Marketing Management notes.

1.  Marketing Communications:- Marketing communication in
Common Language is known as Promotion.
 It is practically an umbrella term for many types of promotional
activities:- Advertising, Public Relations, Sales Promotions,
Personal Selling, Packaging, Point-of-Sale, and Direct
marketing.
 It consists of Persuasive Communication designed to send
marketing related messages to a target audience.
 The shift from Product–Centered to Consumer–Centered
marketing strategies forced businesses to combine activities they
had previously handled separately.
 Now, marketing has emerged as a major function that
coordinate individual elements such as Product Development,
Sales Promotion, Merchandising, Advertising and Market
Research.

2.  Combining these activities produces a coordinated message
structure called the Marketing Communication mix.
 Implementing the communication mix in a coordinated
manner is called Integrated Marketing Communication (IMC).
 The basic elements of the Marketing Communication mix is now
an integral part of most of the marketing plans.
 These elements differ in their objectives, the type of customer
contact, and the time element of response, as shown in the table on
the next slide:-

3. Marketing
Communication
Element
Objectives Customer Contact Time of Response
Advertising
Attention, Attitude
change & Behaviour
change.
Indirect Moderate to Short
Personal Selling Sales Direct Short
Sales Promotion Sales Semi-direct Short
Direct Marketing Behaviour Change Semi-direct Short
Public Relations Attitude Change Semi-direct Long
Point-of-sale &
Packaging
Behaviour Change Direct Moderate

4.  Integrated Marketing Communication:- The 1990s and 2000s
brought us IMC.
 IMC is the practice of unifying all marketing communication
tools so that, they send a Consistent and Persuasive message,
Promoting company goals to the target audiences.
 Marketing communication tools include Advertising, Sales
Promotion, Direct Marketing, Public Relations, Packaging and
Personal Selling.
 IMC starts with consumers’ needs and wants. Because of the
modern day developments in technology, marketers now have the
ability to capture data about the consumers that allows them to shift
from Inside–out to Outside–in communication planning.
 Inside–out planning means marketers plan communication
message based on what they believe is important.
 Outside–in planning means that marketers start with the data of
the customers and prospects to plan the advertising message.

5.  All marketing strategies are built on STP. A company discovers
different needs and groups in the marketplace, targets those it
can satisfy in a superior way, and then positions its offering so
that the target market recognizes the company’s distinctive
offering and image.
 If a company does a poor job in developing the communication
involved in positioning, the market will get confused.
 Positioning is the act of designing the company’s offering and
image to occupy a distinctive place in the minds of the target
market.
 The communication strategy is to register the brand in the
minds of consumers to maximize the potential benefit to the firm.
 A good communication helps guide marketing strategy by
clarifying the brand’s essence, the goals it helps the consumer
to achieve, and how does it do so in an unique way.

6.  The result of good communication is the successful creation of
a customer-focused value proposition, a cogent reason why the
target market should buy the product.
Ex:-

7. Brand, Product
& Company
Target
Customers
Benefits
Marketing Communication
(Value Proposition)
Scorpio, SUV,
Mahindra &
Mahindra
Lifestyle –
Oriented
Consumers
Ruggedness,
Luxury, &
Comfort.
A vehicle that provides the
luxury and comfort of a car,
and the adventure and thrill of
an SUV.
Indica V2, Car,
Tata Motors
Small – car
consumers who
want a more
spacious vehicle
Spaciousness
A spacious, small car without
extra costs. (More car per car).
Domino’s Pizza
Convenience –
minded pizza
lovers
Delivery,
Speed, &
Good quality
A good, hot pizza delivered to
your door within 30 minutes of
ordering.

8.  Once marketers have fixed the competitive frame of reference
for positioning, the Points–of–Difference and Points–of–Parity
can be defined.
 Points-of-Difference:- PODs are attributes or benefits that
consumers strongly associate with a brand, positively evaluate
and believe they could not find to the same extent with a
competitive brand.
Creating strong, favorable and unique associations is a real
challenge but essential in terms of competitive brand
positioning.
 Point-of-Parity:- POPs are associations that are not necessarily
unique to the brand but may in fact be shared with other
brands.
These types of associations come in two basic forms:-
i. Category POP
ii. Competitive POP

9. i. Category POP are associations consumers view as essential to
a legitimate and credible offering within a certain product or
service category. i.e. they represent necessary – but not
sufficient conditions for brand choice.
Ex:- Consumers might not consider a travel agency truly a travel
agency unless it is able to make air and hotel reservations, provide
advice about leisure packages, and offer various ticket payment and
delivery options.
ii. Competitive POP are associations designed to negate
competitors’ Points-of-Difference.
 If, in the eyes of consumers, a brand can “break even” in those areas
where the competitors are trying to find an advantage and achieve
advantages in other areas, the brand should be in a strong – and
perhaps unbeatable competitive position.
Ex:- When Savlon entered the antiseptic lotion market in India
dominated by Dettol.

10.  Creating POPs & PODs:- One common difficulty in creating a
strong, competitive brand positioning is that many of the
attributes or benefits that make up the POP and POD are
negatively correlated.
Ex:- It might be difficult to position a brand as “inexpensive”
and at the same time assert that it is “of the highest quality”.
Some other examples can be Low price Vs High quality, Taste
Vs Low Calories, Nutritious Vs Good tasting, Efficacious Vs
Mild, Powerful Vs Safe, Strong Vs Refined, Ubiquitous Vs
Exclusive, Varied Vs Simple.
 Similarly, individual attributes and benefits often have positive
and negative aspects.
Ex:- Consider a long-lived brand that is seen as having a great
deal of heritage.
The brand’s heritage could suggest experience, wisdom, and
expertise.
On the other hand, it could also imply being old-fashioned and
not up-to-date.

11.  Communicating Category Membership:- There are three main
ways to convey a brand’s category membership:-
1. Announcing Category Benefits:- To reassure consumers that a
brand will deliver on the fundamental reason for using a category,
marketers frequently use benefits to announce category
membership.
Thus, industrial tools might claim to have durability. A
brownie mix might attain membership in the baked desserts
category by claiming the benefit of great taste and support
this claim by including high-quality ingredients or by showing
users delight in its consumption.
2. Comparing to Exemplars:- Well-known, noteworthy brands in a
category can also help a brand specify its category membership.
Ex:- When Tommy Hilfiger was an unknown, advertising
announced his membership as a great American designer by
associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein,
and Perry Ellis, who were recognized members of that category.

12. 3. Relying on the Product Descriptor:- The product descriptor
that follows the brand name is often a concise means of
conveying category origin.
Ex:- Ford Motor Co. invested more than $ 1 billion on a radical
new 2004 model called the X-trainer, which combined the attributes
of an SUV, a minivan and a station wagon.
To communicate its unique position – and to avoid association
with its Explorer and Country Squire models – the vehicle, later
called Freestyle, was designated a “Sports Wagon.”
 Steps in Developing Effective Marketing Communication:-
1. Identifying the Target Audience:- A marketing communicator
starts his work with a clear-cut target audience in mind.
 The audience may be Current users or Potential buyers, those
who make the Buying decision or those who Influence it.
 The audience may be individuals, groups, special publics, or the
general public.

13.  The target audience will heavily affect the communicator’s
decisions on what will be said, how it will be said, when it will be
said, where it will be said, and who will say it.
2. Determining the Communication Objectives:- Once the target
audience has been defined, the marketers must decide what
response they seek.
 In many cases, it is the purchase response. But purchase may be
only the result of a long consumer decision-making process.
 The marketing communicator needs to know where the target
audience now stands and to what stage it needs to be moved.
 The target audience may be in any of six buyer-readiness stages,
the stages consumers normally pass through on their way to making
a purchase. These are:-
Awareness Knowledge PreferenceLiking Conviction Purchase

14. 3. Designing a Message:- Having defined the desired audience
response, the communicator turns to the development of an
effective message.
 Ideally the message should get attention, hold interest, arose
desire and obtain action. (A framework known as the AIDA
model).
 In practice, few messages take the consumer all the way from
awareness to purchase, but the AIDA framework suggests the
desirable qualities of a good message.
 When putting the message together, the marketing
communicator must decide what to say (message content) and
how to say (message structure and format).
i. Message Content:- The marketer has to figure out an appeal or
theme that will produce the desired response.
 There are three types of appeals: Rational, Emotional, and Moral.

15.  Rational appeals relate to the audience’s self–interest. They
show that the product will produce the desired benefits.
Ex:- Messages showing a product’s quality, economy, value or
performance.
For Ex:- In one ad, Gillette claims that 99% of men agree that
Gillette is the most comfortable shave.
Similarly, Sugar Free Natura communicates the benefits of
replacing sugar with Sugar Free Natura to calorie conscious
consumers.
 Emotional appeals attempt to stir up either negative or positive
emotions that can motivate purchase.
• Communicators may use emotional appeals ranging from love, joy,
and humor to fear and guilt.
• Advocates of emotional messages claim that they attract more
attention and create more belief in the sponsor and brand.

16. • “Brain science has proved that consumers feel before they
think, and feelings happen fast”. “Real persuasion is emotional
in nature”.
Ex:- HDFC Insurance asks you to “live life with your head held
high” through its ‘Sar Utha Ke Jiyo’ campaign.
Similarly, the Diamond Trading Company runs emotional ads
showing men surprising the women they love with diamond jewelry.
 Moral appeals are directed to the audience’s sense of what is
‘right’ and ‘proper’.
• They are often used to urge people to support social causes such
as a cleaner environment, aid to the disadvantaged, or safe driving.
Ex:- The champions Drink Responsibly campaign by Bacardi
Limited features Michael Schumacher, advising people to take a taxi
if they have been drinking.

17.  Social appeals are aimed at seeking a behavioral change in the
target audience by promoting a social cause in the society for
the betterment of the society.
• A number of ads are directed at this objective, be it to eradicate polio
and aids or to prevent child labor, gender inequality, and cruelty to
animals.
ii. Message Structure:- Marketers also has to decide on how to
handle three message structure issues.
 The First is whether to draw a conclusion or leave it to the
audience.
Research suggests that in many cases, rather than drawing a
conclusion, the advertiser is better off asking questions and letting
buyers come to their own conclusions.
 The Second message structure issue is whether to present the
strongest arguments first or last, as presenting them first gets
strong attention but may lead to an anticlimactic ending.

18.  The Third message structure issue is whether to present a one-
sided argument (mentioning only the product’s strengths) or a
two-sided argument (touting the product’s strengths while also
admitting its shortcomings).
Usually, a one-sided argument is more effective in sales
presentations – except when audiences are highly educated or
likely to hear opposing claims, or when the communicator has
a negative association to overcome.
iii. Message Format:- The marketing communicator also needs a
strong format for the message.
 For instance, in a print ad, the communicator has to decide on the
headline, copy, illustration, and colour.
To attract attention, advertisers can use novelty and contrast;
eye-catching pictures & headlines; distinctive formats;
message size & position; and colour, shape & movement.

19.  If the message is to be carried over the radio, the communicator has
to choose words, sounds, and voices.
Ex:- The ‘sound’ of an ad promoting banking services should be
different from one promoting an iPod.
 Similarly, if the message is to be carried on television or in person,
then all these elements plus body language have to be planned.
 One study has revealed that people make subconscious judgments
about an item within 90 seconds of initial viewing and that up to 90
percent of that assessment is based on colour.
 Another study suggests that colour increases brand recognition
by up to 80 percent.
 Thus, in designing effective marketing communications,
marketers must consider colour and other seemingly
unimportant details carefully.

20. 4. Choosing Media:- The communicator must select channels of
communication.
There are two broad types of communication channels –
Personal & Non-personal.
 In Personal communication channels, two or more people
communicate directly with each other.
• They might communicate face to face, on the phone, through mail or
e-mail, or even through an Internet ‘chat’.. Personal
communication channels are effective because they allow for
personal addressing and feedback.
• Some personal communication channels are controlled directly by
the company.
Ex:- Company salespeople contact target buyers.

21. • Other personal communications about the product may reach
buyers through channels not directly controlled by the company.
• These channels might include independent experts – consumer
advocates, online buying guides, and others – making
statement to buyers.
They might be even neighbors, friends, family members and
associated talking to target buyers.
• This last channel, Word–of–mouth influence, has considerable
effect in many product areas.
• Personal influence carries great weight for products that are
expensive, risky, or highly visible.
• Companies can take steps to put personal communication channels
to work for them.
They can create opinion leaders for their brands – people
whose opinions are sought by others – by supplying influencers
with the product on attractive terms or by educating them so that
they can inform others.

22. • Buzz Marketing involves cultivating opinion leaders and getting
them to spread information about a product or service to others
in their communities.
Ex:- BuzzAgent, a Boston marketing firm that creates word–of–
mouth campaigns for many of the country’s best-known companies
in the United States.
 Non-personal communication channels are media that carry
messages without personal contact or feedback.
• They include major media, atmospheres, and events.
• Major media include print media (newspapers, magazines, direct-
mail), broadcast media (radio, television), display media (bill-
boards, signs, posters), and online media (e-mail, company Web
sites, online social and sharing networks).
• Atmospheres are designed environments that create or
reinforce the buyer’s leanings toward buying a product.
Ex:- Lawyers’ offices and Banks are designed to communicate
confidence and other qualities that might be valued by clients.

23. • Events are staged occurrences that communicate messages to
target audiences.
Ex:- Public relations departments arrange press conferences,
grand openings, shows and exhibits, public tours, and other events.
• Non-personal communication affects buyers directly.
• In addition, using mass media often affects buyers indirectly by
causing more personal communication.
Communications first flow from television, magazines, and
other mass media to opinion leaders and then from these
opinion leaders to others.
Thus, opinion leaders step between the mass media & their
audiences and carry messages to people who are less exposed to
media.
• This suggests that mass communicators should aim their
messages directly at opinion leaders, letting them carry the
message to others.

24. • Marketers often use non-personal communication channels to
replace or stimulate personal communications by embedding
consumer endorsements or word-of-mouth testimonials in their
ads and other promotions.
5. Selecting the Message Source:- In either personal or non-personal
communication, the message’s impact on the target audience is
also affected by how the audience views the communicator.
 Messages delivered by highly credible sources are more
persuasive.
Thus, many food companies promote to doctors, dentists, and
other health care providers to motivate these professionals to
recommend their products to patients.
Similarly, marketers hire celebrity endorsers – well known
athletes, actors, musicians, and even cartoon characters – to deliver
their messages.

25.  But companies must be careful when selecting celebrities to
represent their brands. Picking the wrong spokesperson can result
in embarrassment and a tarnished image.
Ex:- H&M, Chanel, and Burberry had to publicly dismiss
supermodel Kate Moss after she was reportedly photographed using
cocaine.
 Today the standard practice to sign a celebrity is only after an
extensive background check. But accidents still happen.
6. Collecting Feedback:- After sending the message, the
communicator must research its effect on the target audience.
 This involves asking the target audience members whether they
remember the message, how many times they saw it, what
points they recall, how they felt about the message, and their
past & present attitudes toward the product and company.
 The communicator would also like to measure behavior resulting
from the message – how many people bought the product, talked
to others about it, or visited the store.

26.  Feedback on marketing communications may suggest changes in
the promoti0n program or in the product offer itself.
Ex:- An airline uses television and newspaper advertising to
inform area consumers about the airline, its routes, and its fares.
Suppose feedback research shows that 80% of all fliers in an area
recall seeing the airline’s ads and are aware of its flights and prices.
60% of these aware fliers have flown that airline but only 20% of
those who tried it return.
• These results suggest that although promotion is creating
awareness, the airline is not giving consumers the satisfaction
they expect.
Hence, the airline needs to improve its service while staying
with the successful communication program.
• In contrast, suppose the research shows that only 40% of area
consumers are aware of the airline, only 30% of those aware have
tried it, but 80% of those who have tried it return.
In this case, it needs to strengthen its promotion program to
take advantage of its power to create customer satisfaction.