advertising management-1st, 2nd & 3rd topic

8/7/2019 ADVERTISING MANAGEMENT-1ST, 2ND & 3RD TOPIC

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Advertising management

MM-301


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PREVIEWy Meaning of advertising

y Definition of advertisingy Features of advertising

y Functions of advertising

y Types of advertising

y

What Makes an Ad Effective?y Importance of advertising

y Benefits of Advertisement

y Harms done by Advertisement

y Role of Advertisement in Marketing Mix

y Aspects of Advertisement Economic Aspects

Social Aspects

Legal Aspects

Ethical Aspects


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CONCEPT OF ADVERTISING

y MEANING & DEFENITION

y FEATURES

y FUNCTIONS


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MEANING

y The term advertising is derived from a Latin word Advertere whichmeansto turn attention towards a specific thing.

y Dictionary meaning of advertising is to announce publicly. Thusadvertising is a paid form of non personal communication with targetaudience throughmass media such as T.V., newspapers, magazines ,

telephone , internet etc.

DefinitionAccording to A.M.A:-

y Advertising is any paid form of non personal presentation & promotion ofgoods, services or ideas by an identified sponsor.

AccordingTo Philip Kotler:

y Advertising is non personal from of communication conducted throughpaid media under clear sponsorship.


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Features of Advertising

yPaid form

yNon personal

yIdentified sponsor

yAny form

yGoods , services or ideas

yCan be used by any organization

ySpeedy communication

y mass communication

yIt is an art

yControlled

yImportant element of promotion-mix


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Functions of Advertising

Primary function Secondary function Social function

1.Creates demand

2.Announces for new product

or service

3. Promotes new uses of

the product

4. Informs about changes

5. Helps in understanding uses6. Reminds users

7. Creates brand preference

8. Helps to neutralize

competition

1. Boost the morale of

Employees

2. Supports salesmen

3. Reaches customers

left by s.m

4. Helps procure betteremployees

5. Announces location of

dealers & stockist

1.Improves standard of living

2.creates awareness

3.creates employment

4.Educates consumers

5.solves social problems6.Circulates govt notification

7.Other social functions


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Advertising is a form of communication

that typically attempt to persuade,potential to purchase or to consume more

of a particular brand of product or service.


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Types ofadvertising

Advertising on basis of geographical area1. Local/regional

2. National

3. Global/international

Advertising on basis of target-audience1. Consumer ads2. Industrial ads

3. Professional ads

4. Trader ads

Advertising on basis of demand influence level

1. Primary demand creation ads2. Selective demand stimulation ads

Advertising to promote brand image1. Corporate ads

2. Product ads


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Local Advertisement.


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National Advertising


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International Marketing


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Advertising directed toward professionals

such as doctors, dentists, and pharmacists,etc., who are in a position to promoteproducts to their patients or customers.


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Consumer advertisement.


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advertising directed at commercial business

customers. The advertised products are rawmaterials, components, or equipment needed inthe production or distribution of other goods

and services.


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Advertising on basis of diff. stages of PLC1. Informative ads

2. Persuasive ads 3. Reminder

Advertising on basis of timing of response1. Direct action ads2. Indirect action ads

Advertising on basis of nature of appeal1. Emotional ads2. Rational ads

Advertising on basis of media used1. Print ads

2. Audio-video ads3. Audio ads

Other ads1. Classified ads2. Social ads


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Out-Door AdvertisementBill-board and message painted on theside of buildings are common forms ofout-door advertising, which is oftenused when quick, simple, ideas arebeing promoted.


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Brand AdvertisingIt is advertising with a strong emphasison the company brand (logo and/orcompany name) also known asintegrated marketing communications(IMC).


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Business advertisement.


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Direct advertisements


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Emotional Advertisement.


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Social advertisement.


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Broadcast advertising Broadcast advertising is a very popular advertising

medium that constitutes of several branches like

television, radio or the Internet. Televisionadvertisements have been very popular ever since theyhave been introduced. The cost of televisionadvertising often depends on the duration of theadvertisement, the time of broadcast (prime

time/peak time), and of course the popularity of thetelevision channel on which the advertisement is goingto be broadcasted.


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Online advertisingOnline advertising is the newest and fastestgrowing way to advertise. The Internet now

provides everything from links on sites, tobanner ads on sites, to small ads on sites, topay per click advertising.


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Radio Advertisementy It is a small business advertising.

y Radio advertising can be a very effective means to

attract customer to some business.

y New Sathi lather House, Bhiya Pizza,

Fhakar rent a car


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Radio Advertisement


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Institutional advertisement


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Reminders


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Importance ofadvertising

Importance of Advertising

To manufacturers

Increased sales

Creating primary Andselective demand

Mass Communication

Lowers prod. Cost

Helps face

Competition

Builds goodwill

Higher profits

Direct mktingPermanent demand

To consumers

Convenience

Ads to knowledge

Benefits ofDirect

mkting

Products at low Price

Act as reminder

Better quality products

To distributors

Easy selling

Less burden

Increase in sales

And profits

Regular sales

Increases morale

Less bargaining

Selling new products

To society

Increases Standard

Increases Employment

Source of Income to

Media

Increase Exports

Increase NY

Encourage R&D


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IMPORTANCE

Creating awareness

Increase sales

Brand identity & Brand image

Communicate a change

Increase the buzz value


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What Makes an

Ad Effective?

1. If it creates an impression for a product or brand

2. If it influences people to respond

3. If it separates the product or brand from thecompetition


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Economic Benefits of Advertising

yAdvertising can play an important role in theprocess by which an economic system guided bymoral norms contributes to human development.

y It is a necessary part of the functioning of modernmarket economies.

yAdvertising can be a useful tool for sustaininghonest and ethically responsible competition thatcontributes to economic growth in the service ofauthentic human development.


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yAdvertising informs people about the availability ofrationally desirable new products and services andimprovements in existing ones, helping them to makeinformed, contributing to efficiency and the loweringof prices, and stimulating economic progress through

the expansion of business and trade.

yAll of this can contribute to the creation of new jobs,higher incomes and a more decent and humane way of

life for all.


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Benefits of Political Advertising

y Political advertising can make its contribution byinforming people about the ideas and policy proposalsof parties and candidates, including new candidates

not previously known to the public.

y Political advertising can make a contribution todemocracy analogous to its contribution to economic

well being in a market system guided by moral norms.


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Cultural Benefits of AdvertisingyAdvertising can itself contribute to the betterment of

society by uplifting and inspiring people andmotivating them to act in ways that benefit themselvesand others.

yAdvertising can brighten lives simply by being witty,

tasteful and entertaining.


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Moral and Religious Benefits of

Advertising

y In many cases, too, social institutions, including thoseof a religious nature, use advertising to communicatetheir messages.

yMessages of faith, of patriotism, of tolerance, messagesconcerning health and education, constructive andhelpful messages that educate and motivate people in a

variety of beneficial ways.


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THEHARM DONE BY

ADVERTISING


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a) Economic Harms of Advertising

y The practice of "brand"-related advertising can raiseserious problems. Often there are only negligibledifferences among similar products of different brands, and

advertising may attempt to move people to act on the basisof irrational motives ("brand loyalty," status, fashion, "sexappeal," etc.) instead of presenting differences in productquality and price as bases for rational choice.

y

It makes consumers forget about there needs n only thinkabout their wants, which makes them spend more


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b) Harms of Political Advertising

y for example, the costs of advertising limit politicalcompetition to wealthy candidates or groups, or requirethat office-seekers compromise their integrity and

independence by over-dependence on special interests forfunds.

y instead of being a vehicle for honest expositions ofcandidates' views and records,political advertising seeks to

distort the views and records of opponents and unjustlyattacks their reputations.


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c) Cultural Harms of Advertising

y In the competition to attract ever larger audiences anddeliver them to advertisers, communicators can findthemselves tempted in fact pressured, subtly or not so

subtly to set aside high artistic and moral standards andlapse into superficiality, tawdriness and moral squalor

y Communicators also can find themselves tempted toignore the educational and social needs of certain

segments of the audience the very young, the very old,the poor who do not match the demographic patterns(age, education, income, habits of buying and consuming,etc.) of the kinds of audiences advertisers want to reach


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y Exploitation of women by advertisements:-

objects whose purpose is to satisfy others' appetitefor pleasure or for power

the role of woman as wife and mother undervaluedor even ridiculed

the role of women in business or professional lifedepicted as a masculine caricature


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d) Moral and Religious Harms of Advertising

y it deliberately appeals to such motives such as envy, statusseeking and lust.

y some advertisers consciously seek to shock and titillate byexploiting content of a morbid, perverse, pornographicnature.

y the communications media have made pornography andviolence accessible to a vastly expanded audience,

including young people and even children, and a problemwhich at one time was confined mainly to wealthycountries has now begun, via the communications media,to corrupt moral values in developing nations.


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Role ofadvertisingin marketing mixy Advertising is an important tool of marketing mix. Success of whole

marketing programme depends on how promotional tools are coordinatedwith diff. components of marketing mix. Advertising is communication linkb/w buyer and seller.

Advertising is used as a tool of marketingcommunication. It is main form of mass comm. Marketing refers to achievingorganizational goals after determining needs and wants of target customersand enhancing the level of customer satisfaction along with selling theproduct.

An effective marketing programme blends allthe components of marketing mix in a coordinated manner so as to achievemarketing objectives.

The inter-relationship of advertising and marketingis studied as under:


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Marketing mix

Product Price Promotion Place

Personal

selling

Advertising sales

promotion

Direct

marketing

Publicity

interactive

marketing


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1. ADVERTISING AND PRODUCT

y Advertising and type of producty Advertising and stage of product life cycle

y Advertising and product quality

y Advertising and branding

y Advertising and packaging

y Advertising and product positioning

1. ADVERTISING AND PRICEy If price is high then high-status appeal

y If price is low then economy-appeal

1. ADVERTISING AND PLACE (DISTRIBUTION)


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4.ADVERTISING AND OTHER PROMOTIONAL TOOLS

y Sales promotion

y Personal selling

y Publicity

y Direct marketing

5.ADVERTISING AND COMPETITION

6.ADVERTISING AND MARKET SEGMENTATIONy Concentrated marketing

y Differentiated marketing

y Undifferentiated marketing


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Aspects

of

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Making Consumers Aware of

Products and Services

Providing Consumers WithInformation to Use to Make Purchase

Decisions

Encouraging Consumption and

Fostering Economic Growth


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(i) Effect on production cost and prices Advertising as an expense that increases the cost of products

Increased differentiation (ii) Effect on distribution cost

(iv) Effect on demand

(v) Effect on competition

Barriers to entry

Economies of scale

(vi) Effect on consumers choice

Differentiation

Brand Loyalty (vii) Effect on business cycles

(viii) Effect on national income

(ix) Effect on employment

(x) Effect on standard of living


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Economic objections

(i) No increase in real demand

(ii)Reduces consumers choice

(iii)Wastage of natural resources(iv)Creates monopoly

(v) Increase in cost and price


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Advertising as a part of firms marketing

effort operates in the society. It has totherefore follow the social norms.

Key areas of debate regarding societyand advertising are:

Deception Manipulation

Taste


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Deception: it refers not only to the

information content in advertising but may

also arise from misplace emphasis in

presentations.

According to federal trade commissionof the USA-

Advertising as a whole must not create a

misleading impression although every

statement, separately considered, may be

literally truthful


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Manipulation :- The freedom of choice

of consumers is restricted by the powerof advertising since it can manipulatebuyers into making a decision againsttheir will or interest.

Manipulation is done throughemotional appeals. These companiescan utilize advanced and very scientificadvertising techniques and thus makean impression on consumers.


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Taste:- Sometimes ads areoffensive, tasteless, irritating,

boring and so on.

a) Sources of distaste

b) Sexual Appeals

c) Shock advertising


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Untruthful or deceptive advertising

y General mistrust of ads

y Deliberately untruthful or misleading vs. pufferyy Problems often more at local level rather than national

Effect on culture

Effect on media

Materialism

Effect on children

Stereotyping in advertising

y Portrayal of women

y Gender stereotyping

y Portrayal of women as sex objectsy Role portrayal of women to reflect changing role in society

y Blacks and Hispanics

y Gays

y Elderly


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Social objections(i) Control of advertisers over media

(ii) Wrong appeals(iii) Create artificial product differentiation

(iv) Moral degradation

(v) Other objections

Some examples of the Advertisements with socialaspects:-Grow-more-trees advertisementsDrink milk

Eat healthy food, eat eggsMothers milk is best for the babySay no to drugs every timeGet your child vaccinations in times


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(III) Legal aspects of advertising

The government in each country has to

make sure that advertisements appearing

do not flaunt of their rules & regulations.It should not:-

show anti-national feelings

contain misleading information aboutthe product

Violate government rules


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Some examples of the

Advertisements with legal aspects:-

Get your car checked for pollution

Drinks & driving do not mixWeight, price, manufacturing

date, date of expiry should be

mentioned on the packing case


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Ethics DefinedEthics Defined

System of moral principles Good or bad Right or wrong

Fundamentally rooted in what peoplebelieve to be right or wrong.

Beliefs stem from the systematising, defendingand recommending concept of... Behaviour


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Ethics are the moral standards againstwhich behavior is judged

Key areas of debate regarding ethics andadvertising are:

y Truth in advertising

yAdvertising to childrenyAdvertising controversial products


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Ethics in Strategy Formulation

Advertisement persuade the people to

buy their products.

It sometime entertain or educate the

people.

Some advertisers use slippery tactics.


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Advertising to ChildrenIssues

Advertising promotes superficiality andmaterialism in children.

Children are inexperienced and easy

prey.Persuasion to children creates child-

parent conflicts.

What does the literature say about kidsabilities to process persuasive

information?


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Advertising Controversial Products

Critics question the targeting of minorities.

Tobacco, alcohol, gambling and lotteries

are product categories of greatest concern.

How does the concept of primary demand

provide insights here?

What does the literature say about

advertisings impact on these productcategories?


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What do you t

hink?

What do you t

hink?

Advertising = Market Power

Advertising = Market Information

Or both?


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yAdvertising affectsconsumer preferencesand tastes, changesproduct attributes, anddifferentiates theproduct fromcompetitive offerings.

yAdvertising informsconsumers aboutproduct attributes butdoes not change theway they value thoseattributes.


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What do you think is the biggest benefit of

advertising?

What do you think is the biggest problem

with advertising?

What do you think is the best example of

bad advertising?What do you think is the best example of

good advertising?

Big QuestionsBig Questions


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advertising management-1st, 2nd & 3rd topic

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