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Submitted to: Niki Sanghvi Submitted by: Jayul Vaghani (43) Jayesh Tank (37) Akash Chokshi (1) Hiral Panchal (31)
What is Advertising?
Any paid form of non personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, televisions or radio by an identified sponsor. ( Kotler ) Advertising is mass, paid for communication which is used to transmit information, develop attitudes and induce some form of response from the audience.
Characteristics of Advertising
Non personal form of communication aimed at a target audience. Used by commercial and by not for profit organizations. Most advertising is concerned ultimately with selling. It is a major element in the promotional mix.
An advertising objective is a specific communication task to be achieved with a specific target audience during specified period of time. Like all objectives they should be SMART. In essence the main advertising objectives are: - To Inform: to provide information about a product - To Persuade: to persuade people to buy - To Remind: to remind people about a mature product
Inform, Persuade, Remind
To provide information Used specifically with a new or complex product. Print media is superior to TV for this type of advertising.
To persuade customers to buy a particular brand Stress the distinctive features of the brand. Minimal Information.
To remind customers about a product they might other overlook. Advertising a mature product.
Insurance Financial Products New Electrical Goods
Perfumes Cars Coca cola
Corn flakes Kit-Kat
Specific - the objective should state exactly what is to be achieved. Measurable - an objective should be capable of measurement – so that it is possible to determine whether (or how far) it has been achieved Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business. Relevant - objectives should be relevant to the people responsible for achieving them Time Bound - objectives should be set with a timeframe in mind. These deadlines also need to be realistic.
Summary of Objectives
To create awareness To inform To remind customers To reassure customers To support the sales force To persuade To promote Ideas/ Attitudes/ Causes
To increase market share To differentiate from rivals To build brand loyalty To change attitudes To support activities in the distribution chain
Types of Advertising
Informative- Provides information Persuasive- To encourage brand switching Reminder- To remind about a mature product Reinforcement- To reassure Pioneering- To introduce new product Competitive- To point out differential advantages Defensive- To reduce damage caused by campaign of a direct competitor.
Institutional or Corporate Advertising
Seeks to promote corporate identity, image and values This type of advertising is not about individual products the company offers The product is not mentioned. Used by large companies, especially multinational companies. E.g. ICI, BP BP promotes itself an energy company rather than a petroleum company.
Direct Response Advertising
The use of prime media to elicit an order, enquiry or request a visit. Direct response television advertising invites consumer to phone in to place an order (E.g. some music CDs are promoted in this way) The print media is also used- coupons cut out of the page and inserts are means to invite people to respond
Advertising should seek to: A- increase Awareness I- create Interest D- develop a Desire A- encourage customers to buy
Advertising seeks to move potential buyers through these stages.
Developing an Advertising Campaign
Set the advertising objectives. Define target market. Determine the advertising budget. Determine the key advertising message. Decide which media to use. Plan campaign timing. Evaluate the results of the campaign.
5 Ms of Advertising
MISSION- Objectives MONEY- to pay for the Campaign MESSAGE- to be Delivered MEDIA- choice of advertising Media MEASURE- Measuring the impact
Determining the Budget
The advertising budget will be set in terms of one of: - what can be afforded - A given percentage of sales - Comparison with rivals - Objective and Task- whatever is needed to achieve objective
An advertising message translates a company’s basic selling proposition into words, symbols and illustrations that are attractive and meaningful to the target audience. The Message must be: - Meaningful - Distinctive - Believable
Main Advertising Media
• • • • • • Television Cinema Radio Outdoors (billboards) Internet Print media- news papers n magazines
Factors in the choice of media
• • • • • • Marketing mix Relative cost Target audience Impact of the media Competition Legal constraints • Permanence of the media • Nature of the product • Size and spread of the market • Advertising budget • Message to be conveyed
AIMRITE- Choice of Media
• Audience-does it reach the target audience? • Impact-does it have the impact or ensure the message has a chance of getting through? • Message- does it ensure the message is clearly communicated? • Response-does it make responding easy? • Internal management-does it enhance the efficient management of the campaign? • The end response – costs and projected likely revenue
Advantages Large audience Low cost per exposure high impact-color, sound and movement Can target specific groups Disadvantages • Very high overall cost • Limited prime time space • Short lived • May not be watchedvisual wallpapers • Convey only a limited message
• • • •
Advantages • Relatively inexpensive • target specific segment • Relatively mobile • Local Disadvantages • Limited impact • No vision • Short life
Advantages • target specific segments • Widely read • Short lead time • Frequent publication • Inexpensive compared to television • Color printing adds to impact • Local regional national papers available Disadvantages • Low impact • May get lost in the rest of the paper • Not every group reads a paper • High costs especially for national news paper
Advantages • Useful for targeting specific group • Good reproductionhigh quality gloss images • Long life-read at leisure • Can be linked to features • All consumers interests catered for Disadvantages • Can be expensive • Long read time • Some magazines are only published monthly. • Moderate impact • Slow impact due to long life • Magazines with limited readership are not suitable for mass
Advantages • Captive audience • High impact • Can be specifically targeted • Local audience • Visual, sound, movement Disadvantages • Limited audience • Mainly young audience • Short lived message • May only be seen once.
Advantages • Repeatedly seen • 24/7 coverage • Target particular area • Local media • May encourage impulse buying if close to shops Disadvantages • Message must be simple and short • Can not target socioeconomic groups • Rarely attract full attention • Short lived • May be seen as traffic hazard • Difficult to measure effectiveness
Advertising on transport
Advantages • Low cost • Target specific areas • Captive audience • Reaches wide diverse audience Disadvantages • Harder to target by socioeconomic class • Quick results unlikely • Difficult to measure effectiveness • Rarely gains reader’s full attention • Space for only a short message
• One of the fastest growing advertising media • Can target particular groups according the site a customers is on. • Can be saved by the consumer • Can use moving images as well as written information. • Can be expensive to set up. • Allows direct link to the product. • But not used by all potential groups of customer. • Customers may see the advertisement as in the way of what they really need from an internet site.
Advertising on the internet
• • • • Paid-for search inclusion (e.g. google adwords) Company website Banner adds-On line adverts on relevant website. Link exchange – mutual exchange at links between websites or similar or complementary interest. • Search engine/directory listing. • E zine/email sponsorship – on line magazines delivered to subscribers via email.
• • • • Cheap Easy to set up Easily updated Number of hits can be monitored-useful measure of effectiveness • Problems of connecting • Limited audience • Technical problems • Banner adverts not very effective • Search engine listing can be costly (e.g. click fraud)
Evaluating effectiveness of advertising
• • • • Judge in relation to the objectives Did the advert achieve it objectives? Is it cost effective? Here the question to be asked is weather or not the objectives were achieved at the lowest possible cost.
efficient effective Achieves objective at lowest possible cost ineffective Inexpensive but objectives not to be achieved inefficient Effectively but more costly than it needed to be Expensive but did achieve objectives
• It is expressed in terms of its ability to meet objectives. • If sales increased profits and sales are the aims, then effectiveness is measured in terms of the return on investment in advertising spending. • If the competitive defense I the main aim it is measured in terms of the maintenance in indicators of competitive position (e.g. market share)
• A measure of the responsiveness of the demand to an advertising campaign. • %change in quantity sales/% change in advertising spend • If a 10% rise in advertising spending is followed by 20% rise in demand or sales than advertising elasticity is 2. • But can we be sure that sales rose because of the increased advertising?
Measure of advertising effectiveness
• Advertising awareness- the ability of a consumer to remember a particular advertisement. • Advertising coverage-the % of target market who have at least one opportunity to see an advertisement during a campaign. • Advertising share of voice- the proportion of overall advertising in a market accounted for by a brand or company. • Advertising to sales or ratio- expenditure on advertising as a proportion of sales
• The DAGMAR models highlights advertising can be assessed by a firm. • Defining • Advertising • Goals • Measured • Advertising • Results how
A word of caution
• Even good advertising can not overcome problems caused by • Poor product • Inefficient service • Uncompetitive pricing • “half of all advertising is wasted- the problem is we don’t know which half”.(Lord leverhulm) founder of unilever.
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