Advertising Management Cycle
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Transcript of Advertising Management Cycle
8/6/2019 Advertising Management Cycle
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Overview of the Advertising
Management Cycle
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Advertising
The Indian Advertising Industry isaround Rs.21,000 crore andgrowing at 13%
Industry employs only over 200,000
Ad budgets of some firms exceedover Rs.500 crores per year ~ >Rs.13 lakhs per day!
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Advertising and Market Share
New brands spend proportionately morefor advertising than old ones.
A certain level of exposure is needed toaffect purchase habits.
Beyond a certain level, diminishingreturns set in.
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Advertising and the Consumer
Average Indian citizen is exposed tohundreds of ads each day.
Advertising may change a consumer¶sattitude toward a product.
Advertising can affect consumer ranking of brand attributes.
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Major Types of Advertising
Institutional
Advertising
Product
Advertising
Designed to enhance a company¶s
image rather than promote a
particular product.
Designed to tout the benefits of a
specific good or service.
2Monster
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Major Types of Advertising
Enhancecorporation¶s identity
Pioneering
Competitive
Comparative
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertising
Advocacyadvertising
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HR
Bl ock
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On Line
http://www.pizzahut.c om
http://www.papajohns.c om
Product Advertising
PioneeringPioneering� Stimulates primary demand for
new product or category.
� Used in the PLC introductory stage.
CompetitiveCompetitive� Influence demand for brand in the
growth phase of the PLC.
� Often uses emotional appeal.
ComparativeComparative� Compares two or more competing
brands¶ product attributes.
� Used if growth is sluggish, or if
competition is strong.
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Advertising Campaign
A series of related
advertisements focusing
on a common theme,
slogan, and set of
advertising appeals.
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Steps in Creating an
Advertising Campaign
Determine theadvertising objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.
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Setting Objectives:
The DAGMAR Approach
DefineTarget Audience
Define DesiredPercentage
Change
Define the TimeFrame for Change
Goal of Goal of
Advertising Advertising
ObjectivesObjectives
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Creative Decisions
Components
of CreativeDecisions
Develop and EvaluateAdvertising Appeals
Executethe Message
Evaluate theCampaign¶s Effectiveness
IdentifyProduct Benefits
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Identify Product Benefits
³Sell the Sizzle, not the Steak´
Sell product¶s benefits,
not its attributes
A benefit should answer
³What¶s in it for me?´
Ask ³S o?´ to determineif it is a benefit
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Advertising Appeal
Reason for a personto buy a product.
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Common Advertising Appeals
Profit
Health
Love or romance
Fear
Admiration
Convenience
Fun and pleasure
Vanity and egotism
EnvironmentalConsciousness
Product saves, makes, or protects money
Appeals to body-conscious or health seekers
Used in selling cosmetics and perfumes
Social embarrassment, old age, losing health
Reason for use of celebrity spokespeople
Used for fast foods and microwave foods
Key to advertising vacations, beer, parks
Used for expensive or conspicuous items
Centers around environmental protection
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Unique Selling Proposition
Desirable, exclusive, and
believable advertising
appeal selected as the
theme for a campaign.
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Executing the Message
Mood or Image
Musical
Demon-stration
Scientific
Real/AnimatedProductSymbols
Fantasy
Lifestyle
Slice-of-Life
Humorous
CommonCommon
ExecutionalExecutional
StylesStyles
Spokes-person/
Testimonial
G oodyear
Dockers
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Major Types of Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Internet
Alternative Media
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Newspapers
Advantages Advantages
Year-round readership
Geographic selectivity
Immediacy
High individual market
coverage
Short lead time
DisadvantagesDisadvantages
Limited demographic
selectivity
Little color
May be expensive
Low pass-along rate
Clutter
Mass market medium
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Cooperative Advertising
An arrangement in which
the manufacturer and theretailer split the costs
of advertising the
manufacturer¶s brand.
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Magazines
Good reproduction
Demographicselectivity
Regional/localselectivity
Long advertising life
High pass-along rate
Advantages Advantages
Higher cost per contact
Long-term advertiser commitments
Slow audience build-up
Limited demonstration
capabilities
Lack of urgency
Long lead time
DisadvantagesDisadvantages
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On Line
http://www.r adioindustry.about.c om
Radio
Advantages Advantages
Selectivity andaudience segmentation
Immediate and portable
Geographic flexibility
Entertainment
carryover Short-term ad
commitments
DisadvantagesDisadvantages
No visual treatment
Short advertising life High frequency to
generate retention
Commercial clutter
Backgrounddistractions
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On Line
http://www.f ox.c om
http://www.abc.c omTelevision
Advantages Advantages
Wide, diverse audience
Low cost per thousand Creative and
demonstrative
Immediacy of messages
Entertainment carryover Demographic selectivity
with cable
DisadvantagesDisadvantages
Short life of message
Expensive with highcampaign cost
Little demographicselectivity with network
Long-term advertiser
commitments Long lead times
Clutter
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Outdoor Media
Advantages Advantages
High exposurefrequency
Moderate cost
Flexibility
Geographic selectivity
Broad, diverse market
DisadvantagesDisadvantages
Short message
Lack of demographicselectivity
High ³noise´ level
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Internet
Fast growing
Ability to reach narrowtarget audience
Short lead time
Moderate cost
Advantages Advantages
Difficult to measure ad
effectiveness and ROI Ad exposure relies on
³click through´
Not all consumers
have access to internet
DisadvantagesDisadvantages
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On Line
http://www.banner it e.c om
http://www.flas h-banner-des ign.c om
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Examples of Alternative Media
Ads inMovies and Videos
Interactive Kiosks
Computer Screen Savers
Video Shopping Carts
Fax Machines
On Linehttp://www.looksmar t.c om
http://www.y ahoo.c om
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Media Selection Considerations
Cost per Cost per ContactContact
ReachReach
FrequencyFrequency
AudienceAudienceSelectivitySelectivity
The cost of reaching onemember of the target market.
T
he number of target consumersexposed to a commercial at leastonce during a time period.
The number of times an individualis exposed to a message during a
time period. The ability of an advertising
medium to reach a preciselydefined market.
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Media Scheduling
ContinuousContinuous
Media ScheduleMedia Schedule
FlightedFlightedMedia ScheduleMedia Schedule
PulsingPulsing
Media ScheduleMedia Schedule
SeasonalSeasonal
Media ScheduleMedia Schedule
Advertising is run steadilythroughout the period.
Advertising is run heavily everyother month or every two weeks.
Advertising combines continuousscheduling with flighting.
Advertising is run only when theproduct is likely to be used.
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Public Relations
Evaluates publicattitudes
Identifies issues of public concern
Executes programsto gain publicacceptance
T he Role of T he Role of
Public RelationsPublic Relations
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Functions of Public Relations
Press RelationsPress Relations
Product PublicityProduct Publicity
Corporate CommunicationCorporate Communication
Public AffairsPublic Affairs
LobbyingLobbying
Employee and Investor RelationsEmployee and Investor Relations
Crisis ManagementCrisis Management
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On Line
http://www.bmwf ilms.c om
Public Relations Tools
Product Placement
Consumer Education
Event Sponsorship
Issue Sponsorship
InternetWeb Sites
New Product Publicity
ET rade 2 5