Importance of Advertising


“Advertising is telling and selling”

Though it is one of the several functions
of marketing, it has taken the form of an
independent discipline.

The Meaning of Advertising


The term originates from the Latin “adverto”, which
means to turn round.

Advertising thus denotes the means employed to
draw attention to any object or purpose.

“It is a paid form of non personal presentation an
promotion of ideas, goods or services by an
identified sponsor.”

Through advertisement, the advertiser intends to
spread his ideas about his products among this
customers and prospects.

Popularization is the basic aim of the advertising
Activity

Key Components of the Advertising Job


Decide the advertising objectives to be
accomplished

Determine the target audience at whom the
message is to be aimed

Decide the advertising appropriations

Select the media

Construct the actual advertisement in the
pretest its efficiency

Coordinate the advertising effort with the rest of
the promotional Programmes
Four Major Decision Areas

Deciding the Advertising Objectives

Deciding the Budget

Deciding the Copy

Deciding the Media

Deciding the Advertising

Objectives

Objectives are essential because it helps the marketer
know in advance what they want to achieve and it also
helps ensure that they are proceeding in the right
direction

Goals are also made real through objectives leading to
effective development of advertising Programmes for
meeting the objectives.

As Advertising became a business task it was imperative
that it was expected to yield results proportionate to the
effort and cost involved.

Two distinct schools of

thought

What should be or what could be the objectives of
advertising?

One school has it that advertising must bring in more
sales and therefore advertising objectives should
certainly include sales growth.

The other school feels that advertising is about
communication and therefore goals should be intended
to shape awareness and attitudes of consumers.

“Advertising that does not sell is a waste” –David
Ogilvy

Conflict Remains: Communicating certain ideas Vs
Direct Sales Task role

Four Sets of
Constructs/Themes

The behavioral constructs e.g.. Trial
purchases and store visits

Attitude; Attitude change and attitude
measurement

Awareness; creating awareness of new
products and ideas

Image creation and positioning (or
reinforcing)

Areas of Ad Objectives

Introduction of new products in the market

Expansion of the market for the existing products/brands

Building a long term consumer franchise for the firm

Countering Competition

Reminding Customers

Reassuring the customers by removing post purchase dissonance

Building up brand image and company image

Aiding the total selling function by taking the customer through all the steps from
awareness to purchase involved in the selling process

Closing an immediate sale (Clincher ads)

Supporting other sales promotion activities

Stimulating impulse buying

Enthusing the channel to stock the product

Supporting and supplementing the salesman’s effort

Supporting and supplementing the dealer’s selling effort

Advertising
How Advertising WorksHow Advertising WorksHow Advertising WorksHow
Advertising Works

AttentionAttention

AttentionAttention


InterestInterest


InterestInterest


DesireDesire


DesireDesire


Action!

AIDA (Awareness, Interest,

Desire, Action)

The AIDA sequence is conceptualized by
Strong (1925)

Here the consumer is moved along a linear
continuum of internal states from
unawareness to awareness

Then interest is elicited and desire (for the
brand) is aroused
.

Finally, the consumer is stirred into action
.

Linear Communication and the

Hierarchy of Effects

Theories reflect the methods and assumptions of
cognitive psychology.

Analogy is drawn between the information
processing of computers and that of humans

These research traditions have been drawn on by
models of advertising persuasion

The consumer’s resistance is broken by an
accumulation of advertising effects hence the
expression “hierarchy of effects”

The consumer processes information like a
computer sequentially according to rules

Hierarchy of Effects

The hierarchy of effect represents “compounding
probabilities” (Percy et al. 2001)

It is also criticized on the grounds that it conceives
of advertising consumption as an essentially dyadic
process transmitted through a media channel to an
individual viewer and consumed in social isolation

A further criticism is that it represents only high
involvement purchases: many or most purchases
are spontaneous and do not engage consumers in
such rational processing

Social Process Vs Emotional

Process

Ineluctably social process (Ritson and Elliot,
1999) – we do not generally view ads in an
experimental booth-our interpretation of them is
normally framed by the social context in which
we encounter them.

Elliot, 1998; Holbrook and Hirschman, 1982 –
Subsequent models have incorporated stronger
elements of consumer emotionality into the
persuasion process to reflect the often irrational
and quirky motivations behind consumer
behavior.
Cognition

Cognition (Thinking) refers to the rational appeal of advertising as for example, a motor
car ad which includes data on engine performance or utility features.

The affective stage refers to the emotional response of the consumer to an ad. Not only
does the ad seek to engage with the consumer on a rational level by emphasizing product
benefits; it also tries to elicit a positive emotional response with pleasing imagery and
alluring symbolism.

Motor car ads typically feature the engine and other product data plus a carefully shot
picture of the car and its occupants in a pleasing setting.

The emotional response is: desire
, triggered by identification. Finally conation refers to action: the combination of rational
and emotional appeal
in the same ad might act persuasively and motivate a purchase response.

Advertising
How Advertising WorksHow Advertising WorksHow Advertising WorksHow
Advertising Works

Some things we know aboutSome things we know about people. people.

Some things we know aboutSome things we know about people. people.

““People read what interests them, People read what interests them,
sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage)

People are strategicPeople are strategic - they look out for - they look out for
their own best interests.their own best interests.

People arePeople are bombarded with messages bombarded with messages

A key concern is getting through clutterA key concern is getting through clutter

People (and advertising) work from People (and advertising) work from
bothboth logic logic and and emotion

The Linear Model of

Communication
SENDER ENCODE MESSAGE DECODE RECEIVER
NOISE
NOISE

Limitations of Linear Model


It is easy to interpret in such a way that meaning and message are understood to be
synonymous. This risks misconstruing the interpretative possibilities.

Oversimplification of the customer’s cognitive engagement with advertising by
emphasizing a singular message that has one unproblematic meaning.

The advent of parallel processing: the assumption that computers and human brains can
process one bit of data at a time as been challenged by more complex models

The implication that explicit attention must be given to an ad is erroneous.

The linear model of communication with its sequential processing translates conveniently
into a model of persuasion if these stages are replaced with attitudinal or behavioral states
(AIDA). A lot of research goes on in measuring these states as they are an indicator of the
likelihood of purchase (and therefore an indicator of success of the advertisement
campaign). Thus these are necessary conditions for advertising to achieve its marketing
goals but not sufficient. Eg. A consumer may be aware of ad or may even like an ad but
that does not mean he will buy the product.


The Lavidge-Steiner The Lavidge-Steiner
Learning ModelLearning Model

The Lavidge-Steiner The Lavidge-Steiner
Learning ModelLearning Model
Advertising
How Advertising WorksHow Advertising WorksHow Advertising WorksHow
Advertising Works
Awareness
Knowledge
Liking
Preference
Conviction
Purchase

Begins withBegins with Awareness Awareness

Moves toMoves to Conviction Conviction
and and PurchasePurchase

Begins withBegins with Awareness Awareness

Moves toMoves to Conviction Conviction
and and PurchasePurchase

NOTE: Process may be NOTE: Process may be
quite rapid and you quite rapid and you
may try before being may try before being
totally convinced

Key Concepts
The Single Biggest Thing:

Advertising dollars Advertising dollars have greathave great “elasticity”“elasticity”

Planning and implementingPlanning and implementing the Right Advertising
the Right Advertising

is usually critical for success in the marketplaceis usually critical for success in the
marketplace

The Wrong Advertising
The Wrong Advertising
is usually worthlessis usually worthless

AdvertisingAdvertising can be can be The Single Biggest Thing
The Single Biggest Thing

It can probably impact sales It can probably impact sales more than any other
more than any other
element of the marketing mix
element of the marketing mix
..

And … it isAnd … it is the most fu

Key Concepts
Campaigns:

Origin of termOrigin of term

Origin of termOrigin of term

Fr. campagne, It. campagna - open country
suited to military maneuvers

Campaign
- a series of military operations with
a particular objective in a war

Campaign
- a series of organized planned
actions with a particular purpose, as for
electing a candidate.


Advertising CampaignsAdvertising Campaigns

Advertising CampaignsAdvertising Campaigns

Structured andStructured and
sequential sequential
activitiesactivities

An imaginative An imaginative
re-integration of re-integration of
new and existing new and existing
factorsfactors

Shared objectivesShared objectives
and strategies

Plans & Strategies:


Organized Actions and…Organized Actions and…

““Imaginative Reintegration”Imaginative Reintegration”

Plans & Strategies are a combination of:Plans & Strategies are a combination of:

Tightly organized planned actionsTightly organized planned actions

Unique strategic configurations Unique strategic configurations

Plans may contain strategies Plans may contain strategies

Strategies need plans to be implemented

Key Concepts
Plans & Strategies:

Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)

Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)
““In business as on the battlefield, the object of In business as on the battlefield, the
object of
strategy strategy
is to bring about the conditions most favorableis to bring about the conditions most
favorable
to one’s own side.to one’s own side.

In strategic thinking , In strategic thinking ,

one first seeks a clear understanding one first seeks a clear understanding
of the particular character of each element of a of the particular character of each element
of a
situation, situation,
and then makes the fullest possible use and then makes the fullest possible use
of human brainpower to restructure the elementsof human brainpower to restructure the
elements

” Key Concepts
Plans & Strategies:

Here’s a graphic representation…Here’s a graphic representation…

Here’s a graphic representation…Here’s a graphic representation…
Media Strategy
To be determined
Creative Strategy
To be determined
Market Strategy/MediaTarget audience W 18-49
Market Strategy/Creative
Establish brand as superior
Media ObjectiveDeliver Advertising toTarget audience W 18-49
Creative Objective
Establish brand as superior
Marketing Objective
S

Key Concepts
Plans & Strategies:

Who’s going to manage all of this?Who’s going to manage all of this?

At the client, Director of MarketingAt the client, Director of Marketing

Responsible for MarketingResponsible for Marketing

Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and
Budget

Agency is responsible for AdvertisingAgency is responsible for Advertising

Good agencies seek to do this work for their clientsGood agencies seek to do this work
for their clients

At the agency, Account Managers:At the agency, Account Managers:

They are the link to the clientThey are the link to the client

They develop strategy - or lead developmentThey develop strategy - or lead development

They manage the resources of the agencyThey manage the resources of the agency

and, very often, they write the Pla

Key Concepts
Plans & Strategies:

Agencies turn strategies into ideasAgencies turn strategies into ideas

And they turn those ideas into adsAnd they turn those ideas into ads

Creative people actually make the adsCreative people actually make the ads

Copywriters and art directorsCopywriters and art directors

Agencies turn plans into campaignsAgencies turn plans into campaigns

Clients and account management determine needs and Clients and account management
determine needs and
budgetsbudgets

Media departments turn budgets and strategies into Media Media departments turn
budgets and strategies into Media
Plans