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Chapter-2
2nd Meeting
Presentation Outline
Elements of Marketing Mix
Formulating Communication Strategy
Push Vs Pull Strategies
Budgeting and Planning Campaign
Elements of Communication Mix
Personal Selling
Advertising
Sales Promotion
Public Relations
Direct Marketing
1.Personal Selling
It consists of executing sells though
salespersons.
It involves two way communication.
It is very effective form of communication
and extensively used during the
introduction of a new product in a market.
It is effective when the buyers need full
explanation of product’s attributes, utilities
and other associated benefits.
2.Advertising
Impersonal method of communicating
message.
Involves transmitting message to a large
number of potential buyer.
Uses different form such as print, visual
(posters, hoardings etc.) and audiovisual
media.
3.Sales Promotion
Refers to short term promotional activities.
Main purpose is to stimulate consumer
purchasing and dealer effectiveness.
Consumer sales promotion methods
includes sample, coupons etc.
Dealers promotion includes cash
discount, quantity discount, displays and
advertising allowances etc.
4.Public Relations
It is used to promote favorable relationship with
key stakeholders-
media, government, community, customers etc. by
charitable donation, sponsorship of event etc.
It is achieved though effective personal
relationship, presentation of good corporate
image, social responsiveness and charity works.
It also includes publicity.
Publicity is communication of news storing
transmitted through mass media in the form of
feature article, press conference etc.
5.Direct Marketing
It involves selling directly to consumers
bypassing all forms of marketing
intermediaries.
Door to door marketing, telephone
marketing, e-marketing etc.
Formulating Communication Strategy
It comprises six step process
1. Understand the communication
environment
The communication environment consist of
sign, symbols, language and culture. So the
communicators need to fully understand the
those things.
2. Identify the target audience and their brand
perception
 To identify the target audience, communicators
should understand
 Demographic characteristics(age
group, income, gender etc.)
 Psychographic characteristics(life
style, personality, motivation etc)
 Media-graphic characteristic(media habit of target
audience-print, visual or audio visual)
 Brand perception
 Brand awareness and Brand image.
3. Determine the communication objectives
It involves determining what the marketers
want to achieve through the
communication, such as
awareness, knowledge, liking, preference, con
viction and purchase.
4. Select the message idea and creative platform
Message idea: the key communication
objective-informing, persuading, reminding
and reassuring, should be identified.
Creative platform: It includes
visualization, layout. Production etc.
5. Select appropriate communication channel
6.Collect feedback.
Push Vs Pull Strategy
 Push strategy:
 The promotion is directed at the marketing
intermediaries to induce them to order and to carry
the product and promote it to end user.
 Generally through trade promotions.
 Pull strategy:
 A pull strategy involves marketing
activities(primarily advertising and consumer
promotion) directed at end user to induce them to
ask intermediaries for the product and thus induce
the intermediaries to order the product from
manufacturer.
Budgeting and Planning Campaign
Communication budgeting:
Communicating budgeting is converting
the communication plan into monetary
value.
It involves determining the total allocation
of monetary resources for various activities
involved in conceiving
, developing, releasing and evaluating
promotional campaign.
Item of expenses for Marketing
Communication.
Research expenses(during the idea
generation—execution-post campaign phase
effectiveness)
Development expresses: visualization, art
direction and preparation of the ad copy.
Production(preparing communication
material, cost of TV ads are very high)
Release (through the appropriate means of
communication)
Administrative costs(salary, official cost etc)
Budgeting Approach
Top-down budgeting
 Communication managers prepare the
master budget.
 Manager divides the total budget in terms
of activities and brands and hands over the
budget to different division for execution.
Bottom up budgeting
communication department and ad agency
personnel prepare brand specific budget.
Factors Affecting Budget size
Communication objectives
Desired converge
Media used
Nature of product(FMCG needs heavy
communication support but shopping goods
can be advertised more selectively)
Stage of product life cycle(introduction stage
needs heavy promotion)
Economic condition(economic boom
stimulates more spending)
Size of the firm(big firms can spend more)
Communication Campaign
It includes a series of advertisements
placed on a verity of media focused on
achieving common communication goal.
A communication campaign is normally
prepared for a period of one year.
Process of Campaign Planning
1. Determine communication objectives
2. Identify target audiences and their band
perception
3. Develop message and creative strategy
4. Develop media strategy
5. Prepare budget
6. Develop campaign plan.
Element of Campaign Management
Research(product research, consumer
research, target market analysis and competitor
analysis)
 Target market assessment(on the basis of
geographic, psychographic, demographic etc)
 Creative strategy: visualization, layout, appeal
section etc
 Pre-testing: pre-tesing gives valuable feed back
and helps avoid mistakes.
 Media planning(selecting appropriate media)
 Campaign impact assessment(during the
Budgeting Steps
Information collection: Information on the
firm’s sales, market share, promotional
strategies etc.
Preparation(once the information is
collected, communication manager prepares
budget)
Approval: top level management may make
adjustment on the budget and finally give their
seal of approval.
Execution (determining communication
program, strategy and tactics)
Control

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Miscommunication 2

  • 2. Presentation Outline Elements of Marketing Mix Formulating Communication Strategy Push Vs Pull Strategies Budgeting and Planning Campaign
  • 3. Elements of Communication Mix Personal Selling Advertising Sales Promotion Public Relations Direct Marketing
  • 4. 1.Personal Selling It consists of executing sells though salespersons. It involves two way communication. It is very effective form of communication and extensively used during the introduction of a new product in a market. It is effective when the buyers need full explanation of product’s attributes, utilities and other associated benefits.
  • 5. 2.Advertising Impersonal method of communicating message. Involves transmitting message to a large number of potential buyer. Uses different form such as print, visual (posters, hoardings etc.) and audiovisual media.
  • 6. 3.Sales Promotion Refers to short term promotional activities. Main purpose is to stimulate consumer purchasing and dealer effectiveness. Consumer sales promotion methods includes sample, coupons etc. Dealers promotion includes cash discount, quantity discount, displays and advertising allowances etc.
  • 7. 4.Public Relations It is used to promote favorable relationship with key stakeholders- media, government, community, customers etc. by charitable donation, sponsorship of event etc. It is achieved though effective personal relationship, presentation of good corporate image, social responsiveness and charity works. It also includes publicity. Publicity is communication of news storing transmitted through mass media in the form of feature article, press conference etc.
  • 8. 5.Direct Marketing It involves selling directly to consumers bypassing all forms of marketing intermediaries. Door to door marketing, telephone marketing, e-marketing etc.
  • 9. Formulating Communication Strategy It comprises six step process 1. Understand the communication environment The communication environment consist of sign, symbols, language and culture. So the communicators need to fully understand the those things.
  • 10. 2. Identify the target audience and their brand perception  To identify the target audience, communicators should understand  Demographic characteristics(age group, income, gender etc.)  Psychographic characteristics(life style, personality, motivation etc)  Media-graphic characteristic(media habit of target audience-print, visual or audio visual)  Brand perception  Brand awareness and Brand image.
  • 11. 3. Determine the communication objectives It involves determining what the marketers want to achieve through the communication, such as awareness, knowledge, liking, preference, con viction and purchase. 4. Select the message idea and creative platform Message idea: the key communication objective-informing, persuading, reminding and reassuring, should be identified. Creative platform: It includes visualization, layout. Production etc.
  • 12. 5. Select appropriate communication channel 6.Collect feedback.
  • 13. Push Vs Pull Strategy  Push strategy:  The promotion is directed at the marketing intermediaries to induce them to order and to carry the product and promote it to end user.  Generally through trade promotions.  Pull strategy:  A pull strategy involves marketing activities(primarily advertising and consumer promotion) directed at end user to induce them to ask intermediaries for the product and thus induce the intermediaries to order the product from manufacturer.
  • 14. Budgeting and Planning Campaign Communication budgeting: Communicating budgeting is converting the communication plan into monetary value. It involves determining the total allocation of monetary resources for various activities involved in conceiving , developing, releasing and evaluating promotional campaign.
  • 15. Item of expenses for Marketing Communication. Research expenses(during the idea generation—execution-post campaign phase effectiveness) Development expresses: visualization, art direction and preparation of the ad copy. Production(preparing communication material, cost of TV ads are very high) Release (through the appropriate means of communication) Administrative costs(salary, official cost etc)
  • 16. Budgeting Approach Top-down budgeting  Communication managers prepare the master budget.  Manager divides the total budget in terms of activities and brands and hands over the budget to different division for execution. Bottom up budgeting communication department and ad agency personnel prepare brand specific budget.
  • 17. Factors Affecting Budget size Communication objectives Desired converge Media used Nature of product(FMCG needs heavy communication support but shopping goods can be advertised more selectively) Stage of product life cycle(introduction stage needs heavy promotion) Economic condition(economic boom stimulates more spending) Size of the firm(big firms can spend more)
  • 18. Communication Campaign It includes a series of advertisements placed on a verity of media focused on achieving common communication goal. A communication campaign is normally prepared for a period of one year.
  • 19. Process of Campaign Planning 1. Determine communication objectives 2. Identify target audiences and their band perception 3. Develop message and creative strategy 4. Develop media strategy 5. Prepare budget 6. Develop campaign plan.
  • 20. Element of Campaign Management Research(product research, consumer research, target market analysis and competitor analysis)  Target market assessment(on the basis of geographic, psychographic, demographic etc)  Creative strategy: visualization, layout, appeal section etc  Pre-testing: pre-tesing gives valuable feed back and helps avoid mistakes.  Media planning(selecting appropriate media)  Campaign impact assessment(during the
  • 21. Budgeting Steps Information collection: Information on the firm’s sales, market share, promotional strategies etc. Preparation(once the information is collected, communication manager prepares budget) Approval: top level management may make adjustment on the budget and finally give their seal of approval. Execution (determining communication program, strategy and tactics) Control