ADVERTISING & BRAND MANAGEMENT

MBA SESSION # 2

What is Advertising?

Advertising is a paid, non personal communication about an organization and its products that is transmitted to a target audience through a mass medium such as television, radio, newspapers, magazines, direct mail, out door displays or mass transit vehicles.

ROLE OF ADVERTISING

Advertisement leads to sale. Advertising is a form of communication. Like all forms of communication, it has many different effects and these effects are often related to one another. The message in an advertisement, no matter how strong and persuasive, will have no effect if the consumer does not see the advertisement or pay attention to it . There has to be an
Effective Communication.

HURDLES TO EFFECTIVE ADVERTISING

Getting Attention

This involves two important actions. First, it is important for the advertiser to know where a communication should be placed to increase the odds of reaching a particular type of consumer; this is the media decision e.g what television shows they watch, what route they
take to work, and what magazines they read.

Your advertisement should be clutter breaker e.g

Nauras Jingle, Meezan oil, Airtel jingle, Telefun.

Processing Information

If the consumer does not comprehend the message, it will not have the desired effect. Thus, it is important when creating the advertisement to understand how consumers think about products and product benefits and to use language that the consumer will understand. It is also important that the product and the product message be the focal point of the advertisement. But one message at a time eg ( jeet gaya englishhaar gayee mehngayee)

Information Evaluation
After a consumer has processed information, there is a need to evaluate it. The consumers will need to determine how believable the information is and how relevant it is to their individual situation in life and to their behavior as consumers. Advertisers use a variety of devices to increase the believability of their advertising:

celebrities or experts who are the spokespersons for the product e.g ( Alizafar Telenor, Adnan siddiqui- Rin) user testimonials, product demonstrations e.g ( Harpic) research results ( Dental Ads, etc )

Attitude Formation
The goal of advertising is to have a positive impact on attitudes; these attitudes, in turn, influence future behavior. When the consumer next goes to the store to buy a particular type of product, these attitudes influence the choice of the product. A bad experience with a product will create a negative attitude that no advertising is likely to overcome e.g ( Construction Ads Rs. 1500 per month without mentioning the

hidden charges, Bnak ads bad service leads to no sale)

Intentions and Behavior

A consumer might want to buy an advertisers product, but may not find it in the store, or another less-desirable product is so much less-expensive that the consumer chooses it instead e.g ( Omore icecream not
available in Khi. Chinese market takeover)

CLASSIFICATION OF ADVERTISING

Product Advertising

Major chunk of advertising budget is spent on product advertisement. It also includes the advertisement for new products or product extension e.g Zem Zem SMS craze, Zem LBS,
It is comparatively local and focuses on store where different products are offered. Retail Advertising emphasize on price, product availability, hours of operation.

Retail Advertising

Corporate Advertising

The focus is to establish a corporate identity. It refers to corporate campaigns endorsed by thematic campaigns.

Business to Business Advertising

This relates to advertising that is related to industrial users e.g (ICI Chemicals, Corporate Lawyers / Audit Firms )

Political Advertisement

This includes political campaigns to gain public votes.

Directory Advertising

This focuses on information to the end-user such as product and services availability. Best example is Yellow Pages.

Direct Response Advertising

This relates to Two way communication where by customer can immediately react. It can be transferred through any medium eg ( Banks Helpline, KESC Customer Service)
This includes Public service campaigns for public welfare eg (Ye Hum Nahin..)

Public Service Advertising

ADVERTISING FUNCTIONS

Advertising moves consumers from being unaware of a product or service to finally purchasing it. An ad is considered effective if it propels the consumer a step further in this process. This is how the function of advertising is viewed.

STIMULATES DEMAND

By informing consumers about the availability of a product in the market, advertising stimulates latent needs, and reinforces the aroused needs.

STRENGTHENS OTHER PROMOTION MIX ELEMENTS

Advertising does the pre selling of the product and makes the job of the sales people easier. Advertising reaches a relatively large audience and makes them favourably predisposed. Ads carry the sales, promotional messages and often produce quick sales response.

DEVELOPS BRAND PREFERENCE

Satisfied customers also develop brand preference, which gets reinforced by repeated ads. Products with strong brand franchise offer some protection against the competition. Retailers develop confidence and do not hesitate in stocking strong brands. Brand loyal customers are an important asset for the company and are less likely to be influenced by competitive moves.

CUTS COSTS
Advertising may be instrumental in cutting down production and selling costs. Increasing unit sales decrease unit costs. Selling costs also may decrease because there could be fewer wasted calls and less strain on sales people.

LOWERS PRICES In any market based and competitive economy, when unit cost of a product goes down, there are external and internal pressures which compel companies to lower prices to the advantage of consumers. This often leads to deeper market penetration.
COMPETITIVE WEAPON Advertising by itself and coupled with other promotion mix elements, may prove to be an extremely potent weapon to counter competitive moves. Advertising has an established role in creating brand personality and image. It helps differentiate a companys offer in a manner that the product may be considered as something with unique value having a definite identity of its own

MODES OF ADVERTISING

Above the line

Promotional activities carried out through mass media, such as television, radio and newspaper, are classed as above the line advertisement
Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front eg (mobile ring tones, hunt for heros Mlink)

Below the line

ASTA LAVISTA