17616752 advertising sales management

8/9/2019 17616752 Advertising Sales Management

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ADVERTISING &SALES MANAGEMENT


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Importance of Advertising

Advertising is telling and selling

Though it is one of the several functions

of marketing, it has taken the form of anindependent discipline.


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The Meaning of Advertising

The term originates from the Latin adverto, whichmeans to turn round.

Advertising thus denotes the means employed todraw attention to any object or purpose.

It is a paid form of non personal presentation anpromotion of ideas, goods or services by anidentified sponsor.

Through advertisement, the advertiser intends to

spread his ideas about his products among thiscustomers and prospects.

Popularization is the basic aim of the advertisingactivity


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Key Components of the Advertising Job

Decide the advertising objectives to beaccomplished

Determine the target audience at whom the

message is to be aimed Decide the advertising appropriations Select the media Construct the actual advertisement in the

pretest its efficiency Coordinate the advertising effort with the rest of

the promotional Programmes


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Four Major Decision Areas

Deciding the Advertising Objectives

Deciding the Budget

Deciding the CopyDeciding the Media


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Deciding the Advertising

Objectives

Objectives are essential because it helps the marketer

know in advance what they want to achieve and it also

helps ensure that they are proceeding in the right

direction

Goals are also made real through objectives leading to

effective development of advertising Programmes for

meeting the objectives.

As Advertising became a business task it was imperative

that it was expected to yield results proportionate to theeffort and cost involved.


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Two distinct schools of

thought What should be or what could be the objectives of

advertising? One school has it that advertising must bring in more

sales and therefore advertising objectives shouldcertainly include sales growth.

The other school feels that advertising is aboutcommunication and therefore goals should be intendedto shape awareness and attitudes of consumers.

Advertising that does not sell is a waste David

Ogilvy Conflict Remains: Communicating certain ideas Vs

Direct Sales Task role


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Four Sets of

Constructs/Themes

The behavioral constructs e.g.. Trial

purchases and store visits

Attitude; Attitude change and attitudemeasurement

Awareness; creating awareness of new

products and ideas

Image creation and positioning (or

reinforcing)


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Areas of Ad Objectives

Introduction of new products in the market Expansion of the market for the existing products/brands Building a long term consumer franchise for the firm Countering Competition Reminding Customers Reassuring the customers by removing post purchase dissonance Building up brand image and company image Aiding the total selling function by taking the customer through all the

steps from awareness to purchase involved in the selling process Closing an immediate sale (Clincher ads)

Supporting other sales promotion activities Stimulating impulse buying Enthusing the channel to stock the product Supporting and supplementing the salesmans effort Supporting and supplementing the dealers selling effort


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AIDAAIDA AIDAAIDA

AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works

AttentionAttention AttentionAttention

InterestInterestInterestInterest

DesireDesire

DesireDesireAction!Action!Action!Action!


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AIDA (Awareness, Interest,

Desire, Action)

The AIDA sequence is conceptualized by

Strong (1925)

Here the consumer is moved along a linearcontinuum of internal states from

unawareness to awareness

Then interest is elicited and desire (for the

brand) is aroused. Finally, the consumer is stirred into action.


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Linear Communication and the

Hierarchy of Effects

Theories reflect the methods and assumptions ofcognitive psychology.

Analogy is drawn between the information

processing of computers and that of humans These research traditions have been drawn on by

models of advertising persuasion The consumers resistance is broken by an

accumulation of advertising effects hence theexpression hierarchy of effects The consumer processes information like a

computer sequentially according to rules


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Hierarchy of Effects

The hierarchy of effect represents compounding

probabilities (Percy et al. 2001)

It is also criticized on the grounds that it conceives

of advertising consumption as an essentially dyadicprocess transmitted through a media channel to an

individual viewer and consumed in social isolation

A further criticism is that it represents only high

involvement purchases: many or most purchasesare spontaneous and do not engage consumers in

such rational processing


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Social Process Vs Emotional

Process

Ineluctably social process (Ritson and Elliot,1999) we do not generally view ads in anexperimental booth-our interpretation of them isnormally framed by the social context in whichwe encounter them.

Elliot, 1998; Holbrook and Hirschman, 1982 Subsequent models have incorporated strongerelements of consumer emotionality into the

persuasion process to reflect the often irrationaland quirky motivations behind consumerbehavior.


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Cognition

Cognition (Thinking) refers to the rational appeal ofadvertising as for example, a motor car ad which includesdata on engine performance or utility features.

The affective stage refers to the emotional response of theconsumer to an ad. Not only does the ad seek to engage

with the consumer on a rational level by emphasizingproduct benefits; it also tries to elicit a positive emotionalresponse with pleasing imagery and alluring symbolism.

Motor car ads typically feature the engine and other productdata plus a carefully shot picture of the car and itsoccupants in a pleasing setting.

The emotional response is: desire, triggered byidentification. Finally conation refers to action: thecombination of rational and emotional appeal in the same admight act persuasively and motivate a purchase response.


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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksSome things we know aboutSome things we know about people.people.Some things we know aboutSome things we know about people.people.

People read what interests them,People read what interests them,sometimes its an ad.sometimes its an ad.(Gossage)(Gossage)

People are strategicPeople are strategic - they look out for- they look out fortheir own best interests.their own best interests.

People arePeople are bombarded with messagesbombarded with messages A key concern is getting through clutterA key concern is getting through clutter

People (and advertising) work fromPeople (and advertising) work frombothboth logiclogic andand emotionemotion



People arePeople are bombarded with messagesbombarded with messages A key concern is getting through clutterA key concern is getting through clutter

People (and advertising) work fromPeople (and advertising) work frombothboth logiclogic andand emotionemotion


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The Linear Model of

Communication

SENDER ENCODE MESSAGE DECODE RECEIVER

NOISE

NOISE


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Limitations of Linear Model

It is easy to interpret in such a way that meaning and message are understoodto be synonymous. This risks misconstruing the interpretative possibilities.

Oversimplification of the customers cognitive engagement with advertisingby emphasizing a singular message that has one unproblematic meaning.

The advent ofparallel processing: the assumption that computers and human

brains can process one bit of data at a time as been challenged by more complexmodels The implication that explicit attention must be given to an ad is erroneous. The linear model of communication with its sequential processing translates

conveniently into a model of persuasion if these stages are replaced withattitudinal or behavioral states (AIDA). A lot of research goes on in measuringthese states as they are an indicator of the likelihood of purchase (and therefore

an indicator of success of the advertisement campaign). Thus these are necessaryconditions for advertising to achieve its marketing goals but not sufficient. Eg. Aconsumer may be aware of ad or may even like an ad but that does not mean hewill buy the product.


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The Lavidge-SteinerThe Lavidge-SteinerLearning ModelLearning Model

The Lavidge-SteinerThe Lavidge-SteinerLearning ModelLearning Model


Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Begins withBegins with AwarenessAwareness Moves toMoves to ConvictionConviction

andand PurchasePurchase

Begins withBegins with AwarenessAwareness Moves toMoves to ConvictionConviction

andand PurchasePurchase

NOTE: Process may beNOTE: Process may bequite rapid and youquite rapid and youmay try before beingmay try before beingtotally convincedtotally convinced

NOTE: Process may beNOTE: Process may bequite rapid and youquite rapid and youmay try before beingmay try before beingtotally convincedtotally convinced

How people learn adsHow people learn ads How people learn adsHow people learn ads


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Key ConceptsThe Single Biggest Thing: Advertising dollarsAdvertising dollars have greathave greatelasticityelasticity Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising

is usually critical for success in the marketplaceis usually critical for success in the marketplace

The Wrong AdvertisingThe Wrong Advertisingis usually worthlessis usually worthless

AdvertisingAdvertising can becan be The Single Biggest ThingThe Single Biggest Thing It can probably impact salesIt can probably impact sales more than any othermore than any other

element of the marketing mixelement of the marketing mix.. And it isAnd it is the most fun!the most fun!

Advertising dollarsAdvertising dollars have greathave greatelasticityelasticity Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising

is usually critical for success in the marketplaceis usually critical for success in the marketplace

The Wrong AdvertisingThe Wrong Advertisingis usually worthlessis usually worthless

AdvertisingAdvertising can becan be The Single Biggest ThingThe Single Biggest Thing It can probably impact salesIt can probably impact sales more than any othermore than any other

element of the marketing mixelement of the marketing mix.. And it isAnd it is the most fun!the most fun!


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Key ConceptsThe Single Biggest Thing Advertising isAdvertising isjust a partjust a part ofofThe Five PsThe Five Ps All of IMC is importantAll of IMC is important However...However... Advertising dollarsAdvertising dollars are...are...

Often,Often, the biggest itemthe biggest item in the marketing budgetin the marketing budget The most visible partThe most visible part of marketing spendingof marketing spending

The most controllableThe most controllable marketing activitymarketing activity Advertising is oftenAdvertising is often the tail that wags thethe tail that wags the

marketing dogmarketing dog

Advertising isAdvertising isjust a partjust a part ofofThe Five PsThe Five Ps All of IMC is importantAll of IMC is important However...However... Advertising dollarsAdvertising dollars are...are...

Often,Often, the biggest itemthe biggest item in the marketing budgetin the marketing budget The most visible partThe most visible part of marketing spendingof marketing spending The most controllableThe most controllable marketing activitymarketing activity

Advertising is oftenAdvertising is often the tail that wags thethe tail that wags themarketing dogmarketing dog


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Key ConceptsCampaigns:

Origin of termOrigin of term

Military CampaignsMilitary Campaigns

Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns

Origin of termOrigin of term

Military CampaignsMilitary Campaigns

Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns


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Origin of termOrigin of term Origin of termOrigin of term Fr. campagne, It. campagna - open country

suited to military maneuvers Campaign - a series of military operations with

a particular objective in a war

Campaign - a series of organized planned

actions with a particular purpose, as forelecting a candidate.


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Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns

Victory is myVictory is myobjectiveobjective..War is myWar is mystrategystrategy..

WinstonWinstonChurchillChurchill

Victory is myVictory is myobjectiveobjective..War is myWar is mystrategystrategy..

WinstonWinstonChurchillChurchill


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Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns

a series of military operations with a particular

objective in a war Advertising and marketing use both

the language and the military

mindset

Example: a very popularmarketing book

a series of military operations with a particular

objective in a war Advertising and marketing use both

the language and the military

mindset

Example: a very popularmarketing book


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Political CampaignsPolitical Campaigns Political CampaignsPolitical Campaigns

Each single geographic orEach single geographic or

statewide campaign may havestatewide campaign may have

its ownits own objectives andobjectives and

strategiesstrategies which contributewhich contribute

to the overall campaign.to the overall campaign.

Each single geographic orEach single geographic or

statewide campaign may havestatewide campaign may have

its ownits own objectives andobjectives and

strategiesstrategies which contributewhich contribute

to the overall campaign.to the overall campaign.

In politics, as in war, you haveIn politics, as in war, you have

toto pick your battlespick your battles. National. National

political campaigns focus onpolitical campaigns focus on

key states and voter groupskey states and voter groups..

In politics, as in war, you haveIn politics, as in war, you have

toto pick your battlespick your battles. National. National

political campaigns focus onpolitical campaigns focus on

key states and voter groupskey states and voter groups.. The objectiveThe objective is a majorityis a majority

in the Electoral College.in the Electoral College.

The objectiveThe objective is a majorityis a majority

in the Electoral College.in the Electoral College.


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Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns

AdvertisingAdvertisingis a team sport!is a team sport!AdvertisingAdvertising

is a team sport!is a team sport!


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Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns

Structured andStructured andsequentialsequentialactivitiesactivities

An imaginativeAn imaginativere-integration ofre-integration of

new and existingnew and existingfactorsfactors Shared objectivesShared objectives

and strategiesand strategies

Structured andStructured andsequentialsequentialactivitiesactivities

An imaginativeAn imaginativere-integration ofre-integration of

new and existingnew and existingfactorsfactors Shared objectivesShared objectives

and strategiesand strategies

A team effortA team effort A team effortA team effort


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Key ConceptsNext, well show you four billboard ads fora telecom company in Kansas City - BirchTelecom

Then, well discuss some of the basic

common elements needed in an

advertising campaign

Heres the first ad...

Advertising Campaign:


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Key Concepts



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Key Concepts



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Key Concepts



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Key Concepts



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What were the common elements?What were the common elements?

1. ____________________________1. ____________________________

2. ____________________________2. ____________________________3. ____________________________3. ____________________________

4. ____________________________4. ____________________________

5. ____________________________5. ____________________________

6. ____________________________6. ____________________________

What were the common elements?What were the common elements?

1. ____________________________1. ____________________________

2. ____________________________2. ____________________________3. ____________________________3. ____________________________

4. ____________________________4. ____________________________

5. ____________________________5. ____________________________

6. ____________________________6. ____________________________

Key Concepts


graphic look

strategic messagebenefit statement

brand personality

executional elements - the dog

anything else?


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Campaigns are built withCampaigns are built with Campaigns are built withCampaigns are built withKey Concepts


Plans & StrategiesPlans & StrategiesPlans & StrategiesPlans & Strategies


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Key ConceptsPlans & Strategies:

Organized Actions andOrganized Actions and

Imaginative ReintegrationImaginative Reintegration

Plans & Strategies are a combination of:Plans & Strategies are a combination of: Tightly organized planned actionsTightly organized planned actions Unique strategic configurationsUnique strategic configurations

Plans may contain strategiesPlans may contain strategies Strategies need plans to be implementedStrategies need plans to be implemented

Organized Actions andOrganized Actions and

Imaginative ReintegrationImaginative Reintegration

Plans & Strategies are a combination of:Plans & Strategies are a combination of: Tightly organized planned actionsTightly organized planned actions Unique strategic configurationsUnique strategic configurations

Plans may contain strategiesPlans may contain strategies Strategies need plans to be implementedStrategies need plans to be implemented


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Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)

In business as on the battlefield, the object ofIn business as on the battlefield, the object of

strategystrategyis to bring about the conditions most favorableis to bring about the conditions most favorable to ones own side.to ones own side.

In strategic thinking ,In strategic thinking ,

one first seeks a clear understandingone first seeks a clear understandingof the particular character of each element of aof the particular character of each element of a

situation,situation,

and then makes the fullest possible useand then makes the fullest possible use

of human brainpower to restructure the elementsof human brainpower to restructure the elements

In business as on the battlefield, the object ofIn business as on the battlefield, the object of

strategystrategy

is to bring about the conditions most favorableis to bring about the conditions most favorable to ones own side.to ones own side.

In strategic thinking ,In strategic thinking ,

one first seeks a clear understandingone first seeks a clear understandingof the particular character of each element of aof the particular character of each element of a

situation,situation,

and then makes the fullest possible useand then makes the fullest possible use

of human brainpower to restructure the elementsof human brainpower to restructure the elementsin the most advanta eous wa .


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Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)

Phenomena and events in the real worldPhenomena and events in the real world

do not always fit a linear model.do not always fit a linear model.Hence, the most reliable means of dissecting aHence, the most reliable means of dissecting a

situationsituation

into its constituent parts and then reassembling theminto its constituent parts and then reassembling them

in the desired pattern is not a step-by-stepin the desired pattern is not a step-by-stepmethodology such as systems analysis.methodology such as systems analysis.

Rather, it isRather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinkingtool,,the human brain.the human brain.

Phenomena and events in the real worldPhenomena and events in the real world

do not always fit a linear model.do not always fit a linear model.

Hence, the most reliable means of dissecting aHence, the most reliable means of dissecting a

situationsituation

into its constituent parts and then reassembling theminto its constituent parts and then reassembling them

in the desired pattern is not a step-by-stepin the desired pattern is not a step-by-stepmethodology such as systems analysis.methodology such as systems analysis.

Rather, it isRather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinkingtool,,the human brain.the human brain.


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Key ConceptsPlans & Strategies: Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)

No matter how difficult or unprecedented theNo matter how difficult or unprecedented the

problem,problem,a breakthrough to the best possible solutiona breakthrough to the best possible solution

can come only from a combination of rational analysiscan come only from a combination of rational analysis

based on the real nature of things,based on the real nature of things,

andandimaginative reintegrationimaginative reintegration

of all the different items into a new patternof all the different items into a new pattern

No matter how difficult or unprecedented theNo matter how difficult or unprecedented the

problem,problem,

a breakthrough to the best possible solutiona breakthrough to the best possible solution

can come only from a combination of rational analysiscan come only from a combination of rational analysis

based on the real nature of things,based on the real nature of things,

andandimaginative reintegrationimaginative reintegration

of all the different items into a new patternof all the different items into a new pattern

usingusingnonlinear brainnonlinear brain

powerpower

.

usingusingnonlinear brainnonlinear brain

powerpower

.


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Key ConceptsPlans & Strategies: Now lets talk about PlansNow lets talk about Plans Marketing Plans are written:Marketing Plans are written:

By the AdvertisersBy the Advertisers By their Advertising AgenciesBy their Advertising Agencies

Creative Plans may be called:Creative Plans may be called: Creative strategiesCreative strategies Creative blueprintsCreative blueprints Creative platformsCreative platforms

Creative briefsCreative briefs And sometimes the word communicationAnd sometimes the word communication replacesreplaces

the word creativethe word creative


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Key ConceptsPlans & Strategies: Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have StrategiesMarketing Plans may also have Strategies

and Plans for Sales Promotion and PRand Plans for Sales Promotion and PR

The Campaign will also haveThe Campaign will also have A Media Strategy - andA Media Strategy - and A Media PlanA Media Plan

Media Departments write Media PlansMedia Departments write Media Plans The Advertising Strategy determines theThe Advertising Strategy determines the

Creative Objective and the Media ObjectiveCreative Objective and the Media Objective

Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have StrategiesMarketing Plans may also have Strategies

and Plans for Sales Promotion and PRand Plans for Sales Promotion and PR

The Campaign will also haveThe Campaign will also have A Media Strategy - andA Media Strategy - and A Media PlanA Media Plan Media Departments write Media PlansMedia Departments write Media Plans

The Advertising Strategy determines theThe Advertising Strategy determines theCreative Objective and the Media ObjectiveCreative Objective and the Media Objective


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Key ConceptsPlans & Strategies: Heres a graphic representationHeres a graphic representation Heres a graphic representationHeres a graphic representation

Media StrategyTo be determined

Creative StrategyTo be determined

Market Strategy/MediaTarget audience W 18-49

Market Strategy/CreativeEstablish brand as superior

Media Objective

Deliver Advertising toTarget audience W 18-49

Creative Objective

Establish brand as superior

Marketing ObjectiveSell one million of product


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Key ConceptsPlans & Strategies: Whos going to manage all of this?Whos going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing

Responsible for MarketingResponsible for Marketing

Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget

Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients

At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans

Whos going to manage all of this?Whos going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing

Responsible for MarketingResponsible for Marketing Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget

Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients

At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans


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Key ConceptsPlans & Strategies: Agencies turn strategies into ideasAgencies turn strategies into ideas

And they turn those ideas into adsAnd they turn those ideas into ads Creative people actually make the adsCreative people actually make the ads

Copywriters and art directorsCopywriters and art directors Agencies turn plans into campaignsAgencies turn plans into campaigns

Clients and account management determine needs andClients and account management determine needs and

budgetsbudgets

Media departments turn budgets and strategies into MediaMedia departments turn budgets and strategies into MediaPlansPlans

Agencies turn strategies into ideasAgencies turn strategies into ideas

And they turn those ideas into adsAnd they turn those ideas into ads Creative people actually make the adsCreative people actually make the ads

Copywriters and art directorsCopywriters and art directors Agencies turn plans into campaignsAgencies turn plans into campaigns

Clients and account management determine needs andClients and account management determine needs and

budgetsbudgets

Media departments turn budgets and strategies into MediaMedia departments turn budgets and strategies into MediaPlansPlans


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Key ConceptsPlans & Strategies:Plans & Strategies:Plans & Strategies:Plans & Strategies: To make plans and strategies work, a lot ofTo make plans and strategies work, a lot of

people have to work together.people have to work together.

And that means they have to speakAnd that means they have to speak

To make plans and strategies work, a lot ofTo make plans and strategies work, a lot of

people have to work together.people have to work together.

And that means they have to speakAnd that means they have to speak

The sameThe same

language!language!The sameThe same

language!language!


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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: The Language of Marketing & AdvertisingThe Language of Marketing & Advertising The Language of Marketing & AdvertisingThe Language of Marketing & Advertising

Original conceptsOriginal concepts came fromcame from militarymilitary

Now the business of marketing has itsNow the business of marketing has itsownown intellectual infrastructureintellectual infrastructure - a way of- a way of

thinking and a way of talkingthinking and a way of talking

UnderstandingUnderstanding

thethe

specific meaningsspecific meanings

ofof

keykey

wordswords andand conceptsconcepts isis criticalcritical

Yes, it will be on the test!Yes, it will be on the test!

Original conceptsOriginal concepts came fromcame from militarymilitary

Now the business of marketing has itsNow the business of marketing has itsownown intellectual infrastructureintellectual infrastructure - a way of- a way of

thinking and a way of talkingthinking and a way of talking

UnderstandingUnderstanding thethe specific meaningsspecific meanings ofofkeykey

wordswords andand conceptsconcepts isis criticalcritical

Yes, it will be on the test!Yes, it will be on the test!


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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Mission:Mission: Overall goals & valuesOverall goals & values youryour

reason for beingreason for being Objective:Objective: WhatWhat you want to accomplishyou want to accomplish..

Strategy:Strategy: HowHow you are going to do it.you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be

specific action that helps meet strategicspecific action that helps meet strategicgoals - tactics should begoals - tactics should be on strategy.on strategy.))

Mission:Mission: Overall goals & valuesOverall goals & values youryourreason for beingreason for being

Objective:Objective: WhatWhat you want to accomplishyou want to accomplish..

Strategy:Strategy: HowHow you are going to do it.you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be


Remember,Remember, objectives first, thenobjectives first, thenstrategy. (If you dont know wherestrategy. (If you dont know whereyoure going, any road will take youyoure going, any road will take you

there.)there.)

Remember,Remember, objectives first, thenobjectives first, thenstrategy. (If you dont know wherestrategy. (If you dont know whereyoure going, any road will take youyoure going, any road will take you

there.)there.)


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RememberRememberthe acronymthe acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics

RememberRememberthe acronymthe acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics

Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Mission:Mission: Overall goals & valuesOverall goals & values youryour

reason for beingreason for being Objective:Objective: What you want to accomplishWhat you want to accomplish..

Strategy:Strategy: How you are going to do it.How you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be


Mission:Mission: Overall goals & valuesOverall goals & values youryourreason for beingreason for being

Objective:Objective: What you want to accomplishWhat you want to accomplish..

Strategy:Strategy: How you are going to do it.How you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be



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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: The Value Ladder

Consumer Benefit

Product Benefit

FeatureAttribute

Benefit

Value

The Value Ladder

Kids like it

Easy to serve

E-Z Open glass jar

Good food for my family

Im a good mom

Apple sauce is madefrom apples

Laddering


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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some More Important WordsSome More Important Words Some More Important WordsSome More Important Words Target audience -Target audience - person or group toperson or group to

whom advertising is directedwhom advertising is directed Primary target -Primary target - the target audiencethe target audience Secondary target -Secondary target - usually, the tradeusually, the trade

Demographics -Demographics - statistical description ofstatistical description of

target audiencetarget audience Psychographics -Psychographics - psychological traits ofpsychological traits of

target audiencetarget audience

Target audience -Target audience - person or group toperson or group towhom advertising is directedwhom advertising is directed Primary target -Primary target - the target audiencethe target audience Secondary target -Secondary target - usually, the tradeusually, the trade

Demographics -Demographics - statistical description ofstatistical description of

target audiencetarget audience Psychographics -Psychographics - psychological traits ofpsychological traits of

target audiencetarget audience


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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some More Important WordsSome More Important Words Some More Important WordsSome More Important Words Sales Promotion -Sales Promotion - use of incentives (a smalluse of incentives (a small

bribe) to develop or stimulate salesbribe) to develop or stimulate sales Public Relations (PR)Public Relations (PR) - publicity through- publicity through

non-paid medianon-paid media Publics -Publics - a PR version of target audiencea PR version of target audience

Situation Analysis -Situation Analysis -

beginning section of planbeginning section of plan

where current situation is evaluatedwhere current situation is evaluated SWOT Analysis -SWOT Analysis - Strengths, Weaknesses,Strengths, Weaknesses,

Opportunities, and ThreatsOpportunities, and Threats

Sales Promotion -Sales Promotion - use of incentives (a smalluse of incentives (a smallbribe) to develop or stimulate salesbribe) to develop or stimulate sales

Public Relations (PR)Public Relations (PR) - publicity through- publicity throughnon-paid medianon-paid media Publics -Publics - a PR version of target audiencea PR version of target audience

Situation Analysis -Situation Analysis -

beginning section of planbeginning section of plan

where current situation is evaluatedwhere current situation is evaluated SWOT Analysis -SWOT Analysis - Strengths, Weaknesses,Strengths, Weaknesses,

Opportunities, and ThreatsOpportunities, and Threats


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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some Important Media WordsSome Important Media Words Some Important Media WordsSome Important Media Words Reach -Reach - percentage of the audience exposedpercentage of the audience exposed

to an advertising messageto an advertising message FrequencyFrequency - average number of times- average number of times

audience has had the opportunity to see theaudience has had the opportunity to see themessagemessage

GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the- the sum of theratings points (a point is one percent of theratings points (a point is one percent of theaudience)audience)

TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset,- this is a subset,measuring rating points for the target groupmeasuring rating points for the target group

Reach -Reach - percentage of the audience exposedpercentage of the audience exposedto an advertising messageto an advertising message

FrequencyFrequency - average number of times- average number of timesaudience has had the opportunity to see theaudience has had the opportunity to see themessagemessage

GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the- the sum of theratings points (a point is one percent of theratings points (a point is one percent of theaudience)audience)

TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset,- this is a subset,measuring rating points for the target groupmeasuring rating points for the target group


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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some More Important Media WordsSome More Important Media Words Some More Important Media WordsSome More Important Media Words CPM (Cost per thousand) -CPM (Cost per thousand) - how much it costshow much it costs

to reach a thousand people (the M is theto reach a thousand people (the M is theRoman numeral for a thousand)Roman numeral for a thousand)

CPP (Cost per point)CPP (Cost per point) - how much it costs to- how much it costs tobuy a point of the broadcast audiencebuy a point of the broadcast audience

ShareShare - percentage of an audience tuned to a- percentage of an audience tuned to aspecific stationspecific station

CPM (Cost per thousand) -CPM (Cost per thousand) - how much it costshow much it coststo reach a thousand people (the M is theto reach a thousand people (the M is the

Roman numeral for a thousand)Roman numeral for a thousand) CPP (Cost per point)CPP (Cost per point) - how much it costs to- how much it costs to

buy a point of the broadcast audiencebuy a point of the broadcast audience ShareShare - percentage of an audience tuned to a- percentage of an audience tuned to a

specific stationspecific station

OK, now that we know how to talk aboutOK, now that we know how to talk aboutadvertising, lets talk aboutadvertising, lets talk about how it workshow it works

OK, now that we know how to talk aboutOK, now that we know how to talk aboutadvertising, lets talk aboutadvertising, lets talk about how it workshow it works


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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksLets talk aboutLets talk about how advertisinghow advertising

works.works. Next, well cover...Next, well cover...

Lets talk aboutLets talk about how advertisinghow advertising

works.works. Next, well cover...Next, well cover...

Some things we know aboutSome things we know about peoplepeopleSome things we know aboutSome things we know about

advertising messagesadvertising messages

The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model AIDAAIDA

Some things we know aboutSome things we know about peoplepeopleSome things we know aboutSome things we know about

advertising messagesadvertising messages

The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model AIDAAIDA


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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksSome things we know aboutSome things we know about people.people.Some things we know aboutSome things we know about people.people.



People arePeople are bombarded with messagesbombarded with messages

A key concern is getting through clutterA key concern is getting through clutterPeople (and advertising) work fromPeople (and advertising) work from

bothboth logiclogic andand emotionemotion



People arePeople are bombarded with messagesbombarded with messages

A key concern is getting through clutterA key concern is getting through clutterPeople (and advertising) work fromPeople (and advertising) work from

bothboth logiclogic andand emotionemotion


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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksSome things we know aboutSome things we know about

AdvertisingAdvertising

Some things we know aboutSome things we know about

AdvertisingAdvertisingBrandingBranding andand AdvertisingAdvertising

BrandingBranding = overall brand equity building= overall brand equity building AdvertisingAdvertising = specific messages and goals= specific messages and goals

AdvertisingAdvertising contributes tocontributes to BrandingBranding

AdvertisingAdvertising is concerned with:is concerned with: The Advertising MessageThe Advertising Message Media PlanningMedia Planning andand PlacementPlacement

BrandingBranding andand AdvertisingAdvertising

BrandingBranding = overall brand equity building= overall brand equity building AdvertisingAdvertising = specific messages and goals= specific messages and goals

AdvertisingAdvertising contributes tocontributes to BrandingBranding

AdvertisingAdvertising is concerned with:is concerned with: The Advertising MessageThe Advertising Message Media PlanningMedia Planning andand PlacementPlacement


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AnAn Advertising Communication ModelAdvertising Communication Model AnAn Advertising Communication ModelAdvertising Communication Model


Feedback

MESSAGE

Advertising Communication Model

Advertiser

Sender(Encoder)

Audience

Receiver(Decoder)

Note it isNote it is more difficult for the audience tomore difficult for the audience tocommunicate backcommunicate back to the advertiser.to the advertiser. FeedbackFeedback is one purpose ofis one purpose ofMarket ResearchMarket Research

Note it isNote it is more difficult for the audience tomore difficult for the audience tocommunicate backcommunicate back to the advertiser.to the advertiser. FeedbackFeedback is one purpose ofis one purpose ofMarket ResearchMarket Research

Some things we know aboutSome things we know aboutAdvertisingAdvertising

Some things we know aboutSome things we know aboutAdvertisingAdvertising

Deciding the Advertising Budget


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g g g(how much should a company

spend?)

No Standard Formula or Norm

Varies from industry to industry

Varies from company to companyVaries from company to company within same

industry

Varies within same company over time


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General Practices in Budgeting

Competitive Parity (Competitor Standards)

Affordability (Small Firms)

Fixed Percentage of Turnover (1-2% ofturnover; ignores varying requirements of

advertising effort at various stages of PLC)

Based on Functions to be


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Based on Functions to be

performed

Advertising Objectives are Pinpointed

Their role in achieving the overall marketing

objectives is decided

Advertising appropriations are decided on a

market to market, product to product and

brand to brand basis


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Regression equation The regression equation deals with the following variables:

The unknown parameters denoted as . This may be a scalar or a vector of length k. The independent variables, X. The dependent variable, Y.

Regression equation is a function of variables X and .

Y = f (X, ) The user of regression analysis must make an intelligent guess about this function. Sometimes the form of

this function is known, sometimes he or she must apply a trial and error process. Assume now that the vector of unknown parameters, is of length k. In order to perform a regression analysis

the user must provide information about the dependent variable Y: If the user performs the measurement Ntimes, where N< k, regression analysis cannot be performed: there

is not provided enough information to do so. If the user performs Nindependent measurements, where N= k, then the problem reduces to solving a set of

Nequations with Nunknowns . If, on the other hand, the user provides results ofNindependent measurements, where N> k, regression

analysis can be performed. Such a system is also called an overdetermined system;

Regression coefficient - when the regression line is linear (y = ax + b) the regressioncoefficient is the constant (a) that represents the rate of change of one variable (y) asa function of changes in the other (x); it is the slope of the regression line

Regression Analysis


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Regression Analysis

Based on historical data

Time Series Data: Records of past advertising expenditures and salesover time

Cross Sectional Data: Records of advertising expenditure and salesfor a specific period over different markets

Most firms using Regression Analysis go for Time Series Data

The aim is to predict dependent variable-sale or market share

The advertising expenditure level would be one of independentvariables.

The regression coefficient corresponding to the advertising variableserves as a measure of the short term response to advertising. it is theslope of the regression line

The Adaptive Control Model


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The Adaptive Control Model

The model recognizes that the budget decisions need updating

because the relationship between the advertising and sales

changes over time with changes in market conditions.

This model starts with a sales response curve and locates an

optimal level of ad expenditure. The firm will now experiment with non optimal levels in select

test markets. This is done to get more knowledge about the

sales response curve set originally.

The new information therefore coming out of experimental

marketing is added to the sales response function for arriving atcurrent optimal advertising expenditure rate.


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The Compromise

A compromise budget is arrived at after considering thebasic questions:

What is the audience to be reached by advertising? What is its size, location etc?

What are the media available for delivering the advertisingmessage?

Of the available media which media or media combinationare likely to most cost effective?

What are the features of the proposed campaign? Does thecampaign involve single release of an advertisement or

repeat releases? What is the releases proposed?

Therefore, the Advertising Budget is a function of: AdvertisingObjectives, Media Decisions and Copy Decisions


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Deciding the Copy/Layout

Copy:

Written Matter

Pictures

Labels

Logo Design

Copy is synonymous with layout

Copy development has become the task of professional advertisingagencies;

however copy development becomes successful only when there is closeinteraction between the advertiser and the agency

Main Steps in Copy


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Main Steps in Copy

Development

Facts Finding Stage

What is the central issue to be tackled? What is the issue to which the total campaign has to

address itself? What are the overall communication objectives? What is the specific communication objective of the

proposed campaign?

Advertiser and the agency have to work out literally together The agency becomes an insider as far as the advertiser is

concerned. The agency gathers and analyses all pertinent data to come to

grip with the problem and to decide the course to be taken


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Idea Finding Stage

Tentative ideas are developed under different idea heads. They are further processed, developed and screened. The less promising ones are eliminated. To develop ideas different routes are adopted. Interviewing a selected

sample of target audience is a route normally taken for eliciting ideas.

Sometimes the agencies also attempt to focus on group interviewingand brainstorming. All processes are aids to get access to some creative ideas on which

the ad man can work further. He has to further develop the theme andtotal advertisement story.

He has to decide: kind of source for conveying message, frame

message, its style and structure. He normally the ad man/agency comes up with a number of copy

alternatives and places them before the advertiser. The copies are normally tested in selected segments of market before

final decision on choice of copy is made.


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The Main elements of a copy

Message Message Structure

Message Sidedness (One side argument or two side argument) Order of Presentation Climax Order (Strong points are placed at the end-applies to high interest material); Anti-

Climax (Strong points placed at the beginning-applies to low interest material); PyramidalOrder (important points presented at the middle-effect is least persuasive)

Stating Conclusion in a Message (Should there be an explicit conclusion? It is preferable to

leave something out of the message for the audience to guess) Message Appeal

Product oriented appeals Physical Features oriented appeal Function oriented appeal Brand to Brand comparison appeal

Consumer oriented appeals Consumer Oriented appeal (Attitude, Class, Lifestyle)

Appeals evoking pleasant sensations and moods Appeals evoking sense of luxury and distinctiveness Humor appeals Fear appeal


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Source The Credibility of the Source

Likeability/Attractiveness of the Source The Sources approach to the views and

Disposition of the audience

The Main elements of a copy


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Snapshots

Source tone: soothing, authoritative, upbeat;

familiarity or lack of it.

Color: Blue-Cold, used to create distance, blue

skies. Red-Intense. Orange (Warm). Black(Mysterious, Sinister), Purple (Luxury). Colors can

be treated as metaphors for nature: green grass,

brown earth, red blood and passion

Serif Old Roman Style: Tradition and Authority Times, Century Schoolbook (Transitional),


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Media Selection

Deciding on:

Reach (% of people in the target market exposed to an adcampaign during a given period)

Frequency (the no. of times the average person isexposed to an advertising message in a given period) Media Impact (qualitative value of a message exposure

through a given medium) Eg. Radio Vs TV

More the reach, frequency and media impact advertiserseeks the higher the advertising budget will have to be.

Choosing Among Major Media Types


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Profiles of Major Media Types

MEDIUM ADVANTAGES LIMITATIONS

Newspapers Flexibility, Timeliness, GoodLocal Market; BroadAcceptance; HighBelievability

Short Life; Poor ReproductionQuality

Television Combines sight, sound, andmotion; appealing tosenses; high attention; highreach

High absolute cost; lessaudience selectivity

Direct Mail Audience Selectivity,Flexibility; No Competition;

Personalization

Relatively High Cost; JunkMail Image

Radio Mass Use; high geographicand demographicselectivity; low cost

Audio Presentation only;lower attention thantelevision; non standardizedrate structures; fleeting

exposure


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Magazines High geographic anddemographic

selectivity; credibilityand prestige; highquality production; longlife

Long ad purchase leadtime; some waster

circulation; noguarantee of position

Outdoor Flexibility; high repeatexposure; low cost; lowcompetition

No audience selectivity;creative limitations


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Selecting Specific Media Vehicles (Specific

Magazines, Television Shows, Radio

Programmes)

Deciding on Media Timing (Scheduling the

advertising over the course of a year)

Advertising Evaluation


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Advertising EvaluationMeasuring the communication effect of an ad-copy testing-tells whether the ad is

communicating well.

Methods of Advertising Pretesting: Direct Rating (Exposes to consumer panel to alternative ads and asks them

to rate the ads) Portfolio Tests (Consumers view or listen to a portfolio of an

advertisements taking as much as time as they need. They are then askedto recall all the ads and their content, aided or unaided by the interviewer. )

Laboratory Tests (Physiological Reactions are measured: heartbeat, B P,pupil dilation, perspiration. These help measure ads attention getting powerbut reveal little on belief, attitude or intentions)

Post Testing Methods: Recall Tests (Recall everything they can about the advertisers and products

they saw) Recognition Tests (Eg. Readers of a given issue of a magazine are asked

to point out what they recognize as having seen before)


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Measuring the Sales Effect

What sales are caused by an ad that increases brandawareness by 20% brand preference by 10%?

Sales effect is harder to measure than communication effect Sales are effected by multiple factors apart from advertising:

product features, price, availability etc.

Methods:

Past Sales comparison with past advertising expenditures

Varying Advertising Spends (keeping market areas andmarketing efforts constant)

17616752 advertising sales management

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