Professional Documents
Culture Documents
Lecture No: - 9
TYPES OF ADVERTISEMENT
Social media advertising is a popular choice for small businesses, because the cost is
relatively affordable and you can be highly selective with the audience you target. For
example, if you own a retail store, you can use ad targeting options to narrow the audience
so that only people of a certain demographic living within a certain mile radius of your store
are served your social ads. There are a few different social media platforms you can select
from for social advertising, including:
• Facebook: Facebook is a great advertising choice for most small businesses, because
of the widespread adoption of the platform and the relatively low cost of their
ads. Almost 70 percent of American adults use Facebook, and among those who use it,
nearly 75 percent log in to the service at least once per day. There are different ad units
to choose from on Facebook, including video ads, customer offers, carousel images,
lead generation, page likes, event responses and more. You can learn more about
Facebook advertising on the Facebook Business site.
• Instagram: Instagram ads are a great option for small businesses with a highly visual
brand that appeals to younger audiences, since 60 percent of Instagram’s one-billion
users are under the age of 30. Instagram includes many of the same targeting
parameters offered by Facebook and their ad units include image ads, video ads,
Stories ads and carousel ads. You can also include clear call-to-action buttons to drive
traffic to your website.
2. Pay-Per-Click Advertising: -
Pay-per-click (PPC) advertising is a type of online advertising where advertisers pay a fee
every time a user clicks on one of their ads, usually through a search engine. Advertisers bid
on ad placements within the search engine, meaning they set a maximum price they’re
willing to pay for a user to click on their ads. If a person sees your ad but doesn’t click on it,
you aren’t charged anything. The most common platforms for PPC advertising are Google
Ads and Bing Ads. PPC advertising is a form of search engine marketing (SEM). It can be a
great option for small businesses with limited budgets and according to Word
Stream, businesses make $2 in revenue on average for every $1 they spend on Google Ads.
3. Mobile Advertising: -
Mobile advertising is a type of digital advertising in which ads are served only on mobile
devices, including smartphones and tablets. Mobile advertising can include:
• Mobile videos
• Mobile app ads, which are meant to drive downloads of a brand’s app
Having a mobile advertising strategy can pay off for your small business. Eighty-four percent
of adult customers under the age of 30 are most likely to shop online using a mobile device.
4. Print Advertising: -
Print advertising used to be the primary advertising method for small businesses before the
advent of digital advertising. Now, print ad revenues are shrinking and as a small business
owner you may find the cost is much higher than the cost of digital and social advertising.
It’s also more difficult to measure the success of your print advertising campaigns, since it’s
almost impossible to prove how many people who saw your ads in print went on to make a
purchase at your store or become a client of your business. But, for some local businesses or
businesses that target older, less digitally engaged audiences, print advertising can still be a
good choice for your ad spend. Print advertising includes newspaper ads, magazine ads and
ads in brochures and flyers.
5. Broadcast Advertising: -
Broadcast advertising includes mass-market media like TV and radio. While broadcast
advertising, especially TV ads, can be cost prohibitive for small businesses, if you have local
TV and radio stations near you, the cost might be more affordable and the audience could
be highly relevant to your local business. The cost of broadcast ads depends on a number of
factors, including the length of the ads (longer TV and radio ads will cost more to air), the
frequency they play and the time of day they’re aired. You’ll also need to factor in the cost
of producing the ads, since professional TV ads can be quite expensive to produce.
6. Out-of-Home Advertising: -
Out-of-home or outdoor advertising refers to any advertising that reaches people when
they’re outside of their homes. This includes billboard ads, digital signage, transit ads (i.e.
bus shelters, train ads, subway stop ads, etc.), street furniture ads and ads in sports venues.
Out-of-home advertising can be quite expensive, so be sure it fits with your advertising
budget.
Direct mail advertising involves all forms of ads that are delivered to a person’s home
through the mail. This includes, brochures, catalogues, sales letters and newsletters. While
direct mail is a less popular advertising method for small business than digital advertising, it
can be successful if you develop a creative, visually appealing direct mail campaign. Direct
mail ads enable you to deliver your message one-on-one to local consumers.
References: -
VALUE OF OBJECTIVES
It has been clearly defined that the organisation how the manager should behave in the
organisation. Proper planning helps the executives to coordinate in the correct sense of
direction towards the effective results. The main source of objective is to supervise in
proper manner. If there is no proper maintenance these will be problem in the creation
of the work.
1. Proper Planning: -
The main advantage of planning is in proper way. It encourages the proper planning. The
Basic ideas and fundamental theories of planning to achieve the basic thing, in the
organisation. These ideas are making the people to work in the proper planning. Some
objectives are basically aimed on individual focus.
2. Single Motivation:
The main objectives providing motivation to the people in the organisation. All the
individuals are directly motivated by their own subordinates from the High level to lower
level, he feels motivated. He feels, that he will complete his duties and will also be
rewarded suitably towards the job performance.
3. Direct Coordination:
The efforts of voluntary coordination may put into a detailed plan of an organisation. In
the workforce, the freedom has been given to employee they can work in replace of other
towards voluntary coordination.
5. Integration:
It is set to link between the organisation and groups. So as the different department like
production, marketing, Finance, account, auditing and personnel brings them all
enterprise together in the organisation.
6. Decentralization of Authority:
Decentralization is the clear-cut objectives also facilitate the authority. The manager can
assign the duties to perform to the subordinates at the lower level. Then the subordinate’s
requisite the authority to carry out the performed duties.
References: -
• Kotler P, Armstrong G,2008, Principles of Marketing, 9th Edition, Prentice Hall, New
Delhi
• Gandhi J.C, 1985, Marketing –A Managerial Introduction, Tata McGraw-Hill, New
Delhi
Integrated marketing communications (IMC) sounds like a complicated theory, but it’s
quite simple. Put plainly, it's a style of communication that incorporates all of a brand’s
messaging into one unified tone. IMC takes a company’s various promotions and ensures
that they follow a distinct, unified style which results in marketing efforts that are
consistently recognizable to customers. IMC has four primary objectives: creating brand
awareness, generating product interest, increasing the desire for products and prompting
action in the form of a sale.
2. INTEREST
Another objective of integrated marketing communications is to generate interest in
your products by informing customers of what differentiates your product or service
from your competitors. You can also communicate information about the product to
your would-be customers.
3. DESIRE
The next objective of IMC is cultivating the desire in your customers to make a
purchase. In creating desire, you are trying to move your customers from liking your
brand to deciding to make a purchase.
4. ACTION
After forging relationships with your customers, gaining their trust and piquing their
interest in your products, your last objective of IMC is prompting the customer to take
action on a purchase. One way to incite action is to reduce the consumer’s purchase
risk.
DAGMAR Approach: -
1. AWARENESS: -
2. COMPREHENSION: -
3. CONVICTION
▪ Conviction is the next step where the customer evaluates different products and plans
to buy the product. At this stage, a sense of conviction is established, and by creating
interests and preferences, customers are convinced that a certain product should be
tried at the next purchase.
▪ At this step, the job of the advertising activity is to mould the audience’s beliefs and
persuade them to buy it. This is often achieved through messages that convey the
superiority of the products over the others by flaunting the rewards or incentives for
using the product.
▪ Example: Thumbs up featured the incentive of social acceptance as “grown up”. It
implied that those who preferred other soft drinks were kids.
▪ The objective is to create a positive mental disposition to buy a product.
4. ACTION
▪ This is the final step which involves the final purchase of the product. The objective is
to motivate the customer to buy the product.
Let’s suppose that an ABC company wants to evaluate the effectiveness of marketing
campaign for its latest product launched. The company starts evaluating the commercial
that is designed to persuade potential consumers through the four stages of the buying
process:
1. In the AWARENESS stage, company ABC spreads awareness among the consumers
about its new product launched in the market.
2. In the COMPREHENSION stage, company ABC portrays to its consumers the features
and distinctiveness of the new product and reminds the consumers of the company
ABC’s logo and brand name.
3. In the CONVICTION stage, company ABC attaches the consumer emotionally to the
new product so that the consumer establishes an emotional preference for the
company ABC’s brand.
4. In the ACTION stage, company ABC makes sales.
References: -
Top-down approach: -
1. Affordable method: the management first allocated the required funds to the
production and research departments and then the rest of the fund is allocated to
promotion with the argument that this is all they can afford
5. ROI – Advertising budgets are seen as an invested and allocated with a view of getting
something back in return
Build up approach:
2. Pay-out planning: The basic idea is to project the revenues the product will
generate, as well as the costs it will incur, over two to three years. Based on an expected
rate of return, the pay-out plan will assist in determining how much advertising and
promotions expenditure will be necessary when the return might be expected
After the organization has decided on the budget it has set up for promotional activities,
the next thing to do is to allocate it among the different channels of promotion to get an
effective result. Different factors that need to be taken into consideration while allocating
budgets are listed below
References: -
“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in
desired shape, finally stitch the cloth and deliver it to the customer.”
Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it
should be delivered and hands it over to the client. Advertising agencies are mostly not
dependent on any organizations.
A firm engaged in providing services of advertisement for clients to create awareness and
market for them is known as advertising agency.
According to American Association of Advertising Agency an advertising agency is one –
i. Which is an independent organization.
ii. Which is composed of creative and business people.
iii. Who develop, prepare and place advertisements in media.
iv. Which is for sellers seeking to find customers for their goods and services.
• The agencies are expert in this field. They have a team of different people for
different functions like copywriters, art directors, planners, etc.
• The agencies make optimum use of these people, their experience and their
knowledge.
• They work with an objective and are very professionals.
• Hiring them leads in saving the costs up to some extent.
a. Value of Products:
The advertised products are not always the best products in the market. There are some
unadvertised products also present which are good enough. But advertising helps
increase value for the products by showing the positive image of the product which in
turn helps convincing customers to buy it. Advertising educates consumers about the uses
of the products hence increasing its value in minds of the consumers. For e.g. mobile
phones were first considered as necessity but nowadays the cell phones come with
number of features which makes them mode of convenience for consumers.
b. Effect on Prices:
Some advertised products do cost more than unadvertised products but the vice versa is
also true. But if there is more competition in the market for those products, the prices
have to come down, for e.g., canned juices from various brands. Thus some professional
like chartered accountants and doctors are not allowed to advertise.
There are some positive and some negative aspects of advertising on the social ground.
They are as follows.
a. Deception in Advertising:
The relation between the buyers and sellers is maintained if the buyers are satisfied with
what they saw in advertise and what they got after buying that product.
1. Full-service Agencies: -
➢ Large size agencies.
➢ Deals with all stages of advertisement.
➢ Different expert people for different departments.
➢ Starts work from gathering data and analyzing and ends on payment of bills to the
media people.
2. Interactive Agencies: -
➢ Modernized modes of communication are used.
➢ Uses online advertisements, sending personal messages on mobile phones, etc.
➢ The ads produced are very interactive, having very new concepts, and very
innovative.
3. Creative Boutiques: -
5. In-House Agencies: -
➢ As good as the full-service agencies.
➢ Big organization prefers these type of agencies which are in built and work only for
them.
➢ These agencies work as per the requirements of the organizations.
There are some specialized agencies which work for some special advertisements.
These types of agencies need people of special knowledge in that field. For example,
advertisements showing social messages, finance advertisements, medicine related
ads, etc.
References: -
• www.unilorin.edu.ng/.../product%20classification%20strategy.pdf
• http://www.mbanotesworld.in/2008/04/classification-of-product.html
There are numerous factors which have to be considered by the client before selecting an
advertising agency for his products/brand’s campaign.
1. The Requirement of the Client:
Different clients have different requirements and they want tailor made advertisements
for their brand. The agency which is capable of handling their requirements should be
chosen by them for advertisement campaign.
2. Past Experience of the Client:
Generally, clients keep up with the agency for years if it has been working with them
without any major problems right from the stages of development till implementation of
the campaigns.
3. Reputation of the Agency:
Some agencies have global fame e.g., Leo Burnett, DDB Needham, Ogilvy and Mather,
Mudra Communication are very reputed for their creative skills and professionalism.
4. Compensation to the Agency:
The client have to see the budget they have for the campaign at any point of time.
Organisations which can afford a good budget select National and even international
agencies but the ones with lesser budget generally stick to smaller; or local agencies.
5. Creative Skills:
Some clients do not want to use in-house agencies because they feel that in-house
agencies will not have specialized skill people. Also the creative people do not want to
work in small in-house agencies. To take advantage of their creative design, clients go for
outside agencies.
6. Top Management’s or Promoter’s Interest:
Media planning and buying, agency appointment are major decisions taken by the top
management of any company in consultation with the advertising department.
• Fee Arrangement
There are two basic types of fee arrangement systems. In the straight or fixed-fee method,
the agency charges a basic monthly fee for all of its services and credits to the client any
media commissions earned. Agency and client agree on the specific work to be done and
the amount the agency will be paid for it. Sometimes agencies are compensated through
a fee–commission combination, in which the media commissions received by the agency
are credited against the fee.
• Cost-Plus Agreement
Under a cost-plus system, the client agrees to pay the agency a fee based on the costs of
its work plus some agreed-on profit margin (often a percentage of total costs). This system
requires that the agency keep detailed records of the costs it incurs in working on the
client’s account. Direct costs (personnel time and out-of-pocket expenses) plus an
allocation for overhead and a markup for profits determine the amount the agency bills
the client.
• Incentive-Based Compensation
Many clients are demanding more accountability from their agencies and tying agency
compensation to performance through some type of incentive-based system. Recently a
new variation of this system has emerged in the form of value-based compensation
whereby agencies are compensated above their basic costs, if they achieve or exceed
results as measured by agreed-upon metrics.
• Percentage Charges
References: -
AD CLIENT-AGENCY RELATIONSHIP
The client-agency relationship starts when a client appoints an advertising agency for
making his ad. It continues till the ad agency provides satisfactory services to him. Such a
relation should always be cordial. There should be a mutual trust, confidence and
understanding between the two parties. It is so, since, the primary objective of both sides
is same, i.e. to make a successful advertising campaign.
1. Treat the ad agency with courtesy at all times and never hurt its ego.
2. Provide all possible information about the product to be advertised and the
organisation. A well-informed ad agency will make better ads.
3. Don't unnecessarily bargain for the fees charged by the ad agency as this may
affect the quality of work.
4. Motivate the agency to do a good impactful work.
5. Don't change the ad agency without a proper reason. If not satisfied, always first
communicate your expectations and then wait for necessary changes to reflect.
6. Give sufficient time to the agency to work on and develop an ad campaign. The
client should not pressurize it to work quickly. He should avoid giving deadlines.
7. Reduce disputes to a minimum.
8. Finalize in advance the charges for a particular ad campaign.
1. The advertising agency should do a smart and hard work to bring success to the
client's ad campaign.
2. It should make a good advertising plan and must implement it efficiently and
effectively. However, first it must get the approval from the client.
3. It is the duty of the account executive of the agency to keep his customer happy
and satisfied.
4. It should not charge client unreasonably high rates.
5. It should not make ads for client's competitor.
6. It should get all the information from the market that will help to create better ads.
7. Discuss the ad fees with the client in advance to avoid disputes.
8. Disclose to the client the names of the team members (employees) that are
working on his ad campaign.
9. Inform the client about changes, if any, happening within the agency.
10. Never hurt client's ego. Agency should always provide timely services to him and
try its best to satisfy him.
References: -
• www.unilorin.edu.ng/.../product%20classification%20strategy.pdf
• http://www.mbanotesworld.in/2008/04/classification-of-product.html
Creativity is the soul of advertising and branding. It is what gives life to messages about
products and services that may otherwise be boring or insignificant in the hearts and
minds of target customers.
References: -
Marketing teams don’t have time or budget to waste. To achieve success, considerable
thought must be put into what and how you do it. We suggest you heed this advice:
• Be mindful of time. Include a timeline in your strategy so each team member stays
on track and avoids any last-minute problems.
• Share it with relevant stakeholders. Achieving your marketing goal requires a high
level of collaboration, which means each stakeholder must see and understand how
it aligns with their work, such as brand strategy.
Now that you have a solid idea of what your creative strategy will help you achieve, let’s
dive into what it should include, and how to execute it.
Before diving into action, take some time to write down what your main goals are. This
will inform all of the subsequent steps you’ll take, including budget and resource
allocation, and messaging.
For example, if your goal is to increase online engagement with customers, your strategy
will look very different than if your goal is to boost lead generation by 20%.
A creative strategy statement is one or two statements that describe the purpose of your
initiative or campaign, the value proposition, and the target audience.
The statement should answer the question, “How can we get customers to buy our
products or services over those of a competitor?”
Choosing the right key performance indicators an important step in developing your
creative strategy, as they will indicate success or failure.
Again, your KPIs will depend on what your goals are. For example, if your goal is to increase
online engagement with your customers, some of your KPIs might be the number of
impressions for social media posts, the number of likes/comments, and how many
mentions you receive in customers’ posts.
In this step, you need to decide what you are going to say, how you want to say it, how
you will position it within the greater context of your brand.
5. Set a budget
To do this, you must first understand the scope of your initiative, including:
• How much you will rely on paid marketing vs. organic marketing
• The cost of paid services (including running online ads, paying vendors, and possibly
buying new software)
• The length of time you will need such services
6. Create a timeline
A timeline helps you build a realistic budget, as well as enabling stakeholder alignment.
References: -
Including how to generate creative ideas, and how to sell bold creative ideas.
1. Break the initial barrier, make sure the client and the creative agency are
working as a team:
“If the client is using the agency in the right way, if they welcome you into their business,
therefore a barrier is broke there already and you are part of the team, you are seen as
less of a provider and more part of a solution” - Hermeti Balarin
2. Trust between the creative agency and client is essential in order to make
authentic, award-winning campaigns:
“It’s really difficult for agencies alone to go all the way, it has to be met in the middle.
Clients have to already be willing to use you in the best way possible, which is to let you
in. Don’t keep the agency at arm’s length. It’s about building trust.” - Hermeti Balarin
“I try not to present anything that I don’t want to make. So I wouldn’t put the safe option
there. I’m always terrified of putting anything there for comparison's sake that is less
good. Go with your best, and deal with whatever happens after that.” - Hermeti Balarin
“Everybody has a voice now, and you can’t temper to all of them, so you have to just own
yours.” Lily Fletcher
“Work with your clients to find their voice. So they can speak about almost anything. It is
a magical place to be. Suddenly you have a genuine way to respond, interject or be part
of a conversation, as long as it’s true to your personality people will love you for it. It’s not
easy to get to that place, but it’s amazing when you are there.” - Hermeti Balarin
“I think that’s what gets called out really quickly, is when it’s bullshit. People smell it
and see it from a mile off, and are like ‘this is a stunt you’re trying to get me here’ and
that gets called out." - Lily Fletcher
6. When taking a risk with bold creative work, you can’t please them all:
“If you are going to a party and trying to please everybody you’ll end up not pleasing
anyone.” - Hermeti Balarin
“There’s a lot of talk about greenwashing brands and brands aligning to the biggest issues
of our time.
References: -