Internal Assessment (50 marks)

Class Exercise- Group (10 marks) Written Test (10 marks) Article Review - Group(8 marks): Review one recent article/ research paper on advertising. Presentation (5

marks), Hard Copy (3 marks)

Ad Evaluation Group (17 marks): Evaluate one current advertising campaign of your choice. Presentation (10 marks), Report (7 marks) Attendance and class participation (5 marks)

Marketing Communication

Channel Sender
Encoding

Message

Receiver
Decoding

NOISE

Feedback

Response

Communication Process

Marketing Communication
Marketing communication occurs in relation to markets where messages are sent to target audience in the context of a product.

Marketing communication is more than just applying the simple fundamentals of communication process and has its specialized nature. Marketing communication involves distinct phases and is a gradual process.
Information response models are the hierarchical models which recognize that there are number of distinct phases in communicating with others.

IMC- Concept
IMC is the result of changes that have taken place in the world of advertising and other promotion tools. Marketers started transferring their money from advertising to other promotion tools in order to have better return on their investment.

Reasons for growth of IMC

Cluttered media environment Fragmentation of media Media cost Technological advancements Client expertise Increasing number of me-too-products Increasing power of retailers Increasing global marketing Increasing pressure on bottom line

Components of IMC
The critical components of IMC are: 1. The communication efforts should be directed at consumers in order to affect behaviour. 2. An outside-in approach should be utilized, when developing a communication strategy. 3. A well-established relationship between the company and the customer is necessary.

4. To deliver a message correctly all communication activities should be included with contact points integrated into the strategy.

5.

To create a competitive brand, coordination between the communication disciplines is needed.

Barriers to the implementation to IMC

Power, coordination, and control issues

Client skills, centralization, and cultural issues

Agency skills and general time/resource issues Flexibility/modification issues IMC measurement difficulties Unclear positioning at corporate level Need for cross-disciplinary managerial skills

 Fear of change
Hierarchical organization structure

Need for single budgeting process and shared performance; lack of database development
IMC must continually demonstrate how the mix on non-traditional media creates more impact at less cost Mind-set specialization, history, tradition, experience

Advertising

AN ADVERTISEMENT is a paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor

Advertising is a business activity

Employs creative techniques

Promote ideas, goods and services in a manner consistent with the achievement of the advertisers objectives, the delivery of consumer satisfactions, and the development of social and economic welfare

Importance of Advertising
As a promotional activity
As a marketing activity As a business activity

Major Advertising Decisions

Selection of target audiences

Setting advertising objectives

Setting advertising budget Deciding about message Deciding about media Selection of advertising agency

Evaluating advertising effectiveness

Types of Advertising
Basis of Classification
Audience Intended
Geographical Spread Level of Demand

Advertising Object
Advertising Purpose Advertising Media Miscellaneous

Target market Selection

Target market is the focus of firms entire marketing effort,
which it may think of serving profitably through appropriate marketing and communication strategies

Steps
Identification of some unfulfilled need, Determination of market segment with the unfulfilled need, Targeting the specific segment; and Positioning ones product through appropriate marketing strategy.

Sales as Advertising objective Lagged Effects of Advertising on Sales

 Distinguish between Marketing Objectives and Advertising

Objectives An Advertising Objective is a Communication Objective An Advertising goal is a specific communication task, to be accomplished among a defined audience to a given degree in a given period of time. Define the specific communication task and its stage

Setting Advertising Budget

 Using marginal rules of economic theory

Cost Oriented, Communication-Oriented, Sales-Oriented

Cost Oriented
Affordable Break-even Percentage of sales

Communication Oriented
Task and objective based on contact, which is defined in terms of reach and frequency Perceptual impact based on a measure of probably impact on attitude.

Steps in Objective and Task Method

Determine objectives Define variables to be measured Specify task and determine cost Conduct programs Evaluate and review

Perceptual Impact
Perceptual impact budget communication objectives. is based on psycho-sociological

To achieve these objectives, conditions are defined in terms of the means used for example: Media, Reach, Repetitions etc. Next, the cost of the various activities is calculated and the total determines the necessary budget. What is sought here is an impact on one of the three components of attitude cognitive, affective or behavioural. Advantage: Helps in providing assumptions about the relationships between money spent, exposure, perceptions, trial and repeat purchase.

Sales Oriented
1. The Vidale and Wolfe advertising model (1957) Expresses the following relationship between sales (in units or value) and advertising expenditure: ds/dt = ().(A). (S -s / S) - (1-).(s)

where, ds/dt = rate of increase of sales at any time t = sales response constant when s=0 A = rate of Advertising s = company or brand sales S = product category saturation level = sales retention rate

2. Littles ADBUDG Model (1970)

The ADBUDG model has the following mathematical expression: MS(t) = MS(min) + {MS(max) - MS(min)} . Adv / +Adv where, MS(t) = initial market share MS(min) = minimum market share with zero advertising MS(max) = maximum market share with saturation advertising Adv = effective advertising (adjusted for media and copy effectiveness) = advertising sensitivity coefficient = constant

Factors Influencing Advertising Budget

Product Related Stage in product Life Cycle Product Differentiation Product Substitutability Durability of Product Value of Product Product Quality Market Related Nature of Market Demand Nature of Competition Size of Market Share

Advertising and Promotion Related Factors Role of Advertising in Promotion Mix Advertising Objectives Advertising Frequency Availability of Funds Promotion Strategy Media Decisions

Others Distribution Strategy Overall Business Strategy Uncontrollable Environmental Factors

Media Decision

Basic Media Concepts

Planning and Buying

Reach and Frequency Impressions, Circulations, Ratings

Media Strategies
Formulation is in terms of: Media mix decision Matching of media with target market to maximise

exposure and minimise waste

Media use

Media Effectiveness
Reach Frequency Gross Rating Points Continuity

Media Planning
It involves: Deciding about selection of appropriate media for carrying advertisers message to target markets,

Deciding what to buy, and how much to spend in each

medium Scheduling when the advertising is to run

Changing Media Environment

New media forms
Media fragmentation Need for using multiple media forms and providing

integrated communication
Problems with terminologies Problems with data base and its measurement

Media Objectives
Translating marketing objectives and strategies into goals
that media can accomplish Involves review of internal and external factors Answering Whom Where When

- requires finding out best prospects -requires search for areas or segments where the most potential lies - requires selection of time period during the year for exposure to take place.

Media Types

TELEVISION

Intrusiveness Broad Reach Cost efficient Impact Influence behaviour

POINTS OF WEAKNESSES Expensive Clutter Non-selective audience Fleeting exposures Inflexibility Problem of zipping and zapping

PRINT MEDIA
NEWSPAPER: POINTS OF STRENGTH

Gives market coverage to the product Aids in comparison shopping Builds positive consumer attitudes Flexibility Provides link between national and local advertiser

POINTS OF WEAKNESSES Short life span Clutter Limited coverage of certain groups Poor reproduction quality Small pass along readership (unlike as in the case of magazines).

Qualitative Factors of Media Choice

Marketing and Advertising Objectives Competition situation Advertising Budget Brand Dynamics Target Audience Characteristics Media Environment Media Fragmentation Ad Avoidance Creative Requirements Production Logistics Competitors Media Choice

Message Strategy

Designing the Message

1. Message Content (what to say) 2. Message Structure (how to say it logically) 3. Message Format (how to say it symbolically) 4. Message Source (who should say it)

Message Content: What to Say

Advertising Appeal
Creative strategy

The choice for message content could either be: rational and emotional; or negative vs positive consumer defined and product defined; or Sensory, social and ego satisfiers.

Message Approaches
Straightforward

Demonstration
Comparison Problem-Solution Humor Spokesperson

Teasers
Shockvertising

Message Structure
Important aspects of message structure are:

1. Drawing conclusions
2. Repetition 3. One-versus-two sided arguments 4. Comparative advantage

Message Format: Creative Execution

Steps involved in copy writing or creative execution:

1. Idea generation (thinking of big idea)

2. Generation of written copy 3. Illustrating/ Artwork 4. Layout

Shaping Ideas
Chance encounter

Competitors advertising appeal

Brainstorming

Market research

Advertising Copy and Its Elements

1. 2. 3. 4. 5. 6. The Headline The Sub-head The Body Copy Captions Boxes and panels Slogans and logo

Types of Headlines
By Contents (What it says) 1. Identification headlines 2. Problem solving headlines 3. News headlines 4. Contrast headlines 5. Familiar saying By form (How it says) Directly or Indirectly

 Other Display Copy Slogans -Enhance memorability Subheads, Captions- Lure the reader into body copy Tagline- wrap up the idea

Types of Body Copy

Factual

Copy: Stresses product advantages

Emotional presentation: Stresses consumer satisfaction

Dialogue Copy: Lets the reader Listen in on a conversation Narrative Copy: Tells Story

Illustrating
Shows: Product alone Magnifies details Product in setting Product in use Satisfaction Dramatization of situation Comparison Contrast

Layout Styles

Visual Dominant
Copy Dominant

Layout Considerations
Focal Point Balance Contrast Proportion Movement Unity

Copywriting for Radio

1. Theater of the mind

2. Voice and Style

3. Music (Jingles) 4. Sound Effects

Broadcast Copy
Copy Elements Visual, Audio, Talent, Setting, Lighting, Graphics Attention Related Factors Length, Clutter, TV programme, Use of words, music Characteristics Action Demonstration Storytelling Emotions

Levels of Relationship

Writing for the Web

More interactive than any other mass medium Challenge is to attract people to the site and manage a dialogue-based communication experience

Web ads create awareness and interest in a product

and build a brand image Focus on maintaining interest

Web Ads
Banner Other Web Formats- Games, Pop-up windows, side frames

Copywriting in a Global Environment

Language affects the creation of the ad Standardizing copy by translating is dangerous Use bilingual copywriters

Advertising Agencies

Agencies
Specialised organisations whose business is to create advertising

Have roots in tradition as sellers of space

Changed to buyers of space and subsequently started offering the services of planning, preparing and placing the ad. In house agencies and Outside agencies

Hiring of Outside Agency

Referrals

Presentation
Image and reputation of the agency

The activities of public relation and publicity undertaken

by the agency.

Compensation Arrangements
Commission system: Fee based system: based on size of media spend, the commission rate is usually 15%. based on cost of services provided, cost is calculated using the hourly rate

Combination of fee and commission system Cost plus agreement: Performance linked: based on cost of actual services rendered based on the extent to which predetermined goals are met.

Evaluating Advertising Effectiveness

Decisions Involved
What to measure? When to measure? Where to measure? Which method to use for measurement?

 Measuring Sales Effect

Measuring Communication Effect

Types of Testing Techniques

Pre tests Post tests

Input variables
Consumer Juries Portfolio test Physiological measures Readability test Concept test Focus Group test

Sales effects / Communication effects

Laboratory test

Field Test

- Questionnaire - vehicle test

-Recall Test -Recognition test -Test Marketing - Inquiry test

Problems in Measuring Ad Effectiveness

Cost Research problems Disagreement on what, when and where to measure

Ethical and Legal Aspects of Advertising

Ethical Issues in Advertising

Puffery Taste in advertising Advertising to children Advertising of Controversial Products Subliminal Advertising Effects on values and life style Green Marketing

Legal Aspects of Advertising

In India, various Acts were enacted with the intention to protect the consumers against different forms of exploitation. Except for the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 (now repealed) all the other Acts were mainly punitive and preventive in nature. Parliament enacted Consumer Protection Act in 1986

Self Regulation
There are strong believers in the market place who hold the belief that advertisers must be left alone to regulate themselves and they are in the favour of lesser and lesser regulations.

Advertising Standard Council of India ASCI , a voluntary and non-profit organization has adopted a code for Self Regulation in Advertising. It is a commitment to honest advertising and to fair competition in the market place.