chapter i intro to advertising

8/4/2019 Chapter I Intro to Advertising

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Introduction to advertisements

S. Ajit


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Introduction to advertisements

S. Ajit

Big Business (persuasiveness, cost effectiveness, mass

communication, brand bulding)

Growth of ad industry directly related to the level of

business activity and the health of its economy

Before liberalization and after liberalization [Bajaj Auto,

Maruti Udyog, ITC, Raymond etc]

Factors new technologies, new media & media vehicles,

increase in middle class income and aspirations

Efficient and effective communication with the target

audience can be the difference between marketing success

and failure


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Communication

The exchange of ideas, between a sender and a receiver


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Communication Process in Promotion- an example

Source Encoding Media Receiver Decoding Feedback

HUL ad for

Surf Excel

Audio &

Video

TV

Commercial

Housewives &

also everyoneat home

Consumers

learning aboutthe productsstain removingcapacity

Purchase of

Surf excelsales rise up

S. Ajit


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Marketing

Communication

Continuous interactionContinuous interaction between sellers and potential buyer

or others in the channel to attract potential buyers and

influence their attitudes and behaviorsinfluence their attitudes and behaviors.

The main job of promotion is to tell target customers that:

the right Productright Product is available,

at the right Place,right Place, and

at the right Priceright Price

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The Role of Marketing Communications

InformingPersuading

Reminding

S. Ajit


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Basic Promotion Methods

TargetMarketTargetMarket

PricePricePromotionPromotionPromotionPromotionPlacePlaceProductProduct

PersonalPersonal

SellingSelling

PersonalPersonalSellingSellingAdvertisingAdvertisingAdvertising

Advertising Public RelationsPublic Relations

& Publicity& Publicity

Public RelationsPublic Relations

& Publicity& Publicity

SalesSales

PromotionPromotion

SalesSales

PromotionPromotion

DirectDirect

MarketingMarketing

DirectDirect

MarketingMarketing


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History of Advertising

S. Ajit

Wall or rock painting for commercial advertising - Indian rock art - 4000 BC

About 3000 BC clay tablet inscription for an ointment dealer, a shoemaker- Egypt announcement for reward for the return of runaway slaves

Before the invention of printing machine (about 1438 AD) by Gutenberg Trademarks, Signs, Town criers

As education became an apparent need and reading, as well as printing,developed , advertising expanded to include handbills.

First known print ad in English (about 1488 AD) rules for the guidance of

clergy at Easter put on church doors

First circulated ad Germany (about 1525 AD) drug (medicine)

First Ad in America 1704 Capture of a thief

During 17th

century weekly newspapers carried ad for coffee, chocolate, tea


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1806 18951890
http://en.wikipedia.org/wiki/File:Get_fat3.jpghttp://en.wikipedia.org/wiki/File:Edo_period_advertising_in_Japan.jpghttp://en.wikipedia.org/wiki/File:Cocacola-5cents-1900_edit1.jpg


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History of Modern Advertising

S. A it

Mid 19th century Volney B Palmer first ad agent sold space for newspapers

J Walter Thompson ad executive had contracts with 25 of the best Americanmagazines Inventor or Modern Ad Agency

Claude C Hopkins reason why approach

Theodore McManus incorporated art, striking layout and elegant writing

Growth in advertising happened after second world war - Competition, efforts to

rebuild nations and economies

Till 1950s creativity was non-existent, all ads were me too ads

Rosser Reeves of Ted Bates Agency originated the concept of USP

India - J Walter Thompson (HTA) and D J Keymer (Ogilvy & Mather) 1950s


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Top Global Ad Spenders

S. Ajit

Rank Company Ad spending1 Procter & Gamble Co. $9.73 billion

2 Unilever $5.72 billion

3 L'Oreal $4.04 billion

4 General Motors Co. $3.67 billion

5 Toyota Motor Corp. $3.20 billion

6 Coca-Cola Co. $2.67 billion

7 Johnson & Johnson $2.60 billion

8 Ford Motor Co. $2.45 billion


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Top Ad spenders According to latestNielsen report, India registered 19 % growth compared to 3rd quarter of 2009 as compared

to average Asia Pacific growth of 9 %.

Television, Newspapers & Magazines Across 12 Asia Pacific Markets

Q3 2010($US 000s)

% Change with Q3 09

China 25,153,783 7%

Indonesia 2,263,231 15%

Hong Kong 2,193,995 16%

India 1,880,451 19%

Australia 1,706,048 13%

South Korea 1,027,006 3%

Philippines 907,100 12%

Thailand 619,296 12%

Malaysia 517,601 10%

New Zealand 381,006 6%

Singapore 301,154 6%

Taiwan 171,439 19%

Total for Q3 2010 37,122,111 9%
http://blog.nielsen.com/nielsenwire/media_entertainment/confident-asia-pacific-region-sees-9-percent-ad-spend-growth/http://blog.nielsen.com/nielsenwire/media_entertainment/confident-asia-pacific-region-sees-9-percent-ad-spend-growth/


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Top 10 indian ad spenders

Advertising spends for the year 2008

1. Hindustan Unilever

2. Reckitt Benckiser (India) Ltd.

3. ITC Ltd

4. PepsiCo

5. Bharti Airtel Ltd

6. Coca-Cola India Ltd.

7. Procter & Gamble products

8. Colgate Palmolive India Ltd

9. Nokia Corporation

10. Johnson & Johnson Ltd


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Defining Advertising

Any paid form of non- personal presentation and promotion of

ideas, goods and services by an identified sponsor

Any paid form: advertisers need to buy space or time for an ad

message (exceptions)

Non personal presentation & promotion: no personalinteraction, delivered through media

Ideas, goods & services: Automobile, soft drinks, banks, anti-

smoking, AIDS awareness, donations

Identified sponsor: sponsor of ideas or opinions is known, henceauthenticated

What can be advertised?

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Informative advertising Promotion that seeks to develop initial

demand for a good, service, organization, person, place, idea, orcause.

Persuasive advertising Promotion that attempts to increase

demand for an existing good, service, organization, person, place,

idea, or cause. Reminder advertising Advertising that reinforces previous

promotional activity by keeping the name of a good, service,

organization, person, place, idea, or cause before the public.

Advertisers coordinate advertising objectives with the products

stage in the product life cycle.

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April 28, 2010

By research firm Millward Brown Optimor.

S. Ajit


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Objectives of Advertising

Trial - Objective is to encourage customers to make an initial purchase -

Companies will typically employ creative advertising strategies- Without the first trial of a product by customers, there will not be any repeat

purchases.

Continuity - strategy to keep current customers using a particular product

- to build consumer loyalty.

Brand Switching - to switch from competitors brands to their brands. -strategy is to compare product price or quality in order to convince customers

to switch to its product brand.

Switchback - to get back former users of their product brand.

- A company might highlight new product features, price reductions, or

other important product information in order to get former customers of itsproduct to switchback.


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The Functions of Advertising

Builds awareness of products and brands

Creates a brand image

Provides product and brand information

Persuades people Provides incentives to take action

Provides brand reminders

Reinforces past purchases and brand experiences


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Advertising and

Marketing

Communication

Economy Society

The process a business uses to satisfy

consumer needs by providing goods

and services

Target Market

Market positioning (La belle, VLC) Market differentiation (Everest Masala)

Brand building Competitive advantage


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Marketing

Communication

Economy Society

Can reach a mass audience

Introduces products

Explains important changes

Reminds and reinforces

Persuades

Advertising and


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Marketing

Communication

Economy Society

Moves from being informational to

creating demand

Advertising is an objective means for

providing price-value information, thereby

creating a more rational economy

Advertising and


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Marketing

Communication

Economy Society

Informs consumers about innovations

and issues

Mirrors fashion and design trends

Teaches consumers about new products

Helps shape consumer self-image

Advertising and


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Types of Advertising

Target audience Consumer

Industrial

Geographic coverage National

Regional

Local

International

Media Used Print

Electronic: Radio, TV, Internet

Outdoor (PoP, hoardings)

Covert Advertising Advertising in

Movies (In-film)

Surrogate Advertising Advertising

Indirectly

Word-of-mouth

Aim Information

Awareness creating

Public service


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Response Models

AIDA is an acronym used in marketing that describes a common list

of events that are very often undergone when a person is selling aproduct or service:

A - Attention (Awareness): attract the attention of the customer.

I - Interest: raise customer interest by focusing on and

demonstrating advantages and benefits (instead of focusing on

features, as in traditional advertising) D - Desire: convince customers that they want and desire the product

or service and that it will satisfy their needs.

A - Action: lead customers towards taking action and/or purchasing.

Nowadays some have added another letter to form AIDA(S):

S - Satisfaction - satisfy the customer so they become a repeat

customer and give referrals to a product.

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Adoption process, and AIDA Model

S. Ajit

Promotion Objectives Adoption Process AIDA Model

Informing

Awareness

Interest

Attention

Interest

Persuading

Evaluation

Trial Desire

RemindingDecisionPurchase Action


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Response Models -Hierarch of Effects Model

Cognitive Stage Awareness

Knowledge

Affective Stage Liking

Preference

Conviction

Behavioural Stage Purchase

S. A it


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Response Models - Innovation Adoption Model

Cognitive Stage Awareness

Affective Stage Interest

Evaluation

Behavioural Stage Trial

Adoption

S. Ajit


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Adoption Stages


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This newThis newidea is goodidea is good

Our brand isOur brand isbestbest

Our brand isOur brand isbetter, reallybetter, really

Lets tellLets tellthose whothose who

still want ourstill want ourproductproduct

Promotion Varies Over the Life Cycle


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AIDA Model: Impact of promotional tools on consumer response

Personal SellingAdvertising

Public relations

and publicity

Sales

promotion

Eff

ec

tiv

eness

Awareness/Attention Interest Desire Action

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Provides

Information

Provides

Information

Creates Jobs and

Helps New FirmsEnter a Market

Creates Jobs andHelps New FirmsEnter a Market

Encourages

A Higher StandardOf Living

EncouragesA Higher Standard

Of Living

PromotesCompetition in

The Marketplace

PromotesCompetition in

The Marketplace

Advertising and Promotion: Two Viewpoints

Proponents Argue ThatAdvertising and Promotion:

Proponents Argue ThatAdvertising and Promotion:

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Creates Needs andWants AmongConsumers

Creates Needs andWants AmongConsumers

PromotesMaterialism,

Insecurity andGreed

PromotesMaterialism,

Insecurity andGreed

Is MorePropaganda

Than Information

Is MorePropaganda

Than Information

Advertising and Promotion: Two Viewpoints

Critics Argue That Advertising andPromotion

Critics Argue That Advertising andPromotion

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Not All IssuesCan Be

Regulated

Not All IssuesCan Be

Regulated

A Marketing orPromotion ActionMay Be Legal but

Not ConsideredEthical

A Marketing orPromotion ActionMay Be Legal but

Not ConsideredEthical

Marketers MustMake DecisionsRegarding the

Appropriatenessof Their Actions

Marketers MustMake DecisionsRegarding the

Appropriatenessof Their Actions

Ethics in Advertising and Promotion

Ethics: Moral principles and values thatgovern the actions of and individual or group.

Ethics: Moral principles and values thatgovern the actions of and individual or group.

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Many Do Not Perceive Ads As Honestor Believable

Many Do Not Perceive Ads As Honestor Believable

Abuses Involving Sales PromotionsSuch As Contests, Premium OffersAbuses Involving Sales PromotionsSuch As Contests, Premium Offers

Unethical And/or Deceptive Practices

Involving Mail Order, Telemarketingand Other Forms of Direct Marketing

Unethical And/or Deceptive Practices

Involving Mail Order, Telemarketingand Other Forms of Direct Marketing

Internet Scams and AbusesInternet Scams and Abuses

Advertising as Untruthful or Deceptive

S. Ajit


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Objections toAdvertising

Of Certain Products

Objections toAdvertising

Of Certain Products

Use of SexualAppeals And/or

Nudity

Use of SexualAppeals And/or

Nudity

Advertising as Offensive or in Bad Taste

Use of ShockAds

Use of ShockAds

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Advertising and Children

Children's TVWatching Behavior

Children's TVWatching Behavior

Children between ages2-11 watch on average21.5 hours of TV perweek and may see

22,000 commercialsper year

Children between ages2-11 watch on average21.5 hours of TV perweek and may see

22,000 commercialsper year

Television is an

important source of

information for

children about products

Television is an

important source of

information for

children about products

S. Ajit

P ti Ad ti i t Child


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They Lack theKnowledge and

Skills to Critically

EvaluateAdvertising Claims

They Lack theKnowledge and

Skills to Critically

EvaluateAdvertising Claims

They CannotDifferentiate

Between Programsand Commercials

They CannotDifferentiate

Between Programsand Commercials

Children Must LearnThrough theSocialization

Process

Children Must LearnThrough theSocialization

Process

Perspectives on Advertising to Children

Consumer Advocates Argue ThatChildren Are Vulnerable to

Advertising Because:

Consumer Advocates Argue ThatChildren Are Vulnerable to

Advertising Because:

While Marketers Argue That:While Marketers Argue That:

S. Ajit

Ad ti i d St t i


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Portrayal of Women toReflect Their Changing

Role in Society

Portrayal of Women to

Reflect Their ChangingRole in Society

Portrayal ofWomen AsSex Objects

Portrayal of

Women AsSex Objects

Stereotyping ofMinorities

Stereotyping ofMinorities

GenderStereotypingGenderStereotyping

Advertising and Stereotyping

Portrayal ofThe Elderly

Portrayal ofThe Elderly

StereotypingStereotyping

S. Ajit

E i I t f Ad ti i


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Effects on Consumer Choice Differentiation Brand Loyalty


Advertising as an expense thatincreases the cost of products

Advertising as an expense thatincreases the cost of products

Effects on Competition Barriers to entry Economies of scale






Economic Impact of Advertising

S. Ajit


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Ad agencies in chennai

RedifussionAdvertisingLtd

maps.google.co.in - 044 28585406

OgilvyandMatherAdvertising

Rukmani Lakshmipathi Road, EgmoreChennai, Tamil Nadu

KannanAdvertisingService P Ltd www.kasindia.com - 044 28194422

WOCAdvertisingEnterprize

www.woc.in - 044 42146465

FingerprintsAdvertising

fingerprintscreative.com - 044 42140067
http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=ad+agencies+in+chennai&fb=1&gl=in&hq=ad+agencies&hnear=Chennai,+Tamil+Nadu&cid=9518733364921584421http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=ad+agencies+in+chennai&fb=1&gl=in&hq=ad+agencies&hnear=Chennai,+Tamil+Nadu&cid=9518733364921584421http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=ad+agencies+in+chennai&fb=1&gl=in&hq=ad+agencies&hnear=Chennai,+Tamil+Nadu&cid=9518733364921584421http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://www.kasindia.com/http://www.kasindia.com/http://www.kasindia.com/http://www.woc.in/http://www.woc.in/http://www.woc.in/http://fingerprintscreative.com/http://fingerprintscreative.com/http://fingerprintscreative.com/http://fingerprintscreative.com/http://www.woc.in/http://www.woc.in/http://www.woc.in/http://www.kasindia.com/http://www.kasindia.com/http://www.kasindia.com/http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=Ogilvy+&+Mather+in+chennai&fb=1&gl=in&hq=Ogilvy+&+Mather&hnear=Chennai,+Tamil+Nadu&cid=9385529961949221519http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=ad+agencies+in+chennai&fb=1&gl=in&hq=ad+agencies&hnear=Chennai,+Tamil+Nadu&cid=9518733364921584421http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=ad+agencies+in+chennai&fb=1&gl=in&hq=ad+agencies&hnear=Chennai,+Tamil+Nadu&cid=9518733364921584421http://maps.google.co.in/maps/place?hl=en&um=1&ie=UTF-8&q=ad+agencies+in+chennai&fb=1&gl=in&hq=ad+agencies&hnear=Chennai,+Tamil+Nadu&cid=9518733364921584421


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Ad agencies

Ogilvy & Mather

Fevicol moochwali

Vodafone zoo zoo

Bajaj Pulsar fastest indian


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Vodafone ZOO ZOO

Ad i


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Ad agencies

JWT - HTA

Pepsi

goodknight

Ad Agencies


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Ad Agencies

Lowe Lintas

Idea cellular walk the talk and use mobile tosave trees

Havells save energy, wash ur sins

DLF IPL3 first week

Ad Agency


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Ad Agency

McCann Erickson Happydent wave gum

Ad A


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Ad Agency

Mudra Air India

LIC

Dabur

Bank of Baroda

Ad Agency


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Ad Agency

RK Swamy BBDO

Orient fans


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Ad Agency

HUL, for example, works with Lowe, O&Mand McCann Erickson.

Coca cola O&M, McCann Erickson


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Coke or Pepsi - Media Vehicle


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Ad agency

Plays a major role of closing the distance between the

advertiser & the media. It offers numerous services to the

advertiser


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Role of Advertising Agencies in Business

Market

Advertising agencies work on

advertising strategy and campaigns,

prepare copy and layouts, study markets,

select media, and

carry out actual physical production of advertisement and

its placement in selected media.


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Purpose of advertising agency

Advice & counsel on marketing strategy

Advice & counsel on advertising & media strategy & tactics

Prepare & develop print , outdoor & electronic advertising

Carryout collateral designs of various items such as displaymaterial, pop material & other promotional material

Help& counsel on sales promotion & other communicationtask


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How to select an advertising agency

Media related information Percentage on

TVNational press

other press Radio Outdoor & transportation Sales promotion Other significant media services


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Agency Services

Account services

The link between agency and client

Managed by the Account Executive

Marketing services

Research department may design and executeresearch programs

Media department may analyze, select and contractmedia resources

Creative services Creation and execution of ads

Copywriters, artists, other specialists


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Types of Ad Agencies

In House

Full Service

Creative Boutique

Interactive


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In- house agency

Not every organization can afford to have all the

specialist- creating, producing & placing ads

Cost effective way- get trained professionals

Good idea of what works, what doesnt and why


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In-House Agencies

More

Control

More

Control

Cost

Savings

Cost

Savings

Better

Coordination

Better

Coordination

Less

Objectivity

Less

Objectivity

Less

Experience

Less

Experience

Less

Objectivity

Less

Objectivity

Less

Experience

Less

Experience

Better

Coordination

Better

Coordination

More

Control

More

Control

Cost

Savings

Cost

Savings

The

In-house

Agency

The

In-house

Agency

+ Positive+ Positive - Negative- Negative

Less

Flexibility

Less

Flexibility


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Coca Colas in-house boutique created this Ad

F ll S i A i


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Creating advertisingCreating advertising

Planning advertisingPlanning advertising

Producing

advertising

Producing

advertising

Performing researchPerforming research

Selecting mediaSelecting media

Sales promotion andtraining


Strategic marketplanning


Trade show

materials

Trade show

materials

Package designPackage design

Planning advertisingPlanning advertising

Creating advertisingCreating advertising

Producing

advertising

Producing

advertising

Performing researchPerforming research

Selecting mediaSelecting media





Trade show

materials

Trade show

materials

Package designPackage design

Full-Services Agencies

Full Range ofMarketingCommunication andPromotion Services

Full Range ofMarketingCommunication andPromotion Services

Non-Advertising

Services

Non-Advertising

ServicesPublic relations andpublicity

Public relations andpublicity

Typical Full Service Agency Organization


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Typical Full-Service Agency Organization

Writersrt Directors

Traffic

TVProduction

Traffic

PrintProduction

VP CreativeServices

Account

Executive

AccountSupervision

VP AccountServices

Media Research SalesPromotion

VP MarketingServices

PersonnelAccountingFinance

OfficeManagement

VP Managementand Finance

President

Board ofDirectors

Services Provided by Agencies


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Services Provided by Agencies

Agency ServicesAgency Services

The link betweenagency and client

Managed by theAccount Executive

* the clientsmarketing needs

* strategydevelopment

The link betweenagency and client

Managed by the

Account Executive* the clientsmarketing needs

* strategydevelopment

Researchdepartment maydesign and execute

research programsMedia departmentmay analyze, selectand contract mediaresources

Researchdepartment maydesign and executeresearch programs

Media departmentmay analyze, selectand contract mediaresources

Creation andexecution of ads

Copywriters,artists, otherspecialists

Creation andexecution of ads

Copywriters,

artists, otherspecialists

Marketing

Services

Marketing

ServicesAccount ServiceAccount Service Creative ServicesCreative Services

Marketing

Services

Marketing

ServicesAccount ServiceAccount Service


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Media department

The media department has two main functions - planning

and buying.

sThe planning group handles more strategic marketing andmedia issues.

s The buying group handles media negotiations and

implementation.


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interpret market environment

gather and analyze research data.

primary and secondary techniques

determine consumer needs/perceptions understand problems

advise how ads can meet strategic goals

help find solutions

Research Department


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ArtistsArtists

Ad Agencies Have Skilled Specialists

WritersWriters ResearchersResearchers

PhotographersPhotographers Media AnalystsMedia Analysts Other SkillsOther Skills


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Creative Boutiques

Provide only creative services

Creative Boutique restricts its services to developinnovative concepts & message ( not offer agency

service+ Media planning & research) Other functions provided by the internal client

departments

Full-service agencies may subcontract with

creative boutiques


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The Role of Creative Boutiques

Creative

Boutiques

Creative

BoutiquesProvide Only Creative ServicesProvide Only Creative Services

Full-Service Agencies May Subcontract

With Creative Boutiques



Provide Only Creative ServicesProvide Only Creative Services





Other Functions Provided by the

Internal Client Departments

Other Functions Provided by the

Internal Client Departments

Interactive Agencies


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Interactive Agencies

AudioAudio

Special EffectsSpecial Effects

VideoVideo

WebBanner Ads

WebBanner Ads

KiosksKiosks

Web SitesWeb Sites

CD-ROMsCD-ROMs

Special EffectsSpecial Effects

VideoVideoAudioAudio

KiosksKiosksCD-ROMsCD-ROMs

Web SitesWeb SitesWebBanner Ads

WebBanner Ads

Interactive Media

Creation

Interactive Media

Creation

Digital Content Digital Content

AnimationAnimation

Search Engine marketing


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Media Buying Agencies

Media planning, buying & placement

Specialize in buying media, especially broadcast time

Agencies and clients develop media strategy

Media buying organizations implement the strategyand buy time and space


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Why they change agencies

More Pay major source of tension Changes in

Strategy

Management

New product New business

New competitor

Why Agencies Lose Clients


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Why Agencies Lose Clients

Poor

performance

Poor

communicationsUnrealistic

demands

Personality

conflicts

Personnelchanges

Changes

in size

Conflict of

interests

Changes

in strategy

Declining

sales

Payment

conflicts

Policy

changes

Poor

performance

Poor

communicationsUnrealistic

demands

Personality

conflicts

Personnelchanges

Changes

in size

Conflict of

interests

Changes

in strategy

Declining

sales

Payment

conflicts

How Agencies Gain Clients


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Referrals Referrals

How Agencies Gain Clients

Solicitations Solicitations

Presentations Presentations

Public Relations Public Relations Image, Reputation Image, Reputation

Methods of Agency Compensation


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Commissions

Method

Commissions

Method

Cost-PlusAgreements

Cost-PlusAgreements

Percentage

Charges

Percentage

Charges

Fee

Arrangements

Fee

Arrangements

Incentive-Based

Payment (15% to 25%)

Incentive-Based

Payment (15% to 25%)

Commissions

Method

Commissions

Method

Cost-PlusAgreements

Cost-PlusAgreements

Percentage

Charges

Percentage

Charges

Fee

Arrangements

Fee

Arrangements

Methods of Agency Compensation

Compensation

Methods

Compensation

Methods

19th century based on the space sold by

an agency


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Agency Compensation

Commissions Around 15 % of airtime fees

16 2/3 % for outdoor media

Web media is negotiated

Markup charges Production cost + Fixed %

Fee System Hourly rates, or by project

Pay for results (Incentive based) Tightly specified objectives


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Ad Campaign

A series of related advertisements focusing

on a common theme, slogan, and set of advertising

appeals.

Steps in Creating an


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Steps in Creating an

Advertising Campaign

Determine theadvertising objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

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Setting Objectives:


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Setting Objectives:

The DAGMAR Approach

DefineTarget

Audience

DefineTarget

Audience Define

DesiredPercentage

Change

Define

DesiredPercentage

Change

Define theTime Framefor Change

Define theTime Framefor Change

Goal ofGoal of

AdvertisingAdvertisingObjectivesObjectives

Goal ofGoal of

AdvertisingAdvertisingObjectivesObjectives

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Creative Decisions

Componentsof

CreativeDecisions

ComponentsofCreativeDecisions

Develop and EvaluateAdvertising Appeals

Develop and Evaluate

Advertising Appeals

Executethe Message

Executethe Message

Evaluate theCampaigns Effectivenes

Evaluate theCampaigns Effectivenes

IdentifyProduct Benefits

IdentifyProduct Benefits

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Identify Product Benefits33

Sell products benefits,

not its attributes

A benefit should answerWhats in it for me?

AskSo? to determine

if it is a benefit


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Some of Pepsis

successful Campaigns

Yeh Dil maange more


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Yeh Dil maange more


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Bubbly Campaign

Y i t


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Youngistan

YoungistanCampaign

Yeh hai Youngistaan

Meri Jaan

About Youngistan


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About Youngistan This campaignhas two new celebrities Ranbir

Kapoor and Deepika Padukone who acted in thetwo most-talked about Hindi films in 2007, toaccompany brand ambassador Shah Rukh Khan.

This time we wanted an all-encompassing theme.Youngistan reflects the mood of Indias youth,which is today keen to take the ropes and drive

India, says Punita Lal, executive director,marketing, PepsiCo.


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Segmenting pattern Demographics: The Campaign targets teens and

young adults of metros and phase II cities.

Psychographics: The campaign attempts tocapture the youth of today by focusing on theirpersonality,lifestyle and attitude of youththrough the advertisement

Placement of the Campaign


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Placement of the Campaign

The campaign was first launched on T.V during the tri-series

matches in February.

The campaign is launched with a 360-degree activationacross radio, outdoor, modern trade, Web and wirelessplatforms.

Pepsi has launched a website for Youngistan inside the PepsiCool Zone and is planning to make it a responsive peer groupsite where youngsters can visit and make comments on any

topic.

Pepsi Youngistan is also sponsoring Wassup Youngistan onMTV, a show where youth can voice their thoughts.


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Youngistan T.V advertisement

Advertising Agency for


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Advertising Agency forYoungistan

JWT ( J. Walter Thompson), ranks as the largestadvertising agency brand in the U.S. and as thefourth-largest full service network in the world. It

was the first agency to be associated withanthropology and the study of consumer behavior.

chapter i intro to advertising

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