Introduction to Advertising & Promotion Management

Chapter-1: Introduction to Advertising & Promotion Management
What is a Market?
A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. —Philip Kotler.
The other view of market is a set of actual and potential buyers of a product or service.
What is marketing?
Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer’s point of view…. Business success in not only determined by the producer but by the customer. —Peter Drucker.
Marketing work in the customer market is formally carried out by sales managers, sales people, advertising and promotional managers, marketing researchers, customer service managers, product and brand managers, market and industry managers, and the marketing vice-president.
Demand and Marketing:

1. Negative Demand: If a major part of the market dislikes the product and may even pay a price to avoid it. Vaccination, dental work etc. The marketing task is to analyse why the market dislikes the product and whether a marketing program consisting of products redesign, lower prices, and more positive promotion ……conventional marketing.
2. No Demand: Target customers may be uninterested or indifferent to the product. Farmers may not be interested to new farming method, foreign language course. The marketing task is to find ways to connect the benefits of the product with the persons natural needs and interests……Stimulational marketing.
3. Latent Demand: Many consumers may share a strong need that cannot be satisfied by any existing product. Harmless cigarettes, more fuel efficient car.
   The marketing task is to measure the size of the potential market, develop effective goods and service… Developmental marketing.
4. Declining Demand: Sooner or later, every organization faces declining demand. The marketer must analyze the cause of decline and determine whether the demand can be re-stimulated by finding new markets, develop more effective communication…. Remarketing.
5. Irregular Demand: Demand that varies on a seasonal, daily, or even hourly basis. Peak travel hours, Museums, Parks. The marketing task is to find out ways to alter the same pattern of demand though flexible pricing, promotion, and other incentives… Synchromarketing.
6. Full Demand: Organizations face full demand when they are pleased with their volume of business. The marketing task is to maintain the level of demand in the face of changing consumer preference and increasing competition…. Maintenance marketing.
7. Overfull Demand: Demand level that is higher than they can or want to handle. The marketing task requires finding ways to reduce the demand temporarily or permanently by rising price, reduce promotion and service…Demarketing.
8. Unwholesome Demand: Unwholesome products will attract organized efforts to discourage their consumption. Alcohol, handguns. The marketing task is to get people who like something to give it up, using such tools as fear communication, price hikes, and reduced availability ….Countermarketing.
   Competing Concepts:
   Marketing activities should be carried out under a well-thought-out philosophy of efficient, effective, and responsible marketing:
9. The Production concept: The production concept holds that consumers will favor those products that are widely available and low in cost. Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution coverage.
10. The Product concept: The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in these product-oriented organizations focus their energy on making superior products and improving them over time.
11. The Selling concept: The selling concept holds that consumers, if let alone, will ordinarily not buy enough of the organization’s products. The organization must therefore undertake an aggressive selling and promotion effort.
12. The Marketing concept: The Marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
13. The Societal Marketing concept: The societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.
14. The Customer Concept: The ability of a company to deal with customers one at a time. Internet, and database marketing software, Profitable growth, capturing a large share of each customer’s expenditures
    Communication Defined:
    Communication is any behavior, verbal, nonverbal on graphic that is perceived by another. Knowledge, feelings or thoughts are encoded and sent from at least one person and received and decoded by another. A connection is made between the people communicating.
    Forms of Communication:
15. Verbal communication (written or spoken): Communication between two or more people in the forms of spoken of written words.
16. Nonverbal communication: Nonverbal behavior includes body movement (hands, head, feet, legs) postures, eye movements, facial expressions, vocalizations and voice qualities.
17. Graphic communication: Graphic communication represents ideas, relationships or connections visually with shapes, diagrams and lines.
    Types of Communication:
    (i) Intra-personal communication: Communication within the individual through the process of thinking and feeling.
    (ii) Interpersonal communication: Interaction between two people on a one-to-one basis or in small groups.
    (iii) Public communication: When an organization communicates with a number of receivers at the same time.
    (iv)Mass communication: Contracting people using mass (print/electro) media.
    Marketing Communication and Promotion:
    Modern marketing calls for more than developing a good product, pricing it attractively, and making it assessable. Companies must also communicate with present and potential stakeholders, and the general public.
    Integrated marketing communication is a way of looking at the whole marketing process from the viewpoint of the customer. The question is not whether to communicate but rather what to say, to whom, and how often. The marketing communications and promotion mix consists of five major modes of communication and common platforms of communication.
    The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives. The modes are briefly discussed below:
    (i) Advertising:
    Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Print and broadcast ads, packaging outer, motion pictures, brochures and leaflets, billboards, display signs, point of purchase displays, videotapes.
    (ii) Sales Promotion:
    A variety of short-term incentives are taken to encourage trial or purchase of a product or service. For example, Contests, games, lotteries, sampling, demonstrations, coupons, low interest financing, entertainment, fairs and tradeshows etc.
    (iii) Public Relations and Publicity:
    A variety of programs designed to promote or protect a company’s image of its individual products. Press kits, speeches, seminars, annual reports, sponsorships, publications, community relations, company magazines.
    (iv) Personal Selling:
    It is face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring others. Sales presentations, sales meetings, incentive programs, samples, fairs and tradeshows etc
    (v) Direct and Interactive Marketing:
    Direct connections with carefully targeted individual consumers to both obtain
    an immediate response and cultivate lasting relationships. Use of mail, telephone, fax, e-mail or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. Catalogs, mailings, telemarketing, E-shopping, TV shopping, and voice mail etc
    At the same time, communications goes beyond these specific promotional tools. The product’s design, its price, the shape and color of its packages, and the stores that sells it – all communicate something to buyers.

The Communication Process:
The communication platforms are the way for not only how can a company reach their customers but also how can customers reach company. The product’s styling and price, the shape and color of the package, the sales person’s manner and dress, the store décor, the company’s stationery- all communicate something to buyers.
Every brand contract delivers an impression that can strengthen or weaken a customer’s view of the company. The whole marketing mix must be integrated to deliver a consistent message and strategic positioning.

Elements of Communication Process:
Sender: The party sending the message to another party
Encoding: The process of putting thought into symbolic form
Message: The set of symbols that the sender transmits
Media: The communication channels through which the message moves from the sender to receiver
Decoding: The process by which the receiver assigns meaning to the symbols encoded by the sender
Receiver: The party receiving the message sent by another party
Response: The reactions of the receiver after being exposed to the message
Feedback: The part of the receiver’s response communicated back to sender
Noise: The unplanned static or distortion during the communication process, which results in the receiver’s getting different message than the sender sent.
Communication Functions: Encoding, decoding, response and feedback. Senders must know what audiences they want to reach and what responses they want to get. They must encode their message so that target audience can decode them. They must transmit the message through the media and develop feedback channel to monitor them. The target audience may not receive the intended message because of three reasons:

1. Selective Attention: People are bombarded by about 1600 commercial messages a day. A person cannot attend to all these stimuli. Selective attention explains why ads with bold headlines promising something such as how to make a million. People are more likely to notice stimuli that relate to a current need that they anticipate and whose deviations are large in relation to normal.
2. Selective Distortion: Receivers will hear what fits into their belief systems. The communicators’ task is to strive for simplicity, clarity, interest and repetition to get them. Selective distortion describes the tendency of people to twist information into personal meaning.
3. Selective Retention: People will retain in long-term memory only a small fraction of the messages that reach them. People will forget much that they learn. They tend to retain information that supports their attitude and beliefs.
   These perceptual factors selective attention, distortion, and retention means the marketer have to work hard to get their message across.