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ADVERTISING & SALES MANAGEMENT
Importance of Advertising
“Advertising is telling and selling” Though it is one of the several functions
of marketing, it has taken the form of an independent discipline.
The Meaning of Advertising
The term originates from the Latin “adverto”, which means to turn round.
Advertising thus denotes the means employed to draw attention to any object or purpose.
“It is a paid form of non personal presentation an promotion of ideas, goods or services by an identified sponsor.”
Through advertisement, the advertiser intends to spread his ideas about his products among this customers and prospects.
Popularization is the basic aim of the advertising activity
Key Components of the Advertising Job
Decide the advertising objectives to be accomplished
Determine the target audience at whom the message is to be aimed
Decide the advertising appropriations Select the media Construct the actual advertisement in the
pretest its efficiency Coordinate the advertising effort with the rest of
the promotional Programmes
Four Major Decision Areas
Deciding the Advertising Objectives Deciding the Budget Deciding the Copy Deciding the Media
Deciding the Advertising Objectives
Objectives are essential because it helps the marketer know in advance what they want to achieve and it also helps ensure that they are proceeding in the right direction
Goals are also made real through objectives leading to effective development of advertising Programmes for meeting the objectives.
As Advertising became a business task it was imperative that it was expected to yield results proportionate to the effort and cost involved.
Two distinct schools of thought What should be or what could be the objectives of
advertising? One school has it that advertising must bring in
more sales and therefore advertising objectives should certainly include sales growth.
The other school feels that advertising is about communication and therefore goals should be intended to shape awareness and attitudes of consumers.
“Advertising that does not sell is a waste” –David Ogilvy
Conflict Remains: Communicating certain ideas Vs Direct Sales Task role
Four Sets of Constructs/Themes
The behavioral constructs e.g.. Trial purchases and store visits
Attitude; Attitude change and attitude measurement
Awareness; creating awareness of new products and ideas
Image creation and positioning (or reinforcing)
Areas of Ad Objectives Introduction of new products in the market Expansion of the market for the existing products/brands Building a long term consumer franchise for the firm Countering Competition Reminding Customers Reassuring the customers by removing post purchase dissonance Building up brand image and company image Aiding the total selling function by taking the customer through all the
steps from awareness to purchase involved in the selling process Closing an immediate sale (Clincher ads) Supporting other sales promotion activities Stimulating impulse buying Enthusing the channel to stock the product Supporting and supplementing the salesman’s effort Supporting and supplementing the dealer’s selling effort
“ “AIDA”AIDA” “ “AIDA”AIDA”
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works
AttentionAttention AttentionAttention InterestInterest InterestInterest
DesireDesire DesireDesire Action!Action! Action!Action!
AIDA (Awareness, Interest, Desire, Action)
The AIDA sequence is conceptualized by Strong (1925)
Here the consumer is moved along a linear continuum of internal states from unawareness to awareness
Then interest is elicited and desire (for the brand) is aroused.
Finally, the consumer is stirred into action.
Linear Communication and the Hierarchy of Effects
Theories reflect the methods and assumptions of cognitive psychology.
Analogy is drawn between the information processing of computers and that of humans
These research traditions have been drawn on by models of advertising persuasion
The consumer’s resistance is broken by an accumulation of advertising effects hence the expression “hierarchy of effects”
The consumer processes information like a computer sequentially according to rules
Hierarchy of Effects
The hierarchy of effect represents “compounding probabilities” (Percy et al. 2001)
It is also criticized on the grounds that it conceives of advertising consumption as an essentially dyadic process transmitted through a media channel to an individual viewer and consumed in social isolation
A further criticism is that it represents only high involvement purchases: many or most purchases are spontaneous and do not engage consumers in such rational processing
Social Process Vs Emotional Process
Ineluctably social process (Ritson and Elliot, 1999) – we do not generally view ads in an experimental booth-our interpretation of them is normally framed by the social context in which we encounter them.
Elliot, 1998; Holbrook and Hirschman, 1982 –Subsequent models have incorporated stronger elements of consumer emotionality into the persuasion process to reflect the often irrational and quirky motivations behind consumer behavior.
Cognition Cognition (Thinking) refers to the rational appeal of
advertising as for example, a motor car ad which includes data on engine performance or utility features.
The affective stage refers to the emotional response of the consumer to an ad. Not only does the ad seek to engage with the consumer on a rational level by emphasizing product benefits; it also tries to elicit a positive emotional response with pleasing imagery and alluring symbolism.
Motor car ads typically feature the engine and other product data plus a carefully shot picture of the car and its occupants in a pleasing setting.
The emotional response is: desire, triggered by identification. Finally conation refers to action: the combination of rational and emotional appeal in the same ad might act persuasively and motivate a purchase response.
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Some things we know aboutSome things we know about people. people. Some things we know aboutSome things we know about people. people. ““People read what interests them, People read what interests them,
sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage) People are strategicPeople are strategic - they look out for - they look out for
their own best interests.their own best interests. People arePeople are bombarded with messages bombarded with messages
A key concern is getting through clutterA key concern is getting through clutter People (and advertising) work from People (and advertising) work from
bothboth logic logic and and emotion emotion
““People read what interests them, People read what interests them, sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage)
People are strategicPeople are strategic - they look out for - they look out for their own best interests.their own best interests.
People arePeople are bombarded with messages bombarded with messages A key concern is getting through clutterA key concern is getting through clutter
People (and advertising) work from People (and advertising) work from bothboth logic logic and and emotion emotion
The Linear Model of Communication
SENDER ENCODE MESSAGE DECODE RECEIVER
NOISE
NOISE
Limitations of Linear Model It is easy to interpret in such a way that meaning and message are
understood to be synonymous. This risks misconstruing the interpretative possibilities.
Oversimplification of the customer’s cognitive engagement with advertising by emphasizing a singular message that has one unproblematic meaning.
The advent of parallel processing: the assumption that computers and human brains can process one bit of data at a time as been challenged by more complex models
The implication that explicit attention must be given to an ad is erroneous. The linear model of communication with its sequential processing translates
conveniently into a model of persuasion if these stages are replaced with attitudinal or behavioral states (AIDA). A lot of research goes on in measuring these states as they are an indicator of the likelihood of purchase (and therefore an indicator of success of the advertisement campaign). Thus these are necessary conditions for advertising to achieve its marketing goals but not sufficient. Eg. A consumer may be aware of ad or may even like an ad but that does not mean he will buy the product.
The Lavidge-Steiner The Lavidge-Steiner Learning ModelLearning Model
The Lavidge-Steiner The Lavidge-Steiner Learning ModelLearning Model
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Begins withBegins with Awareness Awareness Moves toMoves to Conviction Conviction
and and PurchasePurchase
Begins withBegins with Awareness Awareness Moves toMoves to Conviction Conviction
and and PurchasePurchase NOTE: Process may be NOTE: Process may be
quite rapid and you quite rapid and you may try before being may try before being totally convincedtotally convinced
NOTE: Process may be NOTE: Process may be quite rapid and you quite rapid and you may try before being may try before being totally convincedtotally convinced
How people “learn” adsHow people “learn” ads How people “learn” adsHow people “learn” ads
Key ConceptsThe Single Biggest Thing: Advertising dollars Advertising dollars have greathave great “elasticity”“elasticity”
Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising is usually critical for success in the is usually critical for success in the
marketplacemarketplace The Wrong AdvertisingThe Wrong Advertising is usually worthlessis usually worthless
AdvertisingAdvertising can be can be The Single Biggest ThingThe Single Biggest Thing It can probably impact sales It can probably impact sales more than any other more than any other
element of the marketing mixelement of the marketing mix.. And … it isAnd … it is the most fun!the most fun!
Advertising dollars Advertising dollars have greathave great “elasticity”“elasticity” Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising
is usually critical for success in the is usually critical for success in the marketplacemarketplace
The Wrong AdvertisingThe Wrong Advertising is usually worthlessis usually worthless AdvertisingAdvertising can be can be The Single Biggest ThingThe Single Biggest Thing
It can probably impact sales It can probably impact sales more than any other more than any other element of the marketing mixelement of the marketing mix..
And … it isAnd … it is the most fun!the most fun!
Key ConceptsThe Single Biggest Thing Advertising is Advertising is just a partjust a part of of “The Five Ps” “The Five Ps” All of “IMC” is importantAll of “IMC” is important However...However... Advertising dollarsAdvertising dollars are... are...
Often,Often, the biggest itemthe biggest item in the marketing budget in the marketing budget The most visible partThe most visible part of marketing spending of marketing spending The most controllableThe most controllable marketing activity marketing activity
Advertising is often… Advertising is often… “the tail that wags the marketing dog”“the tail that wags the marketing dog”
Advertising is Advertising is just a partjust a part of of “The Five Ps” “The Five Ps” All of “IMC” is importantAll of “IMC” is important However...However... Advertising dollarsAdvertising dollars are... are...
Often,Often, the biggest itemthe biggest item in the marketing budget in the marketing budget The most visible partThe most visible part of marketing spending of marketing spending The most controllableThe most controllable marketing activity marketing activity
Advertising is often… Advertising is often… “the tail that wags the marketing dog”“the tail that wags the marketing dog”
Key ConceptsCampaigns:
Origin of termOrigin of term Military CampaignsMilitary Campaigns Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns
Origin of termOrigin of term Military CampaignsMilitary Campaigns Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns
Key ConceptsCampaigns:
Origin of termOrigin of term Origin of termOrigin of term Fr. campagne, It. campagna - open country
suited to military maneuvers Campaign - a series of military operations with
a particular objective in a war Campaign - a series of organized planned
actions with a particular purpose, as for electing a candidate.
Key ConceptsCampaigns:
Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns
““Victory is my Victory is my objectiveobjective..War is my War is my strategystrategy.”.”
WinstonWinston ChurchillChurchill
““Victory is my Victory is my objectiveobjective..War is my War is my strategystrategy.”.”
WinstonWinston ChurchillChurchill
Key ConceptsCampaigns:
Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns “a series of military operations with a particular
objective in a war” Advertising and marketing use both the
language and the military mindset Example: a very popular
marketing book…
“a series of military operations with a particular objective in a war”
Advertising and marketing use both the language and the military mindset
Example: a very popular marketing book…
Key ConceptsCampaigns:
Political CampaignsPolitical Campaigns Political CampaignsPolitical Campaigns
Each single geographic or Each single geographic or statewide campaign may have statewide campaign may have its own its own objectives and objectives and strategiesstrategies which contribute which contribute to the overall campaign.to the overall campaign.
Each single geographic or Each single geographic or statewide campaign may have statewide campaign may have its own its own objectives and objectives and strategiesstrategies which contribute which contribute to the overall campaign.to the overall campaign.
In politics, as in war, you have In politics, as in war, you have to to pick your battlespick your battles. National . National political campaigns focus on political campaigns focus on key states and voter groupskey states and voter groups..
In politics, as in war, you have In politics, as in war, you have to to pick your battlespick your battles. National . National political campaigns focus on political campaigns focus on key states and voter groupskey states and voter groups..
The objectiveThe objective is a majority is a majority in the Electoral College.in the Electoral College.
The objectiveThe objective is a majority is a majority in the Electoral College.in the Electoral College.
Key ConceptsCampaigns:
Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns
““AdvertisingAdvertising is a team sport!”is a team sport!”
““AdvertisingAdvertising is a team sport!”is a team sport!”
Key ConceptsCampaigns:
Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns
Structured andStructured andsequential sequential activitiesactivities
An imaginative An imaginative re- re-integration of integration of new new and existing factorsand existing factors
Shared objectivesShared objectives and and strategiesstrategies
Structured andStructured andsequential sequential activitiesactivities
An imaginative An imaginative re- re-integration of integration of new new and existing factorsand existing factors
Shared objectivesShared objectives and and strategiesstrategies
A team effortA team effort A team effortA team effort
Key Concepts Next, we’ll show you four billboard ads for
a telecom company in Kansas City - Birch Telecom
Then, we’ll discuss some of the basic common elements needed in an advertising campaign
Here’s the first ad...
Advertising Campaign:
Key ConceptsAdvertising Campaign:
Key ConceptsAdvertising Campaign:
Key ConceptsAdvertising Campaign:
Key ConceptsAdvertising Campaign:
What were the common elements?What were the common elements? 1. ____________________________1. ____________________________
2. ____________________________2. ____________________________
3. ____________________________3. ____________________________
4. ____________________________4. ____________________________
5. ____________________________5. ____________________________
6. ____________________________6. ____________________________
What were the common elements?What were the common elements? 1. ____________________________1. ____________________________
2. ____________________________2. ____________________________
3. ____________________________3. ____________________________
4. ____________________________4. ____________________________
5. ____________________________5. ____________________________
6. ____________________________6. ____________________________
Key ConceptsAdvertising Campaign:
graphic look
strategic message
benefit statement
brand personality
executional elements - the dog
anything else?
Campaigns are built with…Campaigns are built with… Campaigns are built with…Campaigns are built with…
Key ConceptsAdvertising Campaign:
Plans & StrategiesPlans & Strategies Plans & StrategiesPlans & Strategies
Key ConceptsPlans & Strategies:
Organized Actions and…Organized Actions and… ““Imaginative Reintegration”Imaginative Reintegration” Plans & Strategies are a combination of:Plans & Strategies are a combination of:
Tightly organized planned actionsTightly organized planned actions Unique strategic configurations Unique strategic configurations
Plans may contain strategies Plans may contain strategies Strategies need plans to be implemented Strategies need plans to be implemented
Organized Actions and…Organized Actions and… ““Imaginative Reintegration”Imaginative Reintegration” Plans & Strategies are a combination of:Plans & Strategies are a combination of:
Tightly organized planned actionsTightly organized planned actions Unique strategic configurations Unique strategic configurations
Plans may contain strategies Plans may contain strategies Strategies need plans to be implemented Strategies need plans to be implemented
Key ConceptsPlans & Strategies:
Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)
““In business as on the battlefield, the object of In business as on the battlefield, the object of strategy strategy
is to bring about the conditions most favorableis to bring about the conditions most favorable to one’s own side.to one’s own side.
In strategic thinking , In strategic thinking , one first seeks a clear understanding one first seeks a clear understanding
of the particular character of each element of a of the particular character of each element of a situation, situation,
and then makes the fullest possible use and then makes the fullest possible use of human brainpower to restructure the elementsof human brainpower to restructure the elements
in the most advantageous way.”in the most advantageous way.”
““In business as on the battlefield, the object of In business as on the battlefield, the object of strategy strategy
is to bring about the conditions most favorableis to bring about the conditions most favorable to one’s own side.to one’s own side.
In strategic thinking , In strategic thinking , one first seeks a clear understanding one first seeks a clear understanding
of the particular character of each element of a of the particular character of each element of a situation, situation,
and then makes the fullest possible use and then makes the fullest possible use of human brainpower to restructure the elementsof human brainpower to restructure the elements
in the most advantageous way.”in the most advantageous way.”
Key ConceptsPlans & Strategies:
Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)
““Phenomena and events in the real world Phenomena and events in the real world do not always fit a linear model.do not always fit a linear model.
Hence, the most reliable means of dissecting a Hence, the most reliable means of dissecting a situation situation
into its constituent parts and then reassembling them into its constituent parts and then reassembling them in the desired pattern is not a step-by-step in the desired pattern is not a step-by-step
methodology such as systems analysis.methodology such as systems analysis.
Rather, it is Rather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinking tool, , the human brain.”the human brain.”
““Phenomena and events in the real world Phenomena and events in the real world do not always fit a linear model.do not always fit a linear model.
Hence, the most reliable means of dissecting a Hence, the most reliable means of dissecting a situation situation
into its constituent parts and then reassembling them into its constituent parts and then reassembling them in the desired pattern is not a step-by-step in the desired pattern is not a step-by-step
methodology such as systems analysis.methodology such as systems analysis.
Rather, it is Rather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinking tool, , the human brain.”the human brain.”
Key ConceptsPlans & Strategies:
Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)
““No matter how difficult or unprecedented the No matter how difficult or unprecedented the problem, problem,
a breakthrough to the best possible solution a breakthrough to the best possible solution can come only from a combination of rational analysis can come only from a combination of rational analysis
based on the real nature of things, based on the real nature of things, and and imaginative reintegrationimaginative reintegration
of all the different items into a new pattern of all the different items into a new pattern
““No matter how difficult or unprecedented the No matter how difficult or unprecedented the problem, problem,
a breakthrough to the best possible solution a breakthrough to the best possible solution can come only from a combination of rational analysis can come only from a combination of rational analysis
based on the real nature of things, based on the real nature of things, and and imaginative reintegrationimaginative reintegration
of all the different items into a new pattern of all the different items into a new pattern using using nonlinear brain nonlinear brain
powerpower.”.”using using nonlinear brain nonlinear brain
powerpower.”.”
Key ConceptsPlans & Strategies: Now let’s talk about PlansNow let’s talk about Plans Marketing Plans are written:Marketing Plans are written:
By the AdvertisersBy the Advertisers By their Advertising AgenciesBy their Advertising Agencies
Creative Plans may be called:Creative Plans may be called: Creative strategies Creative strategies Creative blueprintsCreative blueprints Creative platformsCreative platforms Creative briefs Creative briefs And sometimes the word “communication”And sometimes the word “communication” replaces replaces
the word “creative”the word “creative”
Now let’s talk about PlansNow let’s talk about Plans Marketing Plans are written:Marketing Plans are written:
By the AdvertisersBy the Advertisers By their Advertising AgenciesBy their Advertising Agencies
Creative Plans may be called:Creative Plans may be called: Creative strategies Creative strategies Creative blueprintsCreative blueprints Creative platformsCreative platforms Creative briefs Creative briefs And sometimes the word “communication”And sometimes the word “communication” replaces replaces
the word “creative”the word “creative”
Key ConceptsPlans & Strategies:
Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have Strategies Marketing Plans may also have Strategies
and Plans for Sales Promotion and PR and Plans for Sales Promotion and PR The Campaign will also haveThe Campaign will also have
A Media Strategy - and…A Media Strategy - and… A Media PlanA Media Plan Media Departments write Media PlansMedia Departments write Media Plans
The Advertising Strategy determines the The Advertising Strategy determines the Creative Objective and the Media ObjectiveCreative Objective and the Media Objective
Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have Strategies Marketing Plans may also have Strategies
and Plans for Sales Promotion and PR and Plans for Sales Promotion and PR The Campaign will also haveThe Campaign will also have
A Media Strategy - and…A Media Strategy - and… A Media PlanA Media Plan Media Departments write Media PlansMedia Departments write Media Plans
The Advertising Strategy determines the The Advertising Strategy determines the Creative Objective and the Media ObjectiveCreative Objective and the Media Objective
Key ConceptsPlans & Strategies:
Here’s a graphic representation…Here’s a graphic representation… Here’s a graphic representation…Here’s a graphic representation…
Media StrategyTo be determined
Creative StrategyTo be determined
Market Strategy/MediaTarget audience W 18-49
Market Strategy/CreativeEstablish brand as superior
Media ObjectiveDeliver Advertising to
Target audience W 18-49
Creative ObjectiveEstablish brand as superior
Marketing ObjectiveSell one million of product
Key ConceptsPlans & Strategies: Who’s going to manage all of this?Who’s going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing
Responsible for MarketingResponsible for Marketing Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget
Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients
At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans
Who’s going to manage all of this?Who’s going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing
Responsible for MarketingResponsible for Marketing Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget
Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients
At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans
Key ConceptsPlans & Strategies:
Agencies turn strategies into ideasAgencies turn strategies into ideas And they turn those ideas into adsAnd they turn those ideas into ads
Creative people actually make the adsCreative people actually make the ads Copywriters and art directorsCopywriters and art directors
Agencies turn plans into campaignsAgencies turn plans into campaigns Clients and account management determine needs Clients and account management determine needs
and budgetsand budgets Media departments turn budgets and strategies into Media departments turn budgets and strategies into
Media Plans Media Plans
Agencies turn strategies into ideasAgencies turn strategies into ideas And they turn those ideas into adsAnd they turn those ideas into ads
Creative people actually make the adsCreative people actually make the ads Copywriters and art directorsCopywriters and art directors
Agencies turn plans into campaignsAgencies turn plans into campaigns Clients and account management determine needs Clients and account management determine needs
and budgetsand budgets Media departments turn budgets and strategies into Media departments turn budgets and strategies into
Media Plans Media Plans
Key ConceptsPlans & Strategies:Plans & Strategies:Plans & Strategies:Plans & Strategies:
To make plans and strategies work, a lot of To make plans and strategies work, a lot of people have to work together.people have to work together.
And that means they have to speak…And that means they have to speak…
To make plans and strategies work, a lot of To make plans and strategies work, a lot of people have to work together.people have to work together.
And that means they have to speak…And that means they have to speak…
The same The same language!language!
The same The same language!language!
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
The Language of Marketing & AdvertisingThe Language of Marketing & Advertising The Language of Marketing & AdvertisingThe Language of Marketing & Advertising
Original conceptsOriginal concepts came from came from militarymilitary Now the business of marketing has its Now the business of marketing has its
ownown intellectual infrastructure intellectual infrastructure - a way of - a way of thinking and a way of talkingthinking and a way of talking
Understanding Understanding the the specific meaningsspecific meanings of of key key wordswords and and concepts concepts isis criticalcritical
Yes, it will be on the test!Yes, it will be on the test!
Original conceptsOriginal concepts came from came from militarymilitary Now the business of marketing has its Now the business of marketing has its
ownown intellectual infrastructure intellectual infrastructure - a way of - a way of thinking and a way of talkingthinking and a way of talking
Understanding Understanding the the specific meaningsspecific meanings of of key key wordswords and and concepts concepts isis criticalcritical
Yes, it will be on the test!Yes, it will be on the test!
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
Mission: Mission: Overall goals & values Overall goals & values your “reason for being”your “reason for being”
Objective: Objective: WhatWhat you want to accomplish you want to accomplish.. Strategy: Strategy: HowHow you are going to do it. you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be
specific action that helps meet strategic specific action that helps meet strategic goals - tactics should be goals - tactics should be on strategy.on strategy.))
Mission: Mission: Overall goals & values Overall goals & values your “reason for being”your “reason for being”
Objective: Objective: WhatWhat you want to accomplish you want to accomplish.. Strategy: Strategy: HowHow you are going to do it. you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be
specific action that helps meet strategic specific action that helps meet strategic goals - tactics should be goals - tactics should be on strategy.on strategy.))
Remember, Remember, objectives first, then objectives first, then strategy. (If you don’t know where strategy. (If you don’t know where you’re going, any road will take you you’re going, any road will take you there.)there.)
Remember, Remember, objectives first, then objectives first, then strategy. (If you don’t know where strategy. (If you don’t know where you’re going, any road will take you you’re going, any road will take you there.)there.)
Remember Remember the acronym the acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics
Remember Remember the acronym the acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
Mission: Mission: Overall goals & values Overall goals & values your “reason for being”your “reason for being”
Objective: Objective: What you want to accomplishWhat you want to accomplish.. Strategy: Strategy: How you are going to do it.How you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be
specific action that helps meet strategic specific action that helps meet strategic goals - tactics should be goals - tactics should be on strategy.on strategy.))
Mission: Mission: Overall goals & values Overall goals & values your “reason for being”your “reason for being”
Objective: Objective: What you want to accomplishWhat you want to accomplish.. Strategy: Strategy: How you are going to do it.How you are going to do it. Tactic: Tactic: Specific action. (Should be Specific action. (Should be
specific action that helps meet strategic specific action that helps meet strategic goals - tactics should be goals - tactics should be on strategy.on strategy.))
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
The Value Ladder
Consumer Benefit Product Benefit
Feature Attribute
Benefit
Value
The Value Ladder
Kids like it
Easy to serve
E-Z Open glass jar
Good food for my family
“I’m a good mom”
Apple sauce is made from apples
“Laddering”
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
Some More Important Words…Some More Important Words… Some More Important Words…Some More Important Words… Target audience - Target audience - person or group to person or group to
whom advertising is directedwhom advertising is directed Primary target - Primary target - the target audiencethe target audience Secondary target - Secondary target - usually, the tradeusually, the trade
Demographics - Demographics - statistical description of statistical description of target audiencetarget audience
Psychographics - Psychographics - psychological traits of psychological traits of target audiencetarget audience
Target audience - Target audience - person or group to person or group to whom advertising is directedwhom advertising is directed Primary target - Primary target - the target audiencethe target audience Secondary target - Secondary target - usually, the tradeusually, the trade
Demographics - Demographics - statistical description of statistical description of target audiencetarget audience
Psychographics - Psychographics - psychological traits of psychological traits of target audiencetarget audience
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
Some More Important Words…Some More Important Words… Some More Important Words…Some More Important Words… Sales Promotion - Sales Promotion - use of incentives (a small use of incentives (a small
bribe) to develop or stimulate salesbribe) to develop or stimulate sales Public Relations (PR)Public Relations (PR) - publicity through - publicity through
non-paid medianon-paid media Publics - Publics - a PR version of target audience a PR version of target audience
Situation Analysis - Situation Analysis - beginning section of plan beginning section of plan where current situation is evaluated where current situation is evaluated
““SWOT” Analysis - SWOT” Analysis - Strengths, Weaknesses, Strengths, Weaknesses, Opportunities, and ThreatsOpportunities, and Threats
Sales Promotion - Sales Promotion - use of incentives (a small use of incentives (a small bribe) to develop or stimulate salesbribe) to develop or stimulate sales
Public Relations (PR)Public Relations (PR) - publicity through - publicity through non-paid medianon-paid media Publics - Publics - a PR version of target audience a PR version of target audience
Situation Analysis - Situation Analysis - beginning section of plan beginning section of plan where current situation is evaluated where current situation is evaluated
““SWOT” Analysis - SWOT” Analysis - Strengths, Weaknesses, Strengths, Weaknesses, Opportunities, and ThreatsOpportunities, and Threats
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
Some Important Media Words…Some Important Media Words… Some Important Media Words…Some Important Media Words… Reach - Reach - percentage of the audience exposed percentage of the audience exposed
to an advertising messageto an advertising message FrequencyFrequency - average number of times - average number of times
audience has had the opportunity to see the audience has had the opportunity to see the messagemessage
GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the - the sum of the ratings points (a point is one percent of the ratings points (a point is one percent of the audience)audience)
TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset, - this is a subset, measuring rating points for the target groupmeasuring rating points for the target group
Reach - Reach - percentage of the audience exposed percentage of the audience exposed to an advertising messageto an advertising message
FrequencyFrequency - average number of times - average number of times audience has had the opportunity to see the audience has had the opportunity to see the messagemessage
GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the - the sum of the ratings points (a point is one percent of the ratings points (a point is one percent of the audience)audience)
TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset, - this is a subset, measuring rating points for the target groupmeasuring rating points for the target group
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary:
Some More Important Media Words…Some More Important Media Words… Some More Important Media Words…Some More Important Media Words… CPM (Cost per thousand) - CPM (Cost per thousand) - how much it costs how much it costs
to reach a thousand people (the “M” is the to reach a thousand people (the “M” is the Roman numeral for a thousand)Roman numeral for a thousand)
CPP (Cost per point)CPP (Cost per point) - how much it costs to - how much it costs to buy a “point” of the broadcast audiencebuy a “point” of the broadcast audience
ShareShare - percentage of an audience tuned to a - percentage of an audience tuned to a specific stationspecific station
CPM (Cost per thousand) - CPM (Cost per thousand) - how much it costs how much it costs to reach a thousand people (the “M” is the to reach a thousand people (the “M” is the Roman numeral for a thousand)Roman numeral for a thousand)
CPP (Cost per point)CPP (Cost per point) - how much it costs to - how much it costs to buy a “point” of the broadcast audiencebuy a “point” of the broadcast audience
ShareShare - percentage of an audience tuned to a - percentage of an audience tuned to a specific stationspecific station
OK, now that we know how to talk about OK, now that we know how to talk about advertising, let’s talk about advertising, let’s talk about how it workshow it works…
OK, now that we know how to talk about OK, now that we know how to talk about advertising, let’s talk about advertising, let’s talk about how it workshow it works…
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Let’s talk aboutLet’s talk about how advertising how advertising
works. works. Next, we’ll cover...Next, we’ll cover...
Let’s talk aboutLet’s talk about how advertising how advertising works. works. Next, we’ll cover...Next, we’ll cover...
Some things we know aboutSome things we know about people people Some things we know aboutSome things we know about
advertising messagesadvertising messages The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model ““AIDA” AIDA”
Some things we know aboutSome things we know about people people Some things we know aboutSome things we know about
advertising messagesadvertising messages The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model ““AIDA” AIDA”
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Some things we know aboutSome things we know about people. people. Some things we know aboutSome things we know about people. people. ““People read what interests them, People read what interests them,
sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage) People are strategicPeople are strategic - they look out for - they look out for
their own best interests.their own best interests. People arePeople are bombarded with messages bombarded with messages
A key concern is getting through clutterA key concern is getting through clutter People (and advertising) work from People (and advertising) work from
bothboth logic logic and and emotion emotion
““People read what interests them, People read what interests them, sometimes it’s an ad.”sometimes it’s an ad.” (Gossage) (Gossage)
People are strategicPeople are strategic - they look out for - they look out for their own best interests.their own best interests.
People arePeople are bombarded with messages bombarded with messages A key concern is getting through clutterA key concern is getting through clutter
People (and advertising) work from People (and advertising) work from bothboth logic logic and and emotion emotion
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works Some things we know aboutSome things we know about
AdvertisingAdvertising
Some things we know aboutSome things we know about AdvertisingAdvertising
BrandingBranding and and Advertising Advertising Branding Branding = overall brand equity building= overall brand equity building Advertising Advertising = specific messages and goals= specific messages and goals
Advertising Advertising contributes tocontributes to Branding Branding Advertising Advertising is concerned with: is concerned with:
The Advertising MessageThe Advertising Message Media PlanningMedia Planning and and PlacementPlacement
BrandingBranding and and Advertising Advertising Branding Branding = overall brand equity building= overall brand equity building Advertising Advertising = specific messages and goals= specific messages and goals
Advertising Advertising contributes tocontributes to Branding Branding Advertising Advertising is concerned with: is concerned with:
The Advertising MessageThe Advertising Message Media PlanningMedia Planning and and PlacementPlacement
AnAn Advertising Communication Model Advertising Communication Model AnAn Advertising Communication Model Advertising Communication Model
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works
Feedback
MESSAGE
Advertising Communication Model
AdvertiserSender(Encoder)
AudienceReceiver
(Decoder)
Note it isNote it is more difficult for the audience to more difficult for the audience to communicate back communicate back to the advertiser.to the advertiser. Feedback Feedback is one purpose ofis one purpose of Market Research Market Research
Note it isNote it is more difficult for the audience to more difficult for the audience to communicate back communicate back to the advertiser.to the advertiser. Feedback Feedback is one purpose ofis one purpose of Market Research Market Research
Some things we know aboutSome things we know about AdvertisingAdvertising
Some things we know aboutSome things we know about AdvertisingAdvertising
Deciding the Advertising Budget (how much should a company spend?)
No Standard Formula or Norm Varies from industry to industry Varies from company to company Varies from company to company within same
industry Varies within same company over time
General Practices in Budgeting
Competitive Parity (Competitor Standards) Affordability (Small Firms) Fixed Percentage of Turnover (1-2% of
turnover; ignores varying requirements of advertising effort at various stages of PLC)
Based on Functions to be performed
Advertising Objectives are Pinpointed Their role in achieving the overall marketing
objectives is decided Advertising appropriations are decided on a
market to market, product to product and brand to brand basis
Regression equation The regression equation deals with the following variables:
The unknown parameters denoted as β. This may be a scalar or a vector of length k. The independent variables, X. The dependent variable, Y.
Regression equation is a function of variables X and β.
Y = f (X, β) The user of regression analysis must make an intelligent guess about this function. Sometimes the form of
this function is known, sometimes he or she must apply a trial and error process. Assume now that the vector of unknown parameters, β is of length k. In order to perform a regression
analysis the user must provide information about the dependent variable Y: If the user performs the measurement N times, where N < k, regression analysis cannot be performed:
there is not provided enough information to do so. If the user performs N independent measurements, where N = k, then the problem reduces to solving a
set of N equations with N unknowns β. If, on the other hand, the user provides results of N independent measurements, where N > k, regression
analysis can be performed. Such a system is also called an overdetermined system;
Regression coefficient - when the regression line is linear (y = ax + b) the regression coefficient is the constant (a) that represents the rate of change of one variable (y) as a function of changes in the other (x); it is the slope of the regression line
Regression Analysis Based on historical data Time Series Data: Records of past advertising expenditures
and sales over time Cross Sectional Data: Records of advertising expenditure
and sales for a specific period over different markets Most firms using Regression Analysis go for Time Series Data The aim is to predict dependent variable-sale or market
share The advertising expenditure level would be one of
independent variables. The regression coefficient corresponding to the advertising
variable serves as a measure of the short term response to advertising. it is the slope of the regression line
The Adaptive Control Model
The model recognizes that the budget decisions need updating because the relationship between the advertising and sales changes over time with changes in market conditions.
This model starts with a sales response curve and locates an optimal level of ad expenditure.
The firm will now experiment with non optimal levels in select test markets. This is done to get more knowledge about the sales response curve set originally.
The new information therefore coming out of experimental marketing is added to the sales response function for arriving at current optimal advertising expenditure rate.
The Compromise
A “compromise budget” is arrived at after considering the basic questions:
What is the audience to be reached by advertising? What is its size, location etc? What are the media available for delivering the advertising
message? Of the available media which media or media combination
are likely to most cost effective? What are the features of the proposed campaign? Does the
campaign involve single release of an advertisement or repeat releases? What is the releases proposed?
Therefore, the Advertising Budget is a function of: Advertising Objectives, Media Decisions and Copy Decisions
Deciding the Copy/Layout “Copy”:
Written Matter Pictures Labels Logo Design
Copy is synonymous with layout Copy development has become the task of professional
advertising agencies; however copy development becomes successful only when
there is close interaction between the advertiser and the agency
Main Steps in Copy Development
Facts Finding Stage
What is the central issue to be tackled? What is the issue to which the total campaign has to
address itself? What are the overall communication objectives? What is the specific communication objective of the
proposed campaign?
Advertiser and the agency have to work out literally together The agency becomes an insider as far as the advertiser is
concerned. The agency gathers and analyses all pertinent data to come to
grip with the problem and to decide the course to be taken
Idea Finding Stage Tentative ideas are developed under different “idea heads.” They are further processed, developed and screened. The less promising ones are eliminated. To develop ideas different routes are adopted. Interviewing a selected
sample of target audience is a route normally taken for eliciting ideas. Sometimes the agencies also attempt to focus on group interviewing
and brainstorming. All processes are aids to get access to some creative ideas on which
the ad man can work further. He has to further develop the theme and total advertisement story.
He has to decide: kind of source for conveying message, frame message, its style and structure.
He normally the ad man/agency comes up with a number of copy alternatives and places them before the advertiser.
The copies are normally tested in selected segments of market before final decision on choice of copy is made.
The Main elements of a copy Message
Message Structure Message Sidedness (One side argument or two side argument) Order of Presentation Climax Order (Strong points are placed at the end-applies to high interest
material); Anti-Climax (Strong points placed at the beginning-applies to low interest material); Pyramidal Order (important points presented at the middle-effect is least persuasive)
Stating Conclusion in a Message (Should there be an explicit conclusion? It is preferable to leave something out of the message for the audience to guess)
Message Appeal Product oriented appeals
Physical Features oriented appeal Function oriented appeal Brand to Brand comparison appeal
Consumer oriented appeals Consumer Oriented appeal (Attitude, Class, Lifestyle) Appeals evoking pleasant sensations and moods Appeals evoking sense of luxury and distinctiveness Humor appeals Fear appeal
Source The Credibility of the Source Likeability/Attractiveness of the Source The Source’s approach to the views and
Disposition of the audience
The Main elements of a copy
Snapshots
Source tone: soothing, authoritative, upbeat; familiarity or lack of it.
Color: Blue-Cold, used to create distance, blue skies. Red-Intense. Orange (Warm). Black (Mysterious, Sinister), Purple (Luxury). Colors can be treated as metaphors for nature: green grass, brown earth, red blood and passion
Serif Old Roman Style: Tradition and Authority Times, Century Schoolbook (Transitional),
Media Selection Deciding on:
Reach (% of people in the target market exposed to an ad campaign during a given period)
Frequency (the no. of times the average person is exposed to an advertising message in a given period)
Media Impact (qualitative value of a message exposure through a given medium) Eg. Radio Vs TV
More the reach, frequency and media impact advertiser seeks the higher the advertising budget will have to be.
Choosing Among Major Media Types
Profiles of Major Media Types
MEDIUM ADVANTAGES LIMITATIONSNewspapers Flexibility, Timeliness,
Good Local Market; Broad Acceptance; High Believability
Short Life; Poor Reproduction Quality
Television Combines sight, sound, and motion; appealing to senses; high attention; high reach
High absolute cost; less audience selectivity
Direct Mail Audience Selectivity, Flexibility; No Competition; Personalization
Relatively High Cost; “Junk Mail” Image
Radio Mass Use; high geographic and demographic selectivity; low cost
Audio Presentation only; lower attention than television; non standardized rate structures; fleeting exposure
Magazines High geographic and demographic selectivity; credibility and prestige; high quality production; long life
Long ad purchase lead time; some waster circulation; no guarantee of position
Outdoor Flexibility; high repeat exposure; low cost; low competition
No audience selectivity; creative limitations
Selecting Specific Media Vehicles (Specific Magazines, Television Shows, Radio Programmes)
Deciding on Media Timing (Scheduling the advertising over the course of a year)
Advertising EvaluationMeasuring the communication effect of an ad-copy testing-tells whether the ad
is communicating well.
Methods of Advertising Pretesting: Direct Rating (Exposes to consumer panel to alternative ads and asks
them to rate the ads) Portfolio Tests (Consumers view or listen to a portfolio of an
advertisements taking as much as time as they need. They are then asked to recall all the ads and their content, aided or unaided by the interviewer. )
Laboratory Tests (Physiological Reactions are measured: heartbeat, B P, pupil dilation, perspiration. These help measure ad’s attention getting power but reveal little on belief, attitude or intentions)
Post Testing Methods: Recall Tests (Recall everything they can about the advertisers and
products they saw) Recognition Tests (Eg. Readers of a given issue of a magazine are
asked to point out what they recognize as having seen before)
Measuring the Sales Effect What sales are caused by an ad that increases brand
awareness by 20% brand preference by 10%? Sales effect is harder to measure than communication effect Sales are effected by multiple factors apart from advertising:
product features, price, availability etc.
Methods:
Past Sales comparison with past advertising expenditures Varying Advertising Spends (keeping market areas and
marketing efforts constant)