INTRODUCTION TO ADVERTISEMENT
PAGE 1Dr.B.Arun
INTRODUCTION TO ADVERTISEMENT
CONCEPTS AND DEFINITION:
Advertising is the nonpersonal communication of
marketing-related information to a target audience, usually paid
for by the advertiser, and delivered through mass media in order to
reach the specific objectives of the sponsor. The American
Marketing Association, Chicago, defines advertising as any paid
form of non personal presentation of ideas, goods and services by
an identified sponsor.
So a form could be a presentation. It may be sign, a symbol, an
illustration, an ad message in a magazine or newspaper, a
commercial on the radio or on television, a circular dispatched
through the mail or a pamphlet handed out at a street corner; a
sketch or message on a billboard or a poster or a banner on the
Net.
Non-personal would mean that it is not on a person-to-person
basis.
Goods, Services, Ideas for action would mean making a consumers
work easy in knowing about the product of the firm. It could be a
television, or a banking service or filing your tax returns, which
the firm or the marketer wants the consumer to know about. An idea
could also be political parties letting the people know about their
party and why they should vote for their party. Adult education,
beware of AIDS, donate your eyes are but a few examples of
ideas.
Paid by an identified sponsor would imply that the sponsor has
control over the form, content and scheduling of the
advertisements. The sponsor could be identified by the company name
or the brand of the particular product.Matrimonial advertisements,
recruitment advertisements, tenders, classified advertisements,
notice, public announcements are also examples of
advertisements.Importance of Advertising:Advertising broadens the
knowledge of the consumer. With the aid of advertising, consumers
find and buy necessary products without waste of time.
This speeds up the sales of commodities; the efficiency of labor
in distribution increases; and the costs of selling reduces. It is
an accepted fact that without market stimulus of heavy advertising,
consumers might have waited another sixty years for the product
evolution that took place in less than ten years-it took; after
all, over sixty years from the invention of the safety razor before
the first acceptable stainless steel blade appeared in the market.
These words are more than enough to testify the potentialities of
advertising in the field of modern marketing. The benefits of
advertising; may be narrated as follows:
Benefits to Manufacturers:
1. It increases sales volume; on the one hand, it reduces the
cost of Production and, on the other, increases profit.
2. It helps easy introduction of products into the markets.
3. It helps to create an image and reputations not only of the
product but also have the advertiser.
4. Retail price maintenance is possible.
5. It helps to establish a direct contact between manufacturers
and consumers.
Benefits to Wholesalers and Retailers
1. Easy sale of the products is possible since consumers are
aware of the product and its quality.
2. It increases the rate of the turnover of stock.
3. It supplements the selling activities.
4. The reputation created is shared by the wholesalers and
retailers alike,
5. It enables them to have product information.
6. It ensures more economical selling.
Benefits to Consumers
1. Advertising stresses quality and very often prices. This
forms an indirect guarantee to the consumers. Furthermore,
large-scale production assured by advertising enables the seller to
sell the product at a lower cost.
2. It helps them to know, where and when the products are
available. This reduces their shopping time.
3. It provides an opportunity to the customers to compare the
merits and demerits of various substitute products.
4. This is perhaps the only medium through which consumers could
know the varied and new uses of a product.
5. Modern advertisements are highly informative.
Benefits to Salesmen:
Salesmanship is incomplete without advertising. Advertising
serves as the forerunner of a salesman in the distribution of
goods.
1. Introducing the product is made easy.
2. Advertising prepares necessary ground for a salesman to begin
his work. Hence sales efforts are reduced.
3. The contact established with the customer by a salesman is
made permanent through advertising.
4. The salesman can weigh the effectiveness of advertising when
he makes a direct contact with the customer.
Benefits to the Community:
1. Advertising, in general, is educative in nature.
In the words of the late President Roosevelt of the USA,
"Advertising brings to the greatest number of people actual
knowledge concerning useful things; it is essentially a form of
education-and the progress of civilization depends on
education."
2. Advertising leads to large-scale production creating more
employment opportunities.
3. It initiates a process of creating more wants and their
satisfaction resulting in a higher standard of living.
For example, advertising has made more popular and universal the
uses of such inventions as the automobiles, radios and various
household appliances.
To quote Sir Winston Churchill, "Advertising nourishes the
consuming power of man. It creates wants for a better standard of
living.
It encourages individual effort and greater production."
4. Newspapers would not have become so popular and so cheap if
there had been no advertisements. The cheap production of
newspapers is possible only through the publication of
Advertisements. In other words, it is the advertising revenue that
makes the newspapers live.
5. It assures employment opportunities for the professional
artists.
COMMUNICATION MODELS IN ADVERTISINGAIDA MODEL:
At the time of purchase by two-way communication between the
intending buyer and the sales staff.
Let us examine the attention, interest, desire and action
components in more detail.
Attention:
The layout is the most important factor that directs attention
to an advertisement. Typography and colors used in the layout can
rivet us. The size of the advertisement also compels us to get
attracted to it. Contrast by white space is a good
attention-getter. Movement is a vital element for getting
attention. Movement can be physical or emotional. The position of
the advertisement also adds to its attention value. Celebrities in
the advertisement, dramatization; model selection, illustration all
this contribute to attention.
Interest:
Ad seen does not mean ad read. Mostly people see the
illustrations and do not read the copy. Here illustrations have to
work hard. They should, together with headlines must provoke
further reading. The selection of the illustrations and its
integration to life are thus very important. Even copy format is
important for interest creation. A humorous copy works some people
on by a scientific copy, and some. Here there is a dilemma for a
copywriter. He has to satisfy maximum number of people so he has to
search for a common denominator of interest.
Desire:
The basic purpose of advertising is to create a desire for the
product or service being advertised. It is a function of appeals
used for the motivation of people. Vivid description or copy always
helps. Buying motives, physiological as well as psychological, make
people purchase products. The copy of the advertisement must kindle
these motives. There are certain barriers here - certain
reservations in the mind of customers. We have to overcome them. We
have to convince by giving evidence, testimonials, endorsements,
and facts and figures. On arousal, people become prone to buy the
product.
Action:
The logical end of the desire aroused is to buy the product.
1. Products are associated with company.
2. The message is repeated.
3. Certain immediate action appeals are used.
HIERARCHY OF EFFECT (HOE) MODEL
AWARENESS: -
If most of the target audience is unaware of the object, the
communicator's task is to build awareness, perhaps just name
recognition.
This can be accomplished with simple messages repeating the
name.
Even then, building awareness takes time.
KNOWLEDGE:
The target audience might have company or product awareness but
not know much more.
P&G may want its target audience to know that it is a
private 24-year company with excellent programs in Engineering and
the Tech.
P&G Company thus needs to learn how many people in the
target audience have little, some, or much knowledge about
P&G.
The Company may then decide to select product knowledge as its
first communication objective.
LIKING:
If target members know the product, how do they feel about
it?
If the audience looks unfavorably on P&G Company, the
communicator has to find out why and then develop a communication
campaign to make favorable feelings.
If the unfavorable view is based on real problems of the
company, then a communication campaign alone cannot do the job.
P&G will have to fix its problems and then communicate its
renewed quality.
Good public relations call for "good performance followed by
good words
PREFERENCE:
In this case, the communicator must try to build consumer
preference.
The target audience might like the product but not prefer it to
others.
The communicator will promote the product's quality, value,
performance, and other features.
PURCHASE:
Finally, some members of the target audience might have
conviction but not quite get around to making the purchase.
They may wait for more information or plan to act later.
The communicator must lead these consumers to take the final
step.
Actions might include offering the product at a low price,
offering a premium, or letting consumers try it on a limited
basis.
Thus P&G might invite selected audience/customers to visit
the shop and attend some products. Or it might offer something to
the customers.. The communicator can check on the campaign's
success by measuring audience preferences again after the
campaign.
CONVICTION (Belief):
A target audience might prefer a particular product but not
develop a confidence about buying it.
Thus some high school seniors may prefer P&G but may not be
sure they want to go to company.
The communicator's job is to build confidence that going to
company is the right thing to do.
DAGMAR Approach:Dagmar Approach is the task of measuring ad
effectiveness will not be daunting if we clearly spell out the
advertising goals. Russel H. Colley (1961) pioneered an approach
known by the acronym DAGMAR Defining Advertising Goals for Measured
Advertising Results, where to establish an explicit link between ad
goals and ad results, Colley distinguished 52 advertising goals
that might be used with respect to a single advertisement, a years
campaign for a product or a companys entire advertising philosophy.
These goals may pertain to sales, image, attitude, and awareness.
Some of the goals are:
Persuade a prospect to visit a show room and ask for a
demonstration.
Build up the morale of the companys sales force.
Facilitate sales by correcting false impression, misinformation
and other obstacles.
Announce a special reason for buying nows (price, discount,
premium and so on).
Make the brand identity known and easily recognizable.
Provide information or implant attitude regarding benefits and
superior features of brand. According to DAGMAR approach, the
communication task of the brand is to gain (a) awareness, (b)
comprehension, (c) Conviction, (d) image and (e) action.
ECONOMIC ASPECTS OF ADVERTISING
Effects of AdvertisingA. Production Costs
Advertising makes the firm to work at higher activity levels by
creating demand for the products.
The implications are:
1. It reduces cost of production
2. The overall production costs go on falling with increase in
the output.
3. The consumer need not worry so long as he gets the product at
lower prices provided the quality standards are maintained by the
producer.
B. Effects on Distribution Costs
The distribution costs are selling and distribution costs. It is
argued that by avoiding these advertising costs, it is possible to
reduce the consumer prices. The implications are:
1. Advertising costs represent only an element of distribution
costs like transport, warehousing, finance and market research, and
are justified because of its economic and constructive role.
2. Because of increased efficiency of advertising industry, the
unit cost is brought down though these costs are ever on the line
of increase.
3. Economy in advertising costs has been possible because it
creates both primary and secondary demand for the products.
4. It has cascading effects in the sense that the middlemen need
not spend once the producer spends on this item.
C. Effects on consumer Prices There is definite relationship
between the advertising expenditure and consumer prices.
The implications are:
1. Rise is advertising expenditure rises the price of the
consumer
2. In the short-run prices will rise, but in the long-run, these
prices will come down caused by better utilization capacity by the
firm.
3. The amount of advertising expenditure goes on increasing with
the growing intensity of competition pushing the prices up.
4. Advertising is capable of creating product and company image
through brands and this may result in creating monopoly
conditions.
2. Competitive advertising expenditure: Advertising costs are
ever on the line of increase over the years. That is why consumers
feel that there should every effort to cut these expenses to
benefit the consumers in the form of reduced consumer prices. There
are three fundamental reasons responsible for rise in the
advertising expenditure.
1. Introduction of entirely new product in the market dominated
by established units.
2. Introduction of an established product in a new market to
develop its share.
3. Sharp competition for the product range. The expenditure on
the first two categories is unavoidable and productive involving
creative activity.
3. Advertising create monopoly
Advertising attempts to create maintain and extend demand for
the goods through brand image. After creating such an image, it
establishes an exclusive identity for that brand and consumers
accept the brand as a separate product. The consumers develop brand
loyalty. The monopoly conditions so created are invisible and not
even within the government regulations.
Advertising creates brand and corporate image for the product.
This only gives them legal protection for their brands. Their
monopoly is to the extent of brands only. It is wrong to say that
the brand owners have unlimited power to charge any price they
like. Higher prices stimulate others to enter the line with Close
substitutes or competitive products. On the contrary, it encourages
keen competition among the producers to make available cheaper and
better products.
4. Advertising expand Consumer Market
There is said to be expansion of consumer market when:
1. More and more people go in for a commodity than before.
2. The existing class of consumers increase their individual
purchases.
3. The manufacturers discover new markets for their
products.
ADVERTISING AS A SOCIAL PROCESS1. Advertising a Useful
Activity?
Advertising is useful activity because it creates utilities. It
creates form, place and time utilities.
In addition it creates perception utility.
It is useful to the producers because it increases, stabilizes
and diversifies sale turnover
It farms and maintains markets.
It is useful to the middlemen because, it guarantees quick
sales
It acts as salesman- it maintains retail prices. It is useful to
the salesmen because, it reduces his job burdenbuilds his
confidence. It is useful to the consumers because, it helps in
decision-makingensures better quality goods at reasonable
pricessaves good deal of time.
It is useful to the government because, it is a source of
revenueit reduces the tax liability on general public. The society,
in general stands to benefit as:
It generates gainful employment opportunities
uplifts the standard of living
provides new horizons of knowledge
it upholds the culture of the nation.
Thus, it is a useful activity as it is known for its ability to
create utilities.
2. Advertising Influence the Consumer Prices
Advertising has definite influence on consumer prices. The
actual effects are:
(1) In the short-run advertising increases the consumer prices
but, in the long-run prices are reduced because of saving in the
cost.
(2) Advertising costs cross two limits namely, creative and
competitive. So long it remains creative; one need not worry,
however, if turns competitive, neither the producers nor the
consumers are well off.
(3) The brand image created makes the consumers to pay higher
prices because of price rigidity and exploitation becomes
common
(4) Whenever, advertising is effective, it has salutary effects
on consumer prices.
3. Advertising having any Bearing on Consumer Choice?Advertising
has favorable effect on consumer choice. It helps him in preserving
and promoting his independence by informing him,
by explaining him,
by educating him,
by guiding him of the products and services.
In short, the consumer gets the best for the money he
spends.
4. Advertising too Much Persuasive? Persuading is the power of
advertising.
It is not so because, whatever an advertisement says is not
binding on the consumer.
Again, there is a time lag between an advertisement being issued
and the goods or services being bought.
Consumer who is to decide and act. Persuasion being the heart of
advertising, it compel him but does not force him to buy. It
convinces but not forces any one to go in for a particular product
or service. It is the best guide for wise decision-making
5. Advertising Influence the Consumer Welfare and
Protection?
Consumer Welfare and Advertising:
Every consumer is worried about the quantity, quality, time and
price of the goods and services. The question is what goods and
services are needed and what are not needed by the society.
Unfortunately, what is good for one is bad for another. That is
why governments tried to decide this through Acts and Laws. It
decided the good and the bad for the society.
There is nothing like advertising in winning the hearts of
people. Advertising can do this effectively becauseit informs,
educates, and improves his knowledge about the products and
services.
6. Consumer Protection and Advertising: Consumer protection is a
form of social action which is designed to attain the well-being of
society namely consumers.
There are two possible ways to protect the consumer (1)
Governmental regulating, and (2) Self-regulation
Governments are playing their role by passing and enforcing
number of Acts in favour of consumers. Government efforts are a
must, but not all. It is so because; law breakers are wiser than
the law-makers.
Self regulation, therefore, has wider scope and effect; in this
regard it means two things, namely consumer associations on one
hand and associations of the participants in advertising industry.
Consumer associations can help in hooking and booking the culprits
and handing over them to government for punishment. The
associations of advertisers, advertising agencies, media-owners, or
combinations of these can welcome the pitfall on their part from
their so called opposite party namely consumers. In the final
analysis, it is the co-ordination of these opposing units that
counts.
Ethics and Truth in Advertising:Ethics and truth are closely
interlinked concepts.
Ethics and Advertising: Ethics is branch of social science that
deals with what is good and bad and hence moral values and
responsibilities of an individual and a society.
Morality is comprehensive than that of ethics. Morality speaks
of what is right or wrong.
Speaking from this angle, advertiser has moral responsibility
that it is good.
Good advertisement does not mean effective but one which is
right.
Right advertisement is one which is just and true, proper and
appropriate.
Truth and Advertising:
Though truth is vital to the sound economic health of the
country, it is very difficult to define truth. For a common man,
truth implies factsthe events that have taken place over a period
of time. It is same as judicial truth. This judicial truth is not
applicable to the world of advertising. That is why no
advertisement gives the total picture of the product or service. It
presents only the brighter side concealing the defects. It is
commercial honesty that prevails than the absolute honesty.
The different forms of this commercial honesty are:
(1) Facts exaggerated,
(2) Facts perverted, and
(3) Total lies.
Since the advertiser has the moral and social responsibility, he
cannot afford to be dishonest.
The main reasons for this are:
(1) That his reputation is at stake
(2) That he cannot take undue advantage of the trust and faith
put in him by the society,
(3) He has legal responsibility which is another side of the
coin of morality, (4) that the consumers are getting organized,
5) That truth never fails, but it prevails.
ADVERTISING OBJECTIVES1. Informative advertising.
2. Persuasive advertising.
3. Reminder advertising.
RIP = Remind - Inform - Persuade
1. Informative advertising:
To create awareness of the organization.
To explain the characteristics of the organization
To correct false impressions about the organization
To reduce peoples worry or fears about visiting the
organization.
To build or enhance the organizations image or position.
2. Persuasive advertising:
To increase customer preference for the organizations
services.
To increase customer loyalty to the organization.
To encourage customers to switch from using a competitive
organization.
To convince customers to book at the organization now or in the
future.
To change customers perceptions.
3. Reminder advertising:
To remind customers about where they can book the organizations
services.
To remind customers about facilities or services those are
unique to the sponsoring organization.
To remind customers about when they should book or reserve the
organizations services.
To remind customers of the existence of the organization.
Moreover, the purpose of advertising are as follows:
1. Launch of a new product
2. Modification in products
3. Change in price
4. New packing
5. Promotional plans, e.g. buy one get one free
6. Distributors and retailers address
7. Educating the customers for proper use of the product
8. To retrieve lost sales, e.g. due to strike in the factory
9. Reminder ads and for maintaining sales
10. To recruit staff
11. To appoint distributors and dealers
12. To invite technical staff of industrial customer to ask for
literature, come to visit
13. Competitive comparative advertising
14. To assist retail sales
15. To help salesperson get a foot in the door of industrial
customers
16. To attract investors through special ad campaigns
17. To export/go international (separate chapter is provided for
this topic)
18. To announce financial results of the firm
19. To sell direct e.g. Readers Digest
Setting advertisement objectivesThe advertisement objectives can
be grouped in to the following
Building awareness (informing): The first task of any
advertising is to make the audience appreciate that the product or
service exists and to explain exactly what it is. Creating
favorable attitudes (persuasion). The next stage and the one that
preoccupies most advertisers, is to crate the favorable attitude to
the brand which will eventually lead the consumers to switch their
purchasing pattern
Maintenance of loyalty (reinforcement) One of the tasks which is
often forgotten is that of maintaining loyalty of existing
customers who will almost always represent the main source of
future sales .There are general objectives of advertising that
covers goals like encouraging increased consumption of a product by
current users, generating more sales leads, increasing brand
awareness, increasing repeat purchases and supporting the personal
selling efforts.Some of the broad advertising goals are explained
as per the following:
1. Launch of New Products and Services:
In a saturated market, the introduction of new products and
brands can give the seller a tremendous opportunity for increasing
his sales. In the case of innovative products (totally new to the
market) such as Laptop Computers, a great deal of advertising has
to be done over an extended period of time to make people aware of
What the product is and What it does and How the customers would
find it useful. In addition, the advertisement also carries
information about the availability of the product and facilities
for demonstration/trial etc. Similarly new brands of existing
product categories are also promoted quite aggressively. Two recent
examples are the launching of Pepsi Blue soft drinks during the
world cup and launch of Mountain Dew in subsequent period.
2. Expansion of the Market to Include the New Users:
Advertising can be used to tap a new segment of the market,
hitherto left unexplored. For example TV and Video Camera
manufacturers who have been concentrating on domestic users and
professionals can direct their advertising to the government
institutions and large organization for closed circuit TV networks,
security systems and educational purposes. Another way of expanding
the consumer base is to promote new uses of the product. For
example, Johnsons baby oil and baby cream were originally targeted
to mothers. The same products have now been directed towards the
adult market for their personal use. Similarly, Milkmaid was
originally promoted as a substitute for milk. It is now being
advertised as an ingredient for making sweet dishes and also as a
sandwich spread for children.
3. Announcement of a Product Modification:
For such advertising, generally, the terms new, improved, Excel
etc. is used as prefixes to the brand name. For example, Surf Excel
gives the impression of an advanced detergent powder, although
there may be no tangible difference between the earlier brand and
the new one. Sometimes the customer as a modified product e.g. a
new refill pack for might perceive a minor packaging change
Nescafe
4. Announcement of a Special Offer:
Because of competition, slack season, declining sales, etc,
advertising is used to make a special offer. For example, Colgate
Dental Cream campaign about 20% extra was to increase volumes
through a sales promotion campaign. Hotels offer special rates
during off- season. Similarly many products like room heaters,
fans, air-conditioners, etc, offer off-seasons discounts to promote
sales.
5. To Announce Location of Stockiest and Dealers: To support
dealers, to encourage selling of stocks and to urge action on the
part of readers, space may be taken to list the names and addresses
of stockiest and dealers.
6. To Educate Customers: Advertisement of this type is
informative rather than persuasive. This technique can be used to
show new users for a well-established product. It can also be used
to educate the people about an improved product e.g. Pearl Pad odor
free jars and bottles. Sometimes societal advertising is used to
educate people on the usefulness or harmful effects of certain
products. For example, Campaigns against unsafe sex and AIDs are
sponsored by government and voluntary agencies. Similarly,
advertisements discourage the consumption of liquor and drugs.
7. Reminder Campaigns: This type of advertising is useful for
products, which have a high rate of repeat purchase, or those
products, which are bought frequently e.g. blades, cigarettes, soft
drinks, etc. The advertisement is aimed at remaining the customer
to ask for the same brand again. The campaign of Dil Maange More
during television breaks of cricket matches is to have a top of
mind recall.
8. To Sought Dealer Cooperation and Motivation: A successful
retail trader depends upon quick turnover so that his capital can
be reused as many times as possible. Dealer support is critical,
particularly for those who have limited shelf space for a wide
variety of products. Advertisers send display material to dealers
for their shops, apart from helping the retailer with local
advertising.
9. To Create Brand Preference: This type of advertising does two
things: (i) it creates a brand image or personality (ii) It tells
the target audience why Brand X is better than Brand Y. In this
type of advertisement, the product or brand acquires a personality
associated with the user, which gives the brand a distinctive
image. The second type of advertising also known as comparative
advertising takes the form of comparison between two brands and
proves why one brand is superior.
10. Few other objectives: Advertising also helps to boost the
morale of sales people in the company. It pleases sales people to
see large advertisements of their company and its products, and
they often boast about it. Other uses of advertising could include
recruiting staff and attracting investors through Public Issue
advertisements announcing the allotment of shares etc.Factors
should be considered in setting objectives:
Market segmentation
Buyers Behaviour
Product personality and perceptions
Situational factors
Benchmarks & norms for Measurement
Apart from the above, the company has to considera. The Product
and its virtues.
b. The Competition.
c. The segment of the Market aimed at all of which should be set
down in the marketing objective.
Step I: Define the audience.
Issues like Social class, Income, Occupation, Values and
ambitions, Attitudes to Product. Step
II: Define the Stage of the Communication task.
What is the Specific Communication task? Communication is a
process of acting on the mind of your audience. We must create a
state of mind conducive to purchase".
Step III: Define Consumer Preference or Resistance.
What do consumers like about Brand? What do they dislike? This
is where you need research into consumer attitudes:
Step IV: Define the product promise or claim. 1. It must be
meaningful and of value to consumer
2. It must be a distinctive unique claim.
3. It must concentrate on this unique claim or the Unique
Selling Proposition (USP). "Advertising is the art of getting a
Unique Selling Proposition into the heads of the most people at the
lowest cost"
Step V: Define the Brand Image:
What will be the brand's 'Personality?' i.e. what character or
association does it evoke?ADVERTISING AGENCY
Meaning:
Advertising agency is an independent organization which renders
specialized services in advertising In particular and in marketing
in general. In legal term, they are not agents but independent
firms having their own organization.The major operational
responsibilities may be as creative services, account management,
research and promotional services.
ADVERTISING AGENCYMEANING AND ORGANISATION
What is an advertising agency?
How does the advertising agency work?
There are three main components of the advertising industry
(1) Sponsor or advertiser,
(2) Media, and
(3) The advertising agency.
An organization that decides to advertise its products is the
sponsor or advertiser. The sponsors advertising manager often
relies on some outside experts to perform many of the tasks
involved in launching an advertising programme. These outside
experts business houses may be called advertising agency.
These advertising agency (if appointed by an advertiser to
campaign the advertising programme or the advertiser contact the
various media such as newspaper, radio, television, film or outdoor
posters etc. for campaigning
Functional Departments of an Advertising Agency:
The organization of an advertising agency may be divided in
various departments entrusted with a specialised function to be
performed under the inchargeship of a Director or Vice president or
manager.
The main departments in an agency are
1. Contact Department:
Creation, sustaining and extension are the three basic tenets of
the department. It gets new business and on the other band tries to
maintain the existing business. The Account Executive is the key
man of the department who acts a bias on between the agency and the
clients. As far as the maintaining of existing accounts is
concerned, the good services of the agency towards clients count
much. It helps in getting new business from them in acquiring new
business from new accounts through them.
2. Media Department:
This department is entrusted with the work of selection of media
for the advertiser according to clients direction or to the budget
allocated for this purpose by the client or to the purpose; it
serves best to clients product. In these circumstances it selects
the best possible medium.
It chooses the channels of communication through which the
message is to be carried out to the masses or target consumers. The
media analyst and estimator decide to approximate kind and number
of potential customers and then to choose the media that ge the
message to them.
3. Copy Department:
The copy director, preferably and art minded individual is the
head of this department. The advertisement copy is the heart of
advertising programme as it contains the message. The department
coordinates the work of copy-writing with the assistance of copy
chief and copywriters. Copy-writing requires imagination, flair and
fluency in the language and a method of representation. The
department works closely with the accounts executive and research
department.
4. Art and Visualization Department:
The Head of this department is Art Director. The director should
be copy minded for the same reason as copy-director should be
art-minded. The art director is assisted by artists layout men and
visualizes. It is the duty of the department to get the visuals and
layouts prepared for press advertisements; posters, calendars,
painted bulletins, car cards and other outdoor pieces. Some
agencies get this work done by the -outside artists. There should
be a close association between the departments of Art and copy.
5. Production Department
When a copy is ready the agency proceeds to its mechanical
production through its mechanical production department headed by a
director. Agencies generally use outside units for these production
services. The production manager has to more to typographers or
type setters to have a copy set in type, later to the photographer
of the illustrations. Finally he is to move to the electrotyper for
electrotypes; other duplicate material in such qualities as
needed.
6. Finance Department
This department is responsible for maintaining accounts, billing
and collecting the dues from its clients, verifying the appearance
of advertisements in different media in individual cases, checking
media invoices against orders, paying the bills to the media owners
and looking after all the routine matters relating to accounting,
recording etc.
7. Research Department
This department of advertising agency is engaged in the study of
the effects of sales activities at the last point of distribution
of a particular product. The research director takes assistance of
analysts, investigators, marketing assistants, statistical clerks
and librarians. All these persons help in research work. Research
may enable the agency to get more business by making stronger
presentation to more desirable clients. It helps better advertising
for clients. The contact department makes extensive use of such
research outcome while contacting his clients and convinces
them.
8. Public Relation Department
The growth and survival of an advertising agency depends very
much upon the public opinions, Supports and feelings. The
department establishes and maintains mutual understanding between
the organization and the public. It is public Opinion that decides
the destiny of the agency. It raises morale of the agency personal
and goodwill for the company, the department is headed by Public
Relations Director who is to struggle hard to maintain always high
opinion about the firm. Thus it performs a liaison work between the
clients and the various sections of the Public-customers employees,
middleman, and shareholders.
An agency maintains the above departments but the nomenclature
and the number of departments may vary from agency to agency
depending upon thu size of the business. The agency may take help
from outsiders or specialists instead of establishing a full
fledged department or the activities of two or more departments may
be carried out only by one department.
SERVICES RENDERED BY ADVERTISING AGENCY
What are the main services rendered by an advertising
agency?
1. Timely and Satisfactory Work
Agency is highly specialized in the field of publicity; it has
wider contacts with or employs the experts in the various
activities of the publicity business. It also has wider links with
media owners that facilities the agency to enter into Contract for
time and space. Its highly specialized and experienced personnel
like photographers, lithographers, singer, announcer, copy-writers
printers, artists, painters, actors etc. are always in the best
service of the client and the duty of the agency director is to top
the skill of these personnel fully in the interest of the
business.
With thee ready-made facilities, the quality of advertisement
improves to a greater extent and guarantees timely presentation of
advertisements to the satisfaction of advertiser.
Satisfaction of advertiser is a must otherwise agency may lose
the client.
2. Boon to Small and Medium Sized Units
Advertising agency is a boon specially to small and medium sized
business units because such units are not financially so sound that
they can establish an advertising department in the organization
and bear the expenses of such establishment, nor can they undertake
the ticklish and bothersome work of contacting the media owners and
employ other specialists.
The agency undertakes the responsibility of designing
advertising programme on behalf of the advertiser, at economical
terms with all the benefits of care freeness to the advertiser.
Even large sized units that are not bothered about establishing the
advertising department also take help of such agencies and enjoy
more time for the advertisement of their business. Thus advertising
agency is a boon to small and medium sized as well as large sized
units.
2. Sound Appropriation of Funds
The agency assists the advertiser in appropriating the
advertising funds economically because it knows the cost of
advertising with each media and therefore, its experts staff can
better advise the advertiser in the allocation and best utilization
of available funds. In absence of such expert advices, the common
adviser may misapply the funds to his disadvantage due to the lack
of through knowledge of advertising activities and their costs.
Thus, the advertiser can utilize his available advertising funds in
the best interest of the business.
4. Conducting Market Research
The advertising agencies periodically conduct the market
researches with their full time seasoned staff. They maintain a
research department in their organization to collect, analyze and
interpret the market data in relation to various market segments,
product (not relating to any particular brand), and other marketing
activities.
Research dilemma is the greatest when the agency first takes a
new case of advertising where it is urgent to get fully acquainted
with the clients past history, present needs and future potential.
The outcome. of the research can very easily be applied by the
agency in carrying out the work more efficiently and for the
benefit of clients such as better designing of advertising
progamnme with a timely message can be presented that will result
in better business to the client and to the agency.
5. Non Advertising Activities
Recently, agencies provide a wide range of non-advertising and
marketing activities. They provide help inselecting target
consumers; determining prices and discounts; designing products and
packages; and developing channel of distribution strategies. Such
agencies which have moved into these activities, in essence, become
marketing specialists or consultants. In fact, some organizations
virtually term the planning and directing of the marketing
programme over to agencies. The non-advertising marketing services
are performed either by the agency itself or it arranges the
specialists for such services:
(a) Its competitive environment is rapidly changing (as
contrasted with a stable environment);
(b) The agency has much knowledge above the products and the
industry; and
(c) The cost of agency services are lower than the costs of
alternative sources.
Thus, advertising agencies provide a wide range of advertising
and non-advertising services to their clients and thus they share
the burden of their accounts. They take up the responsibility of
carrying out the full advertising campaign. In recent years,
limited service agencies have sprung up that provide faster service
at lower cost.
FUNCTIONS OF AN ADVERTISING AGENGY
What are the major functions of an advertising agency?
An advertising agency is an independent company providing a
series of services to its clients. It helps advertisers create
advertisements and place them with the appropriate media. An agency
is purely a service business, manufacturing nothing but selling its
services. It produces ideas for what will make good advertising,
its assets are creativity and expertise. It has nothing tangible
except its office furniture.
Advertising agencies are an important, sometimes, and
indispensable, aid in devising and implementing advertising
strategy.
Consumer goods manufacturers heavily depend upon advertising
agencies during the advertising decision process, perhaps, because
of the acknowledged difficulty of developing advertising rather
than being ignored. Advertising agencies have specialized in the
service of creating and preparing advertising. They do this for
their clients at economic rates.
Media planning
One of the more important services provided by an advertising
agency in media planning. They employ media specialists for their
clients in determining media mixes and schedules. Much of the
significant developments in the field of media planning have been
the result of work of, and financial support by, these agencies.
These agencies also provide some other non advertising services
such as marketing research, public relations tasks, helping the
clients make decisions on price fixation, package and product
designing, distribution, and presentation of advertising strategy
to client personnel.
Among other services, agencies study the products, markets
competitors and the promotional problems of their clients whom they
usually call their accounts. They work for them and attempt to
build attractive and favourable image for their accounts brands.
Agencys accounts executive or accounts representative is the
liaison person who manages an account.
An advertising agency usually performs the under mentioned major
functions:
(I) SELECTION OF PROSPECTS
Obtaining new clients in every business is the most important
function and so is the main task of advertising agency. The
preference in choosing out the clients is given to those firms
which have sound values, able management, efficient operations
products and services. The advertising agency should consider
certain points into mind while selecting the prospects
(a) The advertisers financial position is the prime most
consideration because the agencys credit relationship with a client
is that o. creditor and debtor. If the financial position of the
client is Sound the agency will not find any difficulty in
realizing its bills.
(b) The new clients should be growth companies and located
nearby because if an advertisers sales have been falling or if his
advertising has been getting low ratings, may be, he will be more
receptive to the idea of changing agencies.
(c) The agency should not go after prospects that are directly
competing with the present clients. An agency handling DCM RATH
Account would hardly try for Hindustan Livers DALDA Account for the
reason that the agency client relationship is very intimate and
confidential.
An agency may drop a small account to get a big one (if both are
competitors).
How to Select New Clients:
In getting new clients, the following techniques are generally
applied
(i) An advertiser approaches a number of advertising agencies by
posting an exploratory screening questionnaire. The advertiser will
then select an agency out of those which responded after going
through their terms and conditions. The account executive may
contact the adviser and convince him of their services and get the
account.
(ii) An agency may be recommended to an advertiser who likes a
change because the other agency could not satisfy him. Tips may
come from the media or media representative or trade journal.
(iii) Another technique to get new accounts is for: the
advertising agency to advertise. The direct mail to some selective
accounts may be the most suitable, confidential and economical
method. It gives the agency an opportunity to demonstrate its
capabilities. The agency may advertise in trade journals, although
less used, to get new clients.
(iv) The major technique, generally followed by the agencies to
get new prospects is personal contact and solicitation. It is the
business of account-executive to contact new and new accounts.
(2) ADVERTISING PLANNING
The next function of the full service advertising agency is the
advertising planning for its clients, in big concern, the
responsibility of the ad planning is with the advertising
department headed by advertising manager. In effect a portion of
that responsibility may be delegated to the agency if it is
used.
The agency, in. addition to assisting in the development of
advertising plan itself, the agency must do considerable planning
in carrying out its own functions of creating and placing
advertising. For this purpose, the agency requires a thorough
knowledge of the firms products, its advertising history, market
conditions, firms distribution method, competitors productstheir
pluses and minuses, as compared to the clients products, if the
agency is to do an effective job. It will give an idea how the
advertiser wishes to position the product in the consumers
mind.
For this purpose, the agency conducts extensive market research
for the clients product in order to ascertain the extent of the
market for the product and to decide who buys it, when. Where, how,
and why.
The correct timing and direction of the advertising campaigns
can be added by such information. Competitors activities are also
to be watched.
In planning the advertising for the particular product. The
agency must analyze marketing methods and distribution channels
used in the past for the product in order to obtain specific
information about the business environment in which the advertising
message is to operate. The advertising message must be relevant to
the present and to such a nature that it is aesthetically
acceptable to the consumer and to the trade.
Next planning job is to decide or think about the advertising
medium in which the ad is to appear.. The agency knows better about
the character of each medium in addition to audience figures and
comparative costs. The advertising message must be adapted to the
medium in which it is to appear. The message in different medium
will be different and the input of different media will be varying
on different market segments for specific products.
As the agency has background of product, market, distribution
and media knowledge, it can recommend advertising strategies for
presenting the product to the prospective buyers. These ideas are
submitted to client for approval. On approval, the agency will
carry them out.
(3) MEDIA SELECTION
Media choices are made before the ads are credited; Media
selection is the highly specialized function of the agency. The
goal of media selection is to choose the advertising medium or a
media mix that will do the best in the present circumstances and
will appeal to the clients prospects. Securing, the right audience
is the most important factor in the media choices, but cost factor
is not the least important. So, in making a media-choice several
factors such as media-cost, circulations, population to which it
serves, audiences, incomes and other relevant information must be
asserted.
(4) CREATIVE FUNCTION:
After media choices are made, the ads are created. Specific
advertisements are created. Copy is written layouts are done;
illustrations are drawn or photographed; advertising messages are
prepared in correct mechanical form for running in the selected
media and commercials are produced.
These functions are performed by a varied group of creative
people including writers, artists, designers, producers, and
graphic art specialists. Creative function may be under one
department or various separate departments for copy, art, broadcast
and production may be established depending upon the nature and
size of the business.
Creativity involves a novel or infrequent expression, response
or concept. Creativity in advertising must be oriented to and
correlated with the marketing situation and serve as a
communication problem solver. It may be described as presenting a
product in a way that tempts people to buy it. The personnel of
selling agency generate new ideas in the interest of
advertiser.
(5) RESEARCH
Research is a major function of ad agencies to support the
decisions taken in the creative and media areas. The agencies
gathers and analyze actual information about the product, market,
competitors and buyers habits that may help the creative personnel
to make better advertisement copy or message for client. Such
research may convince the clients.
(6) MARKETING FUNCTIONS
Advertising agency also carry non- advertising marketing
functions such as selecting target consumers determining prices and
discount ; designing products and packages Developing channels of
distribution strategy etc. and are called marketing specialist or
consultants.
(7) COORDINATION
Coordination with clients sales force and distribution network
to ensure the long run success of the advertising programme is one
of the important functions of the adverting agency, Maximum sales
from the combined efforts of salesmen, distributors and
retailersall assisted by advertising are the goal of the activities
of the agency.
Thus, an agency performs many important functions that relieve
the advertiser a lot if he decides to advertise.
METHODS OF REMUNERATION
Compensation For Agency Services:
The main motive of all business is to earn profits and the
business of advertising is not an exception to it. There are two
popular methods for compensating advertising agencies for their
services
(i) Commission Method, and
(ii) Fee method or system.
(1) Commission Method of Compensation
Under this system, the agency receives an amount equal to 15
percent of the cost charged for media space or time as the
commission from media owners. The rate of commission varies from
media to media and from country to country but 15 per cent rate is
almost universal. The media bills the agency for the state rate (as
agreed) less 15 percent.
The agency, in turn, bills the advertiser for the full rate
charged by the media before deducting the commission. The
difference of the bill paid by the agency to the media owner and
charged by the the agency from the client is the agencys income for
the services rendered by it to the client.
An example will illustrate how the commission system works.
Suppose an agency prepares and places an advertisement in a
magazine at an agreed charge for Rs. 20,000. The magazine will bill
the agency for Rs. 17000 (Rs. 20,000 as agreed price less 15
percent). The agency, in turn, will bill th advertiser for Rs,
20,000 (cost of advertisement charged by the media). The difference
of Rs. 3,000 is the income of the agency which may be regarded as
the remuneration for its services.
Generally, a cash discount is also offered by the media at the
rate of 2 percent for prompt payment within a stated period and
this discount is passed on to the advertiser on similar terms.
Advantages and disadvantages of the system:
The commission system has the sanction of long usage and is
widely used because of its simplicity. This system simplifies the
task of media greatly as the agency is directly concerned for the
payment of media charges. The system also stimulates the
productivity of agencies due to keen competition for accounts.
But for many years, there has been considerable dissatisfaction
over this straight commission system. Due to more and more
competition, the agencies have to offer more services to their
clients without charging any extra amount as compensation which
results in declining trend of profits of the agencies. On the other
hand, large advertisers who bought -much media time and space felt
that they were paying too much. The agencies received the same
commission whether they placed the same advertisement in 10
different media or produced and created 10 different ads by
incurring extra costs.
It also alleged that the agencies recommend an advertisement
programme that calls for extensive use of expensive media or of
media that require little in the way of agency services. This
argument has minimal validity over a period of time, for loading a
client with unneeded or in appropriate media not only would be
unethical on the part of the agency but would cause client
dissatisfaction, It would certainly lose the client and the agency
will be loser.
(2) Fee System
Agency executives sometimes feel that 15 percent commission
received from the media owners yields an insufficient income it,
the light of its many services to the client. This assertion may be
the case where the agency is working with small accounts. On the
other hand, advertisers argue that the 15 percent commission to the
agency from the media owners is too high.
Heavy users of Television are likely to take this position, for
once a television commercial is produced and created, it may be
used for long with thou sands of rupees to the media billings upon
which the agency continues to receive 15 percent commission. When
the priceva1ue ratio seems unfair, the agency may ask clients to
substitute the fee system for the commission system or on the
reverse, when the client feel abused, he may also ask for a change
to the fee system.
Under fee system, the agency payment would consist exclusively
of services fees which were to be computed on the basis of cost
plus system. Under the system a certain fixed percentage on cost
may be charged as fee to be paid to the agency along with the
bill.
Advantages:
There are certainly a few advantages of fee sys
(i) The fee enables the agency to make fair profits on services
rendered by it and, in turn, the advertiser pay for what he
getsnothing more and nothing less.
ii) Most of clients paying under-fee system, feel that agency is
more objective in its recommendations.
(iii) The agency is induced to provide a number of services, not
tenable under commission system, if asked by the client because, it
will get more fees.
(iv) The agencys income is stabilized. Unforeseen cuts in
advertising expenditure by the advertiser do not affect the agencys
profits because it will get a fixed fee for the services whether
media owners charge more or less.
Thus, this system is felt well but switch over rate from
Commission to fee system is slow.
Charges for Spec1al Services
Advertising agencies do not rely on fee or commission, they
charge from clients. The client, when asks for special services for
the creation of advertisement such as art work, photography, photo
engravings, the production of commercials and other services, the
agency charge for such special SERVICCS as service charges in
addition to the actual cost of these services.
The rate is 17.65 percent more for the work than the agency
pays. It comes to 15 percent of the billing price (i.e. cost plus
service charges). Service fees also are charged for certain work on
which commissions are not available. Retail advertising, for
example, is not granted a commission by some media. Moreover,
catalogue, point of purchase, materials, sales materials, and
direct mail pieces usually do not involve agency discounts.
Extra charges for services are also recovered when the media
budget is so low that commissions do not pay for the work. An
additional special fee is charged for the clients developmental
work on the new product or any other unusual project.
SELECTING AN ADVERTISING AGENCY:
What factors would you bear in mind while
(i) Selecting an agency, and
(ii) Getting the best out of an agency.
The advertising agency plays a very important role in
Advertising. While selecting an advertising agency the
importance of compatibility should be borne in mind. The agency
takes a very long time in understanding the problems and
accumulating the facts that are necessary for the smooth
functioning of an account. Though this period, may be called
investment period, is long, it pays a good dividend.
Therefore, an agency should not be changed frequently, for that
result in repeated wastage of investment period. It will lower the
effectiveness of advertising.
The following points should an advertiser bear in mind while (i)
choosing an advertising agency and (ii) getting the best out of an
agency.
(A) Choosing an Advertising Agency
While choosing an agency for the first time, the advertiser must
consider the working and organizational abilities of the agency. He
must well consider that
(1) The agency should possess a good experience in creating
ideas and selling them. It should be able to create convincing,
interesting and rest oriented sales messages.
(2) The agency should be able to think independently on various
problems faced by the advertiser taking in views the special
marketing situations, and not emphasise to solve them by
pre-conceived notions which it is unwilling to change.
(3) The size of the agency should not be taken seriously. A big
agency is not necessarily better than a small agency. On the
contrary, a small agency may serve better.
(4) The agency should follow the advertiser in every case. If it
feels that advertiser is not correct it should not hesitate in
correcting the advertiser.
(5) The agency should be able to undertake the market research
and use the results of research and brains to solve various
problems.
(6) The advertiser should think that the agency makes a profit
en the account, rather than it works on no profit, no-loss basis.
The agency, otherwise, will not work satisfactorily.
(7) The agency should be financially sound and have good
contacts with media owners. It should also be able to cover local,
regional and national advertising campaigns.
(2) How to get best out of an Agency
The next problem, after selection of an agency, is how to use it
to the best of its ability. For this purpose, the advertiser should
cooperate with the agency. He should take the following steps in
this connection
(i) The advertiser should provide all possible information
necessary for the advertising if good services are expected from
it.
(ii) The agency should be challenged to produce results. It
should be very clear from the very beginning that the account will
withdraw, if it does not serve to the satisfaction of the
advertiser.
(iii) The advertiser should go as for as possible to keep the
agency on its toes.
(iv) The advertiser should not allow the agency personnel to
contact the junior staff of the company. He should appoint a
special person for liaison work between his company and the agency
instead.
(v) The advertiser should not interfere In the working of the
agency. He should allow the agency to work independently and to
break away from conventions, where necessary, in. its
presentation.
(vi) The agency should be paid extra for extra work.
(vii) The advertiser should examine the work; his agency does
for other parties to get new ideas.
TYPES OF AGENCY
(A) Special Service Groups
(B) In-house Agency
(A) Special-Service Groups
In our discussions in this chapter, the reference of agency is
for a traditional full-service agency. Such full fledged agencies
perform a wide range of advertising activities necessary in the
areas of planning, production and creation of ads, media selection,
and execution of an advertising programme. Such agendas maintain a
big organization providing separate department for each
function.
But, in recent years, a series of limited service specialist
firms have come up. These newer institutions provide special
services to advertisers, advertising agencies and media owners, in
contrast to the traditional full-service agencies. Such firms
providing specialized services collectively have been termed as
Special Service Groups and they are by far the least known
component of the advertising industry.
Printers, photoengravers, and typographers are some of the
service groups involved in print media advertisement. Likely
broadcast advertising may involve commercial production studios,
musicians, actors, recordings tapes, transcriptions and packaged
television shows from outside organizations.
Free lance artists, photographers and copywriters are some of
the groups that sell the creativity for use in advertising. Models,
package designers, public relations councilor, and independent
market research firm are additional examples of the extensive list
of special service activities that are available to serve the needs
of advertisers.
Now, a very perplexing managerial question arises who will bear
the responsibility for handling the many highly specialized
creative processes and mechanical details that precede the
appearance of an advertisement. This burden can be taken either of
three authoritiesthe advertiser himself, advertising agency and the
advertising media. The advertiser can perform this highly technical
task internally, large retailers do it easily but typical
manufacturing concerns advertising department find it difficult to
carry out the creative aspect of the advertising programme. It is
more concerned with the planning and coordinating phases.
The advertiser may shift these responsibilities to an
advertising agency that is recognized as specialists in that field.
Generally, the advertising personnel perform these functions very
satisfactorily sometimes; they may borrow the services of such
special service groups which provide specific services to the
agency.
Some media owners also perform these services to their
advertisers. Many radio and T.V. commercials are taped and produced
in Radio and TV stations for their advertisers. Newspapers
personnel also write copy and do art work for their
advertisers.
All these three organizations use the services of these special
service groups in one way or the other. If the particular need is
occasional, the advertiser, the agency or the media involved will
tape the services of these specialists. However, when the need is
permanent and continuous, the decision should be based on where the
best jobs can be done economically.
B) In House Agency
An in-House agency, as the name implies, is a full service
agency owned by and operated under the direct supervision and
control, of the advertiser. It performs all the creative and media
functions provided by the full service agency. This performs
advertising functions mainly for its master. It may take
responsibility to work for other accounts but only if the
advertiser likes. So, it is not completely free to serve other
accounts.
The main objective in adopting the approach is to reduce the
total cost of advertising, as the agency receives the media
commission. This commission earned by the agency becomes the part
of the profits of the concern.
ADVERTISING CAMPAIGN MANAGEMENT
Managing an advertising campaign is the process of preparing and
integrating a specific advertising program in combination with the
overall Integrated Marketing Communication message (IMC). An
effective program consists of five steps. The steps of advertising
campaign management are:
1. Review the communication market analysis.
2. Establish communication objectives consistent with those
developed in a promotion opportunity analysis program.
3. Review the communications budget.
4. Select the media in conjunction with the advertising
agency.
5. Review the information with the advertising creative in the
creative brief.
The advertising program should be consistent with previous
activities performed as part of the IMC program. This helps to make
sure the firm presents a clear message to key target markets, and
advertising efforts can then be refined to gain the maximum benefit
from the promotional dollars being spent. A review of the steps
involved is next.
COMMUNICATION MARKET ANALYSIS:
In the first phase of planning, the account executive studies
what the companys communication market analysis reveals? The
competitive analysis identifies the firms major competitors. The
opportunities analysis reveals where the firm can best focus its
advertising and promotional efforts by discovering
company-strengths along with opportunities present in the
marketplace.
The target market analysis identifies key target markets. The
customer analysis suggests how the firms previous marketing
communications efforts have been received by the public as well as
by other businesses and potential customers. A positioning analysis
explains how the firm and its products are perceived relative to
the competition.
The value of reviewing the communication market analysis is in
focusing the account executive, the creative, and the company
itself on key markets and customers while helping them understand
how the firm currently competes in the marketplace. Then the team
is better able to establish and pursue specific advertising
objectives.
For the purposes of advertising, two important items are
outlined as part of the communication market analysis:
1. The media usage habits of the target market
2. The media utilized by the competition
When analyzing customers, knowing which media they use is
vitally important.
For example, teenagers watch television and listen to the radio
for many hours. Only a small percentage reads newspapers and news
magazines.
Various market segments have differences in when and how they
view various media.
For example, older African Americans watch television programs
in patterns quite different from older Caucasians.
Males watch more sports programs than females and so forth.
In the business-to-business market, Knowing which trade journals
or business publications the various members of the buying center
most likely read is essential for the development of a print
advertising campaign. Engineers, who tend to be the influencers,
have different media viewing habits than do vice presidents, who
may be the deciders.
Discovering which media reach a target market (and which do not)
is a key component in a communication market analysis and an
advertising program.
Further, studying the competition reveals how other firms
attempt to reach customers. Knowing how other firms contact
consumers is as important as knowing what they say. An effective
communication market analysis reveals this information, so that
more effective messages and advertising campaigns can be
designed.
COMMUNICATION AND ADVERTISING OBJECTIVES
The second step of advertising planning is to establish and
clarify advertising and communication objectives. Several
advertising goals are central to the IMC process. Some of these
goals are listed;
Building Brand Image
One of the most important advertising goals is to build a global
brand and corporate image. These, in turn, generate brand
equity.
To build brand image
To inform
To persuade
To support other marketing efforts
To encourage action
Advertising is a critical component in the effort to build brand
equity. Successful brands have two characteristics: being
(1) Top of mind and
(2) The consumers top choice.
When consumers are asked to identify brands that quickly come to
mind from a product category, one particular brand is nearly always
mentioned. That name has the property of being a top of mind
brand.
For example, when asked to identify fast-food restaurants,
McDonalds almost always heads the list. The same is true for Kodak
film.
Brand awareness means the consumers recognize and remember a
particular brand or company name when they consider purchasing
options. Brand awareness, brand image, and brand equity are vital
for success.
In business-to-business marketing, brand awareness is often
essential to being considered by members of the buying center. It
is important for business customers to recognize the brand name(s)
of the various goods or services a company sells.
Brand awareness is especially important in modified rebuy
situations, when a firm looks to change to a new vendor or
evaluates a product or service that has not been purchased
recently.
In new buy situations, firms spend more time seeking prospective
vendors than they do in modified rebuys. Consequently, brand equity
is a major advantage for the firm with such recognition. Further,
many firms have increased their importing and exporting activities.
As a result, developing recognized and accepted global brands has
become an increasingly important part of many marketing
programs.
Providing Information:
Besides building brand recognition and equity, advertising
serves other goals.
For example, advertising often is used to provide information to
both consumers and business buyers. Typical information for
consumers includes a retailers store hours, business location, or
sometimes more detailed product specifications. Information can
make the purchasing process appear to be convenient and relatively
simple, which can entice customers to finalize the purchasing
decision and travel to the store.
This type of information is the most useful when members of the
buying center are in the information search stage of the purchasing
process.
For high-involvement types of purchases wherein members of the
buying center have strong vested interests in the success of the
choice, informative advertisements are the most beneficial
Persuasion
One of the most common goals of advertising programs is
persuasion. Advertisements can convince consumers that a particular
brand is superior to other brands. They can show consumers the
negative consequences of failing to use a particular brand.
Changing consumer attitudes and persuading them to consider a new
purchasing choice is a challenging task.
As described later advertisers can utilize several methods of
persuasion. Persuasive advertising is used more in consumer
marketing than in businesstobusiness situations. Persuasion
techniques are used more frequent in broadcast media such as
television and radio than in print advertising.
Supporting Marketing Efforts
Another goal of advertising is to support other marketing
functions. For example Manufacturers use advertising to support
trade and consumer promotions, such as theme packaging or combine
on offers. Contests, such as the McDonalds Monopoly promotion
require extensive advertising to be effective. Retailers also use
advertising to support their marketing programs. Any type of
special sale white sale, buysonegetsone free,
PreChristmas sale) needs vigorous advertising to attract
customers to the store.
Both manufacturers and retail outlets use advertising in
conjunction with coupons or other special offers. When ads are
combined with other marketing efforts into a larger more integrated
effort resolving around a theme the program is called a promotional
campaign.
Encouraging Action
Many times firms set motivational types of goals for their
advertising programs. For example; Television commercials that
encourage viewers to take action by dialing a tollfree number to
make a quick purchases. Everything from Veg to CDs and cassettes
are sold using action tactics. Mans business advertisements provide
a Web address or telephone numbers that buyers can use to request
more information or move toward a purchase more easily.
The five advertising goals of building image, providing
information, being persuasive, supporting other marketing efforts,
and encouraging action are not separate ideas. They work together
in key ways. Irnage and information are part of persuasion. The
goal of encouraging action is often part of supporting other
marketing tactics. The Key advertising management objective is to
emphasize one goal without forgetting the others.
THE COMMUNICATIONS BUDGET
Once the company, account manager and creative agree upon the
major goals of the advertising campaign. a review of the
communications budget is in order.
Also, however, the manner of distribution must be arranged.
Three basic tactics include:
Advertising the most when sales are at peak seasons
Advertising the most during low sales seasons
Level amounts
Firms that advertise during peak seasons such as Christmas are
emphasizing sending out the message when customers are most
inclined to buy. Because consumers are on the hot spot, this
approach makes sense for some products.
For example, Weight Watchers.
Diet Centers and others advertise heavily during the first two
weeks of January. Many New Years resolutions include going on a
diet.
Advertising during peak seasons can be accomplished in two
ways.
The first is an exciting schedule of advertising. This schedule
involves continuous advertising with explode of higher intensity
(more ads in more media) during the course of the year, most
notably during peak seasons. Companies can also utilize what is
called a flighting approach or schedule, where ads are presented
only during peak times, and not at all during off seasons.
The firms that decide to advertise the most during slow sales
seasons are essentially oriented toward drumming up business when
people do not regularly buy. In retail sales, slow seasons occur
during January and February. Some companies advertise more during
those periods to sell off merchandise left over from the Christmas
season.
Many marketing experts believe it is best to advertise in level
amounts, particularly when a product purchase is essentially a
random event. This approach is a continuous campaign schedule.
For example, many durable goods such as washing machines and
refrigerators are purchased on an as needed basis. A family
ordinarily buys a new washing machine only when the old one breaks
down.
Consequently, level advertising increases the odds that the
buyer will remember a given name (Whirlpool, General Electric).
Also, there is a better chance that consumers will be exposed to
ads close to the time they are ready to make purchases.
In any case, the objective should be to match the pacing of
advertisements with the message, media, and the nature of the
product or service. Some media make it easier to advertise for
longer periods of time.
For instance, billboards are normally posted for a month or a
year. They can be rotated throughout a town or city to present a
continuing message about the company or its products. Budgetary
constraints must also be incorporated into the strategies and
tactics used in the advertising program.
MEDIA SELECTION
The next step of advertising management is to develop strategies
and tactics associated with media selection, refining intent of the
message, and development of the actual campaign with specific ads.
It is crucial to develop consistent messages that match with
various media.
Media buys are guided by the advertising agency or media agency,
the company, and the creative. Also, the expanding number of usable
media is described. They should complement the IMC program. When
media selection is performed carefully, and messages are designed
to fit with those choices, the chances for success greatly
increase.
Advertising management is part of the overall IMC scheme. When
effectively coordinated, a company develops a major advantage in
the competitive arena. These coordination efforts are largely
guided by a creative brief, which is the final step of the campaign
program to accompany producing the actual advertisements.
The objective
The target audience
The message theme
The support
The constraints
THE CREATIVE BRIEF:
In preparing advertisements, creative work with a document
called a creative strategy or creative brief. Using this
instrument, the creative takes the information provided by the
account executive and is expected to produce an advertisement that
conveys the desired message in a manner that will positively impact
potential customers. Details about each element of the creative
brief are provided next.
The Objective
The first step in preparing the creative strategy is to identify
the objective of the advertisement. Possible objectives
include:
Increase brand awareness
Build brand image
Increase customer traffic
Increase retailer or wholesaler orders
Increase inquiries from end users and channel members
Provide information
The creative must understand the main objective before designing
an advertisement, because the primary objectives guide the design
of the advertisement and the choice of an executional theme. An ad
to increase brand awareness prominently displays the name of the
product. An ad to build brand image can display the actual product
more prominently as in the Soft Scrub advertisement shown in this
section.The Target Audience:A creative should know the target
audience. An advertisement designed to persuade a business to
inquire about new computer software will be different than a
consumer advertisement from the same company. A business
advertisement focuses on the type of industry and the project
member of the buying center who will see it. The more detail that
is known about the target audience, the easier it is for a creative
to design an effective advertisement.
Target market profiles that are too general are not very
helpful. Rather than specifying males, ages 20 to 35, more cific
information is needed (e.g., males, 20 to 35, college educated,
professionals). Other information such as hobbies, interests,
opinions, and lifestyles makes targeting an advertisement even more
precise.
The Message Theme:
The message theme is an outline of key idea(s) that the
advertising program is supposed to convey. The message theme is the
benefit or promise the advertiser wants to use to reach consumers
or businesses. The promise or unique selling point should describe
the major benefit the good or service offers customers.
For example, the message theme for an automobile could be
oriented toward luxury, safety, fun, fuel efficiency, or driving
excitement. The message theme for a hotel could focus on luxury,
price, or unusual features, such as a hotel in Delhi, India noting
the ease of access to all of the nearby tourist attractions. The
message theme should match the medium selected, the target market,
and the primary IMC message to be effective.
Notice the advertisement by the milk industry featuring avin.
The theme of milk providing the calcium needed for strong bones is
consistently used in a number of milk advertisements, as is the
visual display of the white mustache. Although the model and
context change, the theme is consistent.
The Support
The fourth component of the creative strategy is the support.
Support takes the form of the facts that substantiate the message
theme. A pain reliever advertising claim of being effective for
arthritis may support this point by noting independent medical
findings or testimonials from patients with arthritis.
The Constraints
The final step in the development of a creative strategy is
identification of any constraints. These are the legal and
mandatory restrictions placed on advertisements. They include legal
protection for trademarks, logos, and copy registrations. They also
include disclaimers about warranties, offers, and claims. For
warranties, a disclaimer specifies the conditions under which they
will be honored.
For example, tire warranties often state they apply under normal
driving conditions with routine maintenance, so that a person
cannot ignore tire balancing and rotation and expect to get free
new tires-when the old ones wear out quickly. Disclaimer warranties
notify consumers of potential hazards associated with products. For
instance, tobacco advertisements must contain a statement from the
Surgeon General about the dangers of smoking and chewing tobacco.
Disclaimers about offers spell out the terms of financing
agreements, as well as when bonuses or discounts apply. Claims
identify the exact nature of the statement made in the
advertisement.
For example, nutritional claims must contain a statement about
the size of serving or other information that makes it clear how
many nutrients are actually in the product.
After these steps have been reviewed, the creative brief is
complete. From this point forward, the message and the media match,
and actual advertisements can be produced. Effective creative
briefs focus everyone involved on both the IMC message and the
current intent of an advertising campaign. This, in turn, gives
companies better chances of reaching customers with messages that
return measurable results and help guarantee the success of both
the company and the advertising agency.
When the creative brief has been completed, design of the
campaign should move forward at a solid pace. The goal is to move
forward without rushing. PAGE 1PSNACET
MBA