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Introduction to advertisements

S. Ajit

Introduction to advertisements
 Big Business (persuasiveness, cost effectiveness, mass communication, brand bulding)  Growth of ad industry directly related to the level of business activity and the health of its economy  Before liberalization and after liberalization [Bajaj Auto, Maruti Udyog, ITC, Raymond etc]  Factors – new technologies, new media & media vehicles, increase in middle class income and aspirations Efficient and effective communication with the target audience can be the difference between marketing success S. Ajit and failure

Communication
• The exchange of ideas, between a sender and a receiver

Communication Process in Promotion- an example
Source Encoding Media TV Commercial Receiver Decoding Feedback

HUL ad for Audio & Surf Excel Video

Housewives & Consumers Purchase of also everyone learning about Surf excel at home the product’s sales rise up stain removing capacity

S. Ajit

behaviors The main job of promotion is to tell target customers that:  the right Product is available.Marketing Communication Continuous interaction between sellers and potential buyer or others in the channel to attract potential buyers and influence their attitudes and behaviors. Ajit . and  at the right Price S.  at the right Place.

The Role of Marketing Communications Persuading Informing Reminding S. Ajit .

Basic Promotion Methods Target Market Product Place Promotion Price Advertising Advertising Personal Personal Selling Selling Public Relations Public Relations & Publicity & Publicity Sales Sales Promotion Promotion Direct Direct Marketing Marketing .

Town criers As education became an apparent need and reading. advertising expanded to include handbills. Ajit .History of Advertising Wall or rock painting for commercial advertising . First known print ad in English (about 1488 AD) – rules for the guidance of clergy at Easter put on church doors First circulated ad – Germany (about 1525 AD) – drug (medicine) First Ad in America – 1704 – Capture of a thief During 17th century – weekly newspapers carried ad for coffee.4000 BC About 3000 BC – clay tablet – inscription for an ointment dealer. chocolate. developed . tea S. as well as printing.Egypt – announcement for reward for the return of runaway slaves Before the invention of printing machine (about 1438 AD) by Gutenberg • Trademarks. Signs. a shoemaker .Indian rock art .

1806 1890 1895 .

J Walter Thompson (HTA) and D J Keymer (Ogilvy & Mather) – 1950s S. efforts to rebuild nations and economies Till 1950s – creativity was non-existent. all ads were ‘me too’ ads Rosser Reeves of Ted Bates Agency – originated the concept of USP India . Ajit .History of Modern Advertising Mid 19th century – Volney B Palmer – first ad agent – sold space for newspapers J Walter Thompson – ad executive had contracts with 25 of the best American magazines – Inventor or Modern Ad Agency Claude C Hopkins – ‘reason why’ approach Theodore McManus – incorporated art. striking layout and elegant writing Growth in advertising happened after second world war .Competition.

72 billion $4.Top Global Ad Spenders Rank Company 1 2 3 4 5 6 7 8 Procter & Gamble Co. Coca-Cola Co. Ajit .60 billion $2. Johnson & Johnson Ford Motor Co.73 billion $5. Toyota Motor Corp.04 billion $3. Ad spending $9.67 billion $2.45 billion S.20 billion $2. Unilever L'Oreal General Motors Co.67 billion $3.

706. Television.451 1.231 2.122.783 2. India registered 19 % growth compared to 3rd quarter of 2009 as compared to average Asia Pacific growth of 9 %.006 301.995 1.027.439 37.154 171.048 1.601 381.263.880.100 619.006 907.111 7% 15% 16% 19% 13% 3% 12% 12% 10% 6% 6% 19% 9% . Newspapers & Magazines Across 12 Asia Pacific Markets % Change with Q3 ‘09 Q3 2010 ($US 000’s) China Indonesia Hong Kong India Australia South Korea Philippines Thailand Malaysia New Zealand Singapore Taiwan Total for Q3 2010 25.153.Top Ad spenders • According to latest Nielsen report.193.296 517.

ITC Ltd 4. Bharti Airtel Ltd 6. Procter & Gamble products 8. 3. Reckitt Benckiser (India) Ltd. Hindustan » » » » » » » » » Unilever 2. 7. Coca-Cola India Ltd.Top 10 indian ad spenders • Advertising spends for the year 2008 » 1. Nokia Corporation 10. PepsiCo 5. Colgate Palmolive India Ltd 9. Johnson & Johnson Ltd .

banks. donations Identified sponsor: sponsor of ideas or opinions is known. goods and services by an identified sponsor Any paid form: advertisers need to buy space or time for an ad message (exceptions) Non personal presentation & promotion: no personal interaction. AIDS awareness.Defining Advertising Any paid form of non. soft drinks. antismoking.personal presentation and promotion of ideas. delivered through media Ideas. goods & services: Automobile. hence authenticated What can be advertised? S. Ajit .

• Reminder advertising Advertising that reinforces previous promotional activity by keeping the name of a good. idea. service. service. organization. place. • Persuasive advertising Promotion that attempts to increase demand for an existing good. Ajit . service. idea. place. place. or cause. organization. S. person. person. person. or cause before the public. or cause. idea.• Informative advertising Promotion that seeks to develop initial demand for a good. organization. • Advertisers coordinate advertising objectives with the product’s stage in the product life cycle.

April 28. Ajit . S. 2010 By research firm Millward Brown Optimor.

Without the first trial of a product by customers. there will not be any repeat purchases.strategy to keep current customers using a particular product . Continuity . Switchback .Objectives of Advertising • Trial . price reductions.to build consumer loyalty.Objective is to encourage customers to make an initial purchase Companies will typically employ creative advertising strategies .A company might highlight new product features. strategy is to compare product price or quality in order to convince customers to switch to its product brand.to switch from competitors’ brands to their brands. Brand Switching . . • • • .to get back former users of their product brand. or other important product information in order to get former customers of its product to switchback.

The Functions of Advertising • • • • • • • Builds awareness of products and brands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases and brand experiences .

Advertising and… • • • • Marketing Communication Economy Society • The process a business uses to satisfy consumer needs by providing goods and services – Target Market • Market positioning (La belle. VLC) • Market differentiation (Everest Masala) – Brand building • Competitive advantage .

Advertising and… • • • • Marketing Communication Economy Society • • • • • Can reach a mass audience Introduces products Explains important changes Reminds and reinforces Persuades .

Advertising and… • • • • Marketing Communication Economy Society • • Moves from being informational to creating demand Advertising is an objective means for providing price-value information. thereby creating a more rational economy .

Advertising and… • • • • Marketing Communication Economy Society • • • • Informs consumers about innovations and issues Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer self-image .

hoardings) Covert Advertising – Advertising in Movies (In-film) – Surrogate Advertising – Advertising Indirectly – Word-of-mouth • Geographic coverage – – – – National Regional Local International • Aim – Information – Awareness creating – Public service . Internet Outdoor (PoP.Types of Advertising • Target audience – Consumer – Industrial • Media Used – – – – Print Electronic: Radio. TV.

Interest: raise customer interest by focusing on and demonstrating advantages and benefits (instead of focusing on features.Attention (Awareness): attract the attention of the customer.Action: lead customers towards taking action and/or purchasing. as in traditional advertising) • D . • A .Response Models • AIDA is an acronym used in marketing that describes a common list of events that are very often undergone when a person is selling a product or service: • A . Ajit .satisfy the customer so they become a repeat customer and give referrals to a product.Desire: convince customers that they want and desire the product or service and that it will satisfy their needs.Satisfaction . S. • I . • Nowadays some have added another letter to form AIDA(S): • S .

Adoption process. Ajit . and AIDA Model Promotion Objectives Adoption Process Awareness Interest Evaluation Trial Decision Purchase AIDA Model Attention Interest Informing Persuading Desire Reminding Action S.

Response Models -Hierarch of Effects Model Cognitive Stage Awareness Knowledge Affective Stage Liking Preference Conviction Behavioural Stage Purchase S. Ajit .

Response Models . Ajit .Innovation Adoption Model Cognitive Stage Affective Stage Awareness Interest Evaluation Behavioural Stage Trial Adoption S.

Adoption Stages .

Promotion Varies Over the Life Cycle “This new idea is good” “Our brand is best” “Our brand is better. really” “Let’s tell those who still want our product” .

Ajit .AIDA Model: Impact of promotional tools on consumer response Advertising Personal Selling Effectiveness Public relations Sales and publicity promotion Awareness/Attention Interest Desire Action S.

Ajit .Advertising and Promotion: Two Viewpoints Proponents Argue That Proponents Argue That Advertising and Promotion: Advertising and Promotion: Provides Provides Information Information Encourages Encourages A Higher Standard A Higher Standard Of Living Of Living Promotes Promotes Competition in Competition in The Marketplace The Marketplace Creates Jobs and Creates Jobs and Helps New Firms Helps New Firms Enter a Market Enter a Market S.

Materialism. Ajit . Insecurity and Insecurity and Greed Greed S.Advertising and Promotion: Two Viewpoints Critics Argue That Advertising and Critics Argue That Advertising and Promotion Promotion Creates Needs and Creates Needs and Wants Among Wants Among Consumers Consumers Is More Is More Propaganda Propaganda Than Information Than Information Promotes Promotes Materialism.

Ajit . govern the actions of and individual or group. A Marketing or A Marketing or Promotion Action Promotion Action May Be Legal but May Be Legal but Not Considered Not Considered Ethical Ethical Marketers Must Marketers Must Make Decisions Make Decisions Regarding the Regarding the Appropriateness Appropriateness of Their Actions of Their Actions Not All Issues Not All Issues Can Be Can Be Regulated Regulated S.Ethics in Advertising and Promotion Ethics: Moral principles and values that Ethics: Moral principles and values that govern the actions of and individual or group.

Advertising as Untruthful or Deceptive Many Do Not Perceive Ads As Honest Many Do Not Perceive Ads As Honest or Believable or Believable Abuses Involving Sales Promotions Abuses Involving Sales Promotions Such As Contests. Telemarketing and Other Forms of Direct Marketing and Other Forms of Direct Marketing Internet Scams and Abuses Internet Scams and Abuses S. Premium Offers Such As Contests. Ajit . Premium Offers Unethical And/or Deceptive Practices Unethical And/or Deceptive Practices Involving Mail Order. Telemarketing Involving Mail Order.

Advertising as Offensive or in Bad Taste Objections to Objections to Advertising Advertising Of Certain Products Of Certain Products Use of Sexual Use of Sexual Appeals And/or Appeals And/or Nudity Nudity Use of Shock Use of Shock Ads Ads S. Ajit .

Ajit .5 hours of TV per 21.000 commercials per year per year Television is an Television is an important source of important source of information for information for children about products children about products S.5 hours of TV per week and may see week and may see 22.000 commercials 22.Advertising and Children Children's TV Children's TV Watching Behavior Watching Behavior Children between ages Children between ages 2-11 watch on average 2-11 watch on average 21.

Ajit .Perspectives on Advertising to Children Consumer Advocates Argue That Consumer Advocates Argue That Children Are Vulnerable to Children Are Vulnerable to Advertising Because: Advertising Because: They Lack the They Lack the Knowledge and Knowledge and Skills to Critically Skills to Critically Evaluate Evaluate Advertising Claims Advertising Claims They Cannot They Cannot Differentiate Differentiate Between Programs Between Programs and Commercials and Commercials While Marketers Argue That: While Marketers Argue That: Children Must Learn Children Must Learn Through the Through the Socialization Socialization Process Process S.

Advertising and Stereotyping Portrayal of Women to Portrayal of Women to Reflect Their Changing Reflect Their Changing Role in Society Role in Society Gender Gender Stereotyping Stereotyping Stereotyping Stereotyping Portrayal of Portrayal of Women As Women As Sex Objects Sex Objects Portrayal of Portrayal of The Elderly The Elderly Stereotyping of Stereotyping of Minorities Minorities S. Ajit .

Ajit .Economic Impact of Advertising Effects on Consumer Choice Effects on Consumer Choice • Differentiation • Differentiation • Brand Loyalty • Brand Loyalty Effects on Competition Effects on Competition • Barriers to entry • Barriers to entry • Economies of scale • Economies of scale Advertising as an expense that Advertising as an expense that increases the cost of products increases the cost of products S.

in .Ad agencies in chennai • • • • • • • • Redifussion Advertising Ltd maps.co. Egmore Chennai.google.044 28585406 Ogilvy and Mather Advertising Rukmani Lakshmipathi Road.044 42146465 Fingerprints Advertising fingerprintscreative.044 28194422 WOC Advertising Enterprize www.woc.com .kasindia.com . Tamil Nadu Kannan Advertising Service P Ltd www.044 42140067 .in .

Ad agencies • Ogilvy & Mather – Fevicol moochwali – Vodafone zoo zoo – Bajaj Pulsar fastest indian .

Vodafone ZOO ZOO .

Ad agencies • JWT .HTA – Pepsi – goodknight .

Ad Agencies • Lowe Lintas – Idea cellular – walk the talk and use mobile to save trees – Havell’s – save energy. wash ur sins – DLF IPL3 first week .

Ad Agency • McCann Erickson – Happydent wave gum .

Ad Agency • Mudra – – – – Air India LIC Dabur Bank of Baroda .

Ad Agency • RK Swamy BBDO – Orient fans .

Ad Agency • HUL. • Coca cola – O&M. McCann Erickson . O&M and McCann Erickson. for example. works with Lowe.

Media Vehicle .Coke or Pepsi .

Ad agency • Plays a major role of closing the distance between the advertiser & the media. It offers numerous services to the advertiser .

and carry out actual physical production of advertisement and its placement in selected media.Role of Advertising Agencies in Business Market Advertising agencies work on • • • • • advertising strategy and campaigns. study markets. prepare copy and layouts. select media. .

pop material & other promotional material • Help& counsel on sales promotion & other communication task . outdoor & electronic advertising • Carryout collateral designs of various items such as display material.Purpose of advertising agency • Advice & counsel on marketing strategy • Advice & counsel on advertising & media strategy & tactics • Prepare & develop print .

How to select an advertising agency Media related information • Percentage on – TV – National press – other press – Radio – Outdoor & transportation – Sales promotion – Other significant media services .

Agency Services • Account services – The link between agency and client – Managed by the Account Executive • Marketing services – Research department may design and execute research programs – Media department may analyze. artists. other specialists . select and contract media resources • Creative services – Creation and execution of ads – Copywriters.

Types of Ad Agencies • • • • In – House Full – Service Creative Boutique Interactive .

get trained professionals • Good idea of what works.creating. producing & placing ads • Cost – effective way.house agency • Not every organization can afford to have all the specialist. what doesn’t and why .In.

In-House Agencies + Positive Cost Cost Savings Savings .Negative Less Less Experience Experience More More Control Control The The In-house In-house Agency Agency Less Less Objectivity Objectivity Better Better Coordination Coordination Less Less Flexibility Flexibility .

Coca Cola’s in-house boutique created this Ad .

Full-Services Agencies Planning advertising Planning advertising Creating advertising Creating advertising Producing Producing advertising advertising Strategic market Strategic market planning planning Sales promotion and Sales promotion and training training Trade show Trade show materials materials Full Range of Full Range of Marketing Marketing Communication and Communication and Promotion Services Promotion Services Performing research Performing research Selecting media Selecting media Package design Package design Non-Advertising Non-Advertising Services Services Public relations and Public relations and publicity publicity .

Typical Full-Service Agency Organization Board of Directors President VP Creative Services VP Account Services VP Marketing Services Research VP Management and Finance Writers TV Print Account Media rt DirectorsProduction Production Supervision Traffic Traffic Account Executive Sales Office Promotion Management Personnel AccountingFinance .

select and contract media and contract media resources resources Creative Services Creative Services The link between The link between agency and client agency and client Managed by the Managed by the Account Executive Account Executive * the client’s * the client’s marketing needs marketing needs * strategy * strategy development development Creation and Creation and execution of ads execution of ads Copywriters. other specialists specialists . artists. other artists.Services Provided by Agencies Agency Services Agency Services Account Service Account Service Marketing Marketing Services Services Research Research department may department may design and execute design and execute research programs research programs Media department Media department may analyze. Copywriters. select may analyze.

s The planning group handles more strategic marketing and media issues. s The buying group handles media negotiations and implementation.planning and buying.Media department • The media department has two main functions . .

Research Department • interpret market environment – gather and analyze research data. – primary and secondary techniques determine consumer needs/perceptions – understand problems advise how ads can meet strategic goals – help find solutions • • .

Ad Agencies Have Skilled Specialists Artists Artists Writers Writers Researchers Researchers Photographers Photographers Media Analysts Media Analysts Other Skills Other Skills .

Creative Boutiques • Provide only creative services • Creative Boutique restricts its services to develop innovative concepts & message ( not offer agency service+ Media planning & research) • Other functions provided by the internal client departments • Full-service agencies may subcontract with creative boutiques .

The Role of Creative Boutiques Creative Creative Boutiques Boutiques Provide Only Creative Services Provide Only Creative Services Full-Service Agencies May Subcontract Full-Service Agencies May Subcontract With Creative Boutiques With Creative Boutiques Other Functions Provided by the Other Functions Provided by the Internal Client Departments Internal Client Departments .

Interactive Agencies Web Web Banner Ads Banner Ads Web Sites Web Sites Interactive Media Interactive Media Creation Creation CD-ROMs CD-ROMs Kiosks Kiosks Search Engine marketing Audio Audio Video Video Digital Content Digital Content Animation Animation Special Effects Special Effects .

Media Buying Agencies • Media planning. buying & placement • Specialize in buying media. especially broadcast time • Agencies and clients develop media strategy • Media buying organizations implement the strategy and buy time and space .

Why they change agencies • More Pay – major source of tension • Changes in – – – – – Strategy Management New product New business New competitor .

Why Agencies Lose Clients Personnel changes Poor performance Poor communications Changes in size Personality conflicts Changes in strategy Declining sales Payment conflicts Policy changes Unrealistic demands Conflict of interests .

Reputation Image.How Agencies Gain Clients Referrals Referrals Presentations Presentations Solicitations Solicitations Public Relations Public Relations Image. Reputation .

Methods of Agency Compensation 19th century – based on the space sold by an agency Commissions Commissions Method Method Cost-Plus Cost-Plus Agreements Agreements Compensation Compensation Methods Methods Percentage Percentage Charges Charges Fee Fee Arrangements Arrangements Incentive-Based Incentive-Based Payment (15% to 25%) Payment (15% to 25%) .

or by project • Pay for results (Incentive based) – Tightly specified objectives .Agency Compensation • Commissions – Around 15 % of airtime fees – 16 2/3 % for outdoor media – Web media is negotiated • Markup charges – Production cost + Fixed % • Fee System – Hourly rates.

Ad Campaign • A series of related advertisements focusing on a common theme. . slogan. and set of advertising appeals.

3 Steps in Creating an Advertising Campaign Determine the advertising objectives. Evaluate the campaign. . Make media decisions. Make creative decisions.

3 Setting Objectives: The DAGMAR Approach Goal of Goal of Advertising Advertising Objectives Objectives Define Define Target Target Audience Audience Define Define Desired Desired Percentage Percentage Change Change Define the Define the Time Frame Time Frame for Change for Change .

3 Creative Decisions Identify Identify Product Benefits Product Benefits Components Components of of Creative Creative Decisions Decisions Develop and Evaluate Develop and Evaluate Advertising Appeals Advertising Appeals Execute Execute the Message the Message Evaluate the Evaluate the Campaign’s Effectiveness Campaign’s Effectiveness .

3 Identify Product Benefits • Sell product’s benefits. not its attributes • A benefit should answer “What’s in it for me?” • Ask “So?” to determine if it is a benefit .

Some of Pepsi’s successful Campaigns .

Yeh Dil maange more .

Bubbly Campaign .

Youngistan

Youngistan Campaign
“Yeh hai Youngistaan Meri Jaan “

• This campaign has two new celebrities Ranbir Kapoor and Deepika Padukone —who acted in the two most-talked about Hindi films in 2007, to accompany brand ambassador Shah Rukh Khan. • “This time we wanted an all-encompassing theme. ‘Youngistan’ reflects the mood of India’s youth, which is today keen to take the ropes and drive India,” says Punita Lal, executive director, marketing, PepsiCo.

About Youngistan

Segmenting pattern

Demographics: The Campaign targets teens and young adults of metros and phase II cities.

• Psychographics: The campaign attempts to capture the youth of today by focusing on their personality,lifestyle and attitude of youth through the advertisement

Placement of the Campaign
• The campaign was first launched on T.V during the tri-series matches in February. • The campaign is launched with a 360-degree activation across radio, outdoor, modern trade, Web and wireless platforms.

• Pepsi has launched a website for Youngistan inside the Pepsi Cool Zone and is planning to make it a responsive peer group site where youngsters can visit and make comments on any topic. • Pepsi Youngistan is also sponsoring ‘‘Wassup Youngistan” on MTV, a show where youth can voice their thoughts.

V advertisement .Youngistan T.

. Walter Thompson). ranks as the largest advertising agency brand in the U.Advertising Agency for Youngistan • JWT ( J.S. and as the fourth-largest full service network in the world. It was the first agency to be associated with anthropology and the study of consumer behavior.