ADVERTISING

Advertising

• Any paid form of non personal presentation

and promotion of ideas, goods or services by
an identified sponsor
Types of advertising
Product advertising
 The 5 Ms of Advertising
• Mission: what are the advertising objectives?
• Money: how much can be spent?
• Message: what message can be sent?
• Media: what media should be used?
• Measurement: how should the results is
evaluated?
Steps in developing an
advertising programme
 STEP 1: Identifying the target
audience
• Target audience:
– a market segment to which a marketer wants to
communicate a product/ brand message
STEP 2: Setting the advertising objective

• A specific communication task to be

accomplished with a specific target audience
during a specific period of time.
• To inform
• To persuade
• To remind
 The DAGMAR Approach
• Developed by Russel
Define Colley in 1961
• a model for setting
Advertising advertising objectives
and measuring the
Goals for results
• Ad to perform a specific
Measured c/n task
• The task has to be
Advertising accomplished among
well defined audience
Results within a period of time
Advertising Objectives
Advertising Objectives
Advertising Objectives
Advertising Objectives
STEP 3: Deciding on the advertising
budget
• Advertising budget: the amount of money
allocted by a firm for its advertising campaigns
for a specific period of time
• Budget varies depending on the stage in the
product lifecycle.
Methods for advertising budget
allocation

Affordability Percentage-of-
Method Sales Method
Setting advertising Setting advertising
Budget at the Level the Budget at a Certain %
Company Thinks They of Current or
Can Afford. Forecasted Sales

Competitive-Parity Objective-and-Task
Method Method
Setting advertising Setting advertising
Budget to Match Budget by Defining
Competitors’ Outlay Objectives, Tasks &
Costs.
STEP 4: Developing the advertising strategy

• The strategy by which the company

accomplishes its advertising objectives.
• Two major elements:
– Creating advertising messages
– Selecting the advertising media
Developing the advertising message

• Characteristics of an effective message:

– Meaningful: point out benefits that make the product
more desirable/ interesting to the consumers
– Believable: the consumers must believe that the
product will deliver the promised benefits
– Distinctive: needs to be unique to capture customer’s
attention
Issues to Consider in Designing the
Message

Message Content
Rational Appeals
Emotional Appeals
Moral Appeals

Message Structure
Can be one sided /
two sided

Message Source
Expertise,
Trustworthiness,
Likeability
 Message Execution Style

• The approach, style, tone, words & format used

for executing an advertising messagre
 Typical Message Execution Styles

Comparisons
Comparisons Animated
Animated
Symbol
Symbol

Slice
Sliceof
ofLife
Life Mood
Moodoror
Image
Image
Lifestyle
Lifestyle
Demonstration
Demonstration
Spokesperson
Spokesperson

Musical
Musical
Fantasy
Fantasy

Scientific
Scientific
Humor
Humor Evidence
Evidence
 Selecting the right media

• The vehicles thru’ which advertising messages

are delivered to the intended audience
Based on:
The target audience
Location of the target audience
Message to be delivered
Timing of the campaign
 Selecting the right media (con’t)
Decide on the reach, frequency & impact needed to
achieve objectives
Choose among major media types- TV, news paper
etc.
Select specific media vehicles- Star plus, CNN, The
Hindu etc
Decide on media timing
Decide on geographical media allocation
• Reach(R) : the number of persons in the target
market who are exposed to the advertising
campaign during a given period of time.
• Frequency : the measure of how many times the
average person in the target market is exposed
to the message
 Choosing among media types

Depends on:
 Target audience media habits
 Product characteristics
 Message characteristics
 Cost
 Media Types
Newspapers
Newspapers
Magazines
Magazines
Radio
Radio
Television
Television
Major
Major Types
Types Outdoor
Outdoor
of
of
Advertising Internet
Internet
Advertising
Media
Media Alternative
Alternative Medias
Medias
 Selecting specific media vehicles

• Depends on:
– Circulation: The number of physical units carrying the
advertising
– Audience: Number of people exposed to the vehicle
– Effective audience: The number of people with target
audience characteristics exposed to the vehicle
– Effective ad exposed audience: the number of people
with target audience characteristics who actually saw
the ad.
 Deciding on media timing &
geographical allocation
• Scheduling the timing of advertising
• Also decide on the geographical spacing of
advertisements.
Step 5: Evaluating Advertising
Effectiveness

Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
CommunicationEffects
Effects
((copy testing)
copy testing) Sales
SalesEffects
Effects
(to
(tothe
theextent
extentpossible)
possible)
Is
Isthe
theadvertisement
advertisement
meeting
meetingthe
thespecific
specific Is
Isthe
theAd
AdIncreasing
IncreasingSales?
Sales?
communication
communicationobjective?
objective?
 Communication effect
research - methods
• Consumer feedback method
– What is main message you get from this ad?
– How does the ad make you feel?\what works well in the ad & what
works poorly?
• Portfolio tests
– Consumers asked to view/ listen to a portfolio of ads
– then asked to recall all the ads & their content
– Indicates an ad’s ability to stand out & to have its message
understood & remembered
• Laboratory tests:
– Use equipment to measure physiological reactions to an ad.
 Sales effect research

• Measuring the sales & profit after the ad is

released.
 Advertising agency

• A firm which specialises in developing & running

advertising campaigns through various media
Sales Promotion
• A diverse collection of incentive
tools, mostly short term, designed to
stimulate quicker or greater
purchase of products/ services
• Whereas advertising gives a reason
to buy, SP gives an incentive to buy
 Consumer Promotion Tools

Consumer-Promotion
Objectives
Attract
AttractConsumers
Consumersto to
Try a New Product Samples
Samples Advertising
Advertising
Try a New Product Specialties
Lure Specialties
LureCustomers
CustomersAwayAway Coupons
Coupons
From Patronage
FromCompetitors’
Competitors’Products
Products
Hold Rewards
Hold&&Reward
Reward Loyal
Loyal Cash
CashRefunds
Refunds
Customers
Customers
Consumer
ConsumerRelationship
Relationship Price Contests
Building PricePacks
Packs
Building
Point-of-Purchase
Point-of-Purchase
Premiums
Premiums Promotion
Promotion
 Trade Promotion Tools

Trade-Promotion
Trade-Promotion Tools
Objectives
Persuade
PersuadeRetailers
Retailersor
or Price-Offs
Wholesalers Price-Offs
Wholesalersto
toCarry
CarryaaBrand
Brand
Give Allowances
Allowances
GiveaaBrand
BrandShelf
ShelfSpace
Space
Specialty
Specialty
Promote
PromoteaaBrand
Brandin
in Advertising
Dealer
Dealerlisting
listing Advertising
Advertising
Advertising Items
Items
Push
PushaaBrand
Brandto
toConsumers
Consumers Free
FreeGoods
Goods

Contests
Contests
THANK YOU