> Introduction to \ OAdvertising Wo Q. 1. What do you understand by advertising? State its nature and importance. ' ‘Ans, Advertising refers to a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and.are intended to inform oe influence people who receive them. Advertising is the activity or profession of producing sriommation for promoting the sale of commercial products or services. It provides a direct line’ of communication to the existing and prospective customers about a business, product of service. The main purpose of advertising is to make customers aware of the goods and services offered by a particular business. Advertising is an audio or visual form of marketing ‘communication that employs an openly sponsored non-personal message to promote or sella ff advertising are often businesses who wish to promote their product, service o idea. Sponsors o \ Products or services. The message which is presented or disseminated is called advertisement. Following are some popular definitions of Advertising: “ Advertsing is a paid form of non-personal presentation of ideas, goods or services by an identified sponsor.” Richard H. Buskirk “Advertising is a printed, written, oral and illustrated art of selling. Its objective is fo encourage sales of the advertiser's products and to create in the minds of people, individually or collectively, an impression in favour of the advertiser's interest.” —Frank Presbrey “Advertising can be describéd as the art of creating demand for an article or service.” -CLL. Bolling Nature/Characteristics /Features of Advertisi1 () Tool for promotion. A marketer uses various tools for promoting his goods and services. Out of these tools, advertising is a powerful, expensive and popular tool of promotion used by marketers to boost up their sales. ' (i) Non-personal. Advertising is a non-personal tool of promotion. It is a type of non- personal or mass communication with the target market. It aims at passing on Pformation to a large number of people at a time. It is often called a non-personal salesmanship. (ii) Paid form. Advertising is not for free. Advertiser also known as sponsor has to spend money for preparing message, buying media and monitoring advertising efforts. It is an expensive tool of promotion. Company has to prepare its advertising budget to appropriate advertising costs. (jo) Wide applicability. Advertising is a famous and widely used tool of promotion used by marketers for communicating with the target market. It is widely used by various types of business and other organisations like educational institutions, government agencies, charitable trusts, etc. to inform and attract the target market. (©) Varied objectives. Advertising aims at achieving various objectives. It is targeted to increase sales and market share of the firm. It also helps the firm in creating and improving brand image and building good relations with public, It is used as a tool to educate people and helps the firm in facing intense competition in the market. (vi) Various forms of Advertising. Advertising message can be communicated in various forms like written, oral, audible or visual form. Mostly messages are expressed with the help of combination of various advertising forms like oral-visual, audio-visual etc. a2 Shiv Das DELHI UNIVERSITY SERIES | | i ia, Advertiser may use any of the several advertising media to cony, * ii caeage Olt advertisers use print media like newspapers, magazines, letter pamphlets, booklets etc. He may use outdoor media that includes hoardings, sign boards, wall-printing, vehicle banners etc. Audiovisual media like radio, television, film, internet, etc. can also be used by the marketer to address the target audience, (viii) One-way communication. Advertising involves a monologue not a dialogue. It is associated with one way communication only. Under advertising messages move from company to customers. It means that messages move from sponsor to audience, Movement of message from customers to marketer is not possible. Hence a marketer finds it difficult to ascertain how far the advertisement has influenced the audience, Advertising plays a very important role in today’s competitive environment. It has become a necessity for everybody in today’s day to day life be it the traders, producer or the customer, Importance of advertising in today’s competitive environment: : () Advertising is important for the customers. Advertising plays a very important role in the life of the customers. Customers buy a particular product only after they are made aware of the products available in the market. In case the product is not advertised, no customer will come to know what products are available and will not buy the product even if the product was for their benefit. Advertising allows customers to find best products for themselves and their family members. After they come to know about the products they can compare the products with other products available in the market and then can take a final buying decision. Advertising helps the customers in wisely spending their income on purchase of various goods and services available in the market. (i) Advertising is important for the seller and companies producing the product. Advertising is very important for the producers and sellers due to the following reasons: — Advertising helps in increasing the sales volume. Advertising ‘helps the producers and the companies to know about their competitors in the market and make plans according to the level of competition. — Advertising plays a crucial role for a company that wants to introduce a new Product in the market. It helps in the launch of new Products and making People aware of the new product so that the consumers come and try it. ~ Advertising helps creating goodwill for the company in the market and gaining consumer loyalty. — Advertisement helps in creating and stimulating the demand for company’s, product in the tharket. The demand for the product keeps on coming with the help of advertising. (ii) Advertising is important for the society. among the customers hence it is - Since advertising helps in creating awareness an important tool for educating people in the Ans, Following are the main objectives of advertising: () Brand building. Advertising helps in the establishment and promotion of a brand in the existing market. It also aids in the creati Advertising is the best option for promoti product or service. (i Trial. Companies which are in their stage of introdu ion such an objective. The trial objective of advertising involves cawiie ag customers to buy the new product introduced in the market, Here, the advertisers behind ie te tae ertsements to grab the attention of the custome, ee seer tea s from other substitutes available in the market. behind is to lure away the custome Companies Prepare ads to make customers take a look at the products and purchaseUNIT I: Introduction to Advertising 3 (if) Ensure continuity of sales. This objective is concerned with keeping the existing customers to stick to the product. The advertisers keep on bringing something new in the product and the advertisement, so that the existing customers keep on buying their products. The main idea behind is not to loose customers and keep on selling new products and other innovations by the firm to the existing customers. (iv) Enable brand switch. This. objective is followed by the companies that wish to Ture away ‘customers from the competitors, Here the advertisers try to convince the Customers to switch from the existing brand they are using to their own product. Advertisers convince the customers to prefer their brand over the other brands offered by the competitors. Such an objective is achieved by the advertisers. when they successfully convirice the customers to use and buy their products instead of opting for other alternatives available in the market. (®) Switching back. This objective is followed by the companies who want their previous customers back. Under this objective companies wish to sell their products again to those customers who have switched over to the competitors. In order to get their customers back, the advertisers use different ways to attract the customers like discount, rebate, offers, schemes, new packaging etc. Advertisers may bring suitable changes in their advertising strategy to get their customers back. (vi) Achieve sales and profit goals. Advertisements create awareness about a brand and help in increasing the demand for a product or service. The increased demand results in increased sales and therefore, profit goals of a company are attained with the help of advertising. Following are the different types of advertising: ( Broadcast media. Television and radio are the two main tools of such type of advertising. Television offers creative opportunities, dynamic message and wide reach. It is considered as the most important and expensive tool of advertising. Radio on the other hand is a mote affordable source of advertising. It is generally used by small businesses to promote their goods and services. The success of broadcast advertising largely depends on the repetition and frequency of the advertisements. However, both television and radio have their own merits and drawbacks as tools of broadcast advertising. (i) Print media, Such type of advertising includes magazines and newspapers. Magazines offer a highly selective audience who is generally interested in ads which are closely related to the topic of the magazine. Visual imagery is also stronger in magazines as compared to newspapers. Advertising in magazines can be costly and require long lead times which limits timely promotions. They also have limited audience reach. Newspapers on the other hand are very affordable for local businesses and allow them to target a geographic segment if the businesses are offering universal product or service. Newspapers are also viewed as a credible medium, which enhances ad acceptance. However declining circulation, a short shelf life and limited visual creativity are the major drawbacks of newspapers as a medium of advertising, (if) Support media. It includes several options for message delivery that normally add to or expand campaigns delivered through traditional media. Support media includes billboards, transits, bus, benches, aerial, directories and trade publications. Each and every support media has its own advantages and disadvantages but collectively, they offer ways to reach a wider audience in local or regional market or to increase “frequency of message exposure to targeted segments. (iv) Direct marketing, Direct marketing is an-interactive approach to advertising. It includes direct mail, e-mail, and telemarketing. These are direct response efforts to create an ongoing dialogue or interaction with customers. For example, weekly or monthly e-mail, newsletters allow a business to keep its brand products and other messages in front of prospects and customers. Telemarketing is a way to survey customers and offer new products, upgrades or renewals. Direct mail is the most common format of direct marketing where advertisers send mailers or postcards to targeted customers promoting products, deals or promotions. Direct marketing has- Shiv Das DELHI UNIVERSITY SERIES become more prominent because it allows for ease in tracking customer response rates and helps advertisers better measure return on investment. ; () Product placement. It is another newer type of advertising in which a business offers compensation to a TV show, movie, video game or theme park to use its product while entertaining audierices. For instance a business can pay a TV show to depict its product being used and discussed positively in a particular scene. This type of advertising is a way for companies to integrate ads with entertainment since customers have found ways to avoid messages that are delivered through more conventional media. (vi) Internet. The internet is used by both online as well as offline companies to promote products or services. Banner ads, pop up ads, text ads and paid search placements are common forms of internet advertising. Banner, pop up and text ads are ways to present an image or message on a publisher's website or on a number of websites through a third party platform like Google's AdWords programme. Paid search placements-is commonly-known as cost per click advertising. Under this method a business bids a certain amount to present its link and text message to users of search engines like Google and Yahoo. Q. 3. What is advertising? In what respect is it beneficial for both the firm and the consumer? (2017 Ans. Advertising refers to means of communication with the users of a product or service. Advertisements are messages paid by those who send them and are intended to inform or influence people who receive them. In simple words, advertising refers té the activity of producing information for promoting sale of commercial products or services. Advertising is a paid forrh of non-personal presentation or promotion of ideas, goods or services by an identified sponsor with a view to disseminate information concerning an idea, product or service. The message that is presented or disseminated is called advertisement. Following are some important definitions of Advertising: Advertising is any paid non-personal presentation of ideas, goods or services for the purpose of inducing people to buy. : —Wheeler Advertising is a paid form of non-personal presentation of ideas, goods or services by an identified sponsor. —Richard Buskirk Advertising consists of all the activities involved in presenting to a group, a non-personal, oral or visual, openly sponsored message regarding a product, service or idea, disseminated through one or more media and is paid for by an identified sponsor. —William J. Stanton Benefits of advertising to firms and consumers. Advertising helps in spreading information about the firm, products, quality and place of availability of its products and so on. Advertising is needed not only by the producers but it also helps the consumers. Benefits to producer. It pays to advertise. It has become indispensable for the manufacturers and distributors because of the following advantages: (i It helps in introducing new products. (i) It can create new taste amon; product. (dif) It assists to increase sale of existing products by entering into new markets and at tracting new customers. (2) It helps in meeting the forces of competition in the market placé. It is necessary #0 remain in the market and remind the customer as done by the soft drink companies. (®) It is used to increase the goodwill of a firm by promising and informing about the improved quality to the customers. (vi) Morale of the employees is raised. The sal becomes easier if the (vii) It facilitates mass pri product through the vertised products. Benefits to consumers. It offers the following advantage to the consumers: () Consumers come to know about the existence of various products and their prices. They can make a choice from the various brands available to satisfy their wants. ig the public and stimulate them to purchase the new a ie sales-persons feel comfortable as their task Product is advertised and is already known to the public. ‘Ooduction of goods. It also facilitates direct distribution of the retailers. Retailers are encouraged to purchase and sell the aé-. UNIT I: Introduction to Advertising 5 (ji) It educates the people about new products and their diverse uses. (iii) It induces the manufacturers to improve the quality of their products through re- search and development. This ensures supply of the products of better quality to the consumers. Q.4. “Money spent on advertising is wasteful”. Critically examine the statement. [2015 Or : “All advertising is a social work” Discuss. [2016 Ans. “Money spent on advertising is wasteful. This statement is partially correct. Though it is argued that advertising unduly increases the cost of product and encourages consumers to indulge in unnecessary consumption but still we cannot ignore the number of benefits we get from advertising like it educates the consumers about new products and their uses, correct prices, quality, etc. It also aids in creating regular demand and raising the standard of living of people. It facilitates the mass distribution and in availing the benefits of economies of scale. Apart from this, advertising also helps in sustaining the media and creating employment for youths. In this light we can say that advertising is not a social waste. Q.5. “Advertising should be socially, ethically as well as legally responsible.” Comment. [2007 ‘Ans. Advertising does reflect the changing cultural values of a society. At times, it itself acts as a change agent. While doing so it should not lose sight of the developmental perspective. The advertisers are responsible for bringing a new kind of ‘globalism’ to marketing. ‘Globatism’ jotes the universal commercial values of exploitation and profiteering at the expense of the developing world. Such advertising can also distort the development priorities of poor countries. : Ethical advertising contains truth, not Absolute truth, but socially acceptable standards of honesty as truth. It has to be right in its approach and claims. Business morality is derived from social morality. Truth in ethical advertising is valued because an advertiser indulging in untruth will be spotted sooner or later. He will lose goodwill forever, not only for one product, but possibly for his entire product line. It is immoral for an advertiser to deceive his prospects, Laws in most countries are stringent against untruth in advertisements. Consumer consciousness also pressurises the advertiser to be ethical and truthful. Ethical advertising can shift the demand curve to the right. Vulgarities and unethical distortions give a bad name to advertising. It is better to remember that unethical advertising is bad business. ‘Advertisements should confirm to laws and should not offend morality, decency and the religious susceptibilities of people. No disparaging or derogatory remarks of other products or comparison with them should be made. The Consumer Protection Act, 1986 is designed to protect consumers against deceptive advertising to some extent. Q. 6. “Advertising creates materialism in the society.” Comment. ‘Ans. Advertising has always been criticised on the ground that it promotes materialism. Criticisers of Advertising claim that advertising promotes materialism in several ways. ‘Advertising aims at creating demand and increasing the sales of a firm. It does so by creating new needs and desires among people. Advertising also encourages people to compete with each other by purchasing more and better products. Advertising often encourages consumers to use new products and replace the old ones. It persuade people to buy newest and best models and versions of the product. Thus by multiplying the needs of the consumers, advertising fosters a ‘throw away’ Society. Due to advertising, consumers start demanding those things which they actually do not need. Materialism is very prevalent in advertising today, as products and services are represented as essential to achieve happiness. Various types of appeals are used by advertisers to create a false need in the minds of the consumers. This results in multiplication of consumers needs and they start buying things that they do not actually need. For example, consumers may buy those products which are endorsed by their favourite celebrities. However, in reality they may not need those products. Advertisements have induced a requirement for the products and services to consumers making them close to materialistic society. Presently, people cannot live without cars, they are more attracted towards new watches and clothes irrespective of their price level. Thus, consumers are blinded by the shine of materialism to6 Shiv Das DELHI UNIVERSITY SERIES which they are exposed through advertisements. For, example, people now-a-days doy, to jog or walk to keep ou fit instead they try to find comfort in it too, Hees they treadmills, exercising machines, belly fat burning belts, etc. at their home to keep tse Though advertising promotes materialism, its importance in today’s’ era of cut competition cannot be ignored. Advertising is an important tool in the hands of the marketet that helps them in boosting up their sales. The ultimate purpose underlying all adverisin "Increased awareness’ It informs and persuades the buyers to buy goods and services of, by the firm. Advertising is designed to increase sales and profits of the firm. Its one of thei Giportant tools of promotion through which marketers can reach large numberof customer in no time, Thus even if advertising promotes materialism, its importance as a communication tool cannot be ignored. . Q. 7. Discuss the concept of communication bi the context of marketing and advertising ir Explain the process of advertising communication. Use example. ‘Ans. Advertising or Marketing Communication means any material which is published or broadcast using any medium or any activity that is undertaken by, or on behalf of an advertiser or marketer over which the advertiser or marketer has a reasonable degree of control. It aims at drawing the attention of the public in a manner calculated to promote or oppose directly or indirectly a product, service, person, organisation or line of conduct. Marketing communication uses different channels and tools in combination. Advertising is an important tool. Marketing ‘communications and advertising deliver coordinated messages about goods and services through many channels like television, radio, media and éxperimental activities. Advertising acts as a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and-are intended to inform or influence people who receive them. Marketing or Advertising Communication process includes the following elements: () Sender. It is typically the company that produces a product or service. (i) Encoding. It involves communicating the message in understandable terms for the consumer in some companies. This role is carried out by the Advertiser or a Marketing - manager. (iii) Transfer Mechanism. It is the medium used to transfer the message. (iv) Decoding, It involves how the consumer interprets the message. (2) Response. It is concerned with how the customer reacts to the message. (vi) Feedback. It measures how successful the advertising campaign has been. Following is an example of Advertising or Marketing Communication: () Sender. Clothing Manufacturer. san el (ii) Encoding. Carried out by the advertiser or marketing manager at the instruction clothing manufacturer. (iif) Transfer Mechanism. Television (iv) Decoding. Customer sees the television advertisement and keeps it in mind. @) ere Customer goes to the store and purchases the new product (AP - 2). (vi) Feedback. Information that customers are responding positively to the mess#8° 8. Define marketing communication. Discuss abauie modelof marketing commune Or tion ao Process in marketing communication. Discuss the tradi Ans. Communication has been widel ideas, or the process of establishin, and receiver. Marketing communications defined by Kotler as— fm tedlepaed bleed customers, directly model of Communicat : process, the sender and the receiver Anathe ke en reeeeseR the Te oo and channel. Four other are the majo © are the major communication 1°" gcd jor communication functions and proces: an yy defined as the passing of information, the ons 1 a commonness or oneness of thought between poi “The means by which firms ate or directly, about the products or brands Hat itUNIT I: Introduction to Advertising ° 7 decoding, response and feedback. The last element noise refers to any extraneous factors in the system that can interfere with the process and work against effective communication. Source encoding. The sender or source of a communication is the person or organisation that has information to share with another person or group of people. The source may be an individual say a spokesperson, like celebrity, who appears in a company’s advertisements or a non-personal entity like the corporation or organisation itself. The communication process begins when the source selects words, symbols, pictures and the like to represent the message that will be delivered to the receiver. This process, known as encoding, involves putting thoughts, ideas or information into a symbolic:form. Message. The encoding process leads to development of a message that contains the information or meaning the source hopes to convey. The message may be verbal or non-verbal, oral or written or symbolic. Messages must be put into a transmittable form that is appropriate for the channel of communication being used. Channel. The channel is the method by which the communication travels from the source or sender to the receiver. At the broadcast level, channels of communication are of two types— Personal and Non-personal. Personal channels of communication are direct iriterpersonal or face to face contact with target individuals or groups. Non-personal channel of communication are those that carry a message without interpersonal contact between sender and receiver. Non- personal channels are generally referred to as the mass media or mass communication, since the message is sent to many individuals at one time. . Receiver/Decoding. The receiver is the person or persons with whom the’sender shares thoughts or information. Generally receivers are consumers in the target market or audience -who read, hear or see the marketer’s message back into thought. This process is heavily influenced by the receiver's frame of reference or field of’ experience which refers to the experiences, perceptions, attitudes and values he or she brings to the communication situation. Ne Throughout the communication process, the message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. Noise may also occur because the fields of experience of the sender and receiver do not overlap. Lack of common ground may result in improper encoding of the message— using a sign, symbol or words that are unfamiliar or have different meaning to the receiver. Response/feedback. The receiver's set of reactions after seeing, hearing or reading the message is called a response. Receiver’s response can range from non-observable actions, like storing information in memory to immediate action like dialing a toll-free number to order a product advertised on television. Marketers are very interested in feedback. Feedback can take a variety of forms. It allows the sender to monitor how the intended message is being decoded and received. ‘Analysing the receiver. To communicate effectively with their customers marketers must understand who the target audience is. A marketer must know how to communicate with the audience to influence its decision making process. Marketers must also know how the market is likely to respond to various sources of communication or different types of messages before they make decisions regarding source, message and channel variables. Promotional planners ‘must understand the potential effects associated with each of these factors. Identifying the target audience. The marketing communication process actually begins with identifying the audience that will be the focus of the firm’s advertising and promotional efforts. The target audience may consist'of individuals, groups, niche markets, market segments or a general public or mass audience. The response process. Perhaps the most important aspect of developing effective communication programmes involves understanding the response process the receiver may go through in moving toward a specific behaviour like buying a product and how the promotional efforts of the marketer influence consumer responses. Traditional Response Hierarchy Models: A number of models have been developed to depict the stages a consumer may pass through in moving from a state of not being aware of a company, product or brand to actual purchase behaviour: - 1. AIDA model. The AIDA model was developed to represent the. stages, a salesperson must take a customer-through ‘in the personal selling process. This model depicts the buyer as8 : ‘Shiv Das DELHI UNIVERSITY SERIES passing successfully through Attention, Interest, Desire and Action. The sales get the customer's id then arouse some interest in the company’s product @ ust fy Strong levels of interest should create desire to own OF use the product. The action a "AIDA model involves getting the customer to make a purchase commitment and cj" the sale. This stage is most important in the selling process. Companies provide training "8 the sales representatives in closing techniques to help them complete the selling 8 to 2. Hierarchy of Effects model. It shows the process by which advertising works i a consumer passes through a series of steps in sequential order from initial awarenast™ product or service to actual purchase. A basic premise of this model is that adverts’ of; recur overa period of time. Advertising communication may not lead to immediate be fects response or purchase, rather a series of effects must occur, with each step fulfilled bey Wal consumer can move to the next stage in the hierarchy. before the The steps include: Awareness -> Knowledge —» Liking — Preference > Conviction 3. The Innovation Adoption model. This model is evolved from work on the qj of innovations. This model represents the stages a consumer passes through in adopy. ion innovation—such as a new product or service. Like the other models, it says potential Pang an must be moved through a series of steps before taking some action. The steps precedin, a ts are awareness, interest, evaluation and trial. The challenge facing companies introdean products is to create awareness arid interest among consumers and then get them to o8 7%" the product favourably. evaluate 4. The Information Processing model. This model of advertising effects was devel William McGuire. This model assumes that the receiver in a persuasive communication situa like advertising is an information processor or problem solver. According to McGuire the ‘ation of steps a receiver goes through in being persuaded constitutes a response hierarchy. Theses of this model are similar.to the hierarchy of effects sequence; attention and comp are similar to awareness and knowledge, and yielding is synonymous with liking. This model includes a stage not found in other models— retention. It is the receivers’s ability to retain tha portion of the comprehended information that he accepts as relevant. : Effectiveness tests Steps in Persuasion Process Y Listener, Reader, : = xs Messa, Each stage of the i 5 ppacriinss fie y is a dependent variable that must be attained and we the advertiser with, feedback ec ommumication process, Each stage can be measured, Provi# the consumer to purchase. Then the effectiveness of various strategies designed 19 for planning and evaluating the effects of aes ae be an effective framUNIT I; Introduction to Advertising 9 Traditional Response Hierarchy models at a glance: MODELS Stages AIDA ~| Hierarchy of ||, Innovation Information Model _| effects Model _| adoption Model | Processing Model Cognitive stage Attention ena ‘Awareness Presentation Knowledge Attention L + Comprehension “Attractive stage Interest Liking Interest Yielding L 7 4 Desire Preference Evaluation Retention 4 Conwiction ot Behavioural ‘Action Purchase Trial “Behaviour stage L Adoption Q. 9. Write a brief note on alternative response hierarchies. Or Explain the model of information processing developed by Michael L. Ray. ‘Ans. Michael L. Ray has. developed a model of information processing that identifies alternative orderings of the three stages based on perceived product differentiation and product involvement. These alternative response hierarchies are: 1, The standard learning hierarchy. In many purchase situations, the consumer will go through the response process in the sequence dépicted by the traditional communication models. In the terms of Ray, this is a standard learning model which consists of a learn > feed do sequence. Information and, knowledge acquired or learned about the various brands are the basis for developing affect or feelings, that guide what consumer will do. In this hierarchy the consumer is viewed as‘ an active participant in the communication process who gathers information through active learning. 2. The dissonance/attribution hierarchy. A second response hierarchy proposed by Ray involves situations where consumers.first behave then develop attitudes or feelings as a result of that behaviour and then learn or process information that supports the behaviour. This dissonance/attribution model or do — feel — learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. The consumer may purchase the product on the basis of a recommendation by some non-media source and then attempt to support the decision by developing a positive attitude towards the brand and perhaps even developing negative feelings towards the rejected alternative. 3. The low-involvement hierarchy. Under this hierarchy the receiver is viewed as passing from cognition to behaviour to attitude change. This learn -> do — feel sequence is thought to characterize situations of low consumer involvement in the purchase process. Ray suggests this hierarchy tends to occur when involvement in the purchase decision is low, there are minimal differences among brand alternatives and mass media advertising especially broadcast advertising is important. Involvement is viewed as variable that can help explain how consumers process advertising information and how this information might affect message recipients. One problem tHat has plagued the study of involvement has been agreeing on how to define and measure it. Advertising managers must be able to determine targeted consumer's involvement levels with their products. Q. 10. Explain Richard Vaughn's FCB planning model for analysing the communication situation.10 shiv Das DELHI Or communication. the FCB Grid model of d Belding Foote, Cone #* tion situation. Vaughn and his ‘Ans. Richard: Vaughn of the ch UNIVERSITY SERIES advertising agency introduced a, tonal response theories iat interesting approa to lyse the Ho so develo an eavertising planning model by bul ing om aoa response hor waded AY ere re og vest Feeling process at each involvement level by me hey i ion : - sion of thinking jisation. scores regarding brain specialisa _ ing are invelvernent nvolvement derived ‘The right/left side of the brain theory suggests tha of rational, cognitis tore in the affective or feeling functions. thinking, while the right side is more v! Their model, which became known as the FCB grid, advertising planning strategies — Plicitation of counter arguments to ads ‘Bifectiveness of ad to [ induce purchase ‘Relative importance J of the product class t the left side of the brain is more capable gual and emotional and engages informative, affective, habit formation indicates four primary i and satisfaction along with the ‘most appropriate variant of the alternative response hierarchies. Thinking Feeling i 1, Informative (Thinker) 2 Affective (Feeler) involvement | Car-House-Furnishings-New products Jewellery-Cosmetics-Fashion Apparel- ‘Model: Learn-feel-do (Economic) ° | Motorcycles . Possible implications* ‘Model: Feel-learn-do (Psychological) Te ': Recall diagnostics Media: Long _| Possible implications copy rormat reflective vehicles Test: Attitude change emotional Creative: Specific information demon- | arousal : stration Media: Large scale image specials Creative: Executional impact Low 3. Habit formation (Doer) 4. Self-satisfaction (Reactor) Food-Household items ‘Mocel: Do-learn-feel (Responsive) Possible implications sala Test: Sales Media: Small space ads Creative: Reminder involvement Cigarettes-liquor-candy ‘Model: Do-feel-learn (Gocial) Possiblie implications Test: Sales ‘Media: Billboards, newspaPe™> Creative: Attention: UNIT I: Introduction to Advertising ety The FCB grid provides a useful wa i i oes 4 vide ly for those involved in the advertisi1 lannin; oh as sean pei to analyse consumer product relationships and develop appropriate u b Consumer can be used to develop effective ti i such as using rational versus emotional appeals, increasing involve nent levels, ee ne etting consumers to evaluate a thnk-type product on ‘the basis of face es (Q.11. Explain the cognitive response approach to advertising and marketing communication. : Or Wate a brie ite on cognitive processing of communications. » One oF most widely used methods for examining consumer's cognitive processin, of advertising messages is assessment of their cognitive responses, the thoughts that occur to ca whe reading, viewing and hearing a communication. These thoughts are generally measured by having consumers write down or verbally report their reactions to a message. The cognitive response approach has been widely used in research by both academicians and advertising practitioners. Its focus has been to determine the types of responses.evoked by =n Seat message oa om, ese Tesponses relate to attitudes towards the ad, brand vurchase intentions. For example, Feviqui ith i i Se ear a oat eet For empl, Belg ick has always come up with innovative The model given below depicts the three basic categori iti e mod sgories of cognitive responses researchers have identified —Product/Message, Source oriented and Ad execution thoughts, and how they may relate to attitudes and intentions. i Cognitive Responses Attitudes Purchase Intent Product/ Brand Mi rma) - of Messer 3 attdes Exposure | | Sous to Ft Oriented ° [7 7) Purchase Advertisement | Thoughts [9 enter L_»| Attitude | Ad Execution | | towards the ‘Thoughts Advertisement] Q. 12. Explain the Elaboration Likelihood Model (ELM) of marketing communication and advertising. : Ans. Elaboration Likelihood Model (ELM) describes the differences in the way consumers process and respond to persuasive messages. According to this model, the attitude formation or change process depends on the amount and nature of elaboration or processing of relevant information that occurs in response to a pérsuasive message. The ELM shows that elaboration likelihood is a function of two elements—motivation and ability to process the message. Motivation to process the message depends on such factors, as involvement, personal relevance and individuals needs and arousal levels. Ability to process the message depends on the individual's knowledge, intellectual capacity and opportunity to process the message. For example, an individual viewing a funny advertisement or an ad containing a beautiful and attractive model may be distracted from processing the information about the product. The Elaboration Likelihood Model has important implications for marketing communications, particularly with respect to involvement. For example, in case the involvement level of customers in the target audience is high, an ad or sales presentation must contain strong arguments that are difficult for the recipient of the message to refute or counter-argue. In case the involvement level of the target audience is low, peripheral cues may be more important as compared to detailed message arguments, ELM showed that the effectiveness of a celebrity endorser in an ad depends on the receiver's involvement level. When involvement is low, a celebrity endorser had a significant effect on attitudes. Q. 13. Write a note on audience selection? * ‘Ans, Audience selection. Audience means total number of people who may receive anSERIES n Shiv Das DELHI UNIVERSITY SI i stant in advertising and is considere advertising message. Audience selection : very papi ina specific age, income, educat, dag a vehicle activating a media plan. It ae a hoosing the mes .dia, one must bear in mind that et occupational, social and unit group, WIE 8 2 definable to precision. Choice of media wou target is never a faceless mass of people. a oa nung, old, very young, married, unmarries keep in view their psychographic profile fe y , retired ete. tising campaign can be a w, Without clear picture of the target suena a between their ideal customers ‘ed endeavour. Companies always aim for We ee ae to be implemented for each audienc® the audience subject An appropriis verve to be determined for each audience, In the Implementation timing and budget also have © We has to be involved according. the communication process of the company, 2 message Ne to io profiling questions requirements of the target audience. With the Us! © A" characteristics will be best hme break-down of audience's demographic and psychographic ENC SA NM a to the marketer and he can select the most appropriate co on ences preferred sources for communication. ; : Noone iveness of advertising message is widely believed to be mienerated by audience involvement. Audience analysis is very important as it can suggest appropriate media and Si ; ic and primary step of objective-setting process. The process potential impact. It is the basic and primary actin 0 erect oats of objective-setting is intimately connected with that of selecting a target segment and may involve substitute that are relevant to the communication task. = : Q. 14. Write a brief note on target audience in the context of advertising and marketing, State the factors determining target audience. ; ae ‘Ans. A target audiences the intended audience or readership of a publication or other message. In marketing and advertising it is a particular group of consumers within the predetermined target market, identified as the target or recipients for a particular advertisement or message. Businesses that have a wide target market will focus on a specific target audience for certain messages to send. For example, a toy advertisement aims at children and their mothers instead of the entire market. A target audience is formed from the same factors as a target market but it is more specific and is susceptible to influence from other factors. A business must identify and understand its target audience if their marketing campaign is to be successful. It allows the business to craft their goods and services according to the needs and wants of customers, It further helps the firm in maximising its sales, revenue and profits. A successful marketing and advertising campaign connects with consumers on a personal level, which will help the business to develop long-term relationship with customers. Since all the consumers are not the same hence determining the target audience or audience selection is key to reaching the loyal and high profit customers and help ensure a return on investment. To determine the target audience, the business must first identify what problem their good or service solves or what need or want it fulfills. The problem must be one that consumers are aware of and thus will be interested in pursuing a solution. For example, a problem can be lack of availability of cheap heaters in the winter season or lack of availability of cheap ait conditioners in the summer season. A business can enter into a market by offering low price heaters to the consumers in the winter season or by offering low priced air conditioners in summer season. The problem that the business solves can be identified by searching for similat businesses or business ideas. In case the search is unsuccessful, there remains to be a problem that the business can solve. The business must determine what kind of people are facing the problem they identified. This is based on consumer's demographic, information. Psychographic, geographic information and behavioutal 1 LUNIT I: Introduction to Advertising 13 quantitative methods of data collection. This method will provide a statistical approach to identifying the target audience. : 2. Psychographic information. It is the use of sociological, psychological and anthropological factors as well as consumet behaviour, style of living and self concept to determine how different market segment groups make decisions about a philosophy, person or product. Psychographic information can be utilised by the business to gain a deeper understanding of the consumer groups they intend to target, by analysing the more intimate details of their preferences. Things like financials, interests, hobbies and lifestyle will all be filtered by the business to create.a target audience that will be open to the product and will connect with the business through a marketing campaign aimed at them. 3. Behavioural information. Consumer behaviour is the purchase decision process. There are various factors that influence consumer's purchase decision like their responses and attitudes. ‘Consumer's behaviour is affected by messages sent by the business, which in turn affects their attitudes towards brands and products and ultimately what products they choose to purchase. Behavioural trends could include online purchasing instead of in-store purchasing or modern consumers purchasing a new smartphone. Business must select a segment of consumers whose behaviour aligns with the functionality and purpose of the product to be the intended audience for marketing campaign. Target consumers can be identified by businesses as they will indicate that there is a demand for the product by their behavioural signals. Their interests; hobbies’ and past purchase activity provides a platform on.which the business can base their marketing cam 4. Geographic information. It is essentially where the customer is located and is vital to the business when they are determining their target audience. This is because customers located in different geographic areas are going to encounter different things'that influence their buying decisions. These may include number of factors like resources, cultures and climates. For example, acity or area with high population of children will encounter high toy sales whereas a city with high population of old people will encounter high sale of medicines. Each country or a region has consumers of the same demographic but due to the cultural influence of geographical area, their purchase decisions are different. For example, a male aged 40-45 living in U.S.A will have completely different lifestyle from a male of same.age living in India. This difference in the lifestyle bring changes in their buying behaviour. Q. 15. Distinguish between target audience and target market. ‘Ans. A Target audience is generally associated with a business marketing message, which usually highlights key advantages and benefits of a business, product or service. A target audience usually consist of company employees, society as a whole, media officials or a variety of other groups. Target audience is defined as a group that has significant potential to respond positively to a brand message. This group being the intended audience is usually targeted through particular marketing communication channels like advertising, which then aims to create a positive interaction towards the brand. If this is successful the audience will play a huge role in influencing other potential customers to purchase the product or service. A Target market on the other hand is a selected group of consumers, who share common needs or characteristics. Often these characteristics can be segmented into four different marketing groups being geographic, demographic, psychographic or behavioural. Once a company has defined their target market they will aim their products, services and marketing activities towards these consumers in a way that will persuade them to buy the product or service. Q. 16. What do you understand by advertising budget? Explain the factors influencing advertising budget of a company. Or . Discuss various factors that are to be taken into consideration while deciding the advertising budget. [2016 Ans. Advertising budget refers to the money.a company is willing to set aside to accomplish its marketing objectives. It is an estimation of a company’s promotional expenditures over a period of time. An advertising budget is the money that a company keeps with itself in the form of reserve or provision for the purpose of achieving its marketing objectives. In other words, advertising budget is the amount of money which can be or has to be spent on advertisirig of“ Shiv Das DELHI UNIVERSITY SERIES . the product to promote it, reach the target consumers an make the sales chart to go on the ‘de and yield reasonable profits to the comPaT "Before final nalizing the vets budget of an organisation oF 4 company, ne has to take look on the favourable and unfavourable ‘market conditions which will have an impact on th “ budge' into consideration while preparing am advertising ge: i of the advertisement. Frequency of advert isement means the number ” ee tnes advertisement thas been shown with the description of the product or seryi in the granted time slots. In case a company needs more advertising frequency for ig product, then the company will have to increase its advertising budget i iti ye companies can have large number of competitors fr (i) Competition and clutter. 5S wow wa fr juct. Moreover there are large num! ies to then increase their advertising budget. (iii) Market share. In order to get a good market ‘share in comparison to their competitor the company should have a better product in terms of quality, uniqueness, dema and catchy advertisements with resultant response of the customers. This can only bg achieved by a firm when its advertisement budget is high. 5 (iv) Product life cycle stage. In case the company is new oF if the product is in it introductory stage, then the company has to keep the budget high to make place in the market with the existing players and to have frequent advertisements. As the tin ppasses on and product becomes older, the ‘advertising budget can come down as the the product does not need frequent advertising. (©) Company situation. Several company and product-related factors affect the ad budg ‘as well, Anew company may invest’ more initially than an established business similar size to attract a customer base or introduce new products. Companies wit more expensive or highly differentiated products may also have higher budgets than those with price-driven products because of the greater need to sell benefits. and value. Larger market sizes and more competitors to deal with can also contribute to higher ad budgets, because the business has to reach more peoplé and compete against more companies or products. (ci) Product substitutability. Brands in a commodity class like cigarettes, soft drinks a liquor require heavy advertising to establish a differential image. Advertising is important when a brand can offer unique physical benefits or features. Q. 17. Explain how stages in the product life cycle influence the advertisement budget. ‘Ans, Advertisement requirements are different for different product life cycle stages mentioned below: ; () Introduction stage. New products typically receive large advertising budgets "0°" awareness for early adopters and trade. (i) Growth stage. The consumer awareness spread in to, consumer trial and further sales. pad in ean. enaket helps 2 (ii), Maturity stage. At this stage advertisements must create differentiations in brand) positioning through different perspectives like benefits, application, price et. Establish al __ brands generally are supported with lower advertising budgets as a ratio of sales. (jv) Decline stage. At this stage the budget must be reduced to the level needed t0 ua loyal customers only. Q. 18. Explain the various metho ; rt ‘Also, discuss their merits and ftudistions, citing mp and preparation of advert clutter. The company has Or Explain any fwo methods of allocating the advertisi ; budget. ‘Ans. There are various methods of settin; en ee off i 5 ‘setting up an advertising budget. The choi of the” eetntuvay anh aie Sn eee aren pon te infernal station . 10d has its own merits, demerit ee Ricthods of preparing advertising budget. demerits and applicability. herent of Siler method: Under this mth, the amount of averting acct 7 od follows advertisi ; f sale ertising budget as specific percentage °UNIT E: Introduction to Advertising 1B The sales can be current or anticipated. Often past sales are also taken into consideration: For example, the last year sales were %5 crore and the company spent %5,00,000 for advertising. Hence the company has spent 1% of sales in the last year on advertising expenditure. Usually companies following this method have the tendency to maintain certain per cent of sales as ad budget. Based upon the past, current and the expected sales, a company determines the advertising budget. This method assumes that sales follow advertising efforts and expenditure. This method is also based on the assumption that there is positive correlation between sales and advertising. Many advertising experts believe that it is not a scientific method to decide on advertising budget. Merits of percentage of sales method: — Since this method is based on sales volume, hence, cost of advertising can be offset against profits earned through sales. — It creates a direct relationship between promotional costs, selling price‘and profits per unit. — It encourages an organisation to constantly achieve its sales target. — All firms in the industry spend approximately the same percentage of sales’ fo advertising. Hence this method maintains competitive parity. 2 Demerits of sales percentage method: : — Itis very difficult to decide the appropriate percentage of sales as there are no specific guidelines for this method. Thus this method lacks scientific base. : — Since-long-term sales forecasting is very difficult hence a firm cannot plan for long- term with the help of this method. = It ignores other objectives of advertising. This method gives priority to sales only. Needs and objectives are not taken into consideration under this method. — This method of advertising budget is quite inflexible. — This method does not take into consideration the product life cycle stage. — This method is based on a false assumption that only advertising affects sales. . 2. Objectives and Task method. This method is considered most appropriate for determining, advertising budget by a company. Under this method company’s own requirement and its environment is taken into consideration. This method takes into consideration the following three aspects — (i) Objectives, (ji) Task needed to achieve these objectives and (iii) Cost of performing the task. Thus, under this method a manager develops his advertising budget by defining specific objectives, determining the task that must be performed to achieve them and estimating the costs of performing the task. The sum of these costs is the proposed amount for advertising budget. This method is based on the relationship between the objectives and the task to achieve these objectives. This method considers the costs of various advertising activities to be performed to achieve marketing objectives. Advertising budgét under the objectives and task method is set on the basis of the objectives a company wants to achieve and in what way it wants the objectives to be achieved. This method is practically applicable and is logically consistent for all companies. The method emphasizes | on actual needs of the company. It is considered as a scientific method to set advertisement _ budget. 3. Competitive Parity method. Under this method, a company takes into consideration the competitor's advertising activities and costs for setting advertising budget. The advertising strategy adopted by the, competitors forms the very basis of advertising budget fixed by a company. Thus ‘under this method competitive factors are given utmost importance while deciding the advertising budget. For example, if a close competitor is spending around 5% of net sales on advertising, the company will spend more or less, the same per cent for advertising. Thus a company follows market leaders and healthy competitors under this method. Many advertising experts believe that this method should not be followed blindly as “companies differ significantly from the competitors in terms of product characteristics, manage- ment philosophy, sales, objectives, expenses, image and promotional means. It is advisable for a company to adjust its advertising budget as per the company’s internal and external situation. Limitations of competitive parity method: .— This method cannot be used in case of new products. — Itis difficult to ascertain the stage of competitor's prodiict in the product life cycle.16 Shiv Das DELHI UNIVERSITY SERIES = Companies differ from each other in terms of sales, profits, challenges, financial strength etc. Hence this method cannot be followed blindly. — Advertising is not the only factor that influences sales. There are various other factors influencing sales of an organisation. — This methel becomes very difficult to follow when there are competitors in the market. : co TeeetOr cnnnot be used by a company when there are no competitor — This method is not applicable to a market leader. . : 4, Affordable or Fund Available method. This is a simple method in which advertising budgets are prepared on the basis of company’s capacity © spend. It is based on the concept that 2 company should spend on advertising as per its capac. Company having a sound financial position spends more on advertising, on the other faa financially weaker organisations spend Poston advertising. Under this method a company allocates funds for advertising only after seeeting all the expenses. Advertising budget is treated 2s the residual decision. In case funds meeting hie the company spends on advertising otherwise it ‘operates without advertising. are avalcompany’s capacity to spend on advertising forms the very ‘basis of advertising budget under this method. ‘imitations of affordable or fund available method: : ieeeemelhod does not take into consideration the role or need of advertising in the competitive market environment. seca to uncertain planning in the long run since there is no guarantee that the company will spend for advertising. cena od only takes into consideration the financial position of Ther factors influencing advertising are ignored under this method. ' _. Js pet this method a company should not spend beyond is capacity on advertising. — There can be partiality in deciding the amount of advertising under thi : 5, Expert Opinion method. ‘Under this method, both internal and external experts are asked i ven period. Experts on the basis ” the amount for advertising. Experts supply their estimate Sadividually or collectively. Internal experts include company’s "executives like general manager, marketing manager, advertising manager, sales manager, distribution manager etc."On the marke J external experts involve marketing consultants, dealers, suppliers, distributors, ctvertising agencies, trade associations and other professionals related to the field. Advertising budget suggested by extemal experts is more neutral and hence is more reliable. These experts rede Ceerall situation and give their opinion on how much a company should spend on advertising. : Merits of expert opinion method: rite oF eT rious executives and experts are involved in this method, the estimates tend to be more balanced. eee ernal executives are very familiar with company’s strengths and weaknesses, the budget prepared with the help of this method is more accurate and realistic. : — External experts are more neutral to the organisation and have the ability to prepare ; and suggest accurate advertising budgets. Demerits of expert opinion method: — It is not a scientific method of advertising budget estimation. = emuy b become difficult to- prepare final budget estimates as there are many experts — Wheri more and more internal experts are involved it i i disputes within the organisation. : lved it may remult in conflicts a” — There can be possibility of prejudice or bias under this method — All types of opinions whet i eae : 6 abel they are right ar wrong are-given equal Ioxporia () Arbitrary Allocation. Under this ; : iriaa eathcdids basealon rales method, budget is determined by management solely. a baat eens coon gaychelopeal end ecobontes bed ap of th detersainat management and noten the: Lise and economic build up of the people in the t et needs. This method has the following limitations: large number of the company. All of their experience can determineUNIT I: Introduction to Advertising . ” = There is no systematic thinking under this m - = are ho objectives of budget — Thus the Pt and purpose of advertising and promotion is ignored. cages nish and willingness of manager decides the amount of advertsng budget < this : : are many small and big companies that set their budget in (i Return on Investment (ROD). In this’ method advertisi and ‘tions are considered investments like plant, investments and equipeit ih ather words, advertisements lead to certain returns. Like other aspects of the firin’s efforts, advertising and promotion are expected to earn a certain return. ROI method is considered as an ideal method of setting budget by many advertising experts/But in actual life situation it is very. difficult to exactly assess the retums provided by the ... Promotional efforts at least as long as sales continue to be the basis for evaluation. (ii) Vidale and Wolfe's model. This model calls for larger advertising budget, as it believes that higher the sales Tesponse rate, higher the sales decay rate, i.e., the rate at which customers forget the advertising and brand and higher the untapped sales Potentiah This model leaves out other important factors like the rate of competitive _ advertising and the effectiveness of company’s ads. . (Go) ‘The Compromise model, In actual practice, marketing executives usually blend some well accepted methods and determine a compromise budget, Such an approach gives answers to the following questions by logically averaging different methods: ~ — Who are the target audience? . — What is the size of audience and location? — What are the’ media available for advertising? — Which media combination is suitable? — What kind of campaign is required? : — What frequency of advertisement is needed? (®) John Little model. This method is an adaptive control method for setting advertising budget. Under this méthod company spends at a lower rate in test markets and at a higher rate in other markets. This method yields information on the average sales created by low, medium and high rates of advertising that can be used to update the parameters of the sales response function. The updated function can be used to determine the best advertising rate for the next period. If such an experiment is repeated, advertising expenditure will closely track optimal advertising expenditure. (vi) Total Group budget. In case of multi-product companies, a total amount is decided as advertising expenditure and each strategic business unit receives a share as per their needs. This method helps the firm to segregate some amount for corporate group advertising for building the image of the organisation. (vii) Operational modelling. Market research gives advertising expenses, market response and sales per advertising figures and the modelling is done to explain the budget. (viii) Composite model. This method takes into consideration several factors in formulating the advertising budget which include indices like firm's past sales, future sales projection, production capacity, market envitonment, ‘sales personnel, seasonality of the market, regional considerations, changing media scenario and changing media impact on the target market segment, market trends and outcomes of advertising and marketing. (x) Incremental concept or approach to advertisement budgeting. As per this approach advertisers keep on increasing the advertisement budget to the extent where the last unit spent on advertising is equal to the net profit contribution by the additional sales generated from the promotion. From economics viewpoint this approach is considered as the concept of marginality. Under this approach, advertisement expenditure is carried on to that point where there is-no further scope of increasing the incremental revenue from the incremental expenditure on advertising. Moreover the total advertisement budget should be apportioned among various media and product lines until marginal returns are equal. : gaoatay Media Decisions Q.1. What do you understand by advertising media? Discuss the various types of advertising media. Discuss the merits and demerits of various types of advertising media. ‘Ans. Advertising media refers to various means by WI i communicated to the public using words, speech and pictures. that are used by marketers to convey their promotional message to the general public. In simple words, advertising media refers to the various media channels through which advertising is done. Advertising media is used for showcasing promotional content that ‘is communicated 4 in various forms like text, speech, images, TV, radio, online, outdoor etc. Advertising, media refers to the channels through which companies can advertise their goods and services to reach customers. Advertising media can ‘be defined as the means or vehicles # Advertiser communicates his message to prospective customers ‘to influence their behaviour. It includes the physical means whereby marketer tells the ‘consumers about goods and services. Types of media used by the marketers to advertise their goods and services: Z L Brees Media. It is also known as print media. Itis widely “used for the purpose of commercial advertising, It helps in addressing large number. of people wi : gar statements, figures, pictures, drawings, comparative statements etc. It is used for advertising the products in an artful and colorful manner. It mainly includes newspapers, magazines and other publications. ; : ‘| Newspapers. Itis 4 popular medium used by advertisers to inform a large number of people. Newspapers are published in various languages and are issued weekly, daily or on monthly avis, Newspapers can be local, regional or national. The company 0) take into consideration various factors before publishing their advertisements in newspapers: Circulation, language, geographical coverage, printing, quantity, price of ‘ad, space etc. are some factors that influence ire choice of newspapers as a source of advertising media. ‘Merits of newspapers as a tool of advertising media: . () It is a source for mass communication. (i) Large number of people can be addressed through newspapers, (ii) Advertisers can convey their message quickly with the help of newspapers. (io) Advertisers may enjoy the benefits of the credibility of the newspapers, (@) Advertising through newspapers is suitable for almost all types of products. (ci) It helps the salesmen and dealers in the process of selling. (il) It is a relatively inexpensive source of advertising. (viii) It is an easy and simple medium to access the target market. () It is a more flexible advertising tool as advertisers can change timings, language regions etc. as per their needs. (@) It helps in measuring the response immediately. The effect of advertising can b assessed easily. Demerits of advertising as a source of advertising media: (i) Newspapers have a shorter life span. a Most of he newpaper advertisements are ignored by the readers. : (io) It is an ordinai sementsis greatly influenced by the quality of paper =” (eae : ary source of advertising, It is not impressive as compared to other fo ‘of print media are like periodicals and magazines, (2) It is not suitable when products require demonstration and installation. 18 oy icles through which ith the help of charts, slogans, —UNIT Il: Media Decisions ad (vi) It can be an expensive affair when number of-customers are limited. (vii) Newspapers are suppose to be bought by the customers. Hence, it is not a cost free medium. 2. Magazines. Magazines are another conimon and widely used advertising medium. Consumers use magazines for the purpose of information and entertainment. They are usually published on weekly, fortnightly, monthly, quarterly, half-yearly or annual basis. They are also published by religious and social organisations, colleges, schools, governments, professional Fd commercial associations. They can be classified in forms of age, industry, profession, entertainment etc. For example, Overdrive is a'popular magazine bought by automobile lovers. Similarly, Grihshobha is a magazine which is very popular among housewives. Merits of magazines as a'source of advertising media: () They have a long life. They can be referred and repeated by many users. (ii) Advertising message in magazines is more likely to be read, considered and reacted the users. _ (iii) The quality of paper used in printing and publishing is far miore better as compared to newspapers. : (fo) Magazines can be useful: in targeting special groups of customers. For example, children, women, professionals etc. 2 (0) Itis a credible and prestigious tool to send advertising message. (vi) It is a flexible and elastic tool of advertising. Demerits of magazines as a tool of advertising media: . () Many magazines have limited circulation. Hence they may not help in targeting large number of customers. , (i) Since magazines are published on weekly, monthly or quarterly basis hence it becomes difficult for advertisers to maintain continuity or consistency. (i?) Magazines may not help in conveying large advertisements as most of them are usually small in size. : (io) Magazine is an expensive tool of advertisement as compared to newspapers. Even from the point of view of customers, it is an expensive source of information and advertisement. _ (p) An advertiser has to send an advertising copy and money in advance. 33, Other print media. It includes books, notebooks, reports, directories, bus or railway tickets and timetables, professional’ and community directories, publications by. schools, colleges, universities, local bodies, companies, governments and cooperative societies. Such media is generally preferred by local: manufacturers, professionals, dealers, retailers etc. Selective advertisements are possible through this media. It is a relatively inexpensive source of advertising media. It has long life compared to magazines and newspapers. Il: Direct or Mail advertising. It is a form of advertising in which the message is directed + ‘to specific individuals directly by the advertiser. This medium includes written, printed or processed message delivered directly to the selected buyers. It helps in appealing to the target market directly. In reality this source is not suitable for a large number of customers. This type of advertisement is mostly sent personally or by post and courier services. Now-a-days fax, e-mail, SMS, etc. are popular modes to send direct mail on a limited scale. Following are some common methods for direct advertising: () Sales Letters. In this method a firm directly sends a letter to the customers. Such letters contain message, product description, special offers etc. Often fully addressed and duly stamped reply envelope is also sent to get response. For sending sales letters different methods are used like courier services, paid persons or postal services. (ii) Fax. Fax machines are used by advertisers to send invitations, catalogues and information about new product. Fax is now-a-days used for different purposes. With the help of fax an advertiser can send words, pictures, tables, charts, symbols ete. It is generally used when customers are limited in number and is normally applied for industrial products. (iif) E-mail. Now-a-days e-mail is a popular tool used by advertisers for sending messages. ‘Advertisers use this tool to get in touch with special customers: There are various messenger services used by advertisers like Gmail, Yahoo, Hotmail, MSN Messenger, etc.2 Shiv Das DELHI UNIVERSITY SERIES (jo) Cards, They are used to send precise messages, acknowledge orders, remind essionies answer enquiries, update mailing list or to make special offers. ‘Cards can be plain, arroured, multifold, single fold oF can be in forms or greetings or business et, (0) Greetings. Itis a popular way to establish relations with the custertrt “The company having up-to-date data of customers sends ing cards on different events and oxcasions: A precise message, picture of a product or slogan can be sent by an advertiser along with greetings. (oi) Circulars sone tse Leaflets are typed oF printed on one or both Camping be in coloured papers. Circulars and leaflets involve description or special : products, Many business organisations send circulars © Teaflets on regular basis + (ii) Catalogues, folders, booklets and brochures. ‘They contain importer jiances or and are widely used by companies dealing in two ‘wheelers, electrical app! other technical products. pote (viii) Calenders ca ties, Often companies offer calenders or dian pecially prepared as per their needs, free of cost to customers and dealers, containing thelr nasies symbols, brand names, slogans or pictures of the products. AS compared to calenders, diaries are more informative and expensive. . (j2) Others. Other direct or mail Sain ‘includes: pamphlets, story books, articles, cartoons, jokes, Short Message Service (6MS), Data cards, samples and gifts. Merits of direct or mail advertising: () It is a very effective tool of advertising media as it involves a di appeal to the customers. a : @ aPpen rore flexible advertising media tool as advertiser has more flexibility to adjust with different types of customers. (iii) Catalogues, booklets, circulars, filters, value: (iv) Advertiser can exercise complete control over this advertising media. It can be sent as and when required by the advertiser. (0) It helps in conveying the main features of the product clearly to the customers. (2%) Tthelps in grabbing the attention of the customers. Demerits of direct or mail advertising: {i Since advertising message is conveyed personally, it involves more costs. (i) It involves a lot of clerical work. A special department is supposed to be established for regular mailing. (ii Its only useful when there are limited number of customers, {iv) Often this method is ignored by the customers, hence can result in waste of money and efforts. (c) This media is useful only when the target understand the intended message. (oi) Personalised appeal is difficult through this media as the company does not possess complete information about its buyers. " (vir. Often people hold negative attitude towards direct advertising tactics like e-mails, ‘SMS, business letters, etc. Thus, they ignore such type of messages. IIL Outdoor media. Many companies use outdoor advertising media for various types of goods and services. It is heavily used by manufacturers and dealers, hotels, restaurants, coaching institutes, insurance companies, banks and railways etc. Soft drinks, cements, cigaretes, petroleum products and cosmetic products are widely advertised through this ia. Companies which do not want to heavily spend isi i a eerie for the perpoot of adverdsing pendon television, saclo endl nore Following fare the most common outdoor advertising media: ) Banners. They are used at famous places like cricket grounds, tot fairs stage shows, talent shows, annual funct eee ee il @ sears and conferences o public meetings. af echools, colleges.and waive ii) Special signboards, These are use ilwa cee ’ ‘tecteontricatos baste fs Air Tees Deas, Vosioe idea, re alanis Ga Wand Gaston ee ite ele ate Vodafone, Idea, etc. use hs less regarding their offers and services. 7 ; | q irect and personalised brochures etc. are effective and have educative f time, | customers are educated and are able toUNIT II: Media Decisions a + (ii) Kiosk, These are triangle or-square shaped boxes with written words or pictures on __ them. They are usually hung on cecmiy o telephone poles. ‘ (i) Billboards. These are special boards prepared to advertise the products. Retailers, dealers etc. put these boards near their shops, stores and showrooms. Such boards can also be seen on the upper sides of huge buildings. (®) Handbills. These are a kind of leaflets which are of small size. These are very common and cheap. Advertisements are printed on small pieces of paper. A person is hired to distri- bute these on a hand to hand basis, Often they are distributed along with newspapers. (vi) Station posters. These are multi-coloured printed posters with written message and pictures. These are stuck on walls, benches, canteen walls, at bus stations, railway’ stations and airports. (vii) Sky writing. It is used in foreign countries and is not a very popular Source of media in India. It includes, showing words, symbols, pictures etc. trough airplane gas, balloon or helicopter. : (viii) Symbol of product. Large size products, picture of products or package of products are used for advertising purpose. Various brands like TVS, Coca-cola, Maruti, Hero Honda etc. use this medium. 7 (i) Neon signs. In this method neon tube lights are used for advertising. Words are written by neon tubes and are placed on boards on buildings. Different colours are used to make it attractive. This can be used only during the night. Coaching institutes, business firms, restaurants, banks etc. often use neon signs to promote their brand and business. (2) Other outdoor media. Following are other outdoor advertising media that are often used by the marketers: ‘ — Vehicle advertising — Posters and wall paintings — Hoardings — Trade fairs — Balloons etc. " Merits of outdoor advertising media: () Such media do not need customer's special time and effort to watch and read. (i) It is capable of attracting masses. (ii) It is a comparatively cheaper source of advertising media. (iv) It is capable of grabbing’ customer's attention as they are large in size. (0) Itis generally placed at places where people can see and read it easily like gardens, stations, traffic signals, metro stations, railway crossings, road crossings, corners, highways, etc. (vi) Some_of the media under outdoor advertising like hoardings and billboards have longer life and they help in advertising the same product for a long time. Such advertisements remain before the people for a long periéd of time. (vil) Advertiser can place various outdoor advertising media anywhere he likes. He can use this media to convey words, slogans, description, symbols, pictures etc. Demerits of outdoor media advertising: () Often people ignore such. type of media. Hence they: do not pay atteition to the message conveyed by the advertiser through this media. (i) Various outdoor advertisements like hoardings, posters etc. are not movable. They cannot be moved to other places. (iii) The effect of such advertisement cannot be measured or assessed. (iv) Use of such a media on a large scale is expensive. (2) Such media does not possess the benefits of voice and live moments like in the case of radio and television. if (vi) They can lead to accidents and mishaps on the roads as they can be distracting. IV. Audio-visual media. It includes media that can be seen or heard. Now-a-days audio- visual media is very popular among advertisers. Marketers rely heavily on such media to send their advertising messages. Aggressive audio-visual vehicles are used by advertisers to prove their superiority over other homogeneous products available in the market. Audio-visual media though being expensive is considered as the modern and prestigious media among all the advertising media, Such media helps in promoting all types of goods and services. It mainly includes television, radio, short films, internet, moving slides, film slides etc.