som notes on advt

8/3/2019 Som Notes on Advt..

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DEVELOPING AND MANAGING AN ADVERTISING PROGRAM

Advertising is called direct communication with customers

According to Phillip Kotler: advertising is the paid form of non-personal presentation and promotion of ideas,

goods, or services by an identified sponsor.

Mission: It states the objectives of the advertising. It also includes the sales goals of the company.

Money: It gives an idea that how much money should be spent by the company for the advertisement.Factors to be considered for this are stage of product life cycle, market share and consumer base,competition, advertisement frequency and product substitutability.

Message: Message includes what message should be spent in advertisement. It includes messagegeneration, message evaluation and selection, message execution and social responsibility review.

Media: It includes which media should be used for the advertisement. It also includes reach, frequency,impact of the advertisement. It also contains major media types, media vehicles, media timing andgeographical media allocation.

Measurement: it is nothing but evaluation of the results. It measures communication impact and salesimpact by an advertisement.

SETTING THE OBJECTIVES

1) Informative advertising :The prime objective of the advertising is to inform the existing and potential customers about the product.

2) Persuasive advertising:It aims to create liking preference, conviction and purchase of a product or service. Persuasion will createdemand of the product.

3) Reminder advertising:It aims to simulate repeat purchase of products and services.This will remind the customers that the product may be needed in the near future.

4) Reinforcement advertising:


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It aims to convince current purchases that they made the right choice.

DECIDING ON THE ADVERTISING BUDGET.

After determining advertising objectives the company next sets its advertising budget for each product.Specific factors that should be considered when setting the advertising budget.

1) Stage in the product life cycle:New products typically need large advertising Budgets to build awareness and to gain consumer trial. Maturebrands usually require lower budgets as the ratio to sales.

2) Market share and consumer base:High market share brands usually needs more advertising spending as a person of sales than do low marketshare brands. Building the market or taking share from competitor requires larger advertising spending thandoes simply maintaining current share.

3) Competition and clutter :

In a market with many competitors and high advertising spending, a brand must advertise more heavily tobe notices above the noise in the market.

4) advertising frequency:

when many repetitions are needed to present the brands message to consumers, the advertising budgetmust be larger.

5) Product substitutability:A brand that closely resembles other brands in its product class requires heavy advertising to set it apart.When the product differs greatly from competitors, advertising can be used to point out the differences to

consumers.

DEVELOPING THE ADVERTISING CAMPAIGN

In designing and evaluating an ad campaign, it is important to distinguish the message strategy orpositioning of an ad from its creative strategy.

Message generation and evaluation

A large advertising budget does not guarantee a successful advertising campaign. No matter how big thebudget, advertising can succeed only if commercials gain attention and communicate well.

Todays advertising messages must be better planned, more imaginative, more entertaining and morerewarding to consumers to gain and hold attention. Creative strategy will play an increasingly important role

in advertising success.

Effective message strategy begins with identifying customer benefits that can be used as advertisingappeals. Advertising appeals should have three characteristics:

+Meaningful, Believable and Distinctive.

Creative Development and Execution

The impact of the message depends not only on what is said but also on how it is said. Any message can be

presented in different execution styles. Message execution can be decisive. They can be followingadvertising medium for execution:

Television Ads: It is generally acknowledge as the most powerful advertising medium. Properly designed and

executed TV ads can improve brand equity and affect sales and profits.


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Print Ads: It offer a stark contrast to broadcast media. In general there are two main print media:Magazines and

Newspaper.

Radio Ads: It is cheaper than television. Radio listening is expected to increase significantly over the comingyears. Radio Ads can be extremely creative. Creative devices can tap into the listeners imagination to createpowerfully relevant and popular images.

Film Ads: India is the largest producer of films in the world. Many local firms use this medium to advertisetheir products and services as this minimizes the spillage and the wastage of advertisement money.

SOCIAL RESPONSIBILITY REVIEW:Advertiser and their agencies must be sure advertising does not over step social and legal norms. Publicpolicy makers have developed a substantial body of lows and regulations to govern advertising.

DECIDING ON MEDIA AND MEASURING EFFECTIVENESS:

After choosing the message, the advertisers next task is to chose media to carry it. Major steps in mediaselection are as under:

1) Deciding on reach, frequency, and impact:

Reach is a measure of the percentage of people in the target market who are exposed to the ad campaignduring a given period of time.Frequency is a measure of how many times the average percent in the target market is exposed to themessage.

The advertiser must also decide on the desired media impact-the qualitative value of a message exposurethrough a given medium.

2) Choosing among major media types:The major media types are newspapers, televisions, direct mail, radio, magazines, outdoor and online. Themedia habits of the target consumers will affect media choice. Advertisers look for media that reach targetconsumers effectively. Different types of messages may require different media. Cost is another majorfactor in media choice. The media planner looks at the total cost of using a medium. Media impact an cost

must be reexamined regularly. As a result, advertisers are increasingly turning to alternative media, rangingfrom cable television and outdoor advertising to parking meters and shopping cards.

3) Selecting specific vehicles:

The media planner now must chose the best media vehicles and specific media within each general mediatype, media planners must complete the cost per thousand percents reached by a vehicle. The media

planners must also consider the cost of producing ads for different media. Whereas, newspaper ads maycost very little to produce flashy television ads may cost millions.

4) Deciding on media timing and allocation:The advertiser must also decide how to schedule the advertising over the course of a year. The firm can

vary its advertising to follow the seasonal pattern, or to be the same all year. Most firms do some seasonaladvertising. The advertiser has to chose the pattern of the ads. The idea is to advertise heavily for a shortperiod to build awareness that carries over to the next advertising period.

EVALUATING ADVERTISING EFFECTIVENESS:Good planning and control of advertising depend on measures of advertising effectiveness. Most advertisers


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try to measure the communication effect of an ad-that is, its potential effect on awareness, knowledge, orpreferences.

Communication-Effect Research:It seeks to determine whether an ad is communicating effectively. There are three major methods of pretesting.

CONSUMER FEEDBACK METHOD:Ask the consumers for their reactions to a proposed ad.

PORTFOLIO TEST:

It ask consumers to view or listen to a portfolio of advertisements. Consumers are than asked to recall allthe ads on their contains, aided or unaided by the interviewer.

LABORATORY TEST:

It use equipment to measure physiological reactions like heartbeat, blood pressure, perspiration to an ad; orconsumers may be ask to turn a knob to indicate their moment to moment liking or interest while viewingsequence material.

Sales Effect Research:Advertisings sales effect is generally harder to measure than its communication effects. Sales are influencedby many factors such as features, price and availability as well as competitors actions.

Formula for measuring the sales impact of advertising:

1.) Share of Expenditure

2.) Share of voice

3.) Share of Mind and Heart

4.) Share of Market


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SALES PROMOTION

Sales Promotion consists of short-term incentives to encourage purchase or sales of the product or service.Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.

Sales promotion includes tools for:+ Consumer promotion

+ Trade Promotion+ Business and Sales- force promotion.

OBJECTIVESSales promotion tools vary in their specific objectives.Sales promotions should be consumer relationship building. They should help to reinforce the productsposition and build long-term relationships with consumers. Even price promotions can be designed to help

build customer relationships.

MAJOR DECISIONS

In using sales promotion, a company must establish its objectives, select the tools, develop the program,pretest the program, implement and control it, and evaluate the results.

ESTABLISHING OBJECTIVESSales promotion objectives are derived from broader promotion objectives, which are derived from more

basic marketing objectives developed for the product. For consumers, objectives include encouragingpurchase of larger-sized units, and long term brand equity effects.For the sales force, objectives include encouraging support of a new product or model, encouraging moreprospecting, and stimulating off season sales.

SELECTING CONSUMER PROMOTION TOOLSThe main consumer promotion tools include samples, coupons, cash refunds, premiums, advertisingspecialties, patronage rewards, point of purchase, displays and demonstrations and contests, sweepstakesand games.

SELECTING CONSUMER PROMOTION TOOLSMore sales promotions are directed to retailers and wholesalers than to consumers. Trade promotion can

persuade retailers or wholesalers to carry a brand, to give it shelf space, to promote it in advertising, andpush it to consumers.

Manufacturers use several trade promotion tools. Many tools are used for consumer promotions contests,

premiums, displays can also be used as trade promotions. Or the manufacturer may offer a straight discountoff the list price on each case purchased during a stated period of time. Dealers can use the discount forimmediate profit, for advertising or for price reductions to their customers.

Manufacturers also offer an allowance in return for the retailers agreement to feature the manufacturersproducts in some way. Manufacturers may offer free goods, which are extra cases of merchandise, toresellers who buy a certain quantity or who feature a certain flavor or size.

SELECTING BUSINESS AND SALES FORCE PROMOTION TOOLS

Companies spend large amounts of money on business and sales force promotion tools. These tools are

used to gather business leads, impress and reward customers, and motivate the sales force to greatereffort. Companies typically develop budgets for each business promotion tool that remain fairly constant


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from year to year.

DEVELOPING THE PROGRAMIn planning sales promotion programs, marketers are increasingly blending several media into a totalcampaign concept. In deciding to use a particular incentive, marketers have several factors to consider:+ size of the incentive+ conditions for participation

+ duration of the promotion+ distribution vehicle+ timing of the promotion+ total sales promotion budget.

PRETESTING, IMPLEMENTING, CONTROLLING, AND EVALUATING THE PROGRAM.Although most sales promotion programs are designed on the basis of experience, pretests can determine ifthe tools are appropriate, the incentive size optimal, and the presentation method efficient. Consumers can

be asked to rate or rank different possible deals, or trial tests can run in limited geographic areas.

Marketing managers must prepare implementation and control plans that cover lead time and sell-in timefor each individual promotion.

Manufacture can evaluate the program using three methods:

+ sales data

+ consumer surveys and

+ experiments.

EVENTS AND EXPERIENCES

EVENTS OBJECTIVES

Marketers report a number of reasons why they sponsor events:1) to identify with a particular target market or life style

2) to increase awareness of company or product name3) to create reinforce consumer perceptions of key brand image associations

4) to enhance corporate image dimensions.5) to create experiences and evoke feelings6) to express commitment to the community or on social issues.7) to entertain key clients or reward key employees.

8) to permit merchandising or promotional opportunities.

MAJOR DECISIONSDeveloping successful sponsored events involves choosing the appropriate events; designing the optimal

sponsorship program for the event; and measuring the effects of sponsorship.

CHOOSING EVENT OPPORTUNITIESBecause of the huge amount of money involved and the number of event opportunities that exist, many

marketers are becoming much more strategic about the events with which they will get involved and themanner in which they will do so.


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An ideal event might be one :1) whose audience closely matches the desired target market

2) that generates much favorable attention3) that is unique but not encumbered with many sponsors

4) that lends itself to ancillary marketing activities5) that reflects or enhances the brand or corporate image of the sponsor

DESIGNING SPONSORSHIP PROGRAMSA sponsor can strategically identify itself at an event in a number of ways, including banners, signs andprograms. At least two to three times the amount of the sponsorship expenditure should be spent on relatedmarketing activities.

MEASURING SPONSORSHIP ACTIVITIESAs with public relations measurement of events is difficult.

There are two basic approaches to measuring the effects of sponsorship activities:+ the supply side method : it focuses on potential exposure to the brand by assessing the extent of media

coverage.+ the demand- side method: It focuses on reported exposure from consumer.

PUBLIC RELATIONS

Public relations is building good relations with the companys various publics by obtaining favorable public,building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.Public relations departments may perform any or all of the following functions.

+ Press relations or press agency

+ Product publicity

+ public affairs


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+lobbying

+ investor relations

+ development

MARKETING PUBLIC RELATIONS

MPR, like financial PR and community PR, serves a special constituency, the marketing department.

The old name for MPR was publicity.

MPR is also effective in blanketing local communities and reaching specific groups. Managers must acquiremore skill in using MPR.

MAJOR DECISIONS IN MARKETING

In considering when and how to use MPR, management must establish the marketing objectives, choose thePR messages and vehicles, implement the plan carefully, and evaluate the results. The main tools of MPR

are described as under :

+ Publications

+ Events

+ Sponsorship

+ News

+ Speeches

+ Public- service activities

+ Identify Media

ESTABLISHING OBJECTIVES

MPR can build awareness by placing stories in the media to bring attention to a product, service, person,organization, or idea. It can hold down the promotion cost because MPR costs less than direct- mail andmedia advertising.MPR is increasingly borrowing the techniques and technology of direct- response marketing to reach target

audience members one-on-one.

CHOOSING MESSAGES ANS VEHICLES

The MPR manager must identify or develop interesting stories about the product. PR ideas include hostingmajor academic conventions, inviting expert or celebrity speakers, and developing news conferences. Eachevent is an opportunity to develop a multitude of stories directed at different audiences.

IMPLEMENTING THE PLAN AND EVALUATING RESULTS


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MRPs contribution to the bottom line is difficult to measure, because it is used along with other promotionaltools. The three most commonly used measures of MPR effectiveness are number of exposures; awareness,

comprehension, or attitude change; and contribution to sales and profits.

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