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Advertising Effectiveness

Advertising Effectiveness

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Published by: Krutik Dave on Sep 20, 2010
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ADVERTISING EFFECTIVENESS CONCEPTUAL STUDY OF PROMOTION MIX People no longer buy shoes to keep there feet warm and

dry. They buy them because of the way the shoes make them feel masculine, feminine, rugged, different, sophisticated, young, glamorous, "in" buying shoes has become an emotional experience . Our business now is selling excitement rather than shoes. - Francis C. Rooney Modern marketing calls for more than developing a good product 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 programmes and public relations firms to develop the corporate image. They train their sales people to be friendly and knowledgeable. For most companies, the question is not whether to communicate but rather what to say, to whom. Promotion influences demand by communicating product and company message to the market. A promotion Techniques involves the co-ordination of all communication efforts aimed at a specific audience; consumer and shareholder. The most critical promotional question is the proper mix of advertising, personal selling, sales promotion and publicity. The promotion mix is usually coordinated on a campaign basis, taking the campaign may efforts include a total campaign with one unified theme. All promotion messages tie in to this theme in one way or the the, rather than conflicting with it. ADVERTISING

The dictionary meaning of the word is µto announce publicity or to give public concerned to a specific thing which has been announced by the advertiser publicity in order to inform and influence them with the ideas which the advertisement carries. Although most advertising is designed to help sell goods. The advertising. This any sponsored communication designed to influence buyer behaviour advertising. It is directed at a mass audience and not directed at the individual as in personal selling. Advertising is identifiable with its sponsoring authority and advertiser. From a careful scrutiny of the above definition. goods and services. as Jones defines it is "a sort of machine made mass production method of selling which supplements the voice and personality of the individual salesman. Advertising is non-personal.The word µAdvertising¶ has its origin from a Latin word µAdventure¶ which means to turn to. It discloses or identifies the source of opinions and ideas. it is being used increasingly to further public interest goals. the following points emerge : Advertising is a paid form and hence commercial in nature." It is thus a process of buying/sponsor/identified media space or time in order to promote a product or an idea. Unlike personal selling. written or visual). advertising is done in a non-personal manner through intermediaries or media whatever the form of advertisement (Spoken. Advertising promotes idea. such as manufacturing the machine supplements the hands of the craftsman. In business world the terms in mainly used with reference to selling the product of the concern. .

If we eliminate the requirement of an "identified sponsor". advertisement without payment. the resulting communication is propagandistic. It is important for us to emphasize that advertising may involve the communication of ideas or goods of service. In a similar manner. A communication of ideas. it may persuade with emotion: more frequently. 3. radio or T. The radio is a prominent vehicle of advertising in our country and accounts for a large sum of the total advertising budget. By a paying sponsor. We are all aware that advertising attempts to sell goods and services. Advertising may persuade with information. But we may overlook the more important fact that it often sells ideas.Advertising thus is : 1. (A) Radio : Advertisers using the medium of radio may also be classified as National or Local advertisers. Impersonal 2. If we eliminate the elements of the "paying sponsor" (The paid requirement) we would have the element of publicity left : For publicity is technically speaking. Aimed at mass audience 4. (1) Electronic Media Advertisers use two types of media to reach target consumers over the airwaves. it endeavours to persuade with some mixture of both. . The two forms of mass communication that are something confused with advertising are publicity and propaganda.V.

repetition. The pleasure derived from watching TV is at least potentially transferable to the advertising message delivered through the medium. As a result is combines the two to produce high-impact commercials. TV programmes in our country do not offer much selectivity. Many small advertisers use the radio. The TV is a unique combination timing of sight and sound and achieves a deeper impact than the other media do. When T. became a factor in the advertising scene. commercial advertising on TV is severely limited because broadcast timings are only in the evenings. a growing class of advertising media has been the TV. (B) Television : Late in India. TV advertising offers advantage of impact. So do some large organizations. some industry observers felt that radio advertising might become insignificant or even disappear. Moreover TV does not have much coverage in our country. mass coverage. TV appeals to both the senses of sound and of sight . in rural India where 76. Finally. Moreover. This has not been so. which appeal to local audience consumers have responded very favourably to this approach.V. The translation is limited. This is particularly advantageous for advertisers whose product require demonstration. In our country not everyone has a TV set. any centers do not have TV towers. Moreover. except at the community centres where electricity is available. flexibility and prestigious. the fact that product or service is promoted on TV may build a prestigious image of the product and its sponsor.31% of our population lives. In our country. therefore it does not reach everyone.The radio serves principally local rather than national or large regional markets. There are hardly any TV sets. . for radio operators have responded to the challenge by offering programmes that features music etc.

Newspapers in our country virtually reach most of the homes in the cities. Advertisers can reach a very broad audience through newspapers which offer great flexibility. Some marketers divide their market on the basis of such variable as age. An organisation may approach national markets through such publication as Business India. This selectivity is easily rigorous.(ii) Print Media The print media carry their massages entirely through the visual mode. These media consist of newspapers. Magazines are divided into those parts that serve business. Because newspapers supply news. (B) Magazines : Magazines are also mean of reaching different market. sports etc. both original and matinal and of general and specific interest. Famina. they are local in content and appeal and provide opportunity for direct communication between a product and its local dealers or distributors. (A) Newspaper : A sizable share of the total advertising budget is spent on advertising in newspapers. educational level and interest magazines. India Today. magazines and direct mail. Sportsweek. Some are in the twelve-hour range. ladies. newspaper offers several advantage. The diversity of . Business World and Filmfare. Since newspapers are local. they offer an atmosphere of factual information and of currency that may be favourable for some advertising situations. industrial consumers. From the viewpoint of the advertiser. The advertisers may choose the specific area to be covered and the advertisement can be placed in newspapers at very short notice as compared with other media. marketers can easily use them to reach particular markets.

The primary advantage of magazine advertising are selectivity of market targets. The marketers may purchase billboards on the basis of showings.magazines is tremendous. magazines offer advertiser the opportunity to reach highly selective audience. Some magazines have prestige value. Others are highly specialised. The highest showing is 100. Here the number of billboards is would attract approximately 50% of the local population about 20 times during a month. Advertisers may utilize this medium to economically reach a large mass of people or small local markets. (iii) OUTDOOR AND TRANSIT MEDIA (A) Outdoor Advertising : Outdoor advertising involves the use of sign and bill-boards. the prestige associated with some magazines. posters or displays (such as those that appear on a building¶s wall) and electric spectacular (large. reread them or pass them on to other. while they are on shopping trips or area disposed towards shopping. Consumers sometime keep individual copies for long period of time. and the extra service offered by many publications. . quantity reproduction long life. In general. Sings are usually smaller than billboards and are erected and maintained by the marketer rather than by the advertising media. The quality of magazines reproduction is usually high. technical or even exotic. illuminated. Outdoor advertising is particularly effective in metropolitan and other can use this medium to bring the products to the attention of consumers or to remaining them of the product. Some offer news or together "General Interest" content to huge audience. The marketer can cover national or large regional markets at a low cost per contract (per individual reached). Magazines generally offer high-quality printing of advertisement. A showing indicates the percentage of the total population of a particular geographic area that will be exposed to it during one month period. sometime animated sign and display). This form of advertising has the advantage of communication quick and simply ideas of repetition and of the ability to promote products that are available for sales.

store displays. This medium is a low cost medium. Transport advertising is useful in reaching consumers at an advantageous point which they are embarking on a shopping trip. buses. store displays are an important sales promotion device. Display exposes the promotion messages to consumers at the time and place of purchase. Repeat exposure is possible for a majority of the people in our country use public transport basis. including the marketers of food. Numerous consumers products are purchased in stores that use self-service selling method's. Marketers may use transit advertisement to attain high exposure to particular groups consumers on theory way to and from work and tourists. These activities tend to supplement the advertising and personal selling efforts. Sales promotion activities are impersonal and usually nonrecurring and are directed at the ultimate consumers. SALES PROMOTION According to the American Marketing Association. Marketers of such . industrial consumers and middlemen. demonstration and various non-recurrent selling efforts not in the ordinary routine. Sales Promotion consists of those marketing activities other than personal advertising and publicity that stimulate consumer purchasing and dealer effectiveness.(B) Transport Advertising : Transport advertising appears on the inside or outside of taxis. Examples of sales promotion are free product samples. railways and other modes of passenger transportation. Such exposure is especially important for items that are bought on impulse. trading stamps. premiums. such as displays shows and expositions. For many organisations. toys and clothing. coupons and trade shows.

personal selling and sales promotions messages. PUBLICITY Publicity is a means of promoting the mass market and is similar to advertising. artificial sweeteners have been branded unsafe or unhealthy in the publicity which they would rather have done without. for instance. with the media in order to minimise bad publicity. They realize that such communications to the public may have every adverse impact upon the image of the organisation. Upon receiving a news release. Many a companies and trade association officials attempt to develop favourable working relationships. or print or broadcast it in the original form. except that it is free. The most common type of publicity are news release (also know as press release). change the hording. the editor or broadcast station programme director may choose to throw the release in the waste paper basket. while personal . photographs and feature stories. Publicity may be negative as well as positive. PERSONAL SELLING Personal selling consists of persons to communication between the sales persons and their prospects. it involves personal interactions between the sources and the destination. is found in the editorial portion of news media and pertains to newsworthy events. Unlike advertising. The disposition of the news release is entirely in the hands of the media and cannot be dictated by the marketer.items need effective display in order to distinguish their products from those of their rivals. for example cigarettes. Advertising aims at grouping the shotgun approach. Marketers have less control over the nature of the publicity that their organisation and products receive than they have over their advertising. Some products and brands have received bad publicity. wings.

they employ mass marketing techniques such as advertising. Public relations activities include sponsoring. the government. The most effective method of promotion probably is to have sales person provided that the organisation has sufficient funds. These sections include the organisation customers. suppliers. These "other" include the public at large labour unions. personal selling is very important in industrial marketing. the press and environmental groups. They direct this activity to parties other than target consumers. Further. the general public and the society in which the organisation operates.selling aims at individuals the right approach. The most effective method of promotion probably is to have sales person call upon every target consumers. for many institutions. this would be terribly inefficient. share holders. PUBLIC RELATIONS Marketers engage in public relations in order to develop a favourable image of their organisation and products join the eyes of the public. Consumers can easily leave the room-during a TV commercial. especially those that appeal to the mass market. Sales persons are in the position to tailor their messages according to the unique characteristics of each prospect. the sales person may quickly adjust it or the method of its presentation. ignore a store display. employees. The term public relations refers to a firm's communication and relationships with the various sections of the public. by observing and listening. Personal selling may be a very intense means of promotion. As a result. lobbying and using promotion message to persuade members of the public to take up a desired position. If feedback indicates that the message is not getting across. sales persons receive immediate feedback on the extent to which their messages are getting across. The critical point is that every . Public relations programme may higher be formal or informal.

availability and competitors' actions. to predict the relative strength of alternative strength of alternative advertising strategies and to increase their efficiency. such as the product's features. programme. Sales are influenced by many factors besides advertising. Sales-Effect : Communication-effect advertising research helps advertisers assess advertising's communication effects but reveals little about its sales impact. effectiveness. . ADVERTISING EFFECTIVENESS Advertising is an art not a science. should be concerned about its public relations. Testing for the effectiveness of ad. What sales are generated by an ad that increases brand awareness by 20% and brand preference by 10%? Advertising's sales effect is generally harder to measure than its communication effect. It is of two types.organisation. price. has been launched and one is referred to as cost testing which is done after launching the advertising campaign. Effectiveness of which cannot be measured with a mathematical or empirical formula some advertisers argue that advertising efforts go to waste. The basic purpose of advertising effectiveness is to avoid costly mistakes. will lead advertisement testing must be done either before or after the ad has done in the media. whether or not it has a formalized (organised. effectiveness feed back is always useful even if it costs some extra expenditure to the advertiser. The sales impact is easiest it is to measure in direct-marketing situations and hardest measure in brand or corporate-image-building advertising. has been launched and one is referred to as cost testing which is done before the ad. The sales impact is easiest to measure in direct-marketing's effect on sales. but every advertiser is keenly interested in measuring or in evaluation of ad. In measurement of ad. pretesting which is done before the ad. The fewer or more controllable these other factors are. the easier it is to measure advertising's effect on sales.

the experiment can be carried on the two . effort. Measuring Sales Response to Advertising : Though increase in sales in the true measure of advertising effectiveness. buying intention and the actual purchase in relation to ad. The element's presence observance is a reason for difference in sales.PROGRESS TESTS These assess the various stages of buyer awareness. Sales Results Tests : The additional sales generated by the ads are recorded. any one element of marketing mix is changed. in reality it is difficult to measure the increase that is due to a particular advertisement. we have considered advertising influence as the only factor which results in a purchase. Past Sales before the ad and sales after the ad are noted. Moreover. They are called sales effect tests. other variables which affect purchases. which has been developed by Daniel Starch and Staff company. It is compared with the sales of another similar market. The difference is attributed to ad impact. requires the measurement of both readers and non-readers who purchased and who did not purchase the brand under investigation. taking several routes. However. Controlled Experiment : In experimental market. a few methods have ben discalled in the following paragraphs which are generally used to measure the sales response to advertising. It is rather difficult to correlate the response in sales with the advertising programme. But the method is subject to a high level of false reporting and open to interviewer bias. There may be. preference. Instead of two markets. The Netapps Method : The term Netapps has been framed from the term net-ad-producepurchases. The netapps method is useful in the relative measurement of the sales-effectiveness of various advertising approaches. and often are. This method.

groups of consumers. Attitude Tests This is an indirect measurement of the post-testing effects of ads on attitudes towards the advertised product or brands. The assumption is that favourable attitude towards the product may lead to purchases. Most ads are designed to either reinforce or change existing attitudes. The inventory audit is dealers inventory before and after the ad is run. The change in attitude as a result of advertising is assessed. . An attitude is a favourable or unfavourable feeling about a product.

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