Table of context

Sr. Particulars
no.
1. Communication process with reference to Advertising

2. Models of Communication

3. Integrated Marketing Communication

4. DAGMAR

5. Advertising

6. Advertising agency-Structure, Functions & Evaluation

 1. Communication Process with reference to Advertising

Advertising is a form of communication intended to persuade an audience (viewers, readers or

listeners) to purchase or take some action upon products, ideals, or services. It includes the name of
a product or service and how that product or service could benefit the consumer, to persuade a
target market to purchase or to consume that particular brand. These brands are usually paid for or
identified through sponsors and viewed via various media. Advertising can also serve to
communicate an idea to a large number of people in an attempt to convince them to take a certain
action. Commercial advertisers often seek to generate increased consumption of their products or
services through branding, which involves the repetition of an image or product name in an effort to
associate related qualities with the brand in the minds of consumers. Non-commercial advertisers
that spend money to advertise items other than a consumer product or service include political
parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations
may rely on free modes of persuasion, such as a public service announcement.

Modern advertising developed with the rise of mass production in the late 19th and early 20th
centuries. Mass media can be defined as any media meant to reach a mass amount of people.
Different types of media can be used to deliver these messages, including traditional media such as
newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and
text messages. Advertising may be placed by an advertising agency on behalf of a company or other
organization.

Communication Process
Communication is a process whereby information is enclosed in a package and is channeled and
imparted by a sender to a receiver via some medium. The receiver then decodes the message and
gives the sender a feedback. All forms of communication require a sender, a message, and an
intended recipient; however the receiver need not be present or aware of the sender's intent to
communicate at the time of communication in order for the act of communication to occur.
Communication requires that all parties have an area of communicative commonality. There are
auditory means, such as speech, song, and tone of voice, and there are nonverbal means, such as
body language, sign language, paralanguage, touch, eye contact, through media, i.e., pictures,
graphics and sound, and writing.

Modern marketing calls for more than developing a good product, pricing it attractively and
making it accessible to target customers. Companies must also communicate with their present and
potential customers. Every company is inevitably cast into the role of communicator and promoter.
What is communicated, however, should not be left to change. To communicate effectively,
companies hire advertising agencies to develop effective ads; sales promotion specialists to design
sales incentive programs and public relations firms to develop the corporate image. They train their
sales people to be friendly and knowledgeable. For most companies, the questions are not whether
to communicate but rather what to say, to whom, and how often. A modern company manages a
complex marketing communications system. The company communicates with its middlemen,
consumers and various publics. Its middlemen communicate   with   their   consumers   and  
various   publics. Consumers engage in word-of-mouth communication with other consumers and
publics. Meanwhile each group provides communication feedback to every other group.

The marketing communication mix (also called the promotion mix) consists of four major tools:

 Advertising: Any paid form of nonpersonal presentation and promotion of ideals, goods or
services by an identified sponsor.
 Sales Promotion: Short-term incentives to encourage purchase or sale of a product or
service.
 Publicity: Nonpersonal stimulation of demand for a product, service or business unit by
planting commercially significant news about it in a published medium or obtaining
favorable presentation of it upon radio, television or stage that is not paid for by the sponsor.
 Personal Selling: Oral presentation in a conversation with one or more prospective
purchasers or the purpose of making sales.

Marketers need to understand how communication works.

Some years ago a communication model will answer:

 Who,
 Says what,
 In what channel,
 To whom,
 With what effect.

Over the years, a communication model with nine elements has evolved, that shown in figure 8.
Two elements represent the major parties in a communication sender and receiver. Another two
represent the major communication tools message and media. Four represent major communication
functions encoding, decoding, response and feedback .The last element represents noise in the
system.
 Communication Process

These elements are defined as follows:

 Sender: The party sending the message to another party (also called the source of
communicator).
 Encoding: The process of putting thought into symbolic form.
 Message: The set of symbols that the sender transmits.
 Media: The communication channels thought which the Message moves from sender to
receiver.
 Receiver: The party receiving the message sent by another party (also called the audience or
destination).
 Response: The set of reactions that the receiver has after being exposed to the message.
 Feedback: The part of the receiver's response that the receiver communicates back to the
sender.
 Noise: Unplanned static or distortion during the communication process, resulting in the
receiver's receiving a different message than the sender sent.

The model underscores the key factors in effective communication. Senders must know what
audiences they want to reach and what responses they want. They must be skillful in encoding
messages that take into account how the target audience usually   decodes   messages.   The source  
must transmit the message thought efficient media that reach the target audience. Senders must
develop feedback channels so that they can know the receiver's response to the message.
 2. MODELS OF COMMUNICATION

Traditional Response Hierarchy Models:

A number of models have been developed to show the stage that a consumer may pass through in
moving from a state of not being aware of the company, product, or brand to actual purchase
behavior. In the figure give3n below four of the best known response hierarchy models are shown.
While these response models may appear similar, they were developed for different reasons.

MODELS

STAGE AIDA HIERARCHY INNOVATION INFORMATION

MODEL OF EFFECTS ADOPTION PROCESSING
MODEL MODEL MODEL

Attention Awareness Awareness Presentation

COGNITIVE Attention
STAGE
Knowledge Comprehension

Interest Liking Interest Yielding

AFFECTIVE
STAGE Preference

Desire conviction Evaluation Retention

Trial
BEHAVIOURA
L STAGE

Action Purchase Adoption Behaviour

The AIDA mode was developed to represent the sage a salesperson must take a customer through in
the personal selling process. This model depicts the buyer as passing successively through
Attention, Interest, Desire and Action. The salesperson must first get the customer’s attention and
then arouse some interest in the company’s product or service. Strong levels of interest should
create desire to own or use the product. The action stage into the AIDA model involves getting to
make a purchase commitment and close the sale. To the marketer this is the most important stage in
the selling process, but it can also be the most difficult one. Companies train their sales
representative in closing techniques to help them complete the selling process.
The best known of the response hierarchies is the model develops by Robert Lavidge and Gray
steiner that has a paradigm of setting and measuring advertising objective. The hierarchy of effect
model shows the process by which advertising works, it assumes a consumer passes through a series
of steps in sequential order form initial awareness of a product or service to actual purchase. A
basic premise of this model is that advertising effects occur over a period of time. Advertising
communication may not lead to immediate behavioural response or purchase, rather, a series of
effects must occur, with each step fulfilled before the consumer may move to the next stage in the
hierarchy.

The hierarchy of effects model has become the foundation for objective setting and measurement of
advertising effects in many organizations. The innovation adoption model evolved from work on
the diffusion of innovation. This model represents the stage as a consumer passes through in
adoption a new product or service. Like other models, it says potential adopters must be moved
through a series of steps before taking some action. The steps preceding adoptions are awareness,
interest, evaluation and trial. The challenge facing companies introducing new product is to create
awareness and interest among the consumers and then get them to evaluate the product favorably.
The best way to evaluate a new product is through actual use so that performance can be judged.
Marketers often encourage trial by using demonstration or sampling programmers or allowing
consumers to use the product with minimum commitment. After trial, the consumer either adopts
the product or rejects it.

The final hierarchy model shown in the figure is the information processing model of advertising
effects developed by William McGuire this model assumes the receiver in a persuasive
communication situation like advertising is an information processor or problem solver. McGuire
suggests a series of stems that a receiver goes through in being persuaded which constitutes a
response hierarchy. The stages of the model are similar to the hierarchy of effects sequence,
attention and comprehension are similar to awareness and knowledge and yield is synonymous with
liking. McGuire model includes a stage that is not found in the other models; retention, or the
receiver’s ability to retain that portion of the comprehended information that he or she accepts as
valid or relevant. This stage is important since most promotional campaign are design not to
motivate consumers to take immediate action but rather to provide information they will use later
while making a purchase decision. Each stage of the response hierarchy is a dependent variable that
must be attained and that may serve as an objective of the communication process. Each stage can
be measured, providing the advertiser with feedback regarding the effectiveness of various
strategies designed to move the consumer to purchase. The information processing model may be
effective framework in order to plan and evaluate the effects of a promotional campaign.
COMMUNICATION MODEL FOR RURAL AND URBAN COMUNICATION:

Good theories and models simplify the working and process of any phenomenon for our
understanding and examination. They are usually based on certain assumptions and conditions in
order to reduce the complexities and thus to make the models and theories easy to understand.

Models are at the simple representations of how things work. A model is the approximation or
abstraction of the reality. They do not represent each and every aspect of reality but they take only
relevant components for understanding. In other words, models deal with the relevant variables, and
offered only the relevant variables that have a major impact on the given phenomenon are
considered.

In communication, we often use models in order to try to present a simplified version of human
communication, containing only the essential components. These models help us to find out the
factors which are common to all forms of communication. With the help of this, we can easily judge
how successful communication has been, or where it went wrong if it was not effective and what
should be our line of action to improve it in the future. This way a model helps us in understanding
the intricacies of communication process. In communication literature there are different models
based on different sets of assumptions and variables.

Some of the popular models of communication:

(1) Aristotle persuasive model.

(2) Shannon and Weaver’s transmission model.

(3) Berlo’s model.

4) Lasswells model.

(5) The process model/two – way model.

The process model/two – way models is the most appropriate communication model for rural and
urban communication. This model explains communication as a process or flow. The model
combines ideas from several communication theorists and it is the most common and basic
approach to understand what communication is.

Communication as a process:

The sender or the writer or the speaker who initiates the communication process is referred to as the
communicator. The communicator first of all formulates an idea about the subject matter of
communication. Even before the generation of an idea that must be a stimulus, an event that creates
comes from outside world through sensory organs like the eyes, ears, nose, mouth and skin. This
stimulus can be views, opinions, suggestions, facts or any information which the sender wants to
communicate.

Then the idea is translated by him into words, symbols and some other forms of message into
symbols known as a coding and decoding.

Process
of Communication
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the need to communicate with the on an individual. This stimulus can be either internal or external.
An internal stimulus is simply an idea that forms within the mind where there is an external stimuli

In the process of encoding ideas, opinions feelings and facts are converted into symbols signs words
actions and pictures. The extent to which any communication is effective with depends on how well
the message is constructed. After this the communicators will select a suitable channel of
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communication for the transmission of the message to the receiver. Communication channel means
the media through which the message is passed. Oral messages might be transmitted through face-
to-face conversation, telephone conversation or voicemail. On the other hand written messages
might be conveyed through a report, notice electronic mail etc. And non-verbal messages might be
transmitted through facial expressions, body movement or gestures. The receiver of the message
that is the listener or the reader or the receiver receives the transmitted message and at this point
control passes from the sender to the receiver.

The receiver then decodes the message and interprets it. Decoding is the process of translation of an
encoded message into the language which is understandable to the receiver. Depending upon the
perception of the receiver, he interprets the message. Every person has a unique perception about
things based on his knowledge, experience, emotions, customs, status and a number of other factors.
If everyone in and around us had the same perception about things then communication would have
been much easier. The manner in which the sender and receiver perceives the same word can give
rise to difference in encoding and decoding. The receiver after decoding the message, formulates his
own message in the form of reply, encodes it and transmit it to the original

Sender who is now the receiver. This is known as feedback which is the most important element in
the two-way communication. Feedback is the verbal or non-verbal response received from the
individual to whom a message is directed.

Tailor-made communication: The content of the advertising should be moulded according to the
regional requirements, instead of national releases. Tailor-made messages can counter linguistic,
social and cultural differences. The Indian villages are complex social system with different caste,
classes, creeds and tribes. The high rate of illiteracy adds to the inadequacy of mass media and
reaches almost up to 80% of India’s population who reside in villages. Traditional media can be
used to reach these people in the marketing of new concept. The traditional media with its effective
reach, powerful inputs and personalized communication system will help in realizing the goal.
Besides this when the advertisement is mixed with entertainment it goes on easily with the villages.
Today radio and T.V. are the only practicable means of reaching a significant proportion of village
population. Television is the most powerful means of communication in the context of our literacy
level. The vast sums of money spent on television advertising by many companies in the developed
world is an indication of the immense impact of this medium on the consumer network. The Indian
electronic industry has made rapid strides and can now cope with the expansion of television
network without excessive requirements of foreign exchange.
 3. Integrated Marketing Communication
Definition of IMC:

Integrated Marketing communication is a strategic business process used to plan, develop, execute
and evaluate co-ordinate, measurable, persuasive brand communication programs over time with
customers, prospects, employees, associates another targeted relevant external and internal
audiences. The goal is to generate both short term financial returns and build long term brand and
share holder value.

Components of IMC:

1. Advertising:

This tool can get your messages to large audiences efficiently through such avenues as radio, TV,
Magazines, Newspapers (ROP), Internet, Billboards and other mobile technological communication
devices. This method can efficiently reach a large number of consumers, although the costs may be
somewhat expensive.

2. Sales Promotion:

This tool is used through coupons, contests, samples, premiums, demonstrations, displays or
incentives. It is used to accelerate short-term sales, by building brand awareness and encouraging
repeat buying.

3. Public Relations:

This integrated marketing communications tool is initiated through public appearances, news/press
releases or event sponsorships, to build trust and goodwill by presenting the product, company or
person in a positive light.

4. Direct Marketing:

This tool will utilized email, mail, catalogs, encourage direct responses to radio and TV, in order to
reach targeted audiences to increase sales and test new products and alternate marketing tactics.

5. Personal Selling:

Setting sales appointments and meetings, home parties, making presentations and any type of one-
to-one communication, to reach your customers and strengthen your relationship with your clients,
initiate this IMC tool.
Benefits of IMC:

1. It can create competitive advantage, boost sales and profits, while saving money, time and
stress.

2. IMC wraps communications around customers and helps them move through the various
stages of the buying process. The organization simultaneously consolidates its image,
develops dialogue and nurtures its relationship with customer. The Relationship Marketing
cements a bond of loyalty with customers which can protect them from the inevitable
onslaught of competition. The ability to keep the customer for the life is a power
competitive advantage.

3. IMC also increase profits through increase effectiveness. At in its most basic level, a unified
message has more impact than a disjointed myriad of messages. In a busy world, a
consistent, consolidated and crystal clear message has a better chance of cutting through the
“noise” of over five hundred commercial messages which bombard customers each and
every day.

4. Linked messages also help buyers by giving timely reminders, updated information and
special offers which, when presented in a planned sequence, help them move comfortably
through the stages of their buying process… and this reduces their misery of choice in a
complex and busy world.

5. IMC also makes messages more consistent and therefore credible. This reduces risk in the
mind of the buyer which, in turn, shortens the search process and helps to dictate the
outcome of brand comparisons.

6. Un-integrated communications send disjointed messages which dilute the impact of the
message. On other hand, integrated communications present a reassuring sense of order.

7. Consistent images and relevant, useful, messages help nurture long term relationships with
customers.

8. IMC saves money as it eliminates duplication in areas such as graphics and photography
since they can be shared and used in say, advertising, exhibitions and sales literature.
Agency fees are reduced by using a single agency for all a communications.
Barriers to IMC:

1. Functional silos: rigid organizational structures are infested with mangers that protect both
their budgets and their power base.
Sadly, some organizational structures isolate communications, data, and even managers
from each other. For e.g. the PR department often doesn’t report to marketing. The sales
force rarely meets the advertising or sales promotion people and so on.

2. Stifled creativity: it shouldn’t matter whose creative idea it is, but often, it does. An
advertising agency may not be so enthusiastic about developing a creative idea generated by,
say, a PR or a direct marketing consultant.
IMC can restrict creativity. No more wild and wacky sales promotions unless they fit into
the overall marketing communications strategy.

3. Time scale conflicts: add different time scales into a creative brief and you’ll see time
horizons provide one more barrier to IMC. For e.g. image advertising, designed to nurture
the brand over the longer term, may conflict with shorter term advertising or sales
promotions designed to boost quarterly sales. However the two objectives can be
accommodated within an overall IMC if carefully planned.

4. Lack of management know-how: a survey in 1995revealed that most manager lack

expertise’s in IMC. But it’s not just management, but also agencies. There is a proliferation
of single discipline agencies. There appear to be very few people who have real experience
of all marketing communications disciplines. This lack of know how is then compounded by
a lack of commitment.
 4. DAGMAR

DAGMAR - Defining Advertising Goals for Measured Advertising Results

Russell Colley (1961) developed a model for setting advertising objectives and measuring the
results. This model was entitled ‘Defining Advertising Goals for Measured Advertising Results-
DAGMAR.’

DAGMAR model suggests that the ultimate objective of advertising must carry a consumer
through four levels of understanding: from unawareness to Awareness—the consumer must first
be aware of a brand or company Comprehension—he or she must have a comprehension of what
the product is and its benefits; Conviction—he or she must arrive at the mental disposition or
conviction to buys the brand; Action—finally, he or she actually buy that product.

Concept of DAGMAR

1. A Communication Task:

An advertising objective involves a specific communication task. It is recognized that advertising is

a mass, paid communication that is intended to create awareness, impart information, develop
attitude or induce action.

In DAGMAR approach communication task is based on a specific model of the communication

process as shown below:

UNAWARE

AWARE

COMPREHENSION & IMAGE

ATTITUDE

ACTION

A consumer is not aware about the presence of a particular brand in the market. The communication
task increases the awareness about the brand. Comprehension and image refers to the consumer
trying to learn something about the brand. Attitude is the stage of conviction which takes place due
to effective communication. The action stage prompts the consumer to try out the brand or to get
relevant information.

2. A Specific Task:

The second important concept of the DAGMAR approach is that the advertising goals should be
specific. It consists of:

 Measurable task: As far as possible the advertising objective should be quantitative to

facilitate its measurement. When brand comprehension is involved, it is necessary to indicate what
exact appeal or image is to be communicated.
 Bench mark: Benchmark is a standard or a point of reference which can be used to
determine the success or failure of an ad campaign. Without a benchmark, it is most difficult to
determine the optimal goal. Benchmark can suggest how a certain goal can be reached. Benchmark
is an essential part of any planning program and particularly the DAGMAR approach. Quantitative
benchmarks are not only valuable in establishing communication goals and objectives but essential
for determining whether the campaign was successful.
 Target Audience: it is very important to define target audience precise terms as target
segments differ significantly. E.g. when a new brand of fashion garments are introduced, a common
consumer will respond much differently as compared to a consumer who maintains a certain
lifestyle. So knowledge of target audience is necessary.
 Time period: In setting goals of advertising time period should be specified within which
the objectives must be achieved. The time period can range from a few days to a year depending
upon the situation and types of response expected. Extensive advertising throughout the year can
bring about promising results.
 Written goals: In DAGMAR approach it is expected that the goals must be in writing. Oral
goals are not entertained. Such written goals are referred for future use.

Limitation of DAGMAR:

a. Sales Oriented Performance: DAGMAR approach is considered to be successful if the sales

increase and it is considered as a failure id increase in sales is not achieved.
b. Partial Assessment: the DAGMAR approach assesses the impact of ad campaign in a
quantitative term; it does not explain how to improve qualitative representation.
 c. Unsuitable to Small Advertising: Collection of information about response hierarchy
consumes time as well as money. Only large advertisers with financial stability can allocate
funds to collect the information. Small firms cannot afford to do it.
d. Non-comprehensive study: is not necessary that a consumer will go through the pre defined
steps in the response hierarchy model before deciding to buy, he may have impulsive
purchaser. DAGMAR does not explain impulsive purchaser.

In advertising world DAGMAR created a lot of controversy. The controversy mainly centered on
the theme. What should be the objective of advertising? Should it be communication as propounded
by DAGMAR or should it be sales?
 5. Advertising

Meaning of Advertising:

Advertising is a form of communication intended to persuade an audience (viewers, readers or

listeners) to purchase or take some action upon products, ideals, or services. It includes the name of
a product or service and how that product or service could benefit the consumer, to persuade a
target market to purchase or to consume that particular brand. These brands are usually paid for or
identified through sponsors and viewed via various media. Advertising can also serve to
communicate an idea to a large number of people in an attempt to convince them to take a certain
action.

Definition:

One definition of advertising is: "Advertising is the nonpersonal communication of information

usually paid for and usually persuasive in nature about products, services or ideas by identified
sponsors through the various media."

The promotion of a product, service or event which can occur through internet promotions,
newspaper ads, radio, television, door-to-door, postal mail, email spam, flyers, or any number of
creative tactics designed to get your attention in order to purchase said product or service.

NATURE AND SALIENT FEATURES OF ADVERTISING:

1) Paid form of Communication: advertising is a medium of mass communication in order to

supply information to the people the advertiser has to book a media in order to give the advertiser
message. Hence advertising is a paid form of communication.

2) Identified sponsor: a sponsor may be an individual or a firm having something to advertise has
spends money and makes advertising as per his wills and desire. The corporate advertisements are
sponsored by the companies and constitute an integral part of the advertisements. The product gets
good market due to identity of the sponsor who has a reputation in the market.

3) Providing information: Advertising is always informative and its purpose is to provide

information about the product and services or ideas to prospective buyers. The details of product its
brand name, advertising message, prices and benefits are given in advertisements.

4) Builds Goodwill: Advertising builds invaluable goodwill for the company as well as for its
products and services. The company can improve its image through well planned advertising
campaign, highlighting the benefits of buying its products.
5) Target Oriented: When an advertisement is target oriented it becomes effective and the result
oriented. The waste in advertising can be minimized through such target oriented advertising. When
the target audience is clearly decided the selection of media, language, message etc becomes more
appropriate.

6) Provides Awareness: advertising makes people aware about the availability of various products.
It also provides information relating to its benefits to the customers.

7) Important element in the marketing mix: Advertising is an important element in the marketing
mix and it can make a positive contribution and sales promotion provided other elements in the
marketing mix are reasonably favorable.

8) Arts, Science and Profession: Advertising is an art as it uses creativity, science as it has its
principles practices and rules based on marketing research activities. It is now treated as a
profession with its professional bodies and code of conduct for members.

Functions of advertising:

To differentiate the product from their competitors

An important function of advertising is the identification function, that is, to identify a product and
differentiate it from others; this creates an awareness of the product and provides a basis for
consumers to choose the advertised product over other products this creates an awareness of the
product and provides a basis for consumers to choose the advertised product over other products.

The identification function of advertising includes the ability of advertising to differentiate a

product so that it has its own unique identity or personality.

There are four additional ways to differentiate your offering from the competition and increase your
differentiation: leveraging the brand, innovating your service offering, as well as designing product
and packaging in a way that creates an aesthetic beyond the functional. None of these methods are
expensive. All are ways that can increase your perceived value to the customer and increase your
market share.

Example: GARNIER FRUTICS (shampoo) the shampoo bottle have the different color from all
other shampoo available in the shelf. The bottle of the shampoo is unique from all others.

To communicate product information

Another function of advertising is to communicate information about the product, its attributes, and
its location of sale; this is the information function. Product information communicated to the
customers in manner that meets their information needs. Most consumers tend to discount the
information in advertising because they understand that the purpose of the advertising is to
persuade. Making an advertising message believable is not easy; though often it is sufficient to
make the consumer curious enough to try the product. Such curiosity is often referred to as
interested disbelief. Advertisers use a variety of devices to increase the believability of their
advertising: celebrities or experts who are the spokespersons for the product, user testimonials,
product demonstrations, research results, and endorsements.

Example: Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing the
consumers about the benefits of it. That how the old women can look younger by using it
continuously. It will make you fair cream plus it reduces freckles plus it can be used as a sun block
as well it will make you look young.

To urge product used

The third function of advertising is to induce consumers to try new products and to suggest reuse of
the product as well as new uses; this is the persuasion function.

The basic function of advertising is to provide constant reminders and reinforcements to generate
the desired behavior the advertiser wants from them. This is a particularly effective function in the
long run as reminders and reinforcements register in the consumers' minds, becoming the base on
which they shape their future decisions. Sampling in the way to urge the product using.

Example: Fair and lovely as we know that it will make a girl look fair and prettier in 4 weeks.

To expand the product distribution

When the consumer comes to know about the particular product from the advertisement he/she
wants to try that new product. They go to shops to buy the product; if the new product is not
available in a shop then the shopkeeper consults the distributor to make that product available in his
shop. It is basically to provide the product all over market. It is necessary to make sure that product
should be accessible to everyone. Availability of product effect the distribution.

Example: Wateen telecom and Motorola Partner to Expand Distribution of Videoconferencing

Product Line in Pakistan. So as many people are getting to know about this facility they are running
towards the franchises to avail it. So for that Wateen should expand their distribution all around the
cities.
To increase brand preference and loyalty

Marketing is a moving thing. As your needs are changed your preferences are changed. When the
product delivers the promised quality, service and value, it creates satisfied customers who become
instrumental in spreading a favorable word-of-mouth. Satisfied customers also develop brand
preference; each product features and uses are written on the product.

Example: 99% girls who are not married will not look at the ad of pampers or any milk powder for
children but when they will get married their interest will automatically move towards such ad'

Brand loyalty

Brand loyalty is a long-term customer preference for a particular product or service. Brand loyalty
can be produced by factors such as customer satisfaction with the performance or price of a specific
product or service, or through identifying with a brand image. It can be encouraged by advertising.
People often make purchasing decisions based on how a brand makes them feel emotionally rather
than based on quality or other objective evaluations. If "Just Do it" strikes a chord with an athlete,
he'll buy Nike; the decision may have little to do with quality.

Example: For instance, when one buys a tube of Colgate toothpaste and finds it ok, one will not
have to spend any valuable time on looking for other toothpaste brands.

To reduce overall sales cost

When a product is selling you have to teach the people about the product. Like if we would
advertise through newspapers, TV, broachers and internet, it would cater huge sum of masses and if
you do individually it would be more costly and time consuming.

Example: Coke targets their consumers on a very large scale through mass media whereas Makka
cola advertise on smaller scale or go door to door to advertise their product.

Creates new demands

Advertising have to create new demands they should educate the people about more and more new
things coming up in the market. Each year new products, including line extensions and new brands
are introduced into groceries and drugstores.

Example: Wateen telecom is offering wireless internet chips, video conferencing and WIMAX
services as they are introducing new services in market its creating new demands.
 6. Advertising agency-Structure, Functions & Evaluation

Meaning of an Advertising Agency:

An advertising agency is a specialized professional service organization which is facilitating

institution of Advertising industry. It offers a full range of service to the advertiser, from the
conception of the idea to its placement in different media like press, radio, TV, transit hoarding etc.
It plans & executed comprehensive advertising campaigns of its clients. Advertising agency is a
service organization specially established for rendering expert services in the fields of advertising &
publicity.

Definition of advertising agency:

The American Association of Advertising Agencies (AAAA) defines the advertising agency as "An
independent business organization composed of creative & business minded people, who develop,
prepare, & place advertising in the advertising media for sellers seeking to find customers for their
goods & services."

Features of Advertising agency:

1) Specialized Service Agency: Advertising agency is a professional service agency which looks
after the advertising & publicity work of its clients. It provides specialized services in the field of
advertising.

2) Service Organization: An ad agency provides services in the field of advertising & it is

essentially a service organization. It sells creative talent in order to earn profit.

3) Commission: An ad agency commission for providing the benefits of its specialized knowledge.
It plans, produces & places advertising campaign of its client in the media.

4) Expert Staff: In order to look after the various activities relating to advertising & publicity work
of its clients, it provides expert staff in the various fields.

5) Vital Link: An advertising agency acts as a vital link between the clients & the media owners.

6) Economical alternative: An advertising agency is a better substitute for maintaining a separate

advertising department within the organization. As the agency provides a package of advisory as
well as creative services, it is definitely an economical alternative.
Functions of Advertising Agency:

Account Management: Within an advertising agency the account manager or account executive is
tasked with handling all major decisions related to a specific client. These responsibilities include
locating and negotiating to acquire clients. Once the client has agreed to work with the agency, the
account manager works closely with the client to develop an advertising strategy. For very large
clients, such as large consumer products companies, an advertising agency may assign an account
manager to work full-time with only one client and, possibly, with only one of the client’s product
lines. For smaller accounts an account manager may simultaneously manage several different,
though non-competing, accounts.

Creative Team: The principle role of account managers is to manage the overall advertising
campaign for a client, which often includes delegating selective tasks to specialists. For large
accounts one task account managers routinely delegate involves generating ideas, designing
concepts and creating the final advertisement, which generally becomes the responsibility of the
agency’s creative team. An agency’s creative team consists of specialists in graphic design, film and
audio production, copywriting, computer programming, and much more.

Researchers: Full-service advertising agencies employ market researchers who assess a client’s
market situation, including understanding customers and competitors, and also are used to test
creative ideas. For instance, in the early stages of an advertising campaign researchers may run
focus group sessions with selected members of the client’s target market in order to get their
reaction to several advertising concepts. Researchers are also used following the completion of an
advertising campaign to measure whether the campaign reached its objectives.

Media Planners: Once an advertisement is created, it must be placed through an appropriate

advertising media. Each advertising media, of which there are thousands, has its own unique
methods for accepting advertisements, such as different advertising cost structures (i.e., what it
costs marketers to place an ad), different requirements for accepting ad designs (e.g., size of ad),
different ways placements can be purchased (e.g., direct contact with media or through third-party
seller), and different time schedules (i.e., when ad will be run). Understanding the nuances of
different media is the role of a media planner, who looks for the best media match for a client and
also negotiates the best deals.
Organization Structure:

The activities within an advertising agency are typically divided into 4 broad groups: account
management, the creative department, media buying, and research. These divisions are usually
physically separated, although all four areas work closely together to produce an advertising
campaign in its entirety.

Account managers usually have daily interaction with a counterpart at the client's office and
coordinate the activities of the other departments according to the client's wishes. The creative
department designs original themes or concepts for ads, while the media department places finished
ads within the media in which they will receive the most exposure to a target audience. The
research department provides data about consumers to help the agency and the client make
informed advertising decisions.

Recently added to advertising agencies' roster of services are public relations, direct marketing, and
promotional services. Other activities that used to be completed by outside vendors, such as
photography and high-tech print work, have been brought in-house in many agencies.
 Board of Directors

President/General Manager

Vice President Vice President Vice President Vice President

Marketing Marketing Creative Services Accounts Services
Management &
Finance

Coverage Coverage Coverage Coverage

Copy Art Accounts Supervisor

Media Accounts

Research Office Management Production Accounts Executive

Sales Promotion
Personal T.V. & Radio

Records
Press

Public relations
Traffic
Account Services / Account Management: The other major department in ad agencies is account
services or account management. Account service employees work directly with clients and
potential clients, soliciting business for the ad agency and determining what clients need and want
the agency to do for them. They are also charged with understanding the client’s business situation
and representing those needs within the agency, so that ads can be brought to bear on the correct
problem.

Creative department: The creative department is the people who create the actual ads - form the
core of an advertising agency. Modern advertising agencies usually form their copywriters and art
directors into creative teams. Creative teams may be permanent partnerships or formed on a project-
by-project basis. The art director and copywriter report to a creative director, usually a creative
employee with several years of experience. Although copywriters have the word "write" in their job
title, and art directors have the word "art", one does not necessarily write the words and the other
draw the pictures; they both generate creative ideas to represent the proposition (the advertisement
or campaign's key message). Creative’s frequently work with outside design or production studios
to develop and implement their ideas. Creative department consist of two key personnel i.e. art
director and copywriters. These positions and ad agency is explained below.

Media Department: Size and scale of the advertising is not important. What's in the mind is
important. The big bucks are not being spent on production; they are being spent on broadcasting.
The Media Department of an advertising agency is responsible for the planning and placement of
advertising time and space. It is a function that in recent years has undergone considerable change.
The proliferation of media forms and the escalating cost of media time have brought a new focus to
the Agency Media Department.

Marketing Research Department:

Marketing research is three things:

1. The identification of information needs (i.e. defining the problem)

2. The systematic gathering, recording, analyzing and interpreting of data about problems
relating to the marketing of goods and services (i.e. providing a solution to the problem)
 3. The analysis and evaluation of action taken on the basis of information (i.e. monitoring and
modifying the initial solution).

The single most important reason then for doing marketing research is to guide the marketer in
the analysis, planning, implementation and control of marketing and communications
programs to satisfy both customer needs and organizational goals. It does this by providing
decision-makers with information necessary to choose between alternative courses of action. While
marketing research information can never eliminate all risk from decision making, good research
can and should substantially reduce the odds of failure. In short, the essence of marketing research
is "problem-solving".