Chapter-13. Developing & Managing Advertising. CHAPTER – 13.

DEVLOPING & MANAGING ADVERTISING: Advertising: • Any paid form of non-personal presentation/promotion of ideas/goods/services by an identified sponsor. To develop an advertising program, starting point is: Identifying target market. Clarity on buyer motive/buying motive. Once this is clear marketer can then take five major decisions in developing the advertisement program (5M’s): Mission : What are advertising objectives? Money : How much can be spent? Message : what message should be sent? Media : What media should be used? Measurement : How should result be evaluated? Diagrammatically shown as: MESSAGE • • • MONEY MISSION
Sales Goals Advertising Objectives Factors are: PLC Stage. Market Share & Consumer base. Competition. Ad Frequency. Product Substitution. Message Generation. Message Evaluation & Selection. Message Execution. Social Responsibility.

MEASUREMENT
Communication Impact. Sales Impact.

MEDIA
Reach Freq/ Impact. Media Type. Media Vehicle. Media Timing. Geographical Media Allocation.

Advertising objectives………………………………..: Target markets. Market positioning Promotions objectives. Marketing communication mix //promotion mix Other marketing mix decisions.

Marketing Mix Decisions

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Chapter-13. Developing & Managing Advertising. Above objectives categorised into: Decided based on….above + current market situations. Information Advertising: Used primarily to inform target about product offering. – Build primary demand. Information could be about: New product. New uses of a product. Price changes. Explain how product works, etc… Persuasive Advertising: Used mainly in competitive stage to build selective demand/preference for a Brand. Persuasion could be about: Building brand preference. Encouraging switch to brand. Change buyers perception of product attributes. Comparative advertising to build cognitive & offer motivation simultaneously. Reminder Advertising: Used for mature products. Messages could be about: Reminding buyer’s that they may need it in near future (off season ads). Reminding buyers where to buy it. Reinforcement advertising: Assure current buyers. Deciding the Advertising Budget: Role of Advertising is to increase demand to a level so as it fulfils sales goals For this, co. needs to know whether it is spending the right amount/ too much/ too little To set appropriate advertising budget factors to be considered are: PLC Stage: New products need large advertising budgets. Established products may need lower advertising as a % of sales (Supportive advantage). Market share/Consumer Base: To build mkt share by increasing mkt size requires a larger budget High mkt share brands require lower advtg as a % of sales Competition /Clutter: If number of competitors are increasing with high advertising spending, then company also needs to counter resultant Ad clutter with heavier Ad spending. Ad Frequency: Number of repetitions required to put across message has a direct impact on ad spend Product Substitutability: If a product is easily substitutable then it requires higher advertising to establish brand equity/ diff. image. E.g.: Soft Drinks.

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Chapter-13. Developing & Managing Advertising. In addition to above Ad budget may be decided based on: Vidale Wolfe Model Adaptive Control Model (John Little) VIDALE WOLFE MODEL: Ad spend- Function (Sales response rate, sales decay, untapped sales potential). Sales Response: Link between sales & Ads. Sales Decay: Rate at which customer forgets its message/Advertising & brand. Untapped Sales Potential: Customer target group from profits which is yet to buy product category. ADAPTIVE CONTROL MODEL: Market broken up into 3 geographic entities/territories. Three different levels of Ad spending undertaken in each territory (Low /medium/high). Results of advertising tracked in each territory. Information thus obtained is used for planning ad spending in next period. Choosing the Advertising Message: Good advertising campaign message needs high level of creativity. To develop a creative message, advertisers go through following steps: Message generation. Message evaluation/ selection. Message execution. Message social responsibility review. Message Generation: The principle products should convey the major benefit that brands offers & should be delivered along with the product concept. In practice, even with the same product concept there may be multiple ways of conveying a message. Also over a period of time the marketer may think of changing message. Hence message generation requires a highly creative effort. Creativity could be guided by: Induction Aids to develop creative messages. Induction + deduction Inductive Framework: This involves in depth interviews of customer groups to understand: What kind of people they are? How they would use the product? Why would they buy it? Their feelings about strengths/weaknesses of competitor’s brands. Interviews may also cover: Dealers/distribution. Experts.

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Chapter-13. Developing & Managing Advertising. Deductive Framework: (John Maloney) Buyers expect one of the 4 types of rewards from a product: Rational, E.g.: Hero Honda splendor gives 75km/ltr mileage. Sensory, E.g.: MOOV. Social, E.g. in the eyes of others. Ego satisfying ,E.g. Self Satisfying. Result of use/ experience. Product in use experience. Incidental to use experience. Based on this, a grid is created as follows: Types of pdt rewarding Exp with the pdt. Rational Clean clothes Result of use exp Pdt in use exp Incident to use exp
Lather formation, dissolves Economically priced

Product Rewarding Type Sensory Social
Whiteness , Smell Soft to hands New look

Ego satisfy

Color lasts longer, Confidence Cleaner clothes Saves water Saves time/money {surf excel} Clarity when tide was introduced returns was donated to charity Prestige [Surf]

E.g.: Detergents. An message is generated for each cell (12 msgs min.). • Results of use: Outcome of using product (message showing above). • Product in use: How pdt is used (each of use/convenience)? • Incidental to use: Additional features which may differentiate product? Message Evaluation & Selection: Messages generated need to be evaluated & selected. Messages are rated on: Desirability: Message should convey something desirous + interesting about product. Exclusiveness: Message should convey some distinctness about product that doesn’t apply to other brands in product category. Believability: Message should be believable/provable. Advertiser should conduct market analysis + MR to determine which message is most likely to succeed. Message Execution: Impact of message depends on what is said & how it is said. Messages could be: Rational. Emotional. Moral. To execute message we need clarity on: Style. Tone. Words. Format. 4

Chapter-13. Developing & Managing Advertising. Style: Any message could be presented in one/many styles. Styles could be: • Normal setting/ slice of life • Lifestyle E.g.: Thumbs up • Fantasy E.g.: All out, Boomer • Mood/image • Musical E.g.: Nescafe • Personality E.g.: Park Avenue • Tech expertise E.g.: Intel • Scientific evidence E.g.: Sunsilk • Testimonial etc E.g.: Fair n Lovely Tone: Communicator must choose suitable tone for Ad. Tone could be: • Humorous E.g.: Krack Jack • Emotional E.g.: Dhara • Factual E.g.: Head & Shoulders • Experimental E.g.: Whisper Words: Words used in the msg should be Memorable Attention getting Especially for print medium certainty is required to frame headlines, headlines could be: News Questions Narrative Command 1- 2- 3 ways How- What- Why For TV/radio medium, words used could be Easy on the lips Mix of language (Hindi- English) Distinctive Format: Make a substantial diff on the impact of pdt Ad Elements include Ad sizing Visuals used Colors/Toning used

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Chapter-13. Developing & Managing Advertising. Social Responsibility Review: Creativity advtg in should not over step social/legal norms Typically false claims/deceptive advtg should be avoided to extent possible Further Ads should not mislead unwary people into trying out action which may be dangerous such ads should carry suitable warning msgs. if used/ aired at all. Deciding on the Media: After choosing the ad msg the next task is to choose the ad media to carry msg For this decision to be taken are: Desired reach/ frequency/ impact Choosing among major media types Selecting specific media vehicles Deciding on media timing Geographic media allocation Desired Reach/Freq/ Impact: Media selection involves finding the most cost effective media to deliver the desired no. of exposures to the target audience Ad is meant for the purpose of obtaining certain response from target audience Suppose response sought is pdt trial (T) To get a certain trial rate mkter may need to create certain awareness level (A) To produce the required awareness the msg/ Ad may need to be given in min. exposure (t) The effect of exposure on audience awareness depends on: Reach (R): No. of diff persons/ …. exposed to part media schedule at least once during specified time period. Frequency (F): No. of times within specific time period that an average person/ … is exposed to the msg Impact (I): Qualitative value of an exposure thru a given medium/vehicle. Ultimate task is to create a media schedule that is Cost effective Provides required exposure to ad Results in adequate impact on target audience For this calculation done is: Calculated gross rating points of each media schedule groups, indicates total no. of exposures of a part media schedule. Group = E = RxF (particular media schedule) For diff media schedule their respective groups or E values can be determined. Hence comparison is possible. E.g..: If a particular media schedule Reaches 60% of ….(R) Average exposure frequency (F) is 3 GRP= 60x3=180 for this media schedule Calculated weighted no. of exposures (WE) WE = GRP x I (I= impact of media) 6

Chapter-13. Developing & Managing Advertising. Media planning trade off is to obtain: Within a pre planned budget Most effective combination of reach/freq/impact Reach most imp for: New pdt launch Flanker brands Brand extensions Infrequent purchased pdts When target mkt is loosely defined/undefined Frequency is most imp when: Strong competition exists Msg is complex Cust resistance is present Pdt is frequency purch/repurchase

Choosing among Media Type To choose among major media types communicator needs to understand/ know the reach/ freq/ impact of each media type: Media types could be: Newspapers Advantages: Flexible Timely Good coverage of local mkts Broad Acceptance High Believability Disadvantages: Short life (1 Day: Recall) Ltd space Low captive audience Cost: National circulation Rs. 1000- 8000 per cc Local dailies are lower in cost.

TV

Combines sight/sound/motions Appeal to senses High attention/ high reach Disadvantages: High absolute cost High clutter Fleeting exposure Low audience selectivity Cost: Prime time Rs. 90,000 for 10 seconds spot

Advantages:

Radio

Advantages:

Audiences selectively geog/demographic Mass use Low cost Disadvantage: Media only Non std rates Fleeting exposure Low attention from audience Cost: Rs. 5000 for 30 sec spot

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Magazines

Chapter-13. Developing & Managing Advertising. Advantages: Geog/ demographic selectivity Credibility/ prestige Long life Good pass along readership Disadvantage: Long ad purchase lead time /cycle Some waste circulation Cost: Approx Rs. 100,000 for full page color in national magazines

Speed Mail

Advantages:

Audience selectivity Flexibility No. of clutter/competition in same medium Personalization Disadvantage: Expensive (per head cost) May be ignore due to junk mailing Cost: Cost of database Cost of mailer/ postage

Outdoor (Hoardings /Ad poles/..) Advantages: Flexible High repeat exposure Controllable costs (low in costs) Disadvantages: No. of audience selectivity Ltd space for creativity Cost: Varies location to location/ city to city/ Approx. Rs. 20,000/ p.m. for 20”x 20” in good location Specific media selected based on: Target audience media habits Pdt type Message Cost Media type: Newspaper vehicle: TOI, HT, etc Selecting Specific Media Vehicle: To select specific media vehicle within a certain media type, media measurement service are relied on These services provider ……………: Audience size Audience composition (Demographic) Media cost E.g.: Media type: Newspapers Media vehicle: TOI/IE/HT/HINDU etc. Typically cost per 1000 people reached by a vehicle is calculated for decision making (reach of relevant customer)

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Chapter-13. Developing & Managing Advertising. Deciding on Media Timing: To decide which type of media to use & when mktr needs to be: Macro scheduling Micro scheduling Macro: Decisions taken on ad scheduling in relation to seasonality (business cycle trends of pdt) E.g.: 70% of sales happen in the period June- Sep For a pdt co. may decide to: This is Macro scheduling Micro: Once macro scheduling has been decided micro needs to be created This calls for allocating advtg exp within a short time to obtain max impact Micro scheduling could be: Concentrated Continuous Intermittent Further frequency of ads could be: Level Rising in the given period Falling Alternating Geographic Media Allocation: A co. has to decide on how to allocate its media spend geographically Typically a co. does National Advtg Regional /local Advtg Firm needs to develop how much to spend in each territory This is based on: Current sales Estimate of sales production Competitive position Strategy for geog territory EVALUATING AD EFFECTIVENESS: Typically effectiveness of ads measured in terms of: Communication Effect: Effect of a communication is understood thru: Pre Testing Post Testing Pre Testing is done before an Ad is released in the form of: Lab Testing: To test attention getting power Direct Rating: To evaluate Ad attributes Portfolio Test: To evaluate recall. Follow seasonal patterns Off season patterns Have constant advice

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Chapter-13. Developing & Managing Advertising. The form of research to determine: Increase in brand awareness Brand competition Brand preference Sales Effect Impact of advtg on sales measured thru Historical Approach Experimental Design Historical Approach Past sales & Advtg data is taken & analysed for: Short term impact Long term impact Marginal impact of advtg is understood from this. ` Experimental Design This involves use of adaptive control method (spend differential amounts in diff areas to measure impact).

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