10. Pomotion - Advertising

7/29/2019 10. Pomotion - Advertising

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Manufacturing a fine product is not enough, it also needs to becommunicated to the consumer. It is essential to communicate

the distinctiveness of the product and the extent of value itcreates. This set of communication task constitutes the

promotion mix


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What are Marketing Communications?

Marketing communications are the meansby which firms attempt to inform, persuade,and remind consumers, directly or indirectly,

about the products and brands they sell.


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Integrated Marketing Communication Promotion Communicates (Traditional communication mix)

1. Advertising

2. Personal Selling

3. Sales Promotion4. Publicity

Integrated Marketing communication includes the other 3 Ps also:

Product Communicates (Physical features like color, shape, size,feel, package, Brand name etc)

Price Communicates (price quality, price status, reasonableprice)

Place Communicates (Store image, store choice, exclusivity)


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Traditional Promotion mix includesAdvertising Any paid form of non-personal

presentation of products through an appropriatemedium

Personal Selling Personal presentation ofproducts in conversation with one or moreprospective purchasers

Publicity Non-personal stimulation of demandfor a product by obtaining commercially significantnews / presentation about it in any medium notpaid by the service provider


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Sales Promotion Marketing activities other than theabove that stimulate customer purchasing and use andenhance dealer effectiveness (Contests, coupons /

vouchers, free samples, sign-up rebates, short termincrease in sales commission for intermediaries, gift offers,consultation, money off incentives)


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Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Select channels

Establish budgetDecide on media mix

Measure results/ manage IMC


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Response Hierarchy Models


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Audience response The communicator seeks one or more of the three

audience response to communication

1. Cognitive response message should beconsidered and understood

2. Affective responses - message should lead tosome changes in attitude

3. Behavioral responses message should lead tosome change in Behavior


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What is Advertising?Advertising is any paid form of non personalpresentation and promotion of ideas, goods, or

services by an identified sponsor.

Advertising originates from the Latin wordadvertomeaning turn around

Advertising bears the brunt if marketing fails as it eats up quite a bit ofthe marketing spend


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Advertising Objectives

Informativeaims to create brand awareness

ReminderRemind people to purchase the brand

ReinforcementAims to convince people that they have made

the right choice.

PersuasiveAims to create a liking and preference for the

brand


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Characteristics of an Ideal Ad Campaign

The right consumer is exposed to the messageat the right time and place

The ad causes consumer to pay attention

The ad reflects consumers level of

understanding and behaviors with product The ad correctly positions brand in terms of

points-of-difference and points-of-parity

The ad motivates consumers to considerpurchase of the brand

The ad creates strong brand associations


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Factors in an advertisement that accomplish

Audience persuasion The Source/endorser/presenter of the message

The Message


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Message Source / EndorserEndorser's Characteristics

Credibility (Expertise, trustworthiness,status) example: Indian Medicalassociation endorsing Dettol soap

Likeability Celebrity endorsements

Sources approach to views and dispositionsof the audience When the source hassimilar views with the audience andmentions it at the beginning of thecommunication

Celebrities can also spell trouble for the brand (Tigerwoods ..brand ambassador for Nike, Accenture, TagHeuer etc)


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The Message Message structure order of presentation (climax

order, anticlimax order, pyramidal order)

Message appeal1. Rational appeal

2. Emotional appeal


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Message Rational appeal

1. Numerical claim Complan 23 vital nutrients,

Maggi 2 minute noodle, Britannia cheese - oneslice is equal to a glasses of milk etc

2.Comparative advertising Pepsodent withother tooth pastes, clinic plus vs chik shampoo,Complan and Horlicks, Ujjala and other fabric

whiteners, Rin and Tide


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Message Emotional appeal Surf Excel, Huggies diaper advt

Humor appeal Bingo, Docomo, Kurkure

Fear appeal HDFC standard Life insurance, saffolagold oil


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Hindu against Times comparative

advertising


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Comparative advt.


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Ambush Marketing Pepsi against

Coke during 1996 world cupambush marketing refersto a company's attempt

to capitalize on thegoodwill, reputation, andpopularity of a particular

event by creating an

association with it,without theauthorization or consentof the necessary parties


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Regulations on comparative advertising In most countries there are rules regarding comparative

advertising. In India the advertising standards council(ASCI) comparative advertising direct or implied is

permissible under the following conditions: The aspects compared are clear

Comparisons do not confer artificial advantages on theadvertiser

It is factual, can be substantiated

The consumer is unlikely to be misled

There is no unfair representation of the competingproducts


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Surrogate advertising Surrogate advertising is advertising which embeds a

brand or product message inside an advertisementwhich is apparently for another brand or product.


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Establish the Budget

Affordable

Percentage-of-Sales

Competitive Parity

Objective-and-Task


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Factors to Consider in Setting an Advertising Budget

Stage in the product life cyclenew products merit largeAdvertising to build brand awareness and gain consumer trial

Market share and consumer baseHigh market shareproducts requires lesser investment in advertising

Competition and clutter- with a large number of competitorsAdvertising, a company requires to spend more

Advertising frequencyThe number of repetitionsto build awareness

Product substitutability- Brands that areLess differentiated requires more advertising spend


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Media Selection Traditional Media and New Age Media

Choosing among major media types

1. Target audience media habits ex - New age media for teens

2. Product characteristics - exwomens clothes best advertised

on color fashion magazines

3. Cost - ex Television when budget available is more4. Message characteristics - ex A message announcing sale

tomorrow should be given in newspapers


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TelevisionAdvantages Reaches broad spectrum of

consumers

Low cost per exposure

Ability to demonstrateproduct use life like

Ability to portray imageand brand personality

Disadvantages

Fleeting nature

Clutter

High cost of production

High cost of placement

Lack of attention by

viewers


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Print AdsAdvantages

Detailed product

informationAbility to communicate

user imagery

Flexibility

Ability to segment

Disadvantages

Passive medium

Clutter Unable to demonstrate

product use


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Print Ad Components

Headline

Picture

Signature

Copy


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Radio AdsAdvantages

Flexibility Stations

are very targeted Inexpensive to

produce and place

Especially effective in

the mornings Effective in rural

segments

Disadvantages

Lack of visual images


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Outdoor Media, Cinema Ads Outdoor Media

Oldest Media used by Egyptians as early as 3200 BC

Hoardings, Posters, Neon signs and other illuminations,Transit advertising, Loudspeaker announcements,Balloons and skywriting's

Cinema Halls

Relativelycaptive audience paying attention


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New Age Media

Internet and related platforms Geographical boundaries are losing their significance in

marketing communications Advertising in a seamlessenvironment

50 million bloggers, 70 million teenagers on My Space Internet is more focused, flexible and economic way of

contact will focus more and more marketers to use thismedium

However the idea of transforming marketing campaigns topublic conversations can be frightening. While thecompanies can control the ads in other media, one cannotcontrol an online engagement


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Characteristics, Potential and problems of the net

and related Ad platforms On the internet the exposure to ads is generally tied to an action by

a consumer, and these actions can be counted, tracked and analyzedin ways that conventional mass media can never do.

From broadcasting to narrowcasting Cost per million, cost per

thousand etc is replaced by CPA cost per action People will be both the senders and receivers of the message not

commercial ads

Internet advertising service platforms

1. Googles Adwords and Adsense

2. Microsofts adcentre3. Yahoos Blue lithium

4. E-bays Adcontext


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New Age Media Social networking sites Orkut, Myspace, Facebook etc

have the largest and fastest growing audience. Myspaceroped in 400 million consumers in four years

YouTube New Advertising hotspot Problems of invasion of privacy Net users are hesitant to

share their personal information online

Companies are researching blogs Evalueserve andEmpower Research

Viral Advertising creating a story or message that isinteresting and people email it to each other and it willpropagate itself


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New Age Media Mobile Phone A bigger medium than television,

print or web ( one which is seen by a user every 5minutes)

All big spending advertisers are like HUL, ABNAmro, Microsoft, Infosys, ICICI bank etc are tryingthis medium

Mobile TV

Communicating to the Rural


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Communicating to the Rural

Audience

Large variations in language and culture Campaigns have to be tailor made for product and region

Product demonstrations in haats, mandis, and melas(fairs) are useful

TV and print media do not reach all villages and allcustomers

Wall paintings and signboards very popular

Folk theatre, magic shows and puppet shows are also used

as a media vehicle


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Advertising Agency - TasksAccount Management

Creative development

Media planning and buying


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Media Schedule Media Category Specifies the media selected. Example: Television,

magazines

Media vehicle Specific media within each media are specified.Example: star plus in TV, Business India in magazines, Economic timesin Newspapers etc

Program choice Program to be specified like Big Boss in Colors,Brand equity in Economic Times

Number of insertions no. of planned insertions per media vehicle

Timing Continuous approach and pulsing approach and flightingapproach

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10. Pomotion - Advertising

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