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ADVERTISING

By

P.S.VENKATESWARAN

What is Advertising?
Advertising is Any Paid Form of

Nonpersonal Presentation and


Promotion of Ideas, Goods, or
Services by an Identified
Sponsor.

Form could be a presentation. It may be


sign, a symbol, an illustration, an ad
message in a magazine or newspaper, a
commercial on the radio or on television, a
circular dispatched through the mail or a
pamphlet handed out at a street corner; a
sketch or message on a billboard or a
poster or a banner on the Net.
Non-personal would mean that it is not
on a person-to-person basis.

Goods, Services, Ideas for action


would mean making a consumers work
easy in knowing about the product of the
firm.
An idea could also be political parties
letting the people know about their party
and why they should vote for their party.
Adult education, beware of AIDS, donate
your eyes are few examples of ideas.

Paid by an identified sponsor


would imply that the sponsor has
control over the form, content and
scheduling of the advertisements.
The sponsor could be identified by
the company name or the brand of
the particular product.

Advertising Objectives

1. Informative advertising.

2. Persuasive advertising.

3. Reminder advertising.

RIP = Remind - Inform - Persuade

Informative Advertising
Inform Consumers or
Build Primary Demand

Persuasive Advertising
Build Selective Demand

Reminder Advertising
Keeps Consumers Thinking
About a Product

Advertising Objectives
1. Informative advertising:
To create awareness of the organization.
To explain the characteristics of the
organization
To correct false impressions about the
organization
To reduce peoples worry or fears about
visiting the organization.

To build or enhance the organizations


image or position.

Advertising Objectives
2. Persuasive advertising:
To increase customer preference for the
organizations services.
To increase customer loyalty to the
organization.
To encourage customers to switch from using
a competitive organization.
To convince customers to book at the
organization now or in the future.
To change customers perceptions.

Advertising Objectives
3. Reminder advertising:

To remind customers about where they can


book the organizations services.
To remind customers about facilities or
services that are unique to the sponsoring
organization.
To remind customers about when they should
book or reserve the organizations services.
To remind customers of the existence of the
organization.

Besides, the purpose of advertising are as


follows:
1. Launch of a new product
2. Modification in products
3. Change in price
4. New packing
5. Promotional plans, e.g. buy one get one free
6. Distributors and retailers address
7. Educating the customers for proper use of the
product
8. To retrieve lost sales, e.g. due to strike in the
factory
9. Reminder ads and for maintaining sales
10. To recruit staff

11. To appoint distributors and dealers


12. To invite technical staff of industrial customer
to ask for literature, come to visit
13. Competitive comparative advertising
14. To assist retail sales
15. To help salesperson get a foot in the door of
industrial customers
16. To attract investors through special ad
campaigns
17. To export/go international (separate chapter
is provided for this topic)
18. To announce financial results of the firm
19. To sell direct e.g. Readers Digest

Good Advertising Objective

Includes a precise statement of who, what


and when
Be quantitative and measurable
Specify the amount of change
Be realistic
Be consistent
Be clear and in writing

Advertising objectives in relation to the


stages in the product life cycle

Integrated Marketing Communications


(Promotion Mix)
Advertising

Personal selling

Sales promotion
Public relations

Direct marketing

Steps in Developing Effective


Communication
Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives


Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase

Steps in Developing Effective


Communication
Step 3. Designing a Message

Message Content
Rational Appeals
Emotional Appeals
Moral Appeals

Message Structure
Draw Conclusions
Argument Type
Argument Order

Message Format

Headline, Illustration,
Copy, & Color
Body Language

Steps in Developing Effective


Communication
Step 4. Select the Communication Channels

Personal Communication Channels


Face to Face, Telephone, Presentation

Non Personal Communication Channels


Print, Broadcast and Display Media

Step 5. Selecting the Message Source


Step 6. Measure the Communications Results

Setting the Total Promotion Budget


One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.

Affordable

Percentage of Sales

Based on What the


Company Can Afford

Based on a Certain Percentage


of Current or Forecasted Sales

Objective-and-Task

Competitive-Parity

Based on Determining
Objectives & Tasks, Then
Estimating Costs

Based on the Competitors


Promotion Budget

Setting the Promotion Mix


Advertising

Reach Many Buyers, Repeat Message


Many Times, Impersonal, Expensive

Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing

Personal Interaction, Relationship


Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive

Factors in Setting Promotion Mix

Strategy that
Calls for
Spending A Lot
on Advertising
and Consumer
Promotion to
Build Up (Pull)
Consumer
Demand.

Strategy
Selected
Depends
on:
Type of
ProductMarket &
Product
Life-Cycle
Stage

Strategy that
Calls for Using
the Salesforce
and Trade
Promotion to
Push the
Product Through
the Channels.

Factors in Setting Promotion Mix (contd)

Buyer Readiness State

Awareness
Liking, Preferences, and Conviction
Purchase

Product-Life-Cycle Stage

Introduction
Growth
Mature
Decline

POLO Print advertisement