Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.

Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

MODULE- I COMMUNICATION
Concept Question
1. Define Communication

Descriptive Questions
1. Explain the advertising Communication Process 2. The steps in an integrated marketing communication process.

1 

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

INTRODUCTION TO ADVERTISING
Advertising is the backbone for any business. It is a form of mass communication, a powerful marketing tool. When a market or a firm has developed a product to satisfy market demand after thoroughly analyzing the market, there is a need for establishing contact with the target market to eventually sell the product. Advertising helps in reaching to the target market. Advertising can thus aptly be called as the MOTHER OF ALL COMMUNICATION. Advertising is all around us. We are bombarded with ads (commercials) over TV, radio &in the print. When we go to our colleges, offices we are expose to many bill boards, which tell us to drink more milk, donate are eyes, gives you more information, tells you to do family planning etc. On an average, an Indian citizen is exposed to more than 20 commercials per day. In modern times, advertising prevails in all walks of life. It has acquired the distinction of being the most visible & glamorous method of marketing communication. It is the world‘s fifth largest industry. Oil, Automobiles, Computers & Agriculture follow advertising in that order. Today it is a million dollar business. ―Advertising‖ = ―means to inform‖ COMMUNICATION DEFINED The steps between source and a resource that result in the transference and understanding of meaning - STEPHEN R. ROBINS

ADVERTISING COMMUNICATION SYSTEM
Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel & a receiver. In addition, the receiver will sometimes become a source of information by talking to friends or associates. This type of communication is termed word-of mouth communication and it involves social interactions between two or more people & the important ideas of group influence & the diffusion of information.

2 

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

Perception process

Source Destination **MODEL OF THE ADVERTISING COMMUNICATION SYSTEM** Message Receiver (Advertiser) Audience (DIAGRAM)

Channel (Media)

Channel (Word-of-Mouth)

SOURCE:

Model of the advertising communication system

The source of a message in the advertising communication system is the point of which the message originates. There are many types of ―sources‖ in the context of advertising, such as the company offering the product, the particular brand or the spokesperson used.  MESSAGE: The message refers to both the content and execution of the advertisement. It is the totality of what is perceived by the receiver of the message. The message can be executed in great variety of ways for e.g. the use of humor & fear  CHANNEL: The message is transmitted through some channel from the source to the receiver. The channel in an advertising communication system consist of one or more kinds of media, such as radio, TV, newspaper, magazines, billboards, point-of-purchase display, &so on. The impact of the communication can be different for different media.  RECEIVER: The receiver in an advertising communication system is also called the target audience. Thus, the receiver can be described in terms of audience segmentation variables, lifestyle, benefits sought, demographics, & so on. Of particular interest might be the receiver‘s involvement in the product & the extent to which he/she is willing to search for and/or process information. It is the characteristics of the receiver-the demographics, psychological, & social characteristics-that provide the basis for understanding communication, persuasion & market processes. 3 

even when it cannot stimulate it. comprehensiveness. An advertising message can have a variety of effects upon the receiver. or experts-individuals & group the consumer likes to emulate.Prof. Advertising can actually stimulate word-of-mouth activity. The receiver then becomes an interim source & the destination becomes another receiver. These five effects can create favorable liking. First. Second. Word-of-mouth communication resulting from advertising can be a critical part of a campaign. information about the brand‘s benefits & the attributes on which the benefits are based can register with the consumer can also result from exposure to the ad. knowledge of its appropriateness and power can be very helpful. It can:       Create awareness Communicate information about attributes & benefits Develop or change an image or personality Associate a brand with feelings & emotions Create group norms Precipitate behavior ADVERTISING EXPOSURE MODEL The following diagram of communication & persuasion process shows the various processes that can occur after consumers are exposed to advertisements. It is only the word-of-mouth communication that has credibility. often called ―brand personality‖. & impact of affect the ultimate behavior of a portion of the audience. Fourth. through the choice of the spokesperson & image for the brand. Sometimes the advertisers will attempt to spur purchasing action directly by providing a reminder or by attacking reasons why the consumer may be postponing that action. exposure to the advertisement can create awareness about brand.Mohideen. Asso. or attitude. The reality is that for some products the absence of word-of-mouth communication can be fatal. towards the brand. 4  . leading to a feeling of familiarity with it. Sales Promotion and Brand Management A. advertisements can also generate feelings in an audience that they begin to associate with the brand or its consumption. Baba Institute of Technology and Sciences ________________________________________________________________________  DESTINATION: The communication model in above diagram does not stop at the receiver but allows for the possibility that the initial receiver might engage in word-of mouth communication to the ultimate destination of the message. Third. Fifth.K. which in turn should lead to purchasing action.Advertising. This is often how products & brands are presented as being fashionable. the advertisements can create the impression that the brand is favored by the consumer‘s peers.

Asso. Awareness / Familiarity with brand Information i.Prof. Understanding information processing invariably leads to the need for understanding a wide range of other important psychological constructs. brand personality & image. Baba Institute of Technology and Sciences ________________________________________________________________________ These two models help us to understand how & why consumers acquire process &use advertising information. It is also important to at the planning stage to develop a good understanding of where advertising fits into the total pool of information & influence sources to which consumer is exposed. learning attitude formation & change. source of effects.Advertising.e. brand attributes or benefits Creation of brand image / personality Ad Exposure Association of feelings with brands Brand Attitude Purchase Behaviour Linkage of brand with peers / experts and group norms Reminder or inducement about brand trait A Model of the communication / persuasion process 5  . Sales Promotion and Brand Management A.K. such as perception.Mohideen.

I.K.Prof. Baba Institute of Technology and Sciences ________________________________________________________________________ An integrated marketing communications planning model Review of marketing plan Analysis of promotional program situation Budget determination Develop integral marketing communication program Advertising Direct Marketing Interactive / Internet Marketing Sales Promotion Personal Selling Advertising objectives Direct Marketing objectives Interactive / internet marketing Objectives Sales Promotion Objectives Personal Selling Objectives Advertising strategy Direct Marketing Strategy Interactive / internet marketing Strategy Sales Promotion Strategy Personal Selling Strategy Advertising Message & media strategy & tactics Direct marketing Message & media strategy & tactics I.M. Sales Promotion and Brand Management A.Mohideen. Asso.Advertising. Message & media strategy & tactics Sales promotion Message & media strategy & tactics Sales Message & media strategy & tactics Develop integral marketing communication program 6  .

Asso. message.Advertising. channel factors  Establish communications goals & objectives BUDGET DETERMINATION  Set tentative marketing communications budget  Allocate tentative budget DEVELOP INTEGRATED MARKETING COMMUNICATION PROGRAM 7  External analysis Market Segmentation & Target Marketing Consumer Behavior Analysis .K. Medill School of Journalism Review of Marketing Plan     Examine overall marketing plan & objectives Role of advertising & promotions Competitive analysis Assess environmental influence Analysis of Promotional Program Situation Internal analysis Promotional department Organization Firm‘s ability to implement Promotional program Review of previous program result ANALYSIS OF COMMUNICATION PROCESS  Analyze receiver‘s response processes  Analyze source.‖ -Northwestern University.Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ INTEGRATED MARKETING COMMUNICATION (IMC) DEFINED ―The process of managing all sources of information about a product service to which a customer or prospect is exposed which behaviorally moves the customer towards a sale and maintains customer loyalty. Sales Promotion and Brand Management A.Prof.

Advertising.K. Asso.Prof. Sales Promotion and Brand Management A. Baba Institute of Technology and Sciences ________________________________________________________________________ Advertising:  Set advertising objectives  Determine advertising budget  Develop advertising message  Develop advertising media strategy DIRECT MARKETING     Set direct marketing objectives Determine direct marketing budget Develop direct marketing message Develop direct marketing media strategy INTERACTIVE/INTERNET MARKETING     Set interactive/internet marketing objectives Determine interactive/internet marketing budget Develop interactive/internet message Develop interactive/internet media strategy SALES PROMOTION     Set sales promotion objectives Determine sales promotion budget Develop sales promotion tools & develop messages Develop sales promotion media strategy PUBLIC RELATION/PUBLICITY     Set PR/publicity objectives Determine PR/publicity budget Develop PR/publicity messages Develop PR/publicity media strategy PERSONAL SELLING     Set personal selling & sales objectives Determine personal selling & sales budget Develop sales messages Develop selling roles & responsibilities 8  .Mohideen.

Design & implement direct marketing programs Design & distribute sales promotion materials Design & implement PR/publicity programs  Design & implement interactive/internet marketing programs       MONITOR. space.Advertising. Baba Institute of Technology and Sciences ________________________________________________________________________ INTEGRATE & IMPLEMENT MARKETING COMMUNICATIONS STRATEGIES Integrate promotional mix strategies Create & produce ads Purchase media time. etc. & CONTROL COMMUNICATIONS PROGRAM INTEGRATED MARKETING  Evaluate promotional program results/effectives  Take measures to control & adjust promotional strategies 9  . Sales Promotion and Brand Management A.Mohideen. Asso.K.Prof. EVALUATE.

K. Broadcast Ads Games. Lotteries Packaging – Premiums and Outer gifts Packaging Sampling Inserts Motion Pictures Fairs and trade shows Brochures and Exhibits Booklets Posters and Demonstrations Leaflets Directories Coupons Reprints of Ads Rebates Billboards Display Signs Point-ofpurchase Displays Audio –Visual Material Symbols and logos Video Tapes Low interest Financing Entertainment Trade in allowances Continuity Programmes Tie . Sweepstakes.Mohideen. Asso. Baba Institute of Technology and Sciences ________________________________________________________________________ TOOLS OF IMC ADVERTISING SALES PROMOTION Print and Contests.Advertising. Sales Promotion and Brand Management A.Prof.ins PUBLIC PERSONAL DIRECT RELATIONS SELLING MARKETING Press Kits Sales Catalogues Presentations Speeches Seminars Annual Report Charitable Donations Sponsorships Publications Community Relations Lobbying Identity Media Company Magazine Events Sales Meetings Incentive Programmes Samples Fair & Trade Shows Mailings Telemarketing Electronic Shopping 10  .

Baba Institute of Technology and Sciences ________________________________________________________________________ Mc CANN ERICKSON MODEL FOR COMMUNICATION ROAD MAP TO EFFETIVE ADVERTISING PULSE * BRAND FOOTPRINT + SELLING STRATEGY^ AD WORKS Mc CANN PULSE: Technique of transforming consumer information into consumer insight. Asso. ^ Mc CANN SELLING: Transforming Consumer Insight into effective advertising.Advertising.Prof.K. Mc CANN ERICKSON END OF MODULE I 11  .Mohideen. + Mc FOOTPRINT: Method of transforming brands from one market opportunities into expanded multinational platforms. Sales Promotion and Brand Management A.

Prof.Mohideen.II ADVERTISING AGENCY Concept Questions 1. Asso. Selection of an ad agency 3. Sales Promotion and Brand Management A.Advertising. Evaluation of an Ad agency 4. Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE. 12  .K. Explain the organization structure of an advertising agency (of your choice) 3. Five M‘s of Advertising Descriptive Questions 1. Organisation of an Ad agency with their function 2. Function of an ad agency 2. How much would you select and evaluate an advertising agency.

the real world of advertising is most certainly a world of high and intensity but in a different way. Asso. you are in the battle zone. client calls and chasing of work and people both inside and outside the agency. Baba Institute of Technology and Sciences ________________________________________________________________________ INTRODUCTION An outsider‘s perception of the work in an ad agency is one of glamour and glitz. stressful. The decibel levels and chaos is often striking arguably second only to the commodity and stock exchange pits.Prof. content of communication through advertising (Message). yet loads of fun. hectic. Well. Today the marketing manager has a range of advertising options to choose fromfrom interpersonal communication to Internet. Today government bodies as well as non-government organizations go for high profile advertising campaigns. It is often assumed that working in an ad agency means being surrounded by glam dolls and hunks. often including the weekends. full of drama. That it is a profession of high profile and high living with a lot of showmanship. Sales Promotion and Brand Management A. Till a few years ago people would have ranked it second only to the world of films in terms of the ―glamour‖ co-efficient. often the similarity would end at the office reception. Usually a working day in the agency for most people is long. 13  . unpredictable.Advertising. Deciding on a correct option calls for detailed analysis aspects like objective behind advertising (Mission). So much so that whenever we think of marketing we think of advertising although it is just one of the marketing tools.Mohideen.K. FIVE M‘s OF ADVERTISING Advertising is an important promotional tool for any marketing campaign. company‘s earmarked budget (Money). These can be broadly classified as the five M‘s of advertising. Once inside. advertising vehicle (Media) and impact of advertising (Measurement). But ‗politics‘ and ‗fashions‘ world have pushed it down the ladder a bit since. socializing and partying. Though at a first glances an ad agency would seem like any other corporate office. The purpose here is not to increase the sales figure but to increase the awareness of people regarding the relevant topics. So is the pressure of deadlines.

there can be three possible objectives behind advertising:  Information. This in some ways is quite paradoxical.K. Sales Promotion and Brand Management A. Philip Kotler. The most common among them is the percentage of sales method. The marketing manager should establish a clear goal as on the purpose of advertising. The company needs to spend more on advertising when sales are down. But then like each individual each company is also different. attracting consumers towards the brand  Reminder: This objective is relevant for well-established companies. It may not make any sense in spending like your competitor because competitor might be on a different footing.when a new product is launched. Though this method is used widely. a renowned authority in this field. For instance whenever we hear or read yeh dil maange more.Prof. the next step is to decide upon the budget. this would mean increase in advertising expenditure when sales are up and less spending when sales are down. According to Mr. This objective is of paramount importance because of cutthroat competition.Advertising. Under this method. a certain percentage of sales are allotted for advertising expenditure. There are several methods for deciding on the advertising budget. Baba Institute of Technology and Sciences ________________________________________________________________________  MISSION First of all the marketing manager must be clear on the company‘s purpose for advertising. The first issue is what percentage the company should take? Even if a company somehow decides a percentage figure.Persuading people to actually go out and buy the product. the purpose should only be to inform people about the product  Persuasion. In fact sales are a result of promotion. ―Increase in sales figure‖ will be a very broad and to a certain context a vague objective. we tend to think about Pepsi.  MONEY After the objective has been decided upon. information. Asso. Any advertisement must be persuasive in nature. there are some problems with this method. persuasion or reminder. Another method suggests that a company should spend as much as its competitors are spending. 14  . These types of advertisements only try to remind the consumers of the brand existence. Same way we tend to associate ―two minutes‖ with Maggie noodles. This method claims that it would prevent promotional wars. But this method uses circular reasoning and views sales as cause for promotion. because logically the reverse should happen.Mohideen.

magazines. The tone should be appealing.Mohideen. Therefore a company has to be very clear about its target audience. This is the job of message.  MEDIA Selecting the proper media vehicle for communicating the message goes a long way in the success of any kind of advertising. direct mails. A limited budget should be prudently allotted among these media vehicles. Asso. An ad can be judged on the basis of its reach and impact on sales. Only on the basis of this measurement. which has professionals to make impact -making ads. Sales Promotion and Brand Management A. It is not easy to isolate the impact of advertising on sales. is a difficult question to answer. Companies often go in for a media mix.Prof. can further decisions regarding continuation or termination of the particular advertising campaign be taken. Baba Institute of Technology and Sciences ________________________________________________________________________  MESSAGE As a common experience.  MEASUREMENT It is necessary that effectiveness of any advertising be judged. People have no time to read or see them. newspapers. The message that company wants to convey should be put in a manner that will arouse interest. while the others just irritate us. 15  . and therefore they have to be attractive enough to target audience‘s attention. Choices available are Internet. Good advertising is one that generates brand awareness and consequently brand preference. i.K.e. These days both electronic as well as print media are overflowing with ads. Thus a systematic and balanced understanding of these five Ms of advertising will help in designing better advertising campaigns that create a favorable impact on the target audience. we love some advertisements. This is why many companies hand over this task to advertising agencies. Many industries face seasonal fluctuations and pass through cycles. Nonetheless there are some advanced statistical techniques available that can be used with the help of computer software‘s like SPSS.Advertising. Everyone of this has its advantages and disadvantages. On the other hand. irritating advertising will create an adverse effect. How much of sales can be attributed to advertising. Therefore advertising should be timed that way to take care of these fluctuations. Moreover it should convincingly highlight upon the products USP. Each media vehicle has its positive and negative points with a different reach and impact. Sales are influenced by many factors besides advertising. What is said is definitely important but what is more important is how it is said. Timing is of great significance here. TV. radio and hoardings. Words used should be catchy and retentive. An appealing advertising will win consumers and will consequently induce them to purchase the product. they select more than one of the available choices.

They evaluate the ad campaign and media plan internally and often present these to the clients. The ‗suits‘ are the agency‘s face to the client. In some agencies account management takes care of the strategic planning involved in their respective brands. Internally. though sometimes they may co-ordinate it through research agencies if required. it is the agency‘s big window to the outside world. An advertising agency is: a) b) c) d) An independent business organization Composed of creative and business people Who develop.Prof. However. Baba Institute of Technology and Sciences ________________________________________________________________________ INTRODUCTION TO ADVERTISING AGENCY DEFINITION OF AN ADVERTISING AGENCY It is the core of advertising profession and industry.K. Sales Promotion and Brand Management A. Also called as Client Servicing or suits. they brief the creative and media on the jobs and co-ordinate the entire ‗work processes ‗inside the agency.Mohideen. Asso. all agencies do not necessarily have a separate unit for planning. Together they serve 6000 clients in India.Advertising. planning is the research face of the agency. take briefs and understand the marketing issues involved.to be eligible for 15 percent commission) and 8000 odd agencies which are unregistered. Four Key Functions of an Ad agency ACCOUNT MANAGEMENT Account Management is the pivot on which the entire agency‘s work revolves. Whether as a separate unit or not. It is also referred to as ‗strategic planning‘. ACCOUNT PLANNING It is the second core function in the agency. 16  . They interact with the clients. prepare and place advertising on advertising media For sellers seeking to find customers for their goods and services -American Advertising Agency Association (AAA) There are an estimated 200 advertising agencies in India accredited to INS (Indian Newspaper Society. However they rarely conduct research themselves.

Asso. Sales Promotion and Brand Management A. the copywriters write the headline and copy and the art directors do the visualizations and layouts. media planning and media buying have emerged as two specialized functions within media. With increased media fragmentations. A headline may come from the art person and visualizations from the writer.K. Baba Institute of Technology and Sciences ________________________________________________________________________ CREATIVES Creative form the third core function of the agency. They are also at the core of the production process of the agency as they are the ones who create ads. Media Buyers not only look other media relations and negotiate rates but also supervise the media operational word like sending release order and ad material to the respective media. 17  . Media planning involves a lot of number crunching and good ‗quantitative‘ abilities are a critical requirement.Advertising. C L I E N T Account Planning Research THE CORE Media Planning Buying Creative Copy writing Art direction Account Management Supports Media Operations Film Production Print Production Graphic Studio Billing Account Administration S MEDIA U P P L I E R Media forms the fourth and the last core function of an agency.Mohideen.Prof. Generally. But often they ideate and work together. Sometimes the planners may also extend expertise to the both. They also monitor releases. Creatives are the agencies lifeline the one who can make or break the agency.

NEW YORK ( US $ 13.967 BILLION) OMNICOM GROUP.K. NEW YORK( US $ 5171 BILLION) HAKUHODO.3 BILLION) SAATCHI & SAATCHI COMPETITORS . LONDON(US $ 10809 BILLION) YOUNG & RUBICAM. press ads.Prof.839 BILLION) DENTSU. FRANCE (US $ 6508 BILLION) GREY ADVERTISING .  Media Scheduling and media bookings  All release approvals for creative and media     Material Dispatch to media Media release monitoring Any post – testing if required Billing and collection Creation Stage Production Stage Release Stage THE WORLD‘S TOP TEN ADVERTISING AGENCIES           WPP GROUP.3 BILLION) INTERPUBLIC GROUP. Asso. TOKYO (US $10846. NEW YORK (US $ 13. CONE AND BELDING (FCB). etc. NEW YORK( US $ 7559 BILLION) EURO RSCG. Baba Institute of Technology and Sciences ________________________________________________________________________ TYPICAL WORK FLOW IN AN AD AGENCY Briefing Stage  Briefing from the client  Internal Briefing to creative & Media  Any research briefing if required  Ad campaign and media plan development  Internal Review and finalization  Presentation to client and approval  Any pre – testing if required  Budget and Estimate approvals  Production of film. collaterals.Mohideen. Sales Promotion and Brand Management A. TOKYO (US $ 4938 BILLION) FOOTE.CHICAGO ( US $5336 BILLION) SOURCE: THE ASIAN AGE 18  . LONDON (18485.Advertising.

and LOWE are called full service advertising agencies because they are ONE STOP SHOP for all services that are offered to the clients. AHMEDABAD (RS1200 CRORE) FCB ULKA. 19  . before it goes for shooting. 2. BANGLORE (RS. Accordingly the storyboard is prepared and script work is done. DDB NEEDHAM. They are acting as the custodians of the brands of the clients.: The Media Planner along with the Media manager and brand manager/media dept of the client prepares the final media budget and purchases Insertions for print media (space buying) or purchases radio spots if it‘s for Radio or purchases TV time if it‘s on television. However. THE MEDIA DEPT. He suggests what the client exactly wants to his advertising agency. 3. O&M. CLIENT SERVICING: Also called as ―Accounts executives‖.800 CRORE) SOURCE: BRAND EQUITY. MUMBAI( RS 1500 CRORE) MUDRA. 4. He is the one who carries the client brief and is also responsible for approvals. MUMBAI (RS 1800 CRORE) LOWE LINTAS & PARTNERS. THE PRODUCTION DEPARTMENT: The production department is responsible to convert the storyboard in to a finished layout (technical storyboard if it‘s for print medium or outdoor. Baba Institute of Technology and Sciences ________________________________________________________________________ INDIA‘S TOP 5 ADVERTISING AGENCIES      O & M. Asso.2500 CRORE) JWT. ECONOMICS TIMES FUNCTIONS OF AN ADVERTISING AGENCY Big agencies like JWT. Today‘s agencies are providing total communications packages for the client brands. the television commercial will be outsourced to a production house (like Prasoon Pandey‘s CORCOISE FILMS). The final layout is sent to the client for approval.Advertising. He is link between the agency and clients. Appropriate media mix is developed. THE CREATIVE DEPARTMENT: Under the Creative Director there are a team of Copywriters and Visualisers who arrive at the ―BIG IDEA‖. Sales Promotion and Brand Management A. NEW DELHI (RS.Prof. 1.Mohideen. The final storyboard is made into a technical storyboard.K.

Baba Institute of Technology and Sciences ________________________________________________________________________ 5. Previously unknown agencies are not preferred. Creative people are a little crazy. 20  . Premier Auto (the company that makes Fiat cars) was shopping around for an agency to launch its 118 NE. nonconformists. Seventhly. Thirdly. the agency must have a sound track record. they are compatible with you. 7. Creative people are like naughty children. you may look t the accounts they handle. In other words.Advertising. it is handled by the creative dept itself. More and more clients prefer to invite presentations for campaigns of new products and then award the campaign to the agency who they think has made the best presentations. THE FINANCE DEPT (ACCOUNTING): This dept looks after the accounts (financial records) for the agency. their ability and presentation may make you opt for them. It invited presentations from various agencies and then shifted its account from its old agency Sistas to Ulka. and the accounts they have gained and lost. STATEGIC PLANNING: Strategic planning is a heart of an advertising agency. SELECTION OF AN ADVERTISING AGENCY First and foremost.K. Fifthly. If you know them personally. the agency must have creativity. The secret of creativity is simplicity. These days the clients require a well prepared advertising strategy before the design of the advertisement and hence strategic planning has grown past 4 years. Usually MBA‘s from reputed management institutes are recruited in these dept. Creativity does not follow any logical pattern. Sixthly. the accounts executive must have ability to understand the client‘s problems. the personal equation of the client with the agency also matters. a good deal of experience. Sales Promotion and Brand Management A. the work they have produced for other clients does matter. Secondly.: In fact Research dept functions before and after a commercial is made. It will be headed by VP Strategic Planning and assisted by strategic planners. big agencies have a strong Strategic Planning dept whereas in small and medium agencies. Asso. the agency must be known.Prof. for pre-testing and post-testing of media respectively consumer insights and brand usages are also tested at times according to client in many situations 6. RESEARCH DEPT. Fourthly.Mohideen.

practical and consumer oriented approach. some a medium. Baba Institute of Technology and Sciences ________________________________________________________________________ Lastly. Timely delivery of advertising materials (especially for Cola ads) Agency Evaluation and Selection some Criteria (pg no 291) 21  . Unfortunately many think ‗Creativity‘ is just another way of saying. the attention it gives to the client. So creativity. its flexibility. (For e.Mohideen. its media understanding. O & M works on 240 brands at a time) The reputation the agency has in advertising circles (JWT is renowned for its reputation) The particular USP of the agency (on what areas the agency is specialized in.g. commitment to client and the quality of its top management go a long way in the selection of an agency. The number of clients it holds.Prof.‘ EVALUATION OF AN ADVERTISING AGENCY CLIENT INVITES TENDER FOR AD AGENCIES PITCH FOR THE ACCOUNT CLIENT SELECTS THE ADVERTISING AGENCY EVALUATION OF AN ADVERTISING AGENCY The agency is evaluated on the past performance. Sales Promotion and Brand Management A. Other factors that need consideration is the staff of the agency and its caliber. some prefer a small. the use it makes of MR. the ability to handle below-the-line publicity and its international tie-ups. for e.Advertising. Increasingly. there are some unique considerations. some a large agency. giving different products to different agencies. its growth.K. clients prefer to fragment their business.g. Asso. R. ‗I like the agency. Leo Burnett is renowned for consumer insights. O&M is known for creativity.K Swamy BBDO is renowned for print.

In addition to these two there are specialized divisions for Public Relations. 22  . work groups and task forces must have people who possess a fine balance of good human nature and professional competence. Sales Promotion and Brand Management A. the advertising archive. Values Mudra‘s brand success have been possible only because of there tenacious adherence to their corporate values.  Intuitions and common sense are required and respected. Fundamentally they believe that  It is better to invest in long term relationships with clients and in the process grow with them rather than temporarily boost billing with short-term accounts. Information Technology. Baba Institute of Technology and Sciences ________________________________________________________________________ MUDRA COMMUNICATIONS LIMITED An Overview….  Organizations work best when they work simple.Advertising. most of which have become brand leaders with Mudra. 15 people advertising agency wish an initial investment of Rs.COM. The Mudra group consists of two advertising agencies.Prof. But they must be equally disciplined through research.G.Mohideen. which facilities the transfer of technology and creative expertise. Outdoor Advertising.  To function at peak level. 2. Interact Vision Advertising and Marketing Pvt. Asso. Mudra Communication Limited. with stakes in agencies in 6 countries. sincere and straightforward.K. Mudra has an affiliate in DDB worldwide who is a part of the Omnicom Group. 700 crores (Mar 2001). On Mudra‘s client list multinational brand leaders rub shoulders with leading national brands. and a portfolio of country‘s finest brands. Direct Marketing. Today. Mudra is the largest Indian advertising agency with a capitalized billing of Rs. Mudra is one of the countries first transitional Indian advertising agencies in 1994. Mudra Communications was founded in 1980 under the stewardship of Shri A. Video Software and MAGINDIA. Ltd. 1. These values govern Mudra‘s external equations while determining internal growth. Krishnamurthy. It was a single account. 4000.

A perfect blend of an Indian soul with international outlook. 8. This was achieved by a group of people whose credentials were being Indian and knowing India. 7. One. Past excellence is no excuse for incompetence.Advertising. 4. They understood what India made tick. Sales Promotion and Brand Management A. 5. who encourages excellence. 9. 5. 6.K. of Accounts No of Offices No of Division No of Employees Industry Ranking     2000-2001 7000 120 8 8 549 4 Branches… Ahmedabad Bangalore Chennai Delhi Hyderabad Kochi Kolkata Mumbai Mudra Divisions 1. Baba Institute of Technology and Sciences ________________________________________________________________________  Most importantly. Asso.     Billing Million No.com (Advertising Achive) Mudra Digital Consulting ( Digital consultancy for brands) Mudra InfoTech Mudra International Mudra Videotech ( Video software) Prime site (Outdoor Media) Optimum Media Solutions 23  . Together they took Indian to the Indian. Made in Mudra Made in India Key Facts 1. 3. Mudra‘s advent on advertising scene saw the birth of the true Indian advertising professional. an agency is only as good as its last campaign. 6. 4.Prof. Made in India Mudra became the largest advertising agency in the ninth year of its existence. delivers the good on time and does it in most cost effective manner. 3.Mohideen. 2. Horizon Porter Novelli (Public Relations) ICRG (Market Research) Magindia. This is Mudra spirit. 2.

Bennie‘s and Polo.            Godrej Foods Godrej Soaps Indian Oil Corporation Kinetic Honda Larsen & Tubro LIC McDonald‘s MTNL Mid-Day Reliance Industries Reliance Entertainment            Reliance Capital UTI Indian Express Screen SBI Mutual Fund Nestle Hindustan Inks Johnson & Johnson skincare Indiagames. Mudra has a hot growth story of the 1980‘s (as was Reliance textile brand Vimal). home grown. it has build such as ‗I love you Rasna‘. Asso. Mudra was the 1st advertising school in India. Sales Promotion and Brand Management A. Baba Institute of Technology and Sciences ________________________________________________________________________ Awards  1996 : 90 awards Agency of the Year: Advertising club Copywriter of the Year: Kolkata advertising Club (Freedy Birdy)  1997 :67 awards Agency of the Year: Pioneer Hall of Fame (A.Advertising. Nestle goodies particularly.Prof.G Krishnamurthy) Kolkata advertising Club Major Accounts (Mumbai)…. but this has not led the two up to the altar Mudra‘s pride is not for nothing. dismissive of sustainability of ‗Global Alignment‘ of advertising account ( the same brand being handled by one network around the globe) and unrepentant in its refusal to sell its stake to any foreign suitor.K. Dhara. DDB Needham has long had affiliation with what is an agency own by Reliance‘s famous Ambani family. It is among few big agencies whose names means something heart-held in the language of Indian Origin.com Balsara Household Products Rasna Mudra is a fiercely Indian Agency. END OF MODULE II 24  .Mohideen. It won many MNC account on the strength of its market understanding and creativity.

25  .Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE. Explain Advertising objectives of moving the target audience through hierarchy of effects model with suitable examples 3.Advertising. What is DAGMAR? Explain its functions 2. Advertising objectives in terms of Communication Effect.K. Explain strengthening attitude as an advertising objectives 4. Define DAGMAR Descriptive Questions 1. Sales Promotion and Brand Management A. Asso.III ADVERTISING OBJECTIVES Concept Questions 1.Prof.

6. 5. Inform and build awareness Create brand knowledge Reinforce positive attitudes about the brand Precipitate buying action Increase sales Build up image To facilitate the realization of advertising objectives. 2. it is necessary that these are laid down in specific operational terms.K. Baba Institute of Technology and Sciences ________________________________________________________________________ THE ADVERTISING OBJECTIVES ARE: 1.Mohideen. Advertising objectives in terms of communication effects Ads Advertising Objectives Advertising Strategies Marketing objectives & Strategies Situation Analysis Ad Planning & Strategy Process 26  . 1. Asso.Advertising.Prof. 4. and are linked to the time span during which these are to be accomplished. Sales Promotion and Brand Management A. 3.

Prof.Mohideen. These are several methods employed by copywriters to increase the impact of each step in the AIDA process.Action Attract the audience to the as message and then provoke her. making an enquiry with the retailer or whatever has been set as the copy goal. Sales Promotion and Brand Management A. In the central theme that presents forceful selling point. I – Interest 3. 1. Model 2: DAGMAR Colley developed the DAGMAR model. Asso. which arouses. D – Desire 4. A – Attention 2. The term AIDA is an acronym derived from the four words describing the steps in the process.Awareness Awareness Comprehension Conviction Motivation 27  .K. The model describes the purchase process as under: Non . that ultimately leads to. To act in favorable manner.Advertising. Baba Institute of Technology and Sciences ________________________________________________________________________ Model 1: AIDA THE AIDA MODEL This fundamental model has for many years guided copywriters in writing persuasive copy. Action of purchasing the product. A .

Sales Promotion and Brand Management A.Mohideen. in a paper presented at the symposium of behavioral and management science sponsored by the centre for continuing education. Asso. McGuire presented this model. Baba Institute of Technology and Sciences ________________________________________________________________________ Model 3: Information Processing INFORMATION PROCESSING MODEL William J.Advertising. use in this model. The six steps in the persuasion process. are as follows: Presentation Attention Yielding Retention Behaviour 28  . university of Chicago.K.Prof.

Baba Institute of Technology and Sciences ________________________________________________________________________ Model 4: Hierarchy-of-Effects This model developed by Robert J. Sales Promotion and Brand Management A. Steiner. Asso.K.Advertising.Prof. Lavidge and Gary A.Mohideen. Unawareness Awareness Knowledge Linking [Favourable attitude] Preference [First choice] Conviction [Desire to buy] Purchase 29  . illustrates a series of steps that progressively increases the commitment of a prospect to buy the product.

New products advertisements usually aim at generating awareness.Advertising. Sales Promotion and Brand Management A.Mohideen. 30  . it is said that consumers pass through five stages: Awareness Acceptance Preference Buying Intention Provoking Sales Awareness is similar to ―attention‖ as discussed earlier. Asso.Prof.K. Baba Institute of Technology and Sciences ________________________________________________________________________ Model 5: Industrial Conference Board In this model. In this step the emphasis of the ad campaign is to generate brand awareness.

usually to action. Attitude means involvement. attitude indicates the likes and dislikes of the people about a particular product.Prof. Baba Institute of Technology and Sciences ________________________________________________________________________ Model 6: The Stimulus Response Product Attributes Attributes Influences Perceptions I N P U T S Corporate Attributes BLACK BOX O U T P U T Behaviour Situational including competitive circumstances The above mentioned communication models have played a very significant role in bridging the gap between communication and advertising objectives. An attitude cannot be said to exist without a belief. 31  . Belief is a must in attitude. Asso.Mohideen.Advertising. It was easy for ad agencies to understand the ad making process better. STRENGTHENING ATTITUDES AS AN ADVERTISING OBJECTIVE ATTITUDE Attitude is the most important variable in social psychology.K. Attitudes govern the response to a stimulus and lead to behaviour. and readiness to action. Sales Promotion and Brand Management A.

It is important to evaluate the object in terms of its qualities. 3. a positive attitude towards the object is a good omen.Mohideen. If the attitude is negative. Affective evaluation 3. Attitude may range 32  .K. The response may range from ignoring the object stimulus to aggressively attacking it conversely. It may result in praise and. Asso.. but more or less. Action Rendency (Conative) This component is behavioral part of the attitude.Advertising. whether individuals like the object or not. comprehension. This component states why the objects carry a positive view. Affective Component The Affective Components is the individual‘s emotional reaction to the object. i. The concern is not only believes about the characteristic of the object. Cognitive [awareness. Without belief / opinion of product attitude cannot take shape. it will adversely affect the behaviour of the person.Prof. the readiness to respond with action. Cognitive Component The Cognitive Components is what the individual knows or is aware or believes about the product. about its evaluations.e. Action Rendency ( Conative ) Affective Cognitive Conative 1.e. Sales Promotion and Brand Management A. moral or immoral or necessary or unnecessary. and knowledge] 2.. whether the object the object is good or bad. i. whether they have favourable or unfavourable attitude towards the object. hopefully for the marketer in the purchase of the product. 1. Baba Institute of Technology and Sciences ________________________________________________________________________ COMPONENTS OF ATTITUDE These are the 3 main components of attitude. 2.

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ from indifferences to passion with many complexities along the way. Attitudes do not spring up all of a sudden. Experience teaches us what is good or what is bad. Attitudes do not function in isolation. This interacts with perception, thinking, feeling, and reasoning. Therefore, consumer attitude is important for the marketer to assess the success of the product. Attitude Formation and Change through Mass Communication The factors that lead to attitude formation are: CREATIVE POSITIVE ATTITUDE Creative Positive Attitude can also be a worthwhile objection in case of established product. The following creative styles and approaches can be used for this purpose: Message Focus 1. A message can be designed to focus a receiver‘s attention. The focus may be on the source, i.e. who is explaining the message. But care should be taken that the sources and what he or she is communicating by actions, voice, and role position should be in agreement and is able to attract the receiver‘s attention. 2. An alternative may be to concentrate on generating emotional reactions in a receiver by putting him or her in pleasant mood, enhancing and bolstering his or her ego, or using some type of emotional appeal. 3. A receiver‘s attention may be directed mainly to claim being made which are based on widely accepted principles and logic. Thus, the main objective of this style is to focus the attention of the receiver to the message.

DAGMAR CONTINUES…. GO TO NEXT PAGE

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Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

DAGMAR
Russel H Colley called for the need to provide explicit link between adverting goals and advertising results in his pioneering approach called DAGMAR [Defining advertising goals for measured advertising results] in the early 1960‘s. All communication seeks to persuade people to think, feel or act in a particular way in their relationship with a brand. The stages of relationship between consumer and brand, and the steps taken to arrive at a purchase decision have been mapped over several years. Yet, despite the efforts of many great minds, we still understand these things at little more than a superficial level. The combination of emotional and rational elements in a buying decision, combined with extensive external pressures mean that any purchase decision is very complex and that each is probably unique. Russel Colley distinguished 52 advertising goals to explain his model. He argues that consumers start by not knowing the brand, hence – unawareness, they learn of its existence – awareness, then gradually develop an understanding of what the brands offer – the stages of comprehension. They come to believe the brands message – convection and finally that the brand is right for them and so they buy – action.

Unawareness Awareness Comprehensio n Conviction Action The DAGMAR Model

34 

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

DAGMAR RESTS ON 2 BASIC OBJECTIVES
I. Sales as an objective II. Communication objective In sales as an objective DAGMAR propounds that direct tools like mail orders etc… can enhance sales through advertising. In Communication as an objective; DAGMAR states that awareness for the brand should be created and communicated. Possible Roles for Communication Role for communication To establish awareness of the brand’s existence on the market To increase the level of that awareness amongst a larger proportion of the target audience To educate or inform the audience about particular aspects of the brand To establish particular perceptions or to correct mis-perception of the brand To generate retailer visits, or mail/telephone responses. To prompt trail or sell products

DAGMAR Stages Unawareness Awareness Comprehension Conviction Action

The DAGMAR approach to advertising planning is summarized in its lucid statement defining an advertising goal. An advertising goal is specific communication task, to be accomplished among a defined audience in 2 given period of time. I. A COMMUNICATION TASK An adverting goal certainly involves a communication task. Step 1: The communication task is based on a specific model of communication process. There are a series of mental steps which a consumer has to go through in purchasing a brand. [Unawareness to Action] Step 2: Before person likes or dislikes a brand, he must learn something about it. It is called as ―Brand Comprehension‖

35 

the DAGMAR approach provides a mechanism to incorporate behavioral science theory into advertising. On reality it is not so easy. 2. 36  . it is necessary to indicate exactly what appeal or image is to be communicated.Mohideen. a defined audience and a fixed period. 1. II. Sometimes. has to be selected. 3.Prof. 2. Baba Institute of Technology and Sciences ________________________________________________________________________ Step 3: The third step in the conviction step and intervenes between the comprehension or image stage.Advertising.K. It helps in determining how the advertising should be pre-tested. Most measures of attitude would fall into this category. which the campaign has to address. The Sales Goal: Awareness alone doesn‘t affect sales. A SPECIFIC TASK DAGMAR emphasis the communication task of advertising as contrasted to the marketing objectives of the firm. Asso. Measurable: DAGMAR needs to be made specific when actual goals are formulated. When brand comprehension is involved. a consumer may purchase a brand on impulse behavior. measurable task involving a starting point. Sales Promotion and Brand Management A. It provides a planning tool that can lead to a systemic control over advertising budgets and campaigns. CHALLENGES TO DAGMAR The following are some criticisms to DAGMAR given below: 1. Practicability: A level in the hierarchy. Finally. CONTRIBUTIONS OF DAGMAR DAGMAR has 3 potential aspects that make it potentially useful to advertising. It should be written. Target: The audience must be well defined as to when the product is segmented etc… Time Period: The objective should involve a particular time period such as six months or a year in order to evaluate the results of the ad campaign. The DAGMAR approach provides guidance to the creative groups. The second important concept of DAGMAR is that the advertising goal be specific.

Advertising. The model suggested by Krugman. conviction and action. if the brand were on a bid list. The concept of objectives is similar. Noise in the System: There are many other factors which affect sales. DAGMAR . used such constructs as evaluation. Baba Institute of Technology and Sciences ________________________________________________________________________ 3. for example. In DAGMAR Module II.g. may well be applicable in some situations. the emphasis is on determining the model that will apply to the particular situation. 4.MODULE II It was basically developed to overcome the problems of DAGMAR DAGMAR Module II retains many of the features of DAGMAR. The proper approach is recognize this fact and to determine the appropriate model for the context at hand.Prof. and be based on me measurable construct.g. Inhibiting the Great Idea: DAGMAR is claimed to provide guidance to creative people. First. Aggregate short term sales or market share can be used as a measure but will usually be inappropriate. 5. It is unreasonable to expect that some universal model will always apply. for e. DAGMAR Module II will extend DAGMAR in several important ways. An objective should specify a target audience.Mohideen. It should be based on communication model of a process that will lead to a desired behavior. As Haskins suggested. Objectives could be equally well motivated by a model that doesn‘t have a hierarchy premises. If industrial or organizational were the focus. a specific time period. comprehension. it will attempt to draw on current research to improve the communication model on which DAGMAR is based. The measure can be based on the desired action – getting people to try a brand or to increase their loyalty. the true situation includes the qualification. Asso. a logical hierarchy step would be to determine. – But will frequently focus on an intervening variable such as image or attitude. and adoption. awareness or brand comprehension is very difficult in practical situations. The problem is it doesn‘t have any influence on this work. ―It all depends!‖ 37  . for e. Advertising alone cannot create awareness far a brand always.K. DAGMAR was associated with a particular hierarchy-ofeffects model of the communication process that included awareness. The fact is that the communication and the behavior process involved will often be unique to a particular situation. Measurement Problems: Measuring attitude. There is a problem in the response models. Sales Promotion and Brand Management A. A benchmark level should be ascertained and target levels specified. The hierarchy model based on the innovation adoption process. Basically. trail. The appropriate model could involve different intervening variables.

DAGMAR Module II will emphasize more analytical models. attitude. attempts will be made in chapter 7 to ascertain the long-run value of the behavior. advertisers began to use the techniques of psychology in a big way. Sales Promotion and Brand Management A. The constructs like image. This manipulation of peoples mind was exposed in books such as ―The Hidden Persuaders‖ and ―The Process of Persuasion‖ by Clyde Millers. He developed a persuasion matrix. Baba Institute of Technology and Sciences ________________________________________________________________________ Second. The Modus Operandi of Persuasion Matrix Independent Variable: Source Message Channel Receiver Destination The communication Dependent variable: component Steps in being persuaded Message presentation [p] 0 Attention [a] + Comprehension [c] + Yielding [y] ++ Retention [r] ++ Behavior [b] ++ Source: McGuire ―An information processing model of advertising effectiveness‖ 38  . The combination of communication components and a response hierarchy has been suggested by Mc Guire. In the case of behavioral constructs.K. attitude and behavior will made more precise and capable of empirically based analysis.Mohideen. Only when this link is formalized can the key question of implementation be comfortably addressed.Prof. especially in the post world war II period. PERSUASION MATRIX During the early 20th century. The response hierarchy matrix can be considered as different kinds of dependent variables that are both measurable and for one of the steps that a receiver goes through in being persuaded. attempts will be made to make explicit the link between these constructs and behavior. The communication components are independent variables of the factor that an affect each step. Asso. which combines a particular view of response hierarchy with the communication components.Advertising. In the case of intervening of variables like image. In order to combine the communication objectives and response hierarchy psychologists carries out a number of studies.

+. Advertising is either good or bad in its ability to achieve its objectives. Only Advertisement cannot impact sales: If a salesman uses persuasion process to sell a product. the objectives of each advertising campaign need to be clearly spelt out in measurable terms. The persuasion matrix is basically to evaluate the effectiveness of an advertisement. 39  . Scanning the results of each entry would provide an indication to the strengths and weakness of the camping. 0 [and perhaps – to be used where the component might interfere with the occurrence with one of the steps]. Asso.K. Though advertising is largely informative and persuasive in nature. market position and market mix.g. but not to sell brands. vivid contrast. yet to do a good job. Baba Institute of Technology and Sciences ________________________________________________________________________ A careful look at the persuasion matrix [illustrated overleaf] will lead us to understand the functional aspects of the matrix. Each component would then be scored with respect to the degree of the contribution to the accomplishment of each one of the steps. if the attention has to be increased for an advertisement. Sales Promotion and Brand Management A. this model is redundant. through an independent variable such as ―source‖. CRITICISM OF PERSUASION MATRIX The persuasion matrix faced several criticisms: 1. one could use factors such as: color. in order to focus clearly on the target audience and in the time period over which these are to be achieved. 3. The dependent variables go hand in hand with the independent variables. The marketing positioning and market mix strategies define the job that advertising must do in the total marketing program. 2.Mohideen. Many advertisements are used these days to build brands. seductive female voices etc….Prof. Outdated Models: Persuasion matrix is an outdated model in the present scenario. For e. Sacrificing components: A matrix can only display a few components. These objectives must flow prior decisions on the target market. camera movements. Because the components of advertising cannot match with that of salesmanship. McGuire suggest a simple scoring system of ++. It cannot successfully match all the components. ADVERTISING OBJECTIVES The first step in developing an advertising program is to set the advertising objectives.Advertising.

Some of such goals are: 1. Some of them are: 1. a year‘s campaign for a product or a company‘s entire philosophy. The AIDA Model Developed by E.Advertising. They are as follows: There are several models that have been developed to analyze the responses of consumer‘s behaviour to persuasive advertising communication. premium ) Build familiarity and easy recognition of the package or trademark. 6.K. The process of advertising goal setting thus. The DAGMAR Model Developed by Russell Colley in ―Defining advertising goals for measured advertising results‖ 3. An information processing Developed by William J. COMMUNICATION MODELS Psychologists all over the world made an attempt from the last century in connecting COMMUNICATIONS with ADVERTISING OBJECTIVES. 4. Baba Institute of Technology and Sciences ________________________________________________________________________ Russell H Colley called for the need to provide explicit link between advertising goals and advertising results in his pioneering approach nicknamed DAGMAR –Defining Advertising Goals for Measuring Results. Sales Promotion and Brand Management A. 5. Asso. strong in his book ―The psychology of selling‖ 2. Awareness Comprehension Image Action Advertising goals should. 4. the communication task of the brand is to gain: 1. Persuade prospect to visit a showroom. ask for a demonstration Build up the morale of the sales force of the company. therefore be specific to the communication task to be performed.Prof.K. Various communication models were developed in the above course of time. 3. 3. Announce a special reason for ‖buying now‖ ( price. should begin by understanding the dynamics of the consumer behavior and the market environment in order to carry out the task of marketing communication effectively. 2. Colley distinguished 52 advertising goals that might be used in connection with a single advertisement. Place advertiser in a position to select preferred distributors and dealers. According to DAGMAR.Mohideen. 2. McGuire Model of advertising effectiveness 40  . Implant information or attitude regarding benefits and superior features of a brand.

The stimulus – Response Discussed by A.Mohideen.Prof. Steiner 5. Hierarchy of effects Model Developed by Robert J.. Fery and Jean C.W. Lavidge and Gary A.Advertising. Berkman in their book ―Advertising concepts and strategies‖ 6. Model Halterman in their book ―Advertising‖ END OF MODULE III 41  . Sales Promotion and Brand Management A. Asso.K. Baba Institute of Technology and Sciences ________________________________________________________________________ 4. Industrial conference board Discussed by Christopher Gilson and Model Harold W.

Mohideen. Comment. 5. State various factors affecting Brand Image. How would determine the positioning strategy 4. ―Every Advertisement must be considered as a contribution to the complex symbol.IV BRAND MANAGEMENT Concept Questions 1. Distinguish between image and positioning 2.K. How would you develop Brand Image/ Brand Personality strategy? 3. Define Brand Personality 6. Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE.Advertising. Asso. What is advertising Brief 2. Define Brand Essence Descriptive Questions 1.Prof. 42  . Differentiate between brand image and positioning 3. which is a Brand Image‖. Sales Promotion and Brand Management A. Define Brand Equity 7. Define Brand 4. Explain any 7 positioning strategies.

Advertising.Mohideen. attitudes. etc Product Core Brand Brand Utility Brand Identity Brand Values Performance: How does the Brand satisfy the need better 43 Values: Core Values that brand will stand for  . Baba Institute of Technology and Sciences ________________________________________________________________________ What Makes a Brand? What does it do to you?? Brand Equity Value added by Brand Brand Image Brand Identity Who the brand is Product Core Functional Brand Utility What the brand provides Brand Personality What is it??? What it does for you?? Functionality: What functional needs the brand will satisfy Feelings: Who is the brand for personality. Sales Promotion and Brand Management A.Prof. Asso.K. perceptions.

Advertising. not only do we recall the physicality of the product but also the image it conjures. EXAMPLE: SUNDROP = SUNFLOWER OIL + (HEALTHY FAMILY + HAPPY CHILDREN + LOVING MOTHER + TASTY FOOD +…) Brands are an integral part of the product policy. Numerous research studies across the world have proven that the best way of creating and retaining customers is by building strong brands. Sales Promotion and Brand Management A. The single most important job in marketing is the job of creating and also obtaining a customer. A product is the amalgam of the physical product and notional images that go with the brand when we recall a brand.Prof. Brands are long term investments made by the companies for their future to be certain. The most distinctive skill of marketers is their ability to create.K. symbol or design. USA 44  . term. sign. protect and enhance brands. Companies spend huge amounts of money for the creation of a powerful brand.Mohideen. BRAND DEFINED: ―A brand is a name. or a combination of them. Baba Institute of Technology and Sciences ________________________________________________________________________ INTRODUCTION TO BRANDS Management thinkers today strongly believe that the customer is king. Asso. Now what are Brands? Products? Enhanced Products? Products with names? In a simple equation BRAND = PRODUCT + IMAGES A brand is more than the mere product it stands for. intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors‖ American Marketing Association. maintain.

(Emotions about the brands) Eg : ICICI Bank ( Hum Hai na) SENSUAL APPEAL: These relate to the feeling. Asso.Advertising. the sensous image the brand stands for the customers. Eg :.Mohideen. It should trigger a feeling. Eg: Bisleri ( Play Safe) 45  .Prof. Baba Institute of Technology and Sciences ________________________________________________________________________ Brand composition RATIONAL APPEAL EMOTIONAL APPEAL SENSUAL APPEAL RATIONAL APPEAL: These relates to the physical features that are embedded in the brand.K. Sales Promotion and Brand Management A.4 stroke engine ( Hero Honda) EMOTIONAL APPEAL: These relate to the images or the associations a customer display with respect to the brand.

Prof.Advertising.Mohideen. Asso.K. Sales Promotion and Brand Management A. Baba Institute of Technology and Sciences ________________________________________________________________________ BRANDING FRAMEWORK Brand Vision Customer Survey Market Scan What the brand wants to stand for Customer Presepective Competition Prespective Brand Positioning Statement Current Category and brand perceptions What the Brand will stand for Current Positioning Landscape Core Brand Values And Promises BRAND Brand Identity Parameters Relevant Brand Communication 46 Distinct  .

Mohideen.Prof. The second task is to enhance its recognition by the provision of a symbol or identity.media and non media Creative Brief Media Brief  Target Audience objective Profile Suggested Advertising Task  Media Objective Geographical  Suggested Medias  Geographical market priorities Media  Seasonality of sales Duration  Media Budgets  Duration of the campaign Target audience profile Key consumer insights Advertising task Campaign requirements Brand promise Brand image.Advertising.  Previous advertising of Budget The brand and the competition of the campaign  Budgets. Sales Promotion and Brand Management A. Baba Institute of Technology and Sciences ________________________________________________________________________ THE ADVERTISING BRIEF Background Advertising brief  Key brand characteristics  Brand performance i. The third task is to develop a unique image for the brand and to build its personality over the long term.K.e Media Market performance market  Competitive analysis priorities. Asso. Thus successful brands are MAJOR ASSETS FOR A COMPANY. personality DEVELOPING BRANDS The first task is the development of a brand is to give the product an identity through a name. Example: Frooti for Parle Exports. 47  .

benefits or looks of the brand.Prof. Sales Promotion and Brand Management A. It is the resultant effect of these two aspects of a brand.  Brand Image includes two aspects of brand –its associations and its personality. Brand Positioning) might happen but if this does not happen the job is not complete. It could be specific to attributes. as per the consumer. Asso.  Brand Attitude defines what the brand thinks about the consumer.  Brand Association includes all that is linked up in memory about the brand.Mohideen. But the one association that stands out in 48  . A brand may have image on one or more aspects. A brand may have a range of associations. features. All other aspects (eg. A brand may have ‗attitude‘ on one or more aspects. Baba Institute of Technology and Sciences ________________________________________________________________________ THE BRANDING PROCESS BRAND IMAGE + BRAND ATTITUDE BRAND RELATIONSHIP BRAND IMAGE BRAND ASSOCIATIONS + BRAND PERSONALITY BRAND ASSOCIATIONS LINKS UP IN MEMEORY WITH BRAND’S ATTRIBUTES BENEIFITS BRAND LOOKS BRAND SYMBOL + BRAND NAME BRAND SYMBOL BRAND CHARACTER + BRAND LOGO  Brand relationship is the ultimate achievement-need of branding.Advertising.  Brand relationship happens if ‗image‘ and ‗attitude‘ for a brand exist.K.

Pillsbury doughboy) and its logo. which have a role to play in forming/reinforcing brand associations. a brand has a ‗position‘ it is of great advantage.  ‗Necessary‘ aspects for brand relationship to exist are: o Brand name. A brand may have one or more associations but no ‗position‘.  ‗Highly desirable‘ aspects for brand relationship to exist are (excluding the ‗necessary‘ aspect): o Brand position.Wendy Gorden A brand personality is a shorthand way of describing the nature and quality of the consumer response to a brand. and o Brand attitude. the same is not true for brand symbol. Asso. If among its ‗associations‘.Mohideen.  Brand Looks. o Brand associations. ‗brand position‘ is not a sufficient condition for brand relationship. are facilitated by two key properties of a brand – its name and its symbol. but a ‗highly desirable‘ condition. Sales Promotion and Brand Management A. While brand name is a necessary condition for existence of brand relationship. In other words.Prof. it should have ‗image‘.‖ . CONDITIONS FOR BRAND PERSONALITY 49  . BRAND PERSONALITY: ―The term ‗brand personality‘ is a metaphor for emotional relationship that exist between a consumer and a brand. However.  For a brand to have brand relationship. But if a brand does not have a ‗brand position‘ it does not mean that it would not have brand image or brand relationship. Amul girl. Baba Institute of Technology and Sciences ________________________________________________________________________ memory and differentiates it becomes the ‗position‘ of the brand.K. and o Brand symbol. if the latter exists it helps the process of brand relationship and reinforces it. And for ‗image‘ a brand should have ‗association‘.Advertising.  Brand symbol two visual signals of a brand – its character (Eg.

Example: Dove. as did 95 percent of other respondents. personality: adventurous. the attractiveness and features of the creative execution are the prerequisites. If you were asked which company you‘d like to be friends with. can rouse feelings of confidence that it will improve a middleaged women‘s complexion. There are about two hundred words that describe personality characteristics. Among the many values. excitement seeker.  The second condition is that all elements of the marketing communications mix mainly advertising have to give the brand a human face. and the personality characteristics they develop. beliefs and characteristics that a person may have. but more of behavior. irreverent.  The fourth and the most difficult condition for creating successful brand personality is that it must be unique and distinctive – originally.Advertising. you‘d probably choose Company b. Pepsi – Yeh Maange More. People‘s personalities are determined largely through the values and beliefs they have. then the brand image of Company b will be much better than that of Company A. when asked the question: ‗If these two companies were people. Asso. Baba Institute of Technology and Sciences ________________________________________________________________________  The brand functional performance must inspire feelings of trust and confidence. It is also easy to conclude that if consumers consistently experience these differences between the two companies. people are inevitably attracted.from style. To illustrate how people think in personality terms while judging brands. Many people believe in being honest in everything they do and say. An example of a value or belief is honesty. Example: Titan watches is superlative example of everything surrounding them. This is not precisely a belief. listed in the table above are the results of consumer research into how people feel about two companies.  The third condition for creating an effective brand personality is that it must be persuasive for the target consumer. It is not surprising that the service level of Company b can be a better experience for customers.K. personality: youthful.Mohideen.Prof. An example of a characteristic is confidence. design and accuracy to outlets and advertising . Example: Nestle Polo – the mint with hole. everyone has views about themselves and how 50  . how would you describe them?‘ These two companies are actually competitors in a service industry. a personality.has contributed to the brand personality. he must find it more attractive and relevant compared to similar brands. there are some that are particularly likeable and to which. Sales Promotion and Brand Management A. Some other examples of brand personalities are: Thums Up – taste the thunder. A further point of B interest arising out of this research is that people tend to prefer brands that fit in with their self-concept.

The closer the brand personality is to the consumer personality (or one which they advertising-mire or aspire to). and can be extremely successful if the segment has a high degree of global homogeneity. Sales Promotion and Brand Management A. To 51  . independent. Companies such as Levi Strauss that research their target audience fastidiously. A related product-brand personality (for a specific customer group) such as Levi‘s 501 jeans is Roman-tic. want and like. rebellious. which changed over time (especially in the readymade brand-edapparel sector). These brands significantly failed to enhance their brand personality with the changing times.Mohideen. The approach is ideal for brands that adopt a marketniche strategy. rebellious. Many brands have fizzled out because their attributes were not able to keep pace with the target group‘s. favour this type of approach. I wonder how many of us remember brands such as Avis. likes being admired. Companies should periodically conduct analyses of their brand personality. The result is a master-brand personality that is original. Both profiles appeal mostly to the emotional side of people‘s mind to their feelings and sensory functions. Asso.Advertising. sexually attractive.K. Change in self-perception of the target (in the 1960s the majority of the youth perceived themselves in the Beatles‘ mould. resource. masculine. sexy. Create the product personality to match that profile. Baba Institute of Technology and Sciences ________________________________________________________________________ they would like to be seen by others. or those whom they admire. And they tend to like personalities similar to theirs. creating a brand with a personality similar to that of a certain type of consumer would be an effective strategy. free and American.Prof. as is the case with Levi‘s. youthful. This could be because of various reasons such as:     Change in socio-economic conditions Media and cultural influences Change in the immediate external or internal environment of the target. Thus. the greater will be the willingness to buy the brand and the deeper the brand loyalty. which were doing fine till just a few years ago. individual. physically adept. The target could change personality over time. This profiling approach aims to reinforce the self-concept of the consumer and her aspirations. in the 1990s it was Spice Power). Apache. They should match brand attributes with the target-segment attributes. Build a consumer personality –profile based on the findings. Blue Lagoon and Wanted. The process will be:     Define the target audience. Find out what they need.

masculine.Prof. Brand Positioning I. Brand personality is anything and everything that influences how its target constituencies or even the individual consumer perceives a brand or a company. It is the outcome of the brand association & brand personality. Positioning is derived from the marketing plan of a company. In the late 1950s. Brand image is a part of brand management. alert to change and self-confident. Brand personality may be the best. impulsive. It is developed before the advertising campaign is finally derived. Although. VI. sometimes it is repeated by some brand. if the brand is addressing a different segment of the market.Mohideen. it can be perceived only after the advertising is screened. Asso. III. VII. Brand Image It is the distinctive impression the brand creates in the mind of the prospect. V. single marketable investment a company can make.K. II. Image is a ―PULL‖ strategy. The Ford buyer was identified as independent. It is the outcome of the advertising. as the entire marketing strategy has to be re-worked. Smart marketers utilize ‗personality‘ variables to segment markets. On the other hand. which is closest to her thoughts and beliefs. Positioning is a ―PUSH‖ strategy. Creating or revitalizing a positive brand personality means reinforcing a pillar on which the company can lay the foundation for its future. IV. It is the outcome of segmentation & targeting. the companies should monitor their external and internal environment regularly as and when required. Positioning can be an ultimate differentiate for a brand. It is a distinctive position the brand creates in the mind of the prospect. Distinguish between brand image and positioning. Sales Promotion and Brand Management A. which is flexible enough to adapt to those changes with an add-on to its personality. image tries to provide distinctiveness. It is very easy to change the brand image of a brand. The consumer generally becomes loyal to a brand. and the brand. less masculine and seeking to avoid extremes. prestige conscious. the Chevrolet owner was conservative. These are bound to change over time (especially generation to generation). Ford and Chevrolets were promoted as having different personalities.Advertising. thrifty. It is very difficult to change the positioning of a product. 52  . In other words. Baba Institute of Technology and Sciences ________________________________________________________________________ maintain brand loyalty. lives the longest. It is also the outcome of product positioning.

It is a combination of association and personality of a brand. sometimes using celebrities to create an image.Mohideen. effectiveness. Not much on brand features. Asso. Baba Institute of Technology and Sciences ________________________________________________________________________ VIII. It is usually done on the brand‘s It is usually more on emotional plank features or appeal. target market. For example. value for money etc. Positioning is usually done on Image can appeal to the non-users of the user segment. Sales Promotion and Brand Management A. Brand image includes a set of BAs usually structured in a logical fashion.Prof. BRAND IMAGE &VARIOUS FACTORS AFFECTING IT BRAND Brand Relationship = Brand Image + Brand Attitude Brand Image = Brand Associations + Brand Personality Brand Associations = Link up in memory with brands attributes benefits and looks Brand Looks = Brand Symbol + Brand Name Brand Symbol = Brand Character + Brand Logo PRODUCT Brand image is one of the two critical elements of brand relationship. Associations can exist on a host of parameters/aspects such as. similarly image based on BA can exist on a range of factors like quality.Sunsilk helps one have good healthy hair and good knight helps one ensure a good sleep for the family. X.provides immediate relief.K. the brand also. IX. One or more BAs can generate a brand image and while reading a brand image statement based on BA quite often one may feel like reading a BA statement as both are closely linked. relief does not last long is affordable. is easy to get has no side effects it is okay for children doesn‘t have a bad taste its smell is somewhat floral etc.Advertising. 53  . Positioning is usually done by Image is the derived outcome of the the marketer/advertiser.

K. Sales Promotion and Brand Management A. Asso.Prof.Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ BRAND IMAGE = Brand Associations + Brand Personality BRAND ASSOCIATIONS PRODUCT ATTRIBUTES COUNTRY/ GEOGRAPHIC AREA CUSTOMER BENEFITS COMPETITORS INTANGIBLES BRAND NAME AND SYMBOL RELATIVE PRICE USE/ APPLICATION PRODUCT CLASS LIFE STYLE/ PERSONALITY CELEBRITY/ PERSON POSTIONING STRATEGIES 54  .Advertising.

Physical characteristics are objective and can be measured on some physical scale.  Temperature. Pseudo-physical characteristics. convenience.Prof. Asso. Positioning was introduced with idea of being able to compete in a tougher. confused one. shininess (Kiwi shoe polish) Benefits represents to advantages that promote the well being of the consumer.‖ d) While it is tempting to include several product characteristics at the same time. 55  . saltiness. or the competition. Baba Institute of Technology and Sciences ________________________________________________________________________ Al Ries and Jack Trout first introduced the concept of positioning.‖ The ability to fight cavities is a product attribute that translates into a consumer benefit.  ―The toothpaste with clove oil. greasiness. are characteristics that cannot be easily measured. all of them have the ultimate objective of developing or reinforcing an image in the minds of the audience. A positioning strategy may be developed from the product‘s attributes. Infocom – too many punch lines.  Quenching thirst (Limca). a new product can be positioned with respect to product characteristics that competitors have ignored. satisfying hunger. its specific uses.‖ c) A product can also be positioned along two or more characteristics at the time. the resulting image of the product in the minds of consumers may be a fuzzy. ―Positioning is a strategy of differentiating your product from that of the competition.K. the type of uses. thickness. Each of these represents a different approach to developing a positioning strategy. E. However.g.Advertising.  ―Double-action pepsodent fights cavities and freshens breath. the product class or category. or benefits. Positioning by Product Characteristics/Consumer Benefits a) This is commonly used strategy and consists in associating an object with a product characteristic or customer benefit. Following are steps of positioning strategies: 1. could be based on physical characteristics. not harmful to the skin. more competitive marketplace. during the decade 1970-1980. b) Sometimes. Sales Promotion and Brand Management A. Beside. e) A positioning strategy based on product characteristics. advertising that tries to communicate too many things at the same time may not drive home the main message effectively.  ―Colgate is a cavity fighter.  Spiciness. sweetness. in contrast. colour. pseudo-physical characteristics. in the mind of the prospect. weight.Mohideen. creaminess.

5.g. Positioning by Product Class 56  . On the one hand. Manufacturers of such brands charge more. One way of doing this is through celebrity endorsements.‖ 4. to communicate that higher price and higher quality goes together. They offer more by way of features and performance and claim to be of quality that is comparable and is another way of positioning based on price-quality. Such brands should be positioned based on the price-quality approach. designer clothing.g. or where low price is often considered to be synonymous with inferior quality.‖  Dettol: The liquid protection against bacteria. whisky. Asso. Sometimes. now new Aishwarya‘s advertise says that by using Lux you can also become a star. partly to cover higher cost. E.  Zenith Computers: ―MNC quality. E. Positioning by Product User This is a strategy of associating the product with a particular type or class of user. The example of ―Arm and Hammer‖. Baba Institute of Technology and Sciences ________________________________________________________________________ 2. Positioning by “Price-Quality” The price-quality issue is so important in some product category that it is a positioning strategy in itself. Sales Promotion and Brand Management A. there are certain product categories where high price is automatically associated with quality. Indian price. leather goods. Lux-earlier their positioning was ‗Filmi Sitaroan Ka Saboon‘. Positioning by Use or Approach Associating the product with a specific use is another commonly used positioning strategy.  Videocon‘s value-for-money positioning.Mohideen. this type of positioning strategy may also be used to expand market for a particular brand.  Perfumes. mentioned earlier. 3.K. Arm and Hammer successfully positioned their product as an odour-destroying agent in refrigerators.Advertising. there may be other brands in the same product category that try to appeal on the basis of lower prices. an international baking soda brand. On the other hand. and partly to communicate that they are of higher quality.Prof. FNL  Vicks: ―Use Vicks when cold attacks.‖  Clinic All Clear: ―The dandruff-control shampoo. is an example of this. stereo systems.

Prof. which helped differentiate Marlboro from other cigarette brands. sometime it is not important how good customers think you are. the uncola‖. The competition is used as the point of reference. some brands need to associate themselves with a unique classic example of this is ―Seven Up.Mohideen. if someone wants to know where a particular office is. Positioning by Culture Symbol This type of positioning strategy consist in identifying something that is very meaningful to people. 6. Asso. Sales Promotion and Brand Management A. Onida‘s green eyed devil also set Onida apart from the competition by positioning it as something that is envied and talked about by neighbours. or as good as the competitors. when the competitor has an established image that has been built up over the years. This positioning strategy can be used to advantage in certain cases. A classic international example is Marlboro cigarette‘ American cowboy. It is more important that they think that you are at least as good as the competition. 7.  E. b) Secondly. and developed the Marlboro Man. This type of positioning tends to have high recall value because of the use of meaningful and relevant symbols. Positioning by Competitor This type of positioning strategy consists in making consumers think that your brand is better than. Positioning with respect to competitors can also be done through comparative advertising. and that competitors are not using.g. HOW WOULD YOU DETERMINE POSITIONING STRATEGY 57  . and then associating the brand with that symbol. Advertising is full of examples of this type of positioning strategy. Other relevant example is diet beers (Kingfisher) and ice beers (recently launched by united Breweries) that positioning themselves with respect to regular beer. Baba Institute of Technology and Sciences ________________________________________________________________________ Sometimes in order to counter the competition. this image can be used as ―bridge‖ to communicate another image. mentioned earlier.K.Advertising. a) First. For example. it would be easier to say it is net to the City Bank building rather than describing the various streets to get there.

Conducting the above four steps provides answers that will help make actual positioning decision. and one or more secondly competitors.Prof. as mentioned in an earlier section on how to measure consumer perceptions. strength. How are their brands perceived and evaluated? To determine how competitor brands are perceived. Once a relevant set of attributes has been chosen. other cola drinks could be considered primary competitors.K. One-way of doing this is to identify which attributes or customer benefits are most important and then identify groups of customers who value similar benefits. an appropriate set of product attributes should first be chosen for the comparison. This is usually done through rating scale questions.Mohideen. Foe example. but also product association such as product uses or product users.Advertising. Baba Institute of Technology and Sciences ________________________________________________________________________ Research to develop a suitable positioning for a brand should try to get information on the following: Who are the competitors? Pepsi for example. How are their brands positioned? The next step is to determine how competitors are positioned with respect to the relevant attributes. apart from taste. a relevant attribute for beer could be the association of a brand with outdoor picnics. Sales Promotion and Brand Management A. and secondary competitors. the next step is to do a survey in which prospects are asked to rate competing brands on each of these attributes. What is the customer‘s image of the various competitors? Which competitors are perceived as similar and which ones as different? Who are the customers for our brand? Analyzing the customers for our brand is the last step before a positioning decision is taken. 58  . In this case. the information should be obtained through secondary sources. might define its competitors as follows:  Other cola drinks  Non diet soft drinks  All soft drinks  Nonalcoholic beverages  All beverages except water In most cases. Even if research is not feasible or justifiable. Asso. Attributes include not only product characteristics and customer benefits. and so on. there will be a primary group of competitors.

brand. if the positioning strategy id to be based on a new product attribute. A positioning strategy that exploits the market opportunity should not be chosen if it promises something that the product cannot deliver.    A positioning strategy. A strong brand acts as a promise. then a repositioning strategy should not be consider. prier to positioning. like an advertising objective. should go beyond product attributes and be based on a richer knowledge of the consumer. these assets comprise brand equity. If an existing positioning is working.Prof. Symbols can have strong associations and can strengthen the positioning of a brand. Sales Promotion and Brand Management A. the use of any existing symbols should be considered. The most important assets of any business are intangible: its company name. certain guidelines should be followed:  An economic analysis should guide the decision. to be effective. Asso.K. Therefore. A positioning strategy. patents. symbols. MEASURING BRAND EQUITY 59  . name awareness.Mohideen.Advertising. to make sure that the product can deliver what it promises. leading faithful customers to pay a premium over competitive products. For example. it is important to conduct blind taste-test. It should be monitored over time to see if any changes are needed. perceived quality. In other wards. trademarks etc. in-home or in-office use tests. building strong brands and establishing brand equity is becoming more and more challenging. should be measurable. a primary source of competitive advantage. positioning should also try to associate the product with people‘s lifestyle. and even feeling related to the product. BRAND EQUITY In today‘s environment. While selecting a positioning strategy. Baba Institute of Technology and Sciences ________________________________________________________________________ While making the positioning decision. a sizeable segment should be interested in the new attribute.

 Can lead to higher product trails and repeat purchasing. Example: BPL brand has been valued at Rs. Monetary value.Prof. including brand name. The difference between total utility and utility of product features is the value of the brand. Brand Equity can provide strategic advantages by:  Use leverage when introducing new products.Mohideen. Asso. Sales Promotion and Brand Management A. Baba Institute of Technology and Sciences ________________________________________________________________________ Most evaluations of brand equity involve utility estimations. 900 Crores 60  .K.Advertising. due to buyer awareness of the brand. intangibles and perceived quality are also used in the brand equity measurement. 600 Crores HLL brand has been valued at Rs.  Brand can be linked to a quality image that buyers want to be associated with  Can lead to greater loyalty from customers. Offer a strong defence against new products and new competitors. Value (utility) of a product features and price level and also measuring the overall utility of a product.

User. Asso. Baba Institute of Technology and Sciences ________________________________________________________________________ BUILDING BLOCKS OF BRAND Brand Equity Long Term Profits Consumer Franchisee Brand Loyalty Relationship Premium Pricing Brand Preference Persuasion Salience Brand Identity Brand Awareness Brand Personality Brand Image (Image of the Product.Mohideen. Competing Brands) Brand Recall Brand Recognition 61  . Sales Promotion and Brand Management A. Maker.K.Advertising.Prof.

Cuba. This situation was common in many parts of the world as well – but 20 years ago.CASE EXAMPLE Background The spirits market in India is still at an evolutionary stage and has only emerged from being a regulated market with very few established local players. Under the impact of the economic and cultural liberalization policies that were put in to effect in India during the early ‗90s. Today Bacardi sells in over 170 countries. a fiery drink used by Caribbean seamen to ward off the cold. Rum was.Prof. He kept the formula a closely guarded as the Bacardi family‘s success story took hold. with brandy claiming some limited share. lighter. Don Facundo Bacardi set up a small tin-roofed distillery in Santiago. wines. where only present on upper and niche markets and all put together were negligible in comparison to browns. Don Facundo‘s new formulation transformed rum in to a smoother. Cuba was then on the road to independence and was aided by a considerable US presence.G. the first step towards becoming a huge international brand. its popularity the world over has made it the No.Advertising. at that time. where it was acclaimed alongside such wonders as A. Until a few years ago. The product was entered in international exhibitions. Sales Promotion and Brand Management A. liquors. away from the traditionally serious brown spirits THE BRAND Brand history In 1962. Baba Institute of Technology and Sciences ________________________________________________________________________ BACARDI . Put together.1 international spirita brand in the world 62  . the spirit industry also saw a gradual shift towards white spirits and lighthearted drinking. Here he began manufacturing new Bacardi rum using a formula he had hit upon after many years of experimentation. Bell‘s telephone.Mohideen.K. which meant that rum and whisky have been the dominant product categories. cognacs. Over the next few years. Those markets have seen developed and white spirits now hold strong category shares. white spirits. His sons dreamt of expanding the brand outside Cuba. Indian consumers have not had anywhere near the kind of choice available in the developed markets of the world. India has traditionally been a brown spirit market. Asso. these factors gave Bacardi rum a foot-hold in the US. rum gained popularity all over Cuba. called Bacardi. milder drink. etc. and Don Facundo began expanding his operations.

Bacardi was positioned to ride on this change. easily the most recognizable member of the family remains the one with no name. It is the Bacardi Bat. Donna Amalia. gaining acceptance.Advertising. Further the absence of international players in the spirits category. spirits shifted in to gradual movement away from the traditional perception.K. By associating with.Changing attitudes to drinking were alreadt apparent. Accomplishing everything it was supposed to do for more than century. honest and upright non drinking hero-this typified society‘s outward attitude to alcohol drinking. seedy-looking characters and drunk villains in hindi movies. Word of Don Facundo‘s bat spread around the world along with his smooth new rum. The bats. The bat mythology helped. Asso. as well as comfortably entrenched local brands. and by accelerating this process of change in a positive manner. philanthropy and public service. local storyteller attested. One of the key elements to be built in to Bacardi‘s brand character was. who was cultured in the arts believed bats represented a blessing of good health. meant that the consumer had never been exposed to the glitzy and slick side of spirits marketing until the 1990‘s came along. in that drinking was gradually coming out into the open. That is the power of mnemonic. But this suggestion of hers was also hard-headed and pragmatic. Illiteracy was common in the 90th century.a trademark. Today Bacardi Bat is a welcome character in more than 170 countries where Bacardi rum is also sold and enjoyed. Legend has it that Don Facundo‘s wife. Drinking was generally associated with the darker side of life. Dingy bars. The 90‘s ushered in the winds of change in the entire social and economic fabric of the country. and for a product to get recognized and sell. fortune and family unity. in stark contrast with the clean. therefore its image as the ‗the icon of new age drinking‘. 63  . brought good fortune and added magical powers to his rum. and like everything else. it needed a memorable graphic logo.Prof. Donna Amalia Lucia Victoria suggested making the Bat the trademark for the new rum.Mohideen. the trademark that appears on the label of every product carrying the Bacardi surname. the bat has elevated its presence to new heights. Sales Promotion and Brand Management A. and especially in urban areas. BACARDI IN THE INDIAN CONTEXT Alcohol had never been comfortably accepted by post-independence Indian society. Baba Institute of Technology and Sciences ________________________________________________________________________ The Bacardi Bat Inspite of 6 generations of the Bacardi family distinguishing itself in business. perhaps because of th colony of fruit bats living in the rafters of the first Bacardi distillery. with deep and unholy secrets. the brand immediately gained the relevance in the minds of the consumer.

It is the main image driver of the umbrella brand Bacardi. energetic and upbeat. Sales Promotion and Brand Management A. taste…). frolic and water. singular outlook. attitudes. strictly speaking is the appreciation through tactile senses(feel. aspirations.liberalization young adults 64  . Selling Strategy for Bacardi Carta Blanca BRAND/ PRODUCT What is the brand/ product to be advertised? A range of rums. under the Bacardi name. This represents an unaffected pursuit of enjoyment through one‘s senses. do we wish to reach? Post.Mohideen. BRAND / POSITION What is the position the brand currently holds in the consumer‟s mind-and why? An international brand of (exotic) alcohol BRAND OBJECTIVE How do we want the brand to be positioned in the consumer‟s mind? As an icon of new age drinking CONCEPTUAL TARGET What „natural‟ groupings of consumers. it is also the Indian consumer‘s introduction to the brand. Vibrant because the character of the brand is passionate. hear.historically better known for white rum and associated with the light-hearted Caribbean spirit of fun. Asso. (In literal terms. Within the Bacardi portfolio.Advertising. bound by a common set of values. Bacardi Carta Blanca‘s core value was defined as vibrant sensuality. Baba Institute of Technology and Sciences ________________________________________________________________________ In India.Prof. Sensuality. Carta Blancas the flagship brand.K. sensuality is the overall sensory experience surrounding Carta Blanca) Vibrant sensuality therefore means ―living life true to your senses‖ in a style that is energetic and colourful (as opposed to languid or passive pleasure).

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

CORE DESIRE
What is the conceptual target‟s most deeply held desire, need, want, hope, that the brand best fulfils? Unshackle themselves

ROLE OF THE PRODUCT
What is the functional/symbolic role of the product category in the lives of the consumer? Functional: Relaxant Social lubricant Gives a high Symbolic : Let your hair down…. Have fun

REASON TO BELIEVE
What is the most compelling rationale to support the role of the product? Less intense in looks, hence eminently adaptable to broader drinking occasions.

BRAND ESSENCE
What is the enduring spirit which anchors the brand-and how should it speak to the deeply held values of the conceptual target? Vibrant sensuality

BRAND ACTIVITIES
TELEVISION ACTIVITY Around the world Bacardi has a long association with a ‗sun-sea-sand‘ imagery which has successfully maintained its brand salience, especially during launch phases. This imagery was also found to lend itself perfectly to the positioning developed for the Indian market. The sun-sea-sand route was researched, and was found to be very well received by consumers. This came through on the concept testing study, as well as on quantitative research parameters. The concept that was tested was ―Get away to be 65 

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ relaxed in a carefree world‖, via a sun-sea-sand execution. (The first concept in the research section above). Quantitative consumer research showed a strong acceptance of this particular concept, the product and its packaging. Communication for the brand was led by television advertising, which used to international, ‗Friends‘ commercial. The various elements in the theme TV commercial (sun, sea, sand, free spirited interaction between the sexes) were in sync with the new attitudes to drinking, and with Bacardi as an ‗icon of new age drinking‘. The commercial represented taking drinking out into the open, far away from the dark atmosphere of illicit pleasures. BELOW THE LINE ACTIVITY This was supported by an extensive below-the-line package for the retail channel as well as on premise outlets ( pubs, bars, restaurants, etc.,). The package developed on the sun-sea-sand theme was intended to maintain high salience levels especially during the crucial launch phase. One critical element of the Bacardi persona was the several promotions that were conducted at pubs and discotheques across the metros in India. The pub-going culture, which is still developing, has got a strong impetus due to Bacardi‘s popularization of the concept. A series of innovative promotion mechanics were designed for these on-premise outlets. The promos served various objectives:  To announce the launch of the brand, and to give the target consumer a feel of its trendy, young and vibrant character.  To generate a sampling of the product- this was a critical role given the fact that while rum was still a new product for the consumer.  To gain substantial incremental volume sales. Of course the promotions also offered excellent opportunities to develop different elements of the Bacardi brand character. They have now been built in to the long standing properties of the brand. Some of the key properties are: BATSTAGE WITH BACARDI The Bacardi core consumer being 18-25 years old and urban, music is an effective medium to use get through to him. The idea was to sponsor live bands to perform on a given night in pubs and disco-theques. This was to be done on a regular basis and branded ― Batstage with Bacardi‖. 66 

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________

THE BRAND TODAY
In the first year of launch, Bacardi attained and surpassed its volume targets. This can be gauged from the fact that the first year‘s volumes exceeded those of its closest competitor, Smirnoff vodka, a brand that has been established in the market for over 4 years. Initial reports indicate that the volume and its growth are being sustained in the second year of operations. Already, Bacardi Carta Blanca is reported to have garnered over 10 percent of the international spirits market in India.

END OF MODULE IV

67 

Explain stages of copy production 2.V COPYWRITING Concept Question: 1. Explain the creative process of copywriting 3.Advertising.K. Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE. Write three components of attitude 4. Principles of Copy writing Descriptive Question: 1. Asso.Prof.Mohideen. Explain the Persuasion Matrix 68  . Sales Promotion and Brand Management A.

K. Accompanying visual creative tactics for TV commercial for the restaurant could include—extreme close-ups of the food. etc. It was time to advertise. The ad soon produced more sales than any other auto ad in history. Let us now look at the specific role of copywriting in the advertising creative process. appeal. on the other hand. Asso. readers of the ―Saturday Evening Post‖ were startled to see a twopage long black and white ad. we are concerned with copy. It involves decisions such as brand positioning. Creative Tactics. determine how the message is going to be conveyed. food made-on-the-spot to your order that provides a change from the usual fast-food meals. with no pictures and all words! ―When Ford speaks. close-ups of eaters to show enjoyment of food. Henry Ford had spent five years and thousand dollars perfecting his new Model T car. with a very little copy or words. There are two aspects to advertising creativity—“Creativity Strategy” and “Creative Tactics”. But what sort of ad should he run? Ads at that time were mostly art or photos. and described how Model T was invented. It detailed the financial condition of the Ford Company. Example: Macfast serves delicious wholesome. overall planning of an activity. Verbal Creative Tactics involve decisions such as type of copy.The fffrresh fast –food alternative‖.Prof. The ad contained more words or copy (1200 words to be exact) than any ad of the day. Baba Institute of Technology and Sciences ________________________________________________________________________ INTRODUCTION TO COPYWRITING By 1910. The above example illustrates the power and potential of copy to stimulate action. boldly declared the headline. image. Both ―Strategy‖ and ―Tactics‖ are terms borrowed from military terminology. Creative Strategy specifies what the advertising is to convey. In this section. While Strategy refers to the broad. It is the starting point for Creative Tactics. which will examine in detail later.Advertising. 10 years later. listed its 28 factories assembly plants and branches. or Verbal Creative Tactics. But Ford believed that art alone couldn‘t sell his model T. 69  . It had to described in detail. Ford was proven right in no time at all. And it gave Henry Ford his first push toward beginning the most profitable manufacturing company in the world. It includes both verbal and visual development of the message. showing freshness of ingredients. Sales Promotion and Brand Management A.Mohideen. personality and attributes. the world listens‖. Example: ―Macfast --. or the above slogan written in an unusual type style. Tactics refers to the detailed steps taken to execute that plan. A few weeks later.

you‘re going to lose him. The headline is usually the major attention-gaining device. good copy must fulfill some basic objectives. PRINCIPLES OF COPYWRITING       Be Concise Be Simple Be Specific Be Personal Make it Believable Be Clear 70  . about his problems and needs. The message: Wearing Grasim Suitings makes you a star. But if you can‘t keep his interest. The curiosity of the reader is aroused and he is tempted to read further. choice of words.Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ Let us now refer back to the Model T. to find the answer. in order to satisfy a need. You ‗ve now grabbed your customer‘s attention. There are several devices which could be used to achieve this attention-gaining function. If it is inviting. He‘s looking at the ad. We shall examine these in detail later. in later section. Various tactics may be used for gaining attention through headlines. it will hold the prospect. As a first step. the Grasim Suitings caption: “How does Robert De Niro turn on the Heat?” There is a pun on the word ―heat‖. enthusiastic and encourages participation. It can halt the progress of readers through newspaper or a magazine. about him. One effective type of headline is to ask question and get prospects to read on. and combinations of letters to mention a few techniques.Prof. Simply having a great idea is not enough it needs to be presented properly and have stopping power. Again we will discuss these in greater detail. Asso.Advertising. you will need to talk to him. to understand the objectives of copy. As a copywriter. This example illustrated the ultimate purpose of copy—to persuade or remind people to take some action. it will be shunned like a rude salesman! Copy can hold interest through use of subheads. variety in sentence construction and length. Sales Promotion and Brand Management A. copy must gain the prospect‘s attention. which refers to the movie starring Robert De Niro. For example. humour (provided it is relevant). If not. However. invigorating body copy.K. before going on to induce action. Interesting copy is like an effective salesman.

‖ Consumer reaction is likely to be: ―What will all those features do for me?‖ Having informed prospects about the product‘s features and established credibility. The important point to remember is that the benefit must be matched with a real or perceived need of the consumer. Copy must present the facts in a manner that consumers can believe. Lets say an instant remedy has been discovered to cure the common cold. because it states the products benefits and backs them with proof. This often poses a challenge for copywriters. and safe because its plug is shielded. the copy would have to convey the message in an indirect. so buy it. A simple example will illustrate this. In this case. Asso. This is also known as a ―reason-why‖ or ―rational‖ appeal. Finally.Advertising. and would be reluctant to accept a message about instant cure. ―a product has this and this.K.motivate the prospect to take some action. Baba Institute of Technology and Sciences ________________________________________________________________________  Make it intersrting  Make it Persuasive  Keep a surprise in the Copy  Follow the Headline and Illustration.Mohideen. interest. credibility and desire copy must achieve its ultimate purpose. yet credible manner.‖ Copy must also strive to live up to this motto. The truth as perceived by the consumer (or credibility0 is more important than the literal truth. having taken the consumer through the initial stages of attention. attractive because it comes in three colours. and show him how and why he will be better off with the product than without it. Example ―The Apco appliance is easy to use because it has 14 moving parts. McCann Erickson‘s motto is ―Advertising is the truth well told.Prof. in order to heighten desire. It should also be presented in such a way that consumers believe it and understand its application to their own situation.‖ The above example is likely to create desire for the product. It is not sufficient for a copy to say. The renowned advertising agency. Sales Promotion and Brand Management A. The copy must promise a benefit to the consumer. This is because most consumers have deep-rooted skepticisms regarding cold remedies. While this may be absolutely true it could be probably not be communicated directly in the advertising. the next task of copy is therefore to create a desire for the product. 71  .

Sales Promotion and Brand Management A. memorable slogans and so on. e. Building a little drama into the product. immediate pick up or delivery. This is called ―big Idea‖ and is believed by most advertising professional to be the hallmark of a great campaign. ― Visit our showroom today‖.The action may be directly requested as above. Stretching the products use beyond a believable level.K. the copywriter must first come up with a basic concept.g.Prof.     Projecting cultural values relevant to the products use.Advertising. Looking at the product in a completely different light and asking questions beyond its basic use. or future. September 14‖ . around which to build the campaign. or indirectly implied in the copy (asking the prospect to associate a manufacturer‘s product with high-quality). special bonuses for buying now.Mohideen. STAGES IN COPY PRODUCTION: GAIN ATTENTION HOLD INTEREST CREDIBILITY CREATE DESIRE (Product benefits) MOTIVATE ACTION (Use tools of advertising) BIG IDEA Having acquired background information about the product. The proposed action may be immediate. Baba Institute of Technology and Sciences ________________________________________________________________________ The copy must spell out precisely what the prospect is expected to do.convenient and ample availability.g. The big Idea can be developed through certain techniques. simple payment terms. 72  . Asso.‖ Come to our sale. e. The important to remember is that consumers are essentially lazy and have to be ―eased‖ into a sale. Common ― action aids‖ used by copywriters are.

Baba Institute of Technology and Sciences ________________________________________________________________________ To be effective. the big idea should be       Original Eg : Raymond – The Complete man Relevant Have a long-term relationship with the brand eg Pulsar – Definitely Male. STRATIVITY MODEL – LOWE AD AGENCY COPY THINKING COPY STRUCTURE COPY FORMAT COPY STYLE GOOD COPY WRITING END OF MODULE V 73  . Sales Promotion and Brand Management A.Prof. Have universal appeal. Lend itself to exclusive across various media.K.Advertising. Asso.Mohideen. Share an exclusive belonging with the brand.

Media Brief 4. List out various media vehicles available in India 9. Sales Promotion and Brand Management A.K. Media Vehicles in rural communication / urban communication 12. Urban and Rural Media 3. Define Media Related terminology – GRP. TRP. Name the main media organizations in India 16.VI MEDIA Concept Questions 1. Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE. Media Models 74  . Media is becoming more important in the advertising strategy. Measurement / Media Models/ Media Buying/ Implementation/ Scheduling. How is Media Research done in India? 4. What is media planning 6. What are the main elements of Media Plan? What is the process? 8. 2. Highlight the role of Media Research with examples 5. Explain the Merits and Demerits of Different Media (any one) in India. Discuss the non-conventional media mix in India? 11. Frequency & Impact. Name one Media channel for each class of Media 17.Mohideen. Do you think Internet as a medium has failed in India? 7. List out components of Media Mix 5. Comment 10. What are the main issues in deciding media budget? 9. Media Buying 18. Reach. List any three methods of arriving at Media Budget 15. How do you foresee Internet as the future medium in India? 6. Descriptive Question 1. What is pre and post media mix 8. Explain Media reach 10.Advertising. Sources of Media Research in India 14. List out the Do‘s and Don‘ts of media planning 13. Asso. 12. Distinguish Print Media v/s Electronic Media 11. Why is media planning important 7. Explain the various media vehicles with emphasis on Merits and demerits (List out at least two) 3.Prof. Explain Media 2. Media Scheduling 19.

with 10 million television households. media planning has gained dominance in India because of the following factors:  Increasing no. They want to get maximum mileage for their campaigns within limited advertising budgets.Advertising. Reaching these specialized audiences requires careful selection of the best combination of media.  Growing no.advertisers today are becoming more cost conscious and media savvy. This is known as audience ―fragmentation‖. until recently.There are 16 different magazines for women in India in English language!!!  Growing importance of media research: .830 English or 39. of media option: . e. Sales Promotion and Brand Management A. with the cumulative circulation exceeding 12 crores. a number of independent research organizations have sprung up over the last few years. There are 35 million cable and satellite households in the country.media research has been in its infancy in India.Prof. Have specialized media options. Media research is now being carried out by different agencies using various tools. 75  . as the option to select in media have grown manifold. Big numbers mean tough time for today‘s media planners. its print industry ranks 5 th globally. Baba Institute of Technology and Sciences ________________________________________________________________________ THE GREAT MEDIA EXPLOSION You can read the news today from any of the 6.Mohideen. log on and surf the net for the latest. catch it on the tube –22 terrestrial and over 100 satellite channels.K. Of people watching a particular TV program.a media planner has to be skilled professional with good analytical and decision making skills. Asso.: . Numbers bear this out. a media planner has to select innovative media to reduce cost. the no. or get the days headlines on your mobile. Hence. India boasts the third largest television market in the world.  Audience “fragmentation”: -as a result of increasing no. Of media –literate clients: . with 8 devoted to news. A bouquet of private satellite channels has segmented the market in terms of veiwership and advertising. or reading a particular publication has become considerably smaller.825 vernacular newspapers published in India. However.g.

Advertising.K. Baba Institute of Technology and Sciences ________________________________________________________________________ MEDIA DEPARTMENT IN AN AD-AGENCY MEDIA PLANNING MEDIA BUYING VARIOUS MEDIA VEHICLES IN INDIA Outdoor Advertising Media        Posters Hoardings Travel Displays Bus Shelter Local Trains Sky Writing Sandwich man Indoor Advertising (Media Conventional)      Print Radio Television Movie Theatre Cable TV Direct Advertising Media      Envelop Enclosures Booklets and Catalogue Sales Letter Gift Novelties Package Inserts Emerging Media (Innovative Media)       76  Internet Atm‘s STD Booth‘s (Zip Phone) Short Messaging Service (Sms) Wap Enabled Device Computer Kiosks Rural Advertising (Unconventional)      Folk Theatre Puppetry Wall Paintings Videos On Wheel Post Card . Asso. Sales Promotion and Brand Management A.Mohideen.Prof.

Magazines higher quality than prestige factor. sound. the ad-agency must see that the client‘s money is spent in the most useful and effective manner. A product like a perfume needs a distinct image and would advertise in a women‘s magazine. 2. and e-class (RK swamy bbdo is their ad-agency. Interaction of the media with the product: .K.. Creative Disadvantages less visual impact. The advertising agency takes the following issues into consideration when arriving at the media budget. Television limited time commercial.credibility. Eg:. 77  . Baba Institute of Technology and Sciences ________________________________________________________________________ MEDIA COMPARISONS (EFFECTIVE MEDIA MIX) Medium Newspapers Creative Advantages impact of black against White. size not as large as newspaper.Mohideen. Fleeting message.mercedes benz India ltd (MBIL) used only print medium ( magazines and newspapers) to highlight its safety features in their models like c-class. Sales Promotion and Brand Management A. The marketing mix or 4p‘s can effect the media decisions very strongly. A ―premium priced‖ product will require the use of prestigious or class media to support its market image. Asso. Many a times even the client (company) fixes the media budget and accordingly the agent and the client sit together and finalize the deal. s-class.price is also a key factor to be considered in choosing the topic of media. Radio No visual excitement. clutter. 1.Prof.the very nature of the product may suggest one media over the other. MAIN ISSUES IN DECIDING THE MEDIA BUDGETS As 85% of the client‘s money go into media planning.Advertising. Distracted message. graphic & color possibilities combination of sight. Can personalize a message. & Movement. “What you see is What you get”. Interaction of media with the price: . opportunity to use sound.

Shaw Wallace launched ―antiquity rare premium whisky‖ to create a new segment in Indian whisky market----that of a super premium whisky. they compared airtime along with vada pav and cutting chai. Sales Promotion and Brand Management A. Thus. media decisions have to be taken carefully by even taking into preview in which stage of PLC the brand is. It distribute miniature bottle samples and also sponsored the amateur golf tournament in india.the product is the channel of distribution also important in media planning. 3.O & M designed ads for the orange mobile only for the Mumbai market. It used ―below the line‖ media and banked on direct marketing campaign.Prof. The use of sales promotion device like coupon may use the of newspaper as the medium to distribute the coupons. If the product is available in the local areas. personally selling and sales promotion techniques can also affect the media plan. Baba Institute of Technology and Sciences ________________________________________________________________________ Eg: .Advertising. Asso.Mohideen.the effort devoted to advertising. which are famous in Mumbai in their outdoor media. Hence. Interaction of media with the place decision: . localized media should be used. Eg: .K. Eg: . Interaction of media with promotion mix: . It was targeted to the upscale premium whisky consumers. 78  . Cox & kings prefer print ads in newspaper like to to generate leads by giving sales promotion schemes. 4.holiday companies like Thomas cook.

Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ MEDIA PLANNING PROCESS Advertising Objectives & Strategy Brand Awareness Brand Persuasion Budget Advertising profile & Media habits Media Objective Reach Advertising Exposure Frequency Media TV. Outdoor Readership profile Viewership profile Media Strategy Media Selection Media Scheduling Media Operations Negotiation Buying Placement & Monitoring WHAT IS REACH  The total number of different persons exposed to an ad at once is its reach. Radio. Sales Promotion and Brand Management A.Prof.K. Asso. Magazines. Newspapers. 79  .  The number of different persons exposed to an ad at least once among its defined ―target audience‖ is its ―effective reach‖  The total number of different persons reached at least once for an entire media schedule is called its cumulative reach  Reach is always meant to be unduplicated and for a specified period of time.Advertising.

REACH X FREQUENCY = TOTAL AD EXPOSURE THE FUNNEL MARKETING DECISIONS ADVERTISING DECISIONS FUNNEL APPROACH TO MEDIA DECISION MAKING MEDIA DECISIONS THE MEDIA PLAN IS A PART OF ADVERTISING PLAN. WHICH IS A PART OF OVERALL MARKETING PLAN… 80  . Asso.Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ WHAT IS FREQUENCY  The number of times a person is exposed to an ad is its Frequency.Advertising. Sales Promotion and Brand Management A.  The average number of times a person is exposed to the entire media schedule is its average frequency.Prof.  Like reach. frequency is also for a specified period of time.K.  The minimum number of times (threshold) an ad is to be exposed to each reached person among the defined target audience is its effective frequency.

Baba Institute of Technology and Sciences ________________________________________________________________________ MEDIA OBJECTIVES Before the media strategy is formulated. it is an indication of the total ―weight‖ of the media buy.Prof. or in radio/tv program.g. the advertising planner and the media planner will ―set the objectives‖.: Programme ‗X‘ has a reach of 60 and an average frequency of 5. one day) reach is expressed in percentage terms. An example of a media goal is as follows: ―Use media that will provide broad national coverage‖ these are some essential terms to set the media objectives  Reach: . and life of an issue for point (say newspaper. Time period for broadcast media in 4 weeks.Also referred to as OTS (opportunity to see). Frequency is expressed as an average of F= TOTAL NO. This is known as the ―GRP‘s‖.Advertising.Mohideen. Specific. The GRP‘s for the programme are 60*5 = 300 MEDIA PROCESS MEDIA STRATEGY MEDIA PLANNING MEDIA BUYING MEDIA SCHEDULING 81  . E. operational are formulated.K. during the given time period.It refers to the total number of people or households exposed to an advertising message in an issue of a publication. It is calculated by multiplying reach and frequency. once during a given period of time. refers to number of times a person or household is exposed to the same advertising message in program or an issue.  Frequency: . Asso. Sales Promotion and Brand Management A. OF EXPOSURES REACH GROSS RATING POINTS (GRP‘S) Sometimes the media planner may want to set his goal in terms of the best possible combination of reach and frequency.

Baba Institute of Technology and Sciences ________________________________________________________________________ THE MEDIA STRATEGY Media Strategy refers to a specific course of action with the media.g.Mohideen. MEDIA BUYING Media planning also involves allocating media budgets to media types. E. Asso.Prof. Budgets may be allocated based on the importance of media types and/or geographic regions. Contract launched a sales promotion scheme with the help of Star Network for Temptations.e. to match the media with the target group. vehicles and media units. The second step in media planning process will be the selection of the ―Media Mix‖ or the most optimal combination of media. This is known as ―weighting‖. In this process it was a WIN-WIN situation to both CADBURY and STAR because both of them got benefited. The better the match of the target with the media. It is important for the media planner to distinguish between media types.K. It describes how the media planner will achieve the stated media objectives.Advertising. Sales Promotion and Brand Management A. Contract Ad Agency used only Star Network for planning the media for the launch of Cadbury‘s new chocolate ―TEMPTATIONS‖. the less will be the money wasted on delivering the messages to the consumers for whom the product was intended to. There are 4 strategic decisions to be taken by the media planner:     Which media will be used? How often each will be used? How much of each will be used? When will they be used? The media planner has to take the following factors when developing a media strategy:    Scope of the target audience Consumer purchase patterns Mechanical considerations THE MEDIA PLANNING The first step in media planning i. Geographic allocation usually marketing objectives 82  .

A media schedule is usually prepared for the entire campaign period. The following factors are taken into consideration in preparing a media schedule: 83  . buying. its annual billings are 1500 crore. Mindshare entered the Indian market in 1996. It entered into India in 1998. O&M and FCB ULKA. which includes media strategy. Carat offers the Indian clients media consultancy. some agencies are creating their own specialized media buying houses. Carat Media: This is Europe‘s leading media specialist. Mudra‘s AOR is called OPTIMUM MEDIA SOLUTIONS. Today.Advertising. JWT‘s AOR is called FULCRUM.K.Prof. MEDIA SCHEDULING This is the final step in the media process (media plan). Clarion. Sales Promotion and Brand Management A. which is usually for a period of 6 months or 1 year. because these days satellite channels and print media are offering heavy discounts on bulk buying. 60 lakhs NORTH 10% Rs. 20 lakhs Media buying may be defined as the process of executing a schedule of desired media weights for brands at a lowest possible cost. Contract. 30 lakhs WEST 30% Rs. HLL purchased media worth 600 crore from Mindshare. and RK Swamy BBDO. The media buying process can be divided into 2 broad stages:   Deciding what to buy Setting out to buy at the most competitive rates. research planning. It purchases media for agencies like Mudra. It is surprising to know that Mindshare got its first client no the day it opened its office. Such agencies are termed ―AOR‖ (Agencies Of Record).Mohideen. It refers to the timing of the media insertions. SPECIALIZED MEDIA SERVICES With clients becoming particular about media buying rates. Last years billing were 90 crore. Two specialist independent networks are discussed below: Mind share: This is an independent network of WPP group. it purchase media for its group agencies JWT. 50 lakhs EAST 15% Rs. and media selection as a total package of services. Asso. the larges agency conglomerate in the world. Lintas call it INITIATIVE MEDIA. Baba Institute of Technology and Sciences ________________________________________________________________________ REGION SALES POTENTIAL BUDGET GOAL (based on sales potential) SOUTH 25% Rs. Agencies are now turning their attention towards independent media buying houses.

 Flighting: this is an intermittent pattern with gaps where no advertising is done. MEDIA STRATEGY TODAY 84  . Products with short repurchase cycle that are purchased frequently are the examples.g.Advertising. E.K. Pepsi etc. Seasonal items follow this pattern of advertising. CRY (Child Relief and You) cards and Monte Carlo woolen wears. E. HLL. Sales Promotion and Brand Management A. Media planners play a very crucial role in media budget decisions.g. E. Coca-Cola. Asso. which gets heavy during certain periods.Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________     Seasonal patterns of the products (Monte Carlo advertises more in winters) Repurchase cycles (FMCG‘s require more advertising) Product life cycle (a product in introductory stage requires more advertising) Competitor‘s media schedule (Coca-Cola and Pepsi) DIFFERENT PATTERNS OF MEDIA SCHEDULING  Continuous Advertising: this refers to advertising without breaks. Rasna (Rozana and Utsav)  Blinkering: this is strong advertising during periods with short gaps in between.g.Prof. This is a case for seasonal products.g.  Pulsing: this is continuous advertising. where funding is limited and the products with a long repurchase cycle. Eagle Diaries start advertising from September and stops advertising in October and again go for strong advertising (bursts) in November and December Thus the media planning is very complicated and involves a lot of expertise. E.

Mohideen.Prof. Asso. Baba Institute of Technology and Sciences ________________________________________________________________________ Analysis driven Targeting Placement Media Choice Weight Level Scheduling MEDIA STRATEGY TOMORROW Brand Experience Driven Targeting Placement Media Choice Narrowed by attitude.Advertising. widened by demographic Unconfined by media Weight Level Scheduling Leading to action not just awareness 85  . Sales Promotion and Brand Management A.K.

Asso. Baba Institute of Technology and Sciences ________________________________________________________________________ KEY MEDIA SELECTION DECISIONS Media Class Media Vehicle Media Size/format Media Schedule TV Channels. Kiosk OUTDOOR 40` x 40`. Sales Promotion and Brand Management A.Prof. 60` x 60` END OF MODULE VI 86  . duration RADIO Channel.Mohideen. Programmes Billboards. 100cc.Advertising. single page B/W color Date day. programs Newspapers. 30 secs Date.K. time slot Date day position PRESS Full page half page. positing. Magazines 60 secs. 30 secs Location. time slot 60 secs. double spread. day.

Role of PR in corporate image 3.Prof. Importance 2.K. Sales Promotion and Brand Management A.VII PUBLIC RELATIONS Concept Question 1.Advertising. Asso. Corporate advertising 87  . Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE. Public Relations / Role.Mohideen.

Baba Institute of Technology and Sciences ________________________________________________________________________ WHAT IS PUBLIC RELATION? All living beings have relationships of one kind or another and that includes companies. and fail to recognize the very simple purpose of PR.K. People who are new entrants to the world of PR are often confused by its breadth. broadly mean relations with the public and involves a whole range of activities. The word Public refers to an institution‘s or a company‘s employees and customers who are directly affected by its policies and actions. Sales Promotion and Brand Management A. plant tours. institutions as well as people. informing people. PR is often referred to as a new or young profession or business. As the late founder PR – Edward L. Institute of Public Relations – UK (IPR) ―Public Relations practice is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics‖. bad or indifferent. Communications is a means by which we give as well as receive information. PR includes publicity (Stories in the mass media with significant news. value). we need to communicate and interact. Bernays says that ―main elements of PR practically as old as society. 88  . which is to create understanding. Asso. open houses. news conferences. company sponsored events. In PR language the plural ―publics‖ is used to refer all the people a company has to interact with at some stage or other.Prof. donations and other special events.Advertising. persuading people or integrating with people‖. This supposed newness is sometimes given as excuse for misunderstandings about PR. Relationships can be good. Most definitions are descriptions of the functions pf PR rather than true definitions. Public Relations is the most effective communication tool that companies and people have to build and maintain relationships. To build relations. and may change from time to time. Public Relations is communication on behalf of an organization to a number of publics ranging from customers to employees plus the media. Public Relations as the term suggest.Mohideen. DEFINITIONS OF PUBLIC RELATIONS It is difficult to define PR.

shareholders. trade union officials. Baba Institute of Technology and Sciences ________________________________________________________________________ PR IS ABOUT      PR IS      Two way communication Giving information Creating understanding Building and maintaining relationships Gathering goodwill. the PR person is required to undertake major functions. whether we are consumers of products. organization. form the internal publics of an organization.Advertising.Mohideen. employees. Following are some of the important PR functions and activities: 1. The ultimate success of the organization depends largely on the success of its internal communication. Sales Promotion and Brand Management A. Reputation Perception Credibility Confidence Harmony ROLE OF PUBLIC RELATIONS PR professionals can do anything from coordinating a company sponsored golf tournament to giving newspaper reporters a tour of a new factory. Employee communication is a vital part of any PR programme. 89  . COMMUNICATING WITH PR „PUBLICS‟ We are all a ‗public‘ of one kind or another. Asso.Prof. their families. trade or professionals association. PR reaches its wide range of audiences by using any number of PR techniques to convey its messages.K. This ensures smooth flow of information from the management to its employees. Whether it be through a private PR agency or an in house PR department. ‗Publics‘ in the PR language are classified into internal and external publics. Internal Communication: Full and part time employees of an organization. or members and customers of a company. trainees.

and potential investors want to know if the company has a promising future. suppliers and shareholders. Media Relations is about the management of the media channels available to any company. Asso. environmental groups and other people affected by the organization‘s policies and actions are the external publics of an organization. Sales Promotion and Brand Management A. financial analysts and government regulators. investors. Good press relations assure that a press release will be carried by the leading dailies. To make most effective use of various media. Full and truthful information both way results in:      Harmony in the work place Trust and confidence between the employer and employee Healthy and safe working conditions Work satisfaction. COMMUNICATING WITH THE MEDIA The PR professional is required to make cordial relations with the media. fair salary and satisfaction for each employee Pride in the organization External Communication: Governments. Current investors want to know whether to keep the company‘s stocks and bonds they own. the PR person has to keep 3 key factors in mind:  The message to be conveyed  The target audience  The media through which the message will reach the target audience 90  .K.Mohideen. PR people operating here must have extensive knowledge of corporate finances. The main function of PR while working with the media is giving them what they need. team spirit and coordination.Prof. PR should never be a barrier between the media and the organization. b) Investors: Investor relations involve communicating with the current and potential investors. customers. financial markets and government regulations. PR job is to support a company‘s efforts to sell products to the government agencies and make sure that the government laws and regulations do not unfairly obstruct a company‘s business and progress. distributors. 2. in the correct form and at the right time.Advertising. PR‘s involvement in this area includes conducting surveys and other research building coalitions and using media to promote their message. Lets look at each of theses closely: a) Governments: PR is a major in the relations between the industry and the government. the press is the most important communication media. Baba Institute of Technology and Sciences ________________________________________________________________________ improving employee performance. For people engaged in business and industry.

Sales Promotion and Brand Management A. Corporate identities should not be changed frequently. it may have disastrous results. Corporate identity should take into consideration the whole personality of the company and not just an important aspect. Before a change is thought about. A crisis can blow up at any time. The success of a corporate identity programme involves detailed research to define the organization‘s present image. The general public Investors and financial analysts Competitors and suppliers Government and pressure groups CRISIS COMMUNICATION Crisis management is a key PR function. Asso. ii.K. CORPORATE COMMUNICATIONS The term ‗Corporate Communications‘ covers all communication activities which an organization undertakes as a corporate entity: everything that involves communication with staff or which reflects the organization as a whole.Prof. extensive research is essential. iv. a career or a company can be ruined.Advertising. The key to good crisis management is information. Corporate communication is aimed at: i. This has become an important part of PR as it specializes in dealing with negative public opinion when the company is in trouble. Planning for a crisis involves planning for a possible crisis in the first place and quickly providing clear information and when a crisis hits. and unless it is handled calmly and effectively. Baba Institute of Technology and Sciences ________________________________________________________________________ 3.Mohideen. Principles of Crisis PR:      Be prepared Provide background information Manage information flow Agree to a commonplace of action Be authoritative 91  . Each company has a personality of its own. iii.

Prof. and other communication vehicles to enhance reputation and create ―compelling interest and purchase intent‖ amongst key stakeholders for a brand. and build relationships between consumers and companies and brands. Sales Promotion and Brand Management A. Brand PR is a very old practice in the industry. The principal functions of MPR are the communication of credible information the sponsorship of relevant events and the support causes that benefit society.Mohideen.K. Brand PR can be defined in the following manner: BRAND MANAGEMANT+ PUBLIC RELATIONS= BRAND PR Brand PR emerges from the combination of two different terms ‗Brand‘ and ‗PR‘. execution and evaluation of programmes that encourages purchase and consumer satisfaction through credible communication of information and impression that identify companies. Before defining the term BRAND PR lets look at its each of the two words individually: BRAND = PRODUCT + IMAGES PR = IMAGE OF THE BRAND + EFFECTIVE COMMUNICATION The meanings being clear now we can say that Brand PR is about promoting a brand and building its image in the market.Advertising. Seen as a relatively new concept in the market today. PR is used in marketing specifically:  To build and maintain product brand image or awareness  Repositioning the brand in a different slot  Overcoming negative perceptions It is a cost – effective targeted communication process that leverages news media. The purpose of MPR is to gain awareness. ii. Asso. Marketing Public Relations (MPR): Marketing Public Relations is the use of public relations strategies and techniques to achieve marketing objectives. facilitate communication. Following are three of these specialized areas: i. wants. Brand PR: Brand PR as the name suggests is about building brand reputation through PR. 92  . concerns and interest of consumers. Baba Institute of Technology and Sciences ________________________________________________________________________ SPECIALIST PR Apart from its traditional areas of operations PR is also used in innumerable specialized areas. The main aim of Brand PR is to bring about credibility to the company and its product. their products with needs. Marketing public relations is the process of planning. stimulate sales.

Corporate advertising is a special type of advertising that is used is by business organizations to create and maintain positive attitudes toward their companies. governments and employees. rather than to its sales. That one reason why online PR has tremendous growth potential in the market. culture. which obviously helps to sell a product or a service. Asso. Corporate advertising is closely related to public information. CORPORATE ADVERTISING Corporate advertising has been around for decades perhaps as long as product advertising. Corporate advertising is also undertaken in order to project an organization‘s personality. public opinion. These journals contain complete information about the product. Sales Promotion and Brand Management A.K. When an organization wants to influence consumer attitudes. 93  . So it comes under the function of Public Relations. It has proved to be a widely accepted form of Online PR. Blogs are nothing but online journals. publics and overall corporate health. corporate advertising sells an idea or an organization itself. It also focuses on shareholders and potential investors. A very popular way of online PR is through ‘Blogs’. Baba Institute of Technology and Sciences ________________________________________________________________________ iii.Mohideen.Advertising. Corporate advertising promotes the company rather than its products or services because it is designed to show a favorable picture of a firm‘s products. Unlike product advertising. it uses corporate advertising. or other important publics such as suppliers. and values to the outside world. thus ensuring financial security and independence. PR is also keeping its pace. But it is not discussed very often. stockholders. Goals of Corporate Advertising: Corporate advertising has traditionally served three goals: a) Image Building: This traditional role is the most important one and is designed to build consumer awareness and goodwill. b) Financial Relations: It is aimed at informing and building confidence in the financial sector. These are sent across by various promoters to the target audiences for promotion. It is aimed at general audience to present the positive qualities of a company.Prof. Online PR: With the technology advancement at its peak today.

Today however corporate advertising has a mush broader role: a) To improve name awareness b) To proclaim the organization‘s views on an issue of importance c) To publicize positive news d) Ti add staff requirements e) To give information about the organization WHY CORPORATE ADVERTISING Big industries companies and organizations have used corporate advertising to make a positive impression on customers and investors for a long time. Sales Promotion and Brand Management A. Baba Institute of Technology and Sciences ________________________________________________________________________ c) Advocacy: This explains and promotes a company‘s viewpoints and position and a controversial issue. People these days are more conscious than before. Being aware of the company‘s name can make them decide faster and choose better. Corporate advertising can be important in building consumer confidence for marketing big and expensive goods like cars.K. Consumers often cannot see much difference between products. electrical and electronic appliances. The opinion that people have of a company determines to a large extent its ability to attract employees and executives of high caliber.Prof. such as take over bids. when they have to choose form a wide range. or any issue that affects the company in anyway. This depends on:  The needs of a particular situation  The audience or the public to be addressed  The message to be communicated 94  . It can improve the morale of a company‘s employees. In certain situations.Mohideen. Corporate advertising gives the products an edge. Asso. it can make good impression on the investment community.Advertising. TYPES OF CORPORATE ADVERTISING When an organization wants to influence publics un the marlet place it uses different types of corporate advertising. Many have questioned the necessity of corporate advertising as in how important is knowing the name of the company manufacturing a certain product for the consumers. Corporate advertising is a highly useful marketing tool.

Public Service Advertising END OF MODULE VII 95  .Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ Different types of corporate advertising include: 1. Sales Promotion and Brand Management A. Public Relations Advertising 4. Corporate Identity Advertising 2. Institutional Advertising 3.Advertising.K. Issue Advertising 5. Asso.Prof.

K. Sales Promotion method (any 1) 3. Sales Promotion and Brand Management A.Advertising.VIII SALES PROMOTIONS Concept Questions: 1. Give a tool of sales promotion and explain which promotion tool will be used. What is the role of sales promotion? 2. 96  .Mohideen. Asso.Prof. Develop a sales promotion strategy for a particular product. Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE. Define Sales Promotion 2. Explain the basic tools and techniques of sales promotion 3. Descriptive Questions: 1.

Sales Promotion and Brand Management A. marketers are beginning to rely more and more on short term tactics to win the battle for consumer‘s minds and wallets. A formal and comprehensive definition of Sales Promotions is one given by the American Marketing Association. Clearly.Mohideen.Prof.K. Baba Institute of Technology and Sciences ________________________________________________________________________ INTRODUCTION TO SALES PROMOTION Sales Promotions is one of the important elements of the marketing promotion mix or the integrated marketing communication.Advertising. that stimulate consumer purchasing and dealer effectiveness”. The difference is that sales promotions have specific and sole purpose of directly trying to generate quick sales. Sales Promotions and advertising are both part of the marketing communication mix. sales promotions are a marketing activity or tool used for the purpose of generating sales. direct marketing and public relations. Asso. In this age of intense competition. where the bottom line is quick sales. Sales Promotion Consumer Promotion Pull Effect Trade Promotion Push Effect Consumer Franchise Building Type Monetary Incentive Type Sales target incentives Trade Advertising Support Allowances for Merchandizing Other incentives Contest Prizes Premiums Tie-ins Free Sampling Loyalty Programs Discounts Price Packs Coupons Other Schemes 97  . Short term tactics to accelerate sales come under the category of sales promotions.namely that sales promotions consists of “those marketing activities other than the personal selling. by targeting either the final consumer or the trade. advertising.

we defined sales promotion as ―those marketing activities other than selling. 2.K. 3. most people are hesitant to take risks. Baba Institute of Technology and Sciences ________________________________________________________________________ METHODS OF SALES PROMOTIONS There are four methods involved in sales promotions SP METHODS Consumer Sales Promotions Trade Sales Promotions Business to Business Promotions Sales Persons Promotions 1. that stimulate consumer purchasing and dealer effectiveness‖. b) Encourage brand loyalty: It is not enough to persuade consumers to try your product. 4. Consumer sales promotions Trade sales promotions Business to business promotions Sales persons promotions But before dwelling any further into the nuances of the chapter let us define the methods of sales promotions: CONSUMER SALES PROMOTIONS (CSP) In the previous section.Mohideen. Sales promotion directed at the consumer offers a reason for trying the new offering. Sales Promotion and Brand Management A.Advertising. Before looking at the tools and techniques of (CSP) let us look at some of its specific goals: a) Encourage trial: Most new products fail because too few people try the product or because trial does not lead to repeat purchase. These activities rely on what is known as a ―pull strategy‖. I this section we are going to discuss promotional activities aimed at the final consumer.Prof. advertising and publicity.that is they depend on the consumer to literally pull the product through the distribution channels. As we 98  . The real challenge lies in getting them to stay with your brand. Asso. Especially when the concept is new.

Samples may be distributed door-to-door. The disadvantage with this technique is 99  . Coupons can help a new product to be launched.Mohideen. after the product is returned. or anywhere where your audience is likely to be. It is a medium by which the manufacturer offers a consumer a price deal. encourage multiple purchases. or at a very low cost. in order to encourage trial. for a specific time period. the coupon is used by the retailer and the wholesaler to gain reimbursement from the manufacturer. If redeemed at a retail store. or a combination of techniques may be used. A sample can stimulate a higher rate of trial than any other promotional efforts. Sampling is however a costly way of introducing or encouraging trial of a new product. Sampling will only be successful only if trial translates into repurchase. This may take the form of a full or partial refund. a technique has to be chosen.  Couponing: A coupon is a certificate good for a specific price reduction. e) Reinforce advertising efforts: (CSP) could help to emphasize product benefits highlighted in the advertising. They also help to reward existing customers. health and beauty items. with magazines and newspapers in the store. build market share. Baba Institute of Technology and Sciences ________________________________________________________________________ saw with the subscription wars competitors are always ready to come up with counter offers to woo away your customers. Coupons are most commonly used by manufacturers of packaged foods. Sales Promotion and Brand Management A. The various tools/techniques involved in the (CSP) are:  Sampling: This consists in offering a small quantity of the product free. It is most commonly used by large firms which produce packaged foods. on a particular product. Once you have decided what you want the (CSP) to achieve. through the mail. d) Encourage consumption of other products in your line: when marketer‘s product portfolio consists of several related products. A single technique. and persuade consumers to buy now rather than later. (CSP) may aim to create demand for more than one product. Hindustan Lever‘s and P&G samples for their detergent brands.K.Prof. Asso. Money-back offers help to reduce the risk involved in trying new products. c) Increase product usage: (CSP) could also aim to persuade customers to buy a product in larger quantities.Advertising.  Money-back offer: In this case the marketer offers to return a certain amount of money to the consumer if he is not satisfied with the product.

The purpose of such a premium is to cover the 100  . Premiums may be distributed in a no of ways: o By enclosing it in a product package known as a ―in-pack‖ premium. called a ―container‖ premium. Asso. others reduce it by a certain percentage (20% or 50% off). The specific purpose of a premium is to induce present consumers to increase their use of brands or to purchase it in larger sized packets. o By attaching it onto the package known as a ―on pack‖ premium. Sales Promotion and Brand Management A. It can also help to switch consumers from their present brand to that of the promoters brand in order to gain trial use. A price pack normally includes something extra with the regular product package. o By offering it as a container holding a product. Price packs are generally more effective than price promotions.  While some price promotions decrease the selling price by a specific amount (Rs 100 or Rs 500 off.Prof.Mohideen.  Premiums may be classified In terms of whether they are offered free or at a reduced price. A price promotion is a short term reduction that is available to everyone who buys the product during the promotional period. One type of price pack is the ―bonus pack‖ which offers more of the product at the regular price.  Price incentives: This is the use of a short term reduction in price to stimulate demand for an established product whose sales is declining.  Premiums: A premium is the offer of some type of mechandise or service either free or at a greatly reduced price to induce purchase of another product or service. with hopes of repurchase. sending them in and waiting for cash back. known as a ―shop or store‖ premium. Consumers are normally reluctant to go through the process of filling out refund forms. o By giving it away at the point of purchase. Here two or more units of a product are sold together at a lower price than if purchased separately.K.Advertising. The ―buy one get one free‖ offers are examples of banded packs. depending on the product). o By distributing it through mail in return for proof of purchase known as a ―mall premium‖. Such price incentives may take the form of price promotions or price packs. Baba Institute of Technology and Sciences ________________________________________________________________________ that refunds are not available on the spot. A second type of price pack is the ―banded pack‖. Premiums offered at reduced price are known as ― self liquidating‖ premiums.

Mohideen.  Joint sales promotion: Consumer sales promotions need not always be for a single advertisers product. A sweepstake on the other hand is purely based on chance. can be used to effect. Each participant has an equal chance of winning a prize from an extensive and expensive list of rewards lucky draws and lottery‘s are examples of this. The‖frequent flyer‖ programme offered by the airlines is the best example of this.  Point of purchase displays: Attractive displays of a product can trigger purchases even if the purchase was not originally planned. switch brands or make unplanned purchases. To recap what we have discussed in this unit the various goals and techniques of (CSP) may be summed in the table below: 101  . It requires that the participants apply a skill in creating an idea. Both contests and sweepstakes are powerful sales promotions devices as they have the ability to involve the customer and build excitement around the product. Point of purchase display materials such as special merchandise racks. Asso. Baba Institute of Technology and Sciences ________________________________________________________________________ manufacturers out of pocket costs. to encourage consumers to try new products. The disadvantage with these techniques is that it is difficult to test them in a limited market before using them on a national basis. Premiums are also an expensive technique and unless tremendous volumes are generated no company can afford to do this.K. a concept or an end product contests are usually based on coining a name or a slogan for a new or existing product or answer a question related to a product.  Contests and sweepstakes: A contest is a promotion based purely on the participants skills and abilities. Sales Promotion and Brand Management A.Advertising. banners and danglers etc. Often two or more marketers join together and offer a combined promotion.Prof. The disadvantage is that the loss of control over creative. The biggest advantage with this type of promotion is that the sharing of work load and expenses. This is usually an on-going promotion used commonly by service industries. The advantage of such a programme is that they build a long term brand loyalty with the customer.  Frequency programmes: As the name suggests the purpose of such a promotion is to increase frequency of purchase. media and budget elements.

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ Sr. No. 1. GOALS Increase Trial TECHNIQUE Sampling Couponing POP displays Price packs Bonus packs Premium Bonus Packs Price Packs Refunds Contests and sweepstakes On-pack and in-pack premiums Refunds

2.

Increase Consumer Inventory

3.

Encourage Repurchase

ADVANTAGES OF SALES PROMOTIONS
The importance of sales promotions may be grouped as follows: ADVANTAGES TO CONSUMERS On the consumers point of view sales promotions methods are beneficial to them in the following way: a) Increased product knowledge: various consumer promotions methods such as demonstration, training to use the product etc give sufficient product‘s knowledge to consumers with regard to its operation. b) Availability of products at reduced prices: (SP) tools like price off deals, premium offers discounts etc reduce the prices of the product when purchased on notified occasions. c) Higher standard of living: the consumers also get plenty of opportunities in using the new cheaper and durable items to their satisfaction which may help them to maintain a higher standard of living. IMPORTANCE OR ADVANTAGES TO PRODUCERS/MANUFACTURERS The producers have a no of advantages:

102 

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________ a) Increase in sales: (SP) programme attracts the consumers and stimulates them for larger purchases leading to increased sales. b) Demand for product and services: the (SP) techniques have proved successful in introducing new products and services. By the supply of free samples the new product makes its place in the market. c) Capture of new market: the (SP) programme facilitates the producer to capture new markets for his products easily. IMPORTANCE OR ADVANTAGE TO DEALERS/MIDDLEMEN The dealers have the following advantages: a) Facilitates larger sales: the dealer get advantages of (SP) techniques for increasing their sales. (SP) is a co-ordinating activity between sales advertisingand public relations efforts and they reduce the resistance at the point of sales. b) More facilities and assistance: the producer under the sales promotional programme provides various facilities and assistance to the middlemen such as assistance to the marketing research, providing with display materials and managerial assistance etc for maintaining regular stock of sales. c) Direct relation with customers: a direct relationship between the dealers and the customers are established through the sales promotional techniques which will continue for a long time. IMPORTANCE TO THE SOCIETY AND THE NATION The importance of SP to the society and the nation are as follows: a) Increase in standard of living of the people. b) Increase in employment opportunities. c) Increase in GDP and per capita income.

TRADE SALES PROMOTIONS (TSP) CSP contributes only partially to the success of a product. Much also depends on the willingness of wholesalers and retailers to carry and sell the product. This is particularly important today when power has shifted from the marketer to the retailer. A few years ago, companies with huge advertising budgets and extensive distribution networks could use their marketing muscle to move products onto retail shelves. Today retailers command terms and demand incentives from the manufacturer for giving preference to his products. Some specific objectives of TSPS are: 103 

Advertising, Sales Promotion and Brand Management A.K.Mohideen, Asso.Prof, Baba Institute of Technology and Sciences ________________________________________________________________________       Encourage stock of new products. Raise or lower inventory levels of an existing product. Provide an incentive to sell a product. Encourage more prominent and attractive display of a product. Offer support and training for distributors and the sales force. Strengthen relations with the trade.

Either one or a combination of tools/techniques may be used to achieve the above goals: i. Trade deals: This is a short term arrangement whereby the wholesaler and the retailer agrees to give a manufacturers product a special promotional effort. The deal could take the form of product discounts, cash payments or additional discounts offered by the manufacturer.  Buying allowance: this could take the form of cash payment, a product discount or additional goods offered to a distributor to encourage him to carry a new item that he may not ordinarily buy or to encourage purchase of a certain quantity of an existing product during a certain period. It is a push strategy. Display allowance: this is a cash payment given in a form of a fee or a discount in exchange of a desirable shelf, location or space for a point of purchase display. It is generally given to support an established product. Slotting allowance: this is a technique generally used to promote new products. It also involves a cash payment or a fee given to the retailer in exchange for a slot or position on a shop shelf.

ii.

Sales support: both dealers and the sales force need to be equipped with some basic selling tools in order to push the product. Sales support could take the form of training programmes, seminars, product demonstrations and distribution of materials such as brochures, videotapes and slides that show detailed product information. Prepared by the advertiser for dealer or salespersons use these materials could be presented to prospects during sales calls at (POP) or at trade shows. Yellow pages advertising: this form of advertising is much more common in the U.S. than in India. An ad in the yellow pages of a directory creates awareness regarding availability of your product. Once a prospect has seen an ad or a commercial for your product he tends to check the yellow pages to see where he can buy it. 104 

iii.

Specialty advertising: This another way of advertising in non-traditional media. Gifts are also given on special occasions such as Diwali.00. Sales Promotion and Brand Management A. Asso. For example a company needs spare parts as a major input or raw material then it will have an auction where different suppliers will come and the supplier that bids the lowest price will be chosen.K. SALES PERSON’S PROMOTIONS The following promotion aids are used for sales force promotions: a) Sales meetings: producers often organize annual meetings for the sales force for giving them necessary information about any new product to be introduced. d) Product demonstration kits and visual sales aids: salesmen are often provided with sales kits. such as sales manuals.000 spare parts from that particular supplier with some sort of concession. containing the models of industrial and technical products. Now suppose the company wants 1.Advertising.Mohideen. But they are used for industrial products and not much for consumer products. new sales plans and techniques and the new sales programme of the producers. BUSINESS TO BUSINESS (B2B) business to business is also an important method of sales promotions. Holi etc. minimizing field expenses etc.Prof. specialty items are offered free of charge without having to purchase something. folders. Bonus is paid to salesmen from the portion of profits of the firm every year to motivate him for better efforts. b) Contest: sales contest for the salesman are organized from time to time by the producers. Their purpose is to create goodwill. 105  . Baba Institute of Technology and Sciences ________________________________________________________________________ iv. it is extremely helpful to them un their contacts with customers.000 spare parts then it will go for economies of scale and try and purchase say about 80. e) Premiums bonus and gifts: premiums are given for achieving prescribed sales quotes. In contrast to premiums which are given only when purchasing a product. Therefore their sales promotions techniques may also differ from that of consumer products. Pens. They are awarded with cash prizes and other benefits on the basis of highest sales. designs and directories of customers etc. price lists. diaries are all examples of specialty advertising. calendars. c) Sales literature and letters: salesmen are provided with various printed literatures.

IX ADVERTISING BUDGET Concept Question 1. Sales Promotion and Brand Management A.K.Mohideen. Asso. Baba Institute of Technology and Sciences ________________________________________________________________________ MODULE. What is an ad budget? Explain any 4 methods for determining an ad budget ADVERTISING BUDGET 106  .Advertising.The competitive parity method Descriptive Question 1.Prof. Any 1 ad budget method can be asked for example.

The budgeting process is the responsibility of the top management along with the marketing manager.5crores will be spent on the national media. Sales Promotion and Brand Management A. WHO DECIDES THE ADVERTISING BUDGET It is the primary responsibility of the advertising manger to prepare draft budget proposals. METHODS OF SETTING THE ADVERTISING BUDGET 107  . The process of budgeting is therefore a decision making process that divides the total appropriation under different expenses heads. In such circumstances the top management may decide upon the amount to be spent (budget appropriation) and the advertising manager will then plan how to allocate this sum between different expenditure heads.Advertising. There are many managerial functions that are performed through the process of budgeting. it is sometimes not followed. especially by small advertisers.K. while preparing the proposals. He also takes into account the cost of the media. An advertising budget is a plan that sets a limitation on advertising expenditures. is a budgeting decision. This provides a forum of communication that resolves conflicts and sets the priorities for the communication plan of the company. Baba Institute of Technology and Sciences ________________________________________________________________________ An advertising budget reflects the importance given to the function of advertising within a company. states how expenditure will be allocated and controls the dispersement of expenditure over a designated period of time. The advertising budget is both a planning and control device. Managerial goals are discussed and are synchronized with marketing and advertising objectives. Though this is the most scientific process of arriving at the advertising budget. This result in final budget plan that is then recommended to the top management for approval. This draft budget then becomes the basis of discussion between the marketing manager and advertising manager and sometimes. It is his duty to access the needs of the company with respect to the challenges posed by the market. even the advertising agency (especially when the agency has a long term relationship with the company.Prof. then deciding that 1. creative and actual production.Mohideen. Asso. For example if the total advertising budget for launching a new product is rupees two-three crores.

Though there are several accepted methods of arriving at the budget. The various methods.Prof. 2. Advertising leads to sales and the amount of advertising expenditure depends upon the sales target and therefore. 5. Though advertising expenditure is considered to be an investment. PERCENTAGE OF SALES METHOD: The percentage of sales method is the most widely used widely used method of setting the appropriation. Advertisers want to minimize expenditure and maximize the returns. 9. when past sales are used to arrive at the current year‘s budget.Mohideen.Advertising. 4. a combination of these methods will be used. In reality.K. Sales Promotion and Brand Management A. But this method suffers from a basic drawback in that it does not take into account any specific need of the market situation. The percentage is based on the past years‘ sales or on estimated sales for the coming year or on some combination of these two. for setting advertising budgets are: 1. 3. the figure may have more historical value rather than current utility. Percentage of sales method Unit of sales method Task and objective method The competitive parity method Brand history method All you can afford method The break even method The quantitative method Share of voice method Each of these methods has certain advantages and disadvantages. Many companies in India use this method to arrive at a tentative budget appropriation. as it requires little decision making. 8. which are used. Asso. 1. 2. although it has been criticized by many. the individual brand budget will depend upon several factors such as profitability. 6. Baba Institute of Technology and Sciences ________________________________________________________________________ One of the most difficult tasks facing advertisers and ad agencies is the decision on the optimum money to be spent on advertising. marketing objective and competitor‘s position. 7. This is simplest method. when the percentage of future sales is used the estimates are more realistic. In conclusion one can say that this method is not appropriate as market situations change rapidly and past sales alone are not an effective indicator of the company‘s communication needs. Moreover. UNIT OF SALES METHOD: 108  . its utilization has to be intelligent and profitable.

Thus. it does not lead to efficient marketing since past sales determine how much a firm should spend on advertising. as every advertiser aims at improving the rate of growth.Mohideen. However.1. a percentage of the price of each unit of the item sold is allocated to advertising. 3.Prof. In this approach.K. 1. TASK OBJECTIVE METHOD: This method is gaining more popularity because it provides a more logical basis for deciding advertising appropriation. This is rarely so.) As it is obvious in the above example.will have Rs.Advertising.5 lakh. However they are useful guides to give direction to planners who use them as a basis for deciding the ad budget. in combination with other methods. his expenditure on that brand will be Rs. Baba Institute of Technology and Sciences ________________________________________________________________________ The unit sales method also relates the advertising expenditure of sales. Thus a soap manufacturer might budget that a cake of soap costing Rs. This approach is simple to plan and execute. This also assumes that the advertiser is satisfied with the current rate of growth in sales. In an extreme situation if sales go down. Asso.50 as the advertising expenditure.6/. The present methods of research do not give a direct link between advertising expenditures and achievement of the objectives. For an existing well know brand. the company may spend less on advertising (for example Ranbaxy will spend less to advertise its product Garlic Pearls. a firm following this method will also reduce advertising expenditure. The objective task method concentrates on the marketing/advertising objectives that are pre-decided and ask these questions: what is the role of advertising in obtaining these objectives? How much should we spend to achieve these objectives? Thus under this method a company launching a new product will decide to spend more money as it has to create immediate awareness amongst consumers. In conclusion the unit of sales and percentage of sales method are not suitable to a dynamic market situation.( for example Ranbaxy will spend more on its new product Olesan). 109  . This approach is useful as it links the price of a brand with its advertising expenditure. when in fact advertising is a tool to create sales and expand markets. There is one problem involved in the use of this method of setting the appropriation and that is: how does one determine just how much advertising and what type of advertising will achieve the stated objectives. the objective task approach directs the efforts of manufactures to think through the objective while setting the budget. Sales Promotion and Brand Management A. This will be disastrous for the company as it may lose its market rapidly to competitors. if the manufacturer sells one lakh units.

And secondly it assumes that your competitors are spending optimally.Mohideen. The result was that close up has over taken Promise and is now number two in the toothpaste market behind Colgate. Asso. 7. the toothpaste manufactures by Hindustan Lever had a stagnating market share till recently. Thus a brand at the introductory or pioneering stage will use more advertising appropriation than an established brand. 3. 6. In 1990 its spent Rs. That is they try to keep pace with their competitor‘s advertising budgets. This method could be useful in deciding individual brand ad expenditures.Advertising. THE COMPETITIVE PARITY METHOD: This is the most controversial method and few executives admit that they use it while preparing the budget. 5.Prof. It also maintains the present market position rather than bringing any positive change for the company. THE BREAK EVEN METHOD: The break even or the marginal analysis method attempts to quantify the advertising spending level that will offer an organization the highest additional gross profits. Baba Institute of Technology and Sciences ________________________________________________________________________ Until more sophisticated methods are developed managers will have to face this problem of uncertainty while deciding the optimum budget. It has the advantage of recognizing the importance of competitors and ensure that the competitors do not increase their ad expenditure to a level that affects the advertiser‘s sales. 4. Firstly your objective may be different from that of your competitors. BRAND HISTORY METHOD: Under this method the brand‘s product life cycle is considered while setting the budget. But the approach has disadvantages.K. New entrepreneurs have no other option but to follow this method when they are short of funds. Brands that are facing a decline may also use more advertising to add new life into it.45 crore on television advertising with its new theme close up: ―a mouth wash in tingling red and blue colours‖. That is the firm continues to spend on the advertising as long as the incremental expenditure 110  . Sales Promotion and Brand Management A. This method seems to be illogical and unambitious but conservative management use this method as it is safe and ensure that there is no overspending. If you want to overtake your competitors you may have to spend more than them and spend this money more efficiently. ALL YOU CAN AFFORD METHOD: This approach means that the advertising budget will be decided on the basis of whatever money is left after all other fixed and unavoidable expenses have been allocated. In this approach an advertiser bases his budget decision primarily on the expenditures of competitors. For example Close Up.

thus maximizing the gross profits of the firm.Advertising. In the experimental method varying advertising expenditures are used in different cities. we find that public sector corporations such as BEST or the Mahanagar Telephone Nigam Ltd spend less on advertising than private sector companies such as Reliance Industries or Tata Industries. 2) The product Life Cycle: This has a very important influence on the ad budget and companies use the brand history method for deciding how to spend on the product. The immediate purchase measures up to only a small part of the value the firm enjoys from such continuous purchases. For example the advertising expenditure in Pune may be greater than the advertising expenditure in Hyderabad. Moreover. This drawback can be overcome by using the experimental method. linkage between advertising expenditure and corporate objective will be established. Other activities such as personal selling and sales promotions also influence the revenue earned by a company.K. 1) Corporate objectives: Using the objective task method. Baba Institute of Technology and Sciences ________________________________________________________________________ are exceeded by the marginal revenue they generate. FOLLOWING ARE THE FACTORS THAT ARE CONSIDERED IN DETERMINING THE ADVERTISING BUDGET. For example in India. 111  . This method has an advantage because it helps in diagnosing any problem. 3) The budgeting period: Usually companies have a yearly budget but some may prepare long term budget that match the long-term objectives.Prof.Mohideen. in the month of June but may make a purchase in December. that is when the company is overspending or under spending. Sales Promotion and Brand Management A. it assumes that there is an immediate effect of advertising expenditure. Advertising may also attract customers who become loyal customers for several years. This is possible in direct mail advertising. Then sales in the two cities are compared to find out which is optimum level of expenditure. But it suffers from the disadvantage of limited research techniques that cannot isolate the effect of advertising on marginal revenues and gross profits. In most other advertising there is a carryover effect that is a potential consumer may be influenced by the ad. Asso. The advertising expenditure varies depending upon corporate philosophy and priorities.

VCRs. manufacturers may prefer to spend more on dealer commission than advertising. Advertisers have to keep aside contingency funds that can be used to tackle unexpected market challenges. Asso. When competitors increase their advertising expenditure others are forced to follow them.Prof.Advertising. 9) Scope of the market: If the advertiser wants to approach the national market his budget has to be much more than that required for local or regional market. 6) Crisis management: Even the best-laid plans can be affected by the changes in the marketplace.(manufactured mainly by Johnson & Johnson ). which therefore use more of advertising. Sales Promotion and Brand Management A. the influence of retailers is very strong. In most common durables such as televisions. in India television manufacturers spend more than the manufacturer of ear buds.Mohideen. 7) The type of product: Consumer products need more advertising than industrial products. microwave ovens and so on. 8) Importance of middlemen: In product categories where middlemen or retailers have to push the product. witness a greater expenditure on advertising. which have stiff competition.K. For example Sumeet washing machines and kitchen mixers and food processors are not advertised heavily. chocolate and ice cream. This is because the brand name Sumeet is familiar to consumers who have accepted the product image of quality and after sales service. Such products will have a higher budget appropriation. Unlike impulse purchase products such as chewing gums. 5) Affordability: While the affordability level depends upon the advertisers priorities ceilings on how much to spend is fixed by the advertisers in order to avoid overspending. 10) The quality of the campaign: 112  . Among consumer products shopping items such as toothpaste. The company prefers to use retailers to push the brand. For example. shampoo and soaps need to be advertised consistently in order to maintain their brand position. Baba Institute of Technology and Sciences ________________________________________________________________________ 4) The competitors strategies: Product categories.

was a striking television commercial that immediately gained attention.Prof.Advertising. In this case the advertisers need not spend on buying media. in order to enjoy the same degree of visibility. For example the Cherry Blossom ad. To compensate on poor quality campaign an advertiser may have to spend more on media.Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ When the advertising campaign is striking and is unusually creative. which used a Charlie Chaplin look alike. END OF MODULE IX MODULE.K. time and space. Asso. it is immediately noticed by consumers. Sales Promotion and Brand Management A.X 113  .

Prof. Baba Institute of Technology and Sciences ________________________________________________________________________ ADVERTISING EFFECTIVENESS Descriptive Question 1. Asso. ADVERTISING EFFECTIVENESS 114  . Sales Promotion and Brand Management A.Mohideen.Advertising.Pre and Post methods.K. Evaluating Advertising effectiveness.

also known as “Developmental Advertising Research”. This is purely evaluative in nature. 3. how it was interpreted.Prof. It helps to select the approach that best achieves the objective of the campaign. 2. Baba Institute of Technology and Sciences ________________________________________________________________________ Effectiveness testing involves specialized set of research techniques known as “Advertising Research”. which helps to develop the overall campaign strategy. MNC‘s account for over 50% of the total money spent on advertising today.Advertising. Asso. This has lead to increasing research spending to test the effectiveness of the campaigns.K.Mohideen. 115  . This has given rise to the need for advertising research. which media were most successful in delivering the message. REASONS FOR ADVERTISING RESEARCH IN INDIA 1. as opposed to the research done prior to campaign planning. A lot of time and money is spent on the latter type of research. the growth in the scale of advertising expenditures has been brought about mainly by the entry of MNC‘s. Differences In The Effectiveness Of The Individual Advertisements And The Media: Research has revealed that advertisements costing the same amount of money differ vastly in their effectiveness. According to a recent study. because it provides accurate data based on which decisions may be taken. Sales Promotion and Brand Management A. The same is true of advertising research. helps to refine or modify the campaign in successive phases. General Trend Towards More Scientific Decision-Making: Market research has taken off in a big way in India. Growth In Advertising Spends: In India. irrespective of the message. This feedback in turn. Some medias are found to be more effective than others. to see whether ads have high or low ratings. and what sales resulted from the advertising. Advertising research gives advertisers and campaign planner‘s feedback such as how many people received the message.

This would mean higher share of voice in the category. Sales Promotion and Brand Management A.   116  . when combined with creative impactful and meaningful ads gets a better ‘top of the mind recall’.Advertising.Mohideen. Baba Institute of Technology and Sciences ________________________________________________________________________ MEASURING ADVERTISING EFFECTIVENESS Share of Spend = Share of Voice = Share of Mind = Share of Market Visibility % % Top of mind recall % Preference % Brand ad spend Total Category Ad Spend Brand Ad Exposure Total category ad exposure Who prefer Brand Total category consumers Brand Sales Total category sales  If the media plan for a brand is efficient in maximizing its ad exposure and takes care of the creative and image impact issues.Prof. The higher share of voice.K. This would mean higher share of the mind among the consumers of the category. Asso. then a higher ad spend should ensure higher ‘visibility’. together with the persuasion power of the advertising creates a ‘preference’ for the brand which may eventually lead to higher market shares. The greater share of the mind.

In addition to message and media. ability to induce action. Therefore the advertiser has to focus on those elements that may be measured with some degree of accuracy. the media for their effectiveness in delivering a message. Advertisers would like to measure each of these elements but it is not practically possible. as well as media units could be tested. media and so on. to determine their reactions. 117  .Prof. Sales Promotion and Brand Management A.  The method to be used. MEDIA TESTING In testing. (When should they be tested?) Eg: Pre-test. media vehicles. post-test. Asso. media types.headlines. etc.Mohideen. visuals. music. (How should they be tested?) The question ―what should be tested‖ refers to the specific elements of the campaign that are to be measured for their effectiveness. MESSAGE TESTING This refers to testing the entire advertising campaign. In this process. Baba Institute of Technology and Sciences ________________________________________________________________________ ADVERTISING RESEARCH It involves decisions on The elements of an ad to be tested.K.  Whether they should be tested before or after the campaign.Advertising. may be tested for their effectiveness in terms of recall of the message. or some other measure. Both the advertising strategy or what is said as well as the creative execution. slogans. some other areas of advertising that may also be evaluated include: MARKETS Advertisers may want to test a particular strategy or a television commercial against various market segments. The most common areas that are evaluated are the advertising messages and the media. or ―how it is said‖. the advertisers may even decide to alter the strategy and to target the campaign to a different market. (What should be tested?) Eg: TV.

Sales Promotion and Brand Management A.K. beliefs about the product and intentions to buy. media. PRE-TESTING This refers to testing the campaign before it has run. messages. Asso. in terms of sales generated. or days of the week. It may be done to test two types of effects: ―communication effects‖ and ―sales effects‖. have been achieved. The purpose of pretesting is to detect weaknesses or flaws in the campaign that may result in consumer indifference or negative response. Regarding ― when campaigns should be tested‖. attitudes and opinions. This type of pretesting identifies and isolates the influence of advertising on sales. Pre-testing of advertising effects seeks to determine whether advertising objectives such as awareness.Prof. Baba Institute of Technology and Sciences ________________________________________________________________________ MOTIVES Advertisers may also be interested in knowing what product benefits appeal to consumers and what motivates them to buy. campaign evaluation can be done in two stages-before the campaign is run and after it has been run. All the areas of advertising like-markets. both in 118  . a gift products. or whether year-round advertising of say. recall. is more effective than advertising concentrated in the festival season. ADVERTISING BUDGETS Advertising research can also help to determine the effectiveness of different levels of advertising spendings. SCHEDULING Advertisers can also test consumer responses to a campaign during different seasons of the year. budgets and scheduling may be tested. Pretesting of sales effects seeks to determine whether a proposed message or media plan has resulted in increased sales. motives. A number of more advanced techniques are used for pretesting both communication effects and sales effects.Mohideen.Advertising. which helps to know whether the right appeals have been developed. This increases the likelihood of preparing the most effective advertising message. They can test whether frequent advertising is more effective than occasional or on-time insertions.

In case of television commercials. Order-of-merit test: this is used mainly for pretesting print ads in finished form. which resembles the actual advertising medium. Asso. A group of people are shown a series of advertisements. The advantage of this method is that it is an inexpensive and quick way of obtaining insights into the advertising process. the effectiveness of these may be tested by showing respondents an actual television programme. 4. a number of methods have been developed for pretesting these communication effects. and asked to place them in rank order. Focus groups are used extensively by Indian advertisers. by asking direct questions about the advertising. This brings us to the question ―how campaigns should be tested‖. Based on the responses.K. Dummy advertising media vehicles: This is a technique that can be applied to both print and broadcasting ads.Advertising.Mohideen. such as ―liking‖:. sometimes as many as six or seven. based on some communication criterion. researchers can infer how well the advertising messages convey the key copy points. no. Questions are then asked to measure the extent on which people recalled the test commercials. a composite score is obtained. and so on. Direct Questioning: This is a method designed to obtain a full range of responses o the advertising. The group may be interviewed on their reactions to advertising concepts or finished campaigns.1. These may be broadly grouped under three categories:  Opinion and attitude tests  Mechanical laboratory methods and  Projective techniques. 2.Prof. 119  . Sales Promotion and Brand Management A. It is a free-wheeling discussion conducted among small groups of people and led by a ―moderator‖.2 . This score shows which ad was ranked no. 3. with the test commercials placed within it. It involves placing the ―test‖ ads in a dummy vehicle. Focus Groups: This is another commonly used method to pretest print ads at both the conceptual and finished stage. Given that most advertising is assigned the task of achieving specific communication goals. Baba Institute of Technology and Sciences ________________________________________________________________________ the print and broadcast media. After all the ads have been ranked.  OPINION AND ATTITUDE TESTS 1.

Central Location Projection Tests: This is used for pretesting broadcast advertising. 2.Advertising. The “eye camera” photographs the movement of people‘s eyes while reading ads. their liking for an ad. Paired comparisons: This is used when more than six or seven ads have to be rank ordered. at a central location. These include: 1. Live Telecast tests: Here. we defined attitudes as liking or dislike for a brand. Baba Institute of Technology and Sciences ________________________________________________________________________ 5. people may also form positive or negative attitudes towards ads. Under this method.Mohideen. It is possible to measure attitudes towards ads using quantitative research techniques such as attitude rating scales. and shifting attitudes.  MECHANICAL LABORATORY TESTS These are commonly used in US and other developed countries. Questions are asked before and after exposure to determine whether the commercials have been successful in gaining attention. 6. on various dimensions.Prof. the researcher can tell how long it takes for respondents to get the intended message and how they perceive it. This way two alternative layouts may be tested for their effectiveness.K. The most commonly used type of attitude rating scale is the “semantic differential”. 3. Attitude Ratings: In an earlier section. increasing brand awareness and comprehension. Asso. 7. 8. It records skin temperatures and tension resulting from reading ads. The “tachistoscope”: It is used to measure consumer perceptions to ads. The “psychogalvanometer” is a device similar to lie-detector. Respondents are then interviewed on the phone to test their reactions. respondents are asked to indicate on a seven point scale. The theory behind this concept is that the more tension an ad creates. Similarly. Using this device. The process continues until each advertisement has been paired with each of the others. Sales Promotion and Brand Management A. Test commercials are shown to a group of respondents along with other commercials. Consumers are then asked to judge two ads at a time. the more successful it is likely to be. and asked to choose which one is better. 120  . test commercials are shown on closed-circuit or cable television.

respondents are shown advertising material and promoted to discuss it freely. Inquiry Tests: It involves measuring the potential sales effectiveness of ads based on the number of inquiries received. Asso. such as free booklets. including the cost of training interviewers to evoke useful responses from respondents. The two methods used are: 1. PRE-TESTING The purpose of testing ads for their sales effectiveness before the campaign is run. The ads usually offer some incentive for responding immediately. pictures of people in ambiguous situations are shown to respondents. projective techniques permits respondents to indirectly project their views or feelings about the advertising situation. This way. “Word Association and Sentence Completion” Tests: These are a little more structured than the depth interview. The following types of projective techniques are used: 1. to which the respondent replies by projecting his thoughts. by projecting their opinions and feelings into the story. A trained interviewer.Prof. Respondents are asked to build a story around these pictures.Advertising. The problem with using projective techniques to measure advertising effectiveness is the expenses involved. The theory behind it is that the size of the pupil increases when the person finds the ad visually interesting or emotionally appalling.Mohideen. 3. These words and sentences are taken from ads being tested. the researcher can determine what they mean to the consumers. It is also used to test the effectiveness of media. It permits the respondents to direct questioning. Key words or sentences are used as stimuli. Thematic Apperception Tests: In this method. It is useful especially in testing small print ads. The “pupillometer” is a device that measures a person‘s pupil size when exposed to visual stimuli such as ads. product samples or free trials.K. Depth interviews: Here. and to see whether it would be profitable on a larger scale.  PROJECTIVE TECHNIQUES It is a type of qualitative or ―motivational‖ research adapted from clinical psychology. Baba Institute of Technology and Sciences ________________________________________________________________________ 4. probes the respondent about his underlying feelings and motivations. 2. Sales Promotion and Brand Management A. It also 121  . usually a psychologist. is to assess the advertising on reduced scale.

may decide to go for a ―test market‖.Mohideen. Aided recall tests measure whether respondents recognize a particular ad.Prof. Recall tests indicate whether consumers got the point of the advertiser‘s message. the budget level and the scheduling or the timing of the advertising.Advertising. attitude change or increase in sales. Many of the areas of advertising that are pretested can also be posttested like media. The post testing methods for communication effects of advertising fall into two broad categories: 1. message and markets. They are shown certain ads and then asked questions to determine whether their previous exposure to the ad was through reading. as the responses to some ads may sometimes take months to come in. 2. The problem with this method is that it is expensive and it takes a lot of time POST-TESTING Campaign evaluation after the release of the ads is known as “post-testing”. they can also be used for pretesting the media mix. Sales Promotion and Brand Management A. RECALL TESTS this may be in the nature of ―aided recall tests‖ or ―unaided recall tests‖. Such tests are also time consuming. Baba Institute of Technology and Sciences ________________________________________________________________________ measures the intentions to buy.awareness. Asso.K. It is done with the specific purpose of evaluating a campaign against pre-determined objectives. It may not always represent a sincere interest in the product advertised. viewing or listening. Sales Experiments an Test Markets: An advertiser who wishes to know how effective his advertising is before investing large amounts of money on a rational effort. They are very useful in determining whether ads are being read and how well they are 122  . and therefore a good measure of sales effectiveness of ads. Besides pretesting ads.

it can also be used to test alternative media mixes. The difficulty lies in coming up with a proper definition of attitude. This does not necessarily mean product sales. colour or attention-getting themes. A positive attitude is an indication of an intention to buy the product. creative approach and the timing or 123  . Also. compared with the competitor‘s ads. except advertising. The two broad categories of posttesting methods available to test the sales effectiveness of advertising are:  Measurement of post sales: This method consists in comparing past sales with the current sales. such as size. Asso. Likert scale. Semantic differentials are used. while the brand name may not be remembered.Mohideen. Therefore they are at best only a short-term measure of advertising effectiveness.Advertising. 2. which represents a complex mix of feelings. INQUIRY TESTS They measure interest in and desire for a product.  Experimental designs: This method overcomes some of the problems of sales tests by eliminating the influence of all variables that influence sales. Many people also find it difficult to express their attitudes. because they can be done via phone or mail. The disadvantage of recall tests is that they indicate only the readership of the ads. Recall is also subject to the variations of individual memory. and vice versa. because attitudes relate more closely to the purchase of a product. Baba Institute of Technology and Sciences ________________________________________________________________________ working. One way to use an experimental design would be to test which level of advertising expenditure produces the best sales level. They can also yield useful data on the relative effectiveness of different advertising components. Sales Promotion and Brand Management A. attitudes are resistant to change even by highly aggressive advertising efforts.Prof. The advantage of attitude tests is that they are easy to conduct and low in cost. An ad may be remembered for itself.K. 3. In addition. A variety of measurement techniques like constant sum. ATTITUDE TESTS Tests that measure shifts in attitudes are generally a better measure of effectiveness than recall tests.

Sales Promotion and Brand Management A. as well as taking strategic decisions about the campaign. as it is the integration of research with campaign planning. its importance is bound to grow in future.K. The account planner will be responsible for conducting advertising research. Baba Institute of Technology and Sciences ________________________________________________________________________ frequency of ads. A special quantitative technique for measuring such responses has been developed in US by Leo Burnett advertising agency. It consists of a series of 52 different statements about the ad or commercial. confusion relevant news. known as ―Viewers Response Profile‖. This technique can be used for both pretesting and posttesting of TV commercials as well as print ads. These statements measure emotional response along seven different dimensions: entertainment. Asso.Mohideen. rather than what they know. brand reinforcement. The ―account planning‖ function. It is best suited for products that are purchased frequently and advertising is the major factor in the marketing mix. with which respondents are asked to agree or disagree. familiarity and alienation. Although advertising is still in its infancy stage in India.Advertising. It is based on what people feel after watching ads. The consumer‘s emotional response to an ad is also considered a measure of effectiveness. empathy. ADVERTISING SHARE V/S MARKET SHARE Less effective advertising More effective advertising 124  . still a relatively new concept in India will assume greater importance.Prof.

K. Asso. Sales Promotion and Brand Management A...Mohideen.Advertising. Baba Institute of Technology and Sciences ________________________________________________________________________ TOPICS ON WHICH CASE STUDY CAN BE GIVEN      Brand Management Advertising Objectives and DAGMAR Copy Evaluating Advertising Effectiveness Sales Promotion Wish u ALL THE BEST for your Exams!!!! Feedback about this study material can be emailed @ ramkishen123@rediffmail.THE END… 125  .Prof.com .

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