ADVERTISING

ADVERTISING

Kotler and Armstrong: "Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor".

FIVE MAIN STAGES IN A WELLMANAGED ADVERTISING CAMPAIGN

Stage 1: Set Advertising Objectives An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. Advertising objectives fall into three main categories: (a) To inform - e.g. tell customers about a new product (b) To persuade - e.g. encourage customers to switch to a different brand (c) To remind - e.g. remind buyers where to find a product

Stage 2: Set the Advertising Budget Marketers should remember that the role of advertising is to create demand for a product. The amount spent on advertising should be relevant to the potential sales impact of the campaign. This, in turn will reflect the characteristics of the product being advertised. For example, new products tend to need a larger advertising budget to help build awareness and to encourage consumers to trial the product. A product that is highly differentiated may also need more advertising to help set it apart from the competition emphasising the points of difference. Setting the advertising budget is not easy - how can a business predict the right amount to spend. Which parts of the advertising campaign will work best and which will have relatively little effect? Often businesses use "rules-of-thumb" (e.g. advertising/sales ratio) as a guide to set the budget.

Stage 3: Determine the key Advertising Messages Spending a lot on advertising does not guarantee success (witness the infamous John Cleese campaign for Sainsbury). Research suggests that the clarity of the advertising message is often more important than the amount spent. The advertising message must be carefully targeted to impact the target customer audience. A successful advertising message should have the following characteristics: (a) Meaningful - customers should find the message relevant (b) Distinctive - capture the customer's attention (c) Believable - a difficult task, since research suggests most consumers doubt the truth of advertising in general

Stage 4: Decide which Advertising Media to Use There are a variety of advertising media from which to chose. A campaign may use one or more of the media alternatives. The key factors in choosing the right media include: (a) Reach - what proportion of the target customers will be exposed to the advertising? (b) Frequency - how many times will the target customer be exposed to the advertising message? (c) Media Impact - where, if the target customer sees the message - will it have most impact? For example does an advert promoting holidays for elderly people have more impact on Television (if so, when and which channels) or in a national newspaper or perhaps a magazine focused on this segment of the population?

Stage 5: Evaluate the results of the Advertising Campaign The evaluation of an advertising campaign should focus on two key areas: (1) The Communication Effects - is the intended message being communicated effectively and to the intended audience? (2) The Sales Effects - has the campaign generated the intended sales growth. This second area is much more difficult to measure.

NATURE OF ADVERTISING

paid form non-personal presentation and promotion ideas, goods and services through mass media an identified sponsor controlled persuasion neither neutral nor unbiased

SCOPE OF ADVERTISING

scope for packaging any product through a very attractive manner showcase specialties through advertising involves a lot of capital and expertise stiff competition in the industry study of advertising agencies study of controlling bodies social and economic aspect advertising as a communication process involves study of media involves study of ad message

OBJECTIVES OF ADVERTISING

trial continuity brand switching switchback inform persuade remind create awareness develop interest educate reinforce

TYPES OF ADVERTISING

Print Advertising Newspapers, Magazines, Brochures, Fliers Outdoor Advertising Billboards, Kiosks, Tradeshows and Events Broadcast advertising Television, Radio and the Internet Covert Advertising Advertising in Movies Surrogate Advertising Advertising Indirectly Public Service Advertising Advertising for Social Causes Celebrity Advertising

Television advertising Radio advertising Online advertising Billboard advertising Mobile billboard advertising In-store advertising

TYPES

FOR WHOM: Consumer advertising Industrial advertising GEOGRAPHICAL COVERAGE: National Regional Local national

MEDIA USED: Print Electronic Direct mail Outdoors AIMS: FINANCIAL ADS PRIMARY Vs secondary demand Product or service Social messages Direct Vs indirect action

SOCIAL ASPECT OF ADVERTISING

Impact on society, values, lifestyles etc May lead to materialism- undue importance to material interests Bearing on consumer choice Too much persuasive Influences consumer welfare and protection Impact on living standard of society Affects cultural values of society Reflection of cultural values in advertising Ethics and truth in advertising Ad as an information providing source

ECONOMIC ASPECT OF ADVERTISING

Advertising causes an effect on value of products & services-it ads to its value Add to price of the product/service Effect on consumer demand & consumer choice Effect on competition- creates barrier to entry for small companies Effect of advertising on production cost, distribution cost Helpful in market expansion

ADVERTISING AND PLC

Product Life Cycle Curve

Introduction: The product is promoted to create awareness. Growth: Advertising spend is high and focuses upon building brand. Maturity: Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. Promotion becomes more widespread and use a greater variety of media. Decline: More innovative products are introduced Profits are improved by reducing marketing spend and cost cutting.

ADVERTISING AS A COMMUNICATION PROCESS

Feedback

Advertiser (source)
Encoding

Media with message

Decoding

Chosen target audience

Noise

Noise

Noise

INTEGRATED MARKETING COMMUNICATION (IMC)

Integrated Marketing Communication is more than the coordination of a company's outgoing message between different media and the consistency of the message throughout. It is an aggressive marketing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy. Steps in an Integrated Marketing system are: Customer Database: An essential element to implementing Integrated Marketing that helps to segment and analyze customer buying habits. Strategies: Insight from analysis of customer data is used to shape marketing, sales, and communications strategies.

Tactics: Once the basic strategy is determined the appropriate marketing tactics can be specified which best targets the specific markets. Evaluate Results: Customer responses and new information about buying habits are collected and analyzed to determine the effectiveness of the strategy and tactics. Complete the loop; start again from 1st step. IN SHORT IMC IS AN ATTEMPT TO COORDINATE VARIOUS MARKETING AND PROMOTIONAL ACTIVITIES TO MAKE MARKETING COMMUNICATION TO TARGET CUSTOMERS MORE EFFECTIVELY AND MORE EFFICIENTLY.

4 P's vs. 4 C's

Not PRODUCT, but CONSUMER Not PRICE, but COST Not PLACE, but CONVENIENCE Not PROMOTION, but COMMUNICATION

MARKETING COMMUNICATIONS MIX

Advertising
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Personal Selling

Personal Presentations by a Firms Sales Force.

Sales Promotion

Short-term Incentives to Encourage Sales. Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Communications With Individuals to Obtain an Immediate Response.

Public Relations Direct Marketing

ADVERTISING

ADVERTISING OBJECTIVES

MESSAGE AND MEDIA STRATEGIES

AIDA

AIDA is an acronym used in marketing that describes a common list of events that are very often undergone when a person is selling a product or service: A - Attention (Awareness): attract the attention of the customer. I - Interest: raise customer interest by focusing on and demonstrating advantages and benefits (instead of focusing on features, as in traditional advertising). D - Desire: convince customers that they want and desire the product or service and that it will satisfy their needs. A - Action: lead customers towards taking action and/or purchasing.

Nowadays some have added another letter to form AIDA(S): S - Satisfaction - satisfy the customer so they become a repeat customer and give referrals to a product.

AIDA MODEL

AIDA MODEL ( AIDA TRIANGLE)