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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
• Message
Generation.
• Message
Evaluation &
Selection.
• Message
Execution.
MONEY • Social
Factors are: Responsibility.
MISSION PLC Stage. MEASUREMENT
Sales Goals Market Share & Communication Impact.
Advertising Consumer base. Sales Impact.
Objectives Competition.
Ad Frequency.
Product Substitution.

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 Marketing Mix Decisions
Other 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 Product Rewarding Type


Exp with the pdt. Rational Sensory Social Ego satisfy
Result of use exp Clean clothes Whiteness , Color lasts longer, Confidence
Smell Cleaner clothes
Pdt in use exp Lather Soft to hands Saves water Saves time/money
formation, {surf excel}
dissolves
Incident to use exp Economically New look Clarity when tide Prestige [Surf]
priced was introduced
returns was
donated to charity

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.

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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)

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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: Frequency is most imp when:


New pdt launch Strong competition exists
Flanker brands Msg is complex
Brand extensions Cust resistance is present
Infrequent purchased pdts Pdt is frequency purch/repurchase
When target mkt is loosely defined/undefined

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 Advantages: 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

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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Chapter-13.
Developing & Managing Advertising.
Magazines 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: Follow seasonal patterns


Off season patterns
Have constant advice
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.

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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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