Advertising

Prof Ramendra Singh

August 22, 2017 MM-I_IMC_sessions 18-19 1

 Developing and Managing
the Advertising Campaign
The Five Ms of • Objectives can be
Advertising classified by aim:
• Mission – Inform
• Money – Persuade
• Message – Remind
• Media – Reinforce
• Measurement

August 22, 2017 MM-I_IMC_sessions 18-19 2

 Developing and Managing
the Advertising Campaign
The Five Ms of • Factors considered when
Advertising budget-setting:
– Stage of product life cycle
• Mission – Market share and
consumer base
• Money – Competition and clutter
• Message – Advertising frequency
• Media – Product substitutability
• Measurement

August 22, 2017 MM-I_IMC_sessions 18-19 3

 Developing and Managing
the Advertising Campaign
The Five Ms of • Factors considered when
Advertising choosing the advertising
message:
• Mission – Message generation
• Money – Message evaluation and
• Message selection
– Message execution
• Media
– Social responsibility review
• Measurement

August 22, 2017 MM-I_IMC_sessions 18-19 4

 Developing and Managing
the Advertising Campaign
The Five Ms of • Developing media
Advertising strategy involves:
– Deciding on reach,
frequency, and impact
• Mission
– Selecting media and
• Money vehicles
• Message – Determining media timing
• Media – Deciding on geographical
media allocation
• Measurement

August 22, 2017 MM-I_IMC_sessions 18-19 5

Developing and Managing
the Advertising Campaign
Major Media Types
• Newspapers
• Television • Outdoor
• Direct mail • Yellow pages
• Radio • Newsletters
• Magazines • Brochures
• Telephone

• Internet

August 22, 2017 MM-I_IMC_sessions 18-19 6

What is Social Media
• Social media are computer-mediated tools that allow people,
companies, and other organizations to create, share, or
exchange information, ideas, and pictures/videos in virtual
communities & networks.
• Apps: Twitter, Facebook, LinkedIn, etc..
• Blogging

• Professional networks

• Social networks

• Video sharing

• Photo sharing
 6 C’s of Social Media
1. Communities: Users gathering to learn, talk, chat.

2. Conversations: Communication is about conversation, not “pushing a

message” on users

3. Content: Content needs to be fresh and timely.

4. Continuity: Respond to feedback, news and voices of the community;

Continue the conversations

5. Context: Tell the right story. Don't just tell your brand's story, tell it
right.

6. Control: Organisations don’t control the conversation, users do!

 PM Narendra Modi: In Numbers

Currently (as on 26 April 2017) Narendra Modi has

1. 41,498,691 likes on Facebook

2. 29.4 Million followers on Twitter

3. 660,050 subscribers on YouTube,

4. 7.3 million followers on Instagram.

5. Both Narendra Modi and PMO India pages are active

 Developing and Managing
the Advertising Campaign
• Deciding on Media Categories
– Target audience’s media habits, nature of the
product and message, cost
• Media Timing Decisions
– Macroscheduling vs. microscheduling
– Continuity, concentration, flighting, and pulsing
scheduling options
• Deciding on Geographical Allocation

August 22, 2017 MM-I_IMC_sessions 18-19 10

 Developing and Managing
the Advertising Campaign
The Five Ms of • Evaluating advertising
Advertising effectiveness
• Mission – Communication-effect
research
• Money
• Message – Sales-effect research
• Media
• Measurement

August 22, 2017 MM-I_IMC_sessions 18-19 11

 Coca Cola: Story Board

August 22, 2017 MM-I_IMC_sessions 18-19 12

 Print Ads
Source: www.afaqs.com

August 22, 2017 MM-I_IMC_sessions 18-19 13

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 OOH

Source: www.afaqs.com

August 22, 2017 MM-I_IMC_sessions 18-19 17

August 22, 2017 MM-I_IMC_sessions 18-19 18
August 22, 2017 MM-I_IMC_sessions 18-19 19
 Sales Promotions

August 22, 2017 MM-I_IMC_sessions 18-19 20

August 22, 2017 MM-I_IMC_sessions 18-19 21
Coupons, too, can be effective at getting
consumers
August 22, 2017
to purchase specific products
MM-I_IMC_sessions 18-19 22
 Sales Promotion: Importance

Growth in United States

• Exceeds $250 billion dollars a year

• Increasing percentage of promotional dollars
• Consumer goods companies spend more on sales
promotions than advertising

August 22, 2017 MM-I_IMC_sessions 18-19 23

 Sales Promotion
• Sales promotions are short-term incentives
designed to stimulate purchase among
consumers or trade.

• Purpose of sales promotion

– Attract new triers or brand switchers
– Reward loyal customers
– Increase repurchase rates

August 22, 2017 MM-I_IMC_sessions 18-19 24

 Sales Promotion
Methods for Consumers

Product sampling, demonstrations

Coupons, refunds

Rebates, cents-off-

Contests, games & sweepstakes

August 22, 2017 MM-I_IMC_sessions 18-19 25
 Sales Promotion
Methods for Consumers
Premiums

Multiple purchase offers,

Frequent-user incentives

P-O-P material

Product placements/tie-ins
August 22, 2017 MM-I_IMC_sessions 18-19 26
 Types of Sales Promotion
Promotional Non-price Sampling
pricing promotions
• Price reductions
• Free goods
• Tied offers • Most effective in the
• Money off next • Contests early stages of a new
purchase • Free gifts product launch (#1 use
• Loss leader pricing • Self-supporting offers for coupons)
• Cheap credit • Multi-brand promos s • Important for food
products
• Guarantees and added
services • Very expensive

August 22, 2017 MM-I_IMC_sessions 18-19 27

 Sales Promotion

Steps in Sales Promotion

Program Development

• Establish objectives • Select business- and

• Select consumer-promotion sales force promotion
tools tools
• Select trade-promotion • Develop the program
tools • Pretest the program

 Implement and evaluate the program

August 22, 2017 MM-I_IMC_sessions 18-19 28
 USA Coupon Redemption

1990 1992 1993 1994 1995

Distribution 279 310 300 310 292

Redeemed 7.1% 7.7 6.8 6.2 5.8%

August 22, 2017 MM-I_IMC_sessions 18-19 29

 Sales Promotion
Methods for the Trade
• Trade shows
• Contests, free merchandise
• Display equipment, P-O-P materials
• Cooperative advertising & promotions
– Vertical - channel members
– Horizontal - group of retailers
• Allowances (buying vol., buy-back, scan-back,
merchandise)
• Premium or push money, slotting allowances

August 22, 2017 MM-I_IMC_sessions 18-19 30

 Trade Shows
Selling objectives Non-selling objectives
Maintain relationship Maintain image
Transmit messages Test products
Current
to key accounts Gather competitive
customers Remedy problems intelligence
Add-on sales Widen exposure

Contact prospects Contact prospects

Potential Determine needs Foster image building
customers Transmit messages Test products
Commit to call back Gather competitive
or sale intelligence

August 22, 2017 MM-I_IMC_sessions 18-19 31

Proportion of Promotional Expenditures
60%

50%

40%

30%

20%

10%

0%
1985 1987 1989 1991 1993 1995

Trade sales promotion Consumer sales promotion

Advertising
August 22, 2017 MM-I_IMC_sessions 18-19 32
 Sales Promotion: Pros and Cons
Advantages:
•Motivation method for special
efforts
•Short-term sales increase
•Defined target audience
•Defined role/objectives
•Indirect roles (e.g., wider
distribution)
Disadvantages:
•Only short-term
•Hidden costs
•Confusion
•Price cutting -Brand image
•Postponement effect
•Significant government
regulation
•Lack of effectiveness
sometimes (learning effect)

August 22, 2017 MM-I_IMC_sessions 18-19 33

Sales Promotion Effectiveness

How do the different consumer benefits of sales

promotion influence its effectiveness?

Six Benefits
Savings Quality
Convenience Value expression
Exploration Entertainment

August 22, 2017 MM-I_IMC_sessions 18-19 34

Positioning Map
Sales Promotions Benefit Matrix

High *
Free
Gifts

Free Product
Offers
Hedonic *

* Sweepstakes
* Coupons

* *Price Reductions
Low Rebates
Low
August 22, 2017 Utilitarian
MM-I_IMC_sessions 18-19 High 35