This document discusses advertising effectiveness and budget decisions. It defines advertising and outlines its objectives such as informing, supporting sales, and countering competitors. It describes different types of advertising like consumer, national, and direct response advertising. It also discusses factors that influence media decisions and ways to measure advertising effectiveness, including pre-testing and post-testing. Common budgeting methods are also outlined.

1. Advertising effectiveness & budget
decision

2. Definition
Philip kotler
“Advertising is any paid form of non-personal and promotion of ideas,
goods or service through mass media by an identified sponsor.”
Advertising Association of the UK
“Advertising is a means of communication with the users of a product or service.
Advertisements are messages paid for by those who send them and are intended
to Inform or influence people who receive them.”

3. Objectives
 To inform
 To support the
company’s sales force
 To counter competitors’
advertising
 To ensure success of sales
promotion schemes
 To announce the change
 To expand the market

4. Types of Advertising
 Consumer Advertising
 National Advertising
 Retail (local) Advertising
 Co-operative Advertising
 End-product Advertising
 Direct-Response Advertising
 Classified Ads

5. Consumer Advertising National advertising
 Most of the consumer goods
produces engage in consumer
product what is consumer
advertising.
 It is done for the ultimate
user of the product.
 Done by using Radio, TV,
Newspapers, Magazines,
Direct mail, etc.
 Erg. Toothpaste, soap, cold
drinks etc.
 The mostly by the marketer
of Branded product or
services , sold through
different outlets in the
distribution channel,
wherever they may be
located.
 In reality this does not
necessarily mean that the
product is sold nationwide.
 E.g. McDonald, Tata, reliance
etc.

6. Retail(local) Advertising Co-operative Advertising
 The manufacture has little
concern where his product is
purchased.
 The retailer advertise to
encourage patronage by
consumers and build store
loyalty among them.
 General approach “buy at our
store.”
 Advertising where a retailer
or a wholesaler share the
costs of an advertising
campaign with the
manufacturer of the product
being advertised.
 Manufacturers often will set
up an annual fund to use for
cooperative advertising when
the opportunity arises.
 This ensures that the message
is in line with the
manufacture wants to
communicate.

7. End product Advertising Direct –response Advertising
 There are many products that
are rarely purchased direct by
consumers. They are usually
bought as part or ingredient in
other products.
 example, there is Teflon
(DuPont product), Pentium
(Intel Corporation’s computer
processor chip),
 NutraSweet and Canderel, a
brand name for the artificial
sweetener Aspartame in the
food industry (Coca-Cola light)
 This type of advertising
encourages the consumer to
respond either by providing
feedback to the advertising or
placing the order with the
advertiser either by
telephone, mail, or the
internet.

8. Classified Ads
 These are arranges under subheads that’s describe the
class of goods or the needs, ads seek to satisfy.
 E.g. real estate, coaching, employment, and business
opportunities etc.

9. Advertising Media Decisions
1. Print Media
 Advertising in
newspaper, magazines
etc., can called print
media.
 Print media is also an
important sources of
finance for the print and
press media.

10. Electronic media Outdoor media
 Radio
 Television
 Cinema
 Internet
 Audio-video CDs
 Posters
 Sign boards
 Vehicular
 Wall writing
 Sandwich man
 Sky advertising
 Bill board displys

11. Direct mail advertising Other media
 Sales letters
 Circular letters
 Booklets and catalogues
 Brochures‘
 folders
 Specialty advertising
 Directories
 Loudspeakers

12. Factors influencing advertising media decision
 The objective of advertising
 Nature of the market
 Nature of the product
 nature of message
 Media cost
 Media used by the competitors
 Media availability
 Characteristics of buyers
 Size and nature of business enterprise
 Image of the media

13. Measurement of Advertising Effectiveness
Why test? Advertising is an investment by the
organization. It should be measured the effectiveness:
1. To determine that to what extent advertising
campaign has achieved its objectives.
2. to determine the effectiveness of various ad copies
to ascertain out of which one will be the best.
3. To determine relative strengths and weaknesses of
various media.

14. What to Measure?
 1.Message: The headline, its illustration, the body text,
the layout and the typography can be tested for
message appeal.
 Media: It includes the various types of media, the size
of space and duration in case of electronic media.
 Timing: advertising timing, frequency of
advertisement and continuity can be tested.

15. When to test?
Testing of advertising may take place at any stage of
advertising process from the planning stage to
execution.
If an attempt is made to measure the effectiveness of a
campaign before it has run, it is known as pre-testing.
Testing after advertising campaign has launched to
measure its effectiveness is called post-testing.

16. DAGMAR Approach
Developed by Rassell colley stands for Defining
advertising goal for measured advertising results.
Awareness
Comprehension
conviction
Action

17. Budget
 objective and task method
 % on sale
 Unit of sale
 Competitive spending
 Quantitative methods
 Affordable method
 Arbitrary method