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This one of our topics last semester in Principles and Broadcasting.. thanks to our Teacher Brenda A.. =)) it is really helpful.

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  1. 1. “Money doesmatter a lot.”
  2. 2. Advertising Budgetis the amount of money which canbe or has to be spent on advertisingof the product to promote it, reachthe target consumers and make thesales chart go on the upper side andgive reasonable profits to thecompany.
  3. 3. Before finalizing the advertisingbudget of an organization or acompany, one has to take a lookon the favorable andunfavorable market conditionswhich will have an impact onthe advertising budget.
  4. 4. The market conditions to watchout for are as follows:
  5. 5. 1. Frequency of the AdvertisementThis means the number of timesadvertise has been shown with thedescription of the product or service, inthe granted time slots. So here, if anycompany needs more advertisingfrequency for its product, then thecompany will have to increase itsadvertising budget.
  6. 6. 2. Competition and ClutterThe companies may have manycompetitors for its product. Andalso there are plenty ofadvertisements shown which iscalled clutter. The company has tothen increase their advertisingbudget.
  7. 7. 3. Market ShareTo get a good market share incomparison to their competitors, thecompany should have a better productin terms of quality, uniqueness,demand and catchy advertisementswith resultant response of thecustomers. All this is possible if theadvertisement budget is high.
  8. 8. 4. Product Life Cycle Stage If the company is a newcomer or if theproduct is on its introduction stage, thenthe company has to keep the budget high tomake place in the market with the existingplayers and to have frequent advertisements.As the time goes on and product becomesolder, the advertising budget can comedown as then the product doesn’t needfrequent advertising.
  9. 9. When the market conditionsare studied thoroughly, thenthe company has to set up itsadvertising budgetaccordingly.
  10. 10. Four MethodsinSetting AdvertisingBudget
  11. 11. Percentage Of Sales: In this method, the budget is decided on the basisof the sales of the product from previous yearrecords or from the predicted future sales. This is apure prediction based method and best applicableto the companies which have fixed annual sales.But if in case there is a requirement for morepromotional activities then this method has adisadvantage because there will be decrease inadvertisements as the budget is fixed.
  12. 12. Affordability: this method is generally used by the smallcompanies. Only the companies which havefunds and can afford advertising opt for thismethod. The companies can go foradvertising at any time in whole yearwhenever they have money to spend. Theamount spent also varies from time to timeas per the advertisements takes place.
  13. 13. Best guess: This method is basically for newcomers whohave just entered the market and they haveno knowledge or say they are not aware ofhow the market is and how much to spendon advertising. Thus, this method is appliedby the higher level executives of thecompany as they are the only experiencedpeople.
  14. 14. Thus, doing the homework andthen moving forward, i.e. searchingfor best market conditions andsetting the best advertising budgetwill have a great impact onimprovement and development ofthe company.
  15. 15. AdvertisingCampaigns -Meaning and itsProcess
  16. 16. Advertising Campaignsare the groups of advertisingmessages which are similar in nature.They share same messages and themesplaced in different types of medias atsome fixed times. The time frames ofadvertising campaigns are fixed andspecifically defined.
  17. 17. The very prime thing before making anad campaign is to know-Why you areadvertising and whatare you advertising ?
  18. 18. The objective of an advertisingcampaign is to:Inform people about yourproductConvince them to buy theproductMake your product available tothe customers
  19. 19. The process of making anadvertising campaign is asfollows:
  20. 20. 1. Research:first step is to do a marketresearch for the product to beadvertised. One needs to findout the product demand,competitors, etc.
  21. 21. 2. Know the target audience:one need to know who are goingto buy the product and whoshould be targeted.
  22. 22. 3. Setting the budget:the next step is to set the budgetkeeping in mind all the factors likemedia, presentations, paper works,etc which have a role in the processof advertising and the places wherethere is a need of funds.
  23. 23. 4. Deciding a proper themethe theme for the campaign has to bedecided as in the colors to be used, thegraphics should be similar or almostsimilar in all ads, the music and thevoices to be used, the designing of theads, the way the message will bedelivered, the language to be used,jingles, etc.
  24. 24. 5. Selection of mediathe media or number ofMedias selected should bethe one which will reach thetarget customers.
  25. 25. 6. Media schedulingthe scheduling has to be doneaccurately so that the ad will bevisible or be read or be audibleto the targeted customers at theright time.
  26. 26. 7. Executing the campaignfinally the campaign hasto be executed and thenthe feedback has to benoted.
  27. 27.  Mostly used media tools are print media andelectronic media. Print media includes newspaper, magazines,pamphlets, banners, and hoardings. Electronic media includes radio, television,e-mails, sending message on mobiles, andtelephonic advertising. The only point to remember is getting aproper frequency for the ad campaign sothat the ad is visible and grasping time forcustomers is good enough.
  28. 28.  All campaigns do not have fix duration. Some campaigns are seasonal and some run all yearround. All campaigns differ in timings. Some advertisingcampaigns are media based, some are area based,some are product based, and some are objective based. It is seen that generally advertising campaigns runsuccessfully, but in case if the purpose is not solved inany case, then the theory is redone, required changesare made using the experience, and the remainingcampaign is carried forward.
  29. 29. ModelsofAdvertisingScheduling
  30. 30. Schedulingdirectly refers to the patterns of time inwhich the advertisement is going torun. It helps fixing up the time slotsaccording to the advertiser so that themessage to be delivered will reachtarget audience in a proper way withproper timings.
  31. 31. There are basically three models ofadvertising scheduling as follows:
  32. 32. Continuity
  33. 33.  This model is very good option for the products or services whichdon’t depend on season for advertisements. They run ads whole year round. The advertisements under this type run at regular and fixedintervals. The main advantage here is reminding about your products tothe customers continuously. This model helps maintain a continuous and complete purchasecycle. This is a best model for the products having continuous demandall the year round. There can be a Rising Continuity in which some specificproducts are been advertised in the peak seasons for e.g. floatersare advertised more in rainy season while some products fallunder a Falling Continuity in which either ads for new productsare run or if there is any other change in the existing product.E.g. packaging of Pediasure, a kid’s health drink is recentlychanged.
  34. 34. Flighting
  35. 35.  This model is also called bursting. As the name suggests, this an absolute season basedproducts model. The ads here run at very irregular intervals. Advertisements are for very shorter periods andsometimes no ads at all. The ads are in concentrated forms. So, the biggestadvantage here is there is very less waste of funds asthe ads run only at the peak time when the productdemand is on high. Television and radio are the most used media types inthis method. So the advertisers who cannot afford theyear long ads, this is a best option. E.g. ads for warmclothes in Indian Market.
  36. 36. Pulsing
  37. 37.  This model is the combination of bothcontinuity and flighting scheduling. Here, ads run whole year round but at alower sidxe that means less ads, and heavyadvertisements are preferred at the peaktime. So this model has advantages of both theother models. Generally scheduling is fixed for a month.
  38. 38. There are six types of scheduling method: Steady pulse has fixed schedule for 12 months. Seasonal pulse has bunches of ads season wise. Period pulse regular basis ads. Erratic pulse refers to irregular ads normallyused for changing old patterns. Start up pulse is used for new product withheavy advertisements. Promotional pulse refers to short period singleuse ads used basically for promoting products orevents.
  39. 39. Using this interface, you can set thetime periods in which you want torun your campaign. Then click OKbutton.
  40. 40. Thus, points to remember whilescheduling an advertisement are:Selecting a proper media type forrunning adsSelecting a correct time for runningads so that the purpose is solved.Advertisements should be sufficientenough (in number) to deliver themessage to the target.
  41. 41. Industrial Advertising -Business to BusinessAdvertising
  42. 42.  The most popular terminology used forindustrial advertising is Business toBusiness advertising. This type of advertising generally includes acompany advertising its products or servicesfor the companies which actually uses sameor similar products or services or we can saythat the advertising company shouldproduce the products which the othercompany needs for its productions orfunctions.
  43. 43.  For e.g. some mineral water companieswhich work on a smaller scale outsource thepackaging bottles, the caps for bottles, thecover with name printed on it, etc. so forthis, the advertisements of themanufacturers of bottles, caps and outerpackaging paper can work.
  44. 44.  A smaller to smaller and largest of all, everycompany has to do industrial advertising. For e.g. if a company is making coffee powder, itwill sell its powder to the distributors who in turnwill sale it to the retailers and wholesalers and alsoto the big companies who has a coffee machine fortheir employees. Thus companies manufacturing any products canbe advertised to the other companies, like rawmaterials, the machineries used by othercompanies, spare parts of the machines whichmakes it work, anything.
  45. 45. Role of Industrial Advertising It minimizes the hunt for buyers. It helps in increasing sales of the company. It helps in making more and moredistribution channels. It makes company work more efficiently toproduce the desired product or service. It creates awareness among the customers orother companies about the products andservices.
  46. 46. Process of IndustrialAdvertising
  47. 47. The strategies used in industrialadvertising differ from company tocompany, as different companieshave different products to beadvertised. So, a single rule cannot work for allthe companies’ advertisements.
  48. 48. But the basic process which can lead to asuccessful advertisement is: knowing the objective for advertising – identifying the target companies – researching about the market conditionsand the competitors – creating the ad to be delivered – selecting media to be used – what should be the budget allotted – execution of the advertisement – getting the feedbacks from the customers.
  49. 49. Media TypesinIndustrial Advertising
  50. 50. The media generally used in the industrialadvertising is print media and directmarketing.
  51. 51. Print Mediaincludes business magazines,trade publications,newspapers, technicaljournals, etc.
  52. 52. To make print media workefficiently, there are some do’sand don’ts to be kept in mind:
  53. 53.  Visual image of the ad should be very sharpand prominent The ad should be so impressive that readersget attracted towards reading it The highlight should be on the service orproduct offered and not the source by whichit is being offered Let the ad be simple to be read (with nodifficult fonts) The picture shown should not be irrelevantwith the product.
  54. 54.  The ad should reflect the company’s image. The ad should to be in logical sequence if itis of two or more pages. Headlines should be catchy and suiting theproduct image. And lastly, at the bottom of the page, thecompany name, address and phone numberof the respected office should be mentionedclearly without fail.
  55. 55. Direct Marketing includes: 1. Direct Mail - here, the newsletters, data sheets,and the brochures of the company are directlymailed to the customers’ postal address. 2. Telephonic Advertising - the advertising isdone by calling up the customers on theretelephones, giving messages on mobile phones,etc. 3. Online Advertising - includes companiessending e-mails to the customers or othercompanies enclosing information about theirproducts ant services, putting online banners,providing e-shopping options, etc.
  56. 56.  The advertisers also use other ways forpromoting their products like participatingin trade shows, trade expos, and fairs. Thus, the companies can use any or everytype of advertising, the important mottobeing increase in sales, producing bestquality products, maintaining goodrelations with the customers, and achievingthe desired goal.
  57. 57. EthicsinAdvertising
  58. 58. Ethics means a set of moralprinciples which govern a person’sbehavior or how the activity isconducted.And advertising means a mode ofcommunication between a sellerand a buyer.
  59. 59. Thus ethics in advertising means a set of welldefined principles which govern the ways ofcommunication taking place between the sellerand the buyer. Ethics is the most important feature of theadvertising industry. Though there are manybenefits of advertising but then there aresome points which don’t match the ethicalnorms of advertising.
  60. 60. An ethical ad is the one which doesn’t lie, doesn’t makefake or false claims and is in the limit of decency. Nowadays, ads are more exaggerated and a lot ofpuffing is used. It seems like the advertisers lack knowledge of ethicalnorms and principles. They just don’t understand and are unable to decidewhat is correct and what is wrong. The main area of interest for advertisers is to increasetheir sales, gain more and more customers, andincrease the demand for the product by presenting awell decorated, puffed and colorful ad.
  61. 61.  They claim that their product is the best, havingunique qualities than the competitors, more costeffective, and more beneficial. But most of these ads are found to be false, misleadingcustomers and unethical. The best example of these types of ads is the onewhich shows evening snacks for the kids, they usecoloring and gluing to make the product look glossyand attractive to the consumers who are watching theads on television and convince them to buy theproduct without giving a second thought.
  62. 62. Ethics in Advertising is directly related to the purposeof advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessaryto prove the benefit of the product. For e.g. a sanitary napkin ad which shows thatwhen the napkin was dropped in a river by somegirls, the napkin soaked whole water of the river. Thus, the purpose of advertising was only toinform women about the product quality. Obviously, every woman knows that this cannotpractically happen but the ad was accepted. This doesn’t show that the ad was unethical.
  63. 63. Ethics also depends on what we believe. If the advertisers make the ads on the belief that thecustomers will understand, persuade them to think,and then act on their ads, then this will lead to positiveresults and the ad may not be called unethical. But at the same time, if advertisers believe that theycan fool their customers by showing any impracticalthings like just clicking fingers will make your home oroffice fully furnished or just buying a lottery ticket willmake you a millionaire, then this is not going to workout for them and will be called as unethical.
  64. 64.  Recently, the Vetican issued an article which saysads should follow three moral principles –Truthfulness, Social Responsibility and UpholdingHuman Dignity. Generally, big companies never lie as they have toprove their points to various ad regulating bodies. Truth is always said but not completely. Sometimes its better not to reveal the whole truthin the ad but at times truth has to be shown forbetterment.
  65. 65. Pharmaceutical Advertisingthey help creating awareness, but onecatchy point here is that the advertisersshow what the medicine can cure butnever talk about the side effects of thatsame thing or the risks involved inintake of it.
  66. 66. Children - children are the major sellers of the ads and theproduct. They have the power to convince the buyers. But when advertisers are using children in their ad,they should remember not to show them alone doingthere work on their own like brushing teeth, playingwith toys, or infants holding their own milk bottles aseveryone knows that no one will leave their kidsunattended while doing all these activities. So showing parents also involved in all activities orthings being advertised will be more logical.
  67. 67. Alcohol - till today, there hasn’t come any liquor ad whichshows anyone drinking the original liquor. They use mineral water and sodas in theiradvertisements with their brand name. These types of ads are called surrogate ads. These type of ads are totally unethical when liquor adsare totally banned. Even if there are no advertisements for alcohol, peoplewill continue drinking.
  68. 68. Cigarettes and Tobacco - these products should be never advertisedas consumption of these things is directlyand badly responsible for cancer and othersevere health issues. These as are already banned in countries likeIndia, Norway, Thailand, Finland andSingapore.
  69. 69. Ads for social causes - these types of ads are ethical and areaccepted by the people. But ads like condoms and contraceptive pillsshould be limited, as these are sometimesunethical, and are more likely to loosemorality and decency at places where thereis no educational knowledge about all theseproducts.
  70. 70. Looking at all these above mentioned points,advertisers should start taking responsibility of selfregulating their ads by: design self regulatory codes in their companiesincluding ethical norms, truth, decency, and legalpoints keep tracking the activities and remove ads whichdon’t fulfill the codes. Inform the consumers about the self regulatory codesof the company Pay attention on the complaints coming fromconsumers about the product ads. Maintain transparency throughout the company andsystem.
  71. 71. When all the above points are implemented,they will result in: making the company answerable for all itsactivities will reduce the chances of getting pointedout by the critics or any regulatory body. will help gain confidence of the customers,make them trust the company and theirproducts.
  72. 72. MeasuringAdvertisingEffectiveness
  73. 73. “When a child writes the examinationpapers, he has to see the resultcome what it may be, so that hecomes to know where he is wrongand where he should pay moreattendance. This will help him workbetter in future.”
  74. 74.  This is exactly the case of the advertisement. The work is not complete if the effectiveness ofadvertise is not measured. This is the only way to know how theadvertisement is performing, is it reaching thetargets and is the goal achieved. It is not at all possible to measure advertisementeffectiveness accurately as there are many factorslike making a brand image, increasing the sales,keeping people informed about the product,introducing new product, etc, which affect theeffectiveness of an advertisement.
  75. 75.  We all know that there are some companieswho advertise at very low level but still theirproducts are a hit and some companiesindulge in very heavy advertisements butthey don’t get desirable results. But then, there are some traditional andmodern tools to measure most of theeffectiveness of an advertisement throughwhich the advertiser can or may get moreand more information about how their adsand product are performing in the market.
  76. 76. According to Philip Kotler and Armstrong,the Gurus Of Marketing, there are twomost popular areas which need to bemeasured for knowing the effectiveness ofadvertisement and they are:Communication EffectSales Effect
  77. 77. Communication Effect Research consists ofthree types of researches:1. Direct Rating Method - here, customers aredirectly asked to rate the advertisement and thenthese rating are calculated.2. Portfolio Tests - here, the customers see the ads andlisten carefully to the ads and all the contents of theads and then they are asked to recall the ad and thecontents. Then the calculations are done with help ofthis data.3. Laboratory tests - here, the apparatus to measurethe heart rates, blood pressure, perspiration, etc areused on the customer after he watches the ad, toknow the physiological reactions of the body.
  78. 78.  Sales Effect Research totally depends on thesales of the company. The sales keep varyingfrom time to time. There are some factors affecting saleslike:- product availability,the price of the product, contents of the product, and sometimes the competitors.
  79. 79.  So this method is a little difficult than thecommunication one. The company doing sales effect researchgenerally bothers about the sales of theproduct, they try to know whether or not themoney they are spending on the ads isenough or excess.
  80. 80.  As earlier said, it is not possible to measureeach and everything and the chances are atthe lower end if the company has many adsrunning through various mediums at thesame time. So suggestion is that the advertiser orthe company should use appropriateand different methods which are mostsuitable for the media under use.
  81. 81. The company can hold surveys and productrecognition testsQuestionnaire or feedback flyers can bedistributed and customers could be asked to fillit up.Toll free number can be highlighted on the adsso that customers can call up.The response rates can be increased by tellingcustomers what to do. For e.g. some ads havelines in flashy color like “Hurry Up” or “No onecan eat just one” or “be the first” etc.
  82. 82. These are the traditional ways.Now days, internet is themodern tool for measuring theeffectiveness of anadvertisement.There are some types such as:
  83. 83. Integrated direct marketing This is an internet based tool where they have aresponse corner designed on the websites. Whenever the customers visit the sites, they fill uptheir contact details and give feedbacks. Thus the company supplies more information andsends newsletters and also gets the idea for furtheraction. But then its not that only online advertiser have thisfacility but then advertisers who don’t work online canuse coupons, discount vouchers, etc. to do this.
  84. 84. Analysis toolthere is an analysis tool available oninternet by using which the advertiserwill know how many customers arevisiting the site, who are shoppingonline, how many pages are viewed,etc. which in turn will help advertiserto measure the effectiveness.
  85. 85. Internet is the most easy, cheaper andcost effective way to measure theeffectiveness because here no money iswasted as the ad is only viewed whenthe customer want to view it where asin normal print method or using TV,the ad sometimes goes unwatched orunattended and viewed for the sake ofviewing.
  86. 86. Advertising Myths - Ifs andButs of the AdvertisingIndustry
  87. 87.  Advertising is considered as the best tool to makepeople aware of the product a company wants tosell. This is the best way to communicate with theaudience and to inform them about the productbut with a proper media selection and of coursetiming. But there are some myths which have beencreating problems in the path of successfuladvertising. We have tried to clarify somemisinterpretations about the ifs and buts ofthe advertising industry.
  88. 88. AdvertisingMyths
  89. 89. 1. Advertising works onlyfor some business
  90. 90.  Wrong. Advertising works for each and every company orbusiness it only it is executed properly. But due to bad advertising, many ad campaigns failto work in desired way and the people think thatadvertisements are not their cup of tea. They must understand one simple rule ofadvertising – it should be for right people at righttime through right medium on right place.
  91. 91. 2. Advertising is only neededwhen business is slow
  92. 92.  Wrong. Who said that the big and successful brands don’tadvertise their products? Advertising is a continuous process with somerenovations whenever needed. But, yes, when the business really is going slow orat its low, the advertising will have to be heavy andmore in number. This will help the product to improve its marketvalue and make people aware of the product.
  93. 93. 3. If the product is not selling,advertise it
  94. 94.  This is just not true. Just think about it. If you are selling a product which is not at all invogue, and no one is using it, how will it get clearfrom the shelf. You need to understand the need of customersand then sell the product. Advertise doesn’t mean selling anything you wantbut it means selling what customers wants.
  95. 95. 4. Advertise creates needs
  96. 96.  No. The people already had cassettes to playand listen to music they liked when theydidn’t have the option of CDs. It is technology which came in, and it wasonly then CDs were advertised and sold. Advertise only replaces the old things withnew, it doesn’t creates needs.
  97. 97. 5. Advertise effects persist fordecades
  98. 98. It’s the quality of the product whichpersists. Advertise no doubt helps increasingsales of the product and stays inmemory of the people, but minds arecaptured by the product itself.
  99. 99. 6. Humor in ads
  100. 100.  Sometimes humour gets in the way ofdelivering message properly to theconsumers but not every time it createsproblems. Many of the times it helps people toremember the ad and the product and helpscreating a positive attitude towards theadvertise.
  101. 101. 7. Sex sells
  102. 102. Not always. Some advertisers use sex for justincreasing the sales and forget that theproduct doesn’t need this type of ad atall.Remember once models Milind Somanand Madhu Sapre posed naked for ashoe brand. It was really irrelevant.
  103. 103. 8. Creativity is the most importantfactor
  104. 104. The ad should be no doubt creativeenough to attract consumers but it notthe only selling factor.There has to be good message todeliver, best media selection, and bestquality of the product to make theproduct and ad both successful.
  105. 105. 9. Advertising costs so much
  106. 106. Advertise needs money but one has toalso consider the results in forms ofincreased sales, increased reputation inindustry, recognition for product andalso increased market value of productwhich advertisements brings along.Lets consider advertising as investmentand not expense.
  107. 107. Thus these are the most commonmyths of the ad industry which areworking as hurdles in the way of brightfuture of advertisers and advertisingand we need to overcome these hurdlesand rise.
  108. 108. FutureofAdvertising
  109. 109. Advertising is still all about the ‘ifs andbuts of a product’, presented in aglowing rainbow like picture trying toattract consumers….but what is thefuture of advertising in coming years ?
  110. 110.  Lets go way back when the idea of advertising aproduct was regarded as some kind of a big deal. Then the advertisements were very limited, and it tooklots and lots of efforts to make a single advertisement. And the customers then, had no option other thanwatching those advertisements. Now, time has changed.
  111. 111.  Since last 20 years or lets just consider last 10 years,there has been a dramatic change in the world ofadvertisement. And this will not have a stopage in coming years. The change doesn’t mean that the advertising agencieswill all be shut down and firms will take over. It just means that the existing advertising agencies willhave to experience a change in the industry andwithin.
  112. 112.  They will be redefined and reinvented so that they cansurvive in the years ahead. The agencies which gave their number of years to thisindustry will also change for good, be capable to copeup with new challenges, new competition and newattitudes of the consumers. Once a article was written on change in advertising in1992 and the title then also suits now, it said -Advertising Age : Change or Die and very well said.To understand what is going to change and what willremain the same should be on the top of the list of theadvertisers.
  113. 113.  Now is the beginning of the digital era. The agencies had a system of having some few creativepeople who used to come with ideas for ads. That was the time when giving an ad in radio andtelevision was very expensive. But now no one minds actually about the cost for suchads because consumers are responding well. But now and onwards, internet and technology hastaken a front seat.
  114. 114.  Lets talk about the mass media. Today every tv serial, all movies running in theatresand all breaks in the radio channels have fillers calledads. But in the coming years, the ads can be shown to theconsumers only if they want to see and not because theadvertiser want them to see it. The cost of using internet and digital gadgets iseveryday dropping down so the customers don’t mindspending on these things other that fooling themselveswith the colorful advertisements.
  115. 115. The future will be in favour of theadvertisers and advertisements butonly at the cost of proper managementand proper use of digital technologiesand internet.
  116. 116. The Bond Nowdays, no one trusts the ad industry because thereis no transparency. The ethics are not being the part of ads anymore. Incoming years, the bond of trust has to be again rebuiltbetween the consumers and the advertisers. The advertisers will have to work hard to gain theconfidence of the customers.
  117. 117. More Creativity The creative people of the agencies should not limittheir creativity by only working with the old stylemenu. This is the time to explore with help of internet anddigital tools.
  118. 118. Differentiated Products The advertisers should launch a product which will becompletely different but excellent to use. Then only the voice will be heard.
  119. 119. Attract Talent More and more quality people should be hired todaywho will be leaders for tomorrow. They will be the people who will lead the industry inthe future with the best quality being coping up willeverything. Better HR practices should also be appointed. These are some points which may help advertisers tosurvive and survive in a better way in the future. The people who will not change can just not stay inthis new industry.