Assignment - 3

Q 1 Explain the advertising agency with its functions?

A 1 Advertising agency is an independent service-rendering organization. It
delivers various services and performs many functions for its clients, who are
advertisers. It is mainly involved in activities like planning, preparing and placing
of ads in media. It is also performs non advertising functions for them.
Functions of advertising agency are as follows:-
• Attracting clients
Ad agency always tries to attract clients usually by giving ads in trade
journals. It also seeks their attention by offering them various services. They
try to give them full satisfaction.
• Research function
Gathers information regarding the product, present and future market
possibilities, situation in the market, distribution methods and many more.
Ad agency analysis all the collected information properly and draws
conclusions for its research.
• Advertising planning
Advertising planning is a primary function of an ad agency. It is done when
its research function is completed. That, after analysis the clients product, its
competitions market conditions etc.
• Creative function
It put the advertising plan into action under its creative function. Another
function are copy writing, drawing photographs & making illustrations,
layout & many more.
• Media selection
It is a highly specialised function of an ad agency must select the most
suitable media for its client ad only chooses media which have a potential to
give best results for the lower cost.
• Advertising budget
Without proper budget, there is a risk of client’s funds getting wasted or lost.
• Co-ordination
It brings good coordination between the advertise, itself, media and
 distributors. This is very important function. If co-ordination is proper, it
will increase the sales of other product.
• Sales promotion
Advertising agency brings a good coordination between the advertiser to
introduce sakes promotion measures for the details and consumers. This
helps to increase the sales of the product.

Q 2 Explain the structural hierarchy of AD agency?

A2

• Account service
Account service is responsible for the relationship between the agency and
clients. The account supervisors are assigned to have good relation with
clients. Depending on the client size and budget. The account supervisor is
responsible for acquiring knowledge about the clients business, profit goals,
marketing problems and advertising objectives.
• Marketing services
The research department is maintained by the full agency together and
published information which is useful in developing advertising for their
clients.
• Creative services
The success of an agency depends of the creative service department to
which is responsibility for the creation and launching the advertisement in
the market. Creation of an advertisement often takes months and may
involve many peoples.
• Management services
An ad agency is in the business of providing services and managed the
advertisement. The department takes the change of finance, human resources
and office management.
• Media buying services
The ad buying services helps to develop of media strategies and contacts in
media to promote advertisement agency offering their sources by taking the
space and time, receiving large discounts and save money for clients and
small ad agency on media purchases.
 • Market research
Advertisement agency helps its clients to solve their marketing problems. It
does so by conducting a marketing research for them.
• Non-advertising function
Advertising agency also performs many non-advertising functions.
• Fixes the price of the product
• Determines the discounts
• Designs the product
• Design package, trademark, tables etc
• Public relations
Advertising agency does the PR work for its clients. It increases the
goodwill its clients and other parties like consumers, employees, middleman,
shareholders etc.
Q3 Explain the role and functions of DAVP?
A3 The directorate of advertising and visual publicity (DAVP) intends to empanel
media planning and buying agencies for a period of one year. This is the first time
that the agency under the Ministry of Information and Broadcasting, Government
of India, will undertake central agency that undertake such initiative. Established in
1955, DAVP is the central agency that undertakes all the multimedia departments
of the Government of India.
Traditionally, DAVP manages the media buying function for the government. Its
duties also involve helping various governments in formulating communication
strategies.
The s cope of work for the media planning and buying the agencies will be help
DAVP in media launches planning to enhance the research of the government.
Structural multimedia campaigns through effective media planning, buying and
implementation.
Multimedia campaigns are carried out in different regions across the country to
promote various government programmes and policies.
Currently there are 5,295 newspapers, 218 television channels, 33 websites, 222
radio stations, 209 outdoor agencies & over 2,000 cinema screens empanelled with
DAVP. The selection of media channels is always open to questioning, in terms of
why we gave preference to a particular media publication or channel over other.
DAVP has already empanelled advertising agencies. Concept communication, span
communication, percept/h, DENTSU communications, cryons, Grey India,
rediffusion - y & R are the categories A&B empanelled agencies with DDAVP.

ASSIGNMENT UNIT 4

Q1 Explain the use and importance of media measurement tools?

A 1 The two types of social media measurement are:

• Ongoing Analytics – Ongoing monitoring that tracks activity over time

• Campaign-Focused Metrics – Campaign or event analytics with a clear
beginning and end
Ongoing analytics are necessary for keeping up with the overall pulse of
general conversation about your brand and company. Once your brand
tracking is set up, you can just let it run and check in regularly to see how
everything is going.

Campaign-focused metrics, on the other hand, help you understand the impact
of targeted marketing initiatives and will vary from campaign to campaign,
depending on your goals for each. An effective social media measurement
program will likely include both ongoing and campaign-specific measurement.

1Determine Your Social Goals

Before you jump into measuring every single tweet, photo and Facebook
comment posted about your brand, first think about your goals with social
media. What are you trying to accomplish or gain through these social
channels? And which channels are most relevant to those goals?

The first step in your measurement plan should be to generate a list of what
you’re trying to achieve from your social media efforts. Social media can
serve a variety of purposes, from broadcasting news and information, to
answering customer questions and engaging with a community. What is your
company trying to accomplish? You’ve probably already started interacting on
social media sites like Facebook, Twitter, Tumblr, Pinterest, YouTube, and
Instagram, depending on the type of information and the format of the content
you’re sharing.

List out all your business goals for social media.

For our Twitter chat example, our goals are probably two-fold:

• First, we want to spread awareness of the new product to potential

customers
• Second, we want to get to know the parenting community on Twitter,
particularly the influencers in that community

2 Create Metrics To Measure These Goals

The next step is to match your goals to actual metrics and behaviours you can
measure. For example, if you’re trying to measure engagement, then what is
the practical form of engagement you want to track? Is it retweets or reposts?
Replies or comments? Clicks? Here are a few suggestions of behaviours to
measure, based on a few common social media goals…

• If you want to measure awareness, then use metrics like volume, reach,

exposure, and amplification. How far is your message spreading?
• If you want to measure engagement, then look for metrics around retweets,
comments, replies, and participants. How many people are participating,
how often are they participating, and in what forms are they participating?
• If your goal is to drive traffic to your website, then track URL shares,
clicks and conversions. Are people moving through social media to your
external site and what do they do once they’re on your site?
• If your goal is to find advocates and fans, then track contributors and
influence. Who is participating and what kind of impact do they have?
• If your goal is to increase your brand’s share of voice, then track your
volume relative to your closest competitors. How much of the overall
conversation around your industry or product category is about your brand?

3 Measure
After you’ve listed the metrics you want to focus on, now you need to find
tools that actually capture these metrics, and then start measuring. In some
cases, social media channels themselves provide some form of analytics, in
some cases you will need to use third party tools, and in some cases you can
build your own using APIs.

If you’re not sure which tools to use for which channels, ask around or do a
quick Google search and you’ll find tons of options.

Many social analytics tools work in real-time, so if you can plan ahead and set
up tracking before your campaign begins (and well before your report is due),
it will be much easier to access the data you need later.

On Twitter, for example, accessing tweets that are more than a few days old is
very expensive, difficult, and far less reliable than collecting and archiving
them in real time. When possible, set up your measurement tools before your
campaign begins.

4 Adjust And Repeat

The final step is to carefully review your measurement program. How are
these metrics doing? Are you missing anything? Was anything superfluous or
unnecessary? Figure out what you can improve, make changes, and then
measure some more. Check back in with the goals you set initially and make
sure your new metrics actually help you address those goals.

In the case of our Twitter chat, we now realize that we also want to measure
engagement around our chat hashtag. We’ve decided it’s important to know
how many of our host’s tweets were retweeted and replied to, so we can
understand what participants found most interesting. We can add this in and
include it in our reporting next time.

If you’re participating in social media, you really need to understand how

you’re doing. Is your content having the impact you want? Are you meeting
your company’s goals with social media? This is why monitoring and
measuring your social media activities is so crucial – you need reliable and
consistent analytics that help you track your success on channels like Twitter,
Facebook, and YouTube.

Q2 What is budgeting process. Explain the factors affecting advertising

budget?

A 2 Budgeting is a process whereby future income and expenditure are decided in

order to streamline the expenditure process. Budgeting is done in order to keep
track of the expenditures and income. It serves as a monitoring and controlling
method in order to manage the finances of whether you're selling a product or
service to a select group of consumers, creating a marketing plan helps outline
how you will inform, persuade or remind the customers about what your business
offers. An essential part of this plan includes coming up with a budget for
advertising expenditures. While each company's advertising budget may differ,
there are several factors that can affect even the smallest advertising budget.
It begins by deciding upon the financial goals according to which the budget will
be made. Other important activities in the budgeting process include things such as
forecasting, monitoring, controlling and evaluating the financial goals.
Whether you're selling a product or service to a select group of consumers,
creating a marketing plan helps outline how you will inform, persuade or remind
the customers about what your business offers. An essential part of this plan
includes coming up with a budget for advertising expenditures. While each
company's advertising budget may differ, there are several factors that can affect
even the smallest advertising budget.
1 Projected Annual Gross Sales
When entrepreneurs prepare to create advertising budgets for their businesses, it's
important to take projected annual gross sales into account. This method helps
protect entrepreneurs from spending too much or too little on advertising.
"Entrepreneur," an online resource and magazine for business owners, suggests
calculating your minimum and maximum advertising budget figures by
calculating 10 percent and 12 percent of your projected annual gross sales. Then,
multiply each figure by the markup you make on your average sales transaction.
This figure can vary year to year depending on both your company's performance
and your product markups.
2 Marketing Objectives
Marketing objectives vary across organizations and can greatly affect what
appears on a company's advertising budget. Determine which marketing objective
will help you reach your annual business goals. Marketing objectives might
include obtaining 5 percent more repeat customers, experiencing growth each
month or increasing annual sales by 10 percent. The objectives you come up with
help you define marketing strategies and tactics, which ultimately give insight
into how and where you advertise, both of which are things that can affect your
budget.

3 Target Market
While one business is targeting customers whose annual household income is at
least $500,000, another business may target recent college graduates who make at
least $33,000 a year. The target market you're trying to reach has an impact on
your advertising budget. Once you define your target market, you gain insight on
how to reach them learning information such as what they read, where they shop,
who they get advice from, their needs and wants and what motivates them to buy.
4 Types of Media
A print advertisement in a local publication may cost less than running an online
advertisement with a popular, credible website. The types of media you select to
promote your product, whether it's radio, print, web, email, billboards or direct
marketing, can impact your advertising budget.
5 Time of Year
Advertising pricing may change during different times of the year, such as a new
season or during popular holidays. While some advertisers may offer discounting,
others will increase their prices if they feel their readership or viewership may
peak during specific times or events. If you're trying to place an advertisement in
a magazine's most popular issue of the year or a television commercial during a
highly televised event, such as the Super Bowl, you can expect a change in the
amount you spend to promote your product or service.
6 Product Launch vs. Existing Product
Budget, as it may affect how much you spend. When products are launched,
business owners often go into overdrive coming up with various ways to
advertise and promote their new product or service to potential clients. This may
cause an advertising budget to be higher than it would be for a product that
customers are already aware of and have purchased in the past.

Q3 Explain the advertising campaign with the stages of product the cycle ?

A 3 An advertising campaign is a specifically designed strategy that is carried

out across different mediums in order to both achieve results and to increase
brand awareness, sales and communication within a specific market. All of this is
accomplished through .Advertising
Many entrepreneurs think carrying out an advertising campaign means simply
creating an ad; however, they are mistaken. For advertising to yield the best
results, it’s crucial to be well organized right from the start.

If you’re considering launching an advertising campaign specifically designed

for your business, we recommend you get in contact with a specialist in that area.
In this context, an online advertising agency specifically geared towards internet
marketing, is your best bet; this is the best way to achieve your desired results.

When it comes to advertising a product, the advertising life cycle is made up of

four primary stages. These stages are the introduction, growth, maturity and
decline stages. Each stage is associated with how the product sells, but each stage
has its own set of advertising guidelines businesses should abide by so companies
can plan to address the advertising challenges a product faces as it moves through
each stage of the product life cycle.

1 Determine the potential customers of the product. Before you can create an
advertising plan or campaign, you first have to know to whom you are advertising
the product. Identify the potential customer by describing their gender, their age,
where they live, what their household income is and how they benefit from using
the product.
2 Determine where your product is in the life cycle. Learn the traits of each stage
of the product life cycle so you can determine which stage of the cycle is where
your product is. Determining the stage helps guide you in what you need to focus
on in your advertising efforts. If you are just introducing your product, then
advertising efforts generally focus on bringing awareness of the product to
customers, while products in the growth stage are performing advertising efforts
that sets its product apart from the competition. Products in the mature stage use
advertising as reminders to buy the product by offering coupons or special sales to
existing customers. Companies with products in the decline stage generally cut
back spending on advertising.

3 Choose an advertising technique. Choose one form of advertising, based on

where the product is in the life cycle. For example, you may offer coupons to save
money on the purchase of the product. Send the coupons using different mediums,
such as email, in-store displays on the business website and sending coupons in the
mail.

4 Measure response results. Track the responses to the advertising campaign. For
coupons, a promotional code on the coupon helps to determine where the coupon
came from. If orders are ask where the buyer heard of the product. if the
advertisement is successful, then you can mimic the advertisement in future efforts.
If not, you can tweak the advertising effort to try to increase the response rate.

5 Introduce a new advertisement. Companies often find that a combination of

advertising efforts work to promote the product. In addition to the original
advertisement, add a new type of advertising to your efforts, such as giving out free
samples.

6 Repeat Steps 3 to 5. Continue to add and take away advertising efforts until you
create a combination of advertising techniques that seem to sell the product the
best.