Advertising Management

Only the brave or ignorant can say exactly what advertising does in the market place

Is your Advertising getting results? It sure is! Last week we advertised for a night-watchman and the next night we were robbed

UNIT I INTRODUCTION TO ADVERTISEMEN T

Marketing Defined

Marketing is a societal process, by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Marketing Mix

Product Price Promotion Place

Promotional Mix

Sales promotion Advertising Sales force Public relations, Publicity Direct mail, Telemarketing and Internet

Promotion

The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.

Elements of Promotional Mix

Advertising Interactive / Internet Marketing Promotional Mix Personal Selling Publicity / PR Sales Promotion

Direct
Marketing

Concept and Definition of Advertisement

Advertising

Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor. 52 possible ad objectives (Russell Colley) Major objectives are: Inform, Persuade or Remind Art of telling and selling Can be given at three periods

Before need arises By the time of the need After the need arises

Paid Aspect

The space or time for an advertising message generally must be bought. In case of Public Service Announcements (PSA) whose advertising space or time is donated by the media.

Non Personal Aspect

Non personal component means that advertising involves mass media. (e.g. TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time.

Introduction to Advertisement

The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. Paid form of a non personal message communicated through the various media by industry, business firms, nonprofit organizations, or individuals. Advertising is persuasive and informational and is designed to influence the purchasing behavior and/or thought patterns of the audience. Advertising is a marketing tool and may be used in combination with other marketing tools, such

What is Advertising?

Three criteria must be met for a communication to be classified as advertising:

The

communication must be paid for. The communication must be delivered through mass media. The communication must be attempting to persuade.

5 Ms of Advertising

Mission Money Message Media Measurement

Advertising characteristics

Paid form About ideas, goods or services Maximum control over the message Inform and persuade Has its selected market Less credible Subjective Product brand related message Non personal communication By an identified sponsor

Forms of Advertisements

Advocacy Comparative Cooperative Direct-mail Informational Institutional Outdoor Persuasive Product Reminder Point-of-purchase Specialty advertising.

Advocacy advertising

Advertising used to adopt a point of view about controversial public issues. Advocacy advertising can be directed at either specific targets, or general targets, such as political activists, the media, consumer groups, government agencies, or competitors. Read more: http://www.answers.com/topic/advocacyadvertising#ixzz1dkJY5zFC

Classification of Advertising

For whom (target audience- Industrial, Consumer) Geographic coverage (local, regional, national, international) Media used (print, electronic, direct mail, outdoor) Aim(financial, demand, social messages, direct action)

Audience Geography
Global International National Regional Local

Audiences for Advertising

Household Consumers Business Organizations The Trade Channel Professionals Government

Functions of advertising

Informs the buyers Offers an incentive Reminds the benefits Stimulates to try the product once Builds brand Reduces selling costs Persuades people

Social Implications of Advertising

Social aspects of advertising

Consumerism Consumer culture Consumer awareness

Consumerism

Ability and capability of consumers to purchase various goods & services After industrial revolution (preference to consumers) Advancement in areas of education and research, technology in all fields have been continuously upgraded It resulted in increased production, increased employment opportunities, generation of income, distribution and friendly consumption.

Consumer culture

Improves the culture of the consumers The growth of consumer culture diverted the purchasing power of middle class people towards the purchase of products like TV, refrigerator, air cooler, cellular phone, etc

Consumer awareness

There are more than 20 legislative enactments in India to protect the rights of the consumers The ad should help to protect the rights of the consumers Education and media played a significant role to create awareness among consumers

Social aspects of advertising

Consumerism Consumer culture Consumer awareness

Economic Implications of Advertising

Role of advertising in Economy

All that ad has to do is to sell a product or service Ads do the sales job better Performs economic function by being an art of persuasion Ads create wide markets

Effects of Advertising

Effects of advertising on costs

Effects

of advertising on total marketing costs Effects of advertising on total manufacturing costs

Effects of advertising on price

Prevents

price competition for a longer period product improvement

Effects of advertising on quality

Stimulates

Effects of advertising on investment and the level of national income

Ethical & Legal Implications of Advertising

Code of Advertising Ethics in India

Advertising shall be designed as to confirm to the laws of the country and should not offend against morality, decency and religious susceptibilities of the people.

General rules of conduct in advertising

Derides

any race, caste, color, creed and nationality; Is against any of the directive principles, or any other provision of the Constitution of India; Tends to incite people to crime, cause disorder or violence, or breach of law or glorifies violence or obscenity in any way; Presents criminality as desirable; Adversely affects friendly relations with foreign States; Exploits the national emblem, or any part of the constitution or the person or personality of a national leader or State Dignitary; Relates to or promotes cigarettes and tobacco products, liquor, wines and other intoxicants;

General rules of conduct in advertising

No advertisements message shall in any way be presented as News. Advertisements for services concerned with the following shall not be accepted:Money lenders; Chit funds; Saving schemes and lotteries other than those conducted by Central and State Government organisations, nationalised or recognized banks and public sector undertakings; Matrimonial agencies;

General rules of conduct in advertising

Unlicensed

employment services; Fortune tellers or sooth-Sayers etc. and those with claims of hypnotism; Foreign goods and foreign banks. Betting tips and guide books etc. relating to horse-racing or the other games of chance.

General rules of conduct in advertising

No advertisement shall contain references which are likely to lead the public to infer that the product advertised or any advertised or any of its ingredients has some special or miraculous or super-natural property or quality, which is difficult of being proved, e.g. cure for baldness, skin whitener, etc. Advertisements shall not contain disparaging of derogatory references to another product or service. Testimonials must be genuine and used in a manner not to mislead the listeners. Advertisers or Advertising Agencies must be prepared to produce evidence in support of their claims.

General rules of conduct in advertising

No advertisement of any kind of jewellery (except artificial jewellery) or precious stones shall be accepted. Information to consumers on matters of weight, quality or prices of products where given shall be accurate. Advertisements indicating price comparisons or reductions must comply with relevant laws. Advertisements for products specifically offered to women shall not be advertised as products that are effective in inducing miscarriage. Advertisements relating to claims about curing of sexual weakness, premature ageing, loss of virility, sexual excesses etc. shall not be accepted.

General rules of conduct in advertising

There should be no exaggerated claims regarding the composition, character, action and suitability of the purpose for which it is recommended. When words such as college, clinic, institute and laboratory are used in advertisements, such references can be made only when the said establishment does actually exist.

The portrayal of the female form shall be aesthetic and within the well established norms of good taste and decency.
Women must not be portrayed in derogatory light and in a manner that emphasizes passive, submissive qualities and encourages them to play a subordinate and secondary role in family and in society. Scientific or statistical excerpts from technical literature etc. may be used only with a proper sense of responsibility to the ordinary viewer.

Rules and acts framed to maintain standards in advertising

Drugs and Cosmetics Act, 1940. Drugs Control Act, 1950. Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954. Copyright Act, 1957. Trade and Merchandise Marks Act, 1958. Prevention of Food Adulteration Act, 1954. Pharmacy Act, 1948. Prize Competition Act, 1955. Emblems and Names (Prevention of Improper Use) Act, 1950. Consumer Protection Act, 1986. Indecent Representation of women (Prohibition) Act, 1986. AIR / Doordarshan Code. Code of Ethics for advertisement in India issued by the Advertising Council of India Code of standards in relation to the advertising of medicines and treatments Standards of practice for Advertising Agencies

Ethics in advertising

Advertising should be in conformity with the laws of land Advertisements should not be done against the cultural, religious and aesthetic values of the people It should not propagate hatred and defame the peace of the nation It should not aim to exploit the illiteracy and superstition of the people to gain benefits Advertisements should disseminate factual information Advertisement should not hide or divert facts (They can inform the ingredients of the product and the need for using the product) Misleading statements (visual or verbal) should be avoided Price, quality, procedure to procure, guarantee and warranty etc. should be communicated with utmost care and prudence (cautiousness)

Ethics in advertising

Comparisons which unfairly disparage (criticize) a competitive product for service should be avoided No advertisement should encourage or instigate the people to practice illegal practices Patent marks of other reputed concerns should not be used to cheat the consumers Obscene words / scenes in advertisements should be avoided Without real intention, it should not be announced that money will be returned if the purchaser is not satisfied with the products

Ethics in advertising

Apart from state advertisements, national symbols and the photographs of national leaders should not be used without getting prior permission from the competent authorities concerned No advertising should canvass for pawn broking, deposits for unregistered financial firms and employment bureaus, bogus marriage brokerage, astrology and magical skills.

Legal issues of advertising

Article 19 (1) all citizens shall have the right to freedom of speech & expression. Article 19(1) a - restricts & prohibits the ads for drugs Article 19(2) right to information and expression can be resticted on the following grounds

Legal issues of advertising

Security of the state Friendly relations with foreign states Public order Decency of morality Contempt of court Defamation Incitement (encouragement) of an offence Sovereignty and integrity of India

Legal issues of advertising

Obvious untruths and exaggeration Advertisements should not depict children leaning dangerously outside windows, over bridges or climbing dangerous hills. Advertisement should not show children using or playing with matches or any inflammable or explosive substance Viz. playing with knives, guns & electrical appliances Advertisements shall not propagate products the use of which is banned under law Comparisons should be factual and accurate.

Setting Advertising Objectives

Advertisement objectives

Inform and build awareness To increase the sales To retain the loyalty of present & former customer To support the sales force To build brand image

Top of mind First choice

To persuade To support other marketing efforts To encourage action

Inform
Introducing

new products Informing the market of a price change Explaining how the product works

Persuade
Buiding

brand preference Encouraging switching tour brand Changing customers perception of products attributes Becomes more important as competition increases Comparative advertising

Remind
Most

important for mature products Reminding customers that the product may be needed in the near future Reminding them where to buy Describing available services Correcting false impressions Reducing consumers fears Persuading consumer to receive a sales call Keeping the product in their mind during off-seasons

Ad Agency Selection & Remuneration

Advertising Agency

Advertising agency is defined as an organisation whose business consists in acquisition as a principal of the right to use space or time in advertising media and the administration on behalf of the advertisers, of advertising appropriations made by them.

Tasks of an advertising agency

Copy writing Art pictures & photographs Media planning & buying of space Radio & television producing commercial spots The work of market research Production film or tape for use Public relations Forwarding the advertising materials to the media owners and the clients in time

Agency should require

Sales ability Creative ability Management ability

Types of Advertising Agencies

Full Service Agencies Creative Boutique Interactive Agency In-House Agency Media-Buying Agency Direct Marketing Agency E-Commerce Agencies Sales Promotion Agencies Event-Planning Agencies Design Firms Public Relations Firms

Full-service advertising agency

A full service agency typically includes an array of advertising professionals to meet all the promotional needs of clients. Full service agencies are not necessarily large organisations employing hundreds or even thousands of people.

Advantages of using a full service ad agency

In-depth knowledge and skills Obtaining negotiating muscle with the media Coordinating advertising and marketing efforts Use services only when they are needed Availability of high-caliber creative talent Potential cost efficiencies

Disadvantages of using a full service ad agency

Some control is lost Larger clients are favored over small clients Occasionally inefficient in media buying Specialists approach client problems in a stereotyped fashion Lack of cost accountability Financial instability of smaller boutiques

Steps in selecting an advertising agency

The size of the agency. The relevant experience of the agency. Conflicts of interest. Creative reputation and capabilities. Production capabilities. Media purchasing capabilities. Other services available. Client retention rates. Personal chemistry

Steps in selecting an advertising agency

Identify and prioritize corporate goals. Develop agency selection process and criteria. Initially screen firms based on credentials, size, capabilities, relevant experience and conflict of interests. Request client references. Do background check with other firms and media agents. Request written and oral presentation. Meet creatives, media buyers, account executives and other personnel that will work with account.

Capabilities of an ad agency

Marketing & media planning Research & analysis Advertising campaigns local, regional & national Creative concept / copywriting Logo / corporate identity development Graphic design & production Direct marketing programs Media placement Public relations / special event planning

Ad agency Remuneration

Three methods used to compensate ad agencies

Commission Negotiated

fee Percentage charges

Compensation of Ad Agencies

Initially agencies just sold space for the media and made money Marketed space for the press and the magazines Paid on the basis of amount of space they sold by the media

Media Commissions

Media commission is an amount paid by the media to an agency which has bought space or time for its clients Generally 15% on the space sold by an agency

Reasons for losing clients

The clients dissatisfaction with the agencys performance with regard to advertising quality or service Poor communication between the client and the agency personnel hinders a good working relationship Personality clashes between client and agency personnel Unrealistic client demands, which reduce the accounts profitability for the agency

Reasons for losing clients

New managers in clients organisation may want to use an agency with which they already have established ties. Often when agencies merge, there is a conflict of interest as two close competitors may be on the merged agencys account list. Changes in the clients marketing strategy may lead to change of agency. When the companys sales decline, the advertising agency is viewed as unsuitable and the agency changed

Reasons for losing clients

The client may insist upon adopting a compensation method to which the agency disagrees When some companies or agencies outgrow in size, either may think the other unsuitable and sever the ties

Advertising Campaign

Advertising Campaign

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).

What is an ad campaign?

Identification of consumers wants & needs Development of the right sales message Delivery of the sales message to the identified prospects Measurement of the effort or impact of the advertising sales message Integration of the advertising sales message with other forms of marketing communications.

Comprehensive advertisement campaign (steps)

Situation analysis Marketing objectives Ad budget Message strategy: communication goals Media selection Implementation Control & Evaluation

Steps in Creating an Advertising Campaign

Determine the advertising objectives.

Make creative decisions.

Make media decisions.

Evaluate the campaign.

Creative Decisions
Identify Product Benefits

Components of Creative Decisions

Develop and Evaluate Advertising Appeals Execute the Message Evaluate the Campaigns Effectiveness

What is an Advertising Appeal?

The approach used in an advertising message to attract the attention or interest or interest of consumers and influence their feelings toward the product, service or cause Something that moves people, speaks to their wants or need, and excites their interest.

Common Appeals

Vanity and egotism

Profit motive

Fun and pleasure

Health concerns

Convenience

Common Message Appeals

Love

Admiration/worship

Sex

Fear

Advertising Appeals
Fear Humour Sex Music Rational Emotions Scarcity

Deciding an Advertising Appeal

Review Creative Brief (specifically objectives section) The nature of the product The preferences of the client (very important) Common sense and gut feeling

Fear Appeal

Increases viewer interest in the ad and the persuasiveness of the ad Used with health and beauty products, idea marketing, insurance Most experts believe that a moderate level of fear is most effective

Fear Appeal
Print Ad Example This ad reminds people of the dangers of overexposure to the sun.

Humour Appeal

Used in 30% of all advertisements. Excellent at capturing attention. Score high in recall tests. Should be related directly to customer benefit. Or else, the joke can overpower the message.

Humour Appeal

Impact of humour on advertising

Humour attracts attention Humour does not harm comprehension (in some cases it may even aid comprehension) Humour is not more effective at increasing persuasion Humour does not enhance source credibility Humour enhances liking Humour that is relevant to the product is superior to humour that is unrelated to the product Audience demographic factors (e.g. Gender, Ethnicity, age) affect the response to humourous advertising appeals The nature of the product affects the appropriateness of a humourous treatment Humour is more effective with existing products than with new products Humour is more appropriate for low-involvement products and feeling-oriented products than for high-involvement products

Humor Appeal

Sex Appeal

Subliminal techniques Nudity or partial nudity Sexual suggestiveness Overt sexuality Sensuality

Are Sex Appeals Effective?

Research Results Sex and nudity do increase attention. Rated as being more interesting. Often leads to strong feelings about the advertisement. Brand recall is lower. Often interferes with message comprehension

Factors to Consider When Using Decorative Models

The presence of female (or male) decorative models improves ad recognition, but not brand recognition. The presence of a decorative model influences emotional and objective evaluations of the product among both males and female audiences. The presence of an attractive model produces higher purchase intentions when the product is sexually relevant than if it was not sexually relevant. Attractive models produce a higher level of attention to ads than less attractive models.

Using Sex Appeals Effectively

Be aware of differences in the international arena. Should be an integral part of the product. Should utilize a variety of models in terms of age, size, ethnicity and gender. Should consider using regular person models. Be careful sex does not overpower advertisement. Consider shifting to more sensuality.

Music Appeals

Has intrusive value. Gains attention and increases the retention of visual information. Can increase persuasiveness of an advertisement. Design Questions
What

role will music play? Will a familiar song be used or new song created? What emotional feeling should song solicit? How does the music fit with the message of the ad?

Rational Appeals

Print media is well-suited for rational appeals. Used by business-to-business advertisers. Well-suited for complex and high involvement products.

Emotional Appeals

Based on three ideas:

Consumers

ignore most ads. Rational ads go unnoticed. Emotional ads can capture attention.

Viewed by creatives as key to developing brand loyalty. Uses peripheral processing route. B-to-B advertisements using more emotional appeals. Works well when tied with other appeals.

This ad for a nonprofit animal rights and rescue group draws on viewers sympathies toward animals.

Emotions Used in Advertisements

Trust Reliability Friendship Happiness Security Glamour/luxury Serenity Anger

Protecting loved ones Romance Passion Family Bonds

with parents with siblings with children with extended family members

Emotional Appeal
This ad by iparty.com reminds viewers of the fickle nature of children.

Scarcity Appeals

Based on limited supply or Based on limited time to purchase. Often tied with promotion tools such as contests, sweepstakes and coupons. Encourages customers to take action.

What media to use? Media Planning and Types

What channel will be most effective to reach target market(s) Depends heavily on promotional objectives What is it the company wants to convey? Action of the product itself? Credibility of company or service? Brand name?

Major Types of Advertising Media

Newspapers Magazines Radio Television Outdoor Media Internet

Alternative Media

Considerations for selecting Media

The media mix decisions

Cost

per contact Reach Frequency Target audience characteristics Mediums flexibility Noise level Life span of medium

Advertising Research

Ad effectiveness Media research Relationship surveys Motivation surveys

UNIT II ADVERTISEMEN T MEDIA

Media Plan

A document that spells objectives, strategies and tactics of reaching a target audience through different media vehicles

Media Planning

Finding the best way to get the message to the target market. Best means largest part of market at best price and in best media environment for the message Media/Medium: general category as TV, radio, newspaper, magazines, direct mail Media vehicle: specific carrier within a medium: Time magazine or Today Show

Steps in Media planning process

Target audience analysis Media objectives Selection / buying media Tactics Scheduling Budgeting Evaluation

Sources of information in media planning

Creative sources
Theme Message Research

Marketing sources
Distribution patterns Market sales Rivals patterns

Media sources
Popularity of media Profiles Cost forecasts

5 main functions of a media buyer

Provide information to media planners Select the media Negotiate cost Monitor the media plan performance Evaluate media choices after the campaign

Buying terms

Exposures Reach Coverage (waste coverage) Frequency Exposures Gross Impressions

Media Planning and Buying

Outline

Media: still big business Setting media objectives Developing media strategies

Media selection procedures Media buying functions Media buyers special skills Global media buying Staging a media plan

Media: Still Big Business

Media consolidation: a new perspective The aperture concept in media planning Media planning information sources

Setting Media Objectives

Finding target audiences in media opportunities Sales geography Timing

Setting Media Objectives

Duration: how long to advertise? Schedule and the advertising budget Consumer use cycles Competitive advertising

Developing Media Strategies

Target audience strategies: new technology of measurement

Retail scanners Database developments Marketing mix modeling Internet audience measurement

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Developing Media Strategies

Geographic strategies: allocating media weight Timing and duration strategies Size and length strategies

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Media Selection Procedures

Audience measures used in media planning

Gross impressions Gross rating points

Reach and media planning

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Media Selection Procedures

Frequency and media planning

Average frequency Frequency distribution

Combining reach and frequency goals

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Media Selection Procedures

Cost efficiency as a planning dimension

Cost per thousand How to calculate CPMs Cost per rating

Selecting and buying acceptable media

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Media Buying Functions

Providing information to the media planner Selecting media vehicles Negotiating media prices/authorizing the buys Monitoring vehicle performance Post-campaign analysis Billing and payment

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Media Buyers Ability to Negotiate

Vehicle performance Unit costs Preferred positions Extra support offers

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Changes in Media Buying

Media buying services Online media buying Global media buying Maintaining plan performance Monitoring audience research Scheduling and technical problems

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Staging a Media Plan

Background and situation analysis Media objectives and aperture opportunities Strategy: selection of media The flow chart: scheduling and budgeting allocation

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Issues in Selecting Advertising Media

Reach, Frequency, and Impact

Major Media Type Options

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Specific Media Vehicles

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Media Timing
Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Type and Choice criteria

Major Types of Advertising Media

Newspapers Magazines Radio Television Outdoor Media Internet

Alternative Media

Profiles of Major Media Types

Newspapers
Advantages: Flexibility, timeliness; good local market coverage; high believability

Limitations: Short life; poor reproduction quality; small pass-along audience

Television

Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting (lasting for a brief time) exposure; less audience selectivity

Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; junk mail image

Profiles of Major Media Types

Radio
Advantages: Mass use; high geographic and demographic selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; fragmented audiences

Magazines

Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; no guarantee of position

Outdoor
Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations

Which Media: Print, Television or Radio?

1.

Great ads will fail if the media chosen do not reach the right audiences.
Newspapers and magazines have inherent advantages and disadvantages. Broadcast media, TV and radio, also have inherent advantages and disadvantages.

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Newspapers

Newspapers
$48.2 billion spent on newspaper ads in 2004 Ideal for reaching narrow geographic area Facing circulation declines

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Newspapers Advantages
Range of market coverage is excellent Positive attitude towards newspapers Geographic selectivity Tremendous flexibility Creative opportunities Credibility Audience interest Cost Provide a bridge between national and local advertisers

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Newspapers Disadvantages

Short life

Limited segmentation
Certain groups are not reached

Creative constraints
Poor reproduction

Cluttered environment

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Types of Newspapers

Target Audience
General

population Business Ethnic

Frequency of Publication
Daily Weekly

Geographic coverage
Metropolitan State National

area

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Categories of Newspaper Advertising

Display Advertising
Display

advertising Co-op advertising

Inserts
Preprinted

insert Free-standing insert

Classified Advertising

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Measuring Newspaper Audiences

Circulation
Paid

circulation Controlled circulation

Readership

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Future of Newspapers

Survival of newspapers depends on their ability to evolve. In the future, newspapers will have to:
Provide in-depth coverage of local issues. Increase coverage of national and international events. Provide follow-up reports of news. Maintain role as local source for consumer information. Become more mainstream in integrated brand promotions relating to new media.

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Types of Magazines
Audience Geography Demographics Editorial diversity

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Magazine Advantages and Disadvantages

Advantages
Audience

Disadvantages
Limited

selectivity Audience interest Creative opportunities Long life

flexibility Lack of immediacy Limited reach and frequency Clutter High Cost

Advantages of Television

Advantages
Creative

opportunities Coverage, reach, and repetition Audience selectivity

Narrowcasting

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Disadvantages of Television

Disadvantages
Brief

message High absolute cost Poor geographic selectivity Poor audience attitude and attentiveness Clutter

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Radio Advantages and Disadvantages

Advantages
Cost Reach

Disadvantages
Poor

and frequency Target audience selectivity Flexibility and timeliness Creative opportunities Boon for blind

audience attentiveness Creative limitations Fragmented audiences Chaotic buying procedures

Reach and Frequency of Advertisements

Reach and Frequency

Reach is the number of different people who are exposed an advertising message at least once. Reach is simply the percentage of persons in a target population that is exposed to an advertising schedule at least once. It can also be expressed as cume and unduplicated audience.

Reach and Frequency

Frequency is the number of times they are exposed to the message. Frequency simply measures the number of times a person sees your message in a given advertising schedule. One person may see your commercial three times over your advertising flight. That would be a frequency of three.

Media Strategy

Media Strategy
Media strategy is the overall game plan which is geared towards straightening the communication Elements of media strategy

Media

mix Usage of media Geographic allocation Scheduling strategy

Media Strategy focuses on

Target market study Deciding the ad message Matching media and target group Media selection

Target market study

Demographic data, i.e. age sex, income, religion, language, etc. Psychographic data (perception, attitude, etc.) Consumer profile (tastes & Preferences) Media profile; media habits & preference of the target audience

Media Scheduling

Time & Space Reach & Frequency Target Audience Channel carrying messages Effective reach Objectives of the communication Marketing goals

UNIT III
DESIGN & EXECUTION OF ADVERTISEMENTS

Message Development

Message Development

Use definition and explanation when the message is written or spoken For many circumstances, visuals are more effective for demonstration, comparison and contrast Use any visual, whether print, video, or interactive, to compare two products or to show before-and-after scenarios Television is particularly good for demonstration because it can show a sequence of operations.

Different Types of Advertisements

Creative side of advertising

An unexpected advertising An unexpected association Catchy phrasing A play on words Analogy and metaphor Familiar and strange

Stages in Creative Process

Immersion

Read, research and learn everything about the problem Look at the problem from at every angle; develop ideas, generate as many as alternatives as possible

Ideation

Brain fog

You may hit a blank wall and want to hit a gap

Try to put your conscious mind to rest to let your subconscious take over Unexpected moment when the idea comes, often at the least expected time.

Incubation

Illumination

Creating Print advertisement

Headline Subhead line Body copy Address Images (display copy)

The Headline: Functions

Gives news about the brand Emphasizes brand claims Gives advice to the reader Selects targeted prospects Stimulates curiosity Establishes tone & emotion

Identifies the brand

The Headline
Guidelines

Be persuasive Appeal to self-interest Inject maximum information Limit to five-eight words Include the brand name

Entice to read body copy

Entice to examine visuals

Never change typeface Never rely upon body copy

Keep it simple & familiar

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Subheads: Functions
Include important information not communicated in the headline Communicate key selling points or information quickly Stimulate more complete reading of the ad

Subheads: Guidelines
The

longer the body copy, the more appropriate the use of subheads. Creative directors frequently minimize their use.

The Body Copy

Techniques

Straight-line copy Dialogue Testimonial Narrative Direct response copy

The Body Copy

Guidelines

Use present tense Use singular nouns and verbs Use active verbs Use familiar words and phrases

Vary sentence and paragraph length Involve the reader Provide support for the unbelievable Avoid clichs and superlatives

Copywriting for Cyberspace

Cybercopy is often rooted in techno-speak It is a medium where audience has a different meaning than in traditional media
Audience

often comes directly to adsnot

passive. Other ads pop up. Copy is closer to print than broadcast. Cybercopy is often direct response.

Copywriting for Broadcast Advertising

Broadcast ads offer a fleeting message. Broadcast employs more sensory devices which can attract or distract consumers from understanding the message.

Writing Radio Copy

Radio listeners are not active Radio has been called verbal wallpaper Radio can be the theater of the mind Formats
Music Dialog Announcement Celebrity

announcer

Writing Radio Copy:Guidelines

Use familiar language Use short words and sentences Stimulate the imagination Repeat the product name

Stress the main selling points Use sound and music carefully Tailor the copy to the time, place, and specific audience

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Radio Production Process

1. Solicit bids from production houses 2. Review bids, award job, submit estimate 5. Edit the tape

6. Review the production with the advertiser

3. Select the talent

7. Mix the sound

4. Plan special elements, produce the tape

8. Duplicate the tape and ship to stations

Writing Copy for TV

Can create a mood

Opportunity to demonstrate with action

Words should not stand aloneuse visuals/special effects Precisely coordinate audio/visual Storyboard is the roadmap

Television Advertising Formats

Demonstration Problem and solution Music and song Spokesperson

Dialogue Vignette Narrative

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Guidelines for Writing TV Copy

Use the video Support the video Coordinate the audio with the video Entertain but sell the product Be flexible

Use copy judiciously Reflect the brands personality and image Build campaigns

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Slogans

Short phrase used to . . .

Increase

memorability Help establish an image, identity or position for a brand or organization

Good slogans can

Be

an integral part of brands image Act as shorthand identification for the brand Provide information about the brands benefits

Common Mistakes in Copywriting

Vagueness

Wordiness
Triteness Creativity for creativitys sake

Copy Approval Process

Agency Account Management Team Legal Department

Account Planning

Client

Copywriter

Product Manager, Brand manager, Marketing Staff

Senior Writer Creative Director

Senior Executives

Art Direction and Production

The Evolution from Words to Pictures

Improved

technology Advantages of visuals over text

Brand

images are built better with visuals. Visuals can be protected legally. Visuals are more portable than words across cultures. Visuals allow placing the brand in a social context.

13172

Illustration

Definition:
The

Purposes:
Attract

actual drawing, painting, photography, or computer-generated art in the ad

attention Make the brand heroic Communicate product features or benefits Create a mood, feeling, or image Stimulate reading of the body copy Create the social context for the13173 brand

Illustration Components
Size Color Medium

Illustration Formats

How the product or brand will appear as part of the illustration Formats include
Emphasizing

the social context or meaning of the product More abstract formats

Must be consistent with the copy strategy

Strategic and Creative Impact of Illustration

Attracts attention of target segment and stimulates information processing Communicates brand value relative to targets decision making criteria Visually presents the creative strategy Creates a mood for the brand Creates an image for the brand Makes concrete the values and benefits of the brand that may be intangible

Design
The structure and plan behind the structure for the aesthetic and stylistic aspects of a print advertisement

Principles of Design
Balance (Formal)

13178

Principles of Design
Balance (Informal)

13179

Principles of Design
Proportion

13180

Principles of Design
Order

13181

Principles of Design
Unity

Principles of Design
Emphasis

Layout
1. Thumbnails

2. Rough layout

3. Comprehensive

4. Mechanicals

Print Production Processes

Letterpress Gravure Offset lithography

Flexography Electronic, laser, inkjet

Computer print production

Typography

Art Direction and Production in Cyberspace

Cyberspace is its own medium.

The audience is not passive. At present, it is closer to print than TV.

Revision can be done instantaneously.

Persuasive content versus entertainment is a challenge.

Art Direction in Television Advertising

TV has changed the face of advertising. TV is about moving visuals. It can leave impressions, set moods, tell stories. It gets you to notice the brand. TV production is complex, with many people and requires tremendous organizational skills.

The Creative Team in Television Advertising

Agency Participants
Creative Director (CD) Art Director (AD) Copywriter Account Executive (AE) Executive Producer Producer

Production Company Participants

Director Producer Production Manager Camera Department Art Department Editors

Creative Guidelines for TV Advertising

Use an attention-getting opening Emphasize the visual Coordinate the audio with the visual Persuade as well as entertain Show the product

Production Process for TV Advertising

Preproduction
Multiple

activities that occur prior to filming the commercial that occur during filming

Production (shoot)
Activities

Postproduction
Activities

that occur after filming to ready the commercial

Preproduction Process for TV Advertising

Storyboard and script approval Review of bids from production houses and other suppliers

Budget approval

Creation of a production timetable

Assessment of directors, editorial houses, and music suppliers

Selection of location, sets, and cast

Production Process

Filming the commercial, or the shoot Involves large numbers of diverse people:
Creative performers Trained technicians Skilled laborers

Sets often feature tension and spontaneity Typical commercial costs $100,000 to $500,000

Postproduction Process
Screen dailies Edit film Produce search track Review rough cut (agency) Review rough cut (advertiser) Edit offline Edit online Record announcer Record music Mix film and sound Transfer film to videotape Prepare copies of tape Send tapes to TV stations

TV Production Options

Film

Videotape

Live Production

Still Production

Animation

Advantages of Advertising on the Internet

Target Market Selectivity. Tracking. Deliverability and Flexibility. Interactivity.

Click-through

Cost. Integration.

Who Advertises on the Internet?

Top 10 Internet Advertisers*

Time Warner Microsoft Qwest Bank One Corp. Netstock Investment AmeriTrade Holdings eDiets.com Yahoo Bartlesmann USA Internactive
* ranked by impressions

Types of Advertising on the Internet

Banner ads Sponsorship Pop-under (new and annoying) E-mail communication

Permission marketing Viral marketing

Streaming video and audio Corporate home pages Virtual malls

Measuring Internet Advertising Effectiveness

Technical aspects of the Internet measurement problem The caching complication

Internet measurement and payment

Future of Advertising and the Internet

Introduction of new technologies such as wireless communication and streaming videoBroadcast Web
Mergers and partnerships Merging traditional and new media Developing a new advertising revenue model

Power Struggles and Sales Promotion

Sales promotion plays a key strategic role in the channel of distribution

Big name brands must be supported with sales promotion and POP to get the support of retailers through self space allocation.

The top 10 retailers control 43% of all packaged goods sales so they can dictate which brands get how much shelf space.
Brand marketers spend $30 billion a year on sales promotion and POP to gain favored retailer treatment and to provide incentives to household consumers and business buyers.

Sales Promotion

Using incentives to create a perception of greater brand value

Consumer Market

Induce household consumers to purchase a firms brand Motivate distributors, wholesalers, and retailers to stock and feature a brand

Trade-Market

Business Buyer

Cultivate buyers in large corporations who make purchase decisions

Sales Promotion Examples

Coupons Gift Cards Incentives Premiums Trade shows Allowances Sampling Brand placements Contests Sweepstakes Price-off deals

Loyalty programs

Sales Promotion vs. Advertising

Short term demand vs. long term demand Encourage brand switching vs. brand loyalty Induce trial use vs. encourage repeat purchase

Promote price vs. promote image

Immediate results vs. long term effects

Measurable results vs. difficult to measure

18204

Objectives for Consumer-Market Sales Promotion

1. Stimulate trial purchase 2. Stimulate repeat purchases 3. Stimulate larger purchases

4. Introduce a new brand

5. Combat or disrupt competitors 6. Contribute to IMC

18205

Consumer-Market Sales Promotion Techniques

1. 2. 3. 4. 5.

Coupons Price-off deals Premiums Contests/sweeps Samples and trials

6. 7. 8. 9.

10.

Phone gift cards Brand placements Rebates Frequency programs Event sponsorship

18206

Coupons

Entitles a buyer to a price reduction for a product or service

Advantages
Give

a discount to price sensitive consumer while selling product at full price to others Induce brand switching Timing and distribution can be controlled Stimulates repeat purchases Gets regular users to trade up within a brand array

Coupons (contd)

Disadvantages
Time

of redemption cannot be controlled No way to prevent current customers from redeeming coupons Coupon programs require costly administration Fraud is a serious, chronic problem

Price-Off Deals

Offering consumers a reduced price at point of purchase through specially marked packages Advantages
Is controllable by manufacturer. Affects positive price comparisons. Increases consumers belief in the value of a known brand.

Disadvantage

Retailers believe it creates inventory and pricing problems.

Premiums and Advertising Specialties

Premiums

Free or reduced price for an item with the purchase of another item.

Free premiums provide item at no cost. Self-liquidating premiums require consumers to pay most of the cost of the item Advertising specialties:

A message placed on a free, useful item

Contests and Sweepstakes

Contests: consumers compete for prizes based on skill or ability. Sweepstakes: winners picked by chance Both create excitement and interest
But
Legal

and regulatory requirements are complex. Consumers may focus on the game rather than the brand. Difficult to get an IBP message across in a game.

Samples and Trial Offers

Sampling

Giving a consumer an opportunity to use a brand on a trial basis with little or no risk
Newspaper On-package Mobile

Types of sampling
In-store Door-to-door Mail

Trial offers
Used for more expensive items Consumer tries product for a fixed time

Phone and Gift Cards

Manufacturers offer either for free or for purchase debit cards.

With

phone time Or with preset spending limits

Examples
Offers

from Lexus, Oldsmobile, and The Gap.

Rebates

Money back offer requiring the buyer to mail a request for money back from the manufacturer. Often tied to multiple purchases. Many consumers fail to bother sending the request.

18214

Frequency Programs

Also known as continuity programs

Offer

customers discounts or free products for repeat patronage Common in the airline, travel, and restaurant businesses

Objectives for Promotions in the Trade Market

Objectives: Use a push strategy

Push

a product into the distribution channel towards the consumer

Obtain

initial distribution Increase order size Encourage cooperation with consumer market sales promotions Increase store traffic

18216

Trade-Market Sales Promotion Techniques

Incentives: Push money

Allowances: Merchandise allowances, slotting fees, bill-back allowances, offinvoice allowances Sales Training Programs Cooperative (Co-Op) Advertising

18217

Business Market Sales Promotion Techniques

Trade Shows Business gifts

Premiums and advertising specialties

Trial offers Frequency programs

18218

Sales Promotion, the Internet, and New Media

Sampling removes risk associated with consumer trial.

Internet firms use incentives to make Web sites sticky. Internet is used to implement sales promotions and distribute coupons.

Risks of Sales Promotion

Creates a price orientation

Borrows from future sales

Alienates consumers Time and expense Legal considerations

Point-of-Purchase (P-O-P) Advertising

Materials used in the retail setting to attract shoppers attention to a brand, to convey primary product benefits, or highlight pricing information. Objectives for P-O-P Advertising
Draw consumers attention to a brand in the retail setting. Maintain purchase loyalty among brand loyal users. Stimulate increased or varied usage of the brand. Stimulate trial use by users of competitive brands.

P-O-P Advertising and the Trade and Business Markets

Product displays and information sheets encourage retailers to support one distributor or manufacturers brand over another.
P-O-P promotions can help win precious shelf space and exposure in a retail setting. A P-O-P display is designed to draw attention to a brand, increase turnover, and possibly distribute coupons or sweepstakes entry forms. To combat losing business to online shopping, retailers are trying to enliven the retail environment, and P-O-P displays are one strategy.

Coordination Challenge

Message coordination Media coordination Research conclusions:

Short-term Short-term Rare Most

effects can be dramatic. effects are often not profitable.

for long-term effects to occur.

power effects result from advertising and sales promotion being used together.

Direct Marketing

Interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. Common purposes of direct marketing:
Close the sale Identify prospects for future contacts Provide in-depth information Seek information from consumers Foster brand loyalty

Direct Mail

Advantages
Selective,

flexible, little waste, lends itself to testing, uses many formats mail is expensive.

Disadvantages
Direct
May

cost 15 to 20 times more to reach a person with a direct mail piece than with a TV commercial

Mail

lists can be plagued with bad addresses. Mail delivery dates can be unpredictable.

E-Mail

Bulk e-mail is known as spam

However, e-mail is an increasingly popular tool for marketers.

Advantages
Cheap Good response rates

Netiquette suggests getting consumers permission to send product information Avoid bulk e-mailings

Direct Response Advertising

Multiple media can be deployed to generate an immediate, measurable response. Most common media used are direct mail and telemarketing. However all conventional media can be used.

Direct Response Advertising in Other Media

Magazines use bind-in insert card
Toll-free 800 numbers are vital to direct marketers using ads in newspapers and magazines

Infomercial
Long television advertisement Range in length from 3 to 60 minutes Keys to success
Testimonials Frequent call to actions Ensure same-day response

Coordination Challenge

Functional specialists across several media need to work together. Marketing databases can lead to interdepartmental rivalries. Growth of direct marketing often means cuts in other promotional budgets.

One solution: the marcom manager

Public Relations

Goal: maintain positive image of company in the publics mind Gain public understanding and acceptance Send press releases Several important functions

Functions of Public Relations

Press Relations Product Publicity Corporate Communication

Public Affairs
Lobbying Employee and Investor Relations Crisis Management

Public Relations Tools

New Product Publicity Product Placement

Consumer Education Event Sponsorship

Issue Sponsorship Internet Web Sites

Public Relations Functions and Tools

Know the difference and be able to identify them What particular advantages does each tool have? Unfavorable publicity
Vioxx

article Crisis management

Ogilvy on advertising

I hate rules What is the big idea

Did it make me gasp when I saw it? Do I wish I had thought of it myself? Is it unique? Does it fit the strategy to perfection? Could it be used for thirty years?

If it doesnt sell, it is not creative When people arent having any fun, they dont produce food advertising Headlines of ten words sell more merchandise than short headlines You cannot bore people into buying your product The more people trust you, the more they buy from you.

Headline & subheading

Headline: Are you good at finding fault
Sub headline : Make it a career

Post graduate diploma in banking and software testing Marveric / LIBA

Media Research

Media research is concerned with collection of data on reach and exposure of each media in general and of vehicles within each media in particular. Such data provide quantitative and qualitative information on the basis of which objective decisions regarding media and vehicle selection can be made.

Areas in Media Research

Investigation of single medium or a single vehicle for advertising effectiveness Comparison of several media, or of several vehicles of a single medium Studies in media mix & vehicle mix Basic research and methodological studies Image studies of media and vehicles Reviews and discussions of advertising and research methods

Functions of Media Research

The primary function of media research is to find out the most efficient media by measuring & comparing different media & different vehicles in terms of vehicle distribution, vehicle exposure & advertising exposure. Vehicle distribution refers to number of copies of a newspaper or magazine circulated within a region or the entire country. In case of broadcast and non-broadcast media it refers to the number of programmes distributed on each channel

Functions of Media Research

Vehicle exposure refers to the number and kind of people reading / glancing newspaper or magazine. It also includes the umber of times each person reads an average issue. Advertising exposure refers to the number of people exposed to advertising message and also to the number of times each person exposes himself or herself to the advertising messages.

Media Research focuses on

Distribution measurement/media coverage Exposure measurement Audience measurement

The Marketing Communications Mix

Advertising
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Short-term Incentives to Encourage Trial or Purchase. Protect and/or Promote Companys Image/products.

Sales Promotion

Public Relations Personal Selling

Personal Presentations.

Direct Marketing

Direct Communications With Individuals to Obtain an Immediate Response.

Advertising
PROS Message can be repeated for exposure Very expressive -- can be used to create image Can reach a geographically diverse audience CONS Can be tuned out Can be expensive Hard to measure results

Personal Selling
PROS Interactive - can be customized Allows a relationship to develop Better understanding of customer needs Buyer will pay more attention to the message CONS Expensive Can only reach a small number of consumers

Publicity
PROS Very believable Free advertising CONS Hard to implement Hard to control Hard to measure its effectiveness

Sales Promotion
PROS Attract attention Strong incentives will induce consumers to act Quick response Encourages trial of product

CONS Can create price sensitive customers Can be costly Easy for competition to imitate

Channels of Sales Promotions

MANUFACTURER Trade Promotions Consumer Promotions Pull

Push

RETAILER

Push

Retail Promotions

CONSUMER

Consumer Promotion -- PULL

Consumer-Promotion Objectives Consumer-Promotion Tools

Entice Consumers to Try a New Product Lure Customers Away From Competitors Products Get Consumers to Load Up on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building

Samples Coupons Cash Refunds Price Packs Premiums

Advertising Specialties Patronage Rewards Contests Sweepstakes

Games

Point-of-Purchase Displays

Trade Promotions -- PUSH

Trade-Promotion Objectives
Trade-Promotion Tools

Persuade Retailers or Wholesalers to Carry a Brand

Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

Price-Offs Allowances

Premiums

Patronage Displays Rewards

Discounts Push Money Specialty Advertising Items

Buy-Back Guarantees
Free Goods Contests

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Target market selection

This is the single most important decision, because all other decisions build upon it. Is the budget sufficent? Is the media message correct? Are the media outlets appropriate? All of these questions will depend upon the target audiences size, motivations, concerns, etc.

Start by describing with demographic data

Target market of a national chain of child day-care centers: Female household heads aged 25 to 34 employed outside the home who have one or more children under age 6 at home and live or work within within 10 miles of a current center.

But need to add life-style and psychographic profile data

This group aspires to have both a successful career and family. These women are serious about child-rearing responsibilities and are avid readers of books and articles on the subject. They are primarily outerdirected Emulators and Achievers in terms of VALS categories. They are concerned about where and with whom they leave their children. Heir childs experience is of crucial importance, while cost of the service is an important, but secondary, concern.

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Problem with using $ of revenue or units sold as an advertising objective

1. Advertising is only one of many factors impacting whether a sale occurs. Advertising has a carryover / delay effect that extends beyond a calendar or fiscal year.

2.

Response Hierarchy Models

Stages

AIDA Model

Hierarchy-ofEffects Model Awareness

InnovationAdoption Model

Communications Model Exposure

Cognitive stage

Attention Knowlege Interest Liking

Awareness

Reception Cognitive response

Interest

Attitude

Affective stage Desire Behavior stage Action

Preference
Conviction Purchase Evaluation Trial Behavior

Intention

Adoption

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Issues to consider in setting advertising budget

Product Life Cycle Market share Competitive clutter Product Substitutability

Setting Advertising Budgets

Affordable Method Percentage-of-Sales Method

Setting Promotion Budget at the Level the Company Thinks They Can Afford.
Competitive-Parity Method

Setting Promotion Budget at a Certain % of Current or Forecasted Sales

Objective-and-Task Method

Setting Promotion Budget to Match Competitors Outlay

Setting Promotion Budget by Defining Objectives, Tasks & Costs.

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Issues in Selecting Advertising Media

Reach, Frequency, and Impact

Major Media Type Options

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Specific Media Vehicles

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Media Timing
Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Classification of Advertising Timing Patterns

Level Rising
(2)

Falling
(3)

Alternating
(4)

Concentrated

(1)

(5)

(6)

(7)

(8)

Continuous
(9) (9) (10) (11) (12)

Intermittent

Number of messages per month

Month

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Factors Impacting the Receipt of a Message

Selective Attention

Selective Distortion

Selective Retention

Issues to Consider in Designing the Message

Message Content Rational Appeals Emotional Appeals Moral Appeals

Message Structure Draw Conclusions Argument Type Argument Order Message Source Expertise, Trustworthiness, Likeability

Typical Message Execution Styles

Comparisons Slice of Life

Real or animated Symbol Mood or Image

Lifestyle Demonstration

Spokesperson Musical
Fantasy Scientific Evidence

Humor

Stylistic Approaches
Can present many points quickly Cost less than drama to produce Audience can become distracted Discount all or part of the facts DRAMA

COMBINATION

LECTURE

Characters speak to each other not the audience Consumers must infer lessons Conclusions are more likely to be accepted

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Advertising Evaluation
Advertising Program Evaluation

Communication Effects

Is the advertisement meeting the specific communication objective?

Sales Effects (to the extent possible)

Is the Ad Increasing Sales?

Brand Names and Branding Issues

A brand is..
A name or symbol that distinguishes the goods or services of one seller group from those of competitors.

Six Levels of Meaning

User

Culture

Personality

Attributes

Benefits

Values

Brand Equity

The set of assets and liabilities linked to a brands name or symbol that add to or subtract from the value provided by the core product or service.

5 Levels of Customer Attitudes toward a brand

Devoted to Brand
Values the Brand

(brand as friend)
Satisfied & Switching Cost Satisfied Customer (no reason to change) No Brand Loyalty (customer will change)

Components of Brand Equity

Brand Awareness Brand Associations

Brand Equity

Perceived Quality

Brand Loyalty

Branding Decision
Brand name or no brand name

Most goods sold today are branded: National or manufacturer brands

Private or store brands

Brand Ladder

versus Brand Parity

Benefits of branding for the seller

Brand names make it easier for the seller to process orders and track down problems Creates brand loyalty Helps seller segment markets. A different branded detergent to different market segments.

Help build corporate image

Strengthening the brand

Develop Creative Advertising

Strengthening the brand

Sponsor well-regarded events

Strengthening the brand

Invite customer to join a club

Strengthening the brand

Invite public to visit your factory

Strengthening the brand

Create your own retail units

Strengthening the brand

Give support to social causes

Strengthening the brand

Be known as a value leader

Strengthening the brand

Develop a strong spokesperson or symbol to represent the company

Good Brand Names Should

Suggest something about product benefits

Good Brand Names Should

Suggest product qualities such as action or color

Good Brand Names Should

Be easy to pronounce, recognize, and remember

Good Brand Names Should

Be distinctive

Not carry negative images in other languages

Brands can become generic in several ways

Company develops a unique product and does not also develop a generic description for competitors to use in identifying their version of the product. (EX: Sony Walkman personal stereos) If consumers use the brand name when referring to the product type. (EX: Aspirin instead of acetylsalicylic acid) When a brand acheives such a high marketshare that the brand becomes the category. (EX: trampoline)

Brand Strategies
Product Category
Existing New

Brand Name

Existing

Line Extension Multibrands

Brand Extension New Brands

New

Cobranding

Line Extensions
Introduction of additional items in the same product category under the same brand name :new flavors, forms, colors, sizes, etc.

Multibrands
Introducing new brands into the same product category

All are Lever Brothers products

Cobranding
Two or more well known brands are paired in a single offering

Brand Extensions
Using an existing brand name to launch new products in other categories

Brand Extension Decisions

Does the brand fit the product class?
Does the brand add value to the offering in the new product class (i.e., the extension)?

Will the extension enhance the brand name and image?

Factors Affecting Consumer Decision Making

REFERENCE GROUPS

VALUES / ATTITUDES

CULTURE

SITUATIONAL FACTORS

NEEDS
PLEASURE GENDER

EDUCATION

CONSUMER DECISIONS
MARKETERCONTROLLED STIMULI
PAST EXPERIENCE

PERSONALITY

FAMILY
NEWS MAGAZINES RADIO TELEVISION DIRECT MEDIA

MEDIA

SOCIAL CLASS

PRICE PACKAGING ADVERTISING PROMOTION PERSONAL SELLING

LIFE-STYLE

SUBCULTURES

Identifying Target Segments: Market Segmentation

Geography
Demographics Lifestyles Psychographics Commitment Levels Usage Patterns

Benefits

Segmenting by Usage and Commitment

Advertising and promotion targeted to:

Heavy

users Nonusers Brand-loyal users Switchers/Variety seekers Emergent Consumers

Demographic Segmentation

Age Gender Race Marital Status Income Education Occupation

The Consumer Decision-Making Process

1.

Need recognition
Functional or Emotional benefits

2. Information Search and Evaluation

Internal and External search Consideration Set Evaluative Criteria

3. Purchase 4. Post-purchase use and evaluation

Customer satisfaction Cognitive dissonance

Cognitive Dissonance
The feelings of doubt and concern after a purchase is made. Dissonance increases when:
1. 2. 3. 4. 5.

The purchase price is high There are many close alternatives The item is intangible (example?) The purchase in important The item purchased lasts a long time

Overview of Creativity

The Poets versus the Killers

The

tension between creativity and selling

is about brand-meaning creation

Creating brands
Advertising

Creativity in general
The

soul of advertising and branding

Context of Message Strategy

Advertising Strategy
(Planning, Preparation, Placement)

Message Strategy

Objectives

Methods

Message Strategy: Objectives and Methods

Repetition ads Slogan and jingle ads

Promote brand recall

Link a key attribute to the brand name

Unique selling proposition (USP) ads

Message Strategy: Objectives and Methods (contd)

Reason-why ads

Persuade the consumer

Hard-sell ads Comparison ads Information-only ads Testimonial ads Demonstration ads Advertorials Infomercials

Message Strategy: Objectives and Methods

Feel good ads Humor ads Sexual-appeal ads

Affective Association

Message Strategy: Objectives and Methods

Scare the consumer into action Change behavior by inducing anxiety

Fear-appeal ads

Anxiety ads

Message Strategy: Objectives and Methods

Transform consumption experiences
Transformational ads

Situate the brand socially

Slice-of-life ads Product-brand placement Short Internet Films

Define the brand image

Image ads

The Creative Team

Copywriter Art Director

Creative Team

Creative Concept

Copywriting and the Creative Plan

Copywriting is the process of A creative plan is the guideline

expressing the
value and benefits a brand has to offer.

that specifies the

message elements of

advertising copy.

UNIT IV INTRODUCTION TO SALES PROMOTION

Power Struggles and Sales Promotion

Sales promotion plays a key strategic role in the channel of distribution

Big name brands must be supported with sales promotion and POP to get the support of retailers through self space allocation.

Sales Promotion

Using incentives to create a perception of greater brand value

Consumer Market

Induce household consumers to purchase a firms brand Motivate distributors, wholesalers, and retailers to stock and feature a brand

Trade-Market

Business Buyer

Cultivate buyers in large corporations who make purchase decisions

Sales Promotion Examples

Coupons Gift Cards Incentives Premiums Trade shows Allowances Sampling Brand placements Contests Sweepstakes Price-off deals

Loyalty programs

18316

Sales Promotion vs. Advertising

Short term demand vs. long term demand Encourage brand switching vs. brand loyalty Induce trial use vs. encourage repeat purchase

Promote price vs. promote image

Immediate results vs. long term effects

Measurable results vs. difficult to measure

18317

Importance of Sales Promotion

$107 billion in 2003 Growth rate: 4-8 percent Reasons for growth:
Demand

for accountability Short-term orientation Consumer response to promotions Proliferation of brands Increased power of retailers Media clutter

Objectives for Consumer-Market Sales Promotion

1. Stimulate trial purchase 2. Stimulate repeat purchases 3. Stimulate larger purchases

4. Introduce a new brand

5. Combat or disrupt competitors 6. Contribute to IMC

Consumer-Market Sales Promotion Techniques

1. 2. 3. 4. 5.

Coupons Price-off deals Premiums Contests/sweeps Samples and trials

6. 7. 8. 9.

10.

Phone gift cards Brand placements Rebates Frequency programs Event sponsorship

Coupons

Entitles a buyer to a price reduction for a product or service

Advantages
Give

a discount to price sensitive consumer while selling product at full price to others Induce brand switching Timing and distribution can be controlled Stimulates repeat purchases Gets regular users to trade up within a brand array

Coupons (contd)

Disadvantages
Time

of redemption cannot be controlled No way to prevent current customers from redeeming coupons Coupon programs require costly administration Fraud is a serious, chronic problem

Price-Off Deals

Offering consumers a reduced price at point of purchase through specially marked packages Advantages
Is controllable by manufacturer. Affects positive price comparisons. Increases consumers belief in the value of a known brand.

Disadvantage

Retailers believe it creates inventory and pricing problems.

Premiums and Advertising Specialties

Premiums

Free or reduced price for an item with the purchase of another item.

Free premiums provide item at no cost. Self-liquidating premiums require consumers to pay most of the cost of the item Advertising specialties:

A message placed on a free, useful item

Contests and Sweepstakes

Contests: consumers compete for prizes based on skill or ability. Sweepstakes: winners picked by chance Both create excitement and interest
But
Legal

and regulatory requirements are complex. Consumers may focus on the game rather than the brand. Difficult to get an IBP message across in a game.

Samples and Trial Offers

Sampling

Giving a consumer an opportunity to use a brand on a trial basis with little or no risk
Newspaper On-package Mobile

Types of sampling
In-store Door-to-door Mail

Trial offers
Used for more expensive items Consumer tries product for a fixed time

Phone and Gift Cards

Manufacturers offer either for free or for purchase debit cards.

With

phone time Or with preset spending limits

Examples
Offers

from Lexus, Oldsmobile, and The Gap.

Rebates

Money back offer requiring the buyer to mail a request for money back from the manufacturer. Often tied to multiple purchases. Many consumers fail to bother sending the request.

Frequency Programs

Also known as continuity programs

Offer

customers discounts or free products for repeat patronage Common in the airline, travel, and restaurant businesses

Objectives for Promotions in the Trade Market

Objectives: Use a push strategy

Push

a product into the distribution channel towards the consumer

Obtain

initial distribution Increase order size Encourage cooperation with consumer market sales promotions Increase store traffic

Trade-Market Sales Promotion Techniques

Incentives: Push money

Allowances: Merchandise allowances, slotting fees, bill-back allowances, offinvoice allowances Sales Training Programs Cooperative (Co-Op) Advertising

Business Market Sales Promotion Techniques

Trade Shows Business gifts

Premiums and advertising specialties

Trial offers Frequency programs

Sales Promotion, the Internet, and New Media

Sampling removes risk associated with consumer trial.

Internet firms use incentives to make Web sites sticky. Internet is used to implement sales promotions and distribute coupons.

Risks of Sales Promotion

Creates a price orientation

Borrows from future sales

Alienates consumers Time and expense Legal considerations

Point-of-Purchase (P-O-P) Advertising

Materials used in the retail setting to attract shoppers attention to a brand, to convey primary product benefits, or highlight pricing information. Objectives for P-O-P Advertising
Draw consumers attention to a brand in the retail setting. Maintain purchase loyalty among brand loyal users. Stimulate increased or varied usage of the brand. Stimulate trial use by users of competitive brands.

P-O-P Advertising and the Trade and Business Markets

Product displays and information sheets encourage retailers to support one distributor or manufacturers brand over another.
P-O-P promotions can help win precious shelf space and exposure in a retail setting. A P-O-P display is designed to draw attention to a brand, increase turnover, and possibly distribute coupons or sweepstakes entry forms. To combat losing business to online shopping, retailers are trying to enliven the retail environment, and P-O-P displays are one strategy.

Coordination Challenge

Message coordination Media coordination Research conclusions:

Short-term Short-term Rare Most

effects can be dramatic. effects are often not profitable.

for long-term effects to occur.

power effects result from advertising and sales promotion being used together.

UNIT V SALES CAMPAIGN

What do we want to accomplish?

Dont need product class Induce trial

Switch to our brand

Not yet buying

Not yet users

Buy from others

Customer

Occasional

Regular Buy more when you buy

Loyal

Buy more often

Dont leave me!

Next we should ask

What should be the budget? 1. Affordability is understandablebut nonstrategic 2. Percent of sales is invariably a mistake 3. Competitive parity is likely a waste of money 4. Objective and task is usually the best

For mature products, test and learn the Return on Advertising

Promotion
Whenever sales arent going well, its tempting to ask:

Shouldnt we be doing more advertising?

Integrated Marketing Communications

ties together the five elements of the promotional mix

Sales Promotion: General Rules

1.

Its highly effective

Driving traffic May increase top-line (Revenue)

2. 3.

4.

May be at the expense of bottom line Within an industry, trains customers to be brand-disloyal May rob Sales from future periods

When?

Designing of sales promotion campaign

Marketing Communication Opportunities What Communication Channels Will You Use Determine Your Objectives Determine Your Promotion Mix Develop Your Promotional Message Develop the Promotion Budget Determine Campaign Effectiveness

Need for Product Promotion

To introduce a new product in the market To influence the public with the help of new uses of the product To increase the frequency of purchase by each buyer To encourage dealers to stock more goods To withstand in the competitive field To increase the sales by imparting special training to salesmen and by window display