ADVERTISING

The American Marketing

Association defines advertising as Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.

ADVERTISING AGENCIES
An advertising agency is an independent organization

that provides one or more specialized advertising and promotion related services to assist companies in developing, preparing and executing their advertising and other promotional programs.

Advertising exposure model

First, exposure to the advertisement can create awareness about

the brand, leading to a feeling of familiarity with it. Second, information about the brands benefits and the attributes on which the benefits are based can register with the consumer can also result from exposure to the ad. Third, advertisements can also generate feelings in an audience that they begin to associate with the brand or its consumption. Fourth, through the choice of the spokesperson and various executional devices, the advertisement can lead to the creation of an image for the brand, often called brand personality Fifth, the advertisement can create the impression that the consumers peers or experts- individuals favour the brand and groups the consumer likes to emulate.

 This is often how products and brands are presented as being

fashionable. These five effects can create a favorable liking, or attitude towards the brand, which in turn should lead to the purchasing action. Sometimes the advertiser will attempt to spur purchasing action directly by providing a reminder or by attacking reasons why the consumer may be postponing that action. The above model helps us to understand how and why consumers acquire, process and use advertising information. Its also important at the planning stage to develop a good understanding of where advertising fits into the total pool of information and influence sources to which a consumer is exposed. Understanding information processing invariably leads to the need for understanding a wide range of other important psychological constructs, such as perception, learning, attitude formation and chance, source effects, brand personality and image, cognitive and affective response and social factors such as group influence.

Functions Of Advertising
STIMULATES DEMAND
STRENGTHENS OTHER PROMOTION MIX ELEMENTS DEVELOPS BRAND PREFERENCE CUTS COSTS LOWERS PRICES COMPETITIVE WEAPON

Advertising campaign
Advertising

campaign can be defined as the correlation and combination of an advertisement and related efforts in respect of a product or service, during a particular period of time, and directed towards the attainment of one or ore predetermined objectives. In simple words advertising campaigns is a series of advertisements with an identical or similar message, placed in one or more of advertising media over a particular period of time.

SETTING THE ADVERTISING OBJECTIVES

Informative advertising: it is heavily used in the

pioneering stage of a product category, where the aim is to build primary demand. e.g. Ujala commercial, where the ad talks about how different it is from the age old neel by talking about its solution contents and showing how different your clothes look when washed with Ujala.

 Persuasive advertising: it is generally used when the

product is in the competitive stage, where the companys objective is to build selective demand for a particular brand. e.g. Whirlpool ice magic positions itself as being a quick icemaker and was the first one of its kind to use this as a marketing platform.

 Reminder advertising: it is very important to use

these when the product is in the maturity stage. They are intended to remind people to purchase your brand. e.g.Thums up, Coke, Pepsi ads all these ads no more are shown to create awareness or persuasion because people are already aware of their presence and already have chosen the brand of their choice. These are just reminder ads to keep the brand or the company fresh in the minds of the consumers or have the brand top of mind.

 Reinforcement advertising: It seeks to ensure the

buyers that they have made the right choice by purchasing your brand. e.g. Hamara Bajaj advertisements make the owner of the two wheelers of Bajaj proud of their possession by giving it a patriotic positioning.

DECIDING ON THE ADVERTISING BUDGET

. Although advertising is treated as a current expense,

part of it is really an investment that builds up an intangible asset called brand equity. This treatment of advertising reduces the companys reported profit and therefore limits the number of new product launches a company can undertake in any one year. The following are the five factors that are considered while setting the advertising budget:

 Stage in the product life cycle: new products

typically receive large advertising budgets to build awareness and to gain consumers trial. Market share and consumer base: the brands having a high market share usually require less advertising expenditure whereas for products whose brand needs to be built, requires larger advertising expenditure. Competition and clutter: In todays competitive market, where there are a large number of competitors, a brand must advertise heavily to be heard.

 Advertising frequency: the number of repetitions

that need to be made to put across the brand message to consumers has an important impact on the advertising budget. Product substitutability: brands in the commodity class require heavy advertising to establish a different image. For example, cigarettes, beer, soft drinks. Also advertising is important when the brand can offer unique physical benefits or features.

CHOOSING THE ADVERTISING MESSAGE

Advertising campaigns vary in their creativity. The

creativity factor can be more important than the number of rupees spent. Only after gaining the attention can a commercial help to increase the sales, Advertisers go through four steps to develop a creative strategy viz:

Message generation: At this stage, the advertiser decides on what message he wants to communicate to the consumers regarding the product. For example, the products benefit message should be decided as a part of developing the product concept. Over time, the marketer might want to change the message, especially if the consumers seek new or different benefits from the product. Also, at this stage various alternative advertisements are prepared and finally the excellent one is chosen. But also, higher costs are incurred in preparing these advertisements.

 Message: A good ad evaluation and selection

normally focuses on one core selling proposition. The advertiser should conduct market research to determine which appeal works best with its target audience.

 Message execution: the impact of the message

depends not only on what is said but how it is said. Some of the ads aim at rational positioning and others for emotional positioning. While preparing an ad campaign, the advertiser usually prepares a copy strategy statement describing the objective, content, support, and tone of the desired ad. The creative people also find a cohesive style, tone, words, and format for executing the message.

Social responsibility review: the advertisers and their ad agencies must be very careful that their creative advertising doesnt overstep social and legal norms. Advertisers must not make false claims, such as stating that a product cures something when it does not. To be socially responsible, advertisers must be careful not to offend ethic groups, racial minorities, or a special interest groups.

TYPES OF ADVERTISEMENTS
Consumer Advertising
Advertising to Business and profession Non- product Advertising

CONSUMER ADVERTISING
These are basically nothing

but product or service advertisements directed towards the consumer or the customer as such. Such advertisements can be in the form of national or local advertisements also. Such kind of advertisements uses emotional or rational appeal in their advertisement. Advertisements such as that of DeBeers, pizza hut etc use the emotional appeal to attract the consumers. On the other hand advertisements such as the Kawasaki bajaj caliber, Vim Bar etc. use the rational appeal to address its target audience.

 The advertisement of DeBeers uses an emotional

appeal because the statement I have my feet firmly planted on the ground except when Im wearing the millennium diamond suggests that by wearing them u can fly high in the sky and feel like what Urmila does in the advertisement

Advertising to Business and profession

This type of advertising is aimed at resellers and

professionals. The media used here is direct mail or professional magazines. These are ads which are not directed towards the final consumers. Corporate ads are also a part of these types of ads. The target groups of corporate advertising are most often customers, stockholders, employees, financial institutions, political leaders and government.

 The objectives of the corporate or the institutional ads

may be to establish or boost corporate identity and image, counter negative attitudes towards a company, industry or to promote and relate the company to some worthwhile social public interest cause. The recent Aditya Birla group campaign would fit into this category

Non- product advertising

In this type of advertising advertisements depicting an

idea, a social cause etc is included. Surrogate advertisements are also a part of such non- product advertisements.

FORMS OF ADVERTISING
Institutional Advertising:

This advertising speaks about an organizations corporate image. e.g. Public sector ads like SAIL, VIZAG STEEL. Brand advertising: This advertising helps in the long-term build up of a brand. e.g. HLLs ads for LUX ,LIRIL, REXONA. Classified Advertising: This advertising gives information dissemination about a sale. e.g. MID-DAY NEWSPAPER or TOI classified section

 Promotional Advertising:

This advertising informs an announcement about a sale. e.g. ADIDAS offering 50% DISCOUNT on sneakers. Advocacy Advertising: This advertising is used to publicize a particular cause. All the social ads fall into this category. e.g. Drink, MORE MILK (TV ad by FCB ULKA for NDDB.) AIDS AWARENESS ADS by Maharashtra Govt.

CLASSIFIED ON GEOGRAPHICAL SPREAD

National Advertising:

Advertising that is done in one nation only. e.g. Dabur Ads or Nirma Ads Local Advertising: Advertising that is carried out in a particular region or market. e.g. BRU and AMRUTANJAN selected campaign directed towards consumers in South India. Global Advertising: Advertising that is carried on for a company or a product globally.

ON THE BASIS OF TARGET GROUP

Consumer Advertising:

Advertising that is directed towards the consumer directly. e.g. All FMCG product ads like P&G, NESTLE etc. Industrial Advertising: Advertising that is directed by Industrial Goods Manufacturer to his target group. e.g. SKF BEARINGS direct their ads in Industrial Journals to TELCO etc.

 Trade Advertising:

In this type of advertising, the ads are directed to the Initiator rather than the end user of the product. e.g. Most Pharmaceutical companies direct their ads in Medical journals to Doctors, who prescribe the medicines to the patients.

 Informative Advertising:

This advertising figures heavily in the Introduction stage of a product, where the primary objective is to build demand. e.g. MOTOROLA Ads for pagers, explaining how to use them (providing information).

 Persuasive Advertising:

Persuasive Advertising figures heavily in the Growth Stage of Product Life Cycle, where the companys objective is to build selective demand for a particular brand. Some Persuasive Advertising has now taken the form of COMPARISON ADVERTISING, which seeks to establish the superiority of one brand, through specific comparison with one or more brands in the same product class. e.g.AKAI TV ads compared the brand with 6 competitor brands.

 Reminder Advertising:

This advertising is highly important in the mature stage of the product to keep the consumer thinking about the product. e.g. Fevicol campaigns act as a reminder form of advertising, bonding Fevicol with consumers as the strongest Adhesive A related form of advertising is REINFORCEMENT ADVERTISEMENT, which seeks to assure current purchasers that they have made the right choice. MARUTI SUZUKI ads tell that the CONSUMER is a part of 1,00,000 happy customers.

advertising agency
An advertising agency is:
an independent business organisation composed of creative and business people who develop, prepare and place advertising on

advertising media for sellers seeking to find customers for their goods and services. -American Advertising Agency Association (AAAA)

Functions of an ad agency
CLIENT SERVICING

Also called account executives. Acts as the link between the agency and the client. He suggests what the client exactly wants to his ad agency. He is the person who carries the client brief and is also responsible for the approvals.

 CREATIVE DEPARTMENT

Under the creative director are a team of copywriters and visualizers who arrive at the big idea. Accordingly the storyboard is prepared and script work is done. The final layout is sent for approval to the client.

 PRODUCTION DEPARTMENT

The production department is responsible to convert the storyboard into a finished layout if its for print medium or Outdoor. However the TVC will be outsourced to a production house (eg. Prasoon Pandeys HIGHLIGHT FILMS). The final storyboard is made into a technical storyboard before it is sent for shooting.

 MEDIA DEPARTMENT

The Media Planner along with Media manager and brand manager of the client prepares the final media budget and purchases insertions for print media (space buying) or purchases radio spots or purchases TV time if its on television. Appropriate media mix is developed.

 RESEARCH DEPARTMENT

In fact research department functions before and after a commercial is made for pre-testing and post-testing of media respectively. Consumer insights and brand usages are also tested at times, according to client in many instances.

 FINANCE DEPARTMENT
This department looks after the accounts (financial

records) for the agency.

Types of advertising agencies

There are basically four types of ad agencies.

In-house agencies 2. Creative boutiques 3. Media buying agencies 4. Full service agencies
1.

In- house agencies

Some companies, in an effort to reduce costs and

maintain greater control over agency activities, have set up their own advertising agencies internally. An in-house agency is an ad agency set up, owned and operated by the advertiser. Many companies use in-house agencies exclusively; others combine in-house efforts with those of outside agencies.

 A major reason for using in-house agency is to reduce

advertising and promotional costs. Companies with very large advertising budgets pay a substantial amount to outside agencies in the form of media commissions. With an internal structure, these commissions go to the in-house ad agency. An in-house ad agency can also provide related work such as sales presentations and sales force material, package design, and public relations at a lower cost than the outside agencies.

 Saving money is not the only reason companies use in-

house ad agencies. Time savings, bad experience with outside agencies, and the increased knowledge and understanding of the market that come from working advertising and promotion for the product or service day by day are also reasons. Companies can also maintain a tighter control over the process and more easily coordinate promotions with the firms overall marketing programmes.

 Opponents of the in-house agencies say that they can

give the advertiser neither the experience nor the objectivity of the outside agency and nor the range of services. They argue that the outside agencies have a more specialized staff and attract the best creative staff. Also flexibility is higher since if the company is not satisfied with the agency it can be dismissed, whereas changes in an in-house agency could be slower and more disruptive.

Ad agency In house agency

Advantages Cost saving More control Increased coordination

Disadvantages Less experience Less objectivity Less flexibility

Creative boutiques
Creative boutique is an agency that provides only creative services. These specialized companies have developed in response to some clients desires to use only the creative talent of an outside provider while maintaining the other functions internally.
The client may seek outside creative talent for two reasons:
Because he wants an extra creative effort
May be because its own employees of the in-house agency or

the agency that he has appointed do not have sufficient skills in this regard.

 The full-service agencies also sub-contract work

creative boutiques when they are very busy or want to avoid adding full time employees to their pay roll. Creative boutiques are usually found by members of the creative departments of full service agencies who leave the firm and take with them clients who want to retain their creative talents. These boutiques generally perform creative function on a fee basis.

Media buying agencies

Media buying agencies are independent companies

that specialize in the buying of media, particularly radio and television. The task of purchasing advertising media has grown more complex as specialized media proliferate, so media buying services have found a niche by specializing in the analysis and purchase of the advertising time and space. Agencies and clients generally develop their own media plans and then hire the buying services to execute them.

 Some media buying agencies do help advertisers plan

their media strategies. Because media buying agencies purchase such large amounts of time and space, they receive large discounts and can save the small agenys or clients money on media buying. Media buying agencies are paid a fee or commission for their work.

Full service agency

The function of an advertising agency is to see to it that its

clients advertising leads to greater profits in the long run than could be achieved without the ad agency. Most such agencies are large in size and offer their clients a full range of services in the area of marketing, communications and promotions. These include planning, creating and producing the advertisement, media selection and research. Other services offered include strategic marketing planning, sales training, package design, sales promotion, event management, trade shows, publicity and public relations.