Advertising Management

Only the brave or ignorant …can say exactly what advertising does in the market place

Is your Advertising getting results? It sure is! Last week we advertised for a night-watchman and the next night we were robbed

UNIT I INTRODUCTION TO ADVERTISEMEN T

Marketing Defined

Marketing is a societal process, by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Marketing Mix


 

Product Price Promotion Place

Publicity Direct mail. Telemarketing and Internet .Promotional Mix      Sales promotion Advertising Sales force Public relations.

Promotion  The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. .

Elements of Promotional Mix Advertising Interactive / Internet Marketing Promotional Mix Personal Selling Publicity / PR Sales Promotion Direct Marketing .

Concept and Definition of Advertisement .

Persuade or Remind Art of telling and selling Can be given at three periods    Before need arises By the time of the need After the need arises . or services by an identified sponsor. goods. 52 possible ad objectives (Russell Colley) Major objectives are: Inform.Advertising      Advertising is any paid form of non personal presentation and promotion of ideas.

In case of Public Service Announcements (PSA) whose advertising space or time is donated by the media.Paid Aspect  The space or time for an advertising message generally must be bought. .

g. often at the same time. magazines. radio.Non Personal Aspect  Non personal component means that advertising involves mass media. newspapers) that can transmit a message to large groups of individuals. (e. . TV.

broadcast.Introduction to Advertisement   The activity of attracting public attention to a product or business. or electronic media. Advertising is a marketing tool and may be used in combination with other marketing tools. Advertising is persuasive and informational and is designed to influence the purchasing behavior and/or thought patterns of the audience. Paid form of a non personal message communicated through the various media by industry. such . or individuals. business firms. as by paid announcements in the print. nonprofit organizations.

 The communication must be delivered through mass media.  The communication must be attempting to persuade. .What is Advertising?  Three criteria must be met for a communication to be classified as advertising:  The communication must be paid for.

5 Ms of Advertising      Mission Money Message Media Measurement .

goods or services Maximum control over the message Inform and persuade Has its selected market Less credible Subjective Product brand related message Non personal communication By an identified sponsor .Advertising characteristics           Paid form About ideas.

.Forms of Advertisements             Advocacy Comparative Cooperative Direct-mail Informational Institutional Outdoor Persuasive Product Reminder Point-of-purchase Specialty advertising.

such as political activists. or general targets.com/topic/advocacyadvertising#ixzz1dkJY5zFC . the media. or competitors. government agencies.answers. Advocacy advertising can be directed at either specific targets. Read more: http://www. consumer groups.Advocacy advertising  Advertising used to adopt a point of view about controversial public issues.

.

demand. outdoor) Aim(financial. direct action) . international) Media used (print. Consumer) Geographic coverage (local. electronic.Industrial. regional. social messages. national. direct mail.Classification of Advertising     For whom (target audience.

Audience Geography Global International National Regional Local .

Audiences for Advertising      Household Consumers Business Organizations The Trade Channel Professionals Government .

Functions of advertising        Informs the buyers Offers an incentive Reminds the benefits Stimulates to try the product once Builds brand Reduces selling costs Persuades people .

Social Implications of Advertising .

Social aspects of advertising    Consumerism Consumer culture Consumer awareness .

Consumerism     Ability and capability of consumers to purchase various goods & services After industrial revolution (preference to consumers) Advancement in areas of education and research. distribution and friendly consumption. . increased employment opportunities. generation of income. technology in all fields have been continuously upgraded It resulted in increased production.

refrigerator.Consumer culture   Improves the culture of the consumers The growth of consumer culture diverted the purchasing power of middle class people towards the purchase of products like TV. etc . air cooler. cellular phone.

Consumer awareness    There are more than 20 legislative enactments in India to protect the rights of the consumers The ad should help to protect the rights of the consumers Education and media played a significant role to create awareness among consumers .

Social aspects of advertising    Consumerism Consumer culture Consumer awareness .

Economic Implications of Advertising

Role of advertising in Economy

 

All that ad has to do is to sell a product or service Ads do the sales job better Performs economic function by being an art of persuasion Ads create wide markets

Effects of Advertising

Effects of advertising on costs
 Effects

of advertising on total marketing costs  Effects of advertising on total manufacturing costs

Effects of advertising on price
 Prevents

price competition for a longer period product improvement

Effects of advertising on quality
 Stimulates

Effects of advertising on investment and the level of national income

Ethical & Legal Implications of Advertising

Code of Advertising Ethics in India

Advertising shall be designed as to confirm to the laws of the country and should not offend against morality, decency and religious susceptibilities of the people.

General rules of conduct in advertising
 Derides

any race, caste, color, creed and nationality;  Is against any of the directive principles, or any other provision of the Constitution of India;  Tends to incite people to crime, cause disorder or violence, or breach of law or glorifies violence or obscenity in any way;  Presents criminality as desirable;  Adversely affects friendly relations with foreign States;  Exploits the national emblem, or any part of the constitution or the person or personality of a national leader or State Dignitary;  Relates to or promotes cigarettes and tobacco products, liquor, wines and other intoxicants;

nationalised or recognized banks and public sector undertakings.  Matrimonial agencies.  .General rules of conduct in advertising   No advertisements message shall in any way be presented as News. Advertisements for services concerned with the following shall not be accepted:Money lenders.  Chit funds.  Saving schemes and lotteries other than those conducted by Central and State Government organisations.

relating to horse-racing or the other games of chance. .  Foreign goods and foreign banks. and those with claims of hypnotism.  Fortune tellers or sooth-Sayers etc.General rules of conduct in advertising  Unlicensed employment services.  Betting tips and guide books etc.

General rules of conduct in advertising    No advertisement shall contain references which are likely to lead the public to infer that the product advertised or any advertised or any of its ingredients has some special or miraculous or super-natural property or quality. Advertisers or Advertising Agencies must be prepared to produce evidence in support of their claims. which is difficult of being proved. . skin whitener.g. Testimonials must be genuine and used in a manner not to mislead the listeners. Advertisements shall not contain disparaging of derogatory references to another product or service. e. cure for baldness. etc.

.General rules of conduct in advertising      No advertisement of any kind of jewellery (except artificial jewellery) or precious stones shall be accepted. sexual excesses etc. shall not be accepted. premature ageing. Information to consumers on matters of weight. Advertisements relating to claims about curing of sexual weakness. Advertisements indicating price comparisons or reductions must comply with relevant laws. loss of virility. quality or prices of products where given shall be accurate. Advertisements for products specifically offered to women shall not be advertised as products that are effective in inducing miscarriage.

such references can be made only when the said establishment does actually exist.   The portrayal of the female form shall be aesthetic and within the well established norms of good taste and decency. character. institute and laboratory are used in advertisements. clinic. action and suitability of the purpose for which it is recommended.General rules of conduct in advertising  There should be no exaggerated claims regarding the composition. Women must not be portrayed in derogatory light and in a manner that emphasizes passive. may be used only with a proper sense of responsibility to the ordinary viewer. submissive qualities and encourages them to play a subordinate and secondary role in family and in society. When words such as college. Scientific or statistical excerpts from technical literature etc.   .

1986. Emblems and Names (Prevention of Improper Use) Act. 1954. Prevention of Food Adulteration Act.Rules and acts framed to maintain standards in advertising                Drugs and Cosmetics Act. 1955. 1950. AIR / Doordarshan Code. Pharmacy Act. 1954. 1957. 1950. 1958. 1940. 1986. 1948. Drugs and Magic Remedies (Objectionable Advertisement) Act. Prize Competition Act. Trade and Merchandise Marks Act. Indecent Representation of women (Prohibition) Act. Drugs Control Act. Consumer Protection Act. Copyright Act. Code of Ethics for advertisement in India issued by the Advertising Council of India Code of standards in relation to the advertising of medicines and treatments Standards of practice for Advertising Agencies .

guarantee and warranty etc.Ethics in advertising   Advertising should be in conformity with the laws of land Advertisements should not be done against the cultural. should be communicated with utmost care and prudence (cautiousness)       . quality. religious and aesthetic values of the people It should not propagate hatred and defame the peace of the nation It should not aim to exploit the illiteracy and superstition of the people to gain benefits Advertisements should disseminate factual information Advertisement should not hide or divert facts (They can inform the ingredients of the product and the need for using the product) Misleading statements (visual or verbal) should be avoided Price. procedure to procure.

it should not be announced that money will be returned if the purchaser is not satisfied with the products .Ethics in advertising      Comparisons which unfairly disparage (criticize) a competitive product for service should be avoided No advertisement should encourage or instigate the people to practice illegal practices Patent marks of other reputed concerns should not be used to cheat the consumers Obscene words / scenes in advertisements should be avoided Without real intention.

Ethics in advertising   Apart from state advertisements. astrology and magical skills. bogus marriage brokerage. . national symbols and the photographs of national leaders should not be used without getting prior permission from the competent authorities concerned No advertising should canvass for pawn broking. deposits for unregistered financial firms and employment bureaus.

Legal issues of advertising    Article 19 (1) all citizens shall have the right to freedom of speech & expression.restricts & prohibits the ads for drugs Article 19(2) – right to information and expression can be resticted on the following grounds . Article 19(1) a .

Legal issues of advertising         Security of the state Friendly relations with foreign states Public order Decency of morality Contempt of court Defamation Incitement (encouragement) of an offence Sovereignty and integrity of India .

guns & electrical appliances Advertisements shall not propagate products the use of which is banned under law Comparisons should be factual and accurate. over bridges or climbing dangerous hills. .Legal issues of advertising       Obvious untruths and exaggeration Advertisements should not depict children leaning dangerously outside windows. playing with knives. Advertisement should not show children using or playing with matches or any inflammable or explosive substance Viz.

Setting Advertising Objectives .

Advertisement objectives      Inform and build awareness To increase the sales To retain the loyalty of present & former customer To support the sales force To build brand image   ―Top of mind‖ ―First choice‖    To persuade To support other marketing efforts To encourage action .

Inform  Introducing new products  Informing the market of a price change  Explaining how the product works .

Persuade  Buiding brand preference  Encouraging switching tour brand  Changing customers perception of products attributes  Becomes more important as competition increases  Comparative advertising .

Remind  Most important for mature products  Reminding customers that the product may be needed in the near future  Reminding them where to buy  Describing available services  Correcting false impressions  Reducing consumer’s fears  Persuading consumer to receive a sales call  Keeping the product in their mind during off-seasons .

Ad Agency Selection & Remuneration .

.Advertising Agency  Advertising agency is defined as an organisation whose business consists in acquisition as a principal of the right to use space or time in advertising media and the administration on behalf of the advertisers. of advertising appropriations made by them.

Tasks of an advertising agency         Copy writing Art pictures & photographs Media planning & buying of space Radio & television – producing commercial spots The work of market research Production film or tape for use Public relations Forwarding the advertising materials to the media owners and the clients in time .

Agency should require    Sales ability Creative ability Management ability .

Types of Advertising Agencies            Full Service Agencies Creative Boutique Interactive Agency In-House Agency Media-Buying Agency Direct Marketing Agency E-Commerce Agencies Sales Promotion Agencies Event-Planning Agencies Design Firms Public Relations Firms .

Full-service advertising agency   A full service agency typically includes an array of advertising professionals to meet all the promotional needs of clients. . Full service agencies are not necessarily large organisations employing hundreds or even thousands of people.

Advantages of using a full service ad agency       In-depth knowledge and skills Obtaining negotiating muscle with the media Coordinating advertising and marketing efforts Use services only when they are needed Availability of high-caliber creative talent Potential cost efficiencies .

Disadvantages of using a full service ad agency       Some control is lost Larger clients are favored over small clients Occasionally inefficient in media buying Specialists approach client problems in a stereotyped fashion Lack of cost accountability Financial instability of smaller boutiques .

Personal chemistry . Client retention rates. Creative reputation and capabilities. Production capabilities. Other services available. Media purchasing capabilities.Steps in selecting an advertising agency          The size of the agency. The relevant experience of the agency. Conflicts of interest.

Do background check with other firms and media agents.Steps in selecting an advertising agency        Identify and prioritize corporate goals. Initially screen firms based on credentials. capabilities. account executives and other personnel that will work with account. size. media buyers. Develop agency selection process and criteria. Request written and oral presentation. relevant experience and conflict of interests. Meet creatives. Request client references. .

Capabilities of an ad agency          Marketing & media planning Research & analysis Advertising campaigns – local. regional & national Creative concept / copywriting Logo / corporate identity development Graphic design & production Direct marketing programs Media placement Public relations / special event planning .

Ad agency Remuneration  Three methods used to compensate ad agencies  Commission  Negotiated fee  Percentage charges .

Compensation of Ad Agencies    Initially agencies just sold space for the media and made money Marketed space for the press and the magazines Paid on the basis of amount of space they sold by the media .

Media Commissions   Media commission is an amount paid by the media to an agency which has bought space or time for its clients Generally 15% on the space sold by an agency .

which reduce the account‘s profitability for the agency .Reasons for losing clients     The clients dissatisfaction with the agency‘s performance with regard to advertising quality or service Poor communication between the client and the agency personnel hinders a good working relationship Personality clashes between client and agency personnel Unrealistic client demands.

the advertising agency is viewed as unsuitable and the agency changed . Changes in the client‘s marketing strategy may lead to change of agency. there is a conflict of interest as two close competitors may be on the merged agency‘s account list.Reasons for losing clients     New managers in client‘s organisation may want to use an agency with which they already have established ties. When the company‘s sales decline. Often when agencies merge.

either may think the other unsuitable and sever the ties .Reasons for losing clients   The client may insist upon adopting a compensation method to which the agency disagrees When some companies or agencies outgrow in size.

Advertising Campaign .

Advertising Campaign  An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). .

What is an ad campaign?      Identification of consumers wants & needs Development of the right sales message Delivery of the sales message to the identified prospects Measurement of the effort or impact of the advertising sales message Integration of the advertising sales message with other forms of marketing communications. .

Comprehensive advertisement campaign (steps)        Situation analysis Marketing objectives Ad budget Message strategy: communication goals Media selection Implementation Control & Evaluation .

. Make media decisions.Steps in Creating an Advertising Campaign Determine the advertising objectives. Make creative decisions. Evaluate the campaign.

Creative Decisions Identify Product Benefits Components of Creative Decisions Develop and Evaluate Advertising Appeals Execute the Message Evaluate the Campaign’s Effectiveness .

speaks to their wants or need.What is an Advertising Appeal?   The approach used in an advertising message to attract the attention or interest or interest of consumers and influence their feelings toward the product. and excites their interest. . service or cause Something that moves people.

Common Appeals Vanity and egotism Profit motive Fun and pleasure Health concerns Convenience Common Message Appeals Love Admiration/worship Sex Fear .

Advertising Appeals Fear  Humour  Sex  Music  Rational  Emotions  Scarcity  .

Deciding an Advertising Appeal     Review Creative Brief (specifically objectives section) The nature of the product The preferences of the client (very important) Common sense and gut feeling .

Fear Appeal    Increases viewer interest in the ad and the persuasiveness of the ad Used with health and beauty products. insurance Most experts believe that a moderate level of fear is most effective . idea marketing.

Fear Appeal Print Ad Example This ad reminds people of the dangers of overexposure to the sun. .

Should be related directly to customer benefit. .Humour Appeal     Used in 30% of all advertisements. Excellent at capturing attention. the joke can overpower the message. Or else. Score high in recall tests.

Ethnicity.g.Humour Appeal  Impact of humour on advertising           Humour attracts attention Humour does not harm comprehension (in some cases it may even aid comprehension) Humour is not more effective at increasing persuasion Humour does not enhance source credibility Humour enhances liking Humour that is relevant to the product is superior to humour that is unrelated to the product Audience demographic factors (e. Gender. age) affect the response to humourous advertising appeals The nature of the product affects the appropriateness of a humourous treatment Humour is more effective with existing products than with new products Humour is more appropriate for low-involvement products and feeling-oriented products than for high-involvement products .

Humor Appeal .

Sex Appeal      Subliminal techniques Nudity or partial nudity Sexual suggestiveness Overt sexuality Sensuality .

 Often interferes with message comprehension .  Brand recall is lower.  Often leads to strong feelings about the advertisement.Are Sex Appeals Effective? Research Results  Sex and nudity do increase attention.  Rated as being more interesting.

The presence of an attractive model produces higher purchase intentions when the product is sexually relevant than if it was not sexually relevant.Factors to Consider When Using Decorative Models     The presence of female (or male) decorative models improves ad recognition. Attractive models produce a higher level of attention to ads than less attractive models. . but not brand recognition. The presence of a decorative model influences emotional and objective evaluations of the product among both males and female audiences.

. Should consider using ―regular person‖ models.Using Sex Appeals Effectively       Be aware of differences in the international arena. size. ethnicity and gender. Consider shifting to more sensuality. Be careful sex does not overpower advertisement. Should utilize a variety of models in terms of age. Should be an integral part of the product.

Music Appeals

Has intrusive value. Gains attention and increases the retention of visual information. Can increase persuasiveness of an advertisement. Design Questions
 What

role will music play?  Will a familiar song be used or new song created?  What emotional feeling should song solicit?  How does the music fit with the message of the ad?

Rational Appeals


Print media is well-suited for rational appeals. Used by business-to-business advertisers. Well-suited for complex and high involvement products.

Emotional Appeals

Based on three ideas:
 Consumers

ignore most ads.  Rational ads go unnoticed.  Emotional ads can capture attention.

  

Viewed by creatives as key to developing brand loyalty. Uses peripheral processing route. B-to-B advertisements using more emotional appeals. Works well when tied with other appeals.

This ad for a nonprofit animal rights and rescue group draws on viewers‘ sympathies toward animals.

Emotions Used in Advertisements
       

Trust Reliability Friendship Happiness Security Glamour/luxury Serenity Anger

   

Protecting loved ones Romance Passion Family Bonds
   

with parents with siblings with children with extended family members

Emotional Appeal
This ad by iparty.com reminds viewers of the fickle nature of children.

Encourages customers to take action. sweepstakes and coupons. Often tied with promotion tools such as contests. .Scarcity Appeals     Based on limited supply or Based on limited time to purchase.

What media to use? Media Planning and Types    What channel will be most effective to reach target market(s) Depends heavily on promotional objectives What is it the company wants to convey? Action of the product itself? Credibility of company or service? Brand name? .

Major Types of Advertising Media Newspapers Magazines Radio Television Outdoor Media Internet Alternative Media .

Considerations for selecting Media  The media mix decisions  Cost per contact  Reach  Frequency  Target audience characteristics  Medium‘s flexibility  Noise level  Life span of medium .

Advertising Research     Ad effectiveness Media research Relationship surveys Motivation surveys .

UNIT II ADVERTISEMEN T MEDIA .

Media Plan  A document that spells objectives. strategies and tactics of reaching a target audience through different media vehicles .

radio. direct mail Media vehicle: specific carrier within a medium: Time magazine or Today Show . ―Best‖ means largest part of market at best price and in best media environment for the message Media/Medium: general category as TV.Media Planning    Finding the best way to get the message to the target market. magazines. newspaper.

Steps in Media planning process        Target audience analysis Media objectives Selection / buying media Tactics Scheduling Budgeting Evaluation .

Sources of information in media planning  Creative sources Theme  Message  Research   Marketing sources Distribution patterns  Market sales  Rival‘s patterns   Media sources Popularity of media  Profiles  Cost forecasts  .

5 main functions of a media buyer      Provide information to media planners Select the media Negotiate cost Monitor the media plan performance Evaluate media choices after the campaign .

Buying terms       Exposures Reach Coverage (waste coverage) Frequency Exposures Gross Impressions .

Media Planning and Buying Outline    Media: still big business Setting media objectives Developing media strategies  Media selection procedures Media buying functions Media buyer‘s special skills Global media buying Staging a media plan     .

Media: Still Big Business    Media consolidation: a new perspective The aperture concept in media planning Media planning information sources .

Setting Media Objectives    Finding target audiences in media opportunities Sales geography Timing .

Setting Media Objectives     Duration: how long to advertise? Schedule and the advertising budget Consumer use cycles Competitive advertising .

Developing Media Strategies  Target audience strategies: new technology of measurement Retail scanners  Database developments  Marketing mix modeling  Internet audience measurement  112 .

Developing Media Strategies    Geographic strategies: allocating media weight Timing and duration strategies Size and length strategies 113 .

Media Selection Procedures  Audience measures used in media planning Gross impressions  Gross rating points   Reach and media planning 114 .

Media Selection Procedures  Frequency and media planning Average frequency  Frequency distribution   Combining reach and frequency goals 115 .

Media Selection Procedures  Cost efficiency as a planning dimension Cost per thousand  How to calculate CPMs  Cost per rating   Selecting and buying acceptable media 116 .

Media Buying Functions       Providing information to the media planner Selecting media vehicles Negotiating media prices/authorizing the buys Monitoring vehicle performance Post-campaign analysis Billing and payment 117 .

Media Buyers‘ Ability to Negotiate     Vehicle performance Unit costs Preferred positions Extra support offers 118 .

Changes in Media Buying       Media buying services Online media buying Global media buying Maintaining plan performance Monitoring audience research Scheduling and technical problems 119 .

Staging a Media Plan     Background and situation analysis Media objectives and aperture opportunities Strategy: selection of media The flow chart: scheduling and budgeting allocation 120 .

and Impact Major Media Type Options Media Habits of Target Consumers Nature of the Product Type of Message Cost Specific Media Vehicles Specific Media Within a Given Type (e.) Balance Media Cost Against Media Factors: Audience Quality & Attention.g.Issues in Selecting Advertising Media Reach. E..R. Frequency. Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing .

Type and Choice criteria .

Major Types of Advertising Media Newspapers Magazines Radio Television Outdoor Media Internet Alternative Media .

less audience selectivity Direct Mail Advantages: Audience selectivity. good local market coverage. timeliness. motion. high attention. no ad competition within same medium. “junk mail” image . fleeting (lasting for a brief time) exposure. flexibility. small pass-along audience Television Advantages: Combines sight.Profiles of Major Media Types Newspapers Advantages: Flexibility. poor reproduction quality. high reach. sound. appealing to senses Limitations: High absolute costs. allows personalization Limitations: Relative high cost. high clutter. high believability Limitations: Short life.

low message competition Limitations: Little audience selectivity. good pass-along readership Limitations: Long ad purchase lead time. low cost Limitations: Audio only. no guarantee of position Outdoor Advantages: Flexibility. fragmented audiences Magazines Advantages: High geographic and demographic selectivity. fleeting exposure. credibility and prestige.Profiles of Major Media Types Radio Advantages: Mass use. creative limitations . lower attention. high repeat exposure. high geographic and demographic selectivity. long life. high-quality reproduction. low cost.

TV and radio. also have inherent advantages and disadvantages. Broadcast media. Great ads will fail if the media chosen do not reach the right audiences.Which Media: Print.   15–126 . Newspapers and magazines have inherent advantages and disadvantages. Television or Radio? 1.

Newspapers  Newspapers $48.2 billion spent on newspaper ads in 2004  Ideal for reaching narrow geographic area  Facing circulation declines  15–127 .

Newspapers Advantages Range of market coverage is excellent  Positive attitude towards newspapers  Geographic selectivity  Tremendous flexibility  Creative opportunities  Credibility  Audience interest  Cost  Provide a bridge between national and local advertisers  15–128 .

Newspapers Disadvantages  Short life   Limited segmentation Certain groups are not reached    Creative constraints Poor reproduction Cluttered environment 15–129 .

Types of Newspapers  Target Audience  General  population  Business  Ethnic  Frequency of Publication  Daily  Weekly Geographic coverage  Metropolitan  State  National area 15–130 .

Categories of Newspaper Advertising  Display Advertising  Display advertising  Co-op advertising  Inserts  Preprinted insert  Free-standing insert  Classified Advertising 15–131 .

Measuring Newspaper Audiences  Circulation  Paid circulation  Controlled circulation  Readership 15–132 .

newspapers will have to: Provide in-depth coverage of local issues.  Become more mainstream in integrated brand promotions relating to new media.  Maintain role as local source for consumer information.  Provide follow-up reports of news.  Increase coverage of national and international events.Future of Newspapers   Survival of newspapers depends on their ability to evolve. In the future.  15–133 .

Types of Magazines Audience  Geography  Demographics  Editorial diversity  15–134 .

Magazine Advantages and Disadvantages  Advantages  Audience  Disadvantages  Limited selectivity  Audience interest  Creative opportunities  Long life flexibility  Lack of immediacy  Limited reach and frequency  Clutter  High Cost .

and repetition  Audience selectivity  Narrowcasting 15–136 .Advantages of Television  Advantages  Creative opportunities  Coverage. reach.

Disadvantages of Television  Disadvantages  Brief message  High absolute cost  Poor geographic selectivity  Poor audience attitude and attentiveness  Clutter 15–137 .

Radio Advantages and Disadvantages  Advantages  Cost  Reach  Disadvantages  Poor and frequency  Target audience selectivity  Flexibility and timeliness  Creative opportunities  Boon for blind audience attentiveness  Creative limitations  Fragmented audiences  Chaotic buying procedures .

Reach and Frequency of Advertisements .

It can also be expressed as ―cume‖ and ―unduplicated audience.‖ . Reach is simply the percentage of persons in a target population that is exposed to an advertising schedule at least once.Reach and Frequency   Reach is the number of different people who are exposed an advertising message at least once.

One person may see your commercial three times over your advertising flight. Frequency simply measures the number of times a person sees your message in a given advertising schedule. That would be a frequency of three. .Reach and Frequency   Frequency is the number of times they are exposed to the message.

Media Strategy .

Media Strategy Media strategy is the overall game plan which is geared towards straightening the communication Elements of media strategy   Media mix  Usage of media  Geographic allocation  Scheduling strategy .

Media Strategy focuses on


 

Target market study Deciding the ad message Matching media and target group Media selection

Target market study

  

Demographic data, i.e. age sex, income, religion, language, etc. Psychographic data (perception, attitude, etc.) Consumer profile (tastes & Preferences) Media profile; media habits & preference of the target audience

Media Scheduling


    

Time & Space Reach & Frequency Target Audience Channel carrying messages Effective reach Objectives of the communication Marketing goals

UNIT III
DESIGN & EXECUTION OF ADVERTISEMENTS

Message Development

Message Development

Use definition and explanation when the message is written or spoken For many circumstances, visuals are more effective for demonstration, comparison and contrast Use any visual, whether print, video, or interactive, to compare two products or to show before-and-after scenarios Television is particularly good for demonstration because it can show a sequence of operations.

Different Types of Advertisements .

.

Creative side of advertising       An unexpected advertising An unexpected association Catchy phrasing A play on words Analogy and metaphor Familiar and strange .

research and learn everything about the problem Look at the problem from at every angle.Stages in Creative Process  Immersion  Read. develop ideas.  Incubation   Illumination  . often at the least expected time. generate as many as alternatives as possible  Ideation   Brain fog  You may hit a blank wall and want to hit a gap Try to put your conscious mind to rest to let your subconscious take over Unexpected moment when the idea comes.

Creating Print advertisement      Headline Subhead line Body copy Address Images (display copy) .

The Headline: Functions • Gives news about the brand • Emphasizes brand claims • Gives advice to the reader • Selects targeted prospects • Stimulates curiosity • Establishes tone & emotion • Identifies the brand .

The Headline Guidelines • Be persuasive • Appeal to self-interest • Inject maximum information • Limit to five-eight words • Include the brand name • Entice to read body copy • Entice to examine visuals • Never change typeface • Never rely upon body copy • Keep it simple & familiar 12–156 .

Subheads: Functions • Include important information not communicated in the headline • Communicate key selling points or information quickly • Stimulate more complete reading of the ad .

 .Subheads: Guidelines  The longer the body copy. Creative directors frequently minimize their use. the more appropriate the use of subheads.

The Body Copy Techniques • Straight-line copy • Dialogue • Testimonial • Narrative • Direct response copy .

The Body Copy Guidelines • Use present tense • Use singular nouns and verbs • Use active verbs • Use familiar words and phrases • Vary sentence and paragraph length • Involve the reader • Provide support for the unbelievable • Avoid clichés and superlatives .

 Cybercopy is often direct response.  Other ads pop up. .Copywriting for Cyberspace   Cybercopy is often rooted in techno-speak It is a medium where audience has a different meaning than in traditional media  Audience often comes directly to ads—not passive.  Copy is closer to print than broadcast.

Copywriting for Broadcast Advertising   Broadcast ads offer a fleeting message. Broadcast employs more sensory devices which can attract or distract consumers from understanding the message. .

Writing Radio Copy     Radio listeners are not active Radio has been called ―verbal wallpaper‖ Radio can be the ―theater of the mind‖ Formats  Music  Dialog  Announcement  Celebrity announcer .

and specific audience 12–164 . place.Writing Radio Copy:Guidelines     Use familiar language Use short words and sentences Stimulate the imagination Repeat the product name    Stress the main selling points Use sound and music carefully Tailor the copy to the time.

submit estimate 5. Solicit bids from production houses 2. award job.Radio Production Process 1. Plan special elements. Mix the sound 4. produce the tape 8. Duplicate the tape and ship to stations . Review bids. Select the talent 7. Edit the tape 6. Review the production with the advertiser 3.

Writing Copy for TV  Can create a mood   Opportunity to demonstrate with action Words should not stand alone—use visuals/special effects Precisely coordinate audio/visual Storyboard is the roadmap   .

Television Advertising Formats     Demonstration Problem and solution Music and song Spokesperson    Dialogue Vignette Narrative 12–167 .

Guidelines for Writing TV Copy      Use the video Support the video Coordinate the audio with the video Entertain but sell the product Be flexible    Use copy judiciously Reflect the brand‘s personality and image Build campaigns 12–168 .

Slogans  Short phrase used to . . . identity or position for a brand or organization  Good slogans can  Be an integral part of brand‘s image  Act as shorthand identification for the brand  Provide information about the brand‘s benefits .  Increase memorability  Help establish an image.

Common Mistakes in Copywriting     Vagueness Wordiness Triteness Creativity for creativity‘s sake .

Copy Approval Process Agency Account Management Team Legal Department Account Planning Client Copywriter Product Manager. Brand manager. Marketing Staff Senior Writer Creative Director Senior Executives .

 Visuals allow placing the brand in a social context. 13–172 .  Visuals can be protected legally.  Visuals are more portable than words across cultures.Art Direction and Production  The Evolution from Words to Pictures  Improved technology  Advantages of visuals over text  Brand images are built better with visuals.

or image  Stimulate reading of the body copy  Create the social context for the13–173 brand . painting. or computer-generated art in the ad attention  Make the brand heroic  Communicate product features or benefits  Create a mood. photography.Illustration  Definition:  The  Purposes:  Attract actual drawing. feeling.

Illustration Components Size Color Medium .

Illustration Formats   How the product or brand will appear as part of the illustration Formats include  Emphasizing the social context or meaning of the product  More abstract formats  Must be consistent with the copy strategy .

Strategic and Creative Impact of Illustration  Attracts attention of target segment and stimulates information processing Communicates brand value relative to target‘s decision making criteria Visually presents the creative strategy Creates a mood for the brand Creates an image for the brand Makes concrete the values and benefits of the brand that may be intangible      .

Design The structure and plan behind the structure for the aesthetic and stylistic aspects of a print advertisement .

Principles of Design Balance (Formal) 13–178 .

Principles of Design Balance (Informal) 13–179 .

Principles of Design Proportion 13–180 .

Principles of Design Order 13–181 .

Principles of Design Unity .

Principles of Design Emphasis .

Thumbnails 2. Mechanicals . Comprehensive 4. Rough layout 3.Layout 1.

Print Production Processes • Letterpress • Gravure • Offset lithography • • Flexography Electronic. inkjet • Computer print production . laser.

Typography .

Revision can be done instantaneously. .Art Direction and Production in Cyberspace      Cyberspace is its own medium. it is closer to print than TV. The audience is not passive. Persuasive content versus entertainment is a challenge. At present.

It gets you to notice the brand. tell stories. set moods.   . TV production is complex.Art Direction in Television Advertising    TV has changed the face of advertising. TV is about moving visuals. with many people and requires tremendous organizational skills. It can leave impressions.

The Creative Team in Television Advertising Agency Participants • • • • • • Creative Director (CD) Art Director (AD) Copywriter Account Executive (AE) Executive Producer Producer Production Company Participants • • • • • • Director Producer Production Manager Camera Department Art Department Editors .

Creative Guidelines for TV Advertising      Use an attention-getting opening Emphasize the visual Coordinate the audio with the visual Persuade as well as entertain Show the product .

Production Process for TV Advertising  Preproduction  Multiple activities that occur prior to filming the commercial that occur during filming  Production (shoot)  Activities  Postproduction  Activities that occur after filming to ready the commercial .

sets. editorial houses. and music suppliers Selection of location. and cast .Preproduction Process for TV Advertising Storyboard and script approval Review of bids from production houses and other suppliers Budget approval Creation of a production timetable Assessment of directors.

Production Process   Filming the commercial. or ―the shoot‖ Involves large numbers of diverse people: Creative performers  Trained technicians  Skilled laborers    Sets often feature tension and spontaneity Typical commercial costs $100.000 .000 to $500.

Postproduction Process Screen dailies Edit film Produce search track Review rough cut (agency) Review rough cut (advertiser) Edit offline Edit online Record announcer Record music Mix film and sound Transfer film to videotape Prepare copies of tape Send tapes to TV stations .

TV Production Options Film Videotape Live Production Still Production Animation .

. Deliverability and Flexibility. Tracking. Integration. Interactivity.  Click-through   Cost.Advantages of Advertising on the Internet     Target Market Selectivity.

com Yahoo Bartlesmann USA Internactive * ranked by impressions . Netstock Investment AmeriTrade Holdings eDiets.Who Advertises on the Internet?  Top 10 Internet Advertisers*           Time Warner Microsoft Qwest Bank One Corp.

Types of Advertising on the Internet     Banner ads Sponsorship Pop-under (new and annoying) E-mail communication Permission marketing  Viral marketing     Streaming video and audio Corporate home pages Virtual malls .

Measuring Internet Advertising Effectiveness  Technical aspects of the Internet measurement problem The caching complication   Internet measurement and payment .

Future of Advertising and the Internet  Introduction of new technologies such as wireless communication and streaming video—Broadcast Web Mergers and partnerships Merging traditional and new media Developing a new advertising revenue model    .

Power Struggles and Sales Promotion  Sales promotion plays a key strategic role in the channel of distribution  Big name brands must be supported with sales promotion and POP to get the support of retailers through self space allocation. Brand marketers spend $30 billion a year on sales promotion and POP to gain favored retailer treatment and to provide incentives to household consumers and business buyers.  The top 10 retailers control 43% of all packaged goods sales so they can dictate which brands get how much shelf space.  .

Sales Promotion  Using incentives to create a perception of greater brand value  Consumer Market  Induce household consumers to purchase a firm‘s brand Motivate distributors. wholesalers. and retailers to stock and feature a brand  Trade-Market   Business Buyer  Cultivate buyers in large corporations who make purchase decisions .

Sales Promotion Examples Coupons Gift Cards Incentives Premiums Trade shows Allowances Sampling Brand placements Contests Sweepstakes Price-off deals Loyalty programs .

long term demand Encourage brand switching vs. promote image Immediate results vs. long term effects Measurable results vs.Sales Promotion vs. Advertising    Short term demand vs. difficult to measure 18–204 . brand loyalty Induce trial use vs. encourage repeat purchase    Promote price vs.

Combat or disrupt competitors 6. Stimulate repeat purchases 3. Introduce a new brand 5. Stimulate larger purchases 4. Contribute to IMC 18–205 .Objectives for Consumer-Market Sales Promotion 1. Stimulate trial purchase 2.

Consumer-Market Sales Promotion Techniques 1. 3. 5. 4. 10. Coupons Price-off deals Premiums Contests/sweeps Samples and trials 6. 8. 2. 9. Phone gift cards Brand placements Rebates Frequency programs Event sponsorship 18–206 . 7.

Coupons  Entitles a buyer to a price reduction for a product or service  Advantages  Give a discount to price sensitive consumer while selling product at full price to others  Induce brand switching  Timing and distribution can be controlled  Stimulates repeat purchases  Gets regular users to trade up within a brand array .

Coupons (cont‘d)  Disadvantages  Time of redemption cannot be controlled  No way to prevent current customers from redeeming coupons  Coupon programs require costly administration  Fraud is a serious. chronic problem .

.  Increases consumers‘ belief in the value of a known brand.Price-Off Deals   Offering consumers a reduced price at point of purchase through specially marked packages Advantages Is controllable by manufacturer.  Affects positive price comparisons.   Disadvantage  Retailers believe it creates inventory and pricing problems.

   Free premiums provide item at no cost. useful item .Premiums and Advertising Specialties  Premiums  Free or reduced price for an item with the purchase of another item. Self-liquidating premiums require consumers to pay most of the cost of the item Advertising specialties:  A message placed on a free.

.  Difficult to get an IBP message across in a game.  Consumers may focus on the game rather than the brand. Sweepstakes: winners picked by chance Both create excitement and interest  But…  Legal and regulatory requirements are complex.Contests and Sweepstakes    Contests: consumers compete for prizes based on skill or ability.

Samples and Trial Offers  Sampling  Giving a consumer an opportunity to use a brand on a trial basis with little or no risk – Newspaper – On-package – Mobile  Types of sampling In-store  Door-to-door  Mail   Trial offers Used for more expensive items  Consumer tries product for a fixed time  .

 With phone time  Or with preset spending limits  Examples  Offers from Lexus. Oldsmobile.Phone and Gift Cards  Manufacturers offer either for free or for purchase debit cards. . and The Gap.

Rebates

Money back offer requiring the buyer to mail a request for money back from the manufacturer. Often tied to multiple purchases. Many consumers fail to bother sending the request.

 

18–214

Frequency Programs

Also known as ―continuity programs‖
 Offer

customers discounts or free products for repeat patronage  Common in the airline, travel, and restaurant businesses

Objectives for Promotions in the Trade Market

Objectives: Use a ―push‖ strategy
 Push

a product into the distribution channel towards the consumer
 Obtain

initial distribution  Increase order size  Encourage cooperation with consumer market sales promotions  Increase store traffic

18–216

Trade-Market Sales Promotion Techniques
 

Incentives: Push money
Allowances: Merchandise allowances, slotting fees, bill-back allowances, offinvoice allowances Sales Training Programs Cooperative (Co-Op) Advertising

 

18–217

Business Market Sales Promotion Techniques
  

Trade Shows Business gifts

Premiums and advertising specialties
Trial offers Frequency programs

 

18–218

Sales Promotion, the Internet, and New Media

Sampling removes risk associated with consumer trial.
Internet firms use incentives to make Web sites ―sticky.‖ Internet is used to implement sales promotions and distribute coupons.

Risks of Sales Promotion      Creates a price orientation Borrows from future sales Alienates consumers Time and expense Legal considerations .

Objectives for P-O-P Advertising Draw consumers‘ attention to a brand in the retail setting.  Stimulate trial use by users of competitive brands. to convey primary product benefits.Point-of-Purchase (P-O-P) Advertising   Materials used in the retail setting to attract shoppers‘ attention to a brand. or highlight pricing information.  Stimulate increased or varied usage of the brand.  Maintain purchase loyalty among brand loyal users.  .

increase turnover. retailers are trying to enliven the retail environment. P-O-P promotions can help win precious shelf space and exposure in a retail setting.  To combat losing business to online shopping. and possibly distribute coupons or sweepstakes entry forms.  A P-O-P display is designed to draw attention to a brand. and P-O-P displays are one strategy.  .P-O-P Advertising and the Trade and Business Markets  Product displays and information sheets encourage retailers to support one distributor or manufacturer‘s brand over another.

Coordination Challenge    Message coordination Media coordination Research conclusions:  Short-term  Short-term  Rare  Most effects can be dramatic. power effects result from advertising and sales promotion being used together. effects are often not profitable. . for long-term effects to occur.

Common purposes of direct marketing: Close the sale  Identify prospects for future contacts  Provide in-depth information  Seek information from consumers  Foster brand loyalty  .Direct Marketing   Interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.

uses many formats mail is expensive. flexible.  Mail delivery dates can be unpredictable.  Disadvantages  Direct  May cost 15 to 20 times more to reach a person with a direct mail piece than with a TV commercial  Mail lists can be plagued with bad addresses.Direct Mail  Advantages  Selective. . lends itself to testing. little waste.

e-mail is an increasingly popular tool for marketers.E-Mail  Bulk e-mail is known as ―spam‖  However.  Advantages Cheap  Good response rates    Netiquette suggests getting consumer‘s permission to send product information Avoid bulk e-mailings .

However all conventional media can be used. measurable response. Most common media used are direct mail and telemarketing.Direct Response Advertising  Multiple media can be deployed to generate an immediate.   .

Direct Response Advertising in Other Media • Magazines use bind-in insert card – Toll-free 800 numbers are vital to direct marketers using ads in newspapers and magazines • Infomercial – Long television advertisement – Range in length from 3 to 60 minutes – Keys to success • Testimonials • Frequent call to actions • Ensure same-day response .

Marketing databases can lead to interdepartmental rivalries.Coordination Challenge  Functional specialists across several media need to work together.    One solution: the marcom manager . Growth of direct marketing often means cuts in other promotional budgets.

Public Relations     Goal: maintain positive image of company in the public‘s mind Gain public understanding and acceptance Send press releases Several important functions .

Functions of Public Relations Press Relations Product Publicity Corporate Communication Public Affairs Lobbying Employee and Investor Relations Crisis Management .

Public Relations Tools New Product Publicity Product Placement Consumer Education Event Sponsorship Issue Sponsorship Internet Web Sites .

Public Relations Functions and Tools    Know the difference and be able to identify them What particular advantages does each tool have? Unfavorable publicity  Vioxx article  Crisis management .

Ogilvy on advertising   I hate rules What is the big idea      Did it make me gasp when I saw it? Do I wish I had thought of it myself? Is it unique? Does it fit the strategy to perfection? Could it be used for thirty years?      If it doesn‘t sell. . they don‘t produce food advertising Headlines of ten words sell more merchandise than short headlines You cannot bore people into buying your product The more people trust you. the more they buy from you. it is not creative When people aren‘t having any fun.

Headline & subheading Headline: Are you good at finding fault Sub headline : Make it a career Post graduate diploma in banking and software testing Marveric / LIBA .

Media Research  Media research is concerned with collection of data on reach and exposure of each media in general and of vehicles within each media in particular. Such data provide quantitative and qualitative information on the basis of which objective decisions regarding media and vehicle selection can be made. .

Areas in Media Research       Investigation of single medium or a single vehicle for advertising effectiveness Comparison of several media. or of several vehicles of a single medium Studies in media mix & vehicle mix Basic research and methodological studies Image studies of media and vehicles Reviews and discussions of advertising and research methods .

Functions of Media Research   The primary function of media research is to find out the most efficient media by measuring & comparing different media & different vehicles in terms of ‗vehicle distribution‘. In case of broadcast and non-broadcast media it refers to the number of programmes distributed on each channel . Vehicle distribution refers to number of copies of a newspaper or magazine circulated within a region or the entire country. ‗vehicle exposure‘ & ‗advertising exposure‘.

Functions of Media Research   Vehicle exposure refers to the number and kind of people reading / glancing newspaper or magazine. . It also includes the umber of times each person reads an average issue. Advertising exposure refers to the number of people exposed to advertising message and also to the number of times each person exposes himself or herself to the advertising messages.

Media Research focuses on    Distribution measurement/media coverage Exposure measurement Audience measurement .

Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products. Short-term Incentives to Encourage Trial or Purchase.The Marketing Communications Mix Advertising Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. . Sales Promotion Public Relations Personal Selling Personal Presentations.

Advertising PROS • Message can be repeated for exposure • Very expressive -.can be used to create image • Can reach a geographically diverse audience CONS • Can be tuned out • Can be expensive • Hard to measure results .

Personal Selling PROS • Interactive .can be customized • Allows a relationship to develop • Better understanding of customer needs • Buyer will pay more attention to the message CONS • Expensive • Can only reach a small number of consumers .

Publicity PROS • Very believable • ―Free advertising‖ CONS • Hard to implement • Hard to control • Hard to measure its effectiveness .

Sales Promotion PROS • Attract attention • Strong incentives will induce consumers to act • Quick response • Encourages trial of product CONS • Can create price sensitive customers • Can be costly • Easy for competition to imitate .

Channels of Sales Promotions MANUFACTURER Trade Promotions Consumer Promotions Pull Push RETAILER Push Retail Promotions CONSUMER .

PULL Consumer-Promotion Objectives Consumer-Promotion Tools Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building Samples Coupons Cash Refunds Price Packs Premiums Advertising Specialties Patronage Rewards Contests Sweepstakes Games Point-of-Purchase Displays .Consumer Promotion -.

PUSH Trade-Promotion Objectives Trade-Promotion Tools Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Price-Offs Allowances Premiums Patronage Displays Rewards Discounts Push Money Specialty Advertising Items Buy-Back Guarantees Free Goods Contests .Trade Promotions -.

Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan .

because all other decisions build upon it. Is the budget sufficent? Is the media message correct? Are the media outlets appropriate? All of these questions will depend upon the target audience‘s size. etc. motivations. . concerns.Target market selection This is the single most important decision.

Start by describing with demographic data Target market of a national chain of child day-care centers: ―Female household heads aged 25 to 34 employed outside the home who have one or more children under age 6 at home and live or work within within 10 miles of a current center.‖ .

while cost of the service is an important. They are concerned about where and with whom they leave their children.But need to add life-style and psychographic profile data ―This group aspires to have both a successful career and family. They are primarily outerdirected Emulators and Achievers in terms of VALS categories.‖ . concern. These women are serious about child-rearing responsibilities and are avid readers of books and articles on the subject. Heir child‘s ―experience‖ is of crucial importance. but secondary.

Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan .

Advertising is only one of many factors impacting whether a sale occurs. 2.Problem with using $ of revenue or units sold as an advertising objective 1. . Advertising has a carryover / delay effect that extends beyond a calendar or fiscal year.

Response Hierarchy Models Stages AIDA Model Hierarchy-ofEffects Model Awareness InnovationAdoption Model Communications Model Exposure Cognitive stage Attention Knowlege Interest Liking Awareness Reception Cognitive response Interest Attitude Affective stage Desire Behavior stage Action Preference Conviction Purchase Evaluation Trial Behavior Intention Adoption .

Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan .

Issues to consider in setting advertising budget Product Life Cycle Market share Competitive clutter Product Substitutability .

Tasks & Costs.Setting Advertising Budgets Affordable Method Percentage-of-Sales Method Setting Promotion Budget at the Level the Company Thinks They Can Afford. . Competitive-Parity Method Setting Promotion Budget at a Certain % of Current or Forecasted Sales Objective-and-Task Method Setting Promotion Budget to Match Competitors’ Outlay Setting Promotion Budget by Defining Objectives.

Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan .

) Balance Media Cost Against Media Factors: Audience Quality & Attention.R.g. E. and Impact Major Media Type Options Media Habits of Target Consumers Nature of the Product Type of Message Cost Specific Media Vehicles Specific Media Within a Given Type (e. Frequency..Issues in Selecting Advertising Media Reach. Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing .

Classification of Advertising Timing Patterns Level Rising (2) Falling (3) Alternating (4) Concentrated (1) (5) (6) (7) (8) Continuous (9) (9) (10) (11) (12) Intermittent Number of messages per month Month .

Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan .

Factors Impacting the Receipt of a Message Selective Attention Selective Distortion Selective Retention .

Likeability .Issues to Consider in Designing the Message Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Source Expertise. Trustworthiness.

Typical Message Execution Styles Comparisons Slice of Life Real or animated Symbol Mood or Image Lifestyle Demonstration Spokesperson Musical Fantasy Scientific Evidence Humor .

Stylistic Approaches • • • • Can present many points quickly Cost less than drama to produce Audience can become distracted Discount all or part of the facts DRAMA COMBINATION LECTURE • Characters speak to each other – not the audience • Consumers must infer lessons • Conclusions are more likely to be accepted .

Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan .

Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan .

Advertising Evaluation Advertising Program Evaluation Communication Effects Is the advertisement meeting the specific communication objective? Sales Effects (to the extent possible) Is the Ad Increasing Sales? .

Brand Names and Branding Issues .

A name or symbol that distinguishes the goods or services of one seller group from those of competitors..A brand is…. .

Six Levels of Meaning User Culture Personality Attributes Benefits Values .

Brand Equity The set of assets and liabilities linked to a brand‘s name or symbol that add to or subtract from the value provided by the core product or service. .

5 Levels of Customer Attitudes toward a brand Devoted to Brand Values the Brand (brand as friend) Satisfied & Switching Cost Satisfied Customer (no reason to change) No Brand Loyalty (customer will change) .

Components of Brand Equity Brand Awareness Brand Associations Brand Equity Perceived Quality Brand Loyalty .

Branding Decision Brand name or no brand name Most goods sold today are branded: National or manufacturer brands Private or store brands .

Brand Ladder versus Brand Parity .

• Help build corporate image . A different branded detergent to different market segments.Benefits of branding for the seller • Brand names make it easier for the seller to process orders and track down problems • Creates brand loyalty • Helps seller segment markets.

Strengthening the brand Develop Creative Advertising .

Strengthening the brand Sponsor well-regarded events .

Strengthening the brand Invite customer to join a club .

Strengthening the brand Invite public to visit your factory .

Strengthening the brand Create your own retail units .

Strengthening the brand Give support to social causes .

Strengthening the brand Be known as a value leader .

Strengthening the brand Develop a strong spokesperson or symbol to represent the company .

Good Brand Names Should Suggest something about product benefits .

Good Brand Names Should Suggest product qualities such as action or color .

Good Brand Names Should Be easy to pronounce. and remember . recognize.

Good Brand Names Should Be distinctive Not carry negative images in other languages .

Brands can become ―generic‖ in several ways • Company develops a unique product and does not also develop a generic description for competitors to use in identifying their version of the product. (EX: Sony Walkman personal stereos) If consumers use the brand name when referring to the product type. (EX: trampoline) • • . (EX: Aspirin instead of acetylsalicylic acid) When a brand acheives such a high marketshare that the brand ―becomes‖ the category.

Brand Strategies Product Category Existing New Brand Name Existing Line Extension Multibrands Brand Extension New Brands New Cobranding .

sizes. forms.Line Extensions Introduction of additional items in the same product category under the same brand name :new flavors. . etc. colors.

Multibrands Introducing new brands into the same product category All are Lever Brothers products .

Cobranding Two or more well known brands are paired in a single offering .

Brand Extensions Using an existing brand name to launch new products in other categories .

Brand Extension Decisions • Does the brand fit the product class? • Does the brand add value to the offering in the new product class (i.. the extension)? • Will the extension enhance the brand name and image? .e.

Factors Affecting Consumer Decision Making REFERENCE GROUPS VALUES / ATTITUDES CULTURE SITUATIONAL FACTORS NEEDS PLEASURE GENDER EDUCATION CONSUMER DECISIONS MARKETERCONTROLLED STIMULI PAST EXPERIENCE PERSONALITY FAMILY NEWS MAGAZINES RADIO TELEVISION DIRECT MEDIA MEDIA SOCIAL CLASS PRICE PACKAGING ADVERTISING PROMOTION PERSONAL SELLING LIFE-STYLE SUBCULTURES .

Identifying Target Segments: Market Segmentation Geography Demographics Lifestyles Psychographics Commitment Levels Usage Patterns Benefits .

Segmenting by Usage and Commitment  Advertising and promotion targeted to:  Heavy users  Nonusers  Brand-loyal users  Switchers/Variety seekers  Emergent Consumers .

Demographic Segmentation        Age Gender Race Marital Status Income Education Occupation .

Need recognition Functional or Emotional benefits 2. Purchase 4. Post-purchase use and evaluation Customer satisfaction Cognitive dissonance .The Consumer Decision-Making Process 1. Information Search and Evaluation Internal and External search Consideration Set Evaluative Criteria 3.

Cognitive Dissonance The feelings of doubt and concern after a purchase is made. 4. Dissonance increases when: 1. The purchase price is high There are many close alternatives The item is intangible (example?) The purchase in important The item purchased lasts a long time . 3. 5. 2.

Overview of Creativity  The Poets versus the Killers  The tension between creativity and ―selling‖ is about ―brand-meaning creation‖  Creating brands  Advertising  Creativity in general  The soul of advertising and branding .

Placement) Message Strategy Objectives Methods .Context of Message Strategy Advertising Strategy (Planning. Preparation.

Message Strategy: Objectives and Methods • Repetition ads • Slogan and jingle ads Promote brand recall Link a key attribute to the brand name • Unique selling proposition (USP) ads .

Message Strategy: Objectives and Methods (cont‘d) • Reason-why ads Persuade the consumer • Hard-sell ads • Comparison ads • Information-only ads • Testimonial ads • Demonstration ads • Advertorials • Infomercials .

Message Strategy: Objectives and Methods • Feel good ads • Humor ads • Sexual-appeal ads Affective Association .

Message Strategy: Objectives and Methods Scare the consumer into action Change behavior by inducing anxiety • Fear-appeal ads • Anxiety ads .

Message Strategy: Objectives and Methods Transform consumption experiences • Transformational ads Situate the brand socially • Slice-of-life ads • Product-brand placement • Short Internet Films Define the brand image • Image ads .

The Creative Team Copywriter Art Director Creative Team Creative Concept .

Copywriting and the Creative Plan Copywriting is the process of A creative plan is the guideline expressing the value and benefits a brand has to offer. . that specifies the message elements of advertising copy.

UNIT IV INTRODUCTION TO SALES PROMOTION .

.Power Struggles and Sales Promotion  Sales promotion plays a key strategic role in the channel of distribution  Big name brands must be supported with sales promotion and POP to get the support of retailers through self space allocation.

and retailers to stock and feature a brand  Trade-Market   Business Buyer  Cultivate buyers in large corporations who make purchase decisions . wholesalers.Sales Promotion  Using incentives to create a perception of greater brand value  Consumer Market  Induce household consumers to purchase a firm‘s brand Motivate distributors.

Sales Promotion Examples Coupons Gift Cards Incentives Premiums Trade shows Allowances Sampling Brand placements Contests Sweepstakes Price-off deals Loyalty programs 18–316 .

promote image Immediate results vs. encourage repeat purchase    Promote price vs. long term effects Measurable results vs. long term demand Encourage brand switching vs. Advertising    Short term demand vs. difficult to measure 18–317 .Sales Promotion vs. brand loyalty Induce trial use vs.

Importance of Sales Promotion    $107 billion in 2003 Growth rate: 4-8 percent Reasons for growth:  Demand for accountability  Short-term orientation  Consumer response to promotions  Proliferation of brands  Increased power of retailers  Media clutter .

Stimulate repeat purchases 3. Stimulate trial purchase 2. Introduce a new brand 5. Combat or disrupt competitors 6. Contribute to IMC . Stimulate larger purchases 4.Objectives for Consumer-Market Sales Promotion 1.

Phone gift cards Brand placements Rebates Frequency programs Event sponsorship . 4. 3. 9. 5. 2. Coupons Price-off deals Premiums Contests/sweeps Samples and trials 6. 10. 7. 8.Consumer-Market Sales Promotion Techniques 1.

Coupons  Entitles a buyer to a price reduction for a product or service  Advantages  Give a discount to price sensitive consumer while selling product at full price to others  Induce brand switching  Timing and distribution can be controlled  Stimulates repeat purchases  Gets regular users to trade up within a brand array .

chronic problem .Coupons (cont‘d)  Disadvantages  Time of redemption cannot be controlled  No way to prevent current customers from redeeming coupons  Coupon programs require costly administration  Fraud is a serious.

  Disadvantage  Retailers believe it creates inventory and pricing problems. .  Increases consumers‘ belief in the value of a known brand.Price-Off Deals   Offering consumers a reduced price at point of purchase through specially marked packages Advantages Is controllable by manufacturer.  Affects positive price comparisons.

Self-liquidating premiums require consumers to pay most of the cost of the item Advertising specialties:  A message placed on a free.Premiums and Advertising Specialties  Premiums  Free or reduced price for an item with the purchase of another item. useful item .    Free premiums provide item at no cost.

 Consumers may focus on the game rather than the brand. . Sweepstakes: winners picked by chance Both create excitement and interest  But…  Legal and regulatory requirements are complex.Contests and Sweepstakes    Contests: consumers compete for prizes based on skill or ability.  Difficult to get an IBP message across in a game.

Samples and Trial Offers  Sampling  Giving a consumer an opportunity to use a brand on a trial basis with little or no risk – Newspaper – On-package – Mobile  Types of sampling In-store  Door-to-door  Mail   Trial offers Used for more expensive items  Consumer tries product for a fixed time  .

and The Gap.Phone and Gift Cards  Manufacturers offer either for free or for purchase debit cards. .  With phone time  Or with preset spending limits  Examples  Offers from Lexus. Oldsmobile.

Many consumers fail to bother sending the request.Rebates  Money back offer requiring the buyer to mail a request for money back from the manufacturer. Often tied to multiple purchases.   .

travel.Frequency Programs  Also known as ―continuity programs‖  Offer customers discounts or free products for repeat patronage  Common in the airline. and restaurant businesses .

Objectives for Promotions in the Trade Market  Objectives: Use a ―push‖ strategy  Push a product into the distribution channel towards the consumer  Obtain initial distribution  Increase order size  Encourage cooperation with consumer market sales promotions  Increase store traffic .

offinvoice allowances Sales Training Programs Cooperative (Co-Op) Advertising   . slotting fees. bill-back allowances.Trade-Market Sales Promotion Techniques   Incentives: Push money Allowances: Merchandise allowances.

Business Market Sales Promotion Techniques    Trade Shows Business gifts Premiums and advertising specialties Trial offers Frequency programs   .

‖ Internet is used to implement sales promotions and distribute coupons. Internet firms use incentives to make Web sites ―sticky. and New Media  Sampling removes risk associated with consumer trial. the Internet.Sales Promotion.   .

Risks of Sales Promotion      Creates a price orientation Borrows from future sales Alienates consumers Time and expense Legal considerations .

 Maintain purchase loyalty among brand loyal users. or highlight pricing information. Objectives for P-O-P Advertising Draw consumers‘ attention to a brand in the retail setting.  Stimulate increased or varied usage of the brand.Point-of-Purchase (P-O-P) Advertising   Materials used in the retail setting to attract shoppers‘ attention to a brand.  Stimulate trial use by users of competitive brands. to convey primary product benefits.  .

 To combat losing business to online shopping. and possibly distribute coupons or sweepstakes entry forms. increase turnover. and P-O-P displays are one strategy.  . P-O-P promotions can help win precious shelf space and exposure in a retail setting. retailers are trying to enliven the retail environment.  A P-O-P display is designed to draw attention to a brand.P-O-P Advertising and the Trade and Business Markets  Product displays and information sheets encourage retailers to support one distributor or manufacturer‘s brand over another.

for long-term effects to occur. effects are often not profitable. . power effects result from advertising and sales promotion being used together.Coordination Challenge    Message coordination Media coordination Research conclusions:  Short-term  Short-term  Rare  Most effects can be dramatic.

UNIT V SALES CAMPAIGN .

What do we want to accomplish? Don‘t need product class Induce trial Switch to our brand Not yet buying Not yet users Buy from others Customer Occasional Regular Buy more when you buy Loyal Buy more often Don‘t leave me! .

Competitive parity is likely a waste of money 4. Percent of sales is invariably a mistake 3.Next we should ask … What should be the budget? 1. ―Affordability‖ is understandable—but nonstrategic 2. test and learn the ―Return on Advertising‖ . ―Objective and task‖ is usually the best  For mature products.

it‘s tempting to ask: Shouldn‘t we be doing more advertising? .Promotion Whenever sales aren‘t going well.

Integrated Marketing Communications ties together the five elements of the promotional mix .

4.Sales Promotion: General Rules 1. May be at the expense of bottom line Within an industry. It‘s highly effective   Driving traffic … May increase ―top-line‖ (Revenue) 2. trains customers to be brand-disloyal May rob Sales from future periods  When? . 3.

Designing of sales promotion campaign        Marketing Communication Opportunities What Communication Channels Will You Use Determine Your Objectives Determine Your Promotion Mix Develop Your Promotional Message Develop the Promotion Budget Determine Campaign Effectiveness .

Need for Product Promotion       To introduce a new product in the market To influence the public with the help of new uses of the product To increase the frequency of purchase by each buyer To encourage dealers to stock more goods To withstand in the competitive field To increase the sales by imparting special training to salesmen and by window display .

Sign up to vote on this title
UsefulNot useful