Advertising

EXH4-9

U.S. Advertising Volume, 1997 ($ million)

$ Main media Other media etc. Grand total Main media Newspapers Magazines Television Radio Outdoor Total 110,956 76,573 187,529 41,670 9,821 44,519 13,491 1,455 110,956 37.6 8.9 40.1 12.1 1.3 100.0 %

SOURCE: Reprinted with permission from the May 18, 1998, issue of Advertising Age. Copyright Crain Communications Inc., 1998.

What is Advertising?
Advertising is: (1) Paid, (2) Nonpersonal Communication, (3) From An Identified Sponsor (4)Using Mass Media, (5) To Persuade or Influence an Audience.
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Definition
AMA
any paid form of non personal presentation and promotion of ideas, goods and services by an identified sponsor Purpose

Increase sales through trade or consumers Build image of the firms

The Classifications of Advertising

By Target audience
Consumer Business -Trade -Professional -Agriculture

By Geographic Area
Local (retail) Regional National Global

By Medium

By Purpose

Print Product Broadcast Nonproduct (electronic) Commercial - Radio Noncommercial - TV Out-of-Home Action Awareness Direct-Mail Internet 6

Why Advertising?
To identify and differentiate from other offerings To communicate information about the product To induce consumers to try new products and to suggest reuse To stimulate the distribution of a product

To increase product use

To build value, brand preference, and loyalty

To lower the overall cost of sales

To associate feelings with brand To link brand with peers and group norms (And. More?) To support personal selling

To ensure immediate buying action

Well advertised goods are presold goods

To ensure dealer support

Role of Advertising
Communication with consumers
Communicate with mass audience Explains important changes Nokia Reminds and reinforces Coke & Pepsi

Persuasion
Prospective buyers to buy pdt. / services Nike ads enhances sales by 300 %

Contribution to economic growth

Expand market Induce consumers to enhance purchasing power Achieving social objective

Societal role - catalyst of change

Change the perception of the prospect

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Ad Copy

Ad Copy
Liaison advertiser & prospect Copy the advertising message, or text, including the headline, deck, subheads and body copy

Advertising theme Ad layout

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Freshness

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Ad theme

Core idea of the advertisement / USP

Lifeboy hygiene

strong enough to arouse desire and induce action theme = consumer research = pdt features Based on human emotions, feelings and desires

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Types of themes

Motivational
Positive Negative Fear Ad : Head line : Do you smoke in your house Sub head line : It takes about 5 minutes for an entire room to be in flames, from the moment the cigarette is dropped on the floor. Company : Central bank Head line : Carrying a lot of money. You are asking for trouble

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Utilitarian usefulness of the pdt. Focused directed to a specific segment of the market ( J baby mothers) Informative features Non specific - vague Achievement oriented - goes beyond pdt. features to provide a sense of achievement Humor Descriptive & Projective info.+ achievement New pdt., service or scheme launch

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Identify the theme

Motivation : Fear :
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Utility : Safety

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Informative
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Motivational : Fear

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Motivational : Positive

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Make a Competitive Ad

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Ad copy
All elements of a ad message Print : heading, pictures, captions, body copy , slogans etc. Radio : words to be spoken, music played TV : words spoken by characters, music, sound effects, camera cues

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How to write ?
Understanding the Target segment Understanding the Product Identify the USP & Benefit

Detergent : USP : X ingredient Benefit : brightness

Understanding the six stage model of the consumer

Awareness, knowledge, liking, preference, conviction, purchase

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Print : develop the ad copy TV : scripting, casting, shooting, editing, dubbing Radio: recording, editing, dubbing

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Copy Elements
1.

Heal line

Present the selling idea / induce customer to read further Catch the eye of the reader Need not be special co. brand name

2.

Sub head

Smaller font than 1 Not necessarily included

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3. Body copy
Text features & functions of the product Do not beat the bush Length is subjective

4. Captions
Information typed in small font s Less important than 3 Coupons / special offers

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5. Blurb

a balloon displaying words spoken Comic strips

6. Boxes or panels

Special boxes that gain prominence

7.

Slogan, Logo & Signatures

Claiming familiarity with the audience

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Criteria for an effective ad copy

Be precise Be concise Aim to sell Be sincere Addressed according to type pf audience Stimulate interest Create desire Inspire confidence Influence readers thoughts and confidence

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Ad creation process

Ad strategy :

Effort of client + ad agency

Creative strategy / copy platform

Freeze on the USP then benefits Decide the appeal : rational, emotional others

Script / Story board

Script - words Story board sequence of key shots + scenes

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Types of copy
Scientific

Technical specifications are explained

Descriptive
Non technical description of the features Sleek & modern to win your heart

Narrative

benefits emerge from a story

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Colloquial

Informal conversation is used to convey message

Humorous Topical
Based on a recent happening event Amul P.T. Usha, Mike Tyson

Endorsement Copy

LUX
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Questioning

Topical

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Prestige Copy
Product is not directly advertised Favorable climate created

Reason Why

Explanatory note for purchase

Wordless Copy non verbal Comparative copy Intentional Copy

Cadbury vs Kit Kat 38

Layout Considerations
Back ground Border frame

Restrict movement in side the ad

Caption - subtitle Coupon Head line Illustration

Decoration Mascot Logo Slogan Price Product

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Emphasis of Background

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Triangular coupon

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Body broken with decorations

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Price emphasized

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Product emphasized

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Slogan emphasized

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Summarize
USP + BENEFIT + NATURE Ad copy 2 parts Contents defined Types of copy Plan the layout contents

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Ad Agency

Evolution of Ad agency
Traditional Ad Dept.

Managerial and operational functions

Started as a space broker in news papers in 1841 Philadelphia Lord & thomas was the 1st ad agency Defined: a team of experts appointed by clients to plan, produce and place ad campaigns in media

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Ad agency vs Ad dept.
Availability of specialists Unbiased view of the pdt. ( customers point of view ) Multi pdt. portfolio better understanding of consumers Pressure for results Agency swap is easier that dept. winding up Co. pays the media owner not the agency
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Control Institutions

Facilitating Institutions Advertising Agency

Government Advertiser Competition Research Suppliers Media

Markets and Consumer Behavior Major institutions involved in the field of advertising management
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Advertising Agency
How does it function

Account Executive
Liaison between ad agency and client Overlooks all the activities for the client

Creative director

Designing, art works, sketches

Production Department
Print, broadcast, telecast and production Responsible for hiring TV. Commercial marker

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Market Research department

Gather info. On target segment Find the suitability of product to the segment

Media dept.

Media selection, frequency of ad, cost and coverage

Full service agency Limited Services Agency

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Ad agency selection
Agency list

The India and Eastern News paper society Press and Advertising Hand book

Step 1

invite few agencies to present ad concepts in tune with the co. needs evaluate agency on parameters

Step 2 presentation of speculative campaigns Step 3 meet the key personnel at the agencys office

selection of the best concept

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Agency selection parameters

Agencys experience How creative the agency is Should not handle competitive pdts. Reputation Size agency locational constraints Experienced in int. marketing Quality of manpower and the key people Cost consciousness of the agency Confidentiality
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Functions of ad agency
Account management

Plans the objectives of the ad

Creative team

Writes the ad copy

Research Media planner

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Advertising Budget

Not an expenditure but an investment Decisions : How much to spend ? How to spend it ? Budget : forward plan of an activity expressed in terms of rupees

What is the total amount to be spent Appropriate the amount ( lp method)

Flexible to support contingency

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1.

Percentage of sales method (Factor method)

a. % of the total sales ( Rs.) Based on past / expected sales

Considerations
how much % to be taken past / expected sales past avg of 2 3 yrs ( factual ) BUT : adv. should not influence budget Solution : future forecast a reliable base

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Simple Used: co. operating in a consistent envi. Only links sales to adv. ( mkt. share & adv. ) Ineffective if differentiation is to be promoted

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2. Amt. spend / unit sold

Fixed sum / unit sold Depends on the units sold & amt. / unit Where : specialty goods

Drawbacks
No contingency for business cycles All advertising not linked to sales

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3.

Objective task method

Objectives to be achieved and tasks to be performed are predetermined

Obj: increase sales Tasks : increase awareness by 50 % Media selection Budget preparation

Realistic by nature Need based

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4. All you can afford method

Allocation based on the wish of the management Amount allocated previously

5. Arbitrary

6. Comparative parity
at par with competitors flaw : pdt. & co. are different

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7. Incremental Concept
Based on concept of marginality Marginal Revenue = Marginal amount spent on advertising Theoretical approach

Cannot measure additional profits from an additional rupee spent on adv.

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Budget allocation
Media Cost Sales Territories Total Exposure Products to be advertised

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Ad appeals

1.

Rational

2. Emotional 3. Direct & Indirect 4. Moral

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1.

Rational
Satisfy customer reasoning process Acceptable to the society believable & effective ad Applicable to industrial buyers Rational buying motives
High quality Low price Long life Ease of use Re sale value Economy in operating
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2. Emotional
Not preceded by rational analysis Rational + emotional

Levis : youthful, rebellious, strength

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Negative emotional appeals

Induce behavioral change in consumers Increases the customers anxiety in using the product Enforcement of a negative appeals

Fire insurance : loss of property,

Precautions
Relevant Have a natural flow of feelings Should be exaggerated

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Fear
Get consumers to start doing something / Get consumers to stop doing something Where : durables, insurance, personal care pdts. Etc Fear : not too much nor too little

Exceeds limit : solution not app.

Study conducted by CARE

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every housewife knows how miserable she feels while cooking. Khaitan presents a simple solution. Khaitan fresh air fan. It drives out smoke and brings in fresh air.
Negative + positive appeal Stimulus is negative Drive is positive

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Sex appeal
Most extensively used Non sexual ads are more effective Females offensive

Risky for female pdts.

Males over emphasis leads to ad recollection but not brand recall

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3. Direct Appeals

Informative Highlights: need + message on the pdt. Message is ambiguous Product oriented :

4. Indirect Appeal
a.

Feature oriented, Use oriented, Product comparison

Attitude oriented, Significant group oriented, Life style oriented, Sub conscious oriented, image oriented
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b.

Consumer oriented

5. Moral
Appeal to the right sense of an individual Right or wrong Adult literacy, anti smuggling, rural development, donations etc.

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Media Planning

Types of Media
1.

Print

Daily, weekly, Sunday, weekend supplement, magazines( consumer & business), direct mail
Radio, television, narrow cast

2.

Broadcast

3. 4. 5.

Outdoor Transit Advertising Others

Specialty- t- shirts, buttons, caps, stickers etc Direct marketing Internet
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Media selection

Selection of a medium of advertising

Media plan selection of medium + time & space utilization

Judicious mix : right pdt. @ right time over the right medium Crux : maximize profits from ad budget

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Media Planning Process

1.

Target segment detail: geo + demo + psy

Audience characteristic of media Media selection based on ?

2.
3.

Develop ad copy Match Audience characteristic of media + target segment profile + adaptability of message with media
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4. Considerations of media
Reach - % of total households in tg reached by a given medium over a period of time National readership surveys Frequency : average no. of times households reached by a medium over a period of time No. of exposures needed to sustain loyalty Average F = T exposure / reach

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Continuity

Ad inserted round the year

GRP : percentage of the target audience reached by an advertisement

the advertisement appears more than once, the GRP figure represents the sum of each individual GRP W 1 GRP 60% W2 GRP 40 %

GRPs = avg. frequency * % reach

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TRP : 239

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Issues addressed
Role of advertising agency & factors that govern selection ( b/w) Imp of adv 15 Define copy, types ( black 140 , chuna-79, 452 ) Components and quali- of ad copy (black) Ad creation process chuna 474 How to write an ad copy: chuna 438 Adv and dis any 2 methods of estrab. Ad budget chuna 230 Budget allocation black 100 Ad agency ? agency vs dept) (sherlekar) Types of ad appeals chuna 416

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Define comm rblb lackarch evaluation of ads

effectiveness Principles of SP why adv. Spend more on sp Criteria for choosing ad media Steps in ad media planning Role of ad in positioning 4r Profile of adv business in india / Latest trends in adv in India DOGMAR approach communication goals Imp of ad budget when selecting media Social responsibilities in adv. 15

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Social issues in Advertising

Deception

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