Advertising and Marketing

Inform

Promote awareness of a business and its product or services Stimulate sales directly and "attract competitors customers Establish or modify a business' image.

Persuade

Remind

Advertising and Marketing

A Marketing Manager has to take a complete understanding of the brand and its situation in Product, Price, place promotion and The 4 Cs: Commodity Cost, Channel, Communication + Political Influences, Public Opinion

Advertising is a part of Marketing: thus all strategy is based on complete marketing understanding

The 4 Ps and 4Cs of Marketing

The Four Cs model is more consumer-oriented

Analyzing the 4 Cs
Shifting the focus to satisfying the consumer reflecting the reality of the total cost of ownership Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations. Communications represents a broader focus than simply promotions. It includes advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer.

Extended Marketing Mix

1970s, Nickels and Jolson suggested the inclusion of packaging.

1980s Kotler proposed public opinion and political power

Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy

Extended Marketing Mix

People all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers. Process procedures, mechanisms and flow of activities which lead to an exchange of value. Physical evidence the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered

The 7 Ps Organisation Facing

The 7 Cs Customer Facing

Product Price Place Promotion People Processes Physical Evidence

= = = = = = =

Customer/ Consumer Cost Convenience Communication Caring Co-ordinated Confirmation

Promotion and Communication

Promotion represents all of the communications that a marketer may use in the marketplace. Promotion and communication is usually done through five distinct elements advertising, personal selling, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the five principal elements together Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards.

Marketing & Advertising Marketing Mix Models The problem Assumption: Advertising is to do with promotion Today it is used with the other mixes in the IMC concept

From Business Plan to Advertising

More AD Spent does not result in greater visibility Response to advertising is uneven and unstable Strategy is core to Better advertising

Advertising Plan Marketing Plan

Business Plan

Maximization The Expectation

Economics Theory: individuals or societies gain the maximum amount out of the resources they have available to them
Ref:notes

Advertising: the unaccountable many Competition behavior, elasticity of demand, creative and copy, media differences. However Post advertising research is trying to assess the profit maximization the growth of empirical data in all kinds of advertising -computer modeling and modern research also the growth of Internet advertising solutions

Profit Maximization : Marginal Revenue calculated with Marginal Cost Increase in output will always raise profit as long as MR is greater than MC

Marketing and Advertising - The Links

When does Adverting goes up When the cost of sales go up in relation to advertising =more advertising will be used. More advertisements in lieu of sales people or even retail solutions

When does Sales Promotion goes up

In an inflationary economy In a recession economy

The task of advertising is to be pull and push factor the information source. However it can be also responsible for the entire selling job. (The most complete concept to this is telemarketing or mailers and the increasing influence of online)

Product Advertising
Obviously where there is always something tangible to Sell

Non Product Advertising

Corporate, Institutional Image building, ultimate goal is also to increase sales in direct and long term situations

PIMS Profit Impact of Market Strategy

Empirical Evidences: American Strategic Planning Institute

Variables
a strong market position high quality of product lower costs lower requirement for capital investment market share image investment intensity market growth life cycle stage marketing expense to sales ratio

PIMS possible strategies, based on the data gathered from participating companies ROI and cash flows

Today companies ensure its value proposition across the different phases , to create a value proposition life cycle

Evaluation Process

Value Co-creation

Purchase Power

Set up & installation

Use & operation

Complementary Products

After sales solutions

Ending of Servicce

Infrastructure Core capabilities: The capabilities and competencies necessary to execute a company's business model. Partner network: The business alliances which complement other aspects of the business model. Value configuration: The rationale which makes a business mutually beneficial for a business and its customers.

Offering
Value proposition: The products and services a business offers. Alexander Osterwalder. (2004), a value proposition "is an overall view of .. products and services that together represent value for a specific customer segment. It describes the way a firm differentiates itself from its competitors and is the reason why customers buy from a certain firm and not from another."

Customers
Target customer: The target audience for a business' products and services. Distribution channel: The means by which a company delivers products and services to customers. This includes the company's marketing and distribution strategy. Customer relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.

Finances
Cost structure: The monetary consequences of the means employed in the business model. A company's DOC. Revenue: The way a company makes money through a variety of revenue flows. A company's income.

Categories of value creation:

Productivity & Returns: value is created by increasing a customer's productivity, his returns and his utility. Simplicity: value is created by making each phase of the value proposition life cycle as simple as possible to understand. For example, a software company can make the parametrization of its software as simple as possible. Convenience: value is created by making a customer's life as convenient as possible. For example, an online grocer creates value by delivering goods at the time the customer desires. Risk: value is created by minimizing a customer's various risks. For example, a customer risks choosing a product/service that does not satisfy his needs, or he may incur a physical risk by using the product (e.g. lawn mower) or he may risk choosing a product at the wrong moment (e.g. buying a plasma TV just before an important price decrease). Image: value is created by the image a product/service gives its purchaser (e.g. iPhone)

The Business Model that creates Value Proposition For the Customer - the new strategy
Partner Configuration
Customer Relationship

Infrastructure
Core Capabilities

Offer
Value Proposition

Customer
Target Market

Value Configuration

Distribution Channel

Cost Structure

Finance

Revenue Streams

Marketing and Brand

What is a brand
Ownership

Identifier

Relationship with consumer

A brand name identifies and distinguishes a specific product, service Profitable Differentiator Base of Marketing communication

Product Made within the factory or service Can be copied

Brand Bought by the consumer Unique

Brand Characteristics and Functions

Identity : Name that guides the consumer towards choice Practicality : Summarization of information for retention Guarantee: Signature of provider reducing risk and uncertainty Personalization: allows consumer personality expressions thru buying choices Entertainment: Satisfaction of choice includes novelty, arousal, surprise , gratification

Brand Equity
Awareness

Loyalty

Associations

Brand Equity (name and Symbol

Proprietary assets

Quality

Value to Customer Enhancing Customer Interpretation Processing of information Confidence in the purchase decision User Satisfaction

Value to Firm by enhancing Efficiency & effectiveness of market program Brand Loyalty Price/Margins Brand Extensions Trade Leverage Competitive Advantage

Brand Knowledge

Brand Awareness

Brand Image

Brand Awareness Brand Recognition Brand Recall

Brand Image

Unique

Type of Association

Strength

Favorability

Types of Brand Image Associations

Attributes

Benefits

Attitudes

Benefits

Functional

Experiential

Symbols

Attributes

Product related

Non product

Non Product

Price

Packaging

User Image

Usage imagary

Brand Personality
Creating a brand personality in keeping with the consumer perception . Consistent with the functional and psychological personality of the product and brand

Arriving at a value propositionAdvertising Communication

Advertising, Marketing & Value Proposition

The brand can be seen:

Product

Organization

Person

Symbol

The creation of the image

Product
Scope

Organisation Person
Organisational attributes Trust Local / national/global Personality Customer & Brand Relationship

Symbol
Visual Imagery and Metaphors Heritage

Attributes

Quality/ Value

Brand Image = Value Proposition + Credibility

Value Proposition Benefits
FUNCTIONAL

Credibility

SUPPORTS OTHER
EMOTIONAL

BRANDS

SELF EXPRESSIVE

Building the customer brand relationship

Brand Identity Implementation System

Brand Positioning
Subset of a brand identity

To a target audience
To be actively communicated

Providing a range of competative and other benifits

Marketing to Advertising Objectives

Arriving at Advertising objectives

Primarily this is Target audience driven
Trial Continuity Brand Switching Switchback

Advertising Objectives-Trial
Encourage customers to make an initial purchase of a new product. Companies will typically employ creative advertising strategies in order to cut through other competing advertisements. The reason is simple: Without that first trial of a product by customers, there will not be any repeat purchases.

Advertising ObjectivesContinuity Continuity advertising is a strategy to keep current customers using a particular product. Existing customers are targeted and are usually provided new and different information about a product that is designed to build consumer loyalty.

Advertising Objectives- Brand Switching Companies adopt brand switching as an objective when they want customers to switch from competitors brands to their brands. A common strategy is for a company to compare product price or quality in order to convince customers to switch to its product brand.

Advertising ObjectivesSwitchback
Companies subscribe to this advertising objective when they want to get back former users of their product brand. A company might highlight new product features, price reductions, or other important product information in order to get former customers of its product to switchback.

Marketing to Media Objectives

The usual marketing objectives that need to get translated to media

Percentage or actual increase in sales and market share Increase of Brand visibility Increase shelf space to a given percentage volume Bring in greater retail visibility

Thus.
Current users will be encouraged to try the product more Brand switchers will be encouraged The frequency of exposure to current users will be increased Potential users in the targeted segment will be focused on

Will be based on the 8 stages of consumer decision making

Need Awareness Preference Search Selection Purchase Use Satisfaction

Building Brand & Consumer Relationships through Media

Profiling the target audience Understanding the creative brief Setting Budget Parameters Brand Trends

Brand
Consumer

Media

Media Vehicle Decisions

Reach and Frequency Audited Circulation Media Vehicle Source Effect

Reach and Frequency

Midday Mirror have a better reach to youth Mirror may actually have higher frequency than Mid-day in Pune. But in Mumbai Midday is a strong challenger for frequency On the whole TOI as a collective may enjoy both greater reach and frequency

Audited Circulation
Web Media vs/ Print The New York Times Circulation strategy The Newspaper vs/- the growing web presence

Media Vehicle Source Effect

Based on What are you advertising: Fashion- Femina or Cosmopolitan Political TOI, IE, THE HINDU General content to watch out for: Expertise, Editorial fit, Prestige, Influence, Audience involvement

Media Decisions

Colour and size Impact Location Scheduling as per special timing and the product flighting, continuous, pulsing-

ATL and BTL

Above the line (ATL) is an advertising technique using media to promote brands. BTL (Below the line), unconventional brandbuilding strategies like direct mail, carpeting of floors, events etc.

include TV and radio advertising, print , outdoor advertising and new media

conventional in nature and is considered impersonal to customers.

Below the line advertising

Below the line promotions are becoming increasingly important within the communications mix of many companies. FMCG products, and industrial products use them extensively.

The term "Below the Line" is rapidly going out of fashion in advertising circles as agencies and clients switch to an 'Integrated Communication Approach.'
BTL is a common technique used for touch and feel products. Those consumer items where the customer will rely on immediate information than previously researched items. BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.

Media as a brand contact

Planners looking at ensuring a Products brand contact: Sponsorships of teams, which program to choose and timings, which films could be chosen for ads-and all this needs to integrate with the traditional plan

Media - The Long Tail

What is the Long Tail Concept

"The Long Tail" is an article by Chris Anderson in an October 2004 Wired magazine article
Derived from internet driven advertising

Describes the niche strategy of businesses, that sell a large number of unique items, each in relatively small quantities.

What is long tail

Products that are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blockbusters, if the store or distribution channel is
large enough.

Forget squeezing millions from a few megahits at the top of the charts. The future of entertainment is in the millions of niche markets at the shallow end of the bitstream. Chris Anderson

Long tail and the media

The exposure of content beyond the initial released time frame.
This Long tail exposure can be a beneficial factor for advertising, as the advertisement exposure extends beyond the measured time frame of the negotiated deal.

Advertising, media, brand building and long tail

The scope of technology allows greater long tails The range of ATL options are growing allowing for more options BTL options are expanding again allowing long tails In today's IMC scenario the options for product promotion are getting more There are more media options for an advertiser to choose from

The Long tail of media choices

Newspaper National dailies/magazines Prime time TV

Local papers Hoardings BTL solutions New Media solutions etc.

Today with information overload the need for engagment increases

Choosing your media

Making the media advance your brand agenda. (The 'official sponsor vs/ unofficial sponsor the zoozoo phenomena) Seek newer variety of engagement the cadbury viral video which also attract brand switchers Move out of Silos - go where the audience is

The growing media long tail

Podcasts Growing news media Changing nature of content choice 3 G technology

Mix the big media choices (the top) with the other media engagements (IMC)-scalable engagement

Look at more flexible and neutral tools audience measurement

More target fixing: The Roadie, JAM magazine

Judging the media potential

How effectively does it reach your audience Does it encourage your audience to engage with your product Does it help create strong brand associations