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MBA SESSION # 2
What is Advertising?
Advertising is a paid, non personal communication about an organization and its products that is transmitted to a target audience through a mass medium such as television, radio, newspapers, magazines, direct mail, out door displays or mass transit vehicles.
ROLE OF ADVERTISING
Advertisement leads to sale. Advertising is a form of communication. Like all forms of communication, it has many different effects and these effects are often related to one another. The message in an advertisement, no matter how strong and persuasive, will have no effect if the consumer does not see the advertisement or pay attention to it . There has to be an
Effective Communication.
Getting Attention
This involves two important actions. First, it is important for the advertiser to know where a communication should be placed to increase the odds of reaching a particular type of consumer; this is the media decision e.g what television shows they watch, what route they
take to work, and what magazines they read.
Processing Information
If the consumer does not comprehend the message, it will not have the desired effect. Thus, it is important when creating the advertisement to understand how consumers think about products and product benefits and to use language that the consumer will understand. It is also important that the product and the product message be the focal point of the advertisement. But one message at a time eg ( jeet gaya englishhaar gayee mehngayee)
Information Evaluation
After a consumer has processed information, there is a need to evaluate it. The consumers will need to determine how believable the information is and how relevant it is to their individual situation in life and to their behavior as consumers. Advertisers use a variety of devices to increase the believability of their advertising:
celebrities or experts who are the spokespersons for the product e.g ( Alizafar Telenor, Adnan siddiqui- Rin) user testimonials, product demonstrations e.g ( Harpic) research results ( Dental Ads, etc )
Attitude Formation
The goal of advertising is to have a positive impact on attitudes; these attitudes, in turn, influence future behavior. When the consumer next goes to the store to buy a particular type of product, these attitudes influence the choice of the product. A bad experience with a product will create a negative attitude that no advertising is likely to overcome e.g ( Construction Ads Rs. 1500 per month without mentioning the
A consumer might want to buy an advertisers product, but may not find it in the store, or another less-desirable product is so much less-expensive that the consumer chooses it instead e.g ( Omore icecream not
available in Khi. Chinese market takeover)
CLASSIFICATION OF ADVERTISING
Product Advertising
Major chunk of advertising budget is spent on product advertisement. It also includes the advertisement for new products or product extension e.g Zem Zem SMS craze, Zem LBS,
It is comparatively local and focuses on store where different products are offered. Retail Advertising emphasize on price, product availability, hours of operation.
Retail Advertising
Corporate Advertising
The focus is to establish a corporate identity. It refers to corporate campaigns endorsed by thematic campaigns.
This relates to advertising that is related to industrial users e.g (ICI Chemicals, Corporate Lawyers / Audit Firms )
Political Advertisement
Directory Advertising
This focuses on information to the end-user such as product and services availability. Best example is Yellow Pages.
This relates to Two way communication where by customer can immediately react. It can be transferred through any medium eg ( Banks Helpline, KESC Customer Service)
This includes Public service campaigns for public welfare eg (Ye Hum Nahin..)
ADVERTISING FUNCTIONS
Advertising moves consumers from being unaware of a product or service to finally purchasing it. An ad is considered effective if it propels the consumer a step further in this process. This is how the function of advertising is viewed.
STIMULATES DEMAND
By informing consumers about the availability of a product in the market, advertising stimulates latent needs, and reinforces the aroused needs.
Advertising does the pre selling of the product and makes the job of the sales people easier. Advertising reaches a relatively large audience and makes them favourably predisposed. Ads carry the sales, promotional messages and often produce quick sales response.
CUTS COSTS
Advertising may be instrumental in cutting down production and selling costs. Increasing unit sales decrease unit costs. Selling costs also may decrease because there could be fewer wasted calls and less strain on sales people.
LOWERS PRICES In any market based and competitive economy, when unit cost of a product goes down, there are external and internal pressures which compel companies to lower prices to the advantage of consumers. This often leads to deeper market penetration.
COMPETITIVE WEAPON Advertising by itself and coupled with other promotion mix elements, may prove to be an extremely potent weapon to counter competitive moves. Advertising has an established role in creating brand personality and image. It helps differentiate a companys offer in a manner that the product may be considered as something with unique value having a definite identity of its own
MODES OF ADVERTISING
Promotional activities carried out through mass media, such as television, radio and newspaper, are classed as above the line advertisement
Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front eg (mobile ring tones, hunt for heros Mlink)
ASTA LAVISTA