IMC

Advertising

"Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media." Now let's take this statement

apart and see what it means.

Nature of Advertising

• Mass communication Process• Informative• Persuasive• Competitive• Is Paid for • Has an Identified Sponsor • Non personal

Scope of Advertising

• The scope of advertising is to communicate a message to

current customers or potentially target new customers. • Processing information to the customer to keep them

informed of what is happening within the company eg: New products, sales, new store openings, etc.

• Increase customer loyalty and repeat business. By keeping customers informed of an upcoming sale for instance, you are holding onto loyal customers and may even attract some new business.

• Communicating a message directly to the consumer.

Scope of Advertising

• The scope of advertising is to communicate a message to current customers or potentially target new customers.

• Processing information to the customer to keep them informed of what is happening within the company eg: New products, sales, new store openings, etc.

• Increase customer loyalty and repeat business. By keeping customers informed of an upcoming sale for instance, you are holding onto loyal customers and may even attract some new business.

• Communicating a message directly to the consumer

•Increased revenue through advertising particular products or informing customers of new services on offer. This will also offer economic benefits for the wider community as it may give a company better scope to offer more employment opportunities.

•Television commercials. Some larger brands such as L’oreal get celebrities such as Eva Longoria and Cheryl Cole to help advertise their products.

Scope of advertising for manufacturers

• Large-scale production & marketing• Introduction of new products• Creates new demand• Effective personal selling• Builds brand image• For reduction in cost of production

Scope of advertising for consumers

• Provides Information and guidance

• For attracting more consumers

• Raises living standards

• Effective product use

• Removes misunderstanding

Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand AdvertisingPrimary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Organizations

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Professional AdvertisingProfessional Advertising

Trade AdvertisingTrade Advertising

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Professional AdvertisingProfessional Advertising

Types of Advertising

Consumers

Classification of Advertising

• Classification on the basis of function

• Classification on the basis of region

• Classification on the basis of target market

• Classification on the basis of desired responses

• Classification on the basis of the media used in

advertisement

Classification on the basis of function• Informative advertising: This type of advertising informs

the customers about the products, services, or ideas of the firm or organization

• Persuasive advertising: This type of advertising persuades or motivates the prospective buyers to take quick actions to buy the products or services of the firm. Example: “Buy one, get one free”.

• Reminder advertising: This genre of advertising reminds the existing customers to become medium or heavy users of the products or services of the firm that have been purchased by them at least once. This type of advertising exercise helps in keeping the brand name and uses of the products in the minds of the existing customers.

Classification on the basis of region

• Global advertising: It is executed by a firm in its global market niches. Reputed global magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science. Cable TV channels are also used to advertise the products throughout world. Supermodels and cinema stars are used to promote high-end products Examples: Sony, Philips, Pepsi, Coca Cola, etc.

• National advertising: It is executed by a firm at the national level. It is done to increase the demand of its products and services throughout the country

• Regional advertising: If the manufacturer confines his advertising to a single region of the country, its promotional exercise is called Regional Advertising. This can be done by the manufacturer, wholesaler, or retailer of the firm. Examples: Advertisements of regional newspapers covering those states or districts where these newspapers are circulated

• Local advertising: When advertising is done only for one area or city, it is called Local Advertising. Some professionals also call it Retail Advertising. It is sometime done by the retailer to persuade the customer to come to his store regularly and not for any particular brand.

EX : FM radio

Classification on the basis of target market

• Consumer product advertising: This is done to impress the ultimate consumer. An ultimate consumer is a person who buys the product or service for his personal use. This type of advertising is done by the manufacturer or dealer of the product or service

• Industrial product advertising: This is also called Business-to-Business Advertising. This is done by the industrial manufacturer or his distributor and is so designed that it increases the demand of industrial product or services manufactured by the manufacturer

• Trade advertising: This is done by the manufacturer to persuade wholesalers and retailers to sell his goods. Different media are chosen by each manufacturer according to his product type, nature of distribution channel, and resources at his command. Hence, it is designed for those wholesalers and retailers who can promote and sell the product.

• Professional advertising: This is executed by manufacturers and distributors to influence the professionals of a particular trade or business stream. These professionals recommend or prescribe the products of these manufacturers to the ultimate buyer. Doctors, engineers, teachers, purchase professionals, civil contractors architects are the prime targets of such manufacturers.

Classification on the basis of desired responses

• Direct action advertising: This is done to get immediate responses from customers. Examples: Season's sale, purchase coupons in a magazine.

• Indirect action advertising: This type of advertising exercise is carried out to make a positive effect on the mind of the reader or viewer. After getting the advertisement he does not rush to buy the product but he develops a favourable image of the brand in his mind.

• Surrogate advertising: This is a new category of advertising. In this type of promotional effort, the marketer promotes a different product. For example: the promotion of Bagpiper soda

Classification on the basis of the media used in advertisement

• Audio advertising: It is done through radio, auto-rickshaw promotions, and four-wheeler promotions etc

• Visual advertising: It is done through PoP displays, without text catalogues, leaflets, cloth banners, brochures, electronic hoardings, simple hoardings, running hoardings etc.

• Internet advertising: The World Wide Web is used extensively to promote products and services of all genres. For example Bharat Matrimony, www.teleshop.com, homeshop18.com

Primary Demand Example: orange juice,milk

Selective Demand Example

The Snapple ad as it appears above is quite simple. There is only Snapple Green Tea products being displayed. There is branding from the Snapple representation.

Notice in the above ad that the only copy we see is “Real California Milk.” This is simply suggesting that we purchase dairy products that come from “Happy Cows.” There is no branding it supports only the milk.

Primary v. Selective demand Advertising

Commercial v. Non commercial Advertising:

• Non-commercial advertising is advertising indulged in by non-profit organization such as the government or charitable institutions to support ideas, solicit donations, etc.

• Commercial advertising is concerned with selling a product or an idea to help a commercial institution. It may consist of “consumer advertising” aimed at the ultimate consumer or “business or industrial advertising” aimed at industrial producers inducing them to purchase the product

Product v. Institutional Advertising

Institutional Advertising: The promotional message aimed

at creating an image, enhancing reputation, building

goodwill, or advocating an idea or the philosophy of an organization, instead of sales promotion. When employed by an organization to market itself (instead of its products), it is called corporate advertising.

Covert Advertising 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 sports.

Coffee Cup Advertising: A relatively new form of mass

advertising is the placement of small ads or promotional material on paper cups for coffees or onto the tabletops of the diner or cafe. Its origins can be traced to Australian companies, and is now gaining popularity in Asia and the Americas.

Advertising Appropriation/ Budget

• Percentage of sales method

• Task and objective method

• The competitive parity method

• Affordable method

• A Percentage of Revenue

PERCENTAGE OF SALES METHOD

• procedure used to set advertising budgets, based on a predetermined percentage of past sales or a forecast of future sales. This method of budget allocation is popular with advertisers because of its simplicity and its ability to relate advertising expenditures directly to sales. Management usually determines the budget's percentage figure, which is based on the industry average or the company's historical or previous year's advertising spending.

The competitive parity method

Advertising-expense budgeting method based on what a brand's or firm's competitors are estimated to be spending. This method assumes the other firms have the same marketing objectives and know what they are doing.

A Percentage of Revenue Many companies set their marketing budgets by allocating between 1% and 10%

of their revenues to marketing. This method assumes a direct relationship between revenue generation and marketing. In many instances this is not the case. For example, launching a new brand usually requires important marketing resources, while the revenue it generates is zero.

• Objective-and-task method way of allocating funds to advertising based on the desired

results, the steps that must be taken to achieve those results, and the projected costs of each.

• Affordable method procedure used to set advertising budgets, based on what the

advertiser thinks it can afford to spend. This method lacks consideration for the objectives of the advertising and how those objectives can best be met. The advertiser may spend less than necessary to achieve a sales target or fail to provide the necessary support to a new or declining brand.

Advertising Campaign Process

The Process of Advertising The following are the steps involved in the process of

advertising:• Step 1 - Briefing: the advertiser needs to brief about the

product or the service which has to be advertised and doing the SWOT analysis of the company and the product.

• Step 2 - Knowing the Objective: one should first know the objective or the purpose of advertising. I.e. what message is to be delivered to the audience?

• Step 3 - Research: this step involves finding out the market behaviour, knowing the competitors, what type of advertising they are using, what is the response of the consumers, availability of the resources needed in the process, etc.

• Step 4 - Target Audience: the next step is to identify the target consumers most likely to buy the product. The target should be appropriately identified without any confusion. For e.g. if the product is a health drink for growing kids, then the target customers will be the parents who are going to buy it and not the kids who are going to drink it.

• Step 5 - Media Selection: now that the target audience is identified, one should select an appropriate media for advertising so that the customers who are to be informed about the product and are willing to buy are successfully reached.

• Step 6 - Setting the Budget: then the advertising budget has to be planned so that there is no short of funds or excess of funds during the process of advertising and also there are no losses to the company.

• Step 7 - Designing and Creating the Ad: first the design that is the outline of ad on papers is made by the copywriters of the agency, and then the actual creation of ad is done with help of the art directors and the creative personnel of the agency.

• Step 8 - Perfection: then the created ad is re-examined and the ad is redefined to make it perfect to enter the market.

• Step 9 - Place and Time of Ad: the next step is to decide where and when the ad will be shown. The place will be decided according to the target customers where the ad is most visible clearly to them. The finalization of time on which the ad will be telecasted or shown on the selected media will be done by the traffic department of the agency.

• Step 10 - Execution: finally the advertisement is released with perfect creation, perfect placement and perfect timing in the market.

• Step 11 - Performance: the last step is to judge the performance of the ad in terms of the response from the customers, whether they are satisfied with the ad and the product, did the ad reached all the targeted people, was the advertise capable enough to compete with the other players, etc. Every point is studied properly and changes are made, if any.

Segmentation

Positioning Strategy in advertisingPositioning Strategy in advertising

Advertising Agency

• Firm that • (1) creates new promotional ideas,• (2) designs print, radio, television, and internet

advertisements,• (3) books advertisement space and time,• (4) plans and conducts advertising campaigns, • (5) commissions research and surveys, and• (6) provides other such services that help a client in entering

and succeeding in a chosen market.

• An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients.

• An Advertising Agency or ad agency is a service provider that works for clients to create an effective and goal oriented advertising campaign aimed at representing the Company positively in the eyes of its target customers.

• According to American Association of Advertising “An advertising agency is an independent organization of creative people and business people who specialize in developing and preparing market plans, advertisements, and other promotional tools”.

Primary services of Advertising agencies

• complete a marketing analysis• develop an advertising plan• prepare a creative strategy• create advertising executions• develop and implement a media plan• handle billing and payments• integrate other marketing communications

Types of Advertising Agencies

Full Service Agencies A full service ad agency is one that provides a range of marketing services. A

full services agency provides services that are directly related to advertising such as copywriting, artwork, production of ads, media planning etc. It also provides such services in respect of pricing, distribution, packaging, product design etc. Some full service agencies also provide non-advertising related services including strategic market planning, direct market promotion programs, interactive marketing and web site design, and public relations

• A typical full-service advertising agency typically involves 4 main departments:– Account Management– Creative Services– Media Planning and Buying– Research and Account Planning

Modular Agencies

• A modular agency is a full service agency that sells its services on a piece meal basis. Thus an advertiser may commission an agency’s creative department to develop an ad campaign while obtaining other agency services elsewhere.

• Or, an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. Fees are charged for actual work undertaken.

In House Agencies

• Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser.

• It performs almost all functions that an outside advertising agency would perform and that’s why some people refer to it as full-service advertising department of the advertiser.

Fabrica : UCB

Mudra Communications

• The difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients, if the owner so desires, but an advertising department solely undertakes that work of its owner and not of outside clients.

Advantages• Cost savings• More control• Better coordination

Disadvantages•Less experience•Less objectivity•Less flexibility

Specialist Advertising Agencies• There are some agencies who undertake advertising work only in

certain areas. There are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc.

• There are also agencies that specialize in certain types of advertising: the recruitment, job, medical, classified, industrial, financial, direct response, sales Retail, yellow pages, theater / entertainment investment, travel and so on.

Mega agencies• Concept of 1980s• Merger of two agencies• 1986, Saatchi & Saatchi, a London based - the third largest, started

the movement

Creative Boutiques

• These are shop agencies that provides only creative functions and not full-service. The specialized creative functions include copy writing, artwork and production of ads, they charge a fee or percentage of full service agencies, and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services.

• JUGULAR is a creative boutique agency in the Meatpacking District in NYC

Ogilvy & Mather

Top management: Piyush Pandey, Executive chairman & National creative director, John Goodman, CEO

Shareholding: WPP 74%, others 26%

No of employees: Creative: 334, Servicing : 350, Production: 63, Account planning: 20, Others: 162 (back office)

Divisions: Ogilvy Activation, Ogilvy Public Relations Worldwide, Ogilvy-One Worldwide

Key Accounts: Asian Paints, BP/Castrol, Cadbury, Gillette India, HUL, Hutchison Essar, IBM, Seagrams , SBI, Tata Motors

McCann Erickson India• Santosh Desai, President

• No of employees: Creative: 114, Servicing : 88, Production: 16, Account planning: 11, Media planning: 18

•Key Accounts: Coca-Cola , Hindustan Lever, Johnson & Johnson, L'Oreal , General Motors, Dabur, Intel, Marico , Mastercard, Microsoft, Nerolac, Perfetti, Tata Indicom, TVS Motors

Lowe Lintas

• Top management: Pranesh Misra, President & COO No of employees: Creative: 104, Servicing: 181, Production: 19, Account planning: 20, Others: 38

• Key Accounts: Unilever, Idea Cellular, Britannia, LG, Maruti Suzuki, ITC, Bajaj Auto, J&J , The Hindu

JWT• Top management: Colvyn J Harris, CEO

Key Accounts: PepsiCo, DYC, Hero Moto Corp., Glaxo Smithkline, Frito Lays India, Unilever Home & Personal Care, Ford

Leo Burnett:• Top management: Arvind Sharma, Chairman, India Subcontinent • No of employees: Creative: 55, Servicing : 55, Production: 6, Account planning: 2

Key Accounts: P&G , Coca-Cola , Heinz India, McDonald's , Bajaj Auto, Godfrey Phillips

Benefits of using an Advertising Agency

1. They have the ability to buy media in bulk at rates that a single business cannot obtain.

2. They are educated as to the best times and places to run ads to reach your target market, ultimately minimizing wastage

3. They can help you fine tune your target market so that the message is designed to reach those you want to reach.

4. Easily Administered

The Benefits of Using an Advertising Agency•Added Expertise•Media Knowledge and Unbiased Advice•Easier Administration•Media Buying•Quality Control•Information•Fending off the media•And when things go wrong•Cost Saving•Time Saving

Disadvantages of using an Advertising Agency

• A main disadvantage of using an advertising agency would be the communication factor. If an agency does not communicate or relay it's clients goals and creative wishes properly problems can occur within a contract and lawyers may have to become involved.

• Another disadvantage would be the media buying discounts you may not be able to take full advantage of due to commission barriers within an agency,

Role of Advertising Agencies

• Advertising agency is a service provider that helps its clients by developing suitable ad campaigns for them.

• Their aim is to represent its clients' products and services before customers in such a way that a positive image is created in their minds.

• Advertising agency's role start with the identification of its clients' goals and objectives.

• This turns out to be of immense value in planning and creating the future course of action concerning ad campaigns.

• · For whom is the product or service designed?• · Who would use it?• · Who is the "target group"?• · What's special about the product? In what way is it distinct?• Unique? Different?• · What's its "position" in relation to other similar products?• · What do you want to convey to the public about your

product?• · How should your company contact the public?• · What medium should it use? Radio? TV? Newspapers?

Magazines? Bus/subway ads? Direct mail? etc.

• Once an advertising agency gets acquainted with its clients' business objectives, it starts creating and planning its ad campaigns.

• For this it keeps in mind certain points such as increasing sales, pushing new products in the market, restating benefits of its clients' brands, and drawing new customers in addition to establishing and maintaining contacts with their existing customers.

• An advertising agency's professional teams put in their best efforts to develop attractive slogans, jingles, and body copy for ads. All this is done within the defined parameters of its clients and their budgetary allocations.

Functions of Advertising Agencies Account Planning• Advertising agencies typically have account planners who

work as the go-between for the client and the agent. They ensure that client needs are expressed to the research and creative teams.

• They also work to ensure that necessary information is transferred to the client regarding creative, research, competition or any of other factor that may somehow affect how the client's product gets marketed to consumers. Account planning is where agencies start their initial interaction with clients.

• It also includes checking bills, making payments, cash discounts allowed by media, collection of dues from clients, payment to staff, payment to outside professionals like- writers, producers, models, etc.

Account Services / Account Management

Marketing Research• Advertising agencies work with companies to

establish the characteristics of their target markets through marketing research.

• Advertising agencies spend a substantial amount of time researching consumers to understand what they buy and what motivates them to buy.

• Knowing the competition, account managers at advertising agencies research the environment, identify competitors, and research their marketing tactics.

• Through market research, advertising agencies also identify political, social, technological and economic factors that may affect a client's campaign.

Creative Function• Advertising agencies are known

for their creative output, which can include website design, advertising copy, magazine advertisements, and radio and television commercials.

• The medium of advertising often varies by campaign. Graphic designers, web designers, writers, editors and creative directors make up an advertising agency's creative department.

Developing Ad-Copy Ad-agency with the help of their writers, artists, designers, animators, graphic-designers, and film-directors prepares and develops Ad-copy.

Approval of Client: Ad-copy is shown to the client for his approval

Ad-Execution: After approval, verification, and required changes, the ad-copy is handed to the media for ad-execution

Media Selection and scheduling: It is very important function of ad-agency to select appropriate media for its clients. Ad-agency has to consider various factors like- media cost, media coverage, ad-budget, nature of product, client's needs, targeted customer, and etc while selecting media.

Evaluation Function: After execution, it is the responsibility of ad-agency to evaluate the effectiveness of ad to know how beneficial the ad is for its client.

Marketing Function: The advertising agency also performs various marketing function like- selecting target audience, designing products, designing packages, determining prices, study of channel of distribution, market research, sales promotion, publicity, etc.

Selling Advertising Space Advertising agencies don't just create advertising pieces for clients; they also give clients insight as to which media will be most effective for their product, service, event or cause. In the process, they work to secure advertising placements for customers either online, in print, on television or on the radio. They negotiate terms and work to get clients the best deals to maximize their money and their reach.

Examples of Top Advertising Agencies

• Ogilvy & Mather- Hutch (Vodafone), Cadbury, Asian Paints and Fevicol.

• JWT, J Walter Thompson- Nestle, Bayer, Ford, Nokia and Unilever.

• Mudra Communication-Neutrogena, HBO, Philips, Reliance NetConnect, Big Bazaar.

• FCB Ulka Advertising Ltd-Tata Indicom, Whirlpool, Zee Cinema, Santoor, Sunfeast and Amul.

• Grey Worldwide (I) Pvt. Ltd- Hero Moto corp, Maruti Suzuki, Nestle, Ambuja Cement, UTV, P&G and Godrej.

Organization StructureThe activities within an ad agency are divided

into 4 broad groups:1. Account management2. The creative department3. Media buying4. Research

• Recently added: public relations, direct marketing, and promotional services

Organization ChartBoard of Directors

Managing Director

Client Services Director

Creative Director

Servicing Group

Media

Research

Creative Groups

Audio Visual

Language

Studio

Production

Finance / Accounts

Secretarial / Legal Personnel

Remuneration of AD-Agencies

COMMISSION SYSTEM

COMMISSION SYSTEM

FEEArrangement

Incentive Based

There are few methods used to compensate the agencies for their varied services. Commission , Fee arrangement , Cost-plus agreement, Incentive-Based compensation.

Cost Plus Agreement

Commissions from Media The traditional method of compensating agencies is through a commission

system, where the agency receives a specified commission (usually 15 percent) from the media on any advertising time or space it purchase for its clients.

Eg: Assume an agency prepares a full-page magazine ad and arranges to place the ad on the back cover of a magazine at a cost of Rs 100,000.The agency places the order for the space and delivers the ad to the magazine. Once the ad is run, the magazine will bill the agency for Rs 100,000,less the 15 percent (Rs 15,000) commission. The media will also offer a 2 percent cash discount for early payment, which the agency may pass along to the client. The agency will bill the client Rs 100, 000, less 2 % cash discount on the net amount, or a total of Rs 98,300.The Rs 15,000 commission represents the agency’s commission for its services. The commission system had many advantage, including: 1. Traditional and well understood. 2. Simple and easy to operate. 3. Inspite of its conceptual imperfections it worked well in most cases

Fee Arrangement

Fee Arrangement Under the fee structure, the client and the ad agency negotiate a flat sum to be paid to the agency for all work done. The agency estimates the cost (including out of pocket expenses) of servicing the client who either accepts or negotiates for a lesser amount. Negotiations continue until an agreement is reached. There are two basic types of fee arrangement systems. In the straight or fixed-fee method, the agency charges a basic monthly for all of its services and credits to the client and any media commissions earned. Agency and client agree on the specific work to be done and the amount the agency will pay for it.

Types of Fees-arrangements:- Fixed- Fee Method Speculative Method

Cost Plus Agreement• The cost-plus system is generally used when the media billings are

relatively low and a great deal of agency service is required by the client. • This happens most often with industrial products, new product

introductions etc. that require disproportionate amount of agency help in preparing brochures, catalogues and other non- commissionable marketing activities.

• Under a cost-plus system, the client agrees to pay the agency a fee based on the costs of its work plus some agreed-on profit margin (Often a percentage of total costs).

• This system requires that the agency keep detailed records of the costs it incurs in working on the clients account . Direct costs (personnel time and out-of-pocket expenses) plus an allocation for overhead and a markup for profits determine the amount the agency bills.

Incentive-Based Compensation• Incentive-Based Compensation Many clients these days are demanding

more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system.

• While there are many variations, the basic idea is that the agency’s ultimate compensation level will depend on how well it meets predetermined performance goals.

• These goals often include objective measures such as sales or market share as well as more subjective measures such as evaluations of the quality of the agency’s creative work.

• Companies using incentive-based systems determine agency compensation through media commissions, fees, bonuses, or some combination of these methods.

Client Agency Relationship

Definition Client-agency relationship means relationship between

advertiser and ad-agency. Cordial relationship with full trust and confidence is must to get maximum from ad agency and agency can also work with free hand. Certain basic principles have been evolved by the experts of advertising management to have sound relations between the agency and the media that help client and media to have long ending business relations to reap the benefits of continuous relations. These are pointed as;

Agency and the Clients:Advertising agency is known for selling professional services to the clients. There cannot be any hard and fast rules for arriving at working agreement between the two because each DVERTISING agency and its clients are unique working under their own set of circumstances and conditions.

Commitment:Every advertiser expects that the agency he engages refrains from accepting advertising work for his competitors. It is equally true that the advertiser shall not engage any other agency without the prior consent of the agency.

Prior Approval:The advertising agency is to get the prior approval for all the advertising work on the basis of client feedback and for all the expenses connected with the advertising. It is of crucial importance because; it is a matter of money spending and commitment. Payment:In accordance with the agency contract with the media, the client is to pay the agency at the media’s published rates and the agency, has the right to retain its commission allowed by the media. Any concession extended by the media is to be passed on to the client.

Mutual Trust and Confidence:

There should be an attitude of mutual confidence and trust. The agency should be allowed to participate in panning and there should be no interference in its executive. The company should have the freedom to contribute creative ideas to the agency and the later should accept them with due changes and

considerations.

Hoarding

• Hoarding A temporary wooden fence erected round a building. It is commonly known as large outdoor signboard.

• A 'classic' Hoarding, consisting of large pieces of printed paper attached to a durable backing on a structure. Hoardings are showing large, apparently humorous slogans, and distinctive visuals. Hoardings are highly visible in the top designated market area.

Major Types

• Bulletins- These are the largest standard-size hoardings, located primarily on major highways, expressways. They afford greatest visibility due not only to their size, but because they allow creative "customizing" through extensions and ornamentations (Decorations).

• Posters- They are the other common form of hoarding advertising, located chiefly in commercial and industrial areas, smaller than bulletins.

Other Types of Hoardings

• Painted Hoardings• Digital Hoardings• Mobile Hoardings• Inflatable Hoardings• Multi-purpose Hoardings

Painted Hoardings• Commonly such types of hoardings are painted on

large studios with the help of line drawings and oil painting.

• Usually to advertise upcoming albums or movies.• Hand painted & Graphical machines both are used

to make painted hoarding.

Digital Hoardings

• Created from computer programs and software. • Can be designed to display running text, images and other

contents. • Can display several different displays from the same

company, and even provide several companies.

Mobile Hoardings• Movable• Difficult to ignore. • Can be placed wherever there is heavy foot traffic due to an

event – including convention centers, train stations, airports and sports arenas.

• Information is retained through repetition.

Inflatable Hoardings & Multipurpose Hoardings

• An inflatable framework with an attached banner ad

• Most appear near sports events or exhibitions.

• If the hoardings have some extra feature like telecom antennas or power wiring, that comes under Multi-purpose hoardings.

Hoarding Contractors

• Who takes the responsibility for providing the space for the hoarding, not in creating, building or anything related to the idea or content of the hoardings.

• Acts like the mediator b/w ad agency and the space provider. • They take charges as monthly, annually or any particular time

interval. eg. KASHI AD AGENCY. They have their own fix frames on the building in crowded areas like Lanka, Sigra, or at the highways. Companies or Person who want to fix their hoardings at that frame may go to this agency.

Printers

• To advertise in newspapers, magazines, catalogs, or mailers.

• Usually, for printing ads which are combination of photographs, illustrations, and copy.

Types of Printing

• Letterpress Printing: Transferring to the paper from a raised surface. (Rubber stamp)

• Intaglio Printing: Transferring to the paper through an etched or depressed surface. (eg- Quality magazines often use for photo section & advertising inserts.)

• Lithographic Printing: Transferring to the paper from a flat surface which has been specially treated. Eg: News Paper

ADVERTISING EFFECTIVENESS

Proving the commercial value of advertising, that is, its contribution to shareholder value,

rather than just its creative merit

Does advertising really work?

The Need to Measure Advertising Effectiveness

• To justify money spent (budgets), ROI• To determine if the advertising campaign should be

stopped or continued• To determine possible areas of modifications in the

campaign messages• In the longer interest of the profession (some

evidence of the relevance of advertising & the practitioners

Stages of Advertising Campaign Measurement

• Pre-production/campaign stages - (copy testing, message & symbols testing etc)

• Production/campaign stages - (visibility, awareness research etc)

• Post-production/campaign stages (behavioural change, objectives, effectiveness research)

Feedback is needed at every stage to influence future campaign efforts

Methods of evaluating advertising effectiveness

• Pre testing Method : Testing is done during the preparation of advertisement.( consumer jury and trail area test)

• Post Testing Method: Testing is done after ad has actually been launched in targeted market area( Recognition Test and recall test)

• Concurrent Method: Testing is done when advertising campaign is running in the market. ( telephonic survey and customer diary test)

Methods of Measuring Advertising Effectiveness

• Checking advertising objectives (AIDA, DAGMAR) set before the campaign with results achieved afterwards

• Measuring the volume of sales before the campaign & the volume afterwards

• Calculating the number of returned coupons & ref no. quotes • Calculating sales leads and responses as a result of advertising

(ad to sales ratio)• Asking customers directly …How did you hear about us…Were

you…

Research Methods

• Primary & Secondary Research

• Past sales records/Current sales records• Observations • Testing (pilot surveys), focus groups etc• Questionnaires • Interviews (one-on-one, group) etc

PREPARATION AND CHOICE OF METHODS OF ADVERTISING

BUDGET The money spent in advertising forms an important cost factor

and no matter what type of company it is, large or small, budget decision may lead to profitability or drain away most of the profits. Advertisement can be considered as an investment into future sales. Proper budget allocation for long-term reinforcement effect is necessary for proper planning. Setting the budget is a different job and a lot of experience is required to avoid overspending yet maintaining the company’s image.

There are certain factors that must be taken into consideration for preparing the budget. These are:

• Stage of the product life cycle: Different budget allocation are made in different stages.The products which are selling and are in the mature stage of PLC require less expenditure. Where as the products in the introductory stage of PLC or new products require much heavier expenditure to create awareness.

• Market share is also an important factor for preparing of budget. To gain greater market share the advertising budget should be high.

• With competition one tries to out do the competitor and competitive parity method is used.

• Greater advertisement frequency needs greater expenditure and a higher budget.

• If the product can be differentiated and has noticeable features and attributes it may require lesser advertisement expenditure.

• It is difficult to measure the effectiveness of advertising sales, as it can be due to other factors as well.

Ethical and social issues in advertising

Advertising is primarily a means by which sellers communicate to prospective buyers.

What they communicate?

“The worth of their goods and services”

Contd…

ETHICS IN ADVERTISING

• Should not mislead the consumer • What it promises must be there in the performance of products• Ad should not be indecent and obscene• As advertising is also a social process, it must honor the norms of

social behavior, and should not offend our moral sense• ASCI (Advertising Standards Council of India) regulates the advertising

in India has the set guidelines

ADVERTISING AND SOCIETY

• Advertisements are not just the sellers• They reflect the society• Whatever is used in society is reflected in advertisinge.g. o Indian society is highly family oriented (example ads: savings for children,

daughter’s marriage)o Indian society is people-oriented, and not self-orientedo For the sake of our family and others, we Indians can postpone our own

gratificationo We are also fun loving (example ads: Lux, Coke, Denim Jeans etc)

ASCI GUIDELINES

• To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertising.

• To ensure that advertisements are not offensive to generally accepted standards of public decency.

• To safeguard against indiscriminate use of advertising for promotion of products which are regarded as hazardous to society or to individuals to a degree or of a type which is unacceptable to society in large.

• To ensure that advertisements observe fairness in competition so that consumers need to be informed on choices in the market place and the canons of generally accepted competitive behavior in business are both served.

ETHICAL ISSUES IN ADVERTISING

Advertising is a highly visible business activity and any lapse in ethical standards can often be risky for the company.

Some of the common examples of ethical issues in advertising are give below:

• Vulgarity/Obscenity used to gain consumers’ attention• Misleading information and deception • Puffery • Stereotypes • Racial issues• Controversial products (e.g. alcohol, gambling, tobacco etc)