• 1.advertising communicates information about products or ideas • 2.identified sponsor -mass media • 3.

persuade or influence • Four distinct players in the advertising process; Advertisers Advertising agencies Media- medium suppliers

Types of advertising
• By target audience • By geographic area • By media used • By purpose-product or non product Commercial or non commercial Primary demand or selective demand Direct action or indirect action

• By target audience • Consumer • Business 1.Industrial 2.Trade 3.Professional 4.Agricultural By geographic area International National Regional local

• By media used • Print Newspaper Magazine • Electronic Radio Television • Out of home Outdoor Transit .

• Direct mail • Directories • Other media Functions of advertising To differentiate products from their competitors To communicate product information To urge product use To expand product distribution To increase brand preference and loyalty To reduce overall sales cost .

Advertising and marketing • Meeting customer needs • Coordinating marketing efforts across the organisation • Working for long term benefits The marketing mix PRODUCT Features.research and development Packaging.brand .

price reductions PROMOTION Personal selling.transportation ADVERTISING AND COMMUNICATION MESSAGE-MEDIUM-NOISE-DECODING-BEHAVIOURFEEDBACK-ENCODING .public relations DISTRIBUTION Marketing channels.sales promotion.markets covered.price image.• PRICE Amount charged.

• COMMUNICATION PHASES IN ADVERTISING • HIERARCHY OF EFFECTS MODELS AWARENESS COMPREHENSION ACCEPTANCE PREFERENCE OWNERSHIP REINFORCEMENT IMC-INTEGRATED MARKETING COMMUNICATIONS .

• HISTORY OF ADVERTISING • The early days • The industrial revolution • The age of technology Print media Newspapers Magazines Electronic media Radio television .

• Todays challenges and oppurtunities • Better local and global targeting • Enhanced creativity through technology • New media horizons • Results driven advertising THE ADVERTISING PLANNING PROCESS STEP 1analyse the current situation STEP2define the audience STEP3develop marketing goals and a marketing plan .

• STEP4develop advertising goals and an advertising plan • STEP5set the advertising budget • STEP6 DEVELOP AND EXECUTE THE CREATIVE STRATEGY • STEP7develop and execute the media strategy • STEP8evaluate advertising effectiveness Ad campaign .

• Surrogate advertising is advertising which embeds a brand or product message inside an advertisement which is ostensibly for another brand or product. For example. The company would justify the advertisement by claiming that it's an example of social responsibility. a cigarette company might issue public service announcements relating to a topic such as lung cancer. . using the company's logo or distinctive brand colors in the ads so that people are exposed to the company's branding without seeing an explicit ad for the company's product.

. but doesn't know what it is.Subliminal Advertising • The subject responds without awareness to stimulus. • Subject knows he is being stimulated.

The visible partner • Choosing an independent or an in – house agency • Using an independent agency • Using an in-house agency • Organising the advertising department .• The advertiser.

sales manager Advertising manager Ceo Division manager.vp marketing. Division manager Category manager Brand manager .Centralised and decentralised advertising dept Ceo Vp finance.vp production Marketing manager.

• • • • • • • What the advertising manager does Planning and budgeting advertising Creating and producing ads Handling administration Coordinating advertising efforts Advertising managers accountability What advertising agencies do .

media planning. branding. . marketing. Now kill those who call you for Special offers. Becoz it was banned by govt stating too violent.Credit Cards and bigmouth aunties • The Indian advertising today handles both national and international projects. creative conceptualization. market research. and public relation services. pre and post campaign analysis.• Vodafone Shoot caller ad with Zoozoos this ad never aired during the IPL matches. media buying. Client servicing.

and increasing disposable income in Indian households. the media and entertainment industry in India is likely to grow at ~13 % CAGR over 2009-13. the average spend on media and entertainment is likely to grow. • economic factors buoying India’s development.• According to a 2009 report jointly published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG. . according to the 2009 edition of PWC report. with a majority of the population below the age of 35. touching US$ 20 billion by 2013.

competitors and analyze the product’s current and potential market. 1.media .Examines distribution and sales and investigates –advertisers message. 2.• What advertising agencies do Advertising agencies exist for one basic purpose: to interpret for the advertisers target audience information about the goods or services being marketed.Strength and weakness of the product.

• Organisation by function -Ceo Account mgt-client services Creative services-copy.creative services.art.production.• Advertising plan.media Agency mgt-hr.acct planning.buying space and time and administration • Coordinated with sales and other marketing activities.finance and accounting Org by clients .traffic Marketing services-research.

. How agencies are paid History Media commissions.medical and ethnic agencies-all functions but in specialised field.Full service agencies 2.media buying services 3.incentiv e based compensation performance based.fees(retainer).Specialised agencies-specialised marketsb2b.• What various agencies offer 1.markups.Limited service agencies-creative boutique.

• Advertising and economy-information • Pricing of products • Consumer demand advertising stimulus demand is a complex question without an easy answer.government.income and lifestyle.comparitive advertising . • Competition.if billboard advertising is banned you switch to another medium.demand is affected by changes in population.eg.• Advertising environment • Economy.interest groups and society at large.

Pricing is low. Advantage Contrasting views of advertising -issues Language and literacy.• Advertising and society Advt is so persuasive to that it has the ability to shape social trends and mold personal attitudes. .streotyping. bad taste and offensiveness in advertising.the advertising on the media.advertising as manipulation and exploitation.

Using puffery Advertising and regulation Advertising council of india-asci Self regulation by few companies .Advertising to children 3.• Advertising and social responsibility • Advertising and ethics Ethical dilemmas and ethical lapses • Ethical issues in advertising 1.Advertising unhealthy products 2.

DAGMAR • A major contribution of DAGMAR was Colley’s specification of what constitutes a good objective. Four requirements or characteristics of good objectives were noted . This model was entitled ‘Defining Advertising Goals for Measured Advertising Results.Defining Advertising Goals for Mea • Russell Colley (1961) developed a model for setting advertising objectives and measuring the results.• DAGMAR .

• Concrete and measurable • benchmark and degree of change sought • Target audience • Specified time period • Written Goal .

DAGMAR • Awareness-ComprehensionConviction-Action • Measurable • Target Audience • Benchmark • Degree of Change • Time period .

DAGMAR Criticisms • • • • Hierarchy issues Sales included Cost Creativity problems? .

Why not sales objectives for promotions/communication? • Entire strategy • Carryover effect • Minimal direction to promotions mgmt • When do you use sales objectives for promotions? .

Budgets • • • • • • Affordable Percentage of Sales Competitive parity Return on investment Share of voice Objective and task .

Concave-Downward Response Curve B.. Inc. McGraw-Hill/Irwin High Spending Little Effect .A. S-Shaped Response Function Incremental Sales Incremental Sales Initial Spending Little Effect Range A Range B Middle Level High Effect Range C Advertising Expenditures Advertising Expenditures © 2007 McGraw-Hill Companies.

. Expenditure Profit Point A Advertising / Promotion in $ © 2007 McGraw-Hill Companies.Marginal Analysis Sales Gross Margin Sales in $ Ad. McGraw-Hill/Irwin . Inc.

web site development) • Other (events. sponsorships) .Budget Allocation • • • • • • • CRM Advertising Sales promotion Public relations Direct marketing Retail trade Internet (e-mail and banner.