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AdvertisingMeaning The word advertising has originated from the latin

word "Adverture" which means to turn the mind towards Itincludes all the activities directed towards attracting the

attention of the people towards something

American marketing Association:"Any paid form of non

personal presentation and promotion of ideas, goodsor servicesby an identified sponsor

Sidney Bernstein (1990)"Advertising act as a substitute for the

human activities of salesmanship"

Russel Veril- Advertising is a message paid by identifiedsponsor and delivered thru some medium of mas

communication

Jones" A sort of machine made mass production method of

selling which supplement the voice and personality of the

individual

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Nature of advertising1. Mass communication2. Commercial Communication/ Non Commercial

3. Non Personal communication

4. Identified sponsor

5. Informative in action

6. Impersonality

7. Promotion of goods, services and ideas

8. Public presentation

9. Persuasiveness

10.paid for

11.Competitive act

12.Creative act

13.controlled by a sponsor

14.creates prospective consumer

15.A form of presentation

16.Amplified expressiveness

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Classification of advertising Audience: Consumer, Trader etc.

Advertiser: National, Regional, Zonal, Local

Media-paper ads, Radio ads, TV ads, Net Ads etc

Function: Pd ads, services, Direct action etc.

Objectives, informative, comparative, innoculative ads,refutational ads, reminder ads, Image building Ads

Presentation style: Display Ads, Classified Ads

Strategy: Primary , Secondary, Push and Pull Ads Approach: Focused, Utilitarian, Informative,

Achievement, Non specific etc.

Types (examples)

Product Ads

Corporate Ads

Service AdsBusiness Ads

National ads

Retail Ads

Public service Ads

Display Ads.

Classified Ads.

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Space getting space for the such ads in print media

easy

Not easy

Cost less High

Done by individual concern Done by big business houses and firms

Aim immediate sale of goods Aim brand loyalty

Ad. Planning does not exit It exists

Life of such ad is less Life is more

Not very attractive Very attractive

No creativity Very high creativity

Color used is black and white Multicolor

No illustration Illustration with real photo and cartoons

Classified ad Displayed Ad

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Evolution of Ads.

Stage I: Ancient times to the fifth century

1. Greeks and Romans created way to Ads

3. Criers and barkers,

3. Wall signs for identification

4. Theatrical performances, gladiator shows and exhibitions

Stage II 5th to 8th century

1. Dark age (475 AD to 800 AD) downfall of Roman Empire was a period of gloom

for ad

2. Lack of literacy

3. Public barkers equipped with horns and bell

StageIII 9th to 15 th century

1. Free sample started by Gries Davarns in 13th century

2. Printing developed in China

3. Printed poster, handbill, pamphlets books newspaper

Stage IV 16th to 17th Century

Newspaper, Newsletter, News books, Advertising periodicals, announcements came

into force

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Advertising Management

-The issues

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The three phases The Advertising Planning

Implementation

Evaluation and control

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Ad Planning Situation Analysis

Marketing Program

Objective setting/ segmentation/Positioning

Message Strategy and tactics

Media Strategy and Tactics

Advertising Plan

The

persuasion/

communica

tion matrix

Framework of Advertising planning and decision making

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Major Decisions in AdvertisingMajor Decisions in Advertising

Objectives Setting

Budget Decisions

Developing Advertising StrategyMessage Decisions

Campaign Evaluation

Developing Advertising StrategyMedia Decisions

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Advertising Plan

E

stablishing advertising objectives Selecting ad message

Set the ad budget

Develop the media strategy

Evaluate ad effectiveness

How to Plan for campaigns

CAMPAIGN PLANNING

1. Set Advertising Objectives

2. Set the budget

3. Determine the creative strategy

4. Select the Advertising media

5. Evaluate the results of the Ad campaign

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Informative AdvertisingBuild Primary Demand

Setting Advertising ObjectivesSetting Advertising Objectives

Persuasive AdvertisingBuild Selective Demand

Comparison AdvertisingCompares One Brand to

Another

Advertising Objectives

Specific Communication Task, Accomplished with a Specific TargetAudience,

During a Specific Period ofTime.

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

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Establishing objectives

Consideration in Setting ObjectivesTarget Market, Product, Competitive Factors,

Competency factors(positioning issues)

Ad. Objectives can be into two categories

Sales Objectives-Action obj.

Communication objectives- Awareness objectives,Comprehension objectives, Conviction obj.,

To get attention

To create awareness and encouraging information search

Persuading/ Prompt direct action

Reminding or reinforce attitudes

Relate the product needs

Modify attitudes etc

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Establishing objectives( on the basis of Paul Harpers observations)

To

Induce trial

Intensify usage

Sustain Preference Conform imagery

Change Habits

Build awareness

Make announcements

Make or build acceptance

Improve and sustain corporate image

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The advertising briefing Marketer Adman interaction

Detail of the project management

Present status-desired status

Plan of action

Defined target audience

Paramaters of measurement Practicalities-budget, deadlines etc.

Approvals.

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Developing Advertising StrategyCreating Advertising Messages

Developing Advertising StrategyCreating Advertising Messages

Plan a Message StrategyGeneral Message to Be Communicated to Customers

Develop a MessageFocus on

Customer Benefits Creative Concept

Big Idea

Visualization or PhraseCombination of Both

Advertising AppealsMeaningful

Believable

Distinctive

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Creative Strategy

(The Message) Creative Strategy guideline for ad

specialists

It gives details about-kind of message, to

whom and in what manner

It should define target audience, product

concept, communication media and theadvertising message.

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Types of Creative Strategy Generic Strategy

Preemptive Strategy

USP strategy-high tech pds.

Brand Image strategy-low tech pds.

Positioning strategy

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Creative StrategySome components of the creative strategy

The creative objective

The target market

PSP

E

SP/SSP Support arguments

Tone and Manner-appeals

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Developing Advertising StrategyMessage Execution

Developing Advertising StrategyMessage Execution

TypicalMessageExecution

Styles

Testimonial

EvidenceSlice of Life

Scientific

EvidenceLifestyle

Technical

ExpertiseFantasy

Musical

Personality

SymbolMood or

Image

Turning the Big Idea Into an Actual Ad to Capture theTarget Markets Attention and Interest.

Animation

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Advertising appealsAn appeal is the manner in which an message is developed andexpressed, to derive a particular consumer response or influence

decision making

Depends on

objective of the advertisement

The product

The creative brief

time frame

Advertising appeals can be broadly divided into three categories

Rational Logical Appeal

Emotional Appeal

Others appeal

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Advertising appeal

Advertising Appeal

Rational Appeal

Price Appeal

Quality appeal

Feature appeal

CA appeal

News appeal

Humour appeal

Fear appealMusic appeal

Sex appeal

Star appeal

Reminder ads

Teaser appeal

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Creative Strategy

Appeal Examples

Affiliation appeal Cigarettes, softdrink

Security Appeal Insurance, umbrella wollen

Social Appeal Lions club memebership

Comfort appeal Furniture, grinder calculator

Envy appeal Wardrobe cosmetics

Fashion Appeal Readymade garments, trendy tops and t-

Shirts

Sex and romeace appeal Honeymmon package

Greed appeal Free gift, discounts

Curiosity appeal Books, games, tourist destinations

Competence appeal Equipment for doctors

Prestige appeal Mercedes car

Love appeal Give youyr family a loving care of dettol

Thrill appeal Coca Cola Ads

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The Creative Tactics Idea Generation-referNPD

Copywriting -Copy writing in print isthe activity of actually putting words into paper particularly those contained in

the main body of the text but alsoincluding attendant bylines andheadlines Headline, Subhead,Bodycopy, Slogan, Logo, Visuals

Copywriting in Broadcast Mediarefers to complete script, jingle, music,etc.

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The Creative Tactics Important guidelines for copywriting by John Caples member of

Advertising Hall of Fame

Cash in your personal experience Organize your experience

Write from heart

Learn from experience of others

Talk to the client

Study the product Study the competitors ads

Study testimonials

Give final touch

Illustration: made by artists by generating pictures,charts, tables,graphics for drawing attention

It can include logo, graphics etc.

The visuals can be created by a no. of ways- hand Madepaintings, Clip Art, Photographs, computer generated

visuals

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The Creative Tactics Layout: An ad layout is preliminary sketch or plan

that gives a feel of the overall appear. The layoutactivity involves bringing all the pieces togetherbefore ad is sent out for production. It involvesdecision as to how the various components ofheadlines, illustrations, copy and identificationmarks are to be arranged and positioned on thepage. The layout design passes through severalstages:

-Thumbnail

-preliminary layout

-comprehensive layout

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The Creative TacticsLayout design decides the readability and

effectiveness of the ads.The design governs theplacement and structure of the Ads Designs aregoverned by Principles:

-Balance

-Proportion-Gaze Motion

-Unity

Layout prep. concepts

Choosing Page design-

Ayer #1-large/ big picture little text

Mondrian

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The Creative Tactics contd

Type specimen

Copy heavy

Rebus-lot of pictures, photos, diagrams are used atthe end little text is added

Circus-bold headline, colur usage

Frame.

Working with the copy-type face, font , size etc.Working with the visuals

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Creative Process in Audi-Visual

Idea Generation

Copywriting

Illustration

Layout

Copy testing & Diagnosis

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The Ad production process Conceptualization

Ad objectives, target market, the budget- message

and media strategy is devised.

Execution

Evaluation

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Percentage-of-Sales Method

Setting Promotion

Budget at a Certain %

of Current or

Forecasted Sales

AffordableMethod

Setting Promotion

Budget at the Level the

Company Thinks They

Can Afford.

Competitive-ParityMethod

Setting Promotion

Budget to Match

Competitors Outlay

Objective-and-TaskMethod

Setting Promotion

Budget by DefiningObjectives, Tasks &

Costs.

Setting Advertising Budgets

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Media Planning process Environment analysis

Media Objectives:Reach, freq, Continuity, Costs

(cpm, cpt)

Media strategy- Target market decisions, media

budgeting, media selection(refer OHP handout),

media scheduling-(space,time, no.of insertions,

size,cost)

Implementing and following the media plans

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Media Characteristics Reach and Frequency-Penetration, coverage

and flexibility

Circulation and readership Selectivity-Geographic and Class

Selectivity (Demo and Psychographic)

Cost-Milline rate-100000*Rate perline/Circulation, cpm-cost per millenium

Editorial Character

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Developing Advertising StrategySelecting Advertising Media

Step 1. Decide on Reach, Frequency,and Impact

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers

Nature of the ProductType of MessageCost

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. TVs ER.Must Balance Media Cost Against Media Factors:

Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or Pulsing

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Different Media and advertising Newspaper Ads.

-40% of spending in ads are absorbed by N/P

-In india it is 52%

-Third only in circulation 57.84 m ( China & Japan)

-N/P categorized on basis of freq, geog coverage and subject

area

Adv.Flexibility, credibility, local market coverage, reach &

Selectivity, scope for detailed info, scope of feedback, low

cost.

Disadv.: Shorter life, problems of demo, literacy barriers,spotty reading, competition with news, lesser impact on

youth, editorial character, poor reproduction quality

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Different Media and advertising Magazine Pbl.

Indian companies spent 12% of their advertising budget on magazinesConsumer pbl.

Business Pbl.

Adv.

Longer life span

CredibilityHigh geog and demo selectivity

High reproduction quality

multiple readerships

Disadv.

Higher ad ratesLonger lead time

Clutter

Low reach

Media space buying-full page, half page, 2/3 page and 1/3 page, formt

page back page etc.

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Different Media and advertising

Radio Introduced in 1923, preferred till the point TV came Spending on Radio ads came down to 2%

Radio listening is not well developed, though channelslike FM, Radio Mirchi are trying draw crowd.

Advantages-Wide and area specific coverage, affordabilityand transportability, crosses literacy barriers, Availabilityof commercial channels, strong rural listnership, low cost,flexibility, sponsorship options etc.

Disadvantages: Transient character, Low attention level,

creative constraints, limited reach, less impact in urbanareas, no demo capacity, limited info delivery

Media buying: network radio, spot radio

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Different Media and advertising

TV Introduced in 1959, presently more than 100 channels Most powerful media

Indian TV market third largest in the world.

Advantages-High degree of popularity, wide reach, cross all literacy

barriers, strong impact on viewers, scope for creativity, adv for pd.

Demo, brand identification, high scope for frequency

Disadvantages: Affordability problem, high cost, time consuming

production, cluttering of ads, problems of channel selection-

fragmentation, transient

Media buying-terrestrial (Prime and regional) and satellite TV ((Primeand regional, free to air, paid)

Ad in TV- network ad strategy, spot ads,local ad strategy, timing and

sponsorship issue

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Other media of advertising Outdoor Media*(see next slide)

Transit or transportation media-mobile vans, cars,

buses, trains etc. POP media-signs, window display, posters,

display cards, festoons, cut-outs, merchandiseracks and cases, pd. Models, instore commercials,

crowners, danglers, stickers etc. Direct mail media-catalogues, letters, email door

to door drop/ hand delivery etc.

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Other media of advertising

Outdoor Media: posters, billboards, hoardings,bulletin boards, balloons, inflatable, newscasters*,signs-projecting signs, roof signs, wall signs, freestanding signs, marquee signs, backlit signs( for

info and directional, outdoor and image building),advertising at airports.

Advantages: Reach, cost efficiency, strongreminder, geographical selectivity, larger info base,scope of creativity, proximity to purchase decision,longevity, constant exposure

Dsiadv: demo selectivity is diff., greater increase oftraffic, maintenance of outdoor media

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International Advertising DecisionsInternational Advertising Decisions

Adaptation of Global Advertising

Advertising Media Costs & Availability

Regulation of Advertising Practices

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What is Public Relations?What is Public Relations?

Building good relations with the companys variouspublics by obtaining favorable publicity, building up agood corporate image and handling or heading offunfavorable rumors, stories and events.

Major functions are:

Press Relations or Press Agency

Product Publicity

Public Affairs

Lobbying

Investor Relations

Development

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SpecialEventsSpecialEvents

WrittenMaterialsWritten

Materials

CorporateIdentityMaterials

CorporateIdentityMaterials SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Major Public Relations ToolsMajor Public Relations Tools

PublicService

Activities

PublicService

Activities

Web SiteWeb Site

S l P i

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Sales Promotion Based on Push and Pull strategy

It is concerned with the creation application and

dissemination of materials and techniques that supportP.S.and Ads.

Purpose is to increase the desire of both the Push and Pullelements of the business chain.

SP moves the product towards the buyer, ads moves buyers

towards product

George W. Hopkins-SP is an organized effort applied to theselling job to secure the greatest effectiveness foradvertising and dealers help.

Demand stimulating devices designed to supplement ads Short term incentives to encourage sales of a product or

service

Ad gives reason to buy, SP gives reason to buy but NOW

Can have supplementary and complementary roles

S l P i

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Sales PromotionIt is short termed, usually non recurring in nature.

Needs colab. Of channel hence below the line promotion

Role of SP-communication, Incentive, InvitationCan be categorized on various ways:

1.Immediate and Delayed effect SP

2.Loading , Trial SP and loyalty SP

3.Consumer, Dealer, Sales force SP

Reasons for growth of Sales PromotionInternal and External contributors

Internal- Top managements acceptability

Pd managers and Brand managers are better equipped to use techniques of SP

Pd managers are under pressure from inside as well as outside to perform

External: Increase of competition and brand clutter, growing might ofretailers, saturation of markets, preferences of consumers, decline ineffectiveness of Ads, Short term focus of the companies, greater pressurefrom Trade and customers

Some facts and figures1976-42.1%-Ad, 57.9% SP, 1981-38.1% Ads,61.9% SP

In 2002, SP-57% Ads 37.7% in US, In India SP Spent was 18,000 cr.

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Some SP Objectives Trial Attract attention Change buying habits

Fight competitor strategies

Stimulate impulse buying To ensure better push and pull

To use more

Increase sales

Increase brand loyalty

Secure channel members support for new andexisting products

Inventory management

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Sales Program formulation Situational Analysis

Identification of objectives

Developing of the program-Duration, timing, incentivelevel, condition of participation, distribution vehicle,Budget

Implementation-plan activities need to be performed,training to the implementers, communication to the staff,

support of top mgt. Timing(season, festivals, competitorsetc.)

Follow up

Some Dos for effective SPP

-Customization, Synergise, tracking SP activities, channel

involvement

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Sales Promotion ToolsConsumer oriented

Trade Oriented

Sales Force oriented

Consumer oriented- Sample, Coupans, Cash refunds , Price

off, Premium, Ad specialities, Patronage rewards, POP

displays, contests, games and sweepstakesTrade oriented: Trade allowances, Slotting allowance,

promotional allowance, ealer gifts, Push money, Dealer Sales

contests, Stock display contest, Specialty ads, Merchandise

dealsSales Force Oriented: Trade shows, exhibitions, conventions

and conferences, Sales contest, Push money etc.

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Some trends

Continuity-Samsung Phod ke dekho, Phir

Phor ke dekho offer

Innovativeness

Talent Hunts-Ponds Sapno ki rajkumari

Participation-87% yes, 53% winners

Wet sampling

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Advantages of SP

Extra incentive to purchase

Change habits

New product launch easier

Flexible: new pd launch,major

improvement, amplify results of ads, greater

participation of channel members.

Develop attitudes

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Disadvantages of SP

Temporary, short lived

Only supplementary

Non recurring hence seldom reuse value

Brand Image???

Ineffective in case of mature pds in declining

markets, no pd improvements, SP clutter Ad agencies and many managers give still less

importance to it.