Advertising Management

By

Muruganantham.GFaculty in Marketing

Advertising Management

• Advertising as an element in the marketing mix-its role and importance-classification of advertising - Ad objectives-Sales oriented objectives - Behavioural oriented objectives - DAGMAR

• Creative strategy: Appeals, ad values, ad designing- print copy visual elements, layout designing, story boarding, creative strategy for high and low involvement level products. Pre testing and post testing of advertisement-the tests and the suitability of them for various media

• Media mix-print, broad cast (T.V. & Radio), Cinema, Outdoor, Direct Mail advertising, and Internet. Defining media planning-From marketing plan to media plan, challenges in media planning. Developing the media objectives-Reaching the audience and distributing the message.

Advertising Management

• Developing the media strategy- selection of media scheduling, calculating the cost efficiency. Steps in campaign planning-role of research in advertising campaign planning. Setting up the ad budget- process and methods. Appropriation of ad budget.

 • Ad agency: Ad agency as a business-functions &

structure. Advertiser: Choosing an ad agency-building and maintaining relationship with ad agency- changing agencies.

TEXT BOOKS:1. Belch E. George & Belch A. Michael, “Advertising and

Promotion”, Tata McGraw Hill, New Delhi. 2. Parameswaran, “Brand building advertising: concepts and

cases”, Tata McGraw Hill, New Delhi.

Marketing

“Process of finding customer needs and serving those needs profitably”

Marketing Mix

• Product• Price• Place• Promotion

Communication Mix

Communication Mix• Advertising

• Personal selling -Industrial Market, High Perceived risk of purchase, customer k level is low.

• Sales Promotion - Incentive to consumer or trade to stimulate purchase.

Communication Mix

• Public Relations and Publicity – Establishing goodwill and mutual understanding between org and its publics.

Publicity – communication about a product or organization in the media, without paying for time and space directly.

(Conduct publicity campaigns - around some topic of current importance to the public, like environmental issues, health, social welfare etc or by sponsoring some newsworthy events. Both these activities are important for creating and maintaining good public opinion about the firm and its products/ activities).

•  PR is basically management of reputation.

• Direct Marketing - accurate data base – use of various modes like Direct Mails, Telemarketing, etc - without intermediaries.

Advertising• Padamsee, the ex-CEO of Lintas says: “When a man wears

trouser-shirt ensemble instead of a dhoti, he is advertising he is westernised.

• Even a women wears a lipstick; she is advertising that she wants to look beautiful. When a neta delivers a speech, he is advertising that he wants to be noticed. Ads are parts of human nature to be noticed. Colours of Flowers.

• Advertising has evolved since the industrial revolution as a toll of marketing communication. It is an art as well as science. It is a career for many. It is rapidly getting professionalised.

• Competition, growing marketing expenses, product failures, liberalisation, globalisation, emergence of new electronic media has given an impetus to advertising activity.

Advertising - defined Advertising is only one element of the promotion mix-but it

often takes special prominence in the overall marketing mix. Advertising originates from a Latin word - Advertire -

“ to turn to” = Announce Publicly

John Kennedy (1905) Copywriter- “Salesmanship in Print”

Sidney Bernstein (1990) - Advertising as a substitute for the human salesman

Advertising is telling and selling. Though advertising is but one of the several functions of marketing, it has almost reached the status of an independent discipline.

Popularisation of a product is the basic aim of the advertising activity.

Advertising Age – July 1932…..“The dissemination of information concerning an idea,

service or product to compel action in accordance with the intent of the advertiser”

AMA-1963, Proposed the following definition….“Any paid form of non-personal presentation by an identified sponsor”

(It may be a sign, a symbol, an illustration an ad message in a magazine or newspaper, commercial on the radio or on television, a circular despatched through the mail or a pamphlet handed out at a street corner; a sketch or a message on a billboard or a poster).

Advertising…Historical ReviewPre industrial Age

Signs often used as symbols1440s Johannes Gutenberg invented printing press in

Germany Most important – history of Ad.

1472 - First print ad in English tacked on London church doors to promote Bible.

1729 - Benjamin Franklin - Father of advertising art made ads more readable by using large headlines and considerable white space.

Advertising…Historical Review…Cont…

The Industrial age:

1841- palmer becomes advertising agent – charge commission on ads1869-Francis w. Ayer founds ad agency bearing his father name N.W.Ayer & Sons - First full service agency - to charge

commission – net cost space.1839-Photography introduced-credibility and new world of

creativity.1888- Printers ink is the first U.S Publication for ad profession1900 – psychologist study the attention getting and persuasive

qualities of ad - Northwestern University – course in ad discipline.

1914- ABC (Audit Bureau of Circulation) by group of advertisers, agencies and publishers – which conducts its own audits and issues its own report of circulation.

Advertising…Historical Review Cont…

1922 – first radio ad

Advertising in world war Used as an instrument of direct social action Agencies sold patriotic sentiments After the war, to promote peace time projects.

1940s introduction of TV becomes a new medium.1950s due to creative revolution ads focused on product

featuresLeo Burnett, David Ogilvy started their agencies

Rosser Reeves of the Ted Bates Agency – USP (Unique Selling Proposition)

Ad must point out the USP - features that differentiate it from competitors

(Q, Variety, Convenience, Effectiveness, etc)

Advertising…Historical Review Cont…Market segmentation – Unique group of peopleAgencies emphasis shifted from product features to brand

image or personality

1970S Jack Trout and Al Ries…PositioningHow to consumer perceive the brand, how they rank it with

competitor brandsBecomes more effective way to use product differentiation

and market segmentation.1973s Demarketing – Oil Shortage1990s marketers shfited their focus ad to sales promotion1994 IMC2000 Internet becomes the new ad medium

You tube, social media, blogs, SMS,,,,etc.

Time Magazine

You

Year of the award - 2006

Objectives / Role of Advertising

(To the firm, Channel and consumer)

• To stimulate demand or sales amongst present formers and future customers.

• To project an image – used to promote an overall image• To retain the loyalty of present and former consumers(

reassure the buyers that they have made the best purchase)

• To build dealers and consumer confidence• Enjoyable entertainment and educational aspects of

contemporary life.• Advertising - role it has to play in value building

and value delivery, which is the central task in marketing.

Relationship between advertising and PLC

To Inform• -Telling the market about a new product • -suggesting new uses for a product• -informing the market of a price change• -explaining how the product works• -Describing available services• -Correcting false impressions• -Reducing buyers fears• -building a company imageTo persuade• -Building brand preference • -encouraging switching of the brand• -Changing buyer’s perception of the product attributes• -Persuading buyers to purchase now• -persuading buyers to receive a sales callTo Remind• -reminding buyer that the product may be needed in the near

future• -reminding buyers where to buy it• -keeping it in buyers minds during off seasons• -Maintaining its top-of-mind awareness

Advertising objectives

Advertising objectives can be set around four broad themes:

1. Awareness – creating awareness of new products/ brands and new ideas

2. Attitude – attitude change and attitude measurement3. The behavioural constructs- generating trail

purchase and store visits4. Product positioning and brand building.

What makes Advertising Unique

• First and Foremost - communication- consumers

• For creating Brand awareness, Familiarity And image

For reinforcing Prior purchase Decisions

To business, Non business Enterprise – (CA, Brokerage Firms, Doctors, etc)  

Characteristics of Good advertising

1. Should be of interest to the audience2. The audience should interpret the message in the

intended manner.3. Should also influence the audience.

DAGMAR• DAGMAR was put forward by Russell H. Colley in his book titled,

Defining Advertising Goals for Measured Advertising Results. The DAGMAR corresponds to the abbreviation of the title.

• According to DAGMAR, advertising has to perform a specific communication task; the task has to be accomplished among a well-defined audience, within a specified time period. The most important feature of DAGMAR is that it looked at advertising as performing a communication task and not a sales task.

• Colley distinguished 52 advertising goals that might be used with respect to a single advertisement, a year’s campaign for a product or a company’s entire advertising philosophy. These goals may pertain to sales, image, attitude and awareness.

• Make the brand identity known and easily recognizable. Provide information about the brand

• According to DAGMR approach, the communication task of the brand is to gain a. Awareness b. Comprehension c. Conviction d. image and e. action.

• DAGMAR is a planning and control tool. It may guide the creation of advertising.

An Award Winning Ad copy

Here is the ad released by Kerala tourism commemorating The Hindu’s 125th Anniversary.

 • “We congratulate THE HINDU for being a Christian, a Muslim, a Parsi, a Sikh, a Buddhist and a

Jain for the last 125 years” • This award won a finalist certificate in the ‘best

copywriting’ category at the New York Festivals’ Design, print and outdoor Awards 2005.

• “The thought was very simple, the message became powerful. The advertiser wanted the emphasis to be on communal harmony, and the ad served the purpose.

Keep Message Simple and Short- Jack Trout

• People resist what is confusing. They cherish what is simple.

• The best way to enter minds that hate complexity and confusion is to oversimplify your message.

• Some of the most powerful marketing communications focus on a single word (Crest: Cavities; Volvo: Safety, )

• In developing an advertising program marketing managers must always start by identifying the target market and buyer motives.

• The five major decisions in developing an advertising program, known as the five Ms:

• Mission: What are the advertising objectives?• Money: How much money can be spent?• Message: What message should be sent?• Media: What media should be used?• Measurement: How should the results be evaluated?

Role of Advertising• Common sense is about ‘reading the lines’ then insight is about

‘reading between the lines’.• Among all the marketing mix elements, advertising is probably

the most critical link between the marketer and the consumer in the today’s world.

• Its ability to transform products into brands in consumer minds is vital for creating and sustaining a relationship with them.

• Effective advertising is therefore almost a necessary condition for any marketing effort to succeed in today’s competitive world.

• The ultimate driving force behind the need to advertise, whether it is the natural world or the commercial world, is the universal law of survival of the fittest.

• Advertising hence is a part and parcel of the selection process undertaken by any organism or entity for its growth and longevity.

APPLE Inc. PRINT ADVERTISMENTS

Some Classical Print Ads

1910

1960

Developing an effective communication

  Identify the target audience Determine the communication objectives Design the message Select the communication channels Establish total promotional budget Decide on the promotion mix Measure the promotion results Manage and co-ordinate the integrated marketing

communication process.

Identify the target audience

• The audience could be potential buyers of the company’s products, current users, deciders or influencers.

• The audience could be individuals, groups,

• The target audience will critically influence the communicator’s decisions on what to say, how to say it, when to say it, where to say it and to whom to say it.

Designing the message

• What to say ( message content)• How to say it logically (Message structure)• How to say it symbolically (Message format – font,

colour, size ,, facial expressions, gestures, dress,

hairstyle,,,, speech rate, rhythm, pitch, articulation )• Who should say it (message source,, popular

source, attractive source,)

The medium is the message

According to Marshall McLuhan, The medium is the message. Ad message is interpreted and influenced by the

environment in which it is received and communicates an image that is independent of the message content. This effect is known as qualitative media effect.

For example, the ad for a designer dress for women is likely to have more impact in a magazine like Femina or Womensera than India today or Reader’s Digest.

The image of media vehicle has a significant effect on reactions to the message.

The nature of a broadcast media, programe in which the commercial appears, can also affect consumers reactions.

Coca-cola never advertises during TV newsbreaks. (Main sponsor – Lion dates)

Case Study:

Omega Identity Loss

Types of Advertisinga) By Geographical spread:

Global – MNCs treat the world as their market. IBM, Sony or Ford advertises globally – Times, Reader’s Digest.

National - target is entire country, select media with a countrywide base. Generally large established firms belong to this category.

Local - Small firms may like to restrict their business to state or regional level.

b) Target Group:Consumer advertising; directed towards buyers of consumer

products.Industrial advertising: ad which are issued by mfu/distributers

to the buyers of industrial products.Trade advertising: directed to channel membersProfessional advertising: Pharmaceuticals- Doctors, Public awareness advertising- Eye, blood, 108,

a) Product advertisingb) Service advertising – banksc) Institutional or corporate advertising

• Media mix-print, broad cast (T.V. & Radio), Cinema, Outdoor, Direct Mail advertising, and Internet.

Pros and cons of Advertising

ToI Vs The Hindu