This document discusses key concepts in advertising management including segmentation, positioning, and developing advertising objectives and plans. It provides a framework for advertising planning and decision making that begins with a situation analysis and leads to the development of an integrated marketing communications and advertising plan. The role of advertising emerges from the marketing program and advertising objectives must support the overall marketing strategy. Objectives should focus on intervening variables like awareness, attitudes, and trial rather than direct sales. Segmentation involves identifying consumer groups based on behaviors, benefits sought, and demographics to target advertising most effectively.

1. The Field of
Advertising Management

2. Market / Consumer Behavior
Government
Competition
Ad Agency
Media
Research
Agency
Advertiser
Control Inst.
Facilitating Inst.
Institutions Involved in the Field of Advertising

3. Research Suppliers
Advertiser Ad agency Media
Role of the Facilitating Institutions

4. Advertising Management

5. Management is about :
- Planning
- Decision Making
- Control

6. Framework of Advertising Planning &
Decision Making
Situation Analysis
Marketing Programme
Integrated Mar. Com. Plan
Advertising Plan
Implementation

7. Process starts with an analysis of the
Brand’s external & internal environment
Situation Analysis
(external and internal)
Marketing Programme
Market analysis
Competitor analysis
Brand Analysis- SWOT
Advertising Plan
Implementation

8. The Role of Advertising emerges from the
Marketing Programme
Situation Analysis
Marketing Programme
Determines the role of each
elements of the marketing
mix including Marketing
Communications
Indicates how all elements
will be coordinated to
support and synergise with
each otherIMC & Advertising plan
Implementation

9. The Advertising Plan Includes…
Situation Analysis
Marketing Programme
IMC & Advertising Plan
Setting Objectives -
(Segmentation-positioning)
Media – strategy & tactics
Message – strategy & tactics
Implementation
Implementation and
Coordination (synergy
with other IMC tools)

10. Framework of Advertising & Decision Making
Situation Analysis
Marketing Programme
IMC /Advertising Plan
Implementation
Facilitating Agencies
Social, legal & other
constraints

11. The Role of Advertising….
The role the Advertising plan can only be in the context
of the Marketing Plan
– The Advertising Plan must support and synergise with:
• the elements of the Marketing Mix
• and other elements of the Communication Mix
Need to understand ‘How Advertising Works’
to appreciate the role it plays

12. How does Advertising work ?
Advertising is
‘persuasive communication’

13. The Communication Process
MessageSource Receiver Destination
Media WOM
Perception Process
Message

14. The
Persuasion
Process of
Advertising
is through
a variety
of
advertising
effects
Awareness/
familiarity
Brand Benefit
/ Information
Creating image /
personality
Associating feelings
with Brand
Linkage of Brand with
peers/experts/group
norms /culture
Reminder / Brand trial
inducement
Brand
Attitude
Purchase
Behavior
The Persuasion Process of Advertising

15. Setting Advertising Objectives

16. These must be
Operational Objectives
Meaningful Advertising Objectives
• Provide criteria for decision making
• Serve as a communication and coordination tool
• Provide criteria for evaluate performance
Can ‘Sales’ be meaningful Objectives?

17. ‘Sales’- A Meaningful Advertising
Objective??
Difficult to identify the impact of Advtg.on ‘Sales’
– ‘Advtg. impact is felt over time
– Isolating ad impact from other elements of the marketing
mix is difficult
New customers
Advertising Immediate Sales Future sales
Change attitude / improve image

18. Developing Advertising Objectives
Involves 3 considerations -
• Behavioral decisions (behavioral objectives) that
Advertising must influence
• The Target Segment
• The decision making process that communication
must precede to influence behavior

19. ‘Sales Strategy’ the basis for
Advertising Objectives
Sales growth comes from -
• New customers buying
• Old customers staying loyal
• Old customers consuming more

20. Demand Generation - Offensive Strategy
Market dynamics:
- Sales grow because of new customers buying
‘Offensive Marketing Strategies’
• Primary demand generation
• Secondary demand generation
Those not the
buying product
Existing
customers
Those buying
Other brands

21. Demand Generation - Defensive Strategy
Market dynamics:
– Sale grow with old customers staying loyal
‘Defensive Marketing Strategy’
• Recall the important brand features
• Reinforce use experience
• Consumer promotions

22. Demand Generation through Increased
Consumption
Market dynamics:
Sales grow with ‘Product form expansion’
• More frequent usage / share of requirement (SOR)
• New use applications

23. Secondary Demand-
New customers using
other brands
Primary Demand -
Customers trying
the category for the
first time
Existing customers
Loyalty
More consumption news
uses and more usage
Behavioral
Responses
that drive
Purchase
Marketing / Sales Strategies & Behavioral Objectives
Trial
Purchase
Trial
Purchase
Loyalty
Increased
usage / SOR

24. The Influence of Advertising
on Desired Behavior
Advertising is not as effective in directly evoking desired
action -‘Purchase’
Advertising causal intervening response
desired behavioral response Sales
Sales Promotions, DM & Retail Advertising should be
used in conjunction with Advertising to drive sales

25. The
Persuasion
Process of
Advertising
is through
a variety
of effects
Awareness/
familiarity
Brand Benefit
Information
Creating image /
personality
Associating feelings
with Brand
Linkage of Brand with
peers/experts/group norms
Reminder / Brand trial
inducement
Brand
Attitude
Purchase
Behavior
These Intervening Variables between Advertising & Action are
more effective Operational Advertising Objectives than Sales

26. Advertising Objectives (the Intervening Response
Variables that are persuasive in its context) are
determined by the type of Sales Strategy and
Behavioral Objectives

27. The
Persuasion
Process of
Advertising
is through
a variety
of effects
Awareness /
Familiarity
Brand Benefit
Information
Creating image
-personality /
users
Associating feelings
with Brand use
Linkage with peers /
experts/group norms
Reminder / Brand trial
inducement
Purchase
These Intervening Variables have a causal relationship between
Advertising & Sales
Trial Purchase
& Loyalty
Trial Purchase &
Increased usage
Loyalty
Loyalty
Loyalty

28. Advertising Objectives
Reflect the Target Segment
The segment and sub-segment can be defined by –
• Behavioral measures – non-users, other brand users,
heavy / light / loyal users etc.
• Advertising response measures – unaware, not
convinced of key benefit, diffused / sharp image, etc
• Lifestyle - attitude & opinions, interests
• Benefits sought
• Demographic, psychographics, geographic basis -
more relevant for media decisions

29. ‘Hierarchy of Effects’ Model - DAGMAR
Unaware
Aware
Comprehension & image
Attitude
Action
Cognitive
Affective
Behavioral
DAGMAR Approach – A communication task to be accomplished
amongst a defined audience, in a specified period of time

30. DAGMAR in Practice
Objectives in Black & White to ensure the sated goals
contain the crucial aspects of DAGMAR
• A specific task indicated clearly – to be measurable
• A starting point set –Benchmark against which goal
achievement can be measured
• A Target Segment specified precisely
• The Time Period for achieving the desired response
indicated

31. DAGMAR in Practice
Challenges to DAGMAR
• Does not measure Sales
• Broad outline does not give enough details (which
hierarchical level)
• Measurement is a problem
• System noise – other factors affecting goal
• Model may not hold good in every situation

32. Other Persuasion Models
IADA Hierarchy Innovation
of Effects Adoption
Attention
Awareness
Knowledge
Awareness
Interest
Desire
Liking
Preference
Conviction
Interest
Evaluation
Cognitive
Stage
Affective
Stage
Action
Stage
Action Purchase
Trial
Adoption

33. Segmentation and Positioning

34. Segmentation is about deciding
which consumers the
Advertising should be targeted at

35. The Target Marketing Process
Identify markets with unfulfilled needsIdentify markets with unfulfilled needs
Determining market segmentationDetermining market segmentation
Selecting market to targetSelecting market to target
Positioning through marketing strategiesPositioning through marketing strategies

36. Five-Step Segmentation Process
1. Finding ways to group consumers according to their
needs.
2. Finding ways to group marketing actions, usually the
products offered, available to the organization.
3. Developing a market/product grid to relate the market
segments to the firm’s products and actions.
4. Selecting the product segments toward which the firm
directs its marketing actions.
5. Taking marketing actions to reach target segments.

37. Bases for Segmentation
• Geographic Segmentation
– State - region - country - climate
• Demographic Segmentation
– Age, sex, income, education, occupation, social class
• Psychographic Segmentation
– AIOs, (Activities, Interests, Opinions)
– VALS (Values and Lifestyles)
– Personality traits
• Behavioristic Segmentation
– Usage, loyalties, use occasions
• Benefit Segmentation
– Types of specific needs or wants to be satisfied.

38. Segmentation Approaches
– A Priori basis : the market is segmented before any data on the
market place is examined
• Age
• Income
• Usage
• Loyalty
• Geo-location
– Empirical Segmentation : created on the basis of differences in
• Attitude and benefits sought
• life-style - AIO
• culture

39. Approach Implementation
Both are used together but in different order
• A priori segmentation starts with variables such as
income etc and then examines attitudes and benefits
• Empirical segmentation starts with benefit
segmentation and then see how these clusters are
different in terms of demographics

40. Selecting a Target Market
Segmentation Strategies
Determining how many segments to enter
 Undifferentiated Marketing – offering one product or service to
the entire market
 Differentiated marketing – competing in a number of segments
with separate marketing strategies for each
 Concentrated Marketing – focusing on one market segment

41. Determining Which Market Segments
Offer the Most Potential
 Identify the group that is most likely to respond to the
brand offering
 Determine sales potential of the segment
 Determine opportunities for growth of the market
segment.
 Analyze the competition in the segment (segments not
being served well by competition)
 Analyze the company’s ability to compete in the market
segment
 Decide how to compete in the market segment

42. Segmentation Decision Check List
 Can the size of the market segment be
measured?
 Is the market segment large and profitable
enough to serve? (large and growing in size)
 Is the segment identified accessible? Can it
be reached effectively and efficiently?
 Can effective marketing programs be
developed to attract and serve the segment
identified?

43. TM and Media Reach Approaches
– Controlled Coverage – using niche media to reach
only the desired segment e.g. trade magazines
– Customer Selection – using mass media to Reach
is directed at mass audiences

44. Positioning
It gives the consumer a clear idea
of what the Brand stands for

45. The Positioning Process
Positioning Concept
The desired perception or
association management wants
target customers to have for a
firm and/or its products
Positioning Effectiveness
The extent to which management’s
positioning objectives are achieved
in the market target
Positioning Strategy
The combination of marketing
actions used to portray the
positioning concept to targeted
buyers
Positioning of the brand
The positioning of the brand by
the buyers in the market target
Market
Target

46. Positioning Strategy Development
Process - Background Analysis
1. Identify the competitors1. Identify the competitors
2. Assess perceptions of competitors2. Assess perceptions of competitors
3. Determine their positions3. Determine their positions
4. Analyze consumer preferences4. Analyze consumer preferences
6. Monitor the position6. Monitor the position
5. Make the positioning decision5. Make the positioning decision

47. Product/Service and Brand Positioning
BASIC QUESTIONS TO ASK
1. What position, (if any) do we currently hold in the mind of
customers?
2. What position do we want to hold?
3. Whom do we have to compete against to establish this position?
4. Do we have the resources to occupy and hold the position?
5. Can we stay with one consistent positioning strategy?
6. Does our marketing and advertising match our positioning strategy?

48. Positioning Strategy Approaches
Product/Service or Brands can be positioned by single
or multiple approaches:
– Product attributes or consumer benefit
– Price-quality
– Use or application
– Users
– Product class
– Cultural symbols
– Competitors

49. Positioning Decision – Check Points
Select and Evaluate the position
• An economic analysis
– Appeals to a large and growing segment
– Penetration possibilities – competitive edge to attack
competition
• Don’t be what you are not
• Monitor the position

50. Positioning Decision -Imperatives
– Segmentation commitment
– Stick with the Advertising that works
– Consider using symbols

51. Positioning Strategy Execution
– A relative concept that must indicate the position
of the brand vis-a-vis other brands -
differentiation
– It determines the nature of the elements of the
marketing mix
– Best communicated through Advertising

52. Product Decisions
A productproduct is a bundle of benefits or values
that satisfies the needs of consumers
 Product symbolism refers to what a product or
brand means to customers
 Product quality, branding, packaging, and
company name contribute to product image
 Branding:
• Brand name communicates attributes and meaning
• Advertising creates and maintains brand equity which
results from the image and/or impression of a brand

53. The Value of Strong Corporate and /or
Brand Identity
Strong corporate/brand equity:
 Creates more options for competing (particularly against
lower-priced competitors)
 Can facilitate brand and line extensions
 Allows companies to sell products/services at a premium
price and maintain larger profit margins
 Builds customer loyalty
 Makes it easier to withstand economic fluctuations and
marketing crises
 Makes customer response more inelastic to price
increases and elastic to price decreases

54. Packaging
Traditional functions of packaging:
 economy, protection, storage
 Packaging has become increasingly important
because:
 self service emphasis of many stores
 buying decisions made at point-of-purchase
 often customers first exposure to product
Packaging is a way to communicate to consumers

55. Pricing Decisions
 Price must be consistent with perceptions of the product
 Higher prices communicate higher product quality
 Lower prices often reflect bargain or “value” perceptions
 A product positioned as high quality while carrying a lower
price than competitors may confuse customers
 Price, advertising and distribution must be unified to
create the position for the product or service.

56. Distribution Channel Decisions
Channel decisions involve:
 Determining the type of channel system:
– Direct channels
– Indirect channels
 Selecting, managing and motivating marketing
intermediaries such as
– Wholesalers
– Distributors
– Brokers
– Retailers

57. Information Flow
Push Versus Pull
Push PolicyPush Policy
ProducerProducer
RetailerRetailer
ConsumerConsumer
WholesalerWholesaler
Pull PolicyPull Policy
ProducerProducer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer

58. "Push" Techniques
 Point of sale displays, racks, stands
 Trade deals, special displays
 Dealer premiums, prizes, gifts
 Cooperative advertising deals
 Advertising materials, mats, inserts
 Push money or "spiffs"
 Collaterals, catalogs, manuals
 Trade shows, conventions, meetings

59. "Pull" Techniques
 Sampling, free trial
 Coupons
 Premiums or gifts
 Contests, sweepstakes
 Price-off deals
 Refunds/rebates
 Frequency/loyalty programs
 Point-of-purchase advertising

60. Marketing and Promotions Process Model
Competitive
analysis
Target
marketing
Identifying
markets
Market
segmentation
Selecting
a target
market
Positioning
through
marketing
strategies
Product
decisions
Pricing
decisions
Channel of
distribution
decisions
Promotional
decisions
•advertising
•direct
marketing
•internet/
interactive
marketing
•sales
promotion
•publicity
and public
relations
•personal
selling
Resellers
Ultimate
customer
•Consumers
•Businesses
Marketing
Strategy and
Analysis
Target
Marketing
Process
Marketing Planning
Program Development
Promotion to
final buyer
Target Market
Purchase
Promotion
to trade