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Internal Assessment (50 marks

)
• Class Exercise- Group (10 marks) • Written Test (10 marks) • Article Review - Group(8 marks): Review one recent article/ research paper on advertising. Presentation (5

marks), Hard Copy (3 marks)
• Ad Evaluation – Group (17 marks): Evaluate one current advertising campaign of your choice. Presentation (10 marks), Report (7 marks) • Attendance and class participation (5 marks)

Marketing Communication

Channel Sender
Encoding

Message

Receiver
Decoding

NOISE

Feedback

Response

Communication Process

.Marketing Communication • Marketing communication occurs in relation to markets where messages are sent to target audience in the context of a product. • Information response models are the hierarchical models which recognize that there are number of distinct phases in communicating with others. • Marketing communication is more than just applying the simple fundamentals of communication process and has its specialized nature. • Marketing communication involves distinct phases and is a gradual process.

.IMC.Concept • IMC is the result of changes that have taken place in the world of advertising and other promotion tools. • Marketers started transferring their money from advertising to other promotion tools in order to have better return on their investment.

Reasons for growth of IMC • • • • • • • • • Cluttered media environment Fragmentation of media Media cost Technological advancements Client expertise Increasing number of „me-too-products‟ Increasing power of retailers Increasing global marketing Increasing pressure on bottom line .

. when developing a communication strategy. A well-established relationship between the company and the customer is necessary.Components of IMC The critical components of IMC are: 1. 3. An outside-in approach should be utilized. 2. The communication efforts should be directed at consumers in order to affect behaviour.

. To create a competitive brand. 5.4. To deliver a message correctly all communication activities should be included with contact points integrated into the strategy. coordination between the communication disciplines is needed.

and control issues • Client skills. centralization.Barriers to the implementation to IMC • Power. and cultural issues • Agency skills and general time/resource issues • Flexibility/modification issues • IMC measurement difficulties • Unclear positioning at corporate level • Need for cross-disciplinary managerial skills . coordination.

experience .• Fear of change • Hierarchical organization structure • Need for single budgeting process and shared performance. lack of database development • IMC must continually demonstrate how the mix on non-traditional media creates more impact at less cost • Mind-set – specialization. tradition. history.

Advertising AN ADVERTISEMENT is a ‘paid form of non-personal presentation and promotion of ideas. goods and services by an identified sponsor’ .

•Advertising is a business activity •Employs creative techniques •Promote ideas. the delivery of consumer satisfactions. and the development of social and economic welfare . goods and services in a manner consistent with the achievement of the advertiser’s objectives.

Importance of Advertising • As a promotional activity • As a marketing activity • As a business activity .

Major Advertising Decisions • Selection of target audiences •Setting advertising objectives •Setting advertising budget •Deciding about message •Deciding about media •Selection of advertising agency •Evaluating advertising effectiveness .

Types of Advertising Basis of Classification • Audience Intended • Geographical Spread • Level of Demand • Advertising Object • Advertising Purpose • Advertising Media • Miscellaneous .

Target market Selection Target market is the focus of firm‟s entire marketing effort. which it may think of serving profitably through appropriate marketing and communication strategies .

. • Determination of market segment with the unfulfilled need.Steps • Identification of some unfulfilled need. • Targeting the specific segment. and • Positioning one‟s product through appropriate marketing strategy.

Sales as Advertising objective Lagged Effects of Advertising on Sales .

to be accomplished among a defined audience to a given degree in a given period of time”. • Define the specific communication task and its stage .• Distinguish between Marketing Objectives and Advertising Objectives • An Advertising Objective is a Communication Objective “An Advertising goal is a specific communication task.

Setting Advertising Budget .

• Using marginal rules of economic theory • Cost –Oriented. Communication-Oriented. Sales-Oriented .

Cost Oriented •Affordable •Break-even •Percentage of sales .

Communication Oriented
• Task and objective – based on contact, which is defined in terms of reach and frequency • Perceptual impact – based on a measure of probably impact on attitude.

Steps in Objective and Task Method
• • • • • Determine objectives Define variables to be measured Specify task and determine cost Conduct programs Evaluate and review

Perceptual Impact
•Perceptual impact budget communication objectives. is based on psycho-sociological

•To achieve these objectives, conditions are defined in terms of the means used – for example: Media, Reach, Repetitions etc. •Next, the cost of the various activities is calculated and the total determines the necessary budget. •What is sought here is an impact on one of the three components of attitude – cognitive, affective or behavioural. •Advantage: Helps in providing assumptions about the relationships between money spent, exposure, perceptions, trial and repeat purchase.

The Vidale and Wolfe advertising model (1957) Expresses the following relationship between sales (in units or value) and advertising expenditure: ds/dt = (ß).(1-λ).(s) where. ds/dt = rate of increase of sales at any time t ß = sales response constant when s=0 A = rate of Advertising s = company or brand sales S = product category saturation level λ = sales retention rate . (S -s / S) .Sales Oriented 1.(A).

γ MS(t) = initial market share MS(min) = minimum market share with zero advertising MS(max) = maximum market share with saturation advertising Adv = effective advertising (adjusted for media and copy effectiveness) γ = advertising sensitivity coefficient δ = constant .2. Little’s ADBUDG Model (1970) The ADBUDG model has the following mathematical expression: MS(t) = MS(min) + {MS(max) . Advγ / δ +Advγ where.MS(min)} .

Factors Influencing Advertising Budget Product Related •Stage in product Life Cycle •Product Differentiation •Product Substitutability •Durability of Product •Value of Product •Product Quality Market Related •Nature of Market Demand •Nature of Competition •Size of Market Share Advertising and Promotion Related Factors •Role of Advertising in Promotion Mix •Advertising Objectives •Advertising Frequency •Availability of Funds •Promotion Strategy •Media Decisions Others •Distribution Strategy •Overall Business Strategy •Uncontrollable Environmental Factors .

Media Decision .

Basic Media Concepts • Planning and Buying • Reach and Frequency • Impressions. Ratings . Circulations.

Media Strategies Formulation is in terms of:  Media mix decision  Matching of media with target market to maximise exposure and minimise waste  Media use .

Media Effectiveness •Reach •Frequency •Gross Rating Points •Continuity .

• Deciding what to buy. and how much to spend in each medium • Scheduling when the advertising is to run .Media Planning It involves: • Deciding about selection of appropriate media for carrying advertiser’s message to target markets.

Changing Media Environment • New media forms • Media fragmentation • Need for using multiple media forms and providing integrated communication • Problems with terminologies • Problems with data base and its measurement .

requires selection of time period during the year for exposure to take place. .requires finding out best prospects -requires search for areas or segments where the most potential lies .Media Objectives • Translating marketing objectives and strategies into goals that media can accomplish • Involves review of internal and external factors • Answering Whom Where When .

Media Types .

TELEVISION • • • • • Intrusiveness Broad Reach Cost efficient Impact Influence behaviour .

POINTS OF WEAKNESSES • • • • • • Expensive Clutter Non-selective audience Fleeting exposures Inflexibility Problem of zipping and zapping .

PRINT MEDIA NEWSPAPER: POINTS OF STRENGTH • • • • • Gives market coverage to the product Aids in comparison shopping Builds positive consumer attitudes Flexibility Provides link between national and local advertiser .

.POINTS OF WEAKNESSES • • • • • Short life span Clutter Limited coverage of certain groups Poor reproduction quality Small pass along readership (unlike as in the case of magazines).

Qualitative Factors of Media Choice • • • • • • • • • • • Marketing and Advertising Objectives Competition situation Advertising Budget Brand Dynamics Target Audience Characteristics Media Environment Media Fragmentation Ad Avoidance Creative Requirements Production Logistics Competitors‟ Media Choice .

Message Strategy .

Message Structure (how to say it logically) 3.Designing the Message 1. Message Content (what to say) 2. Message Format (how to say it symbolically) 4. Message Source (who should say it) .

Message Content: What to Say • Advertising Appeal • Creative strategy .

. social and ego satisfiers. or negative vs positive consumer defined and product defined.The choice for message content could either be: • • • • rational and emotional. or Sensory.

Message Approaches • Straightforward • Demonstration • Comparison • Problem-Solution • Humor • Spokesperson • Teasers • Shockvertising .

Drawing conclusions 2. One-versus-two sided arguments 4.Message Structure Important aspects of message structure are: 1. Comparative advantage . Repetition 3.

Generation of written copy 3. Idea generation (thinking of „big idea‟) 2. Layout .Message Format: Creative Execution Steps involved in copy writing or creative execution: 1. Illustrating/ Artwork 4.

Shaping ‘Ideas’ • Chance encounter • Competitor‟s advertising appeal • Brainstorming • Market research .

The Headline The Sub-head The Body Copy Captions Boxes and panels Slogans and logo . 2. 5. 4. 3. 6.Advertising Copy and Its Elements 1.

News headlines 4.Types of Headlines • By Contents (What it says) 1. Identification headlines 2. Problem solving headlines 3. Familiar saying • By form (How it says) Directly or Indirectly . Contrast headlines 5.

Lure the reader into body copy Tagline.wrap up the idea . Captions.• Other Display Copy  Slogans -Enhance memorability  Subheads.

Types of Body Copy • Factual Copy: Stresses product advantages •Emotional presentation: Stresses consumer satisfaction • Dialogue Copy: Lets the reader “Listen in” on a conversation • Narrative Copy: Tells Story .

Illustrating Shows: • Product alone • Magnifies details • Product in setting • Product in use • Satisfaction • Dramatization of situation • Comparison • Contrast .

Layout Styles • • Visual Dominant Copy Dominant .

Layout Considerations • • • • • • Focal Point Balance Contrast Proportion Movement Unity .

Copywriting for Radio 1. Sound Effects . „Theater of the mind‟ 2. Music (Jingles) 4. Voice and Style 3.

Clutter. Lighting.Broadcast Copy Copy Elements • Visual. Audio. TV programme. music Characteristics • Action • Demonstration • Storytelling • Emotions . Use of words. Graphics Attention Related Factors • Length. Talent. Setting.

Levels of Relationship .

Writing for the Web • More interactive than any other mass medium • Challenge is to attract people to the site and manage a dialogue-based communication experience • Web ads create awareness and interest in a product and build a brand image • Focus on maintaining interest .

side frames .Games.Web Ads • Banner • Other Web Formats. Pop-up windows.

Copywriting in a Global Environment • Language affects the creation of the ad • Standardizing copy by translating is dangerous • Use bilingual copywriters .

Advertising Agencies .

Agencies Specialised organisations whose business is to create advertising • Have roots in tradition as sellers of space • Changed to buyers of space and subsequently started offering the services of planning. • In house agencies and Outside agencies . preparing and placing the ad.

.Hiring of Outside Agency  Referrals  Presentation  Image and reputation of the agency  The activities of public relation and publicity undertaken by the agency.

Compensation Arrangements  Commission system: Fee based system: based on size of media spend. the commission rate is usually 15%. based on cost of services provided. . cost is calculated using the hourly rate  Combination of fee and commission system Cost plus agreement: Performance linked: based on cost of actual services rendered based on the extent to which predetermined goals are met.

Evaluating Advertising Effectiveness .

Decisions Involved • • • • What to measure? When to measure? Where to measure? Which method to use for measurement? .

• Measuring Sales Effect • Measuring Communication Effect .

Inquiry test .vehicle test -Recall Test -Recognition test -Test Marketing .Questionnaire .Types of Testing Techniques Pre tests Post tests Input variables Consumer Juries Portfolio test Physiological measures Readability test Concept test Focus Group test Sales effects / Communication effects Laboratory test Field Test .

when and where to measure .Problems in Measuring Ad Effectiveness • Cost • Research problems • Disagreement on what.

Ethical and Legal Aspects of Advertising .

Ethical Issues in Advertising • • • • • • • Puffery Taste in advertising Advertising to children Advertising of Controversial Products Subliminal Advertising Effects on values and life style Green Marketing .

• Parliament enacted Consumer Protection Act in 1986 .Legal Aspects of Advertising • In India. • Except for the Monopolies and Restrictive Trade Practices (MRTP) Act. 1969 (now repealed) all the other Acts were mainly punitive and preventive in nature. various Acts were enacted with the intention to protect the consumers against different forms of exploitation.

Self Regulation • There are strong believers in the market place who hold the belief that advertisers must be left alone to regulate themselves and they are in the favour of lesser and lesser regulations. It is a commitment to honest advertising and to fair competition in the market place. a voluntary and non-profit organization has adopted a code for Self Regulation in Advertising. . • Advertising Standard Council of India ASCI .