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Copyright 2006Pearson Education Canada Inc.

ADVERTISING AND SALES

PROMOTION MANAGEMENT

UNIT I


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Copyright 2006 Pearson Education Canada Inc.

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Advertising

Introduction

Definitions of Advertising

Features of Advertising

Objectives of Advertising

Importance of Advertising


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11-3

Introduction

The word advertising comes form the latin

word "advertere meaning to turn the

minds of towards".


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11-4

DEFINITIONS OF ADVERTISING

American Marketing Association has definedadvertising as any paid form of non-personalpresentation of ideas, goods and services by anidentified sponsor.

According to Webstar, Advertising is to give publicnotice or to announce publicity.

According to Gardner, Advertising is the means ofmass selling that has grown up parallel with and hasbeen made necessary to mass production.


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FEATURES OF ADVERTISING

Communication Information Persuasion

Profit Maximization Non-personal presentation Identified sponsor Consumer choice

Art, Science and Profession Element of MarketingMix Element of Creativity


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OBJECTIVES OF ADVERTISING 1.To introduce a new product by creating interest for it among the

prospective customers.

2.To support personal selling programme. Advertising maybe usedto open customers' doors for salesman.

3.To reach people inaccessible to salesman.

4.To enter a new market or attract a new group of customers.

5.To light competition in the market and to increase the sales asseen in the fierce competition between Coke and Pepsi.

6.To enhance the goodwill of the enterprise by promising betterquality products and services.

7.To improve dealer relations. Advertising supports the dealers inselling the product. Dealers are attracted towards a product whichis advertised effectively.

8.To warn the public against imitation of an enterprise's products.


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11-7

IMPORTANCE OF ADVERTISING

Promotion of sales

Introduction of new product

Creation of good public image Mass production

Research

Education of People

Support to press


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11-8

CLASSIFICATION OF ADVERTISING

Classification on The Basis of Area Coverage

Classification on The Basis of Audience

Classification on The Basis of Media Classification on The Basis of Function

Classification on The Basis of Advertising Stages


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11-10

Classification on The Basis of Audience

Consumer Advertising

Industrial Advertising

Trade Advertising (to influence wholesalers and dealers) Professional Advertising


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Classification on The Basis of Function

Direct Action and Indirect Action Advertising Discount sales, sale along with free gifts, coupon sales etc.

Primary and Selective Advertising

Product and Institutional Advertising


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Classification on The Basis ofAdvertising Stages

Advertising at Pioneering Stage

Advertising at Competitive Stages

Advertising at Retentive Stage or ReminderAdvertising


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11-14

Types of Advertising

Social advertising

Political advertising

Advocacy advertising

Advertising by Google

Retail advertising

Financial advertising

Corporate imageadvertising

Public relationadvertising

Institutional advertising

Internet advertising

Primary demandadvertising

Selective demandadvertising

Product advertising

Service advertising

National advertising


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11-16

Political Advertising

Political advertising is undertaken by political partiesto motivate the general public in favour of theideology of the party in question. Political advertising

are intensively made during election times to gainfavour of the voters. Such advertising promote plansand policies of the concerned party.


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Advocacy advertising

We often come acrossed advocacy advertised relatingto the use of family planning methods. Conservationof scarce resources, maintaining green environment.


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11-18

Advertising by Google

Ponds Age Miracle : Looking young is now reallyeasy Get Ponds tips and tricks! www.Ponds.in

Use Olay Total Effects : www.Olay.in/SkinCare

Tips for Beautiful Skin : Get the right beauty tipsfor your skin from the Experts. Apply Now!KayaClinic.com

Gym Management Course : Learn how tosuccessfully manage a Gym, Fitness Club or a Health

Club! www.keleven.com
http://www.ponds.in/http://www.ponds.in/http://www.olay.in/SkinCarehttp://www.keleven.com/http://www.keleven.com/http://www.keleven.com/http://www.keleven.com/http://www.keleven.com/http://www.keleven.com/http://www.keleven.com/http://www.olay.in/SkinCarehttp://www.olay.in/SkinCarehttp://www.olay.in/SkinCarehttp://www.olay.in/SkinCarehttp://www.olay.in/SkinCarehttp://www.ponds.in/http://www.ponds.in/http://www.ponds.in/http://www.ponds.in/http://www.ponds.in/


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11-20

Financial Advertising

When an advertising message is directed to attractfor raising capital, it is called financial advertising.The banks, insurance companies and commercialundertakings collect required funds from the savingsof the people by motivating them to post-ponepresent expenditure to future-period. An investorconsiders two things before investing his hard earnedsavings.

(1) Safety of investment (2) Return on investment


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Corporate image advertising

Corporate Image advertising designed or aimed tocreate a proper attitude towards the seller and tobuild goodwill or image for the advertiser

(manufacturing concern or the selling concern) ratherthan to sell a specific product or service.


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Public relations advertising

The basic objective of public relations advertising isto establish cordial and healthy relations with thecustomers, bankers, suppliers, Government. Patronsand the general public.

Through public relations advertising companyannounces the changes in its policies, itsdevelopmental activities its position and stand whenthe employees are on strike. It helps the company toremove mis-concepts about the company created by

interested groups. During the periods of short supplyof goods the public relations advertising helps to holdthe interest of the customers.


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Internet Advertising The Internet facility has been around for some 50 years. It

actually began in the early 1960s in USA, where the U. S.Department of Defense saw it as a means of supercomputercommunication for researchers and military facilities acrossthe country. Until its commercial explosion in 1990s, theInternet remained a relatively obscure network of linked

computers - mostly by academics, military researchers, andscientists around the world to send and receive electronicmail, transfer files, and find or retrieve information fromdatabases

At present, Internet the fastest growing medium in history,offers incredible opportunities for a wide range of people inboth business and advertising. For advertisers, there is awhole new world of potential customers.


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Primary Demand Advertising

The main objective of Primary demand advertising isto create demand for a new product or productcategory. This is necessary in the case of a newly

developed products or the products which are costlyin nature. For example, cars, refrigerators, washingmachines, watches, etc.


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Selective Demand Advertising

Selective demand advertising is done to meet thegrowing competition mainly in growth stage of thelife cycle of the product. Here, the goal of advertising

is to push the demand of specific product or service.


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National Advertising

It is generally undertaken by manufactures ofbranded goods, for which, advertising messages iscommunicated to consumers allover the country.

Almost all possible mass media, including national

newspapers, radio and television network, areemployed for national advertising. Product services,and ideas, which have demand all over the country,are suitable for national advertising. In India, IndianAirline Hindustan Lever Ltd., Vicco, Godrej, Bajaj and

Kirloskar are a few leading advertisers at nationallevel. Likewise, detergents, soaps, toothpastes,cosmetics, scooters, cars, and bicycles, are some ofthe products, which are advertised all over thecountry.


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Evolution of Advertising

Advertising evolved and changed in obedience to theneeds of society and of the country. Advertisers havebeen attuned to public needs and have been engagedin the promotion of goods, services and ideas.


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The Advertising History

In past when the Ruler started communication with mass forany purpose it was starting of early advertising, but it washaving some limitations for eg.

Limited Reach Noise

Time Taking


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1700s

In 17th

century, newspaper started appearing invarious part of the world

Newspaper advertising began to develop

First newspapers had the large numbers of ads

At the end of century, great number of commercialnewspapers were published in Europe


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1800sAround 1840, several people were selling space in

newspapers in New York & other cities

Space-brokers, who later on developed into adagencies. Came into existence

Competitive advertisement came into existencelater in 18thcentury


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Contd.Advertising marked a great expansion 1840smanufacturers began using magazine ads to

reach the mass market

In 1841, in the USA the first advertising agency was

started In 1871,Bates set up the 1stad agency in US which

offered creativeservices

1888, the first ad journal Printers Ink was

launched in US 1893Coca Cola registered its trademark


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Development of modern advertising

America are the forerunner of this but it has itsroot in England

Industrial revolution plays an important role

After World war 1st,the era of salesmanship arrived

In 1920, radio emerged as a powerful ad medium

Great depression came in 1930 due to wars


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2ndstage(1947-1977)

India started on the path of self-reliance

Press commission in 1953

Total spent on ads in India was Rs.5 crore

3.5 crore on print ads

1.5 crore on hoardings


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3rdstage(1977-2000)

Second press commission, 1983

At this point, ad revenues touched Rs200 crore

Increase in revenue was phenomenal, almost 40times

1982 was a trademark year because colour TVcame in, changing the Indian lives completely

TV reached to 70 % of the Indian people


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Father of Indian Advertising

Starting RK Swamy in 1973 at the age of50, when most others think of plumpretirement benefits and comfortable

options, and then making it in the Top 10list within five years is what most dreamabout in their twenties. He is the man whoput Madras (now Chennai) on the map ofIndian advertising, and yet he was one who

never really looked at communication witha polarized, north-south point of view.


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The Advertising Industry

Agencies

The Media

The Advertiser

The support services & suppliers

The Regulators

The Consumers


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Ogilvy & Mather Worldwide


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Omnicom Group


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Copyright 2006 Pearson Education Canada Inc.11-44

McCann-Erickson Worldwide


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Examples of Creative

Advertisement: zoozoos ads
http://www.google.co.in/images?hl=en&q=zoozoos+ads&um=1&ie=UTF-8&source=univ&ei=sv3gS_i9IoGyrAeXptmoBw&sa=X&oi=image_result_group&ct=title&resnum=6&ved=0CCcQsAQwBQhttp://www.google.co.in/images?hl=en&q=zoozoos+ads&um=1&ie=UTF-8&source=univ&ei=sv3gS_i9IoGyrAeXptmoBw&sa=X&oi=image_result_group&ct=title&resnum=6&ved=0CCcQsAQwBQ


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Social message advertising


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Mass demand has been created almost

entirely through the development of

Advertising


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For the development of advertising and to get bestresults one need to follow the advertising processstep by step.

Ad ti i P


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Advertising Process

The following are the steps involved in the process

of advertising: Briefing

Knowing the objective

Research

Target Audience Media Selection

Setting the budget

Designing and creating the Ad

Perfection

Place and time of Ad

Execution

Performance


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Step 1 - Briefing: the advertiser needs to briefabout the product or the service which has to beadvertised and doing the SWOT analysis of the

company and the product.

Step 2 - Knowing the Objective:one should firstknow the objective or the purpose of advertising.i.e. what message is to be delivered to the

audience?

Step 3 - Research: this step involves finding outthe market behavior, knowing the competitors, whattype of advertising they are using, what is the

response of the consumers, availability of theresources needed in the process, etc.

Step 4 Target Audience: the next step is to


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Step 4 - Target Audience: the next step is toidentify the target consumers most likely to buy theproduct. The target should be appropriatelyidentified without any confusion. For e.g. if the

product is a health drink for growing kids, then thetarget customers will be the parents who are goingto buy it and not the kids who are going to drink it.

Step 5 - Media Selection: now that the targetaudience is identified, one should select anappropriate media for advertising so that thecustomers who are to be informed about theproduct and are willing to buy are successfullyreached.

Step 6 - Setting the Budget:then the advertisingbudget has to be planned so that there is no shortof funds or excess of funds during the process ofadvertising and also there are no losses to thecompany.


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Step 10 - Execution: finally the advertise isreleased with perfect creation, perfect placementand perfect timing in the market.

Step 11 - Performance: the last step is to judgethe performance of the ad in terms of the responsefrom the customers, whether they are satisfied withthe ad and the product, did the ad reached all thetargeted people, was the advertise capable enoughto compete with the other players, etc. Every pointis studied properly and changes are made, if any.


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ADVERTISING CAMPAIGN PLANNING


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Steps:

1. Analyzing the market

2. Determining advertising objectives

3. Establishing budgetary and control system

4. Developing advertising strategy for:

Selecting media

Creating messages

5. Coordinating advertising with other promotionaland marketing methods

6. Evaluating results


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The process of advertising campaignplanning in detail

The market place

Marketing objectives

Advertising

objectives

Budget

Creative strategy,

media And message

Translate into

consumer terms

Create and

produce ads

Coordinate with

Other methods

Launch into

Dynamic world

Evaluate

pretest

Evaluate

posttest


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Step 1: Analyze the market

1. Determining the demand factors.

2. Identifying the target group.

3. Assess the competition

4. Legal and regulatory environment


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Step 2: Determining advertising objectives

Defining the Marketing Objectives: Decide what themarketing objectives is out to achieve in terms of:

Increase sales of brand x

Increase market share Generate 500 newenquiries each month Increase distributionpenetration

Establish a network of distributors


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Defining the communication objectives: Decide what thecommunication objectives is out to achieve in terms of:

Increasing brand awareness

Positioning the service as the friendliest on the

market Repositioning Guinness from an old mansdrink to a young mans drink

Maintaining brand x as the preferred brand


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Step 4: Developing advertising strategy

How we get there- how the objectives are achieved.Strategy drives the tactics in the same direction

Adverting strategy must encompass the totality of whata product or service is and how it is sold to the

consumer The strategy summarizes the tactics, by helping to

harmonize and integrate all tactical communication tools.

The strategy should also include selection of targetmarkets, positioning, selection of communication tools,

sequence of communication tools (are different toolsused at different stages?), time scales media selectionand creating messages


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Step 5: Coordinating advertising with otherpromotional and marketing methods

For an advertising program to be successful,elements as production, delivery and inventory must

be integrated with the advertisement plan An advertising planning must consider to get the

maximum cooperation from distributors, dealers andsalespeople


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Step 5: Evaluating advertising results

Pre-testing: It is a research technique which

determines the reaction to advertising by a

representative sample of the target market before .

The goal of pre-testing is to eliminate errors or

weaknesses in program design before considerable

sums of money are invested


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Posttesting:

This is done only after a full commitment to acreative approach and a schedule of media ahs been

made . The objective is to ensure that future

campaigns will be more effective .

F t I fl i th Pl i f


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Factors Influencing the Planning of anAdvertising Campaign

1. The Organization its reputation, position in the market. 2. The product e.g. Consumer (Perishable, durable or specialty)

goods, or industrial goods etc. 3. The market the nature of customers, their income, their buying

behavior, and their location. 4. The competition. 5. The absolute price of the product, Competitors price etc. 6. The channels of distribution. 7. The budget, the advertising theme, etc.

8. The media, the advertising schedule etc. 9. The Govt. regulations and controls, restriction on certain

products, restriction on certain media to carry out certain ads.Etc.


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CompetitiveComparative

Pioneering


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Types of Communication/Advertising Models:-

AIDA Model

DAGMAR Model Hierarchy-Effect Model


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AIDA model is initiatory and simplest. AIDA model waspresented by Elmo Lewis to explain how personal sellingworks. It shows a set of stair-step stages which describethe process leading a potential customer to purchase.

The stages, Attention, Interest, Desire, and Action, forma linear hierarchy. Exp:- Reliance Communication GSMLaunch.

Attention:- can elaborate by advertisement whereMukesh Ambani spoke about the new project being

introduced on his fathers70thbirthday. Interest:- is generated as the company spokesperson

featured in the ad, as a representative of the companyimage and also spoke about introducing a newtechnologyGSM.
http://d/3rd%20SEM/Retail%20advertising&%20event%20management/AIDA.docxhttp://d/3rd%20SEM/Retail%20advertising&%20event%20management/AIDA.docxhttp://d/3rd%20SEM/Retail%20advertising&%20event%20management/AIDA.docxhttp://d/3rd%20SEM/Retail%20advertising&%20event%20management/AIDA.docx


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Desire:- was created with various offers like freeSMS, 40paise STD calls, 5Rs./day, Lifetime validityand various coupons etc.

Action:- In the last stage people are moved to actionin the form of buying product/Service etc.

It demonstrates that consumers must be aware of aproduct's existence, Be interested enough to payattention to the product's features/benefits, and

Have a desire to have benefits from the product'sofferings. Action, the fourth stage, would come as anatural result of movement through the first threestages.


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Among advertising theories, the hierarchy-of-effectsmodel is predominant. It shows clear steps of howadvertising works

Hierarchy of effects Model can be explained with thehelp of a pyramid.


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PURCHASE

CONVICTION

PREFERENCE

LIKING

KNOWLEDGE/COMPRIHENSION

AWARENESS


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Awareness:- If most of the target audience is unaware

of the object, the communicators task is to buildawareness, perhaps just name recognition, with simplemessages repeating the product name. Like:- Parle-G. Gmane Genius.

Knowledge:- The target market might have productawareness but not know much more; hence this stageinvolves creating brand knowledge. This is wherecomprehension of the brand name and what it standsfor become important. Exp-Aircel Pocket Internet

Liking:- If target market know the product, how do theyfeel about it? If the audience looks unfavorablytowards the product so communicator has to find outwhy. Exp- India Today- Send Suggestions to us


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Preference:- The target audience might like the product butnot prefer it to others. In this case, the communicator musttry to build consumer preference by promoting quality, value,performance and other features.

Conviction:- A target audience might prefer a particularproduct but not develop a conviction about buying it. Thecommunicators job is to build conviction among the targetaudience.

Purchase:- Finally, some members of the target audience might

have conviction but not quite get around to making thepurchase. They may wait for more information or plan to actlater. The communicator must need these consumers to takethe final step, perhaps by offering the product at a low price,ff i i l i i d

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