Ntroduction TO Dvertising
Ntroduction TO Dvertising
Communication
Communication means passing information, ideas, or feelings by a person to another.
Communication uses all the senses like smell, touch, taste, sound, sight. Only two senses - sound
and sight are really useful in advertising. In advertising, what appears is everything the writer
thinks the customer needs to know about the product in order to make a decision about the
product. That information will generally be about how the product can benefit the customer.
Paid For
Advertiser has to pay for the creation of ad and for placing it in the media. Cost of ad creation
and cost of time/space in the media must be paid for. Cost of advertising depends on TRP of
media, reach of media, and frequency of ad to be displayed.
Persuasive
"Persuasive" stands to reason as part of the definition of advertising. The basic purpose of
advertising is to identify and differentiate one product from another in order to persuade the
consumer to buy that product in preference to another.
Identified Sponsors
Identified sponsors means whoever is putting out the ad tells the audience who they are. There
are two reasons for this: first, it's a legal requirement, and second, it makes good sense. Legally, a
sponsor must identify himself as the sponsor of ad. By doing so the sponsor not only fulfils the
legal requirements, but it also makes a good sense, if the sponsor doesn't do so, the audience may
believe that the ad is for any competitor's product, thus wasting all the time and money in
making and placing the ad.
Mathews, Buzzell, Levitt and Frank have listed some specific objectives of advertising.
Advertising is the promotion of a companys products and services though different mediums to
increase the sales of the product and services. It works by making the customer aware of the
product and by focusing on customers need to buy the product. Globally, advertising has
become an essential part of the corporate world. Therefore, companies allot a huge part of their
revenues to the advertising budget. Advertising also serves to build a brand of the product which
goes a long way to make effective sales.
Advertisement reminds existing customers about the presence of the product in the
market
Let us discuss some important types of advertising based on the functional aspect of advertising.
Informative advertising: This type of advertising informs the customers about the products,
services, or ideas of the firm or organization.
Persuasive advertising: This type of advertising persuades or motivates the prospective buyers
to take quick actions to buy the products or services of the firm. Example: Buy one, get one
free.
Reminder advertising: This genre of advertising reminds the existing customers to become
medium or heavy users of the products or services of the firm that have been purchased by them
at least once. This type of advertising exercise helps in keeping the brand name and uses of the
products in the minds of the existing customers.
B) Classification on the basis of region
Advertisements can also be classified on the basis of the region, say:
Global advertising: It is executed by a firm in its global market niches. Reputed global
magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science.
Cable TV channels are also used to advertise the products throughout world. Supermodels and
cinema stars are used to promote high-end products Examples: Sony, Philips, Pepsi, Coca Cola,
etc.
National advertising: It is executed by a firm at the national level. It is done to increase the
demand of its products and services throughout the country. Examples: BPL (Believe in the best).
Whirlpool Refrigerator (Fast Forward Ice Simple) etc.
Regional advertising: If the manufacturer confines his advertising to a single region of the
country, its promotional exercise is called Regional Advertising. This can be done by the
manufacturer, wholesaler, or retailer of the firm. Examples: Advertisements of regional
newspapers covering those states or districts where these newspapers are circulated. Eg. The
Assam Tribune (only for the NE region) etc.
Local advertising: When advertising is done only for one area or city, it is called Local
Advertising. Some professionals also call it Retail Advertising. It is sometime done by the
retailer to persuade the customer to come to his store regularly and not for any particular brand.
Examples: Advertisements of Ooo la la, Gupshup (Local FM channels) etc.
C) Classification on the basis of target market
Depending upon the types of people who would receive the messages of advertisements, we can
classify advertising into four subcategories:
Consumer product advertising: This is done to impress the ultimate consumer. An ultimate
consumer is a person who buys the product or service for his personal use. This type of
advertising is done by the manufacturer or dealer of the product or service. Examples:
Advertisements of Intel, Kuttons (shirt), Lakme (cosmetics) etc.
Industrial product advertising: This is also called Business-to-Business Advertising. This is
done by the industrial manufacturer or his distributor and is so designed that it increases the
demand of industrial product or services manufactured by the manufacturer. It is directed
towards the industrial customer.
Trade advertising: This is done by the manufacturer to persuade wholesalers and retailers to sell
his goods. Different media are chosen by each manufacturer according to his product type, nature
of distribution channel, and resources at his command. Hence, it is designed for those
wholesalers and retailers who can promote and sell the product.
Professional advertising: This is executed by manufacturers and distributors to influence the
professionals of a particular trade or business stream. These professionals recommend or
prescribe the products of these manufacturers to the ultimate buyer. Manufacturers of these
products try to reach these professionals under well-prepared programmes. Doctors, engineers,
teachers, purchase professionals, civil contractors architects are the prime targets of such
manufacturers.
Financial advertising: Banks, financial institutions, and corporate firms issue advertisements to
collect funds from markets. They publish prospectuses and application forms and place them at
those points where the prospective investors can easily spot them.
D) Classification on the basis of desired responses
An ad can either elicit an immediate response from the target customer, or create a favourable
image in the mind of that customer. The objectives, in both cases, are different. Thus, we have
two types of advertising under this classification.
Direct action advertising: This is done to get immediate responses from customers. Examples:
Season's sale, purchase coupons in a magazine.
Indirect action advertising: This type of advertising exercise is carried out to make a positive
effect on the mind of the reader or viewer. After getting the advertisement he does not rush to
buy the product but he develops a favourable image of the brand in his mind.
Surrogate advertising: This is a new category of advertising. In this type of promotional effort,
the marketer promotes a different product. For example: the promotion of Bagpiper soda. The
firm is promoting Bagpiper Whisky, but intentionally shows soda. They know that the audience
is quite well aware about the product and they know this fact when the actor states, "Khoob
Jamega Rang Jab Mil Baithenge Teen Yaar ... Aap ... Main, Aur Bagpiper").
E) Classification on the basis of the media used in advertisement
The broad classification based on media is as follows:
Audio advertising: It is done through radio, P A systems, auto-rickshaw promotions, and fourwheeler promotions etc.
Visual advertising: It is done through PoP displays, without text catalogues, leaflets, cloth
banners, brochures, electronic hoardings, simple hoardings, running hoardings etc.
Audio-visual: It is done through cinema slides, movies, video clips, TV advertisements, cable
TV advertisements etc.
Written advertising: It is done through letters, fax messages, leaflets with text, brochures,
articles and documents, space marketing features in newspapers etc.
Internet advertising: The world-wide web is used extensively to promote products and services
of all genres. For example, Bharat Matrimony, www.teleshop.com, www.asianskyshop.com etc.
Verbal advertising: Verbal tools are used to advertise thoughts, products, and services during
conferences, seminars, and group discussion sessions. Kinesics also plays an important role in
this context.
Marketing Environment
Question - What do you mean by marketing and marketing environment?
Answer
Introduction
In today's world of marketing, everywhere you go you are being marketed to in one form or
another. Marketing is with you each second of your walking life. From morning to night, you are
exposed to thousands of marketing messages every day. Marketing is something that affects you
even though you may not necessarily be conscious of it.
Definition of Marketing
According to American Marketing Association (2004) - "Marketing is an organizational
function and set of processes for creating, communicating and delivering value to customers and
for managing relationships in a way that benefits both the organization and the stakeholder."
According to Kotler (2000) - "A societal process by which individuals and groups obtain what
they need and want through creating, offering, and freely exchanging products and services of
value with others."
Marketing Environment
The term Marketing Environment refers to the forces and factors that affects the organization
ability to build and maintain good relationship with its customers. Marketing environment
surrounds the organization and it impacts upon the organization. Marketers have to interact with
internal and external people at micro and macro level and builds internal and external
relationships. The key elements of marketing environment are as follows:
1.
Internal Environment,
2.
Micro Environment, and
3.
Macro Environment.
Internal Environment
Internal factors like men, machine, money, material, etc., on which marketing decision depends
consists internal marketing environment. The internal environment refers to the forces that are
within the organization and affects its ability to serve its customers. It includes marketing
managers, sales representatives, marketing budget, marketing plans, procedures, inventory,
logistics, and anything within organization which affects marketing decisions, and its
relationship with its customers.
Micro Environment
Individuals and organizations that are close to the marketing organization and directly impacts its
ability to serve its customers, makes Marketing Micro Environment. The micro environment
refers to the forces that are close to the marketing organization and directly impact the customer
experience. It includes the organization itself, its suppliers, marketing intermediaries, customers,
markets or segments, competitors, and publics. Happenings in micro environment is relatively
controllable for the marketing organization.
Macro Environment
Macro environment refers to all forces that are part of the larger society and affects the micro
environment. It includes demography, economy, politics, culture, technology, and natural forces.
Macro environment is less controllable.
3.
Executing: Now, media is selected for time or space, ad is delivered to media, checked,
verified, and released in media. After ad release payment is done to media and client is billed
for the services provided.
Functions of Advertising Agency
Advertising agency performs following functions:
1.
Contacting Clients: Advertising agency first of all identify and contact firms which are
desirous of advertising their product or services. Ad-agency selects those firms which
are financially sound, makes quality products or services, and have efficient management.
2.
Planning Advertisement: Advertising agency's next function is to plan ad for its client.
For ad planning following tasks are required to be performed by ad-agency:
o
Study of clients product to identify its inherent qualities in relation to
competitors product.
o
Analysis of present and potential market for the product.
o
Study of trade and economic conditions in the market.
o
Study of seasonal demand of the product
o
Study of competition, and competitors spending on advertising.
o
Knowledge of channels of distribution, their sales, operations, etc.
o
Finally, formulation of advertising plan
Developing Ad-Copy: Ad-agency with the help of their writers, artists, designers,
animators, graphic-designers, and film-directors prepares and develops Ad-copy.
Research Function: Ad-agency performs various research functions likeresearch of different media, media cost, media reach, circulation, entry of new media,
information regarding ratings, and TRP's of TV programs, serials.
and selecting media. Full service agency also offers other services like- strategic market
planning, sales promotion, direct marketing, package design, public relation, and publicity.
In House Agency - In house Agency is the advertising department of the firm which is
responsible for planning and preparation of advertising materials. Big organizations like- Gap,
Calvin Klein, Revlon, and etc. can manage in house advertising department and can take the
advantage of proper coordination and greater control in all phase of advertising and promotion
process.
Creative Boutique - Creative boutiques are known for their creative concept development, and
artistic services to their clients. Any advertiser wants to infuse greater creativity into the message
theme or individual advertisement can approach a creative boutique. Such agency provides only
creative services.
Media Buying Services - They are independent companies specialized in media buying. Media
Buying service agencies particularly deals in buying radio time and television time.
La Carte Agency - Some advertisers prefer to order a la carte rather than using all the services
of an agency. A la carte can be purchased from a full-service agency or from an individual firm
deals in creative work, media, production, and or research.
Special service agency - Some agencies focuses on some selected areas, and gains specialization
or expertise in those areas, such agencies collectively are called special service groups.
Sweet shops - Such agencies are small agencies operates only in one city. Small clients who
want advertisement in local media like- local cable, banners, posters, pamphlets
etc., approaches such agencies.
Experience of Agency - An experienced agency performs better then a new agency because it is
familiar with different components of marketing environment like- competitors' policies, taste of
consumer, income of consumer, consumer responses, fashions and trends, reputation of different
media etc.
Location - A major factor to be considered while selecting ad-agency is location of office of
agency. A considerable amount of communication is required at different level of ad planning,
creation and execution. So, a local or nearby ad-agency should be preferred which is easily
accessible.
Size of Agency - There are both large size agencies and small size agencies, both have their own
advantages and disadvantages. Large agencies serve big clients, provides wide variety of
services, and charges higher but, cannot give personal attention because of having large number
of clients, also cannot give much attention to small clients because of having large number of big
clients.
Competitors' Agency - Agency which is working for competitors must be avoided otherwise
agency will not prepare ads which help the advertiser to take an edge over competition.
Image of Agency - While selecting ad-agency the advertiser should enquire the image, integrity,
ethical standards, and relations of agency with its clients.
Creativity and other skills - Ad-agency must be creative enough to generate new ideas to gain the
attention of target audience.
Rates Charged by Agency - The rates of agency must suit the pocket of client. Advertiser
should select agency whose rates are reasonable and within the ad-budget.
Financial Strength of Agency - A financially strong ad-agency have better turnover and better
contacts with media owner, and afford better infrastructure, well-equipped-ad labs, and quality
staff.
Past Records of Agency - It is necessary to know who were the past clients of agency, how long
were they with agency, why they left the agency, brand image of products of clients, etc.
Answer
Advertising is a form of mass communication
Yes, it is true to say that advertising is a form of mass communication. Advertising is a process
of transmission of information by the manufacturer or a seller of a product or service to modify
or stimulate the behavior of the buyer to buy a particular product. Advertising can be in any form
of presentation such as sign, symbol or illustration in print media, a commercial on radio or
television, poster etc. Thus, advertising is the communication link between the seller and the
buyer.
Advertising is a paid form of a non-personal message communicated through the various media
by industry, business firms, nonprofit organizations, or individuals. Advertising is persuasive and
informational and is designed to influence the purchasing behavior and/or thought patterns of the
audience.
One of the basic ingredients of today's popular culture is consumption and it is the advertising
industry that makes mass consumption possible. Advertising is an important element of our
culture because it reflects and attempts to change our life styles.
The advertising message has to reach a billion people, speaking different languages, practicing
many religions. Advertisers can reach their audiences through television, radio, cinema, print
medium, outdoor advertising, sales promotion and the Internet. Hence, advertising is a form of
mass communication.
Personal selling - Personal presentation by the firm's sales force for the purpose of
making sales and building customer relationship.
3.
4.
Public relation - Building good relationship with the company's various publics by
obtaining favorable publicity,
building
up
a
good
corporate
image,
and
handling unfavorable rumors, stories, and events.
5.
6.
7.
What am I advertising?
To whom am I advertising?
to determine whether the advertising can cut through the clutter and make people stop and notice
the ad. The second is to assess whether the ad communicates the intended message.
Advertising Appeals
Question - What is Advertising Appeal? Describe different types of advertising appeal.
Answer
Advertising Appeal is an igniting force which stimulates the customer mindset towards the
product or services. It not the only factor in the marketing mix which initiates a consumer for
buying the product but it is certainly one of the advertisers' most important creative strategy
decisions involves the choice of an appropriate appeal.
Advertising appeals are designed in a way so as to create a positive image of the individuals who
use certain products. Advertising agencies and companies use different types of advertising
appeals to influence the purchasing decisions of people. There are three types of appeals:
1.
Rational or Informational Appeal
2.
Emotional Appeal
3.
Moral Appeal
Rational or Informational Appeals
This is generally product oriented appeal, highlights the functional benefits like- quality,
economy, value, or performance of a product. Following are different types of rational appeals:
Feature Appeal - Advertisements based on such appeal are highly informative, provides
information of product attributes or features that can be used as the basis for rational
purchase decision. Technical and high involvement product often uses this appeal.
Competitive Advantage Appeal - Such appeal is used to compare the product with the
competitor's product directly or indirectly and advertiser try to present his product superior
then competitor's product on one or more attributes.
Favorable Price Appeal - Here price offer is considered as the dominant point of the
message.
High Quality - Some products are preferred for their quality not merely because of their
taste or style, such products are advertised by highlighting the quality attribute in
advertisement.
Low price - Many people prefer low priced goods. To target such audience products are
advertised by highlighting the low-price tag of the product.
Long Life - Many consumers want product of durable nature that can be used for a long
period, in advertisement of such product durability is the dominant point of the message.
Performance - Many advertisements exhibit good performance of product.
Economy - Many customers consider savings in operation and use of product, for
example in case of automobile the mileage is considered while selecting the brand or model.
Scarcity - Another appeal that is occasionally used is scarcity. When there is a limited
supply of a product, the value of that product increases. Scarcity appeals urge consumers to
buy a particular product because of a limitation.
Other Rational Appeals - Other rational appeals include purity, more profits, time
saving, multifunction, more production, regular supply and availability of parts, limited
space required, artistic form, etc. that can make advertising effective.
Emotional Appeals
An emotional appeal is related to an individuals psychological and social needs for purchasing
certain products and services. Emotions affects all type of purchase decisions. Types of
emotional appeals are as follows:
Positive Emotional Appeal - Positive emotions like- humor, love, care, pride, or joy are
shown in advertisements to appeal audience to buy that product. For example- Jonson and
Jonson baby products.
Negative Emotional Appeal - This includes fear, guilt, and shame to get people to do
things they should or stop.
Fear - Fear is an emotional response to a threat that expresses some sort of danger. Ads
sometimes use fear appeals to evoke this emotional response and arouse consumers to take
steps to remove the threat. For example- Life Insurance
Anxiety - Most people try to avoid feeling anxious. To relieve anxiety, consumers might
buy mouthwash, deodorant, a safer car, get retirement pension plan.
Humor - Humor causes consumer to watch advertisement, laugh on it, and most
important is to remember advertisement and also the product connected with humour. For
example- Happy dent, and Mentos.
Moral Appeals
Moral appeals are directed to the consumes sense of what is right and proper. These are often
used to exhort people to support social and ethical causes. Types of Moral Appeal are as follows:
Adult literacy
Reminder Appeal - Advertising using reminder appeal has the objective of building
brand awareness. For example- IPO
Teaser Advertising - Advertisers introducing a new product often use this appeal. It is
designed to build curiosity, interest and excitement about a product or brand. For examplePonds ad of Saif & Priyanka
Transformational Appeal - The idea behind this appeal is that it can actually make the
consumption experience better. For example- Ambay products
Direct Appeals - Direct appeals clearly communicate with the consumers about a given
need. These extol the advertised brand as a product which satisfies that need.
Indirect Appeals - Indirect appeals do not emphasise a human need, but allude to a need.
AIDA Concept
Question - Discuss the AIDA Concept? How it is related to promotional mix?
Answer
AIDA Model is a selling concept presented by Elmo Lewis to explain how personal selling
works. AIDA Model outlines the processes for achieving promotional goals in terms of stages of
consumer involvement with the message. The Stages are Attention, Interest, Desire, and Action.
Attention
In this media filled world, advertisers need to be quick and direct to grab audience attention. Ads
are required to be eye catchy which can make audience stop and read or watch what advertiser
have to say next. Powerful words and pictures are used in ads to make them attractive.
Interest
After getting attention of a chunk of the targeted audience, it is required to keep them engaged
with the ad to make them understand the message in more detail. Gaining the reader's or
audience interest is more difficult process than grabbing their attention. To gain audience interest
the advertisers must stay focused on audience needs.
Desire
The Interest and Desire parts of AIDA goes hand-in-hand. As advertiser builds the audience
interest, he also need to help them understand how what he is offering can help them in a real
way. The way of doing this is by appealing to their personal needs and wants.
A good way of building the reader's desire for advertiser offering is to link features and benefits.
Hopefully, the significant features of the offering have been designed to give a specific benefit to
members of the target market.
Action
Finally, advertiser need to be very clear about what action he want the audience to take- trial,
purchase, repurchase, or other.
Attention
Interest
Desire
Action
Very
Effective
Very
Effective
Somewhat
Effective
Somewhat
Effective
Very
Effective
Very
Effective
Somewhat
Effective
Very
Effective
Somewhat
Effective
Very
Effective
Very
Effective
Very
Effective
Not Effective
Not Effective
Somewhat
Effective
Very
Effective