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  • 1. Marketing Management Unit 4 Delivering Marketing Programs Chapter 14 - Promotion-Decisions and Strategies Lesson 42 - MediaWe have already discussed the basics of communication and advertising in the previous lessons. Letus know of different advertising media and about media planningDIFFERENT ADVERTISING MEDIA The advertising media are the various forms of communication through which advertising reachesits audience.I. Newspapers. Newspaper advertising accounts for almost one-fourth of all advertising expendi-tures. Newspaper advertising is used extensively by retailers because it is relatively inexpensive com- pared to other media. Because it provides only local coverage, advertising dollars are not wasted in reaching people who are outside the market area. It is also timely. There are some drawbacks to newspaper advertising.i. It has a short life span.ii. Color reproduction is usually poor.iii. Marketers cannot target specific markets through newspaper ads.iv. Ads are usually read once and then discarded.II. Magazines. The advertising revenues of magazines have been climbing.. Advertisers can reach very specific market segments through ads in special-interest magazines. A number of magazines like Time and Cosmopolitan publish regional editions, which provide advertisers with geographic flexibility. Magazine advertising is more prestigious than newspaper advertising, and it provides high-quality color reproduction. Magazine advertisements have a longer life span. The major disadvantages of magazine advertising are high cost and lack of timeliness.III. Direct Mail. Direct-mail advertising is promotional material mailed directly to individuals. Direct mail is the most selective medium: Mailing lists are available (or can be compiled) to reach almost any target audience. The effectiveness of direct-mail advertising can be measured because the advertiser has a record of who received the advertisement and can track who responds. Some organizations are using direct e-mail. A direct-mail campaign may fail if the mailing list is outdated and the mailing does not reach the16.101G © Copy Right : Rai University 435
  • 2. Marketing Management right people.IV. Outdoor Advertising. Outdoor advertising consists of short promotional messages on bill- boards, posters, and signs. Sign and billboard advertising allow the marketer to focus on a particular geographic area, and it is fairly inexpensive. However, because most outdoor advertising is directed at a mobile audience, the message must be limited to a few words. The medium is especially suitable for products that lend themselves to pictorial display.V. Television. Television ranks number one in total revenue. Television advertising is the primary medium for larger firms whose objective is to reach national or regional markets.1. A national advertiser may buy network time, which means that its message usually will be broadcast by hundreds of local affiliated stations.2. Both national and local firms may buy local time on a single station that covers a particular geographic selling area. Advertisers may sponsor an entire show, or they may buy spot time for a single 10-, 20-, 30-, or 60-second commercial during or between programs. To an extent, they may select their audience by choosing the day of the week and the time of day when their ads will be shown. Infomercial. An infomercial is a program-length (usually a half-hour) televised commercial message resembling an entertainment or consumer affairs programs. Television advertising rates are based on the number of people expected to be watching when a commercial is aired. Unlike magazine advertising, and perhaps like newspaper ads, television advertising has a short life.VI. Radio. Advertisers 8 percent of total expenditures, on radio advertising Like magazine ad vertising, radio advertising offers selectivity. Radio can be less expensive than other media. Actual rates depend on geographic coverage, the number of commercials contracted for, the time period specified, and whether the station broadcasts on AM, FM, or both. Even small retailers are able to afford radio advertisements.VII. Internet. The Internet is the newest advertising medium and is growing in popularity. Thereare five types of Internet advertisements. Banner ads are rectangular graphics appearing at the top of most consumer web sites. Button ads are small squarish ads appearing at the bottom of a web page; they contain only a corporate or brand name. Sponsorship (or co-branded) ads integrate a company’s brand with editorial comment. Keyword ads, featured primarily on Internet search engines, link a specific ad to text or subject matter that an information seeker may enter. Interstitial ads (in-your-face ads) pop up to display a product ad when viewers click on a web site.Cost per thousand (CPM) for Internet advertising is higher than that of television advertising.Benefits of using the Internet as an advertising medium include the growth of Internet use by a436 © Copy Right : Rai University 16.101G
  • 3. Marketing Managementvariety of different types of people and the ability to precisely target a specific audience.Problems associated with using the Internet as an advertising medium include the relatively mediocrequality of the advertisements that can be created and the lack of evidence regarding the effective-ness of Net ads.DECIDING ON MEDIA AND MEASURING EFFECTIVENESSLet us now focus n media planningAfter choosing the message, the advertiser’s next task is to choose media to carry it. The steps hereare Deciding on desired reach, frequency, and impact; Choosing among major media types selecting specific media vehicles; Deciding on media timing; and(i) Deciding on reach, frequency , and impact Media selection is finding the most cost-effectivemedia to deliver the desired number and type of exposures to the target audience. What do we meanby the desired number of exposures? Presumably, the advertiser is seeking a specified advertisingobjective and response from the target audience – for example, a target level of product trial. Therate of product trial will depend, among other things, on level of brand awareness. Suppose the rateof product trial increases at a diminishing rate with the level of audience awareness, as shown inFigure. If the advertiser seeks a product trial rate of (say) t*, it will be necessary to achieve a brandawareness level of A*.The next task is to find out how many exposures, E*, will produce a level of audience awareness ofA.* The effect of exposures on audience awareness depends on the exposures’ reach, frequency,and impact: Reach : The number of different persons or households exposed to a particular media schedule at least once during a specified time period. Frequency (F): The number of times within the specified time period that an average person or household is exposed to the message Impact (I ): The qualitative value of an exposure through a given medium (thus a food ad in Good Housekeeping would have a higher impact than in the Police Gazette).(ii) Choosing among major media types The media planner has to know the capacity of the majormedia types to deliver reach, frequency, and impact.Media planners make their choice among media categories by considering the following variables: Target-audience media habits: For example , radio and television are the most effective media for reaching teenagers. Product characteristics: Media types have different potentials for demonstration, visualization, explanation, believability, and color. Women’s dresses are best shown in color magazines , and Polaroid cameras are best demonstrated on television. Message Characteristics: Timeliness and information content will influence media choice. A message announcing a major sale tomorrow will require radio, TV, or newspaper. A message containing a great deal of technical data might require specialized magazines or mailings. Cost: Television is very expensive, whereas newspaper advertising is relatively inexpensive. What counts is the cost-per-thousand exposures.(iii) Selecting specific vehicles The media planner must search for the most cost-effective ve-hicles within each chosen media type. The advertiser who decides to buy 30 seconds of A u d i -16.101G © Copy Right : Rai University 437
  • 4. Marketing Managementence size has several possible measures: Circulation: The number of physical units carrying the advertising. Audience: The number of people exposed to the vehicle. (If the vehicle has pass-on readership, then the audience is larger than circulation)· Effective audience: The number of people with target audience characteristics exposed to the vehicle. Effective ad-exposed audience: The number of people with target audience characteristics who actually saw the ad.Media planners are increasingly using more sophisticated measures of effectiveness and employingthem in mathematical models to arrive at the best media mix. Many advertising agencies use acomputer program to select the initial media and then make further improvements based on subjec-tive factors. 34(iv) Deciding on media timing - In choosing media, the advertiser faced both a macroscheduling anda microscheduling problem involves scheduling the advertising in relation to seasons and the businesscycle. Suppose 70 percent of a product’s sales occur between June and September. The firm canvary its advertising expenditures to following the seasonal pattern, to oppose the seasonal pattern, orto be constant throughout the year. Most firms pursue a seasonal policy. Yet some year ago, a soft-drink manufacturer put more money into off-season advertising. This resulted in increased non sea-sonal consumption of its brand, while not hurting seasonal consumption. Other soft drink manufac-tures started to do the same, and the result was a more balanced consumption patters.The most effective pattern depends on the communication objectives in relation to the nature of theproduct, target customers, distribution channels, and other marketing factors. The timing patternsshould consider three factors. Buyer turnover expresses the rate at which new buyers enter themarket; the higher this rate, the more continuous the advertising should be. Purchase frequency isthe number of times during the period that the average buyer buys the product; the higher the pur-chase frequency, the more continuous the advertising should be. The forgetting rate at which thebuyer forgets the brand; the higher the forgetting rate, the more continuous the advertising should be.In launching a new product, the advertiser has to choose among ad continuity, concentration, flighting,and pulsing. Continuity is achieved by scheduling exposures evenly throughout a given period. Gen-erally, advertisers use continuous advertising in expanding market situations, with frequently pur-chased items, and in tightly defined buyer categories. Concentration calls for spending all the adver-tising dollars in a single period. This makes sense for products wi9th one selling season or holiday. Flighting calls for advertising for some period, followed by a hiatus with no advertising, followed by asecond period of advertising activity. It is used when funding is limited, the purchase cycle is rela-tively infrequent, and with seasonal items. Pulsing is continuous advertising at low-weight levelsreinforced periodically by waves of heavier activity. Pulsing draws on the strength of continuousadvertising and flights to create a compromise scheduling strategy. 38 Those who favor pulsing feelthat the audience will learn the message more thoroughly, and money can be saved. Here is aninteresting article ……APPLICATION EXERCISE :Review the following article. Bring out the key points. Discussyour points of agreement and disagreement .…….Strategic Issues438 © Copy Right : Rai University 16.101G
  • 5. Marketing ManagementShould Indian media giants diversify? G. KrishnanOver the last few years, Indian Media has undergone a revolution. The country’s large and expand-ing middle class is proving to be an irresistible target for international business, whose advertisingexpenditure is driving this rapid media expansion. The birth of Indian Mass Media took place with theadvent of a newspaper called ‘Hickey’s Gazette’ in 1869. Since then Print has witnessed a series ofchanges - introduction of colour, new supplements, and separate city editions. In all there are over39,000 print vehicles in India, published in over a hundred languages with a combined circulationexceeding ninety million.For a long time print was seen as a popular and a dominant medium in the Indian scenario. TheAnnual Report of the Registrar of Newspapers for India lists 41 papers that are over hundred yearsold. However over the years, other media such as radio, cinema & TV have grown at the expense ofPrint. This is more so in the case of television. Television experienced its first phase of growth aftergoing colour in 1982; the next boom began with the satellite invasion in 1991. As a result, the lastdecade has seen a hugely increased choice for the Indian audience who have enthusiastically wel-comed the greater diversity.Television has acted as a catalyst not only in impacting other media but influencing and changingculture and consumption habits. The change has resulted in a shift in focus from broadcasting tonarrow casting, from distribution to content, from being led by cost to being led by value, from beingdriven by ownership/editorial interests to being consumer driven. With all the growth and the compe-tition, media conglomerates have looked to expand their opportunities and protect their businessacross states and across media.This propagation of media has in a way been the result of technology. Over time, various technolo-gies have been responsible for changing the face of the Indian Media and will continue to do so. Forinstance, in the coming years, TV will also provide content to net with the expansion of bandwidth.Thanks to the latest technology, multi media convergence is now possible such as Broadbanding,WAP, Internet on cable, News through the short messaging system (SMS). In other words theaudience now has more choice and greater accessibility to information. All this will permit the mediagiants to diversify since an information hungry audience is ready to digest this change. Not just that,Indian Media continues to reap the benefits of the fastest growing economies of the world. Theopening up of the economy, rise in per capita income, the age break up, the escalation in urbanpopulation, the constant increase in literacy rate in India are some of the factors that have madeconditions favorable for media giants to diversify into related or unrelated areas. For example, con-stant growth in literacy rate makes innovations in print viable and therefore extremely popular withthe advertisers. The age break up works in favor of producing niche or specialized content acrossmedia, the rise in per capita income has provided greater purchasing power in the hands of the Indianconsumer giving them a chance to explore and venture into new territories.This increase in per capita income has spurred the growth of brands, which in turn has provided both16.101G © Copy Right : Rai University 439
  • 6. Marketing Managementthe opportunity as well as the need in the growth of advertising & media.The bottom line, therefore, is that the Indian audience is getting more aware of the surroundingsaround them and craving for more information. In such a context, diversifying would help to reachout to the consumer in a different and a more meaningful manner. Diversifying has undoubtedadvantages for both the audience as well as for the media owner. For the audience, there is extendedchoice, better entertainment, a broader international perspective, more credible news reporting and agreater sense of inclusiveness. On the other hand for the media owner it means higher quality enter-tainment programming, possibility of developing new markets, retaining loyal audience by giving himgreater than before options. Diversification in media could take a number of forms. For example,within Print separate newspapers for Morning, Afternoon, and Evening could help to leverage thebrand equities that have been built over the years. The recent launch of the afternoon newspaper inDelhi - ‘Today’ by the India Today group is an example of filling a need gap. An afternoon newspa-per will surely help in giving a unique shape to this medium. In Television, for certain markets havingpotential, content customisation will be able to provide value to the viewer. However, what the mediaowners need to keep in mind is that the content will be the key to drive future media and in years tocome will play a vital role in the success of a company. A feature across media would be to haveminimal wastage of content so as to provide value to the consumer. Providing synergies across mediawill not just drive the media owners but would also be helpful in cultivating advertising opportunities. POINTS TO REMEMBER440 © Copy Right : Rai University 16.101G
  • 7. Marketing Management Tutorial- LApplication Exercise – 1Almost a decade back Hot Shot attempted to create an excitement in the camera market, andsucceeded in having a short-term success. After this initial success, the market for cameras how-ever has not improved significantly in the last decade. Kodak is currently attempting to develop themarket with limited advertising on TV and by introducing a model ( KB-10) at the lower end of itsproductline. The camera market is around 6 lakh units ( including the grey market). Pentax hasintroduced three models for professional ket is still underdeveloped ( as stated earlier), the profes-sional market is likely to register a better growth rate. Pentax also has a model at around Rs. 7,200. How would you formulate a promotional plan for Pentax in the professional segment?Application Exercise – 2Microwave oven is a product category that has been in the market for the last ten years, in spite ofthe lifestyle changes of consumers, the product has not caught on. Bathiboi, Kelvinator, IFB andBPL are some of the brands which have been attempting to create a market for the product. Re-cently LG has launched its version ( which the brand refers to as multiwave oven). Kelvinator, haslaunched campaigns which highlighted the usefulness of the product with regard to Indian delicacies.It also launched a campaign with an emotional backdrop which project, the need for a caring husbandwho would think about the brand. Apart from advertising to create awareness about the product and brand, what other pro- motional methods could be used to market the product? ( Specify the reasons for your decisions.)Application Exercise – 3It is a well known fact that surrogate advertising has been used by liquor manufacturers for gettingover legal stipulations. They have also been introducing bottle openers, glasses, cutlery, playing cardsand soda with liquor brand names. About three years back, Maharashtra intoroduced a ban on liquor-related advertising according to which no product can be advertised if it bears a name remotelysimilar to an approved label of potable liquor. It is also to be noted that satellite TV is a major vehiclestill available for liquor advertising As a manufacturer of a leading brand of liquor what other promotional strategy ( other than satellite TV) would you formulate for promoting the brand?Application Exercise – 4Ashok Leyland entered the commercial vehicles market in 1987. The company initially introducedIveco-designed cargo range ( Cargo 1323 and 1614) in the medium-size segment of the market.The proposition of the brand is aerodynamic design, good finish, “driver-friendly” control panels andlower operating expenses. Telco, also has a very good image among fleet operators. Ashok Leylandhas about thirty-five distributors. Draw up promotional plan for marketing the commercial vehicles of Ashok Leyland. Rea- son out the decision on including specific types of promotional activity?16.101G © Copy Right : Rai University 441
  • 8. Marketing ManagementApplication Exercise – 5The direct mailer campaign for Teacher’s 12 whisky was featured in the New York-based one showclub’s “One Show Book”. As liquor advertising is not permitted in India direct mailing was used forthe brand. Number 12 was used extensively in the mailer to ensure a high brand recall. The coverhad a line “Thoughts on 12 a very special offer inside)”. On the last page there was a visual of thebrand with the line :”This is most important 12". The mailer was sent to 5000 prospective consumersand about eighty per cent of them contacted the company ( very high for a director mailing exercise). As a marketing manager working for a competitive brand positioned against Teacher’s 12 how would you perceive direct maiol? How would you promote your brand?Application – 6T/s Suzuki was for a longtime without a product in the scooter category. This category accounts for40% of the total market for two-wheelers. Though the scooter market in terms of growth is only nextto the bike segment, any two-wheeler manufacturer has to have a product in this category to makethe productline complete. TVS Suzuki has been in the two-wheeler market for more than a decade.In a survey the company found that only 22% people in Delhi ( who participated in the survey )associated the name with two wheelers. The survey was undertaken before the launch of Spectra,a four stroke scooter from TVS Spectra’s launch was different from the manner in which launch inthe category takes place. World renowned illusionist Franz fired about 1500 shells ( lazer based ) in25 minutes in the launch which was named “TVS Millennium Show” ( at Delhi). The northern regionis an important market for scooters. A gone up significantly. It was also reported that around onemillion people would have watched the event. What are the pros and cons of this kind of a launch? What other aspects of promotion should be considered/ implemented to support a launch of this kind? 442 © Copy Right : Rai University 16.101G