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Management
Copyright © 2008 - 2012
managementstudyguide.com. All rights
reserved.
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Introduction
Look at the various advertising campaigns used by Coca Cola through different decades.
1880
1900
1920
1960
19...
Introduction
2010
2000
1980
1960
1920
1900
1880
Do you notice that the style
and approach of the
campaign has kept on
chan...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
History of Advertising
In the olden days, there
were three forms of
advertising that were used
prior to the time advent of...
History of Advertising
Trademarks
Trademarks were used by
various craftsmen. The
craftsmen placed such
individual marks or...
What is Advertising
The word ‘Advertising’ is derived
from the Latin word, ‘Advertrire’
which means “to turn to”.
Thus, ad...
What is Advertising
It is an extremely powerful tool for
communicating to the masses and hence to
potential customers.
It ...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
What is Advertising Management
The process of the complete planning, execution, control and monitoring of
advertising camp...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Formulating
Budgets
Advertising Management Process
The following are the steps of the advertising management process:
Copy...
Steps in Advertising Campaign Management
Steps in
Advertising
Campaign
Management
Review communication market analysis
Cop...
Framework of Advertising Planning and Decision-Making
Marketing Programme
Integrated Marketing Company Plan
Advertising Pl...
Functions of Advertising
Functions of advertising can be divided into two types:
Functions of
Advertising
Primary
Function...
Primary Functions
To increase Sales
To persuade Dealers
To help Dealers
To increase Per capita
use
To increase
receptivene...
Secondary Functions
To encourage salesmen
and lend them moral
support
To furnish information
To impress executives
To impr...
Role of Advertising
Advertising plays several roles and caters to various needs of both the consumer as
well as the manufa...
Role of Advertising
Advertising plays several roles and caters to various needs of both the consumer as
well as the manufa...
Role of Advertising
Advertising plays several roles and caters to various needs of both the consumer as
well as the manufa...
Role of Advertising
Advertising plays several roles and caters to various needs of both the consumer as
well as the manufa...
Role of Advertising
Advertising plays several roles and caters to various needs of both the consumer as
well as the manufa...
Impact of Advertising
There are various impacts that advertising has on different areas. Advertising has an
impact on a co...
Key Advertising Personnel
Client
Marketing
Manager
Traffic
Manager
Creative
Director
Account
Executive
Copyright © 2008 - ...
Key Advertising Personnel
Traffic
Manager
Creative
Director
Creative
Executive
Media
Buyers &
Planners
Copyright © 2008 - ...
Institutions Involved in Field of Advertising
Government
Competition
Control Inst.
Ad Agency
Media
Research Agency
Facilit...
Advertising Objectives
There are several categories of advertising objectives that guide advertising strategy:
What featur...
Developing Advertising Objectives
There are three important considerations to be kept in mind while developing
advertising...
Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross ...
Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross ...
Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross ...
Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross ...
Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross ...
Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross ...
Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross ...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Media Options - Direct Marketing
Direct Marketing aims to reach a highly
targeted group within a specific
geography, with ...
Media Options - Direct Marketing
Disadvantages
• Consumer Avoidance:
Consumer may tend to
throw away the mail
unopened. It...
Media Options - Newspaper
Newspaper is a mass media option used
to reach adults who are above 35 years
of age with a compl...
Media Options - Direct Marketing
Disadvantages
• Cost: It is a bit costlier to
advertise in leading
newspapers that have a...
Media Options - Radio
Radio as a media option is used to reach
a narrow target with frequency to build
awareness.
Copyrigh...
Media Options - Direct Marketing
Disadvantages
• Reach: It is not a suitable
option to reach out to broad
demographics.
• ...
Media Options - Cable
Cable is used to reach narrow target
groups with single exposure in chosen
geography.
Copyright © 20...
Media Options - Direct Marketing
Disadvantages
• Reach: It has a partial
reach. It is not suitable for
rural areas where c...
Media Options - Outdoor Billboard
An outdoor billboard is a mass reach
medium designed to reach adults who
are above 18 ye...
Media Options - Direct Marketing
Disadvantages
• Impact: It is susceptible to
minimal viewing by
consumers and also low
re...
Other Media Considerations
Yellow Pages
• It serves like a search engine
which people look for.
• The display costs of ads...
Media Reach Approaches
There are various approaches that can be used to reach the different segments of the
masses such as...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Left – Right Brain Ads
There are two types of ad development approaches used:
Left Brain
Advertisement
• The “Left brain”
...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Persuasion Process of Advertising
The Persuasion Process of Advertising works through a variety of advertising effects
suc...
Push Technique
The Push Technique is used to push
the product into the market. There
are various methods used for
pushing ...
Pull Technique
The Pull Technique is used to pull
consumers towards product by directly
offering something to the consumer...
Push Versus Pull Techniques
The major difference between the push and pull techniques is the manner in which
the informati...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Strategies for Demand Generation
In the increased consumption
strategy the market dynamics
are such that the sales
increas...
Hierarchy of Effects Model - DAGMAR
Let's take a look at
the various
hierarchical effects
that are achieved
through DAGMAR...
Hierarchy of Effects Model - DAGMAR
Cognitive
Aware
Comprehension & image
Attitude
Action
Unaware
Affective
Behavioral
Cop...
Purpose of DAGMAR
The following are the various purpose of DAGMAR:
Help to
perform the
complete
Selling
function
•
Announc...
Limitations of DAGMAR
There are a few limitations of DAGMAR which are as follows:
Limitations
This model does not help to ...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Types of Advertising
Let’s look at each in detail.
••••
Standard Advertising
Primary & Selective Demand Advertising
Co-Ope...
Standard Advertising
Standard Advertising
The aim of the standard type of advertising is to
persuade consumers to purchase...
Primary & Selective Demand Advertising
Primary & Selective Demand Advertising
Primary demand advertising is designed to st...
Co-Operative Advertising
Co-Operative Advertising
Co-operative advertising promotes products of two or
more firms. The fir...
Social Advertising
Social Advertising
Social advertising is a type of public relations
advertising and as such is usually ...
Manner of Distribution
There are various manners in which the
advertising may be scheduled and
presented the consumers suc...
Budgeting Methods
Objective-and-Task Method
Competitive Parity Method (Match Competitors Method)
Affordability Method
Perc...
Percent-of-Sales Budgeting
Objective-and-Task Method
Competitive Parity Method
(Match Competitors Method)
Affordability Me...
Objective-and-Task Method
Objective-and-Task Method
Competitive Parity Method
(Match Competitors Method)
Affordability Met...
Competitive Parity Method (Match Competitors Method)
Objective-and-Task Method
Competitive Parity Method
(Match Competitor...
Affordability Method
Objective-and-Task Method
Competitive Parity Method
(Match Competitors Method)
Affordability Method
P...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Global Advertising
Advertising has seen a gigantic growth over the decades.
Advertising has gone through five major stages...
Key Characteristics of Global Advertising
The following are some of the key characteristics of global advertising:
High co...
Phases of Global Marketing
The following are the different phases of global marketing:
Market extension
International
adve...
Challenges in Global Advertising
There are various challenges that are faced in global advertising such as:
Foreign-exchan...
Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Man...
Relationship Marketing
Look at the expression given below.
Total
Revenue
Value of
Referrals &
Advertising
Costs
Customer
V...
Key Elements of Relationship Marketing
The following are the key elements of “Relationship Marketing”:
Copyright © 2008 - ...
Key Elements of Relationship Marketing
The following are the key elements of “Relationship Marketing”:
It is important to ...
Key Elements of Relationship Marketing
The following are the key elements of “Relationship Marketing”:
Differentiating the...
Key Elements of Relationship Marketing
The following are the key elements of “Relationship Marketing”:
It is also vital to...
Key Elements of Relationship Marketing
The following are the key elements of “Relationship Marketing”:
A key element of re...
Key Elements of Relationship Marketing
The following are the key elements of “Relationship Marketing”:
Copyright © 2008 - ...
Positioning Process
Market Target
Copyright © 2008 - 2012
managementstudyguide.com. All rights
reserved.
Culture in Advertisement
• •
Culture plays an
important part in
advertising.
It is vital that the
advertisements are in-
s...
Examples of Culture in Advertisement
Thus, we see that understanding the culture of a place is very important to design a
...
Segmentation
Segmentation is a crucial part of the advertising process. Segmentation is the
decision about which consumers...
Steps of Segmentation Process
The following are the steps of the segmentation process:
Group consumers according to
their ...
Bases for Segmentation
Geographic Segmentation
State - region - country - climate
Demographic Segmentation
Age, sex, incom...
Invention of ROI
The advent of ROI instilled a new
confidence in companies to get a
chance to measure the outcome
of the a...
Case Study
H&G Inc. has been a sturdy player
in the field of Switchgears in
Europe for the last five decades. It
is curren...
Summary
In this module you learnt that:
The process of the complete planning, execution, control and monitoring of
adverti...
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Transcript of "Advertisement management"

  1. 1. Advertisement Management Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  2. 2. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  3. 3. Introduction Look at the various advertising campaigns used by Coca Cola through different decades. 1880 1900 1920 1960 1980 2000 2010 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  4. 4. Introduction 2010 2000 1980 1960 1920 1900 1880 Do you notice that the style and approach of the campaign has kept on changing over the years? So, what is advertising? Why does it change? What is advertising management? Let us try to understand more about advertising and its management and gain answer to the above questions. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  5. 5. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  6. 6. History of Advertising In the olden days, there were three forms of advertising that were used prior to the time advent of the printing press. They were: Advertising has long been used since the olden days. However, it was not the same form of advertising as seen today. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  7. 7. History of Advertising Trademarks Trademarks were used by various craftsmen. The craftsmen placed such individual marks or trademarks on goods such as pottery, clothes etc. As the popularity of an artisan spread by word of mouth, the buyers used to identify and buy products by using the distinctive mark. Signs Signs were placed beside the shop on a wall. Each shop had an inscription on the wall next to entrance. This sign would tell the passerby of the wares or service offered by the shop, whether it sold wine, pottery, bread etc. Town Criers Town criers were also used for advertising. Men would paid to hold placards and to move through the streets to announce to the citizens of important news and other public events. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  8. 8. What is Advertising The word ‘Advertising’ is derived from the Latin word, ‘Advertrire’ which means “to turn to”. Thus, advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  9. 9. What is Advertising It is an extremely powerful tool for communicating to the masses and hence to potential customers. It has proven to be a vital marketing tool to help sell goods, services, images and ideas by using channels of information and persuasion. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  10. 10. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  11. 11. What is Advertising Management The process of the complete planning, execution, control and monitoring of advertising campaign is known as advertising management. Thus, advertising management involves: Planning Decision- making Control Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  12. 12. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  13. 13. Formulating Budgets Advertising Management Process The following are the steps of the advertising management process: Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  14. 14. Steps in Advertising Campaign Management Steps in Advertising Campaign Management Review communication market analysis Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  15. 15. Framework of Advertising Planning and Decision-Making Marketing Programme Integrated Marketing Company Plan Advertising Plan Implementation Situation Analysis Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  16. 16. Functions of Advertising Functions of advertising can be divided into two types: Functions of Advertising Primary Functions Secondary Functions Let’s look at each in detail. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  17. 17. Primary Functions To increase Sales To persuade Dealers To help Dealers To increase Per capita use To increase receptiveness of new product or model To provide insurance for manufacturer’s business To build confidence in Quality To eliminate seasonal fluctuations Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  18. 18. Secondary Functions To encourage salesmen and lend them moral support To furnish information To impress executives To impress workers To provide a feeling of security Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  19. 19. Role of Advertising Advertising plays several roles and caters to various needs of both the consumer as well as the manufacturer. Some of the roles that advertising fulfils are: Role of Advertising Let’s look at each in detail. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  20. 20. Role of Advertising Advertising plays several roles and caters to various needs of both the consumer as well as the manufacturer. Some of the roles that advertising fulfils are: Role of Advertising Let’s look at each in detail. Informing • Inform the market about a new product • Suggest new uses for a product • Inform the market of a price change • Explain how the product works • Describe available services • Correct false impressions • Reduce buyers’ fears • Build company image • Increase consumer awareness • Create positive brand images • Increase demand for existing brandsCopyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  21. 21. Role of Advertising Advertising plays several roles and caters to various needs of both the consumer as well as the manufacturer. Some of the roles that advertising fulfils are: Role of Advertising Let’s look at each in detail. Persuading • Help to build brand preference • Encourage switching to your brand • Change buyers’ perception of product attributes • Persuade buyers to purchase now • Persuade buyers to be open to a sales call • Persuade customers to try advertised products and services Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  22. 22. Role of Advertising Advertising plays several roles and caters to various needs of both the consumer as well as the manufacturer. Some of the roles that advertising fulfils are: Role of Advertising Let’s look at each in detail. Reminding • Remind buyers about the future need of the product • Remind buyers where to buy it • Keep it alive in the buyers’ mind during off seasons • Keeps a company’s brand fresh in the consumer’s memory Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  23. 23. Role of Advertising Advertising plays several roles and caters to various needs of both the consumer as well as the manufacturer. Some of the roles that advertising fulfils are: Role of Advertising Let’s look at each in detail. Assisting Other Company Efforts • Acts as an integral and important aspect of the marketing communications strategy • Facilitates other company efforts in the marketing communications process Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  24. 24. Impact of Advertising There are various impacts that advertising has on different areas. Advertising has an impact on a country’s economy, society, culture, and political system. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  25. 25. Key Advertising Personnel Client Marketing Manager Traffic Manager Creative Director Account Executive Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  26. 26. Key Advertising Personnel Traffic Manager Creative Director Creative Executive Media Buyers & Planners Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  27. 27. Institutions Involved in Field of Advertising Government Competition Control Inst. Ad Agency Media Research Agency Facilitating Inst. Advertiser Market / Consumer Behavior Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  28. 28. Advertising Objectives There are several categories of advertising objectives that guide advertising strategy: What features and benefits should to be emphasized? What emotions to be evoked in the consumer for the product? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  29. 29. Developing Advertising Objectives There are three important considerations to be kept in mind while developing advertising objectives. They are: Behavioral Decisions: These are the behavioral decisions that the advertising must influence. Target Segment: The target segment considered while developing the advertising objectives. Decision Making Process: Decision making process should occur before the communication to influence behavior. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  30. 30. Defining Media Media can be defined by considering the following aspects: Frequency Cost per Thousand Pulsing Reach Gross Rating Points (GRP) Flighting Let’s look at each in detail. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  31. 31. Defining Media Media can be defined by considering the following aspects: Frequency Cost per Thousand Pulsing Reach Gross Rating Points (GRP) Flighting Reach is the number of different persons or households that are exposed to a particular media schedule at least once during a specified time period. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  32. 32. Defining Media Media can be defined by considering the following aspects: Frequency Cost per Thousand Pulsing Reach Gross Rating Points (GRP) Flighting Frequency is the number of times within the specified time period that an average person or household is exposed to the message. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  33. 33. Defining Media Media can be defined by considering the following aspects: Frequency Cost per Thousand Pulsing Reach Gross Rating Points (GRP) Flighting Gross Rating Points (GRP) is the reach multiplied by the average frequency. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  34. 34. Defining Media Media can be defined by considering the following aspects: Frequency Cost per Thousand Pulsing Reach Gross Rating Points (GRP) Flighting Cost Per Thousand is the calculated cost it takes to reach one thousand people in the target audience from that particular media vehicle. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  35. 35. Defining Media Media can be defined by considering the following aspects: Frequency Cost per Thousand Pulsing Reach Gross Rating Points (GRP) Flighting Flighting refers to advertising for some period, followed by a gap with no advertising, and then followed by a second flight. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  36. 36. Defining Media Media can be defined by considering the following aspects: Frequency Cost per Thousand Pulsing Reach Gross Rating Points (GRP) Flighting Pulsing is a continuous advertising at low weight levels reinforced periodically by waves of heavier activity. Pulsing uses the strength of continuous advertising and flights to create a balanced scheduling strategy. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  37. 37. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  38. 38. Media Options - Direct Marketing Direct Marketing aims to reach a highly targeted group within a specific geography, with optimum cost-efficiently as possible. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  39. 39. Media Options - Direct Marketing Disadvantages • Consumer Avoidance: Consumer may tend to throw away the mail unopened. It has been found that almost half of all mail gets thrown away. • Image: The mailers are generally considered to be “junk mail”. • Timing: It is a time consuming process as it the bulk mail takes 3-10 days to be delivered. • Cost: The mailing costs continue to rise. • Reach: It is difficult to get new customers. Advantages • Targetability: It can target specific groups by location, product usage, interests etc. • Cost: It is a cost-efficient option. The controlling costs are generally very low. • Timing: There are no outside media deadlines. • Versatility: It is versatile as it can convey a personalized and detailed message. • Reach: It has a reach towards all households. • Measurement: Its response rate can be easily measured. • Environment: It provides a tangible environment and hence, saves consumer time. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  40. 40. Media Options - Newspaper Newspaper is a mass media option used to reach adults who are above 35 years of age with a complex, detailed message or to advertise product. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  41. 41. Media Options - Direct Marketing Disadvantages • Cost: It is a bit costlier to advertise in leading newspapers that have a wide reach. • Reach: The reach is limited only to the consumers who may read that particular newspaper. Advantages • Reach: It has a reach of a large mass audience. • Delivery Form: It has a tangible form of delivery. • Prestige: It is a traditional medium with wide acceptance. People tend to consider newspapers to be a credible medium. Its readers are usually people with higher income and education levels. • Versatility: It gives the option to choose the ad size and timing. • Message: The ad can be placed using illustrations as well as a detailed message. • Targetability: It can reach various target customers as there are various newspapers that cater to different sections through different zone editions. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  42. 42. Media Options - Radio Radio as a media option is used to reach a narrow target with frequency to build awareness. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  43. 43. Media Options - Direct Marketing Disadvantages • Reach: It is not a suitable option to reach out to broad demographics. • Clutter: The message may get cluttered due to the presence of too many advertisers. • Senses: The ad can only be audio and there is n accompanying visual to capture consumers’ attention. Advantages • Frequency: It helps to create a top of the mind awareness in the customer’s mind. • Demographically Selective: The target can be selected by combine age or sex and the listening preferences to better target. • Emotional: It helps to create a one-on-one relationship. • Timing: It provides for a flexible message delivery due to the option of 24- hour air time • Cost: The rates are negotiable and prove to be an efficient, low cost option. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  44. 44. Media Options - Cable Cable is used to reach narrow target groups with single exposure in chosen geography. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  45. 45. Media Options - Direct Marketing Disadvantages • Reach: It has a partial reach. It is not suitable for rural areas where cable has not reached. • Clutter: The message may get cluttered due to the presence of too many advertisers and the availability of high air-time. • Measurement: It is difficult to measure due to the limited research in this medium. Advantages • Growing Medium: It is a growing medium with increasing subscribers. • Frequency: It helps to create a top of the mind awareness in the customer’s mind. • Senses: It helps to use both visual and audio in the ads. • Cost: It is a low-cost local medium. • Geographically Selective: It can be customized to target particular market areas. • Demographically Selective: It can be used to target specific consumer groups. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  46. 46. Media Options - Outdoor Billboard An outdoor billboard is a mass reach medium designed to reach adults who are above 18 years of age with a “reminder” or “directional” message. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  47. 47. Media Options - Direct Marketing Disadvantages • Impact: It is susceptible to minimal viewing by consumers and also low recall by consumers. • Targetability: It is not efficient for small, narrow target audiences. Advantages • Cost: It is a low-cost option. • Reach: It has a large mass audience appeal. • Environment: It can be used to advertise using different sizes to demand attention. The billboards are on display 24-hours and 7 days a week. • Frequency: It is highly visible. • Versatility: It can be used to target specific geography with a variety of messages. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  48. 48. Other Media Considerations Yellow Pages • It serves like a search engine which people look for. • The display costs of ads may be quite high. • It has a reduced reliance due to other information search tools such as Internet. Telemarketing • It has a fixed number of outbound call objectives that are decided ahead of time. • It requires the motivation of staff through direct incentives. • It is crucial to train staff on handling rejections. Event Marketing • It helps to build relationships. • There are bleak chances of sales at the time of event. The event itself may generate leads only.Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  49. 49. Media Reach Approaches There are various approaches that can be used to reach the different segments of the masses such as: Controlled Coverage: This uses niche media to reach out to only a specific desired segment of the masses. Example: Trade magazines. Customer Selection: This uses mass media to reach out directly to the masses. Example: Television. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  50. 50. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  51. 51. Left – Right Brain Ads There are two types of ad development approaches used: Left Brain Advertisement • The “Left brain” advertisements are created to appeal to the logical, rational side of brain. • The left side of the brain deals with numbers, letters, words, and concepts Right Brain Advertisement • The“Right- brain” advertisements are created to appeal to the emotional side of brain. • The right side of the brain deals with abstract ideas, images, and feelings.Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  52. 52. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  53. 53. Persuasion Process of Advertising The Persuasion Process of Advertising works through a variety of advertising effects such as follows: All of the above effects helps create a positive attitude towards the brand and leads to a desirable purchase behaviour. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  54. 54. Push Technique The Push Technique is used to push the product into the market. There are various methods used for pushing a product such as use of: • Displays, racks, stand at point of sale • Trade deals, special displays • Dealer premiums, prizes, gifts • Advertising materials, mats, inserts • Push money • Collaterals, catalogs, manuals • Trade shows, conventions, meetingsCopyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  55. 55. Pull Technique The Pull Technique is used to pull consumers towards product by directly offering something to the consumers. There are various methods used for pulling consumers such as use of: • Free Sampling • Free trials • Discount Coupons • Premiums or gifts • Contests, sweepstakes • Price-off deals • Refunds/rebates • Frequency/loyalty programs • Point-of-purchase advertising Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  56. 56. Push Versus Pull Techniques The major difference between the push and pull techniques is the manner in which the information of the product flows. • In the push technique, the information flows downwards from the producer to the consumer. • Whereas in the pull technique, as the consumers are directly pulled the information moves upwards from consumer to the producer as shown in the figure. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  57. 57. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  58. 58. Strategies for Demand Generation In the increased consumption strategy the market dynamics are such that the sales increases due to growth in demand product form expansion. The strategy involves product expansion incorporating new use applications. In the defensive strategy the market dynamics are such that the sales increases due to growth in demand because of old customers staying loyal to the brand and buying the product. The strategy involves recalling important brand features, reinforcing user experience and through consumer promotions. In the offensive strategy the market dynamics are such that the sales increases due to growth in demand because of new customers buying the product. The strategy involves increasing primary demand as well as secondary demand. Offensive Strategy There are various strategies used in advertising for generating demand such as follows: Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  59. 59. Hierarchy of Effects Model - DAGMAR Let's take a look at the various hierarchical effects that are achieved through DAGMAR. DAGMAR is a hierarchy of effects model that is used to achieve an effect in consumers from ‘unawareness’ to ‘action’. Hence, DAGMAR Approach is used as a communication task to be accomplished amongst a defined audience in a specified period of time. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  60. 60. Hierarchy of Effects Model - DAGMAR Cognitive Aware Comprehension & image Attitude Action Unaware Affective Behavioral Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  61. 61. Purpose of DAGMAR The following are the various purpose of DAGMAR: Help to perform the complete Selling function • Announce a special reason for ‘buying now’ • Helps to create awareness of the brand • Help to tie in with some special buying event • To create brand image and remind people to buy • To help correct false impressions or misinformation • • • • • Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  62. 62. Limitations of DAGMAR There are a few limitations of DAGMAR which are as follows: Limitations This model does not help to measure sales. It only gives a broad outline which does not specify details. Measurement is a problem in this model. There are other factors that may affect goals. The model may not hold good in all situations. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  63. 63. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  64. 64. Types of Advertising Let’s look at each in detail. •••• Standard Advertising Primary & Selective Demand Advertising Co-Operative Advertising Social Advertising Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  65. 65. Standard Advertising Standard Advertising The aim of the standard type of advertising is to persuade consumers to purchase certain products and services. The motive is to create a need and desire for a product in the consumer and then sell the product to him. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  66. 66. Primary & Selective Demand Advertising Primary & Selective Demand Advertising Primary demand advertising is designed to stimulate demand among consumers for a category of product. Examples: silk & products made from silk. Selective demand advertising is designed to stimulate demand for individual brands. Example: silk cloth of a particular company. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  67. 67. Co-Operative Advertising Co-Operative Advertising Co-operative advertising promotes products of two or more firms. The firms whose products are advertised share the cost of advertising. Example: A manufacturer and a few retailers may advertise for a product and share the cost of advertising. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  68. 68. Social Advertising Social Advertising Social advertising is a type of public relations advertising and as such is usually for a non-product and non-profit purposes. The main focus is on some matter of social importance. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  69. 69. Manner of Distribution There are various manners in which the advertising may be scheduled and presented the consumers such as: • Continuous schedule: In a continuous schedule, the advertisement is scheduled to appear continuously in front of the consumer. • Flighting schedule: A Flighting schedule calls for advertising for some period, followed by a gap with no advertising, and then followed by a second flight. • Pulsating schedule: A Pulsating schedule is continuous advertising at low weight levels. Such advertising is reinforced periodically by waves of heavier activity. Pulsating uses a mix of both continuous and flighting schedules and uses the advantages of both to create a balanced scheduling strategy. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  70. 70. Budgeting Methods Objective-and-Task Method Competitive Parity Method (Match Competitors Method) Affordability Method Percent-of-Sales Budgeting There are various methods used for deciding the budget of the advertising. They are: Let’s look at each in detail. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  71. 71. Percent-of-Sales Budgeting Objective-and-Task Method Competitive Parity Method (Match Competitors Method) Affordability Method Percent-of-Sales BudgetingPercent-of-Sales Budgeting In this method, a brand’s advertising budget is set by a company by simply deciding the budget as a fixed percentage of past or anticipated sales volume of the brand. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  72. 72. Objective-and-Task Method Objective-and-Task Method Competitive Parity Method (Match Competitors Method) Affordability Method Percent-of-Sales Budgeting The objective-and-task method is considered to be the most sensible and defendable advertising budgeting method. In this method, it is decided as to what specific role the company expects advertising to play for a brand and the company then sets the budget accordingly. Objective-and-Task Method Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  73. 73. Competitive Parity Method (Match Competitors Method) Objective-and-Task Method Competitive Parity Method (Match Competitors Method) Affordability Method Percent-of-Sales Budgeting In this method the budget for a brand is decided by setting advertising budget by basically following what competitors are doing. Competitive Parity Method (Match Competitors Method) Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  74. 74. Affordability Method Objective-and-Task Method Competitive Parity Method (Match Competitors Method) Affordability Method Percent-of-Sales Budgeting In this method, the budget is decided as only the funds that remain after budgeting for everything else are spent on advertising. This method is generally followed only by the most unsophisticated and impoverished firms. However, in real life it has been found that usually affordability and competitive considerations are always taken into account and influence the budgeting decisions of all companies. Affordability Method Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  75. 75. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  76. 76. Global Advertising Advertising has seen a gigantic growth over the decades. Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. In present day, global advertising is also gaining ground and is claiming as much importance for a brand as its domestic advertising. The approach to global advertising is slightly different from that to domestic advertising. The following are the three primary and fundamentally different approaches to the development of global advertising executions: • Transit ads are used as they can reach a target audience in well defined geographic areas • The use of web-based directories because they offer convenience and speed • The use of event sponsorship to target well-defined audiences Hence, we can see that global marketing forces companies to communicate and think globally.Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  77. 77. Key Characteristics of Global Advertising The following are some of the key characteristics of global advertising: High coordination across markets and Less local autonomy Knowledge is centralized to some extent Global product teams and ad agency Systematic development of inter-market segments Cultural relativity Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  78. 78. Phases of Global Marketing The following are the different phases of global marketing: Market extension International advertising is secondary to domestic advertising. Example: P&G, Polaroid, Whirlpool Multi-domestic International advertising is equivalent to domestic advertising. Example: Ford prior to 1996 Global There is no difference between international advertising and domestic advertising. Example: IBM, Coke, McDonalds Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  79. 79. Challenges in Global Advertising There are various challenges that are faced in global advertising such as: Foreign-exchange Shifting borders Technological pirating Cultural differences Unstable governments and Corruption Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  80. 80. Objective Describe in brief the history of Advertising Explain what is Advertising Management Describe the Advertising Management Process Describe the various media options Differentiate between Left – Right Brain Ads Explain the Persuasion Process of Advertising Explain the various Strategies for Demand Generation Describe the Types of Advertising Explain what is Global Advertising Explain what is Relationship Marketing Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  81. 81. Relationship Marketing Look at the expression given below. Total Revenue Value of Referrals & Advertising Costs Customer Value Hence, we see that for every new customer that a company gets, it has to spend some amount in referrals as well as advertising. It has been found that on an average it costs 5 times more to get a new customer than retain one. So, a marketing strategy that is employed by almost all companies is that of relationship marketing or the strategy of growing relationships with one’s existing customers. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  82. 82. Key Elements of Relationship Marketing The following are the key elements of “Relationship Marketing”: Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  83. 83. Key Elements of Relationship Marketing The following are the key elements of “Relationship Marketing”: It is important to identify your customers. For this purpose, various methods are used such as providing an incentive to customers to identify themselves and provide information. It is important that the company should define for itself as to how it will use the collected information before launching the program. The company can then use the information strategically to increase quality of the relationship such as to increase loyalty, sales or referrals. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  84. 84. Key Elements of Relationship Marketing The following are the key elements of “Relationship Marketing”: Differentiating the customers is as important as identifying them. By differentiating the customers, a company can differentiate the value that a particular customer holds for a brand. It is crucial that a company differentiates between its most profitable customers who provide the highest lifetime value and those with the best growth opportunity who offer the most unrealized future value. It is also vital that the customers should be differentiated on the basis of their needs, desired service level and the preferred contact method.Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  85. 85. Key Elements of Relationship Marketing The following are the key elements of “Relationship Marketing”: It is also vital to make groups and define buckets of similar customers to make tailored action possible. It is important to profile each segment and define key elements to help enhance the relationship such as for more loyalty, more share of wallet, more referrals, more positive word of mouth. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  86. 86. Key Elements of Relationship Marketing The following are the key elements of “Relationship Marketing”: A key element of relationship marketing is to relate to the customer. It is important that a brand should cater to individual needs. A company can build relationships by using its knowledge of the customer to alter the way it treats the customer. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  87. 87. Key Elements of Relationship Marketing The following are the key elements of “Relationship Marketing”: Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  88. 88. Positioning Process Market Target Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  89. 89. Culture in Advertisement • • Culture plays an important part in advertising. It is vital that the advertisements are in- sync with the culture of the place or else they may fail to have the impact that they sought to have on the consumers. Let's take a look at how culture can affect an ad campaigns. • Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  90. 90. Examples of Culture in Advertisement Thus, we see that understanding the culture of a place is very important to design a successful ad campaign that will be effective and appeal to the masses. Pepsi’s “Come alive with the Pepsi generation’ was translated into “Pepsi brings your ancestor’s back from the grave” in China The Coca-Cola name in China was read as “Ke- kou-ke-la” meaning “Bite the was tadpole” later changed to “Ko- kou-ko-le” meaning happiness in the mouth. In Italy, Schweppes Tonic water was translated into Schweppes Toilet water” Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  91. 91. Segmentation Segmentation is a crucial part of the advertising process. Segmentation is the decision about which consumers the advertising should target. The following steps should be performed to decide upon the market segmentation: Identify markets with unfulfilled needs Determine market segmentation Select market to be targeted Position the brand through marketing strategies Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  92. 92. Steps of Segmentation Process The following are the steps of the segmentation process: Group consumers according to their needs. Group marketing actions, usually the products offered, available to the organization. Develop a market/product grid to relate the market segments to the firms’ products and actions. Select the product segments toward which the firm directs its marketing actions. Take marketing actions to reach target segments. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  93. 93. Bases for Segmentation Geographic Segmentation State - region - country - climate Demographic Segmentation Age, sex, income, education, occupation, social class Psychographic Segmentation Activities, Interests & Opinions, Values & Lifestyles, Personality traits Behavioristic Segmentation Usage, loyalties. use occasions Benefit Segmentation Types of specific needs or wants to be satisfied. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  94. 94. Invention of ROI The advent of ROI instilled a new confidence in companies to get a chance to measure the outcome of the advertising money that they had spent. ROI helped companies to actually attach a figure to the impact that their advertising was having on the customers. The invention of “Return On Investment” or “ROI” brought about a new wave in the field of advertising. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  95. 95. Case Study H&G Inc. has been a sturdy player in the field of Switchgears in Europe for the last five decades. It is currently ranked number one in its field in several countries of Europe. Much of its success is attributed to its powerful advertising campaigns. It has been involved in international marketing also but to a very small extent. However, now H&G Inc. plans to reinvent its image and present itself to the US and Asian markets. H&G Inc. faces tough competition from the existing companies in those countries who enjoy a large market share in the field of switchgears of the US and Asian markets. 1. What is the strategy that you think H&G Inc. should employ to reinvent its image? 2. How can H&G Inc. design a powerful advertising campaign that caters solely to the US and Asian markets? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
  96. 96. Summary In this module you learnt that: The process of the complete planning, execution, control and monitoring of advertising campaign is known as advertising management. Advertising has an impact on a country’s economy, society, culture, and political system. The following are the three primary and fundamentally different approaches to the development of global advertising executions: • Transit ads are used as they can reach a target audience in well defined geographic areas • The use of web-based directories because they offer convenience and speed • The use of event sponsorship to target well-defined audiences Segmentation is a crucial part of the advertising process. Segmentation is the decision about which consumers the advertising should target. The following are the steps of the advertising management process: • Advertising Strategy - Setting Objectives, Formulating Budgets, Creating Ad messages & Selecting Ad Media and Vehicles • Strategy Implementation • Assessing Ad Effectiveness Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.
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