Search for notes by fellow students, in your own course and all over the country.
Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.
Title: Advertising and Sales Promotion
Description: Advertising and Sales Promotion
Description: Advertising and Sales Promotion
Document Preview
Extracts from the notes are below, to see the PDF you'll receive please use the links above
PONDICHERRY UNIVERSITY
(A Central University)
DIRECTORATE OF DISTANCE EDUCATION
Advertising and Sales Promotion
Paper Code: MBMM 4003
MBA - MARKETING
IV - Semester
Author
Sk
...
Nizamuddin
Asst
...
1
...
1 – Advertising - An Introduction
1
...
2 – Advertising
Framework
Organizing
23
1
...
3 – Advertising and Advertising Agency Interface
29
1
...
4 – Strategic Advertising Decision
38
1
...
5 – Strategic Media Planning
50
2
...
1 – Copy Decision
59
2
...
2 – Creativity in Advertising
71
2
...
3 – Copy Testing
83
3
...
1 – Media Decision
97
3
...
2 – Internet as an advertising medium
119
3
...
3 – Permission Marketing
128
4
...
1 – Measuring Advertising Effectiveness
137
4
...
2 – Advertising in International market place
153
4
...
3 - Advertising and principles of Integrated
Marketing Communication and image building
165
5
...
1 – Sales Promotion
177
5
...
2 - Sales Promotion Strategies and Practices
194
5
...
3 – Brand Equity
203
5
...
4 – Linking Advertising and Sales Promotion
216
Planning
and
3
MBA (Marketing) - IV Semester
Paper Code: MBMM 4003
Paper - XVIII
Advertising & Sales Promotion
Unit - I
Advertising - an introduction- Origin and Development - Definition and
Classification - Planning Framework - Organising Framework - the Advertiser and the
Advertising Agency interface - Strategic Advertising Decisions - Setting Advertising
Objectives - The Budget Decision - Preparing the Product and Media Brief
Unit - II
Copy Decisions - Visualization of Ad Layout - Elements of Ad Copy and Creation
Principles of verbal versus visual thinkers - Styles and Stages in advertising copy creationCopy (Pre-) Testing methods and measurements
...
Unit - IV
Measuring Advertising Effectiveness - Control of Advertising by practitioners,
media and the market - Advertising in the International Market-place - Advertising and
Principles of Integrated Marketing Communication and Image Building
...
Brand Equity - Concepts and Criteria, Building, Measuring and Managing Brand
Equity, Linking Advertising and sales promotion to achieve ‘brand-standing’ - Leveraging
Brand Values for business and non-business contexts
...
Kazmi & Batra, ADVERTISING & SALES PROMOTION,Excel Books, 2008
2
...
2008
3
...
Kelley & Jugenheimer,ADVERTISING MEDIA PLANNING
MANAGEMENT APPROACH, Prentice Hall, India
...
J
...
6
...
7
...
8
...
New Delhi
...
Wells, Burnett &Moriarty, ADVERTISING PRINCIPLES AND PRACTICES, PrenticeHall
10
...
New Delhi
2
UNIT – I
Unit Structure
Lesson 1
...
2 – Advertising Planning and Organizing Framework
Lesson 1
...
4 – Strategic Advertising Decision
Lesson 1
...
1 - Advertisement - An Introduction
Learning Objectives
After reading this lesson, you should be able to:
➢➢
Understand the concept of advertising
...
Many believe that advertising reflects the needs of the times
...
Advertisements are seen in newspapers,
magazines, on television and internet and are heard on radio
...
3
It seems almost impossible to remain totally neutral and not take any notice of modern
day advertising
...
Many suitable adjectives are used to describe
advertising, depending on how an individual is reaching, such as great, dynamic, alluring,
fascinating, annoying, boring, intrusive, irritating, offensive, etc
...
It is part of our social, cultural and business environment
...
In today’s
environment, not only are advertisers closely examined by the target audience for whom
that advertisement are meant, but by society in general
...
The ‘Four Ps’ concept of the marketing
mix, developed by Philip Kotler, and widely adopted by marketing teachers, creates four
division of the mix, namely, product,, price, promotion and place
...
Under promotion mix there are several components like advertising,
personal selling, sales promotion, publicity, direct marketing etc
...
Marketing Mix
Product
Advertising
Promotion
Price
Personal
Selling
Sales
Promotion
Publicity
Place
Direct
Marketing
Origin of Advertising
It has been wrongly assumed that the advertising function is of recent origin
...
The seller in primitive times relied upon his loud voice to attract attention and
inform consumers of the availability of his services
...
Often it
became necessary for him to resort to persuasion to pinpoint the advantages of his products
...
The invention of hand press increased the potentialities of advertising
...
Another important event was the emergence of
the pamphlet as an advertising medium
...
The low
cost of posters and handbills encouraged a number of publishers to experiment with other
methods
...
Our knowledge of advertising in ancient times is quite
fragmented
...
The diggings by archaeologists, in countries rimming the Mediterranean
sea, has unearthed a Babylonian Clay tablet of about 3000BC, Bearing inscription for an
ointment dealer, a scribe and a shoe mark, Romans and their predecessor knew that “it pays
to advertise”
...
Before the invention of printing from movable type (about AD 1438) by Johann
Gutenberg there were three forms of advertising
...
This led to reputation building of
particular artisans by word of mouth
...
Signs: Phoenicians, and other traders, painted commercial messages on prominent
tocks along trade routes that they frequented
...
This is an example of ancient outdoor advertising, Archaeologists have
revealed, from excavations at Pompeii, that little shops had inscriptions on walls near the
5
entrance to inform the passers-by whether the shop sold pottery, wine, bread, or any other
goods
...
In Greece, during the golden age, town criers were paid to
go around town spreading news and making announcements in the streets of Athens
...
In rural India, town criers
were used till as late as the 1950s
...
William Caxton of London printed the
first advertisements
...
The printed newspaper emerged from the newsletters, which were
handwritten by professional writers for limited circulation among the nobles and others
...
The ad praised the virtues of a mysterious drug
...
The first advertisement
appeared in an English newspaper in 1625
...
The first ad
that appeared offered a reward for the capture of a thief
...
By the middle of the 17th century, weekly newspapers called ‘mercuries’ started to
appear in England
...
Importers of products new to England were prominent advertisers
...
Contemporary Advertising
Most of the growth in advertising has happened after Second World War
...
Western Europe and the Far East started to compete in world markets and advertising
became an essential part of this new economy
...
After 1946, quite a number of
medium and small companies entered the international market
...
Specialists in market research, sales promotion, merchandising and public relations
started running the advertising industry during the 1950s
...
Rossers Reeves of Ted Bates Agency was probably
the most successful among copywriters
...
His argument was that the marketer should discover one important attribute of
his product
...
It was during the 1950s that television emerged as
one of the most spectacular development in the history of advertising
...
It was mainly because of the efforts of Leo Burnett, David Ogilvy and William
Bernbach that creativity and soft sell were reintroduced in advertising
...
Ogilvy, with the Hathaway shirt man wearing an
eye-patch, introduced a unique type of intelligence and class to advertising
...
“We try harder because we are No
...
It seems relevant to especially look at the development of Indian advertising
...
Walter Thompson and D J Keyemer, were the ones that laid
foundations of professional advertising in India in the early 1950s
...
The positioning era had not dawned till
the 1950s and it was the time of “ART in INDUSRTY”
...
Even in the mid – 1960s, advertising professionals had not heard of “positioning”
...
He
was formerly associated with D J Keymer
...
Indians started Dattaram, Sista’s and National in Mumbai and Tom and Bay in
Pune
...
Kersey Kartrak, an exceptionally talented advertising professional, helped in
nurturing many talents that include Arun Nanda, Mohammad Khan and Ravi Gupta in
the mid-1960s
...
Other important names in Indian advertising include K Kurian, Sylvie
da Kunha, Josephine Turor, Bobby Kooka, Subbash Ghosal and some others
...
The
major trend of the 1970s was a professional approach and consolidation
...
Advertising is rarely a stable business
...
Ads in the pre-independence period in India were
mainly addressed to the affluent class
...
After independence, when the princely states
and Zamindari system were abolished, a new middle-class emerged
...
Advertising Club of Mumbai celebrated its silver jubilee in March 1980 and there
was a workshop on twenty-five years of Indian advertising
...
There are professional
bodies that represent the advertiser, the advertising agency and the media
...
The comment of former Chief Executive of Hindustan Thompson Associates, Mr
...
He said, “Advertising is absolutely essential
...
But the
trouble with Indian advertising is that it is not rooted in our ethos
...
But there should be a mix,
so that advertising can sell and yet retain the Indian flavor”
...
However, progress in the area of relating to the
customers is slow
...
8
Advertising– Definition
“Advertising is any paid form of non-personal presentation and promotion of ideas,
goods and services by an identified sponsor
...
“Advertising is controlled, identifiable information and persuasion by means of mass
communications media
...
” – John J Burnett
...
Advertising is persuasive communication
...
”
- J Thomas Russell and W
...
The elements of advertising
are:
(i)
It is a mass communication reaching a large group of consumers
...
(iii)
It is paid non-personal communication, not delivered by an actual person, nor is
it addressed to a specific person
...
(v)
Advertising can be economical, for it reaches large groups of people
...
(vi)
The communication is speedy, permitting an advertiser to speak to millions of
buyers in a matter of a few hours
...
The advertiser signs his name to his
advertisement for the purpose of publicizing his identity
...
It should give
them more satisfactory expenditure of their rupees
...
(iii)
The content of the advertisement is within the control of the advertiser, not the
medium
...
Advertisement that fails to
influence anyone, either immediately or in the future, is a waste of money
...
That is,
advertising expenses should not increase disproportionately
...
What is excluded from Advertising?
Advertising is not an exact science
...
(i)
Advertising is not a game, because if advertising is done properly, both the buyer
and the seller benefit from it
...
Advertiser cannot afford to play with advertising
...
(iii)
Advertisements are not designed to deceive
...
10
The activities excluded from advertising are:
➢➢
The offering of premiums to stimulate the sale of products;
➢➢
The use of exhibitions and demonstrations at fairs, show and conventions;
➢➢
The use of samples and activities, involving news releases and the activities of
personal selling forces;
➢➢
The payment of advertising allowances which are not used for advertising;
➢➢
The entertainment of customers
Advertising Objectives
Each advertisement is a specific communication that must be effective, not just for
one customer, but for many target buyers
...
Advertising is a form of promotion and like
promotion; the objectives of advertising should be specific
...
The objectives of advertising
were traditionally stated in terms of direct sales
...
Advertising seeks to condition the consumer so that he/she
may have a favorable reaction to the promotional message
...
The basic objectives of an advertising programme may be listed as below:
(i)
To stimulate sales amongst present, former and future consumers
...
g
...
(ii)
To communicate with consumers
...
(iii)
To retain the loyalty of present and former consumers
...
(iv)
To increase support
...
(v)
To project an image
...
This message is aimed not only at consumers, but
also at the government, shareholders, and the general public
...
It can secure leads for salesmen and middlemen by
convincing readers to request more information and by identifying outlets handling the
product
...
It
can help train dealers salesmen in product uses and applications
...
Advertising
is to stimulate market demand
...
Advertising
is efficiently used in combination with personal selling or point-of-purchase display, to
directly move customers to buying action
...
Outlay on advertising certainly is the voucher
...
The attempt by army recruitment is based on
a substantial advertising campaign, stressing the advantages of a military career
...
Advertising
assumes real economic importance
...
The production cost per unit of output is lowered
...
Lower consumer prices then allow these products to become available
to more people
...
In short, advertising pays
for many of the enjoyable entertainment and educational aspects of contemporary life
...
Advertising helps to increase mass marketing while helping the consumer to choose
from amongst the variety of products offered for his selection
...
Because of this fact, there is a
tremendous scope for development so that it may be productively used for the benefit of
producers, traders, consumers, and the country’s economy
...
Product – Related Advertising
A
...
Competitive Advertising
C
...
Public Service Advertising
3
...
Advertising Based on Demand Influence Level
...
Primary Demand (Stimulation)
b
...
Institutional Advertising
C
...
Informative Product Advertising
b
...
Reminder-Oriented Product Advertising
4
...
Consumer Advertising
B
...
Trade Advertising
A
...
Wholesale Advertising
6
...
National advertising
B
...
Regional advertising
7
...
Product advertising is of three types-
13
A
...
Competitive Advertising
C
...
Pioneering Advertising
This type of advertising is used in the introductory stages in the life cycle of a
product
...
It conveys information
about, and selling a product category rather than a specific brand
...
Such advertisements
appeal to the consumer’s emotions and rational motives
...
Competitive Advertising
It is useful when the product has reached the market-growth and especially the
market-maturity stage
...
It seeks to sell a specific brand
rather than a general product category
...
Direct Type: It seeks to stimulate immediate buying action
...
Indirect Type: It attempts to pinpoint the virtues of the product in the expectation
that the consumer’s action will be affected by it when he is ready to buy
...
14
iii
...
Generally in such times, the advertiser wants to keep
his product’s name before the public
...
Public Service Advertising
This is directed at the social welfare of a community or a nation
...
Advertisement on not mixing drinking and driving
is a good example of public service advertising
...
Functional Classification
Advertising may be classified according to the functions that it is intended to fulfill
...
(ii) It may promote either the brand or the firm selling that brand
...
I
...
Primary Demand Stimulation
Primary demand is demand for the product or service rather than for a particular
brand
...
Some advertise to stimulate primary demand
...
At this time, the marketer must inform consumers
of the existence of the new item and convince them of the benefits flowing from its use
...
B
...
To establish a differential advantage and to acquire an acceptable
sort of market, selective demand advertising is attempted
...
The advertiser attempts to differentiate his brand and to increase
the total amount of consumption of that product
...
It may either be direct or indirect type
...
Institutional Advertising
Institutional Advertising may be formative, persuasive or reminder oriented in
character
...
It aims at building for a firm
a positive public image in the eyes of shareholders, employees, suppliers, legislators, or the
general public
...
This type of advertising
is used frequently by large companies whose products are well known
...
Institutional advertisements are at consumers or focus them upon other groups,
such as voters, government officials, suppliers, financial institutions, etc
...
It is
also a useful method of introducing sales persons and new product to consumers
...
It notifies the consumers that the company is a responsible business entity and is
patriotic; that its management takes ecologically responsible action, is an affair- motiveaction employer, supports the socialistic pattern of society or provides employment
opportunities in the community
...
HMT
once told the story of the small-scale industries supplying it with component parts, thus
indicating how it aided the development of ancillary industries
...
Product Advertising
Most advertising is product advertising, designed to promote the sale or reputation
of a particular product or service that the organization sells
...
The marketer may use such promotion to generate exposure attention,
comprehension, attitude change or action for an offering
...
It is of three types:
A
...
Persuasive Product Advertising
C
...
Informative Product Advertising
This form of advertising tends to characterize the promotion of any new type of
product to develop an initial demand
...
It was the original approach to advertising
...
Persuasive Product Advertising
Persuasive product advertising is to develop demand for a particular product or
brand
...
C
...
It is used in the maturity period as well as
throughout the declining phase of the product life cycle
...
Consumer Advertising
B
...
Consumer Advertising
Most of the consumer goods producers engage in consumer product advertising
...
Baring a few, these products are all package goods that the
consumer will often buy during a year
...
B
...
They rely on this form of
promotion merely out of fear that their competitors may benefit if they stop their advertising
efforts
...
The objectives vary according to the firm and
the situation
...
The basic appeals tend to increase the rupee profits of the buyer or help in achieving
his non-monetary objectives
...
Advertising agencies are much less useful in industrial advertising
...
Retail Advertising
b
...
Retail Advertising
This may be defined as “covering all advertising by the stores that sell goods directly
to the consuming public
...
19
Advertising agencies are rarely used
...
The
result is that advertising is often relegated to a secondary position in a retail store
...
It refers to advertising
costs between retailers and manufacturers
...
B
...
They would benefit from adopting some of the image-making techniques used by
retailers – the need for developing an overall promotional strategy
...
Advertising based on Area of Operation
It is classified as follow:
A
...
Regional Advertising
C
...
This type of advertising is undertaken
mostly by a marketer of branded product or services, sold through different outlets in the
distribution chanel, wherever they may be located and appears in both national and regional
media like print, electronics, outdoor etc
...
In reality this does not necessarily mean that the product is
sold nationwide
...
National advertising often identifies a specific target audience and attempts to create
an image for the product
...
B
...
For example, Amrit Vanaspati based
in Rajpura claims to be the leading hydrogenated oil producer in the Punjab
...
P
...
C
...
These advertisements
save the customer time and money by passing along specific information about products,
prices, location, and so on
...
21
Advertising According to Medium
The most common classification of advertising is by the medium used
...
This classification is so common in use that it is mentioned here only for the sake of
completeness
...
Many believe that advertising reflects the needs of the times
...
Advertisements are seen in newspapers,
magazines, on television and internet and are heard on radio
...
****
22
Lesson 1
...
The advertising manager is involved in the development, implementation, and overall
management of an advertising plan
...
Decision making involves choosing
from among the alternatives
...
Thus, the essence of planning is to find out the feasible alternatives and
reduce them to decisions
...
Planning Framework
Advertising planning and decision making depends on internal and external factors
...
The
three legs of advertising planning concern are the
➢➢
Objective setting and target market identification,
➢➢
Message strategy and tactics, and
➢➢
Media strategy and tactics
...
Once developed, the advertising plan has to be implemented as an advertising
campaign, in the context of social and legal constraints and with the involvement of various
facilitating agencies
...
1
...
This
means that new research studies will be undertaken on company history and experience
...
The research encompassed market segmentation studies,
concept testing, and a field experiment
...
An existing “Reach Out” campaign although
successful, did not appear to get through to a large group of people who had reasons to call
but were limiting their calls because of cost
...
Five copy alternatives were subsequently developed and tested, from which “Cost of
Visit” was chosen
...
One estimate was that by switching 530 million
in advertising from “Reach Out” to “Cost of Visit”, an incremental gain in revenue of $22
million would result in the first year and would top $100 million over five years
...
2
...
Situation analysis begins by looking at the aggregate market for the product, service,
or cause being advertised, the size of the market, its growth rate, seasonality, geographical
distribution
...
Competitive Analysis
Advertising planning and decision making are affected by competition and the
competitive situation facing the advertiser
...
It should include an analysis of what current share the brand now has, what shares its
competitors have, what share of a market is possible, from which competitors the increased
share of a market is possible? The planner also has to be aware of the relative strengths
and weaknesses of the different competing companies and their objectives in the product
category
...
The Advertising Plan
As pointed out earlier, advertising plan and decision making focus on three crucial
areas; objectives and target selection, message strategy and tactics, and media strategy and
tactics
...
An important part of
the objective is the development of a precise, disciplined description of the target audience
...
It is best to consider directing the advertising to more selected groups to develop
stimulating copy
...
26
Message Strategy and Tactics
Messages strategy must decide what the advertising is meant to communicate –
by way of benefits, feelings, brand personality, or action content
...
The decisions, such as the choice of a spokesperson, the use
of humor or fear or other tones, and the selection of particular copy, visuals, and layout, are
what we call “message tactics”
Media Strategy and Tactics
Message strategy is concerned with decisions about how much is to be allocated to
create and test advertising copy, media strategy concerns decisions on how many media
rupees to spend on an advertising campaign
...
) or media vehicles (Reader’s Digest, etc
...
External Factors
The external factors in the planning framework are environmental, social and legal
considerations
...
In developing specific advertisement, there are
certain legal constraints that must be considered
...
What is deceptive is often difficult, because different people can have different perceptions
of the same advertisements
...
Even more difficult consideration for people involved in the advertising effort is
broad social and economic issues as stated below
...
➢➢
Is it more irritating than entertaining?
➢➢
Is an intrusion into an already excessively polluted environment?
➢➢
Advertising directed at children
...
The advertising manager is involved in the development, implementation, and overall
management of an advertising plan
...
Decision making involves choosing
from among the alternatives
...
Advertising planning and decision making depends on internal and external
factors
...
****
28
Lesson 1
...
From a planning point
of view much local advertising is done without the services of an advertising agency or a
research supplier
...
Many advertising decisions involve choosing facilitating agency alternatives
...
Advertising Industry
In advertising agency there are three-inter-relating groups - the advertiser, agency
and media
...
Advertising agencies are of two basic types, viz
...
An independent agency is a business that is free to compete for and select its clients
...
A house agency is not completely free
to serve other clients
...
The advertising agency provides for the client a minimum of:
(i)
Media information, such as the availability of time and space ;
(ii)
Creative skills, such as “campaign planning” and “appeal planning” and
(iii) Research capabilities, such as providing brand preference data
...
Advertising agencies
started as space brokers for the handling of the advertisements placed in newspapers
...
Their main job today is not
to aid media but to serve advertisers
...
In
order to get credit facilities and full agency discounts from the media, agencies need to get
accreditation from the Indian Newspaper Society (INS)
...
In case advertisers
do not release payment to the agency against advertisements placed in the media by the
agency on their behalf or in case the agency receives money from the clients but fails to pay
the media, the INS steps in
...
Functions of an Advertising Agency
The broad functions of an advertising agency are planning, preparing, and placing
advertisements
...
The broad objectives of the advertising campaign are decided after talks with
the client team during which the agency tries to find out about the various characteristics
of the product and its strengths and weaknesses in relation to competitive brands
...
After gathering insight about the brand, the agency is expected to be objective in
its recommendation
...
It is here that the
account planning team of the agency steps in to gather consumer insights, find out about the
distribution chain, packaging and point of purchase, and to study the advertising agencies
of competing brands
...
This is followed by work on the ‘big idea’, visual inputs, and media strategy and
options in the proposed campaign
...
The media planning department within the agency or
31
a media buying agency that works for the agency has to work closely with other specialist
departments while deciding the media strategy and choice of media
...
Once a go-ahead is given, the department has to issue contracts to publishers, channels,
radio stations, outdoor advertisers, etc
...
Purpose of Advertising Agency
Most of the advertisers’ use the services of advertising agencies Advertisers can
have more than one advertising agency for different services at any given time
...
➢➢
Advice and counsel on advertising and media strategy and tactics
➢➢
Prepare and develop print, outdoor and electronic advertisements
...
➢➢
Help and counsel on sales promotion and other communication task
Types of Advertising Agencies
Advertising agencies are of various types which are as follows
Full-Service Agencies
A full service agency provides whole range of services to clients, both advertising
and non-advertising
...
Non-advertising functions may include public relations, making corporate identity
plans, packaging, organizing fairs, exhibitions and training material, etc
...
32
A La Carte Agencies
An a la carte agency is such type of agency where one can order according to their
choice, can be had from a full service agency or small special outfits
...
Their services are used
by small and medium-size agencies which may not be in a position to afford highly paid
creative writers or media planners
...
House Agencies
A house agency is an advertising agency established by a company to look after
its advertising requirements
...
With time, the agencies may start doing outside work also
...
and Reliance respectively
...
Others feel that they can accomplish the advertising objectives
more effectively than the agencies themselves
...
Various organizations use captive agencies that work primarily or
solely for the organization
...
It is especially important that the marketer fully inform the
agency personnel of his marketing strategy and advertising objectives
...
The marketer gains a number of benefits by employing agencies
...
2
...
33
3
...
4
...
They bring
objective and unbiased viewpoints to the solution of advertising and other marketing
problems
...
The discounts that the media offer to agencies are also available to advertisers
...
6
...
It can do more for the same amount of money
...
The company can also get an objective, outside viewpoint from an agency, assuming
that the agency representatives are not acting as “Yes man” in order to keep the
advertiser’s account
...
A related point is that the company can benefit from the agency’s experience with
many other products and clients
...
Another advantage is that agency feels a greater pressure than the company’s own
department to produce effective results
...
10
...
Making the Final Decision
When you judge the final agency work, keep the following points in mind:
If, despite your instructions, an expensive and glossy presentation has been produced,
it is clear that the agency is desperate for business and is prepared to curt down on the
service to existing clients in the hope of netting a new account
...
Trans World Airlines (TWA) decided to remain with Foote, Cone &
Belding after hearing presentations from 17 other invited agencies
...
The Client, believing reports that the TWA presentations
set back the contending agencies by as much as one million dollars, asked his shop to invest
a proportionate amount of money in a new campaign for his top product
...
Lastly, ask yourself, and if necessary, ask the agency, too:
Is the team to produce the advertising really made up of the people who are going to
handle your account afterwards? Or was it produced by the agency’s star performers who
spend most of their time on new business presentations and the rest of it on a few favoured
accounts?
Selecting an Agency
While selecting an advertising agency, the importance of compatibility should be
borne in mind
...
Though this investment period is
long, it pays rich dividends
...
Here are some points that can help the advertiser to:
(i) Choose an agency ; and
(ii) Get the best out of an agency
...
The agency should have experience in selling goods and ideas
...
The company should be financially sound and should be able to cover both local and
national advertising campaigns
...
A big agency is
not necessarily better than a small agency
...
The agency should be able to use both research and brains to solve problems
...
Getting the Best Out of an Agency
➢➢
The agency should be given all possible information if good service is expected from
it
...
➢➢
The agency should be challenged to produce results
...
It should also be
favourable
...
➢➢
The advertiser should appoint a special person for liaison work between his company
and the agency, and not expect the agency to contact the junior staff
...
➢➢
The agency should be paid extra, if it does any extra work
...
It is about time that the top management looked upon advertising as a basic capital
investment –a long-term investment –which does not necessarily always bring in immediate
returns
...
It has to sell products today and sell the name of the company, so that tomorrow’s
products, too, will sell
...
The broad functions of an
advertising agency are planning, preparing, and placing advertisements
...
The broad objectives of
the advertising campaign are decided after talks with the client team during which the
agency tries to find out about the various characteristics of the product and its strengths
and weaknesses in relation to competitive brands
...
4 - Strategic Advertising Decision
Learning Objectives
After reading this lesson, you should be able to:
➢➢
Understand the importance of planning and strategy in advertising
➢➢
Discuss the planning process
➢➢
Understand advertising budget
➢➢
Examine different approaches in advertising budget allocation
Introduction
Strategy, tactics, and campaign are words drawn from military dictionary
...
Brand management in highly competitive world is
also like warfare
...
As per Leo Bogart in his book ‘Strategy in Advertising’, ‘Strategy is the art of
deploying available resources to attain objectives in the face of active opposition’ in his
book he state that ‘in a competitive economy, the success of a company often hinges on its
ability to master the strategy of advertising
...
He argues that advertising is put to use to achieve certain commercial objectives
...
An advertisement strategy, hence, can be described as the
communication that convey brand’s primary benefits, that is, how it can solve a consumer
need
...
In fact, a very large percentage of product-
38
oriented advertising includes some mention of features and benefits offered by the
marketer’s product
...
For instance, if a beverage company has purchased
the brands of another company resulting in a brand name change, an advertising
message may stress “New Name but Same Great Taste”
...
e
...
Alternatively, advertising can be used to encourage
customers to purchase now before a scheduled price increase takes place
...
For instance, special sales promotions, such as contests,
may be announced within an advertisement
...
This may be especially effective for a
company entering a new market where advertising may help reduce the uncertainty
a buyer has about a new company
...
Also, advertising can be used to let customers know locations where a
product can be purchased
...
Before a manager even begins to think about specific communication
issues, it is important to review the marketing plan
...
This sort of information often has a significant bearing
upon what it is that you will want to communicate to your target audience, and it provides
important background information for those charged with creating massage
...
Whom we
select must be consistent with the brand’s marketing objectives
...
If the marketing strategy
is to increase usage, this means focusing upon existing users
...
Where Sales or Usage to Come from?
Here, we must decide if our primary emphasis should be users or non-users of our
brand
...
Communication strategy will differ significantly, depending upon which of
these target audience action objectives is used
...
Too often this profile includes only demographic characteristics for example
female 25-45 with children and psychographic or lifestyle descriptions like ‘outgoing with an
interest in cultural activities’ are not enough
...
This means
knowing what the proposed target audience’s category behaviour is now, or is likely to be in
response to our campaign, and how their underlying brand attitudes and motivation affect
choices
...
It is easy to fall in to the trap of thinking only about consumers when
considering a target audience
...
Step 2: Understand Target Audience Decision Making
Once the target audience has been selected, next step is to gain an understanding
of how that target audience goes about making purchase decision in the category
...
40
Step 3: Determine the Best Positioning
The third step in the strategic planning process is to determine how best to position
your brand, While the basic brand positioning will no doubt already be established (except
the new products), the strategic planning process must address the particular communication
positioning that will be adopted for your brand
...
Step 4: Develop Communication Strategy
In developing a communication strategy we must first establish our communication
objectives by selecting the desired communication effects
...
➢➢
Communication Effects
Communication objectives are quite simply the communication effects for which we
are looking
...
Most of the time this is not an issue, but for innovative new products, for
example, until there is awareness of the new product as such, it is almost impossible to
create interest in a brand of that new product
...
But, when they were developed, it was necessary to establish the ‘need’
by introducing the product category itself to the public
...
Category need may also be a communication objective where demand is category
seems to be slackening
...
If this occur, it may be necessary to remind people of a latent category
41
need
...
Brand Awareness
Brand awareness is always a communication objective, regardless of what type of
marketing communication you may be using in your campaign
...
Without
this essential link between the message and the brand, there is no chance for effective
marketing communication
...
Brand attitude strategy is at the heart of
developing a communication strategy and all other forms of marketing communication
...
While this is almost
always a marketing objective, it is not often a primary communication objective
...
Without brand awareness and brand attitude
there can be no brand purchase intention
...
This is the first step in considering media selection, and one of the most
important things the manager will need to think about at this point is the different relative
strengths of advertising and promotion in satisfying the communication objectives
Basically both advertising and promotion should have a significant effect upon
brand awareness, the primary strength of advertising is brand attitude, while the primary
strength of promotion is brand purchase intention, and neither advertising nor promotion
can have much of a direct effect upon category need
...
In general, a limited promotion budget may impel the management to
use types of promotion that would not be employed otherwise, even though they are less
effective than the others
...
Organizations with small budgets may be forced to use types of advertising that are less
effective than others
...
There are organizations with small promotion budget which take the opposite
course of action
...
Some marketers advertise in expensive ways (through classified advertisement in
newspapers and magazines) and spend virtually nothing on personal selling
...
Determining the results of advertising and consequently the amount of money to
be allocated in advertising budget are complicated by several major difficulties as follows:
(i)
The effects of external variables such as population, or income, changes on
economics conditions and competitive behaviour;
(ii)
Variations in the quality of advertising;
(iii)
Uncertainly as to the time-lag effect of advertising; and
(iv)
The effect of the firm’s other marketing activities, such as product
Improvement and stepped-up personal selling
...
Advertising Budget involves the allocation of a portion of the total marketing
resources to the advertising function in a firm
...
Advertising budgeting
should be based on a careful analysis of the opportunity for using advertising
...
How much should a firm spend on advertising? A firm may choose to spend
promotion funds up to the point where marginal cost equals marginal revenue
...
The allocation procedure is to increase advertising expenditure until each rupee
of advertising expense is matched by an additional rupee of profit
...
The difficulty arises in the identification of
this optimal point
...
Marginal Analysis for Advertising Budgeting
(` in thousands)
Alternative
Advertising
Expenditure
Marginal
Net
Advertising
Revenue
Costs
Marginal
Revenue
Total
Profit
Marginal
Profit
30
-
20
-
-10
-1
35
5
24
+4
-11
-1
40
5
30
+6
-10
+1
45
5
40
+10
-5
+5
50
5
55
+15
+5
+10
55
5
77
+22
+22
+17
60
5
88
+11
+28
+6
65
5
95
+7
+30
+2
70
5
98
+3
28
-2
75
5
99
+1
24
-4
80
5
99
0
+19
-5
85
5
97
-2
+12
-7
90
5
95
-2
+5
-7
95
5
90
-5
-5
-10
100
5
83
-7
-12
-7
This analysis assumed that the management desires to maximize the profit
contribution from advertising
...
The net revenue refers to sales minus all the non-advertising costs which are
44
based on a pre-determined non-advertising marketing mix
...
So,
` 5,000 represents the absolute minimum advertising budget for the company to make any
profit at all
...
Marginal analysis relies on sales and profitability, which are
important to assess the potential contribution of advertising expenditures
...
Implementing the marginal analysis is a difficult task
...
It is also difficult to predict the time pattern of the
contribution, for it cannot be assumed that advertising will have an immediate impact
...
To cope with the realities of advertising budgeting, a variety of procedures have been
adopted, which vary considerably when compared with the marginal analysis framework
...
Many companies resort to more than
one method of determining the size of their advertising budgets
...
Profit Maximization
The best method for determining advertising expenditure is to identify a relationship
between the amount spent on advertising and profits, and to spend that amount of money
which maximizes the net profits
...
Therefore, a very few advertisers are able to implement the profit-maximizing approach
to determine their advertising expenditure
...
Advertising as a Percentage of Sales
Advertising Allocation = % ´ ` Sales
45
A pre-determined percentage of the firm’s past sales revenue (or projected sales
revenue) is allocated to advertising
...
Arbitrary percentage allocation fails to provide for the
flexibility
...
It is not necessarily geared
to the needs of the total marketing programme
...
Its wide use
reflects the prevailing uncertainty about the measurement of advertising effectiveness
...
It is also safe
method as long as competitors use a similar method
...
3
...
It is goal-oriented
...
The costs
of advertising are then calculated
...
It involves the following two steps:
(a) First, the organization must define the goals the promotional mix is to accomplish
...
(b) Second, it must determine the amount and the type of promotional activity required
to accomplish the objectives set
...
A crucial assumption underlies the objective and task approach is that the
productivity of each advertising rupee is measurable
...
The “advertisability” of the product is
more sharply defined
...
The
task approach has special merit in the introduction of a new product
...
The task method
forces advertising managers to engage in advance planning
...
Competitive Parity Approach
This approach ties its budget to the rupees or percentage of sales expended by its
competitions
...
It involves an estimate of industry advertising for the
period and the allocation of an amount that equal to its market share in the industry
...
It is a defensive approach
...
But the needs will
never be the same
...
Besides, their marketing strategies may
also be different from our organization
...
However, the imitate-competitors strategy is most applicable in industries where
competition is in order to prosper and even to survive
...
Competitive parity budgets can be determined in several ways; but all are based on
spending approximately the same amount or percentage of sales as one’s competitors
...
(b) Spend the same percentage of sales on advertising as a major competitor does
...
(d) Use one of these “rules of thumb” in a particular market
...
But under this situation, a company faces
several risks
...
Such information is derived from secondary sources for some products
than others
...
It implies that all firms in an industry have the same
47
opportunities but not so in practice
...
5
...
It asks how much is available to
the firm
...
The decisions
based wholly on them ignore the requirements of the advertising
...
Some may spend whatever rupees are available
for promotion, the only limit being the firm’s need for liquidity
...
It does put advertising in perspective with other corporate functions
as contributors to the achievements of objectives
...
By Using Judgment
This method relays upon the judgment of experienced managers
...
It is a vital input
for the determination of the budget
...
Judgment is
subject to error and bias
...
To conclude, promotion may be viewed as a long-run process
...
Summary
Strategy, tactics, and campaign are words drawn from military dictionary
...
Brand management in highly competitive world
is also like warfare
...
Strategy is the art of deploying available resources to attain objectives in the face
of active opposition
...
An advertisement strategy, hence, can be described as the
communication that convey brand’s primary benefits, that is, how it can solve a consumer
need
...
5 - Strategic Media Planning
Learning Objectives
After reading this lesson, you should be able to:
➢➢
Have an overview of the media scenario, various kinds of media, and their relative
characteristics
➢➢
Understand the role of media planning in advertisement
➢➢
Delineate various media information sources that are crucial in the making of a
media plan
...
However, before effort is placed in developing a message
the marketer must first determine which media outlets will be used to deliver their message
since the choice of media outlets guides the type of message that can be created and how
frequently the message will be delivered
...
These
range from traditional outlets, such as print publications, radio and television, to newly
emerging outlets, such as the Internet and mobile devices
...
The characteristics by which different media outlets can be assessed include the
following seven factors:
1
...
Creative Cost
3
...
Message Placement Cost
5
...
Advertising Clutter
7
...
(It should be noted that promotion can also appeal to the sense of taste but generally
these efforts generally fall under the category of sales promotion which we will discuss in a
later tutorial
...
Traditional radio, for example, is limited to delivering audio messages while
roadside billboards offer only visual appeal
...
For instance, some search engines or websites may
only accept graphical-style ads, such as images, if these conform to certain large dimensions
and limit small advertising to text-only ads
...
For media outlets that deliver a multi-sensory experience (e
...
, television
and Internet for sight and sound; print publications for sight, touch and smell) creative
cost can be significantly higher than for media targeting a single sensory experience
...
In fact, media outlets may set minimal production standards for advertisements
and reject ads that do not meet these standards
...
Achieving these standards
requires expensive equipment and high cost labor, which may not be feasible for small
businesses
...
Media Market Reach
The number of customers exposed to a single promotional effort within a target
market is considered the reach of a promotion
...
Market reach can be measured along two dimensions: 1) channels served and, 2)
geographic scope of a media outlet
...
Channels can
be classified as:
Consumer Channel – Does the media outlet reach the final consumer market
targeted by the marketer?
Trade Channel – Does the media outlet reach a marketer’s channel partners
who help distribute their product?
Business-to-Business – Does the media outlet reach customers in the business
market targeted by the marketer?
➢ Geographic Scope – This dimension defines the geographic breadth of the channels
served and includes:
International – Does the media outlet have multi-country distribution?
National – Does the media outlet cover an entire country?
Regional – Does the media outlet have distribution across multiple geographic
regions such as counties, states, provinces, territories, etc
...
The other cost is for media placement; the purchase of ad time, space or location with
media outlets that deliver the message
...
For example, in the United States the highest cost for advertising
placement occurs with television ads shown during the National Football League’s Super
Bowl championship game where ad rates for a single 30-second advertisement exceed (US)
$2
...
By contrast, ads placed through online search engines may cost less than (US)
$1 dollar
...
For example, for television outlets audience size is
52
measured in terms of number of program viewers, for print publications audience is
measured by number of readers, and for websites audience is measured by number of
visitors
...
However, actual measurement of the popularity of media outlets
is complicated by many factors to the point where the media outlets are rarely trusted
to give accurate figures reflecting their audience
...
➢➢
Audience Type – As we have discussed many times in the Principles of Marketing
tutorial, the key to marketing is aligning marketing decisions to satisfy the needs of
a target market
...
When choosing a media outlet, selection is
evaluated based on the outlet’s customer profile (i
...
, viewers, readers, website visitors)
and whether these match the characteristics sought by the marketer’s desired target
market
...
The result
is that media outlets, whose audience shares very similar characteristics (e
...
, age,
education level, political views, etc
...
➢➢
Characteristics of the Advertisement – Media outlet also charge different rates
based on creative characteristics of the message
...
g
...
g
...
g
...
color)
Location in Media (e
...
, back magazine cover vs
...
For example, the features and benefits of a new snack food
can be explained in a short period of time using television or radio commercials
...
Consequently, advertisers of these products well seek media formats that allot
more time to deliver the message
...
Magazines
and other publications provide opportunities for longer exposure times since these media
types can be retained by the audience (i
...
, keep old magazines) while exposure on television
and radio are generally limited to the time the ad was broadcast
...
For instance, television programs may contain many ads
inserted during the scheduled run-time of a program
...
To break through the clutter advertisers may be required to increase the frequency
of their advertising efforts (i
...
, run more ads)
...
Alternatively, advertisers may seek opportunities that offer less clutter
where an ad has a better chance of standing out from others
...
g
...
Response Tracking
As we noted in Part 13: Advertising, marketers are embracing new technologies that
make it easier to track audience response to advertisements
...
But Internet-media are not alone in providing response tracking
...
Creating a Message
An effective communication requires the message source to create (encoding) a
message that can be interpreted (decoding) by the intended message receiver
...
And because it is a creative process, the number of different ways
a message can be generated is limited only by the imagination of those responsible for
developing the message
...
g
...
) impacts what is conveyed in the message
...
g
...
) used to
deliver the message impacts the way a message will be created
...
Additionally, the target market’s familiarity with a product affects
what is contained in a message
...
➢➢
Overall Advertising Objective – As mentioned, the objective of the advertising
campaign can affect the type of ad that is designed
...
Message Structure
Most advertising messages share common components within the message including:
➢➢
The Appeal – This refers to the underlying idea that captures the attention of a message
receiver
...
➢➢
Value Proposition – The advertising message often contains a reason for customers
to be interested in the product which often means the ad will emphasize the benefits
obtained from using the product
...
Message Testing
Before choosing a specific message marketers running large advertising campaigns
will want to have confidence in their message by having potential members of the targeted
audience provide feedback
...
On the Internet, advertising delivery technology allows for testing of ads by
randomly exposing website visitors to different ads and then measuring their response
...
In most cases the results measured relate directly to the objectives the marketer
is seeking to achieve with the campaign
...
In some cases, such as when the objective is to build awareness, a successful
campaign may be measured in terms of how many people are now aware of the product
...
First, there must be a pre-campaign or pre-test measure that evaluates conditions prior
to campaign implementation
...
Once the campaign has run, a second, post-campaign
or post-test measure is undertaken to see if there is an increase in awareness
...
These
range from traditional outlets, such as print publications, radio and television, to newly
emerging outlets, such as the Internet and mobile devices
...
56
Self Assessment Questions
1
...
2
...
3
...
4
...
What is an agency & explain different types of agencies?
6
...
What are the advantages of using an agency?
8
...
Bring out the relationship between advertiser and advertising agency
10
...
What are the different steps in strategic planning process?
12
...
13
...
What are the different characteristics for assessing media outlets?
15
...
16
...
Ram Kumar got an opportunity for a job in Sydney,Australia
...
Mr
...
He was based in Mumbai and had earned enough money to start
his own business in India
...
He listed the advantages of the water beds:
57
(a) Water beds were made of PVC mattress full of water
...
(c) The water could be heated in winter to keep warm
...
(e) This ensured healthy and comfortable sleep
...
It was sturdy and could stand
considerable impact if children would play on it
...
(h) It was also used in hospitals and patients at home
...
Ram Kumar started manufacturing
water beds and needed to communicate customers of its use and advantages
...
Suggest advertising strategies for this product
...
After a few years, Mr
...
What change
in the strategies be then made for cheaper products
...
1 – Copy Decision
Lesson 2
...
3 – Copy Testing
Lesson 2
...
➢➢
Understand the elements of copy writing
➢➢
Know the meaning of Brand equity
➢➢
Examine the method of building, measuring & managing brand equity
➢➢
Link advertising and sales promotion to achieve brand standing
Know the role of brand values for Business and non-business organisations
Introduction
Copy writing is a specialised form of communicating ideas that are mean to serve
the requirements of modern marketing
...
It utilises words to convey messages having commercial, informative or
persuasive value through various media and its success is indicated by the acceptance by
the audience of the idea or claims made for goods or services
...
e
...
, advertisement for prestige pressure
cooker highlights the gasket release system which makes the new prestige pressure cooker
the only 100 percent safe pressure cooker made in India
...
Copy writing in print is the activity of actually putting words
to paper, particularly those contained in the main body of the text, but also including
attendant bylines and headlines
...
Illustrating is usually the work of
an artist in the case of television
...
John Caples in his book, he
develops a checklist of important guidelines for copywriting:
1
...
Organise your experience
3
...
Learn from the experience of others
5
...
Study the report
7
...
Study competitors’ ads
...
Study testimonials from the customers
10
...
Put your subconscious mind to work
12
...
The job also involves
coordination with visualisers for bringing in suitable illustrations which will highlight the
effect of the copy and make it appealing and completely comprehensible
...
Visualisation and Copy Layout
The first expectation from an advertisement is that it must arrest attention
...
However,
visualization comes much before layout and art work stage
...
According to Dorothy Cohen (1988), much of the creativity in advertising
evolves from the process of visualization and the countless ways in which mental images
can be made to represent ideas
...
picture, illustration, headline, body text, logo, coupon,
mission statement, etc
...
It
refers to the overall structure, the position assigned to the various elements of the copy and
illustrations
...
Thus, the physical arrangement
of all the elements of advertisement is called layout
...
The
pattern of layout varies according to the medium to be used
...
Usually the layout man or visualiser prepares a rough layout which is
submitted to the client for approval and he draws the finished layout for the guidance of the
printer
...
Usually the layout man or visualiser prepares a rough layout which is
submitted to the client for approval and he draws the finished layout for the guidance of
the printer
...
A Radio does not
utilize illustrations, except those that the medium can create with a description
...
A well conceived layout can be instrumental
in obtaining attention comprehension, attitude change and behavior change
...
61
Functions of an Advertising Layout
An advertisement layout is a blueprint
...
Assembling different Parts
The main function of layout is to assemble and arrange different parts or elements of
an advertisement illustration, headline, sub headlines, slogans, body text and identification
mark and boarder and other graphic materials – into a unified presentation of the sales
message
...
Thus layout gives
both creative personals (copywriter and artists) and the advertiser who pays for it a good
idea of how the finished ad will finally appear
...
Opportunity of Modification
The layout offers an opportunity to the creative teams, agency management and the
advertiser to suggest modification before its final approval and actual construction and
production begins
...
Specification for Costs
The layout provides specification for estimating costs and it is a guide for engravers
typographers and other craft workers to follow in producing the advertisement
...
They appear in today’s ads with varying degree of frequency
...
The following five principles of good composition are
important to anyone who creates or evaluates the advertisement (1) Balance ;
(2) Proportion
(3) Contrast and emphasis,
(4) Eye –movement, and
(5) Unity
...
Balance
A layout may be called balanced if equal weight or forces are equidistant from a
reference point or a light weight is placed at a greater distance from the reference point
than a heavy weight
...
The reference point or fulcrum is the
optical centre of the advertisement
...
Optical centre of fulcrum of the ad is often a point approximately
two – thirds of the distance forms the bottom
...
2
...
Good proportion in an advertisement requires
a desired emphasis on each element in terms of size and position
...
The price should be displayed in proportionate space
position
...
Contrast and Emphasis
Contrast means variety
...
An advertiser always looks to advertisements from completion
point of view and desires the policy of the most important elements to attract the attention
of the people
...
It may be witnessed through sizes, shapes and
colours
...
The varying directions, of design elements (Vertical trees, horizontal pavements arched
rainbows) add contrast
...
4
...
An effective ad uses movement to lead its
reading audience from initial message awareness through product knowledge and brand
preference, to ultimate action (intent to purchase)
...
Mechanical eye direction
may be created by devices such as pointing fingers lines arrows or even a bouncing ball
that moves from unit to unit
...
The eyes also moves naturally from large items to small from dark to
light and from colours to not – colours
...
Unity or Harmony
Unity or harmony is another important design principle
...
Common
methods of securing unity in layouts are (i) use of consistent typographical design
...
Although unity and contrast seem conflicting but they function quite smoothly
together if they operate at cross purposes, if the artists strive for balance here as well as
in the layout overall
...
Contrasting size, shapes, colours and directions can flow together
beautifully
...
Regardless of its length and brevity copy refers to all the reading
matters of an advertisement, including the headline, sub- headlines, text or body, and the
name of the firm or the standard initials of the advertiser
...
As a reader
turns the pages of a magazine or newspaper, he notices so many advertisements but a great
variation in copy
...
The first copy conforms to the requisites
of a good copy
...
e
...
The
following are the main components of an advertisement copy
1
...
Name Plate
2
...
Price
3
...
Product
4
...
Slogan
64
5
...
Space
6
...
Sub-heading
7
...
Text
8
...
Trademark
1
...
The arrangement of background differs from medium to medium and advertisement to
advertisement
...
2
...
Border is employed to impart the
reading atmosphere
...
The
border may also contain a logo
...
Caption
It refers to the subtitle
...
4
...
The coupon must contain
the name and full postal address of the firm followed by the offer
...
There should be space for name and address of the prospective customer
...
5
...
This is done to
emphasis the advertisement message
...
Heading
The heading or headline is defined as the title of the advertisement
...
65
7
...
It has the power to capture the attention of the reader
...
8
...
It is an illustration of either a real
or an imaginary figure or personality given in the advertisement
...
Name Plate (Logo)
The name plate or name block is the signature of the advertiser
...
10
...
The price of the product should be featured clearly
...
11
...
A very popular practice
is to show the product in use with illustrations
...
Slogan
Slogan is a sales argument
...
13
...
This depends
on the design of the copy
...
Subheading
It is a secondary heading
...
66
15
...
It is the
subject matter of the copy
...
16
...
If the trademarks are registered
it can be included in the layout
...
Colour
Colour is another element of lay out and can be used with impact only if its dimensions
are understood
...
The decision to use colour, and how much of it, can influence the development of
copy and art and the production of finished print advertisement
...
➢➢
Colour adds attention-capturing value to the advertisement
...
➢➢
Colour can add as sense of realism or atmosphere
...
Design Principles
Advertising must be designed to attract consumer attention immediately as the
advertiser has only a second or two to capture the reader’s attention
...
The basic design
rules include the following;
The eight laws of design
The basic principles of design, which can be applied to advertisements, are:
➢➢
Law of unity
➢➢
Law of variety
➢➢
Law of balance
67
➢➢
Law of rhythm
➢➢
Law of harmony
➢➢
Law of proportion
➢➢
Law of scale
➢➢
Law of emphasis
The details of these principles are discussed below
...
All creative advertising
has a unified design
...
) should appear
as a single unified composition
...
Law of Balance
There is a belief among many designers that balance is a fundamental law of
nature
...
It occurs when equal weights of forces are equidistance from a reference
point, which is the imaginary vertical line drawn from the centre of the advertisement
...
when the weight of all elements on both sides of the vertical
centre line is equal, the lay out has formal balance
...
when the equilibrium is achieved by placing elements of different weights at unequal
distance from the optical centre, the lay out has informal balance
...
Law of Rhythm
Even though a printed advertisement is static it it is still possible to obtain a sense of
movement so that the eye is carried down and through the advertisement
...
But the
general flow of the overall designs should be pleasantly rhythmic
...
Variations in size, shape,
and colour of lay out elements create contrast
...
All the elements should
harmonise, helping to create unity
...
That is, accentuating or
focusing on an element or group of elements so that they stand out among elements of lay
out for pleasing optical effect
...
If all the elements get equal emphasis, the advertisement
ends up with no emphasis at all
...
A narrow advertisement needs small text, but a wide advertisement needs larger text
...
Law of Scale
Visibility of the advertisement depends on the scale of tones and colours, the law
of scale can be used with typographical design when headlines and subheading are made
to contrast with grey areas of text type
...
Law of Emphasis
Here the rule is that all emphasis is no emphasis, which occurs if too much bold
type is used, or there are too many capital letters
...
An advertisement can be made
to look interesting if there is emphasis such as bold type or certain words are emphasized
in different colour
...
It helps in establishing links between advertisers
and their prospect
...
****
70
Lesson 2
...
The business of conceiving, writing, designing and producing these messages is
called “advertising creativity” and the key wordsmith is called a copywriter or copy chief or
copy supervisor
...
The conventional theory of advertising includes the concept of AIDA (Attention,
Interest, Desire and Action)
...
But they
forget that only good advertisement copy or good message can attract the attention and
interest of the receiver until and unless the much advertise product attributes have a strong
impact on consumers
...
Advertising tries to persuade the consumers that they need the
product
...
Creativity is an art
...
They combine the product attributes and the ideas, words and phrases
in such a manner that persuades the consumers to buy the product
...
A child can draw a smiling picture of a woman, but it does
not carry a creative message of some worth
...
Thus
advertising messages should present merchandise in ways that interest people in buying
...
When creating, copy writer builds messages according to specific plans, to fulfill
specific objectives; therefore he should follow a disciplined way in creating them
...
Activities Comprising Creative Design Task Process
Although there is no one set form for designing the process there are various variables
that are typically parts of the creative design process
...
Most advertisements inform and persuade
...
Still others strive
to reinforce or to change existing shopping habits brand images and usage patterns
...
Now, it is
the responsibility of the creative specialists to translate the information available to them
into an advertisement or a basic theme for an advertising campaign that will achieve the
advertiser’s objective
...
Creative design people prepare for the design task by examining the information
on the product which is to be offered in the advertising
...
Such types of
information may be gathered in meetings between the creative personnel and the marketing
managers for the product
...
Quantitative data such as age, sex, marital status,
occupation, income, education, place of residence, must be supplemented by information
on consumer attitudes (related to advertised product, and its competitors as well as to the
types of creative claims being considered for the message)on relevant media, shopping and
buying habits and on product usages
...
(4) Copy and Layout Design
The next task before the creative personnel is to turn to the creative task which is the
design of the copy and layout
...
Part of the process involves writing copy, the verbal text
of the advertisement
...
The design of the copy and the layout is an art that
requires special skills
...
Truth is essential in
advertising
...
They cannot believe in it if they
do not know what we are saying if they do not listen to us; they cannot listen to us unless
we are interesting and finally we can be interesting if we say facts in a fresh, original and
imaginative way
...
So, truth is essential in advertising and must be supported
with facts
...
An important aid to the creative design task is the use of copy layout tests
to assess and compare alternatives
...
Then respondents are
asked to give their opinion on the various aspects of the ad including how well it can be
seen or read or heard under specific conditions, how quickly and easily the message can be
73
understood, how interesting an ad is, how believable it is or how it will influence audience
behavior
...
Since there is little in the way of modeling effort to help in this decision, the allocation task
is usually done judgmentally
...
All types of written
materials, such as art work, layout and script must be used as components of printed or
broadcast advertisements
...
It is an art and should be provided sufficient funds in order to achieve the
business and marketing objectives
...
All
the planning, research and expense would go waste if proper care is not taken in drafting an
advertisement copy that will achieve the purpose of advertising
...
In other words a scientifically drafted copy should
(a) attract primary initial attention, (b) hold attention in an interesting way, awaken and
stimulate interest, (c) bring about an association of impression which will have permanence
or memory value, (d) convince persuade, and induce to purchase the product, and (e)
suggest and lead to specific response to encourage the decision to buy
...
e
...
74
A good copy of advertisement should possess the following characteristics or qualities value(1) Attention Value,
(2) Suggestive Value,
(3) Memorising Value,
(4) Conviction Value,
(5) Sentimental Appeal Value
(6) Educational Value,
(7) Instinctive Value
Attention Value
An advertisement copy must attract the attention of potential consumers
...
So, it must have display value
...
It should be
designed in such a fashion that the attention of busiest person may be drawn immediately
...
Suggestive Value
The next task would be to offer a suggestion about the use and the utility of the
product that may remain inscribed on the mind of the reader even when he forget where he
really saw the advertisement
...
They should be drafted and used as to drive home to the reader the utility of the
product in everyday situation
...
Repetition of advertisement with slogan is an
effective method of creating a memorising value
...
75
Conviction Value
An advertisement copy can prove effective and achieve the desired end when the
suggestions contained in it are backed by convincing arguments
...
Sentimental Value
Sentiment plays a very important role in advertising particularly in the case of food
articles
...
They indicate reactions of a person in favour or against a particular product
...
Educational Value
A good copy of advertisement must possess educational value because the object of
modern advertising is not merely to satisfy existing demand but to create future demand
...
It will certainly increase the demand of the
product and demand creation is one of the most important objectives of the advertisement
...
All that one
thinks or does has its roots in one instinct or other
...
The most important function of an advertisement copy is induce, persuade
and motivate the prospect to think’ well of a product and to take to its use
...
Generally speaking, the following are the basic instincts which an advertiser
should keep in his minda) Self Preservation Instinct – Many of our thoughts and actions are inspired by our
anxiety to preserves our person our health, our family and our belongings
...
, may be promoted by appeal to this anxiety
...
Slogans like ‘Up and Up go your Savings’ may be used for this purpose
...
Those advertisers who deal in children requirements like garments, toys
baby food may promote this instinct in parents i
...
, motherly feelings of women or
parental sentiments of men through their advertisement copy
...
Jewellery etc
...
e) Something for Nothing Instinct – Everybody has a vague desire to get something
without paying anything for it
...
An advertisement copy that contains an offer
of a prize of a gift is likely to tempt quite a many of the customers
...
On the basis of the above basic instincts, the following themes or central ideas may
be laid down for advertisement copies meant for advertising different types of product(i)
Pride – This theme can be used to popularize luxury articles among riches, the
possession of which gives them a distinctive status and a feeling of pride
...
, for men and women
...
(iv)
Economy – It is central theme in advertisement of clearance sales or bargain
purchases
...
generally contain this feeling of comforts
...
The traffic police uses this theme in their notes
of caution i
...
, life is short don’t make is shorter’
77
(vii)
Parental Affection - All advertisement copies of products meant for children
such as toys, body foods and dresses etc use this feeling
...
(ix)
Achievement – This theme is used generally by large concerns engaged in the
production of goods necessary for the development of country’s economy
...
Thus, a good advertisement copy must possess the above qualities to make it an ideal
advertisement
...
Copywriting does not admit any stereotyped rules and
classification
...
The
following types of copy may be studied1
...
It is very simple and of non- technical nature
...
It is very much similar to a press account or news item
simply giving relevant information to the public without any stylish touch
2
...
It provides full information about the product and the producer
...
78
3
...
The main objective of such
type of advertisements is to create, maintain or increase the goodwill of the product or of
brand or of the department or of the selling house as a whole, Institutional copy invites
the target consumers to the selling outlet
...
4
...
It commands a good deal of
interest because of that sensational event which lives in the minds of the public
...
Reason why Copy
This type of advertisement copy offers the readers reasons why they should buy
the advertised goods
...
It directs its appeal to the intellect or judgment rather than to emotions or senses
...
6
...
Sympathy fear, bonus, curiosity and other emotional appeals like appeals to the
senses of sight, hear, touch, taste, and smell are used in such type of copy
...
As emotions are many and always knew it may be made more exciting an artful than reason
why copy
...
Human interest copy can take various forms:(a) Humorous Copy - It exploits the sense of humor of the people
...
(b) Fear Copy - It appeals to the sense of fear and arouses the interest of people to save
their lives, properties and other belongings
...
(c) Story Copy - In such a copy a story is narrated in a very interesting manner to
create an impression in the minds of the people about the product
...
Experience of customers
can also be narrated in the story
...
Predicament copy usually overlaps the other three kinds of human interest copies
7
...
It uses an
informal language and conversation takes place in terms of ‘I’ and ‘You’ with personal
reference to reader and the advertiser
...
8
...
Usually the personality is real
...
Invariably, such copy shows a certificate
or a testimonial of such influential person
...
Prestige Copy
This pattern is usually for institutional advertising which aims at creating an
atmosphere about the product or the firm and may not directly advise the product for
sale
...
10
...
Usually introductory appeal is made in this style when the product is introduced in the
80
market for the first time; it is the duty of every producer or advertiser to tell everything
relevant about the product to the public in such a manner that it may get a warm welcome
among customers
...
The advertiser may insist only one or two attributes of the product which is more
sensational such as introduction of a low priced item without the loss of quality or a product
developed from a new technology indigenous or imported etc
...
Suggestive Copy
A suggestive copy tries to suggest or convey the message to the readers directly or
indirectly to pursue them to purchase the product
...
12
...
It does not conceal anything
about the product but exposes
...
13
...
The advertiser puts no narration, statement or reason of its own
in order to pursue the readers to buy the product
...
Thus there are various types of copies of advertisement on the basis of their style of
presentation
...
e
...
The advertiser spends lakhs of rupees in to advertising activity
...
81
As soon as the advertising campaign is over, a need generally arises to measure the
effectiveness of the campaign
...
e
...
In order to measure the effectiveness of advertising copy, two types of tests- pretests
and post tests- can be undertaken
...
There are several pre
and post tests techniques to measure the effectiveness of the advertising copy
...
May be provided with the advertisement or (d) enquiry from consumers should mention
the name of the source of information
...
Thus in measuring the effectiveness of advertising we include measuring of the
effectiveness of advertising campaign, advertising copy and the effectiveness of individual
media
Summary
The creative part of advertising involves the process of selecting and presenting the
messages
...
The success of advertising depends to a great extent on the quality of
the message or copy of advertisement rather than the money spent on advertising
...
Most of the advertisers believe that the message in advertisement copy must
attract the attention and interest of the consumer if buying is to result
...
3 - Copy Testing
Learning Objectives
After reading this lesson, you should be able to:
➢➢
Understand the basic concepts of copy testing
➢➢
Acquainted with the different methods of copy testing
➢➢
Analyze the communication effects of advertising
➢➢
Differentiate communication Effectiveness Vs Sales Effectiveness
Introduction
Copy testing is a tool involving a procedure where the effectiveness of an advertisement
is measured before it appears in its final form, during and after its exposure to the audience
to determine whether and to what extent, it has accomplished its assigned task
...
It
addresses the following questions –
(a) Will a proposed copy theme be effective at achieving advertising objectives?
(b) Does the set of advertisings that makes up an advertising campaign create the
desired interest level and image? And
(c) Will an individual advertisement attract the attention of the audience?
Methods of Copy Testing
The various methods of testing advertising copy are
1
...
Post-test methods
3
...
It is useful because the concepts in advertising may appear to be simple
and effective to the advertiser or advertising agency
...
All the elements in the advertising copy requires careful pre-testing to see
that the matter it intends to be conveyed has been really conveyed, ‘prevention is better
than care’
...
The following are some of the pretesting methods
...
Check list method
b
...
Sales Area Test
d
...
Recall test
f
...
Readability test
h
...
Checklist Method
The copywriters use checklist method to test the effectiveness of advertising copy
...
As it is a pretest method omissions can
be included in the copy before release of the advertisement
...
The researcher has to compare the advertisement with the checklist and tick the items
present in the advertisement copy
...
b
...
This test is designed to learn from a typical group of prospective customers gathered in one
place or a sample of prospects that are independently, visited by interviewers or contacted
by mail their preference for one advertisement over the other or for several advertisements
out of a group
...
c
...
The impact of the campaign is evaluated by actual sales in the selected markets
...
In
other markets suitable changes are made in the advertising campaign
...
Questionnaire Method
It is a list of questions related to an experiment
...
The draft of an advertisement along with some relevant questions is to
be sent to a group of target consumers or advertising experts
...
e
...
After few
minutes they are asked to recall and reproduce them
...
f
...
Their reactions reveal the
psychological or nervous effects of advertising
...
Readability Test
All the listeners of advertisements cannot read it equally
...
This method is used to find
out the level of effectiveness when and advertisement is read
...
Eye Movement Test
The movements of eyes of the respondents are recorded by using eye observation
camera when advertisements are shown to them in a screen
...
85
Post-Test Techniques
The following are the post-test techniques for measuring the effectiveness of the
advertisements –
1) Recognition Test
It determines the readership of the advertisement in the newspapers and journals
...
The interviewers locate the readers of the particular issue of the magazine in question
...
The data collected by this test indicate the proportion of qualified readership of
a publication who claims to have ‘seen’, ‘read some’ or ‘read most of the elements of the
individual advertisement
...
2) Recall or Impact Test
The recognition test measurers the stopping power of the advertising but does not
tell us what the readers understood or retained of the advertisement
...
If a reader
has a favorable impression of the advertisement, he will certainly retain something of the
advertisement
...
V
...
3) Psychological Analysis
The whole process of advertising is psychological in character
...
Four psychological testing techniques are most commonly used –
(a) Tests of readability and comprehension;
(b) Tests of believability
86
(c) Attitude tests; and
(d) Triple Associates Test
...
It is determined by the interviewer under this method whether and
to what extent the readers have gone through the advertisement
...
Scale techniques are generally employed to measure the
credibility by putting several statements or product claims before the consumers and are
created by them
...
(c) Attitude Tests
A number of attitude tests are developed by the psychologists who can be applied to
copy testing
...
The interviewer then asks series of penetrating questions, to determine the attitude
produced by these various message
...
The researcher looks especially for elements
in the advertising which arouse psychological hostility
...
The test is useful only when
the advertising features a specific theme or slogan, which the reader may remember
...
Concurrent Methods
Under this method, tests are conducted while the consumers are exposed to different
types of media
...
Which carries an advertisement? The concurrent methods are
87
1
...
Co-incidental surveys and
3
...
1
...
They are also
informed to record the details of advertisements they listen or read
...
The result obtained from such a survey reveals
the effectiveness of advertisement
...
Co-Incidental Surveys
This method is also called as co-incidental telephone method
...
The data obtained and analysed will give a picture about the
effectiveness of an advertisement
...
Electronic Devices
Now a day’s electronic devices are widely used to measure the effectiveness of an
advertisement
...
These are auto meters, track
electronic units etc
...
I
...
Experimental method
I
...
If an advertisement is followed with more sales, advertisement is considered
to be more effective
...
Experimental Method
Under this method, the entire sales territory is divided into three or four sub-areas
...
They collect facts
regarding sales from these sub-areas
...
Following the result obtained, the advertiser prepares his
advertising budget for future action
...
For this consumers may be contacted through direct mail after the
advertisement is placed
...
By regular evaluation of the effectiveness, the shortcomings and the plus points
would be revealed and the management would be able to improve the campaign by negating
the shortcomings and retaining the favorable point
...
But this is very difficult task because
measurements are imperfect and imprecise
...
If it succeeds in attaining the objectives advertising can be said to
be effective otherwise it will be a waste of money and time
...
In a very real sense the integrity of promotional activities rests on how well those
activities work
...
Any social institution
upon which a significant portion of our total productive efforts is expanded should be able
to point to its specific accomplishment
...
Both
practitioners and critics feel that promotional activities should only be accepted as socio –
economic – institution with full right and privileges “when the means exist to prove that
advertising super are productive rupees’ It is undoubtedly a source of embarrassment that
we cannot exactly measure the effectiveness of advertising in definitive terms
...
The reaction of consumer – buyers to the advertising efforts cannot be known in advance
...
) cannot be accurately anticipated
...
If we take a hypothetical case of a retailer who contract to spent ` 5000 on
advertisement with a local newspaper for a special sales even
...
What caused the success of sale?
They message theme colours etc
...
The overwhelming
success of the sale is the joint result of all the above variables and it is quite impossible to
isolate the role of any one variable
...
It
is entirely possible that a poor advertising support may push up the sale because everything
else falls into its proper place or the reverse may be possible
...
The advertising executives are much concerned about the assessment of the
effectiveness of the advertising efforts
...
V
...
Pre- tests are conducted before exposing target consumers
to the advertisements and post tests after consumers have been exposed to them
...
In the past, protesting was done by the advertising
agencies but now the advertisers have been taking an increasingly active role in protesting
process
...
90
During protesting there is often research on three vital questions:(i) Do consumers feel that the advertisement communicates something desirable about
the product?
(ii) Does the message have an exclusive appeal that differentiates the product from that
of the competitors?
(iii) Is the advertisement believable?
Although a lot of money is spent on protesting yet the advertisers like to confirm the
results by post testing of their promotional campaigns due to the following reasons:(i) There is a need to produce more effective advertising by retaining the good and
removing the bad
...
(iii) There is a need for measuring the results to determine the level of expenditure that
is most promising
...
In the short run, however sales may be slight and important but in
the long run its effects on brands and companies may be of great importance
...
The
advertisers are therefore, concerned with their impact on consumer awareness and attitude
...
If consumer is satisfied with the trial he may decide to purchase
the product
...
Among these are:(1) Exposure Conditions – Should advertising be tested under realistic conditions or
under more controlled laboratory conditions?
(2) Execution – Protesting a finished advertisement as an expensive and time consuming
...
Quantity Data- Quantitative data are the easiest and the almost precise
measurement
...
Many types of advertising tests are conducted (different methods of pretests and
post – test are given in question number) In T
...
commercials are tested by inviting a group
of people to the studio to view a programme
...
Print advertisements are tested through dummy magazine portfolio tests
...
Many firms try to measure the effectiveness of advertising in terms of sales results but this
practice is always misleading
...
For example direct mail advertising can effectively be measured by the inquiries
received
...
We can correctly assume that some sales will occur even though there is no
advertising or little advertising or conversely there will be no increase in sales after the
point of saturation is reached or it may be that sales will show a decreasing trend at this
point in spite of large amount of expenditure being made
...
Thus, we may conduct that sales effect of advertising is difficult to measure because
a number of variables affect the quantum of sales and the contribution of advertisement
92
cannot be measured separately unless all other variables are presumed to be constant
...
Added to this is the fact that
advertisement itself is made of a variety of variables such as media, messages, colours,
page or time of the day, locations, the size of the headline and the appeals used
...
So advertisers try
to measure the communication effect of the advertising
...
They are
1
...
e
...
A sale is a determining factor of company performance
...
Difficulty and Cost of Obtaining Data Needed to Evaluate Effectiveness
Generally communication measures are easy to follow than sales effectiveness
measures
...
If it is less difficult and cheap the measures will not be more relevant
...
Suitability
In small business firms where the marketing research resources are limited
advertising managers may decide on less expensive and less relevant measures
...
Summary
Copy testing is a tool involving a procedure where the effectiveness of an advertisement
is measured before it appears in its final form, during and after its exposure to the audience
to determine whether and to what extent, it has accomplished its assigned task
...
Pre-test method refers to testing the potentiality of a message or copy before printing
93
or broadcasting
...
Self Assessment Questions
1
...
What is creativity in advertising?
3
...
4
...
How can you measure the effectiveness of advertising?
CASE STUDY
The soap market in India is very large and basically it is divided in 2 segments, the
popular segment and the premium segment
...
, and contain about 85% of the market
...
Medi Mix as an
Ayurvedic soap, Neko as a medical soap and Peasrs as a special brand soap
...
It had built its
reputation through years of advertising
...
(b) Mild and pure
...
(d) It was difficult to manufacture
...
It was short supply for some time
...
(g) Some thought that it was only for babies
...
(i) The price was high
...
The HLL then asked their advertising agency Lintas to design and campaign
to boost the sales
...
(b) Most of the customers were using it in winters only
...
The Company was advised to offer a reason for purchase
...
So, they looked back on the past advertising
Ads
...
(a) “Waiting to be beautiful lady
...
(b) Then came the Ad
...
“A soap so pure you
can see through it
...
”
(d) “Meet the soap with nothing to hide except your age
...
”
(f) “Young skin can be yours as long as you use Pears” or “It is the Kiss of Youth
...
”
(h) “Mrs
...
”
These were the options suggested for advertising
Questions
1
...
2
...
As the youth men are also very beauty conscious and visit beauty parlours for facial
and other beauty Ads
...
1 – Media Decision
Lesson 3
...
3 – Permission Marketing
Lesson 3
...
There many options which include
mass media such as television, newspaper, radio, and magazines as well as out of home
media such as outdoor advertising, transit advertising, and electronic billboards
...
The importance
of media planning as a function has grown immensely with the coming of cable and satellite
channels and the emergence of new media such as the Internet and mobile phones
...
Media planning
is a process, which means a number of decisions are made, each of which may be altered or
abandoned as the plan develops
...
Media Vehicle is the specific carrier within a medium category
...
Reach is a measure of the number of different audience members exposed at least
once to a media vehicle in a given period of time
...
Media Scenario in India
The Indian media scene is interesting, intriguing, and, at the same time,, mind
boggling
...
Mass media in India not more than a hundred years
old, but its development in technology can be compared with the best in the world
...
The reason for this is due to
low level literacy and wide spread poverty
...
Today, there are about
two hundred channels are there to choose
...
The
emergence of independent media buying agencies has further complicated buying, as the
agency that plans a campaign may not necessarily be planning or buying the media
...
98
Types of Media
The media class refers to the general category of message delivery systems available
to carry advertising message to a target audience
...
are media class
...
The media vehicle is the specific message carrier within a medium, such as Times of India,
India Today, Filmfare, Femina, Star Sports etc are the examples of media vehicle in print
and broad cast media
...
The Media Plan
Media planning is the series of decisions involved in delivering the promotional
message to the prospective purchaser and/or users of the product or brand
...
The media plan is the guide for media selection
...
Once the
decision have been made and the objectives and strategies formulated, this information is
organized into the media plan
...
However,
As per (Scissors and Bumba 1995) a good media plan needs to address the following issues:
➢➢
How many audiences is the media plan proposing to reach?
➢➢
What are the best media to place the advertisements in?
➢➢
How many times should the advertisement appear?
➢➢
What would the idea media mix be?
➢➢
Which geographical regions should the advertisement appears in?
➢➢
Which media should be selected to avoid places which do not have the product
advertised?
➢➢
How should be budget appropriation for various media thus chosen is made?
Developing the Media Plan
Developing media planning involves a series of stages as follows:
1
...
Establishment of media objectives
99
3
...
Evaluation and follow up
Market
analysis
Establishment
of media
Media strategy
development and
implementation
objectives
Evaluation and
follow-up
development
(Developing the media plan)
Market Analysis and Target Market Identification
The situation analysis stage of the overall promotional planning process involves a
complete review of internal and external factors, competitive strategies, etc
...
The key questions at this stage are those:
to who are the target market? What factors may influence the media plan? Where and when
should we focus our efforts?
Who are the Target Market?
A number of target markets might be derived during situation analysis, to decide
which specific groups to go after; the media planner may work with the client, account
representative, marketing department, and creative directors
...
Some will require primary research, whereas others will be
available from secondary sources
...
Internal factors may involve the size of the media budget, managerial and
administrative capabilities, or the organization of the agency
...
100
Where to Promote
The question where to promote is related to geographical considerations
...
1
...
Rather, they are designed to lead to the attainment
of communications and marketing objectives
...
An example of media objective is this: Create awareness in the target market through the
following:
➢➢
Use broadcast media to provide coverage of 80 percent of the target market over a
six-month period
...
➢➢
Concentrate heaviest advertising in winter and spring, with lighter emphasis in
summer and fall
...
Developing and Implementing Media Strategy
After it is being determined what is to be accomplished, media planners consider
how to achieve these objectives
...
The Media Mix
A wide variety of media and media vehicles are available to advertisers
...
The objectives sought, the characteristics of the product
or service, the size of the budget, and individual preferences are just some of the factors that
determine what combination of media will be used
...
By careful developing a suitable
101
blend of media, the advertiser can introduce versatility in media strategy to increase
coverage, reach and frequency levels
...
This can
be achieved by matching of media a media vehicles most suitable to the target
...
Developing media strategies involves matching the most appropriate media
to this market by asking, “Through which media vehicles can I best get my message to
prospective buyers?” The issue here is to get coverage of the market
...
The
situation usually involves trade-offs
...
: other times, the most
effective media expose people not sought
...
Geographic Coverage
Geographic coverage is an important consideration for the media planning process
...
For example, heavy woolen are unlikely to have any significant demand in South
India, or there would be hardly any demand of rain coats in desert areas receiving, little
rain
...
Scheduling
It is neither possible nor necessary for the companies to keep their advertising infront
of consumers at all times as a constant reminder of the product or brand
...
Scheduling is connected with timing the insertion of
advertisements in the selected media
...
There are three approaches to scheduling:
1
...
Fighting and
3
...
Continuity refers to a continuous pattern of advertising, which can mean every day,
every week, or every month
...
Fighting employ a less regular schedule of advertising message
...
Many banks, for example, spend
no money on advertising in the summer but maintain advertising throughout the rest of
the year
...
The continuity is maintained
as a base throughout, but during certain periods the level of advertising is stepped up
...
Media Reach and Frequency
Reach is defined as the number of individuals from the target audience who are
exposed to the medium or vehicle
...
For example if the target audience of a particular brand is 100
...
The same way is applicable for other
media vehicle
...
The number of times the advertisement appears in a
given publication, or over a particular television programme is known as the frequency of
exposure of the advertisement
...
When reach and frequency multiplied, we get gross exposure to a campaign
...
In other words, if we
try to maximize reach, frequency gets compromised
...
Total exposure
Frequency = ---------------------
Reach
Effects or Reach and Frequency
Effects of Reach and Frequency
1
...
2
...
3
...
4
...
5
...
6
...
7
...
(Joseph W
...
➢➢
Brand share: An inverse relationship exists between brand share and frerquency
...
➢➢
Brand loyalty: An inverse relationship exists between loyalty and frequency
...
➢➢
Purchase cycle: Shorter purchase cycles require higher frequency levels to
maintain top-of-mind awareness
...
➢➢
Competitive share of voice: High frequency levels are required when a lot
of competitive advertising exists and when the goal is to learn and to retain
messages has a direct effect on frequency
...
➢➢
Message uniqueness: The more unique the message, the lower the frequency
level required
...
➢➢
Image versus product sell: Creating an image requires higher levels of frequency
than does a specific product sell
...
➢➢
Wear out: Higher frequency may lead to wear out
...
➢➢
Advertising units: Large units of advertising require less frequency than smaller
ones to get the message across
...
➢➢
Attentiveness: The higher the level of attention achieved by the media vehicle, the
less frequency is required
...
➢➢
Number of media used: The fewer the media used, the lower the level of
frequency required
...
(Source; Joseph W
...
This is done
through readership survey
...
This survey measures the readership of newspapers, and magazines
...
Viewership
This is a unit of measurement for television
...
Television Audience Measurement (TAM) is popularly known in India
claims to be the best research agency measuring consumer behavior in television viewing
...
Listenership
This is a unit of measurement for radio
...
However, now a day’s FM channels are also popularly being used by the
urban India
...
Hit and click / Page view
This is a unit of measurement for the internet
...
Page views are the number of pages within the site that the visitor who has seen
the site
...
Passers By
This is unit of measurement of outdoor
...
It is assumed that those who pass
by a site would have had an opportunity to see the advertisement displayed on the site
...
Visit to Cinema
This is a unit of measurement of cinema audiences
...
Media Research
There are a number of research organizations produce regular independent media
studies
...
Some surveys are conducted continuously by press and television or
periodically with radio or occasionally with outdoor
...
107
‘Readership’ and ‘Circulation’
These are the two terms which is often misunderstood and wrongly used to mean
same thing
...
Readership is an estimate
of the number of people who read newspapers and magazines, and the figures result from
surveying is a sample for the public who are reading
...
Media Cost Efficiency
One of the important decisions in the development of media strategy is cost
estimating
...
There are a number of factors such
as reach, frequency, and availability that effects while determines media cost
...
Advertising and promotional cost can be categorized in two ways
...
Determining Relative Cost of Media
To evaluate alternatives, advertisers must compare the relative costs of media as well
as vehicles within these media
...
Following are the
cost based used:
1
...
For computation the formula is
Cost and space (absolute cost)
CPM =
_________________________ x1,000
Circulation
108
2
...
Daily inch rate: For newspapers, cost effectiveness is based on the daily inch rate,
which is the cost per column inch of the paper
...
4
...
Two factors are important for evaluating media plan
...
How successful were the strategic in achieving media objectives?
2
...
It has been
pointed out that there are certain problems with measurements that limit the degree to
which one can assess the relative effectiveness of different strategies
...
The reason for
the growing number of media outlets lies with advances in communication technology, in
particular, the Internet
...
Next we provide an overview of 10 leading media outlets:
1
...
Cable Network
7
...
Radio Advertising
8
...
Print Publications Advertising
9
...
Internet Advertising
10
...
Direct Mail Advertising
11
...
Yet because it is a mass medium capable of being seen by nearly anyone, television
lacks the ability to deliver an advertisement to highly targeted customers compared to other
media outlets
...
In particular,
networks operating in the pay-to-access arena, such as those with channels on cable and
satellite television, are introducing more narrowly themed programming (i
...
, TV shows
geared to specific interest groups) designed to appeal to selective audiences
...
The geographic scope of television advertising ranges from advertising within a
localized geographic area using fee-based services, such as cable and fiber optic services, to
national coverage using broadcast programming
...
g
...
Additionally, television lacks effective response tracking which
has led many marketers to investigate other media that offer stronger tracking options
...
Advertisement through local cable can act as a frequency booster by virtue of its
low cost
...
Radio Advertising
Promotion through radio has been a viable advertising option for over 80 years
...
First,
in many countries there are radio networks that use many geographically distinct stations
to broadcast simultaneously
...
e
...
Second, within the last few years the emergence of radio
programming delivered via satellite has become an option for national advertising
...
In many ways radio suffers the same problems as television, namely, a mass medium
that is not highly targeted and offers little opportunity to track responses
...
For some products advertising without visual support is not effective
...
Magazines, especially those that
target specific niche or specialized interest areas, are more narrowly targeted compared to
broadcast media
...
g
...
g
...
Newspapers have also incorporated color advertisements,
though their main advantage rests with their ability to target local markets
...
g
...
Internet Advertising
The fastest growing media outlet for advertising is the Internet
...
However, total spending for Internet advertising remains relatively
small compared to other media
...
Two key reasons for this shift rest with the
Internet’s ability to: 1) narrowly target an advertising message and, 2) track user response to
the advertiser’s message
...
111
➢➢
Website Advertising - Advertising tied to a user’s visit to a website accounts for the
largest spending on Internet advertising
...
g
...
g
...
Size – In addition to a large number of creative types, Internet advertisements
can be delivered in a number of different sizes (measured in screen pixels)
ranging from full screen to small square ads that are only a few pixels in size
...
Placement – The delivery of an Internet advertisement can occur in many
ways including fixed placement in a certain website location (e
...
, top of page),
processed placement where the ad is delivered based on user characteristics
(e
...
, entry of words in a search box, recognition of user via Internet tracking
cookies), or on a separate webpage where the user may not see the ad until
they leave a site or close their browser (e
...
, pop-under)
...
➢➢
Email Advertising – Using email to deliver an advertisement affords marketers the
advantage of low distribution cost and potentially high reach
...
This is especially true if those on the list have agreed to receive email,
a process known as “opt-in” marketing
...
Delivery to a user’s email address can be viewed
as either plain text or can look more like a website using web coding (i
...
, HTML)
...
e
...
Direct Mail
This method of advertising uses postal and other delivery services to ship advertising
materials, including postcards, letters, brochures, catalogs and flyers, to a physical address
of targeted customers
...
For instance, a marketer using direct mail can
personalize mailings by including a message recipient’s name on the address label or by
inserting their name within the content of marketer’s message
...
This is due to cost advantages obtained by printing in high volume
since the majority of printing costs are realized when a printing machine is initially setup
to run a print job and not the because of the quantity of material printed
...
Obviously there are other costs involved in direct
mail, primarily postage expense
...
This has led many to refer to direct mail as “junk mail” and due
to the name some marketers view the approach as ineffective
...
Outdoor Media
The out medium is now becoming an interesting medium
...
The use of signs to communicate a marketer’s message
places advertising in geographically identified areas in order to capture customer attention
...
Outdoor billboards come in many sizes, though the most well-known
are large structures located near transportation points intending to attract the interest of
people traveling on roads or public transportation
...
e
...
For example, smaller signage in airports, train terminals and large
commercial office space fit this category
...
The most obvious
method of using signs is through billboards, which are generally located in high traffic areas
...
Indoor billboards are often smaller than outdoor billboards
and are designed to attract the attention of foot traffic (i
...
, those moving past the sign)
...
While billboards are the most obvious example of signage advertising, there are
many other forms of signage advertising include:
➢➢
Sky writing where airplanes use special chemicals to form words
➢➢
Plane banners where large signs are pulled behind an airplane
➢➢
Mobile billboards where signs are placed on vehicles, such as buses and cars, or even
carried by people
➢➢
Plastic bags used to protect newspapers delivered to homes
➢➢
Advertisements attached to grocery carts
Product Placement Advertising
Product placement is an advertising approach that intentionally inserts
products into entertainment programs such as movies, TV programs and video games
...
First, in most cases the placement is subtle so as not to divert significant
attention from the main content of the program or media outlet
...
This may heighten the credibility of the product in the minds of the audience
since their perception, whether accurate or not, is that product was selected by an unbiased
third-party
...
In the future a
viewer of a television program may be able to easily request information for products that
appear in a program by simply pointing to the product on the screen
...
As this technology emerges it is expected
that product placement opportunities will become a powerful promotional option for many
marketers
...
Such devices allow customers
to stay informed, gather information and communicate with others without being tied to
a physical location
...
Also, with geographic positioning features included in newer mobile devices, the
medium has the potential to provide marketers with the ability to target customers based
on their geographic location
...
Sponsorships
A subtle method of advertising is an approach in which marketers pay, or offer
resources and services, for the purpose of being seen as a supporter of an organization’s
event, program or product offering (e
...
, section of a website)
...
However, many sponsorship
options lack the ability to tie spending directly to customer response
...
Others
While the nine media outlets discussed above represent the overwhelming majority
of advertising methods, there are several more including:
➢➢
Advertising using telephone recordings (e
...
, political candidate’s messages)
➢➢
Advertising via fax machine (though there may be certain legal issues with this
method)
➢➢
Advertising through inserted material in product packaging (e
...
, inside credit card
bill)
➢➢
Advertising imprinted on retail receipts (e
...
, grocery store, cash machine)
115
Media Characteristics
Media
Television
Advantages
Disadvantages
➢➢
Mass coverage
➢➢
Low selectivity
➢➢
High reach
➢➢
Short message life
➢➢
Impact of sight, sound, and
motion
➢➢
High absolute cost
➢➢
High prestige
➢➢
Clutter
➢➢
High production cost
➢➢
Low cost per exposure
➢➢
Attention getting
➢➢
Favourable image
Radio
➢➢
Low coverage
➢➢
Audio only
➢➢
Low cost
➢➢
Clutter
➢➢
High Frequency
➢➢
Low attention getting
➢➢
Flexible
➢➢
Fleeting message
➢➢
Low production cost
➢➢
Well-segmented audience
Cinema
Magazines
➢➢
Impact of big screen with
sound, movement and colour
➢➢
Television has eroded the
cinema audience bas
➢➢
Attracts young crowd
➢➢
Slow buildup of audience
➢➢
Theatre viewing a socializing
event
➢➢
Attendance is low and infrequent
➢➢
Selective local advertising
coverage possible which can
gain immediate impact
➢➢
Commercials shown either
in the beginning or at the interval, when high attendance
is not ensured
➢➢
Segmentation potential
➢➢
Quality reproduction
➢➢
Long lead time for ad placement
➢➢
High information content
➢➢
Visual only
➢➢
Longevity
➢➢
Lack of flexibility
➢➢
Multiple readers
116
Newspapers
➢➢
High coverage
➢➢
Short life
➢➢
Low cost
➢➢
Clutter
➢➢
Sleek time for placing ads
➢➢
Low attention-getting
➢➢
Advertisements
can
be
placed in interest sections
➢➢
capabilities
➢➢
Timely
➢➢
Selective reader exposure
➢➢
Poor production quality
➢➢
Reads control exposure
➢➢
Can be used for coupons
Outdoor
➢➢
Location specific
➢➢
High repetition
➢➢
Short exposure time requires
short ad
➢➢
Easily noticed
➢➢
Poor image
➢➢
Local restrictions
Direct mail
➢➢
High selectivity
➢➢
High cost/contact
➢➢
Reade controls exposure
➢➢
Poor image (junk mail)
➢➢
High information content
➢➢
Clutter
➢➢
Opportunity for repeat exposures
Internet and
Interactive
Media
➢➢
User selects product information
➢➢
Limited creative capabilities
➢➢
User attention and involvement
➢➢
Technology limitations
➢➢
Web snarl (crowded access)
➢➢
Interactive relationship
➢➢
Few valid
techniques
➢➢
Direct selling potential
➢➢
Limited reach
measurement
➢➢
Flexible message platform
Mobile
➢➢
A communication revolution
➢➢
Nuisance value
➢➢
Reach not dependent on location
➢➢
intrusion in privacy
➢➢
Reach the right target audience
➢➢
Literacy barrier
➢➢
Permission marketing possible
➢➢
Emotional connotations
➢➢
An all pervasive medium
117
➢➢
A possible health hazard
Summary
The importance of media planning as a function has grown immensely with the
coming of cable and satellite channels and the emergence of new media such as the Internet
and mobile phones
...
Media planning
is a process, which means a number of decisions are made, each of which may be altered
or abandoned as the plan develops
...
It
requires development of specific media objectives and specific media strategies designed to
attain these objectives
...
****
118
Lesson 3
...
An organization may be advertising through all traditional media, but
if it does not have an internet presence, viz
...
Hence, internet is not an option
...
People may read your ad in the news paper,
log on to your web site to find more information, visit consumer reviews on your site to
know the opinions of the people about the product
...
Internet further facilitate through multimedia content that includes not only text,
and graphics, but also audio, video and various interactive features
...
Advertising through internet is the need of the days
...
Importance of Internet Advertising
With the technological advancement, the internet has positioned itself as one of the
very important media that can be used for almost all advertising purpose across all possible
market segments
...
As the internet gained popularity, marketers began to
explore if this medium was lucrative to advertise on and found that it gave them more than
what the other media could offer
...
The marketers believed that this form of brand conditioning would enhance the consumer’s
brand experience
...
he growth of the internet as a
provider of standard global access to system and network all over the world is an area of
huge interest currently and will very soon become a major consideration for the marketing
departments of most Indian organizations marketing to consumers and business
...
➢➢
To drive traffic to the website: Online advertising offer a proven way to steer
interested buyers to the website, where one can know more about the product and
services
➢➢
Develop qualified leads: While at the website, the best copywriting and photographs
can convince the prospects and provide good business
...
➢➢
Conduct sales: As the prospects become warm, one can close sales either online or
direct the buyers to their dealer channel, if that is the seller’s sells strategy
...
These browsers are tools needed to read the HTML
(hypertext mark-up language) documents that make up the World Wide Web
...
Since the Web could not exist without these browsers,
advertisers needs to understand how they function and how to use them to their advantage
...
Most
search engines locate sites that contain a specific set of words, as specified by the logic
chosen for the search (i
...
small business and media)
...
After all, many potential customers
that find their way to your homepage may not have the necessary “plug-in” to experience
those effects
...
For this reason, small businesses
hoping to establish a presence on the Internet should make sure their Web sites are listed with
a number of search engines
...
For example,
small businesses can buy space for a banner advertisement within a certain search category
or even a specific search term
...
Homepages
In a 1997 Forbes article, writer William Davidow pointed out that advertising on the
Internet “will be intimately tied to the sales process
...
They will purchase
directly over the network
...
A homepage, then,
needs to provide potential consumers with the necessary information (phone numbers,
addresses, and product information) for customers to follow through on desired purchases—
or at least provide them with enough data to pique their interest and enable them to make
a purchase or get additional information via more traditional (i
...
, non-electronic) means
...
When developing a homepage, a business needs to consider several relevant aspects
of electronic text and presentation
...
Key to creating an inviting homepage, other than
subjective aesthetic concerns, is “hyperlinks,” which allow the reader to move vertically
121
through the text
...
A visually
cluttered homepage will be ignored by Web users, who are notorious for quickly moving on
to other sites when confronted with confusing or uninteresting homepages
...
As the internet matures, the number of
forms continues to expand
...
The details of each are explained below;
Websites
Some companies view their whole website as an advertising and in some way it is
...
It’s an alternative “storefront,” a location
where customers, prospects, and other stake holders can come to find out more about the
company, its product and services
...
Thus, except when
used like a brochure, the website is really more than an advertising
...
Banner ads may
be use for creating awareness or recognition or for direct-marketing objectives
...
Banner ads were
once the leading form of advertising online
...
However, some Web advertising agencies claim that few people
access web pages through banners; these agencies are now trying new motion and graphic
technologies to make the banners more inviting
...
Similar to banners are buttons, small version of the banner that often look like an
icon and usually provide a link to an advertiser’s landing page, a marketing tool that leads
122
people into the purchasing or relationship-building process
...
Interstitials
The interstitial is a catchall term for a variety of ads that play between pages on a
website, popping on the screen while the computer downloads a website that the user has
clicked on
...
Pop-ups
Pop-ups ads that “pop up” by opening a new browser window when a specific content
page is requested
...
Pop-ups disturb a user’s browsing experience, have
to be clicked individually to close the window, and at times overload a browser’s capacity
...
Po-undress are a slightly less irritating
format since the new advertising window pops under the content window
...
Modern day browsers and software allow
users to block all poop-up advertising
...
Corporations sponsors entire sections of a publisher’s web page or sponsor single events
for a limited period of time, usually calculated in months
...
Sometimes an added-value
package is created by integrating the sponsor’s brand with the publisher’s content, as a sort
of advertorial, or with banners and buttons on the page
Search Engine Marketing
When an internet user types a word or phrase into a search engine, two kinds of
results are displayed—those that have been paid for by advertisers, and those that are natural
...
The more an advertiser agrees to pay per click for a specific
123
keyword and the more effective the ad, the higher a site will rank in the paid search results
...
Classified Ads
Another growing area of internet advertisers, and an excellent opportunity for local
advertisers, is the plethora of classified and websites, like CraigsList
...
Many of these offer
free classified advertising opportunities because they are typically supported by banners of
other advertisers
...
E-mail Advertising
Sending advertisements by e-mail is another method of using the Internet as an
advertising vehicle
...
An online newsletter sent out by e-mail is a more sophisticated way in which to reach
actual and potential customers
...
Online surveys are also a way to build up an e-mail address mailing list that can be
used to send out company information relatively inexpensively
...
In addition to the online advertising methods listed here, there are many others
...
Some
companies sponsor web sites for other groups in exchange for links to their own web site
...
The list of options is lengthy and the field of online advertising
is still quite dynamic
...
Many of the companies using sales promotion with their websites
...
Personal Selling on the Internet
Many of the companies using internet to improve their one-on-one relationships
with customers
...
This increases the
opportunity for cross-selling and customer retention
...
Many sites
devote a portion of their content to public relations activities, including the provision of
information about the company, its philanthropic activities, annual reports, and more
...
Direct Marketing on the Internet
For direct marketing there are many tools like direct mail, infomercials, and the
like, have been adopted to the internet
...
Advantages & Limitations of Internet Advertising
Advantages
Limitations
➢➢
The internet is a truly interactive
medium that allows customers to
directly interact with an advertiser
and establish a relationship
The internet is plagued by a lack of knowledge of advertising effectiveness, market
research and standard methods of measurements for both ad exposures and pricing
125
➢➢
The internet is the only true global
medium, providing information
and commence that is immediately
accessible from around the world
Targeting costs can be very high compared
to any other medium because of precise
selectivity criteria
...
➢➢
Except personal selling, no other
customer contact method can generate an immediate response as the
internet
...
This provides instant feedback to marketers
...
➢➢
The internet provides high selective
targeting by purchasing keywords
and reach potential customers when
they are ready to purchase
...
➢➢
The internet users mostly have
higher incomes more buying power,
which is a favourable factor for all
the advertisers, particularly of highpriced products
...
So far
internet has not proved safe for financial
transactions and this limits its viability
...
Internet is
products and services to customers
...
➢➢
The internet reaches business-tobusiness users while they are still
at work
...
Many countries have outdated telephone
lines, and high cost local telephone lines,
and high cost local telephone services, or
the infrastructure is inadequate
Summary
With the technological advancement, the internet has positioned itself as one of
the very important media that can be used for almost all advertising purpose across all
possible market segments
...
Advertising through internet is the need of the
126
days
...
****
127
Lesson 3
...
It is more effective
than other forms of marketing because consumers control what kinds of messages they
will receive, about which products and services they are interested in, and under what
conditions
...
” (Kotler, p
...
What is unique about this
form of marketing is that it holds distinct advantages for both consumers and marketers
...
This requires the marketer to provide an incentive such as freebies (free content,
sweepstakes or games)
...
128
Step 3: Reinforce the incentive – This step is critical because you may have to ask
for permission again with yet another incentive if the customer seems to have lost interest
...
The permission marketer then
becomes someone who is trustworthy of providing a service or product
...
PM works only if it is managed with care at every step
...
Permission is a state of mind and thus can be interpreted
differently by consumers and marketers
...
On the other hand when
consumers lose interest in products and services, they view the granted permission to be
obsolete and interpret future emails to be unsolicited
...
” (Usborne, 7/26/99)
In order to retain customers, marketers must adopt certain guidelines to manage
relationships with their customers:
➢➢
When changing the rules, inform the customers and renew their permission
...
com article Permission is Dead – Long Live Permission
...
A simple statement in the introduction to your email can serve
this purpose
...
Providing a link to
your privacy policy also gives customers a sense of dealing with a legitimate source
...
(Gallogly, 6/24/02)
129
Trust and Privacy in Permission Marketing
“The idea of building trust and relationships with customers has been around for
thousands of years
...
Even during the last quarter of that century, direct marketers practiced
permission marketing through direct mail
...
” (Usborne, 5/1/00)
Building trust in an online atmosphere can be more difficult as there is nothing
tangible for a customer to use to draw conclusions about a company’s perceived level of
trust
...
Yet, that same study also found that 80 percent of users say
it’s very important to be able to trust information found on a website
...
Trust is needed primarily to make the first contact with the customer
and then to maintain a good relationship with the customer over time
...
Companies practicing PM
have to turn attention into permission, permission into learning and learning into trust
...
For example, one of the common mistakes of permission marketers is giving other businesses
access to their PM customer database
...
Privacy is an issue closely associated with the concept of trust in PM
...
Customers can find answers to most questions about the above-listed issues in a
company’s privacy policy which is generally presented before a customer gives his or her
consent to engage in a PM campaign
...
This
130
sensitive issue can cause the consumer to be wary in engaging in the PM process or perhaps
even withdraw from the process once engaged
...
Companies might consider
requiring only a consumer’s email address and allow him or her to provide all other personal
information as an option
...
Ethical Concern Internet Marketing
There is a rapid growth of internet using as a marketing communication tool
...
One of the main problems
resulting from internet marketing is violation of an individual’s privacy, as a direct marketing
...
In 2000, the Government passed the Information Technology
Act intended to provide a comprehensive regulatory framework for e-commerce
...
This regulation is particularly useful in light of the fact that even
minors are at the receiving end of internet marketing
...
In interpreting Section 5 of the
act, the Commission has determined that a representation, omission or practice is deceptive
if it is likely to:
➢➢
Mislead consumers and
➢➢
Affect consumer’s behavior or decisions about the product or service
...
The FTC Acts prohibits unfair or deceptive advertising in any medium
...
A claim can be misleading if
relevant information is left out or if the claim implies something that is not true
...
They may not simply rely on an advertiser’s
assurance that the claims are substantiated
...
Summary
Permission marketing (PM) allows marketers to obtain consent or “permission” from
customers or prospects before sending them marketing messages
...
The most effective media for PM is through the Internet
...
In 2000, the Government passed the Information Technology Act
intended to provide a comprehensive regulatory framework for e-commerce
...
Self Assessment Questions
1
...
What are the different stages in media planning?
3
...
4
...
Write down advantages and disadvantages of different media
...
Write short notes on the following:
(a) Scheduling
(b) Reach and frequency
(c) Readership
(d) Viewership
7
...
What are the methods of internet advertising?
9
...
What is permission marketing?
11
...
Write about the privacy in permission marketing
...
Write short notes on the following:
(a) Search engine
(b) Homepage
(c) E-mail advertising
(d) Pop-up
CASE STUDY
A Question of the Right Click
The Net Age is here
...
And contrary to what many believe, the Internet is relevant
...
Why,
someone sitting in Agra can have access to how the Chicago Bulls are doing in the game
against the Los Angeles Lakers!
Today, communication via e-mail and online chatting offers immediate and cheaper
exchange of ideas, thoughts, feelings and emotions
...
And e-commerce is flourishing, thank to feeble and so on
...
Now, the acid question – are people Internet-friendly in India? Depend on how you
look at it, say analyst
...
In these two extremes, how does
one find out Indian surfing habits? Or which is the most popular site? Or other things like
these?
Well, Renaissance Consultants has tried
...
The Methodology of Survey
The survey has used a combination of qualitative and quantitative instruments
across five locations, namely Kolkata, Mumbai, Delhi, Chennai and Pune
...
The questionnaire covered demographic and psychographic
profiles of users, the mode of introduction to Internet and access, the pattern of usage, the
functions and applications that are used, pattern of e-mail and searching and preferred
browsing modes
...
To ensure that the survey was indeed relevant, the consultancy claims to have pre-
tested it and, subsequently, fine-tuned it
...
Moreover, internal cross-checks were built into the questionnaire for
consistency
...
the survey sample was satisfied to reflect a
combination of the following segments:
➢➢
Home, cyber-café, and multiple access users
...
➢➢
Student and professional users
...
The final sample size, across all the five locations was 3,000
respondents
...
And, obviously, the advantages of
a huge sample size are apparent – there are likely to be lesser quirks, fewer discomforting
variations and perhaps more importantly, the benefits of a wide reach
...
and back checks were
performed with a randomly chosen 10% of the sample to ensure the survey’s veracity
...
Among the qualitative instruments, a detailed checklist of information for focus
group activity was drawn up and focus group interview were held
...
➢➢
Students who are light users
...
➢➢
Professional women users
...
➢➢
Professional male users
...
Some Toppling Findings
The following findings are based on a preliminary analysis of close to 500
questionnaires; the sample mix for the same is 55% students and 45% professionals
...
Like any survey, these figures are not total absolutions
...
Take the top site, for instance
...
The
researchers found that Yahoo’s position is due to its usage benefits e-mail, searching and
browsing
...
net and Hotmail are among the top, it shows that e-mail is
still the primary function of the Internet
...
As far as the top Indian sites go, there are lots of regional fluctuations
...
And Cricinfo, though not strictly an Indian site, has been
included because it leads the stake with its Indian cricket info
...
A prone sight is also among the top
...
This could be because of the novelty, but is an indication of worldwide phenomenon
As far as e-mail usage is concerned, Hotmail leads the way, possibly because it was
among the first to offer free e-mail and almost every day has had a friend to help them
open an e-mail account
...
net, the ISP account and Rediff
...
And as far as the top search is the attitude
towards e-commerce
...
But people are steadily opening up to the idea
...
Only those that relate to an
interest of the surfer are noticed
...
Click-through rates are also low, for many
tend to zap ads to brows faster
...
And that is perhaps what this survey
will have to depend on to increase its usage, word-of-mouth
...
Source: A&M, May 31, 2000
...
Analyse the case and note down significant findings
...
How those findings can help advertisers who want to use the Internet as the medium?
3
...
Why
would respondents incorrectly report their readership in this manner can you think of any
measure perhaps unobtrusive, to avoid this bias? If a brand is not substantially different
from its competitors, should its advertisements state that fact? What would be the effect of
such a rule?
****
136
UNIT – IV
Unit Structure
Lesson 4
...
2 – Advertising in International market place
Lesson 4
...
1 - Measuring Advertising Effectiveness
Learning Objectives
After reading this lesson, you should be able to:
➢➢
Understand what is advertising effectiveness
➢➢
Appreciate measurement of advertising effectiveness
➢➢
Different types of testing for advertising effectiveness
Introduction
All advertising efforts are directed mainly towards the achievement of business,
marketing and advertising objectives i
...
, to increase the sales turnover and thus to market
the maximum profit
...
In the
background of all these efforts, is an attempt to attract the customer towards the product
through advertising
...
Whether, it has achieved the desired results i
...
desired sales
profitability or results in terms the change in customer’ behaviour in favour of the company’s
product which will naturally, affect the future sale of the product
...
Pretests are generally conducted in the beginning of the
137
creation process or at the end of creation process or production stage
...
The effectiveness of advertising in a particular media may also be measured in any
of the following ways –
(a) By giving different addresses to different media,
(b) Different newspapers may be selected for advertisements of different departments,
(c) Coupon blank etc
...
The technique is known as keying the advertising
...
This chapter deals with these three problems
...
Despite,
this extent of fundamental research in this area continues to be extremely low
...
Considerably money
is spent on pre-testing an advertisement copy
...
There are the
sources, Message, Media and Budget
...
Source: It has to be seen whether the source is effective and how the target market
will respond to it
...
They are attractive,
genuine sports persons or actors and have the credibility
...
2
...
The message should be memorable and should be able to
deliver the advertising objectives
...
The message must have proper headlines, illustrations,
text and layout
...
3
...
e
...
Media Vehicle has also to be decided, that is
138
which newspaper or magazines, which channel of Television or which programme
on radio is to be used
...
The
location of the advertisement in a particular media is also important
...
In Television some programme are more effective and popular
...
Importance of Measuring the Effectiveness of Advertising
(1) It acts as a Safety Measure
Testing effectiveness of advertising helps in finding out ineffective advertisement and
advertising campaigns
...
Thus waste of money in faulty advertising can be
avoided
...
(3) Avoids Possible Failure
Advertisers are not sure of results of advertising from a particular advertising
campaign
...
(4) To justify the Investment in Advertising
The expenditure on advertisement is considered to be an investment
...
The rate and size of return should be
determined in advance
...
(5) To know the Communication Effect
The effectiveness of the advertisement can be measured in terms of their
communication effects on the target consumers or audience
...
It is therefore desirable to seek
post measurements of advertising in order to determine whether advertisement have been
seen or heard or in other words
...
(6) Compare Two Markets
Under this procedure, advertising is published in test markets and results are contrasted
with other
...
The measurements made to determine results may be measurements of change
in sales, change in consumer attitudes, changes in dealer display and so on depending upon
the objectives sought by the advertiser
...
Pre Testing
2
...
Post Testing
Pre testing also known as evaluation research is done before the advertisement is
released
...
Since a lot of
money is spent on making the advertisement copy etc
...
Pre testing may be done at a number of points
...
Pre test should be used as a guide
...
These
settings can be in laboratory, field etc
...
Methods of Pre Testing of the Advertisement
Focus Groups
Focus groups are used to evaluate one or more ad concepts through in depth
discussions on a topic
...
140
Individual Interviews
Test audience may be individually either by taking prior appointments or by
intercepting them at public locations such as shoping malls, cinema halls, etc
...
People may be asked if
they think a particular ad would get attention, if they find it interesting, if they would read
the copy, if they would believe its claims, if it would lead them to purchase the product etc
...
Random passersby are chosen as interviewees and offered some
incentive for participating
...
Consumer Juries
Consumer or target market representatives are appointed as juries to evaluate the
performance of a selection of ads on various criteria
...
Consumer may be
asked to either rank the ads from one to other based on the order of their preference, or
compare all the ads in the test, two at a time, and mark the preferred one
...
Ethnography
Ethnography is an observation research technique in which data is collected by
observing consumer behavior
...
by giving consumers a
video camera to record their interactions with the target product; by having consumers
record their behavior in diary etc
...
Programme Analysis
A technique specially advised for the pretesting finished broadcast material by Paul
F
...
It uses a sim-ple device called
141
the Stanton-Lazersfeld programme analyser that can monitor audience’s likes and dislike
throughout a broadcast programme or commercial
...
They view or hear the programmes or
commercials and press the right-hand button when they like something and left –hand
button when they dislike something
...
On-Air Testing
This is a method of field-testing broadcast commercials by airing them in one or
more test market either in place of the new commercial or at a new time period
...
Viewers who saw the test commercial are interviewed to determine their recall
levels, brand attitudes, brand knowledge etc
...
Theatre Test
This laboratory method of pretesting broadcast commercial is popularly used in
many western countries
...
Some commercials, including the one being tested, are
interested in the entertainment program shown to the audience
...
The measurement of the effectiveness of the tested commercial is determined
by comparing the audience’s preference for the brand after the programme with their
preference before the programme
...
Here consumers are exposed to ‘test ads’ in a folder, which also contains a number of
‘control ads
...
It may also involve rating the ads or
products advertised
...
142
Dummy Advertising Vehicles
In an improvement to portfolio tests, a cross section of consumers is given a dummy
or test publication, containing a portfolio of about 15-20 ads along with regular editorial
material, to be read at home
...
Alternatively, publications may be
distributed in same homes
...
They are often interviewed on phone to next day to determine recall
of the ads and sales points, overall ad impressions, etc
...
They measure the ease of
reading copy in a print ad including comprehensions, retention, reading speed, and reading
persistence
...
They measure participant’s involuntary physiological responses
for both print and broadcast ads
...
There are various methods for measuring eye movements
...
Another modern method
uses a sensor to beam infra red light in the subject’s eyes
...
➢➢
Pupil dilation: Advertisers also rely on abrupt changes in pupil diameter, which
indicates current levels of mental effort put forth by the user
...
This study of the relation between a viewer’s
interest level in an ad and his pupil dilation is known as pupilometrics
...
It is performed with a psychogalvanometer that
measures changes in the activity of the sweat glands via electrodes attached to the
subject’s palm and fore arm
...
This is recorded in a psychgalvanometer
...
➢➢
Brain waves: Electroencephalography is the neurophysiologic measurement of the
electrical activity of the brain performed by recording electrical frequencies in the
brain
...
These are sometimes called brain waves
...
Concurrent Testing Methods
Concurrent testing takes place while an ad campaign is running
...
Coincidental Survey
This methodology is a system of audience measurement primarily for the broadcast
media
...
E
...
Often the data collected for television
from people is compared with peoplemeter data to get consistent results
...
Attitude tests can be done concurrently or as a posttest
...
of an ad and the results are used to indicate positive or negative attitudes
...
Tracking Studies
Tracking studies track or measure the effects of an ad campaign continuously over a
specified period of time
...
Following methods are also popularly
used in tracking
➢➢
Wave analysis: Wave analysis measures the impact of advertising over time through
multiple measures and a series of interviews, which give a wave like pattern of
communication performance when plotted in a graph
➢➢
Consumer diaries: In consumer diary method a panel of consumers is asked to
maintain a diary in which they record their media usage, purchase patterns, brand
usage, brand switches, exposure to competitive promotions etc
...
The technique provides information regarding important parameters
as directly reported by the panel members and can help in making changes in the
campaign to improve its performance
...
Alternatively, he may do a physical count of the inventory of various
brands stocked by the consumer
...
➢➢
Single-source tracking: This method refers to the collection of data ranging from
communication exposure to product purchase regarding a single family or group of
consumers
...
by monitoring exposure to promotion efforts and
audience’s decision-making and purchase behavior can be tracked through entire
communication-to-purchase cycle using sophisticated research method and devices
...
The
following are some methods:
Recall Test
In this test, the respondents are asked to recall the advertisements they have seen
and the brand is concealed and asked whether they had seen the advertisement through
reading, listening or viewing
...
In recall tests of print ads, participants are asked to read test publication in their
homes
...
Qualifying participants are questioned regarding ad elements, sales points, purchase interest
and intention, etc
...
Recognition Test
This is conducted to see whether the advertisement is recognised or not
...
The advertisement can be broken into headlines,
layouts, body, copy, logo etc
...
The recognition test can be conducted in a number of ways
...
Next day they are asked questions about the advertisements appearing in that
magazine to assess the recall of advertisements
...
Their objective is to generate the maximum number
of inquiries in response to an advertising campaign
...
In return, they may sometimes be offered incentives like product samples, information
booklets, free trials, small gifts, etc
...
Under this method advertising campaign is run in
the markets selected for testing purpose
...
The market with high sale is considered the best market for effective sales campaign
...
Comprehensive Measures
Advertisers are often interested in understanding the performance of advertising on
all the above-mentioned parameters and various media jointly because only a comprehensive
analysis can tell how effective a campaign has been
...
Comprehensive
tests can spot out such anomalies so that performance can be improved through the entire
process from product awareness to product purchase
...
The scale
measure the customer’s attitude on a continuum from vary favourable and unfavourable at
the other
...
The effectiveness of the advertisement can be measured by comparing the present
sales with the post sales
...
These could be;
(i) The cost per thousand target buyers incurred on media category and media vehicle
...
(iii) Consumer’s opinion on the advertisement contents and effectiveness
...
(v) No enquiries received for the advertisement
...
Control on Advertising by Practitioners; Media and Market
Advertising puts across messages and their presentation may be against the accepted
values of society
...
These
unsocial, immoral and unethical values are controlled by government and by consumers
...
Self- regulation would result in true and accurate messages
...
Yet many advertisers have
declared that they should exercise control over, and restraint on, their activities
...
Consequently, the Council of Better Business
Bureaus and National Advertising Review Board were established
...
It was known as Better Business Bureau
...
In 1976, there were about 240 Better Business Bureaus throughout
the USA
...
Advertising agencies, advertising media and other agencies were determined to stamp out
deceptive advertising
...
The BBB persuades advertisers to discard questionable modes and practices of
advertising
...
The Better Business Bureaus
are interested in people operating advertising agencies
...
The CBBB
achieved prominence for national advertising regulation
...
It consists of eight members drawn from leading advertising agencies
...
They see to it that no false or misleading copy, layout, etc
...
The CBBB has a wing known as National Advertising Division (NAD) composed of
knowledgeable individuals from the local bureaus
...
The reports of CBBB are prepared in the light of the recommendations of the local
people
...
After evaluating the reports of the CBBB and the claims of the advertiser,
148
the NAD may dismiss the complaint on the ground that the advertiser’s claims are correct
and substantial
...
If the advertiser does not comply with the
direction of the CBBB, its point of view and the complaints of the public are forwarded to
the National Advertising Review Board
...
The National Advertising Review Board started its functions in 1971 in the USA
...
The NAD suggests appropriate changes in the advertisement
...
The NARB appoints a five-member panel composed of three representatives of
advertisers, one agency person and one public representative to review the complains
forwarded by the NAD and the stand taken by the advertiser
...
The NARB publishes the complaints if the advertiser does not accept the suggestion of the
NARB
...
The local Better Business Bureaus, too, have been approaching the NARB for the
settlement of the complaints filed by the public, The NARB has special cells to hear the
complains of children, women, minorities and other sections of society
...
The FTC
can call for suitable correction of misleading or incorrect advertisements
...
The objectionable advertisements are not published or viewed or advertised
by the media
...
Television and radio are more concerned about the
content of advertisements than the print media
...
The
time allotted to advertisers is restricted by television and radio
...
They are famous for refusing to publish such
advertisements
...
, are frowned
upon; advertisements bearing on these are not accepted by newspapers
...
Controls by Consumers
Consumers have started exercising control over misleading advertisements since the
latter part of the nineteenth century
...
They have devastating power to accept or
boycott the product, which they do through consumer groups, through businessmen and
through a law-enforcing authority
...
Controls by Government
Control by the government is felt to be necessary to check deceptive, misleading,
highly competitive and immoral advertising
...
It has the power to control it
...
The content of
advertisements has to be regulated by the Government
...
Only the public laws and Sale of Goods Act are employed to control
advertising
...
The Consumers’ Protection Act and other relevant laws have been enacted to control
objectionable advertising
...
It has to demonstrate greater social responsibility
...
Truthful advertising leads to consumer
satisfaction
...
They compete
with others on the basis of dishonest presentation
...
The USA has been very active
in this field
...
In the USA such legislation has been
enacted by the federal government, state governments, and municipalities
...
The development of consumer power took place
in the USA between 1889 and 1925 when consumers developed their strength and realized
the need for resisting misleading and unrealistic advertising
...
In India, consumer power developed during the Swadeshi
Andolan in 1922, which continued till 1950
...
Consumers’ Union,
Drug Control, etc
...
In India, the growth of consumerism
took place between 1951 and 1985
...
e
...
The consumers’ Safety Act was enacted in 1989
...
Many books on consumerism were written, which brought pressure to bear on
manufacturers and traders so that there might be the right type of packaging, true labeling,
truth in credit and substantiation of claims of deceptive products
...
The misleading activities
of advertisers were brought to the notice of the public
...
Consumerism in India developed rapidly
...
There has been
a great pressure on the government to enact suitable legislation to protect the interests of
consumers
...
The present laws in India may not be very
useful unless consumers are educated and motivated to protect their interests
...
The present state of consumerism in India is worse
than it is in the USA
...
The reasons
for the growth of consumerism are technological development, water and air pollution,
soaring prices, heavy taxes and other economic factors
...
In the Indian context, consumer protests
have to be developed on a large scale
...
If advertisers
get the feedback that their presentation and announcements have been resisted by people,
they would avoid misleading advertising
...
151
Advertisers have to evaluate the end results of their advertisements
...
Therefore, advertisers should
not feel that consumers are adversaries
...
Consumerism gives a boost to government control
...
Therefore, consumers now receive the cooperation and assistance of many
sound advertising agencies
...
****
152
Lesson 4
...
The emergence of a largely borderless world has created a new
reality for all types of companies
...
With the development of faster communication,
transportation, and financial transactions, time and distance are no longer barrier to global
marketing
...
Consumers around the world
wear Nike shoes and Calvin Klein jeans, eat at McDonald’s, shave with Gillette razors, use
Apple i-pods, Dell computers, drink Coca-Cola and Pepsi soft drinks, talk on cellular phone
made by Nokia and Motorola and drive cars made by global automakers such a Ford, Honda
and Nissan
...
S
...
➢➢
Many companies must focus on foreign market to survive
...
153
➢➢
Companies are also pursuing international markets because of the opportunities
they offer for growth and profits
...
S
...
The Role of International Advertising
Advertising is an important part of the marketing programme of firms competing
in the global market place
...
Advertising expenditure outside the United States have
increased by 60 percent since 1990, reaching an estimated 214 million in 2002, as global
marketers based in the United States, as well as European and Asian countries, increase
their worldwide advertising
...
It means the company must internationalize the management group
...
Every product category can be divided into local (or national), regional (trading
bloc), and international brands
...
Although the Eastern European bloc will exist as a trading region for years,
several of the westernmost countries in this group have been subsumed into the European
Union, and Russia and the Asian republics of the former Soviet Union ma1 coalesce into
a smaller fifth bloc
...
Global Brands
A global brand is one that has the same name, design, and creative strategy everywhere
in the world and is marketed in most of the major regional market blocs
...
154
Advantages of Global Marketing & Advertising
A global marketing strategy and advertising program offer certain advantages to a
company, including the following:
➢➢
Economies of sales in production and distribution
...
➢➢
A consistent international brand and/or company image
➢➢
Simplification of coordination and control of marketing and promotional programs
...
Difference in culture, market, and economic development;
consumer needs and usage pattern; media availabilities; and legal restrictions make it
extremely difficult to develop an effective universal approach to marketing and advertising
...
Moreover,
some experts argue that cultures around the world are becoming more diverse, not less so
...
Consumer usage pattern and perceptions of a product may vary from one country to
another, so advertisers must adjust their marketing and advertising approaches to different
problems they may face in different markets
...
Brands or messages that can be adapted for a visual appeal, avoiding the problems of
trying to translate words into dozens of languages
...
Brands that are promoted with image campaigns that play to universal appeals such
as sex or health
...
High-tech products and new products coming to the world for the first time, not
steeped in the cultural heritage of the country
4
...
5
...
Approaches to Global Advertising
Globalization (Standardization)
This school of thought contends that differences between countries are more a
matter of degree than direction, so advertisers must instead focus on the similarities of
consumers around the world
Localization (Adaptation)
This school of thought argues that advertisers must consider differences among
countries, including culture, stage of economic an: industrial development, stage of life
cycle, media availability, research availability, and legal restrictions
...
Note that most companies use the middle-of-the-road approach or
lean toward localization
...
Tea is offered in stores in the fareast, stronger coffees in Europe, and gourmet coffees in the United States
...
No single approach is always the right one
...
The reality of global advertising suggests that the contingency approach is
best
...
The challenge in advertising is the careful and sophisticated use of Kotler’s “variations”
nationally or regionally under a basic Levitt-style global plan to maintain efficiency
...
Basically, the plan outlines the marketing strategy, whereas the budget allocates the funds
...
The Market Analysis Model
This model is based on data and observation from several countries
...
The two major variables are the share of market of brands within a category and the size of
the category
...
Considering the size of the market changes the picture, however
...
Half
of this smaller market is already in global brands
...
A marketing manager must look not
only as share but also at market size, growth rates, and growth opportunities
...
To generate sales in Germany, then, a soft-drink company would have to develop
orange and lemon-lime entries
...
157
The Culture-Oriented Model
The second model of international advertising emphasizes the cultural differences
among peoples and nations
...
Although the same emotions are basic to all humanity, the degree to which these
emotions are expressed publicly varies
...
The informal, first-name relationships common in
North America are frowned on in Germany, where co-workers often do not use first names
...
How do cultural differences
relate to advertising? According to the high-context/low-context theory, although the
function of advertising is the same throughout the world, the expression of its message
varies in different cultural settings
...
It is observed that Japanese has the highest-context culture
...
The differences between Japanese and English are instructive
...
English words have very clearly defined meanings that are not highly
dependent on the words surrounding them
...
Listeners or readers will not understand the exact meaning of a word unless they
clearly understand the preceding or following sentences, that is, the context in which the
word is used
...
In contrast, messages authored by writers from low-context cultures
may be difficult to understand in high-context cultures because they omit essential contextual detail
...
Differentiation is achieved by bringing
out the people appearing in the commercial-the way they talk, the music, the scenery-rather
than emphasizing the unique features and dissimilarities of the product itself
...
Some agencies exercise tight control, whereas others allow more local autonomy
...
Henkel, a large German
158
manufacturer of household and cleaning products, provides -: example of how centralized
management with similar products works
...
It included these steps:
1
...
2
...
3
...
4
...
5
...
The organizational structure for managing international advertising depends
heavily on the globalization-versus-localization marketing and advertising strategy
...
For a product using localized advertising,
there probably will be a separate advertising plan for each foreign market
...
Quaker adopted standardized advertising for Gatorade and its other
international products
...
If the marketing effort, including
the advertising, is more localized, then the company is likely to centralized advertising
management in each individual foreign market
...
Approaches to the International Advertising Campaign
‘All business is local
...
” Although advertising campaigns can be created for worldwide exposure, the
advertising is intended to persuade a reader or listeners to do something buy, phone, and
order
...
Some advertisers develop tightly controlled global campaigns
with minimum adaptation for local markets
...
159
Centrally Controlled Campaigns
International advertising campaigns have two basic starting points: (l) success in
one country and (2) a centrally conceived strategy, a need, a new product, or a directive
A National Success Story
A successful advertising campaign, conceived for national application, is modified
for use in other countries
...
Procter & Gamble, Ford, Hasbro and many other companies have taken successful
campaigns from one country and transplanted them around the world
...
Although the concept is simple, the application is difficult
...
The one word theme replaced one of the most successful ad slogans in aviation history,
“Fly the Friendly Skies of united
...
Cost is a huge factor
...
Positioning the Global Product
Research must be conducted to identify the problems and opportunities facing
the product in each of the international markets to be entered
...
Emphasis
should be placed on identifying local market differences to which the advertising programs
must adjust
...
Particularly important is a good
understanding of consumer buying motives in each market
...
If analysis reveals that consumer buying
behavior and the competitive environment are the same across international markets, it
may be possible to use a standardized positioning in all international markets
...
Starbucks’ consumer research suggested that perceptions of a store such as
Starbucks varied from market to market
...
The position of
Hawaiian gores was as a place to relax, any time of the day or night
...
Television can transmit the Olympics
around the globe, but no one network controls this global transmission
...
Media Choices
Once the company has approved the basic global media strategy and plan the central
media planner will look for regional or multinational media
...
The International Herald
Tribune and the wall street Journal newspapers are published simultaneously in a number
of major cities using satellite technology
...
This
is accomplished through an international advertising agency (or international consortium
of agencies) or through an international media-buying service If these two methods are
not used, the media executive must execute the plan through a multitude of local, national,
or regional media-buying services or advertising agencies
...
Regional mediabuying services, such as Carat of France, are gaining great strength in Europe
...
The opportunity for
standardizing the campaign exists only if the objectives and strategic position are essentially
the same
...
Standardizing the copy
161
content by translating the appeal into the language of the foreign market is fraught with
possible communication blunders
...
It is
best if the central creative idea is universal across markets, or at least can be converted
easily from market to market
...
Advertisements
may be produced centrally, in each local market, or a combination of both
...
Special International Considerations
International advertising, despite its glamorous image, is tough work because it
poses formidable challenges
...
Other concerns relate to laws, customs, time, inertia, resistance, rejection, and politics
...
For example, a marketer cannot advertise on television to children under l2 in Sweden
or Germany cannot advertise a restaurant chain in France, and cannot advertise at all on
Sunday in Austria
...
A commercial can be aired in Australia only if it is shot with an Australian crew
...
Customs and Culture
Customs can be even stronger than laws
...
In many countries, naming a competitor is considered
bad form Customs are often more subtle and, as a result, are easier to violate than laws
...
In Japan the audience would respect the advertiser
for using the name or become embarrassed at not knowing a name they were expected
to recognize
...
S
...
Companies that are starting to do business in the Middle
East have to learn new selling methods because the region is so devoutly religious
...
Many
Asian cultures emphasize relationships and context
...
Many oppose the move to a global perspective
because of concerns about the homogenizing of cultural differences
...
Countries in Southeast Asia have advertising codes
...
Malaysia requires that all ads be produced in the country, which cuts back
dramatically on the number of foreign ads seen by its public
...
The New York business day
overlaps for only 3 hours with the business day in London, for 2 hours with most of Europe,
and for I hour with Greece
...
Overnight parcel service is dependable
to most of Europe, and other regions, if the planes are able to take off and land
...
E-mail and fax numbers have become as universal
as telephone numbers on stationery and business cards in international companies
...
France and Spain virtually close down in August for
vacation
...
U
...
Corporation’s average l4 to l5 paid legal
holidays a year
...
Inertia, Resistance, Rejection, and Politics
Inertia, resistance, rejection and politics are sometimes lumped together as “not
invented here” situations
...
Every new campaign is a change
...
(Experience suggests that the success
rate in moving a winning campaign to another country is about 60 percent
...
This resistance is partially the result of a very
real problem in local offices of international agencies: an inability to develop a good creative
team or a strong creative reputation when most of the advertising emanating from the office
originates elsewhere
...
Standards may seem to be applied more strictly to international than to
163
national products
...
The best solution is to test two ads that are
both based on the global pattern advertising: a locally produced version of the advertising
and an original ad
...
If the locally produced advertising of the global strategy wins, the victory must be decisive
or the costs of the variation may not be affordable
...
At times the resistance and rejection are political
...
Trying to sell a U
...
campaign in a foreign
country can be difficult if relations between the two nations are strained
...
****
164
Lesson 4
...
Companies relied primarily on their advertising agencies for guidance in
nearly all areas of marketing communication
...
Public relations agencies were used to manage the organisation’s
publicity, image, and affairs with relevant publics on an ongoing basis but were not viewed
as integral participants in the marketing communication process
...
These companies failed to
recognize that the wide range of marketing and promotional tools must be coordinated to
communicate effectively and present a consistent image to target markets
...
An IMC campaign plan is even more complex than a traditional advertising
165
plan because it considers more message sources, more communication tools, and more
audiences
...
We can group these messages as planned (or controlled) messages by the company
and unplanned (or uncontrolled) messages
...
Definition
As defined by the American Association of Advertising Agencies, integrated
marketing communications “ a concept of marketing communication planning that
recognizes the added value of a comprehensive plan that evaluates the strategic roles of a
variety of communication disciplines – general advertising, direct response sales promotion,
and public relations — and combines these disciplines to provide clarity, consistency, and
maximum communications impact
...
➢➢
It can create competitive advantage, boost sales and profits, while saving money,
time and stress
...
The organisation simultaneously consolidates
its image, develops a dialogue and nurtures its relationship with customers
...
At its most basic level,
a unified message has more impact than a disjointed myriad of messages
...
➢➢
At another level, initial research suggests that images shared in advertising and direct
mail boost both advertising awareness and mail shot responses
...
and this reduces
their ‘misery of choice’ in a complex and busy world
...
This reduces
risk in the mind of the buyer which, in turn, shortens the search process and helps to
dictate the outcome of brand comparisons
...
Here, customer databases can identify precisely which customers
need what information when
...
➢➢
Finally, IMC saves money as it eliminates duplication in areas such as graphics and
photography since they can be shared and used in say, advertising, exhibitions and sales
literature
...
This
reduces workload and subsequent stress levels - one of the many benefits of IMC
...
However, the IMC approach recognizes that
other areas of the marketing mix too
...
The
cleanliness of the store and helpfulness of the customer service department send powerful
messages
...
IMC planners should consider all
message sources and marketing communications that reach stakeholder audiences
...
The different stakeholder audiences are as follows:
Corporate Level
➢➢
Employees
➢➢
Investors
167
➢➢
Financial Community
➢➢
Government Regulators
Marketing Level
➢➢
Consumers
➢➢
Target markets
➢➢
Retailers
➢➢
Distributors
➢➢
Competition
➢➢
Suppliers
➢➢
Vendors
Marketing Communication Level
➢➢
Consumers
➢➢
Target audiences
➢➢
Trade audiences
➢➢
Local community
➢➢
Media
➢➢
Interest groups
➢➢
Activist groups
➢➢
General Public
Why is IMC concerned with all these audiences? The support (or lack of it) that
each stakeholder group gives to the company can affect that company’s brands positively
or negatively
...
It works only if a company or brand has a focused
business philosophy or mission, clearly understood core values, and a strong corporate
culture
...
As IMC experts Don Schultz, Starley Tannenbaum, and Robert Lauterborn
explain, IMC realigns marketing communication “to look at it the way the consumer sees it
as a flow of information from indistinguishable sources
...
168
Coordination
Coordinating all these messages is an organizational problem best solved through
cross- functional management which means using teams of people who are from different
parts of the company, outside agencies, or both
...
Cross-functional management may even
mean getting different agencies together that are producing the marketing communication
...
A campaign results from a comprehensive plan for a series of different
but related marketing communication efforts that appear in different media and marketing
communication areas across a specified time period
...
It is short-term plans that
usually run for a year or less
...
In other words, they
are free-standing ad unrelated to ads that preceded or followed them
...
However, a great deal of national advertising is developed as part of a campaign with
an umbrella theme that extends across time, different stakeholder audiences, and different
advertising vehicles or marketing communication opportunities
...
A campaign plan summarizes the marketplace situation, the
underlying campaign strategy, the main creative strategies and tactics, media, and the other
marketing communication
...
I Situation Analysis
➢➢
Product and company research
➢➢
Consumer and stakeholder research
➢➢
Market analysis
➢➢
Competitive situation
➢➢
Industry analysis
➢➢
Marketplace analysis
169
II SWOT Analysis
➢➢
Internal factors: strengths and weaknesses
➢➢
External factors: opportunities and threats
➢➢
Problem identification
III Campaign Strategy
➢➢
Objectives
➢➢
Targeting
➢➢
Positioning
➢➢
Scheduling strategy
IV Communication Strategy
➢➢
Message development research
➢➢
The creative theme
➢➢
Creative tactics and executions
V
VI
VII
Media plan
Other Marketing communication activities
The appropriation and budget
Situation Analysis
The first step in campaign plans is a situation analysis that summarizes all the relevant
information available about the product, the company, the competitive environment,
the industry, and the consumers
...
The six most important
research areas are
➢➢
Product and company research,
➢➢
Consumer and stakeholder research
➢➢
Market analysis,
➢➢
Competitive analysis,
➢➢
Industry analysis, and
➢➢
Market place analysis
...
During the situation
analysis planners compile all the information they can about the brand and its competitive
situation, marketplace factors such as the health of the category, and the behavior of consumers
toward this brand and some recast this information in terms of internal factors (strengths
and weaknesses) and external factors (opportunities and threats)
...
In this stage, the key
areas on which the campaign strategy has to be built are identified
...
These problems differ from year to year and situation to situation
...
The next
year the marketing plan may focus on increasing distribution, so the advertising probably
address opening up new territories where the brand is unknown
...
Different audiences are
reached with different messages; different marketing communication tools may be used:
and different communication objectives are set
...
The strategy section of
a campaign plan identifies the objectives that will solve the key problems identified at the
end of the SWOT analysis
...
Other strategic
decisions revolve around the scheduling and timing of the different phases of the campaign
act
...
These objectives are established based on an understanding
the hierarchy of effects and the various ways advertising can affect its audience
...
These target audiences (that is, groups of people to whom a marketing
communication message is directed) shift with each campaign, its situation, key problems,
and objectives
...
However, if you are opening up new territory there aren’t
current users, so you will have to target competitors’ users
...
Positioning
Although objectives and targeting differ from campaign to campaign, the product’s
positioning remains the same
...
Scheduling
Timing and scheduling are an important part of the media plan and are also tied
into the over-all campaign strategy
...
In some cases, particularly with campaigns that continue
for a number of years, such as the classic “Milk Mustache” campaign, the campaign may be
launched with one strategy that evolves into another strategy as the campaign matures
...
The overall appropriation, or available money for the campaign, determines
the media
...
The media
mix is created by selecting the best combination of media vehicle traditional media, and
marketing communication tools to reach the targeted stakeholder audiences
...
If the problem is one of trial, Sales promotion may be the most important
tool
...
In fact, although there
may be a lead tool, such as advertising, often a mix of supporting media is used to reach
172
different stakeholder groups
...
In a high-reach campaign, money is spent to get the message to
as many people as possible
...
The media plan
includes media objectives (reach and frequency), media strategies (targeting, continuity,
and timing), media selection (the specific vehicles), geographic strategies, schedules, and
the media budget
...
Other Marketing Communication Activities
The decision about which tools to use is based on an analysis of the strengths and
weaknesses of the various marketing communication tools
...
In other words, which area can best
reach a mass audience (advertising), involve an audience (events), or build credibility and
believability (public relations)? This is a process called zero-based planning
...
A
competitive sales campaign targeted business owners and managers during competitors’
sales canvassing periods
...
Some sense of the amount of money that has been appropriated for the campaign
is used at the beginning of the planning to determine the general scope and scale of the
campaign effort
...
If this budget is much higher than the appropriation,
either costs have to be shaved or the appropriation has to increase
...
If you are
working on a campaign for a major marketer, you may have plenty of money {or the most
expensive form of television advertising
...
Once
the appropriation is set, the money can be allocated among the various advertising and
marketing communication activities
...
The key part of an evaluation plan is to measure a company or brand’s
173
effectiveness against its stated objectives
...
This information is concerned with questions of effectiveness: Is the campaign
working? What were the results? It is also concerned with questions of taste and judgment
...
An IMC campaign plan is even more complex than a traditional advertising
plan because it considers more message sources, more communication tools, and more
audiences
...
Self Assessment Questions
1
...
What are the different methods available for the testing of advertising effectiveness
3
...
What are the different tools of IMC? Explain in detail
...
The
advertising agency was approached by the Indian representative requesting them to do a
communication programme, whereby public awareness of the company would be increased
...
The campaign conceived by the agency was a self-generating programme
...
The organizations
were informed that all the donations will be pooled and the desired form of communication
programme will be worked out depending on the amount of collections received
...
Additionally, known publications like India
Today, Reader’s Digest and Business India offered free pages in their magazines
...
By informing the public and making them aware of the atrocities
committed on these animals and by suggesting to them that man-made alternatives are
available, a degree of success in changing public opinion was achieved
...
One Organisation, which
prefers to remain anonymous, offered to release a series of six advertisements once in The
Times of India, equivalent to donation of ` 1,40,000
...
Evolve a plan for effective advertising for the above mentioned campaign through
othe media vehicles
...
Do you think the above mentioned campaign will be satisfactory in poor countries
which are conditioned to resource constraints, and if so how would you develop
another campaign under conditions of shortcomings in resources and communication
...
1 – Sales Promotion
Lesson 5
...
3 – Brand Equity
Lesson 5
...
1 - Sales Promotion
Learning Objectives
After reading this lesson, you should be able to:
➢➢
Understand the and concept meaning of sale promotion
➢➢
To examine the various objectives of sales promotion
➢➢
Familiarize with the types of sales promotion tools
➢➢
Differentiate between advertising and sales promotion
➢➢
Define Sales Force Promotion
Concept of Sales Promotion
Promotion is a key part of marketing programme and is concerned with efficiently
and effectively communicating the decisions of marketing strategy to target audiences
...
Promotion is targeted to the target audiences
...
The ultimate goal is to sell the product or service to consumers who have a need
of it
...
The components
of promotion mix are as follows:
1
...
Personal selling
3
...
Publicity
5
...
These efforts can attempt to stimulate product
interest, trial, or purchase
...
Instead, marketers have learned that to meet promotional method in conjunction with
advertising
...
g
...
g
...
For these marketers better results
may be obtained using other promotional approaches and may lead to directing all their
promotional spending to non-advertising promotions
...
178
What is Sales Promotion?
Sales promotion describes promotional methods using special short-term
techniques to persuade members of a target market to respond or undertake certain activity
...
g
...
g
...
Sales promotions are often confused with advertising
...
While the delivery of the marketer’s message through
television media is certainly labeled as advertising, what is contained in the message, namely
the contest, is considered a sales promotion
...
Whether the promotion involves a short-term value proposition (e
...
, the contest
only offered for a limited period of time), and
2
...
g
...
The inclusion of a timing constraint and an activity requirement are hallmark of
sales promotion
...
One estimate by the promotion Marketing Association suggests that in
the US alone spending on sales promotion exceeds that of advertising
...
The major differences between
Advertising and Sales Promotion are:
179
Advertising
Sales Promotion
(i) A reason is offered to buy
...
(iii) A
im is to
Consumers
...
Effective in the short run
...
(vii) Advertising
includes
messages Various types of incentives are offered for
delivered through various types of
➢➢
Consumer promotion
Media
...
Additionally, as part of
the effort to build product awareness, several sales promotion techniques possess the
added advantage of capturing customer information gathering tool (i
...
, sales lead
generation), which can then be used as part of follow-up marketing efforts
...
In fact, creating interest is often considered the most important
180
use of sales promotion
...
Internet marketers can use
similar approaches to bolster the number of website visitors
...
Several sales
promotion techniques offer the opportunity for customer try products for free or at
low cost
...
However,
some sales promotions do offer customers access to product information
...
This free access may include receiving product information via
...
Special promotions, especially those that lower the cost of ownership to
the customer (e
...
, price reduction), can be employed to stimulate sales
...
Many companies, including airlines and retail stores, reward good or
“preferred” customers with special promotions such as e-mail “special deals” and
surprise price reductions at the cash register
...
sales promotion refers to many kinds of incentives and
techniques directed toward consumers and traders with the intention to create an immediate
sales effects
...
There is a wide spectrum of views and different experts have defined sales
promotion in different ways
...
Roger A
...
”
According to Philip Kotler
“Sales promotion consists of a diverse collection of incentive tools, mostly shortterm, designed to stimulate quicker and/or greater purchase of particular product/services
by consumers or the trade”
Sales promotion defined by Kazmi and Batra as
“Sales promotion includes incentive offers and interest creating activities which are
generally short term marketing events other than advertising, personal selling, publicity and
direct marketing
...
”
Types of Sale Promotion
Promotion may be broadly classified either immediate or delayed
...
Immediate reward promotions include
such things as price reduction, bonus packs, and coupons
...
Delayed reward
promotions include such things as sweepstakes, rebate offers, and frequent flyer programmes
...
There are three fundamental
types of promotion: consumer promotion, retail promotion and trade promotion
...
Finally retailers use promotions to clear their inventory of slow
moving, out of season, or shelf-unstable products
...
182
Consumer Oriented Promotions
Consumer will not make a distinction between trade promotions delivered at retail
outlets, retail promotions, and consumer promotions
...
But, from the brand’s perspective, there is a
world of difference
...
As it happens, consumers tend to have a pretty good idea about how often brands are
promoted
...
so, even
if you donot have control over retail promotions that includes your brand, it is essential that
you have knowledge in your promotion strategy
...
Six basic consumer promotions
Coupons
Are low cost, and the most common form of promotion
Refund and Offers large price discounts, usually with more expensive products
rebates
Sampling
Provides an opportunity to try or use brand at little or no cost
Loyalty
Encourages repeat purchase
Sweepstakes
Helps create excitement and reinforce brand image at a relatively low cost
Premiums
Helps facilitate purchase by offering reward or bonus
Coupons
A coupon is a price reduction offer to a consumer
...
Coupons can be of various
kinds, each with a specific objective
...
Some coupons are offered after a purchase has taken
place for a repeat purchase
...
Refunds and Rebates
This scheme offers 100% refund in case of dissatisfaction after a purchase
...
This ensures
183
that the shopper returns for the second purchase to avail of the rebate
...
Sampling
Giving people free samples or trial pack is another promotional technique and is
an excellent way to get consumers to try a product
...
It is
commonly used in the case of fast moving consumer goods such as detergent, soft drinks,
confectionaries etc
...
These
samples are distributed either at the residence of the consumer or even at the retail outlet
...
Loyalty Programmes
Loyalty programmes are initiated by companies to express their bond with loyal
customers
...
Indian Airlines have
loyalty programme ‘frequent flier’ offer for those flier who continuously purchase Indian
Airlines tickets
...
These are run to create an excitement amongst the target
segment
...
Contests are normally advertised extensively and test
more often than not the knowledge of the consumer on the product or some other skill
...
” or it could involve developing a slogan
...
Getting an fairness cream along with face wash could work as an attractive
premium for women, or a hair conditioner with shampoo
...
In case, the prospect
is required to send proof of the purchase to receive the gift
...
Many magazines have subscription schemes that offer various
premiums such as pen sets, sun glasses, planners, etc
...
The old price is crossed out and the discounted price
stamped in to assure the customer of the value transfer on purchase
...
Price-ofs are generally announced
with end-of-season sales, specially at places that experience strong variation between
winters and summers for instance
...
Displays and Point-of-Purchase Material:
Point of purchase (POP) displays are an important promotional tool because they
can help a manufacturer obtain more effective in store merchandising of products
...
In fact, some studies estimate that nearly two-thirds of
consumer’s buying decisions are made in retail store
...
185
Many companies run display contest in order to get good exposure for their products,
particularly during the seasonal period, Dealers are expected to buy a a minimum quantity
of stock during the display period and display them prominently in the show windows of
the shop and in other prominent places
...
Point-of-sale material: Trades are given attractive point-of-sale material for displaying
the company’s product
...
Cooperative Advertising
The final form of trade-oriented promotion we examine is cooperative advertising,
which involves the sharing of cost of local advertising by the dealer and the company
...
The most common form of cooperative advertising is the trade-oriented form,
vertical advertising, in which a manufacturer pays for a portion of the advertising a retailer
runs to promote the manufacturer’s product and its availability in the retailer’s place of
business
...
Trade Oriented Promotions
Trader promotion takes up a significant proportion of most marketing communication
budgets
...
Trade promotions are those that a company runs to
elicit better and quicker response from the trade
...
to ensure enhanced stocking proceeding a good season, or to block a competition
...
Trade promotion is designed to improve relations with the trade in order to gain
and hold new distribution, to build inventory with the trade, or to obtain trade cooperation
and merchandising support
...
➢➢
Display material promotions are when the manufacturer actually provides special
display material to be used in featuring the brand, often in conjuction with a trade
allowance
...
Allowance Promotion
The type of allowance offered to the trade can take many forms: everything from
reduced prices across the board, to reduce prices according to purchase volume, to free
goods
...
Such companies encourage the trade to stock their product on an “onconsignment” basis and pay only when the products move off the shelves
...
Dealer Contests
This is normally linked to the amount of merchandise the dealer purchases
...
Dealer Gifts
Some companies regularly give gifts to their dealers to maintain good relations with
them
...
187
Shop Board Painting
Some companies such as the Samsung provide attractive signage for shops which
could either be printed or made of acrylic material
...
”
Trade fair participation: Sometimes companies fund partly or fully the participation
of their exclusive dealers to trade meets such as the Inside Outside Fair, in India International
Trade Fair, etc
...
Dealer Meets
Some companies organize regular dealers meet at exotic locations within or outside
the country
...
These dealer meets recognize star performers through awards and also set target for the
coming year
...
Perhaps the primary use of display promotions is to help reinforce
consumer promotions, although they also play an important role in the introduction of new
products and line extensions
...
Good display material leads to
better attention, especially important for brands driven by recognition awareness
...
The display material must be
consistent with consumer promotion and advertising, with the same ‘look and feel’, in order
to heighten recognition at the point of purchase
...
The use of display
promotion has the advantage of generally being implemented quickly when needed, and
the ability to support consumer promotion and advertising at the point of purchase
...
Unlike trade allowances or trade premium and incentives
...
Trade Incentives
Various Marketing Objectives and Suitable Consumer Promotions
Promotions
Immediate
value
Retain/load
consumers
Induce product trial
Build brand
equity
➢➢
product sampling
➢➢
Price-off deals
➢➢
Events
➢➢
Coupons
➢➢
Bonus packs
➢➢
In-store rebates
➢➢
In-pack, on-pack
premiums
➢➢
In-pack or
on-pack
premiums
➢➢
Loyalty
programmes
Delayed
value
➢➢
Mail or media
distributed coupons
➢➢
In-pack or onpack coupons
➢➢
Self liquidating
premiums
➢➢
Mail-in rebates
➢➢
Mail –in rebates
➢➢
Free in-mail
➢➢
Free in-mail premiums
➢➢
Loyalty
programmes
➢➢
Contests and
sweepstakes
➢➢
Internet delivered
coupons
Sales Force Promotion
Sales force promotion normally undertaken to stimulate the sales force to better
performance
...
In some product categories it can also be part of pull strategy
...
The consumer, in this case the patient, does not have any say in the product that the
consumers, except perhaps in the case of an over-the-counter product
...
So he not
only has to pull the product at the doctor level but also push the product at the trade level
...
189
There are several ways for motivating the field force
...
Performance bonuses are awarded for sales over the target
...
Star Awards
Many companies recognize their start performers and reward them handsomely
...
Some companies have
functions where even the spouses of the star are invited for a company paid holiday
...
for their sales force
...
This acts as a tremendous motivational pill for these young salesmen
...
Local ad Budgets
Some companies delegate advertising budgets to their sales staff
...
They also get budgets for local trad4e fairs, sampling, merchandising etc
...
Pharmaceutical
companies provide their representatives with attractive leather bags and ties, FMCG
companies provide them with T-shirts, caps etc
...
Such promotion can bring in more profits for the manufacturer because they permit price
discrimination
...
Price discrimination: Producers can introduce price discrimination through sales
promotion
...
Coupons, special sales events, clearance
sales and discount are examples of it
...
Effect on consumer behavior: As sales promotion are mostly announced for a short
period, customers may feel a sense of urgency and stop comparing the alternatives
...
For many customers, who feel
time-pressured, buying on deal is a simple decision rule and many consumers may
also consider buying on deal as smart move
...
Sales promotional deals, such as discounts, rebates, coupons, or premiums etc
...
Consumers, who
buy on promotional deals, consider themselves as intelligent and smart shoppers
...
Effect on Trade Behaviour: Short-term promotions present an opportunity and
encourage dealers to forward-buy
...
As dealers have more than normal stocks, they think it advisable to
advertise in local media, arrange display and offer attractive promotional deals to
consumers
...
The aim is to speed-up
the consumer purchasing from their outlet
...
More
customers get exposed faster to new product introductions and retailers perceive less
risk in stocking the new products
...
Drawbacks
There are certain limitations of sales promotion and they may also produce negative effects
...
In fact, a
191
promotion may speed-up the killing of a bad product
...
1
...
This is especially true in case of low-involvement
category products, or where there is little or no significance differentiation among
brands and the unit value is low
...
There is agreement among most managers
that sales promotion expenditure have decreasing effect on brand-image and this
lead to decreasing brand loyalty
2
...
Consumers wait for the promotional deals to be announced and then purchase the
product
...
3
...
Consumers may
start suspecting that perhaps the product has not being selling well, the quality of
the product is low compared to the price, or the product is likely to be discontinued
because it has become out dated
...
Merchandising support from dealers is doubtful: One of the trade promotion tools
is to offer promotional allowances to trade people to motivate them to provide
merchandising support and to pass on some benefit to consumers
...
In many cases the dealers
do not cooperate in providing the merchandising support, nor do they pass on any
benefit to consumers and in this practice India is no exception
...
Short-term orientation: Sales promotions are generally for a short duration
...
This short-term orientation may sometimes
have negative effect on long-term future of the organization
...
It includes
several communications activities that attempt to provide added value or incentives to
consumers, wholesalers, retailers, or other organizational customers to stimulate immediate
sales
...
The difference between sales
promotion and advertising is that, advertising is a message which promotes ideas, good
or services communicated through one or more media by an identified sponsor while
sales promotion consists of short –terms incentives provided by the identified sponsors to
consumers and traders to persuade them to purchase and stock his products
...
Such promotion can
bring in more profits for the manufacturer because they permit price discrimination
...
****
193
Lesson 5
...
Sales promotion strategy involves identification of objectives, effective communication
for attracting attention, allocation of budget, determining the correct promotional mix,
introduction of strategic approach and finally evaluation
...
Objectives
The marketer should determine his sales promotion objectives
...
Sales promotion
tasks should be objectives oriented
...
The sales manager should inform consumers about his
product and should highlight its special features
...
Sales Promotion a Communication Tool
Sales promotion should attract the attention of the target audience
...
A point to be noted here is that the audience
evaluates not only the message but also the source of the message in terms of its credibility
...
The sales manager determines the message to be aimed at the target market to gain
product acceptance
...
Identifying the target audience is the main task of a sales promotion
communication
...
Medium of Reach
Sales promotion may adopt different methods for approaching people
...
Consumer promotion has been considered a very effective mode of sales promotion;
potential consumers are offered samples, coupons, etc; to promote sales
...
Retailers rely on in-store
displays to familiarize customers with their product
...
Trade promotion through buying allowance, free goods, merchandise allowances, push
money etc; help to enhance sales by retailers and traders
...
It may carry selling messages and
information about the product
...
It is a proper of blend of colour, design and shape
...
Business users or Households
Middlemen and their Sales Forces
Coupons
Free goods
Cash rebates
Advertising allowances
Premiums (Gifts)
Contests for sales people
Free samples
Product demonstrations
Contests
Trade shows
Point of purchase displays
Exhibitions
Product demonstrations
Advertising specialties
Trade shows and exhibitions
Point-of-purchase displays
Advertising specialties
Training sales forces
195
Methods of Budget Allocation
One of the most difficult marketing decisions facing companies is how much to
spend on promotion
...
It is important to determine sales promotion budgets
before resorting to sales promotion activities
...
Sales promotion budgets should be adequate
so that they achieve the promotion objective
...
This method of setting budgets completely ignores the role of promotion as an investment
and the immediate impact of promotion on sales volume
...
➢➢
Percentage of Sales Method
Many companies set their promotion expenditures at a specified percentage of sales
or of the sales price
...
A number of advantages are claimed for this method
...
(ii) T
his method encourages management to think in terms of the relationship between
promotion cost, selling price and profit per unit
...
It also does not encourage building up the promotion budget by determining
what each product and territory deserves
...
Two arguments are advanced for this method
...
The other is that maintaining
a competitive parity helps prevent promotion wars
...
Company reputations, resources,
opportunities, and objectives differ so much that their promotion budgets are hardly a guide
...
➢➢
Objective-and-Task-Method
The objective-and-task method calls upon marketers to develop their promotion
budgets by defining their specific objectives, determining the tasks that must be performed
to achieve these objectives and estimating the costs of performing these tasks
...
Promotional Mix
Companies face the task of distributing the total promotion budget over the four
promotion tools of advertising, sales promotion, publicity and sales force
...
Companies are always searching for ways to gain efficiency by substituting one promotional
tool for another as its economics become more favourable
...
Other companies have
increased their sales promotion expenditures in relation to advertising, to gain quicker sales
...
Many firms have increased their sales with the application
of appropriate combinations of the promotion media; sales promotion and personal selling
are supported with publicity
...
It
should be clearly decided how fare a particular element should be used in combination with
other promotional methods
...
Generally speaking a particular combination, type or amount of sales promotion, personal
selling, publicity and advertising are brought in to the promotional mix, which becomes
the promotional strategy in the course of implementation
...
The strategies, sustaining promotional strategy, developmental promotional strategy or
promotional appropriation
...
The push
strategy concentrates on middlemen or retailers who push the sale of the product to the final
consumers
...
The pull strategy is directed toward the final buyers
...
Sales promotion, particularly customer promotion, is an important form
of the pull strategy
...
The push strategy asks the sellers or retailers to attract the layers
...
Trade promotions refers to buying allowances,
free goods, co-operative advertising, push money, sales contests and so on
...
➢➢
Features of Pull Strategy
Pull strategies depend upon mass communication
...
In a pull strategy,
the product is pulled through the channel by creating end- user demand
...
In turn, retailers demand the highly
advertised product from wholesalers
...
Personal salesmanship plays a
secondary role in pull promotion
...
Dealer margins
are also lower in pull promotion
...
Also in the sale of medical products and in life insurance, marketers
have to employ a lot of salesmen to call on physicians and prospects for life insurance
...
In this, after – sale service is also important and marketers rely on selective
distribution
...
We have a high quality product with unique selling points
...
Where we have a high priced product
...
We can offer adequate incentives (financial) to middlemen and their salesmen
...
The ratio of pull to push may differ according to the
requirements of market situation
...
Thus, all tools of promotion work together
...
Sales promotion becomes
necessary to sustain a market share
...
Unless
appropriate steps are taken, the marketer may find that the market may be slipping away
for, to his product
...
That is, the market share should not decline after a higher level of sale has been
attained
...
Sales force
promotion by way of bonus and other incentives many contain the market from slipping
away
...
Brand
loyalty of customers is fostered and reinforced
...
Innovators
need to have a developmental strategy
...
The new consumers are
given effective after- sales service
...
The promotional mix for a brand not yet popular may require emphasis on both
personal selling and sales promotion
...
The forms of
promotion, the costs of each component of promotion, the activities to be performed
and appropriation on personal selling, sales promotion, advertising and publicity are
determined under this strategic
...
The marketing manager has to arrive at the
optimum promotional mix of the given objectives
...
Product attributes, brand differentiation, purchase frequency,
the nature of the market, the size of market and its location, the nature of prospective
buyers, their purchase frequency, distribution and price strategies are evaluated before the
formulation of an appropriate sales promotion strategy
...
Tie-in promotions
Financing incentives
Special events
Premiums
Bonus packs
Exchanging offers
Evaluation of Sales Promotional Strategy
Sales promotional strategies should be evaluated twice
...
Implementation control covers initial
planning, objectives, promotional packages, and printing of special premiums and packaging
200
materials, distribution to retailers, etc
...
Many manufacturers believe only in performance
control
...
Consumer surveys and
consumer experiments are used to evaluation techniques show how far the sales promotion
techniques have been effective in increasing sales through motivating consumers and sellers,
and point the way to improvement in sales promotion
...
In the introduction stage, advertising and publicity have high cost effeteness,
followed by sales promotional to induce trial and personal selling to gain distribution
coverage
...
In the maternity stage, sales promotion, advertising
and personal selling all become more important in that order
...
Cross Promotion
Under this sales promotion strategy, the manufacturer may use all the potential tools
such as advertisement, personal selling and sales promotion to hit the market simultaneously
so that the buyer will be induced to buy a product
...
This promotional strategy in called cross promotion
...
This strategy is called surrogate selling
...
But they find it difficult in selling the product in the
market
...
They have in fact act as a surrogate in
selling their merchandise in the market
...
Under this strategy, the
marketing manager use AIDA formula to tempt someone to look the advertisement and
influence him to buy a product
...
This way of tempting the viewer to opt for
BSNL is called Bait advertising
...
Switch advertising means when an advertisement is released, it
should ignite the minds of the buyer to notice the advertisement and take a decision to buy
the product
...
So he has put this in the local newspaperwhich would have ignited the minds of the buyers
...
This strategy is called switch advertising strategy
...
Sales promotion strategy involves identification of objectives, effective communication
for attracting attention, allocation of budget, determining the correct promotional mix,
introduction of strategic approach and finally evaluation
...
If the prices, discounts, off season facilities etc, are not
adequately and effectively communicated, the effort of sales promotion would be wasted
...
3 - Brand Equity
Learning Objectives
After reading this lesson, you should be able to:
➢➢
Define brand equity;
➢➢
Understand concept of brand equity
➢➢
Appreciate the methods of measuring brand equity
➢➢
Understand how to manage portfolio brand
Introduction
A brand is a name, term, sign, symbol, or design, or a combination of them
intended to identify the goods or services of one seller from among a group of sellers and
to differentiate them from those of the competitors
...
Under trademark law the seller is granted exclusive rights to the use of the
brand name in perpetuity
...
If a company treats a brand only as a name, it misses the point of branding
...
Perhaps the most
distinctive skill of professional marketers is their ability to create, maintain, protect, and
enhance brands
...
The term means
different things for different companies and products
...
From the following examples it
is clear that brand equity is multi-dimensional
...
But ultimately,
203
it is the consumer that is the most critical component in defining brand equity
...
In other words, brand equity represents the degree to which a
brand’s name alone contributes value to the offering (again, from the perspective of the
consumer)
...
”
Biel (1922) defines ‘Brand equity can be thought of as the additional cash flow
achieved by associating a brand with the underlying product or services’
...
David Aker defines brand equity as ‘a set of assets and liabilities linked to a brand,
its name and symbol that add to or subtract from the value provided by a product or service
to a firm and or to the firm’s competitors’
...
Brand Equity an Overview
A brands’ assets can be categorized in five groups, are as below:
1
...
Brand name awareness
3
...
Brand association in addition to the perceived quality
5
...
2
204
Perceived
Quality
Name
Brand
Awareness
Association
Brand
Brand
Equity
Loyalty
Other Proprietary
Brand Assets
Provide
Value to customer
Provide Value to Firm
By Enhancing Customer’s:
by Enhancing:
• Interpretation
• Effectiveness of
Processing of
Marketing Program
Information
• Price/ Margin
• Confidence in the
• Brand Extension
Purchase Decision
• Brand Loyalty
• Use
Satisfaction
• Trade leverage
• Competitive Advantage
Brand Equity: an overview
From David A
...
This valuation is used for buying and selling of firms
...
In fact, lately, some firms are talking of including their brand’s value in their
balance sheets
...
Brand Loyalty
The starting point of understanding equity is the extent to which a brand enjoys
customer loyalty
...
205
For example, a house wife who repeatedly buys brand X detergent powder may not necessarily
be loyal to it
...
Many a time such repeat purchases are mistaken for brand loyalty
...
In other words, will the customer go to another shop and ask for
it or will he or she leave with substitute being offered by the shopkeeper or vendor? If the
customer is indifferent to the brand and buys for feature, price, or convenience, there is
little equity in the brand
...
It is the ability of
a potential buyer to recognize or recall that a brand is part of a product category
...
Brand awareness has to be
thought of as ‘a continuous range from an uncertain feeling that a brand is recognized to a
belief that it is the only one in the product classes’
...
This is the most desired condition that any marketer seeks
...
Brand
recognition is the third and, perhaps, lowest level
...
This is important in the
point of purchase
...
For, if the brand is perceived to be of premium quality, the customer will
be willing to pay a premium for it
...
A high quality brand
also provides an adequate reason for the customer to buy it
...
Perceived quality is how customers evaluate different brands on quality and hence
need not be as objective as the other two are
...
206
Brand Association
Invariably all brands come to acquire a meaning in the mind of customers associating
different dimensions of the product, including its use and use situations, to the brands
...
Thus a jingle like’ Happy days are here again’ has been associated in the customer’s
mind with Thums Up
...
It is important, to not only know the association that exists
with a brand, but also know the strength of these associations
...
It is important to know how strong this association is and for a
family name like this, which are the products with which this association is the strongest
...
This should
generally support the positioning platform which the marketer has taken
...
Other Proprietary Assets
Other proprietary assets of a brand include its name, patent, channel relationship, and
so on
...
Developing exclusive relationships, dealer councils, and rewarding higher
performing dealers are some of the ways, by which these relationships can be strengthened
...
In deciding for against it, the marketer should consider whether the new product
will enhance the core brand’s equity and whether the brand name aids the extension process
...
A marketer needs to be careful to avoid such a crisis,
when developing his new product decision
...
Its emergence, however, has meant both good and bad news to
marketer
...
The
207
bad news is that, confusingly, the concept has been defined a number of different ways for
different purposes
...
Fundamentally, branding is all about endowing products and services with the power
of brand equity
...
That is, brand equity explains why different customer result from the marketing of a
branded product or service than if it were non branded
...
Most marketing observers also agree with
the following basic principles of branding and brand equity
➢➢
Differences in outcomes arise from the “added value” endowed to a product as a
result of past marketing activity for the brand
...
➢➢
Brand equity provides a common denominator for interpreting marketing strategies
and assessing the value of the brand
...
...
The monitoring of this parameter elucidates the success of
the brand in the market place and is believed to be a crucial step in the effective management
of brand (Aaker 1992)
Measuring brand equity helps us in the following ways (Whitwell 2004)
➢➢
If we know the value of the brand, it is easier to accurately set royalty rates and
transfer prices
...
➢➢
It helps the management effectively measure the return on investment (ROI)
208
➢➢
The brand valuation process helps throw light on a number of factors such as the
performance of a brand relative to the competition; it is also helps identify the
strength and weaknesses of the brand, and the various opportunities in the market,
and the opinion of the customers
...
Methods to Measure Brand Equity
Brand equity consists of two components—brand strength and brand value—and
to understand how customers evaluate brand equity, we need to have an understanding of
both these components (Lassar, Mittal and Sharma 1995)
...
1995; Sinha, Ashill, and Gazley 2008);
➢➢
Brand value of financial performance: Brand value is the financial gain accrued as
a result of leveraging the brand strength
...
This includes sector and regional analysis and the
profitability of all its business units
...
, and regional analysis
includes the performance of the product category in a particular region
...
➢➢
Brand Strength or customer based measures: Brand strength is the brand association
in the minds of customers
...
As the study of the
strength of the brand is done from the point of view of consumers, it can also be
termed as customer based measures
...
This is
of particular relevance at the time of mergers and amalgamations
...
2008)
...
209
Cost-Based Valuation
The value of brand is calculated on ‘the basis of what is actually cost to create or what
it might theoretically cost to recreate’ the brand
...
‘ (Tremblay 2008)
are taken into account
...
Market-Based Valuation
If information regarding ‘market transactions involving comparable brands is
unavailable, it is possible to estimate one brand’s value by comparing with another brand,
‘ This method is rarely used, as such data is scarce and due to the fact that each brand is
unique and it will be difficult to compare brands
...
This is estimated by calculating the sales likely to occur in the future
and ‘then applying an appropriate rate to arrive at the income attributable to the brand
royalties in the future years
...
’ This method is widely used in India, as it is favoured
by the fiscal and tax authorities and the courts, because the calculation is based on publicity
available marketing and financial information (Economic Times 2007)
Economic-Use Method
This method ‘takes into account the economic value of the brand to the current
owner in its current use
...
This is measured by calculating the increase in gross profit
due to selling a branded product versus selling an unbranded product
...
For example,
promotional and positioning strategies can be evaluated by customer-based measures and
210
this evaluation can help managers build sound long-term health of their brand (Sinha etal
...
The two models that have been widely used to measure brand equity are as follows:
➢➢
Brand Asset Valuator
➢➢
Aaker Model
Brand Asset Valuator Model
Young and Rubicam, an advertising agency, based on their research with more than
20,000 consumers in 40 countries, developed the Brand Asset Valuator (BAV) Model (Kotler
and Keller 2005; Keller 2008)
...
It
highlights the distinctive feelings that consumers develop for a brand and translates
these feelings into the customer’s choice, preference, and ultimately loyalty
...
The more the brand appeals to
the customer, the greater the household penetration
...
➢➢
Esteem’ measures how well the brand is regarded and respected, by the consumers
...
Aaker Model
Aaker (1996) came out with a set of measures to evaluate the performance of brands
in a company’s portfolio
...
are short term and do not provide an accurate basis for investments into building brands
...
The measures should
not focus on tactical strategies like advertising expenditure levels, but on the sustainable
advantage that cannot be easily copied by the competitors
...
The constructs
that truly drive the market and influence the price levels should be considered, as they drive
the future sales of the brand, and hence the profit
...
Be applicable across and product categories and markets Standard measures make
it easier to evaluate brands across product categories and different sets do not have to be
worked out each time
...
Building and using Brand Equity
In the minds of many consumers, just having the brand name such as Sony, or
Hallmark adds value to a product
...
What we’re talking about is brand equity, which is
the value a brand adds to a product
...
In fact, only four brands – Tata, Hyundai, Maruthi and Ford – were on the high lists
of brands
...
Brands are considered very important assets for a company
...
Another method, developed by the inter brand consulting firm, considers the
worth of a particular brand to be the present value of future profits that will be derived from
products carrying that brand
...
The topranked brand from outside the US is Nokia of Finland
...
In one study, the proportion of subjects choosing corn flakes cereal
jumped from 47% when the brand was not known to 59% when the brand was identified as
Kellogg’s
...
Brands commanding a premium included IBM, Compaq,
Hewlett – Packard and Dell
...
We tend to think of brand equity as a positive aspect of a product
...
In such a situation, a brand adds nothing
or even detracts from the perceived ability of a product to do what it is supposed to do
...
Not surprisingly, picker is now
struggling to survive
...
Therefore, in the minds of
many air travelers, the TWA airlines brand had negative equity
...
Building a brand’s equity consists of developing a favourable, memorable and
consistent image – no easy task
...
However, it substantial brand equity can be achieved, the organisations that owns
the brand can benefit in several ways:
➢➢
The brand itself can become an edge over competition what we call a differential
advantage, influencing consumers to buy a particular product
...
➢➢
Because it is expensive and time consuming to build, brand equity creates a barrier
for companies that want to enter the market with a similar product
...
➢➢
Brand equity can help a product survive changes in the operating environment, such
as a business crisis or a shift in consumer tastes
...
The rationale for using an existing, strong brand name on a new item or line is that the
brand’s equity will convey a favorable impression of the product and increase the likelihood
that consumers will at least try it
...
Procter and gamble decided its hugely successful Pepsodent name
could be used on different kinds of toothpaste but not on other product categories such as
mouthwash
...
For example, Levis tailored men’s clothing and stop and shop of Chennai
brand did not pass the test of continuing consumer acceptance
...
Each brand needs to be managed separately, but they also need to be
managed together to avoid sub optimization
...
If each brand appeals to a
completely separate segment from all others, there is no problem
...
Careful segmentation and positioning are the usual approach, and with constant
refinement they can work well
...
e
...
e
...
The main brand should occupy the centre of the defined market, in the segment
containing the most consumers
...
If the central position is already occupied by a very strong
competitor, it may not take sense to attack it head on, but to use flanking brands as the main
assault
...
This means
developing a strategy for the category as a whole rather than for individual brands separately
and may include own label products packed for retailers
...
This should make any company suspicious and
214
indeed one of the dangers of category management is that, in the short term, it is usually
easier to maintain or increase sales by meeting retailers’ demands than by concentrating on
owned brands
...
Unless this tendency is
resisted, the brands will gradually decline
...
****
215
Lesson 5
...
Nevertheless, while a brand’s
marketing communication profits from using advertising and promotion together, for most
brands traditional advertising will almost always be more important
...
This may seems
surprising given the fact that traditional advertising receives only about one-third of all
marketing communication spending
...
What makes using advertising and sales promotion together so strong in the
interaction between the long-term effects of brand attitude on building brand equity, and the
tactical advantages of promotion
...
When advertising has been effective in generating a strong brand attitude, all the
brands uses of promotion become that much more effective
...
The logic here is straightforward
...
Additionally, a promotion in that light will also tend to reinforce consumers’
already holds positive attitude
...
Advertising has been seen as one of the primary tools of
brand building
...
Do all Brands Need Advertising?
The basic assumption is that brands need advertising but some strong brands
apparently do not
...
The body focus seems to have built up a distinct brand
personality without heavy advertising
...
It is extremely difficult to adjust brand reputations without controlled
communications
...
There are niche brands that have
built up a reputation by word of mouth, or by making sure that they were newsworthy
...
We can safely make three statements about brand communication:
➢➢
Every brand must have some means of communicating with its buyers
...
➢➢
Many other methods of communication are available, and can be used to gear up and
multiply the effects of advertising
...
217
➢➢
All the means of communication and the messages transmitted must be cocoordinated to make sense, confused consumers don’t buy
...
Sadly, most of these are
based on myth and personal experience rather than hard, scientific evidence
...
Any firm that really wishes to find out how
advertising works for them must commit itself to the same sort of long-term experimentation,
data collection and model building that the organisations have
...
Advertising elasticity’s – that is the measure of how sales changes in response to
a change in advertising spend – is low
...
The findings show that:
➢➢
In two-thirds of campaigns for existing brands and almost half those for new brands,
the advertising does not significantly affect sales and
➢➢
Short term advertising elasticity’s can be measured but they are likely to be very
small
...
Long term effects may last two or three years after the initial campaign, so where
advertising does produce a sales effect, its profitability should be measured over that period
...
There is a Price Paradise
The standard model of advertising and the brand suggests that a strong brand is
less sensitive to price than a weaker one
...
In other words, a seemingly successful campaign has
made buyers more sensitive to price, where as we would expect our brand buyers to be, if
anything, less sensitive
...
First it can
induce consumers to try a product; because trial is hugely important in producing market
share, anything that increases it is invaluable
...
It is then up to the performance of the product itself – and
the subsequent actions of the rest of the marketing mix – to persuade that buyer to continue
buying
...
In any crowded market place, you need to stand
out
...
Finally promotions can produce a trade push; if advertising produces consumer pull, the
trade promotion ought to produce channel push i
...
pushing products into the distribution
chain and relying on the channel members to sell them on
...
Constant
promotion may devalue the brand, sending almost the opposite message to the one you
want to send
...
In order to start the advertising plan, we need some background –
which is not a very formal restrictive planning, but for a process of thinking through what
the advertising and promotion are trying to achieve
...
➢➢
A situation analysis (where we are and why)
➢➢
Objectives (what the brand is aiming for in sales, share and other targets)
➢➢
Positioning (how the brand is positioned in the consumer’s mind, and how we wish
to change this);
➢➢
Strategy (how the brand is going to compete in this market)
➢➢
Advertising strategy (what role advertising has within the overall strategy) and
➢➢
Budget (what moneys are available to spend on advertising promotion)
...
They may of course
also include shorter-term tasks such as announcing a new variation or promotion
...
Irrelevant
promotions may harm the brand
...
Promotions agencies are very
good at coming up with ideas, as are advertising agencies, but the ideas must contribute to,
and express, the brand’s values
...
Consider Coleman,
the long-time maker of camping equipment
...
After considering a variety of new grill designs, it decided to go with
a traditional design but differentiate the new product from other grills by colouring it in
Coleman’s “signature green
...
The use of the green immediately communicates that a product
is “a Coleman
...
A variety of strategies allow marketers to take advantage of brand equity
...
Broadening Distribution
Tupperware, for years sold only at home parties, is now available at target stores
...
But when a brand has developed strong customer loyalty, these
types of stores are eager to carry them
...
Brand extension is generally most
220
successful when it involves similar products
...
Co-branding helps companies that sell commodity products, such as credit cards and air
travel, to differentiate them
...
Brand Licensing
A strong brand can be licensed
...
The beauty of brand licensing is
that the company owning the brand can continue to use it while also collecting a fee for the
brand’s use by another company
...
The “Intel
Inside” message used by various computer hardware manufacturers is good example
...
A dominant brand
is an entry barrier to competitors because it acts as a reference in its category
...
The Palmolive brand name has become symbolic of
mildness and had been extended to a number of markets besides that of soap, for example
shampoo, shaving cream and washing up liquid
...
Additional buyers may be attracted to a product which appears identical to another
but which has a brand name with a strong reputation
...
Brand extensions into new markets can result
in royalties and important gearing effects
...
The financial value of the brand is the difference between the extra revenue generated
by the brand and the associated costs for the next few years, which are discounted back to
today
...
The discount
rate used to weigh these future cash flows is determined by the confidence or the lack of
it that the investor has in his forecasts
...
Thus future net cash flows are considered more certain the
stronger the brand
...
Once these generations are measured in rupees or any other currency they may serve
as a base for evaluating the marginal profit which is attributable to brand management
...
The value of the brand and the legitimacy of a company implementing brand policy
depend on the difference between the marginal revenues coming from the generators of
profitability and the necessary marginal costs associated with brand management
...
Starting in 1990s, there has been a broadening of marketing to cover all organisations
...
The non-profit and
public sectors account for more than a quarter of the Indian economy and are in great need
of management and marketing skills
...
They are losing clients on the one hand and finding it more difficult to raise public and
private funds on the other hand many are being forced to charge fees for formerly free
services to earn extra income
...
All of this has increased the interest of non-profits in the area of marketing
...
They use brand as a tool to mobilize finds from the public to fulfill their objectives
...
Another organization is „vuthavum karangal‟
(helping hands) which is taking care of socially and economically deprived children in
Chennai
...
There are several dangers in the aggressive promotion of brand value
...
Also, hard promotion may turn off as many clients as it turns on
...
What is brand equity?
2
...
3
...
Write short note on:
(a) Brand Loyalty
(b) Brand association
(c) Perceived quality
(d) Brand awareness
5
...
223
6
...
What are the objectives of sales promotion?
8
...
9
...
10
...
11
...
12
...
Surrogate selling
(ii)
...
Define Brand equity
...
14
...
Explain the role of brand value for business and non-business organizations
...
5 in A & M’s Top Brand Survey of 1997, three ranks below
its arch-rival Colgate
...
15
...
According to Hindustan Liver Ltd, the marketers of Close-Up, the typical
consumer had no qualms about not keeping germs at bay during the night but rather cared
more about fresh breath in the morning
...
It
was hoped that once Close-Up entered homes, older consumer would also start using it and
start discard Colgate
...
224
The intimacy between couples, portrayed in Close-Up commercials, was seen as
disturbing the Indian mother’s sensibilities and hence the ads focused on the gregarious
couple, as this group oriented closeness was seen to be more acceptable to mothers, who are
the actual buyers of house hold toiletries
...
Close-Up has been strong in the South
...
In West Bengal, HLL roped in popular singer Anjan Dutt to reach out to
the old and young alike
...
Analyze the case and determine which promotion strategy, ‘pull’ or ‘push’ would be
appropriate
...
Suggest two ‘pull promotion for Close-Up to load the trade
...
Develop a sales promotion design for Close-Up
...
US-based food products firm
...
The vice president says, “We took an Indian perspective
out of the Conagra portfolio, when relevance to the local palate … Healthy World marks out
entry into mass market products
...
50 for a 1 kg pack, Healthy World comes in packs ranging from 500
gm to 5 k
...
ITC Agrotech claims that it spent nearly one year on R&D before launching
Healthy World
...
There are several regional
brands too
...
While creamish to white colour and finer size is preferred in the South, the North
consumer is more discerning as far as taste goes,” informs this marketing manager
...
as against just 3 kg
...
Conagra claims to be the largest miller in the US
...
What will also help ITC Agro is the fact that it has
established itself as a health conscious manufacturer with Sundrop
...
In fact, the Healthy World packs too leverage this with the image of the
boy somersaulting (The Sundrop trademark) with the proclamation – “from the maker of
Sundrop”
...
The theme line of Healthy World says, “ More
health More Energy
...
Develop a sales promotion plan to encourage continued consumption of Healthy
World in North India
...
How would you make your sales promotion competition proof?
3
...
Frank
...
Georg E Belch, Michael A Belch & Keyoor Purani, ADVERTISING AND
PROMOTION- An Integrated Marketing Communications Perspective, Seventh
Edition, Tata McGraw Hill Education Pvt
...
J
...
Vilanilam & A
...
Varghese – ADVERTISING BASICS – A RESOURCE
GUIDE FOR BEGINNERS: Response Books, Sage Publications
4
...
Kelley & Jugenheimer, ADVERTISING MEDIA PLANNING A BRAND
MANAGEMENT APPROACH, Prentice Hall, India
...
Kirti Dutta, BRAND MANAGEMENT- Principles & Practice, Oxford University
Press, India, New Delhi, 2012
...
Kruti Shah & Alan D’Souza, ADVERTISING & PROMOTIONS- an IMC
perspective
...
Ltd, New Delhi, 2009
8
...
Ltd, New Delhi, 2008
9
...
Rajeev Batra, John G
...
Aaker, ADVERTISING MANAGEMENT,
Fifth Edition, PHI Learning Pvt
...
New Delhi, 2008
11
...
Ltd
...
S H H Kazmi & Satish K Batra, ADVERTISING & SALES PROMOTION, Third
Edition,Excel Books, New Delhi, 2008
13
...
Ltd, New Delhi, 2007
14
...
William F Arens, CONTEMPORARY ADVERTISING, 10th Edition, Tata McGraw
Hill Education Pvt
...
Wright, Winter & Zeigler, ADVERTISING, Tata McGraw Hill
Title: Advertising and Sales Promotion
Description: Advertising and Sales Promotion
Description: Advertising and Sales Promotion