PRESENTED BY-NUPUR AGRAWALMBA III SEM

ADVERTISING“The means of providing the most persuasive possible selling

message to the right prospects at the lowest possible cost".

Kotler and Armstrong provide an alternative definition:-

"Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor".

Nature of Advertising

• A persuasive message.• Carried by a non-personal medium.• Paid for by an identified sponsor.• One way communication.• Supports other promotional efforts.

• MESSAGE MEDIUM ADVERTISING

Persuasive message

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Characteristics of Advertising

Communication Mode Communication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large Audience Reaching Large Audience

Message FlexibilityMessage Flexibility

AdvertisingAdvertisingAdvertisingAdvertising

Indirect and non-personal Indirect and non-personal

LowLow

LittleLittle

DelayedDelayed

One-wayOne-way

YesYes

YesYes

Fast Fast

Same message to all audiencesSame message to all audiences

5 M’s of advertising:

MISSION

MEASUREMENT MEDIA

MESSAGE

MONEY

5 M’s

Advertising communication process

A manufacturer ,retailer or service organisation.

Prepared by an ad agency using artwork, music etc

Newspapers, TV, radio, magazines etc.

Decoding and adoption of the message depending on the attitudes,

values, experiences etc. Specific market audience with geographical, demographical and psychological characteristics.

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Advertising FunctionsInforming

Persuading

Reminding

Adding Value

Assisting Other Company Efforts 9

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Classification of Advertising• Can classify it by:

– The target audience: consumers or businesses

– Product/service vs. organization/company

– Objective: Primary or selective demand

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Advertising to Target Audiences

• Consumer advertising generally appears in mass media and is directed to end consumers: may be product or institutional in nature.

• Business-to-business advertising is often called trade advertising and is directed to a business market.

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What is Being Advertised?• Product advertisingProduct advertising is designed to promote the sale of a

specific product or service:– may be direct-actiondirect-action, quick-response– may be indirect-actionindirect-action over a longer time

• Institutional advertisingInstitutional advertising promotes the firm or tries to create a positive image:– may promote customer service– or send a public service messageExamples-Reliance and kalbe pharma

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What are the Objectives?• Primary-demandPrimary-demand advertising is intended to

stimulate use of a category of products.• Selective-demandSelective-demand advertising is intended to

encourage purchase of a particular brand or the products and services of a specific firm.

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Comparative Advertising• Selective-demandSelective-demand advertising• Involves comparing a product to its competing

brand• May be:

– Direct, naming competitors outright– Less direct, alluding to competitors (e.g., “leading

brand”, “Brand X”) but not naming them

Public service advertising

It is directed at the social welfare of the community or nation.

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The Advertising Management Process

Advertising Strategy

• Setting Objectives•Formulating Budgets

•Creating Ad messages•Selecting Ad Media and Vehicles

Strategy Implementation

Assessing Ad Effectiveness 18

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Budgeting Considerations in Practice

• What is the Ad objective?• How much are competitors spending?• How much money is available?

Creating the Advertising Message

IMPACT

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Advertising Media

Traditional Advertising Media

Traditional Advertising Media

ElectronicAdvertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Electronic mail Interactive video

Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs

Sales and profit effects compare past sales and profits with past expenditures or through experiments

Evaluating Advertising Effectiveness and Return on Advertising Investment

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The STP Marketing Process(segmenting ,Targeting, Positioning)

1. Break the broad market into smaller, more homogenous segments

2. Specifically target discrete market segments

3. Position the brand to appeal to the targeted segments

PPT 6-5

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Promotional Mix

Combination of promotion tools used to reach the target market

and fulfill the organization’s

overall goals.

AdvertisingAdvertising

Public RelationsPublic Relations

Sales Promotion Sales Promotion

Personal SellingPersonal Selling

Word-of-MouthWord-of-Mouth

The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public

understanding and acceptance.

Public Relations

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Sales Promotion

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Personal SellingPlanned presentation to

one or more prospective buyers for the purpose of making a sale.

What advertising can do

• Remind the target audience to buy.• Announce a new brand or service.• Create brand awareness.• Stimulate impulse buying.• Increase confidence in a brand or a company.• Fight competition.• Change attitudes.

India’s 10 leading advertising/PR companies of India:

Ogilvy & mather J walter Thompson India Mudra Communivation Pvt Ltd FCB Ulka advertising Ltd. Rediffusion- DY&R Erickson India Ltd. RK Swamy/BBDO advertising Ltd. Grey worldwide(I) Pvt. Ltd. LEO Burnett India Pvt Ltd. Contract advertising India Ltd.

Conclusion(Key to good advertising)

The most important step lies in deciding what advertising should say and to whom it should say . In all there is a need to do is to decide who buys and uses your products and why. In order to spend media dollars wisely, the advertiser must

know what they read or watch so that they will see your ads.