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Page 1: Advertising

AdvertisingAdvertising

Page 2: Advertising
Page 3: Advertising

DEFINITIONDEFINITIONAccording to AMA ,According to AMA , “ “Advertising is a paid form of non-Advertising is a paid form of non-

personal presentation & promotion of personal presentation & promotion of goods, services or ideas by an identified goods, services or ideas by an identified sponsorsponsor.”.”

According to Philip Kotler,According to Philip Kotler, “ “Advertising is non personal form of Advertising is non personal form of

communication conducted through paid communication conducted through paid media under clear sponsorshipmedia under clear sponsorship.”.”

Page 4: Advertising

AdvertisingAdvertising

Advertising is Paid, Non personal Advertising is Paid, Non personal Communication from An Identified Sponsor Communication from An Identified Sponsor Using Mass Media to Persuade or Influence Using Mass Media to Persuade or Influence an Audience.an Audience.

OROR

DescriptionDescription or or presentationpresentation of a of a productproduct, idea, or , idea, or organizationorganization, in , in orderorder to induce to induce individualsindividuals to to buybuy, , supportsupport, or , or approve of it.approve of it.

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FEATURES OF ADVERTISINGFEATURES OF ADVERTISING

Non personal form of communicationNon personal form of communication Paid form of communicationPaid form of communication Issued by an identified sponsorIssued by an identified sponsor Promote idea or product or servicesPromote idea or product or services Important tool of promotionImportant tool of promotion Supplements personal sellingSupplements personal selling Dissemination of information concerning an idea, Dissemination of information concerning an idea,

product or services to induce an actionproduct or services to induce an action Advertising is a mass way of persuasionAdvertising is a mass way of persuasion Most efficient way of reaching to the people.Most efficient way of reaching to the people.

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Who needs advertising?Who needs advertising?Companies use advertising to:Companies use advertising to:• to give the company a “personality” which sets it apart from to give the company a “personality” which sets it apart from

the others.the others.

• to remind customers about their brands at the to remind customers about their brands at the right time and right placeright time and right place

• to tell the public about improvements in productsto tell the public about improvements in products

• to help their sales force to be more effectiveto help their sales force to be more effective

• to reinforce customer confidence in his/her purchaseto reinforce customer confidence in his/her purchase

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Governments and autonomous bodies use advertising to:

– Inform people about their policies

– Promote birth control

– Educate the masses on health care

– Prevent panic during natural disasters

– Dispel harmful rumors

– Attract foreign investment

Who needs advertising?Who needs advertising?

Page 8: Advertising

Functions of AdvertisingFunctions of Advertising

Main functions of Advertising can be classified as follows -:

1)1) Primary functionsPrimary functions

2)2) Secondary functionsSecondary functions

3)3) Social functionsSocial functions

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Primary FunctionsPrimary Functions

Creates demandCreates demand Announces for new product or serviceAnnounces for new product or service Promotes new uses of the productPromotes new uses of the product Informs about changes in product, price, placement.Informs about changes in product, price, placement. Helps in understanding the usefulness of the product & Helps in understanding the usefulness of the product &

method of using it.method of using it. Announces special offers / schemes.Announces special offers / schemes. Reminds UsersReminds Users Creates Brand PreferenceCreates Brand Preference Helps to neutralise Competitor’s AdvertisingHelps to neutralise Competitor’s Advertising

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Secondary functionsSecondary functions

Helps to boost the morale of salesmen & Helps to boost the morale of salesmen & other employees other employees

Supports salesmenSupports salesmen Reaches customers left by salesmenReaches customers left by salesmen Helps to procure better employeesHelps to procure better employees Announces Location of dealers & stockists Announces Location of dealers & stockists

to supports them.to supports them.

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Social FunctionsSocial Functions

Helps to improve standard of living Helps to improve standard of living Creates awareness among rural massesCreates awareness among rural masses Creates employmentCreates employment Educates consumersEducates consumers Helps to solve social problemsHelps to solve social problems Creates awareness about dangerous diseasesCreates awareness about dangerous diseases Helps to circulate important Government Helps to circulate important Government

NotificationsNotifications Other social functions (eye-donation, blood Other social functions (eye-donation, blood

donation etc.)donation etc.)

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Characteristics/Essentials of effective Advertising

oror

Principles of advertising

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Contd..Contd..

According to R.H.BushkrickAccording to R.H.Bushkrick, “, “The main The main principle of effective advertising is that principle of effective advertising is that it reaches the target audience at the it reaches the target audience at the right time with right message & with right time with right message & with right Mediaright Media.”.”

Characteristics are of 3 types -:Characteristics are of 3 types -: Features relating to ConsumerFeatures relating to Consumer Features relating to MessageFeatures relating to Message Features relating to Advertising CopyFeatures relating to Advertising Copy

Page 14: Advertising

Features Relating to ConsumerFeatures Relating to Consumer

1) Know your Target Audience

2) Appropriate Media

3) Repetition in advertising

4) Timeliness

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Features Relating to Message

Understandable Highlight special features of the product Believable Memorable & easy to recall Education Value Motivation Value

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Features Relating to Advertising Features Relating to Advertising CopyCopy

Attract attentionAttract attention Create interestCreate interest

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Scope of Advertising Scope of Advertising Advertising can select an effective media Advertising can select an effective media

with a view to stimulate sales amongst the with a view to stimulate sales amongst the present & present & prospective consumer.present & present & prospective consumer.

Advertising must promote an effective & Advertising must promote an effective & constant support to middlemen, Salesmen, constant support to middlemen, Salesmen, distributers, wholesalers, retailers etc.distributers, wholesalers, retailers etc.

Advertising builds the confidence of the Advertising builds the confidence of the buyers that they have made the best buyers that they have made the best purchase thus building brand loyaltypurchase thus building brand loyalty

An effective advertisement must project an An effective advertisement must project an image in the minds of the people who are image in the minds of the people who are customers of the company’s products.customers of the company’s products.

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Contd..Contd..

It builds confidence in the mind of not It builds confidence in the mind of not only customers but also the shareholders, only customers but also the shareholders, govt., creditors & the general public.govt., creditors & the general public.

Advertising facilitates large scale Advertising facilitates large scale production production

It stimulates research & developmentIt stimulates research & development Increase in level of competitionIncrease in level of competition Helps in winning new customers both in Helps in winning new customers both in

the national as well as in the international the national as well as in the international market.market.

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Groups Involved in Groups Involved in AdvertisingAdvertising

COMPONENTS OF ADVERTISING

1) ADVERTISERS

2) ADVERTISING AGENCIES

3) SUPPORT ORGANISATIONS

4) MASS MEDIA

5) CONSUMER

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ADVERTISERSADVERTISERS It may includes-:It may includes-:1)1) Producers Producers 2)2) RetailersRetailers3)3) WholesalersWholesalers4)4) DistributersDistributers5)5) Govt. Deptt.Govt. Deptt.6)6) IndividualsIndividuals7)7) Politicians etc.Politicians etc. Advertisers may or may not relate to the product Advertisers may or may not relate to the product

or service or an idea of commercial nature.or service or an idea of commercial nature. They can convey any type of message or They can convey any type of message or

information to the selected audience.information to the selected audience.

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ADVERTISING AGENCIESADVERTISING AGENCIES ““Advertising agencies are independent business Advertising agencies are independent business

houses composed of creative & business people houses composed of creative & business people who develop, prepare & place advertising in media who develop, prepare & place advertising in media for clients who are seeking to find customers for for clients who are seeking to find customers for their goods & services.”their goods & services.”

Generally it includes -:Generally it includes -:1)1) Art directorsArt directors2)2) Copy writersCopy writers3)3) Media buyersMedia buyers4)4) Advertising plannersAdvertising planners5)5) Public relation expertsPublic relation experts6)6) Television & radio producersTelevision & radio producers7)7) Specialist in mechanical & reproduction Specialist in mechanical & reproduction

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SUPPORT ORGANISATIONSUPPORT ORGANISATION

There are many support There are many support organisations like-:organisations like-:

1)1) CastingCasting

2)2) CinematographyCinematography

3)3) Film / tape editingFilm / tape editing

4)4) Sound effectsSound effects

5)5) Musical experts etc.Musical experts etc.

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MASS MEDIAMASS MEDIA

The media carries the message from the sender to the The media carries the message from the sender to the audience & where the sender intends to reach.audience & where the sender intends to reach.

Mass media can be classified on the basis of Mass media can be classified on the basis of technology used such as -:technology used such as -:

1)1) Print MediaPrint Media2)2) TelecastingTelecasting3)3) Direct MailDirect Mail4)4) FilmFilm5)5) Paint & PostersPaint & Posters6)6) Sky AdvertisingSky Advertising7)7) Magazines & NewspapersMagazines & NewspapersThe selection of media depends on both the The selection of media depends on both the

advertisers & audiences.advertisers & audiences.

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CONSUMERS / BUYERSCONSUMERS / BUYERS

Consumer seekers can be both Consumer seekers can be both individuals & the organisations individuals & the organisations

Consumer need the information for Consumer need the information for making their decision to buy.making their decision to buy.

They may be in the form of -:They may be in the form of -:1)1) ManufacturersManufacturers2)2) DealersDealers3)3) Service Organisations (Hospitals, schools, Service Organisations (Hospitals, schools,

colleges, churches, clubs, association, colleges, churches, clubs, association, final users etc.)final users etc.)

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CONSUMERS / BUYERSCONSUMERS / BUYERS

They can be further classified into They can be further classified into -:-:

a)a) Prospective BuyersProspective Buyers

b)b) Buyers of other BrandsBuyers of other Brands

c)c) Buyers of our BrandBuyers of our Brand

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Prospective Buyers Prospective Buyers

These are the persons who are These are the persons who are not using the product not using the product

They can be convinced by telling They can be convinced by telling them about the benefits of the them about the benefits of the product & further they can be product & further they can be persuaded by advertising.persuaded by advertising.

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Buyers of other BrandsBuyers of other Brands

These are the persons who are These are the persons who are using the product, but of a using the product, but of a brand that is manufactured by brand that is manufactured by our competitors.our competitors.

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Buyers of our BrandBuyers of our Brand

These are the persons who are using These are the persons who are using the product of advertiser.the product of advertiser.

Different advertising messages are Different advertising messages are used according to the buyer’s -:used according to the buyer’s -:

1)1) Convincing StrategyConvincing Strategy

2)2) Persuasion Strategy Persuasion Strategy

3)3) Efforts to increase their frequency of Efforts to increase their frequency of purchase.purchase.

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Different Types of Different Types of AdvertisingAdvertising

Advertising is the promotion of a company’s products and Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate services but also to build a brand identity and communicate changes or new product /services to the customers.changes or new product /services to the customers.

Advertising has become an essential element of the corporate Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of world and hence the companies allot a considerable amount of revenues as their advertising budget. revenues as their advertising budget.

There are several reasons for advertising some of which are as There are several reasons for advertising some of which are as follows:follows:

Increasing the sales of the product/service Increasing the sales of the product/service Creating and maintaining a brand identity or brand image. Creating and maintaining a brand identity or brand image. Communicating a change in the existing product line. Communicating a change in the existing product line. Introduction of a new product or service. Introduction of a new product or service. Increasing the buzz-value of the brand or the company. Increasing the buzz-value of the brand or the company.

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Print Advertising – Print Advertising – Newspapers, Magazines, Newspapers, Magazines,

Brochures, FliersBrochures, Fliers The print media have always been a The print media have always been a

popular advertising medium. Advertising popular advertising medium. Advertising products via newspapers or magazines is a products via newspapers or magazines is a common practice. common practice.

In addition to this, the print media also In addition to this, the print media also offers options like promotional brochures offers options like promotional brochures and fliers for advertising purposes.and fliers for advertising purposes.

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Advertising Space SellingAdvertising Space Selling

Often the newspapers and the magazines sell the according toOften the newspapers and the magazines sell the according to

The area occupied by the advertisement, the position of The area occupied by the advertisement, the position of the advertisement (front page/middle page)the advertisement (front page/middle page)

The readership of the publications. For instance an The readership of the publications. For instance an advertisement in a relatively new and less popular advertisement in a relatively new and less popular newspaper would cost far less than placing an newspaper would cost far less than placing an advertisement in a popular newspaper with a high advertisement in a popular newspaper with a high readership. The price of print ads also depend on readership. The price of print ads also depend on

The supplement in which they appear, for example an The supplement in which they appear, for example an advertisement in the glossy supplement costs way advertisement in the glossy supplement costs way higher than that in the newspaper supplement which higher than that in the newspaper supplement which uses a mediocre quality paper. uses a mediocre quality paper.

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Outdoor Advertising – Outdoor Advertising – Billboards, Kiosks, Tradeshows Billboards, Kiosks, Tradeshows

and Eventsand Events Outdoor advertisingOutdoor advertising is also a very popular form of advertising, is also a very popular form of advertising,

which makes use of several tools and techniques to attract the which makes use of several tools and techniques to attract the customers outdoors. customers outdoors.

The most common examples of outdoor advertising are The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshowsbillboards, kiosks, and also several events and tradeshows organized by the company.organized by the company.

The The billboard advertisingbillboard advertising is very popular however has to be is very popular however has to be really terse and catchy in order to grab the attention of the really terse and catchy in order to grab the attention of the passers by. passers by.

The kiosks not only provide an easy outlet for the company The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to products but also make for an effective advertising tool to promote the company’s products.promote the company’s products.

Organizing several eventsOrganizing several events or sponsoring them makes for an or sponsoring them makes for an excellent advertising opportunity. excellent advertising opportunity.

The company can organize The company can organize trade fairs, or even exhibitionstrade fairs, or even exhibitions for for advertising their products. If not this, the company can organize advertising their products. If not this, the company can organize several events that are closely associated with their field. For several events that are closely associated with their field. For instance a company that manufactures sports utilities can instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products. sponsor a sports tournament to advertise its products.

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Broadcast advertising – Broadcast advertising – Television, Radio and the Television, Radio and the

InternetInternet Broadcast advertising is a very popular advertising medium that Broadcast advertising is a very popular advertising medium that

constitutes of several branches like television, radio or the constitutes of several branches like television, radio or the Internet. Internet.

Television advertisementsTelevision advertisements have been very popular ever since have been very popular ever since they have been introduced. The cost of television advertising they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be the television channel on which the advertisement is going to be broadcasted. broadcasted.

The The radioradio might have lost its charm owing to the new age media might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the in the fact that many people still remember and enjoy the popular radio jingles. popular radio jingles.

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Covert Advertising – Covert Advertising – Advertising in MoviesAdvertising in Movies

Covert advertising is a unique kind of advertising in Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated which a product or a particular brand is incorporated in some entertainment and media channels like in some entertainment and media channels like movies, television shows or even sports. There is no movies, television shows or even sports. There is no commercial in the entertainment but the brand or commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) the product is subtly( or sometimes evidently) showcased in the entertainment show. Some of the showcased in the entertainment show. Some of the famous examples for this sort of advertising have to famous examples for this sort of advertising have to be the appearance of brand be the appearance of brand NokiaNokia which is displayed which is displayed on on Tom Cruise’s phoneTom Cruise’s phone in the movie in the movie Minority ReportMinority Report, , or the use of or the use of CadillacCadillac cars cars in the movie in the movie Matrix Matrix ReloadedReloaded..

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Surrogate Advertising – Surrogate Advertising – Advertising Indirectly Advertising Indirectly

Surrogate advertising is prominently seen in cases Surrogate advertising is prominently seen in cases where advertising a particular product is banned where advertising a particular product is banned by law. Advertisement for products like cigarettes by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are or alcohol which are injurious to heath are prohibited by law in several countries and hence prohibited by law in several countries and hence these companies have to come up with several these companies have to come up with several other products that might have the same brand other products that might have the same brand name and indirectly remind people of the name and indirectly remind people of the cigarettes or beer bottles of the same brand. cigarettes or beer bottles of the same brand. Common examples include Common examples include Fosters and Kingfisher Fosters and Kingfisher beer brandsbeer brands, which are often seen to promote , which are often seen to promote their brand with the help of surrogate advertising. their brand with the help of surrogate advertising.

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Public Service Advertising – Public Service Advertising – Advertising for Social CausesAdvertising for Social Causes

Public service advertising is a technique that makes use of Public service advertising is a technique that makes use of advertising as an effective communication medium to convey advertising as an effective communication medium to convey socially relevant messaged about important matters and social socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. David integrity, deforestation, illiteracy, poverty and so on. David Oglivy who is considered to be one of the pioneers of Oglivy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly advertising and marketing concepts had reportedly encouraged the use of advertising field for a social cause. encouraged the use of advertising field for a social cause.

Oglivy once said, Oglivy once said, ""Advertising justifies its existence when used Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use in the public interest - it is much too powerful a tool to use solely for commercial purposessolely for commercial purposes.".". .

Today public service advertising has been increasingly used in Today public service advertising has been increasingly used in a non-commercial fashion in several countries across the world a non-commercial fashion in several countries across the world in order to promote various social causes. In USA, the radio in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel. amount of Public service advertisements aired by the channel.

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Celebrity AdvertisingCelebrity Advertising

Although the audience is getting smarter and Although the audience is getting smarter and smarter and the modern day consumer smarter and the modern day consumer getting immune to the exaggerated claims getting immune to the exaggerated claims made in a majority of advertisements, there made in a majority of advertisements, there exist a section of advertisers that still bank exist a section of advertisers that still bank upon celebrities and their popularity for upon celebrities and their popularity for advertising their products. advertising their products.

Using celebrities for advertising involves Using celebrities for advertising involves signing up celebrities for advertising signing up celebrities for advertising campaigns, which consist of all sorts of campaigns, which consist of all sorts of advertising including, television ads or even advertising including, television ads or even print advertisements. print advertisements.

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Banner AdvertisingBanner Advertising E-learning and E-earning have become a regular affair in E-learning and E-earning have become a regular affair in

modern day society. Branding, marketing, sales and even modern day society. Branding, marketing, sales and even recruitment happens online. recruitment happens online.

Banner Advertising is a major component of web-business Banner Advertising is a major component of web-business creation. It is also a very good method for creating revenue via creation. It is also a very good method for creating revenue via your website. your website.

Banner ads, simply put, are just HTML codes in a specific size Banner ads, simply put, are just HTML codes in a specific size and shape (differing from advertiser to advertiser) that present and shape (differing from advertiser to advertiser) that present a small snippet of your product or service on a specific host site. a small snippet of your product or service on a specific host site.

Banner advertising has gained popularity at an increasing rate Banner advertising has gained popularity at an increasing rate over the past few years due to the increasing popularity of over the past few years due to the increasing popularity of Internet as well as the fact that it has more audience and the Internet as well as the fact that it has more audience and the ability to direct a prospective client to their website with just a ability to direct a prospective client to their website with just a click. click.

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Pay Per Click AdvertisingPay Per Click Advertising

Pay per click advertising is an upcoming Pay per click advertising is an upcoming method of advertising. It is a form of method of advertising. It is a form of Internet advertising where the Internet advertising where the advertisers pay the hosts only if their ad advertisers pay the hosts only if their ad is clicked. It is mostly used on search is clicked. It is mostly used on search engines, blogs, content sites and engines, blogs, content sites and advertising networks. Nevertheless, advertising networks. Nevertheless, click on the links below to know more click on the links below to know more about this latest form of advertising. about this latest form of advertising.

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Promotional AdvertisingPromotional Advertising

This form of advertising, called This form of advertising, called promotional advertising ensures promotional advertising ensures that people are wooed into buying that people are wooed into buying a certain product or service. It a certain product or service. It involves some attractive incentives involves some attractive incentives like special sales offers, freebies like special sales offers, freebies and so on. and so on.

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Free AdvertisingFree Advertising

It is a human tendency to grab It is a human tendency to grab anything which is free. Free anything which is free. Free advertising is not an exception. Free advertising is not an exception. Free advertising refers to advertising advertising refers to advertising where the manufacturer or the where the manufacturer or the person who wants publicity for his person who wants publicity for his product or service does not pay product or service does not pay anything. anything.

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Email AdvertisingEmail Advertising

E-mail advertising has gained E-mail advertising has gained momentum at a rapid pace. momentum at a rapid pace.

Email advertising guarantees Email advertising guarantees attention and low investment attention and low investment and well as focused viewing at and well as focused viewing at a later date.a later date.

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Differences between Marketing Differences between Marketing and Advertisingand Advertising

Marketing and Advertising, although they sound like Marketing and Advertising, although they sound like similar terms, in reality they are not. Advertising is similar terms, in reality they are not. Advertising is only a part of the bigger game called Marketing. only a part of the bigger game called Marketing.

Marketing encompasses complete conceptualization Marketing encompasses complete conceptualization of a brand right from research to designing to of a brand right from research to designing to advertising to sale. Advertising, on the other hand is advertising to sale. Advertising, on the other hand is a component of the marketing process which is a component of the marketing process which is nothing but conveying the message through variety nothing but conveying the message through variety of mediums to promote the product.of mediums to promote the product.

Advertising is one of the most important component Advertising is one of the most important component of a marketing strategy and also the most of a marketing strategy and also the most expensive. expensive.

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Radio AdvertisingRadio Advertising

Everybody listens to the radio, some like me Everybody listens to the radio, some like me wake up to it, others have it on at home all wake up to it, others have it on at home all day and the others use it while driving. But day and the others use it while driving. But whatever its use, the point is everybody whatever its use, the point is everybody listens to the radio. This is why people listens to the radio. This is why people consider radio advertising so powerful, its consider radio advertising so powerful, its because it reaches the masses. More and because it reaches the masses. More and more companies are choosing radio more companies are choosing radio advertising because of this and also because advertising because of this and also because it is cost effective and you have the choice of it is cost effective and you have the choice of advertising locally or nation wideadvertising locally or nation wide

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Cheap Cheap – radio ads are cheaper to produce and can reach – radio ads are cheaper to produce and can reach millions of people at the same time. The relative cost millions of people at the same time. The relative cost effectiveness is as compared to television ads, which are so effectiveness is as compared to television ads, which are so much more expensive than any other form of advertising. much more expensive than any other form of advertising.

ImpactImpact – the impact made by a radio ad is greater than the – the impact made by a radio ad is greater than the impact made by any other medium of advertising. This is impact made by any other medium of advertising. This is because radio ads are played at a time that can target a because radio ads are played at a time that can target a particular section of society or the masses. And also particular section of society or the masses. And also because they are repeated every hour or half an hour, so because they are repeated every hour or half an hour, so the impact is maximum. the impact is maximum.

EntertainingEntertaining – leaving television ads aside, radio ads are – leaving television ads aside, radio ads are the most entertaining way of advertising. The print media the most entertaining way of advertising. The print media can get dull and boring, where as the radio allows for can get dull and boring, where as the radio allows for creativity in advertisements. creativity in advertisements.

Cost effectiveCost effective – for those on a budget, radio advertising is – for those on a budget, radio advertising is very cost effective. It is cheaper than television ads and very cost effective. It is cheaper than television ads and more attractive than print. It is the most preferred medium more attractive than print. It is the most preferred medium of advertising for local small businesses. of advertising for local small businesses.

Advantages

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DisadvantagesDisadvantages

Short life spanShort life span – unless it is a very catchy jingle on – unless it is a very catchy jingle on the radio, most people forget about radio ads in a the radio, most people forget about radio ads in a day. This is because most are jingles that last for day. This is because most are jingles that last for 30 seconds and are heard a few times a day and 30 seconds and are heard a few times a day and then they go off the air. The life span of that ad is then they go off the air. The life span of that ad is over and done with and people will just as soon over and done with and people will just as soon forget about the ad and the product or service it forget about the ad and the product or service it was for. was for.

Cost fluctuationCost fluctuation – the problem with radio – the problem with radio advertising is that the cost can fluctuate advertising is that the cost can fluctuate depending on the time slot selecteddepending on the time slot selected. .

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Contd.Contd. Many companies often make mistake of confusing advertising with marketing. They Many companies often make mistake of confusing advertising with marketing. They

try to ape big companies like Coke and Pepsi in advertising but they simply ignore try to ape big companies like Coke and Pepsi in advertising but they simply ignore the work that goes behind that. The classical example of this is, take the case of logo the work that goes behind that. The classical example of this is, take the case of logo for instance. Many business owners are so hysterical about the logo of their company for instance. Many business owners are so hysterical about the logo of their company in their advertisements that they think that it will simply bring in the sales. But what in their advertisements that they think that it will simply bring in the sales. But what makes a logo works is none other than the reputation of the company and the logo makes a logo works is none other than the reputation of the company and the logo must have a feeling to it and should truly reflect company’s values. must have a feeling to it and should truly reflect company’s values.

These companies spend fortunes on advertising which a new start up business can’t. These companies spend fortunes on advertising which a new start up business can’t. Rather than spending unnecessary money on branding your product one should Rather than spending unnecessary money on branding your product one should invest money and time in communicating to the consumers that they can address invest money and time in communicating to the consumers that they can address their expectations. After building reputation and growing to a big size company one their expectations. After building reputation and growing to a big size company one can think of these lavish ideas. Educating the consumers also helps as it will give can think of these lavish ideas. Educating the consumers also helps as it will give them an understanding that you know what you do and are best at doing that. them an understanding that you know what you do and are best at doing that.

Smart marketers are aggressive in approach rather than passive. They provoke Smart marketers are aggressive in approach rather than passive. They provoke reader’s minds by prompting them to do something rather than just making them reader’s minds by prompting them to do something rather than just making them knowledgeable of the product. knowledgeable of the product.

Smart marketers also bring home the names, addresses and contact numbers of Smart marketers also bring home the names, addresses and contact numbers of people who are really interested in hiring your company by employing aggressive people who are really interested in hiring your company by employing aggressive marketing. Thus having a good marketing campaign speaks a lot about the company marketing. Thus having a good marketing campaign speaks a lot about the company and their products and advertising gives that finishing touch to the hard work done and their products and advertising gives that finishing touch to the hard work done by the marketing people in selling a product.by the marketing people in selling a product.

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NATURE OF PRODUCTSNATURE OF PRODUCTS

Business ProductsBusiness Products- These products are often customized to the - These products are often customized to the

buyer’s specifications and are not suited for mass buyer’s specifications and are not suited for mass communication.communication.

- Producers largely rely on personal selling or - Producers largely rely on personal selling or advertising would be limited to Trade media only.advertising would be limited to Trade media only.

Consumer’s ProductsConsumer’s Products They are further divided into They are further divided into

Convenience ,Shopping, Specialty and Convenience ,Shopping, Specialty and Unsought products.Unsought products.

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Consumer ProductsConsumer Products

Convenience products-Convenience products- ( (consumer’s consumer’s purchase frequentlypurchase frequently) Rely heavily on mass ) Rely heavily on mass media supported by sales promotion.media supported by sales promotion.

Specialty products-Specialty products- ( (Very high end lifestyle Very high end lifestyle or luxury products related to consumer’s or luxury products related to consumer’s hobbyhobby))

They will use advertising very selectively They will use advertising very selectively through targeted media ,locations and through targeted media ,locations and ambience plays a major role in communicating ambience plays a major role in communicating & sales promotion finds no place . & sales promotion finds no place .

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Contd..Contd..

Unsought goods-Unsought goods-( ( Those products that Those products that we are aware of ,usually postpone buying we are aware of ,usually postpone buying as they are not priority enough or as they are not priority enough or because they may cause some discomfort because they may cause some discomfort ex medical checkup, home ex medical checkup, home security ,helmets etc security ,helmets etc ) )

Rely heavily on personal selling Rely heavily on personal selling supported by highly persuasive supported by highly persuasive advertising to trigger the need advertising to trigger the need recognition by the consumer.recognition by the consumer.

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TARGET MARKETTARGET MARKET

Communication strategy is to build long term Communication strategy is to build long term profitable relationships.profitable relationships.

Very Very targeted targeted andand informativeinformative advertising and advertising and selective distributions works best for such selective distributions works best for such products.products.

WebsiteWebsite is also a very is also a very key elementkey element of the of the communication mix for such products.communication mix for such products.

A A convenience productconvenience product targeted at the rural targeted at the rural markets , would require markets , would require extensive consumer extensive consumer educationeducation..

Advertising along with personal sellingAdvertising along with personal selling become become key elementskey elements of a communication. of a communication.

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TYPE OF BUYING DECISIONTYPE OF BUYING DECISION For For Routine buying decisionsRoutine buying decisions ,the communication ,the communication

strategy is to maintain brand recall. strategy is to maintain brand recall. Like Like toothpastes & detergentstoothpastes & detergents etc. etc.Require-:Require-: Reminder Advertising Reminder Advertising Consumer sales promotionsConsumer sales promotions Trade promotions Trade promotions

For more For more Complex buying decisionsComplex buying decisions, the communication , the communication strategy is to give extensive information & assisting strategy is to give extensive information & assisting the buyer indecision making. the buyer indecision making.

Like Like cars & homecars & home etc. etc.Require-:Require-: Personal sellingPersonal selling AdvertisingAdvertising

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PUSH AND PULL STRATEGYPUSH AND PULL STRATEGY

Firms that use Firms that use aggressive personal selling aggressive personal selling and promotionsand promotions directed to the distribution directed to the distribution channels ,try to channels ,try to increase inventory levelsincrease inventory levels throughout the distribution channel.throughout the distribution channel.

Because of the Because of the increased stock increased stock pressurepressure ,retailers try to “ ,retailers try to “ push push ” their ” their products through the channel to end products through the channel to end consumers.consumers.

This is known as “ This is known as “ PUSH PUSH ” strategy.” strategy.

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CONTD..CONTD.. Stimulates consumer demand by using Stimulates consumer demand by using

advertising and promotionsadvertising and promotions directed to the directed to the consumers.consumers.

As consumers begin demanding the As consumers begin demanding the product ,retailers , confronted with rising product ,retailers , confronted with rising demand ,increase their inventory levels of the demand ,increase their inventory levels of the products .products .

Consumer demand Consumer demand ““PULL”PULL” the product the product through the retail channel.through the retail channel.

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CONTD..CONTD..

Rarely does a company use Rarely does a company use “PULL”“PULL” or or “PUSH”“PUSH” Strategy exclusively.Strategy exclusively.Example Example -: Consumer Durables like Air -: Consumer Durables like Air

conditioners , televisions etc in festive seasonconditioners , televisions etc in festive season Consumer promotion’s Consumer promotion’s PULL PULL a product through a product through

the channel by creating the demand .the channel by creating the demand . Trade promotions Trade promotions PUSH PUSH a product through the a product through the

channel by motivating the channel members channel by motivating the channel members to sell more of a particular brand.to sell more of a particular brand.

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Social AspectsSocial Aspectsof of

AdvertisingAdvertising

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SOCIAL ASPECT SOCIAL ASPECT

Social aspect stands for all those activities Social aspect stands for all those activities that are carried out to achieve the aims of that are carried out to achieve the aims of individual & group members of a society.individual & group members of a society.

Activities are -:Activities are -:EconomicEconomicPoliticalPoliticalEducational Educational ReligiousReligiousCulturalCulturalSocialSocial

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SOCIAL ASPECT OF SOCIAL ASPECT OF ADVERTISEMENTADVERTISEMENT

Advertising is a pervasive activityAdvertising is a pervasive activity Advertisement plays an imp role Advertisement plays an imp role

for purchasing a service or productfor purchasing a service or product Advertisement raises our standard Advertisement raises our standard

of living as it affects our of living as it affects our consumption patterns.consumption patterns.

Advertisement is also a great Advertisement is also a great multiplier of national incomemultiplier of national income

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SOCIAL ASPECT OF ADVERTISEMENTSOCIAL ASPECT OF ADVERTISEMENT

Advertising completes a business Advertising completes a business cyclecycle

It always raises & regularize demandIt always raises & regularize demand Its role & responsibility increases as Its role & responsibility increases as

the product growsthe product grows It properly educate the members of It properly educate the members of

the society.the society. No business is possible without No business is possible without

advertisement.advertisement.

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1. Is advertising an useful 1. Is advertising an useful activityactivity

Usefulness implies utility Utility is the value added to a thing or a

good Value is the intangible or psychological

phenomenon that is subjective. Usefulness of an activity depends upon

how a person perceives advertising. It is an useful activity because it creates

utility

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Contd..Contd..

Utilities created by advertising are -:1) Usual 2) Unusual

Usual utility -: Form, Place, time & possession utility

Form utility -: It is created when it informs the availability of latest model.

Place utility -: It is created when informs the complete idea on where the goods & services are available.

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Contd..Contd..

Time utilityTime utility -: -: It is created when it make clear It is created when it make clear about the arrival time or availability time.about the arrival time or availability time.

Possession utilityPossession utility -: -: It is there if ad tell you about It is there if ad tell you about how to acquire the good or service.how to acquire the good or service.

Unusual UtilityUnusual Utility -: -: Perception UtilityPerception Utility

Perception utility -:Perception utility -: It is created when the It is created when the advertiser modifies his perception of goods & advertiser modifies his perception of goods & services. services.

Advertising adds value as these changes in Advertising adds value as these changes in perception make product or services more perception make product or services more desirable.desirable.

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2. Does advertising influence the 2. Does advertising influence the consumer pricesconsumer prices

Price is the monetary value paid by the Price is the monetary value paid by the consumers for a product or a unit of service.consumers for a product or a unit of service.

Price includes -:Price includes -: Cost of ProductionCost of Production Cost of Distribution (Cost of Distribution (AdvertisingAdvertising)) Reasonable amount of profitReasonable amount of profit Rise in advertising cost should lead to rise Rise in advertising cost should lead to rise

price of a product or a service.price of a product or a service.

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Contd..Contd..

The actual effects Advertising expenses tend to increase

the consumer prices as cost of product is jacked up by the amount of advertising.

Consumers will have to pay higher prices for the advertised product or services.

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Contd..Contd..

Advertising costs are part of distribution costs

Advertising costs may be creative or competitive

Creative advertising do not increase prices materially.

Competitive advertising cost is the battle fought by producers at the cost of consumers.

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Contd..Contd.. Consumer brand patronage leads to price rise Preference of branded products make people

responsible for rise in consumer prices as they patronise a particular brand or a product.

Such brand or company image is the outcome of aggressive advertising.

Brand advertising creates consumer preferences, divides the market to special class of customers & that class made to bear the cost brand preferance.

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Contd..Contd..

Effective advertising reduces prices Per unit distribution cost comes down

because it supplements the other means of promotion like personal selling, publicity & sales promotion etc.

In these cases consumers are benefited in the form of lower prices.

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3. Is Advertising have any 3. Is Advertising have any bearing on consumer choicebearing on consumer choice

In past selling or production concept In past selling or production concept was popular, that is called seller’s was popular, that is called seller’s market.market.

Now a days marketing concept is Now a days marketing concept is widely used.widely used.

Marketing nowadays is consumer Marketing nowadays is consumer oriented where his likes, dislikes, oriented where his likes, dislikes, preferences, attitudes, opinions have preferences, attitudes, opinions have respect in the producers mind.respect in the producers mind.

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Contd..Contd..

Consumer response in market is Consumer response in market is free & voluntary.free & voluntary.

Customer is a king. Customer is a king.

Two significant implications are there -:Two significant implications are there -:

1)1) He has fundamental freedom to He has fundamental freedom to spend his disposable income.spend his disposable income.

2)2) Full freedom to choose again from Full freedom to choose again from the available products.the available products.

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4. Is Advertising too much 4. Is Advertising too much persuasivepersuasive

According to Prof. Frank Knight According to Prof. Frank Knight “Consumer response to advertising is “Consumer response to advertising is purely voluntary.”purely voluntary.”

Consumer has the choice to accept or Consumer has the choice to accept or reject the appeal of the message.reject the appeal of the message.

Time lag is there between the release Time lag is there between the release an advertising & the buying action on an advertising & the buying action on the part of consumer.the part of consumer.

Contradictory advertising is the Contradictory advertising is the greatest skill of persuasion.greatest skill of persuasion.

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Contd..Contd..

It appeals to our emotions rather It appeals to our emotions rather than reason.than reason.

Prime function is not only informing Prime function is not only informing but also creating an interest.but also creating an interest.

Making one bound to feel disturbed Making one bound to feel disturbed for a temporary period for not for a temporary period for not possessing a product.possessing a product.

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5. Does advertising influence the 5. Does advertising influence the consumer welfare & protectionconsumer welfare & protection In practical world, consumer is a In practical world, consumer is a

‘slave’ & not the ‘king’ of modern ‘slave’ & not the ‘king’ of modern mechanism of socio-economic forces.mechanism of socio-economic forces.

Two concepts are there namely -: ““CONSUMER WELFARE”CONSUMER WELFARE” ““CONSUMER PROTECTION”CONSUMER PROTECTION”

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““CONSUMER WELFARE & CONSUMER WELFARE & ADVERTISING”ADVERTISING”

This concept is concerned with the This concept is concerned with the good of consumers & their legitimate good of consumers & their legitimate interests.interests.

Consumer Welfare lies in -:

1)1) Fulfillment of their normal expectationsFulfillment of their normal expectations

2)2) The aspirations from the goods or The aspirations from the goods or servicesservices

Govt. tried to protect consumer welfare Govt. tried to protect consumer welfare through acts & laws.through acts & laws.

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Contd..Contd..

The real masters of advertising are the The real masters of advertising are the final users.final users.

Advertising is the servant of consumers& it Advertising is the servant of consumers& it is expected to server the interests of is expected to server the interests of masters to the last rupee paid for .masters to the last rupee paid for .

Advertising should ethically -: Inform the arrival of productInform the arrival of product Improves consumer knowledgeImproves consumer knowledge Persuade consumers to change their Persuade consumers to change their

mindsminds

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““CONSUMER PROTECTION & CONSUMER PROTECTION & ADVERTISING”ADVERTISING”

Protecting the consumers against all Protecting the consumers against all the ills & try to get worth to his the ills & try to get worth to his money.money.

Consumer is getting exploited & Consumer is getting exploited & harassed by the malfunctioning of harassed by the malfunctioning of manufacturers & dealers.manufacturers & dealers.

Sometimes basic information Sometimes basic information regarding the product offered is regarding the product offered is misleading and confusing.misleading and confusing.

Consumer is feeling cheated.Consumer is feeling cheated.

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Contd..Contd..

Govt. Regulation

1) Objectionable Advertising Act.(1954)

2) Consumer Protection Act. (1986)

Two ways to stop this -:

Self Regulation

1) Consumer Guidance society of india , Mumbai

2) Consumer Action Forum, Kolkata

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6.Does advertising affect Standard 6.Does advertising affect Standard of Living of Societyof Living of Society

Standard of living refers to the set of Standard of living refers to the set of goods & services used by the people goods & services used by the people according to their lifestyle.according to their lifestyle.

The standard of living of a community The standard of living of a community depends on two basic factorsdepends on two basic factors

1)1) The ability to produce more & more The ability to produce more & more goods & services at least cost but of goods & services at least cost but of better quality.better quality.

2)2) The purchasing power of the consumers.The purchasing power of the consumers.

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Contd..Contd..

Advertising influence the consumers to Advertising influence the consumers to goods & services beyond the bare goods & services beyond the bare requirements of food, clothing & shelter.requirements of food, clothing & shelter.

Advertising inform regarding existing & Advertising inform regarding existing & the new product or services & make the new product or services & make them available to all income groups.them available to all income groups.

The useful information & persuasion of The useful information & persuasion of any advertising will keep the propensity any advertising will keep the propensity to consume at high level.to consume at high level.

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Contd..Contd..

Thus, the standard of living is Thus, the standard of living is favorably influenced by the world of favorably influenced by the world of advertising industry.advertising industry.

It makes people optimistic, desirous, It makes people optimistic, desirous, hardworking to meet their hardworking to meet their aspirations, to be distinctive from aspirations, to be distinctive from others.others.

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7. Does advertising affect cultural 7. Does advertising affect cultural values of societyvalues of society

“Culture is a distinctive way of life of a group of people- their complete way of living”

Habits, Customs, Attitudes, beliefs, values & taboos are the part of culture.

Habits – Act of Repetition Customs – Habit followed by many people Attitude – State of readiness Belief – Subjective concept of truth Values – Desirable condition or state if affairs. Taboo – Powerful negative accepted & enforced

by the members of a group.

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Contd..Contd..

Advertising is a product of culture - Advertising can Advertising can only persuade but it is not an ultimate power to sell only persuade but it is not an ultimate power to sell anything.anything.

Advertising shape cultural values – Advertising bring Advertising bring all those goods & services w.r.t. prevailing system.all those goods & services w.r.t. prevailing system.

With this necessities of past would vanish Comforts become necessities Luxuries become comforts & even necessities

Advertising reflect cultural values – Advertising is Advertising is sometimes against esteemed values or norms of an sometimes against esteemed values or norms of an acceptable culture.acceptable culture.

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8. Are there Ethics & Truth in 8. Are there Ethics & Truth in AdvertisingAdvertising

Ethics -:Ethics -: It is a branch of It is a branch of ‘Social ‘Social Science’Science’ which is a set of moral which is a set of moral principles, norms & values.principles, norms & values.

Truth -:Truth -: Conformity to an original or Conformity to an original or standard. standard.

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““Ethics in AdvertisingEthics in Advertising””

Advertising gets aggressive due to Advertising gets aggressive due to cut throat competition.cut throat competition.

Sometimes Advertisers use unethical Sometimes Advertisers use unethical practices to increase the sales & practices to increase the sales & share in the market.share in the market.

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““Truth in AdvertisingTruth in Advertising””

The effectiveness of advertising The effectiveness of advertising vanishes if people begin to believe vanishes if people begin to believe that advertisings are false or designed that advertisings are false or designed to fool them.to fool them.

Nowadays advertisers are discounting Nowadays advertisers are discounting truths to succeed in the art of making truths to succeed in the art of making multiplied sales & profits.multiplied sales & profits.

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8. Does Advertising provide 8. Does Advertising provide enough Informationenough Information

Consumers have right to get such information regarding product features, benefits, time & place.

Sometimes advertisers give scanty information which has been misleading.

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Positive Aspects of Positive Aspects of AdvertisingAdvertising

It reduces cost of product or service It guides consumers It adds value to products or services It encourages Competition It generates gainful Employment It supports, Transmits & Transforms

the culture It stimulates Thought & Action

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Economic AspectsEconomic Aspectsof of

AdvertisingAdvertising

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1. Effects of Advertising on 1. Effects of Advertising on CostsCosts

Advertising is affecting the economic Advertising is affecting the economic aspects in different ways as it affects aspects in different ways as it affects -:-:

a)a) Production costsProduction costs

b)b) Distribution costsDistribution costs

c)c) Consumer costsConsumer costs

There are contradictory statements for There are contradictory statements for the affects of advertising as it affects the affects of advertising as it affects both positively & negatively.both positively & negatively.

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““Effect on Production costsEffect on Production costs””

Due to aggressive advertisements demand for some particular products or services increase leading to higher production

i.e. making optimum use of plant capacity.

When the production is high, cost per unit will reduce.

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““Effect on Distribution Effect on Distribution costscosts””

Due to mass advertisements in highly professional way increases the demand for some particular products or services leading to decrease the selling & distribution costs.

Advertisement acts as an important tool in informing maximum no. of people very quickly.

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““Effect on Consumer PricesEffect on Consumer Prices””

The effect of advertising on selling price may be only short-term as with the passage of time

Due to aggressive but professional advertisement selling prices will reduce due to large scale selling & economics of large scale production & distribution .

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2. 2. Advertising & Monopoly conditions

““High & quality based frequent High & quality based frequent advertisement decreases the level of advertisement decreases the level of competition & creates conditions for competition & creates conditions for monopoly” opinion of monopoly” opinion of Experts & Economists Experts & Economists

Advertisements convert Advertisements convert desires into needsdesires into needs for a particular product or service leading to for a particular product or service leading to compulsive purchase of particular product compulsive purchase of particular product or service.or service.

It leads to creation of monopolies in long-It leads to creation of monopolies in long-term.term.

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3. Effect on Expanding Consumer 3. Effect on Expanding Consumer MarketsMarkets

Consumer Markets Expand when -:Consumer Markets Expand when -:1)1) More & more people go in for a More & more people go in for a

commodity than before.commodity than before.2)2) The existing class of consumers The existing class of consumers

increase their individual purchases.increase their individual purchases.3)3) The manufacturers discover new The manufacturers discover new

markets for their products.markets for their products. ““Advertisements are affecting

favorably the consumption patterns of consumers.”.”

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3. Impact on National Income3. Impact on National Income

By increasing sales & production of By increasing sales & production of goods & services advertising has goods & services advertising has multiplied the national income.multiplied the national income.

It also affects in a negative way It also affects in a negative way during boom & slump period.during boom & slump period.

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Five Ms of Advertising

Advertisers have to make 5 major decisions in Advertisers have to make 5 major decisions in developing an advertising programme -:developing an advertising programme -:

MissionMission – –Sales goals, advertising objectivesSales goals, advertising objectives MoneyMoney – –Stage in PLC, Mkt. share, frequencyStage in PLC, Mkt. share, frequency MessageMessage – –generation, evaluation, executiongeneration, evaluation, execution MediaMedia ––reach, media type, timing, geographicallyreach, media type, timing, geographically MeasurementMeasurement – –communication & sales impactcommunication & sales impact

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STAGES IN PLCSTAGES IN PLC

Introduction Stage-Introduction Stage-:: Basic goal of communication is to create awareness & Basic goal of communication is to create awareness &

knowledge about the product.knowledge about the product.Growth Stage-:Growth Stage-: The communication changes as the objectives change. The communication changes as the objectives change. Major objective is now to build brand preference.Major objective is now to build brand preference.Maturity Stage-:Maturity Stage-: Marked by slow market rates & intense competition.Marked by slow market rates & intense competition. Emphasizing mainly on campaigns to remind customers.Emphasizing mainly on campaigns to remind customers.Decline Stage-:Decline Stage-: All communication expenditure is cut back.All communication expenditure is cut back. Some personal selling & sale and trade promotions efforts Some personal selling & sale and trade promotions efforts

would be maintained.would be maintained.

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Informative AdvertisingInformative Advertising

It is done heavily in pioneering stage It is done heavily in pioneering stage of a product categoryof a product category

Here the objective is to build primary Here the objective is to build primary demanddemand

Inform consumers about the benefits Inform consumers about the benefits of a product.of a product.

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Persuasive AdvertisingPersuasive Advertising

It becomes important in competitive It becomes important in competitive stage, where a company’s objective is stage, where a company’s objective is to build selective demand for a to build selective demand for a particular brand.particular brand.

It seeks to build brand preference.It seeks to build brand preference. Encouraging switching to the brandEncouraging switching to the brand Changing buyers perception of product Changing buyers perception of product

attributesattributes Comparative advertisement is also Comparative advertisement is also

done .done .

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Reminder AdvertisingReminder Advertising

It is highly important with mature It is highly important with mature products.products.

Related advertising is also called Related advertising is also called reinforcement advertisingreinforcement advertising

It also seeks to assure current It also seeks to assure current purchasers that they have made the purchasers that they have made the right choice.right choice.

It is reminding customers that the It is reminding customers that the product may be needed in near future product may be needed in near future

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PLC & PromotionPLC & PromotionDEVELOPMENT INTRODUCTION GROWTH MATURITY DECLINE

PROMOTIONAL OBJECTIVES

GENERATE AWARENESS

MOTIVATE INNOVATORS ADOPTION

IMPROVE AWARENESS

PROMOTE TRIAL ADOPTION

PENETRATE THE MARKET

BRAND PREFERENCE

CONSOLIDATE DISTRIBUTION

IMPROVE AWARENESS

MAINTAIN BRAND PREFERENCE

PROMOTE NEW APPLICATIONS

CONSOLIDATE DISTRIBUTION

PHASE OUT THE PRODUCT PROFITABILITY

PROMOTIONAL ACTIVITY

PUBLIC RELATIONS

INTRODUCTRY ADVERTISEMENT

PRIMARY ADVERTISING’

SALES PROMOTION FOR CONSUMERS, DEALERS

PERSONAL SELLING

BRAND ADVERTISING

SALES PROMOTION

PERSONAL SELLING

BRAND ADVERTISING

LESS SALES PROMOTION

SALES PROMOTION FOR / OF DEALERS

ADs PHASED OUT

SALES PROMOTION PHASED OUT

SALES PROMOTION FOR DEALERS PHASED OUT

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ADVERTISING AS A

COMMUNICATION PROCESS

Page 104: Advertising

COMMUNICATIONCOMMUNICATION

According to Edwin Brown FlippoAccording to Edwin Brown Flippo “Communication is the act of “Communication is the act of inducing others to interpret an idea inducing others to interpret an idea in the manner intended by the in the manner intended by the speaker or writer.”speaker or writer.”

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Marketing CommunicationMarketing Communication

“ “Marketing Communication are the means Marketing Communication are the means by which firms attempt to inform , persuade by which firms attempt to inform , persuade and remind its target markets, using both and remind its target markets, using both direct and indirect means , about the direct and indirect means , about the brands they sell as well as about the brands they sell as well as about the company as a whole.”company as a whole.”

Marketing communication supports the Marketing communication supports the marketing plan and helps the targeted marketing plan and helps the targeted audience to understand and believe in the audience to understand and believe in the advantage of the marketer's offer over advantage of the marketer's offer over competition.competition.

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Objectives of Marketing Communication

To inform the target audience about changes in marketing-mix.

To remind the potential customers of the product.To build brand preferenceTo overcome dissonance/dissatisfaction of customers.To create demand to the product.To attract dealers/middlemenTo face competition & neutralise the effect or

competitors promotional efforts.To maintain coordination among different groups of

people working in the business.To develop better relations between mgt. & staff & to

increase morale of employees.To convey the required information to the market

intermediaries.

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STEPS IN EFFECTIVE COMMUNICATION

STEP-1 -:Identifying the Target Audience STEP-2 -:Determining the communication

ObjectivesSTEP-3 -:Designing the MessageSTEP-4 -:Deciding the Communication BudgetSTEP-5 -:Deciding the appropriate Communication

MixSTEP-6 -:Deciding the Channel (MEDIA)STEP-7 -:Transmitting MessageSTEP-8 -:Measuring the Results

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Barriers in Marketing Barriers in Marketing CommunicationCommunication

““ These barriers lessen the impact of advertising. These barriers lessen the impact of advertising. Miscommunication can be the outcome of these Miscommunication can be the outcome of these noisesnoises.”.”

1)1) Wrong Designing of MessageWrong Designing of Message2)2) Wrong Encoding of MessageWrong Encoding of Message3)3) Selection of inappropriate MediaSelection of inappropriate Media4)4) Wrong media schedulingWrong media scheduling5)5) Wrong decoding of messageWrong decoding of message6)6) Media ClutterMedia Clutter7)7) Lengthy MessageLengthy Message8)8) Use of Technical or Multiple Meaning messageUse of Technical or Multiple Meaning message9)9) Disturbance in MediaDisturbance in Media10)10) Wrong AssumptionsWrong Assumptions11)11) Busyness of ReceiverBusyness of Receiver

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Making an Effective Making an Effective CommunicationCommunication

1)1) Clarity of MessageClarity of Message2)2) Appropriate LanguageAppropriate Language3)3) Simple EncodingSimple Encoding4)4) Selection of appropriate communication Selection of appropriate communication

componentscomponents5)5) Appropriate MediaAppropriate Media6)6) Appropriate time of communicationAppropriate time of communication7)7) Repetition of MessageRepetition of Message8)8) Consistency of MessageConsistency of Message9)9) Regular FeedbackRegular Feedback

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The Communication ProcessThe Communication Process

SENDERENCODING THE MESSAGE

MESSAGECHANNEL

DECODING THEMESSAGE

RECIEVER

FEEDBACK

CHANNEL

NOISE

• Marketing Manager

• Advertising manager

• Advertising Agency

• Customers

• Viewers• Listeners• News

Media• Clients

• Advertisement

• Sales Presentation

• Store Display

• Coupon• Press

Release

• Media• Salesper

son• Retail

Store• Local

News

• Receiver

Interpretation of message

• Other Advertisements

• News Articles• Other store

displays

• Market Research• Sales result• Change in market

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SENDERSENDERFirms are both senders and receivers of Firms are both senders and receivers of

messages :-messages :- As senders, marketers attempt to As senders, marketers attempt to

inform ,persuade and remind the target inform ,persuade and remind the target marketers about the company and its marketers about the company and its products.products.

As receivers , they must attune themselves to As receivers , they must attune themselves to the responses and feedback ;they get from the responses and feedback ;they get from target markets , and adapt their target markets , and adapt their communications programs .communications programs .lack of response is lack of response is also a feedback.also a feedback.

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ENCODINGENCODING Encoding is the conversion of these Encoding is the conversion of these

ideas into a clear message.ideas into a clear message. Encoding involves words , symbols, Encoding involves words , symbols,

feelings, colors, sounds ,smells etc.feelings, colors, sounds ,smells etc. ““A cardinal rule of communication is A cardinal rule of communication is

non verbal and effective non verbal and effective communication is that , which appeals communication is that , which appeals to all the five sensesto all the five senses.”.”

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MESSAGE CHANNELMESSAGE CHANNEL Transmission of the messages require a channel –

radio , store display ,product demonstrations ,and film etc.

These channels are the media tools available to the marketer.

A marketer must select media which is most appropriate to the message.

Now a days for marketer every contact that a customer has with a product is a media channel.

Marketing plans must consider every “touch point” of the company or the brand with the customer.

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NOISENOISE The receiver, in this target market , is said to have

received the message when the message enters his frame of reference.

Numbers of factors can interfere with the reception of the message , and the target market may not even notice the message being transmitted known as Media Noise or Media Clutter .

These can be Competing Advertisements ,the physical surroundings , light ,climate etc

From Customers side his own emotional state , moods ,physical discomfort can prevent a message from being received.

Marketers do not have much control on these factors , they can select media channels ,spots , timings when the reception is likely to be at the best.

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DECODINGDECODING The target market will decode the message received as per their The target market will decode the message received as per their

understanding the communication-: understanding the communication-: Decoding is the interpretation of the Decoding is the interpretation of the

language ,tone ,symbols , colors and feelings of the language ,tone ,symbols , colors and feelings of the message.message.

Even though the message is received ,the consumer Even though the message is received ,the consumer will interpret the messages per his own understanding will interpret the messages per his own understanding ,knowledge and needs.,knowledge and needs.

Factors like age ,gender ,social class ,culture ,values , Factors like age ,gender ,social class ,culture ,values , attitudes , beliefs all greatly affect how messages are attitudes , beliefs all greatly affect how messages are interpreted. interpreted.

Marketers must pay great attention to understanding Marketers must pay great attention to understanding the consumer’s frame of reference to ensure that the consumer’s frame of reference to ensure that there is proper match between the encoding of the there is proper match between the encoding of the message and the target markets attitudes and ideas . message and the target markets attitudes and ideas .

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Contd..Contd..

In interpersonal communication ,the receivers response In interpersonal communication ,the receivers response to the message is the direct feedback to the sender.to the message is the direct feedback to the sender.

Marketing communication is largely impersonal ,hence Marketing communication is largely impersonal ,hence feedback would also be largely indirect .feedback would also be largely indirect .

The indirect factors that marketers try to measure The indirect factors that marketers try to measure are :are :

1.1. Number of people who saw the communication Number of people who saw the communication compared to the number of people exposed to the compared to the number of people exposed to the communication.communication.

2.2. Recognition and recall of the communication.Recognition and recall of the communication.3.3. Brand awareness and Brand recall levels.Brand awareness and Brand recall levels.4.4. Purchase Intention.Purchase Intention.

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Advertising as a tool of Advertising as a tool of CommunicationCommunication

Communication Process-:Communication Process-: There is a transmission of message from sender to the There is a transmission of message from sender to the

receiver.receiver. The end result of the communication process is the The end result of the communication process is the

understanding of a messageunderstanding of a message The message is transmitted through media or certain The message is transmitted through media or certain

channels.channels. The response to the message is known by receiving the The response to the message is known by receiving the

feedback from the recipient of the communication.feedback from the recipient of the communication. The communication sometimes fails to accomplish its The communication sometimes fails to accomplish its

purpose – the message is distorted by ‘noise’ elementspurpose – the message is distorted by ‘noise’ elements ..

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Contd.Contd.

The message must accomplish these The message must accomplish these tasks in order to be effective-:tasks in order to be effective-:

It must gain the attention of the receiverIt must gain the attention of the receiver It must be understood .It must be understood . It must stimulate the needs of the receiver It must stimulate the needs of the receiver

and suggest appropriate method to satisfy and suggest appropriate method to satisfy these needs.these needs.

Senders must be aware of the receivers or Senders must be aware of the receivers or audiences they want to reach and the audiences they want to reach and the responses they want.responses they want.

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Integrated Marketing Integrated Marketing Communication (IMC)Communication (IMC)

““Integrated marketing Integrated marketing communication is the careful communication is the careful coordination of all communication coordination of all communication messages for a product or service to messages for a product or service to ensure the consistency of messages ensure the consistency of messages at every contact point where a at every contact point where a customer meets the consumer.”customer meets the consumer.”

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Contd.Contd.

The key pillars of a firm’s The key pillars of a firm’s communication plan are: communication plan are:

1)1) The target market (consumers or The target market (consumers or stakeholders) for whom the message is stakeholders) for whom the message is intended .intended .

2)2) The communication objectives of the The communication objectives of the campaign.campaign.

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Optimal Mix of Media ToolsOptimal Mix of Media Tools

Overall Marketing Objectives

Marketing Mix• Product• Place• Promotion• Price

Target Market

Promotional Mix

AdvertisingPublic RelationsSales PromotionsPersonal Selling

Promotion Plan

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Objectives of IMCObjectives of IMC

Key objectives of any communication Key objectives of any communication by a firm , to any target market or by a firm , to any target market or stakeholders are essentially -:stakeholders are essentially -:

Inform Inform Persuade Persuade Remind.Remind.

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InformInform Firms need to inform their target markets about a Firms need to inform their target markets about a

number of things-:number of things-:1.1. New Product concept , New brand Launch, a new New Product concept , New brand Launch, a new

model ,a new pack size or even a new feature or model ,a new pack size or even a new feature or benefit.benefit.

2.2. The brands differential advantage over its competitors.The brands differential advantage over its competitors.3.3. Outlets where the brands are available in the city, or Outlets where the brands are available in the city, or

the opening of a new outlet in the city or region.the opening of a new outlet in the city or region.4.4. A new offer or deal or pricing being offered to the A new offer or deal or pricing being offered to the

market.market.5.5. Explain how the product works and the utility of the Explain how the product works and the utility of the

product.product.6.6. Suggest new uses of the productSuggest new uses of the product7.7. A new packaging design or packaging change.A new packaging design or packaging change.8.8. New technologies that a company has developed or New technologies that a company has developed or

acquired acquired

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PersuadingPersuading

It can also mean a number of things It can also mean a number of things specifically -:specifically -:

1.1. Stimulate purchase by keeping the brand Stimulate purchase by keeping the brand in the consideration set.in the consideration set.

2.2. Persuade consumers to buy nowPersuade consumers to buy now

3.3. Encourage switching from competitor , by Encourage switching from competitor , by giving the consumer a clear reason why.giving the consumer a clear reason why.

4.4. Persuade the consumer to stay loyal to Persuade the consumer to stay loyal to the company’s brand.the company’s brand.

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ReminderReminder

It is a very important element of a firms It is a very important element of a firms communication plan .Consumers need to communication plan .Consumers need to be reminded about a number of things-:be reminded about a number of things-:

1.1. Maintaining brand awareness and brand Maintaining brand awareness and brand recall .recall .

2.2. That a product will be needed in near That a product will be needed in near future true for seasonal products like cold future true for seasonal products like cold drinks ,fans ,ice-creams etc . drinks ,fans ,ice-creams etc .

3.3. Remind consumers of occasions of useRemind consumers of occasions of use

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Marketing Communication Marketing Communication MixMix

“ “ The The communication mixcommunication mix consists of consists of a set of a set of communication toolscommunication tools ,which ,which marketers use to communicate with marketers use to communicate with their their target markets.target markets. ””

TheThe elements elements of the mix differ in of the mix differ in theirtheir ability to influence ability to influence and and affect affect target marketstarget markets . .

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PackagingPackaging

AdvertisingAdvertising

Public Relations

Public Relations

Point-of-Sale

Point-of-Sale

PersonalSelling

PersonalSelling

DirectMarketing

DirectMarketing

Sales Promotion

Sales Promotion

How the Marketer May Communicate With

Target Markets.

How the Marketer May Communicate With

Target Markets.

Marketing Communication Marketing Communication MixMix

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Marketing CommunicationMarketing Communication

AdvertisingAdvertising– Has a greater ability to reach a larger number of people Has a greater ability to reach a larger number of people

simultaneously.simultaneously.– It is therefore known as the mass communication It is therefore known as the mass communication

element of the communication mix . Due to this cost-element of the communication mix . Due to this cost-per-contact is very low. per-contact is very low.

– Has less ability to prompt an immediate change in Has less ability to prompt an immediate change in behavior.behavior.

– Can communicate the unique benefits of the product Can communicate the unique benefits of the product and its differential advantage over competitors.and its differential advantage over competitors.

– It positions the brand at the desired slot in the It positions the brand at the desired slot in the consumers mind consumers mind

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Marketing CommunicationMarketing Communication

Sales PromotionSales Promotion– Sales promotion is defined as any short Sales promotion is defined as any short

duration communication activity ,which duration communication activity ,which provides an incentive to the target market to provides an incentive to the target market to purchase a product or service immediately.purchase a product or service immediately.

OROR– Communication devices offered for a limited Communication devices offered for a limited

period of time to generate immediate sales.period of time to generate immediate sales.

– The incentive can take any form ,both The incentive can take any form ,both monetary and non- monetary.monetary and non- monetary.

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Marketing CommunicationMarketing Communication

Sales promotion can be directed at-:Sales promotion can be directed at-: Target ConsumersTarget Consumers (Consumer sales Promotion) (Consumer sales Promotion) Members of the Distribution ChannelMembers of the Distribution Channel (Trade (Trade

Promotions)Promotions)

Several sales promotional tools depends on Several sales promotional tools depends on following purchase behaviors-:following purchase behaviors-:

Loyal UsersLoyal Users To Lure competitors customersTo Lure competitors customers Brand switchersBrand switchers Low product usage OR Frequent product usageLow product usage OR Frequent product usage Non customersNon customers

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Marketing CommunicationMarketing Communication

Publicity & Public RelationsPublicity & Public Relations– Set of activities intended to enhance the Set of activities intended to enhance the

image of the marketer to create goodwill.image of the marketer to create goodwill.

PUBLICITY-PUBLICITY- It relates to any non personal It relates to any non personal communications through the media ,such as communications through the media ,such as press releases ,interviews ,press press releases ,interviews ,press conferences ,Newsletters ,photographs and conferences ,Newsletters ,photographs and corporate films .corporate films .

PUBLIC RELATIONS –PUBLIC RELATIONS – It includes activities It includes activities like event sponsorships ,lobbying ,employee like event sponsorships ,lobbying ,employee and investor relations and public affairs. and investor relations and public affairs.

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Marketing CommunicationMarketing Communication

Direct MarketingDirect Marketing Direct Marketing is any form of direct but non personal Direct Marketing is any form of direct but non personal

contact with the target market .contact with the target market .

– Interactive system that allows two-way Interactive system that allows two-way communication.communication.

– Provides a mechanism for the prospect to Provides a mechanism for the prospect to respond.respond.

– Can occur at any location.Can occur at any location.– Provides a measurable response.Provides a measurable response.– Requires a database of consumer information.Requires a database of consumer information.

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Marketing CommunicationMarketing Communication

Personal SellingPersonal Selling– Face-to-face contact between the marketer Face-to-face contact between the marketer

and a prospective customer. and a prospective customer. – Most important for companies that sell Most important for companies that sell

products requiring explanation, products requiring explanation, demonstration, and service.demonstration, and service.

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FACTORS AFFECTING THE FACTORS AFFECTING THE COMMUNICATION MIXCOMMUNICATION MIX

Nature of the product-:Nature of the product-:

1) Business Products1) Business Products

2) Consumer Products2) Consumer Products Stage in the product CycleStage in the product Cycle Target MarketTarget Market Type of buying decisionType of buying decision Push and Pull strategyPush and Pull strategy

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Marketing Communication Marketing Communication ToolsTools

PUBLICITY

SPONSORSHIP

MARKETING

SALES

PROMOTION

ADVRTISING

POINT OFPURCHASE

COMMUNICTION

PERSONAL

SELLING

COMMUNICATION

TOOLS

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1. PERSONAL SELLING1. PERSONAL SELLING

Selling of goods through person-to-Selling of goods through person-to-person communicationperson communication

Main aim of personal selling is to Main aim of personal selling is to inform, educate & persuade inform, educate & persuade prospective buyers to purchase prospective buyers to purchase company's products & services.company's products & services.

Includes communication by sales Includes communication by sales person.person.

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2. ADVERTISING2. ADVERTISING

It is a paid form of non-personal It is a paid form of non-personal presentation & promotion of ideas, presentation & promotion of ideas, goods or services by an identified goods or services by an identified sponsor.sponsor.

It include not only business firms but It include not only business firms but also charitable organisations, also charitable organisations, government agencies etc.government agencies etc.

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3. SALES PROMOTION3. SALES PROMOTION

It includes different types of methods It includes different types of methods like free coupons, discounts to like free coupons, discounts to persuade the customers for buying persuade the customers for buying the product.the product.

It consists of short tern incentives to It consists of short tern incentives to encourage purchase or sales of a encourage purchase or sales of a product or service.product or service.

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Contd..Contd..

SALES PROMOTION

Trade-oriented Sales Promotion

Consumer-Oriented Sales Promotion

Use allowance to encourage wholesaler &

Retailer Response

Use of couponsPremiums, free samples

Rebates & others

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Advertising AgenciesAdvertising Agencies

The goal of marketing is to target the segment of a The goal of marketing is to target the segment of a population who have a special need for a particular population who have a special need for a particular product or service and finding ways to provide that product or service and finding ways to provide that product or service in the most effective means product or service in the most effective means available.available.

The function of advertising and marketing The function of advertising and marketing companies is to professionally promote individual companies is to professionally promote individual businesses and organizations. businesses and organizations.

Advertising agencies and marketing firms are Advertising agencies and marketing firms are dedicated to the development of the most innovative dedicated to the development of the most innovative and effective means of business promotion available. and effective means of business promotion available.

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Contd.Contd.

The easiest way to differentiate advertising from marketing is The easiest way to differentiate advertising from marketing is to consider marketing as a whole cake and if you cut the to consider marketing as a whole cake and if you cut the cake, advertising is one of the slices of that cake. cake, advertising is one of the slices of that cake.

The other pieces of cake areThe other pieces of cake are -: -: Market research of the product, Market research of the product, Product designing, media planning, Product designing, media planning, PR,PR, Product pricing, Product pricing, Customer satisfaction, Customer satisfaction, Customer support,Customer support, Sales and many more. Sales and many more. All these components or pieces of cake should work All these components or pieces of cake should work

independently but collectively in achieving the bigger goal independently but collectively in achieving the bigger goal i.e. sell product and build company’s reputation in the i.e. sell product and build company’s reputation in the market. market.

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RESPONSE HIERARCHY MODELSRESPONSE HIERARCHY MODELS

Used to study Used to study how consumers respond to the how consumers respond to the messagesmessages..

Ultimate Ultimate test of effectivenesstest of effectiveness of advertising. of advertising. These models proposes that consumers These models proposes that consumers

respond to marketing messages in a respond to marketing messages in a Cognitive Cognitive (learn)(learn) , ,Affective (feel)Affective (feel) and and Conative (do)Conative (do) sequencesequence..

Various models are-Various models are-:: AIDA MODELAIDA MODEL LAVIDGE and STEINER MODELLAVIDGE and STEINER MODEL

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AIDA MODELAIDA MODEL

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AIDA MODELAIDA MODEL

Earliest model Earliest model developed in1920s in the developed in1920s in the USA.USA.

This model outlines the process for This model outlines the process for achieving communication goals achieving communication goals in terms in terms of stages of consumer involvement and of stages of consumer involvement and response to the message.response to the message.

This model suggests that an effective This model suggests that an effective sales presentation should attract sales presentation should attract attention ,gain interest ,stimulate attention ,gain interest ,stimulate desire ,and precipitate action (purchase).desire ,and precipitate action (purchase).

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AIDA MODELAIDA MODEL Marketers try to draw attention of the consumer Marketers try to draw attention of the consumer

to the message.to the message. Attention or awareness is the Attention or awareness is the first stage of first stage of

responseresponse ,but this by itself will not lead to action. ,but this by itself will not lead to action. The message The message must create enough interest and must create enough interest and

arouse the desirearouse the desire to own the product. to own the product. To enable this to happen ,marketers must To enable this to happen ,marketers must create create

opportunities for the target markets to feel the opportunities for the target markets to feel the product .product .

When the desire to acquire the product became When the desire to acquire the product became strong and the target strong and the target consumers are convinced of consumers are convinced of the product’s advantage over competing product’sthe product’s advantage over competing product’s , then consumers will be compelled to act., then consumers will be compelled to act.

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Hierarchy-Of-Effects ModelHierarchy-Of-Effects Model

Developed by Developed by Lavidge and SteinerLavidge and Steiner . . This model suggests that advertising This model suggests that advertising

produces its effect by produces its effect by moving the consumer moving the consumer through a series of stepsthrough a series of steps in a sequence from in a sequence from initial awareness to ultimate purchase of the initial awareness to ultimate purchase of the product.product.

Sequential orderSequential order indicates the basic premise indicates the basic premise that advertising effects over a period of time .that advertising effects over a period of time .

Advertising may not give desired results Advertising may not give desired results immediately because a series of effects must immediately because a series of effects must occur before the consumer possibly moves to occur before the consumer possibly moves to the next stage in the hierarchy.the next stage in the hierarchy.

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Hierarchy-Of-Effects ModelHierarchy-Of-Effects Model

There are six steps or movements towards There are six steps or movements towards the purchase of a product or service.the purchase of a product or service.

First twoFirst two, awareness to knowledge ,fall in , awareness to knowledge ,fall in the cognitive sphere of related behavioral the cognitive sphere of related behavioral dimension.dimension.

Advertisements here provides Advertisements here provides essential essential information information and and facts.facts.

These advertisements are These advertisements are announcements announcements , descriptive slogans ,jingles etc. , descriptive slogans ,jingles etc.

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Hierarchy-Of-Effects ModelHierarchy-Of-Effects Model

The next two steps in the movements The next two steps in the movements towards purchase are towards purchase are liking and liking and preference .preference .

These have been linked with the affective These have been linked with the affective sphere includes sphere includes changes in attitudes and changes in attitudes and feelings.feelings.

Advertisements falling in this category Advertisements falling in this category are competitive are competitive advertisements ,argumentative advertisements ,argumentative advertisements , advertisements with advertisements , advertisements with strong rational message and image strong rational message and image advertisements.advertisements.

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Hierarchy-Of-Effects ModelHierarchy-Of-Effects Model

The final two steps in the movement The final two steps in the movement towards purchase are towards purchase are conviction and conviction and purchase.purchase.

This is related to behavior . Here the This is related to behavior . Here the advertisements stimulate or direct advertisements stimulate or direct desire.desire.

Advertisements falling in this category Advertisements falling in this category are retail store advertisements ,last are retail store advertisements ,last chance offers ,price reduction appeals chance offers ,price reduction appeals and prize scheme advertisements.and prize scheme advertisements.

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MODELS OF MESSAGE DESIGN MODELS OF MESSAGE DESIGN AND DEVELOPMENTAND DEVELOPMENT

STAGES AIDA MODEL HOE MODEL

COGNITIVE STAGE(THOUGHT)

ATTENTION AWARENESS

KNOWLEDGE

AFFECTIVE STAGE(FEELINGS)

INTEREST

DESIRE

LIKING

PREFERENCE

BEHAVIORSTAGE(DO)

ACTIONCONVICTION

PURCHASE

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ADVERTISING CAMPAIGN

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ADVERTISING CAMPAIGNADVERTISING CAMPAIGN

According to Philip Kotler,“ According to Philip Kotler,“ Advertising Advertising campaign includes decision regarding FIVE Mscampaign includes decision regarding FIVE Ms ”.These are :”.These are :

M-MissionM-Mission : What are the advertising objectives ?: What are the advertising objectives ? M-MoneyM-Money : How much can we spend on : How much can we spend on

advertising ? advertising ? M-MessageM-Message : What message should : What message should be sent through advertisement?be sent through advertisement?

M-MediaM-Media : Which media should be used for : Which media should be used for advertising?advertising?

M-MeasurementM-Measurement : How should the result of : How should the result of advertising be evaluated ?advertising be evaluated ?

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ADVERTISING CAMPAIGNADVERTISING CAMPAIGN

““An An advertising campaignadvertising campaign is an organised is an organised series of advertisements having the same series of advertisements having the same theme over a period of time ”.theme over a period of time ”.

The The campaign campaign may be multimedia but its may be multimedia but its theme is kept intact and it maintains a theme is kept intact and it maintains a united approach.united approach.

All ads in the series are All ads in the series are driven by the same driven by the same thoughtthought , the same idea .In the absence of , the same idea .In the absence of this , a campaign is just a series of ads ,and this , a campaign is just a series of ads ,and not a campaign.not a campaign.

If If executed properlyexecuted properly ,a ,a campaign can become campaign can become a series of surprisesa series of surprises ,rather that a series of ,rather that a series of ads.ads.

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ADVERTISING CAMPAIGNADVERTISING CAMPAIGN

Campaign ads have similar logic.Campaign ads have similar logic. In a broad sense ,ad campaign is a process In a broad sense ,ad campaign is a process

where the advertising plan is where the advertising plan is integrated integrated to to the overall marketing plan and corporate plan the overall marketing plan and corporate plan ..

The advertising campaign process has certain The advertising campaign process has certain objectives to achieve i.e. objectives to achieve i.e. Co-ordination , Co-ordination , balance ,timing ,continuity and performance .balance ,timing ,continuity and performance .

Campaign can be Campaign can be local or national or local or national or regionalregional . .

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TYPES OF CAMPAIGNTYPES OF CAMPAIGN

There three types of campaigns-:There three types of campaigns-:Multi-media campaigns -:Multi-media campaigns -:put the message across in put the message across in

different media vehicles .different media vehicles .Single-media campaigns -:Single-media campaigns -:remained confined to a remained confined to a

single media .However ,the theme is expressed single media .However ,the theme is expressed through a variety of executions each reflecting through a variety of executions each reflecting the basic proposition and personality of the brand.the basic proposition and personality of the brand.

Brand-building campaigns -:Brand-building campaigns -:develop creative develop creative execution over a period of time , maintaining the execution over a period of time , maintaining the consistency and relevance ,and contributing to consistency and relevance ,and contributing to proposition ,personality ,presentation and proposition ,personality ,presentation and positioning of the brand.positioning of the brand.

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Top 10 Tips for an Effective Top 10 Tips for an Effective Advertising CampaignAdvertising Campaign

1.1. Go after your target audience.Go after your target audience. An advertising An advertising campaign should be geared to your niche market. campaign should be geared to your niche market. It is a common mistake to create generic ads that It is a common mistake to create generic ads that do not speak the language or grab the attention of do not speak the language or grab the attention of your potential customersyour potential customers

2.2. Highlight your competitive advantage.Highlight your competitive advantage. One of the One of the keys to all advertising is to accentuate the pros of keys to all advertising is to accentuate the pros of your company, those factors that give you your your company, those factors that give you your competitive edge. Too many ads are clever but fail competitive edge. Too many ads are clever but fail to sell the benefits of the product or service. to sell the benefits of the product or service.

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Top 10 Tips for an Effective Top 10 Tips for an Effective Advertising CampaignAdvertising Campaign

3.3. Establish an image.Establish an image. You can recognize the You can recognize the McDonald's arches while whizzing by on the McDonald's arches while whizzing by on the highway. Likewise, there are plenty of products highway. Likewise, there are plenty of products that you recognize by their packaging or logo. that you recognize by their packaging or logo. Image counts when it comes to advertising and Image counts when it comes to advertising and promoting your business. Too many advertisers promoting your business. Too many advertisers do not work to build a consistent image.do not work to build a consistent image.

4.4. You have to spend money to make money.You have to spend money to make money. There are ways to save money, but typically There are ways to save money, but typically advertising is not the place to cut corners. It advertising is not the place to cut corners. It will affect sales, and that affects the bottom will affect sales, and that affects the bottom line. Successful advertising may cost some line. Successful advertising may cost some money, but that is because it worksmoney, but that is because it works

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Top 10 Tips for an Effective Top 10 Tips for an Effective Advertising CampaignAdvertising Campaign

5. 5. Advertise in the right places.Advertise in the right places. YourYour favorite magazine, favorite magazine, radio station, or even television program might not be radio station, or even television program might not be a favorite of your audience. Know what they read, a favorite of your audience. Know what they read, watch, and listen to, and advertise in media that watch, and listen to, and advertise in media that reaches your target market.reaches your target market.

6. 6. Don't allow your budget to run your advertising Don't allow your budget to run your advertising campaign.campaign. If you budget $5,000 per month for If you budget $5,000 per month for advertising, you've made it very easy from a advertising, you've made it very easy from a bookkeeping perspective. However, if like most bookkeeping perspective. However, if like most businesses you have seasonal highs and lows, you are businesses you have seasonal highs and lows, you are spending too much money advertising during down spending too much money advertising during down times and not enough when you want to attract times and not enough when you want to attract customers. Too many entrepreneurs do not budget customers. Too many entrepreneurs do not budget according to their seasonal advertising needs. according to their seasonal advertising needs.

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Top 10 Tips for an Effective Top 10 Tips for an Effective Advertising CampaignAdvertising Campaign

7. 7. Diversify.Diversify. It is all too common for business owners It is all too common for business owners to choose the best place to advertise based on price to choose the best place to advertise based on price and potential rate of returns and then stop. As is the and potential rate of returns and then stop. As is the case with investing, you do not want to put all of your case with investing, you do not want to put all of your eggs in one basket. Spread your advertising dollars eggs in one basket. Spread your advertising dollars around. around.

8. 8. Don't try to be everything to everyone.Don't try to be everything to everyone. No product No product or service will appeal to everyone. Many business or service will appeal to everyone. Many business owners, including corporate executives, try to come owners, including corporate executives, try to come up with ways to reach every market. Typically, this up with ways to reach every market. Typically, this does not work. It can spell disaster for small does not work. It can spell disaster for small businesses, who cannot afford to spread themselves businesses, who cannot afford to spread themselves too thin. Therefore, find your market and be too thin. Therefore, find your market and be everything you can be to that audience. everything you can be to that audience.

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Top 10 Tips for an Effective Top 10 Tips for an Effective Advertising CampaignAdvertising Campaign

9. 9. Test your ads in advance.Test your ads in advance. If you have the If you have the time or money to invest in focus groups, you time or money to invest in focus groups, you should test your ads on other people. Do they should test your ads on other people. Do they understand and accept the message that you understand and accept the message that you are trying to convey? are trying to convey?

10. 10. Monitor your ads.Monitor your ads. It is very easy to ask new It is very easy to ask new customers or clients where they heard about customers or clients where they heard about you. As simple as this is, many entrepreneurs you. As simple as this is, many entrepreneurs do not bother to do so. It is advantageous to do not bother to do so. It is advantageous to know which ads generate businessknow which ads generate business

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STEPS INVOLVED IN STEPS INVOLVED IN ADVERTISING CAMPAIGNADVERTISING CAMPAIGN

Whether a marketer employs a professional Whether a marketer employs a professional advertising agency to handle its advertising advertising agency to handle its advertising campaign or chooses to undertake all advertising campaign or chooses to undertake all advertising tasks on its own, a successful campaign requires tasks on its own, a successful campaign requires a number of a number of important decisions includingimportant decisions including::

Study the target audience Study the target audience Study of marketing environmentStudy of marketing environment Setting the Advertising Objectives Setting the Advertising Objectives Determining the Advertising Budget Determining the Advertising Budget Selecting the message. Selecting the message.

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STEPS INVOLVED IN STEPS INVOLVED IN ADVERTISING CAMPAIGNADVERTISING CAMPAIGN

Selecting the advertising appeal.Selecting the advertising appeal. Selecting Media ,Media-mix ,Media vehicle Selecting Media ,Media-mix ,Media vehicle

for Message Delivery for Message Delivery Determining Media scheduling Determining Media scheduling

Micro-Level Micro-Level

Macro-LevelMacro-Level Designing advertising copy.Designing advertising copy. Execution of advertisement Execution of advertisement Evaluating Campaign ResultsEvaluating Campaign Results

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ADVERTISING STRATEGYADVERTISING STRATEGY

After defining advertising objectives , the ad-After defining advertising objectives , the ad-manager develops advertisement strategy .it manager develops advertisement strategy .it describes how to achieve advertising objectives. describes how to achieve advertising objectives. It has two components :It has two components :

(i)(i) Creative strategyCreative strategy -:It includes message design & -:It includes message design & development .In it ,advertising copy is developed development .In it ,advertising copy is developed which includes headlines , which includes headlines , slogans ,illustrations ,appeal ,text ,identification mark slogans ,illustrations ,appeal ,text ,identification mark ,layout etc.,layout etc.

(ii)(ii) Media strategyMedia strategy -: It includes media selection ,media -: It includes media selection ,media mix ,and media scheduling. It decides which media mix ,and media scheduling. It decides which media should be used and at what time should be used and at what time

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ADVERTISING BUDGETADVERTISING BUDGET

““Advertising budget is a plan Advertising budget is a plan projecting how much money a projecting how much money a business unit has at its disposal business unit has at its disposal for advertising and how it is going for advertising and how it is going to spend this money to get best to spend this money to get best results in a specific period of time results in a specific period of time ”.”.

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SOME FACTS..SOME FACTS..

Quantitative expressionQuantitative expression of future plan of activities . of future plan of activities . It is a It is a financial documentfinancial document . . It is the It is the translationtranslation of an advertising plan into of an advertising plan into

rupees.rupees. It is for a It is for a specific periodspecific period of time . of time . Advertising budgets Advertising budgets differ differ from company to from company to

company.company. It shows the It shows the plan of allocationplan of allocation of available funds. of available funds. It It affects the selectionaffects the selection of media. of media. Its Its size dependssize depends on various internal and external on various internal and external

factors .factors . It It determines the sizedetermines the size of advertising campaign. of advertising campaign.

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PROCESS OF ADVERTISING PROCESS OF ADVERTISING BUDGETBUDGET

Advertising budget is prepared by Advertising budget is prepared by advertising manager in consultation with advertising manager in consultation with marketing manager. It involves following marketing manager. It involves following steps -:steps -:

1.1. Setting advertising ObjectivesSetting advertising Objectives2.2. Determining tasks to be performed to achieve Determining tasks to be performed to achieve

advertising objectives .advertising objectives .3.3. Preparing advertising budget.Preparing advertising budget.4.4. Approval Approval 5.5. Allocation of advertising budget .Allocation of advertising budget .6.6. Monitor and control.Monitor and control.

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Step#1Step#1 Setting advertising Objectives Setting advertising Objectives

Before deciding on advertisement Before deciding on advertisement budget the advertising manager must budget the advertising manager must clear the advertising objectives.clear the advertising objectives.

These objectives should be translated These objectives should be translated in quantitative terms.in quantitative terms.

Decide the ad-budget for different Decide the ad-budget for different stages and purposes.stages and purposes.

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Step#2Step#2 Determining tasks to be performedDetermining tasks to be performed

Determine tasks ,activities ,strategies ,functions Determine tasks ,activities ,strategies ,functions to be performed to achieve the advertising to be performed to achieve the advertising objectives .objectives .

Tasks may include -:Tasks may include -: Selection of mediaSelection of media Selection of advertising agencySelection of advertising agency Designing of advertisement copyDesigning of advertisement copy Deciding frequency of advertisementDeciding frequency of advertisement Timing of advertisementsTiming of advertisements Quantum of space to be taken in print media.Quantum of space to be taken in print media.

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Step#3Step#3 Preparing advertising budget Preparing advertising budget

After identifying various activities to be done After identifying various activities to be done to achieve advertising objectives ,the next to achieve advertising objectives ,the next step is to find the cost of all such activities.step is to find the cost of all such activities.

Total cost of all such activities is the amount Total cost of all such activities is the amount required for advertising budget .required for advertising budget .

To keep the budget flexible ,certain amount To keep the budget flexible ,certain amount in the form of provision should be kept.in the form of provision should be kept.

Advertising budget is prepared by Advertising budget is prepared by advertising manager or marketing manager.advertising manager or marketing manager.

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Step# 4 Step# 4 ApprovalApproval

After preparation budget is sent to the After preparation budget is sent to the top top managementmanagement for necessary approval . for necessary approval .

In large organisations ,this proposed ad-In large organisations ,this proposed ad-budget is budget is evaluated ,reviewed and evaluated ,reviewed and scrutinizedscrutinized by high powered budget by high powered budget committee before submitting it to the top committee before submitting it to the top management for final approval.management for final approval.

Budget Budget committee will ensurecommittee will ensure that proposed that proposed budget will be effective enough to achieve budget will be effective enough to achieve advertising objectives .advertising objectives .

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Step# 4 Step# 4 Allocation of Ad- Allocation of Ad- BudgetBudget

Allocation means Allocation means dividing the advertisement budgetdividing the advertisement budget on different products and activities.on different products and activities.Advertisement Advertisement budget is allocatedbudget is allocated on various product on various product lines , product items ,media ,sales-territories etc.lines , product items ,media ,sales-territories etc.Advertising Advertising allocation depends uponallocation depends upon company’s company’s policies , competitor’s strategies ,stage of product life policies , competitor’s strategies ,stage of product life cycle ,market size , company’s promotional plans etc.cycle ,market size , company’s promotional plans etc.While allocating the budget to different activities ,the While allocating the budget to different activities ,the budget should have flexibilitybudget should have flexibility to accommodate to accommodate sudden changes in the market ,competitor’s sudden changes in the market ,competitor’s strategies and change in other components of strategies and change in other components of marketing environment.marketing environment.Budget Budget allocation should not be very rigid.allocation should not be very rigid.

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STEP# 6STEP# 6 Monitor and ControlMonitor and Control

In controlling actual expenditure is In controlling actual expenditure is compared with planned expenditure.compared with planned expenditure.

If If AE > PEAE > PE corrective actions are taken corrective actions are taken and responsibilities are fixed to ensure and responsibilities are fixed to ensure cost control over advertising budget.cost control over advertising budget.

Monitoring and controlling are Monitoring and controlling are necessarynecessary to make to make maximum utilization maximum utilization of fundsof funds , ,to reduce wastage in ad-to reduce wastage in ad-expensesexpenses and and to increase efficiency in to increase efficiency in various advertising activities. various advertising activities.

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METHODS OF BUDGET DETERMINATIONMETHODS OF BUDGET DETERMINATION

The amount of budget is not set arbitrarily The amount of budget is not set arbitrarily but is determined on some scientific basis. but is determined on some scientific basis. These are some methods commonly used These are some methods commonly used in determining the size of advertising in determining the size of advertising budget-:budget-:

The percentage of sales methodThe percentage of sales method Comparative parity methodComparative parity method Objective and task method Objective and task method Affordability methodAffordability method

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The percentage of sales methodThe percentage of sales method

Under this method ,the amount to be Under this method ,the amount to be appropriated for advertising is arrived by appropriated for advertising is arrived by multiplying the value of past year’s sales or multiplying the value of past year’s sales or projected sales for budget period with a pre-projected sales for budget period with a pre-determined percentage.determined percentage.

Advertising budget amount = Past year’s Advertising budget amount = Past year’s sales or anticipated sales X Pre-determined %sales or anticipated sales X Pre-determined %

In this method 2 major decisions are to be taken-:In this method 2 major decisions are to be taken-:1.1. Percentage figurePercentage figure2.2. Whether to take past or future salesWhether to take past or future sales

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The percentage of sales methodThe percentage of sales method

Percentage will depend on many Percentage will depend on many factors-:factors-:

Nature of productNature of product Level of competition Level of competition Availability of fundsAvailability of funds Stage of product life cycleStage of product life cycle

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The percentage of sales methodThe percentage of sales method

EXAMPLE-:EXAMPLE-:

If a company sales are Rs.300 lakhs and % If a company sales are Rs.300 lakhs and % decided by the top management is 4% ,then decided by the top management is 4% ,then advertiser will spend Rs.12 lakhs (4% of 300 advertiser will spend Rs.12 lakhs (4% of 300 lakhs)lakhs)

Merits -:Merits -:

1.1. Simple Simple

2.2. FlexibleFlexible

3.3. Prevents advertising wars Prevents advertising wars

4.4. SatisfactorySatisfactory

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Contd..Contd.. Demerits -:Demerits -:1.1. IllogicalIllogical2.2. ArbitraryArbitrary3.3. Baseless results when sales are decliningBaseless results when sales are declining4.4. Considers ad expenses as dependent variable Considers ad expenses as dependent variable

on sales.on sales.5.5. Baseless results in introduction stage of Baseless results in introduction stage of

product.product.6.6. Ignores other imp. Variables affecting Ignores other imp. Variables affecting

advertising budget. advertising budget. 7.7. Not much useful for long-run advertising Not much useful for long-run advertising

programme.programme.

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Comparative Parity MethodComparative Parity Method

It is a traditional approach .It is a traditional approach . Under this method ,advertisers spend as much Under this method ,advertisers spend as much

as their competitors spend so that their as their competitors spend so that their company is not at any disadvantage.company is not at any disadvantage.

It involves collection of relevant data about It involves collection of relevant data about competitors.competitors.

It assumes that -:It assumes that -:1.1. The company must know what competitors are The company must know what competitors are

doingdoing2.2. And what are they planning to do.And what are they planning to do.3.3. That the competitors are facing the similar That the competitors are facing the similar

marketing problems and environment.marketing problems and environment.4.4. That promotion needs of the organisations are That promotion needs of the organisations are

same as that of competitive rivals.same as that of competitive rivals.

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Comparative Parity MethodComparative Parity Method

Comparative parity budgets can be Comparative parity budgets can be determined in several ways. These are as determined in several ways. These are as follows -:follows -:

Spend the Spend the same rupee amountsame rupee amount on on advertising as major competitors does .advertising as major competitors does .

Spend the Spend the same percentage of salessame percentage of sales on on advertising as major competitor does.advertising as major competitor does.

Spend same percentage of sales on Spend same percentage of sales on advertisement as the advertisement as the average of entire average of entire industryindustry..

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Comparative Parity MethodComparative Parity Method

Merits -:Merits -: Considers level of competition .Considers level of competition . Check on excessive or meager budget.Check on excessive or meager budget. LogicalLogical

Demerits -:Demerits -: Wrong assumptionsWrong assumptions Non-availability of information Non-availability of information Different promotion needsDifferent promotion needs Ignores other variables affecting Ad BudgetIgnores other variables affecting Ad Budget

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Objective & Task MethodObjective & Task Method

The most desirable method of setting the The most desirable method of setting the advertising budget is objective and task method -:advertising budget is objective and task method -:

It is goal oriented method of appropriating the It is goal oriented method of appropriating the budget .budget .

It is based on setting advertising objectives and It is based on setting advertising objectives and identifying the tasks to be performed to achieve identifying the tasks to be performed to achieve these objectives .these objectives .

Cost of all these tasks is estimated Cost of all these tasks is estimated Total cost of all these tasks plus some amount for Total cost of all these tasks plus some amount for

contingencies constitute advertising budget.contingencies constitute advertising budget. This approach considers advertising as This approach considers advertising as an investment &an investment & Means to achieve long-term business objectives.Means to achieve long-term business objectives.

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Objective & Task MethodObjective & Task Method

This method involves following steps for framing This method involves following steps for framing advertising budget-:advertising budget-:

STEP# 1.STEP# 1. Determining advertising objectivesDetermining advertising objectives may be in may be in terms of sales ,communication ,improving corporate terms of sales ,communication ,improving corporate image etc.image etc.

STEP# 2.STEP# 2. Identifying Advertising tasksIdentifying Advertising tasks may include may include selection of media ,designing of message ,deciding the selection of media ,designing of message ,deciding the appeal ,designing advertisement copy ,deciding appeal ,designing advertisement copy ,deciding frequency & timing of advertisementfrequency & timing of advertisement

STEP# 3.STEP# 3. Estimating cost of advertising tasksEstimating cost of advertising tasks these these include the cost involved in performing each and include the cost involved in performing each and everyday task /activity.everyday task /activity.

STEP# 4.STEP# 4. Preparation of Ad-BudgetPreparation of Ad-Budget includes the addition includes the addition of all the above costs even contingency expenses are of all the above costs even contingency expenses are also added.also added.

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Objective & Task MethodObjective & Task Method

MERITS -:MERITS -: More suitable in case of More suitable in case of

new products.new products. Goal orientedGoal oriented Co-ordination among Co-ordination among

different advertising different advertising activitiesactivities

LogicalLogical Suitable for planning in Suitable for planning in

the long runthe long run

DEMERITS -:DEMERITS -: Ill-defined Ill-defined

objectives objectives Difficult to Difficult to

determine specific determine specific taskstasks

Ignores Ignores AffordabilityAffordability

Ignores Ignores Competitor’s Ad-Competitor’s Ad-BudgetBudget

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Affordable MethodAffordable Method

This method considers funds This method considers funds available with the available with the companycompany as a basis of advertising appropriation . as a basis of advertising appropriation .

It considers advertising as a It considers advertising as a residual activityresidual activity that is that is financed only after resources have been allocated financed only after resources have been allocated to other more important corporate activities .to other more important corporate activities .

This method is used when This method is used when fund availability is a fund availability is a constraintconstraint..

Companies with Companies with less resourcesless resources use this method use this method and and limited amount is leftlimited amount is left for advertising after all for advertising after all other expenses have been duly met.other expenses have been duly met.

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Affordable MethodAffordable Method

Demerits -:Demerits -: Unscientific Unscientific Ignores role of advertisingIgnores role of advertising Possibility of biasnessPossibility of biasness Lack of stabilityLack of stability