ADVERTISING

Kotler and Armstrong:

"Advertising is any paid form of non-personal presentation and promotion of ideas, goods
and services through mass media such as newspapers, magazines, television or radio by
an identified sponsor".

FIVE MAIN STAGES IN A WELL-MANAGED ADVERTISING CAMPAIGN

Stage 1: Set Advertising Objectives

An advertising objective is a specific communication task to be achieved with a
specific target audience during a specified period of time. Advertising objectives fall
into three main categories:
(a) To inform - e.g. tell customers about a new product
(b) To persuade - e.g. encourage customers to switch to a different brand
(c) To remind - e.g. remind buyers where to find a product

Stage 2: Set the Advertising Budget

 Marketers should remember that the role of advertising is to create demand for a
product. The amount spent on advertising should be relevant to the potential sales
impact of the campaign. This, in turn will reflect the characteristics of the product
being advertised.
 For example, new products tend to need a larger advertising budget to help build
awareness and to encourage consumers to trial the product. A product that is
highly differentiated may also need more advertising to help set it apart from the
competition - emphasizing the points of difference.
 Setting the advertising budget is not easy - how can a business predict the right
amount to spend. Which parts of the advertising campaign will work best and
which will have relatively little effect? Often businesses use "rules-of-thumb"
(e.g. advertising/sales ratio) as a guide to set the budget.

Stage 3: Determine the key Advertising Messages

 Spending a lot on advertising does not guarantee success (witness the infamous
John Cleese campaign for Sainsbury). Research suggests that the clarity of the
advertising message is often more important than the amount spent. The
advertising message must be carefully targeted to impact the target customer
audience. A successful advertising message should have the following
characteristics:
(a) Meaningful - customers should find the message relevant
(b) Distinctive - capture the customer's attention
(c) Believable - a difficult task, since research suggests most consumers doubt the
truth of advertising in general

Stage 4: Decide which Advertising Media to Use

• There are a variety of advertising media from which to chose. A campaign
may use one or more of the media alternatives. The key factors in
choosing the right media include:

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(a) Reach - what proportion of the target customers will be exposed to the advertising?
(b) Frequency - how many times will the target customer be exposed to the advertising
message?
(c) Media Impact - where, if the target customer sees the message - will it have most
impact? For example does an advert promoting holidays for elderly people have more
impact on Television (if so, when and which channels) or in a national newspaper or
perhaps a magazine focused on this segment of the population?

Stage 5: Evaluate the results of the Advertising Campaign

The evaluation of an advertising campaign should focus on two key areas:
(1) The Communication Effects - is the intended message being communicated
effectively and to the intended audience?
(2) The Sales Effects - has the campaign generated the intended sales growth. This
second area is much more difficult to measure.

NATURE OF ADVERTISING
 paid form
 non-personal presentation and promotion
 ideas, goods and services
 through mass media
 an identified sponsor
 controlled
 persuasion
 neither neutral nor unbiased

SCOPE OF ADVERTISING
 scope for packaging any product through a very attractive manner
 showcase specialties through advertising
 involves a lot of capital and expertise
 stiff competition in the industry
 study of advertising agencies
 study of controlling bodies
 social and economic aspect
 advertising as a communication process
 involves study of media
 involves study of ad message

OBJECTIVES OF ADVERTISING
 trial
 continuity
 brand switching
 switchback
 inform
 persuade

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 remind
 create awareness
 develop interest
 educate
 reinforce

TYPES OF ADVERTISING
 Print Advertising – Newspapers, Magazines, Brochures, Fliers
 Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
 Broadcast advertising – Television, Radio and the Internet
 Covert Advertising – Advertising in Movies
 Surrogate Advertising – Advertising Indirectly
 Public Service Advertising – Advertising for Social Causes
 Celebrity Advertising
 Television advertising
 Radio advertising
 Online advertising
 Billboard advertising
 Mobile billboard advertising
 In-store advertising

TYPES :
FOR WHOM:
 Consumer advertising
 Industrial advertising
GEOGRAPHICAL COVERAGE
 National
 Regional
 Local
 National

MEDIA USED:
 Print
 Electronic
 Direct mail
 Outdoors

AIMS:
 FINANCIAL ADS
 PRIMARY Vs secondary demand
 Product or service
 Social messages
 Direct Vs indirect action

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SOCIAL ASPECT OF ADVERTISING
 Impact on society, values, lifestyles etc
 May lead to materialism- undue importance to material interests
 Bearing on consumer choice
 Too much persuasive
 Influences consumer welfare and protection
 Impact on living standard of society
 Affects cultural values of society
 Reflection of cultural values in advertising
 Ethics and truth in advertising
 Ad as an information providing source

ECONOMIC ASPECT OF ADVERTISING

 Advertising causes an effect on value of products & services-it ads to its value
 Add to price of the product/service
 Effect on consumer demand & consumer choice
 Effect on competition- creates barrier to entry for small companies
 Effect of advertising on production cost, distribution cost
 Helpful in market expansion

ADVERTISING AND PLC

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 • Introduction: The product is promoted to create awareness.
• Growth: Advertising spend is high and focuses upon building brand.
• Maturity: Producers attempt to differentiate products and brands are key
to this. Price wars and intense competition occur. Promotion becomes
more widespread and use a greater variety of media.
• Decline: More innovative products are introduced Profits are improved by
reducing marketing spend and cost cutting

ADVERTISING AS A COMMUNICATION PROCESS

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INTEGRATED MARKETING COMMUNICATION (IMC)

 Integrated Marketing Communication is more than the coordination of a

company's outgoing message between different media and the consistency of the
message throughout. It is an aggressive marketing plan that captures and uses an
extensive amount of customer information in setting and tracking marketing
strategy. Steps in an Integrated Marketing system are:
 Customer Database: An essential element to implementing Integrated Marketing
that helps to segment and analyze customer buying habits.
 Strategies: Insight from analysis of customer data is used to shape marketing,
sales, and communications strategies.
 Tactics: Once the basic strategy is determined the appropriate marketing tactics
can be specified which best targets the specific markets.
 Evaluate Results: Customer responses and new information about buying habits
are collected and analyzed to determine the effectiveness of the strategy and
tactics.
 Complete the loop; start again from 1st step.

IN SHORT IMC IS AN ATTEMPT TO COORDINATE VARIOUS MARKETING

AND PROMOTIONAL ACTIVITIES TO MAKE MARKETING
COMMUNICATION TO TARGET CUSTOMERS MORE EFFECTIVELY AND
MORE EFFICIENTLY

4 P's vs. 4 C's

 Not PRODUCT, but CONSUMER

 Not PRICE, but COST
 Not PLACE, but CONVENIENCE
 Not PROMOTION, but COMMUNICATION

MARKETING COMMUNICATIONS MIX

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AIDA

 AIDA is an acronym used in marketing that describes a common list of events

that are very often undergone when a person is selling a product or service:
 A - Attention (Awareness): attract the attention of the customer.
 I - Interest: raise customer interest by focusing on and demonstrating advantages
and benefits (instead of focusing on features, as in traditional advertising).
 D - Desire: convince customers that they want and desire the product or service
and that it will satisfy their needs.
 A - Action: lead customers towards taking action and/or purchasing.
Nowadays some have added another letter to form AIDA(S):
 S - Satisfaction - satisfy the customer so they become a repeat customer and give
referrals to a product.

AIDA MODEL

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Advertising Budget

Advertising Budget Process

 Set the marketing objectives for the budget term.

 Determine the role the advertising will play in achieving the objectives.
 Gather and analyze information needed to develop a program that will achieve the
agreed upon objectives.
 Constantly track the results in order to adjust the program to changing market
conditions, and to improve your company’s advertising effectiveness in the future
through more complete data.

Top down approach

Top management sets

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spending limit

Advertising budget set to

Stay within allocate
n limit

Methods for budget allocation

 Affordable method
 Arbitrary allocation method
 Percentage of sales method
 Competitive parity method
 Objective & task method

Factors to be kept in mind while deciding advertising budget

 Product life cycle stage
 Market share
 Intensity of competition
 Advertising frequency
 Level of product differentiation

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Administering the budget

ADVERTISING CAMPAIGN

► An advertising campaign is a series of advertisement messages that share a single

idea and theme which make up an integrated marketing communication (IMC).
Advertising campaigns appear in different media across a specific time frame.

► The critical part of making an advertising campaign is determining a champion

theme as it sets the tone for the individual advertisements and other forms of
marketing communications that will be used. The campaign theme is the central
message that will be communicated in the promotional activities. The campaign
themes are usually developed with the intention of being used for a substantial
period but many of them are short lived due to factors such as being ineffective or
market conditions and/or competition in the marketplace and marketing mix.
► An advertising campaign is an organized series of advertising messages with
identical or similar messages over a particular period of time.

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 ► It is an orderly planned effort consisting of related but self contained &
independent advertisements.
► Though the campaign is conveyed through different media, it has a single theme
& unified approach.
► There is a psychological continuity due to a unified theme.
► The physical continuity is provided by similarity of visuals and orals.

ADVERTISING CAMPAIGN: TYPES/BASIS

► Geographical spread:
 Local market campaign
 Entire region campaign
 National campaign
► Pioneering campaigns: introduce new products
► Competitive campaigns: emphasize competitive superiority to retain the present
market and to expand it either by increasing the products consumption or by
weaning the customers away from a competitive brand
Classification in terms of media:
► Direct mail campaign
► Newspaper campaign
► TV campaign etc
► On the basis of campaign’s purpose:
► Direct action campaign: where a customer is expected to buy a product
► Indirect action campaign
► Product promoting campaigns
► Corporate image promoting campaigns

ADVERTISING CAMPAIGN: TYPES

Campaign Type 1:
► THE WORD HOOK
► The word hook is a repeatable catch phrase from ad to ad. Great examples of
advertising campaigns using the word hook include Verizon's "Can you hear me
now?" created by Bozell/New York to convince the world that Verizon has the
best network.
► How effective was it? Consider that in July of 2003, a J.D. Power & Associates
survey ranked Verizon at the top of the list for wireless quality, while Alltel was
ranked number seven-even though they share the same network through a
nationwide roaming agreement.

Campaign Type 2:
► THE CHARACTER HOOK
► A character hook uses a hero, villain, or victim to embody a key attribute of a
brand. Great heroic character hooks include Ronald McDonald, a hero of
happiness created in 1963. Ronald helped McDonald's to own family fast food.
► How effective was this character? Consider that 96% of school children in the
United States can identify Ronald McDonald. Only Santa Claus is more
commonly recognized.

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Campaign Type 3:
► THE REPEATABLE THEME: A repeatable theme is a situation that plays out
again and again calling out the need for a company's product. Example of a
repeatable theme include the York Peppermint ads created by Cliff Freeman.
Consumers know the punch line that is coming. They love to see the set-up played
out in different situations. It is satisfying to be in on the joke, before it comes.
Repeatable themes make the target customer feel like they have the inside track.
They know how to play along and thus feel connected to your brand.

Campaign Type 4:
► CONSISTENT LAYOUT: A consistent layout uses a unique, design look and
repeats these elements at each touch point. This allows customers to easily
identify your company in a blink. The more distinct these elements are from your
competitors, the easier it is to stand out from the clutter.
► Great examples of consistent layout include the Continental ads, with the blue
globe, yellow trim, and white all caps headline. NW Ayer put that design on
everything from print ads to bag tags to cocktail napkins and helped Continental
become the number one airline in the world, as well as the most profitable.
Consistent layouts include Apple's iPod ads with dancer people on bright
backgrounds. The iconic ads helped make the iPod the number one MP3 player in
the world and helped Apple extend its brand from a computer company to a
consumer electronics company.

CAMPAIGN PLANNING

PARAMETERS OF CAMPAIGN PLANNING:

 Total advertising budget
 Media availability
 Consumer profile
 Product profile
 Campaign’s duration & its timing
 Advertising & marketing objectives
 Distribution channels

 Marketing environment including pressure groups & competitors

 Review of previous advertising effort
 Creative considerations
 New plans

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POINTS TO BE CONSIDERED WHILE PLANNING AD CAMPAIGN
► Identify the problem
► Budget
► Pre testing
► Target audience
► Media selection
► The language
► Visual & the copy
► Timing & duration
► Post testing
► Effect on sales

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Advertising strategies
► It describes how to achieve communication objectives.
► Two components:
► Creative strategy: describes what we are going to say (content) & how we are
going to say it (style)
► Media strategy: in which media & at what time message will be put across.

COMMON ADVERTISING STRATEGIES

► Ideal Kids: The kids in commercials are often a little older and a little more
perfect than the target audience of the ad. They are, in other words, role models
for what the advertiser wants children in the target audience to think they want to
be like. A commercial that is targeting eight year-olds, for instance, will show 11
or 12 year-old models playing with an eight year old's toy.

► Heart Strings: Commercials often create an emotional ambience that draws you
into the advertisement and makes you feel good. The McDonald's commercials
featuring father and daughter eating out together, or the AT&T Reach Out and
Touch Someone ads are good examples. We are more attracted by products that
make us feel good.

► Amazing Toys: Many toy commercials show their toys in life-like fashion, doing
incredible things. Airplanes do loop-the-loops and cars do wheelies, dolls cry and
spring-loaded missiles hit gorillas dead in the chest. This would be fine if the toys
really did these things.

► Life-like Settings: Barbie struts her stuff on the beach with waves crashing in the
background, space aliens fly through dark outer space and all-terrain vehicles leap
over rivers and trenches. The rocks, dirt, sand and water don't come with the toys,
however.

► Sounds Good: Music and other sound effects add to the excitement of
commercials. Sound can make toys seem more life-like or less life-like, as in a
music video. Either way, they help set the mood advertisers want.
 Cute Celebrities: Teenage Mutant Ninja Turtles sell pizza. Spuds McKenzie sells
beer. "Joe Cool" camel sells cigarettes. All of these are ways of helping children
identify with products either now or for the future
.
► Selective Editing: Selective editing is used in all commercials, but especially in
commercials for athletic toys like frisbees or footballs. Commercials show only
brilliant catches and perfect throws. Unfortunately, that's not the way most
children experience these toys.

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► Family Fun.: "This is something the whole family can do together!" or "This is
something Mom will be glad to buy for you." Many commercials show parents
enjoying their children's fun as if the toy will bring more family togetherness.

► Excitement!: Watch the expressions on children's faces. Never a dull moment,

never boring. "This toy is the most fun since fried bananas!" they seem to say.
How can your child help thinking the toy's great?

► Star Power: Sports heroes, movie stars, and teenage heart throbs tell our children
what to eat and what to wear. Children listen, not realizing that the star is paid
handsomely for the endorsement.

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