Advt Mgmt-1

8/3/2019 Advt Mgmt-1

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GJSM

A DVERTISING

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Advt. & sales Mgmt.

(MB-904)



ADVERTISING

A shop wants to attract more customers or clear stocks,so it decides to offer special discounts for a period.It advertises in the daily newspapers to inform the

public of its ¯sale°.

A company brings out a new product which is muchmore economical than the existing ones in its category.If the company cannot advertise the product, it would never be able to enter the market. Any other form of communication would be long drawn out and

uneconomical.

The Government wants corporate, businessmen and salaried people to pay taxes. It advertises innewspapers, radio and television to reach the target audience.

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WHO NEEDS A DVERTISING?

Companies use advertising to:

inform people about their products and services to make their

brand names familiar to the public

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W HO NEEDS A DVERTISI NG?

Companies use advertising to:

to give the company a ¯personality° which sets it apart from the others.

to remind customers about their brands at the

right time and right place

to tell the public about improvements in products

to help their sales force to be more effective

to reinforce customer confidence in his/her purchase

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W H AT IS

A DVERTISI NG?

´ ADVERTISING is the delivery of the most persuasive

product message at the right time,

in the right place, to the right person,at the lowest possible cost

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WHAT REALLY IS ADVERTISING?

Paid form of non-personal communication about an

organization, product, service or idea from an identified

sponsor, using mass media to persuade

or influence an audience

The paid aspect of this definition reflects

the fact that the space or time for an advertising message

must be bought.

The non-personal component means that advertising involves

mass media (eg. TV, radio, magazines, newspapers) that can

transmit a message to large groups of individuals, often at the

same time.

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WHAT REALLY IS ADVERTISING?

The non-personal nature of advertising

means that there is generally no opportunity for

immediate feedback from the message recipient

(except in direct response advertising)

Therefore before the message is sent, the advertiser

must consider how the audience

will interpret and respond to the message

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SO, A DVERTISING IS A COMBIN A TION OF«.

(1) Paid

(2) Non-personal Communication

(3) From An Identified Sponsor

(4) Using Mass Media

(5) To Persuade or Influence

(6) an Audience.

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FUNCTIONS OF A DVERTISING

To identify and differentiate from other offerings

To communicate information about the product

To induce consumers to try new products and to

suggest reuse

To stimulate the distribution of a product

To increase product use

To build value, brand preference, and loyalty

To lower the overall cost of sales

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FIVE PLAYERS OF A DVERTISING

Advertiser

(Client)

Advertising Agency

Media

Organization

Suppliers/

vendors

Target

Audience

Marketing strategy and final approval

Creative and media plan

Audience delivery

Marketing communication specialists,

collateral services

Receivers of marketing communications

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THE K EY PL A YERS

Advertiser(client)

AgencyMedia

Supplier Audience

Uses advertising to sendout a message about itsproducts

Initiates the advertisingeffort by identifying amarketing problem

Approves audience, planand budget

Hires the advertisingagency

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THE K EY PL A YERS

Advertiser

(client)

Agency

Media

Supplier Audience

Has strategic and

creative expertise, media

knowledge, workforce

talent, and negotiatingabilities

y Advertising department

y In-house agency

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THE K EY PL A YERS

Advertiser

(client)

Agency

Media

Supplier Audience

The channels of communication thatcarry the message to theaudience

Are also companies orhuge conglomerates

Mass media advertisingcan be cost effective

because the costs arespread over the largenumber of people the adreaches

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THE K EY PL A YERS

Advertiser

(client)

Agency

Media

Supplier Audience

Assist advertisers,

agencies, and the media

in creating and placing

the ads Vendor services are often

cheaper than those in-

house

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THE K EY PL A YERS

Advertiser

(client)

Agency

Media

Supplier Audience

The desired audience for

the advertising message

Data-gathering

technology improves

accuracy of information

about customers

Advertisers must

recognize the various

target audiences theyare talking to and know

as much about them as

possible

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THE NATURE OF ADVERTISING

Advertising «

y A persuasive message

y Carried by a non-personal

mediumy Paid for by an identified

sponsor.

y One way communication

y Lack of direct feedbacky Supports other

promotional efforts



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THE N A TURE OF A DVERTISING

advertising is distinguished from otherforms of promotion as follows

it has a verbal and/or visual message

the sponsor of the message is identifieddelivery is through recognizable media

there is payment by the advertiser tothe media for carrying the message

advertisers are increasingly being ableto reach specific audiences with tailor-made messages

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Advt Mgmt-1

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