ad marketin final

7/29/2019 Ad Marketin Final

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Advertising and

Marketing


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Inform

Persuade

Remind

Promote awareness of a

business and its product

or services

Stimulate sales directlyand "attract competitors

customers

Establish or modify a

business' image.


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Advertising and Marketing

Advertising is a partof Marketing: thus

all strategy is based

on complete

marketing

understanding

A Marketing Manager has

to take a complete

understanding of the

brand and its situation in

Product, Price, place

promotion and

The 4 Cs: Commodity

Cost, Channel,

Communication

+

Political Influences, Public

Opinion


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The 4 Ps and 4Cs of

Marketing

The Four Cs model is

more consumer-oriented


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Analyzing the 4 Cs

Shifting the focus to satisfying the consumer

reflecting the reality of the total cost of

ownership

Convenience takes into account the ease to

buy a product, find a product, find informationabout a product, and several other

considerations.

Communications represents a broader focusthan simply promotions. It includesadvertising, public relations, personal selling,viral advertising, and any form ofcommunication between the firm and theconsumer.


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Extended

Marketing Mix

1970s, Nickels and Jolson

suggested the inclusion of

packaging.

1980s Kotler proposed public

opinion and political power

Booms and Bitner

included three

additional 'Ps' to

accommodate trendstowards a service or

knowledge based

economy


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People all people who directly or indirectlyinfluence the perceived value of the product orservice, including knowledge workers,employees, management and consumers.

Process procedures, mechanisms and flow ofactivities which lead to an exchange of value.

Physical evidence the direct sensoryexperience of a product or service that allowsa customer to measure whether he or she hasreceived value. Examples might include theway a customer is treated by a staff member,or the length of time a customer has to wait,

or a cover letter from an insurance company,or the environment in which a product orservice is delivered

Extended

Marketing Mix


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The 7 Ps The 7 Cs

Organisation Facing Customer Facing

Product = Customer/ Consumer

Price = Cost

Place = ConveniencePromotion = Communication

People = Caring

Processes = Co-ordinated

Physical Evidence = Confirmation

d


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Promotion and

Communication

Promotion represents all of thecommunications that a marketermay use in the marketplace.

Promotion and communicationis usually done through fivedistinct elementsadvertising,

personal selling, publicrelations, word of mouth andpoint of sale.

A certain amount of crossoveroccurs when promotion uses thefive principal elements together

Advertising covers anycommunication that is paid for,from and cinema commercials,radio and Internet advertsthrough print media andbillboards.


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Marketing & Advertising

Marketing Mix Models The

problem

Assumption: Advertising

is to do with promotion

Today it is used with

the other mixes in the

IMC concept


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From Business Plan to

Advertising

More AD Spent does

not result in greater

visibility

Response to

advertising is uneven

and unstable

Strategy is core to

Better advertising

Advertising

Plan

Marketing Plan

Business Plan


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Maximization The

Expectation

Economics Theory:

individuals or societies

gain the maximumamount out of the

resources they have

available to them

Ref:notes


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Advertising: the unaccountable many

Competition behavior, elasticity of

demand, creative and copy, media

differences.

However Post advertising research is

trying to assess the profit maximization

the growth of empirical data in all

kinds of advertising -computer modeling

and modern research also the growth of

Internet advertising solutions

Profit Maximization : Marginal Revenue

calculated with Marginal Cost Increase in

output will always raise profit as long as MR is

greater than MC


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Marketing and Advertising - The Links


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When does Adverting goes up

When the cost of sales go up

in relation to advertising

=more advertising will be used.

More advertisements in lieu

of sales people or even retail

solutions

When does Sales Promotiongoes up

In an inflationary economy

In a recession economy


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The task of advertising is to be pull and push factor the information source.

However it can be also responsible for the entire selling job. (The most complete

concept to this is telemarketing or mailers and the increasing influence of online)

Product Advertising

Obviously where there is

always something tangible to

Sell

Non Product

Advertising

Corporate, Institutional Image

building, ultimate goal is also

to increase sales in direct

and long term situations


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PIMS Profit Impact of Market

Strategy

Empirical Evidences: American Strategic Planning

Institute

Variablesa strong market position

high quality of product

lower costs

lower requirement for capital investment

market share

image

investment intensity market growth

life cycle stage

marketing expense to sales ratio

PIMS

possible strategies,

based on the data

gathered from

participating

companies

ROI and cash flows


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Today companies ensure its value proposition across the

different phases , to create a value proposition life cycle

Evaluation

Process

Value

Co-creation

Purchase

Power

Set up &

installation

Use &

operationComplementary

Products

After sales

solutions

Ending of

Servicce


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Infrastructure

Core capabilities: The capabilities

and competencies necessary toexecute a company's business

model.

Partner network: The business

alliances which complement

other aspects of the business

model.

Value configuration: The rationale

which makes a business mutually

beneficial for a business and its

customers.

Offering

Value proposition: The products and

services a business offers. Alexander

Osterwalder. (2004), a value

proposition "is an overall view of ..

products and services that together

represent value for a specific

customer segment. It describes the

way a firm differentiates itself from

its competitors and is the reason why

customers buy from a certain firm

and not from another."


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Customers

Target customer: The target audience

for a business' products and services.

Distribution channel: The means by

which a company delivers products

and services to customers. This

includes the company's marketing

and distribution strategy.

Customer relationship: The links acompany establishes between itself

and its different customer segments.

The process of managing customer

relationships is referred to as

customer relationship management.

Finances

Cost structure: The monetary

consequences of the means

employed in the business model. A

company's DOC.

Revenue: The way a company makes

money through a variety of revenue

flows. A company's income.

C t i f l ti


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Categories of value creation:

Productivity & Returns: value is created by increasing a customer's

productivity, his returns and his utility.

Simplicity: value is created by making each phase of the value propositionlife cycle as simple as possible to understand. For example, a software

company can make the parametrization of its software as simple as possible.

Convenience:value is created by making a customer's life as convenient as

possible. For example, an online grocer creates value by delivering goods at

the time the customer desires.

Risk: value is created by minimizing a customer's various risks. For example,

a customer risks choosing a product/service that does not satisfy his needs,

or he may incur a physical risk by using the product (e.g. lawn mower) or he

may risk choosing a product at the wrong moment (e.g. buying a plasma TV

just before an important price decrease).

Image: value is created by the image a product/service gives its purchaser

(e.g. iPhone)

Th B i M d l th t t


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The Business Model that creates

Value Proposition For the

Customer - the new strategy

Core

Capabilities

Partner

Configuration

Value

Configuration

Infrastructure

Value Proposition

Offer

Distribution

Channel

Customer

Relationship

Target Market

Customer

Cost Structure Revenue

StreamsFinance


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Marketing and Brand

Wh t i


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What is a

brand

A brand name

identifies and

distinguishes a

specific product,

service

Profitable

Differentiator

Identifier

Relationship with

consumer

Base

of

Marketing

communication

Ownership


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Product

Made within the factory or

service

Can be copied

Brand

Bought by the consumer

Unique


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Brand

Characteristics and

Functions

Identity : Name that guides the

consumer towards choice

Practicality : Summarization of

information for retention Guarantee: Signature of provider

reducing risk and uncertainty

Personalization: allows consumer

personality expressions thru buyingchoices

Entertainment: Satisfaction of choice

includes novelty, arousal, surprise ,

gratification

B d E it


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Brand Equity

BrandEquity

(name andSymbol

Awareness

Associations

QualityProprietary

assets

Loyalty

Value to Customer Enhancing Customer

Interpretation Processing of information

Confidence in the purchase decision

User Satisfaction

Value to Firm by enhancingEfficiency & effectiveness of

market program

Brand Loyalty

Price/Margins

Brand Extensions

Trade Leverage

Competitive Advantage


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BrandKnowledge

Brand

Awareness

Brand

Image


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BrandAwareness

Brand

Recognition

Brand

Recall


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Brand Image

Unique Type ofAssociation

Strength Favorability


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Types of Brand Image

Associations

Attributes Benefits Attitudes


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Benefits

Functional Experiential Symbols


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Attributes

Product related Non product


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Non Product

Price Packaging User Image Usage imagary


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Brand Personality

Creating a brand personality in

keeping with the consumer

perception . Consistent with thefunctional and psychological

personality of the product and

brand


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Arriving at a value proposition-Advertising Communication


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Advertising,

Marketing

&Value

Proposition

Th b d


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The brand

can be seen:

Product Organization

Person Symbol

Th ti f th


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The creation of the

image

Product Organisation Person Symbol

ScopeOrganisational

attributes

PersonalityVisual Imagery

and Metaphors

Attributes Trust

Customer &

Brand

Relationship

Heritage

Quality/ ValueLocal /

national/global

Brand Image =


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Brand Image

Value Proposition +

Credibility

Value Proposition

Benefits

FUNCTIONAL

EMOTIONAL

SELF EXPRESSIVE

Credibility

SUPPORTS OTHER

BRANDS

Building the customer brand relationship


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Brand Identity

Implementation System

Brand Positioning

Subset of a brand identity

To a target audience

To be actively communicated

Providing a range of competative

and other benifits


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Marketing to

Advertising Objectives

Arri in at Ad ertisin


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Arriving at Advertising

objectives

Primarily

this is

Target

audience

driven

Trial

ContinuityBrand Switching

Switchback

Advertising


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Advertising

Objectives-Trial

Encourage customers to make an initial

purchase of a new product.

Companies will typically employ creative

advertising strategies in order to cut

through other competing advertisements.

The reason is simple: Without that first trial

of a product by customers, there will not be

any repeat purchases.

Ad i i Obj i


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Advertising Objectives-

Continuity

Continuity advertising is a strategy to keep

current customers using a particular product.

Existing customers are targeted and are usually

provided new and different information about a

product that is designed to build consumer

loyalty.

Ad ti i Obj ti B d


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Advertising Objectives- Brand

Switching

Companies adopt brand switching as an

objective when they want customers to switch

from competitors brands to their brands.

A common strategy is for a company to

compare product price or quality in order to

convince customers to switch to its productbrand.

Ad ti i Obj ti


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Advertising Objectives-

Switchback

Companies subscribe to this

advertising objective when they

want to get back former users of

their product brand. A company

might highlight new product

features, price reductions, or

other important product

information in order to get former

customers of its product to

switchback.


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Marketing to Media Objectives


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The usual marketing objectives that

need to get translated to media

Percentage or actual increase in sales and

market share

Increase of Brand visibility

Increase shelf space to a given percentage

volume

Bring in greater retail visibility


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Thus.

Current users will be encouraged to try the

product more

Brand switchers will be encouraged

The frequency of exposure to current users will be

increased

Potential users in the targeted segment will be

focused on

Will b b d th 8 t f


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Will be based on the 8 stages of

consumer decision making

Need

Awareness

Preference

Search

Selection

Purchase Use

Satisfaction

Building Brand &


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Building Brand &

Consumer Relationships

through Media Profiling the

target audience

Understanding

the creativebrief

Setting Budget

Parameters

Brand Trends

BrandConsumer

Media

di hi l


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Media Vehicle

Decisions

Reach and Frequency Audited Circulation

Media Vehicle Source Effect

Reach and


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Reach and

Frequency

Midday Mirror have a better reach to

youth

Mirror may actually have higher frequencythan Mid-day in Pune. But in Mumbai Mid-

day is a strong challenger for frequency

On the whole TOI as a collective may enjoy

both greater reach and frequency

Audited


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Audited

Circulation

Web Media vs/ Print

The New York Times Circulation strategy -The Newspaper vs/- the growing web

presence

Media Vehicle Source


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Media Vehicle Source

Effect

Based on What are you advertising:

Fashion- Femina or Cosmopolitan

Political TOI, IE, THE HINDU

General content to watch out for: Expertise,

Editorial fit, Prestige, Influence, Audience

involvement


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Media Decisions

Colour and size Impact

Location

Scheduling as per special timing and the

product flighting, continuous, pulsing-

ATL d BTL


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ATL and BTL

Above the line (ATL) is anadvertising technique usingmedia to promote brands.

include TV and radioadvertising, print , outdooradvertising and new media

conventional in nature andis considered impersonal tocustomers.

BTL (Below the line),unconventional brand-

building strategies likedirect mail, carpeting of

floors, events etc.


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Below the line


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Below the lineadvertising

Below the line promotions are

becoming increasingly

important within thecommunications mix of many

companies. FMCG products,

and industrial products use

them extensively.


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The term "Below the Line" is rapidly going out of fashion inadvertising circles as agencies and clients switch to an'Integrated Communication Approach.'

BTL is a common technique used for touch and feel

products. Those consumer items where the customer willrely on immediate information than previously researcheditems.

BTL techniques ensures recall of the brand while at thesame time highlighting the features of the product.

Media as a brand


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Media as a brand

contact

Planners looking at ensuring a

Products brand contact:

Sponsorships of teams, which program

to choose and timings, which films

could be chosen for ads-and all this

needs to integrate with the traditionalplan


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Media - The Long Tail

What is the Long Tail


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What is the Long Tail

Concept

"The Long Tail" is an article by Chris

Anderson in an October 2004 Wired

magazine article

Describes the niche strategy of

businesses, that sell a large numberof unique items, each in relatively

small quantities.

Derived from internet

driven advertising


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What is long tail

Products that are in low

demand or have low sales

volume can collectivelymake up a market share

that rivals or exceeds the

relatively few current

bestsellers and

blockbusters, if the store or

distribution channel is

large enough.


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Forget squeezing millions from a

few megahits at the

top of the charts. The future of

entertainment is in the millions ofniche markets at the shallow end

of the bitstream.Chris Anderson

Long tail and the


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Long tail and the

media

The exposure of content beyond the initial

released time frame.

This Long tail exposure can be a beneficial

factor for advertising, as the advertisement

exposure extends beyond the measured time

frame of the negotiated deal.

Advertising, media,


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brand building and long

tail

The scope of technology allows greater long tails

The range of ATL options are growing allowing for more

options

BTL options are expanding again allowing long tails

In today's IMC scenario the options for product promotion

are getting more

There are more media options for an advertiser to choose

from

The Long tail of media


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The Long tail of media

choices

Newspaper

National

dailies/magazines

Prime time TV

Local papersHoardings

BTL solutions

New Media solutions etc.


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Today with

information overload

the need

for engagment increases

Choosing your


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g y

media

Making the media advance your brand

agenda. (The 'official sponsor vs/ unofficial

sponsor the zoozoo phenomena)

Seek newer variety of engagement thecadbury viral video which also attract

brand switchers

Move out of Silos - go where the audienceis

The growing media long


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g g g

tail

Podcasts

Growing news media

Changing nature of content choice

3 G technology


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Mix the big media choices (the top) with the

other media engagements (IMC)-scalableengagement

Look at more flexible and neutral toolsaudience measurement

More target fixing: The Roadie, JAMmagazine

Judging the media


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g g

potential

How effectively does it reach your

audience

Does it encourage your audience to engage withyour product

Does it help create strong brand associations

ad marketin final

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