Major functions: Inform:  Entertain: Classic Indian Advertisements\cOCA cOLA\coca cola.2.mpg Influence:  Remind:  Reassure:  Add value:

How advertising works? 
Gets planned and brought into existence  Reproduced and delivered and exposed to people  Received and assimilated  Affects ideas, intentions and attitudes  Affects buying and buying process  Responds to time (situation and repeated exposure)  Affects trade effort and supply  Affect product consumption  Changes sales and profits  Changes the market (size, quality mix, intensity of competition, trade
relations, consumerism etc.)

Types of advertising 
Industrial Advertising  Institutional advertising  Product advertising  Cooperative advertising  Direct and indirect advertising  Retail advertising  Manufacturer¶s advertising

Role of advertising
Phillip Kotler refers to the following situations where advertising is likely to make greater contribution. 

When buyers awareness is minimal  When industry sales are rising rather than remaining stable or declining  When the product has the features normally not observable to the buyer.Classic Indian Advertisements\TITAN  When the opportunities for product differentiation are strong  When primary instead of secondary motives can be tapped.

Role of advertising-Limitations
According to Richard H. Stansfield advertising can not do the following:- 

Sell a bad product twice  Sell an overpriced or otherwise non competitive product  Sell a poorly distributed product  Sell a seasonal product out of season  sell product to persons having no use for them  Work overnight  Do the selling job alone

Advertising Management
Basic decision areas in advertising are 

Setting advertising objectives  Determining advertising budgets  Developing advertisement copy and message  Selecting and scheduling media  Measuring advertising effectiveness

Advertising Campaign : Q & A
Source: Charles Ramond, Advertising Research; The state of the art
To make this decision What to say To whom How to say it How often Where How much to spend One must choose a Theme, Copy platform Target audience Copy commercial execution Frequency of exposure Media Plan Budget level Using Concept tests positioning studies Market segmentation studies Copy research, Commercial test Studies of repetition Media research modes Sales analysis, Marketing models

Setting advertising objectives
Russel H. Colley, DAGMAR ± defining ±advertising- goals for- measured advertising -results. Colley distinguished 52 advertising goals that might be used in connection with a single advertisement, a year¶s campaign for a product or a company¶s entire advertising philosophy. Some are ; ‡Announce a special reason for buying now (Price, premium etc)Classic Indian Advertisements\TIMES OF INDIA\TimesofIndia_119388_HE.mpg ‡Build familiarity & easy recognition of the package or trade mark ‡Persuade prospect to visit a show room ‡Build up morale of the company¶s sales force:Classic Indian Advertisements\TISCO\TISCO.mpg ‡Correct false impression, misinformation and other obstacles to sales:Classic Indian Advertisements\cOCA cOLA\coca cola.family ad.mpg Coca Cola ad)

Advertising Objectives:
‡Inform-Aware ±Create brand knowledge-Reinforce positive attitudeprecipitate buying action-Increase sales-Build up an image

Developing advertising copy and message 

David Ogilvy; µwhat you say is more important than what you say¶ William Bernbach: µHow you say is as important as what you say¶ Rooser reeves; The Unique Selling proposition (USP)- Three guide lines for developing USP are : (SONATA AD) 1.The proposition must involve a specific product benefit 2.The proposition must be unique 3.The proposition must sell Leo Burnett: The common touch or µthe inherent drama¶ (TOIHockey ad) 1.Straightforwardness without being flatfooted 2.Warm without being mawkish 3.Believable

Selecting and scheduling media
Which media (Press, Outdoor,radio,TV,cinema,Internet)  When & how often advertisement should be placed in selected media Media Selection:  Reach  Frequency  Gross Rating Point (GRP)-Reach x no of times (GRP)(35 % of people are reached 4 times a week by a given medium, GRP is 35 x 4 =140)  Comparative costs  Advertisement scheduling 

Measuring advertising effectiveness
Pre testing methods 

Direct Rating (Specialists to rank the adsadsattractiveness, liking, theme,slogan etc) Portfolio Test-Recall of ad & contents TestTesting Physiological Reactions (Pupil dilation, Heart beat on seeing an ad) Recognition Tests (% of readers-Noted, Associated readersseen & read a part of ad and Who read more than 50% ad) Recall Test (Extent of recall)

Post Testing methods  

Coordinating with advertising agency
70% large sized Indian companies hired the services of Ad agencies. -A Research Finding



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