MEANING OF ADVERTISING EFFECTIVENESS

Advertising is an art not a science. Effectiveness of which cannot be measured with mathematical or empirical formula. Some advertisers argue that advertising efforts go to waste, but every advertiser is keenly interested in measuring or evaluating advertising effectiveness. Testing for the effectiveness of advertisement will lead advertisement testing must be done either before or after the ad. has done in the media. It is of two types, pretesting which is done before the advertisement has been launched and one is reffered to as which is done after launching the advertising campaign. The basic purpose of advertising effectiveness is to avoid costly mistakes, to predict the relative strength of alternative advertising strategies and to increase their efficiency. In measurement of advertisement effectiveness feed back is always useful even if it costs some extra expenditure to the advertiser. SALES EFFECT : Communication – effect advertising research helps advertisers assess advertising’s communication effects but reveals little about its sales impact. 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. Sales are influenced by many factors besides advertising, such as the product’s features, price, availability and competitors’ actions. The fewer or more controllable these other factors are, the easier it is to measure advertising’s effect on sales. The sales impact is easiest to measure in direct-marketing situations and hardest measure in brand or corporateimage-building advertising.

PROGRESS TESTS: These assess the various stages of buyer awareness, preference, buying intention and actual purchase in relation to advertisement effort. They are called sales effect tests.

MEASURING SALES RESPONSE TO ADVERTISING

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Though increase in sales in the true measure of advertising effectiveness, in reality it is difficult to correlate the response in sales with the advertising programme. However, a few methods have been discalled in the following paragraphs which are used to measure the sales response to advertising. THE NETAPPS METHOD: The term Netapps has been framed from the term net-ad-produce purchases. This method, which has been developed by Daniel Starch and Staff Company, requires the measurement of both readers and non-readers who purchased and did not purchase the brand under investigation. The Netapps method is useful in the relative measurement of the saleseffectiveness of various advertising approaches. But the method is subject to a high level of false reporting and open to interviewer bias. Moreover, we have considered advertising influence as the only factor which results in a purchase. There may be, and often are, other variables which affect purchases. SALES RESULTS TESTS: The additional sales generated by the ads are recorded, taking several routs. Past sales before the ad and sales after the ad are noted. The difference is attributed to ad impact. CONTROLLED EXPERIMENT In experimental market, any one element of marketing mix is changed. It is compared with the sales of another similar market. The element’s presence or absence is a reason for difference in sales. Instead of two markets, the experiment can be carried on the two groups of consumers. The inventory audit is dealers inventory before and after the ad is run. ATTITUDE TESTS This is an indirect measurement of the post-testing effects of ads on attitudes towards the advertised product or brands. The change in attitude as a result of advertising is accessed. The assumption is that favorable attitude towards the product may lead to purchases. Most ads are designed to either reinforce or change existing attitudes. An attitude is a favorable or unfavorable feeling about a product.

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CONCEPTUAL STUDY OF PROMOTION MIX
1. Advertising 2. Sales Promotion 3. Publicity 4. Personal Selling 5. Public Relations

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CONCEPTUAL STUDY OF PROMOTION MIX

People no longer buy shoes to keep there feet 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 is attractively and making it accessible to target customers. Companies must also communicate with their & potential customers. Every company is inevitably cast into the role of communicator & promoter. What is communicated however should not be left to change. To communicate effectively; companies hire advertising agencies to develop effective ads; sales promotion specialist to design sales incentive programmes & public relations firm to develop the corporate image. They train their sales people to be friendly and knowledgeable. For most companies, the question is not to communicate but rather what to say, to whom. Promotion influences demand by communicating product and company message to the market. A promotion strategy involves the coordination 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 co-ordinate on a campaign basis; taking the campaign may efforts include a total campaign with one unified theme. All promotion message tie in to this theme in one way or rather than conflicting with it.

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PROMOTION MIX

ADVE RTISI NG

SALES PROM OTIO N

PUBLI CITY

PERS ONAL SELLI NG

PUBLI C RELA TIONS

ADVERTISING
The word Advertising has its origin from a Latin word ‘Adventure’ which means to turn to. The dictionary meaning of the word is to 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. In business world the terms are mainly used with reference to selling the product of the concern.

The advertising 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, such as manufacturing the machine supplements the hands of the craftsman”. It is thus a process of buying / sponsor/identified media space or time in order to promote a product or an idea. From a careful scrutiny of the above definition, the following points emerge: Advertisement is a paid form and hence commercial in nature. This any sponsored communication designed to influence buyer behavior advertising. Advertising is non-personal. Unlike personal selling, advertising is done in a non personal manner though intermediaries or media whatever the form of advertisement. It is directed at a mass audience and not directed at individual as in personal selling.

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Advertising promotes ideas, goods and services. Although most advertising is designed to help sell goods, it is being used increasingly to further public interest goals. Advertising is identifiable with its sponsoring authority and advertiser. It discloses or identifies the sources of opinions and ideas. Advertising thus is : 1. Impersonal 2. A communication or ideas 3. Aimed at mass audience 4. By a paying sponsor The two forms of mass communication that are something confused with advertising are publicity and propaganda. If we eliminate the elements of the “paying sponsor we would have the element of publicity left. For publicity is technically speaking, advertisement without payment. In a similar manner, if we eliminate the requirement of an “identified sponsor”, the resulting communication is propagandists. It is important for us to emphasize that advertising may involve the communication of ideas or goods of service. We all are aware that advertising attempts to sell goods and services. But we may overlook the more important fact that it often sells ideas. Advertising may persuade with information; it may persuade with emotion: more frequently, it endeavors to persuade with some mixture of both.

MERITS  Can reach many consumers simultaneously  Relatively low cost per exposure  Excellent for creating brand images  High degree of flexibility and variety of media to choose from  Can accomplish many different types of promotion objectives.

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DEMERITS  Many consumers reached are not potential buyers  High visibility makes advertising a major target of marketing critics  Advertising exposure time is usually brief  Advertising are often quickly and easily screened out by consumers

1. ELECTION MEDIA
Advertisers use two types of media to reach target consumers over the airwaves; radio or TV. RADIO Advertisers using the medium of radio may also be classified as National or Local advertisers. The radio is a prominent vehicle of advertising in our country and accounts for a large sum of the total advertising budget. The radio serves principally local rather than national or large regional markets. Many small advertisers use the radio. So do some large organizations. When TV becomes a factor in the advertising scene, some industry observers felt that advertising might insignificant or even disappear. This has not been so, for radio operators have responded to the challenge by offering programmes that features music etc. which appeal to local audience consumers have responded very favourably to this approach. Moreover TC does not have coverage in our country. TELEVISION Late in India, a growing class of advertising media has been the TV. In our country, commercial advertising on TV is severely limited because broadcast timings are only in the evenings.The TV is a unique combination timing of sight and sound and achieves a deeper impact that the other media do. This is particularly advantageous for advertisers whose product

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require demonstration. TV advertising offers advantage of impact, mass coverage, competition, flexibility and prestigious. In our country not everyone has a TV set; therefore it does not reach everyone. Moreover in rural areas where 76.31% of our population lives, there are hardly any TV sets, except at the community centre and that too at the place where electricity is available. Moreover, TV programs in our country do not offer much selectivity. The translation is limited; any centre does not have TV tower. TV appeals to both the senses of sound and of sight. As a combines the two too produce high impact commercial. Finally, the fact that product or service is promoted on TV may build a prestigious image of the product and its sponsor. The pleasure derived from watching TV is at least potentially transferable to the advertising message delivered through the medium.

2. PRINT MEDIA
The print media carry their messages entirely through the visual mode. These media consist of newspapers, magazines and direct mail. NEWSPAPER: A sizeable share of the total advertising budget is spent on advertising in news papers. Newspapers in our country virtually reach most of the homes in the cities.since newspapers are local, marketers can easily use them to reach particular markets. This selectivity is easily rigorous. Some are in the twelve hour range. From the poit of view of the advertiser, newspaper offers several advantage, they are local in content and appeal and provide opportunity for direct communication between a product and its local dealers or distributors. Because newspapers supply news, they offer an atmosphere of factual information and of currency that may be favorable for some advertising situations. Advertisers can reach a very broad audience through newspapers. Which offer great flexibility. 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. MAGAZINES:

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Magazines are a mean of reaching different market, both original and material and of general and specific interest. As organization may approach national markets through such publication as Business India, Femina, Sportsweek, India Today, Business World and Filmfare. Some marketers divide their market on the basis of such variable as age, educational level and interest magazines. Magazines are divided into those parts that serve business, industrial consumers, ladies, sports etc. The primary advantage of magazine advertising is selectivity of market targets: quantity reproduction long life; the prestige associated with some magazines; and the extra service offered by many publications. The quality of magazines reproduction is usually high. Consumers sometimes keep individual copies for long period of time; reread them or pass them on to another. Some magazines have prestige value. The marketer can cover national or large regional markets at a low cost per contact. Magazines generally offer high-quality printing of advertisement.

3. OUTDOOR AND TRANSIT MEDIA

OUTDOOR ADVERTISING: Outdoor advertising involves the use of sign and bill boards, posters, or displays and electric spectacular. The marketers may purchase billboards on the basis of showings.a showing indicates the percentage of the total population of a particular geographic area that will be exposed to it during a month period. The highest showing is 100. Here the number of billboards is as would attract approximately 50% of the local population about 20 times during a month. 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. 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, while they are on

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shopping trips or area disposed towards shopping. Advertisers may utilize this medium to economically reach a large mass of people of small local markets.

TRANSPORT ADVERTISING: Transport advertising appears on the inside or outside of taxis, buses, railways and other modes of passenger transportation. Marketers may use transit advertisement to attain high exposure to particular groups commuters on the theory way to and from work and tourists. Repeat exposure is possible for a majority of the people in our country use public transport basis. Transport advertising is useful in reaching consumers at an advantageous point which they are embarking on a shopping trip. This medium is low cost medium.

SALES PROMOTION
According to American Marketing Association, Sales Promotion consists of those marketing activities other than personal advertising and publicity that stimulate consumer purchasing and dealer effectiveness. Sales promotion activities are impersonal and usually non recurring and are directed at the ultimate consumers, industrial consumers and middlemen. These activities tend to supplement the advertising and personal selling efforts. Examples of sellers promotion are free product samples, trading stamps, store displays, premiums, coupons and trade shows. For many organizations, including the marketers of food, toys and clothing, store displays are an important sales promotion device. Display exposes the promotion messages to consumers at the time and place or purchase. Such exposure is especially important for items that are bought on impulse. Numerous consumers products are purchased in stores that use self-service selling method’s. Marketers of such items need effective display in order to distinguish their products from products from those of their rivals. MERITS

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 Excellent approach for short term price reductions for stimulating demand  A large variety of sales promotion tools to choose from  Can be effective for changing a variety of consumer behavior  Can be easily tied in with other promotional tools. DEMERITS  May influence primarily brand-loyal customers to stock up at lower price but attract customers  May have only short term impact  Over use of price related sales promotion tools may brand image and profits  Effective sales promotions are easily copied by competitors.

PUBLICITY
Publicity is the means of promoting the mass market and is similar to advertisement, except that it is free, is found in the editorial portion of news media and pertains to newsworthy events. The most common type of publicity is news release, photographs and feature stories. Marketers have less control over the nature of the publicity that their organization and products receive than have over their advertising, personal selling and sales promotion messages. Upon releasing a news release, for instance, the editor or broadcast station programme director may choose to throw the release in the waste paper basket, change the hording or print or broadcast it is the original form. The disposition of the news release is entirely in the hands of the media and cannot be dictated by marketers. Publicity may be negative as well as positive. Some products and brands have received bad publicity; for example cigarettes, wings, artificial sweetners have been branded unsafe or unhealthy in the publicity which they would rather have done without. Many a companies and trade association officials attempt to develop favorable working relationships, with the media in order to minimize adverse impact upon the image of the organization.

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 As “free advertising” publicity can be positive and stimulate demand at no cost.  May be perceived by consumers as more credible, because it is not paid for by the seller  Consumers may pay more attention to these messages, because they are not quickly screened out as are many advertisements. DEMERITS  Publicity is not always possible because it is not in the hands of the seller  Limited repetition of publicity messages  Term promotion tool for brands  Publicity can be negative and hurt sales as well as company product, and brand images.

PERSONAL SELLING
Personal selling consists of persons to communication between the sales persons and their prospects. Unlike advertising, it involves personal interactions between the sources and the destination. Advertising aims at grouping the shotgun approach, while personal selling aims at individuals the right approach. Sales persons are in the position to tailor their messages according to the unique characteristics of each prospect. Personal selling may be a very intense means of promotion. Consumers can easily leave the room during a TV commercial, ignore a store display, the most effective method of promotion probably is to have sales person provided that the organization has sufficient funds.

PUBLIC RELATIONS
Most firms in today’s environment are also concerned about the effect of their actions on peoples out side their target markets although it may include them. It is a planned effort by an organization to influence the attitudes and opinions of a specific group by developing a long 34

term relationship. There target may be customers, stockholders, a government agency or a special interest group. The appeal of public relations is based on three distinctive qualities:

 High Credibility  Ability to catch buyers off guard  Dramatization

DIRECT MARKETING
Although there are many forms of direct marketing , direct mail, telemarketing, internet marketing, they all share four distinctive characteristics. Direct marketing is: NON PUBLIC:-the message is normally addressed to a person.  CUSTOMIZED:-the message can be prepared to appeal to the addressed individual.  UP TO DATE:-a message can be prepared quickly.  INTERACTIVE:-the message can be changed depending on the person’s response.

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FIVE Ms OF ADVERTISEMENT

MONEY Factors to consider:Stage of PLC Market share & consumer base Competition & clutter Advertising Frequency Product substitutabili

MESSAGE Message generation Message evaluation & selection Message execution Social responsibili ty review

MEDIA Reach,frequ ency, impact Major media types Specific media vehicles Media timings Geographic al media allocation MEASUREMEN T Communication impact Sales impact

MISSION Sales Goals Advertising Objectives

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