oIER

2
ROLE OFADVERTISING
IN MARKETING MIx

CONTENTS
, Elements of Marketing Mix
Advertising and Product
Advertising and Price
Advertising and Place
Advertising and Promotion
Concluding Note
Case Study: Big Bazaar

Tarketing mix refers to the combination of four elements of marketing

M Product, Price, Place and Promotion (4 P's). According to Wj. Stanton,
"Marketing mix is the term used to describe the combination of the
four inputs which constitute the core of advertising company'sandmarketing system:
he product, the price structure, the promotional activities the distribution
ystem". Philip Kotler defines marketing mix as, "the set of marketing tools that
he firm uses to pursue its marketing objectives in the target market".
of a firm. It involves
Mdrketing mix represents the total marketing programme
price, place and promotion. These four elements
Sions with regard to product,marketing
Onstitute the core of a firm's efforts and are called as the 4 P's of
must determine it_ marketing
arketing by E.J. McCarthy. Every business firmrequirements of the customers.
Ix in an appropriate manner so as to meet the
ELEMENTS OF MARKETING MIX
mix are described below.
tour major elements of marketing need or a
anything that can be offered to satisfy a related to
I'roduct:I'roduct
A product is
component of the marketing mix involves decisions
labelling
.
quality, product features, product packaging,
these activities
hct size, product warranties and after-sales services. All
bronding trademark,
 AOVERTISNG
22
are usuallv d1rected at a specifx roup should bee such tat
The product
than COnsurmers at large
requiretrents of the target market of a firn
importarnt factor affecting success
Price Pnce is an volune ard profjts
polces have a direct influence on sales discounts and
and p
Pnce muxivoves
rebates, decsions regard1ng bae price,
allow. ances, credit terns, freight pa yrments and resale prre
mainterance The marketers pav attention to many factors betre fizinz the
Cotnpetition fron rival firns.
price of the product These inciude it
customers will buy at variOus pricS, how rnuch
the target
and market the product, how much of the priCE can be allowed 2s dirty ie
the profit rmargins to be aintained etc
3. Place Place mix irnvolves distributing the product frOTn the place of prdutrr
to the place of consumption. This category of decisions include the iollyir
) Distribution channels: Whether to distribute the z00ds thruz
wholesalers and retailers or directly selling them to the final buver.
i) Intensity of distribution coverage: Whether to
provide
distribution, selective distribution or eciusive distribution for theintensive
produ
(iii) Warehousing: Deciding nurnber and location of
hired warehouses to be gwTe
(it) Inventory to be maintained
(z) Modes of transport to be
used
4. Promotion: Prornotion
bringing products to theconponent of the marketing mix is
concerned wi
buy. It is the function of knowledge of custormers and persuading them
miz involves inforrning and influencing the
decisions with respect to customers. Promotor
promotion
and therefore,
and publicity. No single advertising,
method of personal selling, s2
0f more promotion
prornotion canpaign usuallv involves is effective acre
prornotional rnethods a
combination ot C
Marketing mix is a very
helps determining the rmost
in irnportant concept in the
achieving the rmarketing optirnurn cormbination marketing
of the 4 P's literarue
All the
narketing objectives. and th
decisions in other niz elernents are
four areas is areas. How inter-related. Decisions in one area
xplained advertising
in the rest of
the would affect decisions
Advertising Marketing ir
and chapter.
Advertising is arn
marketing miz. Let us elernent of
marketing nix. now study how pronotion, which in turn is elemerts
elemer:
advertising affects other an
ni
 ADVERIISINGIN
v MARKETING MIX

ADVERTISING
makes buyer
AND PRODUCT 23
erismg aware of the product at the
t I s gin later stages
offers, informs the buyers about its time ofits introduction,.
. benefits it Advertising features and
hes it when its sales
towards products. decline. facilitates the growth of the attributes
Advertising also makes the peopleproduct, and
favourably
Ihauct decisions cover various areas like
stages, product planning etc. The relation of branding, packaging, product life
e
liedbelow. advertising to these areas is
ertisingdnd Product Life Cycle
factor that determines the use of advertising and promotion over
The main
the longer term is the stage in the product life cycle (PLC). As shown in Figure
B*he product life cycle consists of four major stages: introduction, growth,
aturity and decline.
Advertising and promotion Sales
Product
apenditures in the introduction stage
Dically are both high. A high level of
advertising is needed to make people
aNare of the newly introduced product and
bommunicate its benefits for prospective
buyers consideration. A high level of
promotion is also needed to further build Introduction Growth Maturity Decline
aNareness and induce people to try the Figure 2.1: Product Life Cycle
neW product.
differ depending
in the growtlh stage maywell
Advertising and promotion strategymarket share leader or differentiated
n whether the brand is (a) either the
category, versus (b) an imitative "me-too"
mother brands in the product is emphasized as a means of maintaining
instance, advertising
ala. In the former me-too product
latter instance, with acapitalize
dentity and differentiation. In the on the
because the imitator can
brand, advertising can be lower to induce trial
is higher so asadvertising
promotion and
leader' s advertising- Correspondingly, Thus, the relative roles of
of, and to, the me-too brand. positioning in the growth
switching
may be reversed depending on
the brand's
promotion
Stage of the PLC. stage
differ,
may alsoloyalty,
maturity
promotion strategy in the create (a) high brand
Advertising and
whether the brand has marnaged
to emphasize
usually will degree of
depending on
low brand loyalty. Brands with high
brand
image.
loyalty low
Brands witha as a means
brand emphasize promotion
aIodyalvetryti,sing
f on
to maintain the successful
the other hand, will usually have to
product life cycle
are

ha
at\tdravertctingising
and holding buyers.
and
decline
promotion in the minimize
tries to
stage of the costs. Advertising is
marketing

oul as the manager

ed. Thes o
 ADVERTISING PRINCIPLES AND
24
discontinucd Promotion,
however, is continued at a low
while the
level to the di
manufacturer's inventory is PdistriRbACTIutorCs
to keep the product
in stock
reduced t,
zero

The relative roles of

2.1.
advertising and
promotion according to
,PLC stages hav
been shown in Table
rolcs of Advertising and Promotion according to PLC
ETable 2.1: Relative
PLC Stage
Advertising Promotion stazes
High High
1 Introduction
2 Growth
(a) Leader or Differentiated
(b) Me-too product HighLow LowHigh
3 Maturity
(a) High Brand Loyalty
(b) Low Brand Loyalty HighLow
LowHigh
4 Decline None Low (distributors)
Advertising and Product Planning
Product planning has an important place in the
strategies in the product planning area have been directedmarketing mix. Recer:
better products and bringing about improvements in towards manufacturin:
efforts are being made to improve the quality of products, existing ones. Consiste.
and also for devising new uses for them. increasing their variet
of a firm's products over the
competing
Advertising highlights the superiorit
awareness and knowledge of new uses. products and also seeks to enhanc
Advertising and Product Positioning
of theAdvertising
customers
helps the advertiser to position his
TV have helped to the desired way. For instance, product/service in the mu.
in
terms of picture position the product as one which advertisements of Airtel s
position itself in thequality. Similarly,advertisements of promises
Bazaar
high quhelped
lowest price. customers' mind as a Big
good quality product
have
Advertising and Packaging avallas
Packagingarea
packaging
is an
important part of the
instance, the determine
colour
or prominently in used on the
to a great extent marketing
the mix. Decisions taken in
the ads of the product package designing of advertisements
Cadbury'
package. Similarly. advert
s is
Diaryement
Milks. We see a
is
sometimes
prominernt
used extensi
purple col
models Chocol ate,
we see the use ol
Dettol Soap ads. which is also the colour
dressed up in green and whitecolour
 :0FADVERTISINGIN
MARKETING MIX
products also get an
he
stisements advantage
prominently focus of
on the easy
recognition by 25
recognise a packet of product packages. Thus,
Maggi noodles consumers
a if the
l distarnce because its
lying on consumer
advertisements prominently focusthe onshelfthe package.
of a
retailor
etising and Branding
The brand provides to the
customer a certain guarantee and
Gualitv of the products is
untability. To the satisfactory as the brand assurance that
manufacturer, represents a means of gaining
building a consumer
it narne connotes
franchise around his particular brand. customer
affected by a company'
family brand name or s branding policy. For instance,, Advertising
a
an umbrella company
nroducts. Sony produces various brand name under which it produces
products-music
sions, Home theatre systems, Laptops systems, DVD players,
etc. under the
snolicy gives an option to the company to advertise all same brand name
its products in one
sement or individually advertise each of its products. On the other hand,
ecompanies may choose to give a different brand name or individual brand
-ine to its various products. For instance, Hindustan Unilever uses a different
-nd name for different bathing soaps it produces. Thus, we see different
ertisements for Lux, Dove, Lifebuoy, Liril, and Pears.
ADVERTISING AND PRICE
Price is an important consideration in buying decisions. Many customers are
ie conscious and would like to know the price of a product for comparison
*poses before finally deciding to buy. Price is also indicative of quality. Many
quality.
pk equate price with quality. The costlier the product, the better theit cannot
tererse is also true. If a product costs lesS, customers may feel thatactivity. If
thus, an important and critical
quality. Pricing a product is profitability of a business; and if a higher
wer price is fixed, it will affect the and mav have
nte is fixed, the product will not be able to stand in competition Advertisements
RO out of the market. Therefore, the right price has to be fixed.
product. For some products, when many
tetimes carry the price tag of the each other for consumer preterence. the
Stical
te may
products are Competing with
be an important influencing factor.
The
of
other purpose ot giving the
higher pricesbeng
charged
n the possibility product is sometnes
isto discount
advertisements informthe
price of a
the retailer from the 1gnorant customer. The prospts thatpriceand-quality
thetotal
prntut
ade the
fering theme
of its advertisement to highlights the price, andchanges
product c:"
is economical. Advertising of the
premium nature "Paach matlath cheta rur.al
aprithiocnes.ship.
economical nature or
For instance, the advertising
campaign wonderstor Coke's
bottle and
did

hlighted the price of the small

Coke

itioning.
 ADVERTISING
26 PRINCIPLEES AND PE
ADVERTISING AND PLACE
distribution, that is, the various
reters to physical channels t
Placeproducts are made available. It is through advertising that the Pul
which
amongst potential buyers i.e. consumers start
mav be created
advertised products from retailers or walk
members
into their stores.
(wholesalers and retailers) to
stock
This,
in turdemandi
of demand for the product. The advertisements bytheretaile
motivate the channel
anticipation pro
Shopper's Stop announcing upto 50%
off on products results in
walking into their stores.
many cust
ADVERTISING AND PROMOTION
Amarketer needs to balance the promotion mix consisting of adve
personal selling, sales promotion and publicity. There should be c
between all these elements of promotion.
Advertising and Personal Selling
Personal selling is the process of assisting and persuading a prospective
to buv a product or service in a face to face situation. It involves direcs
personal contact between the prospective buyer and the seller or his represent.
Advertising and Personal Selling are very closely related to each other. Pers
Selling is called oral advertisement while Advertising is called Salesmansl
print.
Advertising facilitates the role of salesmen. If the
of the products because of advertising, salesmen can potential buyers are a
the products. On the other hand, if a easily persuade them to
introduces his product about which thesalesman contacts a potential buyer
totally ignore the plea of the salesman. potential buyer does not know, he
Moreover,
why should he stop using the product of the the potential buyer might
Advertising present brand all of a sud
gives exposure of the products to the potential
them the uses and buyers. It explar
the resistance of theadvantages of the product/brand. It thus, helps in te
consumers and makes the iob of the salesman easier.
On the other hand,
Advertising creates salesmanship
demand and
picks up from where advertisin
created by advertising into sales. salesmanshipin converts the potentten
television, etc. just make the Advertising various media like ner
But still the consumers
consumer may be in a aware about different products andepl
to the consumer how stage of The salesman
advantages of
a
productproduct.
buying the given indecisiveness.
He mayhisevenneeds.
can satisfy give demonstration
He will list:
same, if required, and fitallv
may be successful in customer
Inspite of being cloely related to each other,selling
there it are Someimport
to the
differences between advertising and personal seling. These differences are ist
in table 2.2.
 Lable2.
and Personal Selling
Advertising
impersonal form of Personal Selling
is an
sertising
aMMunication.
Personal selling is a personal form of
Communication.
vertising
involves transmission of In personal selling, the sales talk is
endardized messages 1.e., same adjusted keeping in view customers
NSge
is
sent to all the customners in needs and background.
Marketsegment.
4dertisingis inflexible as the message Personal selling is flexible as the sales
adjusted to the needs of the presentation can be adjusted according
annott be to the needs and
customner.
background of the
vertising isa form of mass commun- Only alimited number of people can be
people Contacted because of time and cost
ation i.e., a large number of
an be reached. considerations.

in advertising, the cost per persona The cost per person is relatively high in
reaches case of
ched is very low as it
people. personal selling.
lLrge number of
Personal selling efforts take a long time
4drertising can cover the market in a
short time.
in covering the entire market.
Personal selling makes use of sales staff
sdrertising makes use of mass media which has limited reach.
such as newspapers, magazines, radio
znd television.
Personal selling provides direct and
iavertising lacks direct feedback. immediate feedback. Salesmen come to
Marketing research efforts are needed know about the customners' reactions
bjudge customer's reactions to
immediately.
avertising Personal selling plays an important
role
QTertising plays a tremendous role in
Cttacting the attention of the prospects in bringing about sales.
d moving them to the interest stage. selling, there is only
one
In personal
avertising uses a wide choice of of messages
channel for transmission
salesman with
Wanels for transmission of messages personal talk of the
audio as well as visual, such as, radio, the prospective customer.
elev ision,
internet, etc.
erliessing and Sales Promotion promotional
Promotion consists of all increase
advertising
activities other than short-term
sales through promotion
Anal that help to Association, sales
selliAccording
tsdesives."thoseng ma'
and publicity Marketing
to Americanother than personal
selling,
advertising and
effectiveness, such as
variOus
marketing activities purchasing and dealer
demonstrations and
irity hat stimulate consumer and exhibitions,
purchase displays, Shows ordinary
routine".
selling efforts not in the
 Advertising Sales Promotion
1. Mearning Anv paid form of
impersonal
of a product, service Marketing activities which
presentation
2 Tine horizZon
or idea by an
identified sponsor stimulate
and consumer buying
dealer effectiveness
Long-term perspective
3. Aimn
To build image of Short-term perspective
and his product producer To increase immediate sales
4. Scope
Television, radio, newspaper, Free samnples, coupons,
magazines, films and other
media contests, premiums, displays
5. Regularity exhibitions etc.
6. Emphasis
Regular and recurring Limited period, non-recurrin
Informs, persuades and
buyers, attracts customersremindsSupplement to advertisi
towards the product personal selling; pushes
products towards buyers
Advertising and Publicity
a Publicity any form of
is
product
by the
or service commercially
by significant
carried the press, radio, news about an
organisatior
paidh
sponsor.
service or businessThus, publicity is basically antelevision, etc. about
that is not pradu.
and is of organisation, which is
commercial information
Communicated
signiticance to the firm.
the met
the
voluntarily by
Advertising different
is
Irom publicity in the
1
2.
Advertising is paid for by its following
Advertising done by an sponsor whereas ways.is not sponse paidfor.
not identified.
identified sponsor butpublicity
in
publictty
the
 ADVEAILSING
IN MARKETING MIX

always impersonal 29
whereas publicity may be both personal
C a,verlisiny,the sponsor exercises.direct control
over the size and
essage.Butin publicity, control lies
with the news media. frequency
has greater versatility than
/bhcity advertising. News, stories, editorials
u l y a lwr
rile upS about a company or its products appear nore authentic
readers than advertisements sponsored by a company.
e is ofl guard because the news can reach even those who otherwise
/ublcity
advertisements. Advertising is not off guard in this way.
differences between advertising and publicity can be summarized
We 24.
Lble 2.4: Differences between Advertising and Publicity
wintofDistinction Advertising Publicity
Psment |Advertising is a paid fform of No payment is made to the
dissemination of information. media as the information is
The firm has to pay for the use published voluntarily.
of space and time.
lntilivd There is an identified sponsor, There is no identified sponsor.
that is, the firm which wants to Media communicates the
advertise its products or services. information as it considers it
newsworthy.
The advertising firm has full The concerned firm has no
antrol
control over the content, type, control over the contents, type
size, duration and frequency of and size of information.
the message.
Advertising is intended to give Publicity may generate
4irpose favourable or unfavourable
favourable and positive
impression about the company impression on the public
about the company and its
and its products. products.
Advertising is Considered less Publicity is considered more
Authenticity authentic by people.
authentic.

CONCLUDING NOTE

promotion mix affects decisions in

Advertising marketing
t areas of
as one of the elements of the
product, price or place. It also affects decisions
mix, be it mix, that is, personal selling, sales promoton
iken in other areas of the promotion
nd influence in all these dec

à
pimplies
ublicity. thatAdvertising
marketer must firm
having
t much money IS spentforget
not
such
on it;that
the no
an
cannot afford to
the
important
take
matter
advertising
how good the
lightly. At the same
advertising is and
brand's success will also depend on other
and
product quality
packaging,
hents of the
marketing mix such as
pricing,

- S measures