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    Adv.& Sales Ch.1-2 Notes

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    CONTENTS . UNIT - I ae el q g 3 chapter Pages Chapter | [i Advertising Fundamentals UNIT-1 . : and Media Advertising Fundamentals and Media 1-82 er Satan Creativity, Social ‘ond Regulatory 83-135, Framework of Advertising UNIT =I Sales Management 136-189 UNIT-IV wea renee eith Advriiog Agney Soles Planning and Controlling 190-237 ‘Various Functlonal Departmen of an At ApS Topi ot Aarercng Apocio seul : Cancale tlectng an Advering Aponey New Meta References 238-238 New Media Options Neston rea University Quest "sity Question Papers 239-246 ‘Selecting Suitable Media Schott Suing Aavrching Budge > | 2 ce Ni VERTIS 1.1.1 CONCEPT OF AD! , [xe term, ‘advertising’ has been derived from the Latin word *Adverter’ whi " ‘Adverter’_ f written or ka res the preparation o! something] Adverts paid media for ir dissemination through ener in people aware of and inclined towards the use of a particular product of that firm or compai Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. It is also a very important promotional tool, particularly “for companies whose products and services are targeted to mass consumer markets such 2s automobile manufacturers, FMCG companies, drug companies etc.) Neca 1.1.2 DEFINITIONS: — 7 (1) According to American Marketing Association, “Advertising is defined as any paid form of non-personal presentation and promotion of goods, services and ideas by an identified sponsor”. ‘The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement (PSA), who's advertising space or time is donated by the media. The non-personal component means that advertising involves mass media (eg. TV, radio, magazines, end newspapers) that can transmit a message to large groups of individuals, at the same time. The non- ing means that there is generally 0 opportunity for immediate feedback from the recipient (except in direct-response advertising). Therefore, before the is sent, the advertiser must consider how the Advertsing Fundomentl snd eta ror 4 : “Advertising consists of all ing to the audience @ non- ied, paid for message about a (2) According to William J, Stanton, the activities involved in presenti personal, sponsor identifi product or organization,” Philip Kotler ~ “Advertis (3) is any paid form of non-personal presentation and promotion of goods, services, or ideas by an identified sponsor”, (4) Frank Presbrey - “Advertising is a printed, written, oral and illustrated art of selling. Its objective is to encourage sales of the advertiser's products and to create in the mind of people, individually or collectively, an impression in favour of the advertiser's interest." Harry Walker Hepner ~ “Advertising is one of the arts of communication.” (413 FEATURES OF ADVERTISING:;) From the comprehensive definitions stated above, the features/characteristics of advertising are as follows: (2) Non-Personal: Advertising is a non-personal form of presentation because there is no face to face contact with the consumers of the product. In other words, the marketer/ advertiser and the consumer do not come into personal contact. (5) Q) Provides Information: The primary purpose of advertising is to provide information about products or services to prospective buyers. The details of products such as features, uses, prices, benefits, manufacturer's name, key message, brand name etc. are in the advertisements. The information supplied through advertising educates, guides and helps consumers to make a correct choice while buying a product or service. nes “ere HEE EE, TT —_Vigat e screcaca rd Ses arses Moms - io the advertiver bas to pay Sor the space and time hired by hin, ‘ ae foo te ee for the purpore of advertising, This communication Sane ee eee aoe form including oral, written or audio, Irrespect ertiver has to buy space to advertice in ‘ ar : (2) Paid Porm: : it needs creativity for raising i cHlectiveness. Farther, it involves practical aes Of weracionss thesties of advertising 5 . It is a science as it is 2 syste, ic ystematic body of Knoned Further, it is guided by certain pene male * Wt is also a profession as itis a specialized activity, hes 2 code of conduct for its members and operates within standards set by its organized bodies. Advertising is now taken up by trained professionals employed in advertising agencies, verlising is a method of presenting a product designing a logo or comy igles, all require creative efforts of professionals, the advertisements would not succeed. Creativity is rightly called the essence of advertising. (9) Part of Marketing Mix: Advertising is an important part of a ix. It makes @ elements in the marketing mix are reasonably favourable. (10) Speedy and Mass Communication: Advertising is a speedy medium of communication. Besides being speedy, its prospective icular product, Jarge number of buyers in ni (11) Large Number of Audience: Advertising is a basic form of mass communication as the advertisements are aimed at the Jarge number of audience. eee Bo ce ' eure BEMIS ering fedamenh i Mee ae we | ed: Advertising 1 purposeful activity tha this brand and gaining acceptance of people, when it was | Gn1Goal - ens ee something. It may aim at Secessan-dpl introduced in the Indian market. = ee prospects. increasing USam% (2) yfaintain Steady Demand: There are certain products that have only seasonal demand. Companies bring in product! service variations in order to maintain steady demand ‘ot ADVERTISING: Advertising plays # es firm does not need to. jth, Mt has become an indi arn i compotion among ibe firs, AdvertHing FETT & natacturers trader; (3) Face Competition Eff ) 114. SIGNIFICANCE nt ion! La csc ond wet a ae 8 Creates employment and improves the standard of teving of the wins over wertising for the different grasps cas be (0). Benefits to Manufacturers Business Firms: (1) Introduction of New Products! Services: Advertising proves ‘expanding the consumer base by pr very benelicil ln \tatroduclag. mew , products to the, 2 Product: For Instance, GlaxoSmithkline’s product Eno can connsmers Ia an efficieot and cnet-effective meaner. i aiso << bo advertised as quick remedy to fight acidity as well as in stimulates thelr interest and persuades them to make efforts the preparation of instant food items. This new use can be and buy the same. It simplifies the work of a salesman and shown in advertisements aired during popular TV also allows the customers to reach out to other products. For example, advertising of Just dial services featuring Amitabh Bachchan was quite effective in creating awareness abou! products at multiple occasi and enhancing sales. yereby increasing its usage (6) ia) (8) iy a @) \gand Sales Management (MCom) vipul's™ advert ew Economies of Scale: after they are advert Products/services are demanded more ised. It also helps ‘to expand the Gustomor base by entering new markets and promoting new tases of existing products. Thus advertisements allow the producers to increase the volume of production enabling them to get the benefit of large scale production. Inform Variations in the Product: The manufacturer can pass on relevant information about the changes! modifications, if any, brought about in the price, quality, quantity, packaging etc. of the existing product through advertisement. Persuasion: The main objective of advertising is to persuade the customers to purchase the products. Benefits to Salesmen: Support Salesmen: Advertising provides support to the salesmen. Advertisement creates awareness of the product! service among customers. It makes the brands popular, thereby enabling the salesmen to reach and convince the prospective buyers to make purchases. It reduces the efforts of salesman by familiarizing. customers with the products and their uses. Boost Morale: When the salesmen/ employees are convinced that the products of their firm are advertised and have developed sufficient trust in the public, they shall be assured that their jobs are safe and they shall receive their salary, bonus and other benefits on time, (Il) Benefits to Customers: @ Provides Information: Advertising provides useful information about the products, its uses and features. It educates customers about the proper directions to use, price at which they are available, promotional offers, if any, etc ‘Advertising Fundamentals and Media @) (3) @ (5) (6) ™ rr 9 For example, the ads of water purifier educates the public about the benefits of safe drinking water, Fair Pric Advertisements reduces the cost of the product by providing the firms with the advantages of economies of scale. As a result, customers get the products/ services at lower prices. Many expensive products have come within the reach of the common man due to continuous advertising and reduction in prices. For example, high-end mobile phones. ° Better Quality: Manufacturers always try to retain. their old customers and make new ones by introducing some special changes in their product to make them different from the others. Manufacturers are forced to maintain and improve their product quality to retain consumers. Easy Availability of Goods: Advertisement facilitates mass production as well as mass distribution in markets that are accessible to the customers. It also facilitates smooth distribution of goods in the rural markets. Convenience in Shopping: Advertising makes shopping convenient for the consumers by reducing the time and effort involved in shopping. Customers are made aware of availability of different brands in the market and their features which helps them making preferred choices much before they actually go to a shop/ check online and purchase the product, No Chance of Being Cheated: Through advertisements, the consumers come to know about the details of product such as price, features, packaging, weight, promotional offers etc. Thus there is no possibility for the sellers/ retailers to cheat them, Eliminates Middlemen: Advertising aims at establishing a direct link between the manufacturers and the customers. : 1s ndveisng and Soles Management (Me ipa nae = rectly, without involving roo a 20 lied dis When the goods are suppl dlemen, the benefits can be passed to the customers, Hence customers can procure goods at lower prices. (8) Entertainment: Today advertising is taken up by professionals who design creative ads. They use Creat ces. Lome themes, graphics etc. thereby entertaining 2 pepona 2 tse” logos, jingles, S.Natonal "> Retail a $.Glta FWlsate ; istia 2 Serco (IV) Benefits to Society: 4 Protessional (1) Improve Standard of Living: Advertising creates a desire for better living, It stimulates demand and provides customers (1) Geographical’ Area Based: This is further classified fied as with new and improved products at reasonable prices. follows: (2) Employment Generation: Advertising provides direct (a) Local Advertising: 1 is generally done by otal employment to a large number of people like copywriters, rather than manufacturers. Small firms like to ail media planners, advertising agencies etc. who are engaged their business to State or regional level. These in designing, writing and issuing advertisements. It also advertisements save the customers time and money by increases the indirect employment opportunities by Passing along specific information about products, increasing the production, distribution and sales volume. Prices, location so on, Some firms may first localize (3) Sustains Press: Advertising brings large revenue tq their marketing efforts and once successful, they spread to wider markets. Retail stores also undertake local advertising, where they cover a particular area and selects media suitable to that particular area, For instance, the D-Mart store in Mumbai may give the advertisement about its promotional offers in The Bombay Times section of the Times of India newspaper. At times, large firms may also take up national advertising when they undertake pie-testing of a consumer product in selected area before launching the newspapers and magazines. Thus newspapers are available at reasonable prices to the general public. Without vertising, it would be difficult for the press to sustain itself. (4) Helps to Solve Social Problems: Social advertising helps to fight social problems like drug addiction, gender bias, female feticide, illiteracy etc... Some social ads motivate the public for eye donation, organ donation, communal harmony ‘ ; i 8 a promotional campaign on a national level. Bag eer ee ee (b) Regional Advertising: Sometimes marketers customize 1 is promotion of company's product and services the ads as per the region. These ads are mainly in their regional language and the media used are posters, 2 BEEP Vipul’s™ Advertsing and Soles Management (MCom) regional newspapers, regional television’ programmes etc. () National Advertising: the country that have national target market. ‘encourages the consumer to buy their product wherever they are sold. The company selects the media that has a countrywide base. Most national advertisements concentrate on the overall image and desirability of the product. Generally large reputed and establishes firms belong to this category. The famous products that are nationally advertised are: Lux soaps, Colgate ‘Toothpaste, Parle-G biscuits, Nescafe, Pantene shampoo It is practiced by many firms in It etc. (d) Global/ International Advertising: Global advertising is the communication strategy that companies employ to drive demand for goods and services in foreign markets. Such advertising strategies are tailored to reflect the cultural differences and preferences. Global advertising embraces standardized strategies in which advertising content is the same worldwide under the premise that the entire world is a Like the Multinationals such as Pepsi, IBM, Sony, Coke etc. treat the world as one market and advertise globally. Example: The Coca-Cola company rolled out its global imtegrated marketing campaign called “OPEN HAPPINESS” in the USA in January 2009 which was then followed in India. single entity (2) According to the Target Audience: (a) Consumer Advertising: Most of the manufacturers of consumer goods engage in advertising that is directed to end consumers. Marketers of pharmaceuticals, cosmetics, scooters, detergents, soaps, cigarettes and (b) ( Fundamentals and Media a cai are some examples that consumers eee the year. There is a heavy Smreiton among the advertisers to siblish an ee Particular brand. Such advertising ia like television, radio, magazine, newspaper, ete. Trade Advertising: This refers to consumer-product advertising designed to stimulate wholesalers and retailers in order to purchase products with the intention of re-sale to customers. (@ Retail Advertising: This may be defined as all advertising done by the stores that sell goods directly to the consumers. It includes, also advertising by establishments that sell services to the public, such as beauty shops, petrol pumps and banks. Retail advertising mainly aims to build store traffic and promotes the merchandise. The store personnel are usually given the responsibility of advertising as an added task to be performed, together with their normal functions. (ii) Wholesale Advertising: Wholesalers, generally, do not indulge in advertising, either for themselves or for their suppliers. They would benefit from adopting some of the image-making techniques sed by rotailers - the need for developing an overall promotional strategy. They also need to make a greater use of supplier promotion materials and programmes in a way advantageous to them. Industrial Advertising: Industrial executives have little confidence in advertising. They rely on this form of promotion merely out of fear that their competitors may 14 ‘Vipul’s™ Advertising and Sales Management (MCom) ver benefit if they stop their advertising efforts. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like, the derived demand, etc. : ‘As compared to consumers, industrial buyers are much less in numbers. Industrial advertising is generally done in trade journals which is the common! used media, followed by catalogues, direct mai communication, exhibits, and general management ing agencies are not much useful 1 (d) Professional Ads: These are professionals like doctors, Accountants and so on to services. Their audience is specific audience he ads given by advocates, Chartered ropagate about their vho need (3) What is being advertised? (a) Product Advertising: Most advertising is _ product advertising that is designed to promote reputation of a particular product or service that the organization sells. ‘The marketer may use such promot generate exposure _ attention, comprehension, ide change or action for an offering. It deals with the non-personal selling of a tangible product. Example: Sunfeast biscuits, Surf Excel detergent, Samsung mobile phones etc. Product advertising is of three types: (i) Informative Product Advertising: It is also knows as pioneering or introductory stage ads. This form of advertising tends to characterize the promotion of any new type of product to develop the initial sale ot nto ‘Advertising Fundamentals and Media 7 rr 1s demand. It is usually ly done in the intrody stages of the produc a ive or growth stage ads, This form of 8 tends to develop demand for a to reinforce previous ty by keeping the brand name inseparable and perishable in nature. Advertisements, undertaken by banks, insurance companies, hotels, es, health care services, mobile phone servi providers, etc. : a powerful mass communication tool that is used not only to promote goods and services but also to achieve the goals of public interest and highlight social causes. Examples: ‘Advertisements like save the git! child, quit smoking, family planning, HIV awareness, Pulse Polio Immunization, save water etc. titutional advertising, also known as corporate advertising, aims at building for a firm a positive image in the eyes of all the stakeholders (d) e 16 ooo sell ke shareholders, emplo} the general Vipul’s™ Advertsing and Sales Management (Com) yyoes, suppliers, legislators, or public. Such advertising does not attempt to anything directly, hence it does not focus on any one produel/ service of the organization. This type of advertising is used frequently by-Jarge companies whose products are well known. When Indian Oil advertisements describe the company’s general activities, such as public service work, this may be referred to as institutional advertising because it is intended to build an overall favourable attitude towards the company and its family of products. (e) Place advertising: Advertising of places is done to promote tourism to such places. Advertisements like Dubai Shopping Festival, Kerala God's Own Country, Gujarat Toutism etc. are examples of place advertising. (4) Media Used: This can be further divided into two types - Indoor and Outdoor Media (a) Indoor Media: @ (ii) Newspaper ads: Newspapers are the best and popular medium for advertising that reach every nook and corner of the country. There are some ads that are specifically prepared for readers of newspapers. Magazine and Journal ads: Certain ads are prepared for readers and publishes in magazines ot journals. Magazines are of several types and may be published weekly, fortnightly or monthly. (iii) Television ads: These ads come on television for viewers. They are made attractive by adding colours, themes, graphics, themes, audio etc, ‘Advertising Fundamentals and Media (b) ” (iv) Radio ads: Radio is the quickest medium of advertising when compared to newspapers or magazines as sound moves faster than othor media, Itis @ popular medium of advertising prepared only for listeners. i (¥) Internet ads: Internet is widely being used for advertisements. Ads’are created and put on the websites for millions of viewers to see. ‘Thus internet ads have wide coverage and are cost effective, Outdoor/Out of Home (OOH) Media: Outdoor advertising passes the message to moving audience that means people who go out on some purpose or other like office, walk, shopping, sightseeing, journey, park visit etc. Outdoor media includes: (i) Hoardings: These are made in attractive colours and printed, supported by wooden planks. Film showers use this medium for advertising and the hoardings are projected to the people at bus stand, railway station, marketplace, parks and crowded areas (ii) Banners: These are used for temporary period and are not durable, Generally the ads are painted on cloth or printed on flex. (iii) Kiosks: These are ads on road dividers or footpaths, quadrangles or any market place to catch the attention of the vehicular as well as pedestrian traffic. (iv) Electric Displays! Neon Signs: Electric display/ neon signs are glittering ads whose beauty and attractiveness depend upon the skill of electrical 8 SPOT viput's™ Advertsing and Sales Management (MCom) engineers, Such ads are common in big cities and seen during night time or in dark background. (v) Advertising Boards: These are like posters but the (vi) Transi/Vehicular Ads: Wii boards are fixed at the areas where people frequently assemble, They appear more attractive than posters. cludes ads that find place on vehicles such as: + Busads. + Train ads. Cab ads. It is a popular method as the vehicle passes through many places and many people happen to It finds place at crossings, fers of shops or erected structures built of poles or pillars. Sandwich-men: Sandwich-men are hired by the advertisers to move or walk down through busy roads and streets. They dress in a peculiar way with fancy clothes and carry posters of the product of the advertisers. This sort of advertisement has short life, but is effective and generally used by cinema theatres, VSky Advertising: Sky advertising and sky ing have become popular means to advertise. Big balloons with message written on them or attached to them are allowed to float in the air. Big the open air. SS Rana es ‘Advertising Fundamentals and Media (5) Obj (b) wer sctive Sought: Primary demand ig is intended to affect the demand for a type t, and not a particular brand. _ Primary demand advertising can be used in two situations. Firstly, when the product is in the introductory stage of its lifecycle. This is known as pioneering advertising. Here the main objective of the firm is to inform and explain about the products benefits, not emphasizing on the brand name. Thus the bk main objective of pioneering advertising is to inform |=. and not to persuade the customers. € ‘The second use of primary demand advertising is by trade associations to stimulate the demand for their le industry’s product which competition with other | product categories. For example: “Piyo glassful doodh” advertisement by Mother Diary urges the general public to drink milk explaining its health benefits, The ad tries to meet competition from other product categories like juices, soft drinks etc. Selective or Secondary Demand Advertising: Selective [ff or Secondary demand advertising is intended to stimulate the demand for individual brands such as LG microwave oven, Nestle milk etc. It is competitive advertising and mainly used when the product has gone beyond the introductory stage. At this level, the product is well known and competes with other popular brands for market share. To establish a differential advantage and to acquire an acceptable sort of market, selective demand advertising is attempted, The advertiser | attempts to differentiate his brand in order to increase the total amount of consumption of that product. S R pee 20 (C) (d) (e) ow Vipul’s™ Advertsing and Sales Management (MCorn) Direct Action Advertising: In direct advertising the sellers seek a quick response to their advertisements. Example: an advertisement in a newspaper with a coupon which when redeemed will give the person a free sample of the product, may urge the reader to send immediately for a free sample. Pizza company Smokin joes gives 50% discount coupons in newspapers that can be redeemed by customers within a day or two. Indirect Action Advertising: Indirect action advertising is designed to stimulate demand over a longer period of time. It is mainly intended to inform customers that the product exists and to point out its benefits. The idea is when customers are ready to buy the product, they will look favourably upon the sellers brand. Thus, an advertisement for a brand of air-conditioner may not immediate result in sale but can place the air- conditioner favourably in the minds of prospective customers. When these people are ready to buy the air- conditioner few months later, it might lead to sale. Co-operative Advertising: This type of advertising involves sharing the cost of advertising by two or more persons/ parties. Co-operative advertising may be vertical or horizontal, (i) Vertical Co-operative Advertising: This type of advertising involves firms that are on different levels of distribution such as manufacturers and retailers, The manufacturers and retailers share the retailers cost of advertising the manufacturer's product. Another type of vertical co-operative advertising involves an advertising allowance - known as promotional allowance. This allowance is an invoice or cash discount offered by a ‘Advertsing Fundamentals and Media wre manufacturer to a retailer to encourage the rela ee eee co the product. mn vi led incentive for the rolailer to advertise the manufacturer's product. (ii) Horizontal Co-operative: This type of advertising involves a group of firms on the same level of distribution such as group of retailers. For example, all stores in a shopping mall may run a joint ad weekly in the newspaper. () Public Service Advertising: This type of advertising efforts are directed at the social welfare of a community or a nation. It is done as a part of social responsibility by entities such as advertising agencies, Government, NGO etc. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. Advertisements on not mixing drinking and driving, save our tigers etc. are a good example of public service advertising. In this type of advertising, the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large. (6) Other Types: (a) Political Advertising: This type of advertising is created either by political parties or candidates. Usually such type of advertisements are shown before and during elections. Election advertising lists the achievements of the party of candidate or his ideologies. Such advertisement may become comparative where the weakness of the opposition are highlighted to show their party or candidate in favourable light. ATE * ore Vipul's™ Advertising and Sales Management (MCom) (b) Financial Advertising: Financial advertising is when public limited companies invite general public to subscribe to the share capital of the company. It inéludes financial industry such as banks, car loan companies, insurance companies, non-banking financial companies, etc. The copy of financial ads highlights the project, details of the issue, crisis rating, managements’ perception of the risk factor, closing date of the issue, lead managers name and address, promoters name and address, name of the company and address. Apart from these routine things the investing public is motivated to invest by suitable copy matter - a slogan, @ promise of returns, profile of product, etc. The media used mainly print media especially press and to sot extent magazines.. (€) Specialty Advertisin advertising on various merchandise such as t-shirts, mugs, diaries, accessories, car and bike stickers, key rings etc. It is advertisement done on any merchandise and the merchandise is distributed in bulk. Example: A travel agency may print its name on the bags and caps and distribute to all travelling with them on a particular tour. The logic is that the more such ads that it releases in the market, the more the visibility of its product. (4) Ambush Advertising: The term “Ambush Advertising” was coined by marketing strategist Jerry Welsh, while he was working as the manager of global marketing efforts for American Express in the 1960s. It is a form of promotional activity, which is This is a special form of calendars, caps, mobile phone Advertsing Fundamentals and Media ror 2 advertising an organisation exploits some unrelated event such as a political rally or sporting contest by prominently displaying its advertising material. Most ambush advertisers aim to associate a brand with the prominence of a major event, without actually being an “official” partner or sponsor of said event. 1.1.6 MEANING OF INTEGRATED — MARKETING COMMUNICATION (IMC): Integrated marketing communication (IMC) was developed as an attempt to achieve consistency across marketing communication disciplines and media. Integrated Marketing Communication strategies include determining the target audience, establishing objectives and budgets, analysing social, competitive, cultural and technological issues, and finally evaluation and feedback regarding the effectiveness of promotional strategies adopted. Every promotional tool has a significant role to play. When used individually by companies to communicate a message, they all portray different images. Conflicting messages confuse brand positions and company images. Companies often fail to integrate their various communications channels and the result is a confused consumer. An appropriate promotional mix must be created in order to meet the promotional objectives of any given promotion strategy. The promotional mix is the combination of different promotional channels that are used to communicate a promotional message. This will involve an appropriate selection from the range of tools that are available for use as part of the promotional mix. This is known as Integrated Marketing Communications. Definitions of IMC: (2) IMC is a management concept that is designe marketing communication such as advertising, d to make all aspects of eT Wipnte scaring ad Stes Macageert WC, sales promotion, public relations, and direct mathatng wok together as a unified force, rather than permitting each to work in isolation. Integrated Marketing Communi coordination and integration of tion is defined as the marketing into seamless program that maximize customer and other end users at @ mi channel, communications. It also ensures thi communication and messages are carefully linked together to achieve specific ob ‘Today, more and more companies are ad Integrated Marketing Communications concept, the company uses various communi communicate the same clear, concise and crisp message to the target audience, ‘The main objectives of integrated marketing communication are: (1) To effectively communicate to larger audience. (2) To create brand awareness. (3) To educate consumers. (4) To enhance good, Integrat Marketing Communication leads to total marketing communication strategy aimed at communicating the company's everticg Fondren sot Mats woo = products and image to the consumer. For instance, Cadbury's message runs parallel across all media, be it off-line or online, ‘TV or newspaper, English or Hindi. This adds consistency to the entire campaign. Elements of IMC: Promotion has been defined as the coordination of all seller initiated efforts to set up the channels of information and persuasion in order to sell goods and services or promote an idea. The basic tools used to achieve organizations ‘communication objective is known as promotional mix. Each element of promotion mix plays a distinctive role which takes 2 variety of forms and has certain advantages. The following are the promotional tools/ elements of IMC: “\ ing ertsng Fundamen ta (a) Advertsing e of the most important elemen. ‘macvaensar maar neatace vere 2 Advertising i OP" " son-personal COMMUnicatjon (8) Interactive/Internet Marketing: js the paid ay service, or idea by an identifies Advancement of technology and development has led to jon, products ay promote the adoptioy 24 immense growth of communication through interactive media, Adres EEE ee guse the sale, {tf Paticulany th Internet. Internet marketing also refereed to as , persons, OF He pee ies Gana Reg emarketing, web-marketng, online marketing or e-marketing is sminated through ‘ope, the marketing of products or services over the Internet. The much cheaper way of zy Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of providing instant and most widely gg, Fesponses and eliciting responses are the unique qualities of the medium. Internet marketing is sometimes considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media. Internet is a multi-faceted tool. It is an advertising medium as companies advertise their products and services on websites to search engines to various social media. (4) Sales Promotion: Sales promotion is defined as those marketing activities that ae eee organizations to commusi provide extra value or incentives to the sales force, distributors, ated eae oa @ response ands customers and can stimulate sales. : a8 the company direlly ae from the distribution pm gales promot s generally broken into two major categories: represen : its customers through ! Consumer-oriented and Trade-oriented activities. Consumer Comins cach Oriented sales promotion is targeted to the ultimate user of a any other dag 2 THPperware, Amway, Oriflame dost# Product or service and includes couponing, sampling, premiums, the consumers mut hannels but sell their products die! Febates, contests, point of Purchase materials ete. They iret marketing encourages the consunss| eBCoUrage making an imimedite purchase and stimulating shor term sales. On the other hand, Trade Related sales promotion is hi targeted towards market intermediaries such as wholesalers, ty eeeme popular over the wey distributors and retailers, Promotional and merchandising me househy oie lifestyles, particuls tg allowances, price deals, sales contests, trade shows, etc. are plas its The rapid growth of some ofthe promotional tools used to encourage the wade 1 ion about the; © growth of direct matke"™ stock and promote a company’s product. eit products and services. is viewed a5 consumers. (2) Advertising is the best known form of promotion because of its pervasiveness.) important too! forthe company whose products and say are targeted at mass consumer markets such as packaged goods, manufacturing of automobiles, | Advertising is everywhere, from network television, pi newspapers, to roadside billboards, to stickers on fy) grocery stores. Direct Marketing: Direct marke direc transaction 8 prim; mw vere Vipul’s™ Advertising and Sales Management (MCom) (5) Publicity: Publicity is products, services, orga run under the identified sponsorship. It comes in hows story, editorial or announcement about an organization nd its products and services. Like advertising publicity involves non-personal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the ‘the company or organization attempts to get the or run a favourable story on a product, service, jons, and/or in about the a non-personal communica nization or idea not directly paid for or the form of company. media to cover or event to affect awareness, knowledge, op cause, behaviour, ‘Techniques used to gain publicity include news releases, press conferences, feature articles, photographs, films, and videotapes. Publicity is not always under the control of an orga and is sometimes unfavourable, Negative stories about a company and/or its products published can be very damaging. (6) Public Relations (P! hore is a difference between publicity and public relations. Whon an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is engaging in a function known as public relations. Public Relations can be defined as “the management function which evaluates public altitudes, identifies the policies and procedures of an individual or organization with the public interest and executes a program of action to earn public understanding and acceptance”, Public-relations generally have @ broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various public. ‘advertising Fundamentals and Media rr 2 PR uses publicity and other tools such as special publications, participation in community activities, fund raising, sponsorshi 4 of special events, advertising and various public affair acti i to enhance the image of the organization. PR is used to highlight positive events in an organization, such as the community service programs carried out by the firm. PR is emerging as a more prominent tool in the promotional mix of many firms. (7) Personal Selling/ Salesmanship: Personal selling is a form of person to person communication in which a seller attempts to assist a prospective buyer to purchase the company’s product or service or to act on an idea, It involves direct contact between the buyer and the seller either ‘0 face or through telephone sales. It enables the seller to jomers and the face t convey the message as per the needs of cust situation. Personal selling also involve feedback because the impact generally be assessed from th feedback is unfavourable, the message. Personal selling efforts can al markets and customer types that are the best prosPe company’s product or service. (8) Trade Shows: ‘A trade show / trade organized so that companies in 2 spe and demonstrate their latest products industry partners and customers, competitors, and examine the recent market trends and opportunities. Trade shows & business events are among *he popular mediums used by B2B companies globally to expand their business and reach out to potential buyers and sellers. 5 more immediate and precise of the sales presentation can e customer's reactions. If the salesperson can modify the Jso be targeted to specific cts for the fair / trade exhibition is an exhibition jfic industry can showcase and services, meet with study activities of the _ 20 vipa Adveting ad Sls Moagement Mca (9) Sponsorships: . Sponsorships combine advertising and sales promotions wit, public relations. Sponsorships increase awareness of a company or product, build loyalty with a specific target audience, hely ‘ate a product from its competitors, provid, 1g opportunities, demonstrate commitment to ; and so on. Like advertising, sponsorships are fated to build long-term associations. The value 9 sponsorships can be very difficult to measure. One of the common areas of sponsorship is sports. Sports sponsorships make up a large majority of all sponsorships. (10) Social Media Marketing: ‘The concept of social media marketing basically refers to the process of promoting business or websites through social medi channels. It is a powerful marketing medium that is defining the way pedple are communicating. It is one of the significantly low. cost promotional methods that provide businesses large numbers of links and huge amount of traffic. Companies manage to get ‘massive attention and that really works in favour of the business, Social media is an extremely useful tool using which companies can get their information, product descriptions, promotions all ingrained in the chain of networking world. Considering the newness of this marketing method, organizations are coming ‘up with innovative ways to develop their, marketing plans. New platforms are being created: to approach potential clients. It is a booming sector which is going to redefine the way marketing strategies: are being formed and promoted. (11) Mobile Marketing: en cellular (or mobil aes eee ssireliniaiaat jobile) device, either to send a simple » to introduce them to a new audience Marketing involves ‘advertising Fundamentals and Media a a mobile website. Mobil ¥y not only enables people to connect, to the Internet vi lar telephone, or other gadget, but also idates the different communication charinels in a simple, yet effective medium. Mobile marketing is cheaper than the traditional media for both the consumer and the marketer - and easy enough for almost any age group to understand and engage with. Mobile marketing is a streamlined version of traditional e-marketing. ‘Thus in developing an strategy, a company combines the promotional-mix elements, palancing the strengths and weaknesses of each, t6 produice an effective promotional campaign. 4.1.7 BEHAVIOURAL MODEL (E. K. STRONG AIDA): ‘AIDA model of marketing communication shows the impact of advertising on consumers. It also presents and explains the psychological basis of its s. The AIDA formula was tstablished in 1925 by E. K. Strong, and is used as a basic model, according to which advertising is developed. ‘The AIDA model consists of four stages- Attention, Interest Desire, and Action, that form a linear hierarchy. It demonstrates that consumers must be aware of a products existence, be interested enough to pay ‘attention to the product features/bonefits, and have a desire to benefit from the product offerings. Action, the fourth stage, would involve sot hs the customer to make a purchase commitment and cl To the marketer, this is the most important as wv stage in the selling process. tegrated marketing communications as difficult 2 FU Vipute Aare ant sales anager AC pction 1 benefits of the products to the needs of the customers, e at the interest stage focuses how the product meets panertising Fundamentals sr sheds uy ite among customers to buy. © Induce a favou ° Createa for the product in comparison to other products, + To prompt customer. ‘The action sought is for the customer to purchase the product. + Induce an immediate purchase, © Personal s this stage Advantages/ Benefits of the AIDA Model: * AIDA Model is simple, easy to understand and interpret. ing and tales promotion play a major role at can be used to market individual products. tations of the AIDA Model: + The AIDA model is inappropriate for impulse purchasing. + Itcannot be used to promote a line of products. © It overlooks the competit choosing between products. + This model may not be appropriate for EXAMPLE OF AIDA MODEL of NETFLIX in In STAGE 1: Creating Awareness: Netflix uses some common advertising mediums to inform the users about the offering ‘The mediums are Print advertisements, Youtube “Advertisements, Display Advertisements (Adwords), Partnerships with Service providers like Airtel, It advertises eS tt—te ing and Sales Management (MCom) Pr rer Minus avert ‘Advertsing Fundamentals and Media aed © ik d. some ao shows like Narcos am ” inn OF joa Sacred Games which are pays. This is done by offering a variety of subscription plans a and an option to stop the subscription any time: exclusive on Netflix. STAGE 2: : Generating Interest: Once the users are aware and visit the Netflix’s landing pages, they were offered a sermon free trial to explore experience all the shows and features 1.1.8 DAGMAR MODEL (RUSSELL COLLEY): yf In 1961, Russell H. Colley prepared a report for the Association of National Advertisers titled Defining Advertising Goals for Measured Advertising Results (DAGMAR). In it, Colley developed a model for setting advertising objectives and on Netflix. measuring the results of an ad campaign. The DAGMAR STAGE 3: approach defines an advertising goal/ objective as a specific Securing Desire: As the viewers experience some communication task to be “accomplished among a: defined features, they get used to the seamless viewing experience audience, in a given period of time. ‘At this point, the following additional features created the ‘According to DAGMAR Model. the ultimate objective of desire to purchase the subscription plans ~ advertising involves a communication task, intended to create =” Netflix Exclusive movies, shows, and documentaries. awareness, impart information, develop attitude and induce + High-resolution videos. action. The model suggests that there are a series of steps «Suppor for every device (watch anywhere you £0) through which a brand must pass in order to gain acceptance. ope : 7 — ((‘The stages in the DAGMAR model are explained as follow: + Multiple TV series and movies from Hollywood; 5) Bollywood, and other regional industries. Unaware + Multiple profiles under one account. 4 + Download and watch offline option. ae Aware + No ads while streaming videos. ifs + Personalized recommendations of TV shows and Comprehension & Image movies, based on viewing patterns. ai + Multi-screen viewing. u + Continue watching a video from where you left. Attitude a Support for low-speed internet devices, etc. u STAGE & (aon Enabling Action: Once the user is habituated to the (1) Unaware: An individual/ the audience starts at sole point offering, Netflix converts him into a real customer who by being unaware of a brands presence in the market. 38 (2) (3) a) (5) ) BEET Viput's™ Advertsing and Stes Menazerent(MCom) "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. Comprehension: Only awareness is not. sufficient to stimulate a purchase, sufficient knowledge and information about product or organization is necessary. This step involves the target audience to learn something about product, organization, or the offer. Here communication task of advertising activity is to make consumer learn about the product - its characteristics, benefits, or uses. ‘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. Here the communication task of advertising is to mould the audiences’ beliefs about the product and this is often done through messages that demonstrate the product's superiority over a competitors product or by talking about the rewards as a result of using the product. Action: Finally, communication must encourage the buyer to engage in purchase activity. It involves some move on part of the customer, such as, trying a brand for the first time, actually visiting the store etc. Thus as per the DAGMAR approach, advertising objectives are nothing but communication tasks to be accomplished. . These tasks are the intervening variables such as awareness, comprehension and conviction, communication Another important concept of DAGMAR approach is that the advertising goal should be specific, written and @ ‘Advertising Fundamentals and Media row a measurable task that invol r ing poi audience anda ved eS & Sang point, a defined ee Period. Advantages of the DAGMAR Model: + DAGMAR Model is easy to understand an: © Itdefines adver lerpret, ing goals and measures their results. It makes it easier fc i for a business to construct advertisement. 7a >-Limitations of the DAGMAR Model: * The DAGMAR approach emphasi i i phasizes on the interv variable a ike awareness, comprehension etc. which will ultimately lead to sales. Instead sales can be measured directly. * Moreover the intervening variables are difficult to measure as compared to sales, + It assumes that all customers react in the same way to ee) 1.1.9 HIERARCHY OF EFFECTS (LAVIDGE AND STEINERS): Hierarchy of Effects Model is one of the best known and pre- dominant models, developed by Robert Lavidge and Gary Steiner in 1961, as a paradigm for setting and measuring advertising objectives. The model shows the process by which advertising works, it assumes a consumer passes through a series of sequential steps (See chart on following page). ‘The stages in Lavidge and Steiners Hierarchy of Effects Model are explained as follows: (1) Awareness: If most of the target ‘ object, the communicator’s task is to build awareness, it may be just name recognition, with simple messages repeating the product name. Consumers must become aware of the brand. However, this is a difficult task. Capturing someone's attention may not necessarily mean they will notice the e is unaware of the er ene eee and Sales Management (MCom) Vipul’s™ Ade uw vor ‘Thus, the brand name to get consumers to become aware. needs to be made for Awareness L__— 4 powledge _] ———_—__ Liking, Preference [——Preteronco | 4 Conviction 4 Purchase (2) Knowledge: ‘The target stage involves creating brand knowledge. This is where rehonsion of the brand name and what it stands for It tries to answer questions like - What aro the brand’s specific appeals, its benefits? In what way is it different than competitor's brands? Who is the target market? These are the types of questions that must be answered if consumers are to have thorough brand knowledge, (3) Liking: Ifthe target audience know the product, how do they fecl about it? If the audience looks unfavourably towards the product, the communicator has to find out the reasons for it and take suitable measures, It is necessary to first fix the Problem and take necessary action. ‘Advertsing Fundamentals and Media ror o (4) Preference: The targ nce might like the product but not prefer it over other competitive ones. In this case, the Communicator must try to build consumer preference by promoting quality, value, performance and other features of product, or can check the campaigns’ success by me the campaign. (5) Convi larget audience might prefer a particular product but not develop a conviction or strong opinion about buying it. The communicator's job here is to build conviction among the target audience, (6) Purchase: Finally, some members of the target audience might have conviction but still not make the purchase. They may wait for more information or plan to act later. The (or must need these consumers to take the final haps by offering the product at a low price, offering a premium, some other promotional offer ete. This is where consumers make a move to actually search out information commun or purchase, Lavidge and Steiner suggested that the six steps can be split, into three stages of consumer behaviour: cognitive, affective and conative + Cognitive (thinking) so that the consumer becomes product aware and gathers product knowledge. * Affective (feeling) so that the consumer likes the product brand and has conviction in it. * Conative (behaviour) so that the consumer buys the product brand. iput’s™ Advertsing and Sales Management (MCon + is to promote the three behaviours s, ds to Conative behaviour ang cy vor ‘The job of the advertise! that the consumer procee’ purchases the product. ‘The Hierarchy of Effects Model has become the foundation fo; abjective setting and measurement of advertising effects in many companies. ‘Advantages! Benefits of Hierarchy of Effects Model: « Itis a comprehensive model. «This model is predominant and shows clear steps of how advertising works. © This model tells the advertiser where it arises and thus makes i pout the prob jentifying casier. Limitations of Hierarchy of Effects Model: * There docs not appear to be an distinguishing between cognition and Comparison of the three models AIDA Lavidge and Steiner DAGMAR Attention _ | Awareness [unawareness | Interst Knowledge Awareness Desire Liking Comprehension Action Preference [Conviction Purchase Action 1.2 AD AGENCY: 1.2.1 MEANING OF AN AD AGENCY: An advertising agency is an independent organization set up to render specialized services in advertising in particular and ia marketing in general. Advertising agencies started as spact brokers for the handling of the advertisements placed it ‘Advertising Fundamentals and Media voor an newspapers. Over the years, the function of the agencies has changed. Their main job today is not to aid media but to serve advertisers. 1.2.2 DEFINITIONS: (1) According to American Association of Advertising Agencies, an advertising (ad) agency is: (i) an independent business organization, composed of creative and business people, (iii) who develop, prepare and place advertisements in advertising media, (iv) for sellers seeking to find customers for their goods and service: From the above definition, it,can be concluded that ad agencies are independent organizations giving an objective view point. These agencies employ a combination of business and creative people, The agencies also provide services like researching, negotiating and contracting with various media for space and time. (2) According to Philip Kotler, “Advertising Agency is a marketing service firm that assists its clients in planning, preparing, implementing and evaluating various activities of advertising campaign.” ‘Advertising agency basically undertakes the work of planning, preparing and executing advertising campaigns for its clients. * The planning aspect studying understanding the clients products/services, their competitive position, target market, their changing needs and demands, marketing environment etc. and accordingly designing suitable advertising campaign. involves and az vor ing and Sales Management (Com) Vipul's™ Adve + The ‘preparing aspect involves writing, drafting ang designing of the advertising copy. * The execution aspect involves contacting the right media for the ‘space and time required, delivering the ads to the media, checking and verifying the release of advertisements in the media, making payments ang finally billing the clients. ‘Thus an advertising agency is an independent organization that provides one or more specialized advertising and promotion related services to assist companies in developing, preparing and ‘executing their advertising and other promotional programmes, For this the advertising agencies charge remuneration for the services rendered. This could take the form of commission from ‘media etc. However, some organization does not employ advertising agencies because they may be eligible for the media discount Others feel that they can accomplish the advertising objectives moro effectively than the agencies themselves. These marketers often employ their own advertising specialists. Various organizations use renowned agencies that work primarily ot solely for the organization, Those organizations which do employ agencies are w: advised to establish a strong working relationship with them. I! is especially important that the marketer fully inform the agency personnel of his marketing strategy and advertising objectives. 1.2.3, VARIOUS FUNCTIONAL DEPARTMENTS OF AN AD AGENCY: The various functional departments vary from one ad agencl to another. This may be because of the varying objectives, scale of operations, requirement of client etc. The typical function departments of ad agency are explained as follows: “advertising Fundamentals and Media Tre a Account Management Functional Departmenta of an Ad Agency T Research Pubic Relations (1) Account Management: The account service, management department, is the link between and its clients. While managing the account o advertising agency functions with an account account executive. Depending upon the size and its advertising budget one or two account executives serve as liaison to the client. Within the ad agency, the account executive handles decisions related to specific client. He performs the marketing as well as sales functions. ‘The executive's job requires good communication, high degree of diplomacy and tact as misunderstanding may lead to loss of an account. The account executive is mainly responsible to gain knowledge about the client’s business, profit goals, marketing problems and advertising objectives. Production or the account the ad agency f the client, an ‘manager or an of the account, account ‘The account executive is responsible for getting approved the media schedules, budgets and rough ads from the client. The next task is to make sure that the agency personnel Produce the advertising to the client's satisfaction. For large consumer products companies, an advertising agency may assign an account manager who works full ime with only ‘one client and one product line, For smaller Companies, an account manager may manage several different clients simultaneously. 48 (2) 3) wo ‘Vipul’s™ Advertsing nd Sales Management (MCon) Media Department: The responsibility of the agency's medi, department is to develop a media plan to reach the targe, audience effectively in a cost effective manner. Every advertising media has its own unique methods for accepting advertisements, such as different advertising cost structures, different requirements for accepting ad designs and different time schedules. The stafif/ media planner analyses, selects and contract for media time or space that will be used to deliver the ai message. He negotiates for the best deals and allocates the advertising budget amongst the media. This is one of the most important decisions since a significantly large part of the client’s money is spent on the media time and/or space. The department has importance in an agency's business as large advertisers seem tobe more inclined to consolidate me few agencies thereby saving money and improving media efficiency. Creative Department: To a large extent, the success of an af agency depends upon the creative department responsible for the creation and execution of the advertisements. The creative specialists are known as copywriters. They are the ones who conceive ideas for the ads and write the headlines subheads and the body copy. They are also involved it deciding the basic theme of the advertising campaign, an4 often they prepare the rough layout of the print ad. Creatios of an ad is the responsibility of the copywriters and the at department decides how the ad should look. media acquired in bu ing with o ‘Thus the agency's creative team consists of specialists sraphic design, film and audio production, copywritins computer programming etc. a Advertising Fundamentals and Meda ror 45 (a) Production Department: After of the copy and the ill produce the finished a photographers, complete the coe eal they hire printers, oe wphers and others to 1e production of the approved TV commercial, the production department may supervise the casting of actors to appear in the ad, the setting for scenes and selecting an independent production studio. The production department sometimes hires an outside director to transform the creative concept to a commercial. (5) Researchers: Research is the one of the most important functions of an advertising agency, Research may enable the agency to got more business by making stronger presentation to more desirable clients. All the major decisions on media selection, creativity etc. are taken after: considering the findings of research, ‘The research department is responsible for gathering the necessary information related to the client's problem. Collecting data and market intelligence is important for the agency to access a client's market situation, including understanding customers and competitors, and also are used to test creative ideas. (6) Public Relation Department: The growth and survival of an advertising agency depend very ‘much upon the public opinion and its support. The public relation department is headed by the Public Relations Executive. Favourable public opinion raises the morale of the agency personnel and enhances the brand image of the company. Generally, an advertising agency maintains all the above mentioned departments but the number of departments may ET viputrs™ Advertsing and ales Management (Moy vary from agency to another, depending 01 business, Sometimes, an agency may take help frog outsiders or specialists instead of establishing & full-fedge, department. Moreover, in case of sm agencies, th, es of two or more departments may be com! carried out only by one department. 1.2.4 TYPES OF ADVERTISING AGENCIES: / of services offered, advertisin, ypon the size off Depending on the basi agencies can be of the following types: Social Innouso Full Mes Service Senn oe Specialized ‘agencies —/ Types ot ‘Ad Agencies Healteare Creatve ‘communication bostque Virus! Mega buyer have set up their advertising agencies internall house agency is an ad agency set up, owned and operated by the advertiser. Many companies use exclusively; some others may combine those of outside agencies. ‘One of the major reasons for using in-house agency is reduce advertising and promotional costs. Companies wit very large advertising budgets pay a substantial amount & outside agencies in the form of media commissions. With = internal structure, these commissions go to the in-house agency. An in-house ad agency can also provide relate! work such as sales presentations and sales force materia package design, and public relations at a lower cost than outside agencies. @ ) _——S— sss agency people. tations of an In-House Agen ies may not major clients. Full Service Agency: These are medium sized or large agencies that are capable of undertaking a complete advertising campaign - that includes a full range of se in the area of marketing, communications and pro! These include pl 3) ic} we S sustegic marketing planning sales taining pacha, ‘i management, trade show, F 2nd public relations. Specialized! Limited Service Agencies: Some agencie, develop 2 reputation for working only in certain areas an: are called specialists. They either specialin in certain functions (creative or media buying), audieno. youth), industries healthcare, compute, agriculture, or business-to business communication) and « on. In addition, there are. specialized agencies in 2} marketing communication areas, such as direct marketing sales promotion, public relations, events and sport marketing, and packaging and point of sale. The specialize! agencies do not provide entire range of advertising services and cater to firms who do not want to avail of complet range of services. Creative Boutiques: Creative boutique is an agency that Provides only creative services. These spet companies have developed in response to some client’ desires to use only the creative talent of an outside provide while maintaining the other functions internally. They é not involve themselves in strategic planning, target audience etc. Their focus is only on the development of a creative ide: into the message theme. The client may seek outside creative talent for two reasons: (a) He wants an extra creative effort. (b) His employees of the in-house agency or the agency thé! he has appointed do not have sufficient skills in th regard. Vipel's™ sovetong one Stir Marageners (ca, Advertsing Reimers es, (6) Sometimes the contract wor busy oF want to avoid addins pay roll. Creative boutiques = of the creative departments of full eas leave the firm and take with them cliente thelr creative talents. These boutiques creative function on a fee basis. Example: The ad “Thanda Thanda Cool Cool creative campaign that made Dermicool an instant hit over . Its ad agency ‘Mudra’ had created this ad considering the fact thatthe consumers value cooling sensation to overcome the burning sensation caused by prickly heat in summer. Media’ Buying Agencies: Media buying agencies are independent companies that specialize in the buying of media, particularly radio and television at heavy The task of purchasing advertising media has grown more so media buying services have found a niche by ing in the analysis and purchase of the advertising time and space. Agencies and clients generally develop their own media plans and then hire the buying services to execute them. Some media buying agencies.do help advertisers plan their media strategies. Because media buying agencies purchase such large amounts of time and space, they ecsive large discounts and can save the small agency's or money on media buying. Cae buying agencies are p fee or commission for their worl ; iia agencies have gained high growth and snp in the last few decades and have become major players “the advertising front. ae so TT —_Viput's™ advertising and Sates Management (MCon) (G) Virtual Agencies: A recent phenomenon is the power that operates like a group of freelancers. This type of agency abandons conventional office space. In a virtual agency, staff members do not have fixed offices; they work at home, in their cars, or at their clients’ offices. (7) Healthcare Communications Agencies: These are the ze in marketing and communications for the Healthcare and Life science industries. These industries follow the guidelines mandated by the Food and istration (FDA) and PHARMA. Such agencies n of a product or and medical professionals). (8) Search Engine Agencies: R search engine opti as ad agencies. hey creite media and or image based ads. es the practice of search increase the amount of visitors to a lacements in the search ys for a business to crack into out the type of content and for the business. ‘These agencies specialize in the promotion of various brands through the popular social media platforms like social networking sites, blogs etc. 1.2.5 MEASURES FOR GAINING CLIENTS: There is ar Advertising ag jense competition in the agency business. 's are evaluated and the evaluation process averting Fundamentals and esis ror = provides valuable feedback to both ~ the agency and the client. ‘This feedback indicates changes that need to be made by the agency and/ or the client to improve performance and make the relationship more productive. Most of the companies have already organized for the advertising function and only a limited number of business requires service each year. Some companies switch agencies quite frequently in search of better creative work or change in management policy, change in marketing strategies etc. In large agencies, most of the new business results from the clients that already have an agency but have decided to change their rolationship. Thus agencies must constantly search and compete for new clients. Some of the measures for gaining new clients are: (1) Referrals: Referrals help many agencies to obtain now clients from existing clients, representatives and other maintain good working relationships clients, media and outside parties that provide business to them. Solicitations: Direct solicitations is one of the common way to gain clients, In small agencies the president may solicit a new business (2) new accounts. In large agencies, development group seeks out and establishes contact with ‘new clients. The group is responsible in writing solicitation letters, making cold calls and following up on leads. During the recession period, the cut back in ad spendings have resulted in many agencies directing their service on an unsolicited basis to marketers who are happy with their . Senior executives recognize that new business is, agencies and are encouraging their business development teams to approach new advertisers. 582 rr ‘Vipul’s™ Advertising and Sales Management (MCom) (3) Presentations: New business development groups goal is to receive an invitation from a company to make presentation, This creates opportunity for agency to market and ultimately sell itself by of describing itself, its experience, personnel, capabilities and demonstrates its previous work, Presentation requires a great deal of time and preparation and may cost the agency a considerable amount of money without a guarantee of gaining a business. (4) Public Relations: An agency can gain clients through publicity/public relations. They participate in civic and social groups and work with charitable institutions to ear respect in the community. Participation in the professional associations such as American Association of Advertising Agencies and the Advertising Research foundation can get them new contacts. Successful agencies receive free publicity throughout the industry as well as mass media. (5) Brand Image and Reputation: The most important way of Saining clients is because of established brand image! Teputation of agencies that has been developed because of providing excellent services to its existing clients. It is through word of mouth that the companies are recognized for their outstanding creative work. ‘There are some award Competitions in which advertisers may enter their work and hhave it recognized. Also, there are others that recognize Outstanding creativity as well as work done in specific arcas such as media planning and strategy, digital media, sales promotion etc. For instance, major industry publication “Advertising Age" recognizes the top agencies based on the quality of their work, (6) Deliver Timely Results: they have achieved timel The clients will be satisfied only if ly results from the ad agency. They (7) (@) Transparency: The ad agency should be transparent with the client about it activities, selection of media, budget ete ‘This would help to gain confidence of the. clients, (9) Regular Feedback: The agency should take regular feedback on periodic basis from its clients. This would help bring improvements in every stage and find out whether or not the client is happy/ satisfied with the services of the ad agency. (20) Respect the Clients: The ad agency should treat all clients in the same level of importance and respect. It will not be a good sign if a client hears a bad word that is said about another client or something ofthis sort. Reasons for Loosing Clients: There are several reasons why ad agencies lose their clients. ‘Some of them are: (1) Poor Performance or Service: When the client becomes dissatisfied with the quality of the advertisement or/and the service provided by the agency, he may switch over to another agency. (2) Poor Communication: When the client and agency Personnel fail to develop or maintain the level of Communication necessary to sustain a favourable working relationship, the agency may lose the client. : (3) Unrealistic Demand by the Client: Sometimes, the rae + may place demands on the agency that exceed the amow account's compensation received and reduce the + 65) (6) ” (8) (9) Viput’s™ advertising and Sales Management (MCom) The agency may refuse to work and lose : If the personnel working on the account of the client and agency sides do not have enough rapport to work well together, there may be issues and eventually the agency may lose the client. Personnel Changes: A change in personnel at either the agency or the advertiser can create problems. New managers may wish to use an agency with which they have established good relations. Agency personnel often take accounts with them when they switch agencies or start their own, Financial Instability: Agencies in difficult financial ions may not be able to retain the best of talent. Such agencies do not have a stable workforce. Moreover, they may not reveal their true financial position to their clients. This would result in loosing clients, Changes in Size of the Client or Agency: The client may Outgrow the agency or decide to take help of a larger agency to handle its business. If the agency gets too large, the client may represent too small a percentage of its business to command attention. Conflicts of Interest: A conflict may develop when an agency merges with another agency or when a client is part of an acquisition or merg. client. Changes in the Client’s Marketing Strategy: A client may change its marketing strategy and think a new agency is needed to carry out the new programme. So he may switch the agency. er. Thus agency may lose its ‘advertising Fundamentals and Medi (20) Declining Sales: When sates of the service are stagnant or do major contributor to the Sometimes, there may be dissgreement:.ovet. tha level ot method of compensation, (12) Changes in Policies: Policy changes may result when either arly re-evaluates the importance of the relationship, the agency acquires a new (arid larger) client, or either side undergoes a merger or acquisition, Some af the situations discussed here are unavoidable, and others may be beyond the control of the agency. But to ensure maintenance of the account, those within the agency's control must be addressed at the earliest, 1.2.6 EVALUATION CRITERIA FOR SELECTING AN ADVERTISING AGENCY: While selecting an advertising agency, the importance of compatibility should be borne in mind. An agency takes a long time to grasp the problems and accumulate the facts that are necessary for the smooth functioning of a client. ‘Though this investment period is long, it pays rich dividends. ‘Therefore, an agency should not be frequently changed, ‘The advertisers should consider the following factors to evaluate an advertising agency: (2) Range of Services Offered: Advertising agencies may be service or limited service agencies. The advertiser should keep in mind his requirements at the time of selection of the agency. 2) Product Service Features: The agency generally works on the same kind of products and services of different clients Viput’s™ advertising and Sales Management (MCom 56 ‘rhe client should select an agency that prepares best competitive ad for him. i (3) Strategic Thinking: The agency should be visionary and think from the long termi perspective. (4) Location: If the client wisties to meet the agency Personne] face to face and frequently, he must Jook for an agency that is near to him and easily accessible. (5) Compatibility: This refers to the personal equation of the advertiser with the client. There should be more focus on building a strong client - agency relationship so that the campaigns are successful. (6) Expertise: The agency team includes several experts like management specialists, researchers, copywriters, media experts, art directors etc. who work together for successful ad campaign. The attitude, experience and personalities of these experts is also a major factor in selection of ad agency. (7) Creativity: Creativity is the main element of any advertisement. If the ad agency is capable of delivering creative results, it is selected else it is rejected and the client may switch to some other agency. (8) Budget: The client would opt for an agency that fits in its budget. Hence budget or cost is an important consideration to evaluate an agency. (9) Technologically Advanced: In this era, no client would opt for an agency that is not technologically advanced. The client would examine the technological capabilities of the agency with the work it is going to assign to it. (10) Previous Accounts Handled: The advertiser may look at the previous accounts handled by the agency. It may also look at the accounts discontinued and the reasons for the same. The averting Fundamental and Maia vor & @ previous work done by the agency for othe r lot in the selection process, (11) Culturally Fit: The client would cho: adapts its organizations culture. (12) Flexible: The agency should not be ri instead it should be adaptable to an: during the course. It should clients matters a se an agency that fits in/ Hid in its functioning, 'y changes that may arise B : : incorporate the changes effectively without disrupting the overall ad mea Moreover, the agency should be able to think independently on various problems, and not solve them by pre-conceived notions which it is unwilling to change. MEDIA: ‘The term media is plural form of medium. In advertising terms, media are the collective communication outlets or tools used to store and deliver information ‘or data. It is either associated with communication media, or the specialized mass media communication businesses such as print media and the press, photography, advertising, cinema, broadcasting (radio and television). Media is thus a vehicle by which advertisers convey their messages to a large group of prospects and help to close the gap between the producer on one end and consumer on the other. 1.3.1 NEW MEDIA: ) New media is the media that are interactive and integrate ‘computers with multimedia. They are often characterized as highly interactive digital technology. New media is very easily Processed, stored, transformed, retrieved, hyper-linked and, easily searched for and accessed. Some examples of new media are websites, mobile apps. tual worlds, multimedia, computer 8ames, human-computer interface, computer animation etc. } | 58 : =e les Management (MCoy| WTO —_Vipul’s™ Advertising and Sales Management (Coq, ‘The rise of new media has increased communication betweg, wor | 2 rc) people all over the world and the Internet. It has allowed peop, to express themselves through blogs, websites, videos, picture, and so on. New media is changing the way people across th, Id are entertained and consume information. \ 3802 NEW MEDIA OPTIONS:

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