WHAT IS MARKETING
1. You see a gorgeous girl in party, you go to her & say I am
reach marry me –’that’s Direct Marketing’
2. You attend a party & your friend goes to a girl & point at
you telling her. He is very rich, marry him – ‘that’s
Advertising’
3. Girl walks to you & says, you are rich, can you marry me, -
that’s Brand Recognition
4. You say I am very rich marry me & she slaps you, - ‘that
customer Feedback’
5. You say I am very rich marry me & she introduce you to
her husband ‘that’s Demand and Supply Gap’
6. Before you say I am reach, marry me & your wife arrives
– ‘that’s Restriction From Entering new Market’
MM N5 - MODULE 4 1
PROMOTIONAL POLICY - MODULE 4
SO’s for this module:
Understand the role that communication fulfils during the
constant interdependence between the enterprise and its
environment.
Explain the process that is used to communicate with the
customer
Broadly distinguish between the basic four kinds of
promotional methods that can be used to communicate with
the target market.
Form an understanding of how the promotional mix is
managed in the enterprise.
Explain the role of advertising management and the basic
concepts of advertising management.
Identify the steps in an advertising campaign and to describe
them shortly. MM N5 - MODULE 4 2
1. PROMOTION: Is any form of communication that can be used to
inform, to persuade and to remind the consumer to buy the
product or service sold by a certain enterprise.
1.1 The elements of promotional mix:
I. advertising
II. personal selling
III. sales promotion
IV. publicity
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1.2 Promotional Objectives:
1) to make the consumer aware of a new product.
2) to convey information
3) to convince the consumer to purchase the product or
service
4) to convince channel members to stock certain products
5) to increase turnover
6) to retain and to promote the image of the enterprise
7) to proclaim specific, important activities
8) to expand the product image
9) to convey the price of products or services
MM N5 - MODULE 4 4
2. THE COMMUNICATION PROCESS:
Definition: Communication is the process
whereby an organization or an individual makes
contact within as well as outside the organization,
by means of verbal, non-verbal or technological
means. Communication can be divided into two
main categories: interpersonal communication
and mass communication.
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2.1 THE COMMUNICATION FLOW/MODEL
NOISE
SENDER MESSAGE RECEIVERS
#EXPLANATION OF COMMUNICATION FLOW - SLIDE NO 6 - 8
MM N5 - MODULE 4 6
2.1.1 The Sender/Source
a) Is the communicator e.g. manufacturer or
intermediaries who send the message.
a) The source must have credibility. Credibility is a
function of trustworthiness and expertise
b) The marketer must ensure that he has identified the
correct message idea, otherwise a lot of money and
time will be wasted on an ineffective theme.
MM N5 - MODULE 4
7
2.1.2 Coding/Encoding OR message formulation:
a) Formulation or encoding is the process by which the
source’s ideas and thoughts are put into a specific
message by means of words, symbols, or images. The
source must carefully select the symbols, words, images,
colours, sounds etc. that will be used to compile the
message.
b) An important principle to remember is that the message
that is seen or heard by the receiver is more important
than the message that the source is trying to convey.
2.1.3 Message
a) The message must be understood by the receivers. In
multi-language countries, such as South Africa,
choosing the correct symbols can pose a problem,
since symbols must be familiar to the audience.
MM N5 - MODULE 4 8
2.1.4 Message channel:
a. This refers to the method by which the communicator travels
from the source to the receiver.
b. The communication channels can be divided into two broad
types, namely personal and non-personal.
c. Newspaper, TV, salesperson and rental store
2.1.5 The receiver/Audience.
a. The receiver is the persons who receive the message. Usually
they are the target market at whom the message is directed.
2.1.6 Decoding process
a. The message is decoded by the receiver. Decoding is the
process by which the receiver interprets and translates the
message in order to understand it.
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2.1.7 Response/Reaction.
a. Response is the receiver’s reactions to the message. It can
vary from only storing the information in his/her memory to
action, such as purchasing the product.
2.1.8 Channel Noise
a. Competitors advertisements is the biggest external factor
that influence the success of the sender, receiver, reaction
and feedback of the message
(See diagram on page 119 &133)’
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3. Types of communication messages:
a) Communication messages can be divided into two
types - overt (explicit) and covert (implicit).
b) An overt /explicit communication involves the use of
language to establish its meaning.
c) A covert/ implicit communication involves non-
verbal communication such as body language, facial
expression, attitudes and signals.
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4. INFORMATION TRANSMISSION PROCESS:
The following factors apply during the information conveyance
process: perception, learning and convince
4.1 Perception: 4.2 Learning
Perception, the way Consumer’s learning ability
consumer interprets these influences their purchasing
sensory stimuli, becomes behavior.
reality, although it is not To be able to learn, the
necessarily according to the consumer must be
objectives reality. motivated, s/he must pay
Perception becomes fact for full attention to the message
the specific consumer. This and repetition of must
means that he will react occur.
according to what he thinks
MM N5 - MODULE 4 12
4.3 Persuasion
• Before the consumer can be persuaded by any marketing
message, s/he must first receive the message, understood
it and make it his own by giving in to it, therefore the
consumer must change his/her attitude and actions to fit
the message.
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4.4 General objectives of promotion/marketing communication
4.4.1 Inform: informative advertisement can be used to
stimulate dormant need and to develop the demand for a
new product.
Informative advertising includes:
1. Making people aware of the new product
2. Informing the general public of new product development
3. Recommending new product uses
4. Reducing consumer’s fears
5. Informing the market of new price changes
6. Introducing available services
7. Correcting false impressions
8. Describing the way in which a product works
9. The building of the image of the enterprise
MM N5 - MODULE 4 14
4.4.2 Persuade:
1. In order to convince the consumer or potential buyer of the
differentiation qualities of the firm’s products, persuasive
message are used to create selective demand.
2. This method is used in the growth phase of the product.
Persuasive advertising includes:
a. Building brand preference
b. Motivating the change to another brand
c. Changing the consumer’s perception of product changes
d. Convincing consumers to buy the product immediately
MM N5 - MODULE 4 15
4.4.3 Remind
1. Another inextricable objective of promotion is to constantly
remind the consumer of the existence of the product or service.
2. This type of advertisement is mainly applied during the mature
phase of the product life cycle.
3. The main objective is to activate positive memories.
4. It is also used to constantly engrave the brand in the mind of
the consumer.
Reminder advertising includes:
a) Reminding the customer that he/she will need the product in
the near future.
b) Reminding the customer where product is available
c) Helping to keep product “fresh” in the memory of the consumer
d) Retaining awareness of the product
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4.5 Specific objectives
1. Specific objectives are SMART (Specific,
Measurable, Attainable, Realistic and must
have a Time frame within which must be
achieved)
example:
Adidas plans to increase brand awareness of their
new Torsion Gel running shoe by 12% in person
between the age of 15 and 25, in the Cape Province,
from December until June 2010
MM N5 - MODULE 4 17
5. CAIDA concept: The main aim of any advertising is to get
the consumer to buy a product or to act in a certain way.
A classic model for reaching advertising objectives is the use of
the CAIDA concept. It requires that the target consumer must go
through the phases (cognitive, affective and cognitive) that must
then lead to certain purchase behavior.
1) Cognitive phase - the message is received and interpreted
(to think)
2) Affective phase – the information creates a positive image
of the product (to like)
3) Conative phase – the message stimulates the consumer to
action and leads to sale (to do)
MM N5 - MODULE 4 18
According to the CAIDA concept, the marketing manager must
strive to achieve the following:
Credibility: The source must have credibility. Credibility is a
function of trustworthiness and expertise (Trust)
Attention: grabs the consumer’s attention by means of bright
colours, unusual contracts, etc. (Knowledge)
Interest: Stimulate interest by means of an interesting sales
presentation of the product. (Liking)
Desire: Make the consumer aware of his/her need and stress
how he/she can benefit by buying the product. (Desire)
Action: Kick start action by means of using special offers or
strong sales actions (Purchase)
(see diagram on Page 124 &137)
MM N5 - MODULE 4 19
6. PROMOTIONAL MIX/MARKETING COMMUNICATION MIX.
1. It is therefore essential that in its communication program,
the enterprise must choose the correct promotional
methods to supplement the promotional objectives which
have been determined.
2. Marketing managers can thus choose any of the following
six to achieve its marketing objectives:
a) Advertising
b) Personal selling
c) Sales promotion
d) Publicity
e) Direct marketing
f) Packaging and public relations are also used in promoting
the product or the firm
MM N5 - MODULE 4 20
6.1 Advertising: is any paid form of non-personal
communication about a product, service, organization or
idea by an identified sponsor. It is directed at a specific
target audience, which the aim to inform, remind and
persuade. (Definition)
Reasons for the importance of advertising
It is cost-effective method for communicating with large
audiences
It enables a firm to differentiate its products, e,g Vodacom,
MTN’s campaigns
Limitations/disadvantages NB
a) It is relatively expensive
b) It is often ignored
c) Feedback is difficult
d) It is difficult to measure the effectiveness of advertising
MM N5 - MODULE 4 21
6.2 Personal selling:
1. It is a form of person-to-person (face to face)
communication in which the seller attempt to assist and
persuade the buyer to purchase the firm’s product.
2. Is the main promotional tool used in business to business
market to create general awareness amongst buyers?
6.3 Sales promotion:
1. Is an activity and/ or material that act as a direct
encouragement to buy, by providing extra value or incentives
to resellers, consumers or the sales force.
2. It is divided into two categories: consumer-orientated and
trade-orientated activities:
MM N5 - MODULE 4 22
6.3.1 consumer-orientated sales promotion activities are
aimed at the final consumer and include:
I. Coupons: R2.00 OFF
I. Samples: shampoo samples in magazines, in shops etc.
II. Events sponsorship
6.3.2 trade-orientated activities include:
I. Trade discounts and allowances.
II. training programs for resellers salespeople
III. Point of purchase displays.
6.3.3 Advantages of sales promotion:
I. Provides extra incentives to purchase
II. It appeals to the price -sensitive buyer
III. It generates extra interest in the product
MM N5 - MODULE 4 23
6.4 Publicity:
1. Is a form of non-personal communication regarding an
organization, product/ service or idea.
2. Commercial news about, for instance a new product, is made
available to mass media by means of: New releases, Articles,
New/press conferences and letters.
3. Sponsorships are also used to obtain publicity.
MM N5 - MODULE 4 24
6.5 Direct marketing
i. Organization communicates directly with a target audience
to generate a response.
ii. Direct marketing involves a variety of activities, including
database-marketing, telemarketing and direct mail.
iii. A major tool is direct-response advertising - a product is
promoted through an advertisement that encourages the
consumer to purchase immediately and directly.
iv. Usually a toll-free phone number is provided.
Note: Advertising is like a gentle rain falling over a long
period of time, sale promotion is more like a thunder storm,
heavy and over in a relatively short time.
MM N5 - MODULE 4 25
FACTORS INFLUENCING THE PROMOTIONAL MIX.
1. Promotional mix vary from product to product and
from enterprise to enterprise. The following factors
play a role when a firm develops its promotional
mix
a. Availability of funds
b. The nature of the market
c. The nature of the product
d. The product life cycle stage (PLC)
e. Pull and Push strategies
MM N5 - MODULE 4 26
ADVERTISING AND ADVERTISING MANAGEMENT
I. The consumer in the market has certain
needs and the enterprise must strive to
satisfy these needs with its products or
services.
II. To make the potential client aware of the
product advertising is used.
Advertising is mainly applied to persuade,
inform and remind the target market to take a
specific action.
MM N5 - MODULE 4 27
FACTORS TO BE CONSIDERED WHEN CHOOSING ADVERTISING
MEDIA
9.2.1 INTERNAL FACTORS NB
The financial liquidity of the company
The nature of the product
The nature of the communication decisions of the company
The nature of the distribution channels and the degree of
market coverage
The advertising objectives.
9.2.2 EXTERNAL FACTORS
The reading, viewing, listening and buying habit of the target
market.
The advertising media which is used by competitors.
MM N5 - MODULE 4 28
FACTORS TO BE CONSIDERED WHEN CHOOSING
ADVERTISING MEDIA cont..
9.2.3 MEDIA FACTORS NB
a. The accessibility and availability of the specify medium
b. Cost per thousand target audience
c. Price decisions in terms of the cost of the medium
d. The cost of the medium and the coverage (how many),
frequency (how often) and continuity (now long)
required.
e. The degree of versatility
MM N5 - MODULE 4 29
ADVERTISING CAMPAIGN
Definition:
I. Can be described as the purposeful, objectives,
appropriate and impersonal distribution of message
which is connected to a need-satisfying
product/service, personality, place, institution or idea.
II. It indicates the place where it is available and the price,
by an identifiable sponsor to a specific target audience,
with the objectives of informing, reminding and
persuading the target audience to a certain action.
MM N5 - MODULE 4 30
STEPS IN THE ADVERTISING CAMPAIGN
STEP 1: Analyze the present situation
STEP 2: Choose the target audience
STEP 3: Determine the advertising objectives
STEP 4: Compile the advertising budget
STEP 5: Select the advertising media
STEP 6: Create the advertising message
STEP 7: Pre-test the advertising campaign
STEP 8: Launch the advertising campaign
STEP 9: Co-ordination the advertising campaign
STEP 10: Revise the advertising campaign
MM N5 - MODULE 4 31
THE RESULTS OF TIMING
Wrong Action at the The Right Action at the
Wrong Time brings
Wrong Time leads to Resistance
disaster
The Wrong Action at The Right Action at the
the Right Time results in
Right time is a Mistake Success
MM N5 - MODULE 4 32
SOMEBODY IS
GOING TO GET HURT REAL
BAD!
MM N5 - MODULE 4 33