THIS IS FOR UPTU 7TH SEM ONLY Advertising Definition of Advertisement- • “Advertising is any paid-for communication overtly intended to inform and/or influence one or more people.” Jeremy Bullmore, Director, WPP • “I do not regard advertising as entertainment or an art form, but as a medium of information.” David Ogilvy • According to the Canadian-US advertising pioneer, John E. Kennedy (1864-1928), an advertisement is salesmanship in print. There is not a single generally accepted definition of advertising. Instead, there are several ways to define it. In summary: PROMOTION MIX Promotion mix- A specific combination of promotional methods used for one product or a family of products. Elements of a promotion mix may include print or broadcast advertising, direct marketing, personal selling, point of sale displays, and/or merchandising. There are five main aspects of a promotional mix. These are: 1. Advertising - Advertising presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. 2. Personal selling –It is a process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face selling or via telephone. 3. Sales Promotion – Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability called sales promotion. Examples: coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. 4. Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media called public relation. Examples Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. 5. Direct Marketing- It is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising. 6. Corporate image- Corporate image may also be considered as the sixth aspect of promotion mix. The image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product or use a service from this company as they would have been, if the company had a good image. Sponsorship is sometimes added as a seventh aspect. Objectives of Advertising – The real objective of advertising is effective communication between producers and consumers with the purpose to sell a product, service, or idea. The main objectives of advertising are as follows: 1. Informative- Objective of advertising is to inform its targeted audience/customers about introduction of new product, update or changes in existing products or product related changes, information regarding new offers and schemes. Informative advertising seeks to develop initial demand for a product. The promotion of any new market entry tends to pursue this objective because marketing success at this stage often depends simply on announcing product availability. Thus, informative advertising is common in the introductory stage of the product life cycle. 2. Persuasive- Objective of advertising is to increase demand for existing product by persuading new customer for first time purchase and existing customers for repurchases. Persuasive advertising attempts to increase demand for an existing product. Persuasive advertising is a competitive type of promotion suited to the growth stage and the early part of the maturity stage of the product life cycle. 3. Reminder- The objective of advertising is to remind customers about existence of product, and ongoing promotional activities. Reminder advertising strives to reinforce previous promotional activity by keeping the name of a product before the public. It is common in the latter part of the maturity stage and throughout the decline stage of the product life cycle. Mathews, Buzzell, Levitt and Frank have listed some specific objectives of advertising. • To make an immediate sale. • To build primary demand. • To introduce a price deal. • To build brand recognition or brand insistence. • To help salesman by building an awareness of a product among retailers. • To create a reputation for service, reliability or research strength. • To increase market share. Scope and Importance of Advertising Advertisements are important for: 1. Standardized products 2. Products aimed at large markets 3. Products that have easily communicated features 4. Products low in price 5. Products sold through independent channel members and/or are new. Nature of Advertising: Need to consider the following issues: • Does the product possess unique, important features to focus on Unique Selling Point (USP) • Are the hidden qualities important to the buyers • Is the general demand trend for the product adequate • Is the market potential for the product adequate • Is the competitive environment favorable • Is the organization able and willing to spend the required money to launch an advertising campaign Functions of Advertising – Following are the basic functions of advertising: 1. To distinguish product from competitors products There are so many products of same category in the market and they competes with each other, advertising performs the function of distinguishing advertisers product from competitors. 2. To communicate product information Product related information required to be communicated to the targeted customers, and advertisement performs this function. 3. To urge product use Effective advertisement can create the urge within audience for a product. 4. To expand product distribution When the market demand of a particular product increases, the number of retailer and distributor involved in sale of that product also increases, hence product distribution get expanded. 5. To increase brand preference There are various products of different bands are available, the brand which is effectively and frequently advertised is preferred most. 6. To reduce overall sale cost Advertising increases the primary demand in the market. When demand is there and the product is available, automatically the overall cost will decrease, simultaneously the cost of sales like distribution cost, promotional cost also gets decreased. Classification of Advertising – Advertising can be classified on the basis of Function, Region, Target Market, Company demand, desired response, and Media. A) Classification on the basis of function • Advertisement informs the customers about a product • Advertisement persuades the consumers to buy a products • Advertisement reminds existing customers about the presence of the product in the market Let us discuss some important types of advertising based on the functional aspect of advertising. 1. Informative advertising: This type of advertising informs the customers about the products, services, or ideas of the firm or organization. 2. Persuasive advertising: This type of advertising persuades or motivates the prospective buyers to take quick actions to buy the products or services of the firm. Example: “Buy one, get one free”. 3. Reminder advertising: This genre of advertising reminds the existing customers to become medium or heavy users of the products or services of the firm that have been purchased by them at least once. This type of advertising exercise helps in keeping the brand name and uses of the products in the minds of the existing customers. B) Classification on the basis of region Advertisements can also be classified on the basis of the region, say: 1. Global advertising: It is executed by a firm in its global market niches. Reputed global magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science. Cable TV channels are also used to advertise the products through out world. Supermodels and cinema stars are used to promote high-end products Examples: Sony, Philips, Pepsi, Coca Cola, etc. 2. National advertising: It is executed by a firm at the national level. It is done to increase the demand of its products and services throughout the country. Examples: BPL (Believe in the best). Whirlpool Refrigerator (Fast Forward Ice Simple) etc. 3. Regional advertising: If the manufacturer confines his advertising to a single region of the country, its promotional exercise is called Regional Advertising. This can be done by the manufacturer, wholesaler, or retailer of the firm. Examples: Advertisements of regional newspapers covering those states or districts where these newspapers are circulated. Eg. The Assam Tribune (only for the NE region) etc. 4. Local advertising: When advertising is done only for one area or city, it is called Local Advertising. Some professionals also call it Retail Advertising. It is sometime done by the retailer to persuade the customer to come to his store regularly and not for any particular brand. Examples: Advertisements of Ooo la la, Gupshup (Local FM channels) etc. C) Classification on the basis of target market Depending upon the types of people who would receive the messages of advertisements, we can classify advertising into four subcategories: 1. Consumer product advertising: This is done to impress the ultimate consumer. An ultimate consumer is a person who buys the product or service for his personal use. This type of advertising is done by the manufacturer or dealer of the product or service. Examples: Advertisements of Intel, Kuttons (shirt), Lakme (cosmetics) etc. 2. Industrial product advertising: This is also called Business-to-Business Advertising. This is done by the industrial manufacturer or his distributor and is so designed that it increases the demand of industrial product or services manufactured by the manufacturer. It is directed towards the industrial customer. 3. Trade advertising: This is done by the manufacturer to persuade wholesalers and retailers to sell his goods. Different media are chosen by each manufacturer according to his product type, nature of distribution channel, and resources at his command. Hence, it is designed for those wholesalers and retailers who can promote and sell the product. 4. Professional advertising: This is executed by manufacturers and distributors to influence the professionals of a particular trade or business stream. These professionals recommend or prescribe the products of these manufacturers to the ultimate buyer. Manufacturers of these products try to reach these professionals under well-prepared programmes. Doctors, engineers, teachers, purchase professionals, civil contractors architects are the prime targets of such manufacturers. 5. Financial advertising: Banks, financial institutions, and corporate firms issue advertisements to collect funds from markets. They publish prospectuses and application forms and place them at those points where the prospective investors can easily spot them. D) Classification on the basis of desired responses An ad can either elicit an immediate response from the target customer, or create a favorable image in the mind of that customer. The objectives, in both cases, are different. Thus, we have two types of advertising under this classification. 1. Direct action advertising: This is done to get immediate responses from customers. Examples: Seasons sale, purchase coupons in a magazine. 2. Indirect action advertising: This type of advertising exercise is carried out to make a positive effect on the mind of the reader or viewer. After getting the advertisement he does not rush to buy the product but he develops a favorable image of the brand in his mind. 3. Surrogate advertising: This is a new category of advertising. In this type of promotional effort, the marketer promotes a different product. For example: the promotion of Bagpiper soda. The firm is promoting Bagpiper Whisky, but intentionally shows soda. They know that the audience is quite well aware about the product and they know this fact when the actor states, Royal Stag mega music” make it large”). E) Classification on the basis of the media used in advertisement The broad classification based on media is as follows: 1. Audio advertising: It is done through radio, P A systems, auto-rickshaw promotions, and four-wheeler promotions etc. 2. Visual advertising: It is done through Pop displays, without text catalogues, leaflets, cloth banners, brochures, electronic hoardings, simple hoardings, running hoardings etc. 3. Audio-visual: It is done through cinema slides, movies, video clips, TV advertisements, cable TV advertisements etc. 4. Written advertising: It is done through letters, fax messages, leaflets with text, brochures, articles and documents, space marketing features in newspapers etc. 5. Internet advertising: The world wide web is used extensively to promote products and services of all genres. For example Bharat Matrimony, teleshop, asianskyshop etc. 6. Verbal advertising: Verbal tools are used to advertise thoughts, products, and services during conferences, seminars, and group discussion sessions. Kinesics also plays an important role in this context. Definition of Advertising Agency According to American marketing Association, An Advertising agency is an independent business organisation composed of creative and business people who develop, prepare and place advertising in advertising media for sellers seeking to find customers for their goods and services. Advertising Agency is an independent business organisation specialised in advertising related work which undertakes the work of planning, preparing, and executing advertising campaign for its clients. Advertising Agency is a body of experts specialised in advertising. Advertising Agency performs following activities for its clients: Planning: Advertising agency studies the product or services of clients to identify the inherent qualities in relation to competitors product or services, analyses competition and marketing environment to formulate advertising plan. Preparing: After the study of product, competition, and marketing environment the experts of agency has to write, design, and produce the advertisement, it is also called formulation of ad-copy. Executing: Now, media is selected for time or space, ad is delivered to media, checked, verified, and released in media. After ad release payment is done to media and client is billed for the services provided. Functions of Advertising Agency Advertising agency performs following functions: 1. Contacting Clients: Advertising agency first of all identify and contact firms which are desirous of advertising their product or services. Ad-agency selects those firms which are financially sound, makes quality products or services, and have efficient management. 2. Planning Advertisement: Advertising agencys next function is to plan ad for its client. For ad planning following tasks are required to be performed by ad-agency: • Study of client’s product to identify its inherent qualities in relation to competitor’s product. • Analysis of present and potential market for the product. • Study of trade and economic conditions in the market. • Study of seasonal demand of the product • Study of competition, and competitor’s spending on advertising. • Knowledge of channels of distribution, their sales, operations, etc. Finally, formulation of advertising plan 3. Creative Function: Creative people like - the copywriters, artists, art-directors, graphic-specialists have to perform the creative function which is most important part of all advertising function. 4. Developing Ad-Copy: Ad-agency with the help of their writers, artists, designers, animators, graphic-designers, and film-directors prepares and develops Ad-copy. 5. Approval of Client: Ad-copy is shown to the client for his approval 6. Media Selection and scheduling: It is very important function of ad-agency to select appropriate media for its clients. Ad-agency has to consider various factors like- media cost, media coverage, ad-budget, nature of product, clients needs, targeted customer, and etc while selecting media. 7. Ad-Execution: After approval, verification, and required changes, the ad-copy is handed to the media for ad-execution. 8. Evaluation Function: After execution, it is the responsibility of ad-agency to evaluate the effectiveness of ad to know how beneficial the ad is for its client. 9. Marketing Function: The advertising agency also performs various marketing function like- selecting target audience, designing products, designing packages, determining prices, study of channel of distribution, market research, sales promotion, publicity, etc. 10. Research Function: Ad-agency performs various research functions like- research of different media, media cost, media reach, circulation, entry of new media, information regarding ratings, and TRPs of TV programmes, serials. 11. Accounting Function: Accounting function of ad-agency includes checking bills, making payments, cash discounts allowed by media, collection of dues from clients, payment to staff, payment to outside professionals like- writers, producers, models, etc. Developing an Advertising Campaign • Identify and Analyze the Advertising Target. • The group of people for which the advertisement is aimed at, may direct campaign at only a portion of the target market. • Research and analyze advertising targets to establish an information base for a campaign. Generally increase advertisers’ knowledge about their target--the more effective the campaign. Steps of Advertising Campaign:- 1. Defining Objectives. What the firm hopes to accomplish from the campaign, should be clear, precise and measurable, can help measure the success at the end of the campaign. Use a benchmark. At what stage are the target market in the Product Adoption Process. What are the goals of the campaign...to increase purchases, to generate traffic in the retail store etc. 2. Creating an Advertising Message: • A function of the products features, uses and benefits. • Must be aware of the characteristics of target market, different message to different target market. 3. Developing a Media Plan Sets forth the exact media vehicles to be used and dates and times of ads. Effectiveness of plan determines how many people in the advertisers target will be exposed to the message. Need to select the media to be used and dates and times ads appear. 4. Executing the Campaign Requires extensive planning and coordination. Advertising Agencies, production costs, research organizations, media firms, printers, photographers, and commercial artists etc. Detailed schedules are needed to insure everything is accomplished on time. (video) Evaluating the effectiveness of the campaign DAGMAR stands for Defining Advertising Goals for Measured Advertising Results. DAGMAR Model was developed by Russell Colley in 1961 for setting advertising objectives and measuring advertising results. According to DAGMAR Model the ultimate objective of advertising involves a communication task, intended to create awareness, impart information, develop attitude and induce action. Advertising objective is to carry a consumer through four levels of understanding:- 1. From unawareness to awareness - consumer must be aware of product or company, 2. Comprehension - what the product is and its benefits, 3. Conviction - mental conviction to buy the product. 4. Action - finally buy the product. Communication Process in DAGMAR Approach 1. Awareness: Before the purchase behaviour is expected from target audience it is necessary to make the audience aware with the product or company. The initial communication task of the advertising activity is to increase the consumer awareness of the product or offer. 2. Comprehension: Only Awareness is not be sufficient to stimulate a purchase, sufficient knowledge and information about product or organisation is necessary. This step involves the target audience to learn something about product, organisation, or offer. Here communication task of advertising activity is to make consumer learn about product - product characteristics, benefits, or uses. 3. Attitude or Conviction: At this step a sense of conviction is established. By creating interest and preference, buyers are moved to a position where they are convinced that a particular product in the class should be tried at the next opportunity. At this step communication task of advertising activity is to mould the audience’s beliefs about the product and this is often done through messages that demonstrate the product’s superiority over a rival or by talking about the rewards as a result of using the product. 4. Action: Finally, communication must encourage buyer to engage in purchase activity. And todays advertising world, every firm invests heavily on advertisement for making their products or services known to the target audience and to arouse the interest of target audience in firms products or services. Advertising is done with some predefined objectives- to generate awareness about product, to arouse interest in product, to change the attitude of audience towards product, to stimulate desire for product, or to make them buy the product. Advertising is of no use if the defined objective of communication is not achieved. So, it is necessary to evaluate the effectiveness of advertisement at different level, starting from creation of ad-copy to running of ad on media, and also after execution of ad to know to what extent the objectives are achieved. EVALUATION OF ADVERTISING Types of Test Following are the types of test applied in advertisement evaluation: • Pre-Testing • Concurrent Testing • Post Testing 1. Pre-Testing: Pre-Testing follows the universal law Prevention is better than cure. Advertising can be pretested at several points in the creative development process. Pre-Testing helps the advertiser to make a final go or no go decision about finished or nearly finished advertisement. Pre-Testing method refer to testing the potentiality of a communication message or ad-copy before printing, broadcasting, or telecasting. Following are the types of pre-testing methods: A. Qualitative Methods of Pre-Testing 1. Focus Group: Focus group involves exposing the ad to a group of 8 to 12 respondents. Focuses groups are used with surprising frequency for making final go or no go decision. A moderator facilitates the discussion and walk s the group through a series of issues that are outlined in discussion guide. 2. In-depth Interview: In-depth interview involve one on one discussion with respondents. Interviews are very effective when a researcher has a good idea of critical issues but does not have a sense of the kind of responses one will get. This method can be effectively used to generate new ad concepts and ideas. 3. Projective Techniques: In this technique the respondent is instructed to project himself into the situation and verbalize the thoughts. Projective technique can be very effective for evaluating ad concepts and for generating new ad concepts. But, it cannot be used for making final decisions. B. Quantitative Methods of Pre-Testing 1. Checklist Method: Checklist method is used to test the effectiveness of ad-copy. The purpose of this method is to ensure that all elements of the ad-copy are included with due importance in the advertisement. As it is a pre-test method any omitted element of ad can be included in the copy before release of the advertisement. 2. Consumer Jury Method: This method involves the exposure of alternative advertisements to a sample of jury or prospects. This test is designed to learn from a typical group of prospective customers. Advertisements which are unpublished are presented before the consumer jury either in personal interviews or group interviews and their reactions are observed and responses are recorded. 3. Sales Area Test: Under this method advertising campaign is run in the markets selected for testing purposes. The impact of the campaign is evaluated by actual sales in the selected markets. The market with high sales is considered the best market for effective sales campaign. In other markets suitable changes are made in the advertising campaign. Questionnaire Method: It is a list of questions related to an experiment. The draft of an advertisement along with some relevant questions is to be sent to a group of target consumers or advertising experts. Their opinions are collected and analyzed to find out whether the proposed advertisement is satisfactory or not. 4. Recall Test: Under this method, advertising copies are shown to a group of prospects. After few minutes they are asked to recall and reproduce them. This method is used to find out how far the advertisements are impressive. 5. Reaction Test: The potential effect of an advertisement is judged with the help of certain instruments, which measure heartbeats, blood pressure, pupil dilution etc. Their reactions reveal the psychological or nervous effects of advertising. 6. Readability Test: All the listeners of advertisements cannot read it equally. So respondents are drawn from different socio economic and geographical backgrounds. This method is used to find out the level of effectiveness when and advertisement is read. 7. Eye Movement Test: The movements of eyes of the respondents are recorded by using eye observation camera when advertisements are shown to them in a screen. This helps to find out the attention value of advertisement. 2. Concurrent Testing Concurrent testing is evaluated throughout the whole advertisement execution process. Tests are conducted while audience is exposed to different type of media. Following are the types of concurrent testing methods: A. Consumer Diaries: Diaries are provided to a selected customers. They are also informed to record the details of advertisements they watch, listen or read. The diaries are collected periodically. The result obtained from such a survey reveals the effectiveness of advertisement. B. Co-incidental Surveys: This method is also called as co-incidental telephone method. Under this method, samples of customers are selected and calls are made at the time of broadcast of the advertisement programme. The data obtained and analyzed will give a picture about the effectiveness of an advertisement. C. Electronic Devices: Now day’s electronic devices are widely used to measure the effectiveness of an advertisement. They are mainly used in broadcast media. These are auto meters, track electronic units etc. 3. Post Testing: Post testing is done to know- to what extent the advertising objectives are achieved. Following are the types of post testing methods: Recognition Test: Recognition test involves the ability of viewers to correctly identify ad, brand, or message they previously exposed to. The types of recognition test are: A. Starch Test – The Starch test is applied only to print ads that have already run. The interviewer shows each respondent a magazine or newspaper containing the ads being tested. For each ad the interviewer asks the respondents to reply to ad related questions. B. Bruzzone Test – The Bruzzone test is conducted through mail surveys. Questionnaires containing frames and audio scripts from television commercials are sent to respondents and respondents are asked whether they recognise the ad and brand. C. Recall or Impact Test: The recall test is designed to measure the impression of readers or viewers of the advertisement. If a reader has a favorable impression of the advertisement, he will certainly retain something of the advertisement. The measures of interest would be obtained by interviewing the readers or viewers or listeners, days after the advertisement or commercial is appeared in the newspaper, or on T.V. Interviewer asks the readers or viewers to answer some ad related questions, and in response to the question asked, the reader reveals the accuracy and depth of his impression. RECOGNITION & RECALL- Recognition and Recall are the terms that are heavily used by advertisers in advertising measurement, more specifically in copy testing techniques. Both recognition and recall are techniques that dredge a consumers memory for traces of awareness of an advertisement or brand. Recognition is an emotional task, and recall is a logical task. Recognition makes use of the right hemisphere of the human brain concerned with emotional matters, and recall makes use of the left hemisphere, concerned with logical thoughts. A print ad tends to be logical and stimulates the left hemisphere. Television ads tend to be emotional and stimulates right hemisphere. Therefore recognition is the correct method to use for television, and recall is to correct measure for print. Further development in advertising measurement introduced the term Persuasion measure. Persuasion was based on asking consumer about their brand preferences before and after exposure to a commercial. If a shift in preference occurred, this means that the advertisement had persuaded the customer of the merits of the brand.
Posted on: Mon, 29 Dec 2014 11:16:58 +0000
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