Unit 1 Part 2 IMC Ad Classification

 2.
1 Advertising- definition, goals, appeals in

advertising-, classification of advertising,
Budgets of advertising.
 2.2. Define Personal selling , advantages and
disadvantages of personal selling, steps in
personal selling ,
 2.3 Direct Marketing – definition, advantages
and disadvantages, tools of direct marketing.
Case on direct marketing
 2.4 database marketing –Objectives, process
of database marketing, database for direct
marketing.
Dr Neelam Raut 4/16/2021 1

 AMA- “ Any Paid form of non personal
presentation and promotion of ideas
, goods and services by an identified
sponsor”.
Functions of Advertising 2 basic ways
 As a Tool of marketing
 As a means of communications
and persuasion

Advertising is the non personal communication of
information usually paid for and usually persuasive in
nature about products, services or ideas by identified
sponsors through the various media.
Non Personal Advertising is a form of mass
communication, So it is non-personal
Paid Communication Advertising is a paid form of
communication, although some forms of advertising,
such as public service announcements(PSAs), are
donated space and time.
Persuasive Communication Advertising tries to
persuade or influence the consumer to do something,
Although in some cases the point of the message is
simply to make consumers aware of the product or
company.
The real objective of advertising is effective communication between producers and consumers
with the purpose to sell a product, service, or idea.
Informative
 Objective of advertising is to inform its targeted audience/customers about
introduction of new product, update or changes in existing products or product
related changes, information regarding new offers and schemes. Informative
advertising seeks to develop initial demand for a product. The promotion of any
new market entry tends to pursue this objective because marketing success at this
stage often depends simply on announcing product availability. Thus, informative
advertising is common in the introductory stage of the product life cycle.
Persuasive
 Objective of advertising is to increase demand for existing product by persuading
new customer for first time purchase and existing customers for repurchases.
Persuasive advertising attempts to increase demand for an existing product.
Persuasive advertising is a competitive type of promotion suited to the growth
stage and the early part of the maturity stage of the product life cycle.
Reminder
 The objective of advertising is to remind customers about existence of product,
and ongoing promotional activities. Reminder advertising strives to reinforce
previous promotional activity by keeping the name of a product before the public.
It is common in the latter part of the maturity stage and throughout the decline
stage of the product life cycle.

Mathews, Buzzell, Levitt and Frank have listed some specific
objectives of advertising.
 To make an immediate sale.
 To build primary demand.
 To introduce a price deal.
 To build brand recognition or brand insistence.
 To help salesman by building an awareness of a product
among retailers.
 To create a reputation for service, reliability or research
strength.
 To increase market share.
 Informative
 Persuasive
 Reminder

 SMART Goals for Advertising
The acronym SMART stands for specific,
measurable, attainable, realistic and timely
Specific-An example of a specific dollar goal
would be a plan to achieve a 10 percent ad
revenue increase within the next 12 months
Measureable-For example, if the goal is to
increase advertising sales by 10 percent in
the next year, that would mean that each
month the company should see a 0.833
percent increase.
 Attainable-To calculate how much of a revenue increase
you are expecting over the next 12 months, factor in
the current economy, past account representative
performance, plans for increased productivity and any
changes being made, such as opening a new market in
which to sell.
 Realistic-If you are a small business with a limited
budget, a goal to be the largest advertising agency in
Houston within six months is not realistic, nor likely to
happen.-One example of a realistic goal in advertising
might be to develop an advertising campaign for the
Houston Astros before the year is out
 Timely-Timeliness moves your company forward.
If the goals have short time frames for achievement,
you are able to move on to the next level. Timeliness in
advertising is almost a given because of deadlines.
 Building Brand Images- eg coca cola , cadbury , vodaphone,
Amul
 Providing Information- about product goods and services
 Persuasion-
 Convince consumers about brand,
 One brand is superior to other
 Negative consequences of not using the brand
 Used more in B2Cmarketthan B 2 B markets
 Supporting Marketing Efforts- helps to support other marketing
functions
 Mfg use advertising to support trade and consumer promotions
 E.g. theme packing, combination offers … buy one get one free,
pre chrismast sales
 Encouraging Action – TV ad prompting consumers to take action
by dialing a toll free No to make a quick purchase .
 Action Oriented advertising used in B2B marketing

Advertiser
A
D Advertising
I
V Agencies
N
E
D
R
U The Media
T
S
I
T
S Ancillary
R
I services
Y
N
G
Free lancers
 They are sponsors of the advertising.
 Maintain an advertising department.
 Ad department is in charge of an advertising manager.
 Ad manger reports to Chief Executive / Director
Marketing /Divisional Head.
 Ad manager has managerial and operational functions.
 He is responsible for interacting with agencies and
media.
 Outdoor ads, campaign planning, media planning.
 Points of purchase preparing, sales promotion and
merchandising.
 Press relations ,PR functions.
 Ad department decides on advertising budget.
 Team of experts appointed by clients to plan
, produce and place advertising campaigns in
media.
 Accounts executive – called as A/c director
(if member of board)
 Link between client and staff .
 Briefed by marketing/sales/ advg
department of the board.
 Reaches clients for new business.

 Copy writers- words smith – do wording of an
advertisement.
 Contribute to the theme of advertising .
 They should have flair for language.
 They create copies for adverting.
Visualisers- put on paper what has been
thought by copywriters.
They design the ad. They should be good at fine
/ commercial arts

 Creative director-coordinates the copywriting
and designing
 Production department-person of diverse talents
like printing technology ,DTP, photography,
typography,
 Media Planner-allocates ad budget amongst
media.
 Selects appropriate media
 Decides frequency , size, position of
advertisement
 Decides publication date of advertisement
 He is guided by media research
 Most professionalized department of ad agency

 Media sustains on adg revenue
 They sell space and time
 They convince the client about reach of
the media vehicle ,composition break up of
their readers, pricing of space and time
selling
 Monitor market , survey readers.
 Highlight readers demographic and
psychographic characteristics.
 Maintain relationship with media
department of advg agencies buying space
/time on behalf of client
 To produce or create advertisement
 Provide services like
1. Studio services
2. Photographic services
3. Printing services
(career options – models and people who
provide models too)

 Independent professional and have
successful track record.
 Copywriters
 Jingle singers
 Radio announcers
 Artists
 Visualisers
 Technical writers

https://www.youtube.com/watch?v=Gbk6GX6NGa4
https://www.youtube.com
/watch?v=LSrcyxujiiE

 Geographical spread-(i) national (ii) local (iii) global
 By target group (consumer ,Industrial , trade,
professional advertising)
 By type of impact (primary/selective demand, direct
or indirect action advertising, institutional advertising)
 Public service advertising
 Product advertising
 Service advertising
 Institutional/corporate advertising
 Public relation advertising
 Public service advertising
 Financial advertising
 International advertising
 Covert advertising
 Election advertising
 Political advertising
1. National
2. Local
3. Global
NATIONAL
Advertising:https://www.youtube.com/watch?v=XzJj-PL-
kPs
(The India Poised initiative was launched in January 2007 by the Times of India Group. It celebrated India's recent successes and its growing
importance on the global radar, but also conducted a critical assessment of sectors where India failed to deliver.)
Some ‘manufacturers may’ think that their target is, the

entire country.
They select media with’ a countryside base.
The goals of national advertisers are to inform or remind
consumers of the company or brand about its features,
benefits, advantages, or uses and to create or reinforce its
image so that consumers will be predisposed to purchase
it.
Generally large, established firms belong to this category.
Among them are Hindustan Lever, Brooke Bond, Larsen &
Toubro, Escorts, Associated Cement etc
https://www.youtube.com/watch?v=syZju6ui394

Retail/Local Advertising:
Retail or local advertising tends to emphasize specific patronage
motives such as price, hours of operation, service,
atmosphere, image, or merchandise assortment. Retailers are
concerned with building store traffic, so that their promotions
often take the form of direct action advertising designed to
produce immediate store traffic and sales.
Small firms may like to restrict their business to State or regional
level.
Some firms first localize their marketing efforts and once success
has been achieved, they spread out to wider horizons.
Global Advertising:
Multinational firms treat the world as their market.
E.g. Coke has been using the same standardized advertising in all
countries. Pepsi adopts the common theme to the national
culture.
Firms such as National, IBM or Sony or Ford advertise globally, e.g.,
in periodicals like Times, Readers Digest etc.

1.Consumer Advertising
A very substantial portion of total advertising is
directed to buyers of consumer products who
purchase them either for their own use or for
their household’s. This type of ad is
otherwise called as consumer advertising.

2.Industrial Advertising :
Advertisements directed towards industrial users(buyers of raw
materials, component parts, machineries etc) are regarded as
industrial advertising.
i.e. consumers who purchase goods for their industrial use and
advertisements directed towards these consumers are known as
industrial advertising.

3.Trade Advertising:
Advertisements, which are
directed by the
manufacturers to the
distribution channel
members, such as
wholesalers or retailers, are
called trade advertising.
The objective of such
advertising is to promote
sales by motivating the
distribution channel
members to stock more or
to attract new retail
outlets.

4. Professional Advertising:
There are certain products for which
the consumers themselves are not
responsible for the buying choice.
The classic examples are
pharmaceuticals where the
decision is made by doctors while
the consumers are the patient.
Other examples: constructions where
architect , civil engineers and
contractors are professional people
making decision and called as
professional advertising

Primary-Demand and Selective- Demand advertising
 Primary demand advertising stimulates the need for a particular category of
products and the aim is not to sell one brand.
Diamonds forever was used to arouse the need for diamonds and not to sell
the brand of De Beers
 Once the need for particular category is established, selective demand advertising
comes into picture. These advertisements concentrate on a particular brand of a
product and try to promote it. De Beers, after it made diamond jeweler popular,
went on for selective demand advertisements.
 Advertising for generic products is called primary advertising e.g. tea, coffee,
paints etc.
These are unbranded products.
At later stages, these commodities are branded and specific brands are promoted.
‘They are called selective advertising. E.g. Tata tea, brook bond
Direct action advertising expects immediate response from the buyers such as
soliciting orders through direct mail.
e.g. When someone wears a golf shirt with your company’s logo stitched to its
sleeve, that’s an indirect action message.
Mostly advertising is indirect action advertising which makes the consumers
favourably inclined towards the product so that they can later on buy these
products ‘ in future.

 Public Relations Advertising (PRA)Organizations
 Focused on type of image they project they have
to communicate their objectives to the general
public.
 Public relations, in short, try to build rapport
with various constituents of public such as
employees, customers, local authorities,
pressure groups, vendors, customers,
shareholders, government and public at large.
 Public relations advertising helps to maintain
this relationship.

Political Advertising As most of the political
advertising is directed to public, it comes
under the category of public relations
advertising.
 Political advertising is created either by
political parties or candidates.
 Mostly we come across such advertising at
the time of elections.

Election advertising either lists the
achievements of the party of candidate or
propagates their ideological basis.
 Sometimes, they are provocative too.
 Such advertising may become comparative,
where the weaknesses of the opposition are
highlighted to show their party or candidate
in favourable light.

 Financial Advertising When public limited
companies’ invite the general public to
subscribe to the share capital of the
company, it is called financial advertising.
 In a broader sense, it includes all
advertising by financial industry such as
banks, car loan companies, insurance
companies, non-banking financial companies
etc.

 Directory Advertising The best known form
of directory advertising is the Yellow Pages,
although many different kinds of directories
perform the same function.

Direct-response advertising can use any
advertising medium, including direct mail, but
the message is different from that of national
and retail advertising in that it tries to stimulate
a sale directly. The consumer can respond by
telephone or mail, and the product is delivered
directly to the consumer by mail or some other
carrier.

 Business-to-Business Advertising
Business-to-business advertising includes
messages directed at retailers, wholesalers,
and distributors, as well as industrial
purchasers and professionals such as lawyers
and physicians.
Advertisers-place most business advertising in
business publications or professional
journals.
E.g. wholesale dealer of medical equipments
like wheel chair, bed pan etc
Institutional Advertising
 Institutional advertising is also called corporate
advertising.
 These messages focus on establishing a corporate
identity or winning the public to the
organization’s point of view.
 Designed to enhance a company’s image rather
than promote a particular product
 One example would be a grocery chain running
advertisements which stressed the general quality
or low prices of its food, rather than detailing
specific offers it was running.

 Interactive advertising is delivered to individual
consumers who have access to a computer and
the Internet. Advertisements are delivered via
Web pages, banner ads, and so forth.
 In this instance, the consumer can respond to
the ad, modify it, expand it, or ignore it.
E.g. An effective interactive advertising method is
Internet marketing via social media and
networking websites.
e.g. Businesses utilize pop-up advertisements to
make announcements, sell products, offer
discounted services or get consumers to visit a
new website.

A recent article from ScreenMediaDaily.com showcases a joint interactive
advertising effort from Yahoo! and several advertising and technology firms.
The campaign consists of large, touch screen displays mounted at bus stops in
the San Francisco and D.C. areas that allow patrons to not only view different
ads but also interact with them
https://www.youtube.com/watch?v=riD0R
lWC24g&ab_channel=SimblyChumma
1.Product Advertising
 Conveys information about product -
3types
1.Pioneering advertising
Stimulates primary demand for new
product or category rather than
specific brand
Example : initial advertising of micro-
wave, oven electric mosquitoes
repellents etc

2.Competitive advertising
selective demand of specific product brand
is stimulated
Influence demand for brand in the growth
phase or maturity phase.
Often uses emotional appeal.
Direct type : seeks to stimulate immediate
buying action
Indirect type : benefits of products are
emphasized in anticipation of consumers
final action of buying
3.Retentive advertising:
Products having firm footing in market , sales
may start decline latter .
The buyers must be reminded about product to
sustain his loyalty
Eg. Colgate

4.Comparative - Compares two or more
competing brands’ product attributes.
Used if growth is sluggish, or if competition
is strong.

 Informative Advertising:
Advertising build up in the initial demand for the
product in introductory phase of PLC
 Persuasive Advertising:
Aims at building up the demand for a specific
product /brand in growth phase of the PLC
Also used in maturity stage of PLC for product
 Reminder Advertising:
Aims at strengthening the previous promotional
activity by keeping the brand name before the
public used in maturity as well as declining stage
of PLC

 This is a unique way of advertising in which
the product or the message is subtly included
in a movie or TV serial.
 There is no actual ad, just the mention of
the product in the movie.
For example, Tom Cruise used the Nokia

phone in the movie Minority Report.

 Surrogate Advertising is prominently seen in
cases where advertising a particular product
is banned by law.
 Advertisements for products like cigarettes
or alcohol which are injurious to health are
prohibited by law in several countries and
hence these companies have to come up with
several other products that might have the
same brand name which indirectly remind
people of the cigarettes or beer bottles of
the same brand.

 Public Service Advertising is a technique that
makes use of advertising as an effective
communication medium to convey socially
relevant message about important matters and
social welfare causes like AIDS, energy
conservation, political integrity, deforestation,
illiteracy, poverty and so on.
 David Oglivy who is considered to be one of the
pioneers of advertising and marketing concepts
had reportedly encouraged the use of advertising
field for a social cause.
 Public Service Advertising has been increasingly
used in a non-commercial fashion in several
countries across the world in order to promote
various social causes

 Using celebrities for advertising involves
signing up celebrities for advertising
campaigns, which consists of all sorts of
advertising including, television and print
advertisements.
 Though the audience are getting smarter and
smarter and the modern day consumers are
getting immune to the exaggerated claims
made in a majority of advertisements, there
still exist a section of advertisers who still
bank upon celebrities and their popularity
for advertising their products.

Here the focus is not on a factory manufactured
item or product but a company providing a
service. This could be a bank, the railways a call
centre or travel agency. The ads usually show the
company as a leading service provider in its
particulars field.
Let us consider the example of the Indian Railways.
In order to keep the public interested in the
Railways and familiarize them with their services,
advertisements are issued from time to time. You
may look for these advertisements in the
newspapers and the websites of Indian Railways.
Similarly, banks are found to advertise their saving
schemes and loan facilities that they offer for
buying homes and vehicles.
 TV advertising
 https://www.youtube.com/watch?v=ZwMuKo
fx_P0
 Radio advertising
 https://www.youtube.com/watch?v=zjquscM
dJVI
 Internet advertising
 https://www.socialsamosa.com/2017/03/sha
re-the-load-ariel/

 Newspapers
 Magazines
 brochures
 fliers.
 The newspaper and magazines sell the
advertising space and the cost depends on
several factors. The quantity of space, the page
of the publication, and the type of paper decide
the cost of the advertisement. So an ad on the
front page would be costlier than on inside
pages. Similarly an ad in the glossy supplement
of the paper would be more expensive than in a
mediocre quality paper.
 -Outdoor advertising makes use of different tools
to gain customer’s attention.
 The billboards, kiosks, and events and
tradeshows are an effective way to convey the
message of the company.
 The billboards are present all around the city but
the content should be such that it attracts the
attention of the customer.
 The kiosks are an easy outlet of the products and
serve as information outlets for the people too.
 Organizing events such as trade fairs and
exhibitions for promotion of the product or
service also in a way advertises the product.
Therefore, outdoor advertising is an effective
advertising tool.
 https://www.youtube.
com/watch?v=-
SV1d8stwgA

Progressive Turnout Project, a Democratic political action committee,
launched a Three Billboards Outside Ebbing, Missouri-inspired
campaign today demanding stricter gun control laws and specifically
calling out House Speaker Paul Ryan for not proposing legislation in the
wake of another deadly school shooting.

 Advertising Budget is the amount of money
which can be or has to be spent on advertising
of the product to promote it, reach the target
consumers and make the sales chart go on the
upper side and give reasonable profits to the
company.
 Favorable and unfavorable market conditions
need to be check which will have an impact on
the advertising budget. The market conditions to
watch out for are as follows:
 Frequency of the advertisement
 Competition and Clutter
 Market Share of the Product
 Product Life Cycle Stage

In order to keep the advertising budget in line with promotional and
marketing goals, an advertiser should answer several important budget
questions:
 Who is the target consumer?
 Who is interested in purchasing the advertiser's product or service,
 What are the specific demographics of this consumer (age, employment,
sex, attitudes, etc.)? Often it is useful to compose a consumer profile to
give the abstract idea of a "target consumer" a face and a personality that
can then be used to shape the advertising message.
 Is the media the advertiser is considering able to reach the target
consumer?
 What is required to get the target consumer to purchase the product?
 Does the product lend itself to rational or emotional appeals? Which
appeals are most likely to persuade the target consumer?
 What is the relationship between advertising expenditures and the impact
of advertising campaigns on product or service purchases?
 In other words, how much profit is earned for each rupee spent on
advertising?
 Answering these questions will provide the advertiser with an idea of the
market conditions, and, thus, how best to advertise within these
conditions. Once this analysis of the market situation is complete, an
advertiser has to decide how the money dedicated to advertising is to be
allocated.

1. Percentage of Sales Budget
2. Competitive Parity Approach
3. Objective and Task Approach
4. All Organisation can Afford Approach
5. Market Share Approach
6. All Available Fund Approach
7. Managerial Judgement Approach

 Percentage of Sales Budget
According to this approach the business
organisation have to set
their advertising spending at a fixed percentage
of either past or anticipated sales. This Approach
can be followed by organisations operating in
markets with stable and predictable sales
pattern. As it is simple in application, it is most
commonly used by small business organisations.
This approach has some disadvantages, as sales

is not directly related to advertising, it get
affected by different variables too.

 This approach is followed by big
organisations having well defined
marketing objectives, and business goals.
 Following this approach advertiser
can correlate its advertising spending to
marketing objectives.
 In long term this correlation is important
to keep organizational spending focused
on business goals.

 Best approach: What do you want to achieve?
 Identify tasks/objectives, then cost them out.
 Sometimes called build up method.
 used by large businesses.
 allows the advertiser to correlate advertising
expenditures to overall marketing
objectives. This correlation is important
because it keeps spending focused on
primary business goals.
 A business needs to first establish concrete
marketing objectives, which are often
articulated in the "selling proposal," and
then develop complimentary advertising
objectives, which are articulated in the
"positioning statement."
 After these objectives have been
established, the advertiser determines how
much it will cost to meet them.
 Follow the Competition:
 Match what your competitors spend.
 Can use industry averages.
 Benchmark against one key competitor.
 But does it fit with your strategies?
 With competitive parity you spend in equal
amounts to your competitors as a
percentage of market share.
 This is a self-defence method of budgeting
marketing and advertising expenditures.

 This approach is followed by organizations whose
product is well established and operating in market
with predictable sales pattern.
 Compare their advertising spending with that of its
competitors.
 As the organization is aware of how much its
competitors are spending in advertising, it can
logically decide its advertising budget either equal,
more, or less to that of the competitors.
Here considering competitors advertising
budget organisation should consider its objectives
too, as the competitors objectives may not be
similar or comparable.

 This method links market share to advertising
expenditure.
 A company with a 20% market share would
spend slightly more than 20% of the total
advertising dollars spent in the market for
that product or service.
 For new companies, expenditures would be
1.5 times the desired market share until that
position is attained. [So if you want 20%
market share, you spend 30% of total
advertising dollars in that market until you
get it].

 Similar to competitive parity, the market share
method bases its budgeting strategy on
external market trends.
 With this method a business equates its market
share with its advertising expenditures.
 Critics of this method contend that companies
that use market share numbers to arrive at an
advertising budget are ultimately predicating
their advertising on an arbitrary guideline that
does not adequately reflect future goals.

 This method takes the cost of advertising
an individual item and multiplies it by the
number of units the advertiser wishes to
sell.
 No of units =10000
 Cost of advertising per unit=200 Rs
 Total advertising expenditure
=10000 x
200=2000000Rs

 New business which needs to build sales and share in
early years can use this.
 Can make sense if more marketing communications leads
directly to more sales.
 This aggressive method involves the allocation of
all available profits to advertising purposes.
 This can be risky for a business of any size, for it
means that no money is being used to help the
business grow in other ways (purchasing new
technologies, expanding the work force, etc.).
 This aggressive approach is sometimes useful when
a start-up business is trying to increase consumer
awareness of its products or services.
 However, a business using this approach needs to
make sure that its advertising strategy is an
effective one, and that funds which could help the
business expand are not being wasted.

 With this method, advertisers base their
budgets on what they can afford.
 Of course, arriving at a conclusion about
what a small business can afford in the
realm of advertising is often a difficult
task, one that needs to incorporate overall
objectives and goals, competition,
presence in the market, unit sales, sales
trends, operating costs, and other factors

 In long run managers gain expertise in their
field of operation.
 Similarly, some of the marketing managers
working over the years develops a feel for
the market that permits them to arrive at
appropriate decisions.
 According to this approach the
organisations advertising spending depends
on the judgement of experienced managers.

Unit 1 Part 2 IMC Ad Classification

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Unit 1 Part 2 IMC Ad Classification

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 2.

1 Advertising- definition, goals, appeals in

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Some ‘manufacturers may’ think that their target is, the

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For example, Tom Cruise used the Nokia

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This approach has some disadvantages, as sales

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