Introduction to Advertising Advertising is a form of communication for marketing and used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. The purpose of advertising may also be to reassure employees or
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- 1. Introduction to Advertising Advertising is a form of communication for marketing and used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as
2. newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages. In 2010, spending on advertising was estimated at $142.5 billion in the United States and $467 billion worldwide History Egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this 3. day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. History tells us that Out-of- home advertising and billboards are the oldest forms of advertising. As the economy expanded during the 19th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising. In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney B. Palmer established the roots of the modern day advertising agency in 4. Philadelphia. In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then resold the space at higher rates to advertisers. The actual ad - the copy, layout, and artwork - was still prepared by the company wishing to advertise; in effect, Palmer was a space broker. The situation changed in the late 19th century when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son offered to plan, create, and execute complete advertising campaigns for its customers. By 1900 the advertising agency had become the focal point of creative planning, and advertising was firmly established as a profession. Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas to include advertisement brokerage, 5. making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer opened in 1869, and was located in Philadelphia Modern/present At the turn of the century, there were few career choices for women in business; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman for a soap product. Although tame by today's standards, the 6. advertisement featured a couple with the message "The skin you love to touch". Modern advertising was created with the innovative techniques used in tobacco advertising beginning in the 1920s, most significantly with the campaigns of Edward Bernays, which is often considered as the founder of modern, Madison Avenue advertising. The tobacco industries was one of the firsts to make use of mass production, with the introduction of the Bonsack machine to roll cigarettes. The Bonsack machine allowed the production of cigarettes for a mass markets, and the tobacco industry needed to match such an increase in supply with the creation of a demand from the masses through advertising 7. Advertising is the promotion of a company's products and services carried out primarily to drive up sales of the products and services. It is also done to build a brand identity and communicate changes in old products or introduce new product/services to the customers. Advertising has become an essential element of the corporate world and hence companies allot a 8. considerable amount of resources towards their advertising budget. There are several reasons for advertising, some of which are as follows: Increasing the sales of the product/service. Creating and maintaining a brand identity or brand image. Communicating a change in the existing product line. Introduction of a new product or service. Increasing the buzz-value of the brand or the company. There are several reasons for advertising. Similarly, there exist various media which can be effectively used for advertising. Mentioned below are the various categories or types of advertising. Print Advertising - Newspapers, Magazines, 9. Brochures, Fliers Print media has always been a popular advertising option. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often, newspapers and magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement in the publication (front page/middle page, above/below the fold), as well as the readership of the publications. For instance, an advertisement in a relatively new and less popular newspaper will cost far less than an advertisement in an established newspaper that has a high readership. The price of print ads may also depend on quality of the paper and the supplement in which they appear. 10. For example, an advertisement in the glossy (and popular) supplement of a newspaper costs more than one in a supplement which uses mediocre quality paper. Outdoor Advertising - Billboards, Kiosks, Trade-shows and Events It makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also events and trade- shows organized by the company. Billboard advertising is very popular. However it has to be really terse and catchy in order to grab the attention of the passersby. Kiosks not only provide an easy outlet for the company's products but also make for an effective advertising tool to promote the company's 11. products. Organizing special events or sponsoring them makes for an excellent advertising opportunity and strategy. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products. Broadcast Advertising - Television, Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes several branches like television, radio or the Internet. Television advertisements have been very popular ever since they were introduced. The 12. cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/lull time), sometimes the show on which it will be broadcast, and of course, the popularity of the television channel itself. The radio might have lost its charm owing to new age media. However it remains the choice of small-scale advertisers. Radio jingles have been very a popular advertising medium and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy old popular radio jingles. Covert Advertising - Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even 13. sports. There is no commercial advertising as such in the entertainment but the brand or the product is subtly (or sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruise's phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded. Pay attention next time, you're sure to come across a lot of such examples. Surrogate Advertising - Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to 14. health are prohibited by law in several countries. Hence these companies come up with several other products that have the same brand name and indirectly remind people of the cigarettes or alcohol of the same brand by advertising the other products. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising. Public Service Advertising - Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messages about important matters and social causes like AIDS, energy conservation, 15. political integrity, deforestation, illiteracy, poverty and so on. David Ogilvy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly encouraged the use of the advertising field for a social cause. Ogilvy once said, "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes." Today, public service advertising has been increasingly used in a non-commercial fashion in several countries across the world in order to promote various social causes. In the United States, radio and television stations are granted to bidders on the basis of a fixed amount of public service advertisements aired by the channel. 16. Celebrity Advertising Although the audience is getting smarter and smarter and the modern-day consumer is getting immune to the exaggerated claims made in a majority of advertisements, there exists a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for campaigns, which consist of all sorts of advertising including, television ads or even print advertisements. How effective these ads are, is something that each consumer himself can determine. Each of the advertisement types mentioned has its own sub-types and rates of effectiveness. It is the job of advertising department to figure out which type of which medium is the best and the most feasible for the company. 17. Role of advertising in Brand Building Function The model suggests that there are six steps a consumer or a business buyer moves through when making a purchase. 1.Awareness 2.Knowledge 3.Liking 4.Preference 5.Conviction 6.Purchase AIDA Model A --------- I ---------- D --------- A ---------- Brand Building process 18. Create Awareness Information/Knowledge Advertising informs the buyers about the benefits they would get when they purchase a particular product. However, the information given should be complete and true. Recognition The advertiser expects to create a favorable attitude which will lead to favorable actions. Any advertising process attempts at converting the prospects into customers. It is thus an indirect salesmanship and essentially a persuasion technique. Acceptance Preference/Choice Advertising facilitates consumer choice. It enables consumers to purchase goods as per their budget requirement and choice. Right choice makes consumer happy and satisfied. 19. Usage Satisfaction Word of mouth Advertising and Brand building Brands are the identification that differentiates one business from another (through name, symbol etc.). However, today brands can also be defined as the personality they reflect to people in relation to status, emotional characteristics and subjective quality. They give the consumers a perceived knowledge of the product, its quality and uniqueness before they buy it. Brands Ensure delivery of service as promised by them. For example, Pizza Company A claims to deliver pizza within a 20. certain time and Pizza company B claims to deliver most delicious Pizzas. It makes easy for the consumers to identify what they want and which brand to choose for it. It is important for a brand to accomplish the claim advertised to retain Brand Image. Brand personality acts as a potent brand differentiator and offers sustainable competitive advantage. Advertising by creating or reinforcing brand's personality enhances brand value or equity which in turn can be leveraged through brand extension. Brand personality also helps brands to gain market share, command price premium and insulates from discounting Brands. 21. Building a strong brand name is key factor for business success. In the competitive business environment of today, consumer sophistication has altered business practices. Organizations are forced to anticipate customers' needs and convey clear messages to consumers by establishing strong brand names and focusing on brand building. A brand's practical attributes and symbolic values are inherent elements that help the brand appeal on consumers' minds and emotion. When consumers relate brands with symbols, it becomes easier for an 22. organization to raise consumer interest. For instance, Lexus is known for luxury, or Apple is known for innovation. Therefore, in consumers' minds, a brand is more than just a recognizable name: it is a promise that needs to be met on a regular basis. Advertising is important for building brand awareness. By raising consumer interest and making consumers awareness of their products and services, firms not only expand their customer base, but they also keep their loyal customers and increase their market share. In other words, the more aware consumers are of a brand, the more likely they are to buy from a particular business. Approaches in Brand building: 23. To make brand distinctive: brand building can be done through repetitive advertising. Also by highlighting unique selling proposition one can distinguish brand from one another. 1. Constant innovation: Consumers need continuous innovation and new products. It is not always a new product even an improvement on the existing product is acceptable to the consumers. Through intensive advertising such brands are build which is time consuming. 2. Domination of brand: brand building largely depends on the domination is creates on the competitors. Domination can take place either in national market or in niche market. 3. Prompt availability: Prompt delivery of the product is one of the factors that ensure brand 24. building. This is possible if there is proper coordination between the finance, production, and marketing department. 4. Integration of new and old media: Consumers have ever changing demand. Due to availability of various media option the seller can push the product in the market by blend multiple media option .Thus advertising message are flashed to consumers through media mix. Advertising and Clutter Advertising or marketing clutter refers to the large volume of advertising messages that the average consumer is exposed to on a daily basis. This phenomenon results from a 25. marketplace that is overcrowded with products leading to huge competition for customers. Marketing clutter is a major problem for marketers and advertisers, as it is becoming increasingly difficult to be noticed using conventional mass-media. This intense competition has led to the emergence of more innovative methods of promoting businesses. Effect of advertising clutter on consumers Consumers were always able to avoid mass media advertising. Television breaks would be the time to make snacks or go to the toilet, magazine readers could turn the page and newspapers could have entire sections tossed aside by readers. Since the advent of preset buttons on car radios five decades ago, commuter audiences would shift between alternative 26. stations as the string of commercials outran the listener's ability to tolerate the repetitive messages. And today, advertising avoidance becomes increasingly easy. Televisions all have remote controls, many people watch only shows that were recorded earlier so the commercials can be skipped, or many broadcast services are now by subscription and commercial-free. Yet it appears that the advertisers' "solution" to audience avoidance of their messages is to increase the number of messages, so even the effort of commercial avoidance becomes a source of audience frustration. Television commercial breaks are longer and the commercials are shorter, so there 27. are more spots appearing per break. Even when time-shifting favorite television programs, the zapping of the increasing quantity and length of commercial breaks gets tedious. Broadcast radio often seems to have more advertising than entertainment or news, sending the formerly captive audiences of automotive commuters to satellite radio, prerecorded music and the less-than-safe alternative of talking on a cell phone. Magazines have multiple pages of advertising before you even get to the table of contents while newspapers' free-standing inserts alone fill their own recycling box. Increasing advertising-to-editorial ratio is really a function of simple media economics. 28. With the decline of the former mass media into more segmented and targeted options, the total audience size of even the largest vehicles is greatly reduced. With smaller audiences, the vehicles need to sell more time or space to make the same amount of money. And yet, if the clutter were less, each message would have greater impact and the advertisers should be willing to pay more per audience member reached, or so you would intuitively think, assuming it is well targeted. The puzzle to even the most casual audience member is how much of this advertising is wasted, as their children watch advertising for pickup truck tops during "Power Puff Girls" or "The Fairly Oddparents" cartoon programs. Despite 29. claims to a highly targeted media environment, advertising is still often placed without much regard for each vehicle's audience, resulting in the mass media equivalence of Internet spam for audiences. Too many advertising plans make the purchase of time or space done by little more than counting the size of audiences instead of considering the thoughts and desires of consumers (Miller 2004). Demographic data remain the predominant basis for how vehicles' audiences are defined, despite them being poor predictors of how audiences think or act in the marketplace. And even the numbers available are not used. Most newspaper advertising appears run-of-paper, without regard for which audiences read each 30. section, while many broadcast and cable commercials are placed run-of-schedule on a variety of stations or programs whose total audiences are an agreed upon size but may or may not be potential consumers for the advertisers' products. But aside from issues of vehicle selection, the quantity of commercials alone creates the feeling of overwhelming mass media spam. As noted, the problem is increasing but not necessarily new. The audience complaints and advertiser persuasion problems of message clutter with repetitive messages was frequently criticized To some, advertising's future lies in doing a better job of hiding the sales message in the news or editorial content of the media (e.g. 31. Donaton 2004). Numerous detail how product placement generated publicity that drove increased product sales for various companies. Unfortunately, the alternative is too restrictive and depends too much on sales driven by simple name recognition, since the format does not allow for providing much of detailed product information in the message. In reality, the solution for advertising might be to turn back the clock, to a time of sponsorships and fewer commercials. Basic philosophy of advertising stressed the importance of a single advertising message delivered with respect for the intelligence and values of its audience. An advertiser who prepares a targeted, interesting and entertaining ad would no more have to run it 32. multiple times than the newspaper has a need to run the same page one headline day after day. After all, he noted that "Nobody reads ads per se. People read what interests them, and sometimes it's an ad." Advertising writers say that the solution is more creative advertising that breaks out from the advertising clutter. They are partially right, since the problems of clutter are compounded when the exact same, dull message is seen multiple times within the same vehicle. But for advertisers, they need to realize that a less cluttered environment is worth more money. A sponsored vehicle with a greatly reduced number of advertising messages means that each message would have a greater impact, assuming they 33. provide information that the audiences would like to receive. People throw out direct mail messages because it is irrelevant to them; spam is the plethora of email you'd never want to read. The solution for clutter is for advertisers to be willing to pay the price for messages surrounded by less of it. Breaking advertising clutter What do bras on trays, a fund-raising campaign for hospitalized veterans and overseas soldiers, and an art contest in a bank branch have in common? Marketers are experimenting with ways to allow consumers to experience -- touch, smell, even taste -- their products, services 34. and brands. They believe that if people actually "experience" the brand, there's a better chance the experience will result in a sale. From bathroom walls and the sides of city buses to the Internet, advertising has exploded beyond its traditional forms -- print, broadcast and billboards -- and taken up residence in an ever-widening array of media. And consumers, for their part, have gotten better at tuning it out -- buying digital video recorders that enable them to fast- forward through commercials, tuning into commercial-free satellite radio channels and simply ignoring ads. 35. Getting creative Triad companies are trying some unusual techniques to sell their wares and get their messages across. Marketers of the Wonderbra, made by Winston-Salem-based Sara Lee Branded Apparel, trucked a mobile "Wonderbra Lounge" to San Diego, Phoenix and Fort Lauderdale, Fla., in March. Workers hit areas rich in nightlife and invited 20- something women inside the lounge to try on Wonderbra Light Lift bras. The lounge not only drew potential customers, but also plenty of news coverage. At cigarette maker Reynolds American in Winston-Salem, marketers are long accustomed to working with restrictions on their advertising, which has forced them to 36. find different ways to convince people to choose their cigarettes over competitors from Philip Morris and Greensboro's Lorillard. Narrowing the focus Marketers are interested in identifying who their potential customers are and honing in on them hitting consumers where it's relevant to them." That's not to say traditional advertising isn't used, TV commercials, billboards and the like are still useful for creating brand awareness are increasingly focused on getting buyers to connect emotionally with their brands. "It's understanding consumers' motivations -- when, how and where they make their decisions. 37. And if you can narrow into that then you know where to touch them," she said. For example, when Winston-Salem's Piedmont Federal Savings & Loan was opening a branch in April, Woodbine arranged a student art contest. Students from three high schools were invited to submit art, which was displayed in the new branch. They, plus their parents, relatives and friends, were invited to stop in at the branch and look at the art, and ultimately vote for the best pieces. The winners will hang in the branch permanently. The contest not only got people into the new branch, it also ties into Piedmont Federal's "hometown" brand. Much of the bank's 38. advertising focuses on the idea that the company doesn't sell its mortgage loans, as many lenders do, Hall says. Opportunities, challenges re-examine the concept of ad clutter propose a new analytical framework for online ad clutter that incorporates the differences between the online and offline media environments differentiate the physical presence of ad clutter and perceived ad clutter explain perceived ad clutter by consumers attitudes towards advertising in general, and in specific media contexts and task orientations, to form an integrated model of ad clutter. Time delay affects perceived online ad clutter level: a user perceives lower ad 39. clutter when the display of online ads is delayed or non-compulsive, such as static banner ads, than when their display is immediate and compulsive, such as pop-up ads. Editorial page type affects perceived online ad clutter level: a user perceives higher ad clutter levels on navigational web pages than on destination pages. The location and size of ads affects perceived online ad clutter level: centrally located ads or large-sized ads in an editorial unit lead to higher perceived ad clutter levels than ads shown in other locations and at smaller sizes. The frequency of ads affects perceived ad clutter level: the higher the number of ads on a web page in online media, the higher is the consumer-perceived ad clutter level 40. When consumers perceive a high level of advertising clutter, online negative advertising effects will occur, such as advertising avoidance, advertising memory reduction and perception of lower-quality editorial content. Facts and figures 30% of adults immediately leave website having clutter of advert 75% of them who stay on website pay less attention 52.6% of respondents are in favor of advert 27.3% agreed on single advert per page 25.3% agreed on 2 advert per page 41. 56.4% of women accepted negative impact of clutter advert as compared to male counter parts 48.5% Women who most likely to quite website 32.1% as compared to male 27.3% Age group 18-24 has negative impact of 46.8% of advertising clutter above the age 55 negative impact is 63.2% Making of an Advertisement Set the stage Come up with a catchy, snappy tagline. Keep it short and sweet; the average product needs no more than six or seven words. If you say it out loud and it sounds like a mouthful, edit it down. Whatever it is, it should grab the consumer's attention and convince him or her 42. that your product is different from everyone elses. o Rhyme Do you Yahoo? o Humor Dirty mouth? Clean it with Orbit chewing gum! o A play on words Every kiss begins with Kay o Creative imagery Yellow Pages: Let your fingers do the walking o Metaphor Red Bull gives you wings o Alliteration Intel Inside o A personal pledge Motel 6: We leave the light on for you o Dry understatement Carlsberg beer has a big sign in downtown Copenhagen that reads, Probably the best beer in town. Avoid the same old. The key to a good advertisement is being memorable. The 43. second your ad borrows a familiar advertising phrase (for example, new and improved, guaranteed, or free giftis there any other kind?), it becomes interchangeable with thousands of others. Whats more, listeners are so used to ad clichs that they dont even hear them anymore. (Just listen to Tom Waitss Step Right Up to hear how meaningless clichs sound when strung together.) Startling the reader into paying attention is especially useful if you have a lot to say. For example, this long, environmentally-oriented announcement wouldnt turn many heads if it werent for the unusual, confrontational tagline; if the reader wants to get the joke, she or he has to read more. 44. Know how to walk the line between controversial and entertaining. Pushing the limits of good taste to help your ad grab attention is common practice, but don't go too faryou want your product to be recognized on its own merits, not because it was tied to a tasteless advertisement. Use a persuasive technique. There are tried and true methods that advertisers rely on to make their ads stick. Common sense: Challenging the consumer to think of a good reason why not to purchase a product or service. 45. Humor: Making the consumer laugh, thereby making yourself more likeable and memorable. This pairs especially well with refreshing honesty. Not the most successful business in your class? Advertise that your lines are shorter. 46. Repetition: Getting your product to stick by repeating key elements. Jingles are the most obvious way to do this, but unless theyre very good, theyre also the most annoying. If you go this route, brainstorm a more creative, less obvious repetition technique such as the one that was used in the Budweiser frog commercials (bud- weis-er-bud-weis-er-bud-weis-er). Exigency: Convincing the consumer that time is of the essence. Limited-time only offers, fire sales, and the like are the 47. commonest ways to do this, but again, avoid meaningless phrases that will slip under your customers radar. Know thy customer. Even the cleverest ad wont work if it doesnt appeal to the target audience. Are you looking for a certain age group? Do you want people with a set income level? Or maybe you're looking for a population with a special interest? Whatever it is, try to get a clear picture of who your dream consumer is and why he or she would be interested in what you're advertising. Keep your target consumer in mind when you're developing the tone and look of your 48. ad. Remember: it needs to appeal to your audience as much as possible and avoid offending or talking down to them. Kids tend to be over-stimulated, meaning you will need to grab their attention on multiple levels (color, sound, imagery). Young adults appreciate humor and tend to respond to trendiness and peer influence. Adults will be more discerning and respond to quality, sophisticated humor, and value. what you're advertising. Think of it this way: the ad should be a bridge between what your dream consumer wants or needs and your product. 49. Brainstorm about what your consumer would want, as well as some of the suggestions below. Don't edit your ideas immediately, just write them downyou'll have plenty of time to pick over them later. Ask yourself if your product or event is aspirational. Are you selling something that people would buy in order to feel better about their social or economic status? For instance, you might be selling tickets to a benefit gala that is designed to feel elegant and luxurious, even if the ticket price is well below what most 50. wealthy people would be able to pay. If you are selling an inspirational product, try to make your advertisement exude an air of indulgence. Determine whether or not your product is for practical means. If you're selling something like a vacuum cleaner, designed to perform common tasks or make life easier for the consumer, spin it in a different direction. Instead of emphasizing luxury, focus on how the product or event will provide relaxation and peace of mind to your consumer. Focus on the most appealing aspect of your product. Why should it entice people? What sets it apart from other similar products? What do you like best about it? These can all be good starting points for an advertisement. Is there an unmet desire or need, any frustration in the mind of your consumer, that 51. will create a market for your particular product? Assess the need gap that exists for the product or service Try to make sure your advertisement will age well. You don't want people looking back at your ad in 10 years and being shocked at its content. For good examples of how common social tropes can look terrible in older ads, search for cigarette or diet pill ads from the 1950s and '60s. 52. Make sure all the relevant information is included. If your consumer needs to know your location, phone number, or website (or all three) in order to have access to your product, provide this information somewhere in the ad. If you're advertising an event, include the location, date, time and ticket price. Decide where and when to advertise. If you're advertising for an event, start promoting it at least 6 to 8 weeks beforehand if it's going to accommodate more than 100 people; if it's 53. less than that, start advertising 3 to 4 weeks ahead. If you're advertising a product, think about the time of year when people are more apt to buy what you're selling. For instance, if you're promoting a vacuum cleaner, it might sell better in the spring, when people are undertaking spring cleaning. Designing an advertisement Choose a memorable image. Simple but unexpected is often the best route to take. For example, these stark, colorful silhouette ads that 54. barely even show the iPods theyre peddling couldnt get much more straightforward, but because they dont look like any other ads, they are instantly recognizable. Distinguish yourself from your top competitor(s). A burger is a burger is a burger, but if you let yourself think like that, youll never make your sale. Use your ad to highlight your products advantages over that of your competitors. To avoid lawsuits, keep to 55. statements about your product, not theirs. For example, this Burger King ad mocks the size of the Big Mac while speaking the literal truth: that is a Big Mac box, after all, leaving McDonalds no legal ground from which to retaliate. 1. Design a business logo (optional). A picture says a thousand words, and if a logo is effective enough, it can render text unnecessary (the backwards Nike checkmark, the Apple bitten apple, the McDonalds arches, the Chevron shell). If you're running a print or television advertisement, try to develop a simple, appealing image that will stick in the minds of viewers. Consider these points: o Do you already have a logo? If you can, think of fresh and creative ways of reimagining it. 56. o Do you have a commonly-used color scheme to work with? If your brand is instantly recognizable by the colors in the ad or the logo, use this to your advantage. McDonalds, Google, and Coca-Cola are good examples. Find a software or technique creating your advertisement. How you create your ad will depend on which medium you're using to advertise. Here are some basic suggestions to get you started: If you're making a small-scale print ad (such as a flyer or magazine advertisement), try using a program such as Adobe InDesign or Photoshop. Or, if you're looking for a free option, you can use GIMP or Pixlr. 57. If you're making a video ad, try working with iMovie, Picasa, or Windows Media Player. For an audio ad, you can work with Audacity or iTunes. For a large-scale print ad (such as a banner or billboard), you'll probably have to contact a print shop to get the work done. Ask which software they recommend using. Testing an advertisement Tell customers to ask for someone by name. If customers have the option of calling your establishment in response to an ad, for example, direct them to ask for Mike. On another ad, direct them to ask for Laura. It doesnt matter if Mike or Laura even exist; what does matter is that the person taking these calls records how many 58. people ask for whom. This is a free way to track which ads are bringing people in and which arent. Direct customers to different URLs on your page. Set up your website to have a different landing page for each ad youre testing, then track how many people go to which. Again, this is a simple, unobtrusive way to see which strategies draw the most people. Offer coupons in different colors. If couponing is part of your ad strategy, make sure each ad has a different color coupon so that you can tally them separately. Gauge the overall response to your ad. Did sales seem to spike after your ad, or did they drop? Did your ad contribute to the new numbers, or were they due to forces out of your 59. control? Evaluate how well your first effort went and take a lesson for next time Socio-Cultural-Ethical Issues in Advertising Social Role of Advertising Advertising, like public relations, is an aspect of corporate organizational life in an open society. By definition, it is associated with market choices in which citizens and consumers are able to freely select among various competing brands and products, services and ideas. Advertising offers a variety of benefits. Benefit to Consumers. Good advertising is focused on consumer wants and needs, and it relies on communication developed from the consumers perspective. It helps consumers learn about and understand various alternatives 60. in the marketplace so they can make rational and informed decisions. Benefit to Business. Advertising helps businesses translate goods into profits by creating new customers and maintaining existing customers for those goods and Sometime advertising helps to create new uses for existing products. Benefits to Society. In addition to stimulating the overall economy through increased production and sales, advertising also can stimulate people to become more informed and discerning consumers, to support social causes, and to act on behalf of religious, cultural, environmental or other issues. Ethical Issues in Advertising Advertising has attracted much social criticism. It is difficult to challenge criticism of unethical 61. advertising, but it is important to understand the difference between ethical and unethical practices. Here are some of the common criticisms of advertising and the counter- argument based on ethical advertising practices. Criticism: Advertising persuades people to buy things they dont want. Counter-argument: Ethical advertising informs people about things they might want if they knew about them, but it is unlikely that advertising can persuade people to buy anything they dont want. Criticism: Advertising persuades people to buy things they dont need. (The formal terms for this is acquisitiveness, sometimes called conspicuous consumption.) Counter-argument: As society moved beyond subsistence-level existence, most consumer purchases are not absolutely necessary. But 62. social and economic development brings with it the ability of people to make discretionary purchased based on their wants rather than their needs. This is a result not of advertising but of economic advancement. Criticism: Advertising exaggerates the differences among products. Counter-argument: Ethical advertising points out the differences so that consumer can make informed decisions as to which product best serves the consumers needs. If there are only small differences among products, this is the function of manufacturing and the marketplace, not of advertising (which does not design products but rather promotes their use). Criticism: Advertising favors existing brands because of the high cost of launching new products. 63. Counter-argument: This is not a function of advertising but rather part of the entire economic structure, in which the launching of new companies and organizations, as well as their products and services, is both difficult and expensive. Criticism: Advertising raises the price of products. Counter-argument: Although advertising adds to the cost of some heavily promoted consumer items, it also can create mass markets for products, thus reducing manufacturing and distribution costs, ultimately saving money for the consumer. Criticism: Advertising promotes questionable products and services. Counter-argument: Critics sometimes point to advertising for gambling, harmful products such as cigarettes, products or services of a personal 64. or sexual nature. However, every advertised product or service is legal in the geographic area in which it is advertised. The criticism against such advertising is misplaced; critics instead should focus on changing laws that allow such products or services to remain legal. Criticism: Advertising presents messages of questionable taste. Counter-argument: Undoubtedly this is true in some situations, which advertising professionals view as inappropriate for a particular audiences as well as unethical in a given social situation. However, effective advertising is targeted to a particular audience and tailored to its interests, tastes and needs, so advertising that is confined to its intended audience is unlikely to be considered offensive or in poor taste by that audience. The ethical as well as practical 65. challenge is to limit the exposure of advertising to its intended audience. Criticism: Advertising uses sex appeal to promote products. Counter-argument: This is related to the previous criticism. Sometimes this is true, though advertising interested in both ethics as well as effectiveness will confine the use of sex appeal to those audiences and those cultures that are not offended by such appeals. In this and other content appeals, advertisers say that they dont change culture and taste but rather reflect it, though research suggests that advertising both reflects and impacts social standards. Criticism: Advertising marginalizes and stereotypes people. Counter-argument: Because it operates essentially in one-page or 30-second formats, 66. advertising must simplify messages. But stereotyping and simple images are not necessarily bad. Increasingly ads are being aimed at specific demographic groups, such as senior citizens, ethnic minorities, and others. Such ads tend to portray people in those groups in positive and respectful ways. Criticism: Advertising aims at vulnerable children. Counter-argument: Some ads are aimed at the demographic group of children. In the past, some irresponsible advertisers exploited a childs naivet and ignorance of consumer rights and practices. However, both internal standards within the advertising industry and external regulations are leading advertisers to treat children fairly, and educators are helping children learn to be better consumers. In the 67. United States, the Childrens Television Act passed by Congress in 1990 and amended in 1996 is an example of the increasing standards about advertising to children. Criticism: Political advertising increasingly is negative and mean-spirited. Counter-argument: The content of political advertising is set by the politicians and their supporters. Undoubtedly political advertising sometimes is quite negative, but this is not the fault of advertising but rather of a political/electoral system that places no restraints on the statements and claims that political candidates can make and that ultimately are endorsed by voters. Ethical issues within advertising often are addressed by codes and standards prepared in various countries. Some national codes are 68. quite specific. For example, in Malaysia, a deeply religious Islamic country, the advertising code bans advertising of alcohol and blue denims, and it restricts the use of sports-related clothing such as swimming suits to athletic scenes with no close photography. Japan calls for advertising to be honest, contributive to a healthy life, scientifically accurate, unbiased, dignified and educational. In Hungary, the code bans ads that are misleading, that use insults or misuse religious symbols, or that promote fear or mistrust among people. International and Intercultural Issues in Advertising Advertising has become a global activity, spanning national boundaries and cultural borders. This began significantly in the 1940s when American and European companies 69. began expanding their products into other countries and when, at the same time, advertising agencies began establishing foreign branches. There is also caution against oversimplification in approaching nations and cultures. Language alone does not make a cohesive cultural bond. Within Hispanic culture, for example, there are significant differences among Spanish-speaking people in Spain, Argentina, Mexico, Puerto Rico and the Philippines. Likewise, geography is not the only indicator of social unity. The Middle East, for example, is not a single advertising market but rather a variety of markets with some common elements. Advertising concepts and deliveries that might work in Egypt or the United Arab Emirates may not be appropriate in Saudi Arabia or Jordan. 70. International media buying may be global with some level of advertising on a global basis; pan- regional with buys concentrated in specific large regions such as Asia or South America; regional, with buys associated with a few neighboring countries; or local, with media purchased in specific countries. Some U.S.- based companies such as Procter and Gamble, Coca-Cola, Ford and McDonalds spend about half of their advertising budgets outside the U.S. Internationally, each of the top 10 advertising agencies operate in an average of 53 nations. Advertising in an international arena brings with it several special issues. Some of these concerns are related to ethical standards for advertising in various countries. Others are more reflective of the social or corporate environment associated with different cultures. 71. Business concerns reflect the unique way that business is conducted in particular areas. For example, American and British business meetings between advertising agencies and clients generally include small talk in order for the parties to get acquainted. In Holland, however, meetings are kept to a strict schedule with little small talk. Meetings in Mexico and Malaysia may be quite informal, often held at the hosts home. Creative concerns reflect the differences in cultures. For example, most international advertisers warn against the use of humor, which is viewed differently in various cultures and which simply does not translate well between both languages and cultures. Likewise, the social interpretation of color varies among cultures 72. Legal concerns grow from restrictions against certain products such as tobacco or alcohol, or the use of children in advertisements. Media use patterns lead advertisers to focus on how people in different countries use the media. Note, for example, the significant differences in the use of advertising dollars in various media. Newspaper Television Magazine Germany- 45% 23% 24% US- 34% 39% 12% Arab states 2% 87% 10% Japan 27% 45% 10% Media concerns also deal with media use in various countries. In Japan, for example, daily television viewing is eight hours, compared with three hours in Britain. 73. Industry observers note that advertising spending is rising globally. Arab spending on advertising, for example, has been increasing in recent years. The Arab Research Center reported that combined Arab spending reached $2.3 billion in 2000, led by the Gulf Cooperation Council states of Kuwait, Saudi Arabia, Qatar, Oman, Bahrain and the United Arab Emirates. Operation of an advertising agency Advertising agencies are structured to integrate the various services and tasks involved in creating and placing advertising. Large agencies often have big staffs and departments assigned to develop the strategy, conduct research, create the ads, and select the media. Many of the leading agencies are owned report to international conglomerates. Smaller, regional 74. agencies are typically independently owned and operated; yet provide the same fundamental tasks of account services, creative and media. Account Services The account services (or client services) department members are accountable for maintaining a strong and productive relationship between the agency and its clients. The account team develops the advertising strategy, approves the selection of media to place the advertisement, and oversees the budget. Titles rank (in progression) from account executive (AE), to senior account executive, vice president account services to senior vice president. 75. Creative Services The creative department is composed of writers and art directors. It is headed by the creative director in most agencies, or by an executive creative director in large agencies. The department is composed of teams of copywriters and art directors who are assigned to work on specific accounts. The teams develop ideas based on the media to be used (television, radio, online, billboards, etc.). They incorporate input from the account services team, prepare final layouts, and present the work to the client. Production Services Once the client approves the work it goes into production. Production services are generally divided into two divisions --- print 76. production and broadcast production. Print production finalizes layouts and materials for newspapers, magazines, billboards, and online publications. The broadcast production department concentrates on radio and television commercials and producing videos used for online advertising. Production services members in both departments work closely with the creative department. Marketing Research This department conducts research to define the target audience in terms of buying behaviors, interests, opinions and attitudes. Data and findings are used by the account services team to develop the strategy and by the creative team to develop and design the communications that effectively resonate 77. with the target audience. Research techniques include focus groups, surveys and questionnaires. Ads are often tested on prospective consumers prior to production. Media Planning and Buying Media planners make recommendations on the best media to use to reach the target for the advertising. For example, they might recommend outdoor billboards to reach working moms to advertise frozen pizza. The media buyers would then negotiate with companies to get the best rates and locations for billboards to place the ads for the pizza. Planners and buyers collaborate and work closely with the account services and marketing research teams. 78. Organizational Structure of an Advertising Agency 1. The Advertising Agency 2. The Full Service Advertising Agency The full service agency typically has four main departments or functions: Account Handling Creative Services Media Department Production 3. Account Handling Manages the relationship between the Client and the Agency Within the Agency represents interests of Client Represents interests of Agency when talking to the Client Usually responsible for finding and developing new business 4. Account Handling Key roles: Account Director Account Planner Account Executive / Account Manager 79. 5. Account Director Usually board level director Expertise in a product or market sector Strategic overview of account Regular contact with client at director level 6. Account Planner May or may not be separate role from Account Director Brand Manager type role developing strategies for account over the long term Should have a direct role in helping to develop creative and media strategies 7. Account Manager or Account Executive Day-to-day liaison and running of account Daily contact with client marketing dept Co-ordinates agency departments creative, media, production Fulfils short term objectives May work on several accounts Responsible to Account Director 8. The Creative Department Creates ideas, concepts and sometimes finished art for 80. advertising, literature and other marketing materials Should represent point of view of the consumer May liaise with outside suppliers such as illustrators, photographers, writers, web designers and film producers 9. The Creative Director Should be a board level director Responsible for quality of agencys creative output Selects which creative solutions should be presented to client May work on own accounts as well as supervise department 10. The Creative Team Copywriter and Art Director team Produce the initial concept is response to Creative Brief Probably work on several accounts Some agencies team Account Handler with Creative Team to form an Account Team Responsible to Creative Director 81. 11. The Media Department Most agencies today use an outside consultancy for the media requirements. Three functions need to be addressed. Media Research Identify which media reach your target audience most effectively Media Planning the best media mix and timings to achieve the clients marketing objectives Media Buying Getting the best value for money out of the clients media budget. Involves considerable negotiating skills 12. The Production Department Ensures that finished artwork is delivered to the appropriate media by the deadlines May also source specialist materials and suppliers e.g. specialist printers and paper May include a Traffic Department which progresses jobs through the agency to ensure jobs are completed on schedule May 82. include Studio Manager, Mac Operators, Finished Artists etc 13. Other Marketing Services Each agency is unique and may offer other specialist service departments. Some of the most common are: Public Relations Direct Marketing Recruitment Advertising Industrial or Business to Business Advertising agency and advertiser An Advertising Agency is selected by a manufacture or trader to present the advertisement on his behalf. The advertiser who does not have the capacity of carrying out advertising activities take the help on services of advertising agencies who are specialized in those fields. 83. MEANING AND DEFINITION The advertising agency carry out the activity on behalf of their client against remuneration called fees. They conduct market research, consumer research, product research etc. They advice the manufacturer on product design or package design, pricing of product channels of distribution. Besides, they advice on the market condition from time to time. Advertising agency conduct the production activities of visualization, layout, illustration, headlines, copy etc. They also help in the selection of proper media and the frequency at which the advertisement should be presented. Thus, the advertising agency relieves the burden of the trader or manufacturer of the responsibility of advertising, production and distribution. Definition : 84. The American Association of Advertising Agencies (AAAA) defines an advertising agency as : An independent business organization, composed of creative and business people, who develop, repair and place advertisements in advertising media for sellers seeking to find customers for their goods and services. SERVICE RENDERED BY AN AD AGENCY The main function of advertising agency is to see that its clients advertising leads to greater profits in the long run. The agency thus plans, prepares and places with advertising with the objective. The main function of a full-service advertising agency are as follows : Selection of Clients : The first and the foremost function of an advertising agency is to contact and select clients who are desirous of advertising their products, services or anything 85. which they want to sell. The preference in contacting and choosing the clients is given to those firms which have sound values, able management, efficient operative products and services. The financial position, size and nature of business, efficient management and operative products etc. must be given due weight. 2. Media Selection : Media selection is another major function of the advertising agency. In making a media selection several factors such as cost, circulation, population which it serves, audiences, nature of the product, types of customers and above all needs of the clients should be kept in mind. 3. Advertising Planning : The third as well as the major function of advertising agency is the advertising planning for its clients. For this 86. purpose, the advertising agency requires a detailed knowledge of the firms products, its advertising history, market conditions, channel of distribution, knowledge of competitors products and their advertising techniques, field to be covered, nature and type of consumers etc. Next planning job is to decide about the advertising medium in which the advertisement is to appear. The advertising message must be adapted to the medium in which it is to appear. 4. Creative Function : The creative function starts when the planning function ends. It includes the preparation of an advertising copy, layout, illustration, photographs, advertising messages, theme of advertisement etc. These functions are performed by a 87. varied group of creative people including writers, designers, artists, producers, photographers and graphic art specialists employed by the advertising agency. 5. Research Function : It is the fifth major function of an advertising agency. It supports the decisions taken in the media and creative areas. In this connection the advertising agency gathers and analyse actual information about the product, extent of market, competitors strategies and buyers habits etc. that may help the creative personnel to make the advertising copy more attractive and effective. 6. Approval of the Client : As soon as the advertising copy etc. are prepared, the next function of the advertising agency is to show the copy to his client and obtain his approval. In case if any changes are suggested by the client, 88. the same may be incorporated and thus the final approval should be taken from the client. 7. Marketing Function : The advertising agency also performs marketing functions such as selecting target consumers, designing products and packages, developing channels of distribution strategy, determining prices and rate of discount etc. It gives useful advice to its clients with regard to the nature and trend of the market conditions. Accordingly, the client produces goods keeping in his mind the prevailing conditions in the market. 8. Evaluation Function : Simply drafting advertising copy and handing over the same to the media is not enough. The next major function of the advertising agency is to have an exhaustive evaluation of the advertising effects for the benefit of his client. In case of any 89. deficiency, necessary suggestions should be given and the same be made effective after approval of the client. 9. Coordination Function : The last but not the least important function of the advertising agency is to establish effective coordination with clients sales force and distribution network to ensure the long running success of the advertising campaign. Each time the advertising agency contacts the client regarding advertising media to be used and the number of times the advertisement is to be repeated after giving effect to changes, if any, as suggested by the advertiser. AGENCY SELECTION CRITERION Following are some points to be taken in account while selecting the advertising agency: 90. 1. Suitability : The advertising agency which suits the requirement of manufacturer or trader is selected depending upon the type of advertisement, location of agency, credit policies, etc. Normally, an agency which is located near the advertisers place is selected. This helps in approaching the agency. Secondly, the size of agency in terms of personnel, projects, and services provided is considered. Thirdly, the connections and relations with the various media. Fourthly, the policies like conservative policy, outgoing policies etc. are taken into account. Finally, the advertising also considers whether the agency has competitors account or not. 2. Facilities and Services Provided : Some agencies have modern facilities of photography, type setting, printing, filming etc. 91. The agencies which provide maximum services with minimum costing preferred. 3. Imagination : Imaginations and creative skills of the personnel of agency is duely considered. Creativity in photography, layout, copy writing, media etc. creates an identity and unique for the products and services of the advertiser. 4. Past Record : Past records of the agency in terms of number of clients, effectiveness, credit reputation etc. helps in selecting the agency. The advertiser enquires about the agencys timeliners, punctuality, past record helps to show whether the agency is reliable or not. 5. Reputation : The reputation of the advertising agency helps in selection. The popularity of the agency depends upon timeliners, successful 92. presentation, good relations, prompt services etc. 6. Management : Proper selection of advertising agency depends on the ownership and management and their policies. Their policies may be either conservative or dynamic which influence the selection. 7. Rates Charged : The advertiser considers the rates charged by the agency. Normally, the rates depend on reputation, facilities provided techniques adopted etc. Therefore, an advertiser will select such agency which will provide facility according to his requirement and which suits its budget. 8. Size of the Agency : The size of the advertising agency must be considered. The larger the size, the more it is preferred, however, 93. at times, small is beautiful because a small agency may give more attention to its clients work. AGENCY CLIENT RELATIONSHIP Agency client relationship must be that of mutual trust and confidence. The perfect relationship results in optimum advertising effectiveness at a reasonable cost and reasonable compensation for the agency. It is characterized by continuous and complete two way communication between individuals in the two organizations in an atmosphere of mutual trust. Interdependency of the advertiser and the agency helps in creating effective advertising as part of the companys marketing effort. What the clients have to do? : 1. Treat the agency with courtesy at all times. 94. 2. Provide all possible information about the product that is to be advertised and about the organization. This facilitates the agency to do their job much better. 3. Not unnecessarily bargain for the fees charged by the agency. 4. Motivate the agency to do a good work. Agency charges such as media bills, fees and other costs must be paid well in time. In no way the client should wait for the agency to remind of payment. 5. Not change the agency for the sake of change. 6. Approve the proposals submitted by the agency. The client should not argue for the sake of arguing. 95. 7. Give sufficient time to the agency to develop a good advertising campaign. The client should not put the agency unnecessarily in deadline crisis. 8. Reduce disputes to a minimum. 9. Finalise well in advance the charges for a particular plan or campaign. 10. Up-date the agency with any information from his side that would help the agency to serve the client better. Yet, whenever something goes wrong, the brunt of criticism comes on the agency and many times the relationship terminates. Many a times, there is a change just for the sake of change. 96. Advertisers prefer an agency that is currently popular in the market, such as the Lintas and the Everest in India. Sometimes the agency itself voluntarily resigns from an account on some ground or the other. There may be different puritans, opinions, thoughts, etc., or the agency may be wanting to accept another competitive account. Usually an agency keeps on abandoning consistently losing accounts, i.e. those advertisers who make losses over the years. It may also resign when a client becomes over- bearing. May creative people in the field of advertising do not like to be simply dictated by 97. their clients about their own professional work. If things go too far, such clients may be abandoned. However, client turnover is not a healthy practice as it puts both the parties to a loss. But under the unavoidable circumstances, there may be no other alternative but to turnover too another client. METHODS OF REMUNERATING AN ADVERTISING AGENCY The method of remunerating the advertising agency has been a subject of much discussion now-a-days at almost all the meetings of advertising agency associations and advertisement clubs. There 98. are basically the following three methods of remunerating an advertising-agency in practice in our country : 1. Commission Method : This is the oldest, and most common method of remunerating an advertising agency. Under this method the advertising agency has a fixed commission by the media owners on the advertising bill for the advertising space bought by the respective advertising agency. The fixed rate of commission is 15% in India as well as in U.S.A. Though the rate of commission varies from media to media and from country to country but the rate 99. of 15% is almost universal. For example, an advertising agency places a full age advertisement in a magazine at an agreed charge of Rs. 50,000. The magazine will bill the agency for Rs. 50,000 less 15% i.e., Rs. 42,500 net. The advertising agency will bill the advertiser for Rs. 50,000 (cost of advertisement charged by the media). Thus the difference of Rs. 7,500 will be treated as the remuneration of the advertising agency. Generally, a cash discount @ Rs. 2% is also offered by the media for prompt payment within a stated period. This cash discount is usually passed on to the 100. advertiser on similar terms by the advertising agency. The general criticism of this method is that the advertising agency is always tempted to recommend expensive media in order to draw a higher remuneration. 2. Fee System : The fee system came into effect following a controversy between the advertiser and the advertising agency. The former argued that 15% commission was too high a rate, whereas the agency took the stand that it was unremunerative in view of many services rendered to the client by the advertising 101. agency. Under fee system, the agency payment consists only the service charges which are to be computed on the basis of cost plus system. Under the system a certain fixed percentage (flat rate) on cost may be charged from the client as fee to be paid to the agency along with the bill. This system enables the advertising agency to make fair profits on services rendered by it and, in turn, the advertiser pays for what he gets - nothing more and nothing less. The fee system is generally used in radio and televisionadvertising. 3. Service Charges : Under this method, service charges are 102. added to the cost of materials and services bought by the advertising agency for the client in art work, photography, typography, plates etc. Normally, it is cost plus 15%. In actual practice one of the above methods of compensation or a combination of the fee-and-media- commission plan or a method by which commission granted by the media are credited against profession fee, is used. When a new product advertising is involved, the advertising agencies are remunerated on a special fee basis. 103. CHANGING ADVERTISING AGENCY OR CLIENT TURNOVER Meaning : When an advertiser leaves one advertising agency, and shifts to another, this practice is termed as client turnover. Highly frequent rate of client turnover results in great loss to advertisers. When an agency is changed the advertiser suffers on two counts, on having to do away with the old agency and another with the new one. It is very much like an employer suffering financial and other kinds of losses on account of high rate of labour turnover in his enterprise. 104. Productivity is the main factor of loss of the employer as well advertiser. Just as the old employees experience with organization is an important factor in policy decisions and implementation. Similarly the old agency experience in advertising the company product lines is a total loss in case of turnover to another agency. The old agency must have already collected considerable data about the company product, the market, the nature and the extent of competition the consumers and host of other subjects. Such a mass of information and data cannot be easily transferred to the 105. new agency. Researchers have identified as many as forty factors that influence the sale of a product, advertising being one of them. When an advertiser leaves one advertising agency and switches over to another, it is known as changing of advertising agency or client turnover . The tendency to change advertising agencies now and then is most common amongst many advertisers. This may result in an reduction of the effectiveness of their advertising campaign. The main reason for changing the advertising agencies may be summarized as under : 106. 1. Dissatisfaction to the advertiser from the services of the advertising agency. 2. The advertiser is interested in a new criteria with which the present agency is not familiar. 3. The client and agency perceive the advertisement strategy in a drastically different manner. 4. Change for the sake of change. 5. Lack of coordination between the top executives of the client and the agency. 6. Loss of confidence. 7. Staff changes also lead to change of advertising agency. 8. Perceived unreasonabless of the other party. 9. Politics and nepotism also result in change of advertising 107. agency. Changing of advertising agency is not always fruitful. The loss might be more as compared to gain on account of the change. In the first year the new agency has to digest the problems of the advertiser, the nature of the products and the competitive situation that exists. The first year of change may be referred to as the study year. Thus change of agency amounts to leaving one which is quite familiar with the advertiser s problems and going to a stranger at least as far as the advertiser is concerned. In case of any dissatisfaction with the existing agency, it is better to find out and 108. discuss it with the top management team of the agency so that the misunderstanding, if any, may be removed and also to give a chance to the agency for improving its services. The selection of an advertising agency should be made carefully so as to avoid a subsequent change. It should be kept in mind that the agency advertiser relationship is like the physician- patient or the lawyerclient relationship. The patient pays fee to the physician whether he gets relief or not. The lawyer too takes fee, irrespective of the judgement in the case. However, in both the cases they perform 109. their duties faithfully and therefore why make a change ? This fact should be given due weight while taking any decision to change the advertising agency. Role of Advertiser 1. To differentiate the product from their competitors 2. To communicate product information 3. To urge product used 4. To expand the product distribution 5. Too increase brand preference and loyalty 110. 6. To reduce overall sales cost 7. Creates new demands To differentiate the product from their competitors An important function of advertiser is the identification function, that is, to identify a product and differentiate it from others; this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products. The identification function of advertising includes the ability of advertising to differentiate a product so that it has its own unique identity or personality. 111. There are four additional ways to differentiate your offering from the competition and increase your differentiation: leveraging the brand, innovating your service offering, as well as designing product and packaging in a way that creates an aesthetic beyond the functional. None of these methods are expensive. All are ways that can increase your perceived value to the customer and increase your market share. Example: GARNIER FRUTICS (shampoo) the shampoo bottle have the different color from all other shampoo available in the shelf. The bottle of the shampoo is unique from all others. Example: apple laptops make them different from others as the WHITE color and logo of APPLE on back of the screen. To communicate product information 112. Another function of advertiser is to communicate information about the product, its attributes, and its location of sale; this is the information function. Product information communicated to the customers in manner that meets their information needs. Most consumers tend to discount the information in advertising because they understand that the purpose of the advertising is to persuade. Making an advertising message believable is not easy; though often it is sufficient to make the consumer curious enough to try the product. Such curiosity is often referred to as interested disbelief. Advertisers use a variety of devices to increase the believability of their advertising: celebrities or experts who are the spokespersons for the product, user testimonials, product demonstrations, research results, and endorsements. 113. Example: Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing the consumers about the benefits of it. That how the old women can look younger by using it continuously. It will make you fair cream plus it reduces freckles plus it can be used as a sun block as well it will make you look young. To urge product used The third function of advertiser is to induce consumers to try new products and to suggest reuse of the product as well as new uses; this is the persuasion function. The basic function of advertiser is to provide constant reminders and reinforcements to generate the desired behavior the advertiser wants from them. This is a particularly effective 114. function in the long run as reminders and reinforcements register in the consumers' minds, becoming the base on which they shape their future decisions. Sampling in the way to urge the product using. Example: Fair and lovely as we know that it will make a girl look fair and prettier in 4 weeks. Example: Neutrogena acne treatment cream will remove your pimple is 24 hours. NEUTROGENA say no to pimples!! To expand the product distribution When the consumer comes to know about the particular product from the advertisement he/she wants to try that new product. They go to shops to buy the product; if the new product is not available in a shop then the shopkeeper 115. consults the distributor to make that product available in his shop. It is basically to provide the product all over market. It is necessary to make sure that product should be accessible to everyone. Availability of product effect the distribution. Example: Wateen telecom and Motorola Partner to Expand Distribution of Videoconferencing Product Line. So as many people are getting to know about this facility they are running towards the franchises to avail it. So for that Wateen should expand their distribution all around the cities. Accessibility is major factor for successful product To increase brand preference and loyalty 116. Marketing is a moving thing. As your needs are changed your preferences are changed. When the product delivers the promised quality, service and value, it creates satisfied customers who become instrumental in spreading a favorable word-of-mouth. Satisfied customers also develop brand preference; each product features and uses are written on the product. Example: 99% girls who are not married will not look at the ad of pampers or any milk powder for children but when they will get married their interest will automatically move towards such ad' Brand loyalty Brand loyalty is a long-term customer preference for a particular product or service. Brand loyalty can be produced by factors such as customer satisfaction with the performance or price of a 117. specific product or service, or through identifying with a brand image. It can be encouraged by advertising. People often make purchasing decisions based on how a brand makes them feel emotionally rather than based on quality or other objective evaluations. If "Just Do it" strikes a chord with an athlete, he'll buy Nike; the decision may have little to do with quality. Example: For instance, when one buys a tube of Colgate toothpaste and finds it ok, one will not have to spend any valuable time on looking for other toothpaste brands. To reduce overall sales cost When a product is selling you have to teach the people about the product. 118. Like if we would advertise through newspapers, TV, broachers and internet, it would cater huge sum of masses and if you do individually it would be more costly and time consuming. Example: Coke targets their consumers on a very large scale through mass media whereas Makka cola advertise on smaller scale or go door to door to advertise their product. Creates new demands Advertising have to create new demands they should educate the people about more and more new things coming up in the market. Each year new products, including line extensions and new brands are introduced into groceries and drugstores. Example: Wateen telecom is offering wireless internet chips, video conferencing and WIMAX 119. services as they are introducing new services in market its creating new demands Agency Setup Agency set up of highly personalized nature of the advertising business depends on effective functioning of all the departments equally. , it is difficult to say which types of advertising agency fulfill A to Z demand of client and would it be suitable for it. Many agencies are organized according to the personal preferences of the management. Most large and medium sized agencies followed one of the two systems, the group system and the departmental system and some combine them. 1. Group System: Under this system the writers, artist, media planners, buyers and other specialists are assigned to a group of accounts. 120. All are under the general direction of an account executive or group head. 2. Departmental System: Under the departmental system, same type of specialists are grouped in the same department. For instance, all the writers in the copy department, all artists in the art department and so on. 10.7.2 Organization and Working of an Advertising Agency : Since advertising agency is an independent business organisation, it may be in the form of a sole proprietorship, partnership or joint stock company form of organisation. However, an advertising agency of reasonable size may naturally adopt the Joint Stock Company form of organisation. In such a case, it may have a Board of Directors under the Managing Director. Under the Board of Directors we may have General Manager and the General 121. Manager may have a number of Departmental Managers under his control. The number of Departmental Managers will vary from one advertising agency to another advertising agency as per the nature and size of business. The organisational structure of a large sized or reasonably sized advertising agency is as follows: Departments of an Advertising Agency The organisation of an advertising agency may be divided in various departments entrusted with a specialised function to be performed under each departmental manager who is specialised in the task allotted to him. The main departments of a large sized or reasonably sized advertising agency are as follows : 1. Contact Department : Contact department works under a senior executive officer known as 122. the departmental manager. The main function of this department is to contact the new clients on the one hand and maintain the existing clients on the other hand. A number of contact men work under him. They function as the liaison people between the agency and the client. The contact men represent the agency when in the advertiser s office, they study the advertiser s need and inform the various departments what is required by the respective clients. 2. Art Department : This department is headed by the art manager who is assisted by artists, layout men and visualisers. A visualiser is a person who prepares the rough layout of the advertisement which is later developed into a comprehensive layout. The art department is responsible for the physical appearance of the advertisement for preparing layouts, illustrations, photos and for specifying the types to be used. 123. 3. Media Department : This is a very important department which works under the supervision and control of a media manager. This department is entrusted with the work of selection of media for the advertiser according to the needs, directions and budget of the client. He remains in constant touch with different medias. 4. Mechanical Production Department : It is also a very important department which works under the control of a technical manager. The main function of this department is to look after block-making, printing, proof-reading and such other technical jobs. 5. Copy Department : This department is headed by a copy manager and is duly assisted by a number of copy-writers. This department is concerned with the preparation of a copy for all advertisements. Copy-writing requires flair and 124. fluency of language, imagination and a method of representation. The department works closely with the art, research and accounts departments. It is also an important department. 6. Research Department : In case of large sized advertising agencies a separate research department is established under the supervision and control of a research manager. The research manager is assisted by a number of analysts, investigators, marketing assistants, statistical clerks and librarians etc. The main function of this department is to study markets, medias and other subjects of interest to the advertising agency. It helps better advertising for clients. 7. Radio and T.V. Production Department : In case the advertising agency provides advertisements on the radio and television, it 125. would have a separate department for this purpose. This department works under the supervision and control of a manager who is duly assisted by a number of assistants, musical consultants, script-writers etc. 8. Finance Department : The main function of finance department is to arrange and control finance. Thus this department is responsible for maintaining proper accounts, billing and collection of dues from the clients, verifying whether the advertisement in the different media actually appeared on the days it was scheduled, if so whether correctly, and whether the text was properly printed and also looking after all the routine matters relating to accounting, recording etc. 9. Merchandising Department : In case of large sized advertising agency, a separate 126. merchandising department is established under the supervision and control of a merchandising manager which is specialist in displays, exhibits and preparation of various advertising aids. 10. Public Relation Department : In case of a large sized advertising agency, a separate public relation department is established under the supervision and control of a public relation officer - manager. The main function of this department is to establish and maintain contact and mutual understanding between the organisation and the public. It performs a liaison work between the clients and the various sections of the public - customers, employees and shareholders etc. Role of Agency Role of Advertising Agencies 127. 1.Creating an advertise on the basis of information gathered about product 2.Doing research on the company and the product and reactions of the customers. 3.Planning for type of media to be used, when and where to be used, and for how much time to be used. 4.Taking the feedbacks from the clients as well as the customers and then deciding the further line of action All companies can do this work by themselves. They can make ads, print or advertise them on televisions or other media places; they can manage the accounts also. Then why do they need advertising agencies? The reasons behind hiring the advertising agencies by the companies are: 128. The agencies are expert in this field. They have a team of different people for different functions like copywriters, art directors, planners, etc. The agencies make optimum use of these people, their experience and their knowledge. They work with an objective and are very professionals. Hiring them leads in saving the costs up to some extent. The major role as advertising agency is to work alongside the clients to develop and sustain the brands that they mutually serve, through consumer understanding and insight and through creative and media delivery skills to provide best advice and the best execution 129. thereof to those clients for the advertising of those brands. Buildings age and become dilapidated. Machines wear out. People die. But what live on are the brands. Brands are much more than mere products and services. Brands, if successful, are clearly differentiated entities with which consumers can and do form a mutually beneficial relationship over time, because of the values rational and emotional, physical and aesthetic that consumers derive from them. The importance can be summed up as follows: A product is something that is made, in a factory: a brand is something that is bought, by a customer. A competitor can copy a product; a 130. brand is unique. A product can be quickly out- dated; a successful brand is timeless. The role of advertising and the advertising agency is to help effect this transformation from product or service to brand by clearly positioning the offering to the consumer its role and its benefits and by communicating the brands own personality. In short its role is to provide meaningful differentiation via the consumer connection. As one wise head in advertising once said, nothing kills a bad product faster than good advertising. Typically advertising is playing this role, along with other parts of what we call the marketing mix, in highly competitive market places. 131. Most advertisers assign this job of informing the target audience and creating images to advertising agencies. Thus, the advertising agencies plan, prepare and place ads in the media. But even an advertiser can do all these things. The management can do planning of ad campaigns. For preparing ads, creative personal can be hires. And the advertiser for placing the ads can buy media space or time. So, why hire an advertising agency? The reason can be enlisted as follows: Expertise and experience- An advertising agency brings together people with the required expertise and experience of the various sub-disciplines of advertising. Thus, it has the copywriters, visualizes, researchers, photographers, directors, planners and people who get business and 132. deal with clients working in ad agencies. An agency moulds all these people into a team and gives them a highly conducive work atmosphere. The agency makes the best use of their talents and experience to deliver rapidly, efficiently and in greater depth than a company or organization could do on its own. Objectivity and professionalism- Advertising agencies are highly professional. Objectivity is a major virtue of ad agency. They operate in a strange way. While they take up advertising for others, agencies hardly advertise themselves. Ad agencies being outside intermediaries can be objective. They thus will offer independent and detached viewpoints and suggestions based on objective analysis. 133. Cost effective- If an organization wants to hire people to do its advertising, it can not provide them work all through the year. Also most experts in the fields of advertising like directors, musicians, photographers, charge huge amounts and are often not affordable. Moreover, hiring, organizing and managing all talents required to produce advertising campaigns is not an easy thing. And the fact that 98% of advertisers the worlds over hire as agencies is proof enough about the cost effectiveness of the agencies. Also the kind of consistent, powerful and compelling advertising that can be created by using the expertise, experience, objectivity and professionalism of ad agencies cannot be measured economically. PROCESS OF PLANNING THE ADVERTISING 134. CAMPAIGN The campaign planning is the joint effort of both the advertiser and his ad Agency. The advertiser supplies much information about the product, the channel of distribution, competition the product, and the firm. The agency may collect other information from the market, in respect of target audience etc. Advertising campaign planning simply means planning the advertising campaign. Advertising campaign planning concerns many people in the advertising agency, but mainly concerns the advertising manager (for the client), account executive, marketing manager, creative director, media planner, and PR manager. They design and plan advertising campaign for the client. 135. 11.2.2 Steps in Advertising Campaign Planning : The main steps in advertising campaign planning are as follows : 1. Prototype Stage : Let us assume that a manufacturer has the prototype of a new product. The basic product has been thoroughly tested, but the packaging has not been determined, it has no name
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