ad marketin final
TRANSCRIPT
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Advertising and
Marketing
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Inform
Persuade
Remind
Promote awareness of a
business and its product
or services
Stimulate sales directlyand "attract competitors
customers
Establish or modify a
business' image.
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Advertising and Marketing
Advertising is a partof Marketing: thus
all strategy is based
on complete
marketing
understanding
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
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The 4 Ps and 4Cs of
Marketing
The Four Cs model is
more consumer-oriented
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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 informationabout a product, and several other
considerations.
Communications represents a broader focusthan simply promotions. It includesadvertising, public relations, personal selling,viral advertising, and any form ofcommunication between the firm and theconsumer.
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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 trendstowards a service or
knowledge based
economy
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People all people who directly or indirectlyinfluence the perceived value of the product orservice, including knowledge workers,employees, management and consumers.
Process procedures, mechanisms and flow ofactivities which lead to an exchange of value.
Physical evidence the direct sensoryexperience of a product or service that allowsa customer to measure whether he or she hasreceived value. Examples might include theway 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 orservice is delivered
Extended
Marketing Mix
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The 7 Ps The 7 Cs
Organisation Facing Customer Facing
Product = Customer/ Consumer
Price = Cost
Place = ConveniencePromotion = Communication
People = Caring
Processes = Co-ordinated
Physical Evidence = Confirmation
d
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Promotion and
Communication
Promotion represents all of thecommunications that a marketermay use in the marketplace.
Promotion and communicationis usually done through fivedistinct elementsadvertising,
personal selling, publicrelations, word of mouth andpoint of sale.
A certain amount of crossoveroccurs when promotion uses thefive principal elements together
Advertising covers anycommunication that is paid for,from and cinema commercials,radio and Internet advertsthrough print media andbillboards.
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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
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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
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Maximization The
Expectation
Economics Theory:
individuals or societies
gain the maximumamount out of the
resources they have
available to them
Ref:notes
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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
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Marketing and Advertising - The Links
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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 Promotiongoes up
In an inflationary economy
In a recession economy
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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
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PIMS Profit Impact of Market
Strategy
Empirical Evidences: American Strategic Planning
Institute
Variablesa 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
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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 &
operationComplementary
Products
After sales
solutions
Ending of
Servicce
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Infrastructure
Core capabilities: The capabilities
and competencies necessary toexecute 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."
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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 acompany 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.
C t i f l ti
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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 propositionlife 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)
Th B i M d l th t t
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The Business Model that creates
Value Proposition For the
Customer - the new strategy
Core
Capabilities
Partner
Configuration
Value
Configuration
Infrastructure
Value Proposition
Offer
Distribution
Channel
Customer
Relationship
Target Market
Customer
Cost Structure Revenue
StreamsFinance
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Marketing and Brand
Wh t i
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What is a
brand
A brand name
identifies and
distinguishes a
specific product,
service
Profitable
Differentiator
Identifier
Relationship with
consumer
Base
of
Marketing
communication
Ownership
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Product
Made within the factory or
service
Can be copied
Brand
Bought by the consumer
Unique
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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 buyingchoices
Entertainment: Satisfaction of choice
includes novelty, arousal, surprise ,
gratification
B d E it
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Brand Equity
BrandEquity
(name andSymbol
Awareness
Associations
QualityProprietary
assets
Loyalty
Value to Customer Enhancing Customer
Interpretation Processing of information
Confidence in the purchase decision
User Satisfaction
Value to Firm by enhancingEfficiency & effectiveness of
market program
Brand Loyalty
Price/Margins
Brand Extensions
Trade Leverage
Competitive Advantage
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BrandKnowledge
Brand
Awareness
Brand
Image
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BrandAwareness
Brand
Recognition
Brand
Recall
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Brand Image
Unique Type ofAssociation
Strength Favorability
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Types of Brand Image
Associations
Attributes Benefits Attitudes
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Benefits
Functional Experiential Symbols
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Attributes
Product related Non product
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Non Product
Price Packaging User Image Usage imagary
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Brand Personality
Creating a brand personality in
keeping with the consumer
perception . Consistent with thefunctional and psychological
personality of the product and
brand
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Arriving at a value proposition-Advertising Communication
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Advertising,
Marketing
&Value
Proposition
Th b d
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The brand
can be seen:
Product Organization
Person Symbol
Th ti f th
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The creation of the
image
Product Organisation Person Symbol
ScopeOrganisational
attributes
PersonalityVisual Imagery
and Metaphors
Attributes Trust
Customer &
Brand
Relationship
Heritage
Quality/ ValueLocal /
national/global
Brand Image =
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Brand Image
Value Proposition +
Credibility
Value Proposition
Benefits
FUNCTIONAL
EMOTIONAL
SELF EXPRESSIVE
Credibility
SUPPORTS OTHER
BRANDS
Building the customer brand relationship
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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
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Marketing to
Advertising Objectives
Arri in at Ad ertisin
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Arriving at Advertising
objectives
Primarily
this is
Target
audience
driven
Trial
ContinuityBrand Switching
Switchback
Advertising
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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.
Ad i i Obj i
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Advertising Objectives-
Continuity
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.
Ad ti i Obj ti B d
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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 productbrand.
Ad ti i Obj ti
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Advertising Objectives-
Switchback
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.
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Marketing to Media Objectives
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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
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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 b b d th 8 t f
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Will be based on the 8 stages of
consumer decision making
Need
Awareness
Preference
Search
Selection
Purchase Use
Satisfaction
Building Brand &
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Building Brand &
Consumer Relationships
through Media Profiling the
target audience
Understanding
the creativebrief
Setting Budget
Parameters
Brand Trends
BrandConsumer
Media
di hi l
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Media Vehicle
Decisions
Reach and Frequency Audited Circulation
Media Vehicle Source Effect
Reach and
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Reach and
Frequency
Midday Mirror have a better reach to
youth
Mirror may actually have higher frequencythan Mid-day in Pune. But in Mumbai Mid-
day is a strong challenger for frequency
On the whole TOI as a collective may enjoy
both greater reach and frequency
Audited
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Audited
Circulation
Web Media vs/ Print
The New York Times Circulation strategy -The Newspaper vs/- the growing web
presence
Media Vehicle Source
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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
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Media Decisions
Colour and size Impact
Location
Scheduling as per special timing and the
product flighting, continuous, pulsing-
ATL d BTL
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ATL and BTL
Above the line (ATL) is anadvertising technique usingmedia to promote brands.
include TV and radioadvertising, print , outdooradvertising and new media
conventional in nature andis considered impersonal tocustomers.
BTL (Below the line),unconventional brand-
building strategies likedirect mail, carpeting of
floors, events etc.
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Below the line
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Below the lineadvertising
Below the line promotions are
becoming increasingly
important within thecommunications mix of many
companies. FMCG products,
and industrial products use
them extensively.
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The term "Below the Line" is rapidly going out of fashion inadvertising 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 willrely on immediate information than previously researcheditems.
BTL techniques ensures recall of the brand while at thesame time highlighting the features of the product.
Media as a brand
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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 traditionalplan
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Media - The Long Tail
What is the Long Tail
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What is the Long Tail
Concept
"The Long Tail" is an article by Chris
Anderson in an October 2004 Wired
magazine article
Describes the niche strategy of
businesses, that sell a large numberof unique items, each in relatively
small quantities.
Derived from internet
driven advertising
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What is long tail
Products that are in low
demand or have low sales
volume can collectivelymake up a market share
that rivals or exceeds the
relatively few current
bestsellers and
blockbusters, if the store or
distribution channel is
large enough.
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Forget squeezing millions from a
few megahits at the
top of the charts. The future of
entertainment is in the millions ofniche markets at the shallow end
of the bitstream.Chris Anderson
Long tail and the
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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,
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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
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The Long tail of media
choices
Newspaper
National
dailies/magazines
Prime time TV
Local papersHoardings
BTL solutions
New Media solutions etc.
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Today with
information overload
the need
for engagment increases
Choosing your
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g y
media
Making the media advance your brand
agenda. (The 'official sponsor vs/ unofficial
sponsor the zoozoo phenomena)
Seek newer variety of engagement thecadbury viral video which also attract
brand switchers
Move out of Silos - go where the audienceis
The growing media long
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g g g
tail
Podcasts
Growing news media
Changing nature of content choice
3 G technology
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Mix the big media choices (the top) with the
other media engagements (IMC)-scalableengagement
Look at more flexible and neutral toolsaudience measurement
More target fixing: The Roadie, JAMmagazine
Judging the media
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g g
potential
How effectively does it reach your
audience
Does it encourage your audience to engage withyour product
Does it help create strong brand associations