ADVERTISING“The means of providing the most persuasive possible selling message to the right prospects at the lowest possible cost".Kotler and Armstrong provide an alternative definition:-"Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor".
Nature of Advertising• A persuasive message.• Carried by a non-personal medium.• Paid for by an identified sponsor.• One way communication.• Supports other promotional efforts.• MESSAGE MEDIUM ADVERTISING
Characteristics of Advertising Advertising AdvertisingCommunication ModeCommunication Mode Indirect and non-personal Indirect and non-personalCommunication ControlCommunication Control Low LowFeedback AmountFeedback Amount Little LittleFeedback SpeedFeedback Speed Delayed DelayedMessage Flow DirectionMessage Flow Direction One-way One-wayMessage Content ControlMessage Content Control Yes YesSponsor Identification Sponsor Identification Yes YesReaching Large AudienceReaching Large Audience Fast FastMessage FlexibilityMessage Flexibility Same message to all audiences Same message to all audiences 6
5 M’s of advertising: MONEYMISSION MESSAGE 5 M’s MEASURE MENT MEDIA
Advertising communication process A manufacturer ,retailer or service organisation. Prepared by an ad agency using artwork, music etc Newspapers, TV, radio, magazines etc. Decoding and adoption of the message depending on the attitudes, values, experiences etc. Specific market audience with geographical, demographical and psychological characteristics.
Advertising Functions Informing Persuading Reminding Adding ValueAssisting Other Company Efforts 9 9
Classification of Advertising • Can classify it by: – The target audience: consumers or businesses – Product/service vs. organization/company – Objective: Primary or selective demand20 - 11
Advertising to Target Audiences • Consumer advertising generally appears in mass media and is directed to end consumers: may be product or institutional in nature. • Business-to-business advertising is often called trade advertising and is directed to a business market.20 - 12
What is Being Advertised? • Product advertising is designed to promote the sale of a specific product or service: – may be direct-action, quick-response direct-action – may be indirect-action over a longer time • Institutional advertising promotes the firm or tries to create a positive image: – may promote customer service – or send a public service message Examples-Reliance and kalbe pharma20 - 13
What are the Objectives? • Primary-demand advertising is intended to stimulate use of a category of products. • Selective-demand advertising is intended to encourage purchase of a particular brand or the products and services of a specific firm.20 - 14
Comparative Advertising• Selective-demand advertising• Involves comparing a product to its competing brand• May be: – Direct, naming competitors outright – Less direct, alluding to competitors (e.g., “leading brand”, “Brand X”) but not naming them20 - 15
Public service advertisingIt is directed at the social welfare ofthe community or nation.
The Advertising Management Process Advertising Strategy • Setting Objectives •Formulating Budgets •Creating Ad messages •Selecting Ad Media and Vehicles Strategy Implementation Assessing Ad Effectiveness 18 18
Advertising Objectives Specify target market WHO Emphasis: the features and benefits to Emphasis be emphasized and the emotions to be evoked WHAT Goals: objectives that need to be Goals accomplished at the present stage in a brand’s life cycle WHERE Which geographic markets need to be emphasized? WHEN What months or seasons are best?How Often How often should the brand be advertised? 19
Budgeting Considerations in Practice• What is the Ad objective?• How much are competitors spending?• How much money is available? 20
Advertising Media Traditional Traditional Electronic Electronic Advertising Media Advertising Media Advertising Media Advertising Media Television Internet Radio Electronic mail Newspapers Interactive video Magazines Books Direct mail Billboards Transit cards 23
Evaluating Advertising Effectiveness and Return on Advertising InvestmentCommunication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runsSales and profit effects compare past sales and profits with past expenditures or through experiments
The STP Marketing Process (segmenting ,Targeting, Positioning)1. Break the broad market into smaller, more homogenous segments2. Specifically target discrete market segments3. Position the brand to appeal to the targeted segments PPT 6-5 25
Promotional Mix Combination of promotion tools used to reach the target market and fulfill Advertising the organization’sPublic Relations overall goals.Sales PromotionPersonal Selling Word-of-Mouth 26
Public Relations The marketing function that evaluates public attitudes,identifies areas within the organization that the public may beinterested in, and executes a program of action to earn public understanding and acceptance.
Personal Selling Planned presentation toone or more prospective buyers for the purpose of making a sale.
What advertising can do• Remind the target audience to buy.• Announce a new brand or service.• Create brand awareness.• Stimulate impulse buying.• Increase confidence in a brand or a company.• Fight competition.• Change attitudes.
India’s 10 leading advertising/PR companies of India: Ogilvy & mather J walter Thompson India Mudra Communivation Pvt Ltd FCB Ulka advertising Ltd. Rediffusion- DY&R Erickson India Ltd. RK Swamy/BBDO advertising Ltd. Grey worldwide(I) Pvt. Ltd. LEO Burnett India Pvt Ltd. Contract advertising India Ltd.
Conclusion (Key to good advertising)The most important step lies in deciding what advertising should say and to whom it should say . In all there is a need to do is to decide who buys and uses your products and why. In order to spend media dollars wisely, the advertiser must know what they read or watch so that they will see your ads.