Advertising Spiral

Primary Stages
of the Life-Cycle Model
 Purpose of the
Pioneering Stage
• To educate consumers about new product
• To show people they have a need and that
advertised product can fulfill it
• To show that a product now exists that is
capable of meeting a need that had been
recognized but previously unfulfilled
 What the ad copy does
• Stresses what the product can do, offer or
provide that could not have been done,
offered, or provided by any product before
• Uses words such as “Now you can do this”
or “New”
• Emphasizes the generic aspect of the
product category in an attempt to educate
or inform the consumer
Cost: During the introduction of a new
product, heavy advertising and promotional
expenses are required to create awareness
and acquaint the target with the product’s
benefits
Advantage: You become the leader with a
substantial head start over others
Disadvantage : You may attract competitors
The trick becomes to hold onto your market
share
 Competitive Stage
•The competitive stage is the advertising
stage a product reaches when its general
usefulness is recognized but its superiority
over similar brands has to be established
in order to gain preference.
•In the early competitive stage, the
combined impact of the competitors,
creates significant growth for the whole
product category.
 The purpose
• At this point, the main question
competitors ask is: Which brand should I
buy?
• To communicate the product’s position or
differentiate it to the consumer.
• The advertising features the differential of
the Product
• Most advertising occurs during this stage
 Retentive Stage
The retentive stage is the third advertising
stage of a product.
It is reached when its general usefulness is
widely known, its individual qualities are
thoroughly appreciated, and it is satisfied to
retain its patronage merely on the strength of
its past reputation.
 The purpose
• Products reaching maturity and wide-scale
acceptance enter the retentive or reminder
stage of advertising.
• When successful brands stop advertising,
people forget about them.
• This advertising is usually highly visual or
name advertising, meaning the ad gives
little reason to buy the product
 The ad copy
• Most retentive ads look like posters with a
dominant illustration and few or no words.
• Few advertisers reach the stage where they can
consider their product entirely in the reminder
stage.
• In fact, if it is, that is probably cause for alarm.
• The goal is to maintain market share and ward
off consumer trial or other products.
• This is the most profitable stage.
 After the Retentive Stage
• A product can be in two stages at once
depending on the audience.
• Products can skip stages.
• A product may be allowed to die or the
market is expanded into a newer
pioneering stage
 The newer pioneering stage
• Attempts to get more people to use the
product through product modification
(adding or subtracting ingredients)
• May entail a complete overhaul of the
product
• Uses advertising to get consumers to look
at product in new light or shows new ways
of using the product and gives reasons for
using it more often
 The newest pioneering stage
• The spiral continues.
• It focuses on getting more people to use an even
newer product.
• It’s not easy. It requires the manufacturer to
develop either product innovations or advertising
positioning strategies that make the product
appear different in consumers’ eyes.
• As the spiral goes on, there are usually fewer
prospects and a company must become
proficient at targeting smaller groups of people.
The Advertising Spiral
A Typical Life - Cycle Model
Expanded Advertising Spiral
Advertising
Agencies
 Types
• Full service agencies - They provide clients with an
expanded talent pool of communication specialists.
Eg.McCann-Erickson (India) Ltd, J Walter Thompson.
• National, Regional, and Local Agencies - Around the
world, there are national agencies that focus on one
country's culture and business environment. .
• Specialized Niche Agencies. These usually rely on some
unique specialty Eg. Business-to-Business Agencies.
• Freelancers and Consultants In the advertising business
there are also many individuals who work for themselves.
Both sell their services to advertisers and ad agencies.
• In-House Agencies Some organisations have an agency
(or parts of one) inside their marketing department.
LlNTAS began as Unilever's house agency – Lever
International Advertising Services.
 Types
• Media Buying Services Another form of agency
specialization is media buying.
• Creative Boutiques and Design Houses
-These agencies tend to be small and limit their
involvement to the conceptualization and
production of creative executions.
• Ethnic Agencies. specialize by market niches
including ethnic groups. For example, African-
Americans, Hispanics, and Asians.
• Internet Agencies. companies interested in
marketing and advertising on the Internet.
• Market research suppliers - Research may be
provided by a variety of marketing research
suppliers.
 Four Divisions of a Full-
Service Agency.
• Account Management
• Creative
• Media Planning & Placement
• Research
 Accounts Department
1. Director of Account
Management.
2. Account Supervisors (ASs).
3. Account Executives (AEs).
4. Assistant Account Executives
(AAEs).
 Creative Department
1. Creative Director (CD).
2. Executive or Group Creative
Directors (ECDs).
3. Copywriters
4. Art directors.
5. Producers
6. Support personnel
7. Supervisors
 The Media Department
• Media Director (MD)
• Associate Media Directors
(AMDs).
• Media Planners.
• Media Buyers.
• Media Analysts
 The Research Department

• Research director
• Research project managers
• Secondary researcher
• Primary or field researcher
Structure
 Seven Primary Services of a Full-
Service Agency

1. Complete a Market Analysis

2. Develop an Advertising Plan
3. Integrated Marketing Communications
(IMC)
4. Prepare a Creative Strategy
5. Create Advertising Executions
6. Develop and Implement a Media Plan
7. Handle Billing and Payments
 Strategy and
Campaign planning
 Identify and Analyze the
Advertising Target.
• The group of people for which the advertisement
is aimed at
• Research and analyze advertising targets to
establish an information base for a campaign.
• May direct campaign at only a portion of the
target market
• The better the advertisers knowledge about their
target--the more effective the campaign.
 Defining Objectives
• What the firm hopes to accomplish from the campaign
• Should be clear, precise and measurable,
• Can help measure the success at the end of the
campaign.
• What are the goals of the campaign...to increase
purchases, to generate traffic in the retail store etc.
• Demand oriented objectives vs. image oriented
objectives
– Increase product/brand awareness
– Change consumer attitudes...
– reposition product
– Increase customer knowledge of product features
Creating an Advertising Message
• A function of the product's features, uses
and benefits.
• Different message to different target
market
• Dependant on objective of the campaign.
• Attempts to move the reader through:
– Awareness
– Interest
– Desire
– Action
Creating an Advertising Message
• Components of the advert:
– Headline
– Illustrations
– Sub Headline
– Body Copy
– Signature
– Brand name etc…
 Developing a Media Plan
• Primary goal--reach the highest number of
people (within the advertiser's target) per Rupee
spent.
• Achieve the appropriate message reach and
frequency for the target audience while staying
within the budget.
• Select the different media to be used
• Duration, frequency, dates and times of adverts.
• Effectiveness of plan determines how many
people in the advertiser's target will be exposed
to the message.
 Executing the Campaign
• Requires extensive planning and coordination
with
– Advertising Agencies,
– research organizations,
– media firms,
– printers, photographers, and commercial artists etc.
• Detailed schedules are needed to insure
everything is accomplished on time.
• Review production costs
 Evaluating the effectiveness of
the campaign
• Pretests before campaign
– Use a consumer jury.
• Measure the achievement of the
objectives
– Assessing the effectiveness of the copy
– Assessing the effectiveness of the media.
• During the campaign,
– measure no of "inquiries"
• Post tests after the campaign.
 Evaluating the effectiveness of
the campaign
• Use consumer surveys to measure the
– change in communication objectives,
– change in sales or market share.
• Use recognition tests to determine the
degree to which consumers recognize
advertisements.
• Recall evaluation, consumers are asked
what they have seen lately.
– Aided or unaided.
Thank you