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Advertising defined Nature, Scope, and Types & Limitations of Advertising. ole of advertising in Mar!eting Mi". Advertising as industry, advertising agencies #lient Agency relations$ips Advertising: Advertising is defined as any paid form of non personal presentation of idea goods and services by identified sponsor. %aid &orm: .An advertising message is paid for by the advertiser and this distinguishes it from publicity which is not paid, for. When an advertiser makes payment, he exercises control over its contents, form schedule, and media selection. Any &orm: Advertising can take several forms. It could be a sign, a symbol, and an illustration. It could be a message which is either written in words or shown on TV or aired on radio. It could be a mailer received in post it could be a handbill distributed at a street corner. Advertising could be outdoor advertising such as posters or billboards or neon signs. Any form of presentation, which fulfils the functions of an advertisement, can be employed. Non'%ersonal: Advertisement does not include any personal selling done on person!to! person basis or people to! people basis. It is a substitute for a personal salesman. It uses mass media to deliver the message. Advertisement is meant for a larger "target audience and is not directed to an Individual (oods, Services, Ideas: Advertising can promote a wide range of products. It can also promote services such as mobile telephony, internet and banking. #esides, this advertising is used to propagate socially relevant causes such as family welfare, fuel, economy, adult literacy etc. All of you must have seen advertisements on TV advising care and caution while bursting crackers at the time of $eepavali. Identified Sponsor: An advertisement is put by an advertiser. The advertiser could be a company or corporation or society or an individual. The sponsoring organi%ation puts either its name or the name of the brand or both on the advertisement. T$e function of advertising can )e vied in t*o )asic *ays: &. as a tool of marketing '. as a means of communication +. As a tools of mar!eting: the advertising, in the above lines has been defined as a tool of marketing. It is used as a tool for selling the products, ideas and services of the identified (ponsor i.e. advertiser, through non!personal intermediaries or media. It supplements the voice and personality of the individual salesman. ,. Advertising as a means of communication and persuasion: advertising presents and promotes the ideas, goods and services of an identified advertiser. In presenting and promoting an item )ideas, goods and services*, the advertiser, is engaging in a very important function of communication. It informs the prospective buyers and users about the product and the producer. It, thus, serves as a communication link between the producer and the prospective buyers who are interested in seeking the information. (urely, advertising may be taken as the most efficient means of reaching people with product information. 1
#lassification of advertising +. ,. 4. 5. 1y Target Audience 1y (eograp$ical Area 1y Medium 1y %urpose 1y (eograp$ic Area .,TAI9 A$V,.TI(I57 .,7I45A9 A$V,.TI(I57 5ATI45A9 A$V,.TI(I57 I5T,.5ATI45A9 A$V,.TI(I57 1y Medium 3.I5T A$V,.TI(I57 #.4A$-A(T A$V,.TI(I57 .A$I4 TV 46T!48!:41, T.A5(IT $I.,-T 1AI9 14#I9, I5T,.5,T (4-IA9 1,$IA
1y %urpose 3.4$6-T A$V,.TI(I57 545!3.4$6-T 2 -4.34.AT, A$V,.TI(I57 -411,.-IA9 A$V,.TI(I57 545!-411,.-IA9 A$V,.TI(I57 A-TI45 A$V,.TI(I57 AWA.,5,(( A$V,.TI(I57 $,!1A.0,TI57 2
%roduct Advertising: The purpose of 3roduct advertising is to sell the advertiser/s good and services Non %roduct Advertising: It constitutes institutional and corporate advertising in which advertiser is trying to polish its image about an issue If the Idea is to make a profit, it is commercial advertising. 4therwise it is noncommercial Action advertising: the advertisements that are designed to get audience to respond immediately )these ads carry a toll free number and sales promotion incentives* Institutional Advertising o ,nhancing -orporate Identity o Advocacy Advertising )It refer to the company/s view on issue that affect its business and to protect its position in the market place* %roduct Advertising o %ioneering )(timulate 3rimary demand for new product* o #ompetitive )Influence demand for brand in the growth phase of the 39-. 4ften uses emotional appeal* o #omparative )-ompares two or more competing brands/ product attributes. ; 6sed if growth is sluggish, or if competition is strong0
Advertising &unctions
The functions of advertising depend on the following advertising ob<ectives= To ma!e t$e product distinct from ot$er competitor6s o 3ackaging o Innovation To communicate information -To communicate information about the product, its features and its location of sale, etc0 To e"pand t$e distri)ution To encourage )rand preference and Loyalty To reduce t$e sales cost To creates Ne* 2emand To 7rge %roduct use -To provide constant reminder and .einforcement to generate the desired behavior or To induce consumers to try new products and to suggest reuse 0
T$e
oles of Advertising
Mar!eting role: -arry persuasive messages to actual2potential customers #ommunication role: Advertising transmits market information to match buyers and sellers in the marketplace 8conomic role: Advertising may make consumers less price sensitive, or > Advertising may help consumers better assess value 3
Societal role: Ads inform about new products, help consumers compare products, mirror fashion, influence taste
1ait and S*itc$ A popular approach to deceptive advertising, the bait and switch routine entails luring customers in on the pretense of a special price but not having the item available. -hances are most often there was only one or two ?uantities of the specially priced item and companies skate around the issue by claiming there was items in stock. &a!e Testimonials (ometimes companies will fake testimonials in order to promote a product. 3eople tend to pay a lot of attention to the testimonials of others and businesses know this. 6nfortunately there is often no way to know when testimonials are faked and consumers don@t know the product or service is flawed until it is too late. &alse %romises and 9ague 2escriptions Way too many consumers have been burned by businesses who make promises and then do not honor them. 8alse promises are a problematic type of deceptive advertising to lure people in who expect to make a good purchase with a guarantee. $escriptions that are vague and filled with false promises are pretty deceptive. There is no substance to back up the promises of how good a product or service is and offer nothing of value underneath the fluff. 7nsu)stantiated #laims 4ne ma<or form of deceptive advertising is to provide unsubstantiated claims. 4ften an idea is created that is marketable and there is no real proof on whether or not it works or is effective. This is a problem in any industry, but especially those that can impact or be dangerous to the health, safety and welfare of others. 2istorted %$otograp$s and Ad'#opy 1uch like air!brushed models, some advertisers like to 3hotoshop their pictures, bait and switch photos or simply invent one. This goes for ad!copy too. Another form of deceptive advertising is to falsify ad!copy to make statements that are only half or no truths.
Advertising agencies: An independent service organi%ation that contracts with advertisers )firms or individuals attempting to find customers for their products and services* to manage their advertising. > complete a marketing analysis > develop an advertising plan > prepare a creative strategy > create advertising executions > develop and implement a media plan > handle billing and payments > integrate other marketing communications Type of Advertising Agency &7LL S8 9I#8 A(8N#; 7,5,.A9 -45(61,. A7,5-A #'# A7,5-A S%8#IALI<82 S8 9I#8 -.,ATIV, #46TIB6, 1,$IA #6AI57 A--465T 39A55I57 T.A88I- 1A5A7,1,5T
Agency Services Account Service= The link between agency and client, 1anaged by the Account ,xecutive Mar!eting Services: .esearch department may design and execute research programs 1edia department may analy%e, select and contract media resources #reative Services: -reation and execution of ads -opywriters, artists, other specialists oles of Advertising Agencies Advertising planning. -reative services. 1edia services. .esearch services. (ales promotion and merchandising services.
Advantage of using Advertising agencies ,mploy the best creative minds in advertising. :ave accumulated experience from working with a wide diversity of clientsC have a broader perspective and are more ob<ective. 1ay save the organi%ation money. Agencies are more familiar with media and media vehicles.
THE CLIENTS 9arge Advertiser -entrali%ed 4rgani%ation $ecentrali%ed 4rgani%ation 15 7lobal -orporation (mall Advertiser In house Agency
S8MI.TI#S #etter understanding of symbolic meaning 5ature of meaning vs ac?uiring meaning #rands as social identities -omponents > product, an ob<ect, a symbol2text and an interpreting 8rame of reference2 8ield of experience
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=ig$ Involvement= Very important decision, lot to lose if you choose the wrong brand, $ecision re?uires lot Lo* involvement= 6nimportant decision, little to lose if you choose the wrong brand, $ecision re?uires little thought T$in! or rational approac$= $ecision is 2 is not mainly logical or ob<ective, $ecision is 2 is not based mainly on functional facts &eel or emotional approac$: $ecision is 2 is not based on a lot of feeling, $ecision does 2 does not express one/s personality, $ecision is 2 is not based on looks, tastes, touch, smell, or sound )sensory effects*
#ognitive
esponse Model
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IN28%8N28NT 9A IA1L8S 8#8I98 #.M% 8=8NSI.N: -an the receiver comprehend the adD
28%8N28NT 9A IA1L8S M8SSA(8 % 8S8NTATI.N ATT8NTI.N #.M% 8=8NSI.N ;I8L2IN( 8T8NTI.N %7 #=AS8
#=ANN8L % 8S8NTATI.N: Which media will increase presentationD M8SSA(8 ;I8L2IN(: What type of message will create favorable attitudesD S.7 #8 ATT8NTI.N: Who will be effective in getting consumers/ attentionD
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S.7 #8 ATT8NTI.N &A#T. S $irect )3ersonality :imself ask to use the product* or Indirect 4rgani%ational )-orporate (ocial responsibility* (ource credibility > expertise, trustworthiness for Internali%ation (9,,3,. ,88,-T (ource Attractiveness > Similarity ).esemblance between the source and recipient of the message*, &amiliarity )0nowledge of the source through repeated or prolonged exposure* Li!ea)ility )Affection for the source resulting from physical appearance, behavior, or other personal traits* (topping 3ower of stars, athletes, musicians, etc -ontrol 4vershadowing E 4verexposure 1ovement of 1eaning from -elebrity to -onsumer (ource 34W,. for reward or punishment
M8SSA(8 ;I8L2IN( &A#T. S . 28 .& % 8S8NTATI.N o 3rimacy effect )3roduct appears 8irst* o .ecency ,ffect )3roduct appears at the last* #.N#L7SI.N 2 A?IN( o 4rgani%ation o 4wn -onclusion M8SSA28 SI282N8SS o 4ne!sided )without feedback* o Two! sided )with feedback ,x, (1(* 9er)al and visual message
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Advertising .)/ectives
Advertising has two main 4b<ectives &. (ales 4b<ective '. -ommunication 4b<ective
-ommunication 4b<ectives
Advertising is most effective when it is used to obtain narrowly defined communication ob<ectives
#ehavioral 4b<ective
&. Increasing -ompany/s brand usage rate among existing consumers '. ,ncouraging non user to have trial consumption and or purchase the brand
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2A(MA suggested that -lear Advertising ob<ectives need to be set for measuring the result of an ad campaign. Acc to 2A(MA approac$, Advertising ob<ective involves a communication task that is specific and measurable. It is based on a hierarchical model with four stages A*areness= 1aking target audience aware of the existence of brand #ompre$ension= To develop the understanding among the audience of what the product is and What it would do for them. #onviction: To stimulate target audience to buy the product Action= To motivate the target audience to purchase the product
#$aracteristics of o)/ectives
+. #oncrete and measura)le: t$e communications tas! or o)/ective s$ould )e a precise statement of *$at appeal or message t$e advertiser *ants to communicate to t$e target audience. &urt$ermore t$e specification s$ould include a description of t$e measurement procedure #.N# 8T8, M8AS7 A1L8 TAS3S T. 18 A#=I8982 (T.,57T:,5 T:, #.A5$ I1A7, 1AFI1IG, #.A5$ 3.,(,5-, I5-.,A(, I5 (A9,( and (A9,( 3.414TI45 .,!34(ITI45I57 ATT.A-T -413,TIT4./( -6(T41,.( -41165I-AT, I13.4V,$ B6A9ITA 7,5,.AT, :I7: AWA.,5,((
,. Target audience a !ey tenet to 2A(MA is t$at t$e target audience )e *ell defined. &or e"ample if t$e goal *as to increase a*areness, it is essential to !no* t$e target audience precisely. T$e )enc$mar! measure cannot )e developed *it$out a specification of t$e target segment. 4. Specified time period: A final c$aracteristic of good o)/ectives is t$e specification of t$e time period during *$ic$ t$e o)/ective is to )e accomplis$ed, e.g. @mont$s, + year etc. T$e time period s$ould )e appropriate for t$e communication o)/ective as simple tas!s suc$ as increasing a*areness levels can )e accomplis$ed muc$ faster t$an a comple" goal suc$ as repositioning a )rand.
#riticism of 2A(MA
1. %ro)lems *it$ t$e esponse =ierarc$y: It is )ased on $ierarc$y of effect model. And it is not necessary t$at consumers follo* t$e same seAuence of communication effect ,. Sales o)/ectives= Advertising is <ust one of among many factors )3ackaging, 3rice, #rand 15
Image, -ompetitor/s, $istribution channel 1anagement, 3roduct Buality etc* influencing sales and it is difficult to insolate the influence of it on sales 4. %racticality and costs= Implementation of $A71A. approach is difficult 5. In$i)ition of creativity: T$e 2A(MA model is a planned and rational approac$ to setting advertising o)/ectives. It imposes to muc$ structure and may restrict t$e creativity
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Advertising 1udget
Advertising #udget is the 1oney set aside by the advertiser to pay for advertising. The specific factors that affect to setting an advertising budget are= %roduct Life cycle: 5ew 3roduct needs large advertising budget to create awareness, develop preference and induce trial2purchase Mar!et s$are= #rand en<oys high market share needs more advertising as compared to the challenger. Taking share away from competitors re?uire larger expenditure Intensity of competition and clutters: :igher the competition, higher is the need of intense advertising Advertising freAuency: higher is the need to remind a brand/s message, more is the advertising budget
Approac$es to 1udgeting
T43!$4W5 A33.4A-: T:, A884.$A#9, 1,T:4$ #4TT41!63 A33.4A-: A.#IT.A.A A994-ATI45 -413,TITIV, 3A.ITA 4#H,-TIV, E TA(0 1,T:4$
Top' 2o*n Approac$es Top 1anagement (ets the (pending 9imit The advertising #udget Is (et to (tay within the (pending 9imit 1ottom up Approac$es Total #udget Is Approved by Top 1anagement -ost of Activities are #udgeted Activities necessary to Achieve 4b<ectives Are 3lanned 3romotional 4b<ectives Are (et
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8sta)lis$ .)/ectives )-reate awareness of new product among 'I percent of target market*
2etermine Specific Tas!s )Advertise on market area television and radio and local newspapers*
8stimate #osts Associated *it$ Tas!s )$etermine costs of advertising, promotions, etcJ*
&actors affecting allocation of )udget 1arket (i%e and 3otential 1arket (hares 7oal Ad Spending priorities in different mar!et and S$are of 9oice
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Message strategy
Message is the thought, idea, attitude, image or information that the advertiser wishes to convey to target audience Message Strategy involves Message Appeal= The approach used to attract the attention of consumers and to influence consumer feelings toward a product, service or cause. Appeals are broadly classified into ational, 8motional and Moral Appeals. Which are further are of following type &. Transformational Appeal '. -ombination Appeal +. .eminder Appeal L. Teaser Appeal M. (traight (ell 8actual Appeal N. (cientific Technical ,vidence O. $emonstration P. -omparison Q. Testimonial &I. (lice!If!life &&. Animation &'. 3ersonality (ymbol 21
&+. 8antasy &L. $ramati%ation &M. :umor 8"ecution Style= The way an appeal is turned into an advertising message or the way the message is presented to the consumer
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1. STRAIGHT - SELL OR FA T!AL MESSAGE This type of execution relies on a straightforward presentation of information about the product or service such as specific attributes or benefits ". S IE#TIFI $TE H#I AL E%I&E# E A variation of the straight sell where scientific or technical evidence or information is presented in the ad to support a claim '. &EMO#STRATIO# This type of execution is designed to illustrate the key advantages or benefits of a product or service by showing it in actual use or in some contrived or staged situation 5. OM(ARISO# This type of execution involves a direct or indirect comparison of a brand against the competition ). TESTIMO#IALS Advertisers present their advertising messages in the form of a testimonial whereby a person speak on behalf of the product or service based on his or her personal use of and2or experiences with it *. SLI E OF LIFE This type of execution is often based on a problem2solution type of format The ad attempts to portray a real!life situation involving a problem, conflict or situation consumers may face in their daily lives The ad then focuses on showing how the advertiser@s product or service can resolve the problem (lice!of!life executions are also becoming very common in business!to!business advertising as companies use this approach to demonstrate how their products and services can be used to solve business problems +. A#IMATIO# This techni?ue uses animated characters or scenes drawn by artists or on a computer Animation is often used as an execution techni?ue for advertising targeted at children ,. (ERSO#ALIT- S-M.OL This type of execution involves the use of a central character or personality symbol to deliver the advertising message and with which the product or service can be identified The personality symbol can take the form of a person who is used as a spokesperson, animated characters or even animals /. FA#TAS this type of appeal is often used for image advertising by showing an imaginary situation or illusion involving a consumer and the product or service
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cosmetic companies often use fantasy executions although the techni?ue has also been used in advertising for other products such as automobiles and beer
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10. &RAMATI1ATIO# This execution techni?ue creates a suspenseful situation or scenario in the form of a short story $ramati%ations often use the problem2solution approach as they show how the advertised brand can help resolve a problem 11. LIFEST-LE (hows how well the product will fit in with the consumer@s lifestyle +,. OM.I#ATIO#S 1any of these execution techni?ues can be combined in presenting an advertising message for example, slice!of!life ads are often used to demonstrate a product or make brand comparisons
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=eadline: Words in the 9eading 3osition of the Ad Su)$eads: (maller Than the :eadline, 9arger Than the -opy 1ody #opy: The 1ain Text 3ortion of a 3rint Ad 9isual 8lements: Illustrations (uch As $rawings or 3hotos Layout: :ow ,lements Are #lended Into a 8inished Ad T8L89ISI.N A298 TISIN(
+. 9I28.: means of visual execution procedure ,. A72I. i. 9oice'over: -T$e voice of an unseen narrator, or of an onscreen c$aracter not seen spea!ing, in a movie or a television )roadcast0 ii. Needle'drop iii. Dingles -A catc$y, often musical advertising slogan0 iv. Marry'music 4. S# I%T: Written version of a commercial providing detailed description of its video and audio component 5. % 8'% .27#TI.N: Advertising effectiveness test conducted )efore t$e implementation of advertising campaign C. % .27#TI.N @. %.ST'% .27#TI.N
M82IA %LANNIN(
Media %lanning: A series of decisions involving the delivery of messages to audiences Media .)/ectives: 7oals to be attained by the media strategy and program Media Strategy: $ecisions on how the media ob<ectives can be attained Media: The various categories of delivery systems, including broadcast and print media eac$: Actual No. of different audience members exposed at least once in a given time period #overage: The potential audience that might receive the message through the vehicle &reAuency: The number of times the receiver is exposed to the media vehicle in a specific time period
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%ro)lems in Media %lanning Measurement %ro)lems: It is difficult to measure so many strategies at once. Lac! of Information: 1uch Information is still unaware by the advertiser Time %ressure Inconsistent Terms 2eveloping t$e Media %lan Analy%e the 1arket ,stablish 1edia 4b<ectives $evelop 1edia (trategy Implement 1edia (trategy ,valuate 3erformance 1rand and #ategory Analysis
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.ate of product usage by geographic area :igher #$I R higher market potential for brand development
#2I
Info on potential for development of the total product category
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(eograp$ic #overage
Sc$eduling: Timing of the 3romotional ,fforts so that they coincide with the :ighest 3otential #uying times. 1edia (chedule is the calendar of advertising plan. There are three Approaches to (cheduling #ontinuity &lig$ting %ulsing #.NTIN7IT; > continuous pattern of advertisingJ.everyday, every week, every month without gapsJ.food, detergents, non!seasonal ongoing products. &LI(=TIN( a less regular schedule with intermittent periods of advertising and non! advertising %7LSIN( -ombination of continuity E flightingJ.continuity maintained but at certain times promotions are stepped up
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#$aracteristics of #ontinuity (erves as constant reminder -overs entire buying cycle Allows for media priorities > ?uantity discounts, preferred locations, etc :as higher costs, can have overexposure
#$aracteristics of &lig$ting -ost efficiency only during purchase cycles Inclusion of more than one medium with limited budgets Weighting may offer more exposure 9ikelihood of wear!out 9ack of awareness, interest, retention during nonscheduled times Vulnerability to competitive efforts
#$aracteristics of %ulsing .eminds consumer during weighting 1edia priorities are a plus (imilar as continuity E pulsing advantages 5ot re?uired for seasonal products or other cyclical products 8A#=
Importance of
Achieving awareness re?uires reach! exposure 5ew products re?uire very high level reach Trial stage of adoption re?uires high reach Attitude change re?uires high reach level
If target audience is exposed to a message once it is not necessary that it will have an impact. Importance of & 8:78N#; &. 5o. of times one is exposed to the media vehicle, not necessarily the ad itself. '. 8re?uency level shown in media plan overstates the actual level of exposure to ad. +. It becomes opportunity to see the adK rather than actual exposure to it. If one ad placed on one TV show one time, the no. of people exposed is reach ob<ective. If one ad is placed on two TV shows, the no. of people exposed once is 65$639I-AT,$ .,A-: (ome people will be exposed twice by two TV shows > $639I-AT,$ .,A-: 6nduplicated reach indicates potential new exposures $uplicated reach provides estimate of fre?uency 1ost media buys include both forms of reach
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(ross
ating %oint -( %0
It is refer to the number of times )fre?uency* and the number of individual in the 3rimary target audience, the media will reach
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Television
Advantages 1ass -overage :igh .each Impact of (ight, (ound and 1otion :igh 3restige 9ow -ost 3er ,xposure Attention 7etting 8avorable Image Availability of uniform national coverage 2isadvantages 9ow (electivity (hort 1essage 9ife :igh Absolute -ost :igh 3roduction -ost -lutter Inability to transmit detailed information .elatively high waste factor
adio
Advantages 9ocal -overage 9ow -ost :igh 8re?uency 8lexible 9ow 3roduction -ost Well!segmented Audience 2isadvantages Audio 4nly -lutter 9ow Attention 7etting 8leeting 1essage -an/t transmit complex messages or detailed information
MagaBine
Advantages (egmentation 3otential Buality .eproduction :igh Information -ontent 9ongevity 1ultiple .eaders 2isadvantages 9ong 9ead Time for Ad 3lacement Visual 4nly 9ack of 8lexibility
Ne*spaper
Advantages :igh -overage 9ow -ost (hort 9ead Time for 3lacing Ads Ads -an #e 3laced in Interest (ections Timely )-urrent Ads* .eader -ontrols ,xposure -an #e 6sed for -oupons 2isadvantages (hort 9ife -lutter 9ow Attention 7etting 3oor .eproduction Buality (elective .eader ,xposure
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2irect Mail
Advantages :igh (electivity .eader -ontrols ,xposure :igh Information -ontent .epeat ,xposure 4pportunities 2isadvantages :igh -ost 3er -ontact 3oor Image )Hunk 1ail* -lutter
Internet
Advantages 6ser (elects 3roduct Information 6ser Attention and Involvement Interactive .elationship $irect (elling 3otential 8lexible 1essage 3latform 2isadvantages 9imited -reative -apabilities Technology 9imitations 8ew Valid 1easurement Techni?ues 9imited .each
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Module I9: Advertising 8valuation Pretest Types of various Pretest Methods. Post test !arious Too"s # $pp"i%atio&s
,valuation of advertising is done at three stages= %re #ampaign o $efine -opy 3latform o 3re Test 3roposed Ad o 3lan the media .n #ampaign o Assess -ommunication effectiveness o 1easuring Audience #ehavior %ost #ampaign o To check return on advertising o 3ost test o To compare and measure achievement of advertising ob<ectives
-opy platform refer to entire advertisement, including the verbal message, picture, colors and
dramati%ations, whether the ad appears in print media, broadcast media or some other media. The methods used for copy testing depend upon the following= What assumptions are made about how advertising worksD What are the ob<ectivesD )What the copywriter is trying to accomplish* -opy Testing is divided into two parts Test made before the copy is released on a full run basis )3re Test* Test done after the copy is run )3ost tests*
Measuring Advertising 8ffectiveness ?$at to Test: (ource 1essage Variables 1edia Variables (ales ?$en to Test: 3re Test 3ost Test ?$ere to Test: 9aboratory Test 8ield Test Advantages of Measuring Advertising 8ffectiveness: &. Avoiding costly mistakes '. ,valuating alternative strategies +. Increasing the efficiency of advertising 2isadvantages of Measuring Advertising 8ffectiveness: &. :igh -ost of research '. 9ack of time +. 4b<ections by creative
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%rint Advertising
$irect Buestioning 8ocus 7roup 3ortfolio test 3aired -omparison test 4rder of merit test 1ock 1aga%ine test $irect mail test (tory Telling
T9 and
-entral location test -lutter test Trailer test Theatre test 9ive telecast test
a. #$ec!list Met$od The copywriters use checklist method to test the effectiveness of advertising copy. The purpose of this method is to ensure that all elements of the advertising copy are included with due importance in the advertisement. As it is a pretest method omissions can be included in the copy before release of the advertisement. A checklist is a list of good ?ualities to be possessed by an effective advertisement. The researcher has to compare the advertisement with the checklist and tick the items present in the advertisement copy. Accordingly a copywriter can draw specific conclusions and make suitable changes in the advertising copy. ). #onsumer Dury met$od This method essentially involves the exposure of alternative advertisements to a sample of <uryC of prospects and the securing of their opinion and reactions to the advertisements. This test is designed to learn from a typical group of prospective customers gathered in one place or a sample of prospects that are independently, visited by interviewers or contacted by mail their preference for one advertisement over the other or for several advertisements out of a group. Advertisements which are unpublished are mocked up on a separate sheet and these are presented before the consumer <ury either in personal interviews or group interviews. 34
c. Sales Area Test 6nder this method advertising campaign is run in the markets selected for testing purposes. The impact of the campaign is evaluated by actual sales in the selected markets. The market with high sales is considered the best market for effective sales campaign. In other markets suitable changes are made in the advertising campaign. d. :uestionnaire Met$od It is a list of ?uestions related to an experiment. It contains ?uestions and provides space for answers. The draft of an advertisement along with some relevant ?uestions is to be sent to a group of target consumers or advertising experts. Their opinions are collected and analy%ed to find out whether the proposed advertisement is satisfactory or not. e. ecall test Met$od 6nder this method, advertising copies are shown to a group of prospects. After few minutes they are asked to recall and reproduce them. This method is used to find out how far the advertisements are impressive. f. eaction test The potential effect of an advertisement is <udged with the help of certain instruments, which measure heartbeats, blood pressure, pupil dilution etc. Their reactions reveal the psychological or nervous effects of advertising. g. eada)ility test All the listeners of advertisements cannot read it e?ually. (o respondents are drawn from different socio economic and geographical backgrounds. This method is used to find out the level of effectiveness when and advertisement is read. $. 8ye movement test The movements of eyes of the respondents are recorded by using eye observation camera when advertisements are shown to them in a screen. This helps to find out the attention value of advertisement.
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%ost'Test Tec$niAues
3ost test is undertaken after the advertising has been run in the media. 1ost 3ost testing 8ocuses on Aided .ecognition 2 recall 6naided recognition 2 recall Attitude tests In?uiry test (ales Test The following are the post!test techni?ues for measuring the effectiveness of the advertisements > ecognition Test > It determines the readership of the advertisement in the newspapers and <ournals. This test is conducted by personal interviews with readers, and maga%ines or newspapers. The interviewers locate the readers of the particular issue of the maga%ine in ?uestion. They, then, go through the maga%ine page by page with the respondent indicating those advertising elements which he or she recogni%e as having read. The data collected by this test indicate the proportion of ?ualified readership of a publication who claims to have "seen/, "read some/ or "read most of the elements of the individual advertisement. These measurements may also seek to obtain ?uantitative data regarding the parts of an advertisement which were seen or heard. 2ay after ecall -2A 0: A research method that tests consumers@ memories the day after they have seen an ad, to assess the ad@s effectiveness.
ecall or Impact Test The recognition test measurers the stopping power of the advertising but goes not tell us what the readers understood or retained of the advertisement. The recall test is designed to measure the impression of readers or viewers of the advertisement. If a reader has a favorable impression of the advertisement, he will certainly retain something of the advertisement. The measures of interest would be obtained by interviewing the readers or viewers or listeners, days after the advertisement or commercial is appeared in the newspaper, or on T.V. Interviewer asks the ?uestions from the readers 2 viewers and in response to the ?uestion asked, the reader reveals the accuracy and depth of his impression by his answers. %syc$ological Analysis > The whole process of advertising is psychological in character. It is therefore, natural to apply some psychological tests to measure the effectiveness of the advertising. 8our psychological testing techni?ues are most commonly used > )a* Tests of readability and comprehensionC )b* Tests of #elievability )c* Attitude testsC and )d* Triple Associates Test. Attitude Tests A number of attitude tests are developed by the psychologists who can be applied to copy testing. Typical consumers are exposed to sample advertising messages, either printed or oral. The interviewer then asks series of penetrating ?uestions, to determine the attitude produced by these various message. 3sychological reactions such as age, involvement, the eye of person who would use the product and the personality of the product reflected by the advertisement being tested, are obtained. The researcher looks especially for elements in the advertising which arouse psychological hostility.
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Module 9: Sales %romotion -oncepts, 5ature, #enefits and 9imitation of (ales 3romotion. Types of sales 3romotion Tools > $ealer 3romotion , -onsumer promotion and sales incentives. $eveloping (ales 3romotion -ampaign.
Sales %romotion (ales promotion consists of a diverse collection of incentive tolls, mostly short term, designed to stimulate ?uicker and 2 or greater purchase of particular products2services by consumers or the trade= #oncept of Sales promotion (ales 3romotion is an important method of promotion which supplements personal selling and advertising effects. According to American 1arketing Association@ S(ales promotion includes marketing activities, other than personal selling, advertising such as displays, shows and expositions, demonstrations and various non!recurring selling efforts not in the ordinary routine.S (ales promotion includes free samples, premium on sales, sales and dealer incentives, contests, fair and exhibition public relations activities etc. .)/ectives of Sales %romotion (ales 3romotion techni?ues are used to Introduction of new products to the market through educating people Attractive new customers by offering attractive gifts. Increase (ales through slack season -reate goodwill among the present as well as prospective customers. -reate good public image of the product and the firm. Need and Importance of Sales promotion (ales 3romotion acts as a bridge between advertising and personal selling. $ue to the diversity of markets, the importance of sales promotion had increased tremendously. (ales promotion helps remove the customers dissatisfaction about a particular product, manufacturer and create brand image in the minds of consumers and users. The sales promotion devices at the point of purchase stimulate the customers to make purchase promptly on the spot. 1enefits of sales promotion (preads information (timulates $emand -ustomer (atisfaction (tabili%ation of sales volume -reate 3roduct identity 3erformance Appraisal
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#riticismELimitations of Sales promotion (ales promotion activities are often critici%ed on the following grounds. &. No real Incentives The incentives offered through sales promotion schemes are fictional and not real. It is said that manufacturer will reali%e the cost of their incentives by raising the price of goods. '. Nonmoving products are passed off 4nly products which are lacking in ?uality or are not likely to the favored by customers, re?uire sales promotion efforts. +. Temporary Nature The sales promotion schemes are carried out during particular seasons and not on permanent basis. The results achieved through them are generally short lived. As soon as the incentives offered under such schemes are withdrawn, the benefit in terms of increased sales may also vanish.
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@. %remiums or (ift .ffer: 3remiums )or gifts* are merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. There are three types of premium offers )i* with pack premium )ii* a reusable container )iii* a free in mail premium. %ac!aged %remium= In this type of sales promotion marketers pack some gifts inside the product package. The gifts create desire to buy the product. 4ne such scheme was launched by a toilet soap marketer in which gold pendant was put inside a toilet cake. &ree in mail premium= In these types of sales promotion the customers do no get immediate benefit promotion the customers do not get immediate benefit at the time of making a purchase. .ather the customers are re?uired to correspond with the marketer by sending, for eg, a wrapper or some proof of purchase or multiple purchase to claim the benefit. 8or instance, a company making chocolate re?uired the kids to send specially marked wrappers to claim gifts. #ontainer premium This category of sales promotion is also very popular with the marketers of <ams, detergents and soaps. In this scheme, the marketer devises special containers for packaging the product which could be used by the customer for some. 8or eg coffee powder, 4ats etc in uni?ue. Har which could be used by the housewife in the kitchen for storing things F. %riBes -#ontests, S*eepsta!es, (ames0 3ri%es are offers of the chance to win cash, trips, or merchandise as a result of purchasing something. A contest calls for consumers to submit an entry ! a <ingle, estimate, suggestion ! to be examined by a panel of <udges who will select the best entries. A sweepstake calls for consumers to submit their names in a drawing. A game presents consumers with something every time they buy ! bingo numbers, missing letters ! which might or might not help them win a pri%e. G. %atronage A*ards= 3atronage awards are values in cash or in other forms that are proportional to one@s patronage of a certain vendor or group of vendors. 1ost airlines offer Sfre?uent!flyer planS providing points for miles traveled that can be turned in for free airline trips. H. &ree Trials= 8ree trials consist of inviting prospective purchasers to try the product without cost in the hope that they will buy the product. Thus auto dealers encourage free test drives to stimulate purchase interest.. +I. %roduct *arranties are important promotional tools, especially as consumers become more ?uality sensitive. ++. Tie'in %romotions= Tie!in promotions involve two or more brands or companies that team up on coupons, refunds, and contests to increase their pulling power. +,. #ross'promotions= -ross!promotions involve using one brand to advertise another no competing brand. +4. :uantity 2eals (ome times, sellers devise special package which gives extra ?uality of the product to the buyer at the same price. These deals came in the form of S#uy three, get one freeS offer for beauty soaps like 5irma, 9ux
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+5. :uiB #ontests There may be customers contest, salesman contest and dealers contest. -ontests for salesman and dealers are intended to inducting them to devote greater efforts and for obtaining new sales ideas in the task of sales promotion. -ontest for consumers is held on writing a slogan on the product regarding liking of a customer etc. +C. &air 8"$i)ition #usinessmen can demonstrate their products explaining their special features and usefulness. They can also distribute free literature to introduce their firm and products to the public. 8air and ,xhibition are usually successful since they draw large ground. +@. 2isplay of products 7oods can be displayed in artificially laid out window at the shop front or at important busy centers like railways station and bus stops. The retailer organi%e such shares in their own shops. Window display is very popular with the retailers since it helps in informing the customer the types of goods available with them. +F. &ree offer= .ecently several companies are using free offers to promote their products for instance, +Ncms TV free with purchase of QMcms TV. +G. 8"c$ange offer= Attractive terms are offered to the old item and moreover, consumer finance is a made available for the amount of difference between the price of new item and sale value of the old item.
Trade'promotion Tools
1anufacturers use a number of trade!promotion tools because +. Trade %romotion can %ersuade t$e etailer or *$olesaler to carry t$e )rand = (helf space is so scarce that manufacturers often have to offer price!offs, allowances, buy!back guarantees, free goods, or outright payments )called slotting allowances* to get on the shelf, and once there, to stay on the shelf. ,. Trade %romotion can persuade t$e retailer or *$olesaler to carry more goods t$an t$e normal amount= 1anufacturers will offer volume allowances to get the trade to carry more in their warehouses and stores. 1anufacturers believe that the trade will work harder when they are SloadedS with the manufacturer@s product. 4. Trade promotion can induce t$e retailers to promote t$e )rand )y featuring, display, and price reductions= 1anufactures might seek an end!of!aisle display or increased shelf facings or price reduction stickers and obtain them by offering the retailers allowances paid on Sproof of performanceS 5. Trade promotion can stimulate retailers and t$eir sales cler!s to pus$ t$e product: 1anufacturers complete for retailer sales effort by offering push money, sales aids recognition programs, premiums, and sales contests. 1anufacturers probably spend more on trade promotion than they would freely choose to spend. The increased concentration of buying power in the hands of fewer and larger retailers had increased the trade@s ability to demand manufacturers financial support at the expense of consumer promotion and advertising. In fact, the trade had come to depend on promotion money from the manufacturers. 40
1usiness'promotion Tools
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Sale #ontests= A sales contest is a contest involving the sales force or dealers, aimed at inducing them to increase their sales results over a stated period, with pri%es going to those who succeed. A ma<ority of companies sponsor annual or more fre?uent sales contest for their sales force. -alled incentive programs, they serve to motivate and to give recognition to good company performance. The good performers may receive trips, cash pri%es, or gifts. (ome companies award points for performances, which the received can turn into any of a variety of pri%es. Incentives work best when they are tied to measurable and achievable sales ob<ectives )such as finding new accounts, reviving old accounts* where employees feel they have an e?ual chance. 4therwise, employees who do not think the goals are responsible will not take up the challenge. Specialty advertising= (pecialty advertising consists of useful, low! cost items given by sales people to prospects and customers without obligation and which bear the company@s name and address and sometimes an advertising message. -ommon items are ballpoint pens, calendars, cigarette lighters and memo pads. The item keeps the company@s name before the prospect and creates goodwill because of the items utility. 4ne survey indicated that over PNT of manufacturers supply their salespeople with specialty items.
Impact
Immediate
U7ifts
U1erchandise $eals U(ales -ontests :onors and .ecognitions U-ustomer (ervice Awards
U.eturn2 U$isplay -ontests .efund24ffers UTrading (tamps U-o!op Allowance Training (ales 8orce23rivileges
U(ales -ontest
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3ey Success &actors Sales %romotion .)/ectives #onsumer %romotions Trade %romotions UTrade support U$ual promotions )offer of trade promotions S$ort'term volume U(hort promotion period simultaneous with -onsumer promotions* o)/ective U(ales force )trade* (upport U4ffer of high level of incentives Long'term mar!et U(ales force support s$are o)/ectives UA void competitive promotion 1uilding trade inventory o)/ective U(ales force )trade* support U4ffer of high level of incentives to the consumer )and to the trade in case of dual promotions*. U(ales force)trade*support Increase consumer U9onger promotion period Trial U4ffer of higher level of incentives U(ales force )trade* support Load t$e consumer U:igh promotion cost!special advertising, o)/ective 343 etc. U$ual promotions U$ual promotions UTrade support UAbsence of competitive promotions UTrade support U(horter!promotion period
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