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Chapter-13.
Developing & Managing Advertising.

CHAPTER \u2013 13.
DEVLOPING & MANAGING ADVERTISING:
Advertising:

\u2022
Any paid form of non-personal presentation/promotion of ideas/goods/services by an
identified sponsor.

To develop an advertising program, starting point is:
Identifying target market.
Clarity on buyer motive/buying motive.

Once this is clear marketer can then take five major decisions in developing the advertisement
program (5M\u2019s):
Mission
: What are advertising objectives?
Money
: How much can be spent?
Message
: what message should be sent?
Media
: What media should be used?
Measurement : How should result be evaluated?
Diagrammatically shown as:

Advertising objectives\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..:
Target markets.
Market positioning
Promotions objectives.
Marketing communication mix //promotion mix Marketing Mix Decisions
Other marketing mix decisions.

1
MISSION

Sales Goals Advertising Objectives

MONEY

Factors are:
PLC Stage.
Market Share &
Consumer base.
Competition.
Ad Frequency.
Product Substitution.

MESSAGE
\u2022
Message
Generation.
\u2022
Message
Evaluation &
Selection.
\u2022
Message
Execution.
\u2022
Social
R e s p o n s ib ility .
MEDIA

Reach Freq/ Impact.
Media Type.
Media Vehicle.
Media Timing.
Geographical Media
Allocation.

MEASUREMENT
Communication Impact.
Sales Impact.
Chapter-13.
Developing & Managing Advertising.
Above objectives categorised into: Decided based on\u2026.above + current market situations.
Information Advertising:
Used primarily to inform target about product offering.
\u2013 Build primary demand.

Information could be about:
New product.
New uses of a product.
Price changes.
Explain how product works, etc\u2026

Persuasive Advertising:
Used mainly in competitive stage to build selective demand/preference for a Brand.
Persuasion could be about:
Building brand preference.
Encouraging switch to brand.
Change buyers perception of product attributes.
Comparative advertising to build cognitive & offer motivation simultaneously.
Reminder Advertising:
Used for mature products.

Messages could be about:
Reminding buyer\u2019s that they may need it in near future (off season ads).
Reminding buyers where to buy it.
Reinforcement advertising: Assure current buyers.

Deciding the Advertising Budget:

Role of Advertising is to increase demand to a level so as it fulfils sales goals
For this, co. needs to know whether it is spending the right amount/ too much/ too little
To set appropriate advertising budget factors to be considered are:

PLC Stage:
New products need large advertising budgets.
Established products may need lower advertising as a % of sales
(Supportive advantage).
Market share/Consumer Base:
To build mkt share by increasing mkt size requires a larger budget
High mkt share brands require lower advtg as a % of sales
Competition /Clutter:
If number of competitors are increasing with high advertising spending, then
company also needs to counter resultant Ad clutter with heavier Ad spending.
Ad Frequency: Number of repetitions required to put across message has a
direct impact on ad spend
Product Substitutability: If a product is easily substitutable then it requires higher
advertising to establish brand equity/ diff. image. E.g.: Soft Drinks.
2
Chapter-13.
Developing & Managing Advertising.

In addition to above Ad budget may be decided based on:
Vidale Wolfe Model
Adaptive Control Model (John Little)

VIDALE WOLFE MODEL:

Ad spend- Function (Sales response rate, sales decay, untapped sales potential).
Sales Response: Link between sales & Ads.
Sales Decay: Rate at which customer forgets its message/Advertising & brand.
Untapped Sales Potential: Customer target group from profits which is yet to buy

product category.
ADAPTIVE CONTROL MODEL:

Market broken up into 3 geographic entities/territories.
Three different levels of Ad spending undertaken in each territory (Low /medium/high).
Results of advertising tracked in each territory.
Information thus obtained is used for planning ad spending in next period.

C hoosing the Advertising Message:
Good advertising campaign message needs high level of creativity.

To develop a creative message, advertisers go through following steps:
Message generation.
Message evaluation/ selection.
Message execution.
Message social responsibility review.

Message Generation:
The principle products should convey the major benefit that brands offers & should be

delivered along with the product concept.
In practice, even with the same product concept there may be multiple ways of conveying a
message.
Also over a period of time the marketer may think of changing message.
Hence message generation requires a highly creative effort.
Creativity could be guided by:

Induction
Induction + deduction
Inductive Framework:

This involves in depth interviews of customer groups to understand:
What kind of people they are?
How they would use the product?
Why would they buy it?
Their feelings about strengths/weaknesses of competitor\u2019s brands.

Interviews may also cover:
Dealers/distribution.
Experts.

3
Aids to develop creative messages.
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