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Assignment ~ 02
Assignment No 02
Describe the role of marketing communication mix whilst
highlighting the role and characteristics of each of the primary tool
of communication mix. Discuss the criteria that should be used for
selecting right communication mix and investigate the changes
happening in media and communication landscape.
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Table of Contents
Introduction:............................................................................................................... 3
Marketing communication Mix:................................................................................... 3
Role of marketing communication Mix:......................................................................4
1.
Nature of product:........................................................................................ 16
4.
5.
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Introduction:
Out of the thousands of brands on store shelves today, what is the chance that a
consumer will see any one particular item, much less buy it? In todays society,
consumers are rushed for time. They do not have any time to leisurely walk up and
down every aisle, perusing all of the wares. A brand may be of high quality or fairly
valued, but nonetheless it will fail to achieve sales and profit objectives if potential
customers are unaware of it or do not perceive it favourably. Effective advertising
and other forms of marketing communications are absolutely crucial to creating
brand awareness, establishing positive brand identities and moving products from
distributors, warehouses and off store shelves.
regardless of the nature of the products category or the type of the business,
marketing communications are key to a companys overall marketing mission and
represent a major determinant of its success; indeed, it has been claimed that
marketing and marketing communications are inseparable. : [M]arketing ........is
communication and communication is marketing. (Don.E., Schultz., et.al, 1993).
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Advertising
Print and
broadcast ads
Packaging-outer
Motion pictures
Brochures and
booklets
posters and
leaflets
Directories
Reprinting of ads
Billboards
Display signs
Audio-visual
materials
Symbols and
logos
Videotapes
Facebook, twitter
Sales
promotions
Contests,
games
Premiums and
gifts
Events/experi
ence
Public
Relations
Sports
speeches
entertainment
press- kits
Sampling
Fair and
tradeshows
festivals
Seminars
arts
Exhibitions
Demonstratio
ns
factory tours
Company
museums
street
activities
Annual reports
Charitable
donations
Coupons
Rebates
Entertainment
Tie-ins
Publications
Community
relations
Lobbying
Identity media
company
magazine
Personal
selling
sales
presentations
Direct
marketing
sales meetings
face to face
meetings
incentive
programs
mailings
samples
fairs and trade
shows
TV shopping
catalogs
telemarketing
electronic
shopping
Fax mail
e-mail
voice mail
facebook,
twitter
Figure 01: Common Communication Platforms Adapted from: Lane.K & Kotler.
P., .,(2006). 12ed.Marketing management 12e, Pearson Prentice Hall: new Jersey
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Table 02: Possible advertising objectives. Adapted from kotler.P., (2005)
Newspap
ers
Direct
mail
Magazines
Radio
Advertising
Mediums
Professional &
technical
magazines
Outdoor &
Transport
advertising
cinema
Television
Figure 03: Adapted from: Kotler. Philip, et. al (2005). Principles of Marketing ,
Pearson Education Limited: England.
Newspapers: Faster and more efficient circulation is possible. Many
international newspapers e.g.; International herald Tribune, financial Times,
Asahi Shim bun, Wall Street Asian, Jung, are printed simultaneously in many
countries.
Magazines: Many journals and magazines carry ads that target regional,
international or global customers. Examples are Fortune, The economist.
Many womens magazines such as Cosmopolitan, Elle, Vogue, and Harpers
Bazaar are printed in many countries in many languages.
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Advertisers use a vast array of techniques to present their brands in the most
favourable light and persuade customers to contemplate purchasing these brands.
Frequently employed techniques are:
Informational ads (such as automobile ads in the classified pages of the
newspaper)
Humorous executions (e.g; Little Caesar Pizza ads)
Sex appeals (e.g. Calvin Klein ads)
Celebrity endorsements ( e.g.; using ex-athletes such as Michael Jordan or
some entertainer like bill Cosey)
Various emotional appeals (nostalgia, romance, excitement etc)
Effective advertising is usually creative. Advertising which is the same as most of
the other advertising is unable to get customers attention and is unable to break
through the competitive clusters. ( Jewler. J.A , 1985) some of the examples of
creative and effective advertising are:
The long pink bunny campaign for Energizer batteries
Absolut vodkas continuing campaign that focuses on this brands hip image.
The milk-mustache campaign that associates drinking milk with a wide
variety of interesting and respected celebrities.
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4. Advertising adds value to brands by influencing consumers perception. it
causes brands to be viewed as more elegant, more stylish, more prestigious.
When advertising is done effectively, brands are perceived as higher quality
or of better value, which results in increased market share and greater
profitability. It is little wonder that Proctor & Gamble, leading consumersgood firm fully appreciates advertising value-adding role. Vice President of P
& G , hence, characterized strong advertising as deposit in the brand equity
bank. (Sanisi. J., 1992)
5. On the one hand, advertising can be used to build up a long- term image
for a product (such as Mercedes-Benz ads). On the other hand, advertising
can trigger quick sales (as when department stores like Debenhams and
Selfridges advertise a weekend sale. (Kirmani. A., 1990)
6. Advertising can be considered as an economic investment. Some American
companies invest over $1 billion a year on domestic advertising. in the year
1997, for example, proctor & gamble spent $2.6 billion; General Motors spent
$2.4 billion, Time Warner spent $1.4 billion. (Advertising Age, September 29,
1997, p 04)
Demerits of advertising:
1. Although it reaches many people quickly, advertising is impersonal and
cannot be as persuasive as company salespeople.
2. Advertising is only able to carry on a one-way communication with the
audience, and the audience does not feel that it has to pay attention or
respond.
3. In addition, advertising can be very costly. Although, some advertising
forms such as newspapers and radio advertising can be done on smaller
budgets, other forms, such as network TV advertising, requires very large
budgets.
4. In most of the cases, managers and the advertisers have to rely heavily on
large doses of judgement along with more quantitative analysis when they
are setting advertising budgets. This intuition based advertising budget may
not be always right. (Ehrenberg. A., et.al .,1997)
5. Some critics claim that large consumer companies use lots of image
advertising extensively without really knowing its effects and they overspend
as a form of insurance against not spending enough.
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Advertising in contrast with sales promotions offers the reasons to buy the product
where as sales promotions offers the reasons to buy now.
Sales promotions includes the wide variety of promotion tools designed to stimulate
earlier or stronger market response. It includes:
Consumer promotionsamples, coupons, rebates, prices offs, premiums,
contests, and others.
Trade promotion-- buying allowances, free goods, merchandise allowances,
cooperative advertising, push money, dealer sales contests etc.
Sales force promotionsbonuses, contests, sales rallies etc.
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sampl
es
Lotteri
es and
game
s
coupo
ns
Compet
itions,
sweep
stakes
cash
Sales promotion
Tools
Point
refund
offers
price
of
purchas
e
packs
Advert
ising
specialiti
es
premi
ums
Figure 04: Adapted from: Kotler. et.al (2005). Principles of Marketing. 4th edition.
pearson education limited: England: Harlow.
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promotions efforts. For example, one companys 50 cents-off coupon loses
much of its appeal when a competitor simultaneously comes out with a $1
coupon.
(Schultz.D & Robinson. W., 1986)
6. Moreover, sales promotions can build customer relationships. examples
include all the frequency marketing programs, loyalty card schemes and
clubs that have mushroomed in recent years.
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3: Direct Marketing:
Direct marketing is the use of consumer-direct channels to reach and deliver goods
and services to customers without using marketing middlemen.
Companies now a days are trying to increase the productivity by reducing the
personal selling and are seeking to substitute it by mail-and phone by selling units
to reduce the field expenses. Sales produced through traditional direct marketing
tools have been growing rapidly. Whereas US retail sales grow around 3 percent
annually, catalog and direct mail sales grow at double that rate.
all types of marketers use direct mail as a strategically important advertising
medium. Business week magazine claims, albeit with some hyperbole, that
marketers of all types of consumer goods are turning from TV box to the Mail box.
(Business week, 1991)
Some of the tools of direct marketing are as follows:
Direct
mail
Mobile
device
s
Catalo
gs
Website
s
Telemarket
ing
kiosks
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Interactiv
e TV
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Figure05: Adapted from: Czinkota. M. et.al (2000).
4: Personal selling:
Czinkota. M. et.al (2000) defined personal selling as Direct oral communication
designed to explain how an individuals or firms good, services, or ideas fit the
needs of one or more prospective
Personal selling is one of the most important elements of the promotional mix and a
critical activity of marketing management. It is also one of the most expensive form
of promotion that a firm can undertake.
The selling environment in concern with selling types is in following sheet:
Selling
Environments
Over the counter
Field Selling
13
Selling Types
Order taker
Order Getter
professional sales
people
national Account
managers
Missionary sales
people
support salespeople
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Telemarketing
Outbound
Inbound
Figure 06: selling environments and types of selling in Czinkota. M. et.al (2000).
Marketing best practices: The Dryden Press, Harcourt College Publishers: USA.
5: Personal Relations :
Personal relations is building new relations with the companys various publics by
obtaining favourable publicity, building up a good corporate image and handling or
heading off unfavourable rumours, stories and events. (Kotler.P; Wong Veronica;
Saunders. J;Armstrong Gary.,2005)
Personal relations involves a variety of programs designed to promote or protect
a company image or its individual products.
PR is similar to advertising because both are forms of mass communication; the
difference is that the publicity generated by PR receives free news space or air time
in comparison to the paid-for-space and time in the case of advertising.
Some tools of the Public relations are as follows:
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Speeche
s
special
events
news
Sponsorshi
p
public
service
activiti
es
Tools of
PR
corpora
te
identity
materia
ls
written
materials
audiovisual
materials
Characteristics of PR:
1. Press relations: Presenting news and information about the organization in
the most positive light.
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2. Product publicity: Sponsoring efforts to publicize specific products. for
example different brands have their own ambassadors , which are popular
celebrities , such as Christiano Ronaldo sponsored by CK.
3. Corporate communications: promoting understanding of the organization
through internal and external communications.
4. Counselling: Advising management about public issues and company
positions and image during good times and bad.
5. Assisting in the launch of new products: The amazing commercial
success of toys such as Teenage Mutant Ninja Turtles, mighty Morphin Power
Rangers, Beanie babies,
6. Assisting in repositioning a mature product: New York City had
extremely bad press in the 1970s until the I love new York campaign.
7. Influencing Specific target groups: McDonalds sponsors special
neighbourhood events in Latino and African American communities to
produce good will.
8. Defending Products that have encountered public problems: PR
professionals must be adept at managing crisis, such as the Coca Cola
incident in Belgium over allegedly contaminated soda, and Fire stones crisis
with regard to the tire tread separation problem.
9. Building the corporate image in a way that reflects favourably on its
product: Bill Gates speeches and books have helped to create an innovative
image for Microsoft Corporation.
10.Dramatization: Public relations has the potential for dramatizing a company
or a product.
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Moreover, in determining an appropriate mix of marketing communications
elements, the product or brand manager must weigh the variety of factors related
to the category, brand and the market. A marketing manager should consider it first
whether the entire budget goes towards the supporting of sales force or should
some of it be allocated to the television advertising? Will coupons or bonus packs or
gift vouchers help to move a product more? There is no right formula. The decision
could be guided by addressing the following issues.
CONSUMER GOODS
INDUSTRIAL GOODS
Advertising
Sales promotion
Personal
selling
Public
relations
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Personal selling
Sales promotion
Personal selling
Public
relations
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Relative importance of promotional tool
Relative
importance of
Promotional tool
Figure 08: Relative importance of promotion tools in consumer versus industrial
markets Adapted from: Armstrong.G.,(2005).
2. What are the objectives/the hierarchy of effects and determining the
consumers when they show purchase intention?
Figure 00: presents the framework, which is called as hierarchy of effects that
provides a useful way of thinking about the objectives that marketing
communication is designed to accomplish. Different stages in hierarchy are
best understood by examining actual communications situation. Consider
again the magazine advertisement that was presented in the opening vignette
(Gardenburgers Equity-Enhancing Effort). In the case of Gardenburger
efforts, they created consumer awareness by presenting a small story about
Lucy the lion tamer wanting to eat a meaty burger but not wanting lions to
smell meat on her breath. Moreover, consumer awareness is not only the
single factor; advertising should persuade the consumers that in reality,
Garden burger veggie patties taste like real meat. Other clever fictive devices
are designed to influence consumers beliefs/knowledge to encourage the
formation of positive attitude and purchase intentions towards the product.
The process is shown in the following figure No 09:
Purchase
Purchase Intention
Attitude
Beliefs/Knowledge
Awareness
Unawareness
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uses mass media advertising to pull its products, and a large sales force and
trade promotions to push its products through the channels. It all depends on
the nature of the market and the product for which strategies to use, be it
push, pull or both and the product life cycle.
(Armstrong.G & Kotler.P., 1994)
PUSH STRATEGY
Producer marketing
Resellers
activities
Produc
er
(Personal selling,
Consum etc)
advertising
ers
PULL STRATEGY
Demand
Retailers
Consum
&
ers
Wholesal
Producer marketing activities
(Consumer advertising, sales
promotions and other)
Figure 10: Push versus Pull strategy Adapted from: (Kotler.P; Wong Veronica;
Saunders. J;Armstrong Gary.,2005)
Produce
r
Demand
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The effects of the promotional tools vary for the different buyer readiness stages.
(Armstrong. G, 1994)
Liking
Preference
Conviction
Purchase
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Growth stage of product: The marketing tools which should be used are more
advertising, public relations, branding and brand marketing, and personal selling for
distribution of the product or brand.
Maturity stage of product: Not much advertising be done at this stage. Some
reminder and persuasive techniques should be used the marketing tools to make
the consumers and other customers realize that you do sell too.
Decline stage of product: Advertising and public relations decreases at this point.
Limited sales promotion can be used depending on the nature of product. Personal
selling should be used as the tool for distribution of product.
(Dolak.D., 2009)
To reach target markets and build brand equity, holistic marketers are
creatively employing multiple forms of communications. In Introducing the
Mini cooper which originally was sold for only seven years and withdrawn in
1960s due to stiff emission regulations and introduced in market again in
March 2002, BMW did not even use TV advertising. Different poster ads for
Mini Cooper proclaimed unusual texts as THE SUV BACKLASH OFFICIALLY
STARTS NOW, GOLIATH LOST, XXL-XL-L-M-S-MINI, PONY-UP. WITH A
SMALLER AMOUNT OF PONY etc. (Levin.K. & Kotler. P., 2006)
Two of the poster ads examples are as follows:
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Figure 13: Adapted from: http://images.google.co.uk/images?
um=1&hl=en&rlz=1I7ADBR_en&tbs=isch:1&q=Mini+cooper+ads&sa=N&start=80
&ndsp=20 , Accessed on: March 10, 2010.
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and higher and now they are not even the double in spite much much more than
that. (Network Wizards)
The fundamental consequence of this integration is that the traditional emphasis on
heavy-weight mass communication campaigns (so-called above-the-line) has been
replaced by more direct and highly targeted promotional activities using direct
marketing and other tools aimed to reach the smallest of all target groups and the
single individual. (Engel, Et.al, 1994)
Suitability of modern marketing percentage superiority over traditional marketing to
meet the objectives of marketing communication mix could be seen in the following
table:
Traditional
communication
46
54
58.2
87.8
41.8
12.2
75.2
24.8
83.8
16.2
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deliver brand experience
68.3
31.7
Purchase phase
directly increase sales
74.9
25.1
Loyalty phase
Increased brand loyalty
81.3
18.7
Improve customer
retention
84.7
15.3
Figure 14: Suitability of live communication to meet the objectives of marketing
communication: Adapted from: Kirchgeorg. M et.al (2010). Objectives for
successfully participating in trade shows: Journal of Business and industrial
marketing. 25/1 (2010) pp 63-72. Emerald Publishing Limited. [ISSN-0885-8624]
Proforma, a franchise business that provides promotional products, is spending a
couple of millions dollars to create a custom software system for its database
marketing, as is said by Banning the concerned person at Proforma. In his view
Twitter and LinkedIn are helping in making more of their annual sales. Marcy
Shinder, VP-brand manager at American Express OPEN, expressed on the
changes of landscape. In her view the marketers in old economy had time to rely
on agencies and partners to package thinking and to present points of views on the
latest trends. But the new economy is moving so rapidly, Marketers to keep pace
with the fast moving trends, have to work hard on the research and on the
advertising communication mix for which one to use, to make that brand more cost
effective in less possible time. (Maddox.K, 2009)
Another example is of Virgin America airlines, where people once only griped
about their lost bags, crowded flights and cattle-call boarding. Virgin America flyers
are now tweeting and telling anyone who will listen about in-flight Wi-Fi, spacious
leather seats, mood lighting, and in seat food and beverage ordering through touch
screens control panels. They began their new operations little over two years ago
and are now enjoying the emails receivings and other feedback from customers
wishing that may their flights would have lasted longer. All this was made possible
by relying heavily on the marketing mix as on PR, social media, word-of-mouth and
partnerships with properties such as Google and HBOs entourage. (Bush.M, 2009)
One other example of changing media is of viewers of recent episodes of Warner
Bros. syndicated Ellen DeGeneres Show watched as Jeannie, one of the programs
production assistants, drove across the country in a new 2010 Terrain from General
Motors GMS. But fans that follow the shows twitter feed, @ The Ellen Show, also
had the chance to participate in a gas-card giveaway from GMC. As of Nov. 06,
2009, Ms Degeneres has 3.6 million followers on Twitter, third only to Ashton
Kutcher and Britney spears, Warner Bros said. (SteinBerg. B., 2009)
Conclusions:
Out of the thousands of brands on store shelves today, what is the chance that a
consumer will see any one particular item, much less buy it? In todays society,
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consumers are rushed for time. They do not have any time to leisurely walk up and
down every aisle, perusing all of the wares. A brand may be of high quality or fairly
valued, but nonetheless it will fail to achieve sales and profit objectives if potential
customers are unaware of it or do not perceive it favourably. Some of the promotion
mix (Kotler, 2005) consists of specific blending of advertising, personal selling, sales
promotion, public relations, and direct marketing tools that are used by company to
pursue its advertising and marketing objectives and to reach the customers in this
busy world. The traditional role of marketing communications was largely concerned
with providing the mechanism by which the features and benefits of the product or
the service could be promoted as inexpensively as possible. Today these, marketing
communication play different roles, as in Advertising is a form of communication
intended to persuade an audience (viewers, readers or listeners) to take some
action. When advertising is done effectively, brands are perceived as higher quality
or of better value, which results in increased market share and greater profitability.
Some demerits of advertising are being impersonal, one-way communication,
and more over advertisers have to rely heavily on large doses of judgement.
Sales promotions are the tools of marketing, which are added benefits offered by
the companies to encourage the purchase or sales of a product or a service.
Advertising in contrast with sales promotions offers the reasons to buy the product
where as sales promotions offers the reasons to buy now. Other marketing tools are
direct marketing, personal relations, personal selling etc. Direct marketing is the use
of consumer-direct channels to reach and deliver goods and services to customers
without using marketing middlemen. Personal selling is one of the most important
elements of the promotional mix and a critical activity of marketing management.
Because personal selling is instrumental in generating revenue for an organization,
sales management requires the skills of planning, directing, controlling and
implementing the personal selling function, which could be too expensive at times
and not too efficient. To be sure, the internet and other web tools promises exciting
marketing communications potential. However, marketers trying to use the web
alone to build brands face many challenges. One limitation is that the internet does
not build mass brand awareness. The web simply cannot match the impact of World
cups, Olympic games or six nation Rugby, where tens of millions of people see the
same 30-second Nokia or Nike-ad at the same time. Instead, it is like millions of
private conversations. Using the web only, it is hard to establish universal meanings
such as Nokia connecting People or Just Do It that are at the heart of brand
recognition and brand value. For using the web based tools or internet, the
marketing communication should be integrated with other marketing
communication mix to make the customers aware at the most possible level and to
make them realize the attributes of the product so they could choose it. IMC
produce better communication existency and greater sales impact. They lead to a
total marketing communication strategy aimed at showing how the company and its
products can help customers solve their problems.
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List of References:
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Brandweek, February 17, 2003.
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don. E. Schultz, how much should you spend on advertising? Advertising
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