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Reinforce
Objectives of Advertising
Advertising Goals
A. To Build Brand Images with Awareness
Consumers recognize the brand
Business to business
Successful brands possess
a. top of mind b. top choice
Brand equity leads to top of mind and top choice
Advertising Goals
A. To Inform
B. To Persuade
C. To Support other Marketing Efforts
Consumer promotions
retailers, special sales
promotional campaign
Advertising Goals
D. To Encourage Action
Behavioural Goals
Encourage some type of action
a. inquiry b. access website c. visit retail outlet d. send
e mail or telephone
Business to business
Role of Advertising
Marketing Role
Marketing is a business process that aims to satisfy the
consumer needs and wants through goods and
services. And in order to do so, advertising lets the
message out to take that big role in marketing to
promote the goods and services.
Role of Advertising
Communication Role
No product and/or service can move without the
proper dissemination of information. This is one role
of advertising that transmits the needed information
about the goods or services to the target market.
Role of Advertising
Economic Role
Advertising plays a big part in the price elasticity of
products and services.
Social Role
Advertising plays an important role in shaping the society.
It helps in bringing changes at social level. The
moral/social appeal in advertising helps in creating
awareness about social issues. It also motivates the society.
Growth of Advertising
2000 BC Egyptians invented outdoor advertising,
carving public notices in steel
In 750 BC the first sonic logo was created in ancient
Greece.
In 1742 the first Print Ad was created in England. The
handbill announced prayer book on sale.
In 1661, the first product branding was developed for
dentifrice tooth gel.
In 1776, at the dawn of the American Revolution,
political ads appeared encouraging enlistment
Growth of Advertising
In 1876 the birth of the automobile fueled the rise of
billboard ads
In 1873 the first product placement occurs when
transport and shipping companies were mentioned in
Jules Verne’s novel around the world in 80 days
In 1882 the first electric sign is lit in New York’s Times
Square
In 1892 direct marketing is born when Sears sends out
8000 hand written postcards and received 2000 orders
Growth of Advertising
In 1905, the first celebrity endorsement occurs when
silent movie miscreant Fatty Arbuckle offers
conclusive proof that Murad cigarettes are preferred
choice of cultivated men
In 1911 the first “sex sells” slogan was used by
Woodbury soap company
In 1917 the American Association of Advertising
Agencies was founded
In 1920, Frank Conrad founds KDKA, the world’s first
commercial radio station
Growth of Advertising
In 1925 consumerism of non essential films was
encouraged via rampant advertising
In 1938 the Wheeler Lea Act is established to curb false
advertising proclaiming that “unfair or deceptive acts
or practices in commerce are hereby declared
unlawful”
1939 Advertising is chock full of World War II
Propaganda
In 1941, the first official television commercial was run
for Bulova watch. The company paid $9 for a 20 sec
spot aired before a baseball game
Growth of Advertising
In 1950, the first political Ad was aired for Gov. Dewey
of New York
In 1950s, contests and giveaways became popular
forms of advertising, Dial Soap gave away free oil
1955 psychologists started working in Advertising to
formulate techniques of wooing people in America
In 1957, the birth of the longest running TV ad jingle
occurred with Mr. Clean, which still runs today
Growth of Advertising
In 1963, David Ogilvy ushers in the modern
advertising age
Evolution of Advertising
Pre Printing era
Sign boards and town criers
Use of symbols (goat signified a dairy, a mule working
s mill signified a bakery)
A cobbler would hang a shoe outside his shop to
signify the show shop
Greeks used criers to announce the sale of slaves
First signs of advertising came in the form of hand
cards and posters
Evolution of Advertising
Now know as leaflets, handmade cards carrying
information about goods & services sold by various
merchants were distributed on the streets
Then cam posters, which according to Longman (1971)
were so popular that at any time during the 19th
century, so many posters were posted on the walls of
London that it looked like a city made of paper. An
interesting tradition began in the UK that no one
would remove or paste posters over existing ones till
the glue was fresh.
Evolution of Advertising
The Industrial Revolution
The I R gave an impetus to Marketing.
The use of machinery required production on am mass
scale to break even and then make profits
Also with similar products available, companies
needed persuasive communication to create demand
for a particular brand.
The need for distinct branding made advertising more
widespread
Evolution of Advertising
George Rowell brought the first American Newspaper
directory in 1869
Francis W. Ayer was the first to sign an open contract
in 1875
Advertising historians consider John Powers the first
copywriting superstar in the 1880s
Adolphus Green is said to have brought in the concept
of Branding around 1890s
Albert Hasker is remembered for shaping the modern
advertising agency in the beginning of the 20th
century
Evolution of Advertising
An Ad for facial soap that appeared in 1909 is
considered a major turning point in the business
because it introduced Sex Sell Appeal
“A skin you love to touch” had the graphic image of a
man kissing the cheek of a woman he held close.
David Ogilvy considered copywriter Helen Lansdowne
Resor, who wrote the copy for the Ad, the greatest of
her ilk.
Evolution of Advertising
Advertising between the World War and the Great
Depression
World War I witnessed a war of posters. (‘I want you
for the Army’, ‘Have you volunteered for the Red
Army?’, ‘Britons Join the Army!’, ‘Destroy the mad
brute: Enlist in US Army’
One saw a reflection of war sentiments in commercial
advertising as well.
In 1910, the Association of National Advertising
Managers was founded. Now it is known as
Association of National Advertisers ANA
Evolution of Advertising
Around the 1920s, social sciences were increasingly
used to understand the role of families, social
conditioning, the consumer mind etc
Impressionism was introduced in Advertising by
Theodore McManus in the early part of the last
century
Raymond Rubicam introduced the concept of
Advertising Research in creative experimentation
Evolution of Advertising
In 1930s witnessed the crash of the stock market, led
manufacturers to change their strategy from mass
production to producing goods the consumer needed.
This required knowledge about the consumer mind. In
the 1930s and 40s, AC Nielson, George Gallup and
Daniel Starch started their research organizations,
which exist even today
In 1932, John Caples, a Vice President at Batten,
Barton, Dustine and Osborn (BBDO), published tested
advertising methods
Evolution of Advertising
His theories about pulling power of headlines, were
based on extensive tests. He also change the style of Ad
copy from long to short words, short sentences and
short paragraphs
Radio went commercial in 1926 & TV in 1947. Radio
according to analysts created extraordinary demand
for products, unknown in the history of US
Advertising witnessed another trend, it progressed
from illustrations to photography is a reflection of
realism
Evolution of Advertising
Ivory soap ads were able to catch the attention of the
consumers like nothing else. It’s Ads:” if you want a
baby’s clear skin, use a baby’s beauty treatment”. “
There is something I read in your face” (A toddler
shown pinching the face of his mother, reflected in a
photograph) Another Ad had the toddler in a bath tub
with the caption “I am sharing my soap with mother
now)
Evolution of Advertising
Oxydol detergent as a brand started the concept of
“Soap Opera”. In 1933, the agency created the 1st soap
opera, “Ma Perkins” that was sponsored by P&G
Launched in 1914 by William Walker, which was later
bought by P&G in 1927, Oxydol was No. 2 detergent in
terms of Market Share after Rinso from Lever Brothers.
The product was given a turnaround by replacing
flakes to granules. Its packaging was also improved. It
is also believed that the reference to the term soap
opera to serials also came from here.
Evolution of Advertising
In 1939 soap opera was coined as many sponsors were
soap companies (opera is non musical dramatic
compositions)
Agencies developed and their numbers increased after
the world war II. Consumers, according to analysts
were clamoring for goods and services as new products
were emerging.
The 1950s saw interesting conceptual developments in
advertising.
Evolution of Advertising
Rosser Reeves invented the concept of Unique Selling
Proposition
David Ogilvy invented the concept of Brand Image
The 1950s & 60s were also the era of agency mergers
and integrated services. William Bernback brought
about a creative revolution in the 19sixtys
The era of the non rational approach, the surreal, out
of the box thinking was introduced in advertising
giving it a mystic & larger than life image
Evolution of Advertising
Leo Burnett, David Ogilvy and William Bernback were
the three creative geniuses of the 19sixtys & 70s.
Subhash Ghosel “Many many items what can’t be
planned and what is not premeditated, touches the
people and moves the product.
“Role of Human Psychology” This suggests that
consumer insights is very important before planning a
campaign
Evolution of Advertising
The period from 1970 to 1990 was considered the era of
accountability. The Vietnam war and the economic
downturn of the 1970s according to the analysts, led to
the return of ‘hard sell’ advertising. The advertiser
demanded an explanation to every dollar spent.
Many companies shifted their budgets from
advertising to sales promotion to meet sales target and
gain a foothold in a competitive market, even if it was a
shorter period. This period also saw the reduction of
staff and pruning of expenditure on the part of the
advertising agencies
HISTORY OF INDIAN ADVERTISING
The Personal Selling Era (the sunye, meherban period)
it was a barter period in which people sold goods
against goods, followed by hawkers calling loudly to
attract customers. The sale of slaves, animals, grains
and ironware for household use was through the
process of personal selling
The Product Era ( or the how to build a better
mousetrap phase) : the emphasis in this period was on
how to manufacture products that attracted
consumers.
HISTORY OF INDIAN ADVERTISING
The Sales Era ( the meri kameez uski kameez se safed ): in
this era there was a transition from information to
persuasion. The whole process was geared towards hard
selling ( The Aggressive Selling Approach)
The Consumer Era: during this phase human behaviour
began to be studied various theories of human psyche and
behaviour, especially those propounded by Abraham
Maslow and Sigmund Freud were studied to understand
the complexities of the human mind and to apply them to
gather consumer insights. This ushered the phase of
modern advertising in India.
HISTORY OF INDIAN ADVERTISING
The decade of the 1950s was the era of functional
advertising which was product centric and hammered
home the message through a simple and
straightforward Approach.
The early 1960s were a trying time for Indian
Advertising. Newsprint used to be imported and the
print media received it through a quota system.
Increasing circulation created a crunch. Necessity is
the mother of invention. Advertisers started looking
for alternate media. Outdoor advertising were one of
the beneficiaries.
HISTORY OF INDIAN ADVERTISING
The Positioning Era: instead of a wider and more
scattered effort, advertisers opted for a small,
consistent share of the mind of consumers in the
belief that ‘half a mind is better than none’. This
period witnessed some major trends, including the
demise of the concept of USP. Appeals started playing
a major role.
The Value Marketing Era: globalization while keeping
the local flavor and fervor intact.
HISTORY OF INDIAN ADVERTISING
The Introspective Era: Active judicial system, PILs, the
emergence of special interest groups and emergence of
a new class of consumers, the advertising world is
taking a cautious path.
History of Advertising in India:
Timeline
1905 B. Dattaram Oldest Ad Agency, Mumbai
1912 ITC, The erstwhile Imperial Tobacco Co. Ltd. Launches
Goldflake
1920s Enter the 1st foreign owned agencies
Gujarat Advertising & Indian Advertising set up
Expatriate agencies emerge: Alliance Advertising, Tata publicity
LA Stronach’s merges into today’s Norviscon Advertising
D.J. Keymer gives rise to Ogilvy & Mather & Clarion
1925 LR Swami & Co, Madras was set up
1926 LA Stronach & Co. (India)Pr. Ltd.,Bombay starts agency called
National. It was set up for Americans rather than British
Advertisers
American Importers hire Jagan Nath Jaini, then Advertising
Manager of Civil & Military Gazette, Lahore.
History of Advertising in India:
Timeline
Beginning of Multinational Agencies
J. Walter Thompson (JWT) opened to service General Motors
business
1928 BOMAS Ltd. (formerly DJ Keymer & Co Ltd.) set up.
1929 J Walter Thompson Co. Pr. Ltd was formed
1931 National Advertising Services Pr. Ltd Bombay was set up
Universal Publicity Co. Calcutta formed
1935 Indian Publicity Bureau Pr. Ltd, Calcutta established
1997 Media boom with the growth of cable and satellite; print medium
sees an increase in titles, especially in specialised areas
Government turns towards professional advertising in the private
sector for its VDIS campaigns
Army resorts to the services of private sector agencies
Advertising on the Internet gains popularity
Equitor Consulting becomes the only independent brand
consultancy company in the country
For the first time ever, Indians stand the chance of winning the $ 1-
miliion booty being offered by Gillette as part of its Football World
Cup promo 1998
History of Advertising in India:
Timeline
Events assume important role in marketing mix
Rise of software TV producers banking on ad industry talent
Reinventing of cinema -advertising through cinema begins
Lintas becomes Ammirati Puri Lintas (APL)
1999 B2B site agencyfaqs.com launched on September 28, 1999
The Advertising Club Bombay announces the AdWorks Trophy
2000 Mudra launches magindia.com – India’s first advertising and
marketing gallery
Lintas merges with Lowe Group to become Lowe Lintas and
Partners (LLP)
bigideasunlimited.com – a portal offering free and fee ideas for
money launched by Alyque Padamsee and Sam Mathews
Game shows like Kaun Banega Crorepati become a rage; media
buying industry is bullish on KBC
History of Advertising in India:
Timeline
Kyunki Saas Bhi Kabhi Bahu Thi marks the return of family-oriented
soap on TV
French advertising major Publicis acquires Maadhyam
2001 Trikaya Grey becomes Grey Worldwide Bharti’s Rs 2.75-crore
corporate TV commercial, where a baby girl is born in a
football stadium, becomes the most expensive campaign of the year
2002 Lowe Lintas & Partners rechristened Lowe Worldwide
For the first time in the history of HTA, a new post of president is
created. Kamal Oberoi is appointed as the first president of HTA
Hierarchy of Effects Model
The Hierarchy of Effects model was created in
1961 by Robert J Lavidge and Gary A Steiner.
This marketing communication model,
suggests there are 6 steps from viewing a
product advertisement to product purchase.
The job of the advertiser is to encourage the
customer to go through the 6 steps and
purchase the product.
• Awareness
Cognitive • Knowledge
• Liking
Affective • Preference
• Conviction
Conative • Purchase
Awareness plus Knowledge
The cognitive stage is about information processing. The
extent of processing will depend upon the ability and
motivation of the consumer. Therefore, the
advertisement must clearly convey the important
information the advertiser wants the customers to know,
like the key product attributes and benefits.
The message should be designed and written effectively
keeping in mind the target audience.
The ad must motivate engagement
Liking and Preference
This stage is about attitude formation- the way the
customers think about the brand. To influence them,
the content must generate a feeling that the brand
wants to be associated with the customer. The content
should not be focussed on the content but on
emotions, lifestyle, values and other factors.
Conviction plus Purchase
Conative stage is defined as the aspect of mental
processes or behaviour directed towards action or
change and including impulse, desire, violation and
striving.
The conative is how a person acts in response to
intellect and emotion.
This is the decisive behaviour that drives the action of
making a purchase or that of a customer adding the
advertiser’s offering to their list of consideration or
simply the rise of purchase intent.
Conative is the final stage for which the brand must
instil confidence in the product it is offering, improve
user experience of the product for retention and
convince customers of their need for a service
The Foot-Cone-Belding Grid
(Vaughan 1980)
Hierarchy of Needs
Physiological Needs
Physiological Needs
Physiological Needs
Safety Needs
Safety Needs
Love and Belongingness Needs
Love and Belongingness Needs
Esteem Needs
Esteem Needs
Esteem Needs
Self Actualization
DAGMAR
Defining Advertising Goals for Measured Advertising
Results
In 1961 Russel H. Colley pioneered an approach known by
the acronym DAGMAR. Through DAGMAR 52
advertising goals have been identified with respect to a
single ad copy or a campaign or a company’s advertising
philosophy.
1. Awareness
2. Comprehension
3. Conviction
4. Action
These goals pertain to sales, image, attitude and
awareness. Some of these goals are:
Closing and Immediate sale
Move the prospect step by step closer to a sale
Build a brand image
Contribute to increased sales
Aim at some specific step leading to sale
To inform the consumers to consummate sales and
build customer satisfaction
To help the sales force and to help the trade channels
To project a corporate image.
DAGMAR pre supposes the understanding of the
consumer behaviour and an acquaintance with
marketing and environment. The basic inputs of
DAGMAR are however, not easy to crystallize. Market
segmentation, brand personality and perceptions do
affect the process of formulation of the advertising
objectives.
Chris Jacques of Battern, Barton, Durstine & Osborn
(BBDO) says that advertising should be goal driven and
not process driven.
DAGMAR
AIDA
The effectiveness of advertising depends upon the extent
to which the advertising message is received and accepted
by the target audience.
Effective advertising through the following stages:
1. Attracting attention
2. Arousing interest
3. Creating desire for the product
4. Leading to action on the part of the audience
The model describes the sequence of events which must
take place between the receipt of the message and
desired action. In AIDA model, A stands for attracting
attention, I for arousing interest, D for creating a desire
and A for obtaining action.
Attention: Advertisements attract attention to them
mainly on account of their layout. The typography and
colours used in the cop[y to attract us. The size too does
matter. A large sized ad commands attention. White
space is used strategically to get attention. Movement in
the copy is also vital to rivet attention. The place where
ad is placed in the media has a role to play. The other
elements which contribute to attention value are
celebrity endorsements, models employed, illustrations
and photographs used.
Interest: Ad seen does not necessarily mean ad read. People
may look at the ad, bit may not read it. Illustrations have to
work harder. Along with the body copy, they must stimulate
reading. Copy format too plays a role – some take fancy to a
scientific copy, whereas some others like the humorous copy.
It is very challenging for a copywriter to find a common
denominator of interest for the maximum number of people.
Desire: An ad must create desire for the product/service
being advertised. Several rational and emotional appeals are
used to motivate people. Vivid descriptions and graphical
copy helps. People buy to satisfy their physiological and
psychological needs. The copy must provoke these motives.
Reservations of the buyers must be addressed. The copy must
be substantiated by presenting cogent arguments, evidence,
testimonials, endorsements, facts and figures. Once a desire
is aroused, people become prone to buy a product.
Action: this is the logical culmination of the effect of
communication-buying the product. People buy on the
basis of corporate image, frequency of the message and
the appeals used.