Beruflich Dokumente
Kultur Dokumente
Unit12
Unit12
Structure
12.1 12.2 Introduction Objectives
OtherFormsOfExternalBusinessCommunication
12.3
CommunicationabouttheOrganizationthroughAdvertising 12.3.1 CorporateAdvertising 12.3.2 TypesofCorporateAdvertising 12.3.3 GuidelinesforEffectiveCorporateAdvertising SelfAssessmentQuestions2 12.3.4 ProductAdvertising 12.3.5 FormatforProductAdvertising SelfAssessmentQuestions3
12.4
12.1Introduction Inthelastunit,wedealtwithanimportantformofcommunicationwithexternalstakeholders,namely, business letters. Among the external stakeholders, consumers and the media are particularly important. In one of the introductory units, the importance of retaining consumer goodwill, building preference for the companys product and projecting a positive image of the company was emphasized.Inthisunit,wewilldiscusstwochannelsthroughwhichorganizationscommunicatewith themediaandconsumers,inordertoachievetheseobjectives1)Newsreleases,whichareaform ofpublicityand2)Massmediaadvertising.Whileanewsreleasecanbeusedtohighlightsomething unique about the organization to the media and to the public at large, advertising can build a favorableimageaboutthecompanyanditsproducts.
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LearningObjectives: Afterstudyingthisunit,youshouldbeableto.
1. Understandtheimportanceofeffectivecommunicationwithconsumers,themediaandsocietyat
large.
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1.AdramaticopeningsentenceorparagraphThefirstsentenceorparagraphshouldhighlight the new development as something unique, as a first time achievement, or as a Unique Selling Proposition (USP).A USP is an unique feature specific to a particular company, which the competitiondoesnothaveandwhichsetsyouapart. Forexample,theopeningsentenceorparagraphcouldstartbysayingForthefirsttimeinhistory ., talk about an innovative new technology introduced by the company, the companys developmentinabackwardarea,orthefactthatanewentityhasbeencreated(e.g.,TataCorus). 2. Answers to key questions The press or news release should provide key information that answersquestionssuchaswhere?(i.e.,location),when?(timing),why?(reasonorjustification) andhow?(strategy).Thisinformationshouldbeprovidedrightatthebeginning. ExampleIfanewfactoryisbeingopened,whereisitlocated? Ifanewproductisbeinglaunched,whenisitbeinglaunchedandwhyisthetimingideal? Ifthecompanyisplanninganewproject,howwilltheyraisemoneytofundtheproject? 3. Benefits to the community The press release should also explain whether the new developmentwillhaveapositiveoranadverseimpactoncertainsectionsofthecommunity. Examples If the company is participating in social development and building hospitals for the elderly,seniorcitizensarelikelytobenefitthemostfromthisactivity. Ontheotherhand,whenTataacquiredlandinSingurfortheirRs.onelakhcar,ithadbenefitsfor consumers, but an adverse impact on thefarming community, leading tofarmers protests against theacquisitionofland. 4.CompanycredentialsThepressreleaseshouldemphasizethepastcredentials,reputationand provenstrengthsofthecompany,sothatitenhancescredibility. Forexample,thefactthatthecompanyhaslaunchedsimilarproducts,orembarkedonsimilar projectsinthepastshouldbehighlighted,asevidenceofthecompanysabilityinthatarea.
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Whenwritingcaptions,thefirstlettersofallthewordsinthecaptionshouldbeallcapitalletters. Thecaptionshouldbeattentiongettingandframedinonesentence.
Thefirstparagraphofthepressreleaseshouldstatethenameofthecity,state,month,dayand year.
The release should also be made visually appealing, with proper use of spacing between paragraphs,appropriatefontsize,typeface,etc.Thetextshouldbeformattedattractivelyandthe lengthshouldnotexceedtwodoublespacedpages,orapproximately400words.Itshouldalso beproofreadfortypos,spellingandpunctuationmistakes.
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FORIMMEDIATERELEASE
12.2.2SamplePressRelease Contact:PatriciaWellsMagicMoments(logo) DY&RPublicRelationsMumbai,560046 (080)25212777Extn.309 NEWSRELEASE
MAGICMOMENTSGIFTGALLERY COMINGTOBANGALORE
Mumbai,March2008.AMumbaibasedretailchainthatspecializes ingreetingcards,music,stationeryandgiftitems,planstoenter Karnatakathissummer,withatleasttenstores,amajorityofthem beinglocatedinBangalorecity. Mr.StanleyPinto,ownerandpresidentofMagicMomentsGiftGallery, announcedthisweekthatpotentialfranchiseesarelookingatthree sitesintheNorthBangalorearea.Twootherstoresareexpectedto openinMysoreandMangalore. Whatwehavedoneistotakefourbusinessesthataretraditionally foundinseparatestoresettingsandtocombinethemunderoneroof,says Pinto.Heisoftheopinionthatthestoreswillattractheavytraffic,since customersfindonestopshoppingveryconvenient. MagicMomentsspecializesin1)Greetingcardsforalloccasionsand festivals2)MusicaudiocassettesandCDsofalltypesofmusic, includingIndianandWesternclassical,rock,popandjazz3)Stationery, includinghandmadepaper,wrappingpaper,notebooksandnotepads and4)Giftitemssuchascurios,wallhangings,costumejewelryand scentedcandles. Mr.Pinto,now30,openedthefirststoreinMumbaiattheageof20.Hebegan franchisingthreeyearslater.Today,MagicMomentshas25storesand100moreare underdevelopment,throughmasterfranchisearrangements. Whatmakesthesestoressosuccessful?Theiruniquerangeofproducts, specialambience,highprofitmargins,lowoverheadsandfocusoncustomerservice haveallcontributedtothegrowthandpopularityofthechain,accordingtoPinto. Whilesomelocalstoresmayhaveafewsimilarproducts,noothernational chaincanmatchusforthesheerbreadthofmerchandiseandqualityofservice, claimsPinto.Thegiftbusinessisboomingandwehavecarvedanichefor ourselvesinthisarea,thatwillbedifficulttochallenge,hesays.
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SelfAssessmentQuestion1 Arethefollowingstatementstrueorfalse? 1.Apressreleaseisapaidformofcommunication. 2.Maintaininggoodmediarelationsisimportantforgettingapressornewsrelease accepted. 3.Thepurposeofapressreleaseistosellacompanysproducts. 12.3 CommunicationAboutTheOrganizationThroughAdvertising Advertisements in the mass media such as magazines, newspapers and television are used by organizationstocommunicatewithprospectivecustomers,bothabouttheorganization,aswellasits products. Advertising may therefore be categorized into two broad types corporate advertising andproductadvertising. Corporateadvertising maybedefinedasadvertisingthatsellstheorganizationto itsvarious publics.Inthiscase,theorganizationistheproduct.Corporateadvertisingismoreapublicrelations activitythanaformofadvertising,sinceithasnocommercialpurpose.Itsaimismerelytoinformand tobuildapositiveimageoftheorganization. Productadvertisingontheotherhand,aimstopersuadeprospectivecustomerstobuythe organizationsproductsorservices.Itsultimatepurposeistoselltheorganizations products. Wewilldiscusseachofthesetwotypesofadvertisingbriefly. 12.3.1 CorporateAdvertising Whiletheoverallobjectiveofcorporateadvertisingistoprojectapositiveimageoftheorganization asawhole,someofthespecificobjectivesincludethefollowing
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* To create positive attitudes towards the organization Sometimes, consumers may have negative perceptions towards an organization, based on the belief that the organization is not a responsiblecorporatecitizen.Forexample,theymaybelievethatthattheorganizationisresponsible forenvironmentalpollution,ordestructionofforestsandothernaturalresources.Insuchasituation, corporateadvertisingaimstocreateamorepositiveattitudetowardstheorganization,bycorrecting thesebeliefs. Example There wasa negative perception among consumers that Nike wasusing child labor in someofitsfactories,tomanufacturesportsshoes.Corporateadvertisinghelpedtoovercomethese perceptions. *Toprojectthepersonality,cultureand valuesofanorganizationTheTatasandtheBirlas have been the oldestand the mostfrequentusers of corporate advertising,to communicate about theirentrepreneurialability,cultureandvalues,asIndiasleadingindustrialgroups.Evencountries mayusethisformofadvertisingtoachievesimilarobjectives. Example Dubai advertises to project an image of itself as a land of investment, sports and investmentopportunities. * To safeguard corporate reputation This form of corporate advertising is done when the company is going through a crisis. We discussed crisis communication earlier, in the context of shareholdercommunication,citingtheexampleofCokeandPepsi,duringthepesticidecontroversy. ExampleDuringthepesticidecontroversy,CokereleasedadsfeaturingAamirKhangoingtothe Cokefactoryandlaboratory,alongwiththeManagingDirector,declaringthatCokewassafetodrink andfreeofpesticides.Thishelpedtoanextenttorestoretheirdamagedreputation. * To make an organization better understood Sometimes organizations go in for this form of corporateadvertising,inordertomakethemselvesmorevisibleandtomakeconsumersawarethat theyhaveapresenceinseveralareas. ExamplesTheUnitedBreweriesGroupranacorporateadvertisementtohighlightthefactthatUB wasnotonlyinbreweries,butalsohadinterestsinhealthcare(hospitals)andeducation.
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TheITCGroupalsoadvertisestohighlighttheirpresenceinareasasdiverseascigarettes,hotels, andreadytoeatfoods. *To project the organization as sociallyresponsible This refers to corporate advertisingfora social cause, that highlights the companys role in social development. The objective is to communicatethecompanyscorporatesocialresponsibility. ExampleTheUBGrouprananadvertisementwiththemessageDrinkinganddrivingdontmix.
12.3.2 TypesOfCorporateAdvertising Corporate advertising not only has different objectives, it has also become wider in scope, going beyond its traditional role of image building. Today, it encompasses many different types of advertising.Someofthemostimportantonesinclude 1. Corporate Identity Advertising This type of corporate advertising is done purely to communicate the organizations corporate identity, such as its name, logo ( e.g. the Nike swoosh),trademarkorbrandnameandslogan.Whentheorganizationsidentitychanges,thisis communicatedthroughcorporateadvertising. ExampleTheAmericanfastfoodoutlet,KentuckyFriedChicken,changeditsnametoKFC,to remove the association with fried, greasy chicken. This name change was communicated through corporateidentityadvertising. 2.InstitutionalAdvertisingThistypeofcorporateadvertisingisaimedatspecialpublicssuch asthemedia,suppliersanddealers,tocorrectcommunicationproblemswiththem.
3. Public Relations Advertising This is the name given to corporate advertising that aims to changethenegativeattitudesofthepublictowardsthecompanysproducts. ExamplesTheadvertisingdonebyCokeandPepsifollowingtheColacontroversyandthatdone by Cadburys, which was found to have worms in its chocolates, are examples of this type of corporateadvertising.
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4. Issue or Advocacy Advertising This type of corporate advertising projects a companys viewpointorstandonacontroversialissue,suchasenvironmentalpollution. ExampleWhenthepollutionissuestartedaffectingmotorcyclecompanies,whichwereaccusedof emittingfumesfromtheirvehicles,HeroHondarananadvertisingcampaign,wheretheyhighlighted thefactthattheirvehicleswerecontributingtoapollutionfreeenvironment. 5.PublicServiceAdvertisingThisreferstocorporateadvertisingtopromoteasocialcause, suchasawarenessofAIDS,familyplanning,orpreventionofdrunkendriving. 6.CorporateUmbrellaAdvertisingThistypeofcorporateadvertisingisaimedatconsumersand triestolinkaneworweakproducttomoreestablishedbrandsinthecorporateumbrella,or companysrangeofproducts.Theideaistogeneratesalesfortheweakornewproduct. ExampleRichardsonVicks,betterknownforitsVicksbrandandprescriptiondrugs,clubbedits beautyproducts suchas Oil ofOlay with its prescription drugs, ina singleadvertising campaign. Thishelpedtocreateawarenessofthecompanysentirerangeofproductsandgeneratedsalesfor OilofOlay. 7.CorporateSponsorshipThisisalsoaformofcorporateadvertising,sinceacompanypaysto getitselflinkedwithsomesportingorotherevent,whereitgetstodisplayitslogoandcorporate message.Thiscreatesalotofvisibilityforthecompany. Examples Pepsi sponsors World Cup Cricket and Kingfisher sponsors the Derby, or the horse racingevent.Theirnamesarenowautomaticallyassociatedwiththesesportingevents. 12.3.3GuidelinesForEffectiveCorporateAdvertising As compared to productadvertising, corporateadvertising still accounts onlyfor a smallfractionof thetotaladvertisingbudgetinmostorganizations.However,thebenefitsderivedforacompanyfrom corporateadvertisingareenormous.Effectivecorporateadvertisingcreatesvisibility,promotesbetter understanding of the company, projects the company as a responsible citizen and improves consumer attitudestowards its products.When consumers and investors havea positive imageof thecompany,theirconfidenceinthecompanyincreases.Consumersaremorelikelytotryproducts
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fromacompanythattheyregardhighly,ratherthanfromafacelessornamelesscompany.Investors aremorelikelytobuysharesfromacompanyofwhichtheyhaveafavorableimage. Giventhebenefitsofcorporateadvertising,itmustbepreparedcarefullyandmadeasattractiveas possible.Somepointstobekeptinmindwhendevelopingacorporateadvertisingcampaignare * Adequate budget Corporate advertising is expensive, since it has to be done in a sustained manner. For example, Birla, Indias leading industrial house, has been doing corporateadvertising since itfirst started as a trading company. Corporate advertising is tobe lookedatas a longterm investment,becauseoftheadvantagesmentionedabove.Therefore,asubstantialamountneedsto besetasideastheadvertisingbudget. * Specific messages The message of a corporate advertisement needs to have a hard focus, clearlyhighlightingthecompanysobjectives,visionandnatureofbusiness.Productadvertisingon theotherhand,maysometimeshaveasofterfocus,throughtheuseofemotionalappeals. *CreativeandmemorableadsIfcorporateadvertisingistocreateapositiveimageofthe companyoveralongterm,ahighdegreeofcreativityisneeded,sothattheadvertisementsare rememberedforalongtimetocome. *EvaluationofeffectivenessItisimportanttoestablishclearcutobjectivesforcorporate advertising,suchasimagechangeorattitudechange.Thismakesiteasiertomeasurewhether theseobjectiveshavebeenachievedornot,afterthecampaignhasbeenrun.Corporateadsmust beevaluatedfortheireffectivenessfromtimetotime,sothatthemessagecanbefinetunedif needed.
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SelfAssessmentQuestion2 Matchthefollowing
3.Corporatesocialresponsibilityc.Companyviewpoint
4.Advocacyadvertisingd.Protectcorporatereputation 5.Crisiscommunicatione.PublicServiceAdvertising 12.3.4ProductAdvertising Product advertising, as defined earlier, has a purely commercial purpose and is a means through whichanorganizationcommunicateswithitsconsumers,topersuadethemtobuyitsproducts. In product advertising, the message must be persuasive enough to convince people to buy the product, or at least try it out once. Apart from the message, the medium must also be chosen carefully.Sometimes,themediumitselfisthemessage.Thismeansthatthemediumbyitself canconveycertainqualitiesabouttheproduct,withouttheneedforaverbalmessage.Takethe simpleexampleofaperfumethatisadvertisedinaglossy,colormagazineforhighsocietywomen. Themessageconveyed,evenwithouttheuseofwords,isthatitisapremiumqualityproduct,meant forthesophisticatedandtheelite. Like corporate advertising, effective product advertising can also build positive and lasting images overthelongrun. Example One of the best examples of this is the advertisement for Marlboro cigarettes, which features open spaces, an imaginary country and a rugged cowboy, with the caption Come to Marlborocountry.Themediumofadvertisingforthiscampaignisthebillboardorhoarding,asit
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is known in India. The visual of the cowboy and the open spaces creates a very masculine and ruggedimageforthecigarettebrand.Suchwastheimpactofthisvisual,thatevennonsmokerstook to smoking after seeing the advertisement. This campaign is several decades old, but has been sustained over time, without any changes. It is displayed on billboards across the world and transcendsculturalandgeographicalboundaries. Productadvertising,ifcreativeenough,hasthepowertocommunicateandpersuadewithoutwords, orwithminimumwordsandvisualimpact.Considerthefollowingexamples
An advertisement for Heinekin, a famous brand of beer, features a visual of the product with a singlelinecaptionthatsaysWhenyoumakeagreatbeer,youdonthavetomakeagreatfuss. The message conveyed is that the product speaks for itself and that words are not required to describeitsqualities. AnotherfamousadvertisementforChivasRegal,awhiskybrand,featuresavisualofbrokenpieces ofthebottle,withliquidflowingandwiththemessageHaveyoueverseenagrownupmancry? 12.3.5 FormatForProductAdvertising Allproductadvertisingcontainsapersuasivemessagethatfollowsaparticularformat,knownasthe AIDA format. AIDA stands for Attention, Interest, Desire and Action. This means that persuasivemessagesshouldachievethefollowing,inaparticularsequence *CaptureAttentionSincetheaverageconsumerisbombardedwithseveraladsatthesametime, heorshewillonlypayattentiontothoseadswhichstandoutabovetheothers.Therefore,attention gettingdevices should be used to make the consumer notice the ad. Asking a question to arouse curiosity, having a bold headline, making a dramatic statement, or mentioning startling facts, are someexamplesofattentiongettingdevices. ExampleAnadvertisementforahomeburglaralarmmentionssomealarmingstatisticsintheform ofadramaticquestion,rightatthebeginning
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Are you aware that over 5% of Indian homes were burgled last year? How can we protect ourselves? * Create Interest Once the reader or viewer has noticed the ad, it is important to create some interest in the product, by stressing the benefits to the consumer. One way of doing this is by selectingandstatingaUniqueSellingProposition(USP).Thisisauniquefeaturethatyourproduct alonehasandwhichoffersaspecificbenefittotheconsumer. For example, the USP of Clinic Dandruff Control Shampoo is that it contains an ingredient that moisturizesthescalpandpreventsdandruff.Or,acarmayincludeasafetydevicethatothercarsdo nothave.AUSPcreatesinterestbylinkingtheproductfeaturestotheconsumerbenefits. *InduceDesireAftercreatingbasicinterestintheproduct,apersuasiveadshouldtrytoconvince theconsumerthattheproductisjustrightforhim/her.Thisisachievedbyovercominganyobjections orproblemsthattheconsumermayhave,suchashighprice,difficultyininstallationorfunctioningof theproduct. ExampleTakingtheaboveexampleofthehomeburglaralarm,theadmighttrytoconvincethe consumerasfollows Are you worried that a smart burglar might disconnect the electricity? No problem, because our alarmhasbuiltinbatteriesthatensurethatitoperatesinspiteofpowerfailures. *MotivateActionThisistheclosing,wheretheconsumermustbeaskedtodosomething.There aretwotypesofclosinghardsellandsoftsell.Ahardsellclosing askstheconsumerto actimmediately,whichisusuallyintheformofbuyingtheproduct. ExampleBuynow,whilestockslastorBuynow,beforespecialofferends.
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ExamplesCometestdrivetheNano,toexperiencethesheerthrillofdrivingthecar,atanyofour dealeroutlets. Or,anadforafamousbrandofpaintwhichsaysWheneveryouseecolor,thinkofus. The format described above is also known as the Hierarchy of Effects, model, since it takes the consumerthroughdifferentmentalstagesinaparticularsequence,rangingfromunawarenessofthe producttolearningmoreaboutitandthenlikingitenoughtotryorbuyit. SelfAssessmentQuestion3 1.Productadvertisingcancommunicateeffectivelywithoutwords,throughchoiceofan appropriate___________________. 2.Interestinaproductcanbebuiltbydevelopinga______________ ______________________________________________. 3.AnothernamefortheAIDAformatisthe_________________________ ________________. 12.4Summary Externalbusinesscommunicationalsoinvolvescommunicationwithconsumers,themediaandthe publicatlarge,throughadvertisingandnewsreleases. A press release ora news release, isa story that highlightsnew developments in an organization andiscarriedfreebythemediuminwhichitappears.Itisaformofpublicity,whichisapartofpublic relations.Sincethemediumacceptstocarryit, ithasapowerfulimpactonpublicopinionandishighlycredible. Pressornewsreleasesmustbemadeinteresting,newsworthy,accurateandcomplete.Theyshould alsobewritteninaspecificformat,whichincludesthefollowingcomponents
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Theyshouldalsobevisuallyappealinganderrorfree. Unlike press or news releases, advertising is a paid form of communication and is used to communicate both about the organization and its products to consumers. There are two broad categoriesofadvertisingcorporateadvertisingandproductadvertising.Whilecorporateadvertising sellstheorganizationtoconsumersandotherpublics,productadvertisingsellstheproductsandhas apurelycommercialpurpose. Thebroadpurposeofcorporateadvertisingistoprojectafavorableimageoftheorganizationandto maintaingoodwillwithvariouspublics.Someofthespecificobjectivesare
Therearedifferenttypesofcorporateadvertising,dependingontheobjectivetobeachieved.Some ofthemaintypesare
1. Corporateidentityadvertising 2. Institutionaladvertising 3. Publicrelationsadvertising 4. Issueoradvocacyadvertising 5. Publicserviceadvertising 6. Corporateumbrellaadvertising 7. Corporatesponsorship Corporate advertising should be sustained over a long term, have specific, measurable objectives andevaluatedforeffectiveness,fromtimetotime.
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Productadvertisinghastheobjectiveofpersuadingtheconsumertobuy,ortotryoutacompanys product.Inproductadvertising,thechoiceofanappropriatemediumisimportant,sincethemedium by itself can communicate a message, without the use of words. Product advertising can also be madehighlyeffectiveandpersuasive,throughpowerfulvisualsandminimumwords. Productadvertisinggenerallyfollowsaspecificformat,knownastheAIDAformat,orthehierarchy ofeffectsmodel.Thisincludesthefollowingcomponents
TerminalQuestions 1.Identifyanyrecentdevelopmentinanorganizationofyourchoiceandwriteaonepagepress release,intheformatspecifiedinthisunit. 2.Selectarecentcorporateadvertisementfromanewspaperoramagazine.Whatisthespecific purposeoftheadvertisement?Whattypeofcorporateadvertisingisit? 3.Selectarecentproductadvertisementfromanewspaper,magazineortelevision.Analyzethe advertisementandexplainhowitcapturesattention,createsinterest,inducesdesireand motivatesaction. AnswerstoSelfAssessmentQuestions SelfAssessmentQuestions1
1. b 2. a
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3. e 4. c 5. d
SelfAssessmentQuestions3
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