advertisement and integrated brand management module 1

Advertising and Integrated Brand Management

Module Outline

• What is advertising, advertising as a communication process

• Advertising as business process, Types of advertising, the economic effects of advertising.

• The structure of advertising industry -• The scope and structure of advertising industry,

Trends• Trends Advertising and promotion industry,• The evolution of promoting and advertising

brands • Fundamental influences on evolution of

advertising industry, Brand entertainment,• Social, ethical and regulatory aspects of advertising

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"Every advertisement is part of the long-term investment in the personality of the brand.“

David Ogilvy

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The war begins..

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Advertising – The Prelude

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Advertising - Basics

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Advertisement

• “Advertising is a paid non personal communication from an identified sponsor using mass media to persuade or influence an audience”

• Advertising promotes ideas, goods and services of identified sponsors.

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• The paid aspect of this definition reflects the fact that the space or time for an advertising message must be bought.

• The non-personal component means that advertising involves mass media (eg. TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time.

Advertisement

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• The non-personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct response advertising)

• Therefore before the message is sent, the advertiser must consider how the audience will interpret and respond to the message

Advertisement

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• Inform people about their products and services.• To make their brand names familiar to the public.• To give the company a “personality” which sets

it apart from the others.

• To remind customers about their brands at the right time and right place

• To tell the public about improvements in products

Why Advertisement

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Why Advertisement• Cost effective method to communicate to a large

audience.• Create brand image and symbolic appeal for the

brand• Popular advertising campaigns attract customers

attentions and can help generate sales. • Example Pepsi – ‘Yeh Dil Mange More’, ‘Mera number

kab aye ga’, • Idea – ‘What an Idea Sirji!’, • Mentos – ‘Dimaag ki bathi jala de.’

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Role of Ads

• Information and persuasion

• Introduction of new brand or brand extensions

• Building and maintaining brand loyalty among consumers

• Creating an image and meaning for a brand

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Maruti Eeco – Case discussion

• Geographical Segmentation – India• Demographical – Middle Income Family, Big -

Family - Prize – 2.86 L – 3.82 L• Target Group- Middle Income Group• Product Variants – 5 Seater, 7 Seater (w/wo AC),LPG• Core Benefits – Big Storage space, Fuel Efficiency, 1200 cc engine,

Design on Indian Road condition• Positioning – Big Family Car & Multi Purpose Vehicle

Analyze how the ad campaign understands the client and customer requirement

Agency: Dentsu Creative Impact. Executive Director Creative – Harish Arora

Advertisement Video

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• Tata Tea – Jago re• Agency – Lowe Lintas• Case Discussion – Assignment 1

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Advertisement Video

Leading Agencies in India

1. Ogilvy and Mather Limited2. Mudra communications Pvt. Ltd3. Lowe Lintas India Pvt. Ltd4. JWT (Hindustan Thompson Associates Pvt. Ltd.)5. FCB-Ulka advertising pvt. Ltd: 6. Rediffusion DY&R Pvt Ltd 7. RK Swamy BBDO Pvt Ltd 8. McCann-Ericsson India Ltd9. Leo Burnett 10. Grey worldwide (India) Pvt Ltd

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Advertisement – The History and Evolution

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Evolution of Advertisement

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Evolution of Advertising

• Ancient Greek and Rome signs were used• 17th century – News papers started appearing• Invention of printing• Earlier ads were for books, marriages, new

beverages, travel etc.• Coffee – England 1652 – through News Paper• Chocolates and Tea – 1657,58 – through News

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• 16th , 17th ads – Pioneering/Announcing in nature• 18th Century – Comparative ads• 1892 – first ad agency in London (Reynell and

Sons)• Bates – first ad agency in US• 1917 – American Association of Advertisement

Agencies• 1920 – Radio started emerging as the powerful

ad medium• 1941 – TV advertisement broad cast

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Evolution of Indian Advt.

• 1905 – Dattaram and company• 1926 – JWT• 1928 – O&M• 30s – Lever set up ad dept. • Lever International Advertising Services (Lintas)• Computer technology changed the entire

spectrum• Interactive advertisement

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Branded Entertainment• Branded entertainment is the skilful symbiosis of

brand strategy and programme context to elicit greater brand engagement within a target demographic.

• is an entertainment-based vehicle that is funded by and complementary to a brand's marketing strategy.

• is to give a brand the opportunity to communicate its image to its target audience in an original way.

• The objective is to create a link in the viewer between the program and their product.

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• Product placement is the practice of including a brand name, product, package, sign or othertrademark merchandise within a motion picture, television or other media vehicles for increasingthe memorability of the brand and for instant recognition at the point of purchase.

• Munni Badnaam – Emami group (Zandu Balm)• KBC – Lenovo• Bunti Aur Bubly – Maruti Swift

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Product Placement in Brand entertainment

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Advertisement The industry structure and Inside Story

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Institutions Involved in Advertising

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Government

CompetitionAdvertiser

Advertising Agency

Media

Research Suppliers

Markets and Consumer Behavior

Control Institutions

Facilitating Institutions

Advertising Planning and Decision Making

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The communication/Persuasion Process

•Consumer/Market analysis•Competitive Analysis

•Role of ads, Sales force, Price, Promotion, PR

•Objective/Segmentation/Positioning•Message strategy•Media strategy

•Facilitating agencies• Social and legal constraints

Basic Workflow

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Source: AAAI Beginner’s guide

Advertisement – Social, Ethical and Regulatory aspects

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• Formed in 1985, is a self regulatory voluntary organization of the advertising industry.

• Comprises of Advertisers, Agencies, Media and other Advertising Services, the individual member firms, Non-Advertising professionals representing civil society

• It has Consumer Complaints Council (CCC)• Cable televisions network regulations act prohibits

the transmission or retransmission of any advertisement through a cable service unless they are in conformity with the ASCI Code.

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ASCI Code – (Source www.ascionline.org)

• To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertisements.

• To ensure that advertisements are not offensive to generally accepted standards of public decency. Advertisements should contain nothing indecent, vulgar or repulsive which is likely, in the light of generally prevailing standards of decency and propriety, to cause grave or widespread offence.

• To safeguard against the indiscriminate use of Advertising in situations or of the promotion of products which are regarded as hazardous or harmful to society or to individuals, particularly minors, to a degree or of a type which is unacceptable to society at large.

• To ensure that advertisements observe fairness in competition so that the consumer’s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served. Both the general public and an advertiser’s competitors have an equal right to expect the content of advertisements to be presented fairly, intelligibly and responsibly. The Code applies to advertisers, advertising agencies and media.

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Legal Regime - Regulations1 Obscene publication or advertisement of a lottery under the Indian Penal Code. 2. Harmful publication under the Young Persons (Harmful Publications) Act, 1956.3. The indecent representation of women under the Indecent Representation of

Women (Prohibition) Act, 1986.4. Use of report of test or analysis for advertising any drug or cosmetic under the Drugs

and Cosmetics Act, 1940.5. Inviting transplantation of organs under the Transplantation of Human Organs Act,

1994.6. Advertisement of magical remedies of diseases and disorders under Drugs and

Magical Remedies (Objectionable Advertisements) Act, 1954.7. Advertisements relating to prenatal determination of sex uner the Prenatal

Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994.8. Advertisements of cigarettes and other tobacco products under tah Cigarettes and

other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003.

9. Any political advertisement forty hours prior to polling time under the Representation of People Act, 1951.G S Sreekiran

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• Alcoholic beverages advertisements are banned.

• Tobacco products advertisements are banned.• Mis leading advertisement/communication.• Faulty claims are banned• Defaming of persons/company/country are

regulated

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Social Responsibility

• Demarketing – all efforts to encourage consumers to reduce their consumption of a particular product or service.

• Eg: Anti Smoking campaigns, Anti sex determination & Abortion campaigns.

• Avoid using Fur products (PETA)

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Cont.

• Enforced Marketing – Govt./Agency reinforce the use of specific product/service for the benefit of the individual/society.

• Eg: Use Seat belts, Use Helmets campaigns,• Reduce - Reuse – Recycle campaigns.• Teach India campaigns, Reforestation (Plat a

tree)campaigns.

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• Cause Related Advertisement – Marketing campaign of a product/service illustrated with a ‘social cause’ or ‘message’. The ‘social cause’ or ‘message’ will be directly or indirectly related to the core value of the product or brand.

• Eg: Tata Tea Jago re, Idea, Saffola, Aircel

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Cont

• Cause Related Marketing – Marketing efforts of specific product simultaneously promoting a ‘cause’. – ITC (Classmate note book – fixed portion of purchase price goes for underprivileged child education)

• Other products or services associated with social responsibility initiatives/NGOs (CRY)

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Review – Module 1

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