Advertising

Week 5
Lecture 1
 ROLE AND FUNCTIONS OF ADVERTISING

ROLE & FUCTIONS OF ADVERTISING

• Acquire enhanced volumes of sales of products & services.
• Generate awareness about offerings.
• Induce trial of a new product & service.
• Motivate & impress trade channels.
• Change perception & create reassurance.
• Influence staff.
• Support sales promotional sponsorships & public relations
activity.
• Make announcements in public interest.
 ROLE AND FUNCTIONS OF ADVERTISING

PURPOSE OF ADVERTISING AGENCIES

• Advise & counsel on marketing strategy.
• Advise & counsel on advertising and media strategy.
• Prepare & develop, print, outdoor, and electronic
advertisement.
• Carry out collateral designs of various items such as
display material & other display material.
• Help & counsel on sales promotion & other
communication tasks.
 ROLE AND FUNCTIONS OF ADVERTISING

Different Types of Agencies

Type of Agency Role
• Full Service Agency: Provides all marketing
communication services.
• Creative Agency: Provides writing of ad copy & design
service.
• A Media Independent: Offers buying space & time &
related research.
• A Composite Agency: Offers both creative & media
services with research
 ROLE AND FUNCTIONS OF ADVERTISING
Structure of an Advertising Agency
• Account Executive: Organizes the resources of the agency to solve the problems of the
client.
• The Creative Team: Basically comprises of a writer and a designer.
• Account Planner or Researcher: Responsible for the data and market intelligence on
the account
• Media Planner: This team actually makes the campaign come live.
• Account Director: Overall responsible of providing service to clientele of the agency.
• Creative Director: Overall incharge for the creative and the artwork of agency‘s clients.
• Media Director: Responsible for media planning of the buying activities of the agency
• Production House: This is the department which brings alive the creative art work of
creative team.
• Release to Media: All finished material is ensured to be with the media several days
before the launch date
 ROLE AND FUNCTIONS OF ADVERTISING
How are Advertising Agencies Paid
• Paid by Media & not by Client by an agreed percentage of commission for advertisements
released.
• An agreed commission is charged on services like production cost etc.
How to Select an Advertising Agency
Following points should be considered before selecting an agency:
• Name & Address etc.
• Agency History.
• Year of establishment.
• Ownership pattern.
• Team of professionals.
• Size of turnover… Annual reports.
• Growth trends.
• Revenue & Billing for last 5 years.
• Clients – won & lost in last 3 years.
• Agency mission.
ROLE AND FUNCTIONS OF ADVERTISING
 ADVERTISING PLANNING
ADVERTISING PLANNING (CONSUMER BEHAVIOUR)
• What motivates the buyer?
• Why does buyer choose a specific brand over others?
• Why does buyer buys from where he or she buys?
• What makes buyer shift from one brand to another &
from one shop to another?
• What are buyer‘s reactions to newly introduced product?
• What are the various stages buyer passes through before
making a decision?
 ADVERTISING PLANNING
ADVERTISING OBJECTIVES
An advertisement, to be effective, should be Seen--Read–
Understood – Believed & Acted upon So there are three
objectives:-
• Sales Objectives. Immediate increase in sales
percentage(Chart No 1)
• Communications Objectives. Increase in market share (Chart
No 2)
• Behavior related Objectives. Increasing company‘s brand
usage rate among existing consumers and Encouraging non-
users to have trial consumption and / or purchase
ADVERTISING PLANNING
ADVERTISING PLANNING
 ADVERTISING PLANNING
Types of Advertising
• Brand Advertising.
• Retail or Local Advertising.
• Political Advertising.
• Directory Advertising.
• Direct Response Advertising
• Business to Business Advertising.
• Institutional Advertising.
• Public Service Advertising.
• Interactive Advertising.
 ADVERTISING PLANNING
Target Audience
How to determine?
• To whom is advertising addressed?
• Where will the objectives be achieved?
Process of Identifying Target Audience
• Identify the market.
• Identify appropriate segments.
• Decide criteria for selecting relevant segment.
• Target audience. (selected segments)