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By
Dr. G.MURUGANANTHAM.
(MBA, M.Phil, UGC-NET, Ph.D)
Assistant professor
Department of Management Studies
National Institute of Technology (NIT) - Tiruchirappalli.
MB 840 - Advertising Management
Objectives
Text Books:
S. A. Chunawalla and K. C. Sethia, Foundations of Advertising Theory and Practice, Himalaya
Publishing, New Delhi.
Jaishri Jethwaney and Shruti Jain, Advertising Management, Oxford University Press, New Delhi.
Belch E. George and Belch A. Michael, Advertising and Promotion, Tata Mc Graw Hill, New Delhi.
S.H.H.Kazmi, Satish K Batra, Advertising and Sales Promotion, Excel Books, New Delhi, 2001.
Rajeev Batra, John G. Myers and David A Aaker, Advertising Management, Prentice Hall, New Delhi.
Marketing
Marketing Mix
• Product
• Price
• Place
• Promotion
Communication / Promotional Mix Elements
• Advertising
• Direct Marketing - accurate data base – use of various modes like Direct
Mails, Telemarketing, etc - without intermediaries.
Advertising
• Even a women wears a lipstick; she is advertising that she wants to look
beautiful. When a neta delivers a speech, he is advertising that he wants to
be noticed. Ads are parts of human nature to be noticed. Colours of
Flowers.
1472 - First print ad in English tacked on London church doors to promote Bible.
1729 - Benjamin Franklin - Father of advertising art made ads more readable by using
large headlines and considerable white space.
Advertising…Historical Review…Cont…
The Industrial age:
Rosser Reeves of the Ted Bates Agency – USP (Unique Selling Proposition)
Ad must point out the USP - features that differentiate it from competitors
(Q, Variety, Convenience, Effectiveness, etc)
Advertising…Historical Review Cont…
Market segmentation – Unique group of people.
Agencies emphasis shifted from product features to brand image or personality
• The best way to enter minds that hate complexity and confusion is to
oversimplify your message.
• “The thought was very simple, the message became powerful. The
advertiser wanted the emphasis to be on communal harmony, and the ad
served the purpose.
Objectives of Advertising
To Inform
• -Telling the market about a new product
• -suggesting new uses for a product
• -informing the market of a price change
• -explaining how the product works
• -Describing available services
• -Correcting false impressions
• -Reducing buyers fears
• -building a company image
To persuade
• -Building brand preference
• -encouraging switching of the brand
• -Changing buyer’s perception of the product attributes
• -Persuading buyers to purchase now
• -persuading buyers to receive a sales call
To Remind
• -reminding buyer that the product may be needed in the near future
• -reminding buyers where to buy it
• -keeping it in buyers minds during off seasons
• -Maintaining its top-of-mind awareness.
Advertising objectives
AIDA Model
A - Get
I - Hold
D - Arouse
A - Obtain
DAGMAR
• DAGMAR was put forward by Russell H. Colley in his book titled, Defining
Advertising Goals for Measured Advertising Results. The DAGMAR
corresponds to the abbreviation of the title.
• According to DAGMAR, advertising has to perform a specific communication task;
the task has to be accomplished among a well-defined audience, within a specified
time period. The most important feature of DAGMAR is that it looked at
advertising as performing a communication task rather than a sales task.
• Colley distinguished 52 advertising goals that might be used with respect to a single
advertisement, a year‟s campaign for a product or a company‟s entire advertising
philosophy. These goals may pertain to sales, image, attitude and awareness.
• Make the brand identity known and easily recognizable. Provide information about
the brand
• According to DAGMR approach, the communication task of the brand is to gain
a. Awareness b. Comprehension c. Conviction d. image and e. action.
• DAGMAR is a planning and control tool. It may guide the creation of advertising.
Role of Advertising
• Common sense is about „reading the lines‟ then insight is about „reading between
the lines‟.
• Among all the marketing mix elements, advertising is probably the most
critical link between the marketer and the consumer in the today‟s world.
• Its ability to transform products into brands in consumer minds is vital for creating
and sustaining a relationship with them.
• Effective advertising is therefore almost a necessary condition for any marketing
effort to succeed in today‟s competitive world.
• The ultimate driving force behind the need to advertise, whether it is the
natural world or the commercial world, is the universal law of survival of the
fittest.
• Social implication:
Economic Implications:
Four factors
1. Personal- Age, occupation, Economic, lifestyle, personality, self
concept- (How one views about himself)
2. Psychological (Motivation, learning, belief, attitudes)
Learning-change in individual behaviour arising from experience
Belief-Descriptive thought that a person holds about something
Attitude- persons favourable or unfavourable evaluation or feeling towards
some object or idea.
3. Cultural Factors
4. Social factors ( Family, reference group, social roles, status)
• In general there are three ways of analysing consumer buying decisions.
They are:
http://en.wikipedia.org/wiki/Buyer_decision_processes
Black box model
The black box model shows the interaction of stimuli, consumer
characteristics, decision process and consumer responses.
The buyers black box contains the buyer characteristics and the
decision process, which determines the buyers response.
ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
BUYER'S
RESPONSE
Marketing Environmental Buyer
Decision Process
Stimuli Stimuli Characteristics
Economic Attitudes
Problem recognition Product choice
Product Technological Motivation
Information search Brand choice
Price Political Perceptions
Alternative evaluation Dealer choice
Place Cultural Personality
Purchase decision Purchase timing
Promotion Demographic Lifestyle
Post-purchase behaviour Purchase amount
Natural Knowledge
The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem.
However, in reality many decisions are not made in awareness of a determined problem by
the consumer.
Consumers mind and thought process is treated like a black box which can’t be opened to
find out its working.
Characteristics of the Indian Consumer
Dressing styles, eating habits, festivals, religious rites and rituals are different in different Indian
states
Behavior
The Indian consumers are noted for the high degree of value orientation and family
orientation.
Importance of attitude
• They guide our thoughts (the cognitive function)
• Influence our feelings (the affective function)
• Affect our behaviour (the connative function)
Attitude formation (1/2)
Product, Brand, Packaging, Quality, Price, Retail Show room,
Source:
• Credible source
• Attractive source
• Likeable source
• Celebrity source
Message:
• Pleasant pictures
• Music
• Humour
• Appeals. Etc.,
How attitudes are formed? (2/2)
Learned
Positive reinforcement (satisfaction from a brand) and hence
repetitive usage of the brand can lead to a favourable attitude
formation.
Cognitive learning which is oriented towards problem-solving
can also result in positive attitudes -(Surf excel is shown to remove
fabric stains).
WoM, The opinion of family and friends can influence.
• Every creative thought, feeling, and plan is developed by our brain. The
brain’s neurons record the memory of every event in our lives.
• http://www.innerbody.com/image/nerv02.html
• http://www.human-memory.net/brain.html
Memory
• Cerebrum - The largest region of the human brain - controls higher
brain functions such as language, logic, reasoning, and creativity.
• The brain receives information about the body’s condition and surroundings
from all of the sensory receptors in the body.
• Short-term memory allows recall for a period of several seconds to a minute without
rehearsal. Its capacity is also very limited: memory capacity can be increased through
a process called chunking. For example, in recalling a ten-digit telephone number, a
person could chunk the digits into three groups: (98 651 751 35).
• Long-term memory can store much larger quantities of information for potentially
unlimited duration (sometimes a whole life span). Its capacity is immeasurably large.
• For example, given a random seven-digit number we may remember it for only a few
seconds before forgetting, suggesting it was stored in our short-term memory. On the
other hand, we can remember telephone numbers for many years through
repetition; this information is said to be stored in long-term memory.
Memory
• But your memory doesn't exist in the way a part of your body exists -- it's not a
"thing" you can touch. It's a concept that refers to the process of remembering.
• It seems that our memory is located not in one particular place in the brain, but is
instead a brain-wide process in which several different areas of the brain act in
conjunction with one another.
• Memory is really made up of a group of systems that each play a different role in
creating, storing, and recalling memories. When the brain processes information
normally, all of these different systems work together perfectly to provide cohesive
thought.
• The search for how the brain organizes memories and where those memories
are acquired and stored has been a never-ending quest among brain researchers
for decades. Dream ???
What is the Maximum Memory Capacity of the Human
Brain?
• Paul Reber, professor of psychology at Northwestern University,
responded to this question submitted to Scientific American:
• The human brain consists of about one billion neurons. Each neuron
forms about 1,000 connections to other neurons, amounting to more
than a trillion connections. If each neuron could only help store a single
memory, running out of space would be a problem. You might have
only a few gigabytes of storage space, similar to the space in an iPod or
a USB flash drive.
• Yet neurons combine so that each one helps with many memories at a
time, exponentially increasing the brain’s memory storage capacity to
something closer to around 2.5 petabytes (or a million gigabytes).