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MARKETING
TYBMS
SEMESTER V
Definition of Advertising:
Functions of Advertising
As a form of mass communication, advertising delivers relevant messages to
target audiences and by changing mental states, it can perform a number of
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.
5. 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
ADVERTISING AGENCY
An advertising agency is an independent organization that provides one or more
specialized advertising and promotion related services to assist companies in
developing, preparing and executing their advertising and other promotional
programmes.
3. Media buying agencies: Media buying agencies are independent companies that
specialize in the buying of media, particularly radio and television. The task of
purchasing advertising media has grown more complex as specialized media
proliferate, so media buying services have found a niche by specializing in the
analysis and purchase of the advertising time and space. Agencies and clients
generally develop their own media plans and then hire the buying services to
execute them.
Some media buying agencies do help advertisers plan their media strategies.
Because media buying agencies purchase such large amounts of time and space,
they receive large discounts and can save the small ageny’s or client’s money on
media buying. Media buying agencies are paid a fee or commission for their work.
Structure of an ad agency
Finance&
Account Account
Media Creative Production Accounting
Service Planning
Planning Copy
Buying Arts
ADVERTISING OBJECTIVES
“With realistic goals for advertising, you can satisfy both those who are investing in the
advertising and those who are creating it.”
Almost every person involved with advertising wants to measure their advertising’s
results. Those who pay the bills want to know the return on their investment, and those
creating the advertising want to demonstrate that their work is effective. Research
efforts on the part of advertisers, ad agencies, and the media have helped quantify the
results of advertising. But most continue to face basic questions such as: Does your
Advertising work? How hard does it work? What specifically does it do for your
business? Should I increase, maintain, or decrease spending? What’s the best
message I can put in my advertising?
There are no easy answers to these questions. Solutions are a mixture of science and
art.
Companies when asked about advertising objectives almost always reply with
marketing objectives. If they have a formal marketing plan, the advertising objectives
are typically statements like: to increase sales, or to expand market share. These are
too broad and general, making it almost impossible to measure success. More specific
objectives such as increase sales by 15%, or expand market share by 5% aren’t much
better because they are marketing goals, not advertising goals. Advertising cannot
achieve marketing goals all by itself. If a company wants to measure the results of its
advertising, it has to be more specific in the definition of what it expects to accomplish
through the use of advertising.
The advertising objectives must flow from prior decisions on target market,
market positioning, and marketing mix.
Reinforcement advertising: It seeks to ensure the buyers that they have made
the right choice by purchasing your brand.
Advertising in the
For Example: Hamara Bajaj advertisements make the owner of the two wheelers of
Marketing Plan:
TheBajaj proud of their possession by giving it a patriotic positioning.
Company’s
overall marketing Marketing Plan
plan determines
promotional Marketing Objectives
objectives and from Sales Objectives
these objectives,
Where does advertising objectives fall in the marketing plan
advertising
objectives are
derived. Promotion
objectives specify Advertising
what is to be Objectives
accomplished and
where advertising
fits in. The next step
is to set specific ad
Advertising Strategy
objectives and goals.
Advertising
Tactics
Promotions
Creative
Media Strategy
Strategy
NEED FOR ADVERTISING OBJECTIVES
One of the reasons many companies fail to set specific objectives for their
advertising and promotional programs are that they fail to recognize the value of doing
so. There are several important reasons for setting advertising and promotional
objectives:
Advertising
Objectives
Sales Communicatio
Oriented n Oriented
Objectives Objectives
Sales are a convenient and really attractive advertising objective for many
managers, but except for Direct Action Advertising, they are usually unsuitable for most
advertising. In today’s increasingly competitive market conditions, marketing and brand
managers are often under pressure to show sales results and their perspective is short
term in evaluating advertising. They look for quick fix solutions for declining sales,
ignoring the dangers of linking advertising directly with sales
Example
APPLE computers advertised their iMAC in some selected print media
vehicles in India; the ads were very successful and did in fact draw many
potential buyers to dealerships. However in good number of cases the matter
ended there. The problem was not with the ads, the campaign was very
successful attracting and creating product liking but the price and non-
availability of peripherals discouraged them. It would be unfair to measure the
success of ads themselves by the number of Apple computers sold to home
users.
The time lag between audience exposure to an ad and when that ad may lead to
an actual sale could be quite long because majority of the ads usually produce sales
effect after a long period of time.
Thus advertising objectives that emphasize sales are usually not very operational
because they provide little practical guidance for decision makers. No one argues the
desirability of a sales increase, but which campaign will generate such an increase? If
an objective does not contribute useful criteria on which to base subsequent decision, it
cannot fulfill its basic functions.
Again ‘increased sales’ is not a specific goal – it is only a wish for the future.
What percentage increase is the company looking at? By which date? Where are these
increased sales going to come from? How are they going to be achieved? The lucidity
of these answers will influence the effectiveness of the company’s advertising
objectives.
Example
Many companies have the “Scratch and Win” offers, which are usually
advertised on television. One such company was VIM bar, which had a scratch
and Win offer for about two months.
Existing Products
Existing Maintain Suggest new uses for DETTOL Antiseptic
Product to insertions in your product, or reasons advertised on the different
Existing users current for more frequent use, usage of the product, like
media building on existing for washing baby’s
contacts and goodwill clothes, for shaving, etc.
Existing Consider Explain the basic PHILIPS, ONIDA
Product to New new media benefits of your product, launched their colour
users and your company television sets in rural
record, to people markets and had related
unaware of them. advertisements for it.
Existing Consider Comparison campaigns FAIREVER advertised to
Product to competitors pointing out the switch the Fair & Lovely
users of rival media advantages of the users to its product.
products – patterns product over rival brands
Brand and of changing
switching established buying
habits
New Products
New Products Maintain Explain basic benefits, LAKME introducing new
to Existing insertions in building on existing products like Sunscreen
Customers current contacts and goodwill lotion, Moisturizer with
media Peach Flavour, Winter
Cream Lotion with
Strawberry ingredients,
etc.
New Products Consider Explain the basic FA and NIVEA introducing
to New Users new media benefits of your product, products for men.
and your company
record in other fields
New Products Consider Explain basic benefits PEPSI AHA aimed at
to Competitors competitors and overcome advertising itself in bars in
Customers media established goodwill. order to switch the alcohol
patterns drinkers to use Pepsi Aha
instead of Thumbs Up as
their mixer in the drink.
COMMUNICATION OBJECTIVES
Often when we think of advertising, we just think of great ads that make us laugh or
engage us in some manner. We tend to judge ads by these simple criteria. However, a
far more powerful way to look at advertising is by understanding that advertising is a
communication task, with specific communication objectives, and therefore we need to
understand how communication works.
The starting point is an audit of all the potential interactions target customers may have
with the product and the company. For example, someone interested in purchasing a
new computer would talk to others, see television ads, read articles, look for information
on the intranet, and observe computers in a store. The marketer needs to assess which
experiences and impressions will have the most influence at each stage of the buying
process. This understanding will help marketers allocate their communication budget
more efficiently. To communicate effectively, marketers need to understand the
fundamental elements underlying effective communication.
On the basis of the communication importance, there were eminent personalities who
made the communication models, which help a marketer to understand, how he
should go about communicating his product to the target audience.
All these communication models are centered on the three stages of the buying
behaviour of consumers.
Cognitive
Affective
Behaviour
Affective Stage
The effective component deals with the affections/emotions. For example, feelings of
likes or dislike towards objects are dealt on the effective plane. It is at this stage that the
consumer will either have preference or liking towards the product or he will develop a
dislike. This stage shows his attitude towards the product, whether he is for or against
the product.
Behaviour Stage
This is the stage when the consumer, after having the knowledge and developing the
liking or disliking towards the product, will ultimately lead into a purchase of the product
or rejection of the product. He would first try the product and develop loyalty towards it
or he is completely convinced that the product is good and would purchase the product.
Hence there are many models, which are based on these three stages, which is
explained in the next chapter.
MODELS BASED ON THE THREE STAGES OF BUYING
BEHAVIOUR
Cognitive Exposure
Stage Awareness
Reception
Attention Awareness
Knowledge Cognitive
response
Affective Liking
Stage Interest Attitude
Interest
Preference
Desire
Conviction Evaluation Intention
Behaviour
stage
Trial
Action
Behaviour
Purchase
Adoption
AIDA MODEL
DAGMAR
In 1961, Russel H. Colley wrote a book under the sponsorship of the Association of
National Advertisers called Defining Advertising Goals for Measured Advertising
Results. The book introduced what has become known as the DAGMAR approach to
advertising planning and included a precise method for selecting and quantifying goals
and for using those goals to measure performance.
DAGMAR approach can be summarized as ‘Defining Advertising Goals’. An advertising
goal is a specific communication task to be accomplished among a defined audience in
a given period of time.
In DAGMAR the communication task is based on the model of communication
process
DAGMAR has changed the way advertising objectives were created and the way that
advertising results were measured. It introduced the concept of communication
objectives like awareness, comprehension, image, and attitude. The point was made
that such goals are more appropriate for advertising than in some measure like sales,
which can have multiple causes.
Comprehension
Conviction
Action
Written Goal - finally goals should be committed to paper. When the goals are clearly
written, basic shortcomings and misunderstandings become exposed and it becomes
easy to determine whether the goal contains the crucial aspects of the DAGMAR
approach.
Noise in the system: DAGMAR assumes that the awareness and liking of the brand can
be achieved through advertising alone. But the underlying fact is that there are many
other variables such as competitive promotion, unplanned publicity, word of mouth,
simple discussion with peers, new paper articles etc all create awareness of the brand.
Thus there are many other elements other than advertising in the hierarchy chain that
create awareness. Example: Tupperware is famous in Indian cities. It has
happened only through personal selling and networking. Advertising has had no
role in it.
Inhibiting great idea: The more defined and concrete objective of the client brief, the
less creative the advertisement will be, as a result, the effectiveness of the
advertisement is reduced. Example: A campaign with all music and warm human
visuals is be loved by everybody but it would fail to meet the company’s
standard. Thus a wonderful campaign would be evaluated on wrong criteria.
Example:
Sundrop
Background Scenario:
Mid 1980’s, ITC decided to diversify, chose edible oil business.
Market was rapidly growing; demand was much greater than supply.
ITC had the requisite skills and relationship with farmers through Leaf Tobacco Division.
Marketing Objectives:
Leadership in the edible refined oil segment, through proving the consumer a superior
quality product at competitive prices in different pack sizes.
Accordingly production and distribution network was carefully planned.
Competition:
Saffola (Safflower oil) also used the health platform but was associated with heart
patients and less taste
Flora and Sunola (Sunflower oils)
Market Research:
Revealed low brand loyalty, except for ‘Postman’
Key attributes: taste, quality (purity, colour, odour), health and value for money.
Health was chosen as the platform, along with a supporting claim for taste. People who
were healthy and energetic were concerned about the long-term prospects of their
health. Thus ‘Health’
Was related to maintenance of good health
Was applicable to all members of the family
Was characterized by lively energetic people
Thus the positioning: ‘The Healthy Oil for Healthy People’
Advertising Goals:
Communication task:
Position Sundrop as the healthy oil for healthy people
Ensure that this did not erode the delivery of the taste benefit.
Execution:
Did not use the clichéd family at dinner table scene with pack shot at the end.
Instead featured a lively and energetic kid, a symbol of good health.
Use of yellow colour throughout to reinforce associations with the brand.
Pouring oil becomes Sundrop logo
Results:
Within 6 months, Sundrop became the largest selling refined sunflower oil.
Redefined the category and expanded the Sunflower oil segment from 2.71% to 23% in
6 months, and 42% in 1997
Still the largest selling sunflower oil brand holds 15% of branded oil market.
The ad was shown for over 10 years as the main theme film.
Thus the different types of communication objectives that a company can have
are listed below.
Introduction of new products: For the new products or services, reminder advertising
is clearly inapplicable. Here the task is one of basic education – informing potential
customers of the benefits they will reap by purchasing the new product.
Example
Livon Silky Potion, when introduced, the ads differentiated the product from the
shampoos and conditioners by explaining usage the product, positioning it to be better
than the conditioners and how hair become very manageable and silky after using it.
Example
As in the case of KAMASUTRA condoms – people were against the use and had a
negative impression of using condoms. Their approach was that of being high
resistance. This was because they saw condoms as a means of protection. Hence
KAMASUTRA had a task of selling not only the product, but also the desire of
‘The pleasure of making love’. Hence in all their advertisements they have
brought the factor.
Reminding customers: A company has to constantly remind users of their wares. The
human memory is very short and frequent reminders are necessary. Moreover, there
are innumerable distracting factors, which soon make memory fade. There is also
competition for attention faced from the makers of totally different products. Taking a
still wider view of the many selling influences at work to make people forget your
product – the latest news at home or abroad, the activities of family and friends, new
events at work and the latest films and television programmes- all make the consumers
mind divert and forget your product. The manufacturer who wants his product ad name
to be remembered amid the host of competing products and brand names will go for
high public attention.
Further more, constant reminders through advertisements can enhance the company’s
reputation and standing and play their part in cementing customer loyalty.
Example
SANTOOR constantly touched the consumer with its theme of ‘mistaken identity’.
It raised the aspirations of a woman of looking younger.
Example: Hyundai Santro had some ads quoting how customers were satisfied
with the ‘Mobile’ service that helped them in a difficult situation. This is a classic
example of reinforcement advertising.
New customers from other brands: One must try to find out which existing users of
the competing brand are the most dissatisfied with it and target these switchable
consumers. Alternatively one should try to acquire those customers of the competing
brand who are the most likely to grow their sales volume in the years to come. And/or
are the most profitable. For many product categories about 20% of the customers
(heavy users) are likely to account for 50% of the sales volume and profits and are
clearly worth focusing on as new brand users.
Example
ARIEL v/s SURF: When Ariel was launched, it showed comparisons between itself
and a known detergent (Surf packet without its name). Through its ads, it showed
how it was better than Surf and thus wanting to shift the Surf users to Ariel.
New customers from other categories: Another approach is to attract people from
those not now using the product class. The firm in the industry that has the highest
market share, the largest distribution, the biggest sales force and the highest awareness
is the one most likely to get the sale from a customer just entering the product category.
Example
PEPSI might conclude that it is easier to get young coffee drinkers to switch from
coffee to PEPSI, than it is to switch COKE drinkers to PEPSI
UJALA, when it entered the market, proved itself better than Neel (blue) and made
the users shift to it.
On the other hand such a strategy makes much less sense for a smaller firm that runs
the risk that the segment member who is induced to try the product class may buy from
a larger competitor.
Example
A small cellular phone manufacturer might waste its money if it ran ads telling
people why cellular phones in general were useful for personal or business
reasons. A consumer seeing those ads might decide that, yes they need a cellular
phone, but might then end up buying the better-known MOTOROLA or NOKIA.
Brand Image / Company Image: The company needs to have a favourable image of it
brand in the eyes of the customers. For this reason, the company undertakes various
campaigns to build the brand and the company. This will enhance the preference of the
customers to use the particular brand in the market of numerous brands. There are
various factors that contribute to the favourable brand image. They are:
Brand Personality
Example: MCDONALDS - Family oriented, Genuine, wholesome, cheerful, fun
Performance
Example: MRF Tyres run huge ads in print media on the onset of monsoon, telling
users to trust MRF for monsoon. Also, in all its ads it talks about the awards it
has won over the years, as ‘the best tyres for Indian roads’.
Example
PERK introduced the “PERK XL and PERK XXL” at the competitive price. They
have used ‘Preeti Zinta’ in their advertisements.
Ponds have a range of product, which was introduced consecutively, and it is
constantly advertised on television and other mediums.
Supporting other sales promotion activities: Many times the company introduces
sales promotion activities for its consumers. For this, they advertise on different
mediums to support the sales promotion program in meeting its objectives.
Example
FILMFARE uses hoardings at the latter part of the month to advertise about the
freebie attached with the next month’s issue.
Increasing usage: It is possible to increase the usage of existing customers in the
product class. In essence the goal would be to increase the amount consumed
per usage occasion.
Example
CLINIC PLUS – recommended through its advertisement, that its shampoo must be
used three times in a week – “Tuesday, Thursday, Sunday.”
The other way could be to suggest new usage occasions and opportunities.
Example
ZANDU BALM – the advertisement depicted the various pains that could be relived
through Zandu Balm, without even visiting the doctor.
CADBURY’S DAIRY MILK – which showed the marriage scenario and how people
consumed Dairy Milk instead of the usual Mithais.
Increasing brand loyalty: The company is not the only one in the market who
advertises its product. The competitors are perpetually trying to steal their customers
away or trying to increase their own share of requirements. It is very important therefore
to recognize the effect that advertising has on reinforcing the present customers,
existing preference for the company’s brand. (Though actual experience with the
product is probably the bigger determinant of brand satisfaction and loyalty)
Example
INDIAN EXPRESS ad ‘Hammer home the truth, we do it everyday’ was meant
primarily for the existing readers of Indian Express, to promote brand loyalty. The
ad conveyed the ‘true journalism’ aspect of the Indian Express.
Umbrella campaigns: Many organizations are found active in many activities and have
multiple brands for different categories, with separate divisions marketing separate
products to separate markets via separate advertising and selling campaigns. Many
such organizations realize that linking their self-contained business operations would
benefit all component companies.
Hence through one advertising campaign, all the products of the company are exposed
to the audience. This also builds up the image of the company and all its brands.
Example
AMUL - REAL TASTE OF INDIA campaign that was quite successful.
Other umbrella campaigns are that of CAMLIN, WIPRO, ADITYA BIRLA GROUP,
PARLE ‘world of happiness’, etc.
Campaign to push declining sales: In this the purpose of the campaign may not be to
increase or stabilize sales, but to hold off a decline. This overall category masks various
types of decline for which different advertising approaches are necessary. One
advertising campaign may have as its purpose countering the natural decline in the
market. Another purpose might be to sustain an existing brand against competition.
Other purposes might be to slow down a permanent trend or to reverse a temporary
decline.
Where the market for the company’s product is steadily diminishing, it is unwise to
expect advertising to work miracles and reverse the permanent trend: it may however
be able to make some contribution by slowing the rate of decline, thus giving the
company time to seek new opportunities in other directions. Whereas advertising can
make a far more positive contribution is in countering temporary falls in sales. Positive
advertising, emphasizing value for money, can help people adjust more swiftly to the
new conditions.
Example
RASNA was a declining product even after being in the market for 4 years and even
though it was an entirely new concept of a branded soft drink concentrate. In 1982 non-
aerated soft drink market was estimated at around Rs 13 crores. Squashes and syrups
were the leading product categories, accounting for 84% of the market. Soft drink
concentrates had a share of 7% only. It was recognized that there existed a good
potential market for Rasna, if advertised properly.
Advertising objectives:
To persuade consumers to try RASNA by creating / reawakening their interest in the
brand
Target audience:
Housewives in the age group of 20+and with household income of Rs 750+ p.m
Influencer:
This was perhaps for the first time in the history of Indian advertising that the child was
recognized as the major influencer in the purchase of a household product
Campaign evaluation:
The consumers off take shot upto Rs 1.44crores. Market share increased from 6%in
1982 to 9%in 1983. Share of syrups declined by 4%
Social objective: There are many companies or institutions, which have social
advertisements. These advertisements focus mainly on some social issue like–Aids,
Cancer, Anti–Tobacco, Safe Driving, etc.
The companies mainly advertise on these grounds because each company needs to
fulfill some social responsibilities, and also these kinds of advertisements, might
enhance their company image and value.
Example
LOWE Advertising Agency, has a hoarding on the Pedder Road, Mumbai which
emphasizes on different social messages such as AIDS etc.
FCB ULKA Advertising Agency has a hoarding on the busy road near Pedder
Road, Mumbai that said “Drive Safely”
Example
When KWALITY WALL’S opened its outlets, it had coupons in newspapers, giving free
ice cream in exchange of those coupons on the first day of the outlets.
Recent campaign by MCDONALD’S talking about the ‘Aao Match Karein’, where
consumers come to the store and match different words on the packages of its products
Motivating the channel to stock the product: Many a time the advertisements are
directed not towards the consumers, but the retail shops/channels, in order to motivate
them to stock their brands.
Example
This was an advertisement directed to the video library owners to stock videocassettes
made by the STAR VIDEO PVT Ltd. This ad was released in 1987 in the press medium.
Another example would be of the Life insurance agents’ ads, which attract and induce
young professional to join the insurance company as life insurance agent.
Product positioning and brand building: When the products are launched, they are
usually positioned at a platform enabling the consumers to relate to the product. This is
called the positioning of the brand. Companies position their brand to make it stand out
from the other brands in the market. Positioning is to appeal to a specific target
audience and induce them to buy the product. Once the product is positioned at a
particular platform, the companies need to constantly remind the consumers and build
brand. This also involves many stages and the marketer needs to communicate to the
audience at each stage. This thus becomes one more advertising objective for the
company.
Example
SAINT GOBAIN is a classic example for this point. It positioned itself as ‘So Clear, So
Real, Glass from Saint Gobain’ Their ads are also focused on how the SAINT GOBAIN
glass can be mistaken for no glass at all – it feels so real’.
Countering competition: The market today is no longer a one–man show. There are
innumerable companies, all of them having their own products to offer. In such a
situation, a company needs to constantly advertise to remain in the minds of the
consumers. With the MNCs entering India, a lot of Indian companies have been facing
tough competition. Most companies position their products so as to differentiate their
brands from the competition.
Example
MOOV used its competitor IODEX’s negative point in its advertisements. It showed how
the usage of IODEX (name not revealed in the ad) left stains in the clothes making other
people know about it. The tagline said “Kissi Se Kuch na Batai”
Repositioning the brand: Sometimes, the company’s product is not accepted in the
market with its original features. Thus in order to change the image and become
favourable in the eyes of the consumers, they need to reposition their brand.
Example
MARUTI OMNI had to reposition itself clearly different from the Maruti car in the
potential buyer’s minds. They also had to enhance the image and personal values of the
brand. It also had to generate at least short-term growth in sales to match current
production potential.
Their ads had a vivid demonstration of the spacious car, positioning, and each
presenting the van’s spaciousness from a new unexpected viewpoint.
STRENGTHENING ATTITUDE AS AN
ADVERTISING OBJECTIVE
The Three Stages
Cognitive
Attitude is the central theme in advertising management Realm of thoughts.
Ads provide information and facts.
Behaviour
Realm of motives.
Ads stimulate or direct desires.
Attitudes are usually defined as a disposition or tendency to respond positively or
negatively towards a certain thing (idea, object, person, and situation). They
encompass, or are closely related to, our opinions and beliefs and are based upon our
experiences. Since attitudes often relate in some way to interaction with others, they
represent an important link between cognitive and social psychology.
The traditionally accepted view of attitude is that it is made up of three into related
components-cognitive, affective and behaviour/conative.
The cognitive component deals with cognition, or knowledge; it is the faculty of knowing
or perceiving are conceiving ideas; it is this year dealing with knowledge.
The effective component deals with the affections/emotions. For example, feelings of
lights or dislike towards objects are dealt on the effective plane.
And the conative/behaviour component deals with the behaviour or action.
I have a new product, a soft drink - Cola, and I want to get it out on the market. I must
convince people that they want and need my product. They have been drinking Coke or
Pepsi for the past 20 years, and they like it. If I want to have a shot in the cola industry, I
need to change some attitude, and advertising is the way to do it.
When changing attitudes through advertising, there are many factors to consider. One
must choose:
A source that is attractive to the target audience,
A message that will break through the clutter, and
A channel that will maximize comprehension.
Television gives us more information than any other medium. It is where we go when
we want information on breaking news, and it gets more credibility ratings than
newspaper.
Comprehension
To get maximum comprehension from a message:
Choose a source the audience knows
This is why celebrity endorsements are so prevalent today. People connect better with
sources they know and trust.
Word the message so it connects with a specific audience
This is easier than ever with the segmentation of audience due to cable television.
Some companies give a message in several ways to several audiences.
Pick a channel that allows the message to be fully understood
Understand the defensiveness of the audience
Retention
Powerful sources that are ever-present are more likely to increase retention. We
remember sources that are attractive to us. Also, repetition increases retention. Radio
and television can increase repetition more than personal selling or face-to-face can.
Brand Attitude
A focus on brand attitude is another type of advertising objective. This objective is
more appropriate to the stage of growth and maturity in the product life cycle. The brand
attitude objective could be either one among enhancing or maintaining the current brand
attitude, changing the current brand attitude, or creating the new brand attitude. Of
these options, the most difficult task is to change the current brand attitude because
consumers already typically have certain types of attitudes toward established products.
5 Ms OF ADVERTISING Message
Message
generation
Message
evaluation
& selection
Message
Money execution
Social
Mission responsibili
Factors to ty review Measurement
consider:
Stage in PLC
Sales Market share
goals Communica
and
Advertisi Media tion impact
consumer
ng Sales
base
objective impact
Competition
s and clutter Reach,
Advertising frequency,
frequency impact
Product Major
substitutabilit media
y types
Specific
media
vehicles
Media
timing
Geographic
al media
allocation
While making an Advertising program five Ms should be taken into consideration, they
are:
After the Target Market, market positioning and marketing mix decisions have been
taken the First step n developing an Advertising Program is
To inform: This aim of Advertising is generally true during the pioneering stage of a
product category, where the objective is building a primary demand.
This may include:
Telling the market about a new product
Suggesting new uses for a product
Informing the market of a price change
Informing how the product works
Describing available services
Correcting false impressions
Reducing buyers’ fears
Building a company image
To persuade: Most advertisements are made with the aim of persuasion. Such
advertisements aim at building selective brand.
To remind: Such advertisements are highly effective in the maturity stage of the
product. The aim is to keep the consumer thinking about the product.
2. MONEY
This M deals with deciding on the Advertising Budget
The advertising budget can be allocated based on:
Departments or product groups
The calendar
Media used
Specific geographic market areas
There are five specific factors to be considered when setting the Advertising budget.
Stage in PLC: New products typically receive large advertising budgets to build
awareness and to gain consumer trial. Established brands are usually supported with
lower advertising budgets as a ratio to sales.
Market Share and Consumer base: high-market-share brands usually require less
advertising expenditure as a percentage of sales to maintain their share. To build share
by increasing market size requires larger advertising expenditures. Additionally, on a
cost-per-impressions basis, it is less expensive to reach consumers of a widely used
brand them to reach consumers of low-share brands.
Competition and clutter: In a market with a large number of competitors and high
advertising spending, a brand must advertise more heavily to be heard above the noise
in the market. Even simple clutter from advertisements not directly competitive to the
brand creates the need for heavier advertising.
Advertising frequency: the number of repetitions needed to put across the brands
message to consumers has an important impact on the advertising budget.
Product substitutability: brands in the commodity class (example cigarettes, beer, soft
drinks) require heavy advertising to establish a different image. Advertising is also
important when a brand can offer unique physical benefits or features.
3. MESSAGE GENERATION
Message generation can be done in the following ways:
The Matrix formed by the intersection of these four types of rewards and the three types
of experiences is given below.
Message execution.
The message’s impact depends not only upon what is said but also on how it is said.
Some ads aim for rational positioning and others for emotional positioning.
While executing a message the style, tone, words, and format for executing the
message should be kept in mind.
STYLE. Any message can be presented in any of the following different execution styles,
or a combination of them:
Slice of life: Shows one or more persons using the product in a normal setting.
Example: Coke 1litre ad, showed a family enjoying Coke, with a game of
antakshari when there is a power failure.
Mood or image: Evokes a mood or image around the product, such as beauty, love,
or serenity. No claim is made about the product except through suggestion.
Example: Kingfisher Beer ads, saying the King of Good Times.
Musical: Uses background music or shows one or more persons or cartoon characters
singing a song involving the product.
Example: Ads of Old Spice After Shave Lotion
Personality symbol: Creates a character that personifies the product. The character
might be animated
Example: Ronald McDonald for McDonald’s
TONE :
The communicator must also choose an appropriate tone for the ad.
Example: Procter & Gamble is consistently positive in its tone—its ads say
something superlatively positive about the product, and humor is almost
always avoided so as not to take mention away from the message. Other
companies use emotions to set the ton e—particularly film, telephone, and
insurance companies, which stress human connections and milestones.
FORMAT:
Format elements such as ad size, color, and illustration will make a difference in an
ad’s impact as well as its cost. A minor rearrangement of mechanical elements within
the ad can improve its attention-getting power. Larger-size ads gain more attention,
though not necessarily by as much as their difference in cost. Four-colour
illustrations instead of black and white increase ad effectiveness and ad cost. By
planning the relative dominance of different elements of the ad, optimal delivery can
be achieved.
4. MEDIA
The next ‘M’ to be considered while making an Advertisement Program is the Media
through which to communicate the Message generated during the previous stage. The
steps to be considered are:
Deciding on
Geographic media
allocation
Step V Deciding on
media timing
Selecting
Step IV specific media
vehicles
Choosing
Step III among major
media types
Deciding reach,
Step II frequency and
impact
Step I
5. MEASUREMENT
Evaluating the effectiveness of the Advertisement Program is very important as it helps
prevent further wastage of money and helps make corrections that are important for
further advertisement campaigns. Researching the effectiveness of the advertisement is
the most used method of evaluating the effectiveness of the Advertisement Program.
Research can be in the form of:
1. Communication-Effect Research
2. Sales-Effect Research
There are two ways of measuring advertising effectives. They are:
1. Pre-testing
2. Post-testing
1Pre-testing: This is the test of the copy before it is given to the media.
2Post-testing:
3This is the testing, which is done after the ad copy has come out in the media and the
audience has seen the advertisement.
4Post-testing typically involves interviewing readers to determine how many remember seeing a
particular ad, if they read it, and what they remember about it.
Example:
Sundrop
Mission:
Sales goals: Leadership in the edible refined oil segment
Advertising Goals:
Communication task
Position Sundrop as the healthy oil for healthy people
Ensure that this did not erode the delivery of the taste benefit.
Money:
Stage in PLC: Introductory, therefore relatively large expenditure
Market share: new product
Competitors:
Saffola (Safflower oil) also used the health platform but was associated with heart
patients and less taste
Flora and Sunola (Sunflower oils)
Message:
Health was chosen as the platform, along with a supporting claim for taste. People who
were healthy and energetic were concerned about the long-term prospects of their
health. Thus ‘Health’
Was related to maintenance of good health
Was applicable to all members of the family
Was characterized by lively energetic people
Thus the message and (positioning): ‘The Healthy Oil for Healthy People’
Media:
Primary media: Television ad 30 seconds.
Print ad
Measurement:
Within 6 months, Sundrop became the largest selling refined sunflower oil.
Redefined the category and expanded the Sunflower oil segment from 2.71% to 23% in
6 months, and 42% in 1997
Still the largest selling sunflower oil brand holds 15% of branded oil market.
The ad was shown for over 10 years as the main theme film.
DECIDING ON THE ADVERTISING BUDGET
Budget is the financial statement of income and expenditure for a given period of time.
Therefore, advertising budget is also a statement of expenditure on various advertising
activities and of the income generated from advertising in the same period.
Advertising has a carryover effect that lasts beyond the current period. Although
advertising is treated as a current expense, part of it is really an investment that builds
up an intangible asset called brand equity.
This treatment of advertising reduces the company’s reported profit and therefore limits
the number of new product launches a company can undertake in any one year.
The following are the factors that are considered while setting the advertising
budget:
1. Organizational objectives: Advertising budget depends on the objectives, which the
firm desires to achieve. There are various objectives behind advertising campaign.
Some of the objectives are noted below:
5. Competition and clutter: In today’s competitive market, where there are a large
number of competitors, a brand must advertise heavily to be heard.
7. Quantitative Models:
This method employs computers stimulation models involving statistical techniques,
such as multiple-regression analysis to determine the relative contribution of the
advertising budget to sales.
8. Marginal Analysis:
As advtg/ promotional expenditure increases, sales & gross margin also increase to a
point, then they level off.
Using this theory to establish its budget, a firm would continue to spend
advertising/promotional budget as long as the marginal revenues created by these
expenditures exceed the incremental advertising /promotional costs.
Attitudes help us define how we perceive and think about others, as well as how we
behave toward them.
Cognitive Component
The knowledge and perceptions we have about the object. Based on personal
experience with the object and information from various sources (e.g., opinions of
others, ads, articles, etc.). This knowledge and perceptions commonly take the form of
beliefs i.e., the consumer believes that the object possesses attributes and that specific
behavior will lead to specific outcomes.
Affective Component
A consumer’s emotions or feelings about a particular product or brand. Generally a
reaction to the cognitive aspect of the attitude. Our emotional state may amplify positive
or negative experiences, which then have an affect on our attitude.
Behavioral Component
Is concerned with the likelihood or tendency that a consumer will undertake a specific
action or behave in a particular way regarding the attitude object. Frequently treated as
a consumer’s intention to buy. Research shows that consumers who respond positively
to an intention to buy question (e.g., “yes, I plan to buy it”) are more likely to buy the
product than consumers who are not asked to respond to an intention question.
MODELS
AIDA MODEL HIERARCHY INNOVATION PERSUAION
STAGES
OF EFFECTS ADOPTION MATRIX
MODEL
PRESENTATION
AWARENESS AWARENESS
COGNITIVE ATTENTION ATTENTION
KNOWLEDGE INTEREST
COMPREHENSION
LIKING YIELDING
INTEREST
AFFECTIVE PREFERENCE EVALUATION RETENTION
DESIRE
CONVICTION
TRIAL
BEHAVIORAL ACTION PURCHASE BEHAVIOUR
ADOPTION
When marketers use the traditional models to create or change attitudes, they use the
various components as follows:
Message presentation
This includes deciding what information to give the audience, how to give it and through
what medium.
Attention
Even with exposure to message, attention is not guaranteed. In this world of sensory
overload, it is necessary for the human mind to accept only a small portion of the deluge
of information it receives. Selective perception helps the mind bring information into
manageable portions. This involves attracting the attention of the target audience i.e.
the source and message elements come into play.
Comprehension
The step in the attitude change process requires the receiver to grasp the full meaning
and implications of the message. It must not only be heard, but also understood and
contemplated.
Agreement/ yielding
After comprehension, an opinion must arise about the believability and validity of the
persuasive message. Agreement with the message can be influenced by a number of
factors, both internal (such as previously held beliefs) and external (the perception of
the source as being credible or the type of appeal used, for examples). McGuire also
refers to this step as yielding.
Retention
Remembering the accepted information is the fifth step in the process. A substantial
amount of time may pass between the conveyance of the message and the actual
moment a purchase decision is made, as in the grocery or department store. The
placement of this information into memory does not mean that it is not susceptible to
decay. Delayed processing also affects the storage and reprocessing of information.
Behaviour
This step is especially important to those measuring advertising's effectiveness through
increased sales. Behaviour here means the actual process of purchase. Despite the
fact that an individual alone can experience the entire process as he or she goes
through it, research has shown that actions do not necessarily follow attitudes. In other
words, people often don't know why they do the things they do That is why further
investigation into attitude change is necessary.
MEDIA
The range of advertising media is so wide that it is not possible to attempt a definition
other than in the broadest terms. An advertising medium is any means by which an
advertiser may decide to spend the money he has allocated to advertising.
Media Terminology
Media Planning - the process of deciding how to most effectively get your
marketing communications seen by your target audience.
Media Planner - the person at the advertising agency who develops and
executes your media plan.
Media Plan - the document or flowchart which details the tactics used to
accomplish your media objectives.
Broadcast Media - Either radio or television network or local station broadcasts.
Print Media - Publications such as newspapers and magazines.
Media Vehicle - The specific message carrier, such as the Washington Post or
60 Minutes.
Coverage - The potential audience that might receive the message through the
vehicle.
Reach - The actual number of individual audience members reached at least
once by the vehicle in a given period of time.
Frequency - The number of times the receiver is exposed to vehicle in a specific
time period.
Geographic coverage:
The coverage of every medium is limited by area. Coverage may be limited, as with a
national newspaper to a national basis. Within this lies another limitation, as in a
national paper may also have a strong degree of coverage in some areas and lighter
degree in others. Coverage may also be limited as with a television or radio station to a
specified “region. Within this it is further influenced by fluctuating factors like signal
strength, booster transmitters or pattern of relay services. This factor is important not
only to small regional advertisers but also to national advertisers whose sales patterns
and resistance varies from region to region.
Scheduling
A decision must be made about how long an advertisement campaign should be run on
one media. There is a cumulative advantage from continuity, as a greater audience will
be reached in Terms of both frequency and coverage by advertisements continually
placed in one medium. The same medium will have some new audience
Flexibility
The ability of the media to adapt to changing and specific needs of advertisers is flexibility.
Certain media allows such flexibility with respect to the advertised message, the geographical
coverage and the ad budget For
8. Budget considerations
A choice of media will depend to a large extent upon the size of the advertising budget.
Certain media types may be too expensive for the funds available. For example: the
cost of national transmission over Doordarshan may be too high for an advertiser. The
cost of maintaining a neon sign cannot be afforded by small budget advertisers.
ELEMENTS OF MEDIA
Evaluation of a particular medium for inclusion in a campaign rests upon what it
contributes to the cumulative effect.
Any medium comprises of 4 elements.
1) Character
2) Atmosphere
3) Reach and frequency
4) Cost
In addition to this, we should also realize that the “ value” contributed by the medium
also depends upon the – size of the advertisement or length of the commercial and the
position of the advertisement.
By the word “character”, we mean the objective characteristics of the medium; type of
coverage, seasonal implications etc. By “atmosphere” we mean the effect on the mind
or emotions of the mood and circumstances in which the advertisement in the medium
is perceived by the audience. We shall now see these two elements in detail.
Setting media objective is the second step in media planning. Media objectives are in
harmony with the advertising and the marketing plans. Thus while launching a new
product or repositioning an existing product, there are specific objectives which will
guide our media decisions. These objectives must be measurable. It facilitates
Co-ordination and evaluation once the campaign is over.
Media strategy expects media planners to be creative in using the media. The use of
the media should complement and supplement each other. The ad should be consistent
with the editorial environment of the media. The placement should be strategic. The
media’s creative potential is fully used.
The ad should provoke readers to look at it more than once. It should be engaging
enough, say incorporation of a crossword puzzle in the copy of the ad. We can use non-
traditional media like a Tamasha show or a magic-show. Media can be used to build
credibility.
Factors Influencing Media Strategy
a) Target Market Profile
b) Nature of the Message
c) Geographic Market Priorities
d) Timing of Advertising
e) Reach/Frequency/Continuity
Media Buying
Occurs once plan is approved
Buyers work with media representatives to negotiate final prices for the various activities
1. Budget: A choice of media will depend to a large extent upon the size of the
advertising budget. Certain media types may be too expensive for the funds available.
For example: the cost of national transmission over Doordarshan may be too high for an
advertiser. The cost of maintaining a neon sign cannot be afforded by small budget
advertisers.
3. Frequency v/s Reach. As explained in the earlier section, frequency and reach are
important considerations in the media plan. Frequency refers to the number of times the
advertiser reaches the same person, while reach refers to the total number of people
covered. The greater the frequency with which you reach the same person through
media selection, smaller the reach will be and vice –versa (assuming a limitation in the
size of the budget). An advertiser will need to know the quantitative data about media
audience in order to make more accurate frequency and reach decisions.
For example: If an advertiser uses radio, he may be able to afford to broadcast the
advertising jingle every 30 minutes, and this increases the frequency of the radio
listeners exposure to the advertised message. But the reach of this message is limited
and will not cover those who are not listening to the radio. With the same budget, the
advertiser can buy less radio time, place a few insertions in the print media and buy
some television time. This combination will reduce the frequency at which an individual
consumer is exposed to the advertised message but will increase its reach. Thus, there
is always a trade-off between these two considerations.
6. Flexibility: The ability of the media to adapt to changing and specific needs of
advertisers is flexibility. Certain media allows such flexibility with respect to the
advertised message, the geographical coverage and the ad budget For example: the
times of India group of publication may offer advertisers the flexibility of placing ads in
different editions of the paper. So if, for instance, Parle’s find that competitive activity
has increased in Delhi, it may use the Delhi edition of Times of India to combat
competitor’s activity. Doordarshan offers very little flexibility, as there is a lengthy
procedure of getting the storyboard for the TV commercial approved by Doordarshan.
7. Franchise Position: Advertisers using a particular medium over a period of time may
enjoy special franchise positions. Special page positions in magazines and newspapers
may be reserved for them. For example: The back page of Business India may be
booked by Bajaj Auto while the inside back cover of India Today may be booked on a
long term basis by Wills Filter Cigarettes.
8. Standard of Acceptance and Codes of Ethics: Most media vehicles have codes of
ethics that set the standards of acceptance. For example: advertising of cigarettes in
banned on Doordarshan and radio while liquor advertising is banned altogether in India.
Though the print media in permitted to use cigarette advertising, certain magazines do
not accept ads of harmful products. Femina has not accepted the ads of Ms- the
cigarette brand targeted at women but Savvy has published these ads.
9. Cost Per Thousand: This is the most important consideration while making media
decisions. Although the cost is considered while fixing the budget, the concept of cost
per thousand is the accepted norm for measuring the media effectiveness. The formula
for computing cost per thousand is equal to Price of the medium to the
advertiser/Delivered audience (in thousands).
This formula has certain limitations. The delivered audience may not be the same as the
prospective customers. Adjustments to arrive at the prospective customers are possible
but this is not always easy to compute. Secondly, there is no data available to find out
whether the delivered audience has actually seen or heard the advertised message.
11. The medium and Target Consumer Match: The media mix has to reach the target
consumer. It the advertiser wants to reach men between 25 and 55 who are
professional, the Economic Times will be obviously a more appropriate choice than
Femina. But sometimes matching consumer profiles with media characteristics
becomes a lot more difficult. For example: Media planners will find it difficult to decide
which kind of households can be reached by the Hindi feature film TV slot v/s the 9
O’clock serial slot. A thorough analysis of the target market will help in making this
match and will reduce wastage of media expenditure.
12. Language: In India this is an important consideration and depending upon which a
particular ethic group has to be reached a particular language newspaper, or television
and radio programme must be used.
13. Prestige of media: It is said that the prestige of the advertising medium is
transferred to the advertised product. When an ad appears in times of India, the image
of the newspaper is transferred to the product and this helps in building the brand
image. Sponsorship of prestigious programme such as the Oscar awards, Grammy
awards, World Cup matches, are also considered prestigious advertising opportunities.
14. The Editorial Environmental: Since the broadcast media , that is the radio and TV
media, are government controlled, they are not perceived to have independent editorial
policies. But the print media enjoys the freedom of press and each publication has its
individual editorial philosophy. The editorial environment in turn influences reader
profile. Advertisers would like to place their ads in publication having an appropriate
editorial environment. For instance, the ads of political parties have appeared in various
newspapers while the ads promoting brand name of liquor tend to use men’s magazines
as their vehicles.
15. Nature of the product or services and nature of the market to be covered:
Some products have niche markets and a special direct advertising medium will be
suitable for them. For example: Detergents for washing machines can be used only by
people having washing machines, but daily consumer products have a wider market
and hence may use mass media.
The geographical extent of the market has also to be considered. Is the market local,
national or international for example: The ads of Air India will appear both in national
media as well as international magazines and other media. But the ads of Indian
Airlines will probably use only national media.
16. Availability of Media Time and Space: Media time and space have to be booked
in advance. When an announcement is to be made immediately, the advertiser has little
choice but use the available media time and space. Most popular media slots have to
be booked months in advance. Media buying has become an important component of
media planning due to the cost constraints and increase in competitive activity.
Deciding on the geographical location: a company has to decide how to allocate its
advertising budget over space as well as over time.
TYPES OF MEDIA
Above-the-line media: press, TV, outdoor, posters, cinema and radio. The recognized
agencies get commission from these media.
Below the line media: those who do not give commission to the ad agency. Examples
are direct mail, exhibitions and sales literature.
MEDIA CLASSES/VEHICLES
Print media
Newspapers:
a) daily
b) Sunday
c) weekend supplement
Magazines:
(a) Consumer magazines: general interest or special interest.
(b) Business publications: trade publications, institutional publications, etc.
Electronic media
Outdoor media:
Transit advertising media
Other media:
Specialty media: t-shirts, caps,etc.
Direct marketing.
Direct advertising: direct mail.
Newspapers
There are several type of newspapers:
a) Daily
b) Weekly
c) Special interest
d) Evening, etc.
Each newspaper has its target audience. For example ECONOMIC TIMES targets
businessmen and the student community, INDIAN EXPRESS targets people who want
quality news, MID-DAY targets people with funky attitude, etc.
The marketers need to identify various target audiences and then use it as a medium of
communication.
System of tabloid inserts are gaining popularity. A multi page tabloid is inserted in
the newspapers and then is distributed by the news agencies along with the dailies.
Although the newspapers charge a fee, the fee is very nominal.
Reinforcement medium: the ads that appear in television hardly lasts for about 45
seconds. The brand features can be reinforced on the minds of the people through print
ads. This is because when the people read newspapers they tend to look at the
advertise very keenly. Thus they start building opinions about the brand. For instance,
the LG microwave ads were first shown on the television which was then followed in the
media.
Short life span: it only when the reader is reading the newspaper does he have a look
at the advertisement carefully. But after the newspaper is read then the person tends to
remember very little about the ad.
Quality of paper used: if the quality of the paper used is of bad quality then the print ad
appears in bad shape. This would downgrade the quality of the ad. Using better quality
paper can solve this. But the cost might increase. Some of the local language dailies
use very bad quality of paper.
Informal reading: newspapers are generally read casually. They are read in a hurry.
People might skip over an advertisement.
Clutter problem: sometimes the newspaper is so full of ads that the notice ability is
very low. In such a case the ad losses its value.
Magazines
Most magazines are weekly or fortnightly or monthly. They are in many ways different
from newspapers. The major difference being the class of people catered to. While
newspapers cater to the mass, magazines have a niche audience. For example TOINS
is circulated to 10 lakh people daily , while a magazine like BUSINESS WORLD has an
audience that has interest in knowing about the current business happenings. A
newspaper is read daily or on the day it appears while the magazine is read over a long
period of time.
Classes of magazines:
One classification is on the basis of size. Magazine may be of pocket size, standard
size, etc.
Another basis of classification is the type of readership. i.e. biz magazines, sports
magazines, etc.
Then comes the classification on the basis of frequency of publication. They are weekly,
fortnightly, monthly, etc.
Magazines could be information providers like INDIA TODAY, CSR, etc. or it could be
leisure type like SPORTSTAR, FILMFARE, etc.
Quality of paper: the quality of paper that is used in magazines is very good and the ad
looks very attracting. The colour and art is clearly reproduced.
Good supplement to TV: magazines reach special target groups which is not possible
only through TV ads. It provides more information to the interested audience.
High growth rate of special interest magazines have led to a spurt in the ads appearing
in the magazines.
Time limitation: for the ad to appear in the magazine the ad has to be planned in
advance which is very time consuming. Also high costs are involved for creating a
creative print ad.
Not suitable for small scale sector: the businessmen who don’t have large
businesses and those who concentrate on local markets find the magazine as an
unprofitable medium to advertise. It is only suitable for those businesses that have a
nationwide network and reach.
ELECTRONIC MEDIA
Television:
Television was introduced in India on September 15,1959. Previously only Delhi had TV
transmission center but later the centers spread across India. Now a days more and
more companies prefer to advertise on television because it creates a visual appeal and
also television enables demonstrative effect. It is because of television that the MNCs
have been successful. After LPG the reach of television has increased tremendously. It
has changed the way the rural people perceive things. The rural people have also
started using the new tech products and this has really led to the growth in the GDP.
Role model advantage: here the advertisers have celebrities as endorsers. These
celebs are role models of the youth and the youth always ape to be like them. To
associate them with the brand means that the youth will be tempted to buy that brand.
E.g. in case of FIAT PALIO it has become a hit car because of SACHIN’S image.
Reaches vast audience: the LPG era has led to a boom in television sales resulting
into high penetration levels. Even the smallest retailer watches TV and he may be lured
to stock a particular product.
Demonstration effect: advertising helps companies to show the demo effect so that
people know the uses of the product. This is useful to companies who are into white
goods business. E.g. the washing machine ads generally demonstrate as to how to use
the machine.
Demerits of TV advertising :
Time consuming to produce an ad: it is very time consuming to produce a TV ad. The
company has to hire a production company. After this is done there is a long procedure
of selecting the models, the location of shoot, etc. Therefore if not rightly produced the
ad looks crude.
TV ads alone do not suffice: in order to make the campaign successful TV ads have
to be supported with other media like print or radio.
TV ads should have high frequency: this is because by the time an ad for other
product appears the viewer forgets the ad for a particular brand. So it is necessary to
penetrate the minds of the viewer and create brand awareness.
Immobile medium: radio and other print media is portable and can be carried
anywhere. TV is fixed and impossible to carry places. It can penetrate only those places
where there is a TV.
Difficult to gain inquiries: the problem is that the television ads last only for a few
seconds. So it is difficult for the viewer to know about the product in that moment of
time. It is difficult for him to note the inquiry number in a spate of a second. For eg: very
few people remember the ASIAN PAINTS help line number.
Costly affair: it is very costly for producing a TV ad. Professionals have to be hired and
they charge high fees. The COLA giants pay more than a 10 million rupees to its
celebrities.
Statutory controls: the TV ads have to adhere to the I&B rules. Surrogate
advertisements have been banned. The ads of liquor companies have been banned.
Also some ads like the CLOSE-UP ad having MARC ROBINSON created furore.
Radio
Till recently, the importance of radio was not realized in a country like India. In fact
Radio as a medium has far greater importance than TV. It is the “real” mass medium.
Radio is very easy to use and does not require technical abilities. It is the least cost
form of communication. Radio was the medium that helped in spreading the messages
of various freedom fighters during independence. 90% of the rural India has access to
Radio.
Low cost medium of communication: radio is the least cost medium and it helps to
reach mass audience with various backgrounds. Also radio ads can be produced
quickly.
Low literacy rates mean that the people hardly read newspapers and radio is the only
medium that they can understand. They can’t afford a TV set. Therefore radio is the
most popular.
Disadvantages of radio advertising:
RJ needs training: it is very important that the Radio Jockey is trained enough to
deliver the ad. Sometimes the voice really matters. If the voice is irritating then there is a
chance that the campaign may flop.
No proper research available: no proper research has been available on the area of
radio listening. So there could be a problem for the marketers in the sense that they
might advertise on wrong channel at a wrong time.
Disadvantages:
1. Cannot reach the rich urbanites that move about in their own automobiles.
2. Direct marketing, cinema and miscellaneous media
3. Direct marketing is defined as any activity whereby you reach your prospect or
customer directly as an individual – or they respond to you directly.
4. Advertising can initiate a sale but it is only through DM that the sale is finally
made. DM also helps in maintaining customer relationships.
5. One time communication does not built a relationship. We have to get married to
our customers. This is possible largely due to DM. DM is affordable only when
the margins in the business can afford the cost of sustained contact. DM helps in
long term.
6. There is a huge opportunity for DM in India. DM may exploit new technologies
like E-mail, TV, etc. For DM to be successful the customer database has to be
really good. The pharmaceutical industry is most acquainted with this type of
marketing.
Cinema advertising is when the ads are shown in the movie theatres before the start of
the movie, interval and at the end.
For many years, the promotional function in most companies was dominated by mass
media advertising. Companies relied primarily on their ad agencies for guidance in
nearly all areas of marketing communications. Most marketers did use additional
promotional and marketing communication tool, but sales promotion and direct
marketing agencies as well as package design firms were generally viewed as auxiliary
services and generally used on a per project basis. PR agencies were used to manage
the organizations publicity, image and affairs with relevant publics on an ongoing basis
but were not viewed as integral participants in the marketing communication process.
Many marketers built strong barriers around the various marketing and promotional
functions and planned and managed them as separate practices, with different budgets,
different views of the market, and different goals and objectives. These companies
failed to recognize that the wide range of marketing and promotional tools must be
coordinated to communicate effectively and present a consistent image to target
markets.
EVOLUTION OF IMC
During the 1980s, many companies came to see the need for more of a strategic
integration of their promotional tools. These firms began moving towards the process of
integrated marketing communication (IMC), which involves coordinating the various
promotional elements and other marketing activities that communicate with the firm’s
customer. As marketers embraced the concept of IMC, THEY BEGAN ASKING THEIR
AD AGENCIES to coordinate the use of a variety of promotional tools rather than relying
primarily on media advertising. A number of companies also began to look beyond
traditional advertising agencies and use other type of promotional specialists to develop
and implement various components of their promotional plans.
Many agencies respond to the call for synergy among the various promotional tools by
acquiring PR, Sales Promotion, and direct marketing companies and touting themselves
as IMC agencies that offer one stop shopping for all of their clients’ promotional needs.
THE PROCESS OF DEVELOPING AN INTEGRATED MARKETING
COMMUNICATIONS PLAN
A. Internal analysis
Promotional department organization
Firm’s ability to implement a promotional program.
Agency evaluation and selection
Review of previous program results
B. External analysis
Consumer behaviour analysis
Market segmentation and target marketing
Market positioning
BUDGET DETERMINATION
Set tentative marketing communication budgets.
Allocate tentative budget.
DEVELOP INTEGRATED MARKETIN COMMUNICATOIN PROGRAM
Advertising
Set advertising objectives
Determine advertising budget
Develop advertising message
Develop advertising media strategy
Direct marketing
Set direct marketing objectives
Determine direct marketing budget
Develop direct marketing message
Develop direct marketing strategy
Interactive/Internet marketing
Set Interactive/Internet marketing objectives
Determine Interactive/Internet marketing budget
Develop Interactive/Internet marketing message
Develop Interactive/Internet marketing media strategy
Sales Promotion
Set Sales Promotion objectives
Determine Sales Promotion budget
Develop Sales Promotion message
Develop Sales Promotion media strategy
Public Relations/Publicity
Set Public Relations/Publicity objectives
Determine Public Relations/Publicity budget
Develop Public Relations/Publicity message
Develop Public Relations/Publicity media strategy
Personal Selling/Sales
Set Personal Selling/Sales objectives
Determine Personal Selling/Sales budget
Develop Sales message.
Develop selling roles and responsibilities
It has been argued that the concept of integrated marketing is nothing new, particularly
in smaller companies and communication agencies that have been coordinating a
variety of promotional tools for years.
And larger advertising agencies have been trying to gain more of their client’s
promotional business for over 20 years. However in the past, various services were run
as separate profit centers. Each was motivated to push its own expertise and pursue its
goals rather than develop truly integrated marketing programs. Moreover, the creative
specialists in many agencies resisted becoming involved in sales promotion or direct
marketing. They preferred to concentrate on developing magazine ads or television
commercials rather than designing coupons or direct mail pieces.
Proponents of the integrating marketing services agency (the one –stop shop) contend
that the past problems are being solved and the various individuals in the agencies and
subsidiaries are learning to work together to deliver a consistent message to the client’s
customers. They argue that maintaining control of the entire promotional process
achieves better synergy among each of the communications program elements. They
also note that it is more convenient for the clients to coordinate all of its marketing
efforts.-media advertising, direct mail, special events, sales promotions and public
relations- through one agency. An agency with integrated marketing capabilities can
create a single image for the product or service and address everyone from wholesalers
to consumers, with one voice.
But not everyone wants to turn the entire IMC program over to one agency. Opponents
say the providers become involved in political wrangling over budgets, do not
communicate with each other as well and as they should, and do not achieve synergy.
they also claim that the agency’s efforts to control all the aspects of the promotional
program are nothing more than an attempt to hold on to the business that might
otherwise be lost to independent providers. They note that synergy and economies of
scale, while nice in theory, have been difficult to achieve, and competition and conflict
among agency subsidiaries have been a major problem.
Many companies use a variety of vendors for communication functions, choosing the
specialist they believe is best suited for each promotional task, be it advertising, sales
promotions or public relations. Many marketers are of this view that, “why should the
organization confine itself to one resource when there is a tremendous pool of fresh
ideas available?”
EVALUATING ADVERTISING EFFECTIVENESS
1. Pre-testing
2. Post-testing
5Pre-testing: This is the test of the copy before it is given to the media.
The purpose of pre-testing is as follows:
1. To spot errors in the copy
2. To make communication more effective
3. To design the ad better
4. To reduce wastage in advertising
5. To ensure that the money is spent prudently.
b) Paired comparison.
In a Paired Comparison at a time two ad copies are compared. It is one-to-one
comparison amongst test ads. More than six ad copies can also be compared by this
method.
Every single ad is compared with all others, but only two (a pair) is considered at one
period of time. Sources are recorded on cards. They are summed up. The winner gets
the highest score.
The other ads are rated according to their scores after summation. It is easier
technique than order of merits. Till ten copies, there is good accuracy; which later
decreases. The number of comparisons one is required to make with the help of the
following formula:
3. Portfolio test:
Here some dummy ads are mixed with regular ads. They are then put in a portfolio. The
consumer samples each advertisements and judges, which is the best one. In case the
selected ad is the dummy one, then the regular ad is changed or modified in the manner
of the dummy ad.
2. Theatre test:
A set of captive audience is sent a questionnaire. Later they are sent free ads to view
the test ads in a theatre and then again are administered a questionnaire. It assesses
product, brand and the ad theme. The greatest advantage of theater tests is the control
over the context in which the ad appears.
Because of this, it is possible to attribute the recall to the test ad rather than
uncontrolled variation that plague the traditional tests. The downside with theater tests
is that it is a forced exposure method, which tends to make the processing of the ad
more artificial.
4. In-home projection tests: A movie projector screens the ads in the setting of the
consumer’s home. He is then questioned before and after the exposure. We can then
assess the strong and the weak points of the ads.
5. Clutter test
Commercials are shown with non competing control ads to determine attitude shifts and
detect weaknesses. In this Method of pretesting commercials are grouped with
noncompetitive control commercials and shown to prospective customers to measure
their effectiveness in gaining attention, increasing brand awareness and
comprehension, and causing attitude shifts
7Post-testing:
8This is the testing, which is done after the ad copy has come out in the media and the
audience has seen the advertisement.
9Post-testing typically involves interviewing readers to determine how many remember seeing a
particular ad, if they read it, and what they remember about it.
10 Post-testing measures the following factors:
Has the advertisement campaign result in sales?
Has it created memorability for the brand name?
Has it created positive image and a favorable attitude towards the company and the
brand?
How much advertising is necessary on a continued basis, to sustain the same level of
consumers’ interest in the brand?
Are the consumers convinced that the brand is superior of competitors
Perceived quality reflects the quantum of goodness felt by the consumer on buying it.
Associations that consumers make with the brand support brand equity. These
associations may be product attributes, a particular symbol, or even a celebrity
spokesperson.
There are many different definitions of Brand Equity, but they do have several
factors in common:
Monetary Value: The amount of additional income expected from a branded product
over and above what might be expected from an identical, but unbranded product. For
example, grocery stores frequently sell unbranded versions of name brand products.
The same companies produce the branded and unbranded products, but they carry a
generic brand or store brand label like Hawkins. Store brands sell for significantly less
than their name brand counterparts, even when the contents are identical. This price
differential is the monetary value of the brand name.
Intangible: The intangible value associated with a product that cannot be accounted for
by price or features. Pepsi and Coke have created many intangible benefits for its
products by associating them with film stars. Children and adults want to consume their
products to feel some association with these stars. It is not the ingredients or the
features that drive demand for their products, but the marketing image that has been
created. Buyers are willing to pay extremely high price premiums over lesser-known
brands, which may offer the same, or better, product quality and features.
Perceived Quality: The overall perceptions of quality and image attributed to a product,
independent of its physical features. Mercedes and BMW have established their brand
names as synonymous with high-quality, luxurious automobiles. Years of marketing,
image building, brand nurturing and quality manufacturing has lead consumers to
assume a high level of quality in everything they produce. Consumers are likely to
perceive Mercedes and BMW as providing superior quality to other brand name
automobiles, even when such a perception is unwarranted.
In short, Brand Equity is a set of assets and liabilities linked to a brand, its name and
symbol that add to or subtract from the value provided by the product or service to a
firm and/or to that of firm’s customers. So overall we can say Brand Equity incorporates
the ability to provide added value to your company’s products and services.
This added value can be used to your company’s advantage to charge price premiums,
lower marketing costs and offer greater opportunities for customer purchase. A badly
mismanaged brand can actually have negative Brand Equity, meaning that potential
customers have such low perceptions of the brand that they prescribe less value to the
product than they would if they objectively assessed all its attributes/features.
One of the best examples of Brand Equity is in the soft drink industry. Without a brand
name and all of the marketing money that has gone into, Coca-Cola would be nothing
more than flavored water. Due to the company’s long-term marketing efforts and
protection, enhancement and nurturing of their brand name, Coke is one of the most
recognizable brands in the world and Pepsi in India.
Brand fatigue:
“Brand fatigue” hits most companies when they become complacent, arrogant and start
milking their brands for all they are worth. Do not do it beyond a certain limit.
All greatest and best recognized brands tend to be long-lived. The best brands would
fall off their perches if they weren’t nurtured. The ‘Brands-anti-wrinkle formula’ is the
understanding of the changing consumer mind and reformulating brand strategies from
time to time while retaining the age-old ethical values.
The five most classic traps that brands conscious companies should avoid, are:
a) A brand can’t be much too late,
b) has to liberate itself enough not to miss an opportunity,
c) learn how to deal with consumer disconnect,
d) ensure that brand consistency is across all multiple touch points and
e) Move ahead from the fear of big bets.”
While the oldest and most trusted of brands need to continually evolve themselves as a
mechanism of process-building, they need to pull up their socks to the changing
lifestyles and definitions of consumer mindset.
Brand Personality
Based on the premise that brands can have personalities in much the same way as
humans, Brand Personality describes brands in terms of human characteristics. Brand
personality is seen as a valuable factor in increasing brand engagement and brand
attachment, in much the same way as people relate and bind to other people. Much of
the work in the area of brand personality is based on translated theories of human
personality and using similar measures of personality attributes and factors
Many of the world’s most powerful brands spend a great deal of time putting personality
into their brands. It is the personality of a brand that can appeal to the four functions of a
Person’s mind. For example, people make judgments about products and companies in
personality terms. They might say, “I don’t think that company is very friendly,” “I feel
uneasy when I go into that branch,” “I just know that salesmen is not telling the truth
about that product,” or “That offer doesn’t smell right to me”.
Their minds work in a personality driven way. Given that this is true, then how can a
company create a personality for its product or for itself? The answer lies in the choice
and application of personality values and characteristics.
2. Spirited, young, up-to-date, outgoing (Excitement). In the soft drink category, Pepsi
fits this mold more than Coke. Especially on a weekend evening, it might be enjoyable
to have a friend who has these personality characteristics.
Two elements thus affect an individual’s relationship with a brand. First, there is the
relationship between the brand-as person and the customer, which is analogous to the
relationship between two people. Second, there is the brand personality-that is, the type
of person the brand represents. The brand personality provides depth, feelings and
liking to the relationship. Of course, a brand-customer relationship can also be based on
a functional benefit, just as two people can have a strictly business relationship.
Brand Image
The perception of your product or your brand by the consumer. Variety may be the
spice of life, but not when it comes to marketing your business-especially when you’re
creating a brand image to set you apart from the competition.
The image basically expresses a way of a consumer thinks about the brand and the
feelings the brand arouses when the consumer thinks about it. On the basis of these
characteristics, which the consumer associates with the brand, the company can build a
competitive advantage for its brand.
We are able to research and describe the brand from various perspectives. We obtain
many different associations, ideas, benefits and people whom the consumer in some
way connects to brands, which need to be suitably and correctly interpreted. It is
important to define the key characteristics and values, which are connected to a specific
brand by the consumer. Relevant findings show results of long-term management of a
brand and represent key dimensions on which the competitive advantage of a brand is
based
Role of Public relation in developing corporate Image
Corporate image:
The image which is conjured up by mention of a company's name. This can be positive
or negative, weak or strong, and it is argued by some that it is the sole purpose of any
public relations campaign.
Corporations are not the only form of organization that create these types of images.
Governments, charitable organizations, criminal organizations, religious organizations,
political organizations, and educational organizations all tend to have a unique image,
an image that is partially deliberate and partially accidental, partially self-created and
partially exogenous.
The corporate name and logo must also be consistent with the overall corporate image.
If you wish to craft a scientific/technical/innovative corporate image you would not call
your company Mystic Sunchild, nor would you use a logo like the NBC peacock.
Likewise with advertising themes and distribution partners; they must also be consistent
with your overall corporate image. If, for example, you wish to create a luxury/high-end
corporate image, you should not distribute yourde products through Walmart nor use
slapstick advertising themes.
A successful corporate image must also be believable. That is, the image must be
relatively close to your actual behaviours to be credible.
Corporate image and identity needs constant bolstering as the process is dynamic. In its
efforts to gain commitment the PR makes commitment the PR makes a comprehensive
communication plan and gets into the act of managing the strategic asset
Today business and industry have new bottom-line – public acceptance, therefore PR
has to respond with a communication policy whose bottom line is credibility. In this
connection the corporate PR practices must meet the generally accepted standards of
public approval.
In brief corporate image refers to the image that a company has acquired with the public
whereas corporate identity refers to the image a company strives to achieve, in order to
build a reputation with its public.
In this context every company needs a mission. This mission should be the framework
for business and all its activities. The mission is the glue that holds the company
together. Here, the PR and its communication strategies come into focus. If the
objectives and mission of the organization have to be accomplished, the corporate body
must communicate short-term goals, long range objectives and even the total mission of
the organization.
The following is the check list for image communication factors for the corporate
PR .
1. Name of the organizations – divisions and subsidiaries.
2. The logo factor – symbols in use.
3. Advertising and promotion.
4. company publications –including annual reports and house journals
5. company assets –well maintained office production units
6. company packaging – labels and tags
7. company signs – at public places offices and production units
8. Company stationery –forms letterheads, cards etc.
Sales promotion
Sales promotion has been defined as:
a “direct inducement “ that offers distribution or the ultimate consumers with the primary
objective of creating an immediate sale.
Marketing communication activities, other than advertising, personal selling, and public
relations, in which a short-term incentive motivates a purchase.
“Sales Promotion is a Marketing Discipline that Utilizes a Variety of Incentive
Techniques to Structure Sales-Related Programs Targeted to Consumers, Trade,
and/or Sales Levels that Generate a Specific, Measurable Action or Response for a
Product or Service.”
4. Brand Proliferation: A major aspect of many firms marketing strategies over the
past decade has been the development of new products.
6. Short-term Focus: Brand managers use S P routinely, not only to introduce new
products or defend against competition but also to meet quarterly or yearly sales &
market share goals.
9. Clutter: The increasing problem of advertising clutter has lead to the need to use
consumer promotions as a way of attracting attention and interest to advertising. Sales
promotion offers such as coupons, contests and sweepstakes are often used to attract
attention to ads and increase consumers’ involvement with a marketer’s IMC program.
In-school promotions have evolved from just dumping products on kids to promotions
that are relevant to them. Today, they are educational and entertainment events
designed to make children more informed about brands and choices.
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Event Marketing
Marketing 3 - 51
Consumer oriented sales promotion
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the consumer and provide extra values as well as more product for the money. It can
also be defensive maneuver against a competitor’s promotion or introduction of new
brand.
6. Price-off
Price-off deals are offered right on the packaged through specially marked price packs.
Typically price-offs range from 10 to 25 percent off the regular price with the reduction
coming from manufacturer margin not retailers. It ensure that discount reaches
consumers.
7. Frequency Programs
Companies introduced continuity programs that offer consumers, the opportunity to
accumulate points for continuing to purchase their brands or service; the points can be
redeemed for gifts and prizes.
8. Event marketing
Event marketing is a type of promotion where a company or brand is linked to an event
or where a themed activity is developed for the purpose of creating experiences for
consumers and promoting a product or service. Marketers often do event marketing by
associating their product with some popular activity such as a sporting event, concert,
fair, or festivals. However marketers create their own event, to use for promotional
purposes.