Teaching Plan

Subject :-
Advertising and Brand Management-MS 214

Army Institute of Management & Technology

Gr. Noida
 ALL PROGRESS IS BORN OF INQUIRY. DOUBT IS OFTEN
BETTER THAN OVER-CONFIDENCE, FOR IT LEADS TO
INQUIRY AND INQUIRY LEADS TO INVENTION.

Marketing Today
The course aims at making students understanding
the concepts, philosophies, process, techniques
and principles of Advertising and to develop an
understanding of the Brand concept and the
operational aspects of managing a brand.
 PEDAGOGY
MAJOR ASSIGNMENT

LIVE PROJECT
4 OTW & 2 Contact Hrs.
MINOR ASSIGNMENTS
- 2 OTW & 1 Contact Hrs.
CASE STUDY (02)
04 OTW & 04 Contact Hrs
CLASS ROOM LECTURES
- 32 Hrs

Total Class Total Assignment/ Total OTW

Room Lectures Presentation Hrs
31 6 14
 strive to satisfy its customers' wants and needs
while meeting the organization's goals. In simple
terms, "the customer is king".
It is not something that the marketing department
administers, nor is it the sole domain of the
marketing department. Rather, it is adopted by the
entire organization.
Wal-Mart's motto of "satisfaction guaranteed" is
an example of the marketing concept.

EVOLUTION OF THE MARKETING CONCEPT AND

PHILOSOPHY
Three major philosophies of marketing- are the product, selling,
and marketing philosophies.

PRODUCT PHILOSOPHY
The Industrial Revolution
The product philosophy holds that the organization knows its product
better than anyone or any organization.
 still operates using the product philosophy. The
gunsmiths produce single-shot rifles using the
technology available during the 1700s. They are only
able to produce about four or five rifles every year,
and they charge from $15,000 to $20,000 for each
rifle. However, the high price does not deter the
demand for the guns; their uniqueness commands a
waiting list of three to four years. Today's
Williamsburg Gunsmith Shop situation was typical for
organizations operating before the Industrial
Revolution. Most goods were in such short supply that
companies could sell all that they made.
Consequently, organizations did not need to consult
with consumers about designing and producing their
products.
When mass production techniques created the Industrial
Revolution, the volume of output was greatly increased.
Yet the increased production of goods did not
immediately eliminate the shortages from the pre-
industrial era.
 SELLING PHILOSOPHY

The selling era has the shortest period of dominance

around 1930 and stayed in widespread use until about
1950.
The selling philosophy holds that an organization can sell
any product it produces with the use of marketing
techniques, such as advertising and personal selling. It
assumes that a well-trained and motivated sales force can
sell any product.
Organizations could create marketing departments that
would be concerned with selling the goods, and the rest of
the organization could be left to concentrate on producing
the goods.
The reason for the emergence of the selling philosophy
was the ever-rising number of goods available after the
Industrial Revolution.
Organizations became progressively more efficient in
production, which increased the volume of goods.
With the increased supply, competition also entered
production.
The selling philosophy also enabled part of the
organization to keep focusing on the product, via the
product philosophy. In addition, the selling philosophy held
that a sales or marketing department could sell whatever
the company produced.
 MARKETING PHILOSOPHY
However, more companies began to realize
that it is easier to sell a product that the
customer wants, than to sell a product the
customer does not want. When many
companies began to realize this fact, the
selling era gave way to the marketing era of
the marketing concept and philosophy.
The marketing era started to dominate around
1950, and it continues to the present.
The marketing concept recognizes that the
company's knowledge and skill in designing
products may not always be meeting the needs of
customers.
It also recognizes that even a good sales
department cannot sell every product that does not
 The marketing concept and philosophy states
that the organization should strive to satisfy its
customers' wants and needs while meeting the
organization's goals. The best way to meet the
organization's goals is also by meeting customer
needs and wants.
The marketing concept's emphasis is to
understand the customers before designing and
producing a product for them. With the
customer's wants and needs incorporated into
the design and manufacture of the product,
sales and profit goals are far more likely to be
met.
The idea of keeping close to the organization's
customers seems simple. In reality, it is very
easy to forget the customer's needs and wants.
Sometimes the management is so involved with
 For example:-
Many years agobefore there was a Subway on
every cornera college student opened a small
submarine sandwich shop near his university's
campus. The sub shop was an immediate success. By
using the marketing concept, the young entrepreneur
had recognized an unmet need in the student
population and opened a business that met that
need.
Unfortunately, the story does not end at this point.
The sub shop was so successful that it began to
outgrow its original location after about three years.
The shop moved to a larger location with more
parking spaces, also near the university. At the new
sub shop, waiters in tuxedos met the students and
seated them at tables with tablecloths. Besides the
traditional subs, the shop now served full meals and
had a bar. Within a few months the sub shop was out
of business. The owner of the shop had become so
involved with his business vision that he forgot the
customers' needs and wants. They did not want an
 How Marketing Evolves

Marketing Marketing
Barter Production Sales
Dept. Era Co. Era
Era Era Era

Supply Supply
One- Demand Supply
Exceeds Exceeds
on-One Exceeds Equals
Demand Demand
Trading Supply Demand

Marketing Integrated
a Sub- Role for
sidiary Marketing
Function
 PROMOTION MIX

Propagating the distinctiveness of the

product and the nature and extent of
value it carries by using different
methods and media of comm.

a) Personal Selling b) Advertising

c) Sales Promotion d)
Publicity/Public Relation
 What are
Marketing Communications?

Marketing communications are the

means by which firms attempt to inform,
persuade, and remind consumers, directly
or indirectly, about the products and
brands they sell.
 Modes of Marketing
Communications
Advertising Direct marketing
Sales promotion Interactive marketing
Events and Word-of-mouth
experiences marketing
Public relations and Personal selling
publicity
 Communication Platforms

Advertising Sales Promotion

Print and broadcast ads Contests, games,
Packaging inserts sweepstakes
Motion pictures Premiums
Brochures and booklets Sampling
Posters Trade shows, exhibits
Billboards Coupons
POP displays Rebates
Logos Entertainment
Videotapes Continuity programs
 Integrated Marketing
Communications (IMC)

As defined by the American Association of

Advertising Agencies, Integrated
Marketing Communications (IMC)
recognizes the value of a comprehensive
plan that evaluates the strategic roles of a
variety of communication disciplines
advertising, public relations, personal
selling, and sales promotionand
combines them to provide clarity,
consistency, and maximum
communication impact.
 INTEGRATED MARKETING
COMMUNICATION MIX
Sum of quality product, attractive and
convenient packages, pictures and
symbols, the price and terms of sale,
attractive store/showroom, and efficient
sales-person.
The endeavor of presenting a set of
messages to a target market using all the
4Ps of marketing and multiple methods,
sources, cues and media, with the
objective of effectively conveying the
value proposition of a product offer,
simultaneously providing for feedback
from the market for the improvement and
 INTEGRATED MARKETING
COMMUNICATION MIX
A firm is not only a sender of market
messages but also a receiver of
market responses.

PRODUCT PRICE PLACE PROMOTION

Personal Selling
Advertising
Sales Promotion
Publicity/Public Relation
Direct Marketing
 Marketing Communication
Through PRODUCT Cues
The product is a carrier of certain messages. It comm.
With consumer through its personality.
Elements of Product Personality
Physical features- the material, the size, shape, design,
color, the finish etc. convey something to the buyer.
Comm. Can be:-
Visual, Tactile (touch), aroma, performance.
The package- First appeal to consumer-color, design,
picture, symbols, labels colors and illustration.
COLOR Color has great communicative
significance. There are
exciting colors, dull, soothing and inviting
color.there are color evoke apetite color that invite
sleep. There are colors associated with prosperity, love
and romance. There is color of war and aggression and
color of peace, colors of festivals and colors associated
with mourning. Race, religion, climate, age, education,
The brand name and logo:
Soap, Cold Cream, Shampoo,
Ponds, LakmeLOreal Halo, Sunsilk, Clinic-All
Clear, Dove, Lux,
DTH, LCD, Music System, Mobile
Reliance, Samsung, Philips, Nokia,
Fast-Food, Soap (Rural) Toothpaste,
Motorcycle
Maggi,McDonald,Lifebouy, Colgate, Close,
Hero Honda
The company name communicate.
A TATA Product, BPL, RAYMONDS,
 Marketing Communication Through
PRICES Cues
Price-quality equation: Consumers see price
as an index of quality.
Price-status equation: Symbol of prestige or
status.
 Marketing Communication Through
PLACE Cues
The Store Image
The Store Level Merchandise

Marketing Communication Through

PROMOTION Cues
Personal Selling
Advertising
Sales Promotion
Publicity/Public Relation
Direct Marketing
Doves Campaign for Real
Beauty
Elements in the Communications
Process
Field of Experience

Senders Receivers
field field
The Communications Process

Selective attention

Selective distortion

Selective retention
 The Marketing Communications
Mix

Advertising
Advertising Any
AnyPaid
PaidForm
FormofofNonpersonal
Nonpersonal
Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.

Sales Promotion Short-term Incentives to

Encourage Trial or Purchase.

Protect and/or Promote

Public Relations Companys Image/products.

Selling
Personal Selling
Personal
Personal Presentations.

Direct Communications With

Direct Marketing Individuals to Obtain an Immediate
Response.
 ADVERTISING

paid, nonpersonal communication

regarding goods, services,
organizations, people, places, and ideas
that is transmitted through various
media by business firms, government
and other nonprofit organizations, and
individuals who are identified in the
advertising message as the sponsor.
 PERSONAL SELLING

involves oral
communication with one or
more prospective buyers by
paid representatives for the
purpose of making sales.
 SALES PROMOTION

Involvespaid.marketing
communication activities
(other than advertising, publicity,
or personal selling) that are
intended to stimulate consumer
purchases and dealer effectiveness
 PUBLIC RELATIONS / PUBLICITY

Publicity is nonpersonal public relations

that is transmitted Public relations
includes any communication to foster a
favorable image for goods, services,
organizations, people, places, and ideas. It
may be personal or nonpersonal, paid or
nonpaid, and sponsor controlled or not
controlled through media but not paid for
by an identified sponsor.
AIDS prevention campaign in West Bengal was
a unique integrated mass media campaign
 What is Advertising?
Advertising is any paid form of
nonpersonal presentation and promotion
of ideas, goods, or services by an
identified sponsor.
Procter & Gambles
Advertising History
The Five Ms of Advertising
 Steps in Developing Effective
Communications (Process)

Identify target audience

Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
 Determination of Target Audience
What to say
How to say
When to say
Where to say
To Whom

The process must start with a clear target audience:

potential buyers current users, deciders, or
influencers, individuals, groups, particular publics or
the general public
 Patterns of
Target Market Selection
 Patterns of
Target Market Selection
 Patterns of
Target Market Selection
Pepsi used Megamarketing in
India
 Advertising Objectives

Informative Persuasive
advertising advertising

Reminder Reinforcement
advertising advertising
 OBJECTIVE SETTING
The objectives of promotion may be categorized as
stimulating demand and enhancing company
image.
The sequential short-term, intermediate,
and long-term promotion goals for a firm
to pursue.
Primary demand is an objective when seeking
consumer interest for a product category.
Selective demand is a later objective that seeks
consumer interest for a particular brand of a
product.
 DAGMAR
Defining Advertising Goals for Measured Advertising
Results

Russell Colley (1961) developed a model for setting

advertising objectives and measuring the results. This model
was entitled Defining Advertising Goals for Measured
Advertising Results- DAGMAR. DAGMAR model suggests
that the ultimate objective of advertising must carry a consumer
through four levels of understanding: from unawareness to
Awarenessthe consumer must first be aware of a brand or
company Comprehensionhe or she must have a
comprehension of what the product is and its benefits;
Convictionhe or she must arrive at the mental disposition or
conviction to buys the brand; Actionfinally, he or she actually
buy that product.
Communication Process in DAGMAR
Approach
 AWARENESS
The model suggests that before the
acceptance of a product by an individual,
there is a series of mental steps which the
individual goes through. At some point of
time, the individual will be unaware of the
product or offer in the market. The initial
communication task of the advertising
activity is to increase consumer
awareness of the product or offer.
 COMPREHENSION & IMAGE

The second step of the communication

process is comprehension of the product
or offer and involves the target audience
learning something about the product or
offer. What are its specific characteristics
and appeals, including associated imagery
and feelings? In what way does it differ
from its competitors? Whom is it supposed
to benefit?
 ATTITUDE
The third step is the attitude (or conviction)
step and intervenes between comprehension
and final action.

COGNITIVE- mental image, understanding interpretation

AFFECTIVE- feelings or emotions about the object, idea
or topic.
CONATIVE- intentions, actions or behaviour
 ACTION

The action phase involves some overt

move on the part of the buyer such as
trying a brand for the first time, visiting a
showroom, or requesting information.
 Think?
You are a dealer or distributor and want to sell
products of a reputed company. You don't have
to worry about the image and perception of the
brand. You are just worried that customers might
not want to buy from you. And, instead, buy from
a competiting shop next to yours dealing with the
same kinds of products. In such a case-
what should be done?
What should be your advertising objective?
Should you have a advertising strategy?
What would be the ingredients of such an
advertising plan?
What should be the budget?
 The whole communication process is a bit
more complex. And under different
circumstances, it may differ slightly, but the
basic concept revolves around what is
mentioned above. The DAGMAR approach
emphasizes the communication task of
advertising.
The second important concept of the approach
is that the advertising goal should be
specific. It should be a written, measurable
task involving a starting point, a defined
audience, and a fixed time period.
 Advertising and Consumer Behavior

The primary goal of an IMC program is to

develop effective methods of informing,
persuading reminding and reinforcing
consumer/customer to purchase products.
The best way reach the goal is to clearly
understand how a buyer makes the
decision to purchase from a particular
vendor/retailer.
 Consumer Buying Process:

The decision making processes undertaken by consumers in regard to

a potential market transaction before, during, and after the purchase of
a product or service.

Evaluation Post-
STIMULUS Problem Information
Of Purchase Purchase
Recognition Search
Alternatives Behaviour

Demographics Social and

Factors Psychological
factors
 STIMULUS
A cue (social, commercial, or non-commercial)
Social cue-friends, family, co-workers etc. Interpersonal
source
Commercial cue-Ads, personal selling and sales promotion.
Non-commercial cue-consumer reports, the Govt. Bulletin.

A drive (Physical) meant to motivate a person

A physical drive occurs when a persons physical
senses are affected. (Thirst, Hunger & fear)
A person may be exposed to any or all these stimuli
If sufficiently stimulated, person will proceed to the
next stage in the decision process. If not, the person
will ignore the cue and delay or terminate the
decision process for the given goods, service,
organization, person, place, or idea.
 Problem Recognition

Consumer recognizes that the goods, service

organization, person, place or idea under
consideration may solve a problem of shortage or
unfulfilled desire.

Recognition of Shortage- Repurchase is

needed.

Recognition of Unfulfilled Desire- Consumer

becomes aware of a goods, service, organization,
person, place, or idea that has not been bought
before.
 Information Search
where the customers go through previous memories and
experiences looking for acceptable ways to meet a need by buying
a product. An affective IMC program targets potential buyers as
they are involved in these process. The objective of
IMC/Advertising is to find out ways to influence consumer
purchasing decisions.

NEED

WANT

INFORMATION SEARCH
Starts with

Internal Search
(Mental recalling of product that might satisfy/meet the need)
How it was met in the past
 Internal Search

Purchased in the Not Satisfied/First

past and time Purchasing
satisfied

Same Purchase Decision

i) Consumer conducts a more complete internal search

ii) Not every possible brand is considered.
iii) Product tried, not met the need, left out.
iV) Little knowledge about product, left out.
v) no. of brands are reduced to a group that is
mentally manageable
 MARKETERS JOB
Make sure brand becomes part of the
awareness set at least.
Convincing to bring them into
consideration set by different mode of
advertisement.
Obtain high level of brand equity-high
quality, reasonable price through attractive
and powerful advertising message.
 Search Dynamics
Market Partitioning-Identifying the hierarchy

*Brand Dominant Hierarchy-General Motors Cars Pontiac

*Nation Dominant Hierarchy-Japanese Cars Toyota Corolla

SUCCESSIVE SETS INVOLVE IN CONSUMER

DECISION MAKING

TOTAL AWARENESS CONSIDERATIO CHOICE DECISION

SET SET N SET SET
 External Search
Consumer still feel uncertain about the right
brand to purchase.

SOURCE: Friends, relatives, experts, books

magazines newspaper advertisement publicity
in-store display, sales people internet radio/TV

How much time consumer spends on?

1. Ability to search 2. Motivation
3. Cost/benefit
 MARKETERS JOB
The consumers goal in making the effort to
perform an external search is to acquire
information leading to a better, more informed
decision.
The goal of marketers is to provide information
that allows consumers to make the right choice.
When a consumer has not yet made up his mind
it is an ideal time for marketers to influence the
decision-making process.
The key is to provide the right information at the
right time.
 Consumer Attitudes

Mental position taken towards atopic,

person, event that influence holders
feelings, perceptions, learning process
and subsequent behaviors.
Attitude can drive purchase decision.
Positive attitude improve the propensity to
purchase the product.. If consumers like
advt. the probability to purchase the
product being featured increased.
 Three Components
Affective- the feelings or emotions about
the object
Cognitive- mental images, understanding,
and interpretation of the object
Conative - intention to, action or behavior.
 Sequence of Events
A. Cognitive Affective Conative

B. Affective Conative Cognitive

C . Conative Cognitive Affective

Cognitive Affective Conative

Understanding feeling, emotion intention

How to develop? the product name, Some may

colors size feel
favorably
about topic
but not be
moved to
change their
purchasing
behavior.
Cognitive Affective Conative
Affective Conative Cognitive
 Evaluation Of Alternatives

The Evoked Set Method

The Multiattribute Approach
Affect Referral
New Aspects in Evaluation
Age Complexity
Gender Complexity
Individualism
Active, Busy Lifestyles
Cocooning
Pleasure Pursuits
Health Emphasis
 EVM MODEL
Computer Attributes
Memory Graphics
Capacity=40% capability=30% Size & Weight=20% Price=10%

Dell 10 8 6 4
HCL 8 9 8 3
HP 6 8 10 5
IBM 4 3 7 8
 Post-Purchase use and Disposal
PRODUCT

KEEP IT GET RID OF IT PERMAMNENTLY GET RID OF IT TEMPORARILY

USE IT TO USE IT TO
SERVE SERVE
STORE IT LEND IT RENT IT
ORIGINAL NEW
PURPOSE PURPOSE

GIVE IT AWAY TRADE IT SELL IT THROW IT AWAY

TO BE
TO BE USED
RESOLD DIRECT TO THROUGH TO
CONSUMER MIDDLEMEN INTERMEDIRIES
 Issues to consider in setting
advertising budget
Product Life Cycle
Market share
Competitive clutter
Product Substitutability
 Advertising Plan:
Budgeting
2. 3.
The firm establishes a
budget after
Assigning Establishing
Responsibility Budget considering various
1. requirements such as
Setting types of ads, medium,
Objectives frequency, and
Budget types campaign goals.
All-you-can-afford
Incremental
Competitive parity
Percentage-of-sales
Objective-and-task
 Setting Advertising Budgets

Affordable
Method Percentage-of-Sales Method
Setting Promotion Setting Promotion
Budget at the Level the Budget at a Certain % of
Company Thinks They Current or Forecasted Sales
Can Afford.

Objective-and-Task
Competitive-Parity
Method
Method
Setting Promotion
Setting Promotion
Budget by Defining
Budget to Match
Objectives, Tasks & Costs.
Competitors Outlay
Elements of the Advertising Planning Process
Comparative Advertising
 The Advertising Department
Under a Centralized System

President

Production Finance Marketing R&D Human

Resources

Marketing Advertising Product

Sales
Research Planning
 Packaging Strategy
Packaging is the least expensive form
of advertising

Every package is a 5 second

commercial

The package is the product

Determining Advertising
Budgets;
Determining Advertising
Budgets;
 Determining Advertising Budgets;
Advertising Planning and Strategy
Creative Strategy Development
 Determining Advertising Budgets;
Advertising Planning and Strategy
Creative Strategy Development