Marketing Channels and Promotion Strategies
Marketing Channels and Promotion Strategies
MODULE 4
Distribution and Promotion: Roles and purpose of Marketing Channels, Factors Affecting
Channel Choice, Channel Design, Channel Management Decision, Channel Conflict,
Designing a physical Distribution System. Promotions- Marketing communications-
Integrated Marketing Communications (IMC)-communication objectives, steps in developing
effective communication. Advertising: Advertising Objectives, Advertising Budget,
Advertising Copy, AIDA model, Traditional Vs Modern Media- Online and Mobile
Advertising, social media for Advertising. Push-pull strategies of promotion.
A marketing channel is the people, organizations, and activities necessary to transfer the
ownership of goods from the point of production to the point of consumption. It is the way
products get to the end-user, the consumer; and is also known as a distribution channel. A
marketing channel is a useful tool for management and is crucial to creating an effective and
well-planned marketing strategy
Creating a customer is a major task of marketing but delivering the goods to the customer so
created is the most critical task. Physical distribution is a marketing activity that concerns
the handling and the movement of goods. It is a major component of marketing mix and cost
area of business.
It involves the coordination of activities to place the right quantity of right goods at the
desired Place and time. Like any other marketing mix component, physical distribution has
two broad objectives to attain, namely, consumer satisfaction and profit maximization.
Physical distribution is not only a cost but a powerful tool of competitive marketing.
consumers composed of intermediaries through their functions and attainment of the mutual
objectives.
In the words of Phillip Kotler, “Physical distribution involves planning, implementing and
controlling the physical flow of materials, and final goods from the point of origin of use to
meet customer needs at a profit.”
LEVLES OF CHANNELS
This indicates the number of intermediaries between the manufactures and consumers. Mainly
there are four channel levels. They are
[Link] level channel: - Here the goods move directly from producer to consumer. That is, no
intermediary is involved. This channel is preferred by manufactures of industrial and consumer
durable goods
[Link] level channel: In this case there will be one sales intermediary ie, retailer. This is the
most common channel in case of consumer durable such as textiles, shoes, ready garments etc.
[Link] level channel: This channel option has two intermediaries, namely wholesaler and
retailer. The companies producing consumer non durable items use this level.
[Link] level channel: This contains three intermediaries. Here goods move from manufacture
to agent to wholesalers to retailers to consumers. It is the longest indirect channel option that a
company has.
1. Direct distribution: In this channel, the manufacturer sells the products directly to the end
consumer. This can be done through a company-owned website, a retail store, or even
doorto-door sales.
2. Retail distribution: This channel involves selling products through a network of retail stores.
Retailers purchase products from the manufacturer or wholesaler and sell them to the end
consumer. Examples include department stores, supermarkets, and specialty stores.
3. Wholesale distribution: In this channel, the manufacturer sells the products to wholesalers,
who then sell the products to retailers. This is a common channel for products that are sold
in bulk, such as food and beverages.
4. Online distribution: This channel involves selling products online through a company-
owned website or through third-party e-commerce platforms like Amazon or eBay.
5. Direct mail distribution: This channel involves sending catalogs or other promotional
materials directly to consumers through the mail. Consumers can then place orders through
the mail, phone, or online.
7. Direct response distribution: In this channel, the manufacturer or distributor sells products
through infomercials, television ads, or other forms of direct marketing. Consumers can
place orders by phone or online.
1. Price of the Product: The products of a lower price have a long chain of distributors. As
against it, the products having higher price have a smaller chain. Very often, the
producer himself has to sell the products to the consumers directly.
2. Perishability: The products which are of a perishable nature need lesser number of the
intermediaries or agents for their sale. Under this very rule, most of the eatables (food
items), and the bakery items are distributed only by the retail sellers.
3. Size and Weight: The size and weight of the products too affect the selection of the
middlemen. Generally, heavy industrial goods are distributed by the producers
themselves to the industrial consumers.
4. Technical Nature: Some products are of the nature that prior to their selling, the
consumer is required to be given proper instructions with regard to its consumption. In
such a case less of the middlemen arc) required to be used.
5. Goods Made to Order: The products that are manufactured as per the orders of the
customers could be sold directly and the standardized items could be sold off only by the
middlemen.
The following are the main elements concerned with the consumer or the market:
1. Number of Customers: If the number of customers is large, definitely the services of the
middlemen will have to be sought for. As against it, the products whose customers are
less in number are distributed by the manufacturer himself.
2. Expansion of the Consumers: The span over which are the customers of any commodity
spread over, also affects the selection of the channel of distribution. When the
consumers are spread through a small or limited sphere, the product is distributed by the
producer himself or his agent. As against it, the goods whose distributors are spread
throughout the whole country, for such distributors, services of wholesaler and the
retailer are sought.
3. Size of the Order: When bulk supply orders are received from the consumers, the
producer himself takes up the responsibility for the supply of these goods. If the orders
are received piece- meal or in smaller quantities, for it the services of the wholesaler
could be sought. In this way, the size of the order also influences the selection of the
channel of the distribution.
4. Objective of Purchase: If the product is being purchased for the industrial use; its direct
sale is proper or justified. As against it, if the products are being purchased for the
general consumption, the products reach the consumers after passing innumerable
hands.
5. Need of the Credit Facilities: If, for the sale of any product, it becomes necessary to
grant credit to any customer, it shall be helpful for the producer that for its distribution,
the services of the wholesaler and retailer businessmen be sought. In this way, the need
of the credit facilities too influences the selection of the channel of distribution.
The following are the main factors concerned with the middlemen:
3. Attitude of Agents towards the Producers' Policies: The producers generally prefer to
select such middlemen who go by their policies. Very often when the distribution and
supply policies of the producers being disliked by the middlemen, the selection of
middlemen becomes quite limited.
4. Cost of Channel of Distribution: While selecting the channel of distribution, the cost of
distribution and the services provided by the middlemen or agents too must be kept into
consideration. The producers generally select the most economical channel.
The following factors, concerning the producer, affect the selection of the channel of
distribution:
1. Level of Production: The manufacturers who are financially sound and are of a larger
category, are able to appoint the sales representatives in a larger number and thug could
distribute the commodities (products) in larger quantities. As against it, for the smaller
manufacturers, it becomes necessary to procure the services of the wholesellers and the
retail traders.
2. Financial Resources of the Company: From the financial point of view, the stronger
company needs less middlemen.
E. Other Factors:
3. Freedom of Altering: While selecting the agents, this fact too must be kept into mind
that in case of need, there must be the liberty of changing or replacing the agents
(middlemen).
CHANNEL DESIGN
Channel design: Those decisions involving the development of new marketing channels where
none had existed before, or the modification of existing channels.
Channel design is presented as a decision faced by the marketer, and it includes either setting up
channels from scratch or modifying existing channels. This is sometimes referred to as
reengineering the channel and in practice is more common than setting up channels from
scratch.
The term design implies that the marketer is consciously and actively allocating the distribution
tasks to develop an efficient channel, and the term selection means the actual selection of
channel members.
1. Defining the customer needs - In designing the market channel, the marketer must
understand the service output levels its target customer want. It is essential to
capture customer requirements while designing marketing channel.
It includes the following:
• Product information
• Product customization
• Product quality assurance
• Lot size
• Product variety
• Spatial convenience / availability
• Waiting and delivery time
• After sales service
• Logistics
When a marketer designs a marketing channel, he must understand the service output
levels desired by the target customers. Different customers have different levels of
2. Defining the channel objective - The channel objective vary with product
characteristics:
• Perishable products require more direct marketing.
• Bulky products, such as building materials, require channels that minimize the
shipping distance and amount of handling
• Non- standard products, such as custom-built machinery and specialized
business forms, are sold directly by company sales representatives.
• High- unit- value products such as generators and turbines are often sold through
a company sales force rather than intermediaries.
Channel objectives are a part of and result from the company’s marketing objectives that need
to be stated in terms of targeted service output levels. Profit considerations and asset utilization
must be reflected in channel objectives and the resultant design. It should be the endeavor of the
channel members to minimize the total channel costs and still provide with the desired level of
service outputs. Channel objectives keep varying depending on the characteristics of the
products. For example, while a customized non-standard product requires company sales force
to sell directly, products like HVAC (Heating, Ventilation and Air-conditioning) are either sold
by the company or its franchised dealers.
3. Channel Alternative - A company looks at alternatives for its distribution channel
after it has decided on the targeted customers and the customer service deliverables
it desires from its channel partners to reach these customers. At the time of deciding
the company will scan for:
Type of intermediaries
4. Evaluation of Major Alternative - The major problem before the producer is to decide
which
of the alternatives would be best satisfy the long term objectives of the firm taking in view
the factors which would affect the channel decision. For this purpose, each alternative must
be rated against economic; control and adequate criteria
There are several channel alternatives available to the industrial markets. They have to
determine the best among the alternatives by evaluating them based on the following criteria:
1. Economic Performance
2. Degree of control
3. Degree of adaptability of channel members
5. Ideal Channel Structure - With the completion of forgoing steps, the number of
alternatives would have narrowed down considerably. The firm must evaluate design
and choose the best among them.
The term Channel Management is widely used in sales marketing parlance. It is defined as a
process where the company develops various marketing techniques as well as sales strategies
to reach the widest possible customer base. The channels are nothing but ways or outlets to
market and sell products. The ultimate aim of any organization is to develop a better
relationship between the customer and the product.
Channel management helps in developing a program for selling and servicing customers
within a specific channel. The aim is to streamline communication between a business and
the customer. To do this, you need to segment your channels according to the characteristics
of your customers: their needs, buying patterns, success factors, etc. and then customize a
program that includes goals, policies, products, sales, and marketing program (1). The goal of
channel management is to establish direct communication with customers in each channel. If
the company is able to effectively achieve this goal, the management will have a better idea
which marketing channel best suits that particular customer base. The techniques used in
each channel could be different, but the overall strategy must always brand the business
consistently throughout the communication
A business must determine what it wants out of each channel and also clearly define the
framework for each of those channels to produce desired results. Identifying the segment of
the population linked to each channel also helps to determine the best products to pitch to
those channels.
Steps in channel management decision
1. Selecting channel members
CHANNEL CONFLICT
Meaning - Channel conflict occurs when manufacturers (brands) dis-intermediate their channel
partners, such as distributors, retailers, dealers, and sales representatives, by selling their
products directly to consumers through general marketing methods and/or over the Internet.
Refers to a Situation when a producer or supplier bypasses the normal channel of distribution
and sells directly to the end user. Selling over the internet while maintaining a physical
distribution network is an example of channel conflict. See also disintermediation.
The Channel Conflict arises when the channel partners such as manufacturer, wholesaler,
distributor, retailer, etc. compete against each other for the common sale with the same brand.
1. Vertical Channel Conflict: This type of conflict arises between the different levels in the
same channel.
E.g. The conflict between the manufacturer and the wholesaler regarding price, quantity,
marketing activities, etc.
2. Horizontal Channel Conflict: This type of conflict arises between the same level in the
same channel.
E.g. The conflict between two retailers of the same manufacturer faces disparity in terms of
sales target, area coverage, promotional schemes, etc.
3. Multichannel Conflict: This type of conflict arises between the different market channels
participating in the common sale for the same brand.
E.g. If a manufacturer uses two market channels, first is the official website through which the
products and services are sold. The second channel is the traditional channel i.e. through
wholesaler and retailer. If the product is available at a much lower price on a website than is
available with the retailer, the multichannel conflict arises.
Goal incompatibility: Different partners in the channel of distribution have different goals
that may or may not coincide with each other and thus result in conflict.
E.g. The manufacturer wants to achieve the larger market share by adopting the market
penetration strategy i.e. offering a product at low price and making the profits in the long run,
whereas the dealer wants to sell the product at a high cost i.e. market skimming strategy and
earn huge profits in the short run.
Ambiguous Roles: The channel partners may not have a clear picture of their role i.e.
what they are supposed to do, which market to cater, what pricing strategy is to be adopted, etc.
E.g. The manufacturer may sell its products through its direct sales force in the same area where
the authorized dealer is supposed to sell; this may result in the conflict.
Different Perceptions: The channel partners may have different perceptions about the
market conditions that hamper the business as a whole thereby leading to the conflict.
E.g. The manufacturer is optimistic about the change in the price of the product whereas the
dealer feels the negative impact of price change on the customers.
Lack of Communication: This is one of the major reasons that lead to the conflict among
the channel partners. If any partner is not communicated about any changes on time will
hamper the distribution process and will result in disparity.
E.g. If retailer urgently requires the stock and the wholesaler didn’t inform him about the
availability of time may lead to the conflict between the two.
Meaning - Physical distribution is the group of activities associated with the supply of finished
product from the production line to the consumers. The physical distribution considers many
sales distribution channels, such as wholesale and retail, and includes critical decision areas like
customer service, inventory, materials, packaging, order processing, and transportation and
logistics.
The planning, implementation, and controlling of the physical flow of material or product from
one point to another to meet the customer requirements in the market is known as physical
distribution.
Physical distribution is responsible for delivering to the customer what is wanted on time and at
minimum cost. The objective of distribution management is to design and operate a distribution
a system that attains the required level of customer service and does so at least cost. To reach
this
Objective, all activities involved in the movement and storage of goods must be organized into
an integrated system (physically).
To design a physical distribution system for a product, following steps need to be followed − •
Step 1 − Defining distribution objective and services required for product distribution
• Step 2 − Articulating customer requirement
• Step 3 − Comparing the strategy with market competitors
• Step 4 − Managing the cost of distribution to decrease cost without compromising on the
quality of service
• Step 5 − Building physical distribution system that is flexible for implementation of
changes, if required
Physical distribution can be controlled and monitored by its different components. Each
component should be evaluated and managed in order to accomplish physical distribution
without any problems.
The various elements of a physical distribution system are:
1. Customer service:
Customer service is a predefined standard of customer satisfaction, which a retailer plans to
provide to its customers. Without defining and setting ‘standards of customer service’, retailers
cannot achieve competitive advantage over their competitors. A customer service standard may
be that 95% of the orders are delivered within 5 hours of receipt and 100% are delivered within
24 hours. Retailers maintaining higher service standards bear costs of maintaining higher
inventory level or expenditure incurred on fast mode of transportation.
The effective distribution systems must keep proper records of costs of meeting various
customer service standards (90%, 95% or 100% of orders delivered within 24 hours), and
additional customer satisfaction that results from raising standards.
These days, specialized software packages are being used by modern retailers to track the
merchandise during its transportation to ensure fastest, cost-effective deliveries on time.
Therefore, action should be taken quickly as an order has been placed and the customer must
have fast confirmation of the order’s receipt and the exact delivery time. In today’s high tech
world, computers are used to check the customer’s credit rating, stock levels, and delivery
promptness so that management can obtain an accurate picture of distribution status. Accuracy
plays a vital role in successful order processing, as are procedures that are designed to lessen
(shorten) the order processing cycle.
3. Inventory Control:
Inventory control is a major component of a retail organization’s physical distribution system. It
includes money invested in inventory, wear and tear and possible obsolescence of the goods
with the passage of time. In a retail organization, where finance executives seek inventory
minimization, marketing executives advocate large inventories to prevent stock outs. Therefore,
retailers should to try minimize optimum level of inventory to meet the customers’ demand
close to customer service standards of 100%.
4. Warehousing:
It involves all the activities required in storage of goods between the time these are procured
and the time these are transported to the customer upon receipt of order. This function basically
involves receiving the merchandise, breaking bulk, storing and loading for delivery to
customers as per their details. Storage warehouses usually keep goods for long periods while
distribution centers operate as central/middle locations for quick movements of goods to retail
stores.
Further, retail organizations use regional distribution centers where wholesalers dump the
products in high volume. At regional distribution centers, these consignments are broken down
to small loads that are then quickly transported to retail outlets as per the outlet’s requirements.
5. Transportation Mode:
Transportation is indispensable for physical distribution of goods and services. Transportation
mode enables channel members like producers, wholesalers and retailers to make goods and
services available at the customers’ place of purchase or at his doorstep. From cost point of
view, transportation accounts nearly 25-40% of total distribution costs. Quick and timely
delivery, security of goods during transit and proper handling results in customer satisfaction.
6. Materials Handling:
Materials handling implies the movement of goods inside the retail organization, warehouses
and retail stores/outlets. In case of chain stores, the raw materials, finished goods etc move from
a common warehouse to various store locations. Similarly, in case of multistory or even
singlestory storage houses, movements of goods take place.
Some items or materials may be light weight but few may be heavy, which may require proper
handling and utmost care. In modern storage facilities, material handling is through equipments
meant for moving/transferring goods. These handling equipments also vary with method of
loading and modes of transport used like railways, water ways, airways etc.
Type of handling equipment used will depend upon the following reasons:
PROMOTIONS:
Promotion is also one of the elements in the promotional mix or promotional plan. These are
personal selling, advertising, sales promotion, direct marketing, publicity, word of mouth
and may also include event marketing, exhibitions and trade shows.
A promotional plan specifies how much attention to pay to each of the elements in the
promotional mix, and what proportion of the budget should be allocated to each element.
MARKETING COMMUNICATIONS:
DIRECT MARKETING
Direct marketing is a type of marketing that involves communicating directly with customers
and potential customers in order to promote products and services. Direct marketing can be
conducted in various ways, including email, text messages, catalogs, phone calls, and direct
mail.
visits. Examples of direct marketing include mail order catalogs, flyers, postcards, coupons, and
door-to-door sales.
COMMUNICATION OBJECTIVE
To develop brand awareness
To increase consumer or business demand for a product category
To change or influence customer beliefs or attitudes
To enhance purchase actions
To encourage repeat purchases
To build customer traffic to physical stores, websites or other marketing channels
To enhance firm/brand image
To increase market share
To increase sales
To reinforce purchase decision
1. Identify the target audience - A major part of audience analysis is assessing the
audience’s current image of the company, its products, and its competitors. If most
respondents have unfavorable feelings towards the product, the organization needs to
overcome a negative image problem, which requires great patience because images are
persistent even long after the organization has changed. Once people havea certain
image, they perceive what is consistent with that image. It will take highly
disconfirming information to raise doubts and open their minds- but it can be done.
2. Determine the communication objectives - Here the marketer wants to decide that
whether he wants to put something into consumer’s mind, change an attitude, or get the
consumer to act. “Learn-feel-do” sequence is appropriate when the audience has high
involvements with a product category that is perceived to have differentiation, as in
purchasing an automobile. An alternative sequence, “dofeel-learn,” is relevant when the
audience has high involvement but perceive little or no differentiation within the
product category, as in purchasing aluminum siding. A third sequence, “learn-do-feel,”
is relevant when the audience has low involvement and perceives little differentiation
within the category, as in purchasing salt.
3. Design the message - The communicator now moves next to developing an effective
message. Ideally, the message should gain attention, hold interest, arouse desire, and
elicit action. AIDA (Attention- Interest-Desire-Action) framework suggests the desirable
qualities of any communication. Formulating the message involves decisions about
message content, structure, format, and source.
6. Decide on the media mix i.e. Marketing Communication Mix - Companies must
decide how to allocate the budget over the five promotional tools. Even in the same
industry, companies differ considerably in their media and channel choices. Advertising
can reach geographically dispersed buyers efficiently. Certain forms of advertising
require a large budget, while others do not. Sales promotion tools coupons, contests,
premiums and the like offer three key benefits: communication, incentive and invitation.
The appeal of public relations and publicity is based on three qualities: high credibility,
ability to catch buyers off guard and dramatization. Direct marketing can be in the form
of direct mail, telemarketing and Internet Marketing. These share four characteristics-
nonpublic, customized, up-to-date and interactive. Qualities of personal selling include
personal confrontation, cultivation and response.
7. Measure the results - After implementing the promotional plan, the company must
measure its impact. Members of the target audience are asked whether they recognize or
recall the message, how many times they saw it, what points they recall, how they felt
about the message, and their previous and current attitude towards the product and
company. The communicator should also collect behavioral measures of audience
response, such as how many people bought the product, like it, and talked to others
about it.
8. Manage the integrated marketing communication process - Given the fragmenting
of mass markets, the proliferation of new media, and the growing sophistication of
customers, companies need to use a wider range of tools and messages through
integrated marketing communications. Integrated marketing communications (IMC) is a
concept of marketing communications planning that recognizes the added value of a
comprehensive plan evaluating the strategic roles of a variety of communications
disciplines-such as advertising, direct response, sales promotion and public relations-
and combine these disciplines to provide clarity, consistence and maximum
communications impact through the seamless integration of discrete messages. Properly
implemented, IMC improves the firm’s ability to reach the right customers with the right
messages at the right time and in the right place
1. Sender: The party or person who is sending the message to the other party or person is
the sender.
2. Encoding: The conversion of thought into the meaningful symbols is called encoding.
3. Message: The group of symbols transmitted by the sender is called a message.
4. Media: The channel of communication through which transfers the message from sender
to receiver is called media.
5. Decoding: The conversion of symbols into meaning by the receiver is called decoding.
6. Receiver: The sent message received by another person or party is called the receiver.
7. Response: The reaction shown by the receiver before the message is called response.
8. Feed Back: The portion of the response of the receiver that is sent back to the sender is
called feedback.
ADVERTISING MEANING
Advertising is a paid form of non personal communication. Advertising promotes ideas, goods
and services of identified sponsors. The main purpose of advertising is to create sales.
Advertising is a marketing tactic involving paying for space to promote a product, service, or
cause. The actual promotional messages are called advertisements, or ads for short. The goal of
advertising is to reach people most likely to be willing to pay for a company’s products or
services and entice them to buy.
ADVERTISING OBJECTIVES
1. To Inform - Advertisements are used to increase the brand awareness and brand exposure in
the target market. Informing the potential customers about the brand and its products is the
first step towards attaining business goals.
2. To Persuade - Persuading customers to perform a particular task is a prominent objective of
advertising. The tasks may involve buying or trying the products and services offered, to
from
a brand image, develop a favorable attitude towards the brand etc.
3. To Remind - Another objective of advertising is to reinforce the brand message and to
reassure the existing and potential customers about the brand vision. Advertising helps the
brand to maintain top of mind awareness and to avoid competitors stealing the customers.
This also helps in the word of mouth marketing.
4. Introduce a product - The most common reason Advertising is used is to introduce a new
product in the market. This can be done by existing brands as well as new brands. Have a
look at the latest IPhone in the market or a Samsung smartphone and you will find a lot of
advertisement for these new products. The objective of advertising here is to tell customers
–
“Here is the new product we have launched”.
5. Introduce a brand - There are many startups in the market today and many of them are
services. Services are generally marketed as a brand rather than marketing their individual
service product. Thus, Uber will market its own brand and introduce that Uber has started
servicing customers in a new market. Same goes for Oracle or Accenture – Companies
which market their brand and their presence in the market rather than marketing an
individual product.
6. Differentiation and value creation - A most important aspect of Advertising is to
differentiate the product or the service from those of the competitor. A customer can only
differentiate between services based on the value the firms provides over that of
competitors.
7. Acquiring customers or Brand switching - One of the major objectives of advertising and
the first objective of many advertising campaigns is to acquire more customers. This is also
known as making the customers switch brands. This can happen by passing on a strong
message so that the potential customer leaves the brand which he is tied up with and comes
to your brand.
8. Brand building - When a brand regularly advertises and delivers quality products and fulfills
the promises it makes, automatically the value of the brand is built. However, there are
many other aspects of brand building. One of the first ones is to advertise via ATL and BTL
campaigns etc.
9. Increase sales - Naturally, with so many steps being taken to advertise the product, it is no
doubt that one of the objectives of advertising is to increase sales. Many a times this
objective is achieved via advertising. However, if the campaign is improper or the audience
is not targeted properly, then advertising can fail in its objective.
ADVERTISING BUDGET
An advertising budget is estimate of a company's promotional expenditures over a certain
period of time. More pertinently, it is the money a company is willing to set aside to
accomplish its marketing objectives. When creating the advertising budget, a company
must weigh the tradeoffs between spending one additional advertising dollar with the
amount of revenue that dollar will bring in as revenue.
The advertising budget of a business is typically a subset of the larger sales budget and,
within that, the marketing budget.
With this method, a business needs to first establish concrete marketing objectives, often
articulated in the "selling proposal," and then develop complementary advertising
objectives articulated in the "positioning statement." After these objectives have been
established, the advertiser determines how much it will cost to meet them. Of course, fiscal
realities need to be figured into this methodology as well. Some objectives (expansion of
area market share by 15 percent within a year, for instance) may only be reachable through
advertising expenditures beyond the capacity of a small business. In such cases, small
business owners must scale down their objectives so that they reflect the financial situation
under which they are operating.
7. Affordable Method
With this method, advertisers base their budgets on what they can afford. Of course,
arriving at a conclusion about what a small business can afford in the realm of advertising
is often a difficult task, one that needs to incorporate overall objectives and goals,
competition, presence in the market, unit sales, sales trends, operating costs, and other
factors.
ADVERTISING COPY
An advertising copy is a term used to describe the main text used in the advertisement. The
text could be a dialogue, a catchy punch line or a company’s dictum. It is a print, radio or
TV advertising message that aims at developing and retaining an interest of the target
customer and prompting him to purchase the product within a couple of seconds. An
advertisement copy is the text used in the advertisement, be it print, radio, television or
other form of advertisement. The text so used can be in the form of dialogs, some catchy
phrase, a company’s motto or slogan or any word.
AIDA MODEL
AIDA is an acronym that stands for Attention, Interest, Desire and Action. The AIDA
model is widely used in marketing and advertising to describe the steps or stages that
occur from the time when a consumer first becomes aware of a product or brand through
to when the consumer trials a product or makes a purchase decision. Given that many
consumers become aware of brands via advertising or marketing communications, the
AIDA model helps to explain how an advertisement or marketing communications
message engages and involves consumers in brand choice.
In essence, the AIDA model proposes that advertising messages need to accomplish a
number of tasks in order to move the consumer through a series of sequential steps from
brand awareness through to action (purchase and consumption).
The AIDA model is one of the longest serving models used in advertising, having been
developed in the late nineteenth century. Since its first appearance in the marketing and
advertising literature, the model has been modified and expanded to account for the
advent of new advertising media and communications platforms. A number of modified
alternative models are in current use. During the past 100 years, the model has
undergone many refinements and extensions, such that today there are many variants in
circulation. Thus, the simple AIDA model is now one of a class of models, collectively
known as hierarchical models or hierarchy of effects models.
TRADITIONAL MEDIA
The non-electronic mediums which works as part of our culture and as vehicles of
transmitting tradition from one generation to another generation is called traditional media.
The different forms of traditional media are as follows: Traditional dance • drama •
painting
• sculpture • song • music • motifs and symbols • Street Play • Games
MODERN MEDIA
New media are forms of media that are native to computers, computational and relying on
computers for redistribution. Some examples of new media are telephones, computers,
virtual worlds, single media, website games, human-computer interface, computer
animation and interactive computer installations. New media are often contrasted to "old
media", such as television, radio, and print media, although scholars in communication and
media studies have criticized rigid distinctions based on oldness and novelty. New media
does not include television programs (only analog broadcast), feature films, magazines,
books, – unless they contain technologies that enable digital generative or interactive
processes The different forms of modern media are as follows: Digital Video • Digital
Sound • Graphics • Animation
ONLINE ADVERTISING
Online advertising, also called online marketing or Internet advertising or web advertising
is a form of marketing and advertising which uses the Internet to deliver promotional
marketing messages to consumers. It includes email marketing, search engine marketing
(SEM), social media marketing, many types of display advertising (including web banner
advertising) Online advertising is a marketing strategy that involves the use of the Internet
as a medium to obtain website traffic and target and deliver marketing messages to the right
customers. Online advertising is geared toward defining markets through unique and useful
applications. Since the early 1990s there has been an exponential increase in the growth of
online advertising, which has evolved into a standard for small and large organizations.
Online advertising is also known as Internet advertising or Digital Advertising.
MOBILE ADVERTISING
Mobile advertising is the communication of products or services to mobile device and
Smartphone consumers. The mobile advertising spectrum ranges from short message
service (SMS) text to interactive advertisements. Mobile advertising is type of advertising
that appears on mobile devices such as smart phones and tablets that have wireless
connections. As a subset of mobile marketing, mobile advertising can take place as text ads
via SMS, or banner advertisements that appear embedded in mobile web site, in
downloaded apps or in mobile games. Mobile technology used by companies such as
Google and Face book tailor mobile advertisements based on individual's web browsing
history, geographic location, and with data collected by shopping habits. Because mobile
devices typically have smaller screens than computers or laptops, this form of digital
advertising is usually optimized for small displays by being concise.
1. Search engine optimization (SEO): This involves optimizing a website to rank higher
in search engine results pages (SERPs) for relevant keywords. SEO involves both
onpage and off-page optimization strategies to increase organic traffic and visibility.
3. Social media marketing: This involves using social media platforms (e.g., Facebook,
Twitter, Instagram) to promote products or services and engage with customers. Social
media marketing can include both organic and paid efforts.
4. Content marketing: This involves creating and sharing valuable content (e.g., blog
posts, videos, infographics) to attract and engage a target audience. Content marketing
can be used to drive traffic, generate leads, and build brand awareness.
5. Email marketing: This involves using email to communicate with customers and
prospects. Email marketing can be used to promote products or services, nurture leads,
and build relationships with customers.
6. Mobile marketing: This involves reaching customers through mobile devices, such as
smartphones and tablets. Mobile marketing can include tactics such as mobile apps,
mobile-optimized websites, and SMS marketing.
7. Analytics and reporting: Digital marketing efforts should be tracked and measured to
assess their effectiveness. Analytics tools can provide insights into website traffic, user
behavior, and campaign performance.
These are just a few of the key components of digital marketing. The digital marketing
landscape is constantly evolving, so it's important for businesses to stay up-to-date with the
latest trends and best practices in order to effectively reach and engage their target
audience.
Promotion is an important part of any marketing strategy. You can have the best product or
service out there, but unless you promote it successfully, no one will know about it. There
are three basic types of promotional strategies – a push strategy, a pull strategy or a
combination of the two. In general, a push strategy is sales oriented, a pull strategy is
marketing-oriented and a push-pull strategy is a combination of the two.
A push promotional strategy works to create customer demand for your product or service
through promotion: for example, through discounts to retailers and trade promotions.
Appealing package design and maintaining a reputation for reliability, value or style are
also used in push strategies. One example of a push strategy is mobile phone sales, where
manufacturers offer discounts on phones to encourage buyers to chose their phone. Push
promotional strategies also focus on selling directly to customers, for example, through
point of sale displays and direct approaches to customers.
Email marketing
According to marketing expert Blair Entenmann, in an article he wrote for his company
Marketing Help, there is no single correct combination of push and pull. The amount spent on
each type of strategy will depend on factors such as budget, the type of product, the target
audience and competition.
IMPORTANT QUESTIONS:
1. Briefly explain the channel design decisions.7m
2. What is Channel conflict? Identify the causes of Channel conflict. 7m
3. Explain the factors effecting the channel choice.10m
4. What are the elements involved in designing physical distribution system? 7m
5. Explain the channels available for the distribution of consumer goods.10m
6. Explain AIDA concept of message development.7 m
7. Define Direct Marketing.3m
8. Define IMC.3m
9. What is channel conflict? Explain the types of channel conflict.7m
10. Explain the steps in effective communication.10m
11. Explain Advertising, its objectives & Different media involved in the advertising.10m
12. Discuss the methods need for preparing advertising budget.10m
13. Compare the push and pull marketing strategies with appropriate examples.7m
14. Compose the procedure of Market Channel Designing.7m
15. Accumulate & Analyze the key components of Digital Marketing.10m
16. State the different levels of channel.3m
17. Enumerate the steps involved in physical distribution system.7m
18. List out the stages in designing message.7m