Marketing is a societal process, by which individuals and groups obtain what they need and want through creating,

offering, and freely exchanging products and services of value with others.

Product Price Promotion Place

Sales promotion Advertising Sales force Public relations, Publicity Direct mail, Telemarketing and Internet

The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.

Advertising Interactive / Internet Marketing Promotional Mix Personal Selling Publicity / PR Sales Promotion

Direct
Marketing

Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor. 52 possible ad objectives (Russell Colley) Major objectives are: Inform, Persuade or Remind Art of telling and selling Can be given at three periods
Before need arises By the time of the need After the need arises

The space or time for an advertising message generally must be bought. In case of Public Service Announcements (PSA) whose advertising space or time is donated by the media.

Non personal component means that advertising involves mass media. (e.g. TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time.

The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. Paid form of a non personal message communicated through the various media by industry, business firms, nonprofit organizations, or individuals. Advertising is persuasive and informational and is designed to influence the purchasing behavior and/or thought patterns of the audience. Advertising is a marketing tool and may be used in combination with other marketing tools, such as sales promotions, personal selling tactics, or publicity.

Three criteria must be met for a communication to be classified as advertising:

The communication must be paid for. The communication must be delivered through mass media. The communication must be attempting to persuade.

Mission Money Message Media Measurement

Paid form About ideas, goods or services Maximum control over the message Inform and persuade Has its selected market Less credible Subjective Product brand related message Non personal communication By an identified sponsor

Advocacy Comparative Cooperative Direct-mail Informational Institutional Outdoor Persuasive Product Reminder Point-of-purchase Specialty advertising.

Advertising used to adopt a point of view about controversial public issues. Advocacy advertising can be directed at either specific targets, or general targets, such as political activists, the media, consumer groups, government agencies, or competitors. Read more: http://www.answers.com/topic/advocacyadvertising#ixzz1dkJY5zFC

For whom (target audience- Industrial, Consumer) Geographic coverage (local, regional, national, international) Media used (print, electronic, direct mail, outdoor) Aim(financial, demand, social messages, direct action)

Global International National Regional Local

Household Consumers Business Organizations The Trade Channel Professionals Government

Informs the buyers Offers an incentive Reminds the benefits Stimulates to try the product once Builds brand Reduces selling costs Persuades people

Consumerism Consumer culture Consumer awareness

Ability and capability of consumers to purchase various goods & services After industrial revolution (preference to consumers) Advancement in areas of education and research, technology in all fields have been continuously upgraded It resulted in increased production, increased employment opportunities, generation of income, distribution and friendly consumption.

Improves the culture of the consumers The growth of consumer culture diverted the purchasing power of middle class people towards the purchase of products like TV, refrigerator, air cooler, cellular phone, etc

There are more than 20 legislative enactments in India to protect the rights of the consumers The ad should help to protect the rights of the consumers Education and media played a significant role to create awareness among consumers

Consumerism Consumer culture Consumer awareness

All that ad has to do is to sell a product or service Ads do the sales job better Performs economic function by being an art of persuasion Ads create wide markets

Effects of advertising on costs

Effects of advertising on total marketing costs Effects of advertising on total manufacturing costs

Effects of advertising on price

Prevents price competition for a longer period

Effects of advertising on quality

Stimulates product improvement

Effects of advertising on investment and the level of national income

Advertising shall be designed as to confirm to the laws of the country and should not offend against morality, decency and religious susceptibilities of the people.

 Derides any race, caste, color, creed and nationality; Is against any of the directive principles, or any other provision of the Constitution of India; Tends to incite people to crime, cause disorder or violence, or breach of law or glorifies violence or obscenity in any way; Presents criminality as desirable; Adversely affects friendly relations with foreign States; Exploits the national emblem, or any part of the constitution or the person or personality of a national leader or State Dignitary; Relates to or promotes cigarettes and tobacco products, liquor, wines and other intoxicants;

No advertisements message shall in any way be presented as News. Advertisements for services concerned with the following shall not be accepted: Money lenders; Chit funds; Saving schemes and lotteries other than those conducted by Central and State Government organisations, nationalised or recognized banks and public sector undertakings; Matrimonial agencies;

 Unlicensed employment services; Fortune tellers or sooth-Sayers etc. and those with claims of hypnotism; Foreign goods and foreign banks. Betting tips and guide books etc. relating to horseracing or the other games of chance.

No advertisement shall contain references which are likely to lead the public to infer that the product advertised or any advertised or any of its ingredients has some special or miraculous or super-natural property or quality, which is difficult of being proved, e.g. cure for baldness, skin whitener, etc. Advertisements shall not contain disparaging of derogatory references to another product or service. Testimonials must be genuine and used in a manner not to mislead the listeners. Advertisers or Advertising Agencies must be prepared to produce evidence in support of their claims.

No advertisement of any kind of jewellery (except artificial jewellery) or precious stones shall be accepted. Information to consumers on matters of weight, quality or prices of products where given shall be accurate. Advertisements indicating price comparisons or reductions must comply with relevant laws. Advertisements for products specifically offered to women shall not be advertised as products that are effective in inducing miscarriage. Advertisements relating to claims about curing of sexual weakness, premature ageing, loss of virility, sexual excesses etc. shall not be accepted.

There should be no exaggerated claims regarding the composition, character, action and suitability of the purpose for which it is recommended. When words such as college, clinic, institute and laboratory are used in advertisements, such references can be made only when the said establishment does actually exist. The portrayal of the female form shall be aesthetic and within the well established norms of good taste and decency. Women must not be portrayed in derogatory light and in a manner that emphasizes passive, submissive qualities and encourages them to play a subordinate and secondary role in family and in society. Scientific or statistical excerpts from technical literature etc. may be used only with a proper sense of responsibility to the ordinary viewer.

Drugs and Cosmetics Act, 1940. Drugs Control Act, 1950. Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954. Copyright Act, 1957. Trade and Merchandise Marks Act, 1958. Prevention of Food Adulteration Act, 1954. Pharmacy Act, 1948. Prize Competition Act, 1955. Emblems and Names (Prevention of Improper Use) Act, 1950. Consumer Protection Act, 1986. Indecent Representation of women (Prohibition) Act, 1986. AIR / Doordarshan Code. Code of Ethics for advertisement in India issued by the Advertising Council of India Code of standards in relation to the advertising of medicines and treatments Standards of practice for Advertising Agencies

Advertising should be in conformity with the laws of land Advertisements should not be done against the cultural, religious and aesthetic values of the people It should not propagate hatred and defame the peace of the nation It should not aim to exploit the illiteracy and superstition of the people to gain benefits Advertisements should disseminate factual information Advertisement should not hide or divert facts (They can inform the ingredients of the product and the need for using the product) Misleading statements (visual or verbal) should be avoided Price, quality, procedure to procure, guarantee and warranty etc. should be communicated with utmost care and prudence (cautiousness)

Comparisons which unfairly disparage (criticize) a competitive product for service should be avoided No advertisement should encourage or instigate the people to practice illegal practices Patent marks of other reputed concerns should not be used to cheat the consumers Obscene words / scenes in advertisements should be avoided Without real intention, it should not be announced that money will be returned if the purchaser is not satisfied with the products

Apart from state advertisements, national symbols and the photographs of national leaders should not be used without getting prior permission from the competent authorities concerned No advertising should canvass for pawn broking, deposits for unregistered financial firms and employment bureaus, bogus marriage brokerage, astrology and magical skills.

Article 19 (1) all citizens shall have the right to freedom of speech & expression. Article 19(1) a - restricts & prohibits the ads for drugs Article 19(2) right to information and expression can be resticted on the following grounds

Security of the state Friendly relations with foreign states Public order Decency of morality Contempt of court Defamation Incitement (encouragement) of an offence Sovereignty and integrity of India

Obvious untruths and exaggeration Advertisements should not depict children leaning dangerously outside windows, over bridges or climbing dangerous hills. Advertisement should not show children using or playing with matches or any inflammable or explosive substance Viz. playing with knives, guns & electrical appliances Advertisements shall not propagate products the use of which is banned under law Comparisons should be factual and accurate.

Inform and build awareness To increase the sales To retain the loyalty of present & former customer To support the sales force To build brand image
Top of mind First choice

To persuade To support other marketing efforts To encourage action

 Introducing new products Informing the market of a price change Explaining how the product works

Buiding brand preference Encouraging switching tour brand Changing customers perception of products attributes Becomes more important as competition increases Comparative advertising

 Most important for mature products Reminding customers that the product may be needed

in the near future Reminding them where to buy Describing available services Correcting false impressions Reducing consumers fears Persuading consumer to receive a sales call Keeping the product in their mind during off-seasons

Advertising agency is defined as an organisation whose business consists in acquisition as a principal of the right to use space or time in advertising media and the administration on behalf of the advertisers, of advertising appropriations made by them.

Copy writing Art pictures & photographs Media planning & buying of space Radio & television producing commercial spots The work of market research Production film or tape for use Public relations Forwarding the advertising materials to the media owners and the clients in time

Sales ability Creative ability Management ability

Full Service Agencies Creative Boutique Interactive Agency In-House Agency Media-Buying Agency Direct Marketing Agency E-Commerce Agencies Sales Promotion Agencies Event-Planning Agencies Design Firms Public Relations Firms

A full service agency typically includes an array of advertising professionals to meet all the promotional needs of clients. Full service agencies are not necessarily large organisations employing hundreds or even thousands of people.

In-depth knowledge and skills Obtaining negotiating muscle with the media Coordinating advertising and marketing efforts Use services only when they are needed Availability of high-caliber creative talent Potential cost efficiencies

Some control is lost Larger clients are favored over small clients Occasionally inefficient in media buying Specialists approach client problems in a stereotyped fashion Lack of cost accountability Financial instability of smaller boutiques

The size of the agency. The relevant experience of the agency. Conflicts of interest. Creative reputation and capabilities. Production capabilities. Media purchasing capabilities. Other services available. Client retention rates. Personal chemistry

Identify and prioritize corporate goals. Develop agency selection process and criteria. Initially screen firms based on credentials, size, capabilities, relevant experience and conflict of interests. Request client references. Do background check with other firms and media agents. Request written and oral presentation. Meet creatives, media buyers, account executives and other personnel that will work with account.

Marketing & media planning Research & analysis Advertising campaigns local, regional & national Creative concept / copywriting Logo / corporate identity development Graphic design & production Direct marketing programs Media placement Public relations / special event planning

Three methods used to compensate ad agencies

Commission Negotiated fee Percentage charges

Initially agencies just sold space for the media and made money Marketed space for the press and the magazines Paid on the basis of amount of space they sold by the media

Media commission is an amount paid by the media to an agency which has bought space or time for its clients Generally 15% on the space sold by an agency

The clients dissatisfaction with the agencys performance with regard to advertising quality or service Poor communication between the client and the agency personnel hinders a good working relationship Personality clashes between client and agency personnel Unrealistic client demands, which reduce the accounts profitability for the agency

New managers in clients organisation may want to use an agency with which they already have established ties. Often when agencies merge, there is a conflict of interest as two close competitors may be on the merged agencys account list. Changes in the clients marketing strategy may lead to change of agency. When the companys sales decline, the advertising agency is viewed as unsuitable and the agency changed

The client may insist upon adopting a compensation method to which the agency disagrees When some companies or agencies outgrow in size, either may think the other unsuitable and sever the ties

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).

Identification of consumers wants & needs Development of the right sales message Delivery of the sales message to the identified prospects Measurement of the effort or impact of the advertising sales message Integration of the advertising sales message with other forms of marketing communications.

Situation analysis Marketing objectives Ad budget Message strategy: communication goals Media selection Implementation Control & Evaluation

Determine the advertising objectives.

Make creative decisions.

Make media decisions.

Evaluate the campaign.

Identify Product Benefits

Components of Creative Decisions

Develop and Evaluate Advertising Appeals Execute the Message Evaluate the Campaigns Effectiveness

The approach used in an advertising message to attract the attention or interest or interest of consumers and influence their feelings toward the product, service or cause Something that moves people, speaks to their wants or need, and excites their interest.

Common Appeals

Vanity and egotism

Profit motive Health concerns

Fun and pleasure Convenience

Common Message Appeals

Love

Admiration/worship

Sex

Fear

 Fear Sex

Humour Music

Rational

Emotions

Scarcity

Review Creative Brief (specifically objectives section) The nature of the product The preferences of the client (very important) Common sense and gut feeling

Increases viewer interest in the ad and the persuasiveness of the ad Used with health and beauty products, idea marketing, insurance Most experts believe that a moderate level of fear is most effective

Print Ad Example This ad reminds people of the dangers of overexposure to the sun.

Used in 30% of all advertisements. Excellent at capturing attention. Score high in recall tests. Should be related directly to customer benefit. Or else, the joke can overpower the message.

Impact of humour on advertising

Humour attracts attention Humour does not harm comprehension (in some cases it may even aid comprehension) Humour is not more effective at increasing persuasion Humour does not enhance source credibility Humour enhances liking Humour that is relevant to the product is superior to humour that is unrelated to the product Audience demographic factors (e.g. Gender, Ethnicity, age) affect the response to humourous advertising appeals The nature of the product affects the appropriateness of a humourous treatment Humour is more effective with existing products than with new products Humour is more appropriate for low-involvement products and feeling-oriented products than for highinvolvement products

Subliminal techniques Nudity or partial nudity Sexual suggestiveness Overt sexuality Sensuality

Research Results Sex and nudity do increase attention. Rated as being more interesting. Often leads to strong feelings about the advertisement. Brand recall is lower. Often interferes with message comprehension

The presence of female (or male) decorative models improves ad recognition, but not brand recognition. The presence of a decorative model influences emotional and objective evaluations of the product among both males and female audiences. The presence of an attractive model produces higher purchase intentions when the product is sexually relevant than if it was not sexually relevant. Attractive models produce a higher level of attention to ads than less attractive models.

Be aware of differences in the international arena. Should be an integral part of the product. Should utilize a variety of models in terms of age, size, ethnicity and gender. Should consider using regular person models. Be careful sex does not overpower advertisement. Consider shifting to more sensuality.

Has intrusive value. Gains attention and increases the retention of visual information. Can increase persuasiveness of an advertisement. Design Questions

What role will music play? Will a familiar song be used or new song created? What emotional feeling should song solicit? How does the music fit with the message of the ad?

Print media is well-suited for rational appeals. Used by business-to-business advertisers. Well-suited for complex and high involvement products.

Based on three ideas:

Viewed by creatives as key to developing brand loyalty. Uses peripheral processing route. B-to-B advertisements using more emotional appeals. Works well when tied with other appeals.

Consumers ignore most ads. Rational ads go unnoticed. Emotional ads can capture attention.

This ad for a nonprofit animal rights and rescue group draws on viewers sympathies toward animals.

Trust Reliability Friendship Happiness Security Glamour/luxury Serenity Anger

Protecting loved ones Romance Passion Family Bonds

with parents with siblings with children with extended family members

Emotional Appeal
This ad by iparty.com reminds viewers of the fickle nature of children.

Based on limited supply or Based on limited time to purchase. Often tied with promotion tools such as contests, sweepstakes and coupons. Encourages customers to take action.

What channel will be most effective to reach target market(s) Depends heavily on promotional objectives What is it the company wants to convey? Action of the product itself? Credibility of company or service? Brand name?

Newspapers Magazines Radio Television Outdoor Media Internet

Alternative Media

The media mix decisions

Cost per contact Reach Frequency Target audience characteristics Mediums flexibility Noise level Life span of medium

Ad effectiveness Media research Relationship surveys Motivation surveys

A document that spells objectives, strategies and tactics of reaching a target audience through different media vehicles

Finding the best way to get the message to the target market. Best means largest part of market at best price and in best media environment for the message Media/Medium: general category as TV, radio, newspaper, magazines, direct mail Media vehicle: specific carrier within a medium: Time magazine or Today Show

Target audience analysis Media objectives Selection / buying media Tactics Scheduling Budgeting Evaluation

Creative sources
Theme Message Research

Marketing sources

Media sources

Distribution patterns Market sales Rivals patterns Popularity of media Profiles Cost forecasts

Provide information to media planners Select the media Negotiate cost Monitor the media plan performance Evaluate media choices after the campaign

Exposures Reach Coverage (waste coverage) Frequency Exposures Gross Impressions

Outline

Media: still big business Setting media objectives Developing media strategies

Media selection procedures Media buying functions Media buyers special skills Global media buying Staging a media plan

Media consolidation: a new perspective The aperture concept in media planning Media planning information sources

Finding target audiences in media opportunities Sales geography Timing

Duration: how long to advertise? Schedule and the advertising budget Consumer use cycles Competitive advertising

Target audience strategies: new technology of measurement

Retail scanners Database developments Marketing mix modeling Internet audience measurement

112

Geographic strategies: allocating media weight Timing and duration strategies Size and length strategies

113

Audience measures used in media planning

Gross impressions Gross rating points

Reach and media planning

114

Frequency and media planning

Average frequency Frequency distribution

Combining reach and frequency goals

115

Cost efficiency as a planning dimension

Cost per thousand How to calculate CPMs Cost per rating

Selecting and buying acceptable media

116

Providing information to the media planner Selecting media vehicles Negotiating media prices/authorizing the buys Monitoring vehicle performance Post-campaign analysis Billing and payment

117

Vehicle performance Unit costs Preferred positions Extra support offers

118

Media buying services Online media buying Global media buying Maintaining plan performance Monitoring audience research Scheduling and technical problems

119

Background and situation analysis Media objectives and aperture opportunities Strategy: selection of media The flow chart: scheduling and budgeting allocation

120

Issues in Selecting Advertising Media

Reach, Frequency, and Impact Major Media Type Options

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Audience Quality & Attention, Editorial Quality

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors:

Specific Media Vehicles

Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Media Timing

Newspapers Magazines Radio Television Outdoor Media Internet

Alternative Media

Profiles of Major Media Types

Newspapers
Advantages: Flexibility, timeliness; good local market coverage; high believability

Limitations: Short life; poor reproduction quality; small pass-along audience

Television

Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses

Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity

Direct Mail

Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; junk mail image

Profiles of Major Media Types

Radio
Advantages: Mass use; high geographic and demographic selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; fragmented audiences

Magazines

Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; no guarantee of position

Outdoor

Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations

1.

Great ads will fail if the media chosen do not reach the right audiences.
Newspapers and magazines have inherent advantages and disadvantages. Broadcast media, TV and radio, also have inherent advantages and disadvantages.

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Newspapers
$48.2 billion spent on newspaper ads in 2004 Ideal for reaching narrow geographic area Facing circulation declines

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 Range

of market coverage is excellent Positive attitude towards newspapers Geographic selectivity Tremendous flexibility Creative opportunities Credibility Audience interest Cost Provide a bridge between national and local advertisers
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Short life

Limited segmentation
Certain groups are not reached Creative constraints Poor reproduction Cluttered environment

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Target Audience
General population Business Ethnic

Frequency of Publication
Daily Weekly

Geographic coverage
Metropolitan area State National

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Display Advertising
Display advertising Co-op advertising

Inserts
Preprinted insert Free-standing insert

Classified Advertising

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Circulation
Paid circulation Controlled circulation

Readership

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Survival of newspapers depends on their ability to evolve. In the future, newspapers will have to:

Provide in-depth coverage of local issues. Increase coverage of national and international events. Provide follow-up reports of news. Maintain role as local source for consumer information. Become more mainstream in integrated brand promotions relating to new media.

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Audience Geography Demographics Editorial diversity

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Advantages
Audience selectivity Audience interest Creative opportunities Long life

Disadvantages
Limited flexibility Lack of immediacy Limited reach and frequency Clutter High Cost

Advantages
Creative opportunities Coverage, reach, and repetition Audience selectivity
Narrowcasting

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Disadvantages
Brief message High absolute cost Poor geographic selectivity Poor audience attitude and attentiveness Clutter

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Advantages

Cost Reach and frequency Target audience selectivity Flexibility and timeliness Creative opportunities Boon for blind people

Disadvantages

Poor audience attentiveness Creative limitations Fragmented audiences Chaotic buying procedures

Reach is the number of different people who are exposed an advertising message at least once. Reach is simply the percentage of persons in a target population that is exposed to an advertising schedule at least once. It can also be expressed as cume and unduplicated audience.

Frequency is the number of times they are exposed to the message. Frequency simply measures the number of times a person sees your message in a given advertising schedule. One person may see your commercial three times over your advertising flight. That would be a frequency of three.

Media strategy is the overall game plan which is geared towards straightening the communication Elements of media strategy

Media mix Usage of media Geographic allocation Scheduling strategy

Target market study Deciding the ad message Matching media and target group Media selection

Demographic data, i.e. age sex, income, religion, language, etc. Psychographic data (perception, attitude, etc.) Consumer profile (tastes & Preferences) Media profile; media habits & preference of the target audience

Time & Space Reach & Frequency Target Audience Channel carrying messages Effective reach Objectives of the communication Marketing goals