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In effect, promotion is the last mile in the completion of the total marketing task (may be the first one, in some cases)
All effort expended on creating an offering, pricing it right and making it available is wasted until and unless the customers buys the same. Promotion has a major role in this task
The price may convey quality, value for money, affordability Wide or narrow availability can convey popularity or exclusiveness etc
This communication usually forms a base on which further promotional communication is based
In case of new products, promotional communication may reach customers before they have a chance to see the product or know its price However even in these cases, promotional communication has to take into account what the product, price or place parts of the mix will communicate with customers
Each has a role to play in the process of communication of information from seller to customers and in persuasion Inclusion of individual elements depends on communication objectives and tasks to be carried from time to time
The Integrated Marketing Communication approach is therefore used to ensure that each element is orchestrated to convey the desired message with maximum efficiency
Advertising
Advertising has been defined in various ways e.g.
Advertising is the non-personal communication of information, usually paid for and usually persuasive in nature, about products, services or ideas by identified sponsor, through various media Advertising is a form of communication to call the public's attention to a business, usually for the purpose of selling products or services, through the use of various forms of media, such as print or broadcast notices Paid form of a non-personal message communicated through the various media by industry, business firms, nonprofit organizations, or individuals which is persuasive and informational and is designed to influence the purchasing behavior and/or thought patterns of the audience.
Advertising.2
Wikipedia defines advertising as a form of communication for marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action.
Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. This definition also draws attention to the fact the advertising is meant to address a plural audience and is not one to one (personal) communication Even in direct marketing the same message is sent to many persons through a media such as direct mail, e-mail etc. Advertising is paid communication (the media carrying it charges the advertiser for its service)
Advertising.3
Advertising is thus a one way from of communication in which, the communicating party (advertiser) utilizes some media to convey a commercial message to a passive audience The message seeks a commercial response (usually a purchase) either immediately or within a short period of time. It solicits the audience members (buyers) to take action and purchase the goods The word advertising is derived from Latin words ad vertere which means to turn toward. Advertising is thus considered to be a communication which turns the recipients attention or interest towards what the advertiser is communicating
History of advertising
Advertising has been around since historical times in different forms Most probably the oldest from of advertising seems to be out of home advertising
Outdoor wall paintings have been traced back up to 4000 BCE in India Advertisement on Papyrus have been found in ancient Egypt, Greece etc (Egyptians used it to make sales messages and wall posters) It has been found on the walls of ancient buildings in Pompeii and Arabia
In the middle ages merchants put up signs displaying a picture of what they sold (e.g. a shoe to represent a shoe seller) and used town criers to shout out a message to the public about their location (this was needed as most people could not read)
History of advertising.2
Thomas J. Barratt from London has been called "the father of modern advertising in the 19th. Century Working for the Pears Soap company, Barratt created an effective advertising campaign for the company products, which involved the use of:
Targeted slogans, images and phrases. One of his slogans, "Good morning. Have you used Pears' soap?" was famous in its day and well into the 20th century. Under Barratt's guidance, Pears Soap apparently became the world's first legally registered brand and is therefore probably the world's oldest continuously existing brand. (unlike Chyawanprash which is now not a generic product)
History of advertising.3
Barratt is credited with many of the crucial ideas that lie behind successful advertising and these were widely circulated in his day.
He constantly stressed the importance of a strong and exclusive brand image for Pears and of emphasizing the product's availability through saturation campaigns. He also understood the importance of constantly reevaluating the market for changing tastes and mores, stating in 1907 that "tastes change, fashions change, and the advertiser has to change with them. An idea that was effective a generation ago would fall flat, stale, and unprofitable if presented to the public today. Not that the idea of today is always better than the older idea, but it is different - it hits the present taste.
As the economy expanded across the world during the 19th century, advertising grew alongside.
In the United States, the success of this advertising format eventually led to the growth of mail-order advertising
History of advertising.4
In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney B. Palmer established the roots of the modern day advertising agency in Philadelphia. (By some accounts the first agency William Taylor started in 1786 in UK, but it also did not create ads)
In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then resold the space at higher rates to advertisers. The actual ad the copy, layout, and artwork was still prepared by the company wishing to advertise; in effect, Palmer was a space broker.
The situation changed in the second half of the 19th. century when the advertising agency of N.W. Ayer & Son was founded in 1869 in Philadelphia in the US. Ayer and Son offered to plan, create, and execute complete advertising campaigns for its customers. Before the end of the century itself, the advertising agency had become the focal point of creative planning, and advertising was firmly established as a profession
History of advertising.5
In the early 20th. Century, advertising increased dramatically in the United States as industrialization expanded the supply of manufactured products. In order to profit from this higher rate of production, industry needed to recruit workers as consumers of factory products. It did so through the invention of mass marketing designed to influence the population's economic behavior on a larger scale. In the 1910s and 1920s, advertisers in the U.S. adopted the doctrine that human instincts could be targeted and harnessed "sublimated" into the desire to purchase commodities The tobacco industry was one of the firsts to make use of mass production. The tobacco companies pioneered the new advertising techniques to create positive associations with tobacco smoking to be able to sell the increased produce The advertising industry was also became one of the first to offer women employment (as women do purchasing, their insights helped)
History of advertising.6
Over time new media became available in the 20th century, beginning with the Radio in 1920s Television became available in the 1950s. Between 1960 to about the early 1990s is the golden period of mass media advertising when few channels across the nation enabled advertisers to cover most of the target audience Two developments have completely disturbed this model
Growth of local (FM) radio stations and introduction of cable TV, which has lead to a dramatic increase in number of channels available, thus splitting the audience into smaller and smaller fragments Growth of internet which permits interactive communication as well as one on one communication Broadcast has become narrow cast or individual messaging
However the task of individual advertisements or campaigns and hence their purpose can differ depending on the situation in the marketplace and of the company itself
The desired result can simply be increasing name recognition or modifying the image projected Objectives vary depending on the industry and market the business is in e.g.
In FMCG industry advertising has greater role than say B2B industry because of the large number of consumer who are easier to reach through media based communication than personally and vice-versa
Internationally, the largest ("big four") advertising conglomerates are Interpublic, Omnicom, Publicis, and WPP. Recently Omnicom + Publicis have announced a merger. It will have a revenue of US $ 22.7 billion )
It continues to be dominated by the print media which accounts for Rs. 150 billion (or 45.8%) followed by TV These figures exclude expenditure on promotion and POP advertising etc.
Social media, email and video advertising constitute 13% (Rs 300 crore), 3% (Rs 68 crore) and 7% (Rs 150 crore) of the online advertising market, respectively.
Media owners who provide content for information, education and entertainment of their respective audiences
Media owners intersperse advertisements within the editorial content, thereby providing advertisers a captive audience Media owners charge the advertisers money for providing this captive audience Usually the major share of expenditure spent on advertising campaigns goes to media owners
Media buying role: Negotiate with media owners on behalf of clients to get the lowest possible rate for placing advertisements Account planning role: [a more internal to agency role the primary function is to find consumer truth and insight (through research if needed)]
The objective is to help the creative teams, create work that is not only entertaining and highly memorable, but which is relevant to the consumer and effective in the marketplace Good account planning is useful to client in terms of providing consumer insights