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Advertising is any paid-for communication overtly intended to inform and/or influence one or more people. Advertising says to people, 'Here's what we've got. Here's what it will do for you. Here's how to get it. Advertising 1. Identifies a current problem / opportunity for the product, service or corporate brand 2. Identifies the customers who can best solve / create that problem / opportunity 3. Creates the most relevant and distinctive way of communicating to them in creative & media terms
Advertising in Context
Who engages in advertising? Businesses, governments, and individuals.
Role of Advertising
Simply put: Advertising exists to help to sell things. It is mainly about brands It is mainly designed to create and strengthen consumer impressions of the brand Exception is public service advertising
Role of advertising
Marketing Communication Economic Societal
The process a business uses to satisfy consumer needs by providing goods and services
Product category Target market Marketing mix Brand
Role of advertising
Marketing Communication Economic Societal
Can reach a mass audience Introduces products Explains important changes Reminds and reinforces Persuades
Role of advertising
Marketing Communication Economic Societal
Moves from being informational to creating demand Advertising is an objective means for providing price-value information, thereby creating a more rational and transparent economy
Role of advertising
Marketing Communication Economic Societal
Informs consumers about innovations and issues Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer self-image Perpetuates selfexpression
Types of advertising
Product advertisingTries to sell a specific product to final users or channel members Services advertising Tries to sell specific services of specific industry to the consumers. Corporate/institutional advertisingTries to promote an organisation's image, reputation or ideasrather than a specific product
Types of Advertising
Brand advertising Retail or Local advertising Direct-Response advertising (Instant translation into sales like coupons, toll free numbers etc) Business-to-Business advertising (e.g Naukri, Xerox machines etc) Institutional advertising (more than a product, helps in promoting the image of the institution) Nonprofit advertising (e.g NGOs, political parties advertising their agendas etc.) Public Service advertising
He is responsible for getting approved the media schedules, budgets and rough ads or story boards from the client. The next task is to make sure that the agency personnel produce the advertising to the clients satisfaction. The biggest role of the account executive is continuous follow-up and communication.
Media department
The responsibility of this department is to develop a media plan to reach the target audience effectively in a cost effective manner. The staff analyses, selects and contracts for media time or space that will be used to deliver the ad message. This is one of the most important decisions since a significantly large part of the clients money is spent on the media time and/or space.
Creative department
The success of an ad agency depends upon the creative department responsible for the creation and execution of the advertisements. The creative specialists are known as copywriters. They are the ones who conceive ideas for the ads and write the headlines, subheads and the body copy. They are also involved in deciding the basic theme of the advertising campaign, and prepare the rough layout of the print ad or the visual ad or commercial. Creation of an ad is the responsibility of the copywriters and the art department decides how the ad should look.
Production department
After the completion and approval of the copy and the illustrations the ad is sent to the production department. Generally agencies do not actually produce the finished ads; instead they hire printers, photographers, engravers, typographers and others to complete the finished ad. For the production of the TV commercial, the production department may supervise the casting of actors to appear in the ad, the setting for scenes and selecting an independent production studio. The production department sometimes hires an outside director to transform the creative concept to a commercial.
Branding
Branding means A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller, and to differentiate them from those of competitors
Brands as risk-reducers
Brands convey Guarantee of consistent quality. They allow the customer to choose the best or most suitable product for his/her needs. They can act as symbols of his/her status or self- image.
Fixed Image - Every brand has a certain image to potential customers, and part of that image is about what products or services you sell. Time scale - The process of creating a brand will usually take a long period of time.
The Social Dimension - Airtel is a recognized brand to be associated with. It is associated with a high level of social value.
The Spiritual Dimension - "Building telecom, building relationships." Airtel encourages everyone to be more involved in building relationships and spreading happiness. The Mental Dimension - Airtel gives me the opportunity to "Express Myself."
Sales Promotion
Greater pressure to liquidate stocks Ad-effectiveness declining owing to rising costs, media clutter and legal constraints
SP is a push strategy
Since it is at the last point where the consumer is often at the point of buying, the additional incentive makes a last ditch effort to convert the customer on to the incentivized brand
SP is of two types
Trade Consumer
Trade promotion
Liquidating heavy inventories Persuade retailers to carry stock, carry more than usual stock, promote brand franchise
Consumer promotion
Stimulate purchase Induce trial Create new users Increase repurchase from occasional customers Reward loyal customers
SP spurs action because they are supposed to run for a limited time
The more the products quality and its advertising persuasiveness fail to meet competition, the greater is the need for promotion.
Maturity Higher promotions required since the brand is under attack from competitors or product quality or advertising effectiveness is tapering off Decline Heavy promotions. Used only to retain a set of loyal customers. Prior to withdrawal of the product, it could be used as a one time stock clearance from the trade
Branded Entertainment
Branded entertainment is also called as ADVERTAINMENT. Combination of an audio-visual program and a brand. Initiated either by the brand or by the broadcaster.
PURPOSE
Promotes brand image to their target audience by creating positive links between the brand and the program for viewers. Branded Entertainment is not simply product advertising or product placement - branded entertainment is a piece of entertainment that perfectly aligns with the brand attributes, and is a reflection of the advertiser's brand personality
Some examples
Don - TagHuer ,Motorola, Garnier, Citibank. Dhoom 2 - Coke, Pepe , Sony, Disney. Krrish Singapore Tourism Board , Sony , John Players , Bournvita , Tide, Boroplus, HP. Indian Idol Garnier, Nokia, Coke