Advertising

•Meaning The word advertising has originated from the latin

word "Adverture" which means to turn the mind towards It
includes all the activities directed towards attracting the
attention of the people towards something
•American marketing Association:"Any paid form of non
personal presentation and promotion of ideas, goodsor services
by an identified sponsor
•Sidney Bernstein (1990)"Advertising act as a substitute for the
human activities of salesmanship"
• Russel Veril-” Advertising is a message paid by identified
sponsor and delivered thru some medium of mas
communication
• Jones" A sort of machine made mass production method of
selling which supplement the voice and personality of the
individual
 Nature of advertising
1. Mass communication
2. Commercial Communication/ Non Commercial
3. Non Personal communication
4. Identified sponsor
5. Informative in action
6. Impersonality
7. Promotion of goods, services and ideas
8. Public presentation
9. Persuasiveness
10. paid for
11. Competitive act
12. Creative act
13. controlled by a sponsor
14. creates prospective consumer
15. A form of presentation
16. Amplified expressiveness
 Classification of advertising
• Audience: Consumer, Trader etc.
• Advertiser: National, Regional, Zonal, Local
• Media-paper ads, Radio ads, TV ads, Net Ads etc…
• Function: Pd ads, services, Direct action etc.
• Objectives, informative, comparative, innoculative ads, refutational ads,
reminder ads, Image building Ads
• Presentation style: Display Ads, Classified Ads
• Strategy: Primary , Secondary, Push and Pull Ads
• Approach: Focused, Utilitarian, Informative, Achievement, Non specific etc.
Types (examples)
Product Ads
Corporate Ads
Service Ads
Business Ads
National ads
Retail Ads
Public service Ads
Display Ads.
Classified Ads.
Classified ad Displayed Ad
   
Space getting space for the such ads in print media Not easy
easy  
 

Cost less High

 

Done by individual concern Done by big business houses and firms

Aim immediate sale of goods Aim brand loyalty

Ad. Planning does not exit It exists

Life of such ad is less Life is more

Not very attractive Very attractive

No creativity Very high creativity

Color used is black and white Multicolor

No illustration Illustration with real photo and cartoons

 Evolution of Ads.
Stage I: Ancient times to the fifth century
1. Greeks and Romans created way to Ads
3. Criers and barkers,
3. Wall signs for identification
4. Theatrical performances, gladiator shows and exhibitions
Stage II 5th to 8th century
1. Dark age (475 AD to 800 AD) downfall of Roman Empire was a period of gloom
for ad
2. Lack of literacy
3. Public barkers equipped with horns and bell
StageIII 9th to 15 th century
1. Free sample started by Gries Davarns in 13th century
2. Printing developed in China
3. Printed poster, handbill, pamphlets books newspaper
Stage IV 16th to 17th Century 
Newspaper, Newsletter, News books, Advertising periodicals, announcements came
into force
 Evolution of Ads contd..
Stage V 18th to 19th century
1. 1840 Space selling in newspaper for ads startd in newyork
2. 1875-1st Ad agency named N.W> Ayers and SOns was set up in Philadelphia
3. Industrial Revolution -Ad had a good place
4. magazine and catalogue
Stage VI 20th century
1. Depression year 1930 ad volume dropped 25% in single year
2. World War II (1940-46)-Production of consumer goods subordinated to the
manufacturer of tank planes etc.
3. Motivation A new type of research called motivation emerged indicating the use
of psychology in advertising
4. Rosser Reeves invented USP in Ads
Stage VII Creative Revolution (1960-70)
Leo Burnett, David Ogilvy Spearheaded a creative revolution in ad.
Stage VIII the positioning era (1970-1980)
It means differentiating the product from the competitors in the mind through the
help of ad.,
Advertising Management

-The issues…
 The three phases…
• The Advertising Planning

• Implementation

• Evaluation and control

 Ad Planning …
Situation Analysis

Marketing Program
The
persuasion/
Objective setting/ segmentation/Positioning
communica Advertising Plan Message Strategy and tactics
tion matrix
Media Strategy and Tactics

Framework of Advertising planning and decision making

Major
Major Decisions
Decisions in
in Advertising
Advertising
Objectives
ObjectivesSetting
Setting

Budget
BudgetDecisions
Decisions

Developing
DevelopingAdvertising
AdvertisingStrategy
Strategy Developing
DevelopingAdvertising
AdvertisingStrategy
Strategy
Message
MessageDecisions
Decisions Media
MediaDecisions
Decisions

Campaign
CampaignEvaluation
Evaluation
Advertising Plan
• Establishing advertising objectives
• Selecting ad message
• Set the ad budget
• Develop the media strategy
• Evaluate ad effectiveness
How to Plan for campaigns
CAMPAIGN PLANNING
1. Set Advertising Objectives
2. Set the budget
3. Determine the creative strategy
4. Select the Advertising media
5. Evaluate the results of the Ad campaign
 Setting
Setting Advertising
Advertising
Objectives
Advertising Objectives
Objectives
• Specific Communication Task,
• Accomplished with a Specific Target Audience,
• During a Specific Period of Time.

Informative
Informative Advertising
Advertising Persuasive
Persuasive Advertising
Advertising
Build
BuildPrimary
PrimaryDemand
Demand Build
BuildSelective
SelectiveDemand
Demand

Comparison
Comparison Advertising
Advertising Reminder
Reminder Advertising
Advertising
Compares
ComparesOne
OneBrand
Brandto
to Keeps
KeepsConsumers
ConsumersThinking
Thinking
Another
Another About
AboutaaProduct.
Product.
 Establishing objectives
• Consideration in Setting Objectives
Target Market, Product, Competitive Factors,
Competency factors(positioning issues)
• Ad. Objectives can be into two categories
Sales Objectives-Action obj.
Communication objectives- Awareness objectives,
Comprehension objectives, Conviction obj.,
• To get attention
• To create awareness and encouraging information search
• Persuading/ Prompt direct action
• Reminding or reinforce attitudes
• Relate the product needs
• Modify attitudes etc…
 Establishing objectives
( on the basis of Paul Harper’s observations)
To
• Induce trial
• Intensify usage
• Sustain Preference
• Conform imagery
• Change Habits
• Build awareness
• Make announcements
• Make or build acceptance
• Improve and sustain corporate image
 The advertising briefing …
• Marketer –Adman interaction
• Detail of the project management
• Present status-desired status
• Plan of action
• Defined target audience
• Paramaters of measurement
• Practicalities-budget, deadlines etc.
• Approvals.
Developing
Developing Advertising
Advertising Strategy
Strategy
Creating
Creating Advertising
Advertising Messages
Messages

Plan
Plan aa Message
Message Strategy
Strategy
General
GeneralMessage
Messageto
toBe
BeCommunicated
Communicatedto
toCustomers
Customers

Develop
DevelopaaMessage
Message
Focus
Focuson
on
Customer
CustomerBenefits Creative
Benefits CreativeConcept
Concept
“Big
“BigIdea”
Idea”
Visualization
Visualizationor
orPhrase Advertising
Combination
Phrase AdvertisingAppeals
Appeals
Combinationof ofBoth
Both Meaningful
Meaningful
Believable
Believable
Distinctive
Distinctive
Creative Strategy…
(The Message)
• Creative Strategy –guideline for ad
specialists
• It gives details about-kind of message, to
whom and in what manner
• It should define target audience, product
concept, communication media and the
advertising message.
 Types of Creative Strategy
• Generic Strategy
• Preemptive Strategy
• USP strategy-high tech pds.
• Brand Image strategy-low tech pds.
• Positioning strategy
 Creative Strategy…
Some components of the creative strategy
• The creative objective
• The target market
• PSP
• ESP/SSP
• Support arguments
• Tone and Manner-appeals
 Developing
Developing Advertising
Advertising Strategy
Strategy
Message
Message Execution
Execution
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Animation
Animation

Testimonial
Testimonial Slice
Sliceof
ofLife
Life
Evidence
Evidence
Scientific
Scientific
Evidence
Typical
Typical Lifestyle
Lifestyle
Evidence
Message
Message
Technical
Technical Execution
Execution Fantasy
Fantasy
Expertise
Expertise Styles
Styles
Personality
Personality Mood
Moodoror
Symbol
Symbol Image
Image

Musical
Musical
 Advertising appeals
•An appeal is the manner in which an message is developed and
expressed, to derive a particular consumer response or influence
decision making
Depends on
• objective of the advertisement
•The product
•The creative brief
• time frame
Advertising appeals can be broadly divided into three categories
•Rational Logical Appeal
•Emotional Appeal
•Others appeal
 Advertising appeal…

Advertising Appeal

Rational Appeal
•Humour appeal Star appeal
• Price Appeal
•Fear appeal Reminder ads
•Quality appeal
•Feature appeal •Music appeal Teaser appeal
•CA appeal •Sex appeal
•News appeal
Creative Strategy…

Appeal Examples

Affiliation appeal Cigarettes, softdrink

Security Appeal Insurance, umbrella wollen

Social Appeal Lions club memebership

Comfort appeal Furniture, grinder calculator

Envy appeal Wardrobe cosmetics

Fashion Appeal Readymade garments, trendy tops and t-

Shirts
Sex and romeace appeal Honeymmon package

Greed appeal Free gift, discounts

Curiosity appeal Books, games, tourist destinations

Competence appeal Equipment for doctors

Prestige appeal Mercedes car

Love appeal Give youyr family a loving care of dettol

Thrill appeal Coca Cola Ads

 The Creative Tactics
• Idea Generation-refer NPD
• Copywriting -Copy writing in print is the
activity of actually putting words in to
paper particularly those contained in the
main body of the text but also including
attendant bylines and headlines –Headline,
Subhead, Bodycopy, Slogan, Logo, Visuals
Copywriting in Broadcast Media refers to
complete script, jingle, music, etc.
 The Creative Tactics
• Important guidelines for copywriting by John Caples member of Advertising Hall of Fame
• Cash in your personal experience
• Organize your experience
• Write from heart
• Learn from experience of others
• Talk to the client
• Study the product
• Study the competitors ads
• Study testimonials
• Give final touch
• Illustration: made by artists by generating pictures, charts,
tables,graphics for drawing attention
It can include logo, graphics etc.
The visuals can be created by a no. of ways- hand Made paintings, Clip Art,
Photographs, computer generated visuals
 The Creative Tactics
• Layout: An ad layout is preliminary sketch or plan
that gives a feel of the overall appear. The layout
activity involves bringing all the pieces together
before ad is sent out for production. It involves
decision as to how the various components of
headlines, illustrations, copy and identification
marks are to be arranged and positioned on the page.
The layout design passes through several stages:
• -Thumbnail
• -preliminary layout
• -comprehensive layout
 The Creative Tactics
Layout design decides the readability and effectiveness of
the ads.The design governs the placement and structure
of the Ads Designs are governed by Principles:
-Balance
-Proportion
-Gaze Motion
-Unity
Layout prep. concepts
Choosing Page design-
Ayer #1-large/ big picture little text
Mondrian
 The Creative Tactics contd…
Type specimen
Copy heavy
Rebus-lot of pictures, photos, diagrams are used at
the end little text is added
Circus-bold headline, colur usage
Frame.

Working with the copy-type face, font , size etc.

Working with the visuals
 Creative Process in Audi-Visual
• Idea Generation

• Copywriting

• Illustration

• Layout

• Copy testing & Diagnosis

 The Ad production process
• Conceptualization
Ad objectives, target market, the budget- message
and media strategy is devised.

• Execution

• Evaluation
Setting Advertising Budgets

Affordable Percentage-of-
Method Sales Method
Setting Promotion Setting Promotion
Budget at the Level the Budget at a Certain %
Company Thinks They of Current or
Can Afford. Forecasted Sales

Competitive-Parity Objective-and-Task
Method Method
Setting Promotion Setting Promotion
Budget to Match Budget by Defining
Competitors’ Outlay Objectives, Tasks &
Costs.
 Media Planning process
• Environment analysis
• Media Objectives:Reach, freq, Continuity, Costs
(cpm, cpt)
• Media strategy- Target market decisions, media
budgeting, media selection(refer OHP handout),
media scheduling-(space,time, no.of insertions,
size,cost)
• Implementing and following the media plans
 Media Characteristics
• Reach and Frequency-Penetration, coverage
and flexibility
• Circulation and readership
• Selectivity-Geographic and Class
Selectivity (Demo and Psychographic)
• Cost-Milline rate-100000*Rate per
line/Circulation, cpm-cost per millenium
• Editorial Character
 Developing Advertising
Strategy
Selecting Advertising Media
Step
Step1.
1. Decide
Decideon
onReach,
Reach,Frequency,
Frequency,
and
andImpact
Impact
Step
Step2.
2. Choosing
ChoosingAmong
AmongMajor
MajorMedia
MediaTypes
Types
Media
MediaHabits
Habitsof
ofTarget
TargetConsumers
Consumers
Nature of the Product
Nature of the Product
Type
Typeof
ofMessage
Message
Cost
Cost
Step
Step3.
3. Selecting
SelectingSpecific
SpecificMedia
MediaVehicles
Vehicles
Specific
SpecificMedia
MediaWithin
WithinaaGiven
GivenType,
Type,i.e.
i.e.TV’s
TV’sER.
ER.
Must Balance Media Cost Against Media Factors:
Must Balance Media Cost Against Media Factors:
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality

Step
Step4.
4. Deciding
Decidingon
onMedia
MediaTiming
Timing
Scheduling
Schedulingof
ofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern
Patternof
ofAds:
Ads:Continuity
Continuityor
orPulsing
Pulsing
 Different
• Newspaper Ads.
Media and advertising
-40% of spending in ads are absorbed by N/P
-In india it is 52%
-Third only in circulation 57.84 m ( China & Japan)
-N/P categorized on basis of freq, geog coverage and subject
area
Adv.Flexibility, credibility, local market coverage, reach &
Selectivity, scope for detailed info, scope of feedback, low
cost.
Disadv.: Shorter life, problems of demo, literacy barriers,
spotty reading, competition with news, lesser impact on
youth, editorial character, poor reproduction quality
 Different Media and advertising
• Magazine Pbl.
Indian companies spent 12% of their advertising budget on magazines
Consumer pbl.
Business Pbl.
Adv.
Longer life span
Credibility
High geog and demo selectivity
High reproduction quality
multiple readerships
Disadv.
Higher ad rates
Longer lead time
Clutter
Low reach
Media space buying-full page, half page, 2/3 page and 1/3 page, formt page
back page etc.
 Different Media and
advertising
• Introduced in 1923, preferred till the point TV came
• Spending on Radio ads cameRadiodown to 2%
• Radio listening is not well developed, though channels
like FM, Radio Mirchi are trying draw crowd.
• Advantages-Wide and area specific coverage, affordability
and transportability, crosses literacy barriers, Availability
of commercial channels, strong rural listnership, low cost,
flexibility, sponsorship options etc.
• Disadvantages: Transient character, Low attention level,
creative constraints, limited reach, less impact in urban
areas, no demo capacity, limited info delivery

• Media buying: network radio, spot radio

 Different Media and
advertising
• TV
Introduced in 1959, presently more than 100 channels
• Most powerful media
• Indian TV market third largest in the world.
• Advantages-High degree of popularity, wide reach, cross all literacy
barriers, strong impact on viewers, scope for creativity, adv for pd.
Demo, brand identification, high scope for frequency
• Disadvantages: Affordability problem, high cost, time consuming
production, cluttering of ads, problems of channel selection-
fragmentation, transient

• Media buying-terrestrial (Prime and regional) and satellite TV ((Prime

and regional, free to air, paid)
• Ad in TV- network ad strategy, spot ads,local ad strategy, timing and
sponsorship issue
 Other media of advertising
• Outdoor Media*(see next slide)
• Transit or transportation media-mobile vans, cars,
buses, trains etc.
• POP media-signs, window display, posters,
display cards, festoons, cut-outs, merchandise
racks and cases, pd. Models, instore commercials,
crowners, danglers, stickers etc.
• Direct mail media-catalogues, letters, email door
to door drop/ hand delivery etc.
 Other media of advertising
• Outdoor Media: posters, billboards, hoardings, bulletin
boards, balloons, inflatable, newscasters* ,signs-projecting
signs, roof signs, wall signs, free standing signs, marquee
signs, backlit signs( for info and directional, outdoor and
image building), advertising at airports.
• Advantages: Reach, cost efficiency, strong reminder,
geographical selectivity, larger info base, scope of creativity,
proximity to purchase decision, longevity, constant exposure
• Dsiadv: demo selectivity is diff., greater increase of traffic,
maintenance of outdoor media
International
International Advertising
Advertising Decisions
Decisions

Adaptation
Adaptationof
ofGlobal
GlobalAdvertising
Advertising

Advertising
AdvertisingMedia
MediaCosts
Costs&&Availability
Availability

Regulation
Regulationof
ofAdvertising
AdvertisingPractices
Practices
 What
What isis Public
Public
•
Relations?
BuildingRelations?
good relations with the company’s various
publics by obtaining favorable publicity, building up a
good “corporate image” and handling or heading off
unfavorable rumors, stories and events.

• Major functions are:

– Press Relations or Press Agency
– Product Publicity
– Public Affairs
– Lobbying
– Investor Relations
– Development
Major
Major Public
Public Relations
Relations Tools
Tools

Web
WebSite
Site
Public
Public
Service
Service News
Activities News
Activities

Corporate
Corporate
Identity
Identity
Materials
Materials Speeches
Speeches

Audiovisual
Audiovisual Special
Special
Materials
Materials Events
Events
Written
Written
Materials
Materials
 Sales Promotion
• Based on Push and Pull strategy
• It is concerned with the creation application and dissemination
of materials and techniques that support P.S.and Ads.
• Purpose is to increase the desire of both the “Push and Pull
elements” of the business chain.
• SP moves the product towards the buyer, ads moves buyers
towards product
• George W. Hopkins-SP is an organized effort applied to the
selling job to secure the greatest effectiveness for advertising
and dealer’s help.
• Demand stimulating devices designed to supplement ads
• Short term incentives to encourage sales of a product or service
• Ad gives reason to buy, SP gives reason to buy but NOW
• Can have supplementary and complementary roles
 Sales Promotion
•It is short termed, usually non recurring in nature.
•Needs colab. Of channel hence below the line promotion
•Role of SP-communication, Incentive, Invitation
•Can be categorized on various ways:
1.Immediate and Delayed effect SP
2.Loading , Trial SP and loyalty SP
3.Consumer, Dealer, Sales force SP
•Reasons for growth of Sales Promotion
Internal and External contributors
Internal- Top management’s acceptability
Pd managers and Brand managers are better equipped to use techniques of SP
Pd managers are under pressure from inside as well as outside to perform
External: Increase of competition and brand clutter, growing might of retailers,
saturation of markets, preferences of consumers, decline in effectiveness of Ads,
Short term focus of the companies, greater pressure from Trade and customers
Some facts and figures…1976-42.1%-Ad, 57.9% SP, 1981-38.1% Ads, 61.9% SP
In 2002, SP-57% Ads 37.7% in US, In India SP Spent was 18,000 cr.
• Trial Some SP Objectives…
• Attract attention
• Change buying habits
• Fight competitor strategies
• Stimulate impulse buying
• To ensure better push and pull
• To use more
• Increase sales
• Increase brand loyalty
• Secure channel members support for new and existing products
• Inventory management
 Sales Program formulation
• Situational Analysis
• Identification of objectives
• Developing of the program-Duration, timing, incentive level,
condition of participation, distribution vehicle, Budget
• Implementation-plan activities need to be performed, training
to the implementers, communication to the staff, support of
top mgt. Timing(season, festivals, competitors etc.)
• Follow up
Some Dos for effective SPP
-Customization, Synergise, tracking SP activities, channel
involvement
 Sales Promotion Tools
•Consumer oriented
•Trade Oriented
•Sales Force oriented
Consumer oriented- Sample, Coupans, Cash refunds , Price
off, Premium, Ad specialities, Patronage rewards, POP
displays, contests, games and sweepstakes
Trade oriented: Trade allowances, Slotting allowance,
promotional allowance, ealer gifts, Push money, Dealer Sales
contests, Stock display contest, Specialty ads, Merchandise
deals
Sales Force Oriented: Trade shows, exhibitions, conventions
and conferences, Sales contest, Push money etc.
 Some trends…

• Continuity-Samsung Phod ke dekho, Phir

Phor ke dekho offer
• Innovativeness
• Talent Hunts-Ponds Sapno ki rajkumari
• Participation-87% yes, 53% winners
• Wet sampling
 Advantages of SP
• Extra incentive to purchase
• Change habits
• New product launch easier
• Flexible: new pd launch,major
improvement, amplify results of ads, greater
participation of channel members.
• Develop attitudes
 Disadvantages of SP
• Temporary, short lived
• Only supplementary
• Non recurring hence seldom reuse value
• Brand Image???
• Ineffective in case of mature pds in declining
markets, no pd improvements, SP clutter
• Ad agencies and many managers give still less
importance to it.