What is Advertising?Advertising is a message designed to promote a product, a service, or an idea. The purpose of advertising is to sell products or services.Business firms, charitable trusts and government agencies use advertsing to promote their products, services and ideas.

The word advertising is derived from two Latin words ‘Ad’ and ‘Verto’.Ad – TowardsVerto – I turnLiterally it means to turn the people’s attention to a specific thing.

Advertising Meaning

Definitions:-DAGMAR: Defining Advertising Goals for Measured Advertsing Results (Russell Coley in 1950)AIDA: Attention, Interst, Desire, Action(Ad should attract attention, gain interestm arouse a desire and result in action)

Advertising is any form of paid non-personal presentation of ideas, goods, or services for the purpose of inducing people to buy. ------WEELER. Advertising is the nonpersonal communication of information, usually paid for and usually persuasive in nature, about products (goods and services), or ideas by identified sponsors through the various media. -----AMA

Advertising is defined as any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.

Advertising Decisions:

Advertising Decisions:1. Setting advertising objective(Mission)2. Setting advertising budget(Money)3. Message decision (Message)4. Media decisions (Media)5. Evaluating advertising campaigns (Measurements)

Advertising Decisions:1. Setting advertising

objective(Mission):An advertsing goal or objective is a specific communication task and an achievement level to be accomplished with a specific audience in a specific period of time. Objectives are classified in 4 categories:a) Informative (awareness and information)b) Persuasive(Aims to create liking, preference,change)c) Reminder(Aims to stimulate repeat purchase)d)Reinforcement (Aims to convince current purchasers that they made right decision)

a) TVS * city b) Close up c)Coco-Cola d)Nano(1,00,000)

Advertising Decisions:

1. Setting advertising objective(Mission)2. Setting advertising budget(Money)

Advertising Decisions:1. Setting advertising objective(Mission)2. Setting advertising budget(Money)Many advertisers implement a number of

budgeting methods developed through practice and experience. They are two types 1. Top down 2. Bottom-Up Budgeting

Advertising Decisions:1. Setting advertising objective(Mission)2. Setting advertising budget(Money)They are two types 1. Top down 2. Bottom-Up

Budgeting1. Top down approach:In this method budgetary amount is established

at top management level and the money will be allotted to various departments. These budgets are predetermined and have bno theoritical basis. The approaches are

a) Affordable methods b) Arbitary allocation

c) Percentage of sales method d) Competitive parity method e) Return on investment method

Top-down approach:a)Affordable methods (all- you- can- afford) b)Arbitary allocation(mgt determines the budget

solely on the basis of what is felt to be necessary)

c)Percentage of sales method d)Competitive parity method (Managers decide

the budget matching the competition percentage of sales expenditures)

e) Return on investment method (In this methods advertsing and promotions are cosidered investmetns like plant and equipment)

Bottom-up approach:a)Objective and task methods(1. Defining communication objecitves 2. Determine the specific strategies ad tasks needed to attain them 3.estimate the costs associated with performance of these strategies and tasks) b)Payout planning (Investment value of the advertising and promotion appropriation)c)Quantitative models (Simulation and regression)

Advertising Message:It has two major elements: a) Creating message

b)Selecting media1. Advertising campaign (Unique Selling Proposition,

Brand image, Inherent drama, Positioning)2. Ad. Copy(The verbal and written material of an

advertisement including the headline, illustrations, name and address of the advertiser adn his signature)

a. Never write an advertisement you wouldn’t want your own family to read

b.Bid ideas are uaually simple ideasc.Every word in the copy must count (David ogilvy)3.Media planning(Reach, Coverage, Frequency, Impact)4.Cost of advertising (Absolute(Actual) costs, Relative

Costs(Relationship between the price paid for advertising time and size of the audience)

5. Media profile (Television, News papers, Magazines)

Examples of successful long running advertisinig campaigns http://knowndiscovery.blogspot.in/2007/09/companies-brands-their-taglines-part-1.html

Company or Brand Campaign Theme

LG Lifes good

AMAZON.COM Earth's Biggest BookStore

TIMESJOBS.COM If you have a reason, we have the job

Windows XP Do More with Less

Accenture High Performance. Delivered

TCS Beyond the Obvious

BMW The Ultimate Driving Machine

HYUNDAI Drive Your Way

TOYOTA Touch The Perfection

HONDA The Power of Dreams

SKODA Obsessed with Quality since 1897.

VOLKSWAGEN Drivers wanted

FIAT Driven by Passion. FIAT

Examples of successful long running advertisinig campaigns

Company or Brand Campaign Theme

Kotak Think Investments. Think Kotak.

CNBC Profit from it

British airways The Way to Fly.

Sahara Emotionally yours.

Malaysian Airlines - Going Beyond Expectations

BPCL Pure for Sure

NDTV Profit - News you can Use.

(NASDAQ)National Association of Securities Dealers Automated Quotations,

Stock market for the digital world

Max NewYork Life Insurance Your Partner for life

India's International Bank Bank of Baroda

The World's Local Bank HSBC

WALMART Always low prices. Always. -

VIZAG STEEL Pride of Steel -

Advertising Measurement: The measurement of advertising effectiveness is

done to test both the communication effects and sales effects of an ad. The funamental research on effectiveness is very little

Communication effect: Communication effects of an ad tell whether the ad is communicating well or not. Copy testing is the method used to test this effect. This can be done before an ad in put into media and after it is printed or braodcost. Thse are knows as pre testing and post testing of an ad. (Consumer feedback, portfolio tsts, laboratory tests)

Sales effect: this is very difficult than communication effect. It is possible through following two methods 1. Historical Appraoch 2. Experimental Appraoch

Classifications of Advertisement Classification by medium: Print advertising (newspaper, magazines, brochures,

flyers) Electronic advertising (television, radio: commercials;

Internet) Outdoor advertising (billboards, kiosks, public

transport, events) Direct-mail advertising (through the Postal Service

and by e-mail) POP (point of purchase) advertising