• 1.

advertising communicates
information about products or ideas
• 2.identified sponsor -mass media
• 3.persuade or influence
• Four distinct players in the
advertising process;
Advertisers
Advertising agencies
Media- medium
suppliers
 Types of advertising
• By target audience
• By geographic area
• By media used
• By purpose-product or non product
Commercial or non commercial
Primary demand or selective demand
Direct action or indirect action
• By target audience
• Consumer
• Business
1.Industrial
2.Trade
3.Professional
4.Agricultural
By geographic area
International
National
Regional
local
• By media used
• Print
Newspaper
Magazine
• Electronic
Radio
Television
• Out of home
Outdoor
Transit
• Direct mail
• Directories
• Other media
Functions of advertising
To differentiate products from their
competitors
To communicate product information
To urge product use
To expand product distribution
To increase brand preference and loyalty
To reduce overall sales cost
 Advertising and marketing
• Meeting customer needs
• Coordinating marketing efforts across the
organisation
• Working for long term benefits
The marketing mix
PRODUCT
Features,research and development
Packaging,brand
• PRICE
Amount charged,price image,price reductions
PROMOTION
Personal selling,sales promotion,public relations
DISTRIBUTION
Marketing channels,markets covered,transportation
ADVERTISING AND COMMUNICATION
MESSAGE-MEDIUM-NOISE-DECODING-BEHAVIOUR-
FEEDBACK-ENCODING
• COMMUNICATION PHASES IN
ADVERTISING
• HIERARCHY OF EFFECTS MODELS
AWARENESS
COMPREHENSION
ACCEPTANCE
PREFERENCE
OWNERSHIP
REINFORCEMENT
IMC-INTEGRATED MARKETING
COMMUNICATIONS
• HISTORY OF ADVERTISING
• The early days
• The industrial revolution
• The age of technology
Print media
Newspapers
Magazines
Electronic media
Radio
television
• Todays challenges and oppurtunities
• Better local and global targeting
• Enhanced creativity through technology
• New media horizons
• Results driven advertising
THE ADVERTISING PLANNING PROCESS
STEP 1analyse the current situation
STEP2define the audience
STEP3develop marketing goals and a
marketing plan
• STEP4develop advertising goals and
an advertising plan
• STEP5set the advertising budget
• STEP6 DEVELOP AND EXECUTE THE
CREATIVE STRATEGY
• STEP7develop and execute the media
strategy
• STEP8evaluate advertising
effectiveness
Ad campaign
• Surrogate advertising is advertising which
embeds a brand or product message
inside an advertisement which is
ostensibly for another brand or product.
For example, a cigarette company might
issue public service announcements
relating to a topic such as lung cancer,
using the company's logo or distinctive
brand colors in the ads so that people are
exposed to the company's branding
without seeing an explicit ad for the
company's product. The company would
justify the advertisement by claiming that
it's an example of social responsibility.
 Subliminal Advertising
• The subject responds without
awareness to stimulus.
• Subject knows he is being
stimulated, but doesn't know what it
is.
• The advertiser;The visible partner
• Choosing an independent or an in –
house agency
• Using an independent agency
• Using an in-house agency
• Organising the advertising
department
Centralised and decentralised
advertising dept
Ceo
Vp finance,vp marketing,vp production
Marketing manager, sales manager
Advertising manager
Ceo
Division manager, Division manager
Category manager
Brand manager
• What the advertising manager does
• Planning and budgeting advertising
• Creating and producing ads
• Handling administration
• Coordinating advertising efforts
• Advertising managers accountability
• What advertising agencies do
• Vodafone Shoot caller ad with Zoozoos
this ad never aired during the IPL matches. Becoz it
was banned by govt stating too violent.
Now kill those who call you for Special offers,Credit
Cards and bigmouth aunties
• The Indian advertising today handles both national
and international projects. Client servicing, media
planning, media buying, creative conceptualization,
pre and post campaign analysis, market research,
marketing, branding, and public relation services.
• According to a 2009 report jointly published by
the Federation of Indian Chambers of Commerce
and Industry (FICCI) and KPMG, the media and
entertainment industry in India is likely to grow
at ~13 % CAGR over 2009-13, touching US$ 20
billion by 2013.
• economic factors buoying India’s development;
with a majority of the population below the age
of 35, and increasing disposable income in Indian
households, the average spend on media and
entertainment is likely to grow, according to the
2009 edition of PWC report.
• What advertising agencies do
Advertising agencies exist for one basic purpose:
to interpret for the advertisers target audience
information about the goods or services being
marketed.
1.Strength and weakness of the
product,competitors and analyze the product’s
current and potential market.
2.Examines distribution and sales and
investigates –advertisers message,media
• Advertising plan,buying space and time
and administration
• Coordinated with sales and other marketing
activities.
• Organisation by function -Ceo
Account mgt-client services
Creative services-copy,art,production,traffic
Marketing services-research,creative
services,acct planning,media
Agency mgt-hr,finance and accounting
Org by clients
• What various agencies offer
1.Full service agencies
2.Limited service agencies-creative
boutique,media buying services
3.Specialised agencies-specialised markets-
b2b,medical and ethnic agencies-all functions
but in specialised field.
How agencies are paid
History
Media
commissions,markups,fees(retainer),incentiv
e based compensation performance based.
• Advertising environment
• Economy,government,interest groups and
society at large.eg.if billboard advertising is
banned you switch to another medium.
• Advertising and economy-information
• Pricing of products
• Consumer demand advertising stimulus
demand is a complex question without an
easy answer.demand is affected by changes
in population,income and lifestyle.
• Competition- comparitive advertising
• Advertising and society
Advt is so persuasive to that it has the
ability to shape social trends and
mold personal attitudes.
Pricing is low. Advantage
Contrasting views of advertising -issues
Language and literacy,advertising as
manipulation and
exploitation,streotyping,the
advertising on the media, bad taste
and offensiveness in advertising.
• Advertising and social responsibility
• Advertising and ethics
Ethical dilemmas and ethical lapses
• Ethical issues in advertising
1.Advertising unhealthy products
2.Advertising to children
3.Using puffery
Advertising and regulation
Advertising council of india-asci
Self regulation by few companies
• DAGMAR - Defining Advertising Goals for Mea

• Russell Colley (1961) developed a model for

setting advertising objectives and measuring
the results. This model was entitled ‘Defining
Advertising Goals for Measured
Advertising Results- DAGMAR
• A major contribution of DAGMAR was Colley’s
specification of what constitutes a good
objective. Four requirements or characteristics
of good objectives were noted
• Concrete and measurable
• benchmark and degree of change
sought
• Target audience
• Specified time period
• Written Goal
 DAGMAR
• Awareness-Comprehension-
Conviction-Action
• Measurable
• Target Audience
• Benchmark
• Degree of Change
• Time period
 DAGMAR Criticisms
• Hierarchy issues
• Sales included
• Cost
• Creativity problems?
Why not sales objectives for
promotions/communication?
• Entire strategy
• Carryover effect
• Minimal direction to promotions
mgmt
• When do you use sales objectives for
promotions?
 Budgets
• Affordable
• Percentage of Sales
• Competitive parity
• Return on investment
• Share of voice
• Objective and task
 A. Concave-Downward B. S-Shaped Response
Response Curve Function

Incremental Sales
Incremental Sales

Initial Spending

High Spending
Middle Level
Little Effect

Little Effect
High Effect
Range A Range B Range C

Advertising Expenditures Advertising Expenditures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Marginal Analysis

Sales Gross Margin

Sales in $

Ad. Expenditure

Profit

Point A

Advertising / Promotion in $

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Budget Allocation
• CRM
• Advertising
• Sales promotion
• Public relations
• Direct marketing
• Retail trade
• Internet (e-mail and banner, web site
development)
• Other (events, sponsorships)