ADVERTISING

What is advertising?

Advertising is defined as any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor. Lets understand:

Paid Form Non-personal Identified Sponsors

Non-Personal

Two basic way to sell anything:

Personal: Buyers & Sellers get together. They both have time to spend and discuss on the product, ask question get answer and examine. More interactive process. Non-Personal: Non-personal does not exhibit the above characteristics.

Paid Form

If an ad is created and placed in the media, the costs of creation and time or space in media must be paid for. This is a major area in which advertising differs from PR

Identified Sponsors

This means whosoever is placing the ad, tells the audience who they are. There are two reasons:
Legal requirement: Legally, a sponsor must identify itself as the sponsor of the ad or its content.

Good sense: Good sense to identify itself in the ad, if it does not then competitors can take advantage or consumer can be misguided.

Approaches in advertising
Broadband Media

Demassification
Narrowband Media

Give example of each from various TV Channels? To understand the concept better

The concept of advertising trinity

Presentation Monday 07/03/11

Advertising Planning and Decision-making

Define the Goals Select the audience Set the Objectives Use Graphics

Purpose of Advertising

Increasing Brand Awareness Reinforcing existing behavior Improving distribution Changing perception Imparting information Developing attitudes Inducing action beneficial to the advertiser

Single-minded proposition and substantiation

This is the single most motivating differentiating factor one can think of. These include:

Product Characteristics- ingredients, texture Price characteristics- lasts longer, cheaper Image Characteristics- quality, good value, friendly Direct comparison with competitors How the product is made- eco-friendly

5 M of Advertising

Mission.(Objective) Money..(Budget) Message(Communication) Media...(Placement) Measurement...(Evaluation)

Objectives of Advertising

The objective of a advertising is a specific communication task to be accomplished with a specific target audience during a specific period of time.

Based on objectives we have following types of advertisement:

Informative advertisement Persuasive advertisement Comparison advertising Reminder advertising Reinforcement advertising

Types of Objective

Broad Objectives

To enhance organizational effectiveness To generate greater profits To improve competitive positions To increase sales To increase the level of awareness of a given product from current level To generate responses

Specific Objectives

Sub-objectives

To create desire To improve the image of product To offset the effects of a price variation

AIDA Model (E.K Strong-1925)

AWARENESS

INTEREST

DESIRE

ACTION

ATR Model (Ehrenberg-1988)

AWARENESS

TRIAL

REPEAT

DAGMAR Model (Russel H Colley)

Defining advertising Goals for Measured Advertising Results

UNAWARE

AWARE

COMPREHENSION AND IMAGE

ATTITUDE

ACTION

Important Aspect of DAGMAR

Purpose of advertising is to cause a change of mind leading toward purchase. Advertising goal should be specific, clearly written, measurable task involving a starting point, a define audience and fixed time period. Considered adv as Communication task not sales task.

ADVERTISING BUDGET

There are 5 specific factors on which advertising budget is set:

Stages in the Life Cycle Market Share and Consumer Base Competition and clutter Advertising frequency Product substitutability

Common Methods to set Adv Budget

Affordable Method Percentage of Sales Method Percentage of Profits Method Competitive Parity Method Objective and Task Method

Advertising Elasticity

Marketing Communication Mix

Advertising Sales Promotion Events & Experiences Public Relation and Publicity Direct Marketing Interactive Marketing Word of Mouth Marketing Personal Selling