TYPES OF ADVERTISEMENT / classification of ad

1. Based on geographical coverage. Global advertising National advertising Regional advertising Local advertising 2. Based on target group Consumer advertising Industrial advertising Trade advertising Retail advertising Professional advertising Corporate advertising 3. Based on demand Primary (product) demand advertising Selective (brand) demand advertising 4. Advertising of services / non product advertising Idea advertising Service advertising Financial advertising Personal advertising 5. Other kinds Public service advertising Advocacy advertising Comparative advertising- this ad presents comparision of brand with its substitute. Competitive advertising Advertorial advertising Surrogate advertising Co-operative advertising- when manufacturer, wholesalers and or retailsers jointly sponsor and share the expenditure advertising it takes the form of cooperative advertising. Such advertising would convey the names of all the parties involved. From the point of view of the customers this is beneficial as they could get the articles, directly from the authorized outlets. THE COMMUNICATION PROCESS: Meaning and marketing communication process. COMMUNICATION MODELs 1. AIDA Model: A-attracting attention I-arousing Interest D-building Desire A-obtaining Action. 2. Lavidge and Steiner model/Hierarchy of effects model. Awareness-knowledge-liking-preferenceconviction-purchase 3. Innovation adoption model Awareness-interest-evaluation-trail-adoption 4. Information processing model Presentation-attention-comprehension-yeildingretention-behavior 5. Operational model Cognitive activity-affective activity-behavioral stage

DAGMAR-Defining Advertising Goals for Measured Advertising Results.

-was the study of ANA [association of National Advertisers] Russell Colley (1961) developed a model of
DAGMAR for setting advertising objectives and measuring the results. Russel H Colley defined an advertising objective as a specific communication task, to be accomplished among a defined audience to a given degree in given period of time. DAGMAR model suggests that the ultimate objective of advertising must carry a consumer through four levels of understanding: from unawareness to Awarenessthe consumer must first be aware of a brand or company Comprehensionhe or she must have a comprehension of what the product is and its benefits; Convictionhe or she must arrive at the mental disposition or conviction to buys the brand; Actionfinally, he or she actually buy that product. Characteristics of Objectives - A major contribution of DAGMAR was Colleys specification of what constitutes a good objective. Four requirements or characteristics of good objectives were noted 1. Concrete and measurablethe communications task or objective should be a precise statement of what appeal or message the advertiser wants to communicate to the target audience. Furthermore the specification should include a description of the measurement procedure 2. Target audience a key tenet to DAGMAR is that the target audience be well defined. For example if the goal was to increase awareness, it is essential to know the target audience precisely. The benchmark measure cannot be developed without a specification of the target segment 3. Benchmark and degree of change soughtanother important part of setting objectives is having benchmark measures to determine where the target audience stands at the beginning of the campaign with respect to various communication response variables such as awareness, knowledge, attitudes, image, etc. The objectives should also specify how much change or movement is being sought such as increase in awareness levels, creation of favorable attitudes or number of consumers intending to purchase the brand, etc. a benchmark is also a prerequisite to the ultimate measurement of results, an essential part of any planning program and DAGMAR in particular. 4. Specified time perioda final characteristic of good objectives is the specification of the time period during which the objective is to be accomplished, e.g. 6months, 1 year etc. With a time period specified a survey to generate a set if measures can be planned and anticipated. 5. Written Goal finally goals should be committed to paper. When the goals are clearly written, basic shortcomings and misunderstandings become exposed and it becomes easy to determine whether the goal contains the crucial aspects of the DAGMAR approach.

ADVERTISING BUDGET [M-MONEY] Not even the most productive cow can be milked without spending money Advertising budget is an estimate of future advertising expenditure that will be used to implement managerial decisions to maintain or improve profit results. Factors influencing ad budget 1. Stage in the product life cycle. New products typically need large advertising budgets to build awareness and to gain consumer trial. Mature brands usually require lower budgets as a ratio to sales. 2. Market share. High-market-share brands usually need more advertising spending as a percentage of sales than do low-share brands. Building the market or taking share from competitors requires larger advertising spending than does simply maintaining current share. 3. Competition and clutter. In a market with many competitors and high advertising spending, a brand must advertise more heavily to be heard above the noise in the market. 4. Advertising frequency. When many repetitions are needed to present the brand's message to consumers, the advertising budget must be larger. 5. Product differentiation. A brand that closely resembles other brands in its product class (coffee, laundry detergents, chewing gum, beer, soft drinks) requires heavy advertising to set it apart. When the product differs greatly from competitors, advertising can be used to point out the differences to consumers 6. The objectives to be attained. 7. The coverage expectations 8. The prevailing economic conditions. 9. The size of the company 10. The funds available. . METHODS OF ADVERTISING BUDGET 1. Affordable method-company decides to spend on promotion what it can afford. 2. The percentage of sales method. Merits: Its simple, It works on affordability It is consistent. Demerits: wrong stressing, [over/under spending] it is static in approach It ignores long range planning. 3. Competitive parity method- a firm decides his advertising budget on the basis of advertising expenditure incurred by rival firms. 4. Fixed sum- per unit method- specific amount per unit of sales [previous year sale] it cannot be applied for small product like soap, pen, cigarettes etc 5. Objective and task method: the company sets its promotion budget based on what it wants to accomplish with promotion.

The method entails: (1) Defining specific objectives; (2) Determining the tasks needed to achieve these objectives; and (3) Estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget. This method has the advantage of requiring management to spell out its assumptions about the relationship between the amount spent, exposure levels, trial rates and regular usage.