Bangalore University Semester-1 (Module-5) : 1) Define Marketing Communication

Bangalore University Semester-1 (Module-5) 2014
1) Define marketing communication.
Marketing communications are the means by which firms attempt to inform, persuade,
and remind consumers, directly or indirectly, about the products and brands they sell.
2) Who are opinion leaders?

Opinion leaders are people within a reference group who, because of special skills,
knowledge, personality, or other characteristics, exert social influence on others.
3) Buzz Marketing means?

Buzz marketing involves cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities
4) Draw a basic communication model.
5) What is advertising?
Advertising is a paid form of non personal communication. Advertising promotes ideas

goods and services of identified sponsors. The main purpose of advertising is to create
sales. If advertisement does not increase sales, we may conclude that advertisement is
not effective.
Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 1

6) What do you mean by field of experience?
7) Link between IMC and Brand Equity.
8) Discuss the various online opportunities?

Websites (Ease to download/easy to understand)
Display ads
Online communities
Email
Mobile marketing

9) An ideal advertisement campaign must lead to?
 The right consumer is exposed to the message at the right time and place
 The ad causes consumer to pay attention
 The ad motivates consumers to consider purchase of the brand
 The ad creates strong brand associations
10) State the components of a mailing.

a. Outside envelope
b. Sales letter
c. Circular
d. Reply form
e. Reply envelope
11) State the issues in Direct Marketing.
Irritation
Fraud/Deception
Unfairness
Invasion of privacy
12) What are the essential elements of Marketing Communication Mix?

Advertising:
It is extensively used mode of communication. Advertising is non-personal and paid
form of promotion. It is used to promote products in mass market.

Direct Marketing:
It is direct communication with the customer by using email, telephone, fax, postal mail,
etc. It is customized and it solicit quick response from the customer
Sales Promotion:
Sales promotion is short term initiative by the company to encourage the customer to
take immediate decision. It involves trails, samples, coupons, discounts, etc.
Personal Selling:
It is personal form of communication which involves face to face interaction with
salesperson. It is considered to be the costliest mode of communication. Personal selling
is useful when product required demonstration and have technical difficulties to use
them.
Word-of-Mouth:
When a consumer shares his/her personal experience with another potential customer
or a group of customers about the product. Word of mouth is believed to have a strong
influence on buying decision.
Public Relation:

It is free form of communication. Newspaper article or social work that attracts free
media coverage falls under Public Relations.
Social Marketing:
Promoting brands or products using social networking site like Facebook, Twitter,
Pinterest, LinkedIn, etc are increasing day by day. Promoting through this mode is less
expensive but most effective.
Online marketing:
Promoting and communicating with the customer through online channel is common
today. Online advertising like banner advertising on website, company website, blogs,
etc. are the common way to reach to the customers.
13) Explain in detail process of developing an effective communication.
Step-1: Indentify the target audience:
Like all marketing programs, marketing communications should begin with a specific
audience in mind. Who is the intended recipient of a company’s messages? Who
marketers target will dictate what is said, how it is said, when it is said, and where it is
said.
Step-2: Determine the communication Objective
a) Category Need:
Establishing a product or service category as necessary to remove or satisfy a
perceived discrepancy between current motivational state and a desired emotional
state.
b) Brand Awareness
Ability to identify (recognize or recall) the brand within the category

c) Brand Attitude:
Evaluating the brand with respect to its perceived ability to meet a currently
relevant need
d) Brand Purchase Intension:

Self-instructions to purchase the brand or to take purchase-related action
Step-3: Design the communication
a) Message Strategy
b) Creative Strategy
i. Informational Appeal (Saridon stops headache quickly)
ii. Transformational Appeal (Liril is advertised as the freshness soap)
c) Message Source: (Using Personality like Amitabh Bachaan)
d) Global Adaptations
a. Is the product restricted in some countries?
b. Are there restrictions on advertising the product to a specific target market?
c. Can comparative ads be used?
d. Can the same advertising be used in all country markets?
Step-4: Selecting the communication channel
1) Personal Channel: Face to Face

Advocate Channel:
Company sales people contacting buyers in the target market.
Experts Channel:
Consists of independent experts making statement target buyers
Social Channel:
Consists of neighbors, friends, family members
2) Non-Personal Channel: Directed to more than one person

(Media/Sales Promotions/Events and Experiences/Public Relations)

Step-5: Integrating the communication channel
Step-6: Setting the total Communication Budget:
a) Affordable budget method

 Sets the budget at an affordable level
 Ignores the effects of promotion on sales
b) Percentage-of-sales method
 Sets the budget at a certain percentage of current or forecasted sales or unit
sales price
 Easy to use and helps management think about the relationship between
promotion, selling price, and profit per unit
 Wrongly views sales as the cause than the result of promotion
c) Competitive-parity method
 Sets the budget to match competitor outlays
 Represents industry standards
 Avoids promotion wars
d) Objective-and-task method
 Sets the budget based on what the firm wants to accomplish with promotion and
includes:
 Defining promotion objectives
 Determining tasks to achieve the objectives
 Estimating costs
14) Explain different types of Communication Mix.
a. Advertising
i. Print and broadcast ads
ii. Packaging

iii. Posters
iv. Billboards
v. POP displays
vi. Logos
b. Sales Promotion
i. Contests, games,
ii. Sampling
iii. Trade shows, exhibits
iv. Coupons
c. Events/ Experiences
i. Sports
ii. Entertainment
iii. Festivals
iv. Arts
d. Public Relations
i. Speeches
ii. Seminars
iii. Annual reports
iv. Charitable donations
v. Publications
e. Personal Selling
i. Sales presentations
ii. Sales meetings
iii. Incentive programs
iv. Samples
v. Fairs and trade shows
f. Direct Marketing
i. Catalogs
ii. Telemarketing

15) Explain how advertising is a communication process? How does it become a business
process in the context of direct marketing?
The most important factor to be considered in planning advertising, in addition to the

marketing plan, is an understanding of the communication and persuasion process. An
appreciation for the processes by which advertising works is of great value in designing
advertising plans—plans that maximize the advertisement’s impact on the consumer.
Advertising Communication System

The figure below shows one simple model of the advertising communication system. Ad-
vertising communication always involves a perception process and four of the elements
shown in the model: the source, a message, a communication channel, and 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 and the
important ideas of group influence and the diffusion of information.
Source
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. They are of obvious importance in deciding how best, and through whom, to
communicate the advertising message.

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 a great variety of ways and can include, for example, the use of humour and
fear.
Channel
The message is transmitted through some channel from the source to the receiver. The
channel in an advertising communication system consists of one or more kinds of media,
such as radio, television, newspapers, magazines, billboards, point-of-purchase displays,
and so on. The impact of the communication can be different for different media. For
example, an advertisement exposure in Vogue can have an effect quite different from
exposure to the same advertisement in Good Housekeeping. Word-of-mouth
communication, as mentioned above, represents another channel that is of special
interest because it can sometimes play a key role in an advertising campaign. It should be
noted that any communication system has a channel capacity. There is only so much
information that can be moved through it and only so much that a receiver will be mo-
tivated to receive and capable of processing. For example, there is a physical limit to the
number of advertisements that can be shown on prime time. Shortages of available
advertising time can be a real problem.
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, and so on. Of particular interest might be the receiver’s
involvement in the product and the extent to which he or she is willing to search for
and/or process information. It is the characteristics of the receiver—the demographic,
psychological, and social characteristics—that provide the basis for understanding
communications, persuasion, and market processes.

Destination
The communication model in Figure 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 and
the destination becomes another receiver. As mentioned earlier, 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 the credibility, comprehensiveness, and
impact to affect the ultimate behaviour of a portion of the audience. Furthermore,
advertising can actually stimulate word-of- mouth activity. Even when it cannot stimulate
it, knowledge of its appropriateness and power can be very helpful.
Note that an advertising message can have a variety of effects upon the receiver. It can
 Create awareness
 Communicate information about attributes and benefits
 Develop or change an image or personality
 Associate a brand with feelings and emotions
 Create group norms
 precipitate behaviour
16) What is sales promotion? What are the types of sales promotion?
Sales promotion has been defined as “a direct inducement that offers an extra value or
incentive for the product to the sales force, distributors, or the ultimate consumer with
the primary objective of creating an immediate sale.”
First, sales promotion involves some type of inducement that provides an extra
incentive to buy. This incentive is usually the key element in a promotional program; it
may be a coupon or price reduction, the opportunity to enter a contest or sweepstakes,

a money-back refund or rebate, or an extra amount of a product. The incentive may also
be a free sample of the product, given in hopes of generating a future purchase, or a
premium that serves as a reminder of the brand and reinforces its image.
Sales promotion can also provide an inducement to marketing intermediaries such as

wholesalers and retailers. A trade allowance or discount gives retailers a financial
incentive to stock and promote a manufacturer’s products. A trade contest directed
toward wholesalers or retail personnel gives them extra incentive to perform certain
tasks or meet sales goals.
A second point is that sales promotion is essentially an acceleration tool, designed to

speed up the selling process and maximize sales volume. By providing an extra
incentive, sales promotion techniques can motivate consumers to purchase a larger
quantity of a brand or shorten the purchase cycle of the trade or consumers by
encouraging them to take more immediate action.
Companies also use limited-time offers such as price-off deals to retailers or a coupon
with an expiration date to accelerate the purchase process. Sales promotion attempts to
maximize sales volume by motivating customers who have not responded to
advertising. The ideal sales promotion program generates sales that would not be
achieved by other means. However, as we shall see later, many sales promotion offers
end up being used by current users of a brand rather than attracting new users.
A final point regarding sales promotion activities is that they can be targeted to different
parties in the marketing channel. Sales promotion can be broken into two major
categories: consumer-oriented and trade-oriented promotions.
Activities involved in consumer-oriented sales promotion include sampling, couponing,
premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs
frequency programs, and event marketing. These promotions are directed at

consumers, the end purchasers of goods and services, and are designed to induce them
to purchase the marketer’s brand.
Consumer-oriented promotions
They are part of a promotional pull strategy; they work along with advertising to
encourage consumers to purchase a particular brand and thus create demand for it.
Consumer promotions are also used by retailers to encourage consumers to shop in
their particular stores. Many grocery stores use their own coupons or sponsor contests
and other promotions to increase store patronage.
Trade-oriented sales promotion

It includes dealer contests and incentives, trade allowances, point-of-purchase displays,
sales training programs, trade shows, cooperative advertising, and other programs
designed to motivate distributors and retailers to carry a product and make an extra
effort to push it to their customers. Many marketing programs include both trade- and
consumer-oriented promotions, since motivating both groups maximizes the
effectiveness of the promotional program.
a. Consumer Promotions
 Samples
 Coupons
 Free trials
 Price discounts
 Bonus packs
 Premiums
 Rebates

 Frequent user rewards
 Consumer contests sweepstakes & games
 Exchange or buy back offers
Trade Promotions
 Trade allowances
 Buying allowances
 Free goods
 Slotting allowances
 Advertising allowances
 Display
 Contests & Incentives
 Cooperative advertising
 Training programmes
17) Explain the characteristics of each of communication mix.
Advertising
• Pervasiveness
• Amplified expressiveness (dramatized)
• Impersonality
Sales Promotion
• Communication
• Incentive

• Invitation
Public Relations and Publicity
• High credibility
• Dramatization
Events and Experiences
• Involving
Direct Marketing
• Customized
• Up-to-date
• Interactive
Personal Selling
• Personal interaction
• Response
Word-of-Mouth Marketing
• Credible
• Personal
• Timely
18) Explain the entire process of Sales Force Management.

Sales Representative may have 6 types of roles based on the job he does.
1. Deliverer,
2. Order taker,
3. Missionary,
4. Technician,
5. Demand creator,
6. Solution vender.
Sales force Objectives and Strategy
Companies need to define specific sales force objectives regarding of selling the sales
people need to perform specific tasks to perform.

a) Prospecting:- searching for leads
b) Targeting: - Deciding how to allocate their time among prospects and customers.
c) Communicating: -communicate information about the company’s products and
services.
d) Selling:-Approaching, presenting, overcoming, objection and closing sales.
e) Servicing: - providing service to the customers.
f) Information gathering: - conducting marketing research and doing intelligence
work.
g) Allocating: - deciding which customer will get scares products during product
shortages.
SALES FORCE SRUCTURE
The sales force strategy has implications for its structure. Most of the companies are use a
territorial structure.
a) Strategic market sales force is composed of technical applications and quality

engineers and service personnel assigned to major accounts.
b) A geographic sales force.
c) A distribution sales force calling on and coaching.
d) Telemarketing and order taking by the internal sales force.
SALES FORCE SIZE
Based on the workload approach used to establish the sales force size.
a) Based on annual sales volume.

b) Establish desirable call frequencies.
c) Average number of calls made.
SALES FORCE COMPENSATION

Companies should develop an alternative compensation package. Management wants
control, economy and simplicity.
It may have straight salary, variable components and other parts.
 Fixed Amount
 Variable Amount
 Expenses Allowances
 Benefits
MANAGING THE SALES FORCE
Various policies and procedures guide the firm in recorrecting, selecting, training,
supervising, motivating and evaluating sales representatives.

19) Write a detailed note on Direct Marketing.
It is a system of marketing by which organizations communicate directly with target

customers to generate a response transaction.
It was set of direct response media, including direct mail, Telemarketing, interactive TV,
print, internet and other media.
Direct marketing develops a database to segment and target is market and lists them as
potential customers. The data base forms the basis for advising organization objectives.
The various ways direct marketing can be implemented are:
1. Direct mail: Also called JUNK MAIL. The unsolicited mail are receives key to
access of direct mail is the mailing list which constitutes the data base from
which names are generated.
2. Catalogs: There is significant increase in catalog mailing. E.g. GILI diamond
jewelry.
3. Broad cast media: T.V and radio are remarkably used to advertise the product
and customer can call in the toll free number.
4. Infomercials: Low cost communication cable and satellite channels long
commercial ranging from zero minutes
5. Teleshopping: Development of toll free number with the widespread use of
credit cards has led to shop via their T.V sets.
E.g.: ASIAN SKY SHOP
6. Print media: Magazines and newspaper are used to get response. It is an
expensive medium.
7. Telemarketing: Sales by telephone are very common. It is an effective one step
or two steps methods to reach the customers.
8. Direct selling: It is one elements of direct marketing. Personal presentation,
demonstration, sales of the product at home is the way direct selling is
performed.

Direct marketing can have selective reach segmentation of the population is easier
there is a flexibility of usage as many forms are available as it can be done for a shorter
duration. Direct marketing has various challenges like cost of postal service, the
accuracy of the direct marketing in effective only if the list accurate some products have
the image factor attached to it.
20) Explain Direct Marketing? What are the various methods used for direct marketing?
Direct Marketing is the use of consumer direct (CD) channels to reach and deliver goods
and services to customer without using marketing middlemen. Director Marketer can
use direct mail, catalogue, tele-marketing, interactive TV, kiosks, websites and mobile
devices.
Benefits of Direct Marketing
- Parking hassle and traffic jams

- Couriers can deliver the products at the door step.
- Many chain stores are selling specialty items through direct marketing
- Sellers on the other hand benefit as they have the addresses of the potential
customer who are likely to purchase your products
- It is a cost effective approach
- Sellers can measure its sales campaign and find whether the direct marketing
efforts are profitable or not
Direct Mail
It is sending an offer, announcement, reminder or other item to an individual customer.

Direct Marketers use letters, flyers, and foldouts. Some marketers mail CDs, DVDs to
prospective customers
- It provides target market selectivity

- Mails can be personalized

- Mails are flexible and response can be measured easily
- Direct Marketers should decide the objectives, target markets and prospects,
offer elements, means of testing the campaigns and measures of campaign
success.
An order response of 2% is normally considered to be good in case of direct mails. Most

of the direct marketers use RFM (Recency, Frequency, and Monitory Amount) to select
customers according to how much time has passed since their last purchase, how many
times they have purchased, and how much time they have spent since becoming a
customer. The best prospects are the customers who have already purchased the
product.
Example: Kotak Mahindra organized a fancy dress competition for children and
collected data by filling feedback forms from parents.
ICICI hosted a painting competition on the theme “what is your dream career”?
The outside envelope should be catchy with an illustration, like a context, premium or
benefits. The sales letter should be good quality paper and brief. A computer typed
letter is preferred. Direct Mailers should have the toll free numbers and the website
address. Postage free reply envelop will dramatically increase the response rate. Direct
mail has high readership. Thus it leads to high recall and purchase at later date.
Catalog Marketing:
Marketers send full time merchandize catalogues, specialist consumer catalogues and
business catalogues usually in a print and sometimes in CDs, videos or online.
Example: AVON, IKEA, MERCK etc.

Catalogue marketing can be successful, if the list of customer is carefully done without
duplication or bad debts, inventory control, offering quality merchandize so that the
returns are low and project distinct image.
Online catalogue gives the opportunity to go global. It also helps in saving papers,
mailing costs etc. E-catalogue is gaining popularity in East Asia. Example: Myntra.com,
Jabang.com etc.
Tele Marketing:
Use of telephone and call centers to attract prospects, sell to existing customers and
provide service by taking orders and answering questions.
Inbound Tele Marketing: Companies receive calls from the customers and answer to
their queries.
Outbound Tele Marketing: Companies initiate calls to prospect and customer to sell
their products.
Example: Wipro BPO solutions, Daksh by IBM, ICICI, HDFC and Reliance have their own
Call Centers.
Marico: Started dial a dietician in two cities in India
L’Oreal has toll free numbers to offer expert advice about looking good.
It will reduce the field force and travelling cost. Good telemarketing depends on good
tele marketers, training and performance based incentives.
INFO MERCIALS:
Product technologically complicated or advanced uses Info Mercials which is 30 min to

60 min Info Mercials to sell on the television.
Example: Tele brands, Asian Sky Shop (Essel Group)

Interactive Marketing:
Internet provides a new channel for the consumer to sell, it is interactive and
individualization. It gives the marketer the opportunity to gauge response
instantaneously. Example: Maruthi “DIL SE” programme. It used the media for NRI to
give to their dear ones in India. The marketer may place its Ad in any of the place where
the consumers are more likely to visit.
P & G, Estee Lauder, Kraft is increasing its online budget, Pepsi spends 5% on online over
the company on overall budget for Ads.
Disadvantages of Direct Marketing:
The darker side of Direct Marketing is –
- Irritation – Late night and dinner time calls can be bothersome. Poorly trained
callers and computerized calls can be irritating
- Unfairness - Marketers take advantage of the vulnerable and prey the buyers to
sell their product
- Deception and Fraud – Some direct marketers are fake. They exaggerate about
the product size, performance, retail price etc.
- Invasion of privacy – Consumer and critics think that the marketers may know
much about the private life of the consumers and it may be dangerous.

Bangalore University Semester-1 (Module-5) : 1) Define Marketing Communication

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Bangalore University Semester-1 (Module-5) 2014

1) Define marketing communication.

2) Who are opinion leaders?

3) Buzz Marketing means?

4) Draw a basic communication model.

Advertising is a paid form of non personal communication. Advertising promotes ideas

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 1

7) Link between IMC and Brand Equity.

8) Discuss the various online opportunities?

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 2

 The ad causes consumer to pay attention

 The ad motivates consumers to consider purchase of the brand

 The ad creates strong brand associations

10) State the components of a mailing.

11) State the issues in Direct Marketing.

12) What are the essential elements of Marketing Communication Mix?

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 3

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 4

13) Explain in detail process of developing an effective communication.

Step-1: Indentify the target audience:

Step-2: Determine the communication Objective

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 5

d) Brand Purchase Intension:

Step-3: Design the communication

c) Message Source: (Using Personality like Amitabh Bachaan)

Step-4: Selecting the communication channel

1) Personal Channel: Face to Face

2) Non-Personal Channel: Directed to more than one person

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 6

Step-6: Setting the total Communication Budget:

a) Affordable budget method

14) Explain different types of Communication Mix.

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 7

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 8

The most important factor to be considered in planning advertising, in addition to the

Advertising Communication System

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 9

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 10

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 11

Sales promotion can also provide an inducement to marketing intermediaries such as

A second point is that sales promotion is essentially an acceleration tool, designed to

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 12

Trade-oriented sales promotion

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 13

 Consumer contests sweepstakes & games

 Exchange or buy back offers

 Contests & Incentives

17) Explain the characteristics of each of communication mix.

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 14

Public Relations and Publicity

Events and Experiences

18) Explain the entire process of Sales Force Management.

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 15

Sales force Objectives and Strategy

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 16

SALES FORCE SRUCTURE

a) Strategic market sales force is composed of technical applications and quality

SALES FORCE SIZE

a) Based on annual sales volume.

SALES FORCE COMPENSATION

Krupanidhi School of Management – Prof.Sharathchandra Kamath K Page 17

It may have straight salary, variable components and other parts.

MANAGING THE SALES FORCE