Advertisement – A Tool Advertisement – A Tool of Promotionof Promotion

Submitted to:Submitted to:Niki SanghviNiki Sanghvi

Submitted by:Submitted by:Jayul Vaghani (43)Jayul Vaghani (43)Jayesh Tank (37)Jayesh Tank (37)Akash Chokshi (1)Akash Chokshi (1)Hiral Panchal (31)Hiral Panchal (31)

What is Advertising?What is Advertising?

Any paid form of non personal presentation and Any paid form of non personal presentation and promotion of ideas, goods and services through mass promotion of ideas, goods and services through mass media such as newspapers, magazines, televisions or media such as newspapers, magazines, televisions or radio by an identified sponsor. ( Kotler )radio by an identified sponsor. ( Kotler )

Advertising is mass, paid for communication which is Advertising is mass, paid for communication which is used to transmit information, develop attitudes and used to transmit information, develop attitudes and induce some form of response from the audience. induce some form of response from the audience.

Characteristics of AdvertisingCharacteristics of Advertising

Non personal form of communication aimed at a Non personal form of communication aimed at a target audience.target audience.

Used by commercial and by not for profit Used by commercial and by not for profit organizations.organizations.

Most advertising is concerned ultimately with selling.Most advertising is concerned ultimately with selling. It is a major element in the promotional mix.It is a major element in the promotional mix.

ObjectivesObjectives

An advertising objective is a specific communication An advertising objective is a specific communication task to be achieved with a specific target audience task to be achieved with a specific target audience during specified period of time.during specified period of time.

Like all objectives they should be SMART.Like all objectives they should be SMART. In essence the main advertising objectives are:In essence the main advertising objectives are:

- To Inform: to provide information about a product- To Inform: to provide information about a product

- To Persuade: to persuade people to buy- To Persuade: to persuade people to buy

- To Remind: to remind people about a mature product - To Remind: to remind people about a mature product

Inform, Persuade, RemindInform, Persuade, Remind

InformInform

To provide informationTo provide information

Used specifically with Used specifically with a new or complex a new or complex product.product.

Print media is superior Print media is superior to TV for this type of to TV for this type of advertising.advertising.

E.g.E.g.

InsuranceInsurance

Financial ProductsFinancial Products

New Electrical GoodsNew Electrical Goods

PersuadePersuade

To persuade customers To persuade customers to buy a particular brandto buy a particular brand

Stress the distinctive Stress the distinctive features of the brand.features of the brand.

Minimal Information.Minimal Information.

E.g.E.g.

Perfumes Perfumes

Cars Cars

Coca colaCoca cola

RemindRemind

To remind customers To remind customers about a product they about a product they might other overlook.might other overlook.

Advertising a mature Advertising a mature product.product.

E.g.E.g.

Corn flakesCorn flakes

Kit-KatKit-Kat

SMART criteriaSMART criteria SSpecific pecific - the objective should state exactly what is to - the objective should state exactly what is to

be achieved.be achieved. MMeasurableeasurable - an objective should be capable of - an objective should be capable of

measurement – so that it is possible to determine measurement – so that it is possible to determine whether (or how far) it has been achievedwhether (or how far) it has been achieved

AAchievablechievable - the objective should be realistic given - the objective should be realistic given the circumstances in which it is set and the resources the circumstances in which it is set and the resources available to the business.available to the business.

RRelevantelevant - objectives should be relevant to the people - objectives should be relevant to the people responsible for achieving themresponsible for achieving them

TTime Bound ime Bound - objectives should be set with a time-- objectives should be set with a time-frame in mind. These deadlines also need to be frame in mind. These deadlines also need to be realistic.realistic.

Summary of ObjectivesSummary of Objectives

To create awarenessTo create awareness To informTo inform To remind customersTo remind customers To reassure customersTo reassure customers To support the sales To support the sales

forceforce To persuade To persuade To promote Ideas/ To promote Ideas/

Attitudes/ CausesAttitudes/ Causes

To increase market shareTo increase market share To differentiate from To differentiate from

rivalsrivals To build brand loyaltyTo build brand loyalty To change attitudesTo change attitudes To support activities in the To support activities in the

distribution chaindistribution chain

Types of AdvertisingTypes of Advertising

InformativeInformative- Provides information- Provides information Persuasive- Persuasive- To encourage brand switchingTo encourage brand switching Reminder- Reminder- To remind about a mature productTo remind about a mature product Reinforcement- Reinforcement- To reassureTo reassure Pioneering- Pioneering- To introduce new productTo introduce new product Competitive- Competitive- To point out differential advantagesTo point out differential advantages Defensive- Defensive- To reduce damage caused by campaign of To reduce damage caused by campaign of

a direct competitor.a direct competitor.

Institutional or Corporate AdvertisingInstitutional or Corporate Advertising

Seeks to promote corporate identity, image and Seeks to promote corporate identity, image and valuesvalues

This type of advertising is not about individual This type of advertising is not about individual products the company offersproducts the company offers

The product is not mentioned.The product is not mentioned. Used by large companies, especially multinational Used by large companies, especially multinational

companies. E.g. ICI, BPcompanies. E.g. ICI, BP BP promotes itself an energy company rather than a BP promotes itself an energy company rather than a

petroleum company. petroleum company.

Direct Response AdvertisingDirect Response Advertising

The use of prime media to elicit an order, enquiry or The use of prime media to elicit an order, enquiry or request a visit.request a visit.

Direct response television advertising invites Direct response television advertising invites consumer to phone in to place an order (E.g. some consumer to phone in to place an order (E.g. some music CDs are promoted in this way)music CDs are promoted in this way)

The print media is also used- coupons cut out of the The print media is also used- coupons cut out of the page and inserts are means to invite people to respondpage and inserts are means to invite people to respond

AIDAAIDA

Advertising should seek to:Advertising should seek to:

AA- increase Awareness- increase Awareness

II- create Interest- create Interest

D-D- develop a Desire develop a Desire

A- A- encourage customers to buyencourage customers to buy

Advertising seeks to move potential buyers through Advertising seeks to move potential buyers through these stages. these stages.

Developing an Advertising Campaign Developing an Advertising Campaign

Set the advertising objectives.Set the advertising objectives. Define target market.Define target market. Determine the advertising budget.Determine the advertising budget. Determine the key advertising message.Determine the key advertising message. Decide which media to use.Decide which media to use. Plan campaign timing.Plan campaign timing. Evaluate the results of the campaign.Evaluate the results of the campaign.

5 Ms of Advertising5 Ms of Advertising

MISSION-MISSION- Objectives Objectives MONEY- MONEY- to pay for the Campaignto pay for the Campaign MESSAGE- MESSAGE- to be Delivered to be Delivered MEDIA- MEDIA- choice of advertising Mediachoice of advertising Media MEASURE- MEASURE- Measuring the impactMeasuring the impact

Determining the BudgetDetermining the Budget

The advertising budget will be set in terms of one of: The advertising budget will be set in terms of one of:

- what can be afforded- what can be afforded

- A given percentage of sales- A given percentage of sales

- Comparison with rivals- Comparison with rivals

- Objective and Task- whatever is needed to achieve - Objective and Task- whatever is needed to achieve

objectiveobjective

Advertising MessageAdvertising Message

An advertising message translates a company’s basic An advertising message translates a company’s basic selling proposition into words, symbols and selling proposition into words, symbols and illustrations that are attractive and meaningful to the illustrations that are attractive and meaningful to the target audience.target audience.

The Message must be:The Message must be:

- Meaningful- Meaningful

- Distinctive- Distinctive

- Believable- Believable

Main Advertising MediaMain Advertising Media

• Television• Cinema• Radio• Outdoors (billboards)• Internet• Print media- news papers n magazines

Factors in the choice of media

• Marketing mix• Relative cost• Target audience• Impact of the media• Competition• Legal constraints

• Permanence of the media

• Nature of the product• Size and spread of the

market• Advertising budget• Message to be

conveyed

AIMRITE- Choice of Media

• Audience-does it reach the target audience?• Impact-does it have the impact or ensure the

message has a chance of getting through?• Message- does it ensure the message is clearly

communicated?• Response-does it make responding easy?• Internal management-does it enhance the

efficient management of the campaign?• The end response – costs and projected likely

revenue

Television

Advantages• Large audience• Low cost per exposure• high impact-color,

sound and movement• Can target specific

groups

Disadvantages• Very high overall cost• Limited prime time

space• Short lived• May not be watched-

visual wallpapers• Convey only a limited

message

Radio

Advantages• Relatively

inexpensive• target specific

segment• Relatively mobile• Local

Disadvantages• Limited impact• No vision• Short life

News Paper

Advantages• target specific

segments• Widely read• Short lead time• Frequent publication• Inexpensive compared

to television• Color printing adds to

impact• Local regional national

papers available

Disadvantages• Low impact• May get lost in the rest

of the paper• Not every group reads a

paper• High costs especially

for national news paper

Magazine

Advantages• Useful for targeting

specific group• Good reproduction-

high quality gloss images

• Long life-read at leisure• Can be linked to

features• All consumers interests

catered for

Disadvantages• Can be expensive• Long read time• Some magazines are

only published monthly.• Moderate impact• Slow impact due to

long life• Magazines with limited

readership are not suitable for mass marketing

Cinema

Advantages• Captive audience• High impact• Can be specifically

targeted• Local audience• Visual, sound,

movement

Disadvantages• Limited audience• Mainly young

audience• Short lived message• May only be seen

once.

Out door-Billiboards

Advantages• Repeatedly seen• 24/7 coverage• Target particular area• Local media• May encourage

impulse buying if close to shops

Disadvantages• Message must be

simple and short• Can not target

socioeconomic groups• Rarely attract full

attention • Short lived• May be seen as traffic

hazard• Difficult to measure

effectiveness

Advertising on transport

Advantages• Low cost• Target specific areas• Captive audience• Reaches wide diverse

audience

Disadvantages• Harder to target by

socioeconomic class• Quick results unlikely• Difficult to measure

effectiveness• Rarely gains reader’s

full attention• Space for only a short

message

Internet

• One of the fastest growing advertising media• Can target particular groups according the site a

customers is on. • Can be saved by the consumer• Can use moving images as well as written

information.• Can be expensive to set up.• Allows direct link to the product.• But not used by all potential groups of customer.• Customers may see the advertisement as in the

way of what they really need from an internet site.

Advertising on the internet

• Paid-for search inclusion (e.g. google adwords)• Company website• Banner adds-On line adverts on relevant website.• Link exchange – mutual exchange at links

between websites or similar or complementary interest.

• Search engine/directory listing.• E zine/email sponsorship – on line magazines

delivered to subscribers via email.

Internet advertising

• Cheap • Easy to set up• Easily updated• Number of hits can be

monitored-useful measure of effectiveness

• Problems of connecting

• Limited audience• Technical problems• Banner adverts not

very effective• Search engine listing

can be costly (e.g. click fraud)

Evaluating effectiveness of advertising

• Judge in relation to the objectives• Did the advert achieve it objectives?• Is it cost effective?• Here the question to be asked is weather or not

the objectives were achieved at the lowest possible cost.

Efficiency/effectiveness matrix

efficientefficient inefficientinefficient

effectiveeffective Achieves objective Achieves objective at lowest possible at lowest possible costcost

Effectively but Effectively but more costly than it more costly than it needed to beneeded to be

ineffectiveineffective Inexpensive but Inexpensive but objectives not to objectives not to be achievedbe achieved

Expensive but did Expensive but did achieve objectivesachieve objectives

Advertising effectiveness

• It is expressed in terms of its ability to meet objectives.

• If sales increased profits and sales are the aims, then effectiveness is measured in terms of the return on investment in advertising spending.

• If the competitive defense I the main aim it is measured in terms of the maintenance in indicators of competitive position (e.g. market share)

Advertising elasticity

• A measure of the responsiveness of the demand to an advertising campaign.

• %change in quantity sales/% change in advertising spend

• If a 10% rise in advertising spending is followed by 20% rise in demand or sales than advertising elasticity is 2.

• But can we be sure that sales rose because of the increased advertising?

Measure of advertising effectiveness

• Advertising awareness- the ability of a consumer to remember a particular advertisement.

• Advertising coverage-the % of target market who have at least one opportunity to see an

advertisement during a campaign. • Advertising share of voice- the proportion of

overall advertising in a market accounted for by a brand or company.

• Advertising to sales or ratio- expenditure on advertising as a proportion of sales

DAGMAR

• The DAGMAR models highlights how advertising can be assessed by a firm.

• Defining• Advertising • Goals• Measured• Advertising• Results

A word of caution

• Even good advertising can not overcome problems caused by

• Poor product• Inefficient service• Uncompetitive pricing• “half of all advertising is wasted- the problem is

we don’t know which half”.(Lord leverhulm) founder of unilever.