Internal Assessment (50 marks)Internal Assessment (50 marks)

• Class Exercise- Group (10 marks)

• Written Test (10 marks)

• Article Review - Group(8 marks): Review one recent

article/ research paper on advertising. Presentation (5

marks), Hard Copy (3 marks)

• Ad Evaluation – Group (17 marks): Evaluate one current

advertising campaign of your choice. Presentation (10

marks), Report (7 marks)

• Attendance and class participation (5 marks)

Marketing Communication

Sender Message Receiver

Response

Encoding Decoding

NOISE

Feedback

Channel

Communication ProcessCommunication Process

Marketing CommunicationMarketing Communication• Marketing communication occurs in relation to markets where

messages are sent to target audience in the context of a product.

• Marketing communication is more than just applying the simple fundamentals of communication process and has its specialized nature.

• Marketing communication involves distinct phases and is a gradual process.

• Information response models are the hierarchical models which recognize that there are number of distinct phases in communicating with others.

IMC- ConceptIMC- Concept

• IMC is the result of changes that have taken place in the world of advertising and other promotion tools.

• Marketers started transferring their money from advertising to other promotion tools in order to have better return on their investment.

Reasons for growth of IMCReasons for growth of IMC

• Cluttered media environment• Fragmentation of media• Media cost• Technological advancements• Client expertise• Increasing number of ‘me-too-products’• Increasing power of retailers• Increasing global marketing• Increasing pressure on bottom line

Components of IMCComponents of IMCThe critical components of IMC are:

1.The communication efforts should be directed at consumers in order to affect behaviour.

2. An outside-in approach should be utilized, when developing a communication strategy.

3. A well-established relationship between the company and the customer is necessary.

4. To deliver a message correctly all communication activities should be included with contact points integrated into the strategy.

5. To create a competitive brand, coordination between the communication disciplines is needed.

Barriers to the implementation to IMC

• Power, coordination, and control issues

• Client skills, centralization, and cultural issues

• Agency skills and general time/resource issues

• Flexibility/modification issues

• IMC measurement difficulties • Unclear positioning at corporate level

• Need for cross-disciplinary managerial skills

• • Fear of change Fear of change

• Hierarchical organization structure• Hierarchical organization structure

• Need for single budgeting process and shared • Need for single budgeting process and shared performance; lack of database developmentperformance; lack of database development

• IMC must continually demonstrate how the mix on • IMC must continually demonstrate how the mix on non-traditional media creates more impact at less non-traditional media creates more impact at less costcost

• Mind-set – specialization, history, tradition, • Mind-set – specialization, history, tradition, experienceexperience

Advertising

AN ADVERTISEMENTAN ADVERTISEMENT is a ‘ is a ‘paid form of non-personal paid form of non-personal

presentation and promotion of ideas, goods and services by presentation and promotion of ideas, goods and services by

an identified sponsor’an identified sponsor’

•Advertising is a business activity

•Employs creative techniques

•Promote ideas, goods and services in a manner consistent with the achievement of the advertiser’s objectives, the delivery of consumer satisfactions, and the development of social and economic welfare

Importance of AdvertisingImportance of Advertising

• As a promotional activity

• As a marketing activity

• As a business activity

Major Advertising Decisions

• Selection of target audiences

•Setting advertising objectives

•Setting advertising budget

•Deciding about message

•Deciding about media

•Selection of advertising agency

•Evaluating advertising effectiveness

Types of AdvertisingTypes of Advertising

Basis of Classification

• Audience Intended

• Geographical Spread

• Level of Demand

• Advertising Object

• Advertising Purpose

• Advertising Media

• Miscellaneous

Target market SelectionTarget market Selection

Target market is the focus of firm’s entire marketing effort,

which it may think of serving profitably through

appropriate marketing and communication strategies

StepsSteps

• Identification of some unfulfilled need, • Determination of market segment with the unfulfilled

need,• Targeting the specific segment; and • Positioning one’s product through appropriate

marketing strategy.

Sales as Advertising objective

Lagged Effects of Advertising on Sales

• Distinguish between Marketing Objectives and Advertising Objectives

• An Advertising Objective is a Communication Objective

“An Advertising goal is a specific communication task, to be accomplished among a defined audience to a given degree in a given period of time”.

•Define the specific communication task and its stage

Setting Advertising Budget

• Using marginal rules of economic theory

• Cost –Oriented, Communication-Oriented, Sales-Oriented

Cost OrientedCost Oriented

•Affordable

•Break-even

•Percentage of sales

Communication OrientedCommunication Oriented

• Task and objective – based on contact, which is defined in terms of reach and frequency

• Perceptual impact – based on a measure of probably impact on attitude.

Steps in Objective and Task MethodSteps in Objective and Task Method

• Determine objectives• Define variables to be measured• Specify task and determine cost• Conduct programs• Evaluate and review

Perceptual ImpactPerceptual Impact•Perceptual impact budget is based on psycho-sociological communication objectives.

•To achieve these objectives, conditions are defined in terms of the means used – for example: Media, Reach, Repetitions etc.

•Next, the cost of the various activities is calculated and the total determines the necessary budget.

•What is sought here is an impact on one of the three components of attitude – cognitive, affective or behavioural.

•Advantage: Helps in providing assumptions about the relationships between money spent, exposure, perceptions, trial and repeat purchase.

Sales OrientedSales Oriented1. The Vidale and Wolfe advertising model (1957)

Expresses the following relationship between sales (in units or value) and advertising expenditure:

ds/dt = (ß).(A). (S -s / S) - (1-λ).(s)

where, ds/dt = rate of increase of sales at any time t ß = sales response constant when s=0A = rate of Advertising s = company or brand sales S = product category saturation level λ = sales retention rate

2. Little’s ADBUDG Model (1970)

The ADBUDG model has the following mathematical expression:

MS(t) = MS(min) + {MS(max) - MS(min)} . Advγ / δ +Advγ

where, γ MS(t) = initial market share MS(min) = minimum market share with zero advertising MS(max) = maximum market share with saturation advertising Adv = effective advertising (adjusted for media and copy effectiveness) γ = advertising sensitivity coefficient δ = constant

Product Related•Stage in product Life Cycle•Product Differentiation•Product Substitutability•Durability of Product•Value of Product•Product Quality

Market Related•Nature of Market Demand•Nature of Competition•Size of Market Share

Advertising and Promotion Related Factors•Role of Advertising in Promotion Mix•Advertising Objectives•Advertising Frequency•Availability of Funds•Promotion Strategy•Media Decisions

Others•Distribution Strategy•Overall Business Strategy•Uncontrollable Environmental Factors

Factors Influencing Advertising Budget

Media Decision

Basic Media ConceptsBasic Media Concepts

• Planning and Buying• Reach and Frequency• Impressions, Circulations, Ratings

Formulation is in terms of:

Media mix decision

Matching of media with target market to

maximise exposure and minimise waste

Media use

Media StrategiesMedia Strategies

•Reach

•Frequency

•Gross Rating Points

•Continuity

Media EffectivenessMedia Effectiveness

It involves:

• Deciding about selection of appropriate media for carrying

advertiser’s message to target markets,

• Deciding what to buy, and how much to spend in each

medium

• Scheduling when the advertising is to run

Media PlanningMedia Planning

• New media forms

• Media fragmentation

• Need for using multiple media forms and providing

integrated communication

• Problems with terminologies

• Problems with data base and its measurement

Changing Media EnvironmentChanging Media Environment

• Translating marketing objectives and strategies into goals that media can accomplish

• Involves review of internal and external factors

• AnsweringWhom - requires finding out best prospectsWhere -requires search for areas or segments

where the most potential liesWhen - requires selection of time period

during the year for exposure to take place.

Media ObjectivesMedia Objectives

Media Types

TELEVISIONTELEVISION

• Intrusiveness

• Broad Reach• Cost efficient• Impact• Influence behaviour

POINTS OF WEAKNESSES

•Expensive•Clutter •Non-selective audience•Fleeting exposures •Inflexibility•Problem of zipping and zapping

PRINT MEDIAPRINT MEDIA

NEWSPAPER: POINTS OF STRENGTH

•Gives market coverage to the product•Aids in comparison shopping•Builds positive consumer attitudes•Flexibility•Provides link between national and local advertiser

POINTS OF WEAKNESSES 

• Short life span• Clutter• Limited coverage of certain groups• Poor reproduction quality• Small pass along readership (unlike as in the case

of magazines).

Qualitative Factors of Media ChoiceQualitative Factors of Media Choice• Marketing and Advertising Objectives • Competition situation • Advertising Budget • Brand Dynamics • Target Audience Characteristics• Media Environment • Media Fragmentation• Ad Avoidance• Creative Requirements • Production Logistics• Competitors’ Media Choice

Message Strategy

Designing the MessageDesigning the Message

1. Message Content (what to say)

2. Message Structure (how to say it logically)

3. Message Format (how to say it symbolically)

4. Message Source (who should say it)

Message Content: What to Message Content: What to

SaySay

• Advertising Appeal

• Creative strategy

The choice for message content could either be: • rational and emotional; or • negative vs positive • consumer defined and product defined; or• Sensory, social and ego satisfiers.

Message ApproachesMessage Approaches

• Straightforward

• Demonstration

• Comparison

• Problem-Solution

• Humor

• Spokesperson

• Teasers

• Shockvertising

Message StructureMessage Structure

Important aspects of message structure are:

1. Drawing conclusions

2. Repetition

3. One-versus-two sided arguments

4. Comparative advantage

Message Format: Creative ExecutionMessage Format: Creative Execution

Steps involved in copy writing or creative execution:

1. Idea generation (thinking of ‘big idea’)

2. Generation of written copy

3. Illustrating/ Artwork

4. Layout

Shaping ‘Ideas’Shaping ‘Ideas’

• Chance encounter

• Competitor’s advertising appeal

• Brainstorming

• Market research

Advertising Copy and Its ElementsAdvertising Copy and Its Elements

1. The Headline2. The Sub-head3. The Body Copy4. Captions5. Boxes and panels6. Slogans and logo

Types of HeadlinesTypes of Headlines

• By Contents (What it says)1. Identification headlines2. Problem solving headlines3. News headlines4. Contrast headlines5. Familiar saying

• By form (How it says) Directly or Indirectly

• Other Display Copy Slogans -Enhance memorability Subheads, Captions- Lure the reader into

body copyTagline- wrap up the idea

Types of Body CopyTypes of Body Copy

• Factual Copy: Stresses product advantages

•Emotional presentation: Stresses consumer satisfaction

• Dialogue Copy: Lets the reader “Listen in” on a conversation

• Narrative Copy: Tells Story

IllustratingIllustrating

Shows:• Product alone•Magnifies details•Product in setting•Product in use•Satisfaction•Dramatization of situation• Comparison• Contrast

Layout StylesLayout Styles

• Visual Dominant

• Copy Dominant

Layout ConsiderationsLayout Considerations

• Focal Point• Balance• Contrast• Proportion • Movement• Unity

Copywriting for RadioCopywriting for Radio

1. ‘Theater of the mind’

2. Voice and Style

3. Music (Jingles)

4. Sound Effects

Broadcast CopyBroadcast Copy

Copy Elements• Visual, Audio, Talent, Setting, Lighting, Graphics

Attention Related Factors• Length, Clutter, TV programme, Use of words, music

Characteristics•Action•Demonstration•Storytelling•Emotions

Levels of RelationshipLevels of Relationship

Writing for the WebWriting for the Web

• More interactive than any other mass medium

• Challenge is to attract people to the site and manage

a dialogue-based communication experience

• Web ads create awareness and interest in a product

and build a brand image

• Focus on maintaining interest

Web AdsWeb Ads

• Banner

• Other Web Formats- Games, Pop-up windows, side

frames

Copywriting in a Global EnvironmentCopywriting in a Global Environment

• Language affects the creation of the ad

• Standardizing copy by translating is dangerous

• Use bilingual copywriters

Advertising Agencies

Specialised organisations whose business is to create advertising

• Have roots in tradition as sellers of space

• Changed to buyers of space and subsequently started

offering the services of planning, preparing and placing the ad.

• In house agencies and Outside agencies

AgenciesAgencies

Referrals

Presentation

Image and reputation of the agency

The activities of public relation and publicity

undertaken by the agency.

Hiring of Outside AgencyHiring of Outside Agency

Commission system: based on size of media spend, the commission rate is usually 15%.

Fee based system: based on cost of services provided, cost is calculated using the hourly rate

Combination of fee and commission system

Cost plus agreement: based on cost of actual services rendered

Performance linked: based on the extent to which predetermined goals are met.

Compensation ArrangementsCompensation Arrangements

Evaluating Advertising Effectiveness

Decisions Involved Decisions Involved

• What to measure?• When to measure?• Where to measure?• Which method to use for measurement?

• Measuring Sales Effect

• Measuring Communication Effect

Types of Testing Techniques  

Pre tests Post tests 

Input variables Sales effects / Communication effects

- Consumer JuriesLaboratory - Portfolio testtest - Physiological measures

- Readability test- Concept test- Focus Group test

Field - Questionnaire -Recall Test

Test - vehicle test -Recognition test -Test Marketing

- Inquiry test

Problems in Measuring Ad Effectiveness Problems in Measuring Ad Effectiveness

• Cost • Research problems• Disagreement on what, when and where to

measure

Ethical and Legal Aspects of Advertising

Ethical Issues in Advertising Ethical Issues in Advertising

• Puffery• Taste in advertising• Advertising to children• Advertising of Controversial Products • Subliminal Advertising • Effects on values and life style • Green Marketing

Legal Aspects of Advertising Legal Aspects of Advertising • In India, various Acts were enacted with the intention

to protect the consumers against different forms of exploitation.

• Except for the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 (now repealed) all the other Acts were mainly punitive and preventive in nature.

• Parliament enacted Consumer Protection Act in 1986

Self Regulation Self Regulation

• There are strong believers in the market place who hold the belief that advertisers must be left alone to regulate themselves and they are in the favour of lesser and lesser regulations.

• Advertising Standard Council of India ASCI , a voluntary and non-profit organization has adopted a code for Self Regulation in Advertising. It is a commitment to honest advertising and to fair competition in the market place.