Managing Mass Communication - Advertising

MANAGING MASS COMMUNICATIONMANAGING MASS COMMUNICATION

DEVELOPING AND MANAGING ADVERTISMENT

DECIDING ON MEDIA AND

MEASURING EFFECTIVENESS OF ADVERTISEMENT

AdvertisingAdvertising

Verbal and/or visual

Nonpersonalmessage

Delivery through

media

Identified sponsor

PaymentBy sponsorTo mediaCarrying message

Advertising ExpendituresAdvertising Expenditures

Year Advertising expenditure (Rs. Crores)

Percentage growth over last year

2008 21,000 20.0

2007 17,690 22.0

2006 14,505 21.7

2005 11,915 15.1

2004 10,354 10.9

2003 9,329 --

Advertising Growth in India

Source: “Review 2005, “Pitch, January 2006, pp.28-29; “Pitch-Madison Media Advertising Outlook 2006”

10 National Advertisers10 National Advertisers

Company Spend in millions of USD

Hindustan Lever 99

Maruti Udyog (suzuki) 27

Pepsico 27

LG Electronics 25

Procter & Gamble 25

Dabur India 24

The media spend of India's leading advertisers in 2005

Source: Group M/M&M, www.adbrands.net/in

Types of AdvertisingTypes of Advertising

TARGET: Consumer or BusinessTARGET: Consumer or Business

TYPE OF DEMAND: Primary or SelectiveTYPE OF DEMAND: Primary or Selective

MESSAGE: Product or InstitutionalMESSAGE: Product or Institutional

SOURCE: Commercial or SocialSOURCE: Commercial or Social

Advertising CampaignAdvertising Campaign

All tasks involved in transforming a theme

into a coordinated advertising program to accomplish a specific goal

for a product or brand

All tasks involved in transforming a theme

into a coordinated advertising program to accomplish a specific goal

for a product or brand

Several different messagesOver an extended time

Using a variety of media

Several different messagesOver an extended time

Using a variety of media

AdvertisingCampaign

Involves

Developing an Advertising Campaign

Developing an Advertising Campaign

Framework Advertising CampaignsFramework Advertising Campaigns

Identify the

target audience

Establishpromotional

goals

Setpromotional

budget

Determinepromotional

theme

Defining ObjectivesDefining Objectives

Typical advertising objectives are to:Support personal sellingImprove dealer relationsIntroduce and position a new productExpand the use of a productReposition an existing productCounteract substitution

BudgetsBudgets

VerticalCooperativeAdvertising

HorizontalCooperativeAdvertising

Advertisingallowance

Creating a MessageCreating a Message

AttentionAttention

ExecutionExecution

AppealAppeal

InfluenceInfluence

Selecting MediaSelecting Media

TypeOf

Media

Specific Media

Vehicles

CategoryOf

Medium

Selecting Media: General FactorsSelecting Media: General Factors

Objectives of the

Ad

Requirementsof the

Message

AudienceCoverage

Timeand

Location MediaCost

Cost of AdvertisingCost of Advertising

MediaMedia

TV

MAGAZINES

NEWSPAPERS DIRECT MAIL

RADIO

OUT-OF-HOME INTERACTIVE

YELLOW PAGES

Evaluating the Advertising EffortEvaluating the Advertising Effort

DifficultyOf Evaluation

MethodsUsed to Measure

Effectiveness

Sales PromotionSales Promotion

Demand-stimulating devicesto supplement advertising

and facilitate personal selling

Demand-stimulating devicesto supplement advertising

and facilitate personal selling

TradePromotions

ConsumerPromotions

Developing Sales Promotion PlansDeveloping Sales Promotion Plans

DetermineObjectives

andStrategies

DetermineBudgets

DirectThe Sales

PromotionEffort

SelectAppropriateTechniques

Major Sales Promotion DevicesMajor Sales Promotion Devices

Examples of Product PlacementsExamples of Product Placements

ASSIGNMENTASSIGNMENT

Visit a supermarket, drugstore, or hardware store, and make a list of all the sales promotion tools you observe. Describe how each one relates to the sales promotion objectives discussed in the class. Which do you think are particularly effective? Why?

Individual assignmentDeadline: 09th November 2011.

Public RelationsPublic Relations

Management tool designed to favorably

influence attitudes toward an organization,

Its products, and its policies

Management tool designed to favorably

influence attitudes toward an organization,

Its products, and its policies

Benefits of PublicityBenefits of Publicity

Lower CostsLower Costs

Increased attentionIncreased attention

TimelinessTimeliness

More informationMore information

Limitations of PublicityLimitations of Publicity

Loss of controlLoss of control

Limited exposureLimited exposure

Publicity is not freePublicity is not free

Personal SellingPersonal Selling

Major promotion tool

Personal communication of information to persuade

somebody to buy something.

Major promotion tool

Personal communication of information to persuade

somebody to buy something.

500,000People

In advertising

16,000,000PeopleIn sales

Personal Selling as PromotionPersonal Selling as Promotion

Flexible

Costly

Difficult toattract quality

people

Minimizewaste

Focused

Goal issale

When Personal Selling is Used When Personal Selling is Used

When MARKET

is concentrated:

•geographically,

•in few industries,

•or in several

large customers

When PRODUCT

•value is not apparent,

•has high unit cost,

•is technical,

•requires demonstration,

•is fitted to customer’s need,

•is in introductory stage

of the Product Life Cycle

Scope of Personal SellingScope of Personal Selling

Variety of Sales JobsVariety of Sales Jobs

Delivery Sales

Outside Order Taker

Inside Order Taker

Missionary Sales Person

Sales EngineerConsultativeSales Person

Personal SellingPersonal Selling

Professional Sales Person

Cost of Personal Selling

Uniqueness of Sales Jobs

Changing Patterns in Personal Selling

Changing Patterns in Personal Selling

SellingCenters

SystemsSelling

GlobalSales Teams

Changing Patterns in Personal Selling

Changing Patterns in Personal Selling

Automation

TelemarketingRelationship

Selling

InternetSelling

Selling ProcessSelling Process

Recruiting ApplicantsRecruiting Applicants

Recruitment and SelectionRecruitment and Selection

Determining Hiring SpecificationsDetermining Hiring Specifications

Matching Applicants with Hiring Specifications

Matching Applicants with Hiring Specifications

Staffing and Operating a Sales Force

Staffing and Operating a Sales Force

Compensating a Sales ForceCompensating a Sales Force

CommissionSalary

Combination

Evaluating a Sales Person’s Performance

Evaluating a Sales Person’s Performance

Qualitative

Quantitative

QUERIES