Advertising & Sales Promotion


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Advertising & Sales Promotion

  1. 1. ADVERTISING & SALES PROMOTION MANAGEMENT A. ANANDA KUMAR Department of Mgt. Studies Christ College of Engg. & Tech. Puducherry, India. Mobile: +91 99443 42433 E-mail:
  2. 2. UNIT 1 Advertising and Strategic Advertising Decisions Advertising – Origin and Development – Definition and Classification – Planning Framework – Organizing Framework – The Advertiser and Advertising Agency Interface. Setting Advertising Objectives – The Budget Decision – Preparing the Product and Media brief.
  3. 3. MARKETING COMMUNICATION  Marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then in turn expanding this demand.  Companies must also communicate with present and potential stake holders, and the general public. Thus, every company is inevitably cast into the role of communicator and promoter.  For most companies, the question is what to communicate to whom, and how often, especially with the consumer.
  4. 4. MARKETING MIX MARKETING MIX PRODUCT Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns PROMOTION Sales promotion Advertising Personal Selling Public relation/ Publicity PLACE Channels Coverage Assortments Locations Inventory Transport PRICE List price Discounts Allowances Payment period Credit terms Target Market
  5. 5. Sales Promotion Sales promotion is the dissemination or propagation of information in a very broad sense through a wide variety of activities, including free samples, gifts, coupons, point-of-purchase sings and displays, reduction sales, contests, shows and exhibitions, demonstrations etc. In other words, it includes those marketing activities other than personal selling and advertising.
  6. 6. PERSONAL SELLING Personal selling refers to the presentation of goods and services before the customers and convincing or persuading them to buy the products or services. Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and techniques for building personal relationships with another party (e.g., those involved in a purchase decision) that results in both parties obtaining value.
  7. 7. PUBLICITY Publicity is the dissemination of information by personal or non personal means and is not directly paid by the organisation and for which the organisation is not clearly identified as the source. Publicity (a tool used in public relations) is non personal communication, that is typically in the form of a news story, that is transmitted through the mass media. The purpose of publicity is to draw favorable attention to a company and/or its products without having to pay the media for it.
  8. 8. ADVERTISING  American Marketing association has defined advertising as “any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor”.  According to the New Encyclopedia Britanica, “advertising is a form of communication intended to promote the sale of the product or service to influence public opinion, to gain political support or to advance a particular cause”.
  9. 9. ADVERTISING  Advertising is a paid form of communication, although some forms of adveritsing, such as public service announcements (PSAs).  Second, not only is the message paid for, but also the sponsor is identified.  Third, most advertising tries to persuade or influence the consumer to do something. Although in some cases the point of the message is simply to make consumers aware of the product or company.
  10. 10. ADVERTISING  Fourth and fifth, the message is conveyed through many different kinds of mass media reaching a large audience of potential consumers.  Finally, because advertising is a form of mass communication, it is also non-personal.
  11. 11. Salient Features / Phrases of Advertising # Any form # Paid form # Non-Personal # Goods, Services, Ideas # Identified Sponsor # Information # Persuasion # Target Audience
  12. 12. CHARACTERISTICS OF ADVERTISING 1. Advertising is one of the methods of promotion mix. 2. It is a paid mass communication, not aiming at a specific individual. 3. It is a form of publicity, i.e., dissemination of information regarding a product, service or idea. 4. It is salesmanship in writing or printed salesmanship. 5. It is a mass non-personal communication. That is, communication is only through written, spoken or visual means, and not through persons.
  13. 13. Cont…… 6. It is a sponsored publicity or communication i.e., the publicity has been deliberately sponsored, initiated or undertaken by a sponsor. It is paid for by the sponsor. 7. The sponsor of advertisement (i.e., one responsible for it) is usually identified in the advertisement itself. 8. It is undertaken to influence the buying behaviour of the customers. 9. It guides the buyers towards a more satisfactory expenditure of their hard earned money.
  14. 14. ORGIN AND GROWTH OF ADVERTISING Advertising by ‘word’ of mouth is probably the earliest form of advertising because, oral skills were developed well before reading and writing did.  The origin of advertising as a public announcement is traceable to the town crier and the village drummer. These used their lungs to shout out their own or others’ messages.  The messages could relate to government announcement or even to sales of goods on ‘market days’. Then there were signs on shops or drinking houses to indicate the name of the shop owner or of the shop
  15. 15. Cont…… 1. Ancient Times – up to 5th Century 2. 5th to 8th Centuries 3. 9th to 15th Centuries 4. 16th and 17th Centuries 5. 18th and 19th Centuries 6. The 20th Century
  16. 16. 1. Ancient Times – up to 5th Century  The artisans, bakers, shoe-makers, green-grocers and other merchants were eager to exchange their goods for money and advertising came to their timely help.  Selling goods in ancient times involved personal selling abilities.  Merchants needed to identify their places with a symbol that told their trade, and so the shop signs were born.
  17. 17. Cont……  The merchants impressed upon the minds of consumers of the qualities of their wares which was done by the ‘hired criers’ or the ‘barkers’.  Other form of communication was the ‘wall signs’. On the walls of the tall buildings near important gathering places were letter sign advertisements, entertainments, helped the location of taverns and goods for sale.
  18. 18. 2. 5th to 8th Centuries  The period from 475 AD to 800 AD is referred to as ‘Dark Age’.  This is the period that starts with the downfall of Roman Empire and ends with the coronation of Charlemagne.  It was furthered in the form of ‘Voice’. Public barkers equipped with the horns and bells were capable of attracting the attention of consumers.  Advertising was done either by human voice and or by hand executed signs and play cards.
  19. 19. 3. 9th to 15th Centuries  The latter part of the Middle Age was a great and bold leap forward in human civilization and culture.  These men developed a new gimmick of free samples.  Printing originated in China and the oldest book printed was dated 868 AD.  To increase in education was essential to the growth of advertising.  New methods of advertising were now available like printed posters, hand-bills, signs, pamphlets, books and newspapers.
  20. 20. 4. 16th and 17th Centuries  During the 16th century, newspapers were largest among the prints and these newspapers were in the form of news-letters.  The first news-letter was started in 1622 in England. Latter half of the 16th century witnessed newspapers in the form of news-books and were common by the middle of 17th century.  The outstanding features of 17th century were that there were special advertising periodicals.  By the end of 17th century, newspapers were well established in England undertaking advertising on a regular basis.
  21. 21. 5. 18th and 19th Centuries  The age old principle of ‘Caveat Emptor’ ruled the transactions and hence the advertising that was resorted to was untruthful.  That is why, the people did not believe totally in the advertisement message given.  Buyers were to be cautious and diligent in buying the goods so advertised.  The 19th century was marked by a new trend of brand advertising. Magazines both weeklies and monthlies started catching the imagination of the people by popularising the brands.
  22. 22. 6. The 20th Century  The current century is marked with the advent of two fascinating media of communication namely, radio and television.  Americans have the credit of having these first. Radio ruled the scene from 1922 to 1947 and 1948 onwards, television took over.  Television could beat radio advertising with the visual effects.  The outdoor advertising has its own developments such as travelling displays, sky-writing, painted displays.
  23. 23. CLASSIFICATION AND TYPES OF ADVERTISING 1. Product – Related Advertising A. Pioneering Advertising B. Competitive Advertising C. Retentive Advertising 2. Public Service Advertising 3. Functional Classification A. Advertising Based on Demand Influence Level. i. Primary Demand (Stimulation) ii. Selective Demand (Stimulation) B. Institutional Advertising C. Product Advertising
  24. 24. i. Informative Product Advertising ii. Persuasive Product Advertising iii. Reminder-Oriented Product Advertising 4. Advertising based on Product Life Cycle A. Consumer Advertising B. Industrial Advertising 5. Trade Advertising A. Retail Advertising B. Wholesale Advertising 6. Advertising Based on Area of operation A. National advertising B. Local advertising C. Regional advertising 7. Advertising According to Medium Utilized
  25. 25. i. Pioneering Advertising This type of advertising is used in the introductory stages in the life cycle of a product. It is concerned with developing a “primary” demand. It conveys information about, and selling a product category rather than a specific brand.
  26. 26. ii. Competitive Advertising: It is useful when the product has reached the market- growth and especially the market-maturity stage. It stimulates “selective” demand. It seeks to sell a specific brand rather than a general product category.
  27. 27. iii. Retentive Advertising: This may be useful when the product has achieved a favourable status in the market – that is, maturity or declining stage. Generally in such times, the advertiser wants to keep his product’s name before the public. A much softer selling approach is used, or only the name may be mentioned in “reminder” type advertising.
  28. 28. 2. Public Service Advertising This is directed at the social welfare of a community or a nation. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. Advertisements on not mixing drinking and driving are a good example of public service advertising. In this type of advertising, the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large.
  29. 29. 3. Functional Classification Advertising may be classified according to the functions which it is intended to fulfill. (i) Advertising may be used to stimulate either the primary demand or the selective demand. (ii) It may promote either the brand or the firm selling that brand. (iii) It may try to cause indirect action or direct action.
  30. 30. i. Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. It is intended to affect the demand for a type of product, and not the brand of that product. Some advertise to stimulate primary demand. When a product is new, primary demand stimulation is appropriate. At this time, the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use.
  31. 31. ii. Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes, Surf detergent powder, or Vimal fabrics. To establish a differential advantage and to acquire an acceptable sort of market, selective demand advertising is attempted. It is not to stimulate the demand for the product or service. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. Competitive advertising stimulates selective demand.
  32. 32. B. Institutional Advertising Institutional Advertising may be formative, Persuasive or reminder oriented in character. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company before the public. It aims at building for a firm a Positive public image in the eyes of shareholders, employees, suppliers, legislators, or the general public. This sells only the name and prestige of the company. This type of advertising is used frequently by large companies whose products are well known. HMT or DCM, for example, does considerable institutional advertising of its name, emphasizing the quality and research behind its products.
  33. 33. C. Product Advertising Most advertising is product advertising, designed to promote the sale or reputation of a particular product or service that the organization sells. The marketer may use such promotion to generate exposure attention, comprehension, attitude change or action for an offering. It deals with the non-personal selling of a particular good or service. It is of three types as follows:- A. Informative Product Advertising B. Persuasive Product Advertising C. Reminder-Oriented Product Advertising
  34. 34. A. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising. Marketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholic beverages are examples. Baring a few, all these products are all package goods that the consumer will often buy during the year. There is a heavy competition among the advertisers to establish an advantage for their particular brand.
  35. 35. B. Industrial Advertising Industrial executives have little confidence in advertising. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like, the derived demand, etc. The objectives vary according to the firm and the situation.,
  36. 36. A. Retail Advertising This may be defined as “covering all advertising by the stores that sell goods directly to the consuming public. It includes, also advertising by establishments that sell services to the public, such as beauty shops, petrol pumps and banks.”
  37. 37. B. Wholesale Advertising Wholesalers are, generally, not advertising minded, either for themselves or for their suppliers. They would benefit from adopting some of the image- making techniques used by retailers – the need for developing an overall promotional strategy. They also need to make a greater use of supplier promotion materials and programmes in a way advantageous to them.
  38. 38. A. National advertising It is practiced by many firms in our country. It encourages the consumer to buy their product wherever they are sold. Most national advertisements concentrate on the overall image and attraction of the product. The famous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCO
  39. 39. B. Regional advertising It is geographical alternative for organizations. Regional advertising is placing ads of any media within a specific geographic location to influence decision in one locality. A region may be defined in different geographic sizes or terms such as city, state, country, or continent.
  40. 40. C. Local advertising It is generally done by retailers rather than manufacturers. These advertisements save the customer time and money by passing along specific information about products, prices, location, and so on. Retailer advertisements usually provide specific goods sales during weekends in various sectors.
  41. 41. 7. Advertising According to Medium The most common classification of advertising is by the medium used. For example: TV, radio, magazine, outdoor, business periodical, newspaper and direct mail advertising.
  42. 42. ADVERTISING PLANNING FRAMEWORK  The advertising management is mainly concerned with planning and decision making. The advertising manager will be involved in the development, implementation, and overall management of an advertising plan.  The development of an advertising plan essentially requires the generation and specification of alternatives.
  43. 43. Planning Framework Advertising planning and decision making depends on internal and external factors. Internal factors are situation analysis, the marketing program, and the advertising plan. The three legs of advertising planning concern are the  Objective setting and target market identification,  Message strategy and tactics, and  Media strategy and tactics.
  44. 44. Internal factors 1. Situation Analysis: It involves an analysis of all important factors operating in a particular situation. This means that new research studies will be undertaken on company history and experience. 2. Consumer and Market Analysis: Situation analysis begins by looking at the aggregate market for the product, service, or cause being advertised, the size of the market, its growth rate, seasonality, geographical distribution.
  45. 45. Cont.. # Nature of demand # Extent of demand # Name of competition # Environmental climate # Stage of product life cycle # Financial resources of the firm
  46. 46. Cont.. 3. Competitive Analysis: Advertising planning and decision making are affected by competition and the competitive situation facing the advertiser. Competition is such a pervasive factor that it will occur as a consideration in all phases of the advertising planning and decision making process.
  47. 47. External Factors The external factors in the planning framework are environmental, social and legal considerations. To a considerable extent, these exist as constraints on the development of an advertising plan and decision making. In developing specific advertisement, there are certain legal constraints that must be considered. Deceptive advertising is forbidden by law.
  48. 48. Advertiser and the Advertising Agency interface From a situation analysis point of view, the advertiser needs to know what kinds of facilitating agencies exist and the nature of the services they provide. From a planning point of view much local advertising is done without the services of an advertising agency or a research supplier. On the other hand, a national advertiser may have under contract many different agencies and research suppliers, each serving one or more brands in a product line. Many advertising decisions involve choosing facilitating agency alternatives. What advertising agency should be chosen? What media should be used? What copy test supplier will be best for our particular situation?
  49. 49. Advertising Industry The advertising industry consists of three principal groups: (a) Sponsors; (b) Media ; and (c) Advertising agencies or advertising departments.
  51. 51. What is an Advertising Agency? An Advertising agency is an independent firm formed for the purpose of rendering specialized services in advertising, such as preparing copy and layouts for advertisement and getting the advertisement out through suitable media. It also undertakes performing services such as conducting market research, preparing sales- promotional materials, counselling on public relations, preparing and distributing public relations materials and message.
  52. 52. Advertising Agency According to American Advertising Agencies Association (A. A. A. A.) an advertising agency is: a. An independent business organisation, b. Composed of creative and business people, c. Who develop, prepare and place advertising on advertising media, d. For sellers seeking to find customers for their goods and services.
  53. 53. History of Advertising Agencies 1. Period of Early Growth (1841-1865) 2. The Wholesaling Period (1865-1880) 3. Semi-Service Period (1880-1917) 4. Service Period (1917-1988)
  54. 54. Advertising Agencies in India # Rajiv Menon Productions (Horlicks, Fanta) # J.S. Films (Preethi Chef Pro Mixie, Fair&Lovely, Milo) # O&M (TVSE Printers, Chik Shampoo, Meera, Sify, Nippo) # R.K. Swamy BBDO Advertising (Tata Indicom) # Rubikon (Prince Jewellery) # TWC (Jeyachandran, Saravana Gold, Pothys, G & H Gold Winner Oil) # Marlia Ads (Aachi Masala Brand, Amman TRY) # Maitri Ads (Reliance Communication)
  55. 55. Selecting an Agency While selecting an advertising agency, the importance of compatibility should be borne in mind. An agency takes a long time to grasp the problems and accumulate the facts that are necessary for the smooth functioning of a client. Though this investment period is long, it pays rich dividends. Therefore, an agency should not be frequently changed. Here are some points that can help the advertiser to:
  56. 56. (i) Choose an agency ;  The agency should be able to think independently on various problems.  The agency should have experience in selling goods and ideas. It should be able to bring in more results than anticipated.  The company should be financially sound and should be able to cover both local and national advertising campaigns.  The size of the agency should not be seriously taken into account. A big agency is not necessarily a better than a small agency.
  57. 57. Cont…  The agency should not be one that hesitates to correct the advertiser if it feels that he is wrong. The agency should be able to use both research and brains to solve problems.
  58. 58. Advantage of Using Agencies 1. The marketer gains a number of benefits by employing agencies. An agency generally has an invaluable experience in dealing with various advertising and marketing issues. 2. An agency may employ specialists in the various areas of preparation and implementation of advertising plans and strategies. 3. A related point is that the company can benefit from the agency’s experience with many other products and clients.
  59. 59. Cont.. 4. They bring objective and unbiased viewpoints to the solution of advertising and other marketing problems. 5. The discounts that the media offer to agencies are also available to advertisers. This is a strong stimulus to them to use an agency, for the media cost is not much affected thereby. 6. Another advantage is that agency feels a greater pressure than the company’s own department to produce effective results.
  60. 60. Setting Advertising Objectives Without objectives, it is nearly impossible to guide and control decision making. The challenge today is to bring effective management to the advertising process in such a way as to provide simulation as well as direction to the creative effort. The solution is the meaningful objective. Advertising objectives, like organizational objectives, should be operational. They should be effective communication tools, providing a line between strategic and tactical decisions. A convenient and enticing advertising objective is immediate sales or market share.
  61. 61. ADVERTISING BUDGET  The advertising budget or appropriation is the total amount of money which a marketer allocates for advertising for a specific time period.  The major part of the advertising budget is provided for buying space and time in media.  The expenses incurred for developing and preparing advertisements are included in the advertisement budget. The salaries of advertising staff, commission to agents, research expenses etc. are administrative expenses.
  62. 62. Advertising Budget Allocation by “Rule of Thumb” 1. Profit Maximization 2. Advertising as a Percentage of Sales 3. The Objective and Task Approach 4. Competitive Parity Approach 5. All the Organization can afford approach 6. By Using Judgment
  63. 63. 1. Profit Maximization: The best method for determining advertising expenditure is to identify a relationship between the amount spent on advertising and profits, and to spend that amount of money which maximizes the net profits. Since the effects of advertising may be reflected in future sales too, the advertiser maximizes the present value of all future profits at an appropriate rate.
  64. 64. 2. Advertising as a Percentage of Sales: Advertising Allocation = % ´ Rs. Sales A pre-determined percentage of the firm’s past sales revenue (or projected sales revenue) is allocated to advertising.
  65. 65. 3. The Objective and Task Approach  The most desirable method is the objective and task approach. It is goal oriented. The firm agrees on a set of marketing objectives after intensive market research. The costs of advertising are then calculated.  The organization must define the goals the promotional mix is to accomplish. For example, a 5 per cent increase in market share, or a 10 per cent rise in gross sales, or a 3 per cent addition to net profit, or more likely, a combination of several items.
  66. 66. 4. Competitive Parity Approach This approach ties its budget to the rupees or percentage of sales expended by its competitions. This approach tries to match the competitor’s outlays and meet competition either on absolute or relative basis. It involves an estimate of industry advertising for the period and the allocation of an amount that equal to its market share in the industry.
  67. 67. 5. All the Organization can afford approach It involves the income statement and the balance sheet. It asks how much is available to the firm. The decisions based wholly on them ignore the requirements of the advertising.
  68. 68. 6. By Using Judgment This method relays upon the judgment of experienced managers. Over the years, some of these individuals develop a feel for the market that permits them to arrive at appropriate decisions, given the organization’s objectives and limitations. It is a vital input for the determination of the budget. When the management uses other methods, it should temper them with the judgmental evaluations made by experienced managers. Judgment is subject to error and bias.
  69. 69. Media Brief Each medium has its merits and its handicaps. The suitability and profitability of any one type varies from manufacturer to manufacturer and may vary for a single manufacturer too. Changes are the only rule. The buyers constitute his market; they are to receive his advertising coverage consists of the advertiser’s reaching the maximum number of these buyers include both his current and prospective customers.
  70. 70. Difficulties in Selection of Media Types 1. Audience Measurement 2. Difficulty of Cost Comparisons 3. Reliance on a Particular type of Medium a. Availability b. Selectivity c. Competition
  71. 71. Selection of Individual Media 1. The Advertising Schedule 2. Duplication 3. Frequency 4. Size of advertisement 5. Colour 6. Re-run on Advertisement 7. Timing 8. Positioning
  72. 72. Case Study New Trend in Advertising in India Booming markets and high consumer willingness to spend have made companies spend lavishly on advertising and brand- building. Therefore, the Indian advertising industry is upbeat. Since many corporates are looking at accelerating their businesses at a much higher pace through both organic and inorganic means, the ad spends are expected to move up to address their aggressive pace and pitch. Considering the tremendous bullishness in the market, companies want to spend money on advertising for various reasons. While some of them want to connect with their target audience due to their higher spending abilities, there is a new breed of companies which want to be visible as they have an IPO in the offing. And these companies are typically non-traditional advertisers. They could be even from sectors such as infrastructure which want to advertise because they have plans for IPOs.
  73. 73. New increase in corporate advertising campaigns is also expected, which would contribute substantially to the advertising industry revenues. Aditya Birla Group and the Tata group have already invested in lavish campaigns. The coming months would see more corporate campaigns. New advertising media beyond TV and print – With digital and mobile telephony registering huge growth figures, advertisers would be allocating huge spends to digital advertising this year. It does not mean that digital will eat into the shares of TV and print. Digital spends is still far away from being on par with the print and TV spends for at least another 10 years.
  74. 74. The other segment which is expected to draw considerable attention this year is below-the-line communication, such as out-of-home advertising, public relations and sponsored activities. BTL activities are expected to gain prominence but will not replace the 30- second TVC (TV commercials) in India as yet. The dominance of print and TV will continue for the next few years. However, over the next five years, there will be greater interdependence of media, not disintegration of media. That will be the new phenomenon. Most channels are coming up with methodical approaches to capitalize on revenue from in-program product placements. The contribution of product placement to the overall revenue of the industry is likely to go up by six to nine percent this year.
  75. 75. Non-traditional advertisers-While the FMCG companies have traditionally been the highest spenders, the industry expects to see other categories such as retail, banks, financial products, automobiles and travel and leisure increasing their advertising spends substantially this year. While automobiles, white and brown goods, financial services sector, technology and IT and mobile telephony will clearly be the largest spenders this year, FMCG spends may not go up further as FMCG brands will be investing heavily in distribution and market expansion through outlets in smaller towns where there is a significant consumer boom.
  76. 76. But it is the retail sector which is going to take the cake in terms of ad spends this year. Brand surround will become more important, with customer events offering new ways for brands to connect with consumers. The opening of malls and supermarkets across big and small cities will offer new ways for old brands to connect with consumers. Given the apparent growth in retail, the will be a large focus on engaging customers within the retail premises. Hence, there will be a large focus on research into consumer insights as well as developing programs to capture consumer interest at the store level.
  77. 77. Questions 1. Do you think the increasing independence and control, consumers gain through new technologies like the internet, digital advertising, cell phones will make advertising and product branding less important? Explain. 2. As cable-TV channels continue to proliferate and the TV-viewing audience becomes ever more fragmented, how would you expect the advertising industry to be affected?
  78. 78. UNIT - 2 Copy Decisions – Visualizations of Ad Layout – Elements of Ad Copy and Creation – Principles of Verbal Versus Visual thinkers, Styles and Stages in Advertising Copy Creation – Copy (Pre) – Testing Methods and Measurements.
  79. 79. Advertisement Layout  The layout of an advertisement consists of its overall structure or the way in which the various elements are positioned with regard to one another.  Layout is the arrangement which assigns positions to each unit in the advertisement.  It is a plan, a diagram, a blue-print which differs from the earlier visualizations in that it is more specific, more complete, more polished and sound.  It displays the exact visualisation of what the decided advertisement should contain.
  80. 80. Advertisement Layout  A complete and finalised advertisement is the combination of a number of units such as headline, sub-headlines, text-matter, slogan, identification mark, the white space, decorations and the border including the illustration.  The layout is a visual expression of the ideas of the creator of an advertisement.  The visual composition of an advertisement is the layout. It is the working drawing or the blue-print for an advertisement.
  81. 81. Functions of Layout 1. It organizes all the Elements 2. It brings together Copy writer and the Art director 3. It enables the Advertiser to visualize his future Advertisement 4. It acts as a guide to the copy specialist
  82. 82. Design and Layout The word ‘design’ means an arrangement of the parts in one sense. The other meaning is that it stands for the plan behind the arrangement providing a desired structure. Designing a good layout means arranging the parts of an advertisement to attain certain goals.
  83. 83. Principles of Good Design and Layout 1. Balance 2. Proportion 3. Contrast and Emphasis 4. Eye Movement 5. Unity or Harmony
  84. 84. Elements of a layout 1. Background 9. Name Plate (logo) 2. Border 10. Price 3. Caption 11. Product 4. Coupon 12. Slogan 5. Decoration 13. Space 6. Heading 14. Sub-heading 7. Illustration 15. Text 8. Mascot 16. Trade Mark
  85. 85. CREATIVITY IN ADVERTISING The success of advertising depends to a great extent on the quality of the message or copy of advertisement rather than the money spent on advertising. Most of the advertisers believe that the message in advertisement copy must attract the attention and interest of the consumer if buying is to result. The conventional theory of advertising includes the concept of AIDA (Attention, Interest, Desire and Action).
  86. 86. CREATIVITY IN ADVERTISING An artiste, writer, poet, novelists, play writer takes well known ideas, words and phrases and relates them in a fresh, often brilliant manner while preparing an advertising copy. The advertising copy writer writes with a purpose to achieve client’s objectives to express features or attributes of particular products and services, presented in terms of consumer benefits. Thus advertising messages should present merchandise in ways that interest people in buying.
  87. 87. Activities Comprising Creative Design task Process 1. Advertising objectives 2. Information to creative People 3. Target Audience 4. Copy and Layout Design 5. Credibility or Back-up Claim 6. Copy Layout Tests 7. Allocation to Creative Task 8. Creative Strategy and Tactics
  88. 88. QUALITIES OF ADVERTISEMENT COPY 1. Attention value, 2. Suggestive value, 3. Memorising value, 4. Conviction value, 5. Sentimental appeal value, 6. Education value, 7. Instinctive value,
  89. 89. 1. Attention Value: a. Use of Pictures b. Use of Display Type or Heading c. Boarder etc d. Price Quotation e. Reply Coupons
  90. 90. CLASSIFICATION OF COPY 1. Descriptive Copy 11. Suggestive Copy 2. Scientific Copy 12. Expository Copy 3. Institutional Copy 13. Questioning copy 4. Topical Copy 5. Reason why Copy 6. Human Interest Copy 7. Colloquial copy or Conversational Copy 8. Personality Copy 9. Prestige Copy 10. Educational Copy
  91. 91. 6. Human Interest Copy a. Humorous Copy b. Fear Copy c. Story Copy
  92. 92. Measuring Advertising Effectiveness  All advertising efforts are directed mainly towards the achievement of business, marketing and advertising objectives i.e., to increase the sales turnover and thus to market the maximum profit.  The advertiser spends lakhs of rupees into this advertising activity. In the background of all these efforts, is an attempt to attract the customer towards the product through advertising.
  93. 93. Measuring Advertising Effectiveness  It has achieved the desired results i.e. desired sales profitability or results in terms the change in customer’ behaviour in favour of the company’s product which will naturally, affect the future sale of the product.  In order to measure the effectiveness of advertising copy, two types of tests i.e., pretests and post tests can be undertaken.
  94. 94. Importance of measuring the Effectiveness of Advertising 1. It acts as a Safety measure 2. Provides feed back for remedial measures 3. Avoids possible failure 4. To justify the Investment in Advertising 5. To know the communication Effect 6. Compare two markets
  95. 95. METHODS OF MEASURING ADVERTISING EFFECTIVENESS 1. Direct Measures of Advertising Effectiveness (a) Historical Sales Method (b) Experimental Control 2. Indirect Measures (a) Exposure to Advertisement (b) Attention or Recall of Advertising Message Content (c) Brand Awareness (d) Comprehension (e) Attitude Change (f) Action
  96. 96. Copy Testing Copy testing is a tool involving a procedure where the effectiveness of an advertisement is measured before it appears in its final form, during and after its exposure to the audience to determine whether and to what extent, it has accomplished its assigned task. In this way, the copy testing is a method used to control the effectiveness of future advertising.
  97. 97. It addresses the following questions (a) Will a proposed copy theme be effective at achieving advertising objectives? (b) Does the set of advertisings that makes up an advertising campaign create the Desired interest level and image? And (c) Will an individual advertisement attract the attention of the audience? Copy Testing
  98. 98. Types of Tests 1. Pre-test methods 2. Post-test methods 3. Concurrent methods
  99. 99. 1. Pre-test methods Pre-test method refers to testing the potentiality of a message or copy before printing or broadcasting. It is useful because the concepts in advertising may appear to be simple and effective to the advertiser or advertising to be simple and effective to the advertiser or advertising agency. All the elements in the advertising copy requires careful pre-testing to see that the matter it intends to be conveyed has been really conveyed, ‘prevention is better than care’.
  100. 100. 1. Pre-test methods a. Check list method b. Consumer Jury method c. Sales Area Test d. Questionnaire e. Recall test f. Reaction test g. Readability test h. Eye-movement test
  101. 101. 2. Post-test methods 1. Recognition Test 2. Recall or Impact Test 3. Psychological Analysis
  102. 102. 3. Concurrent Methods 1. Consumer diaries 2. co-incidental surveys and 3. Electronic devices.
  103. 103. UNIT 3 Media Planning and Selection – Concepts of Reach Frequency, Continuity and Selectivity – Measures of Media Cost Efficiency – Media (Readership/Viewer ship) Research. The Internet as an Advertising Medium: Tracking Website Visits, Page Views, Hits and Click Stream Analysis, Permission Marketing and Privacy, Ethical Concerns.
  104. 104. MEDIA • Advertising message goes to the target audience through media or the communication channels. • The front line media are – newspapers, TV, direct mail, radio, magazines, business/trade publications and outdoor advertising.
  105. 105. Types of Media TYPES Indoor Outdoor Directive Display 1.Press 1.Posters 1.Envelope 1.Display 2.Radio 2.Painted Display 2.Board Sides 2.Showrooms 3.Television 3.Travelling/Transit 3.Booklet & 3.Exibilitions Catalogs & Trade Fairs 4.Film 4.Sky Writing 4.Sales Letter 5.Video 5.Electric Sign 5.Gift Novelties 6.Internet
  106. 106. Media Planning The two basic tasks of marketing communications are message creation and message dissemination. Media Planning supports message dissemination. Media planning helps you determine which media to use--be it television programs, newspapers, bus-stop posters, in-store displays, banner ads on the Web, or a flyer on Facebook. It also tells you when and where to use media in order to reach your desired audience. Simply put, media planning refers to the process of selecting media time and space to disseminate advertising messages in order to accomplish marketing objectives.
  107. 107. Media Objectives How is a media plan developed? Media planning is a four-step process which consists of 1) setting media objectives in light of marketing and advertising objectives, 2) 2) developing a media strategy for implementing media objectives, 3) 3) designing media tactics for realizing media strategy, and 4) 4) proposing procedures for evaluating the effectiveness of the media plan.
  108. 108. MEDIA PLANNING ‘Media Planning’ includes all decisions regarding the time and place of advertising, in addition to the selection of the media. A ‘media plan’ thus outlines how advertising time and space in various media will be used to achieve the marketing objectives of the company through advertising.
  109. 109. MEDIA SELECTION It refers to the selection of a specific vehicle or a combination of vehicles, or more broadly the selection of a specific medium or a combination of media (‘media mix’). Thus, for the launch of a new detergent – it may be introduced by cinema advertising and also on television, with the press and outdoor media being selected as ‘reminder’ media.
  110. 110. MEDIA STRATEGY ‘Media Strategy’ is a part of the marketing strategy; hence the ‘media plan’ is part of the overall market plan, and media selection is the final stage in the process of the promotion of a product through advertising. As we have often remarked, advertising is only one element in the ‘marketing mix’; the primary objective is marketing the product, and advertising is just the means of creating a need for the product.
  111. 111. MEDIA RESEARCH ‘Media Research’ involves the collection of data about the various advertising media, surveying consumers on their media preferences, and carrying out primary and secondary research on effectiveness of each medium for selling different types of products.
  112. 112. STEPS INVOLVED IN ADVERTISING PLANNING 1. Target Market Study a. Demographic data b. Psychographic data c. Consumer profile d. Media profile 2. Deciding the Advertisement Message 3. Matching Media and Target Group 4. Media Selection 5. The Media Schedule
  113. 113. MEDIA REACH & FREQUENCY Media planners should plan the optimal use of media budget while deciding about the reach, frequency, and the number of advertising cycles affordable for the year. We have seen in the hierarchy models that the first stage requires awareness of the product or brand. Obviously, if more people are aware of the product, there is more likelihood that many of them will move to the later stages and finally to purchase action. Creating awareness among audience requires reach which is nothing but exposing potential customers to the advertising message.
  114. 114. MEDIA REACH & FREQUENCY So far, there is no known way to determine how much reach is required to achieve desired levels of awareness, attitude change, or purchase intention. Also, there is no certainty that an advertisement placed in a particular media vehicle will actually reach the target audience. For example, if an advertiser buys 30 or 60 seconds of TV time during a certain programme, everyone who is tuned to this programme may not necessarily see the commercial for a number of reasons.
  115. 115. MEDIA REACH & FREQUENCY Frequency = Total exposures / Reach Example Survey sample size = 10 households with TV Survey period = 4 weeks TV programme = P
  116. 116. Total Exposures = 20 Households that watched TV = 8 programme (reach) Frequency = Total exposures / Reach = 20 / 8 = 2.5
  117. 117. IMPORTANT FACTORS IN DETERMINING FREQUENCY LEVELS 1. Marketing Factors 2. Message Factors 3. Media Factors
  118. 118. 1. Marketing Factors a. Brand history b. Brand share c. Brand Loyalty d. Purchase cycles e. Usage cycle f. Competitive share of voice g. Target group
  119. 119. 2. Message Factors a. Message complexity b. Message uniqueness c. New campaigns d. Creation of image e. Message variation
  120. 120. 3. Media Factors a. Clutter b. Attentiveness c. Number of media used
  121. 121. FACTORS GOVERNING THE CHOICE OF MEDIA 1. Availability of Funds 2. Nature of Product 3. Geographical Coverage 4. Demographic factors
  122. 122. Audience Research Identifying the audience for a magazine or newspaper, or determining who watches television at a given time, is a specialized form of market research, often conducted on behalf of media owners. Press figures are slightly complicated by the fact that there are two measures: readership (total number of readers of a publication, no matter where they read it), and circulation (the number of copies actually sold, which is mostly independently validated).
  123. 123. ETHICS IN ADVERTISING  The world of advertising has its own set of stories about the good and the bad, truth and dishonesty. This unit focuses on truth and deception in advertising and on the ethical dilemmas of those who produce advertising.
  124. 124. ETHICS IN ADVERTISING  standards or moral values which dictate what is right and what is wrong, or good or bad, which are  culturally-based and formed based upon society’s expectations  vary by person, and by situation  everyone develops their own “code of ethics”
  125. 125. WHAT IS DECEPTIVE ADVERTISING  claiming that a product can do something that it cannot is a clear-cut case of deception.  this is the picture by NIKE showing the strength of their food ball but in reality neither the footballs are so huge nor so powerful.  it is ethically wrong to show something that doesn’t exist.
  126. 126. INTERNET MARKETING The fastest growing media outlet for advertising is the Internet. Compared to spending in other media, the rate of spending for Internet advertising is experiencing tremendous growth. However, total spending for Internet advertising remains relatively small compared to other media. Yet, while Internet advertising is still a small player, its influence continues to expand and each year more major marketers shift a larger portion of their promotional budget to this medium.
  127. 127. Internet as an Advertising Medium There are two primary ways to advertise on the Internet: 1. Register your Web site with major search engines so Internet visitors can find you. 2. Place a banner ad for your site on another Web site that has a lot of traffic (viewers). Banner ads allow viewers to visit your site when they click on the banner.
  128. 128. The Internet offers many advertising options with messages delivered through : - Website Advertising - Email Advertising
  129. 129. Website Advertising Advertising tied to a user’s visit to a website accounts for the largest spending on Internet advertising.
  130. 130. Email Advertising Using email to deliver an advertisement affords marketers the advantage of low distribution cost and potentially high reach. In situations where the marketer possesses a highly targeted list, response rates to email advertisements may be quite high.
  131. 131. Advantages • Messages can be timely because editing the content is often easy and instantaneous. • Ads on the Internet can be interactive. You can request viewer feedback, take orders or answer questions instantly. • Ad banners can run with as much frequency as you choose. The Internet is constantly available. • Internet advertisers can potentially reach a global audience. Aside from language barriers, anyone at any location in the world can access information about your products or services.
  132. 132. PAGE VIEW  a page view (PV) or page impression is a request to load a single page of an Internet site.  On the World Wide Web a page request would result from a web surfer clicking on a link on another HTML page pointing to the page in question.  This should be contrasted with a hit, which refers to a request for a file from a web server. There may therefore be many hits per page view since a page can be made up of multiple files.
  133. 133. PAGE VIEW  these page views may be counted as part of web analytics. For the owner of the site this information can be useful to see if any change in the page (such as the information or the way it is presented) results in more visits.  if there are any advertisements on the page, the advertisers would also be interested in the number of page views to determine their expected revenue from the ads. For this reason it is a term that is used widely for internet based marketing and advertising.
  134. 134. PAGE HITS  a hit is a request to a web server for a file (web page, image, JavaScript, Cascading Style Sheet, etc.).  when a web page is uploaded from a server the number of “hits” or “page hits” is equal to the number of files requested.  therefore, one page load does not always equal one hit because often pages are made up of other images and other files which stack up the number of hits counted.
  135. 135. PAGE HITS  because one page load does not equal one hit it is an inaccurate measure of a website’s popularity or web traffic.  hits are useful when evaluating the requirements of your server, depending on the number and size of files which need to be transferred for one request.
  136. 136. TRACKING WEBSITE VISITORS  if you have a website or blog, collecting data on visitors to your site is extremely important. Whether you have a business or just develop websites or blogs as a hobby, data from your visitors can be extremely helpful in tweaking and fine-tuning your site.  the more data you can collect from visitors, the more productive and effective your content, campaigns and services can be. There are many ways to track website visitors. Some of the more popular include: Free website tracking software Analytic software Services that track and analyze data for you.
  137. 137. CLICK STREAM ANALYSIS A Clickstream is the recording of what a computer user clicks on while Web browsing or using another software application. As the user clicks anywhere in the webpage or application, the action is logged on a client or inside the Web server, as well as possibly the Web browser, routers, proxy servers, and ad servers. Clickstream analysis is useful for web activity analysis, software testing, market research, and for analyzing employee productivity.
  138. 138. PERMISSION MARKETING Permission marketing is a term coined by Seth Godin used in marketing in general and e-marketing specifically. The undesirable opposite of permission marketing is interruption marketing. Marketers obtain permission before advancing to the next step in the purchasing process. For example, they ask permission to send email newsletters to prospective customers. It is mostly used by online marketers, notably email marketers and search marketers, as well as certain direct marketers who send a catalog in response to a request.
  139. 139. This form of marketing requires that the prospective customer has either obtained explicit permission to send their promotional message (e.g. an email or catalog request)or implicit permission (e.g. querying a search engine).
  140. 140. UNIT 4 Ad Effectiveness – Measuring Advertising Effectiveness – Control of Advertising by Practitioners, Media and the Market. Advertising in the International Market Place. Advertising and Principles of Integrated Marketing Communication and Image Building.
  141. 141. MEASURING ADVERTISING EFFECTIVENESS  An unnecessarily large amount is sometimes spent without any reward. An improper display may tarnish the image of the product.  An advertising measurement is adopted both before and after an advertising campaign is launched.  After a campaign has been launched, it is essential to know how far the advertising plans, strategies and programmes are successful in achieving the objectives so that they may be modified and redesigned for better performance if needed.
  142. 142. OBJECTIVES OF MEASURING ADVERTISING EFFECTIVENESS Some advertisers do not bother to measure advertising effectiveness. They expect that the sales will ultimately increase by reason of advertising. But, recently, problems and difficulties have compelled them to measure advertising effectiveness. The producers also adopt a measuring device because they incur a sizeable amount of expenditure on advertising. The effectiveness of media and message are also assessed for their use in future.
  143. 143. Cont… Only through the measuring of advertising effectiveness the success of a particular campaign can be known. Various measuring techniques have been developed to measure effectiveness at every stage to isolate the effects of advertising from those of other promotional and marketing activities. The copy, media and other advertising components have been tested. The factors like readership, consumer opinion, belief or disbelief, recall, attention, comprehension, attitude, etc are taken into consideration for measuring effectiveness.
  144. 144. MEASURING SALES AND COMMUNICATION PERFORMANCE Two important aspects of measurements, viz., sales and communication objectives are measured to judge the advertising effectiveness. 1. Sales Measurement 2. Measurement of Communication Effects
  145. 145. WHEN TO MEASURE? Pre-testing is adopted to measure the effectiveness and accuracy of an advertising plan before its implementation. Post-testing is done after the advertising activities have been completed to examine the effectiveness of these advertising activities. A mid-test involves a test before the completion of advertising functions and after the implementation of the advertising plan.
  146. 146. METHODS OF MEASUREMENTS There are two methods of measuring advertising effectiveness, viz, experimental method and survey method. Under experimental method, consumers are given a controlled exposure to the message and the effects are measured on the basis of the change in opinion or attitude. The results of the exposure in almost all the situations are recorded. The alternative effects of each exposure are considered for comparison and with a view to establishing a relationship between the exposure and the effects.
  147. 147. Cont… Field experiments are conducted to measure the effects of mass communication. Sample surveys or interviews or questionnaires are used to obtain information about people's exposure to the advertising campaign. The effectiveness is evaluated on the basis of the correlations between the exposure and the attitude or action.
  148. 148. TESTING Pre Testing Methods 1. Consumer Jury 2. Story Board Test 3. Laboratory Test 4. Tachistoscope 5. Psychogalvanometer 6. Eye Camera 7. Pupil Dilation 8. Attitude Test 9. Depth Interviewing Post Testing Methods 1. Recognition Test 2. Call Test i. Aided Recall ii. Unaided Recall iii. Combined Recall Test 3. Attitude Change i. Semantic Differential ii. Likert Scale iii. Ranking Techniques iv. Projective Techniques 4. Sales Test
  149. 149. 1. Consumer Jury Consumer reaction has greater validity than the reactions of non-consumers. Consumers can provide true information on reaction to an advertising campaign. Others may underestimate or overestimate the reactions. The copy, illustrations, filming techniques, layout, etc. can be properly evaluated by the consumers concerned with the product. The consumer jury technique is adopted for print media, broadcast media and direct mail.
  150. 150. 2. Storyboard Tests The storyboard prepared for television advertising is tested before it is used. The storyboard pictures are transferred to a film strip and the audio section onto a tape. Vision and sound are synchronized and shown to an audience for evaluation. This test uncovers the unnecessary part. The important part of advertising is accepted for telecasting. The anteroom trailer method is used to test the commercial. The anteroom contains magazines, newspapers, distractions and television recorded programmes.
  151. 151. 3. Laboratory Tests The respondents are placed in laboratory situations and are asked to explain the measurements regarding the effectiveness of the advertisement. Laboratory conditions offer a controlled environment that excludes the variables which may invalidate the test. It is used to measure awareness, attention, desire, retention, etc.
  152. 152. 4. Tachistoscope It is a projector that can project objects on to a screen at rates so fast that the viewer cannot detect the message. It is slowed down to a level where the message can be perceived easily. The respondents should understand and appreciate the message, interesting words, slogans, headlines, etc. They can be easily segregated from the less interesting message.
  153. 153. 5. Psychogalvanometer It is a mechanical device that measures the amount of perspiration. It measures a respondent's reactions to new records and slogans. Electrodes are attached to his palms to detect changes in electrical resistance arising from perspiration. If the machine registers lower electrical resistance it is the existence of tension. The main objective is to attract attention to the product which is reflected by the galvanic skin response. But it should not be concluded that greater tension reflects the greater success of the advertisement.
  154. 154. 6. Eye Camera The eye movements are recorded by a video camera. It records the activity of the eye by is movements. The audience is asked to look at a series of pictures on a screen but unaware that their eye actions are being photographed. It shows what the respondent sees. If a commercial is interesting and if he is attracted by it, his eyes will be fixed on that. The respondents may be asked some questions about the advertisement.
  155. 155. 7. Pupil Dilation The size of the pupil changes as people see different things. The change follows different advertising stimuli. It becomes wider as greater interest is aroused. The pupil shrinks if the eye is not interested. A pupilometer records the dilation which is involuntary and measures the interest shown by the respondent.
  156. 156. 8. Attitude Test The attitude is closely related to advertising effectiveness. Respondents are asked to give answers to the questions on a seven-point bipolar scale about their feelings about a particular advertisement. The semantic differential rating scale has been used extensively to measure advertising effectiveness. If the attitudes of potential customers are changed toward the products, the advertisement is considered effective. The attitude of potential customers or respondents can be measured accurately on the attitude scale.
  157. 157. SEMANTIC DIFFERENTIALS Known ------------------------------------------------------unknown Informative.-----------------------------------------Un informative Realistic----------------------------------------------------Unrealistic Persuasive ------------------------------------------Not persuasive Instructive -----------------------------------------------Destructive Effective ---------------------------------------------------Ineffective Useless----------------------------------------------------------Useful
  158. 158. 9. Depth Interviewing It is concerned with getting the respondent to react freely to the brand, organisation and product. By suitable questions, the interviewer brings out his unconscious reactions to the surface. The reactions are noted to bring out the facts. Depth interviewing involves non-structured questions. The flexibility and intelligence of the interviewer identify the significant points made in the interview and achieve meaningful and valid results.
  159. 159. POST-TESTING METHODS It is applied after the advertisement has ended to find out how far advertising has been successful. The objective of advertising is to arouse consumer awareness, his interest, desire and develop his attitude to the product. These are recognition tests, recall tests, attitude change, sales and recognition tests.
  160. 160. 1. Recognition test It is developed by Danial Starch. It measures the readership of printed advertisements. It is also called the readership test. It is based on the assumption that there is a high correlation between the reading of the advertisement and the purchase of the product. A particular advertisement may be examined by sending the whole newspaper or magazine wherein it is published. Afterwards readers are approached to find out whether they have read the advertisements or not.
  161. 161. 2. Recall Tests A recall test depends on the memory of the respondents. This test is applied to measure the impression made by an advertisement on the reader's mind.
  162. 162. 3. Attitude Change There are several techniques for the measurement of attitude change after the advertising has ended. These techniques are as follows: # Semantic differential, # Likert scale, # Ranking techniques and # Projective technique.
  163. 163. (i) SEMANTIC DIFFERENTIALS Known ------------------------------------------------------unknown Informative.-----------------------------------------Un informative Realistic----------------------------------------------------Unrealistic Persuasive ------------------------------------------Not persuasive Instructive -----------------------------------------------Destructive Effective ---------------------------------------------------Ineffective Useless----------------------------------------------------------Useful
  164. 164. (ii) The Likert Scale Particulars Strongly Agree Agree Uncertain Disagree Strongly Disagree Radio advertising has been heard by a majority of the population. Nirma Advertisement appealed to people who have accepted it. Repetition of advertisement has reminded
  165. 165. 4. Sales Test It is designed to evaluate the effects of advertising on the purchase behaviour of the consumer. It is successfully applied to examine the consumer behaviour to advertisements of consumption goods. Sales are effected after creating an image of and interest in, the product. With the help of sales audit and audience response, it is possible to evaluate the effects of advertising on sales.
  166. 166. Control on Advertising by practitioners; media and market Advertising puts across messages and their presentation may be against the accepted values of society. Moral and ethical values have been discarded by several advertisers. These unsocial, immoral and unethical values are controlled by government and by consumers. With the growing criticisms of advertising, advertisers have been considering the idea of self-regulation. Self- regulation would result in true and accurate messages. Many advertisers were skeptical of the success of self regulation.
  167. 167. Self-Regulation by Media The media people can reject any advertisement if they consider that it is misleading and incorrect. The objectionable advertisements are not published or viewed or advertised by the media. Television in India and France is quite selective in accepting a particular message or mode of advertising. Television and radio are more concerned about the content of advertisements than the print media.
  168. 168. Cont… Television does not accept bait advertising, advertisement bearing on sexual themes and representations of certain professions. The time allotted to advertisers is restricted by television and radio. Many newspapers do not accept objectionable advertisements. They are famous for refusing to publish such advertisements.
  169. 169. CONTROL BY CONSUMERS Consumers have started exercising control over misleading advertisements since the latter part of the nineteenth century. They exert control in different forms: direct and indirect, formal and informal, short as well as long-range. They have devastating power to accept or boycott the product, which they do through consumer groups, through businessmen and through a law-enforcing authority. We have discussed the control by businessmen.
  170. 170. CONTROL BY GOVERNMENT Control by the government is felt to be necessary to check deceptive, misleading, highly competitive and immoral advertising. The government is after all responsible to see to it that there is no undesirable advertising. It has the power to control it. It should exercise this power to protect the interests of consumers, small businesses and other sections of society and to ensure that there is no deceptive and misleading advertising. The content of advertisements has to be regulated by the Government.
  171. 171. Advertising in the international market place The top world-wide markets began spending more then 50 percent of their advertising dollars outside the United States in the early 1990s. The non-U.S. gross income of the top 500 agencies reached $9 billion as the twentieth century drew to a close. Of the top 25 agencies, more than half are headquartered in the United States, with the remainder in Great Britain or Japan. The following discussion would explore the evolution of advertising from a local venture to a global one.
  172. 172. Global Brands A global brand is one that has the same name, design, and creative strategy everywhere in the world and is marketed in most of the major regional market blocs. Example: Coca-Cola, McDonald's, Henkel, Rolex, Nissan, Toyota, Gillette, and Avis.
  173. 173. The Global Advertising Plan The strategic advertising plan usually is prepared in conjunction with the budget. Basically, the plan outlines the marketing strategy, whereas the budget allocates the funds. Two major approaches to advertising in foreign cultures differ in their orientation: 1. The Market Analysis Model 2. The Culture-Oriented Model
  174. 174. THE INTEGRATED MARKETING COMMUNICATION Integrated marketing communication (IMC) is the practice of unifying all marketing communication tools and corporate and brand messages to communicate in a consistent way to and with stakeholder audiences (that is, those who have a stake or interest in the corporation). An IMC campaign plan is even more complex than a traditional advertising plan because it considers more message sources, more communication tools, and more audiences. IMC programs are designed to coordinate all the various communication messages and sources.
  175. 175. The Tools of IMC The tools used in an IMC campaign include traditional marketing communication tools such as advertising and sales promotion. However, the IMC approach recognizes that other areas of the marketing mix too. The price of the product signals a level of quality. The cleanliness of the store and helpfulness of the customer service department send powerful messages. The product's reliability also communicates. IMC planners should consider all message sources and marketing communications that reach stakeholder audiences.
  176. 176. Corporate Level Marketing Communication Level o Employees Consumers o Investors Target Audiences o Financial Community Trade Audiences o Government Regulators Local Community Marketing Level Media o Consumers Interest Groups o Target markets Activist Groups o Retailers General Public o Distributors o Competition o Suppliers o Vendors
  177. 177. Case Study Rasna Juc-Fit Rasna launched an ad campaign for its new drink, Rasna Juc-Fit. This was part of an aggressive 360 degree marketing strategy that had the company hiking marketing spends by 15 percent compared with the previous year. The ad campaign marked a shift in Rasna’s strategy. The target segment for the product is the family rather than just the children or adults as in previous advertising, as it seeks to reach out to a larger audience.
  178. 178. Rasna hopes to leverage the health angle with Juc-Fit. Juc-Fit was named so, to convey its benefits-it is claimed to be the country’s only drink with the 100 per cent recommended daily allowance of Vitamin A, C and E in addition to vital minerals and calcium. This is the positioning of the brand. The company also plans to set up a Rs.13 crore packaging unit in New Delhi for the new product. Juc-Fit, which was launched in October 2005, will compete with Tropicana, Dabur and other player in the ready-to-drink fruit juice market and in the larger fruit- based drinks market. With a 95 per cent share in the dilutable/soft drinks concentrate market, it was only a matter of time before the company entered these categories. The company was waiting for the right product and the right time, and wanted to get the price right.
  179. 179. Juc-Fit will be available in orange, mango and pineapple flavours at Rs 50 for a 1-litre pack and Rs.10 for a 200 ml pack. The prices of the product are lower compared to its competitors, offering a very good product at a competitive price. Rasna is completing the national roll- out. The launch was restricted to modern stores and A- class outlets, essentially SECs A and B, and with this product, the company had a range catering to a variety of customers. The company’s soft drink concentrates span all customer classes from SEC A-D. Questions 1. What is 360-degree marketing strategy? Explain 2. Suggest an effective advertising strategy to Rasna Juc- Fit, keeping in mind the strategy used by competitors, assume when company decide to market it in Delhi through whole range of distributors and local stores.
  180. 180. CASE STUDIES This case is about the advertising war between two popular health drink brands Horlicks and Complan in India. The war for supremacy between these two brands started as early as in 1960s and had continued ever since. Over the years, the brands were involved in aggressive comparative advertising in print and television over attributes such as ingredients, protein content, growth, and flavors. However, in late 2008, the makers of Horlicks, GlaxoSmithKline Consumer Healthcare (GSK), and the makers of Complan, Heinz India (Heinz), came out with advertisements that directly compared the brands using the competitor brand's trademarks. Industry observers felt that in their bid to outdo each other, the two companies had ended up denigrating the competitor brand.
  181. 181. Usually issues related to disparaging ads by rival companies were resolved by the Advertising Standards Council of India (ASCI). But with constant mudslinging at each other, the two companies decided to solve the issue in courts. In September 2008, Heinz moved the Bombay High Court objecting to the Horlicks ad , while in December 2008, GSK approached the Delhi High Court against the Complan ad. Experts felt that the latest tiff between GSK and Heinz had brought to the fore the issues and challenges involved in comparative advertising and the legal/ethical issues involved in such kind of advertising.
  182. 182. QUESTIONS 1. Analyze the advertising strategies adopted by Complan and Horlicks over the years. 2. Understand the issues and challenges faced by companies while using comparative advertising. 3. Examine the efficiency of comparative advertising in enhancing brand image and sales. 4. Study the implications of the advertising war between Complan and Horlicks. 5. Discuss and debate the legal/ethical issues involved in the case.