ADVERTISING

Advertising is any paid form of non personal

presentation and promotion of ideas, goods , or services by an identified sponsor.

Public Presentation

Pervasiveness

Amplified Expressions

Impersonality

Demerits

Very Costly

Less Credibility

Too Much claim

Manipulation of consumer’s mind

A Model of Cognitive response

Exposure to

Advertisement

Product/message

thoughts

Source-oriented

thoughts

Ad-execution

thoughts

Brand attitudes

Attitude toward

advertisement

Purchase

intention

Attitudes

What Advertising Can Do

• Remind customers and prospects about the

benefits of your product or service

• Establish and maintain your distinct identity

• Enhance your reputation

• Encourage existing customers to buy more of

what you sell

• Attract new customers

• Slowly build sales to boost your bottom line

• Promote your business to customers, investors

and others

What Advertising Can’t Do

• Create an instant customer base

• Cause an immediate sharp increase in sales

• Solve cash flow or profit problems

• Substitute for poor or indifferent customer

service

• Sell useless or unwanted products or services

Long – Run Impact of Advertising

New Customers

Advertising Immediate sales Future

Sales

Change attitude

Improve Image

Allied advertising objectives

Support personal selling

Improve dealer relations

Introduce a new product

Expand the use of a product

Counteract Substitution.

TYPES OF ADVERTISING

1. National Advertising

Advertising done by large companies on a nation wide basis or in most regions of the country.

Most of the Ads for well known companies and brands that are seen on prime – time TV or in other major national , or regional media are examples of national advertising.

2. Retail / local Advertising

Advertising done by retailers or local merchants

to encourage consumers to shop at a specific

store, use a local service, or patronize a

particular establishment.

3. Primary Vs Selective demand advertising

Primary demand advertising is designed to

stimulate demand for the general product class

or the entire industry.

Selective demand advertising focuses on

creating demand for a specific company’s

brands.

4. Business – to – Business Advertising

Advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies.

5. Professional Advertising

Advertising targeted professionals such as doctors, dentists, engineers, or professors to encourage them to use a company’s product in their business operations.

6. Trade Advertising

Advertising targeted to marketing channel members, such as wholesalers, distributors, and retailers.

The goal is to encourage channel members to stock, promote, and re-sell the manufacturers’ branded products to their customers.

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The Five M’s of Advertising T96

Mission Sales goals Adver- tising objectives

Message Message generation Message evaluation and selection Message execution Social-responsibility review

Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility

Measure- ment Communi- cation impact Sales impact

Media

Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

Fig 21.01

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Informative Advertising Build Primary Demand

Setting Objectives

Persuasive Advertising Build Selective Demand

Comparison Advertising Compares One Brand to

Another

Advertising Objectives

• Specific Communication Task

• Accomplished with a Specific Target Audience

• During a Specific Period of Time

Reminder Advertising Keeps Consumers Thinking

About a Product.

Dr. Rosenbloom

Functions Of Advertising

Inform

Persuade

Remind

Makes consumers

aware of new

products

Informs them about

specific brands

Educates them

about particular

product features &

benefits

Dr. Rosenbloom

Dr. Rosenbloom

Functions Of Advertising

Inform

Persuade

Remind

Persuade customers

to try new

products, brands &

services

Create demand for

entire product

category

Build secondary

demand

Dr. Rosenbloom

Dr. Rosenbloom

Functions Of Advertising

Inform

Persuade

Remind

Keeps company’s

brand fresh in

consumer’s

memory

Create top-of-mind

awareness

Dr. Rosenbloom

Dr. Rosenbloom