Mam Sait George Marketing Assignment

MAM SAIT GEORGE MARKETING ASSIGNMENT

1) A. ADVERTISING • Any paid form of non personal communication that is transmitted to consumer through such mass media as television, radio, news paper, magazine, direct mail, and out door displays. B. Discuss two major advertising decisions 1. Setting Advertising Objectives Setting advertising objectives is the first step in developing an advertising program. These objectives should be based on past decisions about the target market, positioning, and marketing mix, which define the job that advertising must do in the total marketing program. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by primary purpose as: 1). Informative advertising, which is used to inform consumers about a new product or feature or to build primary demand. 2). Persuasive advertising which is used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. 3). Comparison advertising which is advertising that compares one brand directly or indirectly to one or more other brands. 4). Reminder advertising, which is used to keep consumers thinking about a product. This form of advertising is more important for mature products. 2. Setting the Total Promotion Budget One of the hardest marketing decisions facing a company is how much to spend on promotion. How does a company decide on its promotion budget? We look at four common methods used to set the total budget for advertising: the affordable method, the percentage-ofsales method, the competitive parity method, and the objective-and-task method. a. Affordable Method Some companies use the affordable method: They set the promotion budget at the level they think the company can afford. Small businesses often use this method, reasoning that the company cannot spend more on advertising than it has. They start with total revenues, deduct operating

expenses and capital outlays, and then devote some portion of the remaining funds to advertising. Unfortunately, this method of setting budgets completely ignores the effects of promotion on sales. It tends to place advertising last among spending priorities, even in situations in which advertising is critical to the firm's success. It leads to an uncertain annual promotion budget, which makes long-range market planning difficult. Although the affordable method can result in overspending on advertising, it more often results in under spending. b. Percentage-of-Sales Method Other companies use the percentage-of-sales method, setting their promotion budget at a certain percentage of current or forecasted sales. Or they budget a percentage of the unit sales price. The percentage-of-sales method has advantages. It is simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit. Despite these claimed advantages, however, the percentage-of-sales method has little to justify it. It wrongly views sales as the cause of promotion rather than as the result. "A study in this area found good correlation between investments in advertising and the strength of the brands concerned— but it turned out to be effect and cause, not cause and effect. . . . The strongest brands had the highest sales and could afford the biggest investments in advertising!" Thus, the percentage-of sales budget is based on availability of funds rather than on opportunities. It may prevent the increased spending sometimes needed to turn around falling sales. Because the budget varies with year-to-year sales, long-range planning is difficult. Finally, the method does not provide any basis for choosing a specific percentage, except what has been done in the past or what competitors are doing. c. Competitive-Parity Method Still other companies use the competitive-parity method, setting their promotion budgets to match competitors' outlays. They monitor competitors' advertising or get industry promotion spending estimates from publications or trade associations, and then set their budgets based on the industry average. Two arguments support this method. First, competitors' budgets represent the collective wisdom of the industry. Second, spending what competitors spend helps prevent promotion wars. Unfortunately, neither argument is valid. There are no grounds for believing that the competition has a better idea of what a company should be spending on promotion than does the company itself. Companies differ greatly, and each has its own special promotion needs. Finally, there is no evidence that budgets based on competitive parity prevent promotion wars.

d. Objective-and-Task Method The most logical budget-setting method is the objective-and-task method, whereby the company sets its promotion budget based on what it wants to accomplish with promotion. This budgeting method entails (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget. The objective-and-task method forces management to spell out its assumptions about the relationship between amount spent and promotion results. But it is also the most difficult method to use. Often, it is hard to figure out which specific tasks will achieve specific objectives. What specific advertising messages and media schedules should be used to attain this objective? How much would these messages and media schedules cost?

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Marketing ethics

Ethics - origin Ethical standards - society expects them to follow Following ethical codes help organizations build a positive image in society. Ethics and marketing mix Product - not hazardous to the environment, packing should carry statutory warnings-cigarettes, medicine, toys, home appliances, open dating Warranty and service Redressal of customer complaints regarding a product Price - e.g. premium pricing for low fat food Place - illegally hoarding sticks for speculations Promotion - hallucination, violence, snobbery, nudity and indecency, value system, racism, exaggeration MARKETING INOVATIONS & ETHICS Just the other day I went to a store to buy a shirt & trouser. I went into the change room & tried it on!!! It looks perfect on me… I thought I looked tall, slim & perfectly in shape it that attire!!! I came back home very happy. The next day there was a party & I thought of flaunting my shapely body & dress to all. To my utter dismay, I didn’t look all that macho in my dressing table mirror… I was aghast & kept thinking how the hell have I put on weight overnight & if I have, how come I am still fitting snuggly into this new pair. Its then when a friend of mine who is an interior decorator told me how??? He explained to me that the mirrors in most of the change rooms in the malls are slightly tilted inside so that the image is

stretched & you look a little leaner & taller. I felt cheated!!! We are all aware of the infamous Delhi Public School MMS case. I leave it to you to decide if a camera in a cell phone is a curse or a boom??? What to talk of other innovations like the internet connectivity MP4, voice recording facility & more. A cell-phone today, is a Phone too… Mc. Donald’s is known for its marketing wisdom. They innovate in Globalization with respect to all their Ps. Have you ever tried to know the calories in a snack at McDonalds? You will be surprised that one burger, coke & French fries has some 1080 calories. In a country where obesity is a problem & about 70% adults in urban areas suffering from diabetes eating such rich food is colossal. Yet we find Mc D gives catchy ads - “I am loving it!!!” Are We friends??? Recently Dr. Tim Lobsten, Director of childhood obesity programmes at IOTF, USA, has said that 177 million children under 18, all across the world, are currently clinically overweight or obese & Developing country like India is worst hit. He has also recommended “No TV or Radio ads between 6am to 9pm”. But, do we have the Political & ethical will to enforce this??? How many of you get phone calls in the afternoons when you are taking a cosy nap in the afternoon, only to hear the pseudo modern girl say in a mundane voice “ Hallo, Ap ____ Bol rehe hain?? Kiya aap ko personal loan Ki requirement hain?” I get cheesed off & wonder how she got my number & name??? The other day there was a news in the news paper where school children were involved in car thefts only to drive them for pleasure till the petrol lasted & then abandon them on the highway. This is the impact of myopic Advertising on these youngsters where latent needs are evoked leading them to indulge in anti social activities. And I can go on & on, but for the limitation of time & the decorum of this dias… Just think about it friends!!! In a bid to sell their products marketers bring in new product, features, marketing gimmicks to lure the markets not realizing the curse it is casting on the society as a whole. We talk of holistic marketing but only in the books & seminars… It’s high time now that Marketers become more socially responsible & understand that while they are accountable to their stakeholders for higher sales & profits, they are also accountable to the Society in leaving a more happier & healthier Earth for the generations to come. All Marketing innovations must be ethical…

B. Marketing impact on individual consumers and society as a whole Marketing’s Impact on Individual Consumers .Shoddy or unsafe products .Planned obsolescence .Poor service to disadvantaged

consumers Marketing’s Impact on Society as a Whole .False wants and too much materialism .Too few social goods .Cultural pollution .Too much political power Goal 1: Know the major social criticisms of marketing Marketing’s Impact on Other Businesses .Acquisitions of competitors .Marketing practices that create barriers to entry .Unfair competitive marketing practices Goal 1: Know the major social criticisms of marketing