Advertising Management Cycle

8/6/2019 Advertising Management Cycle

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Overview of the Advertising

Management Cycle

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Advertising

The Indian Advertising Industry isaround Rs.21,000 crore andgrowing at 13%

Industry employs only over 200,000

Ad budgets of some firms exceedover Rs.500 crores per year ~ >Rs.13 lakhs per day!

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Advertising and Market Share

New brands spend proportionately morefor advertising than old ones.

A certain level of exposure is needed toaffect purchase habits.

Beyond a certain level, diminishingreturns set in.

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Advertising and the Consumer

Average Indian citizen is exposed tohundreds of ads each day.

Advertising may change a consumer¶sattitude toward a product.

Advertising can affect consumer ranking of brand attributes.

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Major Types of Advertising

Institutional

Advertising

Product

Advertising

Designed to enhance a company¶s

image rather than promote a

particular product.

Designed to tout the benefits of a

specific good or service.

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Major Types of Advertising

Enhancecorporation¶s identity

Pioneering

Competitive

Comparative

ProductProductAdvertisingAdvertising

InstitutionalInstitutionalAdvertisingAdvertising

Advocacyadvertising

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HR

Bl ock



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On Line

http://www.pizzahut.c om

http://www.papajohns.c om

Product Advertising

PioneeringPioneering� Stimulates primary demand for

new product or category.

� Used in the PLC introductory stage.

CompetitiveCompetitive� Influence demand for brand in the

growth phase of the PLC.

� Often uses emotional appeal.

ComparativeComparative� Compares two or more competing

brands¶ product attributes.

� Used if growth is sluggish, or if

competition is strong.

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Advertising Campaign

A series of related

advertisements focusing

on a common theme,

slogan, and set of

advertising appeals.

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Steps in Creating an

Advertising Campaign

Determine theadvertising objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

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Setting Objectives:

The DAGMAR Approach

DefineTarget Audience

Define DesiredPercentage

Change

Define the TimeFrame for Change

Goal of Goal of

Advertising Advertising

ObjectivesObjectives

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Creative Decisions

Components

of CreativeDecisions

Develop and EvaluateAdvertising Appeals

Executethe Message

Evaluate theCampaign¶s Effectiveness

IdentifyProduct Benefits

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Identify Product Benefits

³Sell the Sizzle, not the Steak´

Sell product¶s benefits,

not its attributes

A benefit should answer

³What¶s in it for me?´

Ask ³S o?´ to determineif it is a benefit

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Advertising Appeal

Reason for a personto buy a product.

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Common Advertising Appeals

Profit

Health

Love or romance

Fear

Admiration

Convenience

Fun and pleasure

Vanity and egotism

EnvironmentalConsciousness

Product saves, makes, or protects money

Appeals to body-conscious or health seekers

Used in selling cosmetics and perfumes

Social embarrassment, old age, losing health

Reason for use of celebrity spokespeople

Used for fast foods and microwave foods

Key to advertising vacations, beer, parks

Used for expensive or conspicuous items

Centers around environmental protection

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Unique Selling Proposition

Desirable, exclusive, and

believable advertising

appeal selected as the

theme for a campaign.

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Executing the Message

Mood or Image

Musical

Demon-stration

Scientific

Real/AnimatedProductSymbols

Fantasy

Lifestyle

Slice-of-Life

Humorous

CommonCommon

ExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

G oodyear

Dockers

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Major Types of Advertising Media

Newspapers

Magazines

Radio

Television

Outdoor Media

Internet

Alternative Media

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Newspapers

Advantages Advantages

Year-round readership

Geographic selectivity

Immediacy

High individual market

coverage

Short lead time

DisadvantagesDisadvantages

Limited demographic

selectivity

Little color

May be expensive

Low pass-along rate

Clutter

Mass market medium

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Cooperative Advertising

An arrangement in which

the manufacturer and theretailer split the costs

of advertising the

manufacturer¶s brand.

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Magazines

Good reproduction

Demographicselectivity

Regional/localselectivity

Long advertising life

High pass-along rate


Higher cost per contact

Long-term advertiser commitments

Slow audience build-up

Limited demonstration

capabilities

Lack of urgency

Long lead time


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On Line

http://www.r adioindustry.about.c om

Radio


Selectivity andaudience segmentation

Immediate and portable

Geographic flexibility

Entertainment

carryover Short-term ad

commitments


No visual treatment

Short advertising life High frequency to

generate retention

Commercial clutter

Backgrounddistractions

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On Line

http://www.f ox.c om

http://www.abc.c omTelevision


Wide, diverse audience

Low cost per thousand Creative and

demonstrative

Immediacy of messages

Entertainment carryover Demographic selectivity

with cable


Short life of message

Expensive with highcampaign cost

Little demographicselectivity with network

Long-term advertiser

commitments Long lead times

Clutter

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Outdoor Media


High exposurefrequency

Moderate cost

Flexibility

Geographic selectivity

Broad, diverse market


Short message

Lack of demographicselectivity

High ³noise´ level

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Internet

Fast growing

Ability to reach narrowtarget audience

Short lead time

Moderate cost


Difficult to measure ad

effectiveness and ROI Ad exposure relies on

³click through´

Not all consumers

have access to internet


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On Line

http://www.banner it e.c om

http://www.flas h-banner-des ign.c om



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Examples of Alternative Media

Ads inMovies and Videos

Interactive Kiosks

Computer Screen Savers

Video Shopping Carts

Fax Machines

On Linehttp://www.looksmar t.c om

http://www.y ahoo.c om

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Media Selection Considerations

Cost per Cost per ContactContact

ReachReach

FrequencyFrequency

AudienceAudienceSelectivitySelectivity

The cost of reaching onemember of the target market.

T

he number of target consumersexposed to a commercial at leastonce during a time period.

The number of times an individualis exposed to a message during a

time period. The ability of an advertising

medium to reach a preciselydefined market.

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Media Scheduling

ContinuousContinuous

Media ScheduleMedia Schedule

FlightedFlightedMedia ScheduleMedia Schedule

PulsingPulsing


SeasonalSeasonal


Advertising is run steadilythroughout the period.

Advertising is run heavily everyother month or every two weeks.

Advertising combines continuousscheduling with flighting.

Advertising is run only when theproduct is likely to be used.

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Public Relations

Evaluates publicattitudes

Identifies issues of public concern

Executes programsto gain publicacceptance

T he Role of T he Role of

Public RelationsPublic Relations

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Functions of Public Relations

Press RelationsPress Relations

Product PublicityProduct Publicity

Corporate CommunicationCorporate Communication

Public AffairsPublic Affairs

LobbyingLobbying

Employee and Investor RelationsEmployee and Investor Relations

Crisis ManagementCrisis Management

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On Line

http://www.bmwf ilms.c om

Public Relations Tools

Product Placement

Consumer Education

Event Sponsorship

Issue Sponsorship

InternetWeb Sites

New Product Publicity

ET rade 2 5



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Crisis Management

A coordinated effort to

handle the effects of unfavorable publicity or of

an unfavorable event.

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Advertising Management Cycle

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