Advertising

Amay Kothari

Introduction to Advertising

Advertising
Ad ti i isi paid
id non – personall
communication from an identified sponsor using
mass media to persuade or influence an
audience.

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Types of Advertising
„ Brand Advertising
„ It focuses
f on the
th development
d l t off long
l – term
t
brand identity and image.
„ It tries to develop a distinctive brand image for
a product.
„ It is the most visible type of advertising also
known as national consumer advertising
advertising.

Types of Advertising
„ Retail Advertising
„ Retail
R t il advertising
d ti i iis llocall and
d ffocuses on th
the
store where variety of products can be
purchased.
„ The message announces products that are
available locally, stimulates store traffic and
creates distinctive imageg for the store.
„ Retail advertising emphasizes price,
availability, location and hours of operation.

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Types of Advertising
„ Directory Advertising
„ When people
Wh l refer
f tto advertisements
d ti t tto fifind
d
out how to buy a product or service it is known
as directory advertising.
„ The best – known form of directory advertising
is the Yellow Pages.

Types of Advertising
„ Direct Response Advertising
„ Directt response advertising
Di d ti i ttriesi tto stimulates
ti l t
sale directly.
„ The consumer can respond by telephone or
mail, and the product is delivered directly to
the consumer by mail.

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Types of Advertising
„ Business to Business Advertisings
„ Business
B i tto Business
B i advertising
d ti i iincludes
l d
message directed at retailers, wholesalers,
and distributors, as well as industrial
purchaser and professionals such as Doctors,
Architects and lawyers.

Types of Advertising
„ Institutional Advertising
„ IInstitutional
tit ti l advertising
d ti i iis also
l called
ll d corporate
t
advertising.
„ The message focus on establishing a
corporate identity or winning the public to
organization’s point of view.

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Types of Advertising
„ Political Advertising
„ Politicians
P liti i use political
liti l advertising
d ti i tto persuade
d
to vote for them.
„ It is an important source of communication for
voters.

Types of Advertising
„ Interactive Advertising
„ IInteractive
t ti advertising
d ti i isi delivered
d li d tto th
the
individual consumers who have access to a
computer and the internet.
„ Advertisements are delivered via Web page,
banner ads, multi – media CDs etc.

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Types of Advertising
„ Public Service Advertising
„ Public
P bli S
Service
i advertising
d ti i communicates i t a
message on behalf of some cause, such as
stop smoking, drinking and use of narcotic
drugs.

Role of Advertising
„ Marketing Role
„ Communicating
C i ti iinformation
f ti tto th
the consumer
about the product, it price and availability.
„ Communication Role
„ Advertising transmits different types of market
information to match buyers and sellers in the
marketplace. It informs and transforms the
products
d t by
b creating
ti an iimage ththatt goes
beyond simple facts.

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Role of Advertising
„ Economics Role
„ Advertising
Ad ti i provides id iinformation
f ti about
b t
different products substitutes available and
provides consumers with recall cues so they
consider more substitutes at the time of
purchase
„ Societal Role
„ Advertising
Ad ti i iinforms
f consumers about
b t new andd
improved products an its use. It helps
consumers compare products and features
and make informed decisions.

Internal Environment of the

Advertising Process
Noise is any
y factor that interferes with
the correct delivery of the Ad Message.

Target Audience ’s attention depends on:

their perceived needs,
information processing, and avoidance.

Media plan produces the best set of media

to reach the Target Audience at the
best Time and Place.

The Creative Strategy outlines what type

of message needs to be developed.

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 Major Decisions in Advertising
Objectives Setting

Budget Decisions

Developing
p g Advertising
g Strategy
gy Developing Advertising Strategy
Message Decisions Media Decisions

Campaign Evaluation

Setting Advertising Objectives

„ Advertising Objectives
„ Specific Communication Task,
„ A
Accomplished
li h d with
ith a Specific
S ifi Target
T t Audience,
A di
„ During a Specific Period of Time .

Informative Advertising Persuasive Advertising

Build Primary Demand Build Selective Demand

Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another About a Product.

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Setting Advertising Budgets
Affordable
Method
Setting Promotion
Budget at the Level the
Company Thinks They
Can Afford.
Percentage-of-Sales
Method
Setting Promotion
Budget at a Certain % of
Current or Forecasted
Sales

Competitive -Parity Objective-and-Task

Method Method
Setting Promotion Setting Promotion
Budget to Match Budget by Defining
Competitors’ Outlay Objectives, Tasks & Costs

Developing Advertising Strategy

Creating Advertising Messages
Plan a message
g strategy
gy
General message to be communicated to Customers

Develop a Message
Focus on
Creative Concept
Customer Benefits
“Big Idea”
Visualization or Phrase
Combination of Both Advertising Appeals
• Meaningful
• Believable
• Distinctive

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Developing Advertising Strategy
Message Execution
Turning the “Big Idea” into an actual Ad to capture the Target
Market’s Attention and Interest.

Testimonial
Evidence Slice of Life

Scientific Lifestyle
Evidence Typical
Message
E
Execution
ti Fantasy
Technical
Expertise Styles
Mood or
Personality Image
Symbol Musical

Developing Advertising Strategy

Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact

Step 2. Choosing Among Major Media Types

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

Step 3. Selecting Specific Media Vehicles

Specific Media Within a Given Type
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media Timing

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

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 Evaluating Advertising

Advertising Program Evaluation

Communication Effects Sales Effects

Is the Ad Communicating Is the Ad Increasing
Well? Sales?

Organizing for Advertising

Sales Departments in
Small Companies Advertising Departments
in Larger Companies

Advertising Agency

Firm that Assists Companies

in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs.

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 Maslow’s Hierarchy of Needs

Self-actualization
needs
(A hi
(Achievement:t self-realization)
lf li ti )

Esteem needs
(Status: self-esteem, recognition)

Social needs
(Friendship: love, sense of belonging)

Safety needs
(Stability: security, protection)

Physiological needs
(Sustenance: hunger, thirst)

The Evoked Set

„ Top-of-mind awareness
„ Reminder
R i d advertising
d ti i (hi
(high
h cost,
t consistent
i t t
media strategy, branding)
„ Comparative/competitive advertising

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Effort Performance Outcome
The Expectancy Theory
„ If I putt in
i the
th effort,
ff t will
ill I reach
h the
th proper
performance?
„ If I reach the proper performance, will I reach
the promised outcome?
„ Do they really care about the promised
outcomes?
t ?

Multi-attribute Attitude Model

„ A product or brand has many attributes that
provide the basis on which consumers form
their attitudes
AB =Σ Bi x Ei
„ AB = Attitude toward a Brand
„ Bi = Beliefs about the brand’s performance on
attribute
tt ib t i
„ Ei = importance attached to attribute i
„ n = number of attributes considered

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 Product: Choosing a hotel in Shimla
„ Attributes i:
„ Fireplace (Ei = 70)
„ Hot tub (Ei = 60)
„ Close to town (Ei = 90)
„ Close to the mountain (Ei = 35)
„ Kitchenette (Ei = 10)
„ Ski Station (Ei = 30)
„ Breakfast (Ei = 60)
„ Hotel X ((Close to town,, Ski Station,, Breakfast))
(1 x 90) + (1 x 30) + (1 x 60) = 180
„ Hotel Y (Kitchenette, Fireplace, Close to mountain, Hot tub)
(1 x 10) + (1 x 70) + (1 x 35) + (1 x 60) = 175
Result: Prefer Hotel X over Hotel Y

Traditional Response Hierarchy

Models
Models

AIDA Hierarchy of Innovation Information

model effects model adoption Processing

Awareness Awareness Presentation

Cognitive Attention Attention
Learn Knowledge Interest Comprehension

Affective Interest Liking Yielding

Evaluation
Feel Preference
Desire Conviction Retention
Behavioral
Action Purchase Trial Behavior
Do
Adoption

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Communication Effects Models
„ Alternative Response Hierarchy Models
1. Standard learning model
• High
Hi h ttopical
i l iinvolvement
l t and
d a hi
high
h llevell off b
brand
d
differentiation
• Cognitive Affective Conative
2. Dissonance/Attribution model
• High topical involvement, but low brand differentiation
• Conative Affective Cognitive
• Reducing dissonance as a primary role of adv.
3. Low involvement model
• “learning without involvement”
• Cognitive Conative Affective
• Simple cues in advertising triggers a brand choice
• Developing such cues as a primary role of advertising

Scheduling Technique
„ Continuous
„ Steady fixed rate of advertising for continuous
exposure (evens out a fluctuating buying pattern.)
„ Fighting
„ Shorter period of advertising (2-6 weeks) that are
followed by periods of no advertising.
„ Pulsing
„ Regular schedule an on again off again advertising
with stepped up efforts periodically.
„ Front loading
„ heavier advertising to introduce new products.

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Scheduling Technique
„ Heavy – up
„ Specific times thought the year that need
heavier advertising
„ Scatter strategy
„ Buying a scatter plan that places commercials
within a number of different program types and
time periods
„ Roadblock strategy
„ Purchasing commercials on all three networks
during the same half hour. Produces slightly
more reach than scatter.

Scheduling Technique
„ Program that develop reach
„ Content
C t t charges
h fform weekk to
t weekk (i.e.
(i
Saturday night movie)
„ Programs that develops frequency
„ Content continues from week to week (i.e
soap opera)

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Print
Strength & weakness
„ Portable
„ “Time independent”
„ Not a fleeting medium – it last
„ Accommodates complex copy
„ Good picture quality
„ Easier to feature more than one product
„ Versatility
„ Can be preserved and reread
„ Journalistic content – credibility & prestige
„ Can deliver coupons

Newspaper
Strengths & weakness
„ “Prestigious”
Prestigious
„ Readers upscale
„ Readers use ads
„ Less lead time
„ Strong local emphasis
„ Sense of immediacy
„ Reproduction varies
„ Can be expensive
„ Cluttered
„ Not read thoroughly
„ Poor demographic
selectively
„ May have adverse
editorial

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Magazine
Strengths & Weaknesses
„ Special
S i l audience
di opportunities
t iti
„ Can be long – lasting
„ Repeat exposure
„ Creative flexibility
„ Building
g audience take time
„ Can be cluttered
„ Early closing dates

Radio
„ Various formats
„ Special audience
„ Inexpensive
„ Affordable frequency
„ Affordable production

„ Reaches mobile market

„ Scheduling & creative flexibility
„ Immediacy
„ Radio is cluttered
„ Radio spots are fleeting

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Television
Strength & weakness
„ Impact
p
„ Market coverage
„ Intrusive
„ Flexible
„ Cost – efficient (CPM)
„ Prestigious
„ Fleeting
„ Expensive
„ Big show, big Bucks
„ Production can be expensive
„ Best show gave limited availability

Cable TV
Strength & Weakness
„ Geographic flexibility
„ Inexpensive
„ Varied programming
„ Specialized audience
„ Upscale audience
„ Wide
Wid variety
i t off ad
d fformats
t
„ Low ratings
„ Reporting is inadequate

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