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Consumer Behaviour & marketing communication

UNIT 1
Introduction of Consumer Behaviour;
Consumer behavior is defined as the decision process and the physical activity
individuals engage in when evaluating , acquiring using disposing of goods and
services.
Consumer behaviour is the study of when, why, how, and where people do or do
not buy a product. It blends elements from psychology, sociology, social
anthropology and economics. It attempts to understand the buyer decision making
process, both individually and in groups.
It studies characteristics of individual consumers such as demographics and
behavioural variables in an attempt to understand people's wants. It also tries to
assess influences on the consumer from groups such as family, friends, reference
groups, and society in general.
Defining Consumer Behaviour;
Acc. to Kotler & Armstrong consumer behavior refers to the buyer behavior
of final consumer of final consumer of individual household who buys goods
& services for personal consumption.
Customer behaviour study is based on consumer buying behaviour, with the
customer playing the three distinct roles of user, payer and buyer. Relationship
marketing is an influential asset for customer behaviour analysis as it has a keen

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interest in the re-discovery of the true meaning of marketing through the re-
affirmation of the importance of the customer or buyer. A greater importance is
also placed on consumer retention, customer relationship management,
personalization, customisation and one-to-one marketing. Social functions can be
categorized into social choice and welfare functions.
Reasons for understanding CB:
Most products eventually end up in private households even though they
will pass through a number of steps on their way from producer to end
user. Producers and traders form vertical chains or networks, called value
chains, at the end of which is the consumer.

Understanding consumer behaviour is not only important for the producer but for
all the other actors in the chain. The value that the consumer puts on the goods or
services limits what everyone else can get from the value chain.
The following reasons are:
1. Importance to consumers
2. Importance to Marketers
3. Importance to students of human behavior
4. Application to decision making





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Under standing consumer and Market segments
Consumer :
1. Consumer behavior and marketing mgmt
by understanding consumer needs and wants. Focusing companys
objectives.
2. Market opportunity analysis.
3. Target market selection.
4. Marketing mix determination.(Product,price,place,promotion.)
5. C.B. and nonprofit social marketing.
6. C.B. and governmental Decision making.
The Black box model shows the interaction of stimuli, consumer characteristics,
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people).
It is related to the black box theory of behaviorism, where the focus is not set on
the processes inside a consumer, but the relation between the stimuli and the
response of the consumer. The marketing stimuli are planned and processed by the
companies, whereas the environmental stimulus nare given by social factors,
based on the economical, political and cultural circumstances of a society. The
buyers black box contains the buyer characteristics and the decision process,
which determines the buyers response.



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MARKET SEGMENT
According to Philip kotler When ever a market for a product or service consist
of two or more buyers ,the market is capable of of being segmented ,i.e. divided
into meaningful buyer group.The purpose of segmentation is to determine
differences among buyers which may be consequential in choosing away them or
marketing to them.
Levels of market segmentation
1. Segment marketing
2. Niche marketing
3. Local marketing
4. Individual marketing

Importance of market segmentation:
1. Adjustment of product and marketing appeals
2. Better position to spot marketing opp.
3. Allocation of marketing budget
4. Making the competition effectively
5. Effective marketing program






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ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR

The following are the factors influencing c.b.

The decision process involves
Problem recognition
Information search and evaluation
Purchasing and post purchasing behaviour



DECISION
MAKING
PROCESS
INDIVIDUAL
DETERMINANTS
EXTERNAL
FACTORS

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Individual determinants involve:
Information processing
Learning and memory
Personality and self concept
Attitude
Motivation and involvement

External environment factors
Sub cultural influences
Social class influences
Social group influences
Family influences
Personal influences
Other influence
Cultural influences








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Culture
Culture is used to describe what people within a group have in common.
It is learned and consumer behaviour is related to it in several ways.Cultural
differences in consumer behaviour present obvious hazards for the exporting
manufacturer and is therefore an important area of international marketing.
It a particular form or stage of civilization, as that of a certain nation or period .

For the purpose of studying consumer behaviour, culture can be defined as the sum
total of learned beliefs, values and customs that serve to guide and direct the
consumer behaviour of all members of that society.

Howard and Sheth have defined culture as A selective, manmade way of
responding to experience, a set of behavioral pattern. Thus, culture consists of
traditional ideas and in particular the values, which are attached to these ideas. It
includes knowledge, belief, art, morale, law, customs and all other habits acquired
by man as a member of society. An accepted concept about culture is that includes
a set of learned beliefs, values, attitudes, habits and forms of behaviour that are
shared by a society and are transmitted from generation to generation within that
society.






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Subculture:
Subculture distinguish on the basis of age and etenic dimensions receive particular
attention. The emphasis is on values customs traditions.
A subculture is an identifiable distinct, cultural group, which, while following the
dominant cultural values of the overall society also has its own belief, values and
customs that set them apart from other members of the same society.
Social class:
Refers to the process by which people in society rank one another into different
social positions.
Refers to the process by which people in society rank one another into different
social positions.
Social classes show distinct product and brand preferences in such areas as
clothing, home furnishings, leisure activity, and automobiles.

A consumers behavior is also influenced by social factors, such as the consumers
small groups, family, and social roles and status. Because these social factors can
strongly affect consumer responses, companies must take them into account when
designing their marketing strategies.





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L6 Reference group
References groups are groups that serve as direct or indirect points of comparison
or reference in the forming of a persons attitudes or behavior. Marketers try to
identify the reference groups of their target markets.
Family influences
family members can strongly influence buyer behavior. We can distinguish
between two families in the buyers life. The buyers parents make up the family of
orientation. A family can be broadly divided in to family orientation and family
pro creation .
From parents a person acquires an orientation toward religion, politics, and
economics and a sense of personal ambition, self-worth, and love.
The family of procreation-the buyers spouse and children-exert a more direct
influence on everyday buying behavior.
It has a strong influence on ones purchasing decision .Decision are made by
individual with little influence from other family members.
Personal influences:
These are the effects on individual resulting from communication with others
which has been strong interest to marketers. These serve an important function to
opinion leaders. A persons occupation affects the goods and services bought.
Marketers try to identify the occupational groups that have an above-average
interest in their products and services.



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L7 Diffusion of innovations:
Innovation means new ideas and diffusion means diffusing it in the market or
implementing it.

Adoption

Trial

Legitimation

Attitude

Comprehension

Awareness


Assignment 1
Q.1 Define the term consumer behaviour?
Q.2 Are consumer and Customer the same?

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Q.3 write down the difference between consumer and a customer?
Q.4 What are the Reasons for understanding CB?
Q.5 write down the steps of Decision making process?
Q.6 what is the need of post purchase behaviour?
Q.7 describe the term dissonance ?
Q.8 Describe and Give an example of Niche marketing?
Q.9 why is it necessary to apply CB knowledge?
Q.10 What are the reasons for applying consumer behavior knowledge?

Assignment 2
Case Ist Dove
Doves new promotional campaign tried to break away from the stereotype images of beauty
portrayed by the media and the advertisements .The campaign titled campaign for real beauty
caught the attention of the public .The caselet deals with the challenges of the company had to
face while implementing the promotional campaign.
Questions for discussion:
1.Assess the challenges the campaign for real beauty campaign faced and will face in the
future.
2.In which ways Campaign for real beauty unique as compared to promotional campaigns of
beauty companies.


UNIT 2
L9 Individual determinants of CB


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Decision
Making
Process


Industrial determinants:
Attitude
Motivation and Involvement
Learning and Memory
Personality and self concept





L10+L11
Motivation
Motivation is a drive which propels a person towards achieving his goals ,it thus
deals with how behavior gets started ,energized , sustained ,directed and stopped.

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Motivation is the basis for all consumer activity including all association in which
we look towards the purchase of a product , use them ,repair or dispose off.
Are internal forces that energizes behavior and provide guidance to direct the
activated behavior. Involvement describes the personal relevance or importance
that the consumer perceives.High involvement lead to a motivated state.




Motivational Theories:
unfulfilled needs
and wants
Tension
Drive Action
Tension
reduction

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Maslows-Hierarchy of Needs Theory: This theory was proposed by Abraham
Maslow and is based on the assumption that people are motivated by a series of
five universal needs. These needs are ranked, according to the order in which they
influence human behavior, in hierarchical fashion
Physiological needs are deemed to be the lowest- level needs. These needs include
the needs such as food & water .
So long as physiological needs are unsatisfied, they exist as a driving or motivating
force in a person's life. A hungry person has a felt need. This felt need sets up both
psychological and physical tensions that manifest themselves in overt behaviors
directed at reducing those tensions (getting something to eat). Once the hunger is
sated, the tension is reduced, and the need for food ceases to motivate. At this point
(assuming that other physiological requirements are also satisfied) the next higher
order need becomes the motivating need.
Thus, safety needs -- the needs for shelter and security -- become the motivators of
human behavior.
Safety needs include a desire for security, stability, dependency, protection,
freedom from fear and anxiety, and a need for structure, order, and law.. In the
workplace this needs translates into a need for at least a minimal degree of
employment security; the knowledge that we cannot be fired on a whim and that
appropriate levels of effort and productivity will ensure continued employment.
Social needs include the need for belongingness and love. Generally, as gregarious
creatures, human have a need to belong. In the workplace, this need may be
satisfied by an ability to interact with one's coworkers and perhaps to be able to
work collaboratively with these colleagues.

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After social needs have been satisfied, ego and esteem needs become the
motivating needs.
Esteem needs include the desire for self-respect, self-esteem, and the esteem of
others. When focused externally, these needs also include the desire for reputation,
prestige, status, fame, glory, dominance, recognition, attention, importance, and
appreciation.
The highest need in Maslow's hierarchy is that of self-actualization; the need for
self-realization, continuous self-development, and the process of becoming all that
a person is capable of becoming.
Alderfer's Hierarchy of Motivational Needs : Clayton Alderfer reworked
Maslow's Need Hierarchy to align it more closely with empirical research.
Alderfer's theory is called the ERG theory -- Existence, Relatedness, and Growth.
Existence refers to our concern with basic material existence requirements; what
Maslow called physiological and safety needs.
Relatedness refers to the desire we have for maintaining interpersonal
relationships; similar to Maslow's social/love need, and the external component of
his esteem need.
Growth refers to an intrinsic desire for personal development; the intrinsic
component of Maslow's esteem need, and self-actualization

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Alderfer also deals with frustration-regression. That is, if a higher-order need is
frustrated, an individual then seeks to increase the satisfaction of a lower-order
need.
In summary, ERG theory argues, like Maslow, that satisfied lower- order needs
lead to the desire to satisfy higher-order needs; but multiple needs can be operating
as motivators at the same time, and frustration in attempting to satisfy a higher-
level need can result in regression to a lower- level need.
Alderfer's Hierarchy of Motivational Needs
Level of Need Definition Properties
Growth
Impel a person to
make creative or
productive
effects on
himself and his
environment
Satisfied through
using capabilities
in engaging
problems;
creates a greater
sense of
wholeness and
fullness as a
human being
Relatedness
Involve
relationships
with significant
others
Satisfied by
mutually sharing
thoughts and
feelings;
acceptance,
confirmation,

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under- standing,
and influence are
elements
Existence
Includes all of
the various
forms of material
and
psychological
desires
When divided
among people
one person's gain
is another's loss
if resources are
limited
L12 Personality and Self Concept
According to Hilgard and Atkinson
Personality may be understood as a characterstics pattern of behavior and modes
of thinking that determine a persons adjustment to the environment.
Each persons distinct personality will influence his or her buying behavior.
Personality refers to the unique psychological characteristics that lead to relatively
consistent and lasting responses to ones own environment. Many marketers use a
concept related to personality-a persons self-concept.
Provide the consumer with the central theme.They provide the structure for the
individual for the individual so that a consistent pattern of behavior can be
developed.

Theories
1.Type theory

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Body Buid This was given by Kresthner and Sheldon.They may be classified on
the basis of face and body.They may be Ectomorph ,Endomorph and Mesomorph.
Type A and Type B
Type A are hard working , aggressive ,competitive and high achievement oriented.
Type B Easy going ,Social , non compitive non time bound.
2.Trait Theory A trait makes a difference between two persons .it is derieved from
the behavior of a person.
3.Psycoanalytical theory:
Oral stage
Anal stage
Phallic stage
Genetic stage
Self concept:
Individuals have a specific perception and image of themselves .These are closely
connected to the personality of the product or service routinised .
Self concept described as how one perceives himself and his behavior in the
market place. It consist of
Actual self
Ideal self
Expected self

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Social self
Ideal social self
Situational self.
L13 +L14 Consumer Perception
A motivated person is ready to act. How the person acts is influenced by his or her
perception of the situation. Two people with the same motivation and in the same
situation may act quite differently because they perceive the situation differently.
Perception is the process by which people select, organize, and interpret
information to form a meaningful picture of the world. People can form different
perceptions of the same stimulus because of three perceptual processes: selective
exposure, selective distortion, and selective retention.
Consumer Learning
Learning involves a change in an organization of a long term memory or behavior
due to training and experience.It is a continuous process and occurs all the
time.The change in behavior confirm that learning has taken place.
What consumers learn ,how they learn ,and what factors govern the retention. of
learned material consumer acquire and remember product names and
characteristics.

Definition:
According to E.R.Hilgard Learning may be defined as a relatively permanant in
behavior that occurs as a result of prior experience.

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It describes changes in an individuals behavior arising from experience. The
practical significance of learning theory of marketers is that they can build demand
for a product by associating it with strong drives, using motivating cues, and to the
same drives as competitors and providing similar cues because buyers are more
likely to transfer loyalty to similar brands then to dissimilar ones. Or it may design
its brand to appeal to a different set of drives and offer strong cue inducements to
switch (discrimination).
Factors determining Learning:
1.Motive
2.Stimuli
3.response
4.Reinforcement
5.Retention
Theories of Learning
1.Classical conditioning theory
2.Operant conditioning theory
3.Cognitive theory
4.Social Learning
L15 Consumer Attitude formation and Change :

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Consumer attitude are a composition of consumers belief, feeling and behavior
intentions towards some objects within a contest of marketing usually a brand on a
retail store.
A consumer may hold both positive or negative beliefs towards an objects.
People have attitudes regarding religion, politics, clothes, music, food, and almost
everything else. An Attitude describes a persons relatively consistent evaluations,
feelings, and tendencies toward an object or idea. Attitudes put people into a frame
of mind of liking or disliking things, moving toward or away from them.
Beliefs may also be expressed in a neutral way. Some may differ depending upon
persons situation or there levels of acceptance. The belief that consumer hold need
not to be accurate and some beliefs may be but with contradictory situation.
Attitude guide our basic orientation towards objects , people events and our
activities. Attitudes influence how consumers will act and react to product and
services.
Characteristics of attitude:
1.Atitude are not rigid.
2.Appearence of an attitude depends upon learning.
3. A relationship between a person and an object is not nutreal but has a
motivational properties.
4.Attitude cannot be observed directly.
5.The subject relationship is accomplished through the formation by differentiating
between persons positive or negative attitude.
Functions Of attitude

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Information processing:
The consumer decision making process is highly effected by the information
provided to the consumers or the customers .The customer filters the
informationand gathers the relevant data related for the purchase action.
At times the information provided through advertisements which are endorsed by
celebrity leaves an remarkable impression.
The information related with the purchase decision is processed by the mind in
priority order which is helpful for the purchase decision.
It refers to the activities that consumer engage in when acquiring ,integrating and
evaluating information. These involve actively seeking information and passively
receiving it.
L16 +L17 Consumer Decision process:
Functions
Of
Attitude
Utility
Value
experience
Knowledge
Ego
defensive

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Depending on the consequences of making a wrong decision, the complexity of
this process can range from careful analysis to pure impulse. While an impulse
buy, such as buying a packet of chewing gum, can take place instantaneously,
complex purchases mostly stretch over a long period of time. This buying
process is an iterative process, where people collect information from different
sources and repeatedly return to re-evaluate and compare the information they
have found.



A decision making process involves
Problem recognition
Information search and
evaluation
Purchasing and

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post purchasing behaviour
The major steps involved are:
Problem /need recognition: It is the first step of the decision making
process . It occurs when the consumers is activated by awareness of
sufficient difference between the actual state of affairs and concept of
ideal situation.
Search and evaluation: a quick and largely unconscious review of
memory for stored information, and experiences regarding the problem.
This information is in the form of believes and attitude that have
influenced the consumer behavior .
The basic prerequisites for customers to make their way through the information
search stage is that they are able to find products and that they can easily identify
purchase options.
In order to support the customer decision-making process at this stage, we need to
know:
Which words will customers use when browsing and searching for purchase
options?
What basic information do customers need in order to identify purchase
options?
What educational information do novices need in order to decide which
product criteria are important to them?

L18 Purchasing Processes, Post- Purchase Behaviour

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The alternative evaluation phase , involves comparing the information
gained in the search of process for alternative products and brands to the
product judging criteria that the consumer has developed.
Large number of customers dropped out at this stage simply because the
product information was so inadequate, that they couldn't decide whether
the products they were interested in would fit their needs.

Purchasing process: This stage emphasis should be on providing the
easies possible way for the customers to carry their orders through.
Follow strong purchase intentions. This process involves a series of
selections including the type of retail outlets as well as the specific brand
or service to use.
Post purchase behavior : these leads to various outcomes. The
outcome of the post-purchase evaluation stage is a level of customer
satisfaction or dissatisfaction, which is determined by the customer's
overall feelings about the product and buying experience. One such
outcome is satisfaction as a result of direct experiences in using the
brand. Whether the consumer is satisfied or dis satisfied with the product
or services delivered.
L19+L20 CB models
Models are simplifications of reality intended to make it more manageable . The
problem identify is models always use some hope of details to be served in
decision making process.
The focus is on consumer decision making on how individual consumer arrive at
brand choices .

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Product offering stimuli

Consumer decision Process
Nicosia Model
This model is concerned with inter relationshipbetween the firms marketing
communication, the attributes of the consumer ,The consumer decision process and
the feed back of consumers response to the firm .








Harward Model
Jhon Harward & Jagdish sheth put forward the harvord model in 1996
In their publication & title the theory of buyer behavior , the authors
Attitude
Search & evaluation
Motivation
Decision /action
Purchasing behaviour
Firm attributes Consumer
attributes
Experience /feedback
Consumption &
storages
Field 1
Field 2
Field 3
Field 4

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Interest was to develop a unified theory useful for the model depict rational brand
choices by consumers under various commission . The model distinguishes 3 level
of decision making .
Extensive problem solving
It involve early stages of decision making in which buyer have little or no
information about the brand.
Linked problem solving
It is more advance stage but consumer is not able to access brand difference or
price options.
Routinised problem solving
The response occurs ,when behavior have well defined choice criteria . they have
pre dispassion towards brand.
Little confusion exit in consumers mind & he is ready to purchase are the measure
set of variables in this model
a) Input
b) Perceptual/ learning precept
c) Output
d) External variable,
L21+L22 CONSUMERISM:
Consumers are by and large exploited by large no of restricted unfair trade
practices .Consumerism is an collective endeavour of consumer to protect their

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interest . The term "consumerism" was first used in 1915 to refer to "advocacy of
the rights and interests of consumers" .
The consumer should expect consumerism as a means of enjoying their rights.It
should exceed in making business and government more responsive to the right of
consumer .
Definition
According to Philip Kotler consumerism is the social movement seeking to safe
guard the rise and power of consumers
Consumerism is a social and economic order that is based on the systematic
creation and fostering of a desire to purchase goods and services in ever greater
amounts.
These are the techniques used to aware the consumer about there rights and
responsibility and follow the various acts which are used for the consumer
protection. For example consumer protection act, consumer forum.



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Consumer : Self help is the best help .
State : To form organs legislative ,Judiciary , and executive .
Business : Take consumerism as an opportunity and not as an threat .
Voluntary association : Keeping consumer before constrain ,vision and self of
founder member .
The term "consumerism" is also used to refer to the consumerist movement,
consumer protection or consumer activism, which seeks to protect and inform
consumers by requiring such practices as honest packaging and advertising,
product guarantees, and improved safety standards. In this sense it is a movement
or a set of policies aimed at regulating the products, services, methods, and
standards of manufacturers, sellers, and advertisers in the interests of the buyer.
L23+L24 Organizational buying behavior:
Consumerism
Consumer
State
Voluntary
association
Business

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Organization buyer buy product for further processing or use in there organization
The organizational market has fewer customers. Those customers make larger
purchase (in volume and rupees).
Organizational buyers make purchase decision in order to satisfy there goals ,as do
final consumers. Organizations have the goals of producing goods ,providing a
service or reselling a item and therefore buy products and services that will allow
them to effectively engage in these activities.
Types of buying situations:
Straight Re buy: Are rather routine purchase usually under similar terms of
sale and purchase.
Modified re buy: Occurs when buyers re evaluate and may make changes in
there available purchase.
New Task: Are those that new to the organization.
Buying centers : Is an informal cross functional departmental unit in which the
objective is the acquisition ,dissemination and processing of relavant purchasing
related information.
Roles in buying centers:
1.User
2.Buyer
3.Gate Keeper
4.Decider
5.Influencer

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Organizational buying decision process

Consumer buyer Vs Organizational Buyer
Bases Consumer buyer Organizational buyer
Consumption personal Business
Setting for buying Buying unit is within the
household
The setting is within the firm
Technical knowledge Average Well trained
Contract Not more less facility
available
Usually more geographically
concentrated
No.of decision makers No. of peoples are few. Many people are involved in
purchase decision .
Assignment 3
Q.1 Define the term Market Segmentation?
Problem
recognition
Identification
of
alternatives
Purchase
Decision
Post
purchase
behaviour
feedback

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Q.2 What is the purpose of market segmentation?
Q.3 What are the levels of market segmentation?
Q.4 Give an appropriate example of Niche Marketing?
Q.5 what is the importance of Market segmentation?
Q.6 Give diagrammatic view of Enviornmental influence on Consumer behaviour?
Q.7 What are the components of Enviornmental influencers?
Q.8 What factors comes under decision making process?
Q.9 Write down the componenets of Individual determinants?
Q.10 What factors contribute to External environment?

Assignment 4 Case IInd
Big Bazaar : Serving the Classes
The case let examines how Big Bazaar, a hypermarket from Pantaloon Retail (India) Ltd.,
emerged as a success story in the Indian retail scenario. Big Bazaar came out with innovative
marketing schemes which attracted the middle class consumers to the retail store. The caselet
details how Big Bazaar went into tie-ups with some of the manufacturers, which helped the
company offer goods at low prices to its customers.
Questions for Discussion:

1. "We are not in the business of selling ambience, but in the business of giving the best possible
deals to our consumers," said Kishore Biyani, Managing Director, PRIL. How did Big Bazaar
offer the 'best possible deals,' and discounted prices to its consumers?

2. Biyani opined that Biz Bazaar was focused on giving the best possible deals to its customers,
rather than focusing on the ambience of the store. Is ambience irrelevant for discount stores?

UNIT 3
L27+L28

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COMMUNICATION
Communication is a dynamic process that involves the effective transmission of
facts, thoughts, feelings, and values. It is a sharing of information and
understanding. This process of sharing information is a symbolic interchange, and
results in an exchange of meaning and understanding.
Communication is an interactive process. The two communication agents involved
in the communication process are the sender (S) and the receiver (R). Both the
communication agents exert a reciprocal influence on each other through inter-
stimulation and response. To conclude, we can define communication as a
multidimensional interactive process of sharing common sets of signs, symbols,
and language from one person to another so that a suitable response results.
According and Newmen and summer : it is an exchange of facts ,ideas ,opinions
or emotionsby two or more persons .
According to WM Cunning :The word communication describes a process of
conveying message fact ,idea attitude opinion from one person to another ,so that
they are understood .
PROCESS OF COMMUNICATION
There are five elements of communication. They include ideation, encoding,
transmission, decoding and response. The process of communication begins with
ideation, which refers to the formation of the idea or selection of a message to be
communication. It consists of the What of communication and is concerned with
the content of the specific message to be presented.
Encoding is the next step in communication. It is the process of changing the
information into some from of logical and coded message. Transmission refers to

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the flow of message over the chosen channel. Transmission confirms the medium
selected during the process of encoding and keeps the communication channel free
from interference or noise so that the message reaches the receiver without any
disturbance.
Decoding is the process of converting a message into thought by translating the
received stimuli into an interpreted meaning in order to understand the message
communicated. The process of decoding involves interpretation and analysis of a
message. Decoding in written communication refers to reading and understanding
a written message while decoding includes listening and understanding in oral
communication. Response is the last stage in the communication process. It is the
action or reaction of the receiver to the message, it helps the sender know that the
message was received and understood
Process
Sender Encoding Channel Decoding Receiver
----------------------------Feedback--------------------
Sender Is the person who communicate the message.
Encoding Conversion of communicated message in to the symbolic form.
Channel Is the medium in which communicated message will travel.
Decoding Conversion of symbolic form message in to the users language.
Receiver Is the person who receives the communicated message.
Feedback Is the response of the receiver & sender.
L29

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Marketing communication
Marketing Communications (or Mar Com or Integrated Marketing
Communications) are messages and related media used to communicate with a
market. Those who practice advertising, branding, direct marketing, graphic
design, marketing, packaging, promotion, publicity, sponsorship, public relations,
sales, sales promotion and online marketing are termed marketing communicators,
marketing communication managers, or more briefly as marcom managers.
Marketing communications is focused on product/produce/service as opposed to
corporate communications where the focus of communications work is the
company/enterprise itself. Marketing communications is primarily concerned with
demand generation, product/produce/service positioning .

Objectives of marketing communications
There are three key objectives of marketing communication
1. Inform : This objective is intented to create and stimulate interest and
awareness that is to let targeted consumers know your product or service offering
and where to find them.
2. Purusade :This goal aims to convince your customers ,your product or service
will providethe best value of your customers ,compared to your compititors.
3. Remind : It remind your customers to take action i.e. to purchase the product.
L 30
Integrated Marketing Communications

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According to AMA, It is Planning process designed to assure that all brand
contacts are received by a customer or prospect for a product ,service or
organization are relevant to that person and consistent over time.
Integrated Marketing Communications is a term used to describe a holistic
approach to marketing communication. It aims to ensure consistency of message
and the complementary use of media. The concept includes online and offline
marketing channels. Online marketing channels include any e-marketing
campaigns or programs, from search engine optimization (SEO), pay-per-click,
affiliate, email, banner to latest web related channels for webinar, blog, micro-
blogging, RSS, podcast, and Internet TV. Offline marketing channels are
traditional print (newspaper, magazine), mail order, public relations, industry
relations, billboard, radio, and television.
Factors contributing to IMC
Several shifts in the advertising and media industry have caused IMC to develop
into a primary strategy for marketers:
1. From media Advertising to multiple forms of communication.
2. From mass Media to more specialized (niche) media, which are centered
around specific target audiences.
3. From a Manufacturer-dominated market to a retailer-dominated, consumer-
controlled market.
4. From general-focus advertising and marketing to data-based marketing.
5.consumer controlled market

37

6. From traditional compensation to performance-based compensation
(increased sales or benefits to the company).
7. Data base marketing 24/7 Internet availability and access to goods and
services.
L31 PARTICIPANTS IN IMC
1. Product
2. Price
3. Place
4. Promotion
5. Physical evidence
6. People
7. Process
8. Men
9. Money
10. Machine
11. Market
12. Promotion Mix
13. Sponsorship
14. Ecommerce
IMC PROMOTION MIX
Advertising - Any paid presentation and promotion of ideas, goods, or services
by an identified sponsor. Examples: Print ads, radio, television, billboard,
direct mail, brochures and catalogs, signs, in-store displays, posters, motion

38

pictures, Web pages, banner ads, and emails.
Personal Selling - A process of helping and persuading one or more prospects
to purchase a good or service or to act on any idea through the use of an oral
presentation. Examples: Sales presentations, sales meetings, sales training
and incentive programs for intermediary salespeople, samples, and
Telemarketing. Can be face-to-face or via telephone.
Sales promotion - Media and non-media marketing communication are
employed for a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability. Examples: Coupons,
sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating
premiums, trade shows, trade-ins, and exhibitions.
Public relations - Paid intimate stimulation of supply for a product, service,
or business unit by planting significant news about it or a favorable presentation
of it in the media. Examples: Newspaper and magazine , articles/reports, TVs and
radio presentations, charitable contributions, speeches, issue advertising, and
seminars.
Direct Marketing is often listed as a the fifth part of the marketing mix
L32 IMC MANAGEMENT AND PLANNING MODEL
Review of Market Plan


39

Analysis of Promotional Programmed Situation

Analysis of Communication Process

Budget Determination

Develop IMC Programmed

Advertising Direct Mktg Internet Mktg Sales Promotion PR Personal selling

Adv Objective Direct
Marketing
Objective
Internet Mktg
Objective
Sales
Promotion
Objective
PR
Objective
Personal selling
Objective


Integrate & Implement Markting Communication Strategy

Monitor,Evaluate & Control Mktg Communication Programmed


40

L33
Challenges in IMC
1. MNCs use number of ad agencies and promotional tools.
2. Functional areas of company are widen up.
3. Decentralization of companies
4. Different problems with HR of different departments.
5. Cost Management.
Promotion Mix


The elements of Mix are :
Advertising
Sales
Promotion
Publicity
Personal
sales
Public
relations

41

1.Advertising
2.Sales Promotion
3.Personal selling
4.Publicity
5.Internet /Interactive marketing
6.Direct Marketing

L34 +L35 Sponsorship
Is an process of supporting an act or an event ,by providing money or other
resources that is of value of the sponsored event .This is usually in return of
advertising space at the event or as a part of publicity for the event.
There are many kinds of sponsorship,Television , Radio, sports ,Arts .
Types of Sponsorship
There are currently three kinds of sponsors in the MG Taylor network:
1. A sponsor is the client's principal point of contact between the facilitator and
the client for a Design Shop.
2. A sponsor is also a current Knowledge Worker who introduces a new
Knowledge Worker to the network.
3. The third is a more formal sponsor of a Knowledge Worker in the network
and plays a more formal role. This sponsor is someone who is a Speaker or a

42

Journeyman and must be in the pool of people who are called on to be
Process Facilitators or Event Facilitators as well. He or she should have a
good sense of the philosophy of MG Taylor, the Modeling Language, and
much practical experience in the execution of MG Taylor's work.





POP (Point of Purchase)
POP (Point of Purchase), in Japanese is a mono-weight typeface for the Japanese
Kanji writing system. It is similar to both sans-serif and script-based typefaces in
the Latin alphabet.
It is a place where the act of purchase takes place .The various features of a
product ,its unique selling propositions highlights its major
The POP typeface is designed to effect the look of handwritten Kanji, as though
produced by a felt-tip marker. Its loose, casual structure makes it similar to casual
scripts in the Latin alphabet.
Supportive communication
At times of crisis Supportive communication is the recommended
communication style. This implies communicating empathy, concern, respect and
confidence in the abilities of the affected person, as well as practical information .

43

Learning Objectives
1. Recognize the values that accompany the most effective communication
style
2. Communicate effectively in challenging situations
3. Describe communication elements that support resilience and self-help
4. Be prepared to work with groups of people in a community setting
5. Understand when and how to refer people to other professionals or
organizations
Communication Values
Cultural competence
Empathy
Respect
Genuineness
Positive regard
Non-judgmental
Empowering
Practical
Confidentiality
Ethical conduct


44






L36 Role of Ecommerce in Marketing communication
Definition ECOMMERCE
Electronic Commerce, commonly known as (electronic marketing or eCommerce,
consists of the buying and selling of products or services over electronic systems
such as the Internet and other computer networks. The amount of trade conducted
electronically has grown extraordinarily with widespread Internet usage.
Role in Marketing Communication
The use of commerce is conducted in this way, spurring and drawing on
innovations in Electronic Funds transfer , supply chain management , Internet
marketing ,Online Transactions processing, Internet marketing , Online
Transactions processing , Electronic data interchange (EDI), Inventory
management systems, and automated data collection systems.
Marketing can be considered as one of the most important element underpinning
successful business creation (1994). Perhaps because of its complex applications,
marketing has been defined in a variety of ways (1988). The marketing concept
was first promulgated in the late 1950s (1990). The importance of marketing
concept incorporates oft-repeated elements such as: customer orientation;

45

integrated marketing efforts; and resultant profitability (1990). In terms of
managerial perspective in marketing, (1972) is the sole pioneer as he adopted the
concept, when he proposed a generic concept of marketing concerned with how
transactions are created, stimulated, facilitated, and valued.

Assignment 5
Q.1 what do you understand by marketing communication? Explain its objectives
Q.2 Write short note on CONSUMERISM ?
Q.3 What is Organizational Buying behavior
Q.4 What are different types of buying situations ?
Q.5 Define the term communication for management
Q.6 what are essentials of communication ?
Q.7What is process of Management ?
Q.Discuss IMC management and planning model
Q.9 What are different types of communication.
Q.10 Explain Promotion Mix and Sponsorship ?
Assignment 6
Case IIIrd
The Gujarat Co-operative Milk Marketing Federation - Milk Sourcing Initiatives
The Gujarat Cooperative Milk Marketing Federation (GCMMF), located in Gujarat, India,
collects and processes on an average about 5.9 million liters of milk per day from various dairies
across the country. The caselet explains how GCMMF conducts this massive task effectively
using the latest Information Technology tools. The various tools they use like the Automatic
Milk Collection System Units (AMCUS), Amul ERP Online System, and Geographic
Information System (GIS) are discussed in detail.
Questions for Discussion:
1. The purchasing of milk done by Gujarat Cooperative Milk Marketing Federation (GCMMF) is

46

a good example of straight rebuy. Describe the salient features of straight rebuy, with reference
to the purchases of GCMMF.

2. In 2004, GCMMF started procuring milk from states outside Gujarat. Identify the benefits
which GCMMF expected to obtain from this initiative.

Unit- 4
L 38
Advertising Management an Over view
Advertising : Advertising is a form of communication used to persuade an
audience (viewers, readers or listeners) to take some action with respect to
products, ideas, or services. Most commonly, the desired result is to drive
consumer behavior with respect to a commercial offering, although political and
ideological advertising is also common. Advertising messages are usually paid for
by sponsors and viewed via various traditional media; including mass media such
as newspaper, magazines, television commercial, radio advertisement, outdoor
advertising or direct mail; or new media such as websites and text messages.
The term advertising is derived from the original Latin word advertere which
means to turn the attention .
Acc . to American marketing association it is any paid form of non- personal
presentation ideas goods or services by an identified responses.
Advertising Management is a career path in the advertising industry. Advertising
& promotions managers may work for an agency, a PR firm, a media outlet, or
may be hired directly by a company to develop branding for the company's product
or service. This position can include supervising employees, acting as a liaison

47

between multiple agencies working on a project, or creating and implementing
promotional campaigns.

Meaning
Advertising is a message paid for by an identified sponsor and delivered through
some medium of mass communication.
Any act that turns the attention to an article or a service as an idea might be well
called as advertising.
Advertising is a persuasive communication .It is not neutral ,it is unbiased,it says
Im going to sell you a product or an idea .
Benefits of Advertising
I. Benefits to consumers
II. For middle men
III. For sales men
IV. For society
V. It uplifts the living standard
L39
Nature and Scope of advertising
Nature

48

Before launching any kind of advertising campaign, it is important to understand
your potential customers. They don't sit at one place every time.
The nature of advertising is persuading and attracting bees to the flower you want
to be pollinated. Or in other words, attracting customers that bring in money for
exchange of the product or service .
Nature of advertising include :
advertising is distinguished from other forms of promotion as follows
it has a verbal and/or visual message
the sponsor of the message is identified
delivery is through recognizable media
there is payment by the advertiser to the media for carrying the message
advertisers are increasingly being able to reach specific audiences with
tailor-made messages

Scope of Advertising
It is mass communication process
It is informative in action
It is persuasive act
It is competive act
It is paid activity

49

It has an identified sponsor
L40 Advertising and other Promotional tools
Promotional Tools

Advertising Direct Interactive Sales Publicity Personal selling
Marketing Marketing Promotion
Promotion has been defined as the co ordination of all sellers initiated efforts to
set up channels of information and persuasion in order to sell goods and services or
promote an idea.
The basic tool used to accompolish an organizations communication objectives are
often reffered to as the promotional mix .
Direct marketing is much more than direct selling telemarketing and direct
responses ads through direct mail.It requires direct a good data baseof potential
customers.
Interective marketing thousands of companies have developed websites to
promote their product and services by providing current and potential customers
with information as well as to entertain and interect with consumers.
Sales Promotion It is generally defined as those marketing activities that provide
extra value or incentive to the sales force, the distributors or the ultimate
consumers.
Publicity refers to non personal communication regarding an organization ,product
,service or idea not directly paid for.

50

Public relation PR is defined as the management function which evaluates public
attitudes identifies the policies and procedures of an individual or organization
with the public interest and executes the programme of actionto earn public
understanding and acceptance.
L 41+L42 Role of advertising in promotion mix
1.Communication with consumers
2.Persuasion
3.Contribution to economic growth
4.Catalyst to change
Advertising process


51


Reference: sitemetrics.com.au

The process of Advertising involves the following steps
a) Study of target customers
b) Study of marketing environment
c) Defining advertising objectives
d) Determining advertising budget
e) Selecting advertising message
f) Selecting advertising appeal
g) Selecting media ,media mix ,media -vehicle
h) Determining media scheduling
i) Designing advertising copy

52

j) Executive of advertising
k) Evaluation of advertising effectiveness

L 43 Customer and competitor analysis
Competitor analysis in marketing is an assessment of the strength and weakness of
consumers and potential competitors. This analysis provides both an offensive and
defensive context through to identify opportunity and threat.
Customer analysis allows organization to identify and target the most profitable
with marketing campaigns directed at various distribution channels.
Competitive Analysis
The process of identifying key competitors; assessing their objectives, strategies,
strengths and weaknesses, and reaction patterns; and selecting which competitors
to attack or avoid.
Companies for analysis :
1. Competitor-centered companies
2. Customer-centered companies
3. Market-centered companies





53

Process of analysis
1. Firms face a wide range of competition
2. Be careful to avoid competitor myopia
3. Methods of identifying competitors:
4. Industry point-of-view
5. Market point-of-view
6. Competitor maps can help
7. Determining competitors objectives
8. Identifying competitors strategies
9. Strategic groups
10. Assessing competitors strengths and weaknesses
11. Benchmarking
12. Estimating competitors reactions



L44 +L 45 STP STRATEGIES FOR ADVERTISING
Market segmentation

54

Market segmentation pertains to the division of a market of consumers into persons
with similar needs and wants.
The purpose for market segmentation is conducted for two main issues. First, a
segmentation allows a better allocation of a firm's finite resources. A firm only
possesses a certain amount of resources.
Market segmentation can be defined in terms of the STP acronym, meaning
Segment, Target and Position.
Segment
Segmentation involves the initial splitting up of consumers into persons of like
needs/wants/tastes. Four commonly used criteria are used for segmentation, which
include:
Geographical (e.g. country, region, city, town, etc.)
Psychographic (i.e. personality traits or character traits which influence
consumer behaviour)
Demographic (e.g. age, gender, socio-economic class, etc.)
Behavioural (e.g. brand loyalty, usage rate, etc.)
Targeting
Once a segment has been identified, a firm must ascertain whether the segment is
beneficial for them to service. The DAMP acronym, meaning Discernible,
Accessible, Measurable and Profitable, are used as criteria to gauge the viability of
a target market.

55

The next step in the targeting process is the level of differentiation involved
in a segment serving. Three modes of differentiation exist, which are
commonly applied by firms. These are:
Undifferentiated - Where a company produces a like product for all of
a market segment.
Differentiated - In which a firm produced slight modifications of a
product within a segment.
Niche - In which an organisation forges a product to satisfy a
specialised target market.
Positioning
Positioning has come to mean the process by which marketers try to create an
image or identity in the minds of their target market for its product, brand, or
organization. Positioning concerns how to position a product in the minds of
consumers. A firm often performs this by producing a perceptual map, which
denotes products produced in its industry according to how consumers perceive
their price and quality.
The positioning involves:
1. Identifying the business's direct competition
2. Understanding how each competitor is positioning their business today
3. Documenting the provider's own positioning as it exists today (may not exist
if startup business)
4. Comparing the company's positioning to its competitors' to identify viable
areas for differentiation

56

5. Developing a distinctive, differentiating and value-based brand positioning
statement, key messages and customer value propositions.
L46 +L47 Campaign Planning
According to Dunn and Barban An advertising campaign includes a series of ads
,placed in various media that are designed to meet objectives and are based on an
analysis of marketing and communication situations,
Step taken are:-
a. Appraise advertising opportunity
b. Analyse and definethe target market
c. Set advertising objectices
d. Determine advertising budget
e. Decide media and creative strategy
f. Create ad, pre-test and realease ads

Message Creation
Create message involves a substantial advertisement message.It emphasizes the
right type of advertising and draws on writing talent.The write should be good at
spelling grammer ,punctuation.He should be familiar with current idiomatic
expressions .He should be fully aware of marketing environments and consumer
learning abilities and selective processes .
The message is often considered as the most vital component in the
communication process . the message is the thought , idea, attitude, image or other
information that the advertiser wishes to convey to the target audience

57

Elements of creative strategy:
Strategic objective
Target audience
Creative Promises
Back up claims
Creative style.
In developing a message consider 3 Cs
Customer Target audience
Company-Product
Compititive positioning Creating an image or an identity

Customer
Demographic Characteristics (e.g., age, sex) audience physical profile
Psychographic Characteristics (e.g., activities, interests, opinions)
how they live and reasons for their behavior
Decision Process opportunities available to influence product choice
Company
a)Distinctiveness of Attributes

58

If not distinctive audience not interested in product info message should not
stress on attributes
(b) Product Involvement- If high involvement, product info critical stress on
product attributes.
Compititive positioning
The art and science of fitting the product or service to one or more segments of the
broad market in such a way as to set it meaningfully apart from competition .
Strategies
Attribute - Set apart by attribute or benefit offered
Image - Similarity among brands
Use or application
Dominate - some aspect of usage
Product user e.g., Johnson & Johnson shampoo repositioned toward adults


L48 Copywriting
Copywriting is the use of words to promote a person, business, opinion or idea.
Although the word copy may be applied to any content intended for printing (as in
the body of a newspaper article or book), the term copywriter is generally limited
to such promotional situations, regardless of media (as advertisements for print,

59

television, radio or other media). The author of newspaper or magazine copy, for
example, is generally called a reporter or writer or a copywriter.
Thus, the purpose of marketing copy, or promotional text, is to persuade the reader,
listener or viewer to act for example, to buy a product or subscribe to a certain
viewpoint. Alternatively, copy might also be intended to dissuade a reader.
Copywriting can appear in direct mail pieces, taglines, jingle lyrics, web page
content (although if the purpose is not ultimately promotional, its author might
prefer to be called a content writer), online ads, e-mail and other Internet content,
television or radio commercial scripts, press releases, white papers, catalogs,
billboards, brochures, postcards, sales letters, and other marketing communications
media.
Content writing on websites is also referred to as copywriting, and may include
among its objectives the achievement of higher rankings in search engines. Known
as "organic" search engine optimization (SEO), this practice involves the strategic
placement and repetition of keywords and keyword phrases on web pages, writing
in a manner that human readers would consider normal.


L49 ROLE OF CREATIVITY IN COPY WRITING MEDIA PLANNING
Most copywriters are employees within organizations such as advertising agencies,
public relations firms, web developers, company advertising departments, large
stores, marketing firms, broadcasters and cable providers, newspapers, book
publishers and magazines. Copywriters can also be independent contractors

60

freelancing for a variety of clients, at the clients' offices or working from their
own, or partners or employees in specialized copywriting agencies.
A copywriter usually works as part of a creative team. Agencies and advertising
departments partner copywriters with art directors. The copywriter has ultimate
responsibility for the advertisement's verbal or textual content, which often
includes receiving the copy information from the client. (Where this formally
extends into the role of account executive, the job may be described as
"copy/contact.") The art director has ultimate responsibility for visual
communication and, particularly in the case of print work, may oversee production.
Either person may come up with the overall idea for the advertisement or
commercial (typically referred to as the concept or "big idea"), and the process of
collaboration often improves the work.
Copywriters are similar to technical writers and the careers may overlap. Broadly
speaking, however, technical writing is dedicated to informing readers rather than
persuading them.
For example, a copywriter writes an ad to sell a car, while a technical writer writes
the operator's manual explaining how to use it.
Because the words sound alike, copywriters are sometimes confused with people
who work in copyright law. These careers are unrelated.
Media planning is a series of decisions involved in delivering the promotional
message to the prospective purchaser and or users of the product or the brand.
Media planning involves a series of decisions concerning media objectives and
media strategies to accopmplish the advertising objectives.

61

L50
Testing of the advertising effectiveness
1.Tomake sound future decisions .
2.To impress upon the top management.
3.To have a clear breakup picture.
4.To know the point of saturation.
5.To keep in touch with the new trends.
Attributes Advertising effectiveness:
1.Brief: It should be brief and yet effective
2.Clear :is one which is easily and quickly read and grasped by the readers.
3.APT: that matches with the needs and counts of the prospects.
4.Personal :is specific where generality is dismissed to do away with ambiguity.
An advertisement measurements is adopted both before and after an advertisement
is launched .The method of measuring of sales and communication performance
the time of measurement and methods of measuring.
Reasons for effectiveness:
I. To make sound future decision
II. To impress the top management
III. To have a clear breakup picture.
IV. To know the point of saturation.
V. To keep in touch with the new trends.

62


L51+L52
Preparation and Choice of Methods of Advertising Budget
Advertising Budgets
Is the plan projecting how much money we have at our disposal and how we are
going to spend to get the best result over the coming year or years.
Budget is one that divides the amount specifically to various activities and these
specific figures make an advertising appropriation.
Preparation of Advertising budget
The advertising budget is the statement of the advertising plan in financial terms .
It is the allocation of the available funds to various advertising functions .
The budgetry process involves :
1.Budget Prepration
2.Budget Presentation
3.Budget implementation
4.Budget control
Copy elements
1. The headlines
2. The sub heads
3. The body copy

63

4. Captions the burlb
5. Boxex and panels
6. Slogans ,logo types and signatures.
Layout
The Layout is the visual expression of the idea of the creator of an advertisement
.The visual composition of an advertisement is the layout. It is the working
drawing or the blue print of an expression. A layout is t he format in which
various elements of the advertisements are advertisements.
Functions of Layout
1.It organizes the elements
2.It brings together copyrighter and art director.
3.It enables the advertisement to visualize its future advertisement.
4. It acts as a guide to the copy specialist.
Media Objectives
Developing media objectives is the initial step in developing a strategy .The media
objectives are the goals to be reached through the proper use of media resources .
The proper use of media objectiveis to introduce a product build a high level of
product awareness and promote a trail use of it among the primary target audience.
Problems in Media Plannig
Insufficient information

64

Insufficient terminologies
Time pressure
Difficulty measuring effectiveness.
Media of advertising


L53 Ethical and Social issues:
Advertising is the subsystems of economic systems of the nation .A free economy
is the compitive economy where consumer is the king.
The Ethical issues are:
Awareness of the product
Focus on consumerism
Eco friendly advertisement
Media of Advertising
Indoor and out door
media
Print media ,broad cast
media
Posters, Painted
displays,Electrical sign
Travelling displays.
Direct Advertising Media
Post card evvelopes
enclosures
Broad cast , broad sides
booklets
catalouges
sales letters ,gift novelties.
Display Advertising
Display windows
counter windows
showrooms and show
cases
Exhibition and trade fair.

65

Effect on the value of product and services
Effect on prices
Effect on consumer demand and consumer choice
Effects on competition.

The social issues are:
Deceptive Advertising
Harmful effects
Confuses on the people
Forceful selling
Media Misuses.

L54
Management of advertising Agencies
An ad agency is an independent agency set up to render specialized services in
advertsising in particular and in marketing ingeneral.
Advertsing is the core of advertising profession and industry .It is a unique type of
business organization specializing in creative line of advertising providing counsel
related to advertising .
Types of advertising agencies
Ad agencies come in all sizes and include everything from one or two-person
shops (which rely mostly on freelance talent to perform most functions), small to
medium sized agencies, large independents such as SMART and TAXI, and multi-

66

national, multi-agency conglomerates such as Omnicom Group, WPP Group,
Publicis, Interpublic Group of Companies and Havas.
1. Full service agency
2. Account service
3. Imaginative creation
4. Value system.

Functions of Advertising agency
1.Functions for the clients
1.It replaces the advertsising department .
2.It provide expert view point
3.It brings economy and excellency
4.It shares its reach experience
2.Functions for the media owners
1.It assures risk free business.
2.It take away the sales job.
3.It undertakes the advertising scheduling
4.It slashes down the production cost.



67




L55
Role of Advertising in Natural development:
Making the general aware public aware about there rights.
Spreading message for social welfare.
Green India safe India
Pulse Polio
Safeguarding the interest of general public.
Communication with the customers
Persuasion.
Contribution to economic growth.
Catalyst to change.
Creating Value systems.







68





Assisgnment 7
Q 1 .What do you understand by advertising ?explain its nature.
Q.2 Discuss Nature and objectives of advertising ?
Q3.What are the functions of advertising ?
Q.4 Explain POP ?
Q5.what are the typesof advertising?
Q. 6 Discuss various participants in IMC?
Q.7 Explain Copy writing and role of creativity in copy writing?
Q. 8 Briefly describe STP ?
Q9.Explain various ethical and social issues in advertising?
Q.10 Elaborate the term Advertising Budget ?
Assignment 8
Case IVth
HSBC worlds local Bank

The caselet 'HSBC - The Local Bank of the World' explains the factors which led to the
consolidation of the various banks owned by the HSBC Group under a single brand name -
HSBC. It also looks into the change in HSBC's advertising strategy after the consolidation which
led to the introduction of 'The Local Bank of the World' tagline in its advertisements. The impact
of these changes on HSBC's brand name is also explained.

69

Issues:

1The impact of 'one size fits all' strategy followed by many MNCs
2The need for a unified brand name
3 The importance of understanding local culture for an organization.
Key words:

HSBC, Banking, Local Culture and The World's Local Bank.
Questions for Discussion:

1. What are the initiatives taken by HSBC to target consumers across various cultures?

2. What were the drawbacks of the 'think, globally, act locally' strategy adopted by William
Purves? What prompted HSBC to re-brand?