intro to advertising adv media planning 001

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Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta

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INTRODUCTION TO

ADVERTISING

&

ADVERTISING AND

MEDIA PLANNING


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STIKOM LSPR - JakartaIntroduction to Advertising | Advertising and Media Planning

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STUDY GUIDE

INTRODUCTION TO ADVERTISINGCOURSE DESCRIPTION

The market place is crowded with many brands of product, all competing to be the leader.

In their effort to gain market leadership, marketers use Advertising as one of their promotion

tool.

This study guide will help you understand how Advertising as a Promotion Mix supportsMarketing and Marketing Communications effort of brands. Therefore the learning process

will begin at understanding the role of advertising in marketing and promotion, and continues

on to describe how advertising works in creating image and differentiation of brands to

achieve competitive advantage in the market place.

As the creator of advertising, Advertising Agencies plays a major role in creating winning

brands. You will also learn how Advertising Agencies work in planning and creating winning

advertising campaign.

SUBJECT OBJECTIVES

After studying this subject, students will be able to:

DeneAdvertising

Understandtheroleofadvertisinginthemarketingmix

Understandthecharacteristicsofadvertisingcomparedtootherpromotiontools

Understandmarketsegmentation,targetmarketandtargetaudience

Understandthedifferenttypesofadvertisingcampaign

Understandthecooperationofthemarketingdepartmentanditsadvertisingagency

Understand the different types of advertising agencies and advertising agencies

organization Understandtheadvertisingcreativeprocess

Understandtheadvertisingproductionprocess

Understandthemediaprocessinadvertising

Understandtheethicsandlawgoverningadvertising

Understandadvertisingtestingandevaluation


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Scheme of Work

Semester I Introduction to Advertising

WEEK 1

Topic 1 The Role of Advertising in Marketing

WEEK 2

Topic 2 Advertising and the Promotional Mix

WEEK 3

Student Presentation on Advertising of Choice

Objective: To create awareness and basic knowledge about the elements of advertising

which makes it an effective or ineffective advertising.

WEEK 4

Topic3 UnderstandingtheCustomerandConsumer

WEEK 5

Topic3 UnderstandingtheCustomerandConsumer

WEEK 6

Topic 4 Types of Advertising Campaign

WEEK 7

Topic 5 Specialist Forms of Advertising

MIDTEST

WEEK 8

Topic6 TheAdvertisingManagerandAdvertisingDepartment

WEEK 9

Topic6 TheAdvertisingManagerandTheAdvertisingDepartment


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WEEK 10

Topic7 DeterminingandSettingBudget

WEEK 11

Topic 8 Types of Advertising Agencies

WEEK 12

ClassPresentationandDiscussiononAdvertisingAgenciesinIndonesia

WEEK 13

Topic 9 Agency Recognition and Remuneration

WEEK 14

Topic10 FunctionsofDepartmentsinAdvertisingAgencies

FINAL EXAM

Semester II Advertising and Media Planning

WEEK 1

Topic 11 Creation of Advertisements and Commercials

WEEK 2

Topic 11 Creation of Advertisements and Commercials

WEEK 3

Presentation of Advertising Creative: Storyboard / Storyline

WEEK 4

Topic 12 Production of Advertising Materials in Media

WEEK 5

Topic 13 Media in Advertising and Printed Media


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WEEK 6

Topic14 BroadcastMediaandOtherMedia

WEEK 7

Topic 15 Media Research

MIDTEST

WEEK 8

Topic 15 Media Planning

WEEK 9

Group Exercise on Media Planning

WEEK 10

Topic 16 Ethics and Codes of Practice

WEEK 11

Group Presentation on Codes of Practice

WEEK 12

Topic 17 Advertising and The Law

WEEK 13

Topic 18 Advertising Testing and Evaluation

WEEK 14

Topic 18 Advertising Testing and Evaluation

FINAL EXAM


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Introduction to Advertising | Advertising and Media Planning

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STIKOM LSPR - JakartaIntroduction to Advertising

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Introduction

Marketing departments create products and brands that suit the demands of the

customers and consumers. Advertising agencies help by encouraging the target consumers

and customers to buy the brands through their persuasive messages. If the advertising is

successful and if the customers like the products, they will buy again and again.

Advertising is also used to promote a corporate image, to persuade target audiences

of a companys performance and abilities, and it may also be used to inform by providing

datasuchasspecicationsordetailsofnancialservices.

Whatever the form of advertising, advertisements and commercials have to be

created with messages that are appealing, attractive, and convincing. The messages must

also be communicated to customers at the right time and in the right place. Hence, the

advertising industry needs media newspapers, magazines, television, radio, posters and

cinema. Each publication and each television or radio programme is seen by different types

of people. Equally, a variety of people pass posters and visit cinemas.

The variety of products advertised and the media used mean that advertising is

acomplicated process. It is an area that requires the expertise of specialist companies

advertising agencies. These agencies form the backbone of the advertising industry, togetherwith sales promotion, public relations, direct response and other agencies, consultancies

and suppliers.


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CHAPTER1

THE ROLE OF ADVERTISING IN MARKETING

PART 1 BACKGROUND TO ADVERTISING

CHAPTER OUTLINE:

This chapter is about understanding the relationship between marketing and advertising and

howadvertisingaspartofthemarketingmixhelpsmarketersinuencetheirtargetconsumers

into using their brands. It also discusses how advertising can provide a competitive edge by

establishing image and brand differentiation.

OBJECTIVES:

1. To understand the role of business

2. To understand the role of advertising in marketing

3. To understand the marketing mix

4. To understand push/pull concept

5. To understand advertising objectives

Makingaprotistheultimategoalinabusinessventureandthisisachievedbymarketing

productswhicharesuccessfulinfulllingcustomersneedsandwants,beitaphysicalneed

such as to overcome hunger and thirst, or emotional need such as to be accepted by family,

friends and society.

The marketing effort is supported by promotion techniques such as sales promotion and

advertising, so that the target consumers are informed of the availability of products and

servicesthatfullltheseneedsandwants.

The Role of Advertising in Marketing

While marketing will establish the goods and services that will sell, advertising will inform the

market that they are available. Advertising will promote the product and service in such a

way to appear attractive to consumers and customers as well as different from competitors.

Advertisingwillcontinuetohighlightthedifferentbenetsandadvantageslongafterthe

initial launch, therefore, helping to maintain demand in a competitive market where rivals are

trying to sell their products as well.

Advertising does not only address customers and consumers, but also wholesalers,

distributors and retailers who must be convinced to stock the products before advertising tothe customers and consumers begins.


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The Marketing Mix

Acompanymustndproductsandservicesthatareneededandwanted iftheywanttoembark on a successful relationship with customers, so that they will come back for more of

the same product. Therefore, there are factors which have to be considered when launching

a new product and are referred to simply as the Four Ps :

the right product

at the right price

in the right place

with the right promotion

The Right Product

It has already been stated that if the product doesnt suit the customer, it will not be bought,

so there is little point in attempting to advertise in the hope that it will be consumed. Hence

the need to research the market-place to establish what product is wanted by customers;

but the emphasis is on the right product to satisfy the needs and wants of the customer

and user. The right product is more than the physical product sometimes called the core

product. It means the total product offering with all the variations and combinations.

The Right Price

Pricing is a crucial part of the marketing mix. If you sell a product cheaply enough, customers

willbeveryeagertobuy.Butalowpricemayalsoindicatetheproductislackinginquality

and may not be attractive to the customers. Most often customers are prepared to pay for

products and services that the company has developed that meet their demands.

The Right Place

The right place for products and services are where they must be readily available and

convenient for the customers to have access to them. If they are not located where the

customers want them, then other products and services, often from the competitors, will be

bought.

The right place also means that it will project the image and reputation of the brand.

The Right Promotion

Promotion is the total activity to project the total reputation or image of a product, service, or

company together with their associated names ( i.e. brand and corporate image).

Promotion covers packaging, advertising, public relations, sales literature, sponsorship andpoint-of-sale (POS) displays in fact, all of the above-the-line and below-the line techniques

to assist the sales process. Promotion, therefore, is the total way that a company presents its



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products to the market. The result is that promotion communicates the companys reputation

and the reputation of its products and services. A companys reputation is a valuable

commodityandmanybusinessesprotfromthegoodwillthatisgeneratedasit resultsinmore sales and easier sales.

Selling in- Push /Pull

Push means selling in the products to the wholesalers and retailers to encourage stocking

up once the consumers have seen the advertising or other promotion activities. This process

involves informing the wholesalers and retailers about the products that will sell at the right

pricetoallowprotforthewholesalersandretailers.

Pull is the encouragement for the customers to go to the stores to buy the products, afterthey have been exposed to the advertising and promotion activities.

Advertising Objectives

It must not be assumed that once a product has been launched, then the manufacturer, or

indeed the retailer, can sit back and relax. Customers must be reminded to keep buying the

same brand, and failing to do so will lead to brand switching and buying a competing brand.

New brands from competitors will also lure the customers to try them.

This means that manufactures need to innovate by promoting their brands differently, such

as by adding new ingredients or reformulating the products

With regard to the above, aims of an advertising campaign or advertising objectives may be

one of the following:

tolaunchanewproductorservice

tocreatebrandawareness

togenerateinterests

togeneratesalesinquiries

topromoteneworimprovedversion

toinformofanotherpromotionsuchassalespromotions



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Points to remember

Advertisingisapromotiontechniquewhichhelpsmarketingofproductsandservicesby making them appear attractive and different from their competitors.

Advertisingisonlyapartofthemarketingmix,therefore,successfulmarketingeffortis

also contributed by other elements of the marketing mix.

Advertising isonlyonepromotional toolandhastobeusedwithothermeanssuch

marketing, public relations, sales promotion, etc to ensure effective promotion efforts.

Advertisingreectstheimageandthepositionoftheproductwithinthemarketplace.

Productsandserviceshavetobeavailableinthestores,beforetheycanbeeffectively

promoted to the consumers.

Advertisingcanbe used to supportexisting brands aswell as to introduceanew

brand.



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CHAPTER2

ADVERTISING AND THE PROMOTIONAL MIX

CHAPTER OUTLINE

This chapter will provide an understanding of how advertising as one of the promotion

technique can collaborate with other promotion techniques: marketing public relations,

sales promotions, personal selling and direct marketing to effectively promote a brand in the

competitive market place.

It will discuss the characteristics of each of the promotion technique and how it can be used

as a promotion tool. Other supporting element such as packaging and sponsorship is also

discussed to show its contribution in the promoting and establishing brand image.

OBJECTIVES:

Todenepromotionalmix1.

Todeneadvertising2.

Todeneotherpromotiontool:marketingpublicrelations,salespromotion,personal3.

selling, direct marketing

To understand how promotion mix are used to achieve marketing objectives4.

To understand how other elements of promotion such as media relations, sponsorship,5.

packaging design contribute to the promotion efforts

Elements of the promotional mix

The promotional mix consists of the various ways companies use to promote and sell theirproducts and services to their customers.

The elements of the promotional mix are:

1. Public Relations

2. Advertising

3. Sales Promotion

4. DirectMarketing

5. Personal Selling

Elements such as packaging are also considered as a major element in the promotion effort,

along with other activities such as sponsorship, or a public relations tactic which is effective

in getting across advertising messages as well enhancing brand and corporate image.



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A company can use any of the above promotion tool together, or just one, depending on the

marketing communication objectives.

Public Relations

TheInstituteofPublicRelationsdenespublicrelationsasfollows:

Public relations is about reputation the result of what you do, what you say

and what others say about you. Public relations practice is the discipline which looks after

reputationwiththeaimofearningunderstandingandsupport,andinuencingopinionand

behavior.

Public Relations is assuming greater importance in the promotion efforts of brands and

companies. Public Relations strategy and tactics are often used to communicate effectively

with costumers, employees, and share holders.

However, it is not the role of public relations practitioners solely to build an image

in the market-place, but also to ensure that the company is delivering the products and

services to the satisfaction of its publics. The public relations person does not merely

mount a campaign to state this but makes sure that the company is doing it by advising the

organization on its actions (after all, public relations is about reputation a result of what

you do . . .).

Media Relations

Media relations is used as part of the public relations program to get the

companysmessageacrosstoeveryonewhohasaninuenceontheacceptanceofthe

company, its products or services. Media relations does this by:

educatingthecustomersaboutthebenetsandadvantagesofnewconcepts

informingcustomersofthebenetsandadvantagesofdealingwithnewcompaniesin

the market-place

encouraginginterestintheproduct

easingthesalesprocessbyestablishinggoodwillandreputationpromotingthecorporate,brandandproductimage

creatingawareness

providingdetailedinformation(e.g.onspecicationsaswellasontheuseofproducts

and services)

launchingtheproduct(bynewsreleaseandnewsconferences)

Techniques often used are:

newsreleasestoannouncenewproductsordevelopmentswhichcanbeusedand

developed as news items in the media

mediastatements(oral/written)tomakeannouncementswhichthecompanydoesnot

want to expand upon



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articlesandfeaturestoexpandonissuessurroundingtheproduct(e.g.nutrition,when

promoting a snack bar)

interviews,receptionsandbriengstogivebackgroundtotheproduct,service,companyor key staff (e.g. an inventor)

newsconferencestoannounceproducts,servicesorakeydevelopment(e.g.alaunch

or take-over bid)

photo-opportunitiesorpresscallsfornewspaperphotographersandTVcameramen

to obtain shots of a personality or product (e.g. a personality endorsing product or a

stunt)

casehistoryfeaturingaproductinuseespeciallyintradeandtechnicalpublic

relations

facilityvisittofactorywhereproductsaremade

productloans(ofcomputers,forexample)forjournaliststoreview.

Other Publicity Tools

As a company cannot always expect that the media will publish their news, it often used

other publicity tools:

leaetsandbookletstoexplain,educateandinform,especiallyofnewconceptsor

onesdifculttograspandunderstand

newssheetsandnewsletterstocarrymoreimmediateinformationanditemsofinterest

about the company

house magazines (external and internal) to inform and give greater background(including perhaps, social aspects of the organization)

brochuresandvideos,particularlyforpromotingthecorporateimage.

Advertising

Advertisingmaybedenedasfollows:

Advertising is a means of communication which uses printed, broadcast or other media, where

space or air-time may be purchased for the purpose of persuading customers, consumers,

users or other interested parties of the benets and advantages of an organization and/orthe products or services it delivers.

Advertising aims to create awareness and interests, and its persuasive message convincing

thetargetaudiencethattheadvertisedbrandwillfullltheirneedsandwants.

While brand advertising establishes brand image, corporate advertising on the same level

will create corporate image, and thus ensuring customers that brands manufactured by the

companywillbenetthem.



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Sales Promotion

TheInstituteofSalesPromotiondenessalespromotionas:

Sales promotion comprises that range of techniques used to attain sales and marketing

objectives in a cost-effective manner by adding value to a product or service either to

intermediaries or end-users, normally but not exclusively within a dened time period.

Customersstillneedthatnalincentivetoactuallybuy,andsomanufacturers,in

conjunction with retailers and wholesalers, will use sales promotion techniques to

ensure that they get the sale. It is no longer a panic measure used when sales are slow

or the stockroom is too full sales promotion is a strategic tool used in a planned way to

achieve marketing objectives.

Consumers Incentives

Discountcoupons

Freesampletotrytheproduct

Discountedprice

Addedvolume

Gifts

Buy1get1free

Trade incentives

Discountpricetoincreaseprots

Prizes

Co-operativeadvertisingorjointpromotion

Displaymaterialatpointofsalestoattractcustomers.

Instoredemonstration

Direct-Response Marketing

Direct-responsemarketingmaybedenedas:

Direct-response marketing is selling goods or services without shops and usually without

personal salespeople, direct to customers in response to orders generated by direct mail

shots, leaets, catalogues, telephone calls and printed or broadcast advertisements.



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Differencesbetweendirect-responsemarketinganddirectmail

Direct Mail

Directmailisdispatchofpromotionmaterialsbymail.

Therecipientofthemailshotisaskedtodocertainactionsuchasaskedforbrochures

to be sent.

Direct Response

Indirectresponsemailshotisanorderformwithinformationforpurchase.

Thereisalsoinformationforpaymentofpurchase.

Direct-responsemarketingisaveryattractivewayforcompaniestogetintothemarket-

place as it does not involve retail outlets and so there is no need to sell in to establish

retailers or to open an individual shop or store. Some very successful companies have been

startedinthisway(e.g.BodyShop).Inaddition,computertechnologyhaseasedthejob

of compiling mailing list of customers, addressing envelopes as well as analyzing customer

preferences and buying habits. Improved telecommunication systems has led to the growth

of telemarketing.

DirectResponseMarketingTechniques

Pressadvertisements Broadcastadvertising(radioandTVshoppingchannels)

Generalmail-ordercatalogues

Leaetsinsertedintomagazinesandnewspapers

Leaetsandcataloguessenttomailinglist

Leaetsandcataloguesdistributeddoortodoor

Personal Selling

Salespersons are assigned and trained to promote product and services directly to customers.Salespersons can range from someone who merely takes sale orders to people who provide

expertiseinndingsolutiontocustomersproblems.

Consumer Sales

Doortodoorsalespersons

Salespersonsworkinginretailoutlets

Specialistsalespersonsellingservices(insurance)

Salespersonsinshowrooms

Sales/accountofcer/customerserviceinbank,etc.



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Trade Selling

For selling in or push strategy, usually performed by salesman and account managersresponsible for corporate sales.

Commercial and industrial selling

Industry requires raw materials, equipment etc, therefore there is a need of business to

business marketing which involves personal selling by:

Salesrepresentativestosellofceequipmentsandcommercialservices

Salesengineerssellingtools,machines,rawmaterials,chemicals,etc

Packaging

Packaging not only contains the product and protects it during transit from the

manufacturers to the customers and consumers, but it will also preserve it by keeping it

fresh. The pack is also a means of storing, stacking and dispensing the product.

Inaddition totheabove, thepackhasbecomethenalmeansofcommunicatingbrand

benets.Thepackcanalsobeusedtoinformpromotionactivities.

The elements in the pack design such as shape, size, color, brand name and type face

reectsbrandidentityandbrandimageasestablishedbyadvertisingcommunication..

Sponsorship

FrankJefkinsgiveshisdenitionofsponsorshipas:

The giving of monetary or other support to a beneciary in order to make that beneciary

nancially viable, sometimes for altruistic reasons, but generally to gain some advertising,

marketing or public relations advantage.

Sponsorship may not have a direct effect on sales but it creates a climate of goodwillwherethecorporateorbrandimageisassociatedwithbenetingsports,culturalandother

worthwhile activities, players and performers.

Areas of Sponsorship

Sportevents

Art/musicevents

Festivals

Awardsceremonies Televisionandradioprograms,etc



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Aims of Sponsorship

tobrandandpositionaproductorservicebyassociationtocreatebrandawarenessbyexposure

tosupportassociatedpromotionalactivity

toreinforcecorporateidentity

toovercomeanadvertisingban

totargetaparticularaudience

togenerategoodwillinthecommunity

tosupportcustomerrelations.



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Points to remember

Advertisingispartofthepromotionalmix(consistingofpublicrelations,salespromotion,media advertising, and direct response marketing) and is, therefore, not the sole means

of promoting a product, service, brand or company.

Withineachelementofthepromotionalmix,thereareanumberofmeansandmethods

that can be used to achieve the sales and marketing objectives.

However,notalloftheelementshavetobeusedforapromotionalcampaignonlya

combination of the most suitable to achieve the objectives.

Publicrelationsconsistsofmediarelationsandpublicitytoolssuchasprintedmatter

and videos, together with presentations and special events to support marketing by

communicating the companys reputation.

Mediarelationscanbeusedtocreatetheclimatefortheacceptanceofnewconcepts

and new suppliers.

Advertisingusesprinted,broadcastandothermediatocommunicatetheadvertisers

message to the market.

Mediaadvertisingcanbeusedtocreateinterestandgainattention.

Salespromotionusesarangeoftechniquestostimulatecustomerstostockorbuythe

product as promotions can be targeted at end customers as well as wholesalers and

retailers.

Direct-responsemarketing is used to selloff thepage fromcataloguesandpress

advertisements amongst a range of other techniques.

Personalsellingisusedtosellgoodsandservicesthroughretailoutletsaswellasto

the proprietors and owners of retail outlets.

Salespersonsareusedforsellingtowholesalersanddistributors.

Personalsellingisalsousedtosellproductsandservicestoindustrialandcommercial

companies.

Packagingisusedtoprotectandcontainproductsbutalsotoconvincecustomersto

buy the brand or product.



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CHAPTER3

UNDERSTANDING THE CUSTOMER ANDCONSUMERCHAPTER OUTLINE

Although many products and services are said to be mass-market, but in actuality, no

company markets its products and services to the whole general public. Therefore the

target market, (the people who are most likely to be interested in your products) must be

identied.Throughresearchandthenbyusingtheprocessofsegmentation,thecompanywill select its target market. This chapter will discuss the research process and the means

of segmentation.

OBJECTIVES:

Todenetargetmarket1.

Todenetargetaudience2.

Todenesegmentation3.

To understand the process of segmentation4.To understand the use of research in identifying target market5.

To understand the role of positioning and branding6.

Establishing the Market-Place

As it is virtually impossible to get everyone to buy your products or services, a company

must identify the sector of the market that is most likely to buy or use their offerings. The

steps are:

1. establish a sector where there is a demand for which customers are prepared to pay

2. develop the product

3. arrange production cost-effectively

4. distribute the product to the wholesalers and retailers

5. use advertising to tell the market-place about the product.

The Target Market

The marketing department does extensive market research to discover how the market-place

issegmented.Itcanthenstudythesegmentstondtheneedsandwantsoftheindividualswithinspecicsegments.Themembersoftheselectedsegmentisthendeterminedasthe

target market. In other words the target market are the people who are most potential to buy/

consume the companys product/ services.

UNDERSTANDING THE CUSTOMER AND CONSUMER


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The Target Audience

The target audience are members of the target market to whom promotion and advertisingmessages will be addressed. Target audience can be broken down into smaller more

manageable markets that have different wants and lifestyles. One of the biggest and most

important target audiences is housewives, because of the major decisions that they make

on household purchases, but even this segment can be broken down into smaller categories

such as urban housewives, working housewives and housewives with children.

Furtherresearchwillenablethemarketingdepartmenttondwhatpublicationsthemembers

of the target audience read, the radio stations they listen to and the

television programs they watch. Similar research is often done by the advertising agency as

it is vital to develop a message that appeals to the target audience and to ensure that the

commercials and advertisements are seen and heard by the right audience.

Segmentation

A segment must have the following qualities:

1.itmusthavespeciccharacteristicsthatcanbedenedandmeasured

2. it should be accessible for distribution chain and for advertising and promotion

messages.

3.itmustbesufcientinsizeorvolumeforthecompanytogainprot

Once isolated, the segment can be further studied, to establish

1. its precise needs, wants and aspirations

2. the incomes and types of job of people within the segment

3. its location

4.itspotentialintermsofsalesandprot

5. effective means of communicating with it (so that the right media and messages can

be used)

6. economic budgets for advertising and promotion7. what to offer to suit the characteristics of the segment

Thebenetsforthecompany:

1.costarekeptlowastheytargetedtoprotablemarketing

2.productionaremoreefcientsinceascanconcentrateonspecicitems

3. minimized wasted stocks

4.moreprots



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Means of Segmentation

demographicsgeo-demographics(acombinationofdemographicsandlocation)

socialgrades

familylifecycles

lifestyle

behavioraltypes

Demographics

Classifying target market/target audience on measurable factors:

sex

age

socialclass

familylifecycle

education

employment

occupation

maritalstatus

etc

Geo-demographics

Geo-demographic is classifying the target market/audience into location of residences such

as , urban, suburbs, rural, etc.

Social grades

This classication is based on social class whichmay use annual income or monthly

expenditureasmeansofclassication.

Family life cycle

The family life cycle is used to segment th market based on life stages:

single

newlymarried

fullnest(havechildren)

emptynest(nomoredependents)

etc



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Lifestyle

Lifestyle or the way people live as affected by numbers of factors such as

dailyactivities(hobbies,workactivities,socialandfamilyactivities)

interests(fashion,music,etc)

opinions(attitudestopolitical,social,economic,culturalissues,etc)

Behavioral Types

Behavioraltypesarefurthervariationoflifestyle.Itisbasedonsocialexpectation,goalsand

beliefs.

Market Research

To determine the different segments and target group, process called market research is

conducted.

Market research will identify:

marketsize

marketpotentials

marketlocation

targetmarketattitudesconcerningaparticularproduct

Marketing Research

Marketing research is conducted to provide information that will assist the process of

marketing, for example in identifying which media is effective in reaching the target audience,

which advertising message is credible, etc.

Research Terminologies

Qualitative Research

Basedontheworkquality,thistypeofresearchislookingforqualitativeinformationin

the market place. The qualitative information could refer to consumer needs and wants,

their behavior in using a certain products. This information is helpful to advertisers and

advertisingagenciesinestablishingmarketingcommunicationstrategiestoinuencethe

target audience to use the products. Another name for this research is Attitudinal Research,

as it considers the attitudes of potential customers and consumers, such as beliefs and

values,asthesewillinuencebehaviorinthemarketplace.

Attitudes, values and beliefs play an important part in peoples motives, therefore it is vital

that they are examined and tested. The motives that can be investigated include not only

physical needs (such as food, drink, shelter and warmth) but also psychological wants



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(e.g. security, status and esteem). As Maslows Hierarchy of Needs (Figure 3.1) suggests,

customers move upwards from satisfying their physical needs until they reach their full

potential.

1

2

5

4

3

1 S elf-actualization 2 Esteem 3 Belonging

4S ecurity 5 Physical needsFigure3.1MaslowsHierarcyofNeeds

Quantitative Research

Quantitative research looks for answers in terms of quantity or how many, for instance

how many people believe in family planning. The method involves interviewers nding

respondents and asking them appropriate questions. Questions are designed to get a yes

ornoanswer,whicharecalledclosedquestion.Quantitativeresearchisoftenusedtond

the number of people who share attitudes based on age, income bracket, sex or any other

demographic factor recorded in the interview. This information is very useful in determining

the target market and target audience.



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Secondary Data

The word secondary suggests that the data is collected after the primary data has beenobtained. However that is not the case. Secondary data which is collected from published

materialssuchasbooksandwebsitesisusuallycollectedrstandthenfollowedbycollection

of primary data.

Desk Research

Deskresearchreferred toacquiringinformationbehindadesk,suchasfrombooksina

library or by using a computer to search for websites. Secondary data is obtained in this

way.

Field Research

Field research is carried out face-to-face by speaking to customers or other respondents

eitherintheirofcesorhomesoronthestreet,anditisthefavoredwayofobtainingprimary

data.

Primary Data

Theobjectiveofobtainingprimarydataistondinformationspecicallyrelatedtocertain

issues important to the advertiser or advertising agencies, such information regarding

motivation and attitudes in consuming certain products.Primary data are obtained through interviews, questionnaires or discussion with a sample

group.

Sampling

Sampling involves questioning a pre-determined number of individuals who are as sample

of the overall market sector that is under investigation.

Random Sampling

Random sampling means that anyone has an equal chance to being asked questions, or

participate in the survey. Once the research has

been completed, the data can then be analyzed to establish opinions and

attitudesrelatedtovariousclassications(byage,sexorotherdemographics).

Datagained fromrandom samplingmightsubsequently beused to identifyagroup(or

segment) that shows a demand for a certain type of product or service.

Quota Sampling

Quota sampling is used when the researchers are seeking to explore a particular groupof people. They will want to establish the size, breakdown, attitudes and opinions of that

particular group, for example students, 18-21 years old, female.



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The quota sample represents a segment which have potentials to be exploited, providing

certain characteristics such as needs and motivation are discovered in the research.

Syndicated Research

With syndicated research, either a number of advertisers join together to commission joint

research or a research agency establishes research programs which it sells to a group of

manufacturers or suppliers. Advertising agencies can also participate either to improve their

own understanding in developing campaigns or on behalf of the client.

Omnibus Surveys

Omnibus surveys are continuous research which is carried out on a regular basis with

regular samples so that an advertiser or an advertising agency can buy the right to have

specicquestionsaskedonparticularsubjects.Theadvertiseroragencypaysonlyforthe

questions that it wants answers to, although the fee includes a contribution to the overheads

of maintaining the survey. The costs are therefore shared by all those taking part in the

surveys and not by a single company.

Using the results of research

After analyzing the data, the result of the survey is used to determine:

markettrends marketsizeandpotentials

targetmarketcharacteristicssuchasbuyinghabits

Positioning

Brandpositioningmeansplacingthebrandintheconsumersmindsothatitisperceived

differently and more superior than competing brands. Successful brand positioning often

relies in how the brand is viewed as meeting the needs and wants of its target audience and

inhowactuallythebrandfulllsitspromisetotheconsumers.

The brandmayhavemanybenets,but inestablishingpositioning, themarketeror the

advertisingagencyshouldfocusononebenetofthebrandthatisrelatedtotheproduct,the

competitors (what they say about their brands), and the characteristic of the consumers. If too

manybenetsareconveyed,thenthemessageisnotsinglemindedorfocus.Forexample

Volvohasalwaysstayedwiththesamepositioning:thesafetyaspectofthebrand.

Branding

Brandinginmarketingtermstodaymeanscreatinganimageforaproduct.Itisacombination

of character, identity and the reputation that is developed by the product and its associations

(e.g.theproductmightbecoffeebutitisidentiedandbrandedasaparticularmake,such

as Nescafe-Classic). A major task of advertising is creating and maintaining brand image as

means of establishing competitive edge in the market place.



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Brand Image

Brandimageisaboutperception.Perceptionisnotrealitybutwhatisbelieved.Brandimageisthe consumers total perception of the brand, what he believes the brand is about. Therefore,

brand image indicates how the advertising message is understood and interpreted by the

consumer.

Communicating with the consumers

Advertising must be visually attractive and their messages must be credible as to gain

interest,desiretouseandnallytheactofpurchase.

Advertisers and advertising agencies often used models of communication to measure

consumer response to the advertising message. The most often used model is AIDA:

A attention

I interest

D desire

A action

AIDA showsthestepsin persuading the targetaudiencetoresponsetoanadvertising

message. A variation includes creating awareness, stimulating interest and understanding,

encouraging evaluation, generating a trial or test and ensuring conviction by the customer

taking action (by buying the product).



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Points to remember

peoplehavedifferentneedsandwants,thereforeacompanycannotsaleitsproductsand services to everyone

aprocesscalledsegmentationisusedtoidentifythetargetmarket

themarketplacecanbesegmentedthrough

o demography

o geo demography

o socioeconomicclassications

o family life cycle

o lifestyleo behavioral types

marketresearchandmarketingresearchareconductedtostudythemarketplaceto

obtain information about the target market and target audience

qualitative research is to gain information about attitudes, motivation, etc, while

quantitative research to measure size of segment, target markets and audiences

primarydataiscollecteddirectlyfromthesourcetoprovideinformationonaparticular

marketingproblem.Itusuallyinvolveseldresearch

secondarydataisobtainedfrompublishedsources,andlikelytobedeskresearch

communicationmodelssuchasAIDA can beused tocommunicatewithabrands

target market.



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CHAPTER4

TYPES OF ADVERTISING CAMPAIGNCHAPTER OUTLINE

Advertising campaigns are directed at two main audiences: the consumers and traders

(retailers, wholesalers).

Consumeradvertisingcampaignhasspecicobjectiveandthereforespecicmessagestobe

delivered to the target audience. Hence the many different types of consumer advertising.

Many products are sold directly to the consumers without outlets or shops. In order topurchase the products, a customer must make a direct order by calling a phone number

ofllinguporderforms.ThistypeofmarketingstrategyissupportedbyDirectResponse

Advertising.

Trade advertising are implemented to ensure selling in process to retailers, distributors and

wholesalers.

This chapter will examine the different types of consumers advertising as well as trade

advertisingandbrieydiscussdirectresponseadvertising.

OBJECTIVES:

To understand the difference between trade advertising and consumer advertising1.

To understand the different types of advertising campaigns directed at the2.

consumers

Trade Advertising

The objective of trade advertising is to support the selling in process to distributors,

wholesalers and retailers. It often involved promotion scheme such as:

Thetradearegivenspecialpriceforbulkpurchase,sotheycanmakeaprotwhen

they sell to customers at retail price.

ProvidingPOS(pointofsales)materialssuchasleaets,specialdisplaymaterials,

hanging mobiles, etc , to enhance customers interests leading to purchase

Productlaunchingcampaign

Salespromotioncampaign

TYPES OF ADVERTISING CAMPAIGN


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Consumer Advertising

Consumer advertising is to support the Pull of the push/pull process, by motivatingconsumers to buy products and so take them out of the outlets. It uses the mass media

intensivelytocommunicatetheadvertisingmessageandinuencethetargetmarket.

Types of consumer advertising

(i) generic advertising

(ii) product advertising

(iii) brand advertising

(iv) range advertising

(v) corporate advertising

(vi) retail advertising

(vii) co-operative advertising.

Generic Advertising

Generic advertising means advertising a product type rather than a brand and is

usually undertaken by a trade association or consortium of manufacturers and

suppliers. A good example is a campaign to promote fresh products like milk, fruit, vegetables

and meat. Generic advertising does not promote a particular supplier but promotes the

overallbenetsandadvantagesoftheproducttype.Oneofthemostwellknowncampaigns

is the Get Milk. It can also include the promotion of services like insurance, to enhanceawarenessofthebenetsofinsurancetothetargetmarket.

Product Advertising

Productadvertisingconcentratesonpromotingthebenetsandadvantagesoftheproduct,

such as the price, value and performance. It is often confused with brand advertising, but

productadvertisingisaimedtopromotetheproductbenets,wherebybrandadvertisingis

directed to establish brand image and enhance positioning for brand differentiation.

Inprintadvertising,productadvertisingcanbeidentiedbecause thepackshotisasthemainandoftentheonlyvisual.Thecopywilltalkaboutthebenetsoftheproduct.Asfor

TVcommercial, itisoffcourseawasteofadvertisersbudgettoshow30ofpackshot,

howeverthepackisstilldominantlydisplayed,withthebenetsoftheproductspeltoutin

the storyline.

Brand Advertising

The emphasis of brand advertising is on the brand name, with sometimes little or no reference

to the product This is especially true when there are a number of products sold under afamilybrandsuchasABC.



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However, a huge number of products have a single brand name which has developed a

reputationovermanyyearsofadvertisingthatgoesbeyondthemerecontentsandbenets

of the product. Good examples are found in the highly competitive personal hygiene ortoiletries market, with brand names such as Sunsilk, Pantene, etc

Nowadays, manufacturers are trying to build global brands. Coca-Cola has had the greatest

success with this; its name, logo, bottle and can design are known throughout the world.

The essence of brand advertising is usually image-building for the total product

offering developing that feeling of goodwill between the branded product or brand name

and the customer.

Range Advertising

Sometimes, a manufacturer has a complete range of products to suit the different

needs of different customers. A common example is hair care products such as

shampoos, conditioners, tints and permanent colors. Ranges are frequently

promoted in a single commercial or advertisement either using the various media available

foradvertising.Bypromotingthroughrangeadvertising,theadvertiserissuggestingthat

this brand is one stop shop for hair care, so why use another brand. New products can be

introduced easily as the range image is transferred to them.

Corporate Advertising

Corporate advertising promotes the company not the individual products. Corporate

advertising differs from brand advertising because the company name is not always the brand

name.AnexampleisUnileverwhosebrandsincludeRinsoandPepsodent.Unileverrelies

on brand advertising to promote their products and may rarely see the needs to implement

corporate advertising

Corporate advertising is often used to establish customer relations, so that the customers

readily accept the company and thus smoothing the sales process.

It may also be used for investor relations and community relations, or when research shows

that people are unaware of what the companys name and what it does.

Retail Advertising

Retail advertising is undertaken by retailers when they want customers to visit and shop

attheirshops.Mostoften theadvertisingmessagecontainsinformationofspecicsales

promotionsforspecictypesofproducts.Themediausedareprintmediaandtelevision

and the timing is usually close to the weekend or holidays, when people have more time for

shopping.



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Co-operative Advertising

Often manufacturers and retailers will combine their efforts (and their budgets) toundertake specialist promotions emphasizing that a particular brand or product is to be

available only through a certain outlet. Or it may involve two service providers, for example

buyinganairlineticketusingacreditcardissuedbyaspecicbank(purchaseGarudaticket

usingcreditcardissuedbyBankMandiri).

The message is relatively simple for a limited period, this brand of product is available only

at this outlet at a special offer price or with a gift, or eating at a particular restaurant using a

speciccreditcardtogetadiscountonthebill.

Direct Response Advertising

Manufactures without intermediate wholesalers or retailers often use Direct-response

advertising to reach their customers. The customers complete order forms inserted into

magazinesandcataloguesorgivetheirordersoverthetelephone.Direct-responseadvertising

is an effective means for new companies and new products to get into the market-place.

However, it has also emerged as a major selling force in its own right.

Direct-responseadvertisinghastoworkveryhardtoselltheproductbecausethereisno-

one to sell the product on a face-to-face basis. So press advertisements have to convey

all the sales messages in one go and even television and radio advertisements have tocover all the selling points comprehensively. Often, the advertisements and commercials

will incorporate sales promotion techniques (such as money-off discounts, which are quite

believableaswholesalersandretailersdonottakeacutoftheprots).

Directmailisoftenusedindirectresponseadvertising,wherebyatoolsuchascatalogueis

mailed to a prospect, and the prospect can place an order if he/she so desires.



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Points to remember

Trade advertising is used to encourage stocking, so joint promotion betweenmanufacturesandretailerswillresultinprotsforbothparties.

Trade advertising uses specialist media targeted at the buying departments and

proprietors of stores, shops, supermarkets and retail chains.

If trade advertising is the push encouraging intermediaries to stock the product

for onward selling, consumer advertising uses the pull of the push/pull process to

encourage customers to buy the products and so take them out of the retail outlets.

Consumeradvertisingusesseveralformsofpromotionincludinggenericadvertising(topromote the product concept), product and brand advertising (for individual and named

items) and range advertising (to cover a series of variants of the named product).

Corporate advertisingpromotes imageand goodwill tore-assure themarket-place,

lubricate the sales process and create a selling environment in consumer advertising.

Retailandco-operativeadvertisingpromotetheavailabilityofproductsandservices

fromspecicretailoutlets.

Direct-responseadvertisingisamajorsellingforceinitsownright,anditisparticularly

useful for new companies and products because of the avoidance of intermediaries.

Direct-responseadvertisingcanbeusedtosell/promoteproductsandservicesthat

customers may not be readily prepared to buy face-to-face in a shop.



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CHAPTER5

SPECIALIST FORMS OF ADVERTISINGCHAPTER OUTLINE

Asidefromtheconsumermarket,thereisalsotheindustrialandcommercialmarkets.Dueto

thespeciccharacteristicsofthesemarkets,specicformsofadvertising,mustbeplanned

and implemented to ensure effective communication. This chapter will provide information

regarding the purpose and use of such forms of advertising.

OBJECTIVES:

To understand the objectives of promotion to industry and commerce via business to1.

business, industrial and technical advertising

To understand the objective and use of specialist advertising to promote high technology,2.

pharmaceutical and healthcare products

To understand the objectives and use of recruitment advertising3.

Tounderstandtheobjectivesanduseofnancialadvertising4.

To understand the use of advertising in special circumstances such as crisis5.

management

Promoting to Commerce and Industry

The business sector such as a manufacturing company or an airline have needs for

products and services unique to their own type of business. Although business people

read newspapers and watch television and therefore it is possible to use these mediums to

promote the products used for commercial purpose, but alternative means of promotion are

also available and often more effective.

Business-to-BusinessAdvertising

Abusinessofceneedscomputers,desks,chairs,andstationery.Italsoneedsservices

suchassecurityserviceandcleaningservice.Ultimately,therearebusinessesthatsupply

these needs, like Hewlet Packard who would supply computers, and another manufacturer

would supply desks and chairs, etc.

Hence when one company promotes through advertising to another company, its called

business-to-business advertising.

Unlikeconsumerpromotion,whenpromotingtoabusiness,therearemanydifferentneeds

andmotivationtofulll.Forexample,thedepartmentmanagerwhenpurchasingacomputer

is motivated by the advanced features as he needs something reliable to do his job, but the

SPECIALIST FORMS OF ADVERTISING


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purchasing manager may have a budget, therefore he is considering price over features.

Moreover, the advertisingmust consider the fact that it is trying to inuenceanexpert

audience.Detailsofspecicfeatures,capacities,etcneedstobeexposedaswellasotherspecicssuchastrackrecord,promptdelivery,etc.

Industrial and Technical Advertising

The industrial market is highly technical and complicated and relies not only on

communicating complex specications to meet critical manufacturing and processing

needs, but also on the capability to deliver consistent quality, on time and within an agreed

budget.

Advertising of this type may offer not only the physical product , but also designs a total

system so that the company control the supply of all equipment including the installation.

Specialist Sector Advertising

High technology

Specialist sector advertising offers high technology products, sophisticated electronic

components, telecommunication systems, to different types of business sectors.

Pharmaceuticals/ healthcare

Pharmaceuticals/ healthcare products operates at three levels: OTC (over the counter),

pharmacist recommendation (P) and prescription only medicines.

OTC can be advertised to the general public, but the other two are strictly controlled. The

promotion of prescribed medicines in Indonesia can only be promoted through personal

selling to medical doctors.

Specialist Advertising

Recruitment advertising isusedforndingcandidatesforapositioninacompany.

Thespecicjobtitleandthequalicationofthecandidatesearchedarefullyexplainedin the advertisement. The identity of the company looking for candidates maybe

identiedintheadvertisementifitisbelievedtolurequaliedcandidates.Theprimary

media used for this type of advertisement is newspaper.

Financial advertising is used to inform the public about the companys performance

and potential. Financial advertising is strictly regulated in both content and format.



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Points to Remember

Promoting to industry, business and commerce requires an emphasis on differenttechniques and media compared with consumer advertising.

.

Althoughsomeadvertisingforthissectorcanusetelevision,mostadvertisementsare

placed in the trade, technical, professional and management press.

Thereareanumberofspeciedpurchasersandend-usersinvolvedinbuyingdecisions

for business, industrial and commercial equipment, services and supplies. All of them

havetobeinuencedbyadvertising,mostprobablyindifferentpublications.

Pharmaceuticals and healthcare promotion are similar, but there are also strictmandatory and voluntary controls that involve advertising within the health sector. It

too has its specialist media and techniques.

Recruitmentadvertising isusedbyvirtuallyeverytypeofenterprisetondtheright

candidate for a job opening. Primary used is newspaper.

Financialadvertisinginvolvesinvestorrelations,i.e.communicatingwithshareholders

and consumers (for banks). It shows the companys performance and potential.



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CHAPTER6

THE ADVERTISING MANAGER ANDADVERTISING DEPARTMENT

CHAPTER OUTLINE

The term advertiserrefers to manufacturing or service companies who have brands that

need promotion in the market place to establish favorable market share. As promotion is one

of the responsibilities of marketing, therefore, in the marketing department of the company

there is a position called Advertising Manager. The Advertising Manager plays a crucial rolein ensuring that the brands are well received in the market so that the company will achieve

itssalestargetleadingultimatelytoprotableventure.

This chapter will describe the role and responsibilities of the Advertising Manager, how he

coordinates with his department internally and how he works with the selected advertising

agencies, to establish and maintain favorable market position for the companys brand under

his care.

OBJECTIVES:

To understand the strategic role of the advertising manager in planning and determining1.

the policy and objectives for the companys advertising

To understand how the advertising manager coordinates work with his staff in the2.

advertising department

To understand how the advertising manager works together with the selected advertising3.

agency.

The Advertising Manager

The job of coordinating and managing advertising in an organization belongs to the

Advertising Manager. The Advertising Manager is employed in-house as the manager of

the companys internal advertising department. For a company to get full value from the

Advertising Manager, he or she has to be given full responsibility for the task of managing

all aspects of the companys advertising programs. However, there will be subordinates and

colleagues who take responsibility according to the amount of promotional work undertaken

by the organization.

THE ADVERTISING MANAGER AND ADVERTISING DEPARTMENT


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Role and responsibilities

Strategic planning

To plan the advertising strategy, the advertising manager must work with colleagues from

other departments such as marketing and sales, because the advertising strategy evolves

out of the marketing strategy which in turn evolves out of the business strategy. However, the

effective advertising manager is not merely taking orders from above, but also contributes

his/her expertise upwards, especially in companies where it is realized that advertising has

a powerful effect in the market-place. The process can be expressed as follows:

Business strategyMarketing strategyAdvertising strategy

The above process shows that advertising strategy derived from marketing strategy, which

mustreectthebusinessstrategy.

Determining policy, aims and objectives

Basedonthemarketingstrategy,theAdvertisingManagerandhisteamdeveloptheadvertising

objectives and what results in the market place are expected from the implementation of

the advertising campaign. To ensure that all activities are carried out in accordance to the

companys value , the Advertising Manager also sets out the advertising policies such as

advertising code of ethics that must be abide to when creating advertising communication.

Promotional planning

At this stage, the planning for the whole of the promotional activity for the company can take

place. This is not restricted to advertising but includes all the activities of the promotional mix

in order to develop an integrated marketing communications approach, an approach now

adopted by many competitive brands.

Budgeting

Basically, budgeting is calculating costs for all promotional activities and is one of the

important elements in ensuring that marketing communications objectives are met. Marketing

communications objectives are set to answer to marketing problems, and objectives are

translated into strategy and promotion programs. To be implemented effectively, promotion

programs require a budget. Although it is mentioned at this stage, the budget may have

beensetearlier,dependingonthecompanysnancialpolicy.

Planning administration and staff (procedures)

First and foremost, the advertising manager is an administrator running the advertisingdepartment. He is responsible for controlling the department, not just coping with the

workload. Consequently, it means planning the department so that it is prepared to deal with

the activities it handles, and that it is adequately staffed and equipped to undertake its role.



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He or she will look at the needs of the department in both areas and so determine what staff

he or she needs to employ and at what level of ability. He or she might look at training needs

to see who can be developed to take on responsibility for some roles and activities. All of thiswillinvolvedecidingonsalarylevelsandotherbenets.

Implementing the promotional campaign (tactics)

The Advertising Manager is the guardian of the companys reputation. He must ensure that

the companys brands are always seen in a positive way, or good brand image. Although

the advertising industry has often been accused of manipulating image, it is realized that

image must be based on facts. If customers are buying a brand because of its quality (the

advertising message/positioning is quality), then the Advertising Manager must liaises with

the production department to ensure that the standard of quality meets the customersexpectation.

BelowaretheactivitiesmanagedbytheAdvertisingManagerandhemayormaynotuse

outside help to perform some of these tasks:

Promotional activities : advertising, sales promotions, publicity, direct mail, direct

marketing

POS(pointofsales),andothermerchandisingmaterials

Salesliteratures:brochures/leaets

Exhibitions

Eventmarketing/brandactivation

It should be noted that not all of the above will be included in the promotion campaign, as the

above tactics are only included if deemed effective in supporting the marketing objectives.

Itshould alsobenoted that corporate public relations activitiessuchasnancialpublic

relations, employee communication are not the responsibilities of the Advertising Manager,

but marketing public relations activities such as sponsorship, exhibition, is within his area of

responsibilities.

Internal/external responsibilities

The Advertising Manager has internal responsibilities because some of the work is being

done by his internal staff, and while other activities are carried out external suppliers and

consultants.

External suppliers/consultants that may be used are:

Integratedmarketingcommunicationsconsultancy

Salespromotionconsultancy Directmailconsultancy

Exhibitioncontractors

Printers



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Designstudios

Photographers

Agency Selection

Advertising agencies should not be viewed as suppliers for the main reason that advertising

agencies are consulted by the marketing department for their strategic approach in

supporting the marketing objectives. Nowadays, advertising agencies approach to solve

marketing problems is to design a total marketing communication approach known by

many specialists in this area as Integrated Marketing Communication. Integrated Marketing

Communication(IMC)usesseveralpromotiontechniquesasauniedforcetoinuence

consumers perception, attitude and behavior.

Finding agencies

Thereareanumberofwaysofndingadvertisingagencies.Therstisbyreputation.Some

agencies have become household names, but agencies selected because they are well-

known may not be suitable for the type of work that the company wants. A large and famous

consumer advertising agency is not suitable for a small business-to business advertiser and,

conversely, the large agency may not want the account because the work involved may not

berewardingenoughnancially.

The Indonesian Advertising Agency Association (Persatuan Perusahaan Periklanan

Indonesia- P31), a trade associations for advertising agency, may be a good source forndingappropriateagencies.

Another source would be through referrals by colleagues of the Advertising Manager, who

can vouch with regards to the agencies reputation through their own experience

Making a short list

The selection process includes studying the agencies credentials, such as personnel, clients

list, and sample of successful campaign.

Short list approach may be as follows

Studyingtheagencyscredentials

Consideringtheservicesprovided(fullservice/partservice)

Thefeestructure

Selectingagencyforpitching.

Apitchingisanalagencyselectionprocessinvolvingtwoorthreeshortlistedagencies

presenting their strategy/concept in solving the potential clients marketing problems.

BriengtheAgencies

At the individual presentations (or new business pitches, as the agencies call them), the

advertising manager will expect to see the ability of each agency to solve the companys



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marketing problem. However, agencies cannot pluck solutions out of the air and so will

expect, and ask for, campaign and advertising briefs.

Advertising brief

The advertising brief or sometime may be called by other terms such as campaign brief,

agency brief, is a document prepared by the Advertising Manager to provide information and

guidance for the agency in creating the advertising strategy.

It contains the following information

Backgroundonthecompanysmarket(marketsize,marketshareandcompetitors)

Marketingobjectives

Targetmarket

Product/service(includingtotalproductoffering)

Timing(forlaunchesorseasonselling)

Otherplannedpromotionalactivity

Pastadvertisingcampaigns

Existingcompany,productandbrandimages

Marketresearchresults

It may also contain additional information, if available to the company:

Advertisingobjectives

Proposition(orthemeforpositioningtheproduct,brandorservice) Benets,advantagesorfeaturesthattheproductmighthavethatdifferentiateitfrom

its competitors

Toneorstylerequired(humorousorprestige,forexample)

Mandatoryclientrequirements(suchasuseofcorporateidentityorhousestyleand

tag lines).

Basedonthebriefs,agencywillpreparetheirconceptandstrategyandwillperformtheir

best to convince the potential client how their strategy and concept will help achieve the

clients marketing objectives.

Before making the nal selection, would-be clients should consider such questions as

these:

Hastheagencycomeupwithasolutiontoourproblem?

Doesitknow/understandourmarket/product/company?

Howlongdoclientsstaywithit?

Howlongdoaccounthandlersstaywithit?

Havethestaffgotexperienceofourindustry?

Hastheagencygotexperienceofourindustry?

Havethestaffgotthecreativeandtechnicalabilitytohandletheaccount?Istherightchemistrytherebetweenusandthem?

Canwetrustthem?

Canweaffordthem?



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Aretheysuitablyequipped?

Aretheyrecognized?

It is also recommended that the client visit the agency as this may help in providing answers

to some of the above questions.

Workingwiththeagency

A major role of the advertising manager is to liaise with the agency on a regular basis. This

involves a series of quarterly and monthly meetings which are often put into the diary at the

start of the clientagency relationship although there will also be other meetings to look and

approve the detail of the work being done.

The decisions reached at any clientagency meeting are recorded on a contact report. This

isnottheminutesofthemeetingbutaconrmationofdecisionsmadeandanactionplan

(it is sometimes called an action report). It will include actions that the advertising manager

needs to take (like supplying a product for a photo-shoot) as well as actions required from

agencypersonnel.Eachpersonwhoneedstodosomethingwillbeidentiedbyhisorher

initials, and the report will be circulated to all those who could be involved, as well as to key

executives in the company and the agency.

Insert table 6.1 on page 110

Client agency relationship and staff liaison

Monitoring-qualitycontrolandapproval

Monitoring is crucial so that the advertising manager can establish how the promotional

program has affected any change hopefully positively measured

against research undertaken prior to any activity.

Other more routine monitoring:

Worksaredoneontimeasscheduled

Advertisingappearedaspermediaplanandschedule Thequalityofworkareinlinewithexpectation

Costscontrol

Invoicesareprocessedandpaidasintermsofagreement

All of the above needs the advertising managers approval to ensure that objectives of

advertising and promotions are met as planned. These activities also provide ways to

analyzingsituationsothatproblemscanbeidentiedandadvertisingcanbecontinuously

improved.



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Points to remember

Theadvertiser is anyorganization that promotes itsproducts, services or policiesthroughthepromotionalmixandincludesprot-makingcompaniesaswellascharities

and public sector organizations.

Theadvertisingmanagerworks in themarketingdepartment of acompany and is

responsible for advertising and promotion activities.

The advertisingmanager is responsible for strategic planning; determining policy,

aims and objectives; promotional planning; budgeting; departmental organization; and

implementing the tactics of the program.

Themajorresponsibilityoftheadvertisingmanageristoensurethatthepromotional

program is implemented effectively.

Theadvertisingmanagerisalsoresponsibleforbuilding,managingandmaintaining

the image and reputation of the company, its products and services.

Theadvertisingmanagerdoesnotworkinisolationbutliaiseswithotherdepartments

such as marketing, sales and production.

Theadvertisingagencyisselectedbytheadvertisingmanageranditsappointmentis

approved by him or her together with the marketing manager and possibly the board.

Theadvertisingmanagerliaiseswiththeadvertisingagencybyregularmeetingsand

routinecontacttoensurethatitisfulllingtherequirementsoftheclientcompany.

Theadvertisingmanagerdecidesonwhichworkwillbedoneinternallyandwhichwill

be done by external suppliers.

Monitoringandevaluatingtheworkoftheexternalsuppliersandtheinternalstaffto

ensure satisfactory standards is the responsibility of the advertising manager.

Theadvertisingmanageralsomonitorsexpenditure toensure thatallwork isdone

within budget.



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CHAPTER7

DETERMINING AND SETTING OUT BUDGETSCHAPTER OUTLINE

Every program and activities performed by the company requires budget allocation. Advertising

andpromotionarenoexception.Beforethescalyearthemarketingdepartmentandthe

advertising department sit down together to discuss budget allocation for all advertising and

promotion activities.

The basis of budget calculation is based on many factors such as objectives, target sales,and market data such as expenditures of direct competitors.

This chapter will describe the many methods for setting advertising and promotion budget.

OBJECTIVES:

To understand that budgets are based on past performance and future forecasts.1.

To understand how budget are based on promotional plans and that it must have2.

senior management approval.To understand the various ways of setting up budget3.

Setting up budget and budget period

Allprogramandactivitiestobecarriedoutinascalyearmustbecarefullyestablishedand

approvedbyseniormanagementofthecompany.Budgetisbasedonpastperformanceand

forecast of future sales and the number of tasks to be carried out within the budget period.

Thebudgetperiodisusuallyayear,normallythenancialyearoftheorganization.Budgetsare therefore prepared by the advertising department and other departments towards the

endofeachnancialyearandapprovedbytheboardofdirectorsreadyforthenextyear.

In setting up the advertising budget, the Advertising Manager relies on some information. One

is information from the sales department indicating sales achievements and also problem

areas. Other information is market research from the marketing department which provides

information on market trends, consumer behavior, competitors activities, etc.

Methods of setting up budget

Objectivetaskmethod

Historicalmethod

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Percentagepastsalesmethod

Percentageoffuturesalesmethod

Competitorparitymethod Themarketsharemethod

Affordabilitymethod

Marginalmethod

Theunitmethod

The above methods can be used in combination as the aim is to a structured table of

expenditure so that the promotional plan can successfully managed.

The objective task method

This method requires the setting up of advertising and promotional objectives, and then

putting sums of money against all that needs to be carried out to achieve the objectives.

Therefore the steps in using this method are:

Setupadvertising/promotionobjectives

Decidewhatpromotionactivitiestobecarriedouttoachievetheobjectives

Setupthebudget.

Historicalmethod

The historical method is based on advertising and promotion spending of the previous years.Apercentagemaybeaddedtocoverinationandwillbeaddedifthereareextraactivities,

for example using more media to extend media coverage.

Percentage of past sales method

This method is based on the idea that if a product sold well in previous years then it should

be supported for future years. Alternatively stated, it is a way of maintaining sales at the

previous years level. The idea works well if the product is growing and reaching saturation,

but not if it has reached maturity or is in decline and needs abandoning or bolstering. There

is also a danger that, if the product is becoming successful, it may sell well in any case, butthisisadifcultdecisionthatneedsthejointdeliberationsofthemarketingmanager,the

sales manager and the advertising manager.

Percentage of future sales method

This method is based on predicting the volume of sales that is likely to be achieved. This is

notsimplyguessworkbutbasedonmarketresearchandscienticforecasting.

Deciding on percentage.



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There is no magic formula to be used, but based on discussion and deliberation of the senior

management. A fast moving consumer product with heavy competition may spend more

than 15% of its sales on promotion. A leading brand may spend less, but because of highvolume of sales, a small percentage will represent a large amount of money.

Competitor parity/market share method

One of the most important responsibilities of the Advertising Manager is to monitor competitive

brands promotional activities. He can access this information by purchasing advertising

expenditure data.

However, it is not always a good idea to let your rival dictate your advertising expenditure,

especiallyifsimilarmediastrategyisfollowed.Directlycompetingbrandsdonothaveexactly

the same market characteristics thus lending to different advertising objectives and strategy.

Moreover,ifthecompetingbrandhasbiggermarketshare,itisdenitelynotwisetohave

the same expenditure.

Therefore, competitors expenditure is to be used as a guide in setting up the advertising

budget.

The affordable method

The affordable method is simply a decision made by a senior member of the board, such as

thenancedirector,withouttheneedtoconsultwiththemarketingorsalesdepartment.

This method is rarely used anymore, especially if the company is marketing oriented. This

method may be used for a new company or new product, where promotion costs will be

calculated like any other activity in the company.

The marginal method

Themarginal(orstratied)methodisbasedonjustifyinglevelsofexpenditureinrelationto

the amount of increased sales that will occur and is a favored method of sales-orientated

companies. It can, therefore, be applied to the various layers of activity in the promotionalmix or the integrated marketing communications approach. It can also be used to justify

increasing sophistication in each of the techniques employed (eg using full-color advertising

rather than black-and-white advertisements, which have lower media and production

costs).

Sales promotion and product advertising may have an immediate effect by selling more,

sothesewouldbegivenpriorityunderthemarginalorstratiedmethod.Theadvertising

manager has to decide on the various techniques, methods and even media that would be

appropriate, and cost them according to the importance that they will have in achieving the

companys sales targets before including them within the budget



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Per unit method

Theper-unitmethodisaveryscienticmethod,butisunfortunatelyproduction-ledratherthan market-driven. It depends on every operation in the production and supply of a product

being costed from raw materials to the cost of distribution. Advertising is regarded as a

distribution cost in some companies.

This method requires a detailed cost analysis, where some money from total cost of supplying

eachunitisallocatedtopromotion,afteraccountingforprotmargin.Thismethodcould

cause overspending if greater volume of units is sold than was forecast and if conversely if

sales decrease, it does not account for more money.



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Points to remember

Budgetsaresetannuallyforthecompanyscalyear.

Oneofthekeymethodsforsettingupbudgetistheobjectiveandtaskmethod,where

by what needs to be done is established and costs are calculated.

Certainmethodsofdeterminingbudgetarebasedonpastperformance

o Percentage of past sales

o Historical method

o Competitor parity/market share method.

Othermethodsarebasedonfutureforecasts:taskandobjectivemethod,affordablemethod, percentage of future sales.

Budgetshouldbemarketorientednotproductionbased(perunitmethod).


intro to advertising adv media planning 001

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