adv & imc (notes)

7/31/2019 Adv & IMC (Notes)

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Advertising is any paid form of non personal presentation and promotion of ideas, goods,

or services by an identified sponsor.

Integrated Marketing Communications (IMC) is a marketing concept of the 1990s. Itwill be necessary for survival in the 21st century. The advent of integration is causingmarketers to take a fresh look at all the components of marketing, specifically the uniquedimension that public relations bring to the marketing mix. Public relations people in turnare seizing the opportunity that integration offers them to make a difference where itcounts most to their companies and clients on the bottom line. IMC is the culminationof the shift that began in the post World War II period, from selling what the companiesmake to making what the consumers want. IMC is focused on what to know aboutproduct and services, not what the marketers want to tell them in order to sell them.

Thirty years ago, the president of the American Marketing Association (AMA) said that

marketers were wasting too much time and money on advertising, public relations andpromotion programmes that were poorly if at all coordinated. He said that these desperateefforts were counter-productive and confusion to consumers and that marketer shouldstart coordinating their marketing programmes.But in those days, there was nocompelling reason to get serious about integration especially if it meant shaking up theorganization. Those were glory days for marketing and American companies were doingvery well. They had money and were in the mood to spend it on all manner ofmerchandise that was advertised on TV and magazines. Advertisement was king,promotion was underdeveloped, direct marketing was in its infancy and public relationswas largely an afterthought.

The mass market is now fragmented. Nowadays consumers are better educated, moreskeptical, and less vulnerable to a slick sales pitch. We are bombarded with an endlessstream of sales messages wherever we go.

IMC is a deceptively simple idea. It is, in a word, synergy. In marketing, synergy mansthat when all product and corporate messages are strategically coordinated, the effect isgreater than when advertising, sales promotion, public relations etc. are planned andexecuted independently, with each competing for budgets and power and in some casessending out conflicting messages, according to Tom Duncan, director of the IntegratedCommunications graduate programme at the University of Colorado.

Integrated Marketing Communications (IMC) Defined:

The Northwestern Universitys Medill School of Journalism defines IMC as: The

process of managing all sources of information about a product/service to which a

customer or prospect is exposed which behaviorally moves the customer toward sale

and maintains customer loyalty.
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In short, Integrated Marketing Communications (IMC) is Joint planning, execution andcoordination of all areas of marketing communication and also understanding theconsumer and what the consumer actually responds to.

Why many companies are adopting Integrated Marketing Communications (IMC)?

Companies look at Integrated Marketing Communications (IMC) as a way to coordinateand manage their marketing communication programmes to ensure that they givecustomers a consistent message about the company or its brands. IMC represents animprovement over the traditional method of treating the various marketing andcommunication elements as virtually separate activities. The IMC approach helpscompanies identify the most appropriate and effective methods for communicating andbuilding relationships with their customer as well as other stakeholders such as

employees, suppliers, investors, interest groups and the general public.

Factors contributing to IMCs growing popularity

Several significant and pervasive changes in the marketing and communicationsenvironment have contributed to its growing prominence:

Fragmentation of the media: A huge number of media options are available tomarketers. Broadcasting media now offer narrow casting so specific thatadvertisers can reach consumers at precise locations, such as airports andsupermarket checkout counters. The print media has proliferated dramatically as

well. Better audience assessment through database technology: The ability of firms

to generate, collate and manage databases has created diverse communicationsopportunities beyond mass media. Databases can be used to create customer andnon-customer profiles. This information is important to identify target markets.

Consumer empowerment: Todays consumers are more powerful andsophisticated. Empowered consumers are more skeptical of commercial messagesand demand information tailored to their needs.

Increased advertising clutter: The proliferation of advertising stimuli hasdiluted the effectives of any single message.

Desire for greater accountability: In an attempt to achieve greater accountability

for promotional spending, firms have reallocated marketing resources fromadvertising to more short-term and more easily measurable methods, such asdirect marketing and sales promotions.
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IMC Communication Tools

AdvertisingDirect

Marketing

Interactive/

Internet Marketing

Sales

PromotionPublicity/Public

Relations

Personal

Selling

Integrated Marketing Communications (IMC) is to synergize and start integrating all thecommunication modes in order to be more competitive in the market place. The

important tools of Integrated Marketing Communications are:

1. Advertising

Advertising is the most glamorous and elaborate of all marketing tools. Around the worldnearly $500 billion is spent annually on advertising, and thats just for media time andspace! If you add in all, the costs of producing the advertisements and the salaries ofpeople working in the industry, the amount advertising is well over $1 trillion a year.Advertising means different things to different people. Its a business, an art, aninstitution and a cultural phenomenon. To a CEO of a multinational corporation,advertising is an essential marketing tool that helps create a brand awareness and loyalty

and stimulates demand. To a local restaurant owner, advertising is a way to communicateto the neighborhood. To an art director in an ad agency advertising is the creativeexpression of a concept. To a media planner, advertising is a way marketer uses the massmedia to communicate to current and potential customers.
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2. Public Relations (PR)

As a part of being a good corporate and community citizen, a firm will use publicrelations (PR) as a way to create a good image and reputation. PR focuses oncommunication that can foster goodwill between a firm and its many constituent groups.

These constituent groups include customers, stockholders, suppliers, employees,government, entities citizens actions groups and the general public.

PR is used to highlight positive events in an organization, such as quarterly sales andprofits or noteworthy community service programmes carried out by the firm. Converselyit is used strategically for damage control when adversity strikes an organization. PR usestechniques like press releases, newsletters and community events to reach the targetaudiences. PR is emerging as a more prominent tool in the promotional mix of manyfirms. As mass media becomes cluttered with ads and as consumers retain a healthysceptism of advertising, public relations and communication are being viewed as animportant addition to the mix.

Objectives of PR:

Within the broad guidelines of image building and establishing relationships withconstituents, it is possible to identify six primary objectives:

Promoting goodwill Promoting a product or service Preparing internal communications Counteracting negative publicity Lobbying

Giving advice and counsel.

Publicity

Advantages of publicity

CredibilityLow cost (although not totally free)

Often results in word-of-mouth

Disadvantages of publicityNot always under control of organization

Can be negative

Nonpersonal communication regarding an

organization, product, service, or idea not

directly paid for or run under identified

sponsorship.

Nonpersonal communication regarding an

organization, product, service, or idea not

directly paid for or run under identified

sponsorship.


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Publicity Vehicles

News Releases: Single-page news stories sent to media who

might print or broadcast the content.

Feature Articles: Larger manuscripts composed and edited for

a particular medium.

Captioned Photos: Photographs with content identified and

explained below the picture.

Press Conferences: Meetings and presentations to invited

reporters and editors.

Special Events: Sponsorship of events, teams, or programs

of public value.

Public Relations

Tools used by Public Relations Publicity

Special publications

Community activity participation

Fund-raising

Special event sponsorship

Public affairs activities

The management function which evaluates public

attitudes, identifies the policies and procedures of

an individual or organization with the public interest,

and executes a program of action to earn public

understanding and acceptance.

The management function which evaluates public

attitudes, identifies the policies and procedures of

an individual or organization with the public interest,

and executes a program of action to earn public

understanding and acceptance.

3. Personal Selling (PS)

Personal selling is the presentation of information about a firms product or services byone person to another person or to a small group of people. Personal selling can bedistinguished from all forms of promotion in that it is the only one to one communicationthat can deliver a completely customized message based on feedback from the receiver ofthe message. In other words, if you are in the electronics shop considering the purchase


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of a DVD player, the salesperson can tell you about the different brands and focus themessage content on the features of each brand based on questions you ask or informationyou request. No other form of promotion- not even the Internet can customize messagesin this way.

Personal selling is the dominant variable in the promotional mix of any corporatemarketers. Complex products and services, high purchase prices, and negotiated contractswarrant the customized communication of personal selling. In business to businessmarkets there are many instances where advertising sales promotion and otherpromotional mix variables simply do not achieve the needed communication effect. Butthis is not always the case in business to business sales.

Types of Personal Selling:

Order taking: This involves accepting orders for merchandise or schedulingservices either in written form or over the telephone. Order takers deal with

existing customers who are lucrative to the firm due to low cost f generatingrevenue this group. Order takers can also deal with new customers which meansthat they need to be trained well enough to answer any new question a newcustomer might have about product or services.

Creative Selling: This is the type of selling where customers rely heavily on thesalesperson for technical information, advice and service.

Team Selling: In this, a group of people from different functional areas within theorganization is assembled as a team to call on a particular customer. Sales teamsare prevalent in the areas of communication equipment, computer installationsand manufacturing equipments.

Seminar Selling: This is designed to reach a group of customers, rather than an

individual customer, with information about the firms products or services. System Selling: This type of selling entails selling a set of inters related

components that fulfill all or a majority of a customers need in a product orservice area.

4. Sales Promotion (SP)

Sales Promotion is of four types:

Consumer sales promotion: Here the efforts are directed towards the customer.For example: price discounts, freebies

Trade Promotion: These are basically done for distributors in order to push salesthrough margins and discounts. Business to business promotion: Here promotions are between two companies;

one company may offer bulk discounts on the purchase of raw materials in largesupplies etc.

Sales persons promotions: Here the promotions are targeted to motivate the salepeople working for an organization. On achieving their targets, the sales personwill win a free holiday or hell receive a non monetary benefits, etc.


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Sales promotion is the use of the incentive techniques that create a perception of greaterbrand value among consumers, the trade and business buyers. The intent is to create ashort term increase in sales by motivating trail use and encouraging larger or repeatpurchases. Free samples, coupons, premiums, sweepstakes and contests, rebates and pricediscounts are some of the primary methods of sales promotion in the consumer market.

Sales promotion may not seem as stylish and sophistication as mass media advertising,but expenditures on this tool are impressive. It is important to realize that full advertisingagencies specializing in advertising planning, creative planning and media placementtypically do not prepare sales promotion materials for clients. These activities arenormally assigned to sales promotion agencies that specialize in couponing, ventmanagement, premiums or other forms of sales promotion that require specific skills andcreative preparation. The rise in the use of sale promotion and the enormous amount ofmoney being spent on various programmes make it one of the most prominent forms ofmarketing activity.

Marketing activities that provide extra

value or incentives to the sales force,

distributors, or ultimate consumers and

can stimulate immediate sales.

Marketing activities that provide extra

value or incentives to the sales force,

distributors, or ultimate consumers and

can stimulate immediate sales.

Sales Promotion

Trade-oriented

Targeted toward marketingintermediaries such asretailers, wholesalers, or

distributors Promotion allowances

Merchandise allowances

Price deals

Sales contests

Trade shows

Consumer-oriented

Targeted to the ultimateusers of a product or

service Coupons Sampling

Premiums Rebates

Contests

Sweepstakes

POP materials

5. Direct Marketing (DM)

Direct marketing is an interactive system of marketing that uses one or more advertisingmedia to affect a measurable response and or transaction at any location. This definitiondistinguishes direct marketing from other primary promotional tools in three ways:

Direct Marketing uses a combination of media: Any media can be used in a directmarketing, and a combination of media is often used to increase effectiveness.


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Direct Marketing is often used to elicit a direct response: An example of thiswould be getting the message receiver to phone or mail in an order .Other formsof promotion like traditional advertising, public relations or an event sponsorshipare not designed to elicit immediate action.

The buyers home by mail or literally any place where the consumer can

communicate with the marketer.

Today the primary methods of direct marketing are direct mail, telemarketing, telephonesales solicitation and direct response advertising in magazines, newspapers, and ontelevision and radio.

Online ordering via the internet is another form of direct marketing and has come toknown as e-commerce because of the totally electronic communication between andbuyers and sellers. E-commerce is business conducted between buyers and sellers usingelectronic exchange media. E-commerce is quickly emerging as a significant form ofdirect marketing. In addition, trade markets are emerging where buyers in specific

industries are creating e-market places to enhance the efficiency of the exchange process.

The Emerging Tools of IMC

Road shows Sponsorships Events Point Of purchase

Classification of Advertising

Advertising can be classified by target audience, geographic area, medium, and purpose.

1. Target audience

Consumer advertising: Aimed at people who buy the product for their own or someoneelses personal use.Business advertising: Aimed at people who buy or specify goods and services for use inbusiness:

Industrial

Trade

Professional

Agricultural (farm)

2. Geographic area

Local (retail) advertising: Advertising by businesses whose customers come from onlyone city or local trading area.


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Regional advertising: Advertising for products sold in one area or region, but not thewhole country.National advertising: Advertising aimed at customers in several regions of the country.International advertising: Advertising directed at foreign markets.

3. Medium

Print advertising:Newspaper, magazine.Broadcast (electronic) advertising: Radio, TV.Out-of-home advertising: Outdoor, transit.

Direct-mail advertising: Advertising sent through the mail.

4. Purpose

Product advertising: Intended to promote goods and services.

Nonproduct (corporate or institutional) advertising: Intended to promote firmsmission or philosophy rather than a product.

Commercial advertising: Intended to promote goods, services, or ideas with theexpectancy of making a profit.

History of advertising

For the first, Volney Palmer established the first advertising agency in 1841. The adagency industry growth quickly led to the growth of brandings importance for

companies, as well as to the growth of ad campaigns.

Then in 1850, Robert Bonner, with his New York Ledger newspaper, started the first

major advertising campaign.

In 1869, George Rowell published the American Newspaper Directory, containingaccurate lists of all the newspapers and periodicals published in the United States

and territories, and the dominion of Canada, and British Colonies of North America,together with a description of the towns and cities in which they are published.

This directory opened new ways for the advertisers and agencies to easily contact

and promote their products nationwide.

Because of the fast growth of the advertising industry, people in the industry soon

started to get more fame as time passed. One of the first "stars" of advertisingindustry was John Powers, a copywriter.

The first modern full-service advertising agency was launched by Albert Lasker in1904.


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The next big step in advertising history came in and around 1926, when commercialradio programs debuted. In similar fashion, 1947 saw the first commercial television

broadcasts.

On the fundaments of advertising side, Rosser Reeves invented the concept of USP(unique selling proposition) in 1950. Also, the famous David Ogilvy invented the

concept of Brand Image during the same year.

Of the recent history in advertising, the advertising industry in the 1990s was an erawhen creativity & brand building dominated the scene.

Advertising Standards Council of IndiaAdvertising Standards Council of India is a self regulatory voluntary organization of theadvertising industry. The Role and Functioning of the ASCI & its CCC in dealing withComplaints received from Consumers and Industry, against Advertisements which areconsidered as False, Misleading, Indecent, Illegal, leading to Unsafe practices, or Unfairto competition, and consequently in contravention of the ASCI Code for Self-Regulation

in Advertising.

Goals

In recent years the quantity of false, misleading and offensive advertising has resulted inconsumers having an increasing disbelief in advertising, and a growing resentment of it.Misleading, false advertising also constitutes unfair competition. It could lead to market-place disaster or even litigation. If this kind of advertising continues, it won't be longbefore statutory regulations and procedures are imposed which make even fair, truthful,decent advertising cumbersome if not impossible. This certainly will affect your ability tocompete and grow.

The Advertising Standards Council of India (ASCI) (1985) has adopted a Code forSelf-Regulation in Advertising. It is a commitment to honest advertising and to faircompetition in the market-place. It stands for the protection of the legitimate interests ofconsumers and all concerned with advertising - advertisers, media, advertising agenciesand others who help in the creation or placement of advertisements. As the Codebecomes increasingly accepted and observed pro-actively, three things will begin tohappen.

Fewer false, misleading claims

Fewer unfair advertisements

Increasing respectability

Which, only means more freedom for you to practise your craft or carry on your businesseffectively. As a member of ASCI, you can mould the course of Self-Regulation andparticipate in the protection of healthy, effective advertising. You can have a say, throughthe Board of Governors, in the further development of the Code and future appointmentsto the Consumer Complaints Council (CCC). Membership of the ASCI (open only to


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Firms ) entitles you to appoint your nominee to discharge your function as a member,including standing for election to the Board of Governors and voting at general meetings.

In India, as in several advanced economies, there is only ONE BODY for Self-Regulationin Advertising the ASCI, which is concerned with safeguarding the interests of

consumers whilst monitoring/guiding the commercial communications of Practitioners inAdvertising on behalf of advertisers, for advertisements carried by the Media, in theirendeavours to influence buying decisions of the Consuming Public.

Objectives

Registered in Oct. 1985, u/s 25, as a Not-For-Profit Co., under the Companies Act

1956

The main objects to be pursued by the Company on its incorporation are...

To monitor administer and promote standards of advertising practices in India with aview to

ensuring the truthfulness and honesty of representations and claims made throughadvertising and safeguarding against misleading advertising.

ensuring that Advertising is not offensive to generally accepted norms andstandards of public decency.

safeguarding against the indiscriminate use of advertising for the promotion ofproducts or services which are generally regarded as hazardous to society or to

individuals or which are unacceptable to society as a whole. ensuring that advertisements observe fairness in competition and the canons of

generally accepted competitive behaviour.

To codify adopt and from time to time modify the code of advertising practices in Indiaand implement, administer and promote and publicize such a code.

To provide facilities and machinery in the form of one or more Consumer ComplaintsCouncils having such composition and with such powers as may be prescribed from timeto time to examine complaints against advertisements in terms of the Code of Advertisingpractices and report thereon.

To give wide publicity to the Code and seek adherence to it of as many as possible ofthose engaged in advertising.

To print and publish pamphlets, leaflets, circulars or other literature or material that maybe considered desirable for the promotion of or carrying out of the objects of theCompany and disseminate it through any medium of communication.


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Consumer Complaints Council

The Board of Governors shall appoint Consumer Complaints Council, the number ofmembers of which shall not be more than twenty one.The Consumer Complaints Council shall examine and investigate the complaints received

from the consumers and the general public, including the members of the Company,regarding any breach of the Code of Conduct and/or advertising ethics and recommendthe action to be taken in that regards

Power of the Consumer Complaints Council

Each Council shall be entitled to receive complaints from the Board of Governors,

the Consumers, the general public and members of the Company.

Each Council shall enquire, investigate and decide upon the complaints receivedby it within the frame work of the Code of Conduct adopted by the Company.

All the decisions of each Council shall be by simple majority, in writing and mayspecify the action to be taken in respect of the offending advertisement.

The Role and Functioning of the ASCI

The Role and Functioning of the ASCI & its Consumer Complaints Council (CCC) in

dealing with Complaints received from Consumers and Industry, against Ads which areconsidered as False, Misleading, Indecent, Illegal, leading to Unsafe practices, or Unfairto competition, and consequently in contravention of the ASCI Code for Self-Regulationin Advertising.

ASCI is a voluntary self-regulatory council, registered as a not-for-profit Company undersection 25 of the Indian Cos. Act. The sponsors of the ASCI, who are its principalmembers, are firms of considerable repute within Industry in India, and compriseAdvertisers, Media, Ad. Agencies and other Professional /Ancillary services connectedwith advertising practice.

The ASCI is not a Government body, nor does it formulate rules for the public or for therelevant industries. The Purpose and the Mission of the ASCI is spelt out clearly in theliterature provided.

You will appreciate that if an AD is to be reviewed for its likely impact on thesensibilities of individual viewers of TV, or readers of press publications, we require toconvey to the Advertiser concerned, the substantial issues raised in the complaint, in the


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exact context of the specific Ad, as conveyed by the perception of the complainant, andto elicit the appropriate response by way of comments from the Advertiser.

Only then will the CCC, of the ASCI, be in a position to deliberate meaningfully on theissues involved, and to arrive at a fair and objective conclusion, which would stand the

scrutiny of all concerned with the right to freedom of expression, and the freedom ofconsumers to choose the products /services made available to them in the market-place.For this we require in each case a clearly readable copy or clipping of the Ad undercomplaint, with full particulars of name and date of publication, or a printout of an Ad orpromotion on a Website or in case of a T.V. Commercial, the channel, date and time orprogramme of airing, and a description of the contents of the TVC, along with a hardcopy of the complete complaint preferably signed by the complainant.As a policy it does not disclose the identity of the complainant to the Advertiser.

The ASCI receives and processes complaints against Ads, from a cross section ofconsumers, the general public and Industry, in the interests of all those who rely on

advertising as a commercial communication, and this covers individuals, practitioners inadvertising, advertiser firms, media, ad. agencies, and ancillary services connected withadvertising.

In the case of complaints which were Upheld by the CCC, during the past year, it mayinterest you to know that over 80% of such Ads have been withdrawn or modifiedappropriately by the Advertisers/Agencies involved, and the concerned Media have alsoconfirmed that they would not carry such offending Ads/TVC.

Legal issues in advertising

Indias constitution, set up at the time of independence in 1947, has a provision forfreedom of speech and expression, though commercial advertising was excluded fromthis provision in a Supreme Court Ruling in 1960 (Venkateswaren,1993: 60, quoted inPashupati and Sengupta,1996). A number of laws helped define the limitations ofadvertising. In 1969 the Monopolies and Restrictive Trade Practices Act includedmisleading advertising in the definition of unfair trade practices, includingmisrepresentation regarding price, quality and also prohibited the practice bait andswitches. In 1954 the Drugs and Magic Remedies Act restricted advertising of somecontraceptive devices or those that would facilitate miscarriages, along with the banningof false claims from drugs and medication. The Indecent Representation of Women Actin 1986 endeavoured to restrict exploitation of women by the media and was a responseto consumer demands. Other acts restrict the use of certain emblems and names; theconduct of promotions and competitions for prizes (1955); comparative advertising thatinvolves defamation, and financial advertising claims. There are also ethical codes ofconduct established by the Advertising Standards Council of India and the IndiaNewspaper Society (Pashupati and Sengupta, 1996).

The following acts/rules guides and monitors the advertisement in our country.Advertisers should be well versed with these acts before preparing advertisements.


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(1) Drugs and Cosmetics Act, 1940.(2) Drugs Control Act, 1950.(3) Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.(4) Copyright Act, 1957.

(5) Trade and Merchandise Marks Act, 1958.(6) Prevention of Food Adulteration Act, 1954.(7) Pharmacy Act, 1948.(8) Prize Competition Act, 1955.(9) Emblems and Names (Prevention of Improper Use) Act, 1950.(10) Consumer Protection Act, 1986.(11) Indecent Representation of Women (Prohibition) Act,1986.(12) AIR/Doordarshan Code.(13)Code of Ethics for advertising in India issued by the Advertising Standard Council ofIndia.(14)Code of 'Standards in relation to the advertising of medicine and treatments.

(15)Standards of practice for Advertising Agencies.

Advertising is a social waste

Because its time consuming

It does focus on specific group only.

Waste of resources.

Consumers are deceived by advertising.

Misleading information to the public.

It affects the health by having alcohols and cigarettes advertising.

Consumers are paying for those advertisements because fess will be added into

the price of the product. People are lured to buy products which is not needed and not within their reach.

(propensity to consume)

Some critics view advertising as a waste of time, talent and money In their view, not

only does advertising have no value of its own, but its influence is entirely harmful and

corrupting for individuals and society. Sometimes advertisements depict false assertions

which create a false impact in individuals and society.

a) Economic Harms of Advertising

Advertising can betray its role as a source of information by misrepresentation

and by withholding relevant facts. Sometimes the information function of media

can be subverted by advertisers' pressure More often, advertising is used not

simply to inform but to persuade and motivate to convince people to act in certain


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ways, buy certain products or services This is where particular abuses can occur.

Brand advertising can raise serious problems. Often there are only negligible

differences among similar products of different brands, and advertising may

attempt to move people to act on the basis of irrational motives like brand loyalty,

status, fashion, instead of presenting differences in product quality and price asbases for rational choice.

b) Harms of Political Advertising

Political advertising can support and assist the working of the democratic system,

but it also can obstruct it. This happens when the costs of advertising limit

political competition to wealthy candidates or groups Political advertising seeks

to distort the views and records of opponents and unjustly attacks their

reputations. It happens when advertising appeals more to people's emotions and

base instincts to selfishness, bias and hostility toward others, to racial and

ethnic prejudice and the like rather than to a reasoned sense of justice and the

good of all.

c) Cultural Harms of Advertising

Advertising also can have a corrupting influence upon culture and cultural

values.. In the competition to attract ever larger audiences and deliver them to

advertisers, communicators can find themselves tempted in fact pressured,

subtly or not so subtly to set aside high artistic and moral standards and lapse

into superficiality Communicators also can find themselves tempted to ignore the

educational and social needs of certain segments of the audience the very

young, the very old, the poor who do not match the demographic patterns (age,

education, income, habits of buying and consuming, etc.) of the kinds of

audiences advertisers want to reach.

d)Moral and Religious Harms of Advertising

Advertising sometimes is used to promote products and inculcate attitudes andforms of behavior contrary to moral norms.


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Advertising Objectives

Advertising objectives are the communication tasks to be accomplished with specificcustomers that a company is trying to reach during a particular time frame.

Advertising objectives are essential for an effective advertising campaign.

They help advertisers know exactly what their targets and goals are, what they aim toachieve, and ensures that theyre going in the right direction. By setting the rightadvertising objectives you make the first step towards the effective development of youradvertising programs, guiding each stage to meet the final goal.Advertising objectives serve in the end as point of reference in measuring the results,making it easier to appreciate the level of success your campaign has achieved.

Advertising objectives

Inform

Informative advertising, seeks to tell the market about the product, explain how theproduct works, provide information on pricing, and build awareness of both the productand the company. Such objectives are normally pursued at the launch of a new product,or re-launch / up-date of an existing product.

Persuade

Here objectives are to encourage the target audience to switch brands, make the purchase,and create a preference in the market for the product as opposed to its competition.Advertising of this nature is required in highly competitive markets, where a range ofproducts compete directly with each other. In such circumstances businesses often seek todifferentiate their product through Comparison Advertising either directly or indirectlycomparing its product to that of its competitors.

Remind

Reminder Advertising, is used to maintain interest and awareness of a well establishedproduct in the market, often in the latter stages of its product life cycle. It is often used at


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the Point-of-Purchase to remind consumers of the Brand. Such advertising is used by thelikes of Coca-Cola and other leading brands, to maintain their position in the market.

Reinforce

The final category of advertising objectives seeks to reinforce attitudes that customers

already have towards a product. Market leaders (such as Coke or McDonalds) often usethis to maintain their market share and volume.

DAGMAR APPROACH & HIERARCHY OF EFFECTS MODEL

Russell H Colley (1961) prepared a report for the association of national advertisers titleddefining Advertising Goals for Measured Advertising Results (DAGMAR). Hedeveloped a model for setting advertising objectives and measuring the results

of an ad campaign. According to this model, communications effect is the logical basisfor setting advertising objective and goals against which results should be measured.

In Colleys words

Advertising job purely and simply is to communicate to a defined audienceinformation and a frame of mind that stimulate action. Advertising succeed or failsdepending on how well it communi-cate the desired information and attitudeto the right time and at the right cost.

1. Awareness2. Comprehension3. Conviction4. Action

There are no significant differences between Colleys proposedmodel and other important hierarchy of effects models. One important contribution ofDAGMAR was its ability to clarify what continuous a good objective. According toColley, the objective should have the following features:

1. Stated in term of concrete and measurable communication tasks.2. Specify a target audience.3. Indicate a benchmark or standard starting point.4. Specify a time period for accomplishing the objective or objectives.

Concrete measurable tasks

The DAGMAR approach requires that the measurement procedureshould also be specified. There must be a way to determine whether the intended admessage has been communicated properly to the target audience. If the ad message


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communicates that brand X is the best on Q attribute, then a questionnaire mayinclude the request, rank the following brands on best Q attribute. The responses couldbe quantified to mean percentage of audience who rated brand X as the best on Qattribute.

Target audience

Another important feature of good objectives is the specification of a well-defined target audience. Though the primary target audience for a companys product orservice is describe in situation analysis, yet it may need some refining.

For example, user of a product may be further categorized as heavy, mediumor light users.

Benchmark and degree of change sought

It is important to know the target audiences present status with respect toresponses variable and then determine the degree of change desired by the advertisingcampaign.

Assessment and criticism of DAGMAR approach

The DAGMAR approach has had an enormous influence on theadvertising planning process and objective setting. It has focused the advertisersattention on the important and value of using communication-based objectives as againstsales based objectives to measure the impact and success of an ad campaign.

The approach has not been totally accepted by everyone in theadvertising field. A number of questions have been raised concerning its value as anadvertising planning tool.

1. Problems with responses hierarchy

2. Sales as the advertising goal

3. Practicality and costs

4. Inhibits creativity

Hierarchy-of-Effects Models

Among advertising theories, the hierarchy-of-effects model is predominant. It showsclear steps of how advertising works, even though it has been criticized on some points,
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such as that people do not exactly follow these sequences. There are various versions ofhierarchy-of-effects model. AIDA model is initiatory and simplest.

Awareness Interest Desire Action

AIDA model was presented by Elmo Lewis to explain how personal selling works. Itshows a set of stair-step stages which describe the process leading a potential customer topurchase. The stages, Attention, Interest, Desire, and Action, form a linear hierarchy. Itdemonstrates that consumers must be aware of a product's existence, be interested enoughto pay attention to the product's features/benefits, and have a desire to benefit from theproduct's offerings. Action, the fourth stage, would come as a natural result of movementthrough the first three stages. Although this idea was rudimentary, it led to the lateremerging field of consumer behavior research.

Hierarchy-of-effects models have many variant models. DAGMAR (DefiningAdvertising Goals for Measured Advertising Results) model suggests similar but

different steps.

Awareness Comprehension Conviction Action

DAGMAR model suggests that the ultimate objective of advertising must carry aconsumer through four levels of understanding: from unawareness to Awarenesstheconsumer must first be aware of a brand or company; Comprehensionhe or she musthave a comprehension of what the product is and its benefits; Convictionhe or she mustarrive at the mental disposition or conviction to buys the brand; Actionfinally, he orshe actually buy that product.

Determining the Advertising Budget

An important goal in determining the size of an advertising budget is to maximize profits.To achieve this goal, even approximately, is a very complex problem. Many proceduresor rules have been adopted to provide what appears to be a reasonable answer from onepoint of view or another, but which, most people in the business would agree, are verycrude at best. Hence, such approaches as percentage-of-sales, all-you-can-afford,

objective-and-task and competitive-parity, are used because scientific approachedeither dont exist, or have not been able to prove their superiority.The difficulties of devising a scientific approach are fairly well know. The multitude offactors involved and the scarcity of relevant and accurate data are only two of manywhich could be listed.


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probably generate advertising budgets that are somewhat close to the optimal. Everyonecould not be too far from the optimal. Furthermore, any departure from the industrynorms could precipitate a spending war.

* Objective and Task

Objective and task, more an approach to budgeting than a simple decision rule, is used bytwo-thirds of the largest advertisers. An advertising objective is first established inspecific terms. For example, a firm may decide to attempt to increase the awareness of itsbrand in a certain population segment to 50 percent. The tasks that are requited toaccomplish this objective are then detailed. They might involve the development of aparticular advertising campaign exposing the relevant audience an average of the fivetimes. The cost of obtaining these exposures then becomes the advertising budget. Thisapproach assumes that there is a causal flow from advertising to sales. In effect, itrepresents an effort to introduce intervening variables such as awareness or attitude,which will presumable be indicators of future sales as well as immediate sales.

Steps:

1. Task Definition: The objective of the advertising programme, areto be defined. The objectives may be to

- Close an immediate sale- Increase sales- Create awareness- Building company goodwill and corporate image.

2. Determining the type of strategy, media, and amount of exposure,required for efficient satisfying of the task set.

3. Estimating the costs of various elements of advertising that havebeen considered.

4. Deciding whether the firm can afford the budget taking intoaccount the financial constraints and availability of funds.

Target Audience

A target audience is a specified audience or demographic group for which an advertisingmessage is designed.

A target audience is the primary group of people that something, usually an advertisingcampaign, is aimed at appealing to. A target audience can be people of a certain agegroup, gender, marital status, etc. (ex: teenagers, females, single people, etc.) A certaincombination, like men from twenty to thirty is often a target audience. Other groups,although not the main focus, may also be interested. One of the most important stages
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involved with market research. Without knowing your target audience advertising and theselling of a particular product can become difficult and very expensive.

Steps in identifying target audience

1. Segment the market2. Select the target market

Market Segmentation

It is the process of dividing a market into distinct group of buyers who have distinctneeds, characteristics or behaviour and who might require separate product or marketingmixes.

Market segment

A group of consumers who respond in a similar way to a given set of marketing efforts.

For Example: In the car market, consumers who want the biggest, most comfortable carregardless of the price make up one market segment. Consumers who care mainly aboutprice and operating economy make up another segment.

Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics.

Geographic Demographic Psychographic Behavioral

Geographic Segmentation

The following are some examples of geographic variables often used in segmentation.

Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions

Demographic Segmentation


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Some demographic segmentation variables include:

Age Gender Family size

Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion Social class

Many of these variables have standard categories for their values. For example, family

lifecycle often is expressed as bachelor, married with no children (DINKS: DoubleIncome, No Kids), full-nest, empty-nest, or solitary survivor. Some of these categorieshave several stages, for example, full-nest I, II, or III depending on the age of thechildren.

Psychographic Segmentation

Psychographic segmentation groups customers according to their lifestyle, Personalityand Social class. Activities, interests, and opinions (AIO) surveys are one tool formeasuring lifestyle. Some psychographic variables include:

Activities Interests Opinions Attitudes Values

Behavioral Segmentation

Behavioral segmentation is based on actual customer behavior toward products. Some

behavioral variables include:

Benefits sought Usage rate Brand loyalty : none, medium, high User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases


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Behavioral segmentation has the advantage of using variables that are closely related tothe product itself. It is a fairly direct starting point for market segmentation.

Select the target market

Target market is the market segment to which a particular product ismarketed. It isoften defined by age, gender, geography, and/orsocio-economic grouping.

Targeting strategy is the selection of the customers you wish to service. The decisionsinvolved in targeting strategy include:

which segments to target how many products to offer which products to offer in which segments

o Evaluating and selecting the market Segments (factors: Segment size and

growth, segment structural attractiveness, company objectives andresources)

Single-segment concentrationfirm concentrates on one marketonly for its one product

Selective specializationfirm selects a number of attractive andappropriate segments and develops products that appeal to eachsegment

Product specializationfirm focus is on a product it can sell to

several segments Market specializationfirm satisfies multi-faceted needs of one

particular group

Full market coveragefirm serves all customer groups withproducts they might need

Undifferentiated marketingentire market receives thesame program

Differentiated marketingdifferent programs for differentsegments

Levels of market segmentation/ Target marketing strategies

Undifferentiated Marketing( mass marketing) Oneproduct mix available to all buyers

Segment marketinga large identifiable group within a market.Midpoint between mass and individual marketing
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Niche Marketinga narrowly defined smaller group whose needsnot currently met effectively

Local Marketingprograms targeted to the needs and wants oflocal customer groups

Individual Customer Marketingone to one marketing

Mass-customization and choiceboard.

Customerizationempowering customers with the meansto design their own products.

Selfa form of individual marketing in which the consumer takesmore responsibility for determining which brands and products tobuy. (i.e., shopping over the Internet)

Advertising Agency

An advertising agency orad agency is a servicebusinessdedicated to creating, planning

and handling advertising (and sometimes other forms ofpromotion) for their clients. Anad agency is independent from the client and provides an outside point of view to theeffort of selling the client's products or services. An agency can also handle overallmarketing andbranding strategies and sales promotionsfor its clients.

An advertising agency acts in the fist place as a consultant to its client, the advertiser informulating the advertising plans and translating them into advertising campaigns. Theother role of ad agency, namely placing the advertisement, articles from its traditionalassociation with the media.

Typical ad agency clients include businesses andcorporations,non-profit organizations

andgovernment agencies. Agencies may be hired to produce single ads or, morecommonly, ongoing series of related ads, called anadvertising campaign.

Ad agencies come in all sizes, from small one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group orWPP Group.

Some agencies specialize in particular types of advertising, such as print ads ortelevisioncommercials. Other agencies, especially larger ones, produce work for many types ofmedia (creating integrated marketing communications, or through-the-line (TTL)advertising). The "line", in this case, is the traditional marker between media that pay a(traditionally 15%) commission to the agency (mainly broadcast media) and the mediathat do not.

Role / Functions of an advertising agency

1. Planning the advertisement campaign2. Creation of the advertisement3. Execution or placing the advertisement in various media vehicles.4. Marketing and advertising Research
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5. Sales promotion

6. Public relations

STRUCTURE OF ADVERTISING AGENCIES

An agency, depending on its size, will likely have different departments which work onthe separate aspects of an account. An account manager or the account planningdepartment will coordinate the work of these departments to insure that all the client'sneeds are met. The departments within a full-service agency will typically include:

RESEARCH The research department will be able to provide clients with some detailsabout the prospective audience of the final advertising campaign, as well as informationabout the market for the product being advertised. This should include specific marketresearch which leads to a very focused ad campaign, with advertising directed to the idealtarget audience.

CREATIVE SERVICES Advertising agencies employ experts in many creative fields thatprovide quality, professional services that conform to the standards of the industry.Copywriters provide the text for print ads, and the scripts for television or radioadvertising. Graphic designers are responsible for the presentation of print ads, and theart department is responsible for providing the necessary images for whatever formatadvertisement is decided upon. Some agencies have in-house photographers and printers,while others regularly employ the services of contractors.

The individuals involved in creative services are responsible for developing theadvertising platform, which sets the theme and tone of the ad campaign. The advertisingplatform should draw upon specific, positive features of the product advertised and

extrapolate the benefits the consumer could expect to receive as a result of using theproduct. The campaign, through the development of this platform, should prove to beeye-catching, memorable, and in some way unique. The advertising that is rememberedby consumers is that which stands out from the rest; it is the advertising agency's (andspecifically the creative services department's) responsibility to provide this quality fortheir clients.

The final advertising provided by an agency should be fully developed and polished.Television commercials should be produced with professionalism; print ads should beattractive, informational, and attention-getting; radio spots should be focused and of highaudio quality.

MEDIA BUYING One of the services provided by advertising agencies is the carefulplacement of finished advertisements in various media, with an eye toward maximizingthe potential audience. The research search conducted by the agency will inform anymedia-buying decisions.

An agency will be able to negotiate the terms of any contracts made for placing ads inany of various media. A full-service agency will deal confidently with television, radio,


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newspapers, and magazines. Some agencies are also branching into direct mail marketingand point of purchase incentives; some agencies have expanded into Internet advertising;and some agencies will also place an ad in the local yellow pages, or utilize outdooradvertising or one of the more creative avenues of incidental advertising, such ascommercial signs on public buses or subways or on billboards.

The media-buying staff of an advertising agency will draw on specific research done forthe client, as well as on past experience with different media. Through this research andcareful consideration, the agency will develop a media plan: this should be a fullyrealized plan of attack for getting out the client's message. Some factors to be consideredin the development of the media plan include:

Cost Per Thousand: This refers to the cost of an advertisement per one thousand potentialcustomers it reaches. Media-buyers use this method to compare the various mediaavenues they must choose between. For example, television ads are considerably moreexpensive than newspaper ads, but they also reach many more people. Cost per thousand

is a straightforward way to evaluate how to best spend advertising dollars: if a newspaperad costs $100 and potentially reaches 2,000 customers, the cost per thousand is $50. If atelevision ad costs $1000 to produce and place in suitable television spots, and reaches apotential of 40,000 viewers, the cost per thousand is only $25.

Reach: This term is used when discussing the scope of an advertisement. The reach of anad is the number of households which can safely be assumed will be affected by theclient's message. This is usually expressed as a percentage of total households. Forexample, if there are 1,000 households in a town, and 200 of those households receive thedaily paper, the reach of a well-placed newspaper ad could be expressed as 20 percent:one-fifth of the households in the community can be expected to see the advertisement.

Frequency: The frequency of a message refers to how often a household can be expectedto be exposed to the client's message. Frequency differs widely between media, and evenwithin the same medium. Newspapers, for example, are read less often on Saturdays, andby many more households (and more thoroughly) on Sundays. Fluctuation like thisoccurs in all media.

Continuity: The media-buyer will also need to consider the timing of advertisements.Depending on the client's product, the ads can be evenly spread out over the course of aday (for radio or television advertisements), a week (for radio, television, or printadvertisements), or a month (radio, television, print, or other media). Of course, seasonalrealities influence the placement of advertisements as well. Clothing retailers may need torun more advertisements as a new school year approaches, or when new summermerchandise appears. Hardware stores may want to emphasize their wares in the weekspreceding the Christmas holiday. Grocery stores or pharmacies, however, might benefitfrom more evenly distributed advertising, such as weekly advertisements that emphasizethe year-round needs of consumers.


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MEDIA

Role of Media

Media has a vital role in the process of advertising communication. Effective advertising is

possible only if suitable media are available.

Some important roles of media:

i. It helps in communicating the message to the target customers.

ii. It generates awareness among audiences.

iii. It disseminates information among target customer.

iv. It help in building brand image

v. It works as reminder for the audiences.

vi. It provides the detailed information about the product

Television

Advantages:

High reach

High frequency potential

Low cost per contact

Quality creative opportunities

High intrusion value

Segmentation possibilities through cable

Disadvantages:

Clutter

Channel surfing during commercials

Short amount of copy

High cost per ad

Low recall

Television has always been a popular medium for consumer products. Recently, however,more business-to-business ads are appearing on television.

Television ratings are calculated as follows:

Rating = number of households turned to a program / total number of householdsin a market

Television share is calculated as follows:


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Share = number of households turned to a program / number of households with atelevision turned on

Radio

Advantages:

Lower cost per spot than television

Low production costs

Background music can match station format

High segmentation

Flexible

Intimacy which means listeners can develop a closeness to the DJs and otherradio personalities

Creative opportunities

Mobile

Disadvantages:

Short exposure time

Low attention

Few national audiences

Target duplication when several stations use the same format

Radio advertising is a low-cost option for a local firm. Radio remotes, where the stationbroadcasts from a business location, have been popular methods of attracting attention.For business-to-business advertisers, radio provides the opportunity to reach businessesduring working hours or while business people are in transit to or from work.

Outdoor

Out door media

Definitions:

Any outdoor sign that publicly promotes a product or service, such as billboards, moviekiosks, etc.

Any advertising done outdoors that publicizes your business's products and services.

Outdoor advertising includes various types of promotional displays, from highwaybillboards to transit posters and arena placement, all geared towards communicating amessage to the public.


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There are many kinds of outdoor advertising:

1. Billboards.2. Bus benches

3. Bus shelters4. Sporting events and arenas,5. Taxicabs, buses, railways, subways and wall murals

Advantages:

Large, spectacular ads possible

Able to select key geographic areas

Accessible for local ads

Low cost per impression

Broad reach

High frequency on major commute routes

Long life

Disadvantages:

Legal limitations

Short exposure time

Brief messages

Limited segmentation possible

Cluttered travel routes

Internet

The Internet is the fastest growing medium in history.

Advantages:

Creative possibilities

Short lead time to develop or modify ads

Simplicity of segmentation

High audience interest

Easier to directly measure responses

Disadvantages: Clutter on each site

Difficult procedures to place ads and buy space

Only reaches computer owners

Low intrusion value

Hard to retain interest of surfers


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Interstitial advertising, which interrupts a person on the Internet without warning, iscontroversial. An analysis of click-throughs suggests that the Internet may not be assuccessful as advertisers first thought. Few surfers are clicking on ads to go to theadvertisers Web site.

Magazines

Advantages:

High market segmentation

Target audience interest by magazine

High color quality

Special features available

Long life

Direct response techniques

Read during leisure time

Disadvantages:

Long lead time to ad appearance

Low flexibility

High cost

Higher clutter

Declining readership

Magazines have proliferated even as the problems of declining readership have occurred.Although business-to-business marketers are increasingly using other mediums, tradejournals and business magazines still remain an effective method of reaching their targetmarkets.

Newspapers

Advantages:

Priority for local ads

Excellent location for coupons and special-response features

High credibility

Strong audience interest

Longer copy/message possible Flexibility

Cumulative volume discounts

Disadvantages:

Internet classified competition

Major clutter (especially near Christmas)

Short life span


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Poor color quality

Limited audience (few under 25 years old)

Poor buying procedures

Most major city newspapers are now owned by chains such as Gannet.

For many smaller local firms, newspaper ads, billboards, and local radio programs are theonly viable advertising options.

A new threat to newspapers is the Internet. One strategy that newspapers can use tocounter the trend of classified advertisements moving to the Internet is to establish theirown Internet classified sites.

Newspapers have not been a major medium for business-to-business marketers primarilybecause of the local nature of newspapers.

Direct Mail

Advantages:

For consumer markets, it normally lands in the hands of the person who opensthe mail and that person usually makes a significant amount of familypurchasing decisions

Direct response programs, so results are quickly measured

Can be targeted to geographic market segments

Effective method of reaching business buyers

Disadvantages: Cost

Clutter

The nuisance factor

Reputation issues

Direct mail remains a favorite marketing tool for business-to-business marketers. Itprovides a method of bypassing gatekeepers when the names of actual members of thebuying center can be obtained.

Alternative Media

Other forms of advertising media include:

Leaflets, brochures, and carry home menus

Carry home bags from stores (grocery stores and retail outlets)

T-shirts and caps (promotional giveaways and products sold)

Movie trailers both in theaters and on home video rental products


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Small, freestanding road signs

Self-run ads in motel rooms on television, ashtrays, towels, ice chests, etc.

Yellow pages and phone book advertisements

Mall kiosks

Ads sent by fax

Ads shown on video replay scoreboards at major sports events In-house advertising magazines placed by airlines in seats

Walls of airports, subway terminals, bus terminals, and inside cabs andbusses (or transit advertising)

Also note: product placements in movies and television programs and guerilla marketing,or using low-cost, creative strategies to reach consumers.

MEDIA PLANNING

The media plan is the guide for media selection.

Media planning refers to the process of selecting media time and space to disseminateadvertising messages in order to accomplish marketing objectives.1

Media planning helps to determine which media to use be it television programs,newspapers, bus-stop posters, in-store displays, banner ads on the Web. It also tells whenand where to use media in order to reach your desired audience.

Developing the media plan:

Steps

1. Market analysis2. Establishment of media objectives3. Media strategy development and implementation4. Evaluation and follow-up.

1. Market analysis and target market identification

The market has to be analysed and target market should be identified.

The company must decide on the persons to whom they shall advertise. Target marketidentification can be done on the following parameters

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Geographic Demographic Psychographic Behavioral

2. Establishing Media Objectives

Media objectives are the goals for the media programme and should be limited to thosethat can be accomplished through media strategies.The various media objectives can be

-To create awareness-To remind-To reinforce-To persuade

3. Developing and Implementing Media Strategies

Having determined what is to be accomplished; media planners consider how to achievethese objectives.

Criteria considered in the development of media plans/strategies

a) The media mixb) Target market coverage

c) Schedulingd) Reach Vs frequencye) Gross rating point and TRPf) Budget considerations

a) The media mix:


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b) Target Market coverage

The media planner determines which target market should receive the most mediaemphasis.

Marketing coverage possibilities:

Full market coverage

Cost per ContactCost per Contact

FactorsInfluencingMedia MixDecisions

ReachReach

FrequencyFrequency

Audience SelectivityAudience Selectivity

Cost perCost per

ContactContact

Cost perCost per

ContactContact

ReachReachReachReach

FrequencyFrequencyFrequencyFrequency

AudienceAudience

SelectivitySelectivity

AudienceAudience

SelectivitySelectivity

The cost of reaching onemember of the target market.

The cost of reaching onemember of the target market.

The number of target consumersexposed to a commercial at least

once during a time period.

The number of target consumersexposed to a commercial at least

once during a time period.

The number of times an individualis exposed to a message during a

time period.

The number of times an individualis exposed to a message during a

time period.

The ability of an advertisingmedium to reach a precisely

defined market.

The ability of an advertisingmedium to reach a precisely

defined market.


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Partial market coverage

Coverage exceeding target market.

c) Scheduling

The primary objective of scheduling is to time promotional efforts so that they willcoincide with the highest potential buying times. The scheduling methods are2:

Continuous Flighting Pulsing

Media Scheduling

Continuous Flighting Pulsing

The most comprehensive study on scheduling indicates that continuity is moreeffective than flighting. Why? Because it is important to get exposure to themessage as close as possible to when the consumer is going to make the purchasedecision.

Continuous Schedule

Used for advertising for food products, laundry detergent, or other products consumer onan ongoing basis without regard for seasonality.

Flighting

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The flight scheduling approach alternates advertising across months, with heavyadvertising in certain months and no advertising at all in other months. For example, aboard game maker like Parker Brothers might concentrate its advertising in the fall whenit knows that many people buy board games as gifts for the holidays.3

Pulsing

Pulse scheduling combines the first two scheduling methods, so that the brand maintainsa low level of advertising across all months but spends more in selected months. Forexample, an airline like United Airlines might use a low level of continuous advertisingto maintain brand awareness among business travelers. United Airlines might also haveseasonal pulses to entice winter-weary consumers to fly to sunny climes.

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How do media planners select among continuity, flight, and pulse schedulingapproaches? The timing of advertising depends on three factors: seasonality, consumers'product purchase cycle, and consumers' interval between decision-making andconsumption.

The first, and most important, factor is sales seasonality. Companies don't advertise furcoats in summer and suntan lotions in winter. Likewise, some products sell faster aroundspecific holidays, such as flowers on Mother's Day, candy on Halloween, and ornamentsaround Christmas. Companies with seasonal products are more likely to choose flightscheduling to concentrate their advertising for the peak sales season. Other goods,however, such as everyday products like milk and toothpaste, may lack a seasonalpattern. Everyday goods may be better served by a continuity approach. Media plannerscan use a breakdown of sales by month to identify if their brand has seasonal fluctuations,which can serve as a guide for the allocation. They can allocate more money to high-salesmonths and less to low-sales months. 4

The second factor that affects when advertising is scheduled is the product purchasecycle: the interval between two purchases. Fast-moving consumer goods such as bread,soft drinks and toilet paper probably require continuous weekly advertising in acompetitive market to constantly reinforce brand awareness and influence frequently-made purchase decisions. In contrast, less-frequently purchased products such as carpetcleaner or floor polisher may only need advertising a few times a year.

A third factor that affects media scheduling is the time interval between when thepurchase decision is made and when a product or service is actually bought and

consumed. For example, many families who take summer vacations may plan their tripsmonths before the actual trips. That is, they make purchase decision in advance. Thus,

travel industry advertisers will schedule their ads months before the summer, as we sawin the Wyoming example. Destination advertising has to be in sync with the time ofdecision making, instead of the actual consumption time.

New product launches usually require initial heavy advertising to create brand awarenessand interest. The launch period may last from a few months to a year. As mentionedearlier, P&G launched its Gillette six-bladed Fusion shaving system with advertising onSuper Bowl XL, the most expensive form of advertising in the world. If consumers likethe product, then personal influence in the form of word-of-mouth or market force (brandvisibility in life and media coverage) will play a role in accelerating the adoption of anew brand. Personal influence and market force are "unplanned" messages, which oftenplay an important role in new product launches. Media planners should take advance ofthese "unplanned" messages in a new product launch campaign.

d) Reach Vs Frequency

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(Details discussed in subsequent pages)

e) GRPs and TRPs

(Details discussed in subsequent pages)

f) Budget considerations:

One of the important decisions in the development of media strategy is cost estimatingAdvertising and promotional costs can be categorized in two ways:The absolute cost of the medium or vehicle is the actual cost required to place themessage.Relative cost refers to the relationship between the price paid for the advertising time orspace and the size of the audience delivered; it is used to compare media vehicles.

Determining relative cost of media

Cost per thousand (CPM) (Details discussed in subsequent pages)

Daily Inch rateFor news papers, cost effectiveness is based on the daily inch rate,which is the cost per column inch of the paper.

4. Evaluation and follow-up

All plans require some evaluation to assess their performance. The media plan is noexception. We have to assess whether the objectives which were set were attained or not.

Media Terminology

Medium (Media Class)the general category of available delivery systems Broadcast media (radio, TV) Print media (newspapers, magazines) Direct mail

Out-of-home Support Media (i.e. directory advertising)

Media Vehiclethe specific carrier within a medium Womans Day magazine The Amazing Race on CBS ESPN Radio Dan Patrick Show


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Reacha measure of the number of different audience members exposed at leastonce to a media vehicle in a given period of time (usually four weeks); expressedas a percent.

Ratingestimated percentage of the universe that is tuned to a broadcast programor exposed to a print medium at once. Ratings are expressed as a percent.

Frequencyrefers to the number of times the receiver is exposed to the mediavehicle in a specified period Gross Impressionsthe total exposures of the audience to an advertisement

Relative Costs

CPM (Cost Per Thousand)

Allows to marketers to compare all media classes and vehicles using the sameyardstick

Used for all mediums, but primarily print M stands for 1,000 Should not be the only consideration when selecting media

Measures cost efficiency, not effectiveness Be careful of intermedia comparisons

5

Relative Costs

CPM (Cost Per Thousand)

Circulaton

000,1cost)(absolutespaceadofCostCPM

=

ratingProgram

000,1timeofunit1ofCostCPM

=

Newspaper/Magazine

Television

Media Selection

Television

HUT (Households Using Television)Households Using Television for five or moreminutes as a percentage of all homes with a TV (also known as TV Households)

100)HouseholdsTV(AllEstimateUniverse

in UseTVSetswithHouseholdsofNo.HUT =


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RatingEstimated percentage of the universe of TV households (or otherspecified group) tuned to a program at once. Ratings are expressed as a percent.

Rating PointA value equal to one percent (one rating) of a population oruniverse. The universe of all U.S. television households is 111,348,110.

GRP (short forGross Rating Point) is the sum of ratings achieved by a specificmedia vehicle or schedule. It represents the percentage of the target audiencereachedby an advertisement.5 If the advertisement appears more than once, theGRP figure represents the sum of each individual GRP. In the case of a TVadvertisement that is aired 5 times reaching 50% of the target audience, it wouldhave 250 GRP = 5 x 50% -- ie, GRPs = % reach x frequency.6

ShareThe percent of households (or persons) using television who are tuned to aspecific program, station or network in a specific area at a specific time. 7

or

Media Selection

Radio

Measurement Tools Use AQH(Average Quarter Hour) Personsthe estimated average

number of persons who listened to a station for a minimum of five minuteswithin a selected daypart. The estimate is the average of the reportedlistening for the total quarter-hours the station was on the air during theselected daypart. This estimate is expressed in hundreds (00).

AQH (Average Quarter Hour) RatingsThe Average Quarter-HourPersons estimate expressed as a percentage of the appropriate estimatedpopulation.

5 Retrieved from http://www.topblogarea.com/sitedetails_19523-2.html

6Retrieved from http://www.urbandictionary.com/define.php?term=GRP7 Retrieved from http://www.stateofthemedia.org/2010/local_tv_glossary.php

100)HouseholdsTV(AllEstimateUniverse

ProgramViewingHouseholdsRating =

100TVUsingHouseholdsofNumber

ProgramViewingHouseholdsShare =

100)TelevisionUsings(HouseholdHUT

RatingShare =
http://en.wikipedia.org/wiki/Target_audiencehttp://en.wikipedia.org/wiki/Reach_(advertising)http://en.wikipedia.org/wiki/Reach_(advertising)http://en.wikipedia.org/wiki/Advertisementhttp://en.wikipedia.org/wiki/TVhttp://en.wikipedia.org/wiki/Target_audiencehttp://en.wikipedia.org/wiki/Reach_(advertising)http://en.wikipedia.org/wiki/Advertisementhttp://en.wikipedia.org/wiki/TV


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AQH (Average Quarter Share-The Average Quarter-Hour Personsestimate for a given station expressed as a percentage of the Total AverageQuarter-Hour Persons estimate within a selected daypart.

CumeThe estimated number ofdifferentpersons who listened to astation for a minimum of five minutes in a quarter-hour of a selected

daypart. (Cume estimates may also be referred to as cumulative,unduplicatedorreach estimates). This estimate is expressed in hundreds(00).

Selection of Media Vehicles

Media buyers can use tools, like the one shown below, to make the process of selecting amedia vehicle easier. To use the selection tool shown in Figure below, develop a list ofthe potential vehicle candidates you are considering. Then, select several quantitative andqualitative characteristics that are relevant to reach and frequency considerations, such as

quantitative characteristics like CPM or GRP, and qualitative characteristics likereputation and added value. Next, make a table that lists the vehicle candidates in rowsand the characteristics in columns. Now you can rate each of the characteristics of eachvehicle on a scale of 1 to 3. Then add all the numbers in each row, dividing by the totalnumber of characteristics (columns) to arrive at the rating for each vehicle. The bestmedia vehicles to choose are those with the highest index numbers. In the Figure, Vehicle2 and Vehicle 3 are the best ways to reach the target audience.

Figure: Selection of Media Vehicle Based on Quantitative and Qualitative

Characteristics

Qn1 Qn2 Qn3 Ql1 Ql2 Ql3 Index

V1 3 2 1 3 1 1 1.8

V2 1 2 2 2 2 3 2.0

V3 1 3 3 1 1 3 2.0

V4 1 1 2 1 2 1 1.3


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Positioning

Positioning is the act of designing the companys offering and image to occupy adistinctive place in the mind of the target market.8

As per Ries and Trout Positioning is not what you do to a product. Positioning is whatyou do to the mind of the prospect

Often a product is positioned in the following ways by a company-

Best quality, best performance, best service, best styling, lowest price, safest, fastest,more reliable etc

Positioning begins with actually differentiating the companys marketing offer so that it

will give consumers a superior value.

Differentiation is done on the following parameters

I. Product differentiation

A. Featurescharacteristics that supplement the products basic function

B. Performance qualitythe level at which the products primarycharacteristics operate

C. Conformance qualitythe degree to which all the produced units areidentical and meet the promised target specifications

D. Durabilitymeasure of the products expected operating life under naturalor stressful conditions

E. Reliabilitya measure of the probability that a product will notmalfunction or fail within a specified period

F. Repairabilitya measure of the ease of fixing a product that malfunctionsor fails

G. Stylethe products looks and feel to the buyer

H. Design: the integrating forcethe totality of features that affect how aproduct looks and functions in terms of customer requirements

II. Services differentiationA. Ordering ease

B. Deliveryspeed, accuracy, and care

C. Installationmaking a product operational

D. Customer traininginstruction on proper and efficient use

E. Customer consultingdata, information systems, and advising services

8Retrieved fromhttp://lsb.scu.edu/%7Ekfox/KotlerChapters/CH19.html
http://lsb.scu.edu/~kfox/KotlerChapters/CH19.htmlhttp://lsb.scu.edu/~kfox/KotlerChapters/CH19.htmlhttp://lsb.scu.edu/~kfox/KotlerChapters/CH19.html


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F. Maintenance and repairkeeping products in good working order

G. Miscellaneous servicesfinding other ways to add value

III. Personnel differentiation

A. Competence

B. CourtesyC. Credibility

D. Reliability

E. Responsiveness

F. Communication

IV. Channel differentiation

V. Image differentiation

A. Identity versus imagecompany intentions versus consumer perceptions

B. Symbolslogos, objects, people, colors

C. Written and audiovisual mediato convey company or brand personality

D. Atmospherephysical space in which the organization produces ordelivers its products

E. Eventssponsorships

Choosing a Positioning strategy

The positioning task consists of the following steps:

1. Identifying possible competitive advantages.

2. Choosing the right competitive advantages3. Selecting an overall positioning strategy.

1. Identifying possible competitive advantages.

Competitive advantage is achieved through Product differentiation, Servicesdifferentiation, Channel differentiation, Personnel differentiation, and Imagedifferentiation.A company must undertake the above differentiations and find out the areas inwhich it has advantage over its competitors.

2. Choosing the right competitive advantagesA company in order to choose the right competitive advantages must decide on:How many differences to promote?Which differences to promote?

A difference is worth establishing if it satisfies the following criteria:

Important, Distinctive, Superior, communicable, Preemptive, Affordable andprofitable.


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3. Selecting an overall positioning strategy.

Different positioning strategies

a) Using product characteristics or customer benefits

Probably the most used positioning strategy is to associate an object with aproduct characteristics or customer benefit. Toyota and Honda haveemphasized economy and reliability and have become in the number of unitssold.b) Price- benefit approach

c) Use or application approach

Another way to communicate an image is to associate the product with an useor application. Campbells soup for many years positioned itself as a lunchtime product and used noon time radio extensively.

d) Product user approach

Another positioning strategy is to associate a product with a user or a class ofusers. Nike used Michael Jordan for its products.e) Product-class approach

Some products need to make critical positioning decisions that involveproduct class associations.For example, Maxim freeze-dried coffee, the first one in market, needed toposition itself with respect to regular and instant coffee.f) Cultural symbol approach

Many advertisers use deeply entrenched cultural symbols to differentiate theirbrand from competitors.For example, Marlboro cigarettes choose the American cowboy as the centralfocus to help differentiate its brand from competitors and developed theMarlboro Man.g) Competitor approach.

In most positioning strategies, an explicit or implicit frame of reference is oneor more competitors.Perhaps the most famous positioning strategy of this type was the Avis Weare number two, we try harder campaign. The message was that Hertzcompany was so big that they did not need to work hard.


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Types of Advertising Appeals

The primary appeals are:

Fear

Humor Music

Rationality

Emotions

Scarcity

Fear

Fear appeals are used because they work. Fear increases both the viewers interest in anadvertisement and the persuasiveness of that ad.

When using fear, a key decision is how strong to make the appeal. Most advertisersbelieve a moderate level of fear will be the most effective.

Humor

Humor is effective in both getting attention and keeping it, which helps the ad cutthrough clutter.

Humor is used in about 30% of all advertisements.

The success of h

adv & imc (notes)

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