THE WORLD OF ADVERTISING

Any form of communication a business or company uses to inform, persuade, or remind people about products and to improve its image

PROMOTION

Defining Advertising

Advertising is any paid form of non personal communication from an identified sponsor using mass media to persuade and influence an audience

5 M’s Five decisions to be taken are

Mission- What are the advertising objectives?Money- How much can be spent?Message- What message should be sent?Media- What media must be used?Measurement- How should the results be

evaluated?

Advertising objectives

They can be classified according to the aims and functions of the advertising as below Informative advertisingPersuasive advertisingReminder advertisingReinforcement advertising

Informative advertising- Aims to create brand awareness and knowledge of

new products or new features of the existing products Persuasive advertising-

Aims to create liking, preference, conviction and purchase of a product or service

Reminder advertising- Stimulate the re purchase of products and services

Reinforcement advertising- Aims to convince current purchasers that they made

the right choice

• Informative advertising - used to build initial demand for a product in the introductory phase.

• Persuasive advertising - attempts to improve the competitive status of a product, institution, or concept, usually in the growth and maturity stages.

• Comparative advertising - compares products directly with their competitors either by name or by inference.

• Reminder-oriented advertising - appears in the late maturity or decline stages to maintain awareness of the importance and usefulness of a product.

Advertising and The Product Life

Cycle

Comparison Advertising

Compares One Brand to Another

Informative Advertising

Build Primary Demand

Persuasive AdvertisingBuild Selective Demand

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Types of advertising Brand advertising Retail/ Local advertising Political advertising Directory advertising Direct response advertising Business to business advertising Institutional advertising Public service advertising Interactive advertising

Brand advertising- focuses on development of long term brand identity and brand image

Retail/ Local advertising- message announces facts about the products that are available at the nearest stores. The objective is to focus on stimulating the store traffic and

create an image for the retailer Political advertising- used by the politicians to

persuade people to vote for them or their ideas. Directory Advertising- e.g. yellow pages, trade

directories etc which people refer to find out how to buy a product or service

Direct Response Advertising- tries to stimulate the sale directly.The consumer may be delivered the product

directly but is successful if internet is the medium of advertising.

Business to business advertising- includes only the messages directed to the

retailers, dealers, wholesalers etc generally placed in professional magazines

etc.

Institutional advertising- also called as corporate advertisingFocus on establishing the corporate identity

and winning the public over to the organization's point of view.

Interactive advertising- Delivered to customers who have an access

to internetweb pages may be used, e mails can be done

to deliver the messages

The Communication Process

Communications efforts should be viewed Communications efforts should be viewed from the perspective of managing from the perspective of managing customer relationships over time.customer relationships over time.

The communication process begins with The communication process begins with an audit of all potential contacts.an audit of all potential contacts.

Effective communication requires Effective communication requires knowledge of how communication works.knowledge of how communication works.

The Communication ProcessSender

Encoding

Media

Message

Decoding

Receiver

Response

Feedback

Steps in Developing Effective Communications

Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Step 3. Designing a MessageStep 4. Choosing Media

Step 5. Selecting the Message Source

Step 6: Collecting Feedback

Steps in Developing EffectiveCommunication

Step 1. Identifying the Target Audience

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

PurchaseConviction

PreferenceLiking

KnowledgeAwareness

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Step 1:Step 1: Identifying the Target Audience Identifying the Target Audience Affects decisions related to what, how, when, Affects decisions related to what, how, when,

and where message will be said, and where message will be said, as well as who will say itas well as who will say it

Step 2:Step 2: Determining Communication Determining Communication ObjectivesObjectives Six buyer readiness stagesSix buyer readiness stages

Developing Effective Communication

Before a customer makes a purchase, he or she first goes through a series of stages called “buyer readiness.” According to Marc Mancini, these stages are:

Awareness Before you can sell, you must make contact with those who want to

purchase. Ad should attract serious buyers. Knowledge

Once prospective clients know your name, they begin the process of acquiring knowledge  about what you can offer. Therefore, your advertising efforts should establish you as an expert — perhaps even a specialist in one or more niche areas.

Liking We all tend to buy from people or companies we feel positive about.

Entertaining ads, for example, will convey warmth and the “humanity” of your agency. Direct your creative efforts toward making your agency seem joyful, inviting and approachable.

Preference Benefits statements are the key to making prospective clients prefer

your agency over another. Provide target customers with reasons to do business with you.

Conviction Your advertising should build the customers’ certainty that you’re

the agency to call first. Client testimonials, for example, provide just the right reinforcement for the preference you’ve created.

Purchase Once prospective clients have decided to seek you out, expert sales

skills are critical to helping them make the right purchase.

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Step 3:Step 3: Designing a Message Designing a Message AIDA framework guides message designAIDA framework guides message design Message content Message content contains contains appeals or themes appeals or themes designed to designed to

produce desired results these are :produce desired results these are : Rational AppealsRational Appeals: Audience’s self interest. Economy : Audience’s self interest. Economy

(Price), Quality, Value, Features and Benefits of the (Price), Quality, Value, Features and Benefits of the productsproducts

Emotional Appeals: Emotional Appeals: attempts to stir up either positive or attempts to stir up either positive or negative emotions to that can motivate purchase.negative emotions to that can motivate purchase.

Love, pride, joy, humor, fear, guilt, shame E.g. Crack Love, pride, joy, humor, fear, guilt, shame E.g. Crack creame.creame.

Moral Appeals: Moral Appeals: are directed to audience’s sense of what are directed to audience’s sense of what is “Right” and “Proper” . E.g. For some social cause: is “Right” and “Proper” . E.g. For some social cause: clean envt. Etcclean envt. Etc..

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Advertising AppealsProfit

Health

Love or romance

Fear

Admiration

Convenience

Fun and pleasure

Vanity and egotism Environmental Consciousness

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

Step 3. Designing a Message

Steps in Developing EffectiveCommunication

Attention Interest Desire

Message ContentRational Appeals

Emotional AppealsMoral Appeals

Message StructureDraw Conclusions

Argument TypeArgument Order

Message FormatHeadline, Copy, Color,

Words, & Sounds,Body Language

Action

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Step 3:Step 3: Designing a Message Designing a Message Message Structure: Key decisions are required with Message Structure: Key decisions are required with

respect to three message structure issues:respect to three message structure issues: Whether or not to draw a conclusionWhether or not to draw a conclusion Order of argument presentationOrder of argument presentation

Message Format: Design, layout, copy, color, shape, Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, movement, words, sounds, voice, body language, dress, etc.etc.

Developing Effective Communication

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Step 4: Step 4: Choosing MediaChoosing Media Personal communication channelsPersonal communication channels

Includes face-to-face, phone, mail, and Internet chat Includes face-to-face, phone, mail, and Internet chat communicationscommunications

Word-of-mouth influence is often criticalWord-of-mouth influence is often critical Buzz marketing cultivates opinion leadersBuzz marketing cultivates opinion leaders

Non personal communication channelsNon personal communication channels Includes media, atmosphere, and eventsIncludes media, atmosphere, and events

Developing Effective Communication

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Step 5: Step 5: Selecting the Message SourceSelecting the Message Source Highly credible sources are more persuasiveHighly credible sources are more persuasive A poor spokesperson can tarnish a brandA poor spokesperson can tarnish a brand

Step 6:Step 6: Collecting Feedback Collecting Feedback Recognition, recall, and behavioral measures are Recognition, recall, and behavioral measures are

assessedassessed May suggest changes in product/promotionMay suggest changes in product/promotion

Developing Effective Communication