PUNE INSTITUTE OF BUSINESS MANAGEMENT

MARKETING RESEARCH

DR. Prantosh Banerjee

GROUP NO: 09

2023-2208-0001-0004 Rajshekhar Singh

2023-0809-0001-0010 Rishiraj Swami
2023-0909-0001-0001 Laveena Rupani
2023-1208-0001-0008 Phijam Bebeto Singh
2023-1208-0001-0010 Yumkhaibam Swami Singh
2023-2208-0001-0011 Sneha Mohis
Chapter 20: Introducing New Market Offerings
Managing Advertising

Advertising – any paid form of non-personal presentation and promotion of goods, ideas, or services
by an identified sponsor.

Communication companies – the broader term under which advertising agencies are redefining
themselves since they are assisting in overall communication effectiveness.

The 5 M’s of Advertising: These are the 5 decisions required in developing an advertising program:
Money, Mission, Media, Message, and Measurement.

Steps in Developing an advertising program:

1. Setting advertising objectives (mission) – Objectives can be classified by the aim: To persuade,
inform, reinforce, and remind.

2. Deciding on the advertising budget (money) – Which factors to consider when budget-setting:

Market share and consumer base.

Advertising frequency.

Stage of product life cycle.

Product substitutability.

Competition and clutter

3. Choosing the advertising message (message) – Which factors to consider when choosing the
advertising message:

Message generation – How to create an effective message.

Message execution – Deciding on how to say the message, e.g. present explicit features or appeal to
emotions? What headings, tones, and words should be used?

Message evaluation and selection – How to rate messages, e.g. according to desirability,
exclusiveness, and believability.

Deciding on Media Strategies (media) – Media Selection – finding the most cost-effective media to
deliver the desired number and type of exposures to the target audience.

Social responsibility review – How to best adhere to e.g. US laws of avoiding deceptive or false
advertising, bait-and-switch advertising, while not offending ethnic groups, racial minorities, or
special-interest groups.

Involves deciding on Reach (number of people exposed), frequency of exposure, and impact
(qualitative value).

The relationship between frequency, reach, and impact is shown in total number of exposures (R x F),
and weighted number of exposures (R x F x I)
Selecting media types (television, newspapers, Radio, direct mail, Magazines, yellow pages, outdoor,
brochures, newsletters, telephone) and vehicles.

Involves determining media timing like seasons and business cycles

Models which are developed on timing can be focused on macro scheduling (like the time lag model),
involving scheduling the advertising in relation to the business cycle and season, or micro scheduling
based, calling for allocating advertising expenditures within a short period to obtain maximum impact.

The most effective pattern, however, depends on the objectives of the communication in relation to
the nature of the target customers, product, distribution channels, and other marketing factors.

Carryover: the rate at which the effect of an advertising expenditure wears out with the passage of
time.

Habitual behaviour: indicates how many brand holdovers occur independent of the level of
advertising.

Concentration, continuity, pulsing, and flight, and different timing strategies:

Concentration: calls for spending all the advertising dollars in a single period.

Continuity: is achieved by scheduling exposures evenly throughout a given period.

Pulsing: continuous advertising at low-weight levels reinforced periodically by waves of heavier

activity.

Flight: calls for advertising for some period, followed by an interruption of no advertising, followed
by a second period of advertising activity.

It involves deciding on geographical media allocation

Areas of Dominant Influence ADI’s – are areas in which companies pursue “spot buys” for certain
markets or in regional editions of magazines, or contiguous areas defined by media, cultural, and
economic forces.

4. Measuring Effectiveness (measurement):

Sales-effect research – Seeks to determine the effects on sales by an ad that increases awareness. Can
be found by analyzing historical data, historical approach, or analyzing experimental data in an
experimental design.

Communication-effect research – seeks to determine whether an ad is communicating effectively.

Methods of advertising pretesting – consumer feedback method for their reactions, portfolio test of
consumers, and laboratory tests to measure physiological reactions.

Sales Promotion

Sales Promotions are short-term incentives designed to stimulate purchases among consumers or
trade.

Purpose of sales promotion:

Reward loyal customers.

Increase repurchase rates.

Attract new triers or brand switchers

Steps in sales promotion program development: Establish objectives, select consumer-promotion

tools, select trade-promotion tools, select business- and sales-force promotion tools, and develop the
program. Pre-test the program, and finally implement and evaluate the program.

Examples of major consumer promotion tools are coupons, samples, cash refunds (rebates), prizes
(contests, sweepstakes, games), premiums, free trials, patronage awards, tie-in promotions, product
warranties, point-of-purchase displays, cross-promotions, and demonstrations

Major trade promotion tools – Price-off, free goods, allowance, sales contests, trade shows and
conventions, and specialty advertising.

Public Relations

Public relations activities protect or promote the image of a firm or product

Functions of public relations:

Product publicity.

Press relations.

Lobbying.

Corporate communications.

Counseling.

Marketing Public Relations (MPR) plays an important role in:

Repositioning of mature brand.

New product launches.

Influencing specific target groups.

Building interest in the product category.

Building the corporate image.

Defending products with public problems.

Major MPR decisions:

Establishing the market objectives.

Choose the PR vehicles and messages.

Implement the plan with care and evaluate the results:

Measures of MPR effectiveness:

The change in product awareness, comprehension, or attitude resulting from the MPR campaign.

Sales-and-profit impact through finding the return on MPR investment (most satisfactory measure).

Number of exposures carried by the media.

Major Tools in Marketing PR: events, publications, news, sponsorships, public-service activities,
speeches, and identity media.

Direct Marketing

Direct Marketing – the use of consumer-direct (CD) channels to reach and deliver services and goods
to customers without using a marketing middleman.

Major Direct Marketing Tools:

Direct mail: involves sending an offer, announcement, reminder, or other item to a person.
Advantage: permits target market selectivity, can be personalized, is flexible, and allows early testing
and response measurement.

Face-to-face selling, direct selling (insurance agents, stockbrokers…).

Stages of Direct Marketing:

Database marketing: using a database to find prospects to aim at.

Carpet bombing: mass mailing to a large number of people.

Real-time personalized marketing: customizing messages.

Lifetime value marketing: developing a plan for lifetime marketing to each valuable customer.

Interactive marketing: telephone numbers, and internet sites to promote interaction.

Steps in Developing a Direct-Mail Campaign:

Set objectives.

Identify the target markets.

Define the offer.

Test the elements.

Measure the results.

Catalog Marketing: companies send full-line merchandise catalogs, business catalogs, and specialty
consumer catalogs, usually in print form but also sometimes as CDs, videos, or online.

Telemarketing: involves the use of the telephone and call centers to attract prospects, sell to existing
customers, and provide service by answering questions and taking orders. Types of Telemarketing:
telecoverage (calling customers), tele sales (taking orders), teleprospecting (generating new leads),
and customer service and technical support.

Direct Response TV Marketing: using the television to promote direct sales with at-home shopping
channels, direct-response advertising, and videotext and interactive TV.

Kiosk marketing: a small building or structure that might house a selling or information unit like
newsstands and free-standing carts.

E-marketing: an electronic channel for direct marketing.