m9-advertising management.docx

Upload: nikita-mistry

Post on 04-Apr-2018

235 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/30/2019 M9-Advertising Management.docx

    1/48

  • 7/30/2019 M9-Advertising Management.docx

    2/48

    M9-Advertising Management 1

    INTRODUCTION

    Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some actionwith respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to acommercial offering, although political and ideological advertising is also common. Advertising messages are usually paidfor by sponsors and viewed via various media; including traditional media such as newspapers, magazines, television, radio,outdoor or direct mail; or new media such as websites and text messages.

    Commercial advertisers often seek to generate increased consumption of their products or services through "branding,"which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the

    minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product orservice include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizationsmay rely on free modes of persuasion, such as a public service announcement.

    Advertising is a non-personal form of promotion that is delivered through selected media outlets that, under mostcircumstances, require the marketer to pay for message placement. Advertising has long been viewed as a method of masspromotion in that a single message can reach a large number of people. But, this mass promotion approach presents problemssince many exposed to an advertising message may not be within the marketers target market, and thus, may be an

    inefficient use of promotional funds. However, this is changing as new advertising technologies and the emergence of newmedia outlets offer more options for targeted advertising.

    Advertising also has a history of being considered a one-way form of marketing communication where the messagereceiver (i.e., target market) is not in position to immediately respond to the message (e.g., seek more information). This toois changing. For example, in the next few years technologies will be readily available to enable a television viewer to click abutton to request more details on a product seen on their favorite TV program. In fact, it is expected that over the next 10-20

    years advertising will move away from a one-way communication model and become one that is highly interactive.

    Another characteristic that may change as advertising evolves is the view that advertising does not stimulate immediatedemand for the product advertised. That is, customers cannot quickly purchase a product they see advertised. But as moremedia outlets allow customers to interact with the messages being delivered the ability of advertising to quickly stimulatedemand will improve.

    Advertising is a public announcement to inform and persuade people to buy a product, a service or an idea. Anadvertisement would include any notice, circular, label, wrapper or any other document or any announcement made orally, orby means of producing or transmitting light, sound or smoke.

    Every day, we see and hear hundreds of advertisements. Let us consider a few of them.

    Posters informing us about the latest Bollywood films to be released. Big hoardings telling us which toothpaste would give us the cleanest and strongest teeth. The RJ, or radio jockey, asking us to buy things from the big shop in the centre of the city for the most fashionable

    clothes.. The huge wall carrying the name and address of the local beauty parlour, which will make even the most ordinary lady

    look as glamorous as a film star! Wouldnt you like to know more about this fascinating process?

    Definition of Advertising

    The non-personal communication of information usually paid for & usually persuasive in nature, about products (goods &services) or ideas by identified sponsor through various media -Arenes (1996)

    Any paid form of non-personal communication about an organisation, product , service, or idea from an identified sponsor.-Blech & Blech (1998)

    Paid non-personal communication from an identified sponsor using mass media to persuade influence an audience.

    -Wells , burnett, & Moriaty (1998)

    The element of the marketing communication mix that is non personal paid for an identified sponsor, & disseminated throughmass channels of communication to promote the adoption of oods, services, person or ideas.

    -Bearden, Ingram, & Laforge (1998)

    An informative or persuasive message carried by a non personal medium & paid for by an identified sponsor whoseorganisation or product is identified in some way. -Zikmund & d'amico (1999)

    Impersonal, one way communication about a product or organisation that is paid by marketer.

    -Lamb, Hair & Mc. Daniel (2000)

    Advertising is any paid-for communication overtly intended to inform and/or influence one or more people.

    -Jeremy Bullmore, Director, WPP

    Advertising says to people, 'Here's what we've got. Here's what it will do for you. Here's how to get it. -Leo Burnett

    I do not regard advertising as entertainment or an art form, but as a medium of information. -David Ogilvy

    UNIT 1: ADVERTISING AN INTRODUCTION

  • 7/30/2019 M9-Advertising Management.docx

    3/48

    M9-Advertising Management 1

    FEATURES OF ADVERTISING

    1.Advertising provides information: The basic purpose of advertising is to provide information about products/services toprospective buyers. The details of products such as features, uses, prices, benefits, manufacturer's name, and instructions tobe followed while using the product are given in the advertisements. The advertising message and brand name are alsogiven. The information supplied gives education and guidance to consumers and facilitates correct selection of goods bythem.

    2.Paid form of communication: The advertiser has to pay to the media for giving publicity to his advertising message. Hepays for the advertisement and naturally he decides the size, slogan, etc. given in the advertisement. Advertising is a formof paid communication.

    3.Non-personal presentation: Advertising is non-personal in character as against salesmanship which is personal (face toface communication) in character. In advertising, the message is given to all and not to one specific individual. This rule isapplicable to all advertising media including press. However even in advertising target consumers or target market can beselected for making an advertising appeal.

    4.Gives publicity to goods, services and ideas: Advertising is basically for giving information to consumers. Thisinformation is always related to the features and benefits of goods and services of different types. Advertising gives newideas to consumers as its contents are meaningful. The aim is to make the ideas popular and thereby to promote sales. Forexample, advertising on family planning, family welfare, and life insurance is useful for placing new ideas before thepeople.

    5.Basically for persuasion: Advertising aims at persuasion of potential customers. Advertising attracts attention towards aproduct, creates desire to have the same and finally induces consumers to visit the market and purchase the same.Advertising has psychological impact on consumers. It influences the buying decisions of consumers.

    6.Target oriented: It is possible to make intensive advertising by selecting a specific market or specific segment ofconsumers (e.g. children, housewives, etc.) for the purpose of advertising. This selection of a specific market is called

    target market. Advertising becomes effective and result oriented when it is target oriented. The waste in advertising can beminimized through such target oriented advertising.

    7.An Art, Science and Profession: It is now universally accepted that advertising is an art, science and a profession. It is anart as it needs creativity for raising its effectiveness. Advertising is a science as it has its principles and rules. Advertising isnow treated as a profession with its professional bodies and code of conduct for members. Advertising agencies and spacebrokers function as professionals in the field of advertising.

    8.Important element in marketing mix: Advertising is an important element in marketing mix. It supports the salespromotion efforts of the manufacturer and makes positive contribution in sales promotion provided other elements in themarketing mix are reasonably favorable. This is natural as advertising alone is not adequate for promoting sales. Manycompanies now spend huge funds on advertising and public relations

    9.Creativity - the essence of advertising: Advertising is a method of presenting a product in an artistic, attractive andagreeable manner. This is possible through the element of creativity which is the essence of advertising. Creativity can beintroduced by creative people (professionals) in the field of advertising. They introduce new techniques for introducing

    creativity. Without creativity, advertising will be like a body without a soul.

    OBJECTIVES OF ADVERTISING

    The main objective of advertising is to help a business firm to promote its products and increase the sales. But, there aresome other goals also which a firm can achieve with the help of advertising. The objectives to be achieved throughadvertising are as follows:

    1.Introduction of new product: Business firms keep on introducing new products in the market and have to inform theprospective customers about its features, price, usage, availability etc. Advertising not only attracts their attention but alsohelps them in forming an opinion about the product and making the best purchase decisions.

    2.Increase in sale: Advertising helps in increasing the sale of firms products. It also helps in turning non -users of productsto users of products and also in attracting the consumers of competitors products. Business firms make use of advertising

    to inform the consumers about the advantages and superiority of their product.3.Maintaining existing buyers: Now-a-days new products keep on entering in the market at a fast pace and consumers tend

    to switch over to the new products. Advertising is used to remind the consumers about how good their products or servicesare and that they are still in the market as old and reliable ones. The idea is to prevent decline in the sale of their product inthe market.

    4.Create and enhance goodwill of the firm: Advertising helps in building reputation of the business house. Throughadvertising, the firms can communicate their achievements to the consumers and clarify any misconceptions or doubts inthe mind of the public about themselves or their products, if any. This helps in creating a good image of their firm in theminds of consumers, workers, investors, government and so on.

    5.Dealer support: Another objective of advertisement is to provide the necessary support to firms dealers and distributors.Hence some advertisements, besides the information about the product characteristics, price etc., include a list of dealersand distributors.

    6.Create and enhance brand image: Advertising is also used for creating a brand image which helps in building customersloyalty. When customers develop brand loyalty, they do not shift to other brands easily. Brand image gets enhanced withrepeated advertisements.

  • 7/30/2019 M9-Advertising Management.docx

    4/48

    M9-Advertising Management 1

    7.Helps in personal selling: Advertising facilitates the process of personal selling. The salesperson job is made easier if thecustomer has familiarity with the product. This is achieved through advertising. A customer is more receptive to thesalesperson if he/she already has some idea about the product.

    IMPORTANCE OF ADVERTISING

    When a brand is to be popularized, the entrepreneurs realize the importance of advertising. The following article is abrief and comprehensive elaboration of advertising and the crucial role that it plays in the business world.

    Advertising is an important aspect of promoting almost any product, service or brand. Most of the dictionaries also referto advertising as,

    an activity that involves the public promotion of goods and services, or a brand or a company or an establishment a business of drawing public attention to goods and services and their merits a process that calls attention to a particular good or service a process that makes publicity for a said subject (such as a good, service, product, brand, person, establishment, company

    or firm)

    Thus, from the above definition it can be concluded that advertising is a task that involves making the public aware andconscious about the subject that is being advertised. Neo-classical economists and modern economists often criticizeadvertising by calling in a profession that creates awareness about a product in the consumer's brain, which eventually leadsto a craving to own that product. This continual process that is brought about by advertising eventually leads to increasingdemand and eventual scarcity of resources. Moving on to importance of advertising

    Why is Advertising Important?

    The aim of any business is to maximize the sales of that business. This maximization results into a lot of revenue and

    profits for the company.Advertising ensures that the sales of the business increase. The second importance is that the productwhich is sold under the banner of a specific brand also becomes a household name. For example, Coke or coca-cola is ahouse hold brand name. Same is the case of Pepsi. Such popular brand names have huge customer base that is loyal to thebrand and continues to purchase the product for a prolonged time period. Such a customer base also introduces the productand brand to many other people.

    Creation of awareness is the primary objective of any advertisement. Thus, when any product is advertised, peoplebecome aware about its existence and as mentioned above, a need and craving to purchase and own the commodity.

    Importance of Advertising in Business

    From the business point of view, advertising not just optimizes sales and product promotion but the goodwill of thespecific brand that is earned is an important asset. A well known brand not only has a good customer base but it is a greatground to introduce new products under the same banner. In such a case, there is a very high probability that people are goingto purchase the new product out of curiosity. It is often said that reputation gained and maintained due to advertising helpsout the business throughout the life time. The logic behind that is simple. When advertising creates awareness, people knowabout the product and when they known about the product, they pay attention to its newer advertisements and the probabilitythat the person will buy the product will increase. To conclude the paragraph it can be said that advertising helps businessgain loyal customers as well as a good platform in the entire market.

    Importance of Advertising in Marketing

    Apart from gaining a loyal customer base, advertising is often successful in marketing the brand and conveying financialdetails about the brand to the consumers. The pricing details often generate an interest and the process of money planning,starts ticking in the person's mind.

    Offers such a buy 2 get 1 free or discounts are introduced to the consumers successfully through advertising. Such offersresult into a spurt of sales and are quite instrumental for clearance sales, new introduction sales, re-release sales, etc.Advertising thus, plays quite a comprehensive role in marking policies.

    Importance of Advertising on the Internet

    There is a significant importance of online advertising due to the fact that an online advertisement results into globalawareness. Today, when a person feels the need to purchase something, his first reaction is to search the web. With youradvertisement being present on the web, there is a high possibility that the consumer is going to purchase your product. Infact, financially speaking online marketing services are much more convenient for consumers and cheap for producers as itdrastically brings down the cost of advertising.

    Role of Advertising in Selling Consumer Durables

    The following points suggest the role of advertising in selling sales promotion of consumer durables.

    1. Advertising is useful for giving information and guidance to prospective buyers of consumer durables. Here, advertisinggives the details of special features, benefits, price discount, and other concessions offered, etc. to the purchasers ofconsumer durables and encourage interested customers to take initiative in purchasing the durable articles.

  • 7/30/2019 M9-Advertising Management.docx

    5/48

    M9-Advertising Management 1

    2. Effective advertising of consumer durables creates proper background for personal selling. An attraction is created in theminds of consumers and they are encouraged to visit retail shop in order to see the article or look at the demonstration ofits working. Here, the salesman can use his skills and see that the article is purchased by his visitors.

    3. Advertising of consumer products enables a manufacturer to face market competition effectively. He can give specialfeatures of his product and also suggest how his product is superior to that of his competitors. This is useful for salespromotion of consumer durables. Even consumers can make appropriate selection of a suitable product by studying theadvertisements of competitors.

    4. Advertising of consumer durables during the festival period acts as a reminder to consumers. They remember to purchasea useful product on the eve of the festival. This technique facilitates sales promotion during the festival period.

    5. The seller of consumer products (manufacturing company) may like to offer attractive gift or price discount to interestedconsumers. Here, advertising can be made effectively. This encourages consumers to purchase a durable product. Suchadvertisements are common during festivals. Even local dealer may offer certain concession to his customers. He canmake suitable advertisement of such concession for large scale selling at the local level.

    LIMITATIONS OF ADVERTISING

    Many people consider advertising to be a wasteful activity and something harmful for the customers and the society inmany ways. Their arguments against advertisement are as follows:

    (i) Advertising multiplies wants: People tend to desire and buy products as they see in advertisement even if they do notactually need or afford them. This multiplication of wants may put them under financial and psychological pressure.

    (ii) Advertising adds to the cost and price of product: Money spent on advertising eventually results in increased cost ofthe product, which is passed on to the consumers through increased prices. You must have noticed that the brands which

    are advertised heavily in different media are found to be priced higher as compared to those which are not so heavilyadvertised.(iii)Creation of monopoly: Business firms which can spend heavily on advertising are usually the ones who grab a bigger

    share of the market. Such firms generally have a monopoly which results in unequal opportunity for small producers tomake a place for themselves in the market. They do not get a fair opportunity to compete.

    (iv)Advertising may affect the value-system of society: Advertising may introduce ideas or concepts alien to our culture.These new values generated or propagated by advertising may affect our social, moral and ethical values adversely.Objectionable appeals like sex, horror etc. are sometimes used in advertisement to attract attention.

    (v) Motivation for wrong or dangerous deeds: The way advertisements project people consuming liquor, cigarettes orpan-masala, may feel tempted by the people to try and then get addicted to such products which are not good for health.Similarly, models are shown doing dangerous acts like jumping from the top of a hill which some children may try tocopy and may face the accidents.

    (vi)Advertising may not increase overall demand: Advertising does not always increase demand. In many cases, anumber of firms manufacturing similar products may advertise vigorously. This may not result in an increase in the total

    demand for the product but simply shift demand from one brand to another.

    ADVERTISINGAN EFFECTIVE COMMUNICATION TOOL

    Advertising aims must be sloping around the communication process. Communication tasks are building up brandalertness, altering consumer thoughts, colligating pleasing ideas with products, and communicating customer about productdimensions and properties.

    The elemental determination of advertising is to assist sale probability of a product or a service. Advertising as apromotional technique augments tendency to purchase, moving the prospect gradually towards the product to make apurchase decision. Of course, advertising is only one of several communication forces. It actuates the buyer throughconsecutive stages such as awareness, comprehension or recognition, conviction and action. Advertising objectives may bedivided into four stages of commercial communication which are explained below: -

    Cognizance: The prospect must be informed about the subsistence of the brand or company in the market. Awareness is thebare minimum goal of advertising. The buying process starts after informing the consumer about the product or service.

    Conception: The prospect must understand what the product is and what it will do for him. The apprehension levelindicates that people are not only aware of the brand or company but they also know the brand name and can be familiarwith the package or trademark. But they are not yet influenced that they want to buy.

    Conviction: The prospect must be mentally convinced to buy the brand or the product. The convinced level shows brandpreference and intention to buy the product in the near future.

    Action: the prospect takes meaningful action. Purchase decision is duly taken. These four goals of ad in communicationterms are measurable results.

  • 7/30/2019 M9-Advertising Management.docx

    6/48

    M9-Advertising Management 1

    INTEGRATED MARKETING COMMUNICATIONS (IMC)

    Integrated Marketing Communications (IMC) is the coordination and integration of all marketing communication tools,avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and otherend users at a minimal cost.

    Integrated marketing communications (IMC) is a process for managing customer relationships that drive brand valueprimarily through communication efforts. Such efforts often include cross-functional processes that create and nourishprofitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent tothese groups and encouraging data-driven, purposeful dialog with them. IMC includes the coordination and integration of allmarketing communication tools, avenues, and sources within a company into a seamless program in order to maximize the

    impact on end users at a minimal cost. This integration affects all firm's business-to-business, marketing channel, customer-focused, and internally directed communications.

    MARKETING COMMUNICATIONS MIX

    Promotion describes the communications activities of advertising, personal selling, sales promotion and publicity/publicrelations.

    Advertising is a non-personal form of mass communication, paid for by an identified sponsor. Personal selling involves aseller attempting to persuade a potential buyer to make a purchase. Sales promotion encompasses short-term activities such asgiving coupons, free samples, etc. that encourage quick action by buyers. The company has control over these three variables,but has little control over the fourth variable, publicity/public relations. This is another non-personal communication methodthat reaches a large number of people, but it is not paid for by the company and is usually in the form of news or editorialcomment regarding a companys product or service. Companies can gain some control over the publicity it receives by therelease of news items.

    Put together, these promotional activities make up the promotional or communications mix with varying emphasis oneach element according to the type of product or service, characteristics of consumers and company resources. Company size,competitive strengths and weaknesses and style of management all influence the promotional mix.

    Other communications elements with which promotion must be coordinated are the product itself, price and distributionchannels used. Product communication, including brand name, design of packaging and trade-marks are all product cueswhich convey a message about the total product offering. Price can communicate different things under varyingcircumstances, for instance conveying prestigeappeal for those buyers who perceive that a high price is equal to quality andprestige. The place in which the products are to be found also has notable communications value. Retail stores havepersonalities that consumers associate with the products they sell. Products receive a halo effect from the outlets in which

    they can be found and two stores selling similar products can project entirely different product images. For example, aperfume sold through an upmarket store will have a much higher quality image than one sold through supermarkets

    Advertising

    This is the mass media method of marketing communication and provides exposure to the largest, most geographicallydispersed audience at the lowest cost per head. That being said, advertising costs can ad up quickly with mediums liketelevision, radio and even online advertising which can be prohibitively expensive for many businesses.

    Other traditional forms of paid advertising include newspapers and magazines, the Yellow Pages, billboards, signs andposters. As well, advertising on buses, benches, gas pumps and even public restrooms is in vogue today. Basically, anymedium which provides an opportunity to target "eyes and/or ears" can be a venue for advertising and you can see examplesof successful promotion in the most unlikely places.

    Direct Marketing

    This marketing communication competency enables companies to reach out directly to consumers without intermediarychannels such as those required for advertising. This component of the marketing communication process includes directmail, catalogs, coupons and inserts, telemarketing, online marketing and television infomercials. Done correctly, DirectMarketing is extremely effective in the long run and allows for a targeted marketing approach to specific consumers to createvaluable lasting relationships.

    Direct Marketing is the marketing communication method that enables companies to interact with a relatively largenumber of customers and encourage a "call to action" or "most wanted response" which is usually a purchase. The downsideof Direct Marketing is that it is usually unsolicited and seen as a nuisance by the general public. Telemarketing, e-mailspamming and junk mail are universally despised and so Direct Marketing tools should be used with thought and caution.Visit the Direct Marketing Association website for guidance on legal and ethical Direct Marketing.

    Personal Selling

    This is the most dreaded as well as the most expensive of all methods in the marketing communication process.However, if you are a small business owner or otherwise have the ability to personally sell and build relationships withcustomers, it can be one of the most rewarding aspects of the marketing process, both personally and professionally.

    Just as with traditional marketing, successful selling begins and ends with the customer. The whole objective is toascertain needs and create the best solution for customers. Along the way you build relationships and continue to gatherinformation about how you can better serve customers which is your reason for being in business in the first place.

  • 7/30/2019 M9-Advertising Management.docx

    7/48

    M9-Advertising Management 1

    Sales and marketing are fundamental to the survival of any business and both involve creating customers for the businessvalue you have created. The former targets one person (or entity) whereas the latter targets many. Both engage, inform andpersuade through a variety of communicational tools. Aligning both will increase your success regardless of conditions.Successful sales and successful marketing both begin with an attitude and that attitude is customers first.

    Public Relations

    This refers to how you handle your relationships and the flow of information with your various "publics" or the peoplewho have a stake in or are affected by your business. This includes the general public, consumers, shareholders, employees,partners, competitors and the government.

    PR becomes a more and more crucial element of the marketing communication mix as a business or organization grows

    larger. That being said, it is still a vital component of the marketing communication process to think about for smallerbusinesses as well. PR tools include press and media releases, lobbying, charitable and public events, advertorials, financialreports, promotional collateral, facility tours, sponsorships, interviews and any other method for the promotion of a positiveimage to people.

    Being "people conscious" starts with the individual and carries through to the organization. Once again, people buy frompeople at the end of the day and the most successful people and organizations are those that benefit other people the most. Aswith many facets of sales and marketing, PR also has a "good" and "bad" side.

    The good side of PR is fostering socially conscious business practices whereas the bad side is epitomized in shadypolitical lobbying, "spin doctors" and so forth that divert from the truth as opposed to promote it. Suffice it to say that intoday's connected world, more than ever, any sized organization needs to be cognizant that it operates within the largerframework of society and has corresponding responsibilities.

    The Institute For Public Relations website is an excellent resource for additional material on the role of Public Relationsin the marketing communication process.

    Sales Promotion

    This is the last traditional component of the marketing communication mix that is discussed here as part of the marketingcommunication process. Sales promotion simply refers to purchase incentives that you provide your customer with. Thesecan assume a number of forms including offering free goods or services, coupons and vouchers, gifts and prizes, discounts,samples, financial incentives, charitable promotions and any other value-add over and above your standard product orservices.

    Sales Promotions are generally short-lived, "one off" incentives intended to provide consumers with that last "push" tobuy. The main takeaway is that regardless of the size and type of your business, you should continually look at ways in whichto create additional value for customers. Your customers will appreciate it and, in facts, customers have been shown to paypremium prices for real value and real service.

    PROPAGANDAS

    Propaganda is a specific type of message presentation directly aimed at influencing the opinions or behavior of people,rather than impartially providing information. An appeal to one's emotions is, perhaps, the more obvious propaganda method,but there are varied other more subtle and insidious forms. On the other hand, a most common characteristic of propaganda isvolume (in the sense of a large amount). Individually propaganda functions as self-deception. Culturally it works withinreligions, politics, and economic entities like those which both favor and oppose globalization. Commercially it works withinthe (mass) market in the free market societies.

    Propaganda shares techniques with advertising and public relations. In fact, advertising and public relations can bethought of as propaganda that promotes a commercial product or shapes the perception of an organization, person or brand. Anumber of techniques which are based on research are used to generate propaganda. Many of these same techniques can befound under logical fallacies, since propagandists use arguments that, while sometimes convincing, are not necessarily valid.A few examples are: Flag-waving, Glittering generalities, Intentional vagueness, Oversimplification, Rationalization, Redherring, Slogans, Stereotyping, Testimonial, Unstated assumption.

    In the East, the term propaganda now overlaps with distinct terms like indoctrination (ideological views established byrepetition rather than verification) and mass suggestion (broader strategic methods). In practice, the terms are often usedsynonymously. Historically, the most common use of the term propaganda started to be in the religious context of theCatholic Church and evolved to be more common in political contexts, in particular to refer to certain efforts sponsored bygovernments, political groups, but also often covert interests. In the early 20th century the term propaganda was also used bythe founders of the nascent public relations industry to describe their activities; this usage died out around the time of WorldWar II, as the industry started to avoid the word, given the pejorative connotation it had acquired.

    Propaganda is dissemination of ideas and information for the purpose of inducing or intensifying specific attitudes and

    actions. Because propaganda is frequently accompanied by distortions of fact and by appeals to passion and prejudice, it isoften thought to be invariably false or misleading. This view is relative, however. Although some propagandists mayintentionally distort fact, others may present it as faithfully as objective observers. A lawyers brief is as much propagand a asa billboard advertisement. Education, whatever its objective, is a form of propaganda. The essential distinction lies in theintentions of the propagandist to persuade an audience to adopt the attitude or action he or she espouses.

  • 7/30/2019 M9-Advertising Management.docx

    8/48

    M9-Advertising Management 1

    Propaganda may be disseminated by or for individuals, businesses, ethnic associations, religious organizations, politicalorganizations, and governments at every level. Thousands of special -interest groups disseminate propaganda. Among suchgroups are, the patriotic and temperance societies, fire-prevention and traffic-safety committees, and leagues promotingconservation or the prevention of cruelty to animals, labor unions, and chambers of commerce. No matter what its objective,propaganda attempts to persuade through rational or emotional appeal or through the organization of personal opinion.Efficient use of the communication media is central to these efforts.

    Most people consider propaganda as biased information. Propaganda also involves making things known (in a controlledand biased manner) in gaining support for an opinion, ideology or belief. While most people consider propaganda to benegative and avoid it, some see both public relation and propaganda as the same thing.

    In this regard, the definition of public relation given by Ed Bernays can be reviewed, as ideally public relation is aconstructive force bringing to the public facts and figures resulting often in accelerated interest in matters of value andimportance, to the social, economic, and political life of the community.

    On the other hand, propaganda is often seen as a destructive force (as evident from Hitlers propaganda). It does not haveany regards for general public interest. It values and tries to further the interests of only a few.

    Propaganda does not provide un -varnished facts. It, in fact, strives on colored, biased, or one- sided information. It doesnot believe in giving a free hand to the public to make it own decision. It coerces or exhorts people by virtue of rhetoric.

    In the broadest sense, propaganda is honest and forthright communication intended to advance a cause throughenlightenment, persuasion, or a dedicated sense of mission. It is utilized by religious, political, social and charitableorganizations.

    However, propaganda has an inherent emotional under current which can and is often used to great effect for negativepurposes. It has the ability to:

    Awaken passion by confusing the issues It makes the important issues and facts seem trifling or unimportant It makes insignificant facts look weighty and important It keeps the channels of communication full of exiting stuff and It keeps people battling in the dark

    Hitler, perhaps, made the best use of propaganda by doing just the above-mentioned things. Propaganda is considerednegative as it often takes the form of a subversive activity that appeals to bigotry (differences) and intolerance, hate and fury,by suppressing facts and publishing false a misleading information in a vicious and manipulative manner. Propaganda isoften used widely during wars and times of conflict. Often during such time, stories of atrocity, brutality and barbarism arespread to arouse public passion against opposing parties. All kinds of media, from pamphlets to newspapers, radio, TV andeven films, are used as vehicles for influencing public opinion.

    Techniques of Propaganda

    Evasion (avoiding), distortion, calculated silence, deliberate falsification, fabrication, use of words with double meaning,exaggeration, omission of significant facts, etc. are some of the commonly used techniques of propaganda. Another techniqueadopted widely is over-simplification of complex issues in to prejudiced statements involving a choice between acceptanceand rejection.

    Other techniques include taking quotes or facts out of context, claims of universality (crores of Hindus cannot be wrong,everybody in doing it). Propaganda often plays with peoples tendency to conform to popular opinion. Propaganda almostalways provokes. To divert public attention from a major issue, minor situations are created and blown out of proportion.

    Propagandists also resort to discrediting opponents. Deliberate delaying is also used great deal. Delays lead to lessenedpublic interest and the issue is often forgotten and defeated. Propagandists also use the favorable argument strategy bypresenting only those facts that support their viewpoint. This way the public does not get a complete picture; it gets only aone-sided, biased picture.

    And finally, propaganda resorts to dramatics to arouse the emotions of fears, prejudices and enmity. Propagandistsorganize rally, fill a stadium or public place, stage dharnas or bandhs or other such shows to mould public opinion in favor of

    an idea, issue, person or party.All these techniques succeed by confusing the issue, evading the truth, making the insignificant seen important, and

    distort the facts by appealing to passion and prejudice.

    PUBLICITY

    Public relations are often confused with publicity, which in simple terms mean making things public or bringing thingsto the public notice. Many tools including word of mouth to the mass media to advertising to the Internet are used forpublicizing information. However, publicity is only one part of public relations.

    Many marketing experts put public relations under publicity. Thus, publicity is an important part of public relation.Many tools are used for publicizing information and facts. The major and most effective ones are the mass media. Publicitycoverage could be in the form of news stories, news analyses, interviews, features, articles, and editorials in printed mediaand in news bulletins, interviews, discussions or special programmes on radio and television.

  • 7/30/2019 M9-Advertising Management.docx

    9/48

    M9-Advertising Management 1

    Another form of publicity is the paid variety. This basically involves advertising for which the organization has to pay tothe media for the amount of space and time. Yet another variety involves what are called advertorials and inforcials . Anadvertorial is an advertisement disguised in to form of a news story or feature. And inforcial is the TV counterpart of anadvertorial.

    Unpaid publicity is considered to be more credible than paid publicity. The paid variety of publicity (advertising) beinginitiated by the organization is considered to be motivated and one-sided. On the other hand, unpaid publicity, which includesnews stories and other editorial content, has more credibility and believability.

    Many experts consider advertising to be entirely different and not part of publicity. Advertising is paid-for and involvescontrol over what is said, how it is said, to whom it is said, where it is published, broadcast or placed, and the frequency of

    placement. Publicity or the unpaid variety does not offer any such control. Publicity material supplied to the media is subjectto being screened, edited and even may not even be used.

    On the plus side, publicity offers two important benefits:

    1. It costs very little-only time and efforts are required, and

    2. Publicity is considered more objective than advertising, which is considered to be self-serving. Also publicity enjoys theimplicit endorsement of the mass media in which it appears.

    Areas of Publicity

    The areas and activities of business that are publicized are:

    Announcing a new product or service

    Such announcements to be effective should be made before advertising. If they follow advertising, their news value islessened considerably.

    Reorganizing or repositioning old products

    In case of existing products, advertising does not work very well. For revitalizing old products, various publicity toolslike staged events, sponsorship, etc are used.

    Explaining a complicated product

    Advertisements often do not facilitate a lot of details. So they dont work well for products and services that require a lot of explanation like in case of insurance, banks and other financial institutions. Here publicity provides enough space for thedetails and the product stories (messages) can be told fully and effectively.

    Enhancing the organizations reputation

    Advertising of products (goods, services and ideas, etc) is okay. But when it comes to selling the organization as awhole, advertising can be limiting. Often organizations are involved with a lot of philanthropic works like charities orpromoting good causes and ideas. Advertising these activities does not look good. So organizations depend on publicitythrough mass media.

    Crisis managementIn crisis situations, publicity is the fastest and most credible means of response.

    Vehicles of Publicity

    From small tabloids to television to sky writing, publicity uses many channels or vehicles. However, the most effectiveand commonly used vehicle is the newspaper. Even in todays time of TV and the Internet, newspaper is rated to be the mostcredible and effective mass medium. This credibility is because of the power of the printed word. Other reasons ofnewspapers popularity as a vehicle of publicity are the widely diversified and in-depth coverage. Then there is variety.Newspapers range from small weeklies to giant dailies.

    Other vehicles used for publicity include radio, TV, news agencies, the Internet. Publicity also involves interviews of keypersonnel of the organization, news conferences, news releases, media trips, special events, exhibitions and fairs,sponsorships, etc.

    Advertising Vs Publicity

    Advertising is the obvious way to promote a business or product. Once you learn the techniques of creating and testinggreat ads, and the right places to advertise - it can produce results - but at the end of day, your results will depend directly tothe amount of advertising space you buy, which is itself dependent on your advertising budget.

    Publicity is the smart way to promote a business or product. Good publicity allows you to achieve results totallydisproportionate to the amount of money and effort put in.

    Advertising is different from publicity which is a communication of any significant information about a company or itsproduct to the public through non-personal media without any payment by the concerned business firm. Thus, publicity isbasically an information about the product, service or a business firm which is communicated voluntarily by the media and isof commercial significance to the firm. The information may be passed through media like magazines, newspapers, radio,T.V. in the form of debates, discussions, news items, reports, editorials etc. The company does not pay anything to the mediafor such activities. Look at the following.

  • 7/30/2019 M9-Advertising Management.docx

    10/48

    M9-Advertising Management 1

    1.While reading the newspaper you may get a news about an ongoing trade fair in your state. It talks about the products ofdifferent companies exhibited there. After reading this news item you may feel interested in having a look at or buyingone or more of these products.

    2.In a newspaper there may be a column on review of movies. You read the ratings given to different movies by a criticsand at times, feel interested in watching a particular movie.

    3.In the television news, sometimes we get information about the quarterly financial results of a company. This maymotivate us to buy its shares.

    In all the above instances there is information about the product or services or the firm which is communicated throughprint or electronic media, leading to significant responses by the public. Can it be called advertising? But, these are non-sponsored and have not been paid for. As such, these are instances of publicity, and not advertising.

    SALESMANSHIP

    Once your friend had gone to a readymade garment shop to buy a pant for his younger brother. The salesperson showedhim the latest collection of garments. By the time the process of sale concluded, he had also purchased one for him. Thereason for such unplanned purchase was the effect of salesmanship. The salesperson at the counter first assessed his interestin the new fabric available and then persuaded him to buy it. This whole exercise of assessing our need, activating it andultimately satisfying it by selling the product to us is termed as salesmanship or personal selling. It is a process of assistingand persuading the prospective customers to buy a product in a face-to-face situation. In other words, salesmanship simplymeans selling through personal communication. For successful selling the salesperson usually goes through a selling processwhich involves the following seven steps.

    (i) Prospecting(ii) Pre approach(iii)Approach(iv)Presentation and demonstration(v) Answering the queries/objections and their clarification(vi)Action or ending the process of sale(vii)Follow up or after sales serviceProspecting refers to identifying the prospective buyers in his area of operation. Having done this, he has to obtain the

    necessary information about the customer, his capacity to pay, choice and preferences etc. After this, in pre-approach activityhe approaches the customer to gain his attention, greet him and make his presentation i.e., inform the customer about theproduct, its qualities, price etc. and demonstrate its use, if required. Then he handles the customers queries, persuades him tomake his final decision and ends the process of sale with receiving his order and thanking him. Finally he ensures thedelivery of goods and provides the necessary after sales service.

    Advertising Vs Salesmanship

    However, advertising is different from personal salesmanship in the following aspects.(i) In salesmanship appeal is made through persons. In advertising, appeal is made through advertisements which are non-

    personal in nature.(ii) Advertising leads prospects to salesmen. Hence in the distribution, advertising precedes salesmanship.(iii) Advertising is addressed to the masses while salesmanship is concerned with specific individuals.(iv) A salesman talks to the prospect before him. But advertisements are made to influence and appeal groups of persons.(v) Though the ultimate objective of both salesmanship and advertising is the same, immediate objectives differ.

    Advertising is primarily concerned with creating interest in the buyers in general by building acceptance for a productand by arousing confidence and respect for the firm and its products.

    (vi) since a salesman talks, the listener understands whether he is educated or uneducated. But it is difficult to conveymessages of advertising to illiterate persons except in certain forms like radio messages.

    (vii) Advertising has given a great feeling to the art of copy writing, commercial art and engraving while salesmanship haspromoted the art and manner of speaking impressively by salesmen.

    (viii)In bringing about sales, salesmanship plays a superb part while in attracting the notice of prospects, advertising plays atremendous role.

    (ix) To employ salesmen everywhere to make sales appeals in financially very expensive. But advertising is not so costly. Itis the most convenient and simple device to make sales appeals over wider areas and larger audience.

    (x) The ultimate purpose in both salesmanship and advertising is the same viz; increase in sales and both arecomplementary to each other. Advertising makes the job of salesmen easy.

    SALES PROMOTIONS

    Sales promotions are another way to advertise. Sales promotions are double purposed because they are used to gatherinformation about what type of customers you draw in and where they are, and to jumpstart sales. Sales promotions includethings like contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts. Theultimate goal of sales promotions is to stimulate potential customers to action.

  • 7/30/2019 M9-Advertising Management.docx

    11/48

    M9-Advertising Management 1

    In the market, sometimes we see the special offer like Buy one get one free offer; on a particular brand of tea there was

    50 gm. extra in a 250 gm pack or one glass or bowl free with 500 gm. pack. There are innumerable examples where themanufacturer or the seller tries to tempt you to buy his product by offering discounts, extra quantity or a chance to win grandprizes, etc. All such activities are known as sales promotion.

    All promotional activities other than advertising, salesmanship and publicity which help in increasing the market demandof the product are called sales promotion. It is a non-repetitive and one time communication process. According to AmericanMarketing Association Sales Promotion includes those marketing activities, other than personal selling, advertising and

    publicity that stimulate consumer purchasing and dealer effectiveness such as displays, shows and exhibitions, documentationand various non-recurrent selling efforts not in the ordinary routine.

    All elements of a promotion mix such as personal selling, advertising, publicity are used to inform people about theavailability of a product, its characteristics and features and to create desire in the mind of the people to buy the product.Sales promotion is an effort in the same direction and is another important element of the promotion mix which includesdisplays, free sample, trade fairs, exhibitions, discount coupons, deferred payment plans, etc.

    Objectives of Sales Promotion

    Different sales promotional tools have different objectives. For example, while a free sample may motivate a consumerto buy a product for the first time, a free check-up for existing durable product like television, refrigerator etc. may affectfuture purchase decision of the buyer. Some of the objectives of sales promotion are listed below :

    1.Information to Customers: Sales promotion activities inform the potential buyer about the availability, features, uses etc.of the product. Thus, it offers additional support to promotional activities like advertising, publicity and personal selling(salesmanship).

    2.Persuades Customers: Sales Promotion activities aim at arousing customers interest in the product and persuading themto buy.

    3.Increase in Sales Volume: It aims at increasing sales. It is specially done during the periods when customer may not buythe product because it may not have immediate use, like a room cooler in winter, and a room heater in summer. The salespromotion schemes are a big help in making off-season sales and also in tempting the buyers to make quick decisions topurchase.

    4.Incentive to Retailers: The main objective of sales promotional activities is to offer promotional support to retailers.Sales promotion schemes make sales easier. Incentive schemes help in getting shelf space for such products in new retailoutlets.

    5.Create Product Identity: A number of brands of a particular product are available in the market and it is very difficult todistinguish one from the other as all have similar features, prices, variety etc. Under sales promotion programme, productidentity is established by offering additional features and incentives. This helps in building consumers preference for the specific products and brands.

    Tools Used In Sales Promotion

    Sometimes we get a small pack of tea, shampoo, soap or floor cleaner free from the manufacturer or producers. Haveyou ever thought why do companies distribute their products free like this? Because, their main intention is to attract theconsumers attention towards the product and then make them feel tempted to buy the product. This is a tool of sales

    promotion. Some of such promotional tools are given below:

    1. Distribution of Free Samples: As mentioned above, distribution of free sample is a commonly used sales promotion tool.It is a good method for introducing a new product or a brand in the market. Such free samples can be distributed at thedoor step, through fairs, or even through retail stores.

    2. Bonus Offer: At times marketers offer something extra with standard products without any additional charge to thecustomer. It could be extra quantity of the same product or some other product of the company like toothbrush withtoothpaste or any other related items as gift like a bucket with large pack of washing powder, and so on.

    3. Price-off: To increase sale, or to reduce competition, many business firms cut down prices. Prices may also be cut downduring off season to maintain certain volume of sales.

    4. Exchange Offer: Under this scheme, companies generally attract the customers by offering a price cut on purchase of newproduct in exchange for an old product. Recently you must have seen many advertisements talking about such offers onpurchase of new refrigerator, television, washing machine, motorbike, cars, etc.

    5. Fairs and Exhibitions: Trade fairs, exhibitions and fashion shows are important tools of sales promotion. They provide aforum for demonstration and exhibition of products. A lot of important information about the product can becommunicated to the customers through leaflets, brochures etc. during fairs and exhibitions. Especially in case oftechnical products like computer and electronic households gadgets, live demonstrations are undertaken. This cultivatescustomers interest and boosts their confidence in the product.

    6. Free Offer: Many companies give free offers to boost the sales of their products. They offer products of similar orrelated nature with the purchase of main products. For example, VCR/VCD free with plasma TV is an example of suchfree offer.

    7. Money Refund Offer: Of late, another method being used by marketeers to boost consumers confidence in a product is apromise of total refund of money spent on the product if the buyer is not happy with the products performance. Suchoffer not only arouses the customers interest in the product but also motivates them to make a trial.

  • 7/30/2019 M9-Advertising Management.docx

    12/48

    M9-Advertising Management 1

    8. Discount Coupon: Discount Coupon is a certificate that entitles the holders a specified discount on purchase of a product.Such discount coupon may be issued by the company by mail or through the dealers. They can also be issued throughnewspapers.

    9. Deferred Payment Plan: During 1980s, some of the airlines offered deferred payment plans - Travel today pay fare laterfor air journeys for promoting travel. It was quite a success. This plan is quite common now-a-days in case of TVs andairconditioners.

    10.Contests: There may be a contest like quiz related to the product or slogan writing. In case of quizzes, the questions aregenerally prepared in a way that consumers feel forced to know about the company and the product in the hope ofwinning a prize. These contests can be held on television, radio and through the magazines.

    ADVERTISING AND MARKETING

    Advertising is the paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers. Marketing is thesystematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellersfor the mutually advantageous exchange or transfer of products. After reading both of the definitions it is easy to understandhow the difference can be confusing to the point that people think of them as one-in-the same, so lets break it down a bit.

    Advertising is a single component of the marketing process. It's the part that involves getting the word out concerningyour business, product, or the services you are offering. It involves the process of developing strategies such as ad placement,frequency, etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail, billboards,television, radio, and of course the Internet. Advertising is the largest expense of most marketing plans, with public relationsfollowing in a close second and market research not falling far behind.

    The best way to distinguish between advertising and marketing is to think of marketing as a pie, inside that pie you have

    slices of advertising, market research, media planning, public relations, product pricing, distribution, customer support, salesstrategy, and community involvement. Advertising only equals one piece of the pie in the strategy. All of these elements mustnot only work independently but they also must work together towards the bigger goal. Marketing is a process that takes timeand can involve hours of research for a marketing plan to be effective. Think of marketing as everything that an organizationdoes to facilitate an exchange between company and consumer.

    TYPES OF ADVERTISING

    Advertising is a persuasive communication attempt to change or reinforce ones prior attitude that is predictable of future

    behavior.

    We are not born with the attitudes, which we hold toward various objects in our environment. Rather, we learn ourfeelings of favor ability or unfavor ability through information about the attitude object (e.g., advertising), or directexperience with the attitude object (e.g., tasting a new brand of beer), or some combination of the two.

    Advertising can be divided into two broad categories - consumer advertising and trade advertising. Consumer advertisingis directed at the public. Trade advertising is directed at wholesalers or distributors who resell to the public.

    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. National advertising is aimed atconsumers throughout the entire country. National advertising usually attempts to create awareness among the public of aproduct or service, or it tries to build loyalty to a product or service. Local advertising is aimed at informing people in aparticular area where they can purchase a product or service.

    Such kind of advertisements uses emotional or rational appeal in their advertisement. Advertisements such as that ofDeBeers, pizza hut etc use the emotional appeal to attract the consumers. On the other hand advertisements such as theKawasaki Bajaj caliber, Vim Bar etc. use the rational appeal to address its target audience.

    The advertisement of DeBeers uses an emotional appeal because the sta tement 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 feellike what Urmila does in the advertisement.

    Industrial Advertising

    Also known as business to business or b2b advertising, industrial advertising is the strategy of attracting the attention ofanother business and convincing that company to purchase the goods and services offered by another business. This type ofadvertising will likely use all the normal forms of generating publicity, including the placement of print ads in appropriateperiodicals, direct mail campaigns, and any other means that is likely to produce the desired sales. Industrial advertising iscommon within just about every profession or industry type, and helps to meet the demand for a wide range of items that arenecessary to conducting business within that industry.

    Institutional Advertising

    Institutional Advertising seeks to create a favorable impression of a business or institution without trying to sell aspecific product. This type of advertising is designed solely to build prestige and public respect. For nonprofit institutions,

  • 7/30/2019 M9-Advertising Management.docx

    13/48

    M9-Advertising Management 1

    such advertising helps support the institutions activitiesfor example, by encouraging blood donations or cash contributionsfor the work of an organization like the Red Cross. A for-profit business has other reasons for improving its reputation ratherthan trying to sell a particular product. In some cases a large company may sell a diversity of products. As a result, there ismore value and greater efficiency in building a brand image for the company itself. If consumers learn to have a high regardfor the company, then they are more likely to have a favorable opinion of all of the companys divers e products.

    FORMS OF ADVERTISING

    Advertising can take a number of forms, including advocacy, comparative, cooperative, directmail, informational,institutional, outdoor, persuasive, product, reminder, point-of-purchase, and specialty advertising.

    Advocacy Advertising: Advocacy advertising is normally thought of as any advertisement, message, or publiccommunication regarding economic, political, or social issues. The advertising campaign is designed to persuade publicopinion regarding a specific issue important in the public arena. The ultimate goal of advocacy advertising usually relatesto the passage of pending state or federal legislation. Almost all nonprofit groups use some form of advocacy advertising toinfluence the publics attitude toward a particular issue. One of the largest and most powerful nonprofit advocacy groups isthe American Association of Retired Persons (AARP). The AARP fights to protect social programs such as Medicare andSocial Security for senior citizens by encouraging its members to write their legislators, using television advertisements toappeal to emotions, and publishing a monthly newsletter describing recent state and federal legislative action. Other majornonprofit advocacy groups include the environmental organization Greenpeace, Mothers AgainstDrunk Driving (MADD),and the National Rifle Association (NRA).

    Comparative Advertising: Comparative advertising compares one brand directly or indirectly with one or morecompeting brands. This advertising technique is very common and is used by nearly every major industry, includingairlines and automobile manufacturers. One drawback of comparative advertising is that customers have become more

    skeptical about claims made by a company about its competitors because accurate information has not always beenprovided, thus making the effectiveness of comparison advertising questionable. In addition, companies that engage incomparative advertising must be careful not to misinform the public about a competitors product. Incorrect or m isleadinginformation may trigger a lawsuit by the aggrieved company or regulatory action by a governmental agency such as theFederal Trade Commission (FTC).

    Cooperative Advertising: Cooperative advertising is a system that allows two parties to share advertising costs.Manufacturers and distributors, because of their shared interest in selling the product, usually use this cooperativeadvertising technique. An example might be when a soft drink manufacturer and a local grocery store split the cost ofadvertising the manufacturers soft drinks; both the manufacturer and the store benefit from increased store traffic and itsassociated sales. Cooperative advertising is especially appealing to small storeowners who, on their own, could not affordto advertise the product adequately.

    Direct-Mail Advertising: Catalogues, flyers, letters, and postcards are just a few of the direct-mail advertising options.Direct-mail advertising has several advantages, including detail of information, personalization, selectivity, and speed. But

    while direct mail has advantages, it carries an expensive per-head price, is dependent on the appropriateness of the mailinglist, and is resented by some customers, who consider it junk mail.

    Informational Advertising: In informational advertising, which is used when a new product is first being introduced, theemphasis is on promoting the product name, benefits, and possible uses. Car manufacturers used this strategy when sportutility vehicles (SUVs) were first introduced.

    Institutional Advertising: Institutional advertising takes a much broader approach, concentrating on the benefits, concept,idea, or philosophy of a particular industry. Companies often use it to promote image-building activities, such anenvironmentally friendly business practices or new community-based programs that it sponsors. Institutional advertising isclosely related to public relations, since both are interested in promoting a positive image of the company to the public. Asan example, a large lumber company may develop an advertising theme around its practice of planting trees in areas wherethey have just been harvested. A theme of this nature keeps the companys name in a positive light with the general public

    because the replanting of trees is viewed positively by most people.

    Outdoor Advertising: Billboards and messages painted on the side of buildings are common forms of outdoor advertising,which is often used when quick, simple ideas are being promoted. Since repetition is the key to successful promotion,outdoor advertising is most effective when located along heavily travelled city streets and when the product beingpromoted can be purchased locally. Only about 1 percent of advertising is conducted in this manner.

    Persuasive Advertising: Persuasive advertising is used after a product has been introduced to customers. The primary goalis for a company to build selective demand for its product. For example, automobile manufacturers often produce specialadvertisements promoting the safety features of their vehicles. This type of advertisement could allow automobilemanufactures to charge more for their products because of the perceived higher quality the safety features afford.

    Product Advertising: Product advertising pertains to no personal selling of a specific product. An example is a regulartelevision commercial promoting a soft drink. The primary purpose of the advertisement is to promote the specific softdrink, not the entire soft-drink line of a company.

    Reminder Advertising: Reminder advertising is used for products that have entered the mature stage of the product lifecycle. The advertisements are simply designed to remind customers about the product and to maintain awareness. Forexample, detergent producers spend a considerable amount of money each year promoting their products to remindcustomers that their products are still available and for sale.

  • 7/30/2019 M9-Advertising Management.docx

    14/48

    M9-Advertising Management 1

    Point-of-Purchase Advertising: Point-of-purchase advertising uses displays or other promotional items near the productthat is being sold. The primary motivation is to attract customers to the display so that they will purchase the product.Stores are more likely to use point-of-purchase displays if they have help from the manufacturer in setting them up or if themanufacturer provides easy instructions on how to use the displays. Thus, promotional items from manufacturers whoprovide the best instructions or help are more likely to be used by the retail stores.

    Specialty Advertising: Specialty advertising is a form of sales promotion designed to increase public recognition of acompanys name. A company can have its name put on a variety of items, such as caps, glassware, gym bags, jackets, key

    chains, and pens. The value of specialty advertising varies depending on how long the items used in the effort last. Mostcompanies are successful in achieving their goals for increasing public recognition and sales through these efforts.

    STEPS IN ADVERTISING PLANNING

    The Attention part is the banner or headline that makes an impressive benefit promise. Interest builds information in aninteresting way, usually meaning that this must relate closely to the way that the reader thinks about the issues concerned. Ifyou seek a response you must move then to create Desire, which relates benefits to the reader so that they will want them.Finally you must prompt an Action, which may be to call a telephone number or to complete and send of a reply coupon.Advertising that does not prompt action is a wasted opportunity.

    Offer a single impressive benefit, quickly and simply

    Research proves that where responses are required, the best adverts are those, which offer an impressive, relevant benefitto the reader. This 'promise' should ideally contain the business brand name, take no longer to read than is normal for themedia and be clearly the most striking part of the advert. This point cannot be stressed enough; you must keep it quick,simple and to the point.

    Younger generations are extremely visually literate. They have been brought up on computer games, so they couldn'tdeal with a lot of polished copy, even if they wanted to." Think about the vocabulary and language you use; know your targetaudience: a simple test is to avoid any words or grammar that would not be found in the newspaper that the target groupwould read.

    Your message must be quick and easy to absorb.

    Use a clear layout, clear fonts and clear language. Do not distract the reader from the text by overlaying images or usingfancy fonts. Use simple language, avoid complicated words, and keep enough space around the text to attract attention to it.Use simple traditional typestyles: serif fonts are quicker to read than sans serif. Use ten, eleven or twelve point-size for themain text; smaller or larger are actually more difficult to read and therefore less likely to be read. Avoid cluttering the advertwith fancy images, colors and backgrounds. Make it easy to read.

    For the same reason avoids italics, shadows, light colors reversed out of dark, weird and wonderful colors. None of theseimprove readability, they all reduce it. Use simple black (or dark colored) text on a white (or light colored) background formaximum readability.

    Involve the reader in your writing style

    Refer to the reader as 'you' and use the second person ('you', 'your' and 'yours' etc) in the description of what yourbusiness does for the customer to get them visualizing their own personal involvement. Describe the service as it affects themin a way that they will easily relate to it.

    Incorporate something new

    People respond better and are more easily attracted initially to a concept that is new or original. If they've heard or seen itall before it will be no surprise that they take no notice at all. People must believe there's something in it for them right fromthe start.

    Develop a proposition that is special or unique

    Why should people be interested if your proposition is no different to your competition? You must try to emphasize whatmakes your service special. Unless your code of practice prevents you from claiming superiority over your competitors, youshould put as much emphasis as you can behind your USP (unique selling point), and either imply or state directly that you

    are the only company to offer these things.

    Proposition or offer must be credible and believable

    The Advertising Standards Authority or equivalent would prevent you from making overly extravagant claims anyway,but you should still attempt to make your offer seem perfectly credible. This is usually best accomplished by explaining 'why 'and 'how' you are able to do the things you are offering, in support of your claims; you can also increase credibility byshowing references or testimonial quotes from satisfied customers.

    For example, if you claim particularly good customer service, this can be reinforced with an outline of your policy onseeking customer feedback and carrying out satisfaction surveys.

    Advertising is often referred to as a 'Black Art' because it is mysterious, and is rarely a precise science. Thingssometimes work, which you imagine, wouldn't, and plenty of things you think should work, don't.

    An advertisement campaign determines what the advertiser wants to say. It also determines how, when, where, and towhom the advertiser wants to say it.

  • 7/30/2019 M9-Advertising Management.docx

    15/48

    M9-Advertising Management 1

    The Planning process of Advertisements Campaigns includes the following activities:

    Situation Appraisal- before planning any activity, one requires relevant information regarding the situation. For planningan Ad campaign, we require information about the target market or consumer, the company or product and the competition.The three important research areas are:

    Consumer research and market research Product and company research Competitive research

    Situation Analysis- (analyzing strengths, weakness, opportunities and threats) From all the information collected, campaignsplanners find out the strengths of the product. These strengths could be in any area. The strength often leads to new

    opportunities to be explored. Weaknesses make the product vulnerable to threats from others.Structural or Strategic Planning- Advertising is an art and a science. While the art comes from writing, designing andproducing exciting advertisements, the science comes from scientific methods of research and strategic planning. Strategicplanning is the process of making intelligent decisions. It starts with finding out what to do, deciding how to accomplish theobjectives. It also decides whom to address (the target audience), how to distinguish the product, how much to spend(budgeting), and how long to run the campaign.

    Creative Planning- it includes developing a theme, the creative strategy and finally deciding the creative tactics. The themeneeds to be a strong concept to be able to hold all there different and diverse ads together. A powerful theme brings aboutsynergy to the campaign. A theme must always relate to and reflect the campaign objectives.

    Another step of creative planning is finding the creative strategy. The creative strategy outlines the impressions thecampaign wants to create. Some common creative strategies are:

    1.Generic Strategy- this is used by market leaders who ignore the presence of competitors2.Pre-emptive claim strategy- here the brand is the first to pick up a particular feature. In the minds of the people, itbecomes associated with that brand. Eg. Everybody associate PUF with Godrej refrigerators while it is present in all

    fridges.3.Unique selling proposition (USP) strategy- here the campaign talks about some features, which is unique to that

    advertised brand and is not available in others.4.Brand image strategy: when there are no strong differentiating features among the competitors, then branding try and

    create images. For example, Pepsi is the new generation drink; Maggi sauce is different.

    5.Product Positioning- some times products or brands are positioned different from competing brands. For example, Magginoodle is a two minute snack.

    Media Planning- the ultimate goal of advertising is to reach the target audience with the advertising message. Thus, themajor decisions in media planning, which needs to be taken, are:

    Which media to be used? Where to advertise (geographic region)? When to advertise (timing and scheduling)? How intense the exposure should be (frequency)?

    Media planning is a behind the scene part of advertising. It plays an integral role in merging the science of marketing

    with the art of advertising. A media planner has to find out about the availability of various media, the media rates, theirreaches and also analyze their effectiveness.

  • 7/30/2019 M9-Advertising Management.docx

    16/48

    M9-Advertising Management 1

    UNDERSTANDING THE MEDIA

    Media advertising takes into account advertising messages that appear on television, radio and the internet (generallyreferred to as electronic media) as well as newspapers and magazine advertising (referred to as print media). Even if theyhave nothing to do with advertising, people generally understand that there is a category called consumer advertising whichconveys sales messages to consumers like you and me. Consumer media encompasses everything from beer to cars, shampooto airplanes, toys to clothing. The consumer media category generally includes television, radio, internet, newspapers,magazines and billboards (or outdoor advertising). The trade media mainly consists of magazines, a handful of newspapersand the internet.

    Media is also categorized by market orientation. A magazine with a broad audience appeal is referred to as a horizontalpublication. In the consumer field, USA Today or Time magazine are considered horizontal media since they appeal to a verybroad audience including a wide range of ages, incomes, life styles, education, occupations, hobbies, religious beliefs andpolitical philosophies. Vertical market publications such as: Flying, Field & Stream, Working Woman, Golf and Car &Driver appeal to a narrower, more defined segment of the total market and are thus referred to as vertical media.

    In the trade media the same sort of broad categories also exist. Business Week, Fast Company, Fortune, Forbes and TheWall Street Journal are considered horizontal publications because of their broad business appeal. However, the morediscerning reader of these publications will find that Fortune is aimed at readers interested in the goings on in the large,established corporations, whereas Fast Company aims its coverage at young entrepreneurial companies.

    Examples of vertical media on the business side might include such publications as Professional Builder, ElectronicsSupply & Manufacturing, Machine Design, Metal Architecture, Trusts & Estates, Traffic World, U.S. Pharmacist andBanking.

    There is another special category of publicationsassociation and relationship media. These include publications fromgroups such as AARP, Rotary, museum publications and many other types of organizations that communicate to a large,loyal and supportive member audience.

    If you watch closely you will see that the internet is evolving in a very similar, thought more fragmented, fashion. Theinternet also offers another dimension that goes beyond any of the above mentioned media.

    It seems easy: If you want to reach a potential prospect in the banking field, logic dictates that you pick a bankingmagazine for your advertising. That makes good sense, except which of the banking magazines should you choose? There arequite a few. Each publication, of course, puts up a strong argument for being the best buy for your advertising. Thus, afterlistening to three, four or five magazine sales people youre more confused than ever. Furthermore, the numbers never tell thewhole story. Forget spending lots of time deciphering studies with pie charts. The best way out of these woods is to takeseveral issues of each magazine, get comfortable in a quiet place where you wont be disturbed and read the magazines. Yes,actually read them. Study them. Look at how they are organized. Check out the table of contents. Read the stories for contentand substance. Are they packed with information? Or are they just light and fluffy? Do they cover trends in the industry? Do

    they have some solid editorial writing? Some magazines are so fat on advertising that they barely have room for a story ortwo. Remember, people read magazines for the editorial content. Well-written articles create a receptive environment foryour advertising.

    Some advertisers flock to the magazines with the largest number of big, beautiful ads. Some people will look to see if thegiants in the industry are running ads in a particular magazine. This presents a forceful argument for choosing the magazinesthe leaders have chosen; after all, they must know more because they are bigger. Well, let me tell you, there have been plentyof big advertisers who have stuck with a magazine long after it has ceased to serve its readers with the excellence that made itthe right choice in the past.

    Some businesses make their media selection based on the magazines found in customer lobbies, or what is mostnoticeable on a customers desk. This may work fine at times, but it may also lead you astray. Some magazines make greatlobby displaystheyre not read, and not influential with the real buying decision- makers for your products.

    Mind you, Im not suggesting that you ignore reader data provided by the publisher; but before you make a choice, gobeyond the obvious. When you are out visiting customers or talking to them on the phone, ask them Which magazine do you

    find most helpful in your work? Which one do you refer to most often to keep you abreast of the industry? Sometimes theanswers you get will simply bear out what you already knew; other times you will be surprised. This kind of analysis alsoholds true for the Internetwhere do your prospects congregate? What sites do they visit regularly to stay informed?

    There are, however, situations in which you find two or three publications that appear to compete head to head in a givenindustry. When that happens, pick one out of the group and focus your resources on it. You can have more impact byfocusing your limited resources on one publication than spreading your dollars around.

    Another very important piece of information to keep in mind concerning vertical trade media is that in todays fast-pacedcompetitive global environment, yesterdays vertical media is todays horizontal media. Market segments are getting slicedthinner and thinner all the time. If you want to succeed, if you want to become a leader, you have to carve out a niche marketof your very own. Use todays vertical media as your overall market coverage medium and use targeted marketing to reach ahighly specified audiencean audience you know more about than anyone else, an audience whose needs fit perfectly withyour companys capabilities, an audience you can serve better than even your largest competitor, an audience for which youcan redefine quality and service.

    UNIT 2: ADVERTISING MEDIA

  • 7/30/2019 M9-Advertising Management.docx

    17/48

    M9-Advertising Management 1

    ADVERTISING THROUGH VARIOUS MEDIA

    Print AdvertisingNewspapers, Magazines, Brochures, Fliers

    The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is acommon practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertisingpurposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by theadvertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. Forinstance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement ina popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear, forexample an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a

    mediocre quality paper.Outdoor AdvertisingBillboards, Kiosks, Tradeshows and Events

    Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attractthe customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several eventsand tradeshows organized by the company. The billboard advertising is very popular however has to be really terse andcatchy in order to grab the attention of the passers by. The kiosks not only provide an easy outlet for the company productsbut also make for an effective advertising tool to promote the companys products. Organizing several events or sponsoring

    them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions foradvertising their products. If not this, the company can organize several events that are closely associated with their field. Forinstance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products.

    Broadcast AdvertisingTelevision, Radio and Internet

    Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio orthe Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television

    advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of coursethe popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost itscharm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingleshave been very popular advertising media and have a large impact on the audience, which is evident in the fact that manypeople still remember and enjoy the popular radio jingles.

    Covert AdvertisingMovies and Serials

    Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment andmedia. For example, in a film, the main character can use an item or other of a definite brand, as in the movie MinorityReport, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, orhis watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character playedby Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I,Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of

    the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes inwhich Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin carsare featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the maintransport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement;the whole film stops to show a Coca-Cola billboard.

    New MediaMobile and Internet

    With the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner, Popunder, advergaming,and email advertisements (the last often being a form of spam) are now commonplace. Partic