Functions of ObjectivesFunctions of Objectives

Operate as communication and coordination Operate as communication and coordination device where they provide a vehicle by which device where they provide a vehicle by which the client, the agency account executive, and the client, the agency account executive, and the creative team communicate. the creative team communicate.

Provides criterion for decision making if two or Provides criterion for decision making if two or more alternative campaigns are generated.more alternative campaigns are generated.

They also evaluate result (It implies that there They also evaluate result (It implies that there need to be a measure such as market share or need to be a measure such as market share or brand awareness associated with objective)brand awareness associated with objective)

Objectives of AdvertisementsObjectives of Advertisements

Sales as an ObjectiveSales as an Objective Immediate sales or market share.Immediate sales or market share. The measure is available to evaluate the The measure is available to evaluate the

campaign.campaign. Contributory role of advertising often Contributory role of advertising often

occurs over long run.occurs over long run. Advertising is only one of the many forces Advertising is only one of the many forces

that influence sales.that influence sales. Ads can draw potential buyers the dealer/ Ads can draw potential buyers the dealer/

retailer.retailer.

Cont…Cont…

Get new customers from other BrandsGet new customers from other BrandsGet new customers from other Get new customers from other

categories (coffee drinkers to cold categories (coffee drinkers to cold drinks, sweets to chocolates)drinks, sweets to chocolates)

Increasing share of requirements (for Increasing share of requirements (for those using more than one brands)those using more than one brands)

Increasing brand loyalty, reducing Increasing brand loyalty, reducing attrition (low repurchase rate) and attrition (low repurchase rate) and price elasticity (by increasing loyalty)price elasticity (by increasing loyalty)

Cont…Cont…

Increasing Usage:Increasing Usage:Increase usage in existing product class. Increase usage in existing product class.

(eg tooth paste, Cadbury)(eg tooth paste, Cadbury)The effect is reduction in time between The effect is reduction in time between

purchases.purchases.Behavioral or Action Objectives:Behavioral or Action Objectives:If the ad target is new customers, the If the ad target is new customers, the

goal may be to try a brand for the first goal may be to try a brand for the first time.time.

The result would be measured by the The result would be measured by the number of new customers attracted.number of new customers attracted.

Cont…Cont…

Brand Awareness: Brand Awareness: Needed when the Needed when the goal is to stimulate trial purchasegoal is to stimulate trial purchase

Brand Comprehension: Brand Comprehension: Communication Communication about brand attributes.about brand attributes.

Brand Image and Personality: Brand Image and Personality: Brand attitude: Brand attitude: Like, dislike feeling Like, dislike feeling

towards a brand.towards a brand.Association feelings with Brands or Use Association feelings with Brands or Use

Experience:Experience:

Role of Advertising In Marketing Role of Advertising In Marketing ProgramProgram

Most appropriate way to improve sales Most appropriate way to improve sales may not involve promotion or ads at all but may not involve promotion or ads at all but extensive distribution, better relationship extensive distribution, better relationship with trade, lower price or better quality.with trade, lower price or better quality.

Brand manger should find out exact source Brand manger should find out exact source of poor sales. (Eg product purchased once of poor sales. (Eg product purchased once means ad is successful but no repeat means ad is successful but no repeat purchase is problem with quality)purchase is problem with quality)

Marketing plan thus based on specific Marketing plan thus based on specific problems or opportunities through situation problems or opportunities through situation analysis.analysis.

Cont…Cont…

Reinforce idea of high quality and prestige Reinforce idea of high quality and prestige (through people, event or situation).(through people, event or situation).

Stress price differentiation for low priced Stress price differentiation for low priced product.product.

Role of ad also depend on distribution channel Role of ad also depend on distribution channel selected.selected.

Door to Door sales- Introduce sales personDoor to Door sales- Introduce sales person Ads can be targeted for either consumer or Ads can be targeted for either consumer or

trade. (Trade- push, Consumer- pull)trade. (Trade- push, Consumer- pull) Advertising can be targeted on distribution Advertising can be targeted on distribution

strategy {Intensive (customers), Selective, strategy {Intensive (customers), Selective, Exclusive (dealers)}Exclusive (dealers)}

Communication MixCommunication Mix

Direct SellingDirect SellingSales promotionSales promotionPublic RelationPublic RelationPublicityPublicityAdvertising Advertising

Direct or Database MarketingDirect or Database Marketing

Includes direct mailing, Telemarketing, Direct Includes direct mailing, Telemarketing, Direct response ad on TV & Radio (toll free number)response ad on TV & Radio (toll free number)

It has ability to It has ability to target specific individual target specific individual customers with an offer that is tailor-madecustomers with an offer that is tailor-made

It directly It directly measures responsemeasures response (responses (responses during telemarketing can be entered into during telemarketing can be entered into computerized database and further computerized database and further communication is customizedcommunication is customized))

The aim is not only to build awareness or The aim is not only to build awareness or change preference but to generate an actionchange preference but to generate an action

Sales PromotionsSales Promotions

Coupons, Sampling, premiums, low cost Coupons, Sampling, premiums, low cost finance, rebates (discounts), trade finance, rebates (discounts), trade promotions, bonus, displays and promotions, bonus, displays and merchandising allowance.merchandising allowance.

It is used to ensure that consumer buy the It is used to ensure that consumer buy the products, influence repurchase, influence products, influence repurchase, influence time and place of purchase, push the brand time and place of purchase, push the brand (retail trade).(retail trade).

It helps in discriminating different customers. It helps in discriminating different customers. (eg time spent by customers to use coupon)(eg time spent by customers to use coupon)

Cont…Cont…

Retailers use promotion to push Retailers use promotion to push perishable or non moving goods.perishable or non moving goods.

Sales promotion offered for limited periodSales promotion offered for limited period Trade Promotion: Trade Promotion:

1.1. Off invoice or buying allowance: Price cut Off invoice or buying allowance: Price cut on large volume purchaseon large volume purchase

2.2. Count Recount allowance: Discount Count Recount allowance: Discount applied only on qty transferred from applied only on qty transferred from retailers warehouse to stores during retailers warehouse to stores during promotionpromotion

Cont…Cont…

3. Bill back allowance: Discount on per case 3. Bill back allowance: Discount on per case basis only if performance criteria are basis only if performance criteria are metmet

4. Display allowance4. Display allowance

5. Slotting or facing allowance: One time 5. Slotting or facing allowance: One time fee for buying new product.fee for buying new product.

6. Trade Inventory finances or delayed 6. Trade Inventory finances or delayed billings: Generally seen in durable goods billings: Generally seen in durable goods markets for stocking adequate inventorymarkets for stocking adequate inventory

Other Action Oriented Other Action Oriented CommunicationCommunication

Retail Advertising: Provide consumer with Retail Advertising: Provide consumer with lot of specific information such as size, lot of specific information such as size, color, prize of shirtcolor, prize of shirt

Co operative Advertising: Manufacturer Co operative Advertising: Manufacturer offer retailer an advertising program for offer retailer an advertising program for later to run. Program may include later to run. Program may include suggested ad format, material to be used suggested ad format, material to be used to create actual ad and part of money to to create actual ad and part of money to pay the cost. There are three type of co pay the cost. There are three type of co operative ads vertical, horizontal (many operative ads vertical, horizontal (many dealers coming together) and ingrient dealers coming together) and ingrient producer (Eg NutraSweet pays part of ad producer (Eg NutraSweet pays part of ad run by user product diet Coke)run by user product diet Coke)

Cont…Cont…

Reminder, Point of purchase and Reminder, Point of purchase and Specialty advertising: Already brand Specialty advertising: Already brand is established and ads stimulate is established and ads stimulate immediate purchase. POP (package, immediate purchase. POP (package, price, and key selling idea at place price, and key selling idea at place where product is sold), Specialty where product is sold), Specialty (useful products given free to (useful products given free to consumers like pens, calendars to consumers like pens, calendars to promote other products)promote other products)

Cont…Cont…

In store advertising and Merchandising: In store advertising and Merchandising: Most customers make decision to Most customers make decision to purchase after entering the stores by purchase after entering the stores by screening the brands (electronically screening the brands (electronically scrolling ads, placards, TV near checkout scrolling ads, placards, TV near checkout lanes, radio ads in stores, ads on shopping lanes, radio ads in stores, ads on shopping carts etc.) Merchandising is displays, carts etc.) Merchandising is displays, signs, and positioning of brand in stores.signs, and positioning of brand in stores.

Industrial Marketing: Sales leads Industrial Marketing: Sales leads (telemarketing, call back, internet)(telemarketing, call back, internet)

Public RelationsPublic Relations

Used to reach hard to reach Used to reach hard to reach consumers and to get more consumers and to get more credibility (editorial in news papers & credibility (editorial in news papers & magazines or by associating with magazines or by associating with sports, cultural event or charitable sports, cultural event or charitable organizations)organizations)

It helps in building corporate public It helps in building corporate public imageimage

Role of Advertising In Role of Advertising In Communication MixCommunication Mix

Utilized when problem is communication Utilized when problem is communication with consumers.with consumers.

Immediately more money should not be Immediately more money should not be spent on advertisingspent on advertising

Advtg is only one part of communicationAdvtg is only one part of communicationWithin this mix ads has various Within this mix ads has various

strengths and weaknesses. strengths and weaknesses. Ad unlike sales, is much cheaper way to Ad unlike sales, is much cheaper way to

reach target consumers due to mass reach target consumers due to mass med. med.

Cont…Cont…

Unlike sales calls ads can be complex, Unlike sales calls ads can be complex, can use visual devices to increase can use visual devices to increase persuasion of message.persuasion of message.

Ads help in increasing brand awareness Ads help in increasing brand awareness developing favorable attitudes.developing favorable attitudes.

Repeated reminders possible with ads.Repeated reminders possible with ads.Sales are nor guaranteed easilySales are nor guaranteed easilySales person can often communicate Sales person can often communicate

more complex information( B To B ) more complex information( B To B )

Cont…Cont…

Ads are tailor-made, sales person can Ads are tailor-made, sales person can make adjustment as per needs.make adjustment as per needs.

With sales person needs can be identifies With sales person needs can be identifies and feedback is possible and product and feedback is possible and product display is possible.display is possible.

Sales person can close communication by Sales person can close communication by getting ordergetting order

Direct marketing need to target certain Direct marketing need to target certain prospects with more customized message, prospects with more customized message, provide more information and induce provide more information and induce customer to actcustomer to act

Cont…Cont…

Ads help in success of sales promotionAds help in success of sales promotion Ads are perceived as biasAds are perceived as bias People do not trust ads & skeptical about People do not trust ads & skeptical about

claimsclaims In such cases advertiser may use more In such cases advertiser may use more

credible communication such as publicity credible communication such as publicity or public relation.or public relation.

Company must work out combination of Company must work out combination of communication mix which compliment communication mix which compliment each other.each other.