like your competitor because competitor might be on a different footing.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ MESSAGE As a common experience, we love some advertisements, while the others just irritate us. An appealing advertising will win consumers and will consequently induce them to purchase the product. On the other hand, irritating advertising will create an adverse effect. This is why many companies hand over this task to advertising agencies, which has professionals to make impact -making ads. The message that company wants to convey should be put in a manner that will arouse interest. Moreover it should convincingly highlight upon the products USP. What is said is definitely important but what is more important is how it is said. The tone should be appealing. Words used should be catchy and retentive. These days both electronic as well as print media are overflowing with ads. People have no time to read or see them, and therefore they have to be attractive enough to target audiences attention. This is the job of message. MEDIA Selecting the proper media vehicle for communicating the message goes a long way in the success of any kind of advertising. Each media vehicle has its positive and negative points with a different reach and impact. Therefore a company has to be very clear about its target audience. Choices available are Internet, TV, newspapers, magazines, direct mails, radio and hoardings. Everyone of this has its advantages and disadvantages. Companies often go in for a media mix, i.e. they select more than one of the available choices. Timing is of great significance here. Many industries face seasonal fluctuations and pass through cycles. Therefore advertising should be timed that way to take care of these fluctuations. A limited budget should be prudently allotted among these media vehicles. MEASUREMENT It is necessary that effectiveness of any advertising be judged. Only on the basis of this measurement, can further decisions regarding continuation or termination of the particular advertising campaign be taken. An ad can be judged on the basis of its reach and impact on sales. Good advertising is one that generates brand awareness and consequently brand preference. How much of sales can be attributed to advertising, is a difficult question to answer. Sales are influenced by many factors besides advertising. It is not easy to isolate the impact of advertising on sales. Nonetheless there are some advanced statistical techniques available that can be used with the help of computer softwares like SPSS. Thus a systematic and balanced understanding of these five Ms of advertising will help in designing better advertising campaigns that create a favorable impact on the target audience.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


DEFINITION OF AN ADVERTISING AGENCY It is the core of advertising profession and industry. An advertising agency is: a) b) c) d) An independent business organization Composed of creative and business people Who develop, prepare and place advertising on advertising media For sellers seeking to find customers for their goods and services -American Advertising Agency Association (AAA) There are an estimated 200 advertising agencies in India accredited to INS (Indian Newspaper Society- to be eligible for 15 percent commission) and 8000 odd agencies which are unregistered. Together they serve 6000 clients in India. Four Key Functions of an Ad agency ACCOUNT MANAGEMENT Account Management is the pivot on which the entire agencys work revolves. Also called as Client Servicing or suits, it is the agencys big window to the outside world. The suits are the agencys face to the client. They interact with the clients, take briefs and understand the marketing issues involved. Internally, they brief the creative and media on the jobs and co-ordinate the entire work processes inside the agency. They evaluate the ad campaign and media plan internally and often present these to the clients. ACCOUNT PLANNING It is the second core function in the agency. It is also referred to as strategic planning. However, all agencies do not necessarily have a separate unit for planning. In some agencies account management takes care of the strategic planning involved in their respective brands. Whether as a separate unit or not, planning is the research face of the agency. However they rarely conduct research themselves, though sometimes they may co-ordinate it through research agencies if required.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ CREATIVES Creative form the third core function of the agency. They are also at the core of the production process of the agency as they are the ones who create ads. Generally, the copywriters write the headline and copy and the art directors do the visualizations and layouts. But often they ideate and work together. A headline may come from the art person and visualizations from the writer. Creatives are the agencies lifeline the one who can make or break the agency.

T Account Planning


Planning Buying

Copy writing Art direction

Account Management


Media Operations

Film Production

Print Production

Graphic Studio

Billing Account Administration


Media forms the fourth and the last core function of an agency. With increased media fragmentations, media planning and media buying have emerged as two specialized functions within media. Sometimes the planners may also extend expertise to the both. Media planning involves a lot of number crunching and good quantitative abilities are a critical requirement. Media Buyers not only look other media relations and negotiate rates but also supervise the media operational word like sending release order and ad material to the respective media. They also monitor releases.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Briefing Stage

Briefing from the client Internal Briefing to creative & Media Any research briefing if required Ad campaign and media plan development Internal Review and finalization Presentation to client and approval Any pre testing if required Budget and Estimate approvals Production of film, press ads, collaterals, etc. Media Scheduling and media bookings All release approvals for creative and media Material Dispatch to media Media release monitoring Any post testing if required Billing and collection

Creation Stage

Production Stage

Release Stage



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________




Big agencies like JWT, O&M, and LOWE are called full service advertising agencies because they are ONE STOP SHOP for all services that are offered to the clients. Todays agencies are providing total communications packages for the client brands. They are acting as the custodians of the brands of the clients. 1. CLIENT SERVICING: Also called as Accounts executives. He is link between the agency and clients. He suggests what the client exactly wants to his advertising agency. He is the one who carries the client brief and is also responsible for approvals. 2. THE CREATIVE DEPARTMENT: Under the Creative Director there are a team of Copywriters and Visualisers who arrive at the BIG IDEA. Accordingly the storyboard is prepared and script work is done. The final layout is sent to the client for approval. 3. THE PRODUCTION DEPARTMENT: The production department is responsible to convert the storyboard in to a finished layout (technical storyboard if its for print medium or outdoor. However, the television commercial will be outsourced to a production house (like Prasoon Pandeys CORCOISE FILMS). The final storyboard is made into a technical storyboard, before it goes for shooting. 4. THE MEDIA DEPT.: The Media Planner along with the Media manager and brand manager/media dept of the client prepares the final media budget and purchases Insertions for print media (space buying) or purchases radio spots if its for Radio or purchases TV time if its on television. Appropriate media mix is developed. 19

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ 5. RESEARCH DEPT.: In fact Research dept functions before and after a commercial is made; for pre-testing and post-testing of media respectively consumer insights and brand usages are also tested at times according to client in many situations 6. THE FINANCE DEPT (ACCOUNTING): This dept looks after the accounts (financial records) for the agency. 7. STATEGIC PLANNING: Strategic planning is a heart of an advertising agency. It will be headed by VP Strategic Planning and assisted by strategic planners. These days the clients require a well prepared advertising strategy before the design of the advertisement and hence strategic planning has grown past 4 years. Usually MBAs from reputed management institutes are recruited in these dept. big agencies have a strong Strategic Planning dept whereas in small and medium agencies, it is handled by the creative dept itself.


First and foremost, the agency must be known. Previously unknown agencies are not preferred. Secondly, the agency must have creativity. Creative people are a little crazy, nonconformists. Creativity does not follow any logical pattern. Creative people are like naughty children. The secret of creativity is simplicity. Thirdly, the agency must have a sound track record, a good deal of experience. Fourthly, the accounts executive must have ability to understand the clients problems. Fifthly, you may look t the accounts they handle, and the accounts they have gained and lost. In other words, the work they have produced for other clients does matter. Sixthly, the personal equation of the client with the agency also matters. If you know them personally, they are compatible with you. Seventhly, their ability and presentation may make you opt for them. Premier Auto (the company that makes Fiat cars) was shopping around for an agency to launch its 118 NE. It invited presentations from various agencies and then shifted its account from its old agency Sistas to Ulka. More and more clients prefer to invite presentations for campaigns of new products and then award the campaign to the agency who they think has made the best presentations.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Lastly, there are some unique considerations, some prefer a small, some a medium, some a large agency. Increasingly, clients prefer to fragment their business, giving different products to different agencies. Other factors that need consideration is the staff of the agency and its caliber, its flexibility, practical and consumer oriented approach, the use it makes of MR, its media understanding, the attention it gives to the client, its growth, the ability to handle below-the-line publicity and its international tie-ups. So creativity, commitment to client and the quality of its top management go a long way in the selection of an agency. Unfortunately many think Creativity is just another way of saying, I like the agency.




EVALUATION OF AN ADVERTISING AGENCY The agency is evaluated on the past performance. The number of clients it holds. (For e.g. O & M works on 240 brands at a time) The reputation the agency has in advertising circles (JWT is renowned for its reputation) The particular USP of the agency (on what areas the agency is specialized in, for e.g. O&M is known for creativity. R.K Swamy BBDO is renowned for print; Leo Burnett is renowned for consumer insights. Timely delivery of advertising materials (especially for Cola ads) Agency Evaluation and Selection some Criteria (pg no 291)


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


An Overview. Mudra Communications was founded in 1980 under the stewardship of Shri A.G. Krishnamurthy. It was a single account, 15 people advertising agency wish an initial investment of Rs. 4000. Today, Mudra is the largest Indian advertising agency with a capitalized billing of Rs. 700 crores (Mar 2001), and a portfolio of countrys finest brands. Mudra is one of the countries first transitional Indian advertising agencies in 1994, with stakes in agencies in 6 countries, which facilities the transfer of technology and creative expertise. Mudra has an affiliate in DDB worldwide who is a part of the Omnicom Group. The Mudra group consists of two advertising agencies. 1. Mudra Communication Limited. 2. Interact Vision Advertising and Marketing Pvt. Ltd. In addition to these two there are specialized divisions for Public Relations, Outdoor Advertising, Information Technology, Direct Marketing, Video Software and MAGINDIA.COM, the advertising archive. On Mudras client list multinational brand leaders rub shoulders with leading national brands, most of which have become brand leaders with Mudra. Values Mudras brand success have been possible only because of there tenacious adherence to their corporate values. These values govern Mudras external equations while determining internal growth. Fundamentally they believe that It is better to invest in long term relationships with clients and in the process grow with them rather than temporarily boost billing with short-term accounts. Organizations work best when they work simple, sincere and straightforward. To function at peak level, work groups and task forces must have people who possess a fine balance of good human nature and professional competence. Intuitions and common sense are required and respected. But they must be equally disciplined through research. 22

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Most importantly, an agency is only as good as its last campaign. Past excellence is no excuse for incompetence. Made in India Mudra became the largest advertising agency in the ninth year of its existence. This was achieved by a group of people whose credentials were being Indian and knowing India. Together they took Indian to the Indian. They understood what India made tick. Mudras advent on advertising scene saw the birth of the true Indian advertising professional. A perfect blend of an Indian soul with international outlook. One, who encourages excellence, delivers the good on time and does it in most cost effective manner. This is Mudra spirit. Made in Mudra Made in India Key Facts 1. 2. 3. 4. 5. 6. Billing Million No. of Accounts No of Offices No of Division No of Employees Industry Ranking 2000-2001 7000 120 8 8 549 4


Ahmedabad Bangalore Chennai Delhi

Hyderabad Kochi Kolkata Mumbai

Mudra Divisions 1. 2. 3. 4. 5. 6. 7. 8. 9. Horizon Porter Novelli (Public Relations) ICRG (Market Research) (Advertising Achive) Mudra Digital Consulting ( Digital consultancy for brands) Mudra InfoTech Mudra International Mudra Videotech ( Video software) Prime site (Outdoor Media) Optimum Media Solutions


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Awards 1996 : 90 awards Agency of the Year: Advertising club Copywriter of the Year: Kolkata advertising Club (Freedy Birdy) 1997 :67 awards Agency of the Year: Pioneer Hall of Fame (A.G Krishnamurthy) Kolkata advertising Club Major Accounts (Mumbai). Godrej Foods Godrej Soaps Indian Oil Corporation Kinetic Honda Larsen & Tubro LIC McDonalds MTNL Mid-Day Reliance Industries Reliance Entertainment Reliance Capital UTI Indian Express Screen SBI Mutual Fund Nestle Hindustan Inks Johnson & Johnson skincare Balsara Household Products Rasna

Mudra is a fiercely Indian Agency, home grown, dismissive of sustainability of Global Alignment of advertising account ( the same brand being handled by one network around the globe) and unrepentant in its refusal to sell its stake to any foreign suitor. DDB Needham has long had affiliation with what is an agency own by Reliances famous Ambani family, but this has not led the two up to the altar Mudras pride is not for nothing. It is among few big agencies whose names means something heart-held in the language of Indian Origin, it has build such as I love you Rasna, Dhara, Bennies and Polo. Mudra has a hot growth story of the 1980s (as was Reliance textile brand Vimal). Mudra was the 1st advertising school in India. It won many MNC account on the strength of its market understanding and creativity. Nestle goodies particularly.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Concept Questions 1. Define DAGMAR Descriptive Questions 1. What is DAGMAR? Explain its functions 2. Explain Advertising objectives of moving the target audience through hierarchy of effects model with suitable examples 3. Explain strengthening attitude as an advertising objectives 4. Advertising objectives in terms of Communication Effect.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ THE ADVERTISING OBJECTIVES ARE: 1. 2. 3. 4. 5. 6. Inform and build awareness Create brand knowledge Reinforce positive attitudes about the brand Precipitate buying action Increase sales Build up image

To facilitate the realization of advertising objectives, it is necessary that these are laid down in specific operational terms, and are linked to the time span during which these are to be accomplished. 1. Advertising objectives in terms of communication effects

Ads Advertising Objectives Advertising Strategies Marketing objectives & Strategies Situation Analysis

Ad Planning & Strategy Process


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Model 1: AIDA


This fundamental model has for many years guided copywriters in writing persuasive copy. The term AIDA is an acronym derived from the four words describing the steps in the process. 1. A Attention 2. I Interest 3. D Desire 4. A - Action Attract the audience to the as message and then provoke her. In the central theme that presents forceful selling point, which arouses. To act in favorable manner, that ultimately leads to, Action of purchasing the product, making an enquiry with the retailer or whatever has been set as the copy goal.

These are several methods employed by copywriters to increase the impact of each step in the AIDA process.

Model 2: DAGMAR
Colley developed the DAGMAR model. The model describes the purchase process as under: Non - Awareness Awareness Comprehension Conviction Motivation


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Model 3: Information Processing

William J. McGuire presented this model, in a paper presented at the symposium of behavioral and management science sponsored by the centre for continuing education, university of Chicago. The six steps in the persuasion process, use in this model, are as follows:







Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Model 4: Hierarchy-of-Effects

This model developed by Robert J. Lavidge and Gary A. Steiner, illustrates a series of steps that progressively increases the commitment of a prospect to buy the product.





[Favourable attitude]


[First choice]


[Desire to buy]



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Model 5: Industrial Conference Board

In this model, it is said that consumers pass through five stages:




Buying Intention

Provoking Sales

Awareness is similar to attention as discussed earlier. In this step the emphasis of the ad campaign is to generate brand awareness. New products advertisements usually aim at generating awareness.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Model 6: The Stimulus Response

Product Attributes Attributes Influences Perceptions I N P U T S

Corporate Attributes




Situational including competitive circumstances

The above mentioned communication models have played a very significant role in bridging the gap between communication and advertising objectives. It was easy for ad agencies to understand the ad making process better.

STRENGTHENING ATTITUDES AS AN ADVERTISING OBJECTIVE ATTITUDE Attitude is the most important variable in social psychology. Attitudes govern the response to a stimulus and lead to behaviour, usually to action. Attitude means involvement, and readiness to action, attitude indicates the likes and dislikes of the people about a particular product. Belief is a must in attitude. An attitude cannot be said to exist without a belief.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ COMPONENTS OF ATTITUDE These are the 3 main components of attitude. 1. Cognitive [awareness, comprehension, and knowledge] 2. Affective evaluation 3. Action Rendency ( Conative )




1. Cognitive Component The Cognitive Components is what the individual knows or is aware or believes about the product. The concern is not only believes about the characteristic of the object, but more or less, about its evaluations. It is important to evaluate the object in terms of its qualities, i.e., whether the object the object is good or bad, moral or immoral or necessary or unnecessary. Without belief / opinion of product attitude cannot take shape. 2. Affective Component The Affective Components is the individuals emotional reaction to the object, i.e., whether individuals like the object or not, whether they have favourable or unfavourable attitude towards the object. This component states why the objects carry a positive view. 3. Action Rendency (Conative) This component is behavioral part of the attitude, the readiness to respond with action. If the attitude is negative, it will adversely affect the behaviour of the person. The response may range from ignoring the object stimulus to aggressively attacking it conversely; a positive attitude towards the object is a good omen. It may result in praise and, hopefully for the marketer in the purchase of the product. Attitude may range 32

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ from indifferences to passion with many complexities along the way. Attitudes do not spring up all of a sudden. Experience teaches us what is good or what is bad. Attitudes do not function in isolation. This interacts with perception, thinking, feeling, and reasoning. Therefore, consumer attitude is important for the marketer to assess the success of the product. Attitude Formation and Change through Mass Communication The factors that lead to attitude formation are: CREATIVE POSITIVE ATTITUDE Creative Positive Attitude can also be a worthwhile objection in case of established product. The following creative styles and approaches can be used for this purpose: Message Focus 1. A message can be designed to focus a receivers attention. The focus may be on the source, i.e. who is explaining the message. But care should be taken that the sources and what he or she is communicating by actions, voice, and role position should be in agreement and is able to attract the receivers attention. 2. An alternative may be to concentrate on generating emotional reactions in a receiver by putting him or her in pleasant mood, enhancing and bolstering his or her ego, or using some type of emotional appeal. 3. A receivers attention may be directed mainly to claim being made which are based on widely accepted principles and logic. Thus, the main objective of this style is to focus the attention of the receiver to the message.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Russel H Colley called for the need to provide explicit link between adverting goals and advertising results in his pioneering approach called DAGMAR [Defining advertising goals for measured advertising results] in the early 1960s. All communication seeks to persuade people to think, feel or act in a particular way in their relationship with a brand. The stages of relationship between consumer and brand, and the steps taken to arrive at a purchase decision have been mapped over several years. Yet, despite the efforts of many great minds, we still understand these things at little more than a superficial level. The combination of emotional and rational elements in a buying decision, combined with extensive external pressures mean that any purchase decision is very complex and that each is probably unique. Russel Colley distinguished 52 advertising goals to explain his model. He argues that consumers start by not knowing the brand, hence unawareness, they learn of its existence awareness, then gradually develop an understanding of what the brands offer the stages of comprehension. They come to believe the brands message convection and finally that the brand is right for them and so they buy action.

Unawareness Awareness Comprehensio n Conviction Action The DAGMAR Model


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


I. Sales as an objective II. Communication objective In sales as an objective DAGMAR propounds that direct tools like mail orders etc can enhance sales through advertising. In Communication as an objective; DAGMAR states that awareness for the brand should be created and communicated. Possible Roles for Communication Role for communication To establish awareness of the brands existence on the market To increase the level of that awareness amongst a larger proportion of the target audience To educate or inform the audience about particular aspects of the brand To establish particular perceptions or to correct mis-perception of the brand To generate retailer visits, or mail/telephone responses. To prompt trail or sell products

DAGMAR Stages Unawareness Awareness Comprehension Conviction Action

The DAGMAR approach to advertising planning is summarized in its lucid statement defining an advertising goal. An advertising goal is specific communication task, to be accomplished among a defined audience in 2 given period of time. I. A COMMUNICATION TASK An adverting goal certainly involves a communication task. Step 1: The communication task is based on a specific model of communication process. There are a series of mental steps which a consumer has to go through in purchasing a brand. [Unawareness to Action] Step 2: Before person likes or dislikes a brand, he must learn something about it. It is called as Brand Comprehension


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Step 3: The third step in the conviction step and intervenes between the comprehension or image stage. Most measures of attitude would fall into this category. II. A SPECIFIC TASK DAGMAR emphasis the communication task of advertising as contrasted to the marketing objectives of the firm. The second important concept of DAGMAR is that the advertising goal be specific. It should be written, measurable task involving a starting point, a defined audience and a fixed period. Measurable: DAGMAR needs to be made specific when actual goals are formulated. When brand comprehension is involved, it is necessary to indicate exactly what appeal or image is to be communicated. Target: The audience must be well defined as to when the product is segmented etc Time Period: The objective should involve a particular time period such as six months or a year in order to evaluate the results of the ad campaign.

DAGMAR has 3 potential aspects that make it potentially useful to advertising. 1. It provides a planning tool that can lead to a systemic control over advertising budgets and campaigns. 2. The DAGMAR approach provides guidance to the creative groups. It helps in determining how the advertising should be pre-tested. 3. Finally, the DAGMAR approach provides a mechanism to incorporate behavioral science theory into advertising.

The following are some criticisms to DAGMAR given below: 1. The Sales Goal: Awareness alone doesnt affect sales. Sometimes, a consumer may purchase a brand on impulse behavior. 2. Practicability: A level in the hierarchy, which the campaign has to address, has to be selected. On reality it is not so easy.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ 3. Measurement Problems: Measuring attitude, awareness or brand comprehension is very difficult in practical situations. 4. Noise in the System: There are many other factors which affect sales. There is a problem in the response models. Advertising alone cannot create awareness far a brand always. 5. Inhibiting the Great Idea: DAGMAR is claimed to provide guidance to creative people. The problem is it doesnt have any influence on this work.

It was basically developed to overcome the problems of DAGMAR DAGMAR Module II retains many of the features of DAGMAR. The concept of objectives is similar. An objective should specify a target audience, a specific time period, and be based on me measurable construct. A benchmark level should be ascertained and target levels specified. It should be based on communication model of a process that will lead to a desired behavior. The measure can be based on the desired action getting people to try a brand or to increase their loyalty, for e.g. But will frequently focus on an intervening variable such as image or attitude. Aggregate short term sales or market share can be used as a measure but will usually be inappropriate. DAGMAR Module II will extend DAGMAR in several important ways. Basically, it will attempt to draw on current research to improve the communication model on which DAGMAR is based. First, DAGMAR was associated with a particular hierarchy-ofeffects model of the communication process that included awareness, comprehension, conviction and action. In DAGMAR Module II, the emphasis is on determining the model that will apply to the particular situation. The appropriate model could involve different intervening variables. The hierarchy model based on the innovation adoption process, for example, used such constructs as evaluation, trail, and adoption. If industrial or organizational were the focus, a logical hierarchy step would be to determine, if the brand were on a bid list. Objectives could be equally well motivated by a model that doesnt have a hierarchy premises. The model suggested by Krugman, for e.g. may well be applicable in some situations. The fact is that the communication and the behavior process involved will often be unique to a particular situation. It is unreasonable to expect that some universal model will always apply. The proper approach is recognize this fact and to determine the appropriate model for the context at hand. As Haskins suggested, the true situation includes the qualification, It all depends! 37

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Second, DAGMAR Module II will emphasize more analytical models. The constructs like image, attitude and behavior will made more precise and capable of empirically based analysis. In the case of behavioral constructs, attempts will be made in chapter 7 to ascertain the long-run value of the behavior. In the case of intervening of variables like image, attitude, attempts will be made to make explicit the link between these constructs and behavior. Only when this link is formalized can the key question of implementation be comfortably addressed.

During the early 20th century, especially in the post world war II period, advertisers began to use the techniques of psychology in a big way. This manipulation of peoples mind was exposed in books such as The Hidden Persuaders and The Process of Persuasion by Clyde Millers. In order to combine the communication objectives and response hierarchy psychologists carries out a number of studies. The combination of communication components and a response hierarchy has been suggested by Mc Guire. He developed a persuasion matrix, which combines a particular view of response hierarchy with the communication components. The response hierarchy matrix can be considered as different kinds of dependent variables that are both measurable and for one of the steps that a receiver goes through in being persuaded. The communication components are independent variables of the factor that an affect each step. The Modus Operandi of Persuasion Matrix Independent Variable: Source Message Channel Receiver Destination The communication Dependent variable: component Steps in being persuaded Message presentation [p] 0 Attention [a] + Comprehension [c] + Yielding [y] ++ Retention [r] ++ Behavior [b] ++ Source: McGuire An information processing model of advertising effectiveness 38

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ A careful look at the persuasion matrix [illustrated overleaf] will lead us to understand the functional aspects of the matrix. The dependent variables go hand in hand with the independent variables. For e.g. if the attention has to be increased for an advertisement, one could use factors such as: color, vivid contrast, camera movements, seductive female voices etc, through an independent variable such as source. The persuasion matrix is basically to evaluate the effectiveness of an advertisement. McGuire suggest a simple scoring system of ++, +, 0 [and perhaps to be used where the component might interfere with the occurrence with one of the steps]. Each component would then be scored with respect to the degree of the contribution to the accomplishment of each one of the steps. Scanning the results of each entry would provide an indication to the strengths and weakness of the camping.


The persuasion matrix faced several criticisms: 1. Sacrificing components: A matrix can only display a few components. It cannot successfully match all the components. 2. Only Advertisement cannot impact sales: If a salesman uses persuasion process to sell a product, this model is redundant. Because the components of advertising cannot match with that of salesmanship. 3. Outdated Models: Persuasion matrix is an outdated model in the present scenario. Many advertisements are used these days to build brands, but not to sell brands.

The first step in developing an advertising program is to set the advertising objectives. These objectives must flow prior decisions on the target market, market position and market mix. The marketing positioning and market mix strategies define the job that advertising must do in the total marketing program. Advertising is either good or bad in its ability to achieve its objectives. Though advertising is largely informative and persuasive in nature, yet to do a good job, the objectives of each advertising campaign need to be clearly spelt out in measurable terms, in order to focus clearly on the target audience and in the time period over which these are to be achieved.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Russell H Colley called for the need to provide explicit link between advertising goals and advertising results in his pioneering approach nicknamed DAGMAR Defining Advertising Goals for Measuring Results. Colley distinguished 52 advertising goals that might be used in connection with a single advertisement, a years campaign for a product or a companys entire philosophy. Some of such goals are: 1. 2. 3. 4. 5. 6. Announce a special reason for buying now ( price, premium ) Build familiarity and easy recognition of the package or trademark. Place advertiser in a position to select preferred distributors and dealers. Persuade prospect to visit a showroom, ask for a demonstration Build up the morale of the sales force of the company. Implant information or attitude regarding benefits and superior features of a brand.

According to DAGMAR, the communication task of the brand is to gain: 1. 2. 3. 4. Awareness Comprehension Image Action

Advertising goals should, therefore be specific to the communication task to be performed. The process of advertising goal setting thus, should begin by understanding the dynamics of the consumer behavior and the market environment in order to carry out the task of marketing communication effectively.

Psychologists all over the world made an attempt from the last century in connecting COMMUNICATIONS with ADVERTISING OBJECTIVES. Various communication models were developed in the above course of time. They are as follows: There are several models that have been developed to analyze the responses of consumers behaviour to persuasive advertising communication. Some of them are: 1. The AIDA Model Developed by E.K. strong in his book The psychology of selling 2. The DAGMAR Model Developed by Russell Colley in Defining advertising goals for measured advertising results 3. An information processing Developed by William J. McGuire Model of advertising effectiveness 40

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ 4. Hierarchy of effects Model Developed by Robert J., Lavidge and Gary A. Steiner 5. Industrial conference board Discussed by Christopher Gilson and Model Harold W. Berkman in their book Advertising concepts and strategies 6. The stimulus Response Discussed by A.W. Fery and Jean C. Model Halterman in their book Advertising



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Concept Questions 1. What is advertising Brief 2. Differentiate between brand image and positioning 3. Define Brand 4. Every Advertisement must be considered as a contribution to the complex symbol, which is a Brand Image. Comment. 5. Define Brand Personality 6. Define Brand Equity 7. Define Brand Essence Descriptive Questions 1. Distinguish between image and positioning 2. State various factors affecting Brand Image. How would you develop Brand Image/ Brand Personality strategy? 3. How would determine the positioning strategy 4. Explain any 7 positioning strategies.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

What Makes a Brand?

What does it do to you?? Brand Equity Value added by Brand

Brand Image

Brand Identity Who the brand is Product Core Functional Brand Utility What the brand provides

Brand Personality What is it???

What it does for you??

Functionality: What functional needs the brand will satisfy

Feelings: Who is the brand for personality, attitudes, perceptions, etc

Product Core Brand Brand Utility

Brand Identity

Brand Values

Performance: How does the Brand satisfy the need better 43

Values: Core Values that brand will stand for

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Management thinkers today strongly believe that the customer is king. The single most important job in marketing is the job of creating and also obtaining a customer. Numerous research studies across the world have proven that the best way of creating and retaining customers is by building strong brands. Now what are Brands? Products? Enhanced Products? Products with names? In a simple equation


A brand is more than the mere product it stands for. A product is the amalgam of the physical product and notional images that go with the brand when we recall a brand, not only do we recall the physicality of the product but also the image it conjures. EXAMPLE: SUNDROP = SUNFLOWER OIL + (HEALTHY FAMILY + HAPPY CHILDREN + LOVING MOTHER + TASTY FOOD +) Brands are an integral part of the product policy. The most distinctive skill of marketers is their ability to create, maintain, protect and enhance brands. Brands are long term investments made by the companies for their future to be certain. Companies spend huge amounts of money for the creation of a powerful brand. BRAND DEFINED: A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors American Marketing Association, USA


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Brand composition




RATIONAL APPEAL: These relates to the physical features that are embedded in the brand. Eg :- 4 stroke engine ( Hero Honda) EMOTIONAL APPEAL: These relate to the images or the associations a customer display with respect to the brand. (Emotions about the brands) Eg : ICICI Bank ( Hum Hai na) SENSUAL APPEAL: These relate to the feeling, the sensous image the brand stands for the customers. It should trigger a feeling. Eg: Bisleri ( Play Safe)


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Customer Survey Market Scan

What the brand wants to stand for

Customer Presepective Competition Prespective

Brand Positioning Statement

Current Category and brand perceptions What the Brand will stand for

Current Positioning Landscape

Core Brand Values And Promises


Brand Identity Parameters


Brand Communication 46


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Background Advertising brief Key brand characteristics Brand performance i.e Media Market performance market Competitive analysis priorities. Previous advertising of Budget The brand and the competition of the campaign Budgets- media and non media

Creative Brief

Media Brief Target Audience objective Profile Suggested Advertising Task Media Objective Geographical Suggested Medias Geographical market priorities Media Seasonality of sales Duration Media Budgets Duration of the campaign

Target audience profile Key consumer insights Advertising task Campaign requirements Brand promise Brand image, personality

The first task is the development of a brand is to give the product an identity through a name. The second task is to enhance its recognition by the provision of a symbol or identity. The third task is to develop a unique image for the brand and to build its personality over the long term. Thus successful brands are MAJOR ASSETS FOR A COMPANY, Example: Frooti for Parle Exports.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________












Brand relationship is the ultimate achievement-need of branding. All other aspects (eg. Brand Positioning) might happen but if this does not happen the job is not complete. Brand relationship happens if image and attitude for a brand exist. It is the resultant effect of these two aspects of a brand. Brand Attitude defines what the brand thinks about the consumer, as per the consumer. A brand may have attitude on one or more aspects. Brand Image includes two aspects of brand its associations and its personality. A brand may have image on one or more aspects. Brand Association includes all that is linked up in memory about the brand. It could be specific to attributes, features, benefits or looks of the brand. A brand may have a range of associations. But the one association that stands out in 48

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ memory and differentiates it becomes the position of the brand. A brand may have one or more associations but no position. For a brand to have brand relationship, it should have image. And for image a brand should have association. If among its associations, a brand has a position it is of great advantage. But if a brand does not have a brand position it does not mean that it would not have brand image or brand relationship. In other words, brand position is not a sufficient condition for brand relationship, but a highly desirable condition. Brand Looks, which have a role to play in forming/reinforcing brand associations, are facilitated by two key properties of a brand its name and its symbol. While brand name is a necessary condition for existence of brand relationship, the same is not true for brand symbol. However, if the latter exists it helps the process of brand relationship and reinforces it. Brand symbol two visual signals of a brand its character (Eg. Amul girl, Pillsbury doughboy) and its logo. Necessary aspects for brand relationship to exist are: o Brand name, o Brand associations, and o Brand attitude. Highly desirable aspects for brand relationship to exist are (excluding the necessary aspect): o Brand position, and o Brand symbol.

The term brand personality is a metaphor for emotional relationship that exist between a consumer and a brand. - Wendy Gorden A brand personality is a shorthand way of describing the nature and quality of the consumer response to a brand.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ The brand functional performance must inspire feelings of trust and confidence. Example: Dove, can rouse feelings of confidence that it will improve a middleaged womens complexion. The second condition is that all elements of the marketing communications mix mainly advertising have to give the brand a human face, a personality. Example: Titan watches is superlative example of everything surrounding them- from style, design and accuracy to outlets and advertising - has contributed to the brand personality. The third condition for creating an effective brand personality is that it must be persuasive for the target consumer, he must find it more attractive and relevant compared to similar brands. The fourth and the most difficult condition for creating successful brand personality is that it must be unique and distinctive originally; the attractiveness and features of the creative execution are the prerequisites. Example: Nestle Polo the mint with hole. Some other examples of brand personalities are: Thums Up taste the thunder, personality: adventurous, excitement seeker. Pepsi Yeh Maange More, personality: youthful, irreverent. Peoples personalities are determined largely through the values and beliefs they have, and the personality characteristics they develop. An example of a value or belief is honesty. Many people believe in being honest in everything they do and say. An example of a characteristic is confidence. This is not precisely a belief, but more of behavior. Among the many values, beliefs and characteristics that a person may have, there are some that are particularly likeable and to which, people are inevitably attracted. There are about two hundred words that describe personality characteristics. To illustrate how people think in personality terms while judging brands, listed in the table above are the results of consumer research into how people feel about two companies, when asked the question: If these two companies were people, how would you describe them? These two companies are actually competitors in a service industry. If you were asked which company youd like to be friends with, youd probably choose Company b, as did 95 percent of other respondents. It is not surprising that the service level of Company b can be a better experience for customers. It is also easy to conclude that if consumers consistently experience these differences between the two companies, then the brand image of Company b will be much better than that of Company A. A further point of B interest arising out of this research is that people tend to prefer brands that fit in with their self-concept; everyone has views about themselves and how 50

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ they would like to be seen by others. And they tend to like personalities similar to theirs, or those whom they admire. Thus, creating a brand with a personality similar to that of a certain type of consumer would be an effective strategy. The closer the brand personality is to the consumer personality (or one which they advertising-mire or aspire to), the greater will be the willingness to buy the brand and the deeper the brand loyalty. The process will be: Define the target audience. Find out what they need, want and like. Build a consumer personality profile based on the findings. Create the product personality to match that profile.

Companies such as Levi Strauss that research their target audience fastidiously, favour this type of approach. The result is a master-brand personality that is original, masculine, sexy, youthful, rebellious, individual, free and American. A related product-brand personality (for a specific customer group) such as Levis 501 jeans is Roman-tic, sexually attractive, rebellious, physically adept, resource, independent, likes being admired. Both profiles appeal mostly to the emotional side of peoples mind to their feelings and sensory functions. This profiling approach aims to reinforce the self-concept of the consumer and her aspirations. The approach is ideal for brands that adopt a marketniche strategy, and can be extremely successful if the segment has a high degree of global homogeneity, as is the case with Levis. Companies should periodically conduct analyses of their brand personality. They should match brand attributes with the target-segment attributes. The target could change personality over time. This could be because of various reasons such as: Change in socio-economic conditions Media and cultural influences Change in the immediate external or internal environment of the target. Change in self-perception of the target (in the 1960s the majority of the youth perceived themselves in the Beatles mould, in the 1990s it was Spice Power).

Many brands have fizzled out because their attributes were not able to keep pace with the target groups, which changed over time (especially in the readymade brand-edapparel sector). I wonder how many of us remember brands such as Avis, Apache, Blue Lagoon and Wanted, which were doing fine till just a few years ago. These brands significantly failed to enhance their brand personality with the changing times. To 51

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ maintain brand loyalty, the companies should monitor their external and internal environment regularly as and when required. Brand personality is anything and everything that influences how its target constituencies or even the individual consumer perceives a brand or a company. Brand personality may be the best, single marketable investment a company can make. Creating or revitalizing a positive brand personality means reinforcing a pillar on which the company can lay the foundation for its future. Smart marketers utilize personality variables to segment markets. In the late 1950s, Ford and Chevrolets were promoted as having different personalities. The Ford buyer was identified as independent, impulsive, masculine, alert to change and self-confident. On the other hand, the Chevrolet owner was conservative, thrifty, prestige conscious, less masculine and seeking to avoid extremes. The consumer generally becomes loyal to a brand, which is closest to her thoughts and beliefs. These are bound to change over time (especially generation to generation), and the brand, which is flexible enough to adapt to those changes with an add-on to its personality, lives the longest.

Distinguish between brand image and positioning.

Brand Positioning I. It is a distinctive position the brand creates in the mind of the prospect. II. It is the outcome of segmentation & targeting. It is also the outcome of product positioning. III. It is very difficult to change the positioning of a product, as the entire marketing strategy has to be re-worked. IV. Positioning is derived from the marketing plan of a company. V. Positioning is a PUSH strategy. VI. It is developed before the advertising campaign is finally derived. VII. Positioning can be an ultimate differentiate for a brand. Brand Image It is the distinctive impression the brand creates in the mind of the prospect. It is the outcome of the brand association & brand personality.

It is very easy to change the brand image of a brand, if the brand is addressing a different segment of the market. Brand image is a part of brand management. Image is a PULL strategy. It is the outcome of the advertising. In other words, it can be perceived only after the advertising is screened. Although, image tries to provide distinctiveness, sometimes it is repeated by some brand. 52

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ VIII. Positioning is usually done on Image can appeal to the non-users of the user segment. the brand also. IX. Positioning is usually done by Image is the derived outcome of the the marketer/advertiser. target market. X. It is usually done on the brands It is usually more on emotional plank features or appeal. sometimes using celebrities to create an image. Not much on brand features.


BRAND Brand Relationship = Brand Image + Brand Attitude

Brand Image = Brand Associations + Brand Personality

Brand Associations = Link up in memory with brands attributes benefits and looks

Brand Looks = Brand Symbol + Brand Name

Brand Symbol = Brand Character + Brand Logo PRODUCT

Brand image is one of the two critical elements of brand relationship. It is a combination of association and personality of a brand. Brand image includes a set of BAs usually structured in a logical fashion. For example- Sunsilk helps one have good healthy hair and good knight helps one ensure a good sleep for the family. One or more BAs can generate a brand image and while reading a brand image statement based on BA quite often one may feel like reading a BA statement as both are closely linked. Associations can exist on a host of parameters/aspects such as- provides immediate relief, relief does not last long is affordable, is easy to get has no side effects it is okay for children doesnt have a bad taste its smell is somewhat floral etc. similarly image based on BA can exist on a range of factors like quality, effectiveness, value for money etc. 53

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

BRAND IMAGE = Brand Associations + Brand Personality BRAND ASSOCIATIONS









Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Al Ries and Jack Trout first introduced the concept of positioning, during the decade 1970-1980. Positioning was introduced with idea of being able to compete in a tougher, more competitive marketplace. Positioning is a strategy of differentiating your product from that of the competition, in the mind of the prospect. A positioning strategy may be developed from the products attributes, its specific uses, the type of uses, the product class or category, or the competition. Each of these represents a different approach to developing a positioning strategy. However, all of them have the ultimate objective of developing or reinforcing an image in the minds of the audience. Following are steps of positioning strategies:

1. Positioning by Product Characteristics/Consumer Benefits a) This is commonly used strategy and consists in associating an object with a product characteristic or customer benefit. Colgate is a cavity fighter. The ability to fight cavities is a product attribute that translates into a consumer benefit. b) Sometimes, a new product can be positioned with respect to product characteristics that competitors have ignored. The toothpaste with clove oil. c) A product can also be positioned along two or more characteristics at the time. Double-action pepsodent fights cavities and freshens breath. d) While it is tempting to include several product characteristics at the same time, advertising that tries to communicate too many things at the same time may not drive home the main message effectively. Beside, the resulting image of the product in the minds of consumers may be a fuzzy, confused one. E.g. Infocom too many punch lines. e) A positioning strategy based on product characteristics, could be based on physical characteristics, pseudo-physical characteristics, or benefits. Physical characteristics are objective and can be measured on some physical scale.

Temperature, colour, sweetness, saltiness, thickness, weight. Pseudo-physical characteristics, in contrast, are characteristics that cannot be easily measured. Spiciness, greasiness, creaminess, shininess (Kiwi shoe polish) Benefits represents to advantages that promote the well being of the consumer. Quenching thirst (Limca), not harmful to the skin, satisfying hunger, convenience. 55

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

2. Positioning by Price-Quality The price-quality issue is so important in some product category that it is a positioning strategy in itself. On the one hand, there are certain product categories where high price is automatically associated with quality, or where low price is often considered to be synonymous with inferior quality. Perfumes, whisky, leather goods, stereo systems, designer clothing. Manufacturers of such brands charge more, partly to cover higher cost, and partly to communicate that they are of higher quality. Such brands should be positioned based on the price-quality approach, to communicate that higher price and higher quality goes together. On the other hand, there may be other brands in the same product category that try to appeal on the basis of lower prices. They offer more by way of features and performance and claim to be of quality that is comparable and is another way of positioning based on price-quality. Videocons value-for-money positioning. Zenith Computers: MNC quality. Indian price. 3. Positioning by Use or Approach Associating the product with a specific use is another commonly used positioning strategy. Sometimes, this type of positioning strategy may also be used to expand market for a particular brand. The example of Arm and Hammer, an international baking soda brand, mentioned earlier, is an example of this. Arm and Hammer successfully positioned their product as an odour-destroying agent in refrigerators. E.g. FNL Vicks: Use Vicks when cold attacks. Dettol: The liquid protection against bacteria. Clinic All Clear: The dandruff-control shampoo. 4. Positioning by Product User This is a strategy of associating the product with a particular type or class of user. One way of doing this is through celebrity endorsements. E.g. Lux-earlier their positioning was Filmi Sitaroan Ka Saboon, now new Aishwaryas advertise says that by using Lux you can also become a star. 5. Positioning by Product Class


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Sometimes in order to counter the competition, some brands need to associate themselves with a unique classic example of this is Seven Up, the uncola, mentioned earlier. Other relevant example is diet beers (Kingfisher) and ice beers (recently launched by united Breweries) that positioning themselves with respect to regular beer. 6. Positioning by Culture Symbol This type of positioning strategy consist in identifying something that is very meaningful to people, and that competitors are not using, and then associating the brand with that symbol. Advertising is full of examples of this type of positioning strategy. A classic international example is Marlboro cigarette American cowboy, which helped differentiate Marlboro from other cigarette brands, and developed the Marlboro Man. E.g. Onidas green eyed devil also set Onida apart from the competition by positioning it as something that is envied and talked about by neighbours. This type of positioning tends to have high recall value because of the use of meaningful and relevant symbols. 7. Positioning by Competitor This type of positioning strategy consists in making consumers think that your brand is better than, or as good as the competitors. The competition is used as the point of reference. This positioning strategy can be used to advantage in certain cases. a) First, when the competitor has an established image that has been built up over the years, this image can be used as bridge to communicate another image. For example, if someone wants to know where a particular office is, it would be easier to say it is net to the City Bank building rather than describing the various streets to get there. b) Secondly, sometime it is not important how good customers think you are. It is more important that they think that you are at least as good as the competition. Positioning with respect to competitors can also be done through comparative advertising.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Research to develop a suitable positioning for a brand should try to get information on the following: Who are the competitors? Pepsi for example, might define its competitors as follows: Other cola drinks Non diet soft drinks All soft drinks Nonalcoholic beverages All beverages except water In most cases, there will be a primary group of competitors, and one or more secondly competitors. In this case, other cola drinks could be considered primary competitors, and secondary competitors. How are their brands perceived and evaluated? To determine how competitor brands are perceived, an appropriate set of product attributes should first be chosen for the comparison. Attributes include not only product characteristics and customer benefits, but also product association such as product uses or product users. Foe example, a relevant attribute for beer could be the association of a brand with outdoor picnics, apart from taste, strength, and so on. Once a relevant set of attributes has been chosen, the next step is to do a survey in which prospects are asked to rate competing brands on each of these attributes. This is usually done through rating scale questions, as mentioned in an earlier section on how to measure consumer perceptions. How are their brands positioned? The next step is to determine how competitors are positioned with respect to the relevant attributes. What is the customers image of the various competitors? Which competitors are perceived as similar and which ones as different? Who are the customers for our brand? Analyzing the customers for our brand is the last step before a positioning decision is taken. One-way of doing this is to identify which attributes or customer benefits are most important and then identify groups of customers who value similar benefits. Conducting the above four steps provides answers that will help make actual positioning decision. Even if research is not feasible or justifiable, the information should be obtained through secondary sources. 58

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ While making the positioning decision, certain guidelines should be followed: An economic analysis should guide the decision. For example, if the positioning strategy id to be based on a new product attribute, a sizeable segment should be interested in the new attribute. If an existing positioning is working, then a repositioning strategy should not be consider. A positioning strategy that exploits the market opportunity should not be chosen if it promises something that the product cannot deliver. Therefore, prier to positioning, it is important to conduct blind taste-test, in-home or in-office use tests, to make sure that the product can deliver what it promises. While selecting a positioning strategy, the use of any existing symbols should be considered. Symbols can have strong associations and can strengthen the positioning of a brand.

A positioning strategy, like an advertising objective, should be measurable. It should be monitored over time to see if any changes are needed. A positioning strategy, to be effective, should go beyond product attributes and be based on a richer knowledge of the consumer. In other wards, positioning should also try to associate the product with peoples lifestyle, and even feeling related to the product.

In todays environment, building strong brands and establishing brand equity is becoming more and more challenging. A strong brand acts as a promise, leading faithful customers to pay a premium over competitive products. The most important assets of any business are intangible: its company name, brand, symbols, perceived quality, name awareness, patents, trademarks etc. these assets comprise brand equity, a primary source of competitive advantage.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Most evaluations of brand equity involve utility estimations. Value (utility) of a product features and price level and also measuring the overall utility of a product, including brand name. The difference between total utility and utility of product features is the value of the brand. Monetary value, intangibles and perceived quality are also used in the brand equity measurement. Brand Equity can provide strategic advantages by: Use leverage when introducing new products. Brand can be linked to a quality image that buyers want to be associated with Can lead to greater loyalty from customers. Offer a strong defence against new products and new competitors. Can lead to higher product trails and repeat purchasing, due to buyer awareness of the brand. Example: BPL brand has been valued at Rs. 600 Crores HLL brand has been valued at Rs. 900 Crores


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Long Term Profits

Consumer Franchisee

Brand Loyalty

Premium Pricing

Brand Preference
Persuasion Salience

Brand Identity

Brand Awareness

Brand Personality Brand Image (Image of the Product, Maker, User, Competing Brands)

Brand Recall Brand Recognition


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


The spirits market in India is still at an evolutionary stage and has only emerged from being a regulated market with very few established local players. Indian consumers have not had anywhere near the kind of choice available in the developed markets of the world. India has traditionally been a brown spirit market, which meant that rum and whisky have been the dominant product categories, with brandy claiming some limited share. Until a few years ago, white spirits, wines, liquors, cognacs, etc, where only present on upper and niche markets and all put together were negligible in comparison to browns. This situation was common in many parts of the world as well but 20 years ago. Those markets have seen developed and white spirits now hold strong category shares. Under the impact of the economic and cultural liberalization policies that were put in to effect in India during the early 90s, the spirit industry also saw a gradual shift towards white spirits and lighthearted drinking, away from the traditionally serious brown spirits

Brand history In 1962, Don Facundo Bacardi set up a small tin-roofed distillery in Santiago, Cuba. Here he began manufacturing new Bacardi rum using a formula he had hit upon after many years of experimentation. Rum was, at that time, a fiery drink used by Caribbean seamen to ward off the cold; Don Facundos new formulation transformed rum in to a smoother, lighter, milder drink, called Bacardi. Over the next few years, rum gained popularity all over Cuba, and Don Facundo began expanding his operations. He kept the formula a closely guarded as the Bacardi familys success story took hold. The product was entered in international exhibitions, where it was acclaimed alongside such wonders as A.G. Bells telephone. His sons dreamt of expanding the brand outside Cuba; Cuba was then on the road to independence and was aided by a considerable US presence. Put together, these factors gave Bacardi rum a foot-hold in the US, the first step towards becoming a huge international brand. Today Bacardi sells in over 170 countries, its popularity the world over has made it the No.1 international spirita brand in the world 62

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ The Bacardi Bat Inspite of 6 generations of the Bacardi family distinguishing itself in business, philanthropy and public service, easily the most recognizable member of the family remains the one with no name. It is the Bacardi Bat, the trademark that appears on the label of every product carrying the Bacardi surname. Legend has it that Don Facundos wife, Donna Amalia Lucia Victoria suggested making the Bat the trademark for the new rum, perhaps because of th colony of fruit bats living in the rafters of the first Bacardi distillery. Donna Amalia, who was cultured in the arts believed bats represented a blessing of good health, fortune and family unity. But this suggestion of hers was also hard-headed and pragmatic. Illiteracy was common in the 90th century, and for a product to get recognized and sell, it needed a memorable graphic logo- a trademark. The bat mythology helped. That is the power of mnemonic. Word of Don Facundos bat spread around the world along with his smooth new rum. The bats, local storyteller attested, brought good fortune and added magical powers to his rum. Today Bacardi Bat is a welcome character in more than 170 countries where Bacardi rum is also sold and enjoyed, Accomplishing everything it was supposed to do for more than century, the bat has elevated its presence to new heights. BACARDI IN THE INDIAN CONTEXT Alcohol had never been comfortably accepted by post-independence Indian society. Drinking was generally associated with the darker side of life, with deep and unholy secrets. Dingy bars, seedy-looking characters and drunk villains in hindi movies, in stark contrast with the clean, honest and upright non drinking hero-this typified societys outward attitude to alcohol drinking. Further the absence of international players in the spirits category, as well as comfortably entrenched local brands, meant that the consumer had never been exposed to the glitzy and slick side of spirits marketing until the 1990s came along. The 90s ushered in the winds of change in the entire social and economic fabric of the country, and like everything else, spirits shifted in to gradual movement away from the traditional perception. Bacardi was positioned to ride on this change. One of the key elements to be built in to Bacardis brand character was, therefore its image as the the icon of new age drinking.Changing attitudes to drinking were alreadt apparent, in that drinking was gradually coming out into the open, and especially in urban areas, gaining acceptance. By associating with, and by accelerating this process of change in a positive manner, the brand immediately gained the relevance in the minds of the consumer.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ In India, Bacardi Carta Blancas core value was defined as vibrant sensuality. This represents an unaffected pursuit of enjoyment through ones senses. Vibrant because the character of the brand is passionate, energetic and upbeat. Sensuality, strictly speaking is the appreciation through tactile senses(feel, hear, taste). (In literal terms, sensuality is the overall sensory experience surrounding Carta Blanca) Vibrant sensuality therefore means living life true to your senses in a style that is energetic and colourful (as opposed to languid or passive pleasure). Within the Bacardi portfolio, Carta Blancas the flagship brand. It is the main image driver of the umbrella brand Bacardi; it is also the Indian consumers introduction to the brand.

Selling Strategy for Bacardi Carta Blanca

What is the brand/ product to be advertised? A range of rums, under the Bacardi name;historically better known for white rum and associated with the light-hearted Caribbean spirit of fun, frolic and water.

What is the position the brand currently holds in the consumers mind-and why? An international brand of (exotic) alcohol

How do we want the brand to be positioned in the consumers mind? As an icon of new age drinking

What natural groupings of consumers, bound by a common set of values, singular outlook, attitudes, aspirations, do we wish to reach? Post- liberalization young adults


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

What is the conceptual targets most deeply held desire, need, want, hope, that the brand best fulfils? Unshackle themselves


What is the functional/symbolic role of the product category in the lives of the consumer? Functional: Relaxant Social lubricant Gives a high Symbolic : Let your hair down. Have fun

What is the most compelling rationale to support the role of the product? Less intense in looks, hence eminently adaptable to broader drinking occasions.

What is the enduring spirit which anchors the brand-and how should it speak to the deeply held values of the conceptual target? Vibrant sensuality

TELEVISION ACTIVITY Around the world Bacardi has a long association with a sun-sea-sand imagery which has successfully maintained its brand salience, especially during launch phases. This imagery was also found to lend itself perfectly to the positioning developed for the Indian market. The sun-sea-sand route was researched, and was found to be very well received by consumers. This came through on the concept testing study, as well as on quantitative research parameters. The concept that was tested was Get away to be 65

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ relaxed in a carefree world, via a sun-sea-sand execution. (The first concept in the research section above). Quantitative consumer research showed a strong acceptance of this particular concept, the product and its packaging. Communication for the brand was led by television advertising, which used to international, Friends commercial. The various elements in the theme TV commercial (sun, sea, sand, free spirited interaction between the sexes) were in sync with the new attitudes to drinking, and with Bacardi as an icon of new age drinking. The commercial represented taking drinking out into the open, far away from the dark atmosphere of illicit pleasures. BELOW THE LINE ACTIVITY This was supported by an extensive below-the-line package for the retail channel as well as on premise outlets ( pubs, bars, restaurants, etc.,). The package developed on the sun-sea-sand theme was intended to maintain high salience levels especially during the crucial launch phase. One critical element of the Bacardi persona was the several promotions that were conducted at pubs and discotheques across the metros in India. The pub-going culture, which is still developing, has got a strong impetus due to Bacardis popularization of the concept. A series of innovative promotion mechanics were designed for these on-premise outlets. The promos served various objectives: To announce the launch of the brand, and to give the target consumer a feel of its trendy, young and vibrant character. To generate a sampling of the product- this was a critical role given the fact that while rum was still a new product for the consumer. To gain substantial incremental volume sales. Of course the promotions also offered excellent opportunities to develop different elements of the Bacardi brand character. They have now been built in to the long standing properties of the brand. Some of the key properties are: BATSTAGE WITH BACARDI The Bacardi core consumer being 18-25 years old and urban, music is an effective medium to use get through to him. The idea was to sponsor live bands to perform on a given night in pubs and disco-theques. This was to be done on a regular basis and branded Batstage with Bacardi. 66

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


In the first year of launch, Bacardi attained and surpassed its volume targets. This can be gauged from the fact that the first years volumes exceeded those of its closest competitor, Smirnoff vodka, a brand that has been established in the market for over 4 years. Initial reports indicate that the volume and its growth are being sustained in the second year of operations. Already, Bacardi Carta Blanca is reported to have garnered over 10 percent of the international spirits market in India.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Concept Question: 1. Principles of Copy writing Descriptive Question: 1. Explain stages of copy production 2. Explain the creative process of copywriting 3. Write three components of attitude 4. Explain the Persuasion Matrix


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

By 1910, Henry Ford had spent five years and thousand dollars perfecting his new Model T car. It was time to advertise. But what sort of ad should he run? Ads at that time were mostly art or photos, with a very little copy or words. But Ford believed that art alone couldnt sell his model T. It had to described in detail. A few weeks later, readers of the Saturday Evening Post were startled to see a twopage long black and white ad, with no pictures and all words! When Ford speaks, the world listens, boldly declared the headline. The ad contained more words or copy (1200 words to be exact) than any ad of the day. It detailed the financial condition of the Ford Company, listed its 28 factories assembly plants and branches, and described how Model T was invented. Ford was proven right in no time at all. The ad soon produced more sales than any other auto ad in history. And it gave Henry Ford his first push toward beginning the most profitable manufacturing company in the world, 10 years later. The above example illustrates the power and potential of copy to stimulate action. Let us now look at the specific role of copywriting in the advertising creative process. There are two aspects to advertising creativityCreativity Strategy and Creative Tactics. Both Strategy and Tactics are terms borrowed from military terminology. While Strategy refers to the broad, overall planning of an activity, Tactics refers to the detailed steps taken to execute that plan. Creative Strategy specifies what the advertising is to convey. It is the starting point for Creative Tactics. It involves decisions such as brand positioning, image, personality and attributes. Example: Macfast serves delicious wholesome, food made-on-the-spot to your order that provides a change from the usual fast-food meals. Creative Tactics, on the other hand, determine how the message is going to be conveyed. It includes both verbal and visual development of the message. In this section, we are concerned with copy, or Verbal Creative Tactics. Verbal Creative Tactics involve decisions such as type of copy, appeal, etc. which will examine in detail later. Example: Macfast --- The fffrresh fast food alternative. Accompanying visual creative tactics for TV commercial for the restaurant could includeextreme close-ups of the food, showing freshness of ingredients, close-ups of eaters to show enjoyment of food, or the above slogan written in an unusual type style. 69

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Let us now refer back to the Model T, to understand the objectives of copy. This example illustrated the ultimate purpose of copyto persuade or remind people to take some action, in order to satisfy a need. However, good copy must fulfill some basic objectives, before going on to induce action. As a first step, copy must gain the prospects attention. Simply having a great idea is not enough it needs to be presented properly and have stopping power. There are several devices which could be used to achieve this attention-gaining function. The headline is usually the major attention-gaining device. It can halt the progress of readers through newspaper or a magazine. Various tactics may be used for gaining attention through headlines. We shall examine these in detail later. One effective type of headline is to ask question and get prospects to read on, to find the answer. For example, the Grasim Suitings caption: How does Robert De Niro turn on the Heat? There is a pun on the word heat, which refers to the movie starring Robert De Niro. The curiosity of the reader is aroused and he is tempted to read further. The message: Wearing Grasim Suitings makes you a star. You ve now grabbed your customers attention. Hes looking at the ad. But if you cant keep his interest, youre going to lose him. As a copywriter, you will need to talk to him, about him, about his problems and needs. Interesting copy is like an effective salesman. If it is inviting, enthusiastic and encourages participation, it will hold the prospect. If not, it will be shunned like a rude salesman! Copy can hold interest through use of subheads, humour (provided it is relevant), invigorating body copy, variety in sentence construction and length, choice of words, and combinations of letters to mention a few techniques. Again we will discuss these in greater detail, in later section.

Be Concise Be Simple Be Specific Be Personal Make it Believable Be Clear 70

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Make it intersrting Make it Persuasive Keep a surprise in the Copy Follow the Headline and Illustration. The renowned advertising agency, McCann Ericksons motto is Advertising is the truth well told, Copy must also strive to live up to this motto. The truth as perceived by the consumer (or credibility0 is more important than the literal truth. Copy must present the facts in a manner that consumers can believe. This often poses a challenge for copywriters. A simple example will illustrate this. Lets say an instant remedy has been discovered to cure the common cold. While this may be absolutely true it could be probably not be communicated directly in the advertising. This is because most consumers have deep-rooted skepticisms regarding cold remedies, and would be reluctant to accept a message about instant cure. In this case, the copy would have to convey the message in an indirect, yet credible manner. It is not sufficient for a copy to say, a product has this and this, so buy it. Consumer reaction is likely to be: What will all those features do for me? Having informed prospects about the products features and established credibility, the next task of copy is therefore to create a desire for the product. The copy must promise a benefit to the consumer, and show him how and why he will be better off with the product than without it. Example The Apco appliance is easy to use because it has 14 moving parts, attractive because it comes in three colours, and safe because its plug is shielded. The above example is likely to create desire for the product, because it states the products benefits and backs them with proof. This is also known as a reason-why or rational appeal. The important point to remember is that the benefit must be matched with a real or perceived need of the consumer, in order to heighten desire. It should also be presented in such a way that consumers believe it and understand its application to their own situation. Finally, having taken the consumer through the initial stages of attention, interest, credibility and desire copy must achieve its ultimate purpose- motivate the prospect to take some action.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ The copy must spell out precisely what the prospect is expected to do. The proposed action may be immediate, e.g. Visit our showroom today, or future, e.g. Come to our sale, September 14 .The action may be directly requested as above, or indirectly implied in the copy (asking the prospect to associate a manufacturers product with high-quality). Common action aids used by copywriters are- convenient and ample availability, simple payment terms, immediate pick up or delivery, special bonuses for buying now, memorable slogans and so on. The important to remember is that consumers are essentially lazy and have to be eased into a sale.





CREATE DESIRE (Product benefits) MOTIVATE ACTION (Use tools of advertising)


Having acquired background information about the product, the copywriter must first come up with a basic concept, around which to build the campaign. This is called big Idea and is believed by most advertising professional to be the hallmark of a great campaign. The big Idea can be developed through certain techniques. Projecting cultural values relevant to the products use. Stretching the products use beyond a believable level. Building a little drama into the product. Looking at the product in a completely different light and asking questions beyond its basic use.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ To be effective, the big idea should be Original Eg : Raymond The Complete man Relevant Have a long-term relationship with the brand eg Pulsar Definitely Male. Share an exclusive belonging with the brand. Lend itself to exclusive across various media. Have universal appeal.








Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Concept Questions 1. Explain Media 2. Urban and Rural Media 3. Media Brief 4. List out components of Media Mix 5. What is media planning 6. Why is media planning important 7. What is pre and post media mix 8. List out various media vehicles available in India 9. Explain Media reach 10. Distinguish Print Media v/s Electronic Media 11. Media Vehicles in rural communication / urban communication 12. List out the Dos and Donts of media planning 13. Sources of Media Research in India 14. List any three methods of arriving at Media Budget 15. Name the main media organizations in India 16. Name one Media channel for each class of Media 17. Media Buying 18. Media Scheduling 19. Define Media Related terminology GRP, TRP, Reach, Frequency & Impact. Descriptive Question 1. Explain the Merits and Demerits of Different Media (any one) in India. 2. Explain the various media vehicles with emphasis on Merits and demerits (List out at least two) 3. How is Media Research done in India? 4. Highlight the role of Media Research with examples 5. How do you foresee Internet as the future medium in India? 6. Do you think Internet as a medium has failed in India? 7. What are the main elements of Media Plan? What is the process? 8. What are the main issues in deciding media budget? 9. Media is becoming more important in the advertising strategy. Comment 10. Discuss the non-conventional media mix in India? 11. Measurement / Media Models/ Media Buying/ Implementation/ Scheduling. 12. Media Models


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


You can read the news today from any of the 6,830 English or 39,825 vernacular newspapers published in India; catch it on the tube 22 terrestrial and over 100 satellite channels, with 8 devoted to news; log on and surf the net for the latest; or get the days headlines on your mobile. Numbers bear this out; with 10 million television households, India boasts the third largest television market in the world, with the cumulative circulation exceeding 12 crores, its print industry ranks 5 th globally. A bouquet of private satellite channels has segmented the market in terms of veiwership and advertising. There are 35 million cable and satellite households in the country. Big numbers mean tough time for todays media planners, media planning has gained dominance in India because of the following factors: Increasing no. of media option: - a media planner has to be skilled professional with good analytical and decision making skills, as the option to select in media have grown manifold. e.g.: - There are 16 different magazines for women in India in English language!!! Growing importance of media research: - media research has been in its infancy in India, until recently. However, a number of independent research organizations have sprung up over the last few years. Media research is now being carried out by different agencies using various tools. Audience fragmentation: -as a result of increasing no. Have specialized media options, the no. Of people watching a particular TV program, or reading a particular publication has become considerably smaller. This is known as audience fragmentation. Reaching these specialized audiences requires careful selection of the best combination of media. Growing no. Of media literate clients: - advertisers today are becoming more cost conscious and media savvy. They want to get maximum mileage for their campaigns within limited advertising budgets. Hence, a media planner has to select innovative media to reduce cost.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ MEDIA DEPARTMENT IN AN AD-AGENCY




Outdoor Advertising Media Posters Hoardings Travel Displays Bus Shelter Local Trains Sky Writing Sandwich man

Indoor Advertising (Media Conventional) Print Radio Television Movie Theatre Cable TV Direct Advertising Media

Envelop Enclosures Booklets and Catalogue Sales Letter Gift Novelties Package Inserts Emerging Media (Innovative Media) 76 Internet Atms STD Booths (Zip Phone) Short Messaging Service (Sms) Wap Enabled Device Computer Kiosks

Rural Advertising
(Unconventional) Folk Theatre Puppetry Wall Paintings Videos On Wheel Post Card

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Medium Newspapers Creative Advantages impact of black against White. Creative Disadvantages less visual impact.


higher quality than prestige factor. graphic & color possibilities combination of sight, sound, & Movement. What you see is What you get- credibility. opportunity to use sound. Can personalize a message.

size not as large as newspaper.


limited time commercial, clutter.


No visual excitement. Fleeting message, Distracted message.


As 85% of the clients money go into media planning, the ad-agency must see that the clients money is spent in the most useful and effective manner. The advertising agency takes the following issues into consideration when arriving at the media budget. Many a times even the client (company) fixes the media budget and accordingly the agent and the client sit together and finalize the deal. The marketing mix or 4ps can effect the media decisions very strongly. 1. Interaction of the media with the product: - the very nature of the product may suggest one media over the other.. A product like a perfume needs a distinct image and would advertise in a womens magazine. Eg:- mercedes benz India ltd (MBIL) used only print medium ( magazines and newspapers) to highlight its safety features in their models like c-class, s-class, and e-class (RK swamy bbdo is their ad-agency.

2. Interaction of media with the price: - price is also a key factor to be considered in choosing the topic of media. A premium priced product will require the use of prestigious or class media to support its market image. 77

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Eg: - Shaw Wallace launched antiquity rare premium whisky to create a new segment in Indian whisky market----that of a super premium whisky. It was targeted to the upscale premium whisky consumers. It used below the line media and banked on direct marketing campaign. It distribute miniature bottle samples and also sponsored the amateur golf tournament in india. 3. Interaction of media with the place decision: - the product is the channel of distribution also important in media planning. If the product is available in the local areas, localized media should be used. Eg: - O & M designed ads for the orange mobile only for the Mumbai market. Hence, they compared airtime along with vada pav and cutting chai, which are famous in Mumbai in their outdoor media. 4. Interaction of media with promotion mix: - the effort devoted to advertising, personally selling and sales promotion techniques can also affect the media plan. The use of sales promotion device like coupon may use the of newspaper as the medium to distribute the coupons. Eg: - holiday companies like Thomas cook, Cox & kings prefer print ads in newspaper like to to generate leads by giving sales promotion schemes. Thus, media decisions have to be taken carefully by even taking into preview in which stage of PLC the brand is.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Advertising Objectives & Strategy Brand Awareness Brand Persuasion


Advertising profile & Media habits

Media Objective Reach Advertising Exposure Frequency

Media TV, Newspapers, Magazines, Radio, Outdoor Readership profile Viewership profile

Media Strategy

Media Selection

Media Scheduling Media Operations



Placement & Monitoring

The total number of different persons exposed to an ad at once is its reach. The number of different persons exposed to an ad at least once among its defined target audience is its effective reach The total number of different persons reached at least once for an entire media schedule is called its cumulative reach Reach is always meant to be unduplicated and for a specified period of time.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

The number of times a person is exposed to an ad is its Frequency. The minimum number of times (threshold) an ad is to be exposed to each reached person among the defined target audience is its effective frequency. The average number of times a person is exposed to the entire media schedule is its average frequency. Like reach, frequency is also for a specified period of time.







Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ MEDIA OBJECTIVES Before the media strategy is formulated, the advertising planner and the media planner will set the objectives. Specific, operational are formulated. An example of a media goal is as follows: Use media that will provide broad national coverage these are some essential terms to set the media objectives Reach: - It refers to the total number of people or households exposed to an advertising message in an issue of a publication, or in radio/tv program, once during a given period of time. Time period for broadcast media in 4 weeks, and life of an issue for point (say newspaper, one day) reach is expressed in percentage terms. Frequency: - Also referred to as OTS (opportunity to see), refers to number of times a person or household is exposed to the same advertising message in program or an issue, during the given time period. Frequency is expressed as an average of F= TOTAL NO. OF EXPOSURES REACH


Sometimes the media planner may want to set his goal in terms of the best possible combination of reach and frequency. This is known as the GRPs. it is an indication of the total weight of the media buy. It is calculated by multiplying reach and frequency. E.g.: Programme X has a reach of 60 and an average frequency of 5. The GRPs for the programme are 60*5 = 300 MEDIA PROCESS






Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ THE MEDIA STRATEGY Media Strategy refers to a specific course of action with the media. It describes how the media planner will achieve the stated media objectives. There are 4 strategic decisions to be taken by the media planner: Which media will be used? How often each will be used? How much of each will be used? When will they be used?

The media planner has to take the following factors when developing a media strategy: Scope of the target audience Consumer purchase patterns Mechanical considerations

THE MEDIA PLANNING The first step in media planning i.e. to match the media with the target group. The better the match of the target with the media, the less will be the money wasted on delivering the messages to the consumers for whom the product was intended to. This is known as weighting. The second step in media planning process will be the selection of the Media Mix or the most optimal combination of media. It is important for the media planner to distinguish between media types, vehicles and media units. E.g. Contract Ad Agency used only Star Network for planning the media for the launch of Cadburys new chocolate TEMPTATIONS. In this process it was a WIN-WIN situation to both CADBURY and STAR because both of them got benefited. Contract launched a sales promotion scheme with the help of Star Network for Temptations.

MEDIA BUYING Media planning also involves allocating media budgets to media types. Budgets may be allocated based on the importance of media types and/or geographic regions. Geographic allocation usually marketing objectives


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ REGION SALES POTENTIAL BUDGET GOAL (based on sales potential) SOUTH 25% Rs. 50 lakhs EAST 15% Rs. 30 lakhs WEST 30% Rs. 60 lakhs NORTH 10% Rs. 20 lakhs Media buying may be defined as the process of executing a schedule of desired media weights for brands at a lowest possible cost. The media buying process can be divided into 2 broad stages: Deciding what to buy Setting out to buy at the most competitive rates.

SPECIALIZED MEDIA SERVICES With clients becoming particular about media buying rates, some agencies are creating their own specialized media buying houses. Such agencies are termed AOR (Agencies Of Record). JWTs AOR is called FULCRUM, Lintas call it INITIATIVE MEDIA, Mudras AOR is called OPTIMUM MEDIA SOLUTIONS. Agencies are now turning their attention towards independent media buying houses, because these days satellite channels and print media are offering heavy discounts on bulk buying. Two specialist independent networks are discussed below: Mind share: This is an independent network of WPP group, the larges agency conglomerate in the world. Mindshare entered the Indian market in 1996. it purchase media for its group agencies JWT, Contract, O&M and FCB ULKA. It is surprising to know that Mindshare got its first client no the day it opened its office. HLL purchased media worth 600 crore from Mindshare. Today, its annual billings are 1500 crore. Carat Media: This is Europes leading media specialist. It entered into India in 1998. Carat offers the Indian clients media consultancy, which includes media strategy, research planning, buying, and media selection as a total package of services. It purchases media for agencies like Mudra, Clarion, and RK Swamy BBDO. Last years billing were 90 crore. MEDIA SCHEDULING This is the final step in the media process (media plan). It refers to the timing of the media insertions. A media schedule is usually prepared for the entire campaign period, which is usually for a period of 6 months or 1 year. The following factors are taken into consideration in preparing a media schedule: 83

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Seasonal patterns of the products (Monte Carlo advertises more in winters) Repurchase cycles (FMCGs require more advertising) Product life cycle (a product in introductory stage requires more advertising) Competitors media schedule (Coca-Cola and Pepsi)


Continuous Advertising: this refers to advertising without breaks. Products with short repurchase cycle that are purchased frequently are the examples. E.g. HLL, Coca-Cola, Pepsi etc. Flighting: this is an intermittent pattern with gaps where no advertising is done. This is a case for seasonal products, where funding is limited and the products with a long repurchase cycle. E.g. CRY (Child Relief and You) cards and Monte Carlo woolen wears. Pulsing: this is continuous advertising, which gets heavy during certain periods. Seasonal items follow this pattern of advertising. E.g. Rasna (Rozana and Utsav) Blinkering: this is strong advertising during periods with short gaps in between. E.g. Eagle Diaries start advertising from September and stops advertising in October and again go for strong advertising (bursts) in November and December Thus the media planning is very complicated and involves a lot of expertise. Media planners play a very crucial role in media budget decisions.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Analysis driven



Media Choice

Weight Level



Brand Experience Driven



Media Choice Narrowed by attitude, widened by demographic Unconfined by media

Weight Level Scheduling

Leading to action not just awareness


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Media Class

Media Vehicle

Media Size/format

Media Schedule


Channels, programs Newspapers, Magazines

60 secs, 30 secs

Date, day, time slot Date day position


Full page half page, 100cc, double spread, single page B/W color Date day, time slot 60 secs, 30 secs Location, positing, duration


Channel. Programmes Billboards, Kiosk


40` x 40`, 60` x 60`



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Concept Question 1. Public Relations / Role, Importance 2. Role of PR in corporate image 3. Corporate advertising


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


All living beings have relationships of one kind or another and that includes companies, institutions as well as people. Relationships can be good, bad or indifferent, and may change from time to time. To build relations, we need to communicate and interact. Communications is a means by which we give as well as receive information. Public Relations is the most effective communication tool that companies and people have to build and maintain relationships. Public Relations as the term suggest, broadly mean relations with the public and involves a whole range of activities. The word Public refers to an institutions or a companys employees and customers who are directly affected by its policies and actions. In PR language the plural publics is used to refer all the people a company has to interact with at some stage or other. Public Relations is communication on behalf of an organization to a number of publics ranging from customers to employees plus the media. As the late founder PR Edward L. Bernays says that main elements of PR practically as old as society; informing people, persuading people or integrating with people. PR includes publicity (Stories in the mass media with significant news, value), news conferences, company sponsored events, open houses, plant tours, donations and other special events. PR is often referred to as a new or young profession or business. This supposed newness is sometimes given as excuse for misunderstandings about PR. People who are new entrants to the world of PR are often confused by its breadth, and fail to recognize the very simple purpose of PR, which is to create understanding.


It is difficult to define PR. Most definitions are descriptions of the functions pf PR rather than true definitions.

Institute of Public Relations UK (IPR)

Public Relations practice is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics. 88

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ PR IS ABOUT PR IS Two way communication Giving information Creating understanding Building and maintaining relationships Gathering goodwill. Reputation Perception Credibility Confidence Harmony


PR professionals can do anything from coordinating a company sponsored golf tournament to giving newspaper reporters a tour of a new factory. PR reaches its wide range of audiences by using any number of PR techniques to convey its messages. Whether it be through a private PR agency or an in house PR department, the PR person is required to undertake major functions. Following are some of the important PR functions and activities: 1. COMMUNICATING WITH PR PUBLICS We are all a public of one kind or another, whether we are consumers of products, employees, shareholders, or members and customers of a company, organization, trade or professionals association. Publics in the PR language are classified into internal and external publics. Internal Communication: Full and part time employees of an organization, their families, trainees, trade union officials, form the internal publics of an organization. Employee communication is a vital part of any PR programme. The ultimate success of the organization depends largely on the success of its internal communication. This ensures smooth flow of information from the management to its employees,


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ improving employee performance, team spirit and coordination. Full and truthful information both way results in: Harmony in the work place Trust and confidence between the employer and employee Healthy and safe working conditions Work satisfaction, fair salary and satisfaction for each employee Pride in the organization

External Communication: Governments, investors, distributors, customers, suppliers and shareholders, environmental groups and other people affected by the organizations policies and actions are the external publics of an organization. Lets look at each of theses closely: a) Governments: PR is a major in the relations between the industry and the government. PR job is to support a companys efforts to sell products to the government agencies and make sure that the government laws and regulations do not unfairly obstruct a companys business and progress. PRs involvement in this area includes conducting surveys and other research building coalitions and using media to promote their message. b) Investors: Investor relations involve communicating with the current and potential investors, financial analysts and government regulators. PR people operating here must have extensive knowledge of corporate finances, financial markets and government regulations. Current investors want to know whether to keep the companys stocks and bonds they own, and potential investors want to know if the company has a promising future. 2. COMMUNICATING WITH THE MEDIA The PR professional is required to make cordial relations with the media. Media Relations is about the management of the media channels available to any company. For people engaged in business and industry, the press is the most important communication media. Good press relations assure that a press release will be carried by the leading dailies. The main function of PR while working with the media is giving them what they need, in the correct form and at the right time. PR should never be a barrier between the media and the organization. To make most effective use of various media, the PR person has to keep 3 key factors in mind: The message to be conveyed The target audience The media through which the message will reach the target audience 90

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ 3. CORPORATE COMMUNICATIONS The term Corporate Communications covers all communication activities which an organization undertakes as a corporate entity: everything that involves communication with staff or which reflects the organization as a whole. Each company has a personality of its own. Corporate identity should take into consideration the whole personality of the company and not just an important aspect. Corporate identities should not be changed frequently. Before a change is thought about, extensive research is essential. The success of a corporate identity programme involves detailed research to define the organizations present image. Corporate communication is aimed at: i. ii. iii. iv. The general public Investors and financial analysts Competitors and suppliers Government and pressure groups

Crisis management is a key PR function. This has become an important part of PR as it specializes in dealing with negative public opinion when the company is in trouble. A crisis can blow up at any time, and unless it is handled calmly and effectively, it may have disastrous results; a career or a company can be ruined. Planning for a crisis involves planning for a possible crisis in the first place and quickly providing clear information and when a crisis hits. The key to good crisis management is information. Principles of Crisis PR: Be prepared Provide background information Manage information flow Agree to a commonplace of action Be authoritative


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Apart from its traditional areas of operations PR is also used in innumerable specialized areas. Following are three of these specialized areas: i. Marketing Public Relations (MPR): Marketing Public Relations is the use of public relations strategies and techniques to achieve marketing objectives. The purpose of MPR is to gain awareness, stimulate sales, facilitate communication, and build relationships between consumers and companies and brands. The principal functions of MPR are the communication of credible information the sponsorship of relevant events and the support causes that benefit society. Marketing public relations is the process of planning, execution and evaluation of programmes that encourages purchase and consumer satisfaction through credible communication of information and impression that identify companies, their products with needs, wants, concerns and interest of consumers. PR is used in marketing specifically: To build and maintain product brand image or awareness Repositioning the brand in a different slot Overcoming negative perceptions It is a cost effective targeted communication process that leverages news media, and other communication vehicles to enhance reputation and create compelling interest and purchase intent amongst key stakeholders for a brand. ii. Brand PR: Brand PR as the name suggests is about building brand reputation through PR. Seen as a relatively new concept in the market today, Brand PR is a very old practice in the industry. The main aim of Brand PR is to bring about credibility to the company and its product. Brand PR can be defined in the following manner:


Brand PR emerges from the combination of two different terms Brand and PR. Before defining the term BRAND PR lets look at its each of the two words individually: BRAND = PRODUCT + IMAGES PR = IMAGE OF THE BRAND + EFFECTIVE COMMUNICATION The meanings being clear now we can say that Brand PR is about promoting a brand and building its image in the market.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ iii. Online PR: With the technology advancement at its peak today, PR is also keeping its pace. That one reason why online PR has tremendous growth potential in the market. A very popular way of online PR is through Blogs. Blogs are nothing but online journals. These are sent across by various promoters to the target audiences for promotion. These journals contain complete information about the product. It has proved to be a widely accepted form of Online PR.

Corporate advertising has been around for decades perhaps as long as product advertising. But it is not discussed very often. Unlike product advertising, which obviously helps to sell a product or a service, corporate advertising sells an idea or an organization itself. When an organization wants to influence consumer attitudes, public opinion, or other important publics such as suppliers, stockholders, governments and employees, it uses corporate advertising. Corporate advertising is a special type of advertising that is used is by business organizations to create and maintain positive attitudes toward their companies. Corporate advertising promotes the company rather than its products or services because it is designed to show a favorable picture of a firms products, publics and overall corporate health. Corporate advertising is also undertaken in order to project an organizations personality, culture, and values to the outside world. Corporate advertising is closely related to public information, rather than to its sales. So it comes under the function of Public Relations. Goals of Corporate Advertising: Corporate advertising has traditionally served three goals: a) Image Building: This traditional role is the most important one and is designed to build consumer awareness and goodwill. It is aimed at general audience to present the positive qualities of a company. b) Financial Relations: It is aimed at informing and building confidence in the financial sector. It also focuses on shareholders and potential investors, thus ensuring financial security and independence. 93

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ c) Advocacy: This explains and promotes a companys viewpoints and position and a controversial issue, or any issue that affects the company in anyway. Today however corporate advertising has a mush broader role: a) To improve name awareness b) To proclaim the organizations views on an issue of importance c) To publicize positive news d) Ti add staff requirements e) To give information about the organization


Big industries companies and organizations have used corporate advertising to make a positive impression on customers and investors for a long time. Corporate advertising is a highly useful marketing tool. It can improve the morale of a companys employees. In certain situations, such as take over bids, it can make good impression on the investment community. Many have questioned the necessity of corporate advertising as in how important is knowing the name of the company manufacturing a certain product for the consumers. People these days are more conscious than before. Corporate advertising gives the products an edge. Consumers often cannot see much difference between products, when they have to choose form a wide range. Being aware of the companys name can make them decide faster and choose better. Corporate advertising can be important in building consumer confidence for marketing big and expensive goods like cars, electrical and electronic appliances. The opinion that people have of a company determines to a large extent its ability to attract employees and executives of high caliber.


When an organization wants to influence publics un the marlet place it uses different types of corporate advertising. This depends on: The needs of a particular situation The audience or the public to be addressed The message to be communicated 94

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Different types of corporate advertising include: 1. Corporate Identity Advertising 2. Institutional Advertising 3. Public Relations Advertising 4. Issue Advertising 5. Public Service Advertising



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Concept Questions: 1. Define Sales Promotion 2. Sales Promotion method (any 1) 3. Give a tool of sales promotion and explain which promotion tool will be used. Descriptive Questions: 1. What is the role of sales promotion? 2. Explain the basic tools and techniques of sales promotion 3. Develop a sales promotion strategy for a particular product.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Sales Promotions is one of the important elements of the marketing promotion mix or the integrated marketing communication. In this age of intense competition, where the bottom line is quick sales, marketers are beginning to rely more and more on short term tactics to win the battle for consumers minds and wallets. Short term tactics to accelerate sales come under the category of sales promotions. A formal and comprehensive definition of Sales Promotions is one given by the American Marketing Association- namely that sales promotions consists of those marketing activities other than the personal selling, advertising, direct marketing and public relations, that stimulate consumer purchasing and dealer effectiveness. Clearly, sales promotions are a marketing activity or tool used for the purpose of generating sales, by targeting either the final consumer or the trade. The difference is that sales promotions have specific and sole purpose of directly trying to generate quick sales. Sales Promotions and advertising are both part of the marketing communication mix.

Sales Promotion

Consumer Promotion
Pull Effect

Trade Promotion
Push Effect

Consumer Franchise Building Type

Monetary Incentive Type Sales target incentives Trade Advertising Support Allowances for Merchandizing Other incentives

Contest Prizes Premiums Tie-ins Free Sampling Loyalty Programs

Discounts Price Packs Coupons Other Schemes


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


There are four methods involved in sales promotions


Consumer Sales Promotions

Trade Sales Promotions

Business to Business Promotions

Sales Persons Promotions

1. 2. 3. 4.

Consumer sales promotions Trade sales promotions Business to business promotions Sales persons promotions

But before dwelling any further into the nuances of the chapter let us define the methods of sales promotions: CONSUMER SALES PROMOTIONS (CSP) In the previous section, we defined sales promotion as those marketing activities other than selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness. I this section we are going to discuss promotional activities aimed at the final consumer. These activities rely on what is known as a pull strategy- that is they depend on the consumer to literally pull the product through the distribution channels. Before looking at the tools and techniques of (CSP) let us look at some of its specific goals: a) Encourage trial: Most new products fail because too few people try the product or because trial does not lead to repeat purchase. Especially when the concept is new, most people are hesitant to take risks. Sales promotion directed at the consumer offers a reason for trying the new offering. b) Encourage brand loyalty: It is not enough to persuade consumers to try your product. The real challenge lies in getting them to stay with your brand. As we


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ saw with the subscription wars competitors are always ready to come up with counter offers to woo away your customers. c) Increase product usage: (CSP) could also aim to persuade customers to buy a product in larger quantities. d) Encourage consumption of other products in your line: when marketers product portfolio consists of several related products, (CSP) may aim to create demand for more than one product. e) Reinforce advertising efforts: (CSP) could help to emphasize product benefits highlighted in the advertising. Once you have decided what you want the (CSP) to achieve, a technique has to be chosen. A single technique, or a combination of techniques may be used. The various tools/techniques involved in the (CSP) are: Sampling: This consists in offering a small quantity of the product free, or at a very low cost, in order to encourage trial. It is most commonly used by large firms which produce packaged foods, health and beauty items. Hindustan Levers and P&G samples for their detergent brands. Samples may be distributed door-to-door, through the mail, with magazines and newspapers in the store, or anywhere where your audience is likely to be. A sample can stimulate a higher rate of trial than any other promotional efforts. Sampling is however a costly way of introducing or encouraging trial of a new product. Sampling will only be successful only if trial translates into repurchase. Couponing: A coupon is a certificate good for a specific price reduction, on a particular product, for a specific time period. It is a medium by which the manufacturer offers a consumer a price deal. If redeemed at a retail store, the coupon is used by the retailer and the wholesaler to gain reimbursement from the manufacturer. Coupons are most commonly used by manufacturers of packaged foods. Coupons can help a new product to be launched, build market share. Money-back offer: In this case the marketer offers to return a certain amount of money to the consumer if he is not satisfied with the product. This may take the form of a full or partial refund, after the product is returned. Money-back offers help to reduce the risk involved in trying new products. They also help to reward existing customers, encourage multiple purchases, and persuade consumers to buy now rather than later. The disadvantage with this technique is 99

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ that refunds are not available on the spot. Consumers are normally reluctant to go through the process of filling out refund forms, sending them in and waiting for cash back. Price incentives: This is the use of a short term reduction in price to stimulate demand for an established product whose sales is declining. Such price incentives may take the form of price promotions or price packs. A price promotion is a short term reduction that is available to everyone who buys the product during the promotional period. While some price promotions decrease the selling price by a specific amount (Rs 100 or Rs 500 off, depending on the product), others reduce it by a certain percentage (20% or 50% off). Price packs are generally more effective than price promotions. A price pack normally includes something extra with the regular product package. One type of price pack is the bonus pack which offers more of the product at the regular price. A second type of price pack is the banded pack. Here two or more units of a product are sold together at a lower price than if purchased separately. The buy one get one free offers are examples of banded packs. Premiums: A premium is the offer of some type of mechandise or service either free or at a greatly reduced price to induce purchase of another product or service. The specific purpose of a premium is to induce present consumers to increase their use of brands or to purchase it in larger sized packets. It can also help to switch consumers from their present brand to that of the promoters brand in order to gain trial use, with hopes of repurchase. Premiums may be distributed in a no of ways: o By enclosing it in a product package known as a in-pack premium. o By attaching it onto the package known as a on pack premium. o By giving it away at the point of purchase, known as a shop or store premium. o By offering it as a container holding a product, called a container premium. o By distributing it through mail in return for proof of purchase known as a mall premium. Premiums may be classified In terms of whether they are offered free or at a reduced price. Premiums offered at reduced price are known as self liquidating premiums. The purpose of such a premium is to cover the


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ manufacturers out of pocket costs. Premiums are also an expensive technique and unless tremendous volumes are generated no company can afford to do this. Contests and sweepstakes: A contest is a promotion based purely on the participants skills and abilities. It requires that the participants apply a skill in creating an idea, a concept or an end product contests are usually based on coining a name or a slogan for a new or existing product or answer a question related to a product. A sweepstake on the other hand is purely based on chance. Each participant has an equal chance of winning a prize from an extensive and expensive list of rewards lucky draws and lotterys are examples of this. Both contests and sweepstakes are powerful sales promotions devices as they have the ability to involve the customer and build excitement around the product. The disadvantage with these techniques is that it is difficult to test them in a limited market before using them on a national basis. Frequency programmes: As the name suggests the purpose of such a promotion is to increase frequency of purchase. This is usually an on-going promotion used commonly by service industries. Thefrequent flyer programme offered by the airlines is the best example of this. The advantage of such a programme is that they build a long term brand loyalty with the customer. Point of purchase displays: Attractive displays of a product can trigger purchases even if the purchase was not originally planned. Point of purchase display materials such as special merchandise racks, banners and danglers etc. can be used to effect, to encourage consumers to try new products, switch brands or make unplanned purchases. Joint sales promotion: Consumer sales promotions need not always be for a single advertisers product. Often two or more marketers join together and offer a combined promotion. The biggest advantage with this type of promotion is that the sharing of work load and expenses. The disadvantage is that the loss of control over creative, media and budget elements. To recap what we have discussed in this unit the various goals and techniques of (CSP) may be summed in the table below:


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Sr. No. 1. GOALS Increase Trial TECHNIQUE Sampling Couponing POP displays Price packs Bonus packs Premium Bonus Packs Price Packs Refunds Contests and sweepstakes On-pack and in-pack premiums Refunds


Increase Consumer Inventory


Encourage Repurchase


The importance of sales promotions may be grouped as follows: ADVANTAGES TO CONSUMERS On the consumers point of view sales promotions methods are beneficial to them in the following way: a) Increased product knowledge: various consumer promotions methods such as demonstration, training to use the product etc give sufficient products knowledge to consumers with regard to its operation. b) Availability of products at reduced prices: (SP) tools like price off deals, premium offers discounts etc reduce the prices of the product when purchased on notified occasions. c) Higher standard of living: the consumers also get plenty of opportunities in using the new cheaper and durable items to their satisfaction which may help them to maintain a higher standard of living. IMPORTANCE OR ADVANTAGES TO PRODUCERS/MANUFACTURERS The producers have a no of advantages:


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ a) Increase in sales: (SP) programme attracts the consumers and stimulates them for larger purchases leading to increased sales. b) Demand for product and services: the (SP) techniques have proved successful in introducing new products and services. By the supply of free samples the new product makes its place in the market. c) Capture of new market: the (SP) programme facilitates the producer to capture new markets for his products easily. IMPORTANCE OR ADVANTAGE TO DEALERS/MIDDLEMEN The dealers have the following advantages: a) Facilitates larger sales: the dealer get advantages of (SP) techniques for increasing their sales. (SP) is a co-ordinating activity between sales advertisingand public relations efforts and they reduce the resistance at the point of sales. b) More facilities and assistance: the producer under the sales promotional programme provides various facilities and assistance to the middlemen such as assistance to the marketing research, providing with display materials and managerial assistance etc for maintaining regular stock of sales. c) Direct relation with customers: a direct relationship between the dealers and the customers are established through the sales promotional techniques which will continue for a long time. IMPORTANCE TO THE SOCIETY AND THE NATION The importance of SP to the society and the nation are as follows: a) Increase in standard of living of the people. b) Increase in employment opportunities. c) Increase in GDP and per capita income.

TRADE SALES PROMOTIONS (TSP) CSP contributes only partially to the success of a product. Much also depends on the willingness of wholesalers and retailers to carry and sell the product. This is particularly important today when power has shifted from the marketer to the retailer. A few years ago, companies with huge advertising budgets and extensive distribution networks could use their marketing muscle to move products onto retail shelves. Today retailers command terms and demand incentives from the manufacturer for giving preference to his products. Some specific objectives of TSPS are: 103

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Encourage stock of new products. Raise or lower inventory levels of an existing product. Provide an incentive to sell a product. Encourage more prominent and attractive display of a product. Offer support and training for distributors and the sales force. Strengthen relations with the trade.

Either one or a combination of tools/techniques may be used to achieve the above goals: i. Trade deals: This is a short term arrangement whereby the wholesaler and the retailer agrees to give a manufacturers product a special promotional effort. The deal could take the form of product discounts, cash payments or additional discounts offered by the manufacturer. Buying allowance: this could take the form of cash payment, a product discount or additional goods offered to a distributor to encourage him to carry a new item that he may not ordinarily buy or to encourage purchase of a certain quantity of an existing product during a certain period. It is a push strategy. Display allowance: this is a cash payment given in a form of a fee or a discount in exchange of a desirable shelf, location or space for a point of purchase display. It is generally given to support an established product. Slotting allowance: this is a technique generally used to promote new products. It also involves a cash payment or a fee given to the retailer in exchange for a slot or position on a shop shelf.


Sales support: both dealers and the sales force need to be equipped with some basic selling tools in order to push the product. Sales support could take the form of training programmes, seminars, product demonstrations and distribution of materials such as brochures, videotapes and slides that show detailed product information. Prepared by the advertiser for dealer or salespersons use these materials could be presented to prospects during sales calls at (POP) or at trade shows. Yellow pages advertising: this form of advertising is much more common in the U.S. than in India. An ad in the yellow pages of a directory creates awareness regarding availability of your product. Once a prospect has seen an ad or a commercial for your product he tends to check the yellow pages to see where he can buy it. 104


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ iv. Specialty advertising: This another way of advertising in non-traditional media. Pens, calendars, diaries are all examples of specialty advertising. In contrast to premiums which are given only when purchasing a product, specialty items are offered free of charge without having to purchase something. Their purpose is to create goodwill. BUSINESS TO BUSINESS (B2B) business to business is also an important method of sales promotions. But they are used for industrial products and not much for consumer products. Therefore their sales promotions techniques may also differ from that of consumer products. For example a company needs spare parts as a major input or raw material then it will have an auction where different suppliers will come and the supplier that bids the lowest price will be chosen. Now suppose the company wants 1,00,000 spare parts then it will go for economies of scale and try and purchase say about 80,000 spare parts from that particular supplier with some sort of concession. SALES PERSONS PROMOTIONS The following promotion aids are used for sales force promotions: a) Sales meetings: producers often organize annual meetings for the sales force for giving them necessary information about any new product to be introduced, new sales plans and techniques and the new sales programme of the producers. b) Contest: sales contest for the salesman are organized from time to time by the producers. They are awarded with cash prizes and other benefits on the basis of highest sales, minimizing field expenses etc. c) Sales literature and letters: salesmen are provided with various printed literatures, such as sales manuals, folders, price lists, designs and directories of customers etc. it is extremely helpful to them un their contacts with customers. d) Product demonstration kits and visual sales aids: salesmen are often provided with sales kits, containing the models of industrial and technical products. e) Premiums bonus and gifts: premiums are given for achieving prescribed sales quotes. Bonus is paid to salesmen from the portion of profits of the firm every year to motivate him for better efforts. Gifts are also given on special occasions such as Diwali, Holi etc.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Concept Question 1. Any 1 ad budget method can be asked for example- The competitive parity method Descriptive Question 1. What is an ad budget? Explain any 4 methods for determining an ad budget


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ An advertising budget reflects the importance given to the function of advertising within a company. The budgeting process is the responsibility of the top management along with the marketing manager. The advertising budget is both a planning and control device. There are many managerial functions that are performed through the process of budgeting. Managerial goals are discussed and are synchronized with marketing and advertising objectives. This provides a forum of communication that resolves conflicts and sets the priorities for the communication plan of the company. An advertising budget is a plan that sets a limitation on advertising expenditures, states how expenditure will be allocated and controls the dispersement of expenditure over a designated period of time. The process of budgeting is therefore a decision making process that divides the total appropriation under different expenses heads. For example if the total advertising budget for launching a new product is rupees two-three crores, then deciding that 1.5crores will be spent on the national media, is a budgeting decision.


It is the primary responsibility of the advertising manger to prepare draft budget proposals. It is his duty to access the needs of the company with respect to the challenges posed by the market. He also takes into account the cost of the media, creative and actual production, while preparing the proposals. This draft budget then becomes the basis of discussion between the marketing manager and advertising manager and sometimes, even the advertising agency (especially when the agency has a long term relationship with the company. This result in final budget plan that is then recommended to the top management for approval. Though this is the most scientific process of arriving at the advertising budget, it is sometimes not followed, especially by small advertisers. In such circumstances the top management may decide upon the amount to be spent (budget appropriation) and the advertising manager will then plan how to allocate this sum between different expenditure heads.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ One of the most difficult tasks facing advertisers and ad agencies is the decision on the optimum money to be spent on advertising. Advertisers want to minimize expenditure and maximize the returns. Though advertising expenditure is considered to be an investment, its utilization has to be intelligent and profitable. Though there are several accepted methods of arriving at the budget, the individual brand budget will depend upon several factors such as profitability, marketing objective and competitors position. The various methods, which are used, for setting advertising budgets are: 1. 2. 3. 4. 5. 6. 7. 8. 9. Percentage of sales method Unit of sales method Task and objective method The competitive parity method Brand history method All you can afford method The break even method The quantitative method Share of voice method

Each of these methods has certain advantages and disadvantages. In reality, a combination of these methods will be used. 1. PERCENTAGE OF SALES METHOD: The percentage of sales method is the most widely used widely used method of setting the appropriation, although it has been criticized by many. The percentage is based on the past years sales or on estimated sales for the coming year or on some combination of these two. This is simplest method, as it requires little decision making. Many companies in India use this method to arrive at a tentative budget appropriation. But this method suffers from a basic drawback in that it does not take into account any specific need of the market situation. Moreover, when past sales are used to arrive at the current years budget, the figure may have more historical value rather than current utility. Advertising leads to sales and the amount of advertising expenditure depends upon the sales target and therefore, when the percentage of future sales is used the estimates are more realistic. In conclusion one can say that this method is not appropriate as market situations change rapidly and past sales alone are not an effective indicator of the companys communication needs. 2. UNIT OF SALES METHOD: 108

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ The unit sales method also relates the advertising expenditure of sales. In this approach, a percentage of the price of each unit of the item sold is allocated to advertising. Thus a soap manufacturer might budget that a cake of soap costing Rs.6/- will have Rs.1.50 as the advertising expenditure. Thus, if the manufacturer sells one lakh units, his expenditure on that brand will be Rs. 1.5 lakh. This approach is useful as it links the price of a brand with its advertising expenditure. This approach is simple to plan and execute. However, it does not lead to efficient marketing since past sales determine how much a firm should spend on advertising, when in fact advertising is a tool to create sales and expand markets. This also assumes that the advertiser is satisfied with the current rate of growth in sales. This is rarely so, as every advertiser aims at improving the rate of growth. In an extreme situation if sales go down, a firm following this method will also reduce advertising expenditure. This will be disastrous for the company as it may lose its market rapidly to competitors. In conclusion the unit of sales and percentage of sales method are not suitable to a dynamic market situation. However they are useful guides to give direction to planners who use them as a basis for deciding the ad budget, in combination with other methods. 3. TASK OBJECTIVE METHOD: This method is gaining more popularity because it provides a more logical basis for deciding advertising appropriation. The objective task method concentrates on the marketing/advertising objectives that are pre-decided and ask these questions: what is the role of advertising in obtaining these objectives? How much should we spend to achieve these objectives? Thus under this method a company launching a new product will decide to spend more money as it has to create immediate awareness amongst consumers.( for example Ranbaxy will spend more on its new product Olesan). For an existing well know brand, the company may spend less on advertising (for example Ranbaxy will spend less to advertise its product Garlic Pearls.) As it is obvious in the above example, the objective task approach directs the efforts of manufactures to think through the objective while setting the budget. There is one problem involved in the use of this method of setting the appropriation and that is: how does one determine just how much advertising and what type of advertising will achieve the stated objectives. The present methods of research do not give a direct link between advertising expenditures and achievement of the objectives.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Until more sophisticated methods are developed managers will have to face this problem of uncertainty while deciding the optimum budget. 4. THE COMPETITIVE PARITY METHOD: This is the most controversial method and few executives admit that they use it while preparing the budget. In this approach an advertiser bases his budget decision primarily on the expenditures of competitors. That is they try to keep pace with their competitors advertising budgets. This method could be useful in deciding individual brand ad expenditures. It has the advantage of recognizing the importance of competitors and ensure that the competitors do not increase their ad expenditure to a level that affects the advertisers sales. But the approach has disadvantages. Firstly your objective may be different from that of your competitors. And secondly it assumes that your competitors are spending optimally. It also maintains the present market position rather than bringing any positive change for the company. If you want to overtake your competitors you may have to spend more than them and spend this money more efficiently. 5. BRAND HISTORY METHOD: Under this method the brands product life cycle is considered while setting the budget. Thus a brand at the introductory or pioneering stage will use more advertising appropriation than an established brand. Brands that are facing a decline may also use more advertising to add new life into it. For example Close Up, the toothpaste manufactures by Hindustan Lever had a stagnating market share till recently. In 1990 its spent Rs. 3.45 crore on television advertising with its new theme close up: a mouth wash in tingling red and blue colours. The result was that close up has over taken Promise and is now number two in the toothpaste market behind Colgate. 6. ALL YOU CAN AFFORD METHOD: This approach means that the advertising budget will be decided on the basis of whatever money is left after all other fixed and unavoidable expenses have been allocated. This method seems to be illogical and unambitious but conservative management use this method as it is safe and ensure that there is no overspending. New entrepreneurs have no other option but to follow this method when they are short of funds. 7. THE BREAK EVEN METHOD: The break even or the marginal analysis method attempts to quantify the advertising spending level that will offer an organization the highest additional gross profits. That is the firm continues to spend on the advertising as long as the incremental expenditure 110

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ are exceeded by the marginal revenue they generate, thus maximizing the gross profits of the firm. This method has an advantage because it helps in diagnosing any problem, that is when the company is overspending or under spending. But it suffers from the disadvantage of limited research techniques that cannot isolate the effect of advertising on marginal revenues and gross profits. Other activities such as personal selling and sales promotions also influence the revenue earned by a company. Moreover, it assumes that there is an immediate effect of advertising expenditure. This is possible in direct mail advertising. In most other advertising there is a carryover effect that is a potential consumer may be influenced by the ad, in the month of June but may make a purchase in December. Advertising may also attract customers who become loyal customers for several years. The immediate purchase measures up to only a small part of the value the firm enjoys from such continuous purchases. This drawback can be overcome by using the experimental method. In the experimental method varying advertising expenditures are used in different cities. For example the advertising expenditure in Pune may be greater than the advertising expenditure in Hyderabad. Then sales in the two cities are compared to find out which is optimum level of expenditure. FOLLOWING ARE THE FACTORS THAT ARE CONSIDERED IN DETERMINING THE ADVERTISING BUDGET. 1) Corporate objectives: Using the objective task method, linkage between advertising expenditure and corporate objective will be established. The advertising expenditure varies depending upon corporate philosophy and priorities. For example in India, we find that public sector corporations such as BEST or the Mahanagar Telephone Nigam Ltd spend less on advertising than private sector companies such as Reliance Industries or Tata Industries. 2) The product Life Cycle: This has a very important influence on the ad budget and companies use the brand history method for deciding how to spend on the product. 3) The budgeting period: Usually companies have a yearly budget but some may prepare long term budget that match the long-term objectives.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ 4) The competitors strategies: Product categories, which have stiff competition, witness a greater expenditure on advertising. For example, in India television manufacturers spend more than the manufacturer of ear buds.(manufactured mainly by Johnson & Johnson ). When competitors increase their advertising expenditure others are forced to follow them. 5) Affordability: While the affordability level depends upon the advertisers priorities ceilings on how much to spend is fixed by the advertisers in order to avoid overspending. 6) Crisis management: Even the best-laid plans can be affected by the changes in the marketplace. Advertisers have to keep aside contingency funds that can be used to tackle unexpected market challenges. 7) The type of product: Consumer products need more advertising than industrial products. Among consumer products shopping items such as toothpaste, shampoo and soaps need to be advertised consistently in order to maintain their brand position. Such products will have a higher budget appropriation. 8) Importance of middlemen: In product categories where middlemen or retailers have to push the product, manufacturers may prefer to spend more on dealer commission than advertising. For example Sumeet washing machines and kitchen mixers and food processors are not advertised heavily. This is because the brand name Sumeet is familiar to consumers who have accepted the product image of quality and after sales service. The company prefers to use retailers to push the brand. In most common durables such as televisions, VCRs, microwave ovens and so on, the influence of retailers is very strong. Unlike impulse purchase products such as chewing gums, chocolate and ice cream, which therefore use more of advertising. 9) Scope of the market: If the advertiser wants to approach the national market his budget has to be much more than that required for local or regional market. 10) The quality of the campaign: 112

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ When the advertising campaign is striking and is unusually creative, it is immediately noticed by consumers. In this case the advertisers need not spend on buying media, time and space. To compensate on poor quality campaign an advertiser may have to spend more on media, in order to enjoy the same degree of visibility. For example the Cherry Blossom ad, which used a Charlie Chaplin look alike, was a striking television commercial that immediately gained attention.



Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Descriptive Question 1. Evaluating Advertising effectiveness- Pre and Post methods.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Effectiveness testing involves specialized set of research techniques known as Advertising Research. This is purely evaluative in nature, as opposed to the research done prior to campaign planning, which helps to develop the overall campaign strategy. A lot of time and money is spent on the latter type of research, also known as Developmental Advertising Research. Advertising research gives advertisers and campaign planners feedback such as how many people received the message, how it was interpreted, which media were most successful in delivering the message, and what sales resulted from the advertising. This feedback in turn, helps to refine or modify the campaign in successive phases.


1. Growth In Advertising Spends: In India, the growth in the scale of advertising expenditures has been brought about mainly by the entry of MNCs. According to a recent study, MNCs account for over 50% of the total money spent on advertising today. This has lead to increasing research spending to test the effectiveness of the campaigns. 2. General Trend Towards More Scientific Decision-Making: Market research has taken off in a big way in India, because it provides accurate data based on which decisions may be taken. The same is true of advertising research. It helps to select the approach that best achieves the objective of the campaign. 3. Differences In The Effectiveness Of The Individual Advertisements And The Media: Research has revealed that advertisements costing the same amount of money differ vastly in their effectiveness. Some medias are found to be more effective than others, irrespective of the message. This has given rise to the need for advertising research, to see whether ads have high or low ratings.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Share of Spend = Share of Voice = Share of Mind = Share of Market

Visibility % %

Top of mind recall %

Preference %

Brand ad spend Total Category Ad Spend

Brand Ad Exposure Total category ad exposure

Who prefer Brand Total category consumers

Brand Sales Total category sales

If the media plan for a brand is efficient in maximizing its ad exposure and takes care of the creative and image impact issues, then a higher ad spend should ensure higher visibility. This would mean higher share of voice in the category. The higher share of voice, when combined with creative impactful and meaningful ads gets a better top of the mind recall. This would mean higher share of the mind among the consumers of the category. The greater share of the mind, together with the persuasion power of the advertising creates a preference for the brand which may eventually lead to higher market shares.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

It involves decisions on The elements of an ad to be tested. (What should be tested?) Eg: TV, music, etc. The method to be used. (When should they be tested?) Eg: Pre-test, post-test. Whether they should be tested before or after the campaign. (How should they be tested?) The question what should be tested refers to the specific elements of the campaign that are to be measured for their effectiveness- headlines, visuals, slogans, media and so on. Advertisers would like to measure each of these elements but it is not practically possible. Therefore the advertiser has to focus on those elements that may be measured with some degree of accuracy. The most common areas that are evaluated are the advertising messages and the media.

This refers to testing the entire advertising campaign. Both the advertising strategy or what is said as well as the creative execution, or how it is said, may be tested for their effectiveness in terms of recall of the message, ability to induce action, or some other measure.

In testing, the media for their effectiveness in delivering a message, media types, media vehicles, as well as media units could be tested. In addition to message and media, some other areas of advertising that may also be evaluated include:

Advertisers may want to test a particular strategy or a television commercial against various market segments, to determine their reactions. In this process, the advertisers may even decide to alter the strategy and to target the campaign to a different market.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Advertisers may also be interested in knowing what product benefits appeal to consumers and what motivates them to buy, which helps to know whether the right appeals have been developed.

Advertising research can also help to determine the effectiveness of different levels of advertising spendings, in terms of sales generated.

Advertisers can also test consumer responses to a campaign during different seasons of the year, or days of the week. They can test whether frequent advertising is more effective than occasional or on-time insertions, or whether year-round advertising of say, a gift products, is more effective than advertising concentrated in the festival season. Regarding when campaigns should be tested, campaign evaluation can be done in two stages-before the campaign is run and after it has been run.

This refers to testing the campaign before it has run. The purpose of pretesting is to detect weaknesses or flaws in the campaign that may result in consumer indifference or negative response. This increases the likelihood of preparing the most effective advertising message. All the areas of advertising like-markets, motives, messages, media, budgets and scheduling may be tested. It may be done to test two types of effects: communication effects and sales effects. Pre-testing of advertising effects seeks to determine whether advertising objectives such as awareness, recall, attitudes and opinions, beliefs about the product and intentions to buy, have been achieved. Pretesting of sales effects seeks to determine whether a proposed message or media plan has resulted in increased sales. This type of pretesting identifies and isolates the influence of advertising on sales. A number of more advanced techniques are used for pretesting both communication effects and sales effects, both in 118

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ the print and broadcast media. This brings us to the question how campaigns should be tested. Given that most advertising is assigned the task of achieving specific communication goals, a number of methods have been developed for pretesting these communication effects. These may be broadly grouped under three categories: Opinion and attitude tests Mechanical laboratory methods and Projective techniques.


1. Direct Questioning: This is a method designed to obtain a full range of responses o the advertising, by asking direct questions about the advertising. Based on the responses, researchers can infer how well the advertising messages convey the key copy points. 2. Focus Groups: This is another commonly used method to pretest print ads at both the conceptual and finished stage. It is a free-wheeling discussion conducted among small groups of people and led by a moderator. The group may be interviewed on their reactions to advertising concepts or finished campaigns. The advantage of this method is that it is an inexpensive and quick way of obtaining insights into the advertising process. Focus groups are used extensively by Indian advertisers. 3. Dummy advertising media vehicles: This is a technique that can be applied to both print and broadcasting ads. It involves placing the test ads in a dummy vehicle, which resembles the actual advertising medium. In case of television commercials, the effectiveness of these may be tested by showing respondents an actual television programme, with the test commercials placed within it. Questions are then asked to measure the extent on which people recalled the test commercials. 4. Order-of-merit test: this is used mainly for pretesting print ads in finished form. A group of people are shown a series of advertisements, sometimes as many as six or seven, and asked to place them in rank order, based on some communication criterion, such as liking:. After all the ads have been ranked, a composite score is obtained. This score shows which ad was ranked no.1, no.2 , and so on.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ 5. Paired comparisons: This is used when more than six or seven ads have to be rank ordered. Consumers are then asked to judge two ads at a time, and asked to choose which one is better. The process continues until each advertisement has been paired with each of the others. 6. Central Location Projection Tests: This is used for pretesting broadcast advertising. Test commercials are shown to a group of respondents along with other commercials, at a central location. Questions are asked before and after exposure to determine whether the commercials have been successful in gaining attention, increasing brand awareness and comprehension, and shifting attitudes. 7. Live Telecast tests: Here, test commercials are shown on closed-circuit or cable television. Respondents are then interviewed on the phone to test their reactions. 8. Attitude Ratings: In an earlier section, we defined attitudes as liking or dislike for a brand. Similarly, people may also form positive or negative attitudes towards ads. It is possible to measure attitudes towards ads using quantitative research techniques such as attitude rating scales. The most commonly used type of attitude rating scale is the semantic differential. Under this method, respondents are asked to indicate on a seven point scale, their liking for an ad, on various dimensions.


These are commonly used in US and other developed countries. These include: 1. The tachistoscope: It is used to measure consumer perceptions to ads. Using this device, the researcher can tell how long it takes for respondents to get the intended message and how they perceive it. This way two alternative layouts may be tested for their effectiveness. 2. The eye camera photographs the movement of peoples eyes while reading ads. 3. The psychogalvanometer is a device similar to lie-detector. It records skin temperatures and tension resulting from reading ads. The theory behind this concept is that the more tension an ad creates, the more successful it is likely to be.


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ 4. The pupillometer is a device that measures a persons pupil size when exposed to visual stimuli such as ads. The theory behind it is that the size of the pupil increases when the person finds the ad visually interesting or emotionally appalling.

It is a type of qualitative or motivational research adapted from clinical psychology. It permits the respondents to direct questioning, projective techniques permits respondents to indirectly project their views or feelings about the advertising situation. The following types of projective techniques are used: 1. Depth interviews: Here, respondents are shown advertising material and promoted to discuss it freely. A trained interviewer, usually a psychologist, probes the respondent about his underlying feelings and motivations. 2. Word Association and Sentence Completion Tests: These are a little more structured than the depth interview. Key words or sentences are used as stimuli, to which the respondent replies by projecting his thoughts. These words and sentences are taken from ads being tested. This way, the researcher can determine what they mean to the consumers. 3. Thematic Apperception Tests: In this method, pictures of people in ambiguous situations are shown to respondents. Respondents are asked to build a story around these pictures, by projecting their opinions and feelings into the story. The problem with using projective techniques to measure advertising effectiveness is the expenses involved, including the cost of training interviewers to evoke useful responses from respondents.

The purpose of testing ads for their sales effectiveness before the campaign is run, is to assess the advertising on reduced scale, and to see whether it would be profitable on a larger scale. The two methods used are: 1. Inquiry Tests: It involves measuring the potential sales effectiveness of ads based on the number of inquiries received. The ads usually offer some incentive for responding immediately, such as free booklets, product samples or free trials. It is also used to test the effectiveness of media. It is useful especially in testing small print ads. It also 121

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ measures the intentions to buy, and therefore a good measure of sales effectiveness of ads. It may not always represent a sincere interest in the product advertised. Such tests are also time consuming, as the responses to some ads may sometimes take months to come in. 2. Sales Experiments an Test Markets: An advertiser who wishes to know how effective his advertising is before investing large amounts of money on a rational effort, may decide to go for a test market. Besides pretesting ads, they can also be used for pretesting the media mix, the budget level and the scheduling or the timing of the advertising. The problem with this method is that it is expensive and it takes a lot of time

Campaign evaluation after the release of the ads is known as post-testing. It is done with the specific purpose of evaluating a campaign against pre-determined objectives- awareness, attitude change or increase in sales. Many of the areas of advertising that are pretested can also be posttested like media, message and markets.

The post testing methods for communication effects of advertising fall into two broad categories:

1. RECALL TESTS this may be in the nature of aided recall tests or unaided recall tests. Aided recall tests measure whether respondents recognize a particular ad. They are shown certain ads and then asked questions to determine whether their previous exposure to the ad was through reading, viewing or listening. Recall tests indicate whether consumers got the point of the advertisers message. They are very useful in determining whether ads are being read and how well they are 122

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ working, compared with the competitors ads. They can also yield useful data on the relative effectiveness of different advertising components, such as size, colour or attention-getting themes. The disadvantage of recall tests is that they indicate only the readership of the ads. This does not necessarily mean product sales. An ad may be remembered for itself, while the brand name may not be remembered. Recall is also subject to the variations of individual memory. Therefore they are at best only a short-term measure of advertising effectiveness. 2. ATTITUDE TESTS Tests that measure shifts in attitudes are generally a better measure of effectiveness than recall tests, because attitudes relate more closely to the purchase of a product. A positive attitude is an indication of an intention to buy the product, and vice versa. A variety of measurement techniques like constant sum, Likert scale, Semantic differentials are used. The advantage of attitude tests is that they are easy to conduct and low in cost, because they can be done via phone or mail. The difficulty lies in coming up with a proper definition of attitude, which represents a complex mix of feelings. Many people also find it difficult to express their attitudes. Also, attitudes are resistant to change even by highly aggressive advertising efforts.

3. INQUIRY TESTS They measure interest in and desire for a product. The two broad categories of posttesting methods available to test the sales effectiveness of advertising are: Measurement of post sales: This method consists in comparing past sales with the current sales. Experimental designs: This method overcomes some of the problems of sales tests by eliminating the influence of all variables that influence sales, except advertising. One way to use an experimental design would be to test which level of advertising expenditure produces the best sales level. In addition, it can also be used to test alternative media mixes, creative approach and the timing or 123

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ frequency of ads. It is best suited for products that are purchased frequently and advertising is the major factor in the marketing mix. The consumers emotional response to an ad is also considered a measure of effectiveness. A special quantitative technique for measuring such responses has been developed in US by Leo Burnett advertising agency, known as Viewers Response Profile. It consists of a series of 52 different statements about the ad or commercial, with which respondents are asked to agree or disagree. These statements measure emotional response along seven different dimensions: entertainment, confusion relevant news, brand reinforcement, empathy, familiarity and alienation. This technique can be used for both pretesting and posttesting of TV commercials as well as print ads. It is based on what people feel after watching ads, rather than what they know. Although advertising is still in its infancy stage in India, its importance is bound to grow in future. The account planning function; still a relatively new concept in India will assume greater importance, as it is the integration of research with campaign planning. The account planner will be responsible for conducting advertising research, as well as taking strategic decisions about the campaign.


Less effective advertising

More effective advertising


Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________


Brand Management Advertising Objectives and DAGMAR Copy Evaluating Advertising Effectiveness Sales Promotion

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