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Developing and Managing an Advertising Program

Five M’s of Advertising

Start Here:
Identify: a) Target
Market b) Buyer
Motives

+ specify the
target audience
and time period

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 Developing and Managing an Advertising Program
Five M’s of Advertising

Start Here:
Identify: a) Target
Market b) Buyer
Motives

+ specify the
target audience
and time period

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Setting Advertising Objectives

Informative: create brand awareness and knowledge of new

product or new features

Persuasive: create liking, preference and purchase of product

Reminder: stimulate repeat purchase of product and services

Reinforcement: convince that purchasers made the right decision

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Informative Advertising

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Persuasive Advertising

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Reminder Advertising

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Reinforcement advertising

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Direct Action Advertising

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Direct Action Advertising

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Indirect Action Advertising

• Carried out to make a positive effect on the mind of the reader or viewer

• After getting the advertisement he does not rush to buy the product but he
develops a favorable image of the brand in his mind.

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Comparative Advertising
Compares specific characteristics of 2 or more brands

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Ambush Advertising “Tactic”
Short term ploy riding on competitor’s marketing spend & market salience

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 Developing and Managing an Advertising Program
Five M’s of Advertising

Start Here:
Identify: a) Target
Market b) Buyer
Motives

+ specify the
target audience
and time period

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Deciding on the Advertising Budget

• Stage in the Product Lifecycle

• more for new products

• Market share and consumer base

• less if you have more market share

• Competition and clutter

• more if more clutter

• Advertising frequency
• Depends on number of repetitions required to put brand’s message across

• Product substitutability
• more for commodity like products eg: soaps, beer, banks, etc

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Advertising Elasticity

• Advertising elasticities have been found to be higher for newer products than for
established products

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 Developing and Managing an Advertising Program
Five M’s of Advertising

Start Here:
Identify: a) Target
Market b) Buyer
Motives

+ specify the
target audience
and time period

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Message generation and evaluation

• – Positioning of an ad—what it attempts to convey about the brand.

• A good message should

• Connect emotionally and rationally

• Connect FRESHLY

• Must be flexible (across media, mkt, time)

• Focus on 1-2 core selling points

• Conduct market research to determine which appeal works best

• (explore many theme before deciding on one)

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Message generation and evaluation
• Creating Brief
• 1-2 pgs (key message, target audience, company obj, key brand benefits, supports for
brand promise, choice of media)

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Exercise

Write a Creative Brief for a campaign to launch a new

product of your choice.
The brief needs to be given to the Creative Agency

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Creative Development and Execution

Advantage
• Reaches broad spectrum of
consumers
• Low cost per exposure
• Ability to demonstrate product use
• Ability to portray image and brand
personality
Advantage
• Detailed product information
• Ability to communicate user imagery
• Flexibility
• Ability to segment

Disadvantage Disadvantage
• Brief • Passive medium
• Clutter • Clutter
• High cost of production • Unable to demonstrate product use
• High cost of placement
• Lack of attention by viewers
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Print Advt

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Developing Print Ads

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Headline

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Headline

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Headlines

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Copy

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Writing effective Copy

• Should appeal to all senses

• Tell the Who, What, When, Why, Where,

How of your product

• Select keywords that immediately connect

with users
• Compare
• Introducing
• Now
• Price
• Save
• Easy
• New

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Illustration (Image)

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Illustration (Image)

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Illustrations (Image)

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Illustrations (Image)

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Print layout – Z format

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Print layout – Z form

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Print Advt Evaluation Criteria

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Legal and Social Issues

• Advertisers must not make false claims

• Must not use false demonstrations

• Must not create ads with the capacity to deceive

• Must avoid bait-and-switch advertising

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 Developing and Managing an Advertising Program
Five M’s of Advertising

Start Here:
Identify: a) Target
Market b) Buyer
Motives

+ specify the
target audience
and time period

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Variables in Media Selection

Reach:
number of different persons or households exposed to a particular
media schedule at least once during a specified time period

Frequency:
number of times within the specified time period that an average person
or household is exposed to the message

Impact:
qualitative value of an exposure through a given medium.

Exposure:
exposure to the ad message.
Exposure depends upon Reach, Frequency, and Impact.

Exposure (Gross Rating Point (GRP)) = Reach & Frequency;

Weighted number of Exposure = R*F*I
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Measurement
Exercise 1
• Exercise – A campaign delivers an average frequency of 5 impressions to
1,000,000 Millennials (18-34 year-olds), out of an average total population of
70,000,000 Millennials. Calculate % Reach and GRP from the given data.

Exercise 2
• Exercise – Netflix promotional campaign in India resulted in following numbers.
Calculate % Reach and GRP from the given data for online population as well as
Indian population aged 12 – 50. Calculate it for the month of Nov 2018 and Dec
2018.

Month Campaign TG 1 - Online TG 2 - India Frequency

Reach Population Population (12 – 50)
Nov 2018 22,854,000 507,089,000 937,293,000 8
Dec 2018 15,560,000 507,089,000 937,293,000 11

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Choosing among major media types

“Place” Advertising Options

• Newspapers

• Television

• Direct mail

• Radio

• Magazines

• Outdoor

• Yellow Pages

• Newsletters

• Brochures

• Telephone

• Internet

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Media Scheduling Patterns

• Determined by

• Buyer turnover

• Purchase frequency

• Forgetting rate

• Macro-scheduling

• Micro-scheduling

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 Developing and Managing an Advertising Program
Five M’s of Advertising

Start Here:
Identify: a) Target
Market b) Buyer
Motives

+ specify the
target audience
and time period

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Evaluating Advertising Effectiveness

• Communication-Effect research
• Copy testing
– Should be done both before and after the media has been put into publication

• Sales-Effect research

• Awareness Impact

• Knowledge Impact

• Preference Impact

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Measurement – Digital media

• Unique visitors to a site

• Impressions

• Number of clicks

• Click-through rate

• Applications completed

• Conversion

• Engagement

• Cost per thousand Impressions (CPM)

• Return on Investment (RoI)

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Managing Sales Promotions

• Consists of a collection of incentive tools, mostly short term, designed to stimulate

quicker or greater purchase of products or services by consumers or the trade.

• Whereas Advertising offers a reason to buy, Sales Promotion offers an Incentive

Consumer directed Sales Promotion Trade directed Sales Promotion

• Samples • Patronage rewards • Price offs

• Coupons • Free trials • Allowances

• Cash refund offers • Tie-in promotions • Free goods

• Price offs • Sales contests

• Premiums / Gifts • Spiffs

• Prizes / Contests • Trade shows

• Specialty advertising
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Public Relations

• Public relations (PR) includes a variety of programs to promote or protect a

company’s image or individual products

• Companies often have a PR department (also often treated under Corporate

Communications)

• Counsel top management to adopt positive programs and eliminate questionable

practices

• Public: Group that has an actual or potential interest in company’s objective

• Customers, Suppliers, Shareholders

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Public Relations

• Press relations
• Presenting news and information about the organization in the most positive light

• Product publicity
• Sponsoring efforts to publicize specific products.

• Corporate communications
• Promoting understanding of the organization through internal and external
communications.

• Lobbying
• Dealing with legislators and government officials to promote or defeat legislation and
regulation.

• Counseling
• Advising management about public issues, and company positions and image during
good times and bad.
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Tasks aided by Public Relations

• Launching new products

• Repositioning a mature product

• Building interest in a product category

• Influencing specific target groups

• Defending products that have encountered public problems

• Building the corporate image in a way that reflects favorable on products

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Outlets used in Public Relations

• Publications

• Events

• Sponsorships

• News

• Speeches

• Public Service Activities

• Identity Media

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Launching the BMW Z3 Roadster

• What was the strategic significance of the Z3 Launch?

• What are the benefits and risks of Non-Traditional Marketing Approach?

• Explain both in general and in context of Z3 Launch.

• Various Non-Traditional Marketing tools were used for Z3 launch?

• What do you think were the objectives of each of those tools?
• Were each of those tools necessary?
• If you had to remove any of those tools which one would it be and why?

• With Phase 1 accomplished, what should be objectives of Phase 2?

• Design a Phase 2 plan that is capable of building on and sustaining the excitement
generated in Phase 1?

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Thank you

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