Advertising & Sales Management

ADVERTISING & SALES MANAGEMENT

Importance of Advertising

“Advertising is telling and selling” Though it is one of the several functions

of marketing, it has taken the form of an independent discipline.

The Meaning of Advertising

The term originates from the Latin “adverto”, which means to turn round.

Advertising thus denotes the means employed to draw attention to any object or purpose.

“It is a paid form of non personal presentation an promotion of ideas, goods or services by an identified sponsor.”

Through advertisement, the advertiser intends to spread his ideas about his products among this customers and prospects.

Popularization is the basic aim of the advertising activity

Key Components of the Advertising Job

Decide the advertising objectives to be accomplished

Determine the target audience at whom the message is to be aimed

Decide the advertising appropriations Select the media Construct the actual advertisement in the

pretest its efficiency Coordinate the advertising effort with the rest of

the promotional Programmes

Four Major Decision Areas

Deciding the Advertising Objectives Deciding the Budget Deciding the Copy Deciding the Media

Deciding the Advertising Objectives

Objectives are essential because it helps the marketer know in advance what they want to achieve and it also helps ensure that they are proceeding in the right direction

Goals are also made real through objectives leading to effective development of advertising Programmes for meeting the objectives.

As Advertising became a business task it was imperative that it was expected to yield results proportionate to the effort and cost involved.

Two distinct schools of thought What should be or what could be the objectives of

advertising? One school has it that advertising must bring in

more sales and therefore advertising objectives should certainly include sales growth.

The other school feels that advertising is about communication and therefore goals should be intended to shape awareness and attitudes of consumers.

“Advertising that does not sell is a waste” –David Ogilvy

Conflict Remains: Communicating certain ideas Vs Direct Sales Task role

Four Sets of Constructs/Themes

The behavioral constructs e.g.. Trial purchases and store visits

Attitude; Attitude change and attitude measurement

Awareness; creating awareness of new products and ideas

Image creation and positioning (or reinforcing)

Areas of Ad Objectives Introduction of new products in the market Expansion of the market for the existing products/brands Building a long term consumer franchise for the firm Countering Competition Reminding Customers Reassuring the customers by removing post purchase dissonance Building up brand image and company image Aiding the total selling function by taking the customer through all the

steps from awareness to purchase involved in the selling process Closing an immediate sale (Clincher ads) Supporting other sales promotion activities Stimulating impulse buying Enthusing the channel to stock the product Supporting and supplementing the salesman’s effort Supporting and supplementing the dealer’s selling effort

“ “AIDA”AIDA” “ “AIDA”AIDA”

AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works

AttentionAttention AttentionAttention InterestInterest InterestInterest

DesireDesire DesireDesire Action!Action! Action!Action!

AIDA (Awareness, Interest, Desire, Action)

The AIDA sequence is conceptualized by Strong (1925)

Here the consumer is moved along a linear continuum of internal states from unawareness to awareness

Then interest is elicited and desire (for the brand) is aroused.

Finally, the consumer is stirred into action.

Linear Communication and the Hierarchy of Effects

Theories reflect the methods and assumptions of cognitive psychology.

Analogy is drawn between the information processing of computers and that of humans

These research traditions have been drawn on by models of advertising persuasion

The consumer’s resistance is broken by an accumulation of advertising effects hence the expression “hierarchy of effects”

The consumer processes information like a computer sequentially according to rules

Hierarchy of Effects

The hierarchy of effect represents “compounding probabilities” (Percy et al. 2001)

It is also criticized on the grounds that it conceives of advertising consumption as an essentially dyadic process transmitted through a media channel to an individual viewer and consumed in social isolation

A further criticism is that it represents only high involvement purchases: many or most purchases are spontaneous and do not engage consumers in such rational processing

Social Process Vs Emotional Process

Ineluctably social process (Ritson and Elliot, 1999) – we do not generally view ads in an experimental booth-our interpretation of them is normally framed by the social context in which we encounter them.

Elliot, 1998; Holbrook and Hirschman, 1982 –Subsequent models have incorporated stronger elements of consumer emotionality into the persuasion process to reflect the often irrational and quirky motivations behind consumer behavior.

Cognition Cognition (Thinking) refers to the rational appeal of

advertising as for example, a motor car ad which includes data on engine performance or utility features.

The affective stage refers to the emotional response of the consumer to an ad. Not only does the ad seek to engage with the consumer on a rational level by emphasizing product benefits; it also tries to elicit a positive emotional response with pleasing imagery and alluring symbolism.

Motor car ads typically feature the engine and other product data plus a carefully shot picture of the car and its occupants in a pleasing setting.

The emotional response is: desire, triggered by identification. Finally conation refers to action: the combination of rational and emotional appeal in the same ad might act persuasively and motivate a purchase response.

AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Some things we know aboutSome things we know about people. people. Some things we know aboutSome things we know about people. people. ““People read what interests them, People read what interests them,

sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage) People are strategicPeople are strategic - they look out for - they look out for

their own best interests.their own best interests. People arePeople are bombarded with messages bombarded with messages

A key concern is getting through clutterA key concern is getting through clutter People (and advertising) work from People (and advertising) work from

bothboth logic logic and and emotion emotion

““People read what interests them, People read what interests them, sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage)

People are strategicPeople are strategic - they look out for - they look out for their own best interests.their own best interests.

People arePeople are bombarded with messages bombarded with messages A key concern is getting through clutterA key concern is getting through clutter

People (and advertising) work from People (and advertising) work from bothboth logic logic and and emotion emotion

The Linear Model of Communication

SENDER ENCODE MESSAGE DECODE RECEIVER

NOISE

NOISE

Limitations of Linear Model It is easy to interpret in such a way that meaning and message are

understood to be synonymous. This risks misconstruing the interpretative possibilities.

Oversimplification of the customer’s cognitive engagement with advertising by emphasizing a singular message that has one unproblematic meaning.

The advent of parallel processing: the assumption that computers and human brains can process one bit of data at a time as been challenged by more complex models

The implication that explicit attention must be given to an ad is erroneous. The linear model of communication with its sequential processing translates

conveniently into a model of persuasion if these stages are replaced with attitudinal or behavioral states (AIDA). A lot of research goes on in measuring these states as they are an indicator of the likelihood of purchase (and therefore an indicator of success of the advertisement campaign). Thus these are necessary conditions for advertising to achieve its marketing goals but not sufficient. Eg. A consumer may be aware of ad or may even like an ad but that does not mean he will buy the product.

The Lavidge-Steiner The Lavidge-Steiner Learning ModelLearning Model

The Lavidge-Steiner The Lavidge-Steiner Learning ModelLearning Model


Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Begins withBegins with Awareness Awareness Moves toMoves to Conviction Conviction

and and PurchasePurchase

Begins withBegins with Awareness Awareness Moves toMoves to Conviction Conviction

and and PurchasePurchase NOTE: Process may be NOTE: Process may be

quite rapid and you quite rapid and you may try before being may try before being totally convincedtotally convinced

NOTE: Process may be NOTE: Process may be quite rapid and you quite rapid and you may try before being may try before being totally convincedtotally convinced

How people “learn” adsHow people “learn” ads How people “learn” adsHow people “learn” ads

Key ConceptsThe Single Biggest Thing: Advertising dollars Advertising dollars have greathave great “elasticity”“elasticity”

Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising is usually critical for success in the is usually critical for success in the

marketplacemarketplace The Wrong AdvertisingThe Wrong Advertising is usually worthlessis usually worthless

AdvertisingAdvertising can be can be The Single Biggest ThingThe Single Biggest Thing It can probably impact sales It can probably impact sales more than any other more than any other

element of the marketing mixelement of the marketing mix.. And … it isAnd … it is the most fun!the most fun!

Advertising dollars Advertising dollars have greathave great “elasticity”“elasticity” Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising

is usually critical for success in the is usually critical for success in the marketplacemarketplace

The Wrong AdvertisingThe Wrong Advertising is usually worthlessis usually worthless AdvertisingAdvertising can be can be The Single Biggest ThingThe Single Biggest Thing

It can probably impact sales It can probably impact sales more than any other more than any other element of the marketing mixelement of the marketing mix..

And … it isAnd … it is the most fun!the most fun!

Key ConceptsThe Single Biggest Thing Advertising is Advertising is just a partjust a part of of “The Five Ps” “The Five Ps” All of “IMC” is importantAll of “IMC” is important However...However... Advertising dollarsAdvertising dollars are... are...

Often,Often, the biggest itemthe biggest item in the marketing budget in the marketing budget The most visible partThe most visible part of marketing spending of marketing spending The most controllableThe most controllable marketing activity marketing activity

Advertising is often… Advertising is often… “the tail that wags the marketing dog”“the tail that wags the marketing dog”

Advertising is Advertising is just a partjust a part of of “The Five Ps” “The Five Ps” All of “IMC” is importantAll of “IMC” is important However...However... Advertising dollarsAdvertising dollars are... are...

Often,Often, the biggest itemthe biggest item in the marketing budget in the marketing budget The most visible partThe most visible part of marketing spending of marketing spending The most controllableThe most controllable marketing activity marketing activity

Advertising is often… Advertising is often… “the tail that wags the marketing dog”“the tail that wags the marketing dog”

Key ConceptsCampaigns:

Origin of termOrigin of term Military CampaignsMilitary Campaigns Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns

Origin of termOrigin of term Military CampaignsMilitary Campaigns Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns


Origin of termOrigin of term Origin of termOrigin of term Fr. campagne, It. campagna - open country

suited to military maneuvers Campaign - a series of military operations with

a particular objective in a war Campaign - a series of organized planned

actions with a particular purpose, as for electing a candidate.


Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns

““Victory is my Victory is my objectiveobjective..War is my War is my strategystrategy.”.”

WinstonWinston ChurchillChurchill

““Victory is my Victory is my objectiveobjective..War is my War is my strategystrategy.”.”

WinstonWinston ChurchillChurchill


Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns “a series of military operations with a particular

objective in a war” Advertising and marketing use both the

language and the military mindset Example: a very popular

marketing book…

“a series of military operations with a particular objective in a war”

Advertising and marketing use both the language and the military mindset

Example: a very popular marketing book…


Political CampaignsPolitical Campaigns Political CampaignsPolitical Campaigns

Each single geographic or Each single geographic or statewide campaign may have statewide campaign may have its own its own objectives and objectives and strategiesstrategies which contribute which contribute to the overall campaign.to the overall campaign.

Each single geographic or Each single geographic or statewide campaign may have statewide campaign may have its own its own objectives and objectives and strategiesstrategies which contribute which contribute to the overall campaign.to the overall campaign.

In politics, as in war, you have In politics, as in war, you have to to pick your battlespick your battles. National . National political campaigns focus on political campaigns focus on key states and voter groupskey states and voter groups..

In politics, as in war, you have In politics, as in war, you have to to pick your battlespick your battles. National . National political campaigns focus on political campaigns focus on key states and voter groupskey states and voter groups..

The objectiveThe objective is a majority is a majority in the Electoral College.in the Electoral College.

The objectiveThe objective is a majority is a majority in the Electoral College.in the Electoral College.


Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns

““AdvertisingAdvertising is a team sport!”is a team sport!”

““AdvertisingAdvertising is a team sport!”is a team sport!”


Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns

Structured andStructured andsequential sequential activitiesactivities

An imaginative An imaginative re- re-integration of integration of new new and existing factorsand existing factors

Shared objectivesShared objectives and and strategiesstrategies

Structured andStructured andsequential sequential activitiesactivities

An imaginative An imaginative re- re-integration of integration of new new and existing factorsand existing factors

Shared objectivesShared objectives and and strategiesstrategies

A team effortA team effort A team effortA team effort

Key Concepts Next, we’ll show you four billboard ads for

a telecom company in Kansas City - Birch Telecom

Then, we’ll discuss some of the basic common elements needed in an advertising campaign

Here’s the first ad...

Advertising Campaign:

Key ConceptsAdvertising Campaign:




What were the common elements?What were the common elements? 1. ____________________________1. ____________________________

2. ____________________________2. ____________________________

3. ____________________________3. ____________________________

4. ____________________________4. ____________________________

5. ____________________________5. ____________________________

6. ____________________________6. ____________________________

What were the common elements?What were the common elements? 1. ____________________________1. ____________________________

2. ____________________________2. ____________________________

3. ____________________________3. ____________________________

4. ____________________________4. ____________________________

5. ____________________________5. ____________________________

6. ____________________________6. ____________________________


graphic look

strategic message

benefit statement

brand personality

executional elements - the dog

anything else?

Campaigns are built with…Campaigns are built with… Campaigns are built with…Campaigns are built with…


Plans & StrategiesPlans & Strategies Plans & StrategiesPlans & Strategies

Key ConceptsPlans & Strategies:

Organized Actions and…Organized Actions and… ““Imaginative Reintegration”Imaginative Reintegration” Plans & Strategies are a combination of:Plans & Strategies are a combination of:

Tightly organized planned actionsTightly organized planned actions Unique strategic configurations Unique strategic configurations

Plans may contain strategies Plans may contain strategies Strategies need plans to be implemented Strategies need plans to be implemented

Organized Actions and…Organized Actions and… ““Imaginative Reintegration”Imaginative Reintegration” Plans & Strategies are a combination of:Plans & Strategies are a combination of:

Tightly organized planned actionsTightly organized planned actions Unique strategic configurations Unique strategic configurations

Plans may contain strategies Plans may contain strategies Strategies need plans to be implemented Strategies need plans to be implemented


Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)

““In business as on the battlefield, the object of In business as on the battlefield, the object of strategy strategy

is to bring about the conditions most favorableis to bring about the conditions most favorable to one’s own side.to one’s own side.

In strategic thinking , In strategic thinking , one first seeks a clear understanding one first seeks a clear understanding

of the particular character of each element of a of the particular character of each element of a situation, situation,

and then makes the fullest possible use and then makes the fullest possible use of human brainpower to restructure the elementsof human brainpower to restructure the elements

in the most advantageous way.”in the most advantageous way.”

““In business as on the battlefield, the object of In business as on the battlefield, the object of strategy strategy

is to bring about the conditions most favorableis to bring about the conditions most favorable to one’s own side.to one’s own side.

In strategic thinking , In strategic thinking , one first seeks a clear understanding one first seeks a clear understanding

of the particular character of each element of a of the particular character of each element of a situation, situation,

and then makes the fullest possible use and then makes the fullest possible use of human brainpower to restructure the elementsof human brainpower to restructure the elements

in the most advantageous way.”in the most advantageous way.”



““Phenomena and events in the real world Phenomena and events in the real world do not always fit a linear model.do not always fit a linear model.

Hence, the most reliable means of dissecting a Hence, the most reliable means of dissecting a situation situation

into its constituent parts and then reassembling them into its constituent parts and then reassembling them in the desired pattern is not a step-by-step in the desired pattern is not a step-by-step

methodology such as systems analysis.methodology such as systems analysis.

Rather, it is Rather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinking tool, , the human brain.”the human brain.”

““Phenomena and events in the real world Phenomena and events in the real world do not always fit a linear model.do not always fit a linear model.

Hence, the most reliable means of dissecting a Hence, the most reliable means of dissecting a situation situation

into its constituent parts and then reassembling them into its constituent parts and then reassembling them in the desired pattern is not a step-by-step in the desired pattern is not a step-by-step

methodology such as systems analysis.methodology such as systems analysis.

Rather, it is Rather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinking tool, , the human brain.”the human brain.”



““No matter how difficult or unprecedented the No matter how difficult or unprecedented the problem, problem,

a breakthrough to the best possible solution a breakthrough to the best possible solution can come only from a combination of rational analysis can come only from a combination of rational analysis

based on the real nature of things, based on the real nature of things, and and imaginative reintegrationimaginative reintegration

of all the different items into a new pattern of all the different items into a new pattern

““No matter how difficult or unprecedented the No matter how difficult or unprecedented the problem, problem,

a breakthrough to the best possible solution a breakthrough to the best possible solution can come only from a combination of rational analysis can come only from a combination of rational analysis

based on the real nature of things, based on the real nature of things, and and imaginative reintegrationimaginative reintegration

of all the different items into a new pattern of all the different items into a new pattern using using nonlinear brain nonlinear brain

powerpower.”.”using using nonlinear brain nonlinear brain

powerpower.”.”

Key ConceptsPlans & Strategies: Now let’s talk about PlansNow let’s talk about Plans Marketing Plans are written:Marketing Plans are written:

By the AdvertisersBy the Advertisers By their Advertising AgenciesBy their Advertising Agencies

Creative Plans may be called:Creative Plans may be called: Creative strategies Creative strategies Creative blueprintsCreative blueprints Creative platformsCreative platforms Creative briefs Creative briefs And sometimes the word “communication”And sometimes the word “communication” replaces replaces

the word “creative”the word “creative”

Now let’s talk about PlansNow let’s talk about Plans Marketing Plans are written:Marketing Plans are written:

By the AdvertisersBy the Advertisers By their Advertising AgenciesBy their Advertising Agencies

Creative Plans may be called:Creative Plans may be called: Creative strategies Creative strategies Creative blueprintsCreative blueprints Creative platformsCreative platforms Creative briefs Creative briefs And sometimes the word “communication”And sometimes the word “communication” replaces replaces

the word “creative”the word “creative”


Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have Strategies Marketing Plans may also have Strategies

and Plans for Sales Promotion and PR and Plans for Sales Promotion and PR The Campaign will also haveThe Campaign will also have

A Media Strategy - and…A Media Strategy - and… A Media PlanA Media Plan Media Departments write Media PlansMedia Departments write Media Plans

The Advertising Strategy determines the The Advertising Strategy determines the Creative Objective and the Media ObjectiveCreative Objective and the Media Objective

Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have Strategies Marketing Plans may also have Strategies

and Plans for Sales Promotion and PR and Plans for Sales Promotion and PR The Campaign will also haveThe Campaign will also have

A Media Strategy - and…A Media Strategy - and… A Media PlanA Media Plan Media Departments write Media PlansMedia Departments write Media Plans

The Advertising Strategy determines the The Advertising Strategy determines the Creative Objective and the Media ObjectiveCreative Objective and the Media Objective


Here’s a graphic representation…Here’s a graphic representation… Here’s a graphic representation…Here’s a graphic representation…

Media StrategyTo be determined

Creative StrategyTo be determined

Market Strategy/MediaTarget audience W 18-49

Market Strategy/CreativeEstablish brand as superior

Media ObjectiveDeliver Advertising to

Target audience W 18-49

Creative ObjectiveEstablish brand as superior

Marketing ObjectiveSell one million of product

Key ConceptsPlans & Strategies: Who’s going to manage all of this?Who’s going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing

Responsible for MarketingResponsible for Marketing Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget

Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients

At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans

Who’s going to manage all of this?Who’s going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing

Responsible for MarketingResponsible for Marketing Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget

Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients

At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans


Agencies turn strategies into ideasAgencies turn strategies into ideas And they turn those ideas into adsAnd they turn those ideas into ads

Creative people actually make the adsCreative people actually make the ads Copywriters and art directorsCopywriters and art directors

Agencies turn plans into campaignsAgencies turn plans into campaigns Clients and account management determine needs Clients and account management determine needs

and budgetsand budgets Media departments turn budgets and strategies into Media departments turn budgets and strategies into

Media Plans Media Plans

Agencies turn strategies into ideasAgencies turn strategies into ideas And they turn those ideas into adsAnd they turn those ideas into ads

Creative people actually make the adsCreative people actually make the ads Copywriters and art directorsCopywriters and art directors

Agencies turn plans into campaignsAgencies turn plans into campaigns Clients and account management determine needs Clients and account management determine needs

and budgetsand budgets Media departments turn budgets and strategies into Media departments turn budgets and strategies into

Media Plans Media Plans

Key ConceptsPlans & Strategies:Plans & Strategies:Plans & Strategies:Plans & Strategies:

To make plans and strategies work, a lot of To make plans and strategies work, a lot of people have to work together.people have to work together.

And that means they have to speak…And that means they have to speak…

To make plans and strategies work, a lot of To make plans and strategies work, a lot of people have to work together.people have to work together.

And that means they have to speak…And that means they have to speak…

The same The same language!language!

The same The same language!language!

Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:

The Language of Marketing & AdvertisingThe Language of Marketing & Advertising The Language of Marketing & AdvertisingThe Language of Marketing & Advertising

Original conceptsOriginal concepts came from came from militarymilitary Now the business of marketing has its Now the business of marketing has its

ownown intellectual infrastructure intellectual infrastructure - a way of - a way of thinking and a way of talkingthinking and a way of talking

Understanding Understanding the the specific meaningsspecific meanings of of key key wordswords and and concepts concepts isis criticalcritical

Yes, it will be on the test!Yes, it will be on the test!

Original conceptsOriginal concepts came from came from militarymilitary Now the business of marketing has its Now the business of marketing has its

ownown intellectual infrastructure intellectual infrastructure - a way of - a way of thinking and a way of talkingthinking and a way of talking

Understanding Understanding the the specific meaningsspecific meanings of of key key wordswords and and concepts concepts isis criticalcritical

Yes, it will be on the test!Yes, it will be on the test!


Mission: Mission: Overall goals & values Overall goals & values your “reason for being”your “reason for being”

Objective: Objective: WhatWhat you want to accomplish you want to accomplish.. Strategy: Strategy: HowHow you are going to do it. you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be

specific action that helps meet strategic specific action that helps meet strategic goals - tactics should be goals - tactics should be on strategy.on strategy.))


Objective: Objective: WhatWhat you want to accomplish you want to accomplish.. Strategy: Strategy: HowHow you are going to do it. you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be


Remember, Remember, objectives first, then objectives first, then strategy. (If you don’t know where strategy. (If you don’t know where you’re going, any road will take you you’re going, any road will take you there.)there.)

Remember, Remember, objectives first, then objectives first, then strategy. (If you don’t know where strategy. (If you don’t know where you’re going, any road will take you you’re going, any road will take you there.)there.)

Remember Remember the acronym the acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics

Remember Remember the acronym the acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics



Objective: Objective: What you want to accomplishWhat you want to accomplish.. Strategy: Strategy: How you are going to do it.How you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be



Objective: Objective: What you want to accomplishWhat you want to accomplish.. Strategy: Strategy: How you are going to do it.How you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be



The Value Ladder

Consumer Benefit Product Benefit

Feature Attribute

Benefit

Value

The Value Ladder

Kids like it

Easy to serve

E-Z Open glass jar

Good food for my family

“I’m a good mom”

Apple sauce is made from apples

“Laddering”


Some More Important Words…Some More Important Words… Some More Important Words…Some More Important Words… Target audience - Target audience - person or group to person or group to

whom advertising is directedwhom advertising is directed Primary target - Primary target - the target audiencethe target audience Secondary target - Secondary target - usually, the tradeusually, the trade

Demographics - Demographics - statistical description of statistical description of target audiencetarget audience

Psychographics - Psychographics - psychological traits of psychological traits of target audiencetarget audience

Target audience - Target audience - person or group to person or group to whom advertising is directedwhom advertising is directed Primary target - Primary target - the target audiencethe target audience Secondary target - Secondary target - usually, the tradeusually, the trade

Demographics - Demographics - statistical description of statistical description of target audiencetarget audience

Psychographics - Psychographics - psychological traits of psychological traits of target audiencetarget audience


Some More Important Words…Some More Important Words… Some More Important Words…Some More Important Words… Sales Promotion - Sales Promotion - use of incentives (a small use of incentives (a small

bribe) to develop or stimulate salesbribe) to develop or stimulate sales Public Relations (PR)Public Relations (PR) - publicity through - publicity through

non-paid medianon-paid media Publics - Publics - a PR version of target audience a PR version of target audience

Situation Analysis - Situation Analysis - beginning section of plan beginning section of plan where current situation is evaluated where current situation is evaluated

““SWOT” Analysis - SWOT” Analysis - Strengths, Weaknesses, Strengths, Weaknesses, Opportunities, and ThreatsOpportunities, and Threats

Sales Promotion - Sales Promotion - use of incentives (a small use of incentives (a small bribe) to develop or stimulate salesbribe) to develop or stimulate sales

Public Relations (PR)Public Relations (PR) - publicity through - publicity through non-paid medianon-paid media Publics - Publics - a PR version of target audience a PR version of target audience

Situation Analysis - Situation Analysis - beginning section of plan beginning section of plan where current situation is evaluated where current situation is evaluated

““SWOT” Analysis - SWOT” Analysis - Strengths, Weaknesses, Strengths, Weaknesses, Opportunities, and ThreatsOpportunities, and Threats


Some Important Media Words…Some Important Media Words… Some Important Media Words…Some Important Media Words… Reach - Reach - percentage of the audience exposed percentage of the audience exposed

to an advertising messageto an advertising message FrequencyFrequency - average number of times - average number of times

audience has had the opportunity to see the audience has had the opportunity to see the messagemessage

GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the - the sum of the ratings points (a point is one percent of the ratings points (a point is one percent of the audience)audience)

TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset, - this is a subset, measuring rating points for the target groupmeasuring rating points for the target group

Reach - Reach - percentage of the audience exposed percentage of the audience exposed to an advertising messageto an advertising message

FrequencyFrequency - average number of times - average number of times audience has had the opportunity to see the audience has had the opportunity to see the messagemessage

GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the - the sum of the ratings points (a point is one percent of the ratings points (a point is one percent of the audience)audience)

TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset, - this is a subset, measuring rating points for the target groupmeasuring rating points for the target group


Some More Important Media Words…Some More Important Media Words… Some More Important Media Words…Some More Important Media Words… CPM (Cost per thousand) - CPM (Cost per thousand) - how much it costs how much it costs

to reach a thousand people (the “M” is the to reach a thousand people (the “M” is the Roman numeral for a thousand)Roman numeral for a thousand)

CPP (Cost per point)CPP (Cost per point) - how much it costs to - how much it costs to buy a “point” of the broadcast audiencebuy a “point” of the broadcast audience

ShareShare - percentage of an audience tuned to a - percentage of an audience tuned to a specific stationspecific station

CPM (Cost per thousand) - CPM (Cost per thousand) - how much it costs how much it costs to reach a thousand people (the “M” is the to reach a thousand people (the “M” is the Roman numeral for a thousand)Roman numeral for a thousand)

CPP (Cost per point)CPP (Cost per point) - how much it costs to - how much it costs to buy a “point” of the broadcast audiencebuy a “point” of the broadcast audience

ShareShare - percentage of an audience tuned to a - percentage of an audience tuned to a specific stationspecific station

OK, now that we know how to talk about OK, now that we know how to talk about advertising, let’s talk about advertising, let’s talk about how it workshow it works…

OK, now that we know how to talk about OK, now that we know how to talk about advertising, let’s talk about advertising, let’s talk about how it workshow it works…

AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Let’s talk aboutLet’s talk about how advertising how advertising

works. works. Next, we’ll cover...Next, we’ll cover...

Let’s talk aboutLet’s talk about how advertising how advertising works. works. Next, we’ll cover...Next, we’ll cover...

Some things we know aboutSome things we know about people people Some things we know aboutSome things we know about

advertising messagesadvertising messages The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model ““AIDA” AIDA”

Some things we know aboutSome things we know about people people Some things we know aboutSome things we know about

advertising messagesadvertising messages The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model ““AIDA” AIDA”

AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Some things we know aboutSome things we know about people. people. Some things we know aboutSome things we know about people. people. ““People read what interests them, People read what interests them,

sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage) People are strategicPeople are strategic - they look out for - they look out for

their own best interests.their own best interests. People arePeople are bombarded with messages bombarded with messages

A key concern is getting through clutterA key concern is getting through clutter People (and advertising) work from People (and advertising) work from

bothboth logic logic and and emotion emotion

““People read what interests them, People read what interests them, sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage)

People are strategicPeople are strategic - they look out for - they look out for their own best interests.their own best interests.

People arePeople are bombarded with messages bombarded with messages A key concern is getting through clutterA key concern is getting through clutter

People (and advertising) work from People (and advertising) work from bothboth logic logic and and emotion emotion

AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Some things we know aboutSome things we know about

AdvertisingAdvertising

Some things we know aboutSome things we know about AdvertisingAdvertising

BrandingBranding and and Advertising Advertising Branding Branding = overall brand equity building= overall brand equity building Advertising Advertising = specific messages and goals= specific messages and goals

Advertising Advertising contributes tocontributes to Branding Branding Advertising Advertising is concerned with: is concerned with:

The Advertising MessageThe Advertising Message Media PlanningMedia Planning and and PlacementPlacement

BrandingBranding and and Advertising Advertising Branding Branding = overall brand equity building= overall brand equity building Advertising Advertising = specific messages and goals= specific messages and goals

Advertising Advertising contributes tocontributes to Branding Branding Advertising Advertising is concerned with: is concerned with:

The Advertising MessageThe Advertising Message Media PlanningMedia Planning and and PlacementPlacement

AnAn Advertising Communication Model Advertising Communication Model AnAn Advertising Communication Model Advertising Communication Model


Feedback

MESSAGE

Advertising Communication Model

AdvertiserSender(Encoder)

AudienceReceiver

(Decoder)

Note it isNote it is more difficult for the audience to more difficult for the audience to communicate back communicate back to the advertiser.to the advertiser. Feedback Feedback is one purpose ofis one purpose of Market Research Market Research

Note it isNote it is more difficult for the audience to more difficult for the audience to communicate back communicate back to the advertiser.to the advertiser. Feedback Feedback is one purpose ofis one purpose of Market Research Market Research



Deciding the Advertising Budget (how much should a company spend?)

No Standard Formula or Norm Varies from industry to industry Varies from company to company Varies from company to company within same

industry Varies within same company over time

General Practices in Budgeting

Competitive Parity (Competitor Standards) Affordability (Small Firms) Fixed Percentage of Turnover (1-2% of

turnover; ignores varying requirements of advertising effort at various stages of PLC)

Based on Functions to be performed

Advertising Objectives are Pinpointed Their role in achieving the overall marketing

objectives is decided Advertising appropriations are decided on a

market to market, product to product and brand to brand basis

Regression equation The regression equation deals with the following variables:

The unknown parameters denoted as β. This may be a scalar or a vector of length k. The independent variables, X. The dependent variable, Y.

Regression equation is a function of variables X and β.

Y = f (X, β) The user of regression analysis must make an intelligent guess about this function. Sometimes the form of

this function is known, sometimes he or she must apply a trial and error process. Assume now that the vector of unknown parameters, β is of length k. In order to perform a regression

analysis the user must provide information about the dependent variable Y: If the user performs the measurement N times, where N < k, regression analysis cannot be performed:

there is not provided enough information to do so. If the user performs N independent measurements, where N = k, then the problem reduces to solving a

set of N equations with N unknowns β. If, on the other hand, the user provides results of N independent measurements, where N > k, regression

analysis can be performed. Such a system is also called an overdetermined system;

Regression coefficient - when the regression line is linear (y = ax + b) the regression coefficient is the constant (a) that represents the rate of change of one variable (y) as a function of changes in the other (x); it is the slope of the regression line

Regression Analysis Based on historical data Time Series Data: Records of past advertising expenditures

and sales over time Cross Sectional Data: Records of advertising expenditure

and sales for a specific period over different markets Most firms using Regression Analysis go for Time Series Data The aim is to predict dependent variable-sale or market

share The advertising expenditure level would be one of

independent variables. The regression coefficient corresponding to the advertising

variable serves as a measure of the short term response to advertising. it is the slope of the regression line

The Adaptive Control Model

The model recognizes that the budget decisions need updating because the relationship between the advertising and sales changes over time with changes in market conditions.

This model starts with a sales response curve and locates an optimal level of ad expenditure.

The firm will now experiment with non optimal levels in select test markets. This is done to get more knowledge about the sales response curve set originally.

The new information therefore coming out of experimental marketing is added to the sales response function for arriving at current optimal advertising expenditure rate.

The Compromise

A “compromise budget” is arrived at after considering the basic questions:

What is the audience to be reached by advertising? What is its size, location etc? What are the media available for delivering the advertising

message? Of the available media which media or media combination

are likely to most cost effective? What are the features of the proposed campaign? Does the

campaign involve single release of an advertisement or repeat releases? What is the releases proposed?

Therefore, the Advertising Budget is a function of: Advertising Objectives, Media Decisions and Copy Decisions

Deciding the Copy/Layout “Copy”:

Written Matter Pictures Labels Logo Design

Copy is synonymous with layout Copy development has become the task of professional

advertising agencies; however copy development becomes successful only when

there is close interaction between the advertiser and the agency

Main Steps in Copy Development

Facts Finding Stage

What is the central issue to be tackled? What is the issue to which the total campaign has to

address itself? What are the overall communication objectives? What is the specific communication objective of the

proposed campaign?

Advertiser and the agency have to work out literally together The agency becomes an insider as far as the advertiser is

concerned. The agency gathers and analyses all pertinent data to come to

grip with the problem and to decide the course to be taken

Idea Finding Stage Tentative ideas are developed under different “idea heads.” They are further processed, developed and screened. The less promising ones are eliminated. To develop ideas different routes are adopted. Interviewing a selected

sample of target audience is a route normally taken for eliciting ideas. Sometimes the agencies also attempt to focus on group interviewing

and brainstorming. All processes are aids to get access to some creative ideas on which

the ad man can work further. He has to further develop the theme and total advertisement story.

He has to decide: kind of source for conveying message, frame message, its style and structure.

He normally the ad man/agency comes up with a number of copy alternatives and places them before the advertiser.

The copies are normally tested in selected segments of market before final decision on choice of copy is made.

The Main elements of a copy Message

Message Structure Message Sidedness (One side argument or two side argument) Order of Presentation Climax Order (Strong points are placed at the end-applies to high interest

material); Anti-Climax (Strong points placed at the beginning-applies to low interest material); Pyramidal Order (important points presented at the middle-effect is least persuasive)

Stating Conclusion in a Message (Should there be an explicit conclusion? It is preferable to leave something out of the message for the audience to guess)

Message Appeal Product oriented appeals

Physical Features oriented appeal Function oriented appeal Brand to Brand comparison appeal

Consumer oriented appeals Consumer Oriented appeal (Attitude, Class, Lifestyle) Appeals evoking pleasant sensations and moods Appeals evoking sense of luxury and distinctiveness Humor appeals Fear appeal

Source The Credibility of the Source Likeability/Attractiveness of the Source The Source’s approach to the views and

Disposition of the audience

The Main elements of a copy

Snapshots

Source tone: soothing, authoritative, upbeat; familiarity or lack of it.

Color: Blue-Cold, used to create distance, blue skies. Red-Intense. Orange (Warm). Black (Mysterious, Sinister), Purple (Luxury). Colors can be treated as metaphors for nature: green grass, brown earth, red blood and passion

Serif Old Roman Style: Tradition and Authority Times, Century Schoolbook (Transitional),

Media Selection Deciding on:

Reach (% of people in the target market exposed to an ad campaign during a given period)

Frequency (the no. of times the average person is exposed to an advertising message in a given period)

Media Impact (qualitative value of a message exposure through a given medium) Eg. Radio Vs TV

More the reach, frequency and media impact advertiser seeks the higher the advertising budget will have to be.

Choosing Among Major Media Types

Profiles of Major Media Types

MEDIUM ADVANTAGES LIMITATIONSNewspapers Flexibility, Timeliness,

Good Local Market; Broad Acceptance; High Believability

Short Life; Poor Reproduction Quality

Television Combines sight, sound, and motion; appealing to senses; high attention; high reach

High absolute cost; less audience selectivity

Direct Mail Audience Selectivity, Flexibility; No Competition; Personalization

Relatively High Cost; “Junk Mail” Image

Radio Mass Use; high geographic and demographic selectivity; low cost

Audio Presentation only; lower attention than television; non standardized rate structures; fleeting exposure

Magazines High geographic and demographic selectivity; credibility and prestige; high quality production; long life

Long ad purchase lead time; some waster circulation; no guarantee of position

Outdoor Flexibility; high repeat exposure; low cost; low competition

No audience selectivity; creative limitations

Selecting Specific Media Vehicles (Specific Magazines, Television Shows, Radio Programmes)

Deciding on Media Timing (Scheduling the advertising over the course of a year)

Advertising EvaluationMeasuring the communication effect of an ad-copy testing-tells whether the ad

is communicating well.

Methods of Advertising Pretesting: Direct Rating (Exposes to consumer panel to alternative ads and asks

them to rate the ads) Portfolio Tests (Consumers view or listen to a portfolio of an

advertisements taking as much as time as they need. They are then asked to recall all the ads and their content, aided or unaided by the interviewer. )

Laboratory Tests (Physiological Reactions are measured: heartbeat, B P, pupil dilation, perspiration. These help measure ad’s attention getting power but reveal little on belief, attitude or intentions)

Post Testing Methods: Recall Tests (Recall everything they can about the advertisers and

products they saw) Recognition Tests (Eg. Readers of a given issue of a magazine are

asked to point out what they recognize as having seen before)

Measuring the Sales Effect What sales are caused by an ad that increases brand

awareness by 20% brand preference by 10%? Sales effect is harder to measure than communication effect Sales are effected by multiple factors apart from advertising:

product features, price, availability etc.

Methods:

Past Sales comparison with past advertising expenditures Varying Advertising Spends (keeping market areas and

marketing efforts constant)

Documents

Advertising & Sales Management