What is Advertising? Advertising is a paid form of mass communication and can be traced to an identified sponsor.

Role of advertising: a) Creating awareness and attitude formation b) Generating trial and purchase Advertising role is limited to communication. Awareness creation and favorable attitude development.

In developing an advertising program, marketing managers must always start by identifying the target market and buyer motives. Then they can proceed to make the five major decisions in developing an advertising program, known as the five M s : Mission What are the advertising objectives? Money How much can be spent? Message What message should be sent? Media What media should be used? Measurement How should the result be evaluated?

Mission *Sales Goals * Advertising Objectives Money * Stages in Product Life Cycle * Market Share and consumer Base * Competition * Advertising frequency * Product substitutability Message * Message generation * Message evaluation and selection * Message execution * Social responsibility review Media Reach, frequency, Impact * Major media types * Specific media vehicles * Media timing * Geographical media coverage. Measurement * Communication impact * sales impact

Possible Advertising Objectives 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. To Persuade Building brand preference. Encouraging switching to the brand. Changing buyer s perception of product attributes. To Remind Reminding buyers that the product may be required in the near future. Reminding buyers where to buy it. Last opportunity reminders.

The marketer must compare: The costs of different elements of communication mix The cost per exposure, per thousand people is the lowest in advertising. Most expensive route to communicating with the target audience is personal selling.

Institutional framework for advertising Competition Advertiser Advertising Agency Media Research Agencies Government Industry Structure (Barriers to Entry and exit 16.7

Communication Objectives: Are in line with overall organizational goals and strategy Inter-firm rivalry and demand and supply conditions within the industry play a major role in determining communication goals and strategy Goals and strategy are influenced by: Government policy A product manager/ brand manager is responsible: For developing communication goals for the product/brand Evolving a marketing plan and strategy for it

Advertising Agencies Role of advertising agencies Purchase of media time and space Responsible for development of an advertisement copy / commercial Structure : Three groups work in agencies- The creative group/ account managers and media executives. Compensation: Commission and fee basis Fee for creative copy development or the art work For brochure development and printing-mark up on suppliers invoice Strategic Repositioning : With globalization,companies have seen lot of

People working in agencies can be divided into: a) The creative people-create advertising copies b) Account managers-perform selling tasks, liase with client firms c) Media executive-look after the media planning d) Research studies audience characteristics and wants

The Media: Electronic media: Cinema, television, video, cable TV, radio Print media:newspapers, magazines, technical journals Outdoor media:hoardings, billboards, neon signs

Advertising Decisions: Advertising objectives: In evolving an advertising plan, objectives have to be set as they help in measuring the performance of an advertising campaign. Advertising objectives have to be measurable and communicated Sales objectives: increase the firm s or brands sales, market share, and profits Behavioral goals: aimed at changing the target market s attitude and behavior towards the brand Communication related goals: this is a logical goal since advertising is a communication tool 16.12

The communication task Awareness Brand knowledge and image Attitude towards the brand Action Hierarchy of effects model of the communication process

Budget Percent of sales: Past sale or projected future sales is used as a base Based on guidelines for budgeting, that advertising should only be resorted to only if the firm can afford it Limitation-does not believe that advertising can influence sales Affordability: Ensures that there is no excessive advertising/resources are not wasted Assumes that sales are independent of advertising

Budget Competitive Parity: In other words, follow the crowd

Lead to a near optimal level of spending Objectives and Tasks: An advertising objective is determined in specific terms The decision maker estimates costs of each of these tasks and the total of all these costs becomes the advertising budget This method is logical as it assumes a casual flow from advertising to sales

Copy Decisions Different agencies use different creative styles to communicate the desired message to the target audience. Rational Appeal Social Appeal Emotional Appeal Style Slice of life, fantasy, mood or image, musical, personality symbol, technical expertise, scientific evidence, testimonial evidence. Tone Emotional, rational, humour Words 7-up is not a cola 16.16 The Un-Cola

The concept of unique selling proposition-the advertisement needs to sell and not just merely be a work of art. In a) b) c) the development of USP three factors contribute to it: USP should relate to a specific product benefit it should be unique-no one else has yet claimed it it must sell

The use of common man in advertising An average consumer was more likely to believe the man in the street Key words that describe copies are warm and believable

David Ogilvy-Eleven Principles Content of the message rather than its execution is important Search for a great idea or else the campaign may fail Talk straight to the customer. Don t treat him/her as a moron Do not create boring or dull copies Avoid clowning Create contemporary advertising If you have created a great campaign and it pulls target audience to the brand, keep it so long as it does so Be honest in advertising. Avoid fluff and telling lies in the copy Brand and its image is most important-create a brand personality distinctive from others Do not be an imitator Creativity is always individual specific-committees do not create campaigns 16.18

Copy Testing: The purpose of testing is to know how the potential buyer or target audience will react Testing a copy before and after the campaign helps in ensuring advertising effectiveness Testing which is done before the launch of the campaign is called pre-testing and the one done after the campaign is called post-testing Parameters on which advertising copy has to be evaluated are desirability, exclusiveness, and believability 16.19

Recognition testsInvolve the buyer being able to recognize an advertisement as belonging to a brand or a firm, as one that he/she has seen earlier Recognition is the first prerequisite to a successful advertising campaign Recall-refers to the proportion of the target audience that can recall an advertisement and its contents Persuasion-tests refer to the proportion of target audience who show a distinctive attitudinal shift towards the brand after seeing its advertisement

Purchase Behavior The final test of the copy is whether it really moves the customer to buy the brand in a real world market situation. Other methods of testing print copies area) Direct Rating Method -consumers to rate alternate advertisements on attractiveness b) Portfolio tests-recall the advertisement, aided or unaided recall c) Laboratory Tests-measure consumers psychological reactions to an advertisement

Media Selection Decisions have to be taken in respect to the following media factors: a) Media class-medium which is most appropriate to the product and copy. b) Media vehicles-they provide the immediate environment for advertisement Media options- this refers to the size, length, color or location of the advertisement in the media vehicle

Scheduling and timing: Flighting : that is period of total inactivity Continuous advertising: that is even distribution of advertising during a time period Pulsing: That is, continuous base augmented by intermittent bursts of heavy advertising

Major Media Types Newspapers Television Direct Mail Radio Magazines Outdoor Transit

Three key terms and the interrelationship among them Reach-number of persons or households exposed to a media schedule at least once during a specific time period Frequency- implies the number of times within a specific time frame, an average person or household is exposed to the message Impact-is the qualitative value of an exposure through a given medium 16.25

Evaluating Advertising Effectiveness Campaign effectiveness should be measured on following parameters 1) Brand awareness 2) Knowledge about the brand 3) Preference for the brand 4) Sales effect