Advertising and Sales Promotion Management

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ADVERTISING SALES PROMOTION MANAGEMENT

• Dr. ANANDA KUMAR
• Professor
• Department of Mgt. Studies
• Christ College of Engg. Tech.
• Puducherry, India.
• Mobile [phone]
• E-mail searchanandu_at_gmail.com

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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.

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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.

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MARKETING MIX
MARKETING MIX
PRODUCT Product Variety Quality Design Features Br
and Name Packaging Sizes Services Warranties Retur
ns
PLACE Channels Coverage Assortments Locations Inv
entory Transport
Target Market
PROMOTION Sales promotion Advertising Personal
Selling Public relation/ Publicity
PRICE List price Discounts Allowances Payment
period Credit terms
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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.

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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.

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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.

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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.

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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.

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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.

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Salient Features / Phrases of Advertising

• Any form
• Paid form
• Non-Personal
• Goods, Services, Ideas
• Identified Sponsor
• Information
• Persuasion
• Target Audience

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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.

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Cont

1. 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.
2. The sponsor of advertisement (i.e., one
   responsible for it) is usually identified in the
   advertisement itself.
3. It is undertaken to influence the buying
   behaviour of the customers.
4. It guides the buyers towards a more satisfactory
   expenditure of their hard earned money.

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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• 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

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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.

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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.

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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 products
  name before the public. A much softer selling
  approach is used, or only the name may be
  mentioned in reminder type advertising.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.,

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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Internal factors

• 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.

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Cont..

• Nature of demand
• Extent of demand
• Name of competition
• Environmental climate
• Stage of product life cycle
• Financial resources of the firm

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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.

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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.

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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?

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Advertising Industry

• The advertising industry consists of three
  principal groups
• (a) Sponsors
• (b) Media and
• (c) Advertising agencies or advertising
  departments.

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STRUCTURE OF THE ADVERTISING INDUSTRY
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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.

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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.

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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)

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Advertising Agencies in India

• Rajiv Menon Productions (Horlicks, Fanta)
• J.S. Films (Preethi Chef Pro Mixie,
  FairLovely, Milo)
• OM (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)

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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

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(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.

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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.

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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 agencys experience with many
  other products and clients.

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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 companys own
  department to produce effective results.

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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.

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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.

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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

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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.

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2. Advertising as a Percentage of Sales

• Advertising Allocation Rs. Sales
• A pre-determined percentage of the firms past
  sales revenue (or projected sales revenue) is
  allocated to advertising.

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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.

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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 competitors
  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.

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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.

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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 organizations 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.

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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 advertisers reaching
  the maximum number of these buyers include both
  his current and prospective customers.

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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

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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

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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.

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• 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.

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• 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.

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• 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.

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• 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.

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• 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?

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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.

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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.

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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.

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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

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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.

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Principles of Good Design and Layout

• 1. Balance
• 2. Proportion
• 3. Contrast and Emphasis
• 4. Eye Movement
• 5. Unity or Harmony

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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

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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).

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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 clients 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.

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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

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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,

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• Attention Value
• a. Use of Pictures
• b. Use of Display Type or Heading
• c. Boarder etc
• d. Price Quotation
• e. Reply Coupons

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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

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• 6. Human Interest Copy
• a. Humorous Copy
• b. Fear Copy
• c. Story Copy

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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.

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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 companys 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.

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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

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METHODS OF MEASURING ADVERTISING EFFECTIVENESS

• 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

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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.

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Copy Testing

• 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?

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Types of Tests

• 1. Pre-test methods
• 2. Post-test methods
• 3. Concurrent methods

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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.

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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

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2. Post-test methods

• 1. Recognition Test
• 2. Recall or Impact Test
• 3. Psychological Analysis

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3. Concurrent Methods

• 1. Consumer diaries
• 2. co-incidental surveys and
• 3. Electronic devices.

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• 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.

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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.

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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

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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.

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Media Objectives

• How is a media plan developed? Media planning is
  a four-step process which consists of
• setting media objectives in light of marketing
  and advertising objectives,
• 2) developing a media strategy for implementing
  media objectives,
• 3) designing media tactics for realizing media
  strategy, and
• 4) proposing procedures for evaluating the
  effectiveness of the media plan.           

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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.

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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.

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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.

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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.

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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

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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.

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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.

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MEDIA REACH FREQUENCY

• Frequency Total exposures / Reach
• Example
• Survey sample size 10 households with TV
• Survey period 4 weeks
• TV programme P

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(No Transcript)
117

• Total Exposures 20
• Households that watched TV 8
• programme (reach)
• Frequency Total exposures / Reach
• 20 / 8
• 2.5

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IMPORTANT FACTORS IN DETERMINING FREQUENCY LEVELS

• Marketing Factors
• Message Factors
• Media Factors

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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

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2. Message Factors

• a. Message complexity
• b. Message uniqueness
• c. New campaigns
• d. Creation of image
• e. Message variation

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3. Media Factors

• a. Clutter
• b. Attentiveness
• c. Number of media used

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FACTORS GOVERNING THE CHOICE OF MEDIA

• Availability of Funds
• Nature of Product
• Geographical Coverage
• Demographic factors

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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).

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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.

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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
  societys expectations
• vary by person, and by situation
• everyone develops their own code of ethics

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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
  doesnt exist.

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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.

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Internet as an Advertising Medium

• There are two primary ways to advertise on the
  Internet
• Register your Web site with major search engines
  so Internet visitors can find you.
• 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.

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• The Internet offers many advertising options with
  messages delivered through
• - Website Advertising
• - Email Advertising

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Website Advertising

• Advertising tied to a users visit to a website
  accounts
• for the largest spending on Internet advertising.
  

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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.

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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.

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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.

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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.

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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.

136
PAGE HITS

• because one page load does not equal one hit it
  is an inaccurate measure of a websites
  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.

137
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.

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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.

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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.

140

• 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).

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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.

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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.

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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.

144
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.

145
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

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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.