Overview of Advertising Management


y ³Advertising is the non-personal communication of

marketing related information to a target audience, usually paid for by the advertiser, and delivered through mass media in order to reach the specific objective of the sponsor.´ - John J Burnett

Overview of Advertising Management
y In general, advertising is valued because it is

y y y y y y

recognized as performing a variety of critical communications functions for the business firms & other organizations. Its basic functions are as follows: a) informing b) persuading c) reminding d) adding value e) assisting other company efforts

Overview of Advertising Management y Informing:y makes consumers aware of new brands y educates consumers about brand features & benefits y it is capable of reaching mass audience at a relatively low cost y it helps to increase consumers¶ top of mind awareness (TOMA) for established brands in mature product categories y it teaches new uses of existing brands .

advertising attempts to build secondary demand. creating demand for an entire product category.Gillette¶s Mach3 AD in 1998. y Sometimes the persuasion takes the form of influencing primary demand-that is.Overview of Advertising Management y Persuading:y Effective advertising persuades customers to try advertised products & services. y Example. the demand for a specific company¶s brand. . y More frequently.

Overview of Advertising Management y Reminding:.. y Effective advertising also increases the consumer¶s interest in a mature brand & thus the likelihood of purchasing a brand that otherwise might not be chosen. has been demonstrated to influence brand switching by reminding consumers who have not recently purchased an available brand. y It furthermore.) y Advertising keeps a company¶s brand fresh in the consumer¶s memory. .(contd.

Overview of Advertising Management y Adding Value:y There are 3 basic ways by which companies can add y y y y y value to their offerings 1. .Altering consumer perceptions These 3 value-added components are completely interdependent Innovation without quality is mere novelty.Improving quality 3.Innovating 2.

y Effective advertising causes brands to be viewed as more elegant. more prestigious.. y P&G considers it ³an investment in the brand-equity bank´.) y Consumer perception without quality and/or innovation is mere puffery. if not translated into consumer perceptions. are like the sound of the proverbial tree falling in the empty forest.(contd. y Both innovation & quality. more stylish. & perhaps superior to competitive offerings. .Overview of Advertising Management y Adding Value:.

Overview of Advertising Management y Assisting other Company Efforts:y Advertising can be used as a vehicle for delivering sales promotions such as coupons & sweepstakes & attracting attention to these sales promotion tools. . y Advertising pre-sells a company¶s products & provides salespeople with valuable introductions prior to their personal contact with prospective customers. y Another crucial role of advertising is to assist sales representatives.

) y Sales effort. and costs are reduced because less time is required to inform prospects about product features and benefits. y It can augment the effectiveness of price deals. .. time.Overview of Advertising Management y Assisting other Company Efforts:. y Advertising legitimizes or makes more credible the sales representative¶s claims. y Additionally. consumers can identify product packages in the store & recognize the value of a product more easily after seeing it advertised on television or in a magazine.(contd.

companies & other organizations that advertise y 2. y 3. advertising agencies-that are responsible for creating & placing ads for their clients.Overview of Advertising Management Advertising Process y 4 major groups are involved in the total advertising process: y 1. advertising production companies y 4. advertising media .

Here the advertiser is the source who transmits the message which passes through an appropriate medium like print. y The message must accomplish 3 tasks in order to be effective. . y Though marketers use advertising. television or radio.Overview of Advertising Management y Advertising is the most visible marketing tool which seeks to transmit an effective message from the marketer to a group of individual. basically it is a communication process. The message is decoded meaningfully.

busy audience members etc) may distort the effectiveness of communication. . y Sometime noise (includes poor message planning. y The advertiser puts the message through efficient media that reach the audience.Overview of Advertising Management y a) it must gain the attention of the receiver y b) it must be understood y c) it must stimulate the needs of the receiver and suggest appropriate method to satisfy these needs.

Overview of Advertising Management y The marketing communication mix (also called promotion mix) consists of 4 major tools. . y Advertising: any paid form of non-personal communication of ideas. goods and services by an identified sponsor. y Publicity: non personal stimulation of demand for a product/service/ Organization as a whole by putting significant news in media to create favorable image.

. employees and the society. shareholders. competitors. customers. y Public Relation: marketers engage in public relation to develop a favorable image of their organizations in the eyes of public-------public at large.Overview of Advertising Management y Personal Selling: for making sales. media. a direct approach and expects an immediate response in terms of sales. y Sales promotion is a short-term approach. a salesman interacts orally with the buyer or buyers in the form of a sales presentation. suppliers government.

Overview of Advertising Management y The Process of Marketing Communication: Encoding AD MEDIA Sales Person Decoding Advertising Publicity Personal Selling Target Audience Interpretation Marketing Manager Sender or source Feedback Marketing Research Receiver Consumer .

Overview of Advertising Management y What are the implications for Objective Setting? y Advertising is undertaken to accomplish goals such as:y A) making consumer aware of a new brand y B) influencing their expectations about a brand¶s attributes and benefits y C) encouraging them to try the brand .

that brand cannot be a member of their consideration set of viable purchase alternatives. if verified by the outcomes of brand-usage experience. . Unless consumers are aware of a brand. which.Overview of Advertising Management y The first goal. awareness. oftentimes by encouraging brand switching. is essential for new or un established brands. y Advertising must also instill in consumers expectations about brand performance. will evolve into specific beliefs. y Much advertising is designed to encourage consumers to undertake a trial purchase.

. message.Overview of Advertising Management y Advertising objectives are an expression of management consensus. and media aspects of a brand¶s advertising strategy. y AD objectives provide standards against which results can be measured. y Objectives determine how much money should be spent and provide guidelines for the kinds of message strategy and media choice needed to accomplish a brand¶s marketing communications objectives. y Objective setting guides the budgeting.

These categories can be framed in terms of the following questions: y WHO? y WHAT? y WHERE? y WHEN? y HOW Often? .Overview of Advertising Management y Several categories of AD objectives guide advertising strategy.

specify the target mkt. geo-demographics etc. invite product trial.involves 2 sets of considerations. 1) what emphasis? And 2) what goals? Emphasis issue relates to the features & benefits to be emphasized and the emotions to be evoked. What:.. encourage repeat purchase behavior. its demographics.Overview of Advertising Management y Who:. psychographics. facilitate consumers understanding. & its defining y y y y features.that is. influence purchase intentions. . AD may be designed to accomplish several goals. like Awareness amongst target mkt.

y A frame work called the ³hierarchy of effects´ is appropriate for accomplishing this understanding. . what months or seasons are best. y Advertising practitioners should look at advertising from the customer¶s perspective.Overview of Advertising Management y Where? When? How Often? y Which geographic markets need to be emphasized. and how often should the brand be advertised are additional issues that need to be addressed.

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