Advertising Management and IMC

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Elements in the Communications Process
 Brand Message
• Brand message is all the information and experiences that
impact how customers and other stakeholders perceive a
brand.
• Originates from company’s behavior, design and maintenance
of its physical facilities, hiring practices, its stock price, imc
messages
 Noise

 Noise is any interference like lack of clarity in the message or flaw in the medium
etc.
 Talking on the phone during a commercial on television.
 Driving while listening to the radio.
 Looking at attractive model in a magazine ad and ignoring the message and brand.
 Talking to a passenger as the car passes billboards.
 Scrolling past Internet ads without looking at them.
 Annoyed by ads appearing on a social media site.
 Ignoring tweets on Twitter because they are not relevant.

M C Rashid Khan.... IMCs 4

 Communication Feedback

• Immediate , ordering, buying, asking questions, sampling or interacting with some

other ways
• Delayed, image adverting designed to work overtime, creating and maintaining
brand awareness and positive feeling about brand.
• No feedbacks, try to know why there is no feed back , it may indicate a negative
impact , may be because of wrong media selection, wrong , place and time selection
, too much clutter or other noise
• Message was not persuasive, or relevant to move target audience
• Customer are not interested in product or loyal to other brands
 Integrated Marketing Communications

An integrated Marketing Communication is the mixture of all

communication tools which link the marketing function with the
communication function to deliver Effective Marketing Messages.

Dove’s Campaign for Real Beauty

 Advertising Management in India

• It is a big business and rank among the top industries along with oil, auto, it, and agriculture.
• Growth of advertising industry has direct correlation with the level of business activities
and the health of the economy.
• The size of advertising industry is considered an indicators of living standard in particular
country and it economic development.
• Indian economic remained closed for long period of time.
• Market had plenty of opportunity
• Demand for many products exceeded the supply.
• Customers have not much choices
• Example: to own a two wheeler customer were required to book in advance.
• So where was the need to spend on advertising and promotion
 Advertising Management

• After liberalization of economy in 1990s

• Many new player started operating in this country.
• Companies had huge competition and threats for survival.
• Business started re-adjusting themselves and become proactive
• Growth of new technologies, availability of new media, increase in middle class
income and aspiration led to the phenomenal growth of advertising and other form of
promotions
• The race is on to attract, create , offer more value and retain customers.
• Efficient and effective communication with target audience determine marketing
success and failure.
• Companies demand better results from money spent on ads.
 Brief History

• Researches have found that advertising existed in 3000 BC … ad for an ointment

dealer, shoes maker etc. Romans knew that it pays to advertising, Egypt has also
such examples.
• Trademarks, signs, town criers existed even before1438 AD
• Modern advertising is largely a product of twentieth century.
• Development of technology and research led to the increased sophistication of
advertising
• First modern ads were printed in London by William Caxton
• First English printed newspaper in 1622, weekly news of London
• First ads in America appeared in 1704 in the Boston news letter
• Earlier ads were in the form of announcement
 Advertising In India

• Most of the advertising emerged after World War II.

• Companies entered into new markets
• Large ad agencies opened their offices in different parts of the world
• Radio and TV emerged
• J. Walter Thompson and DJ Keymer laid the foundation of professional advertising in
India during 1950s.
• Focus was on art work, aesthetic creativity not on positioning
• In the beginning it addressed only the affluent class
• The real advertising activities emerged in 1990s
• Leading ad agencies of the world like Saatchi and Saatchi , Leo Burnet , BBDO, McCann
Ericson, Y and R , TWA, entered into India
 What is Advertising?

Advertising is any paid form of non-personal presentation and promotion of ideas,

goods, or services by an identified sponsor.
• Advertisement is salesmanship in print. (Gunther)
 Reach large population at low cost
 Message can be repeated
 It uses movement , visuals , sound and color,
 Enhances company and brand image
• Print and broadcast ads, Packaging inserts, Motion pictures, Brochures and booklets,
Posters, Billboards, POP displays , Videotapes
 Function of Advertising

• Inform: Stimulating needs and wants and create general awareness. Educating
consumers about new product or service. Make consumer aware about their needs.
Build brand image , develop brand preference etc.
• Persuade : the aim of comparative advertising is persuasion
• Remind: keeping the company or brand name always in the target audience
memory.
• Reinforce: reassure consumers that they have made wise decision by buying a
particular product or services. Like showing consumer report, performance record
etc.
 Characteristics of Advertising

• It is unrealistic to expect that an ad would directly produce sales.

• Advertising facilitate sales rather than accomplishing the complete selling function
• It helps in producing psychological effects and help in changing mental states of
audience to purchase a product or service
• It is a form of communication intended to deliver desired information to the target
audience.
• It encourages innovation and new product development and reduces risk.
• It does the pre-selling of the product make the job of salesmen easier, product quick
sales response
• Reaches the large audience at lesser cost in shortest time
 Media Tools

 Personal communication : allows personal addressing and feed back face to face, phone, mail, email,
internet chat etc.
 Non-personal communication: print media, electronic media, virtual media , OOH , display, and
events (press conference, grand opening, exhibits etc.)
• Selection of media depends on type of audience
• The number of audience they can reach and cost
• Example: Ad for designer dress for women , Famina, Vogue etc.
• Coca Cola: Avoid news program, violence program

Prof. M. C. Rashid Khan 14

 Classification of Advertising
Advertising to Consumers
• Classified advertising: Small messages grouped under a specific heading
(classification such as  automobiles, employment, real estate, matrimonial in a
separate section of a newspaper or magazine.

• These relatively inexpensive ads are usually a column wide, do not include

any graphics. They are text set in small type.
 Primary Demand Advertising

• It intends to build demand for entire product category or industry by concept selling
• Example: when fair and lovely fairness cream was launched it was first of its kind
• Focus was on better marital prospects, greater job opportunities, social
appreciation
• Example: Rasna is a category creator, MP3, alternative fuel car
• Industry association also create primary demand
• Example: National Egg Coordination Council
 National Advertising

• Advertising done at national level

• It is done when product is available nationally
• These ads are given by big companies with branded goods and services in print,
electronic and out door etc.
• Try to reach the mass
• Intend to communicate brand features, benefits, advantages, uses, creating image
etc.
• Select media which has wide reach, Doordarshan, ToI
• Sony, HUL, P&G, Dabour
 Retail (Local) Advertising

• It is done by retailers on a local scale

• Aimed at building store traffic, create distinctive store image and trigger sales ,
encourage patronage, loyalty
• The retailer is not concerned with any specific brand
• The general approach is “buy at our store” delivery free
• Give information about store and its offerings
• Sometime to clear stocks focused promotions are undertaken for a particular brand
 Public Service Advertising

• It is for the cause of public welfare

• It is created for non-profit reasons, public awareness,
• To inculcate habit of responsible driving, publish fear inducing ads , smashed egg-
wear helmet
• Family planning messages, anti smoking,
• Cancer patient help
 Corporate Advertising

• Focuses on establishing a corporate identity

• Advertising is brand building in nature
• It is extension of public relation function
• It does not promote specific product or services
• Its aim is to build and maintain the image of company, institutions
• It counter negative attitudes
• Link company with valuable national or social causes
• It focuses on ideas, technologies, skills , social contribution, financial strength , how good a
company is to work for.
• Sponsorships for a cause
• Target audience are customers, employers, financial institutions, political leaders and
government .
 End Product/ Ingredient Advertising

• Many products that are rarely purchased direct by the consumers.

• They are usually bought as part or ingredients in other product like, Teflon (DuPont),
Intel processor,
• It is also called branded ingredient advertising

• QUALCOMM Snapdragon ad
• Intel inside ad
 Direct Response Advertising

• This type of advertising encourages the consumers to respond either by providing

feedback to the advertiser or placing the order with the advertiser by telephone,
mail or internet.

• Mode of use: direct mail, catalogue, direct response print, advertising , telephone,
internet.
 Advertising to Professional

• This type of advertising is aimed at professionals such as architect, lawyers and

doctors

• It is directed towards people who are not the final consumers.

• Many professionals such as architects, engineers and medical consultants often

make final purchase for their clients.

• Media used are professional journals, direct mail, sometime mass media.
 Trade Advertising

• Targeted to channel members like distributers, whole sellers and retailers etc.
• Inform about the product, encourage then to stock more
• Increase number of retailers
• Achieve maximum distribution
• Provide inputs to sales representative and trade incentives

• Trade or retail magazines published by specific industry associations

 B2B Advertising

• Advertising is directed at those who are not the end consumers but institutional
customer who do not buy for self consumption.
• Manufacturers are buyers of machinery, equipment, raw materials and consumables
etc. in finishing finished products
• Media used, industry publications, direct mail, telephone, internet and trade fairs.
• Blue Star deep freezers are advertised to ice cream parlor owners.
 Non-Product Advertising

• Advertising being a powerful communication tool is often used to influence special

interest groups and sway public opinion.
• Idea Advertising :
 Environmental issues, population explosions, declining natural resources, road
safety measures, child labor, human rights, dowry, equal status to women
 Service Advertising

• Here emphasis is on tangiblizing the service

• Focus is on employee, quality, high level of services
• Caterpillar , IBM are known for their services
• Epson printers has poor service records
 Political Advertising

• Political advertising is component of political campaign and uses various media

including speeches.
• These advertising are comparative and includes negative one-sided attacks on rival
candidates and political parties.
 Surrogate Advertising

• A substitute (disguised) advertising.

• When the laws of the country do not permit advertising of certain product category
the advertiser take shelter of brand extension.
• Example: Launching soda brand in the name of whiskey , Bagpiper soda, McDowell
soda
Economical, Social and Ethical issues
in Advertising
 Economic Issues

• Effects on the value of product or services: highlight image, quality , use

• Effect on price: Advertising increases the product cost or decreases the product cost

• Effect on consumer demand and consumer choice: economic condition, income,

technological advances, education and lifestyles along with ads effects consumption

• Effect on Competition: Ads creates entry barrier or factors like quality, distribution,
R &D, competitive strategy
 Social Issues

• Ads influence social values, life styles, and society’s taste

• Play on the emotions, anxiety, psychological needs
• Creates class consciousness, materialism, unnecessary needs
• Targets children
• Stereotyping in advertising women depicted as homely, dependent on men, less
intelligent, weak, decorative objects, scantly dressed
• Customers graduate from lower order need to higher order needs
• Ads can force consumer to buy (freedom of choice)
• Why numbers of product are failing?
 Ethical Issues

• Ethics are moral principles and values that govern the actions and decision of an
individual or group
• Moral police question the selling of alcoholic beverage and tobacco products
• AXE, L'Oreal and Kelvin Klein use sex appeal excessively which is objectionable
• Puffery (best, no.1 , finest) is used to persuade consumers
• Misleading customers, bait advertising
• Advertising Standard Council of India (ASCI) maintains ethical code
• Advertising Agencies Association of India (AAAI)
• Example: Razor and aftershave ads suggest success with lady ???
 ASCI Guidelines

• The types of advertisement prohibited under the ASCI guidelines include

advertisements which:
• Incite people to commit a crime or promote disorder and violence or intolerance;
• Deride any race, caste, creed or nationality;
• Adversely affect friendly relations with a foreign State;
• Directly or indirectly promote restricted or prohibited goods;
• Use particular prohibited words
 Legal Aspect of Advertising

• Code for commercial advertising on DD suggests 33 Do’s and Don'ts for advertiser
and was presented in the parliament in 1987
• Consumer Protection Act 1986
• Indecent Presentation of Women (Prohibition) act ,1986
• Trade and Merchandise Marks Act, 1958
• Cable Television Networks (Regulation) Act, 1995
• Intellectual Property Right Act 1995
 How Is the Practice of Advertising Changing?
• Consumer in Charge, consumers to create its commercials.
• Blurring Lines and Converging Media, electronic and print
media being replaced with digital media
• Accountability and Effectiveness
• Integrated Marketing Communication
 Integrated Marketing Communication

• Customers are better informed in this wireless age

• They don’t relying only on marketer generated message they seek out information
on their own
• They connect to other customers, create own marketing messages
• Focus shifting from Mass marketing to micro marketing
• Marketers gather customer information, tracks customer needs and tailor their
offering to narrowly target groups
• Exciting new media helps to interact with target customers (via smart phone,
podcast, cable TV, social network, blogs)
• Companies are doing less broad casting more narrowcasting
 Need for IMC

• Companies fail to integrate their various communication channels

(mass media, sales promotions, sales literature, company website)
• Conflicting messages from different sources can result in confused
images, brand perception and customer relationships
• There is need to deliver a clear, consistent and compelling messages
about company and its brands
• IMC ties together all of company’s messages and images
• Every medium should have same messages, images, look and feel
 Communication System

• Intra personal
• Interpersonal
• Mass Communication
• Organizational
 Buying Behavior an IMC Perspectives

Buying Behavior:
The behavior people engage in when searching for, purchasing, using,
evaluating and disposing of product and services that they expect will
satisfy their needs, wants and desires.
• Marketing managers constantly endeavor to influence consumer
decisions.
• Marketing experts carefully develop messages that will entice buyers to
purchase the product.
 How Ads Change Attitude ?

• Changing the belief: rating of a brand on an important attributes (Indigo

has the most on time arrivals)
• Changing consumers’ perceptions (demonstrating safety in Mercedes
ads)
• Adding a new attribute (Heinz organically grown tomato sauce)
Panasonic introduced its projectors focusing on weight, brightness, and
wireless
• Changing perception for a brand (Volvo ads that show Volvo as stylish).
• Comparing the brands. Sprite vs Mountain Dew

CB Advertising Perspective 41
Consumer Buying Process B-to-B Buying Process

Problem Identification
Recognition Of Needs

Establish Specifications
Information
Search

Identify Vendors

Evaluation
Of
Evaluate Vendors
Alternatives

Select Vendor
Purchase
Decision
Purchase Negotiations

Postpurchase
Evaluation
F I G U R E 3 . 11
 Recognition of a Need

• The first step in the consumer decision-making process is the

recognition of a need or want.
• It can be a physical need or want, such as thirst or hunger.
• It can be a social need or want, such as seeing a friend with the latest
cell phone or new wheels on his car.
• It can be a psychological need or want, such as purchasing a new outfit
to wear to make an individual feel good about themselves, or because
they are depressed and buying something lifts their spirits.
 Motivation Research in Advertising

• A man’s purchase of high priced fur (coat) for his wife proves his
potency (power).
• Consumers prefer large cars because they believe such cars protect
them.
• Women like to bake cakes because they feel like they are giving birth to
a baby.
• Women wear perfume to attract a man and glorify their existence.
• When people shower, their dirt go down the drain with the soap as they
rinse.
 Researching Consumer Mind
• In-depth Interview: one-on-one personal interview
• Projective techniques: complete a sentence …
• I only buy Diet Coke when _______
• People who buy Thums Up are _______
• If Coca-Cola was an animal, which animal would it be?
• Association test: showing words, pictures , symbols etc and asked to
respond what come to mind
• Focus Group:
• Brand Personification

CB Advertising Perspective 45
 Information Search

 Understanding information search is important for marketing

communications.
• There are many motives that lead to the search for information,
including:
• Dissatisfaction with the last purchase.
• The desire to try a new brand or product for novelty or variety.
• The desire to expand an information search after hearing about a new
brand or a different brand from a friend or because of a positive
response to an advertisement.
 Methods of Evaluating Alternatives

• Objective criteria: price, quality, technical specification, warranty

• Subjective criteria: image, style, appearance

• Functional: speed of printer. Taste of soft drinks or accelerator of a bike

• Psychological: having different feeling, how other will view

 Purchase Decision

Actual purchase intention develops at this stage

Location, Time, place of purchase
Price, delivery and warranty
Payment method
Services offered
Free samples, schemes, giving reminder ads,
“Yahi Hai Right Choice Baby”, ‘Sab Ki pasand Nirma’,
“Coca Cola Enjoy”
 Post Purchase Behavior

The customer evaluate the performance as per expectations and

compare with competitor’s product.
Satisfactions influence repeat purchase.
Many companies ask for feedback from customers after a few day of
delivering the products.
Sending follow up letters.
Giving toll free numbers, email etc.
Offer liberal return policy.
Reinforce the consume choice.
 Environmental Influence on Consumer Behavior

• Culture factors
• Social factors
• Psychological factors
 How does brand communication work?
Hierarchy of Effects Model
• At its most basic, brand communication is a message to a consumer about a
brand.
• It gets attention and provides information, sometimes even entertainment
• It is purposeful in that it seeks to create some kind of response:
 an inquiry, a sale, a visit to a website, a test drive
• Most traditional advertising is not as personal or interactive as a conversation
because it relies on mass communication.
• However, marketing communication, such as personal selling and telemarketing,
can deliver the personal contact of a conversation.
 How does brand communication work?
Hierarchy of Effects Model

Cognitive
(Think)
Awareness
Affective
(Feel)
Knowledge
Conative
Liking (Do)

Preference

Conviction

Purchase

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Advertising Agency Management
 Introduction

• The average person encounter more than 100 advertising per day
• These messages are delivered through an expanding variety of media like television,
radio, newspapers, magazine, billboard, signs, direct mail and internet etc.
• A company can not prepare ads for every possible medium.
• To be effective an ad must be noticed, remembered and entice some kind of actions
like purchase, shift loyalty
a) Develop logical advertising management scheme for company
b) Thoughtful design for advertisement
c) Careful selection of media
 Advertising Agencies

• Is an independent business organization

• Develop, prepare and place advertising in media
• Develop marketing, promotional and PR programs
• Helps client find customers for their goods and services through creative ads
Advertising Agency Management
 Types of Ad Agency

• Full Service Agency: offer full range of services like planning, creating and producing
ads, media selection, research, sales training, package design, sales promotion,
event management, trade shows, creating web site, publicity and PR
• Functions of Ad Agency are :
• Account service
• Research department
• Media Department
• Creative department
• Production Department (hire printers, photographers, casting of actors, production studio,
director etc.)
• Finance and administration
 Limited Service Agency

 Media buying service

 Creative Boutiques provides services like copy writing, help in deciding theme,
appeal, prepare story board etc.
 Sales Promotion Services (design, contest ,lucky draws, scratch cards , display etc.)
 Event management services
 Public Relation services
 Design Studio: Graphic design for brand, corporate identity materials and packaging
etc.
 Web site design services
 Production houses
 Research companies
 Why to Choose Advertising Agencies?

• Advertising agencies provide a number of services for companies

seeking to refine their IMC programs.
• Consulting and giving advice about how to develop target markets.
• Providing specialized services for business markets
• Providing suggestions on how to project a strong company image
• Supplying assistance in selecting company logos and slogans
• Preparation of ads
• Planning and purchasing media time and space
 Ad Agencies Have Skilled Specialists

Artists Writers Researchers

Photographers Media Analysts Other Skills

 Steps in Selecting an Ad Agency

• Selection process and criteria

• Set Goals
• Screen initial list of applicants
• Request client references
• Reduce list to two or three viable agencies
• Request creative pitch
• Agency selection
 Set Goals

• It is important to identify and prioritize corporate goals before

contacting an advertising agency.
• It ensures a good fit between the company and the agency.
• Guides and providing ideas of what is to be accomplished.
• Helps marketing team to make request for appropriate proposal for
campaign.
• Deliver more creative and engaging campaign
• Heighten the profile and performance of brands
• Select best agency for each brand
 Evaluation Criteria in Choosing an Ad Agency

• Size of the agency

• Relevant experience of the agency
• Conflicts of interest
• Creative reputation and capabilities (awards won by agency)
• Production capabilities
• Media purchasing capabilities
• Client retention rates
• Personal chemistry
 Creative Pitch and Agency Selection

• 2 to 3 finalists
• Formal presentation  shootout
• Specific problem/situation
• Expensive for agencies

• Reference Requests, Background checks

 Agency Compensation

• Commission from media

• Example: 15% on any advertising time or space purchased, for outdoor media it is
16.66%
• Negotiated fees
• Example: A fixed fee (producing cost) and commission

• Mark up /percentage charge (incase agency purchase various services (MR,

artwork, photography and printing etc) from other agency add extra 17.65 % in the
bill).
• Incentive (performance ) based compensation
 How agencies acquire new Clients

• Referrals
• Presentation
• Public relations
• Image & Reputation
• Competition, dissatisfied client
• Client agency relationships
 Reasons Why Agency Lose Clients

• Poor performance or service (advertising quality)

• Poor communication
• Unrealistic demand by the client
• Personality conflicts (between the client and agency personnel)
• Changes of size of the client or Agency
• Conflicts of interest
• Declining sales
• Changes in policies
• Changes in the client’s corporate/ marketing strategy