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Advertising and Promotion (MKT621) VU Lesson 1 INTRODUCTION TO ADVERTISING This course is designed to teach and guide th e students to know and learn about Advertising and Promotion. In this course we will try to acquaint you with various aspects and applications and requirements. Besides teaching you about the introduction and history of advertising this will also guide students about its growing im portance, definition and various aspects. The major components to learn will be its skills in modern world, the overall importance and significance of its practice in different scenarios. After going through the contents of first lect ure, students will be able to know about Advertising and promotion with its growing importance and its definition with different segments: A. Introduction to Advertising and Promotion. B. Its growing importance. C. Definition of Advertising. D. Explanation of Personal and non-personal selling. LECTURE OVERVIEW This lecture introduces the students with the background, definition, and growing importance in the modern world. During this we will be discussing the above mentioned aspects of Advertising. We will also briefly try and explain the difference between personal and non- personal selling and related advantages and disadvantages. INTRODUCTION In fact today advertising is every where, on radio, TV, newspapers, billboards, magazines and even on the side of the town buses. The global market has expanded tremendously, and manifolds. Advertising serves three main purposes: 1. To get or win new customers. 2. To increase use of products or services among existing customers. 3. To help potential customers make a choice among competing brands. Advertising has great influence on us whether we are aware of it or not. Let us now first of all try to know about its growing importance: GROWING IMPORTANCE OF ADVERTISING • We see 100’s of ads. Every day. • Consciously or subconsciously advertisements have tremendous effect. • Advertising can not only change buying decision but also changes mindset & attitude of people. • Advertising reflects the culture of a nation. • Advertising & culture both affect each other. • Advertising industry also supports media industry. • In fact media survives on advertising because they go hand in hand. • Advertising can be used as an effective tool for a social cause. • Advertisement also help in spreading information about new technology & innovations • Advertising in today’s world is not for sp reading brand awareness but also shows us where we stand in the world today. © Copyright Virtual University of Pakistan 1 Advertising and Promotion (MKT621) VU DEFINITION OF ADVERTISING Now a days, Advertising has assumed importan t role in this very fast developing and competitive world. In order to understand it firswe have to know what it means or in other words to know its definition. But before we de fine we must know i.e. six segments of the definition of advertising: Six Segments 1. It is paid form of communication. 2. The Sponsor is identified. 3. Most advertising tries to pe rsuade or influence consumer to do. Something though in some cases it is merely to make consumers aware of product or company. 4. Message is conveyed through different types of media. 5. Advertising makes message reach large audience of potential consumers. 6. Advertising is a form of mass communication therefore it is non- personal. Based on the above the most accepted standard de finition universally accepted is as described by Bovee in 1992. It said: “Advertising is the non - personal communication of information usually persuasive in nature about products, services or ideas by identified sponsors through the various media” Let us now try to DISECT & EXPLAIN key terms PERSONAL and NON – PERSONAL used in the definition of advertising. ¾ There are two basic ways to sell Personally & Non-Personally Personal selling – Where seller & buyer has to be together. Non – Personal - Seller is approached through a medium i.e. advertising. Advantages of Non-Personal Selling: • Seller has time to discuss everything about the product. • Buyer has time to ask questions, get answ ers & examine evidence against or for the product. • Seller can see the person whom product is being sold. • Seller can see the person to whom he/she is selling the product. • Seller can easily locate potential buyers. Disadvantages: • It is expensive being labor intensive. • Time consuming. • So seems personal selling is better than advertising which is non-personal yet advertising still remains most effective. Therefore despite the fact that advertising even though is non-pe rsonal selling, it is certainly effective. © Copyright Virtual University of Pakistan 2 Advertising and Promotion (MKT621) VU Lesson 2 INTRODUCTION TO ADVERTISING LECTURE OVERVIEW In this lecture we will study the reasons and a dvantages of advertising and its objectives. We will also discuss various segments of advertising and different aspects of definition besides briefly relating to its history. WHY TO ADVERTISE? ADVANTAGES • Advertising is every where. • Advertiser may not see individual consumer yet has research (knowledge) about the consumer. • Advertising can be far cheaper per potential customer than personal selling. So – Advertising is better as a sales tool and though it is non-personal yet is more effective. Now therefore we must further analyze in dept h about the definition of advertising besides understanding personal selling and Non personal as explained before in the last lecture. Continuing with the standard definition letus take up one by one important components as underlined below: So, just to review the definition “Advertising is the non - personal communication of information usually persuasive in nature about products, services or ideas identified sponsors through the various media.” (Bovee 1992) Communication Means through which one person can pass information, ideas or feelings to another through speech or pictures. Though, communication uses all senses like smell, touch, taste, sound & sight, only two are useful in advertising i.e. Sound & Sight Sound: Radio, Television — micro-sound chips in magazines. Sight: The most useful medium of communication like print, i.e. “A picture is worth a thousand words” Information Information is knowledge, fact or news. It comes in different forms: Complete or Incomplete! Biased or deceptive! What it is? What it looks like? How it works? What are its benefits &drawbacks etc? Paid For If an advertisement is created, placed in the media so the cost to create and time or space in the media must be paid for. This is the point, where advertising departs from Public Relations. Persuasive Purpose of advertisement is to Identify & differentiate one product from another and to persuade the customer for preferring one to another. © Copyright Virtual University of Pakistan 3 Advertising and Promotion (MKT621) VU Products, Services or Ideas Things advertiser wants consumers to buy. There are three basic differentiations in products 1. Perceptible – Obviously different from other-like color, size, shape etc. 2. Imperceptible – Those which exist but are not obvious. 3. Induced. – No obvious difference but inform people about the difference Identified Sponsors Telling audience about the sponsors Various Media Like Newspapers, Magazines, Radio, TV, Bill boards, hoardings, balloons… So “anything which is used to communicate ideas from one person to another in non personal-way.” HISTORY OF ADVERTISING 1704 1st newspaper ad, seeking buyer for an Oyster Bay was published. 1843 1st Ad. Agency set up in Philadelphia 1882 Advertising of a soap brand was done with a huge budget of 11000 US$. 1893 A famous beverage brand was registered as a trade mark. 1899 J. Walters: 1st agency opens an office in U.K. 1923 1st entertainment program was sponsored by an advertiser. 1947 J .Walter Thompson 1st agency to cross 100Mil $ in billing. 1976 Indian commercial TV launched. 1978 1st TV commercial is launched. 1990 A new Medium Internet is born. 1993 5 million internet users get on line. 1999 Internet advertising breaks 2 Billion US$ mark. 2003 TV show with built in advertising is planned. © Copyright Virtual University of Pakistan 4 Advertising and Promotion (MKT621) VU Lesson 3 INTRODUCTION TO ADVERTISING LECTURE OVERVIEW In this lecture we will discuss the classification of advertisements and its functions besides explaining about the elements of advertising and its impact. CLASSIFICATION OF ADVERTISEMENTS Advertisements have various objectives, sometimes other than just selling products. However, before designing and classifying ads answers to following questions are essential: • What do I want my advertising to accomplish? i.e. specifying goals. • Whom should my advertising address? • Target audience. • Demographics e.g. gender, age, location or business etc. • Behaviors e.g. current awareness about your business. • Needs & desires e.g. benefit which consumers look for in a product. • What should my advertising say? To sum up the message should speak to your audi ence and you should be able to decide where to place the advertisement? Selection of medito place advertisement is essential but before advertising we must determine the purpose of doing so and identify, is it a product or a non- product. CLASSIFICATION OF ADVERTISEMENTS Target AREA MEDIA PURPOSE Audience USED Consumer International Print Product or Non – product. Business National Newspaper Commercial or Non – commercial. Industrial Regional Magazine Primary or selective Demand Trade Local Electronic Primary or selective Demand Professional Radio Direct or Indirect action Agricultural Television Out of Home Outdoor Transit Direct Mail Directories Other Media FUNCTIONS OF ADVERTISING Advertising is one tool which can help a company to achieve goals. It is not the end, but a means to reach the end. The functions of Advertising depend upon six Advertising objectives 1. To make product distinct from others. 2. To communicate information. 3. To push the customers. 4. To expand distribution. 5. To encourage brand preference. 6. To reduce sales cost. © Copyright Virtual University of Pakistan 5 Advertising and Promotion (MKT621) VU Elements of Advertising Pyramid SATISFACTION ACTION DESIRE INTEREST ATTENTION IMPACT OF ADVERTISING If you count the number of advertisements you encounter each day, the number might reach an astonishing figure. Many a times ads create the need of the products, which customers actually do not need. Therefore, in fact: “Advertising is a non-moral force like electricity which not only illuminates but also electrocutes. In fact, its worth to civilization depends upon how it is used”. . --- William Bernbach © Copyright Virtual University of Pakistan 6 Advertising and Promotion (MKT621) VU Lesson 4 ADVERTISING AND SOCIETY LECTURE OVERVIEW This lecture will identify the relationship and effect of advertising on Society. We will also delve upon the impact of advertising on various segments of society like women, children etc. We will also explain about ethics in advertising, code of ethics and the role of advertising as a marketing tool and related marketing process. ADVERTISING AND SOCIETY The benefits of Advertising – Immediate 1. Numerous material & human resources are devoted to advertising. 2. Practically everywhere. 3. No one can escape influence of Advertising. 4. Has potential for good but depends upon the realization. PRACTICAL BENEFITS Economic Benefits: Generation of new jobs – Higher Incomes, comfortable & humane way of living. Political benefits: Significant contribution for informing people about candidates & the party etc. Cultural Benefits: Contributes positively in decisions about media content for betterment in society Moral & Religious Benefits: faith messages etc. IMPACT OF ADVERTISEMENTS ON CHILDREN Children are impressionable so: advertiser should ---- • Take into account knowledge & maturity level of target audience • Not exploit imaginative quality of children. • Communicate information accurately & truthfully. • Use advertising to influence social behavior in a positive way. • Contribute to parent - child relationship in a constructive way. IMPACT OF ADVERTISEMENTS ON WOMEN She is at the centre of all advertisements in almost all media. Woman is an embodiment of tradition & practically no ad is complete if emotional appeal is underscored without a woman as she plays a pivotal role in the family. Woman is used to grab attention and stimulate desire which advertiser wants to transform to product. ETHICS IN ADVERTISING Why Ethics? ¾ PUFFERY – Exaggerated, fantas tical or impossible claims. e.g. a cosmetic ad. says “There are only 3 steps between you and the beauty.” ¾ SHOCK ADS. – Trying to captivate audience by shocking message e.g. “Death cigarettes”. © Copyright Virtual University of Pakistan 7 Advertising and Promotion (MKT621) VU ¾ WEASEL CLAIM – Where a probable claim is shown e.g. “probably the best show of the year.” Here word ‘proba bly’ is weasel. Or e.g. AB C medicine “helps” stop gas before it starts” here the word ‘help’ is weasel. CODE OF ETHICS IN ADVERTISING • Advertisements will not offend morality, d ecency and religious views / beliefs of the viewers. • Should not be directed towards any religious or political end. • Should not endanger safety children or create in thany interest in unhealthy practices. • Indecent, vulgar, suggestive, repulsivoffensive treatment of themes shall be avoided. ADVERTISING – A MARKETING TOOL MARKETING CONCEPTS Exchange: Core concept of marketing – Means the exchange of a product between the seller & the buyer. Transaction: When an agreement is reached between two parties, a transaction takes place. Needs, Wants & Demands: Important for marketer to understand and interpret these of the target market. • Need is a basic human necessity • When need is specific, it is want. • A want for specific product supported by an ability to pay is demand. Value: Always remember the statement “Value for money” Basic Equation Value = Benefit / Cost Marketplace & Market space: Marketplace is Physical like a store and Market space is digital like internet. Marketing Process: Four major stages: • The marketing environment analysis • The target market & positioning process • Marketing Mix decisions • Ultimate consumer MARKETING PROCESS 4 P’s VS 4 C’s FOUR P’s FOUR C’s PRSODLUTCTONCUSTOMER COSTPRICE CUSTOMER PHYSICAL DISTRIBUTION CONVENIENCE PROMOTION COMMUNICATION © Copyright Virtual University of Pakistan 8 Advertising and Promotion (MKT621) VU In fact following questions would need to be answered. • Where & whom to sell broadly? • How to select homogenous groups of customers? • How to differentiate the brand from many others in the market? This helps marketer in making critical decisions for competing in market. Such decisions are “Marketing Mix Decisions” – broadly known as 4 P’s as above but have now expanded to 7 P’s such as: 1. Product 2. Price 3. Physical Distribution 4. Promotions 5. Packaging 6. People 7. Process © Copyright Virtual University of Pakistan 9 Advertising and Promotion (MKT621) VU Lesson 5 MARKETING TOOLS LECTURE OVERVIEW This lecture will explain about the marketing mi x, its factors, and components. We will also illustrate the marketing process model as well. ASSEMBLING MARKETING MIX • Means to Identify & create best possible combination of 4Ps. • Involves the process of the choices of appropriate marketing activities. • Allocates adequate marketing efforts and resources to each ‘P’. • Tries to identify effectiveness of different combinations in terms of possible sales volume & net profit. Thus, Marketing Mix is the set of marketing variables that the firm uses to achieve its marketing objectives in the target market. FIVE FACTORS FOR ASSEMBLING MARKETING MIX. • Should be separate for every brand. • Decide the weightage for each ‘P’. • Decision should be customer / market oriented. • Mix has to be dynamic. • Most visible part of marketing strategy. COMPONENTS OF MARKETING MIX PRODUCT: Ingredients, Quality, Design, Features, Color, Size, Variety, Brand, Packaging Customer education, Services, Warranties, Replacement & Returns Customer Relationship Management PRICE: List price, Discounts, Credit terms, Payment mode etc. PHYSICAL DISTRIBUTION: Channels, Assortments, Cove rage, Locations, Inventory, Transportation, Warehousing PROMOTION: Advertising, Personal Selling, Direct Marketing, Publicity, Sales Promotions, Public Relations © Copyright Virtual University of Pakistan 10 Advertising and Promotion (MKT621) VU PRODUCT LIFE CYCLE (PLC) CURVE (Marketing process model) INTRODUCTION GROWTH MATURITY DECLINE Sales & Profits TIME © Copyright Virtual University of Pakistan 11 Advertising and Promotion (MKT621) VU Lesson 6 MARKETING TOOLS LECTURE OVERVIEW In this lecture we will contnue to explain the marketing t ools, product lif e cycle besides introducing the concept of SWOT analysis. Furthermore we will apprise regarding the Marketing plan, market demand and the role of marketing and advertising agencies. MARKETING TOOLS Every product has a life cycle i.e. • Product has a limited life. • Product sales passes through different stages. • Profits rise & fall in different stages of PLC. • Products require different marketing, manufact uring, financial & purchase strategies in each life cycle stage. • Competitive environment is different in every stage. • Products require different marketing, manufact uring, financial & purchase strategies in each life cycle stage. • Competitive environment is different in every stage. STAGES OF PLC (Product Life Cycle) 1. Introduction 2. Growth 3. Maturity 4. Decline SWOT Analysis 1. EXTERNAL ENVIRONMENT ANALYSIS. (Opportunity & Threat Analysis) Macro Factors – Uncontrollable Social- Legal-Economic-Political-Technology Micro (Task) Factors – Direct Impact: Customers- Employees- Competitors- Distributors- Creditors-Suppliers- Other stake holders 2. INTERNAL EVIRONMENT ANALYSIS. (Strength - Weakness Profile) Basically related to functional areas: Marketing – Finance – Manu facturing -Purchase - Research & Development. Information Technology, Human resource - Leadership – Image. MARKETING PLAN What is the need of marketing plan? • Provide assessment of current situation & position. • Focus efforts in an identified direction. • Give clear cut performance targets. • Identify ways to achieve targets. • Allocate resources. • Direct all towards common objectives. Contents & Structure • Executive summary. • Current situation. • Performance review. (for existing product or service only). © Copyright Virtual University of Pakistan 12 Advertising and Promotion (MKT621) VU • Key issues. • Marketing objectives. • Marketing strategy. Marketing Action Plan 1. Target market 2. Mixing of market variables (4 ‘P’s). 3. Responsibility of action. 4. When & where the action will be? 5. How much budget for each action? 6. Projected profit & loss statement. 7. Controls. 8. Contingency plan. Marketing Demand Two Tools for Estimating Market Demand: Qualitative • Buying intention survey. • Sales force opinion. • Panel of experts. Useful for estimating demand for a new product. Quantitative • Sales volume. • Sales trend. • Economics. ROLE & FUNCTION OF ADVERTISING • Acquire enhanced volumes of sales of products & services. • Generate awareness about offerings. • Induce trial of a new product & service. • Motivate & impress trade channels. • Change perception & create reassurance. • Influence staff. • Support sales promotional sponsorships & public relations activity. • Make announcements in public interest. © Copyright Virtual University of Pakistan 13 Advertising and Promotion (MKT621) VU Lesson 7 ROLE AND FUNCTIONS OF ADVERTISING LECTURE OVERVIEW In this lecture we will study more about the ro le and function of Adve rtising and Advertising agencies. How do these work and what are different types .We will explain about their structure and guide about the ways to select an agency. ROLE & FUCTIONS OF ADVERTISING • Acquire enhanced volumes of sales of products & services. • Generate awareness about offerings. • Induce trial of a new product & service. • Motivate & impress trade channels. • Change perception & create reassurance. • Acquire enhanced volumes of sales of products & services. • Generate awareness about offerings. • Induce trial of a new product & service. • Motivate & impress trade channels. • Change perception & create reassurance. • Acquire enhanced volumes of sales of products & services. • Generate awareness about offerings. • Induce trial of a new product & service. • Motivate & impress trade channels. • Change perception & create reassurance. PURPOSE OF ADVERTISING AGENCIES • Advise & counsel on marketing strategy. • Advise & counsel on advertising and media strategy. • Prepare & develop, print, outdoor, and electronic advertisement. • Carry out collateral designs of various items such as display material & other display material. • Help & counsel on sales promotion & other communication tasks. Different Types of Agencies Type of Agency Role Full Service Agency Provides all marketing communication services. Creative Agency Provides writing of ad copy & design service. A Media Independent Offers buying space & time & related research. A Composite Agency Offers both creative & media services with research Structure of an Advertising Agency Account Executive: Organizes the resources of the agency to solve the problems of the client. The Creative Team: Basically comprises of a writer and a designer. Account Planner or Researcher : Responsible for the data a nd market intelligence on the account Media Planner: This team actually makes the campaign come live. Account Director: Overall responsible of providing service to clientele of the agency. Creative Director: Overall incharge for the creative and the artwork of agency’s clients. © Copyright Virtual University of Pakistan 14 Advertising and Promotion (MKT621) VU Media Director: Responsible for media planning of the buying activities of the agency Production House: This is the department which brings alive the creative art work of creative team. Release to Media: All finished material is ensured tothe media several days before the launch date How are Advertising Agencies Paid • Paid by Media & not by Client by an agreed percentage of commission for advertisements released. • An agreed commission is charged on services like production cost etc. How to Select an Advertising Agency Following points should be considered before selecting an agency: • Name & Address etc. • Agency History. • Year of establishment. • Ownership pattern. • Team of professionals. • Size of turnover… Annual reports. • Growth trends. • Revenue & Billing for last 5 years. • Clients – won & lost in last 3 years. • Agency mission. SYNERGISTIC FLOW BETWEEN MARKETING & ADVERTISING Marketing Marketing Action Objectives Strategies Plan Advertising Advertising Objectives Plan FEED BACK Measuring Advertising Effectiveness © Copyright Virtual University of Pakistan 15 Advertising and Promotion (MKT621) VU Lesson 8 ADVERTISING PLANNING LECTURE OVERVIEW In this lecture information will be provided ab out advertising planning specially the consumer behavior, types of advertising .The communication objectives will also be explained besides the positioning as required by the client for its product etc, and related strategies. ADVERTISING PLANNING (CONSUMER BEHAVIOUR) • What motivates the buyer? • Why does buyer choose a specific brand over others? • Why does buyer buys from where he or she buys? • What makes buyer shift from one brand to another & from one shop to another? • What are buyer’s reactions to newly introduced product? • What are the various stages buyer passes through before making a decision? ADVERTISING OBJECTIVES An advertisement, to be effective, should be Seen--Read–Understood – Believed & Acted upon So there are three objectives:- • Sales Objectives. Immediate increase in sales percentage(Chart No 1) • Communications Objectives. Increase in market share (Chart No 2) • Behavior related Objectives . Increasing company’s brand usage rate among existing consumers and Encouraging non-users to have trial consumption and / or purchase Types of Advertising • Brand Advertising. • Retail or Local Advertising. • Political Advertising. • Directory Advertising. • Direct Response Advertising • Business to Business Advertising. • Institutional Advertising. • Public Service Advertising. • Interactive Advertising. Target Audience How to determine? • To whom is advertising addressed? • Where will the objectives be achieved? Process of Identifying Target Audience • Identify the market. • Identify appropriate segments. • Decide criteria for selecting relevant segment. • Target audience. (selected segments) © Copyright Virtual University of Pakistan 16 Advertising and Promotion (MKT621) VU SALES OBJECTIVES PROCESS Chart No. 1 Competitor Economic Packaging actions Condition Brand Image Price S AES Consumer Dist. Channel Taste Management Preferences Sales force Other Product Promotional Quality Advertising No & Quality Mix Features COMMUNICATIONS OBJECTIVES Chart No 2 Behavioral objectives 5% Purchase Reg. buy 10%Trial Communication 15% Preference objectives 20% Liking 30% knowledge 70%Generating Awareness 100 % Unawareness Communication Response Pyramid © Copyright Virtual University of Pakista17 Advertising and Promotion (MKT621) VU POSITIONING • Positioning is the foundation upon which all other marketing mix decisions are built. • Positioning involves a decision to emphasize or highlight certain aspects of a brand So – Positioning is not what you do to the product, but is what you do to the minds of the consumers through marketing communications. Why Positioning “It is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind.” ….. Philip Kotler Positioning Strategies Following questions need answers: • Who am I : (Brand identity & Image) • What am I: (Functional capabilities of the product) • For whom am I: (Consumer segment I serve best) • Why me: (Powerful reason to choose me) Seven Approaches to Positioning Strategy • Using product characteristics or customer benefit approach. • The price – quality approach. • The use or application approach. • The product user approach. • The product class approach. • The cultural symbol approach. • The competitor approach. © Copyright Virtual University of Pakistan 18 Advertising and Promotion (MKT621) VU Lesson 9 POSITIONING LECTURE OVERVIEW In this lecture continuing with Positioning, we will explain various steps to decide about positioning strategy and inform about broad rules about positioning. Furthermore, its components will be discussed followed by creative strategies, various related steps and a few universally accepted advertising standards. DECIDING ABOUT POSITIONING STRATEGY Nine Steps 1. Identify competitor. 2. How are competitors perceived & evaluated by consumers? 3. Determine positioning strategy used by each competitor for specific product category. 4. Understand customer thoroughly. 5. Identify Various alternative positioning strategies available 6. Find which position is still unused. 7. Evaluate own strengths & weaknesses. 8. Select the position. 9. Monitor & Evaluate the position. • Economic analysis should guide decision. • Usually is segmentation commitment. • Stick to advertising theme if working. • Don’t try to be something which you are not. • Use symbols. Broad Positioning Rules 1. Keep it focused 2. Keep it consistent. 3. Keep it long term. Components of Positioning Three Main Components: 1. Benefit: Emotional reason to purchase from your company. 2. Target: Your best potential customer. 3. Competition: Anyone else in the market who is vying for the same or similar customers. BRANDING • It is a process of creating a unique identity for a product. • It creates memorability. • It establishes preferences, habits & loyalties. • It is equated as recalling brand name. CREATIVE STRATEGIES Creative strategy should describe the message appeal & execution style. Based on following factors • Identification of TARGET AUDIENCE. • The basic PROBLEM ISSUE. • OPPORTUNITY to be addressed by advertising. © Copyright Virtual University of Pakistan 19 Advertising and Promotion (MKT621) VU • The major SELLING IDEA or KEY BENEFIT message needs to communicate. 7 Steps of Creative Process 1. ORIENTATION. Pointing out problem. 2. PREPARATION. Gathering data. 3. ANALYSIS. Collecting relevant material. 4. IDEATION. Piling up alternative ideas. 5. INCUBATION. Putting problems aside. 6. SYNTHESIS. Putting pieces together. 7. EVALUATION. Judging resulting idea. UNIVERSAL ADVERTISING STANDARDS • Does this advertisement position product simply & with unmistakable clarity? • Is this advertising built on compelling & persuasive consumer benefit? • Does this advertising create a brand personality? • Is this advertising unexpected? • Is this advertising single minded? © Copyright Virtual University of Pakistan 20 Advertising and Promotion (MKT621) VU Lesson 10 ADVERTISING MESSAGE LECTURE OVERVIEW In this lecture we will look further at the universal advertising standards partially covered in the last lecture. We will also deal with the design ing of messages, format and structure. We will further acquaint you with various terms used in advertising and key issues to be analyzed for advertisements. We will also delve upon different stages of developing a media plan. UNIVERSAL ADVERTISING STANDARDS • Does this advertisement position product simply & with unmistakable clarity? • Is this advertising built on compelling & persuasive consumer benefit? • Does this advertising create a brand personality? • Is this advertising unexpected? • Is this advertising single minded? • Does advertising contain a power idea? • Be describable in simple word. • Likely to attract attention. • Revolve around the benefit. • Allow us to brand the advertising. • Make it possible for the prospect to experience the product or service. • Does advertising reward the prospect? • Is advertising compelling? • Is advertising attractive? • Message Generation. • Message Evaluation & Selection. • Message Execution. DESIGNING MESSAGE 1. What to say? (content) 2. How to say logically? 3. How to say symbolically? (format) 4. Who should say it? (source) Message Content Rational: benefits like quality, value, performance, economy etc. Emotional: Negative - fear, guilt, shame Positive – love, pride, joy. Moral: directed to audience for used for social causes. ADVERTISING MESSAGE FORMAT Good Sequence & manner of presentation will result in maximum effectiveness. © Copyright Virtual University of Pakistan 21 Advertising and Promotion (MKT621) VU PRINT MEDIA headline, copy, illustration & color will be used. RADIO words & voice quality etc. TELEVISION words, voice quality, body language, facial expressions, dress, posture etc. Attractive source is the best source e.g. Celebrities, professionals are used As spokes persons. ADVERTISING MESSAGE STRUCTURE • Order of presentation • Verbal vs. visual • Sidedness – single / double • Refutation BASIC TERMS & CONCEPTS. Media Planning – a process of determining how to use time & space of media to achieve advertising objectives. Media Plan – a guide for media selection - plan of action. Medium – a single form of communication e.g. TV, radio, billboards, online media. Media Mix. -- combination of media to be used. Media Class. -- type of medium like TV, Radio etc. Media Vehicle. -- single program, magazine or radio station. Media Option. -- full page / half page, color or black & white etc. Above the line Media. -- such as broadcast, press, outdoor, cinema, posters etc in which ad agency gets commission. Below the line Media. -- such as direct mail, sales promotion, exhibitions, sales literature etc. Reach -- measure of the number of different audience exposed at least once. Coverage. -- refers to potential audience might be exposed to the ad message. © Copyright Virtual University of Pakistan 22 Advertising and Promotion (MKT621) VU Frequency. -- refers to number of times the audience is exposed to advertisement message. Scheduling. -- specify how media options are scheduled. Flighting – Continuous – Pulsing Timing. -- Selection of specific times. (Marketing analysis imperative) KEY ISSUES TO BE ANALYSED • To whom should we advertise? • What internal & external factors may influence media plan? • Where & when should we focus our efforts? DEVELOPING MEDIA PLAN -5 STAGES Markeket situation anal sisy Developing media objectives Identification & selection of media strateggy (emedia mix ) Media str rateggyimim lementation Evaluation control Evaluation control MEDIA PLAN EXECUTION Criteria for Execution • Media Mix. • Target Market Coverage. • Geographical Coverage. • Scheduling. • Reach. • Frequency. • Creative aspects & mood. • Flexibility. © Copyright Virtual University of Pakistan 23 Advertising and Promotion (MKT621) VU • Budget considerations. ADVERTISING BUDGET 4 Methods to determine • AFFORDABLE RATE. • PERCENTAGE OF SALES METHOD. • COMPETITIVE PARITY METHOD. • OBJECTIVE & TASK METHOD. © Copyright Virtual University of Pakistan 24 Advertising and Promotion (MKT621) VU Lesson 11 ADVERTISING BUDGET LECTURE OVERVIEW This lecture will cover in deta il the advertising budget; the appr oach required to work out a practical and workable budget. The information re garding advertising with special reference to implementation and evaluation will be discussed. ADVERTISING BUDGET 4 Methods to determine • AFFORDABLE RATE. • PERCENTAGE OF SALES METHOD. • COMPETITIVE PARITY METHOD. • OBJECTIVE & TASK METHOD. ADVERTISING BUDGET Two Approacoaches to Decide Bud etsg Top -- DownApApprchoach Management decides Management decides Activity based & how much to spend objective oriented Affordability approach approoach b yana e sg r Igno es ma ket ealitty y BBottom – U Ap Apprhoach ADVERTISING - IMPLEMENTATION & EVALUATION • Deals with campaign’s specific tactics. • Specifies about activities to be undertaken. • People responsible for these. • Budget availability. © Copyright Virtual University of Pakistan 25 Advertising and Promotion (MKT621) VU Advertising manager to find answers… • WHAT IS TO BE DONE? • WHO WILL DO IT? • WHEN WILL IT BE DONE? • HOW WILL IT BE DONE? REMEMBER: “Success is in details” ADVERTISING RESEARCH 3 Critical Decisions! 1. SETTING OBJECTIVES. 1. SELECTING THE METHOD. 1. CHOOSING APPROPRIATE MEDIA. 4 CHOICES to be made. 1. WHAT PROGRAMME? 1. WHAT DAYS OF THE WEEK? 1. WHAT TIME OF THE DAY? 1. HOW MANY TIMES? AT LEAST 5 • Helps in appropriate positioning decision for the brand. • Helps in selecting target markets. • Find acceptability of creative ideas. • Pre -- testing of ads. • Post – testing of ads. ADVERTISING RESEARCH OBJECTIVES Advertiser should find out: • Who are the customers? • Who are the customers? • What are the likes & dislikes of customers? • How is company’s brand perceived? • How to improve customer’s perception? ADVERTISING RESEARCH PROCESS STEPS to collect relevant information: • PROBLEM DEFINITION. • EXPLORATORY or INFORMAL RESEARCH. • DETERMINING RESEARCH OBJECTIVES. • RESEARCH DESIGN: Sampling methods & size. Scaling. Data collection method. © Copyright Virtual University of Pakistan 26 Advertising and Promotion (MKT621) VU • DATA COLLECTION. • DATA TABULATION & ANALYSIS. • INTERPRETATION CONCLUSION & REPORTING. ADVERTISING RESEARCH COMPONENTS AAdvertising Research STRAATEGIC EVALLU AE ADVERTISING RESEARCH COMPONENTS STRATEGIC Strategy DData collection Organization Document Research (C eative b ief)) Secondaryy PPrimary •From Data obtained •Marketing •Published studies to be compiled objectives source conducted as quantitative •Product •Government by agency & qualitative on specific Information •Target audience •Internet issue. •Benefits •Trade Assoc. •Brand © Copyright Virtual University of Pakistan 27 Advertising and Promotion (MKT621) VU ADVERERTISING RESE RCH COMPONENTS EVAALUATI EV Pre-Campaign Mid- Cam pai n Pr e-Cam ai n Post-Cam aip g • Coincidental • Check return • Define theme surveys • Compare & measure • Pre-test ad. • (assess • Media effectiveness) • achievement of Schedule. • Attitude tests. • objectives. Actual behavior • Tests In market • Brand tracking • Direct response. © Copyright Virtual University of Pakistan 28 Advertising and Promotion (MKT621) VU Lesson 12 ADVERTISING REACH LECTURE OVERVIEW Advertising research ,creative concepts, specific communication objectives, advertisement copy methods ,pre campaign testing and post testing is all what we will study in this lecture. ADVERTISING STRATEGY RESEARCH Components: • TARGET MARKET. • POSITIONING. • COMMUNICATION MEDIA. • CREATIVE CONCEPT. CREATIVE CONCEPT RESEARCH • Team develops several rough copy platforms. • Conduct focus group interviews. • Focus group interviews are combined with other quantitative techniques. SPECIFIC COMMUNICATION OBJECTIVES • Closing an immediate sale (Buy Now because of price) • Building long range consumer franchise. (establish brand recognition & acceptance. • Contribute towards increased sales. (convert non users of the type) • Taking specific step leading to sale. (induce the prospects to sample product) • Imparting information to close sale.(where to buy it) • Building confidence in the company (past & present profitability) • Building images. ( product quality & corporate citizenship) • Creating near term sales to bring prospect closer to purchase. (combating competitor’s claims) BROAD COMMUNICATION OBJECTIVES • INFORMING 1. Make consumers aware of new product. 2. Announcing a new price. 3. Explaining how a product works. • REMINDING 1. Telling consumers where to buy. 2. And when to buy. ADVERTISING COPY METHODS • What assumptions are made for the working of advertising? • What are its objectives? MEASURES • If objective is to persuade then-- A measure of purchase intent will be used. • If objective is attitude shift then -- © Copyright Virtual University of Pakistan 29 Advertising and Promotion (MKT621) VU A measure of sales will be used. • If objective is message overtime then – Controlled market experiments will be used. PRE-TESTING ADVERTISEMENTS Methods PRINT ADVERTISING • Direct Questioning. • Focus groups. • Paired comparison tests. • Order of merit test. • Direct mail test. • Depth interview. • Story telling. TV & RADIO ADVERTISING • Central location test. • Trailer test. • Theatre test. • Live telecast test. • Sales experiment. POST- CAMPAIGN TESTING Methods • Inquiry test. • Sales test. • Recall test. • Recognition test. INQUIRY TESTS • Same placed in different copies in different issues to same medium. • Determining “pulling power” of different copy. • Same offer placed in different ad copy appearing in different magazines & newspapers. • Two pieces of copy reach different audiences. SALES TEST • Through point of purchase displays or direct mail. • Through two matched groups Collecting data. RECALL TESTS AIDED – respondent shown picture of ad with name of sponsor or brand name blanked out. UN AIDED – Only the product or service is given. RECOGNITION TESTS – Mail survey through questionnaires etc. © Copyright Virtual University of Pakistan 30 Advertising and Promotion (MKT621) VU MEDIA RESEARCH: QUESTIONS NEED ANSWERING • What class of media should be used? • Which media vehicle & option be used? • What should be exposure level & how to schedule it? MAJOR AREAS OF RESEARCH Media selection & Media scheduling MEDIA SELECTION • What frequency of message exposure is desired to change behavior to affect sales of their brand? • Maximum number of market segment that can be reached with that frequency. 5 LEVELS TO BE ADDRESSED • Vehicle Distribution. • Vehicle Exposure. • Ad Exposure. • Advertising Perception. • Advertising Communication. Vehicle Distribution • Individual’s medium’s circulation. The process by which, it becomes available. Vehicle Exposure • Exposure of audience to vehicle-reading a given magazine or watching a particular TV program. Ad. Exposure • Requires message physically comes within audience’s attention range. Advertising Perception • Audience has conscious awareness of the ad. Advertising Communication • The audience receives the message in a desired context. • Media scheduling. • Market & sales analysis research. • Market potential analysis. • Sales forecasting. • Sales analysis. • Measuring advertising effectiveness. © Copyright Virtual University of Pakistan 31 Advertising and Promotion (MKT621) VU Lesson 13 PRE – PLACEMENT EVALUATION LECTURE OVERVIEW Pre-placement evaluation of advertisemen t, budget allocation ma gnitude, advertising perception and communication etc will be explained in this lecture. PRE – PLACEMENT EVALUATION of ADVERTISEMENT 1st advertising decision may need searching and screening of suitable advertising ideas. • Quest for new ideas or for new expressions of old ones. • Collection of facts about what people know or feel about a company. • Prediction of how people will probably react to a new advertising idea. Various elements to be included can be evaluated using following methods. Concept Testing . A tea brand emphasized environmental features of mountains etc. Theme Testing. Adv. themes are as follows. UTILITARIAN value of product & for service directed to value for money etc. FOCUSED for specific market segments. INFORMATIVE for information about product. -- no selling message. NON-SPECIFIC Vague & diffused message about product. ACHIEVEMENT ORIENTATION sales profits awards etc. DESCRIPTIVE & PROJECTIVE combination informative & achievement related. NEW PRODUCT, SERVICE SCHEME OR IDEA A new entry in the market. The media factor - helps in following ways: • Number & type of persons exposed to advertising & how often. • Provide environment -- favorable / unfavorable or neutral. • Determine overall impact of a campaign i.e. information communicated, attitudes formed or changed or action may be taken as a result of advertising. Copy Research • Establish whether message content & presentation will perform as desired & what changes may be helpful or required. ACCOUNT PLANNING • Conduct research & gather all relevant information about a client’s product or service brand and consumers in the target market. • To provide key decision makers with all information required to make an intelligent decision. Jon Stell (President & Director Account planning) • Responsible for advertising strategy formulation & implementation in the creative work. • Ensure that each stage of campaign is completed on time. • Possess ability to organize & gather huge amount of relevant information essential to solve problems related to the brand. • Account Planner scheme © Copyright Virtual University of Pakistan 32 Advertising and Promotion (MKT621) VU Initial Briefing • The Budget. • The Company, product or service. • Market. • Distribution. • Name – Brand. • Price. • Packaging. • Competition. BUDGET Magnitude (size) of allocation. The company, product or service • Understand company, its background and how it operates. • To see ,understand ,use & operate the product for first hand experience. MARKET • At whom product or service aimed? • Who is likely to buy it? • Was it to satisfy a particular market need? • What are the buying motives? • How satisfied or dissatisfied are customers? • Does client require marketing advice? • Is agency expected to conduct research. DISTRIBUTION • How does / will it reach consumer? • What is the distribution channel? • Is distribution extensive or intensive? NAME / BRAND • Has it been already decided? • Will advertising agency find a name? PRICE • Has it been already decided? • Will advertising agency help? • What is the selling price? • Is it price conscious market? PACKAGING • Has it been already decided? • Will advertising agency provide the design? COMPETITION • Is product unique? • Does it compete with an established product group? • If expensive what specific consumer group it competes with? REPORT TO AGENCY HEAD -- DEPARTMENT HEAD and finally leading to CAMPAIGN PREPARATION. © Copyright Virtual University of Pakistan 33 Advertising and Promotion (MKT621) VU Lesson 14 WORKING OF ADVERTISING LECTURE OVERVIEW Continuing with the subject advertising this lecture will co ver its working ,illustrate various communication models ,message and media mix factors. . WORKING OF ADVERTISING • Advertisement should raise awareness and change brand attitudes. • Advertising should provide strong reasons “Why” a specific brand is superior. 12 Steps to develop effective campaign 1. Identifying target market & positioning 2. Deciding advertising objectives. 3. Kind of communication effects needed. 4. How consumers respond to advertising. 5. Decide the theme. 6. Develop the campaign. 7. Decide the advertising appeal. 8. Develop copy plat form. 9. Formulate message strategy. 10. Media Mix. 11. Schedule, frequency & pattern of ad. release 12. Evaluation of campaign. BBASIC COMMUNICAATTION MODEL NOISE S M C M R sender coded decoded source message channel message receiv ver (advertiser)(agency) (media) (ad.) (target) FEED BACK © Copyright Virtual University of Pakista34 Advertising and Promotion (MKT621) VU TWO WAY COMMUNICA ATTION MODEL source coded codedd sender message message receiver (S) ((M) channel (M) (R) (C) decoded source receiver rreceiver message sender (R) (R) (M) (S) (R) (R) (M) (S) AAn Interactiv (2 w y) comm nu it oi model l ADVERTISING COMMUNIC TION MADELL NOISE Externall • Public opinion • Marketing strategy RECEIVER: SOURCE: MESSAGE: MEDIA MIX: Message Advertiser Encoding Channels reception (objectives) Strategy & (one - way & & response: Tactics Two way) . Perception . Learning (by agency) . Persuasion. . Action NOISE : Internal Perceived needs, Information process attitudes, opinions and others FEED BAACCK © Copyright Virtual University of Pakistan 35 Advertising and Promotion (MKT621) VU SOURCE or THE ADVERTISER • Advertiser and Advertising agency are the sources. • They decide objectives for campaign in terms of impact from the message. Effects are PERCEPTION – LEARNING-PERSUASION & BEHAVIOUR ( SALES ) (Message effectiveness factors chart) Key Message Effects Surrogate Measures ComT m oolication Perception Exposure Advertis ing ;Public relations(PR) Attention Advertising ; sales promotion Interest Advertising ; sales promotion; PR Memory: recognition/recall Advertising ; sales promotion; PR Learning Understanding Public relations; personal selling Direct marketing ; advertising Image and association Advertising ; PR., point of purchase Brand links Ads etc. Persuasion Attitudes: form or change Public relations :personal selling Preference / intention Sales promotion Emotions and involvement Advertising :Public relations Personal selling Perbslif, Conviction, selling & direct marketing commitment Behavior Trial se Personal lling; direct marketing Purchase Sales promotion; personal selling marketing Direct Repeat purchase, use more Sales promotion; personal selling, Direct marketing Noise is any factor that hinders or distorts the delivery of advertising message to the target audience. EXTERNAL FACTORS INTERNAL FACTORS Marketing strategy Target Audience need purchase history General Pattern of consumer trends Information process ability. Competitors marketing communication Level of avoidance of advertising. Public opinion. © Copyright Virtual University of Pakistan 36 Advertising and Promotion (MKT621) VU MESSAGE & MEDIA MIX FACTORS Message Key Factors. • Analysis of marketing & advertising strategy • Target Audience. • Media Mix Key Factors. • A Message reaching a target audience. • Effectiveness of media plan • Best chance of delivering the message. • Different media mix required to reach different target audience THE RECEIVER: Message Reception and Response THINK FEEL DO Learning Persuasion Behavior © Copyright Virtual University of Pakistan 37 Advertising and Promotion (MKT621) VU Lesson 15 ADVERTISING RESPONSE HIERARCHY MODELS OVERVIEW Advertising has become a very demanding profe ssion in this now very competitive world. In this lecture we will explain various models to judge the response to various efforts. Besides this we will also explain about a dvertising themes and the proce ss required to get or develop a unique and big idea along with key points for developing an advertising campaign.. ADVERTISING REPONSE HIERARCHY MODELS 4 response hierarchy models: 1. The AIDA model. 2. Hierarchy of effects model. 3. Innovation-adoption model. 4. Information processing model. The AIDA model Developed by E. K. Strong Basically means draw / attract attention Be interesting - Create desire - Initiate action A I D A stands for : A for Attention I for Interest D for Desire A for Action AIDA MODEL A IDA M ODEL Stimuli (advertisement or Attention Interest Desire Action Other marketing Activiti)s Cognitive Affective Behavior Stage Stage Stage (Thinking / Learning) (Feeling) (actig / doig)g) © Copyright Virtual University of Pakistan 38 Advertising and Promotion (MKT621) VU HIERACHY OF EFFECTS MODEL Awareness Understanding Knowledge Coggnitive Stg e Linking Preference Conviction Linking Preference Conviction Affctive Stagee Purchase Behavior Stage INNOVAT ON –AD O T ON MO E L AAwareness CCognitive Sta e Interest Evaluation Affctive Stagee TTrial Adoption Behavior Stage © Copyright Virtual University of Pakis39n Advertising and Promotion (MKT621) VU IINFORMATION PROCESSING MODELD L Presentation Attention CComprehension Cognnitive Stg e Yielding Retention Yielding Retention Affective Stagee BBehavior Behavior Stagee Low involvement learnnin model ALL 4 MO E
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