Advertisement – A Tool

of Promotion
Submitted to:
Niki Sanghvi

Submitted by:
Jayul Vaghani (43)
Jayesh Tank (37)
Akash Chokshi (1)
Hiral Panchal (31)
 What is Advertising?
 Any paid form of non personal presentation and
promotion of ideas, goods and services through mass
media such as newspapers, magazines, televisions or
radio by an identified sponsor. ( Kotler )
 Advertising is mass, paid for communication which is
used to transmit information, develop attitudes and
induce some form of response from the audience.
 Characteristics of Advertising
 Non personal form of communication aimed at a
target audience.
 Used by commercial and by not for profit
organizations.
 Most advertising is concerned ultimately with selling.
 It is a major element in the promotional mix.
 Objectives
 An advertising objective is a specific communication
task to be achieved with a specific target audience
during specified period of time.
 Like all objectives they should be SMART.
 In essence the main advertising objectives are:
- To Inform: to provide information about a product
- To Persuade: to persuade people to buy
- To Remind: to remind people about a mature product
 Inform, Persuade, Remind
Inform Persuade Remind
To provide information To persuade customers To remind customers
Used specifically with to buy a particular brand about a product they
a new or complex Stress the distinctive might other overlook.
product. features of the brand. Advertising a mature
Print media is superior Minimal Information. product.
to TV for this type of
advertising.
E.g.
E.g. Perfumes E.g.
Insurance Corn flakes
Cars
Financial Products Kit-Kat
Coca cola
New Electrical Goods
 SMART criteria
 Specific - the objective should state exactly what is to
be achieved.
 Measurable - an objective should be capable of
measurement – so that it is possible to determine
whether (or how far) it has been achieved
 Achievable - the objective should be realistic given
the circumstances in which it is set and the resources
available to the business.
 Relevant - objectives should be relevant to the people
responsible for achieving them
 Time Bound - objectives should be set with a time-
frame in mind. These deadlines also need to be
realistic.
 Summary of Objectives
 To create awareness  To increase market share
 To inform  To differentiate from
 To remind customers rivals
 To reassure customers  To build brand loyalty
 To support the sales  To change attitudes
force  To support activities in the
 To persuade distribution chain
 To promote Ideas/
Attitudes/ Causes
 Types of Advertising
 Informative- Provides information
 Persuasive- To encourage brand switching
 Reminder- To remind about a mature product
 Reinforcement- To reassure
 Pioneering- To introduce new product
 Competitive- To point out differential advantages
 Defensive- To reduce damage caused by campaign of
a direct competitor.
 Institutional or Corporate Advertising
 Seeks to promote corporate identity, image and
values
 This type of advertising is not about individual
products the company offers
 The product is not mentioned.
 Used by large companies, especially multinational
companies. E.g. ICI, BP
 BP promotes itself an energy company rather than a
petroleum company.
 Direct Response Advertising
 The use of prime media to elicit an order, enquiry or
request a visit.
 Direct response television advertising invites
consumer to phone in to place an order (E.g. some
music CDs are promoted in this way)
 The print media is also used- coupons cut out of the
page and inserts are means to invite people to respond
 AIDA
Advertising should seek to:

A- increase Awareness
I- create Interest
D- develop a Desire
A- encourage customers to buy

 Advertising seeks to move potential buyers through

these stages.
Developing an Advertising Campaign
 Set the advertising objectives.
 Define target market.
 Determine the advertising budget.
 Determine the key advertising message.
 Decide which media to use.
 Plan campaign timing.
 Evaluate the results of the campaign.
 5 Ms of Advertising

 MISSION- Objectives
 MONEY- to pay for the Campaign
 MESSAGE- to be Delivered
 MEDIA- choice of advertising Media
 MEASURE- Measuring the impact
 Determining the Budget
 The advertising budget will be set in terms of one of:

- what can be afforded

- A given percentage of sales
- Comparison with rivals
- Objective and Task- whatever is needed to achieve
objective
 Advertising Message
 An advertising message translates a company’s basic
selling proposition into words, symbols and
illustrations that are attractive and meaningful to the
target audience.
 The Message must be:
- Meaningful
- Distinctive
- Believable
 Main Advertising Media

• Television
• Cinema
• Radio
• Outdoors (billboards)
• Internet
• Print media- news papers n magazines
Factors in the choice of media

• Marketing mix • Permanence of the

• Relative cost media
• Target audience • Nature of the product
• Impact of the media • Size and spread of the
• Competition market
• • Advertising budget
Legal constraints
• Message to be
conveyed
 AIMRITE- Choice of Media

• Audience-does it reach the target audience?

• Impact-does it have the impact or ensure the
message has a chance of getting through?
• Message- does it ensure the message is clearly
communicated?
• Response-does it make responding easy?
• Internal management-does it enhance the
efficient management of the campaign?
• The end response – costs and projected likely
revenue
 Television

Advantages Disadvantages
• Large audience • Very high overall cost
• Low cost per exposure • Limited prime time
• high impact-color, space
sound and movement • Short lived
• Can target specific • May not be watched-
groups visual wallpapers
• Convey only a limited
message
 Radio

Advantages Disadvantages
• Relatively • Limited impact
inexpensive • No vision
• target specific • Short life
segment
• Relatively mobile
• Local
 News Paper

Advantages Disadvantages
• target specific • Low impact
segments • May get lost in the rest
• Widely read of the paper
• Short lead time • Not every group reads a
• Frequent publication paper
• Inexpensive compared • High costs especially
to television for national news paper
• Color printing adds to
impact
• Local regional national
papers available
 Magazine
Advantages
• Useful for targeting
specific group
• Good reproduction-
high quality gloss
images
• Long life-read at leisure
• Can be linked to
features
• All consumers interests
catered for
Disadvantages
• Can be expensive
• Long read time
• Some magazines are
only published
monthly.
• Moderate impact
• Slow impact due to
long life
• Magazines with limited
readership are not
suitable for mass
 Cinema

Advantages Disadvantages
• Captive audience • Limited audience
• High impact • Mainly young
• Can be specifically audience
targeted • Short lived message
• Local audience • May only be seen
• Visual, sound, once.
movement
 Out door-Billiboards

Advantages Disadvantages
• Repeatedly seen • Message must be
• 24/7 coverage simple and short
• Target particular area • Can not target
• Local media socioeconomic groups
• May encourage • Rarely attract full
attention
impulse buying if
close to shops • Short lived
• May be seen as traffic
hazard
• Difficult to measure
effectiveness
 Advertising on transport

Advantages Disadvantages
• Low cost • Harder to target by
• Target specific areas socioeconomic class
• Captive audience • Quick results unlikely
• Reaches wide diverse • Difficult to measure
audience effectiveness
• Rarely gains reader’s
full attention
• Space for only a short
message
 Internet

• One of the fastest growing advertising media

• Can target particular groups according the site a
customers is on.
• Can be saved by the consumer
• Can use moving images as well as written
information.
• Can be expensive to set up.
• Allows direct link to the product.
• But not used by all potential groups of customer.
• Customers may see the advertisement as in the
way of what they really need from an internet
site.
 Advertising on the internet

• Paid-for search inclusion (e.g. google adwords)

• Company website
• Banner adds-On line adverts on relevant website.
• Link exchange – mutual exchange at links
between websites or similar or complementary
interest.
• Search engine/directory listing.
• E zine/email sponsorship – on line magazines
delivered to subscribers via email.
 Internet advertising

• Cheap • Problems of
• Easy to set up connecting
• Easily updated • Limited audience
• Number of hits can be • Technical problems
monitored-useful • Banner adverts not
measure of very effective
effectiveness • Search engine listing
can be costly (e.g.
click fraud)
 Evaluating effectiveness of
advertising
• Judge in relation to the objectives
• Did the advert achieve it objectives?
• Is it cost effective?
• Here the question to be asked is weather or not
the objectives were achieved at the lowest
possible cost.
 Efficiency/effectiveness
matrix

efficient inefficient
effective Achieves objective Effectively but
at lowest possible more costly than it
cost needed to be
ineffective Inexpensive but Expensive but did
objectives not to achieve objectives
be achieved
 Advertising effectiveness

• It is expressed in terms of its ability to meet

objectives.
• If sales increased profits and sales are the aims,
then effectiveness is measured in terms of the
return on investment in advertising spending.
• If the competitive defense I the main aim it is
measured in terms of the maintenance in
indicators of competitive position (e.g. market
share)
 Advertising elasticity

• A measure of the responsiveness of the demand

to an advertising campaign.
• %change in quantity sales/% change in
advertising spend
• If a 10% rise in advertising spending is followed
by 20% rise in demand or sales than advertising
elasticity is 2.
• But can we be sure that sales rose because of the
increased advertising?
 Measure of advertising
effectiveness
• Advertising awareness- the ability of a consumer
to remember a particular advertisement.
• Advertising coverage-the % of target market
who have at least one opportunity to see an
advertisement during a campaign.
• Advertising share of voice- the proportion of
overall advertising in a market accounted for by a
brand or company.
• Advertising to sales or ratio- expenditure on
advertising as a proportion of sales
 DAGMAR

• The DAGMAR models highlights how

advertising can be assessed by a firm.
• Defining
• Advertising
• Goals
• Measured
• Advertising
• Results
 A word of caution

• Even good advertising can not overcome

problems caused by
• Poor product
• Inefficient service
• Uncompetitive pricing
• “half of all advertising is wasted- the problem is
we don’t know which half”.(Lord leverhulm)
founder of unilever.