Q-1 Developing and managing an Advertising Program.

Setting the advertising objectives (Advertising Goal/Objective)

The Five M of Advertising Mission Money Measurement

The organizations handle their advertising in different ways. In small companies, advertising is
handled by someone in the sales or marketing department, who works with an ad agency. A large
company will often set up its own advertising department or else hire an ad agency to do the job
of preparing advertising programms.

In developing a program, marketing managers must always start by identifying the target market
and the buyer’s motives. Then they can make the five major decisions in developing an
advertising program, known as the five M’s, viz.

 Mission: what are the advertising objectives?

 Money: how much can be spent?
 Message: what message can be sent?
 Media: what media should be used
 Measurement: how should the results is evaluated?

Advertising Objectives at different stages in Hierarchy of effect:

Informative advertising: Its aim is to create awareness and knowledge of new products of new
features of existing products.

Persuasive Advertising: Its aim is to create liking, preference, conviction and purchase of a
product or service.

Reminder Advertising: Its aim is to stimulate repeat purchase of product and services.

Reinforcement Advertising: Its aim is to convince current purchases that they made the right
choice.

Brand Equity.

Deciding on the Advertising Budget:

There are five factors to consider when setting the advertising budget:

 Stage in the product life cycle

 Market share and consumer base
 Competition and clutter \
 Advertising frequency
 Product substitutability
 Choosing the Advertising method:

 Message generation: Creating the type of material to put on ad.

 Message Evaluation and selection: Message evaluation & selection has two
aspects:
1- Twedt rates messages on:
 Appeal
 Superiority
 Believability
2- Creative Brief
 Positioning statement
 Message execution:
o Rational Positioning
o Emotional positioning
 Social Responsibility review

Q-2 Deciding on Media and Measuring Effectiveness

Deciding on Reach, Frequency and Impact

 Media selection
 How many exposures, E*, will produce audience awareness A* depends on
the exposures’;
 Reach (R)
 Frequency (F)
 Impact (I)

See Slide 20-10 for Formulas…

Choosing Among Major Media Types:

Newspapers: Flexibility, timeliness, good local market coverage, braod acceptance and high
believability are some of its advantages and Short life, poor reproduction quality are the
Limitations.

Television: Combines sight, sound, and motion appealing to the senses, high attention high
reach are its advantages and high absolute cost, high clutter, fleeting exposure, less audience
selectivity are some of its limitations.

Direct Mail: Audience selectivity, Flexibility, personalization are advantages and Relatively
high cost, “Junk mail” Image are Limitation of direct mail.
Media Planners consider:

Target-audience media effectiveness: The first objective of a media plan is to select the target
audience: the people whom the media plan attempts to influence through various forms of brand contact.

Product Characteristics: PCs describe what a product ought to be, but not what the product ought
to do. For ex: “Consider the sentence "The car must be light, safe, and fuel-efficient." Here, three PCs are
given for the product's weight, safety, and efficiency.”

Message characteristics: Deciding what sort of information to deliver.

Cost: Of course, price is very important, but you also need to weigh up what you are getting for that
price and then associate a rating of value into the mix. Costs for advertising vary considerably for
different types of media advertising.

Allocating the budget

Allocate it keeping five factors of advertising budget in mind.

Audience Size Measures

 Circulation: No. of physical units carrying the advertisement.

 Audience: What kind of audience you are targeting.
 Effective Audience: No. of people with target audience characteristics exposed to
the advertisement.
 Effective ad-exposed audience: No. of people with target audience
characteristics who actually saw the ad.

Deciding on Media Timing

Carry over: Rate at which the effect of an advertising expenditure wears out with the passage
of time.

Habitual Behavior

Indicates how much brand holdover occur independent of the level of advertising.

 Buyer turnover
 Purchase frequency
 Foreign Rate

Classification of advertising Timing Patterns:

a. Continuity: Scheduling exposures evenly throughout a given period.

b. Concentration: Spending the entire advertising budget in a single period.
 c. Flighting: Advertising for some period followed by hiatus with no advertising.
(Ex: Pulsing)

Deciding on Geographical Allocation

Areas of dominant influences (ADIs) or designated marketing areas (DMAs)

Q-3 Sales Promotion

Sales Promotion: Promotion that supplements or coordinates advertising.

Consumer Promotion: Consumer sales promotions encompass a variety of short-term

promotional techniques designed to induce customers to respond in some way.

Trade Promotion: A trade promotion aimed at retailers may encourage retailers to

instruct their employees to promote a marketer’s brand over competitors’ offerings.

Sales-force Promotion: A marketer may offer sales promotions to their reseller’s sales
force and customer service staff where they are used as incentives to help sell more of the
marketer’s product.

Purpose of Sales Promotion

Sales promotions tools vary in their specific objectives, a free sample stimulate consumer trial, while a
free management-advisory service cements a long-term relationship with a retailer. Sales promotion
offer attract brand switches. Brand switchers are primarily looking for low price, good value or
premiums. Sales promotions used in markets of high brand similarly produce a high brand similarity
produce a high sales response in short run.