module 1 advertising (1st part)

8/7/2019 Module 1 Advertising (1st Part)

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INTRODUCTION TO ADVERTISING

MANAGEMENT

Module 1

Module 1


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Agenda

1

Meaning of Advertising

Importance of Advertising

History of Advertising

Classification of Advertising

Functions of Advertising

AIDAS


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2

Advertising

Advertising is defined as any paid form of non- personal presentation of ideas,

goods and services by an identified sponsor.


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Features of Advertising

Advertising is of various forms: It can be a sign or symbol.

It can be an illustration or message or both. It could be

conveyed through any mass media like TV, radio, press or

magazines

Advertising is non- personal and thus excludes any face-

to- face communication Advertising is openly paid for by an identified sponsor.

The message is put by an organization selling products or

services. It could be a commercial or non- commercial

organization

Advertising just tries to influence the behavior of the

target audience

It is a silent but forceful salesmanship. It helps to pre- sell

a product


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Merits/ Importance/ Functions of

Advertising

Informs the buyers about the existence of the

product, its features, its benefits and its availability

Builds brands, gives an image and personality to the

brand

Contributes to brand loyalty

Most cost effective way to reach consumers. Itreduces selling costs

Persuades people to act

Delivers the same message consistently in a variety

of contexts

Reach prospects that cannot be approached bysalesmen


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De- merits of Advertising

Excludes face- to- face communication andhence objections raised by prospects remain

unanswered

It is a one- sided communication and hence

cannot obtain quick and accurate feedback

needed to evaluate message effectiveness Repetition of advertisements involves

additional cost

It, many a times, lacks credibility and trust

worthiness

It creates noise in communication asnewspapers, magazines etc., carry many

messages competing to secure attention of

the audience simultaneously


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Objectives of Advertising

Closing and immediate sale

Move the prospect step- by- step closer to a sale

Build a brand image

Contribute to increased sale Aim at some specific steps leading to sale

To inform the consumers to consummate sales

and build customer satisfaction

To help the sales force and to help the trade

channels

To project a corporate image


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Factors Responsible for Changing

Concept of Advertising

1. Globalization (Integration of world economy): The marketing in global context is more

complex and hence advertising has also become more challenging

2. Government Regulations: Government regulations and code of conduct for

advertisements is common in almost all the nations. This has also changed the

advertising landscape

3. Increasing Competition: Today s cut- throat competition is forcing the advertisers to

make their presentations creative, innovative and different from others in order to makeuniqueness in the communication

4. Technological Developments: The growth in technology has helped the advertisers to

make advertisements more effective and distinguishable

5. Other Factors:Other factors like educational level and standard of living of the people,

literacy rate, changes in tastes and preferences etc. are also responsible for changes inadvertisements


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Major Institutions involved in the Field of

AdvertisingManagement

Refer diagram on Page 18 of Myers and Aaker text or Page 3 of Gupta Text

Core Institution:

The Advertiser

The advertiser is the core institution in the field of advertising management

The expenditures of advertisers provide the basis for estimates of the size of the

advertising industry

Controlling Institutions:

Government

Competition

Facilitating Institutions:

Advertising Agency

In most cases, the advertising agency makes the creative and media decisions.

It also often supplies supportive market research and is even involved in the total

marketing plan


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Major Institutions involved in the Field of

AdvertisingManagement

In some advertiser- agency relationships, the agency acts quite autonomouslyin its areas of expertise; in others, the advertiser remains involved in the

creative and media decisions as the campaign progresses

Examples for ad agencies: Ogilvy & Mather, Lowe Lintas, Mudra

Communications,OOH Media

Media It could be newspaper, magazine, TV or Radio

Research Suppliers

It refers to companies that supply research services to advertisers, advertising

agencies and the media

Examples for Research Suppliers: The Audit Bureau of Circulations (ABC) audit

of newspaper circulation, A . C. Nielsen- television program rating services


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6

Advertising as a Communication Process

Communication is a process of passing information and

understanding from one person to another. It involves

the following elements:

Sender: Communication begins from the sender

who wants to transmit the message to another person

Message: The idea or information in the physical

form

Encoding: Putting the message into appropriate

words, symbols or gestures


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Advertising as a Communication Process

Channel: The method or vehicle used to transmit the message

Receiver: The person to whom the message is sent and he perceives the message and

attaches some meaning to the message

Decoding: Attaching meaning to the message sent. The communication will be effective

when senders message commensurate with the receiver's understanding

Feedback: The reversal in communication process is the feedback whereby, the receiver

expresses the response of the senders message


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Types of Advertising

I. Geographical Spread

1. National Advertising : Some manufacturers may

think that their target is the entire country. They

select media with a countrywide base. Generally,

large, established firms belong to this category.

Among them are Hindustan Unilever, Marico,

Godrej etc.2. Local Advertising: Small firms may like to restrict

their business to State or regional level. Some

firms first localize their marketing efforts and once

success has been achieved, they spread out to

wider horizons. A classic example is Nirma washing

powder, which initially was sold only in Gujaratand subsequently entered the other markets.

Similarly, Fanta Apple was initially sold only in

Chennai

3. Global Advertising:Multinational firms treat the

world as their market. Firms such as IBM, Sony,

Luis Vuitton, Tommy Hilfiger etc. advertise globally

in periodicals like Newsweek, Time, Vogue etc.


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II. Target Group

a) Consumer Advertising: A substantial portion of total advertising is directed to buyers of

consumer products who purchase them either for their own use or for their households.

The fact that buyers of consumer items are generally very large and are widely distributed

over a large geographical area enhances the importance of advertising as a marketing tool.

These advertisements are intended to promote sale of the advertised products by

appealing directly to the buyers. Such advertising is called consumer advertising.


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b) Industrial Advertising: Industrial advertising refers to those advertisements which are

issued by the manufacturers/ distributors to the buyers of industrial products. This category

would include machinery and equipment, industrial intermediates, parts and components, etc.

Because of the unique characteristics of industrial buying decision process, the importance of

industrial advertising is comparatively lower than that of consumer advertising


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We shall now discuss in detail the following

broad categories of advertising:a. Product Advertising

b. Service Advertising

c. Institutional Advertising (Corporate

Advertising)

d. Public Relations Advertising

e. Public Service Advertising

f. Financial/ Issue Advertising

g. International Advertising


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Pr ct v rtisi g

Pr ct v rtisi g c v ys i f rmati ab t

a pr ct Pr ct is th v ry h art f a y a v rtisi g

pr gram

Pr ct v rtisi g is f thr typ s:

i. Pioneering Advertising

ii. Competitive Advertising

iii. Retentive Advertising


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Here, an attempt is made to stimulate the

primary demand for the product categoryrather than a specific brand

Here the product category is first introduced

It is educative in intent

It appeals to consumers emotions as well as

to his rational motives

Pioneering Advertising is relevant in the

introductory stage of Product Life Cycle

The initial advertising of micro- wave ovens,

electric mosquito repellants etc. are of this

type

Some popular examples are initial

advertisements of Hand wash by Dettol,

Noodles byMaggi and Mens Fairness Cream

by Emami

Pioneering Advertising


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Competitive Advertising

Here, selective demand of a specific

product brand is stimulated

By now, the product is established in the

market and has reached the growth or

maturity stage of Product Life Cycle

Competitive Advertising is of two types:

1. Direct Type: It seeks to stimulateimmediate buying action

2. Indirect Type: Here the benefits of the

product are emphasized in anticipation

of the consumers final action of buying


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Retentive Advertising

The product is now having a firm footing in the market

Its sales may start declining later

The buyer must be reminded about the product to sustain his loyalty


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Institutional/ Corporate Advertising

Institutional Advertising aims at building a

positive public image of the firm in the eyes

of the public

Institutional advertising does not attempt to

sell a particular product; it benefits the

organization as a whole

It notifies the consumers that the company

is a responsible business entity

Corporate or Institutional Advertising gives a

face to the company

Some popular examples are advertisements

of Godrej and Aditya Birla Group


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Public Relations Advertising

Public Relations Advertising

represents the management andcommunicates the policies,

problems and performances to the

public

PR Advertising generally precedes

the share issues these days to

create a favorable climate for the

investing public

Public Relations Advertising is a

must at the times of crisis . It can

act as an effective damage control

device Many areas of Institutional and PR

Advertising may overlap. In fact,

PR Advertising is a part of

Institutional Advertising


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Public Service Advertising

Public Service Advertising is done as a part of social responsibility

It seeks to promote important social issues

It is created to promote greater awareness of public causes

Save Tigers initiative of Aircel, Jago Re campaign of Tata Tea, advertisements against

smoking, female foeticides etc. are examples

National Integration, Ads, Family Planning Ads , PETA Ads etc. are some other examples


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International Advertising

Same as Global Advertising which has already been explained


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The earliest forms of advertising were

in the form of signboards and writing

on the walls of prominent buildings

Posters and pamphlets were also used

in those days

The advertisements were more passiveand their scope was very much limited

in those days

The importance of advertising was

doubled when the hand press was

invented at the end of the 15th century

The invention of printing machines

further aided for the development of

advertising techniques through

handbills, magazines, newspapers and

handbooks


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So we can say that modern advertising has its

roots in England even though the Americansare the forerunners in modern advertising

Rosser Reeves of the Ted Bates Agency ( now

part of Backer Spielvogel Bates, itself part of

the Saatchi Group) introduced the concept of

USP (Unique Selling Proposition) to

differentiate a product from its competitive

products

Advertising was further stimulated by the

increased literacy

Computers, Satellite Television and Internet

has affected advertising a great deal



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Adv rtisi g i I dia

Dattaram & Compa y , th first adv rtisi g ag cy

i I dia, was fou ded i 1905 i Mumbai

The agency released its first ad in 1907 for West

EndWatch Co., Mumbai

In 1926, JWT (James Walter Thomson) started its

operations whileO&M came to India in 1928

In 1939, Lintas entered the scene (In 2000, Lintasmerged with Lowe. It was renamed as Lowe

Worldwide in 2002

In 1941, Leela Chitnis became the first Indian

movie actress to endorse Lux Soap


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Advertising in India

The year 1963 saw the launch of Made for

Each Other campaign for Wills filtercigarettes

In 1978, Indias first TVC (Television

Commercial) goes on air


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The introduction of satellite television in 1991 had a big impact on advertising

The first electronic channel to be beamed in India was CNN

On March, 1993, Indias very first satellite channel, ATN, was incorporated. Now it is

rechristened as ETC (Entertainment Television Network)

Try to know more about Prahlad Kakkar- SundropOil Commercial

Advertising in India


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AI AS

A- Attention

I- Interest

- esire

A- Action

S- Satisfaction


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Reach, Frequency and Impact

Reach: The number of different persons or households exposed to a particular media

schedule at least once during a specified time period

Frequency: The number of times within the specified time period that an average person or

household is exposed to the message

Impact: The qualitative value of an exposure through a given medium (For instance, a food

ad in Good Housekeeping would have a higher impact than in Fortune magazine


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Medium and Vehicle

Medium: A medium is a channel or a system of communication such as newspapers or radio

Vehicle: A vehicle is a specific carrier within the channel. For example, Television is amedium, while Star Plus or HBO is a vehicle. Similarly, in print media, Readers Digestor The

New york Times are vehicles


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A few more takeaways

Sonic Branding- Ringtone of

Airtel, ding ding diding of

Britannia,

Cult Branding- Harley Davidson

Telescopic Marketing- Derived

Demand

Sequel Advertising

Private Labels (Store Brands, In-

house brands)


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Ambush Marketing (Guerilla Marketing)


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Ambush Marketing (Guerilla Marketing)

module 1 advertising (1st part)

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