Chapter-2 2nd Meeting

Presentation Outline
Elements of Marketing Mix Push Vs Pull Strategies Budgeting and Planning Campaign

Formulating Communication Strategy

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 products 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, conviction 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

generationexecution-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 3.

4.
5.

6.

perception Develop message and creative strategy Develop media strategy Prepare budget 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 advertisement and after the advertisement)

Budgeting Steps
Information collection: Information on the

firms 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