UNIT I

INTRODUCTION TO ADVERTISEMENT:

Advertising is a paid of non-personal communication. Advertising promotes ideas, goods and services of identified sponsors. The main purpose of advertising is to create sales. If advertisement doesn’t increase sales, we may conclude that advertisement is not effective. It may be called salesmanship on print.

The five important message form the above definition are as follows:

i. Advertising is a paid form of communication- It is paid, because the advertiser has purchased time and space.

ii. It is non-personal in nature, because it is not directed towards an individual i.e., no face-to-face presentation.

iii. Purpose of advertising is to promote ideas about products and services.iv. Advertising is done to create interest in goods and services.v. Advertising is issued by an identified sponsor-advertising is done by the source.

Brief History

The record book tells that history of advertising is about 5,000 years old. There were three forms of advertisements before the print advertisement:

Trade Mark Town Criers Signs

Trade markArtisan and craftsman placed their mark on the goods to get identified with respect to the skill they possess. Even today we can see this practice.

Town CriersThe town criers are paid to go around streets of the town and make announcement. This practice is followed even today in some parts of rural India.

SignsIn this methods, the product name is displayed on a rock by painting. People who pass by notice it. This type of outdoor advertising is common even today. See this while traveling on a highway.

Hand bill was the first printed from of advertisement across the U.K. The first advertisement in U.S.A was printed in Boston news letter.

Today, there are professional bodies at home which represent the advertiser, the agency and the media. They are:

1. Indian Society of Advertisers – ISA2. Indian Newspapers Society – INS3. Advertising Agencies Association of India AAAI

Some of the important personalities to be remembered, who laid the foundation for modern advertisement are – David Ogilvy, J Walter Thompson.

1

CONCEPT, DEFINITION AND OBJECTIVES

Definition of Advertising. (Or) Discus about the term advertising.

Advertising is the paid, non-personal communication of information about products or ideas by an identified sponsor through the mass media in an effort to persuade of influence behavior.Analysis:

Advertising is non-personal because it’s directed to groups of people rather than to specific individuals.

Advertising communicates information about products or ideas with a main intention to either inform or persuade people to buy a particular product.

More importantly an identified sponsor such as a company selling a product or a non profit group seeking donations communication pays for the advertisement message to be placed in the mass media.

Advertising can be defined as any paid form of non-personal promotion transmitted through a mass medium. The sponsor should be clearly identified and the advertisement may relate to an organization, a product or a service. The key difference, therefore, between advertising and other forms of promotion is that it is impersonal and communicates with large numbers of people through paid media channels.

Discus the various types of advertising (or) Explain the various classification of advertising.

Severl categories of organizations are large users of advertising, most important among them being the manufacturing, trading and service firms, non-profit institutions and government agencies. It is conceptually more interesting and analytically more important to classify advertising.

By target Audience:

One way to classify advertising is according to the group it targets. Whether it’s in print, on television, or on billboards, every advertisement is aimed at a specific group of people, known as target audience. Advertisements are generally addressed to one of the two broad audience categories: consumers or businesses.Consumer advertising: Much of the advertising around us is aimed at consumers, the individuals and families who buy goods and services for personal or family use known as consumer advertising. For example, pepsi and coke persuade consumers to consume their bottled drinks.Business advertising: In contrast to the messages aimed at people who buy goods for household use, business advertising directs messages toward people and/or organizations that buy or use products in businesses. This broad category can further be classified into four distinct sub-categories-

a) Industrial advertising – It targets people who buy or use the materials and services needed to conduct business or to manufacture other products. For example Epson advertises business houses to buy their printer cum fax machine that would facilitate their business communication.

b) Trade advertising-targets intermediaries such as wholesalers and retailers that buy goods for resale to consumers.

2

By target audienceConsumerBusiness

IndustrialTradeProfessionalAgricultural

By geographic areaInternationalNationalRegionallocal

By media usedPrintElectronicOut-of-homeDirect mailDirectoriesOther media

By purposeProduct or non-product Commercial or non-commercialPrimary or selective demandDirect action or indirect action.

c) Professional advertising-is directed toward licensed professional practitioners such as lawyers, accountants, doctors, and engineers. This category of advertising may be used to persuade professionals to buy a particular product useful in their work or to recommend that product to their patients or clients. For example Tally advertises its software to all accountants and businessmen to use its multi utility software in preparation and maintenance of accounts.

d) Agricultural advertising- is used to sell products such as tractors and insecticides.

By Geographic areaA second way to classify advertising is its geographical coverage

a) International advertising-when an organisation crosses national borders to advertise in more than one country. For example Pepsi-Cola uses international advertising in dozens of countries.

b) National advertising- when an organisation advertises in more than one region of a single country. For example Bajaj, Hero Honda are all considered national advertisers since they use television, national magazine, and other media to reach large numbers of people in multiple markets across the country.

c) Regional advertising- advertising in a specific region without covering the entire country. For example Aircel uses regional advertising when it targets people of Tamilnadu to use its cellphone.

d) Local advertising-is a much narrower, concentrating on a more confined area such as a city. For example AVR and ANS uses cable network to influence people to shop artistic designs in gold jewelry.

By MediaA third way to classify advertising is according to the medium or media used. Popular forms of media advertising include newspaper, magazine, radio, television, outdoor (posters, billboards), and transit (on or inside buses). Because of its ability to reach huge audiences across large geographic regions, television and radio are the most powerful advertising media and do often national advertisers use the primary medium. Many organisations also advertise through direct mail or in the yellow pages and other directories; the list of media options grows longer as newer medias such as FM radio, Internet become commonplace.By purposeA fourth way to classify advertising is by purpose. Each advertiser has its own goals, but the purpose behind each message can be classified according to four dimensions: Product versus institutional advertising

Commercial versus non-commercial advertising

Primary demand versus selective demand advertising

Direct action versus indirect action advertising

a) Product versus institutional advertisingAdvertising normally conforms to one of two basic types: product oriented or institutional. A product-orientated advertising focuses, as the term suggests, on the product or service being offered, whether for profit or not. Its prime task is to support the product in achieving its marketing goals.Product-orientated advertising can itself take one of three alternative forms, pioneering, competitive, or reminder and reinforcement advertising.

Pioneering advertising

Pioneering advertising is used in the early stages of the life-cycle when it is necessary to explain just what the product will do and the benefits it can offer. The more innovative, technically complex and expensive the product is, the more essential this explanation becomes. Depending on the product's newness, the prime emphasis might well be on stimulating basic generic demand rather than attempting to beat competition.

Competitive advertising

Competitive advertising is concerned with emphasizing the special features of the product or brand as a means of outselling the competition. Usually the seller seeks to communicate the

3

unique benefits, real or imaginary, that distinguishes the product and gives it its competitive edge. Given that most markets are mature and often crowded, this type of advertising is veryCommon and very important.

Comparative advertising

A form of competitive advertising that has grown in significance in recent years is comparative advertising. This means making a direct comparison between one product and another, showing the advertiser’s product in a much more favorable light, of course, alternatively, the comparison may be more subtle, referring to other leading brands, and leaving it up to the target audience to decide which rival product is intended. Initially, it was thought unwise to use a direct comparison approach as it gave a free mention to competitors and was likely to bring about a “ knocking copy” reaction. However, advertisers have now realized that in a competitive world even if they do make a comparison with the market leader, which already has high awareness levels, the effect need not be negative.Through careful selection of the benefits and judgment and criteria to be emphasized, a comparative advertisement might encourage a perception of relative superiority.

Reminder and reinforcement advertising

Reminder and reinforcement advertising tends to operate after purchase. It reminds customers that the product still exists and that it has certain positive properties and benefits. This increases the chances of repurchase and sometimes might even persuade consumers to buy larger quantities. The main emphasis is not on creating new knowledge or behavior but on reinforcing previous purchasing behaviour, and reassuring consumers that they made the right choice in the first place.Institutional advertising In contrast, institutional advertising is not product specific. It aims to build a sound reputation and image for the whole organization to achieve a wide range of objectives with different target audiences. These could include the community, financial stakeholders, government and customers to name but a few.

Commercial versus non-commercial advertisingMuch of the advertising around us is commercial advertising, placed by a business that expects to make a profit. In contrast, non-profit and political organizations use non-commercial advertising to promote causes or candidates rather than profit-making products.Primary demand versus selective demand advertisingThe purpose of primary demand advertising is to stimulate demand for a particular product category, not for any one brand. Associations that represent many manufacturers or service firms generally place this type of advertising. For example Tourism Development Corporation of India encourages people to visit India. Once primary demand advertising has paved the way, individual promoters/ producers to build demand for their own brands use selective demand advertising. For example Taj group of Hotels persuades people to board in their suites while visiting India.Direct action versus indirect action advertisingWhen advertising is geared toward getting the audience to respond immediately, it’s called direct-action advertising. Messages that include a toll-free number, a coupon, or a limited-time offer are forms of direct-action advertising. The advertiser can quickly see whether the advertisement is working by counting the responses. On the other hand, when advertising is used simply to build the awareness of a product, boost product’s image, explain product benefits, or show where the product may be purchased, it’s indirect action advertising.

What are the Objectives of advertising?

A successful ad is more than just a "pretty picture." It must be developed to meet very specific goals, and it must spring from a sound understanding of the dynamics of the market.Every ad and every advertising campaign should have clearly defined objectives. These should grow out of the company’s overall marketing strategy and the jobs assigned to advertising. It isn't enough for management to say, "Promote the product." Management must decide in general terms what they want their

4

advertising to do, and then specify what each ad should accomplish. Detailed objectives are necessary to focus the power of advertising on meeting the company’s overall goals. Advertising should have one or more of the following specific objectives: To Aid in the introduction of new products to specific target markets. To help obtain desirable representatives and distributors. To Prepare the way for salespeople by putting the company's name and the merits of its products in front

of the prospects on a regular basis. To Provide ongoing contact and re-assurance for customers, even when a salesperson isn't available. To generate an immediate buying action. To generate an immediate inquiry which starts the purchasing process (for more complex products). To help buyers confirm their purchasing decisions, reinforcing the idea that they made the right choice.

Discus the role of advertising (or) explain the benefits of advertising.

The role of advertising in the modern business world cannot be undermined since it adds value to various participants in the market. The role of advertising can be analyzed from five distinct angle namely-manufacturers, middlemen, sales-force, consumers, and the society.Advertising benefits the manufacturers- To create awareness, customer interest or desire To boost sales (moving the demand curve to the right) To build brand loyalty (or to maintain it at the existing level) To launch a new product To change customer attitudes – perhaps trying to move a product more “up market” or to dispel some

widely held perceptions about the product To build the company or brand image To reminds and reassure customers To offset competitor advertising – businesses may defend market share by responding to competitors’

campaigns with their own advertising To boost public standing: companies can boost their public standing with advertisements that link them

with generally approved campaigns such as care for the environmentAdvertising benefits the middlemen- It guarantees quick sales-

Advertising informs the consumer about the availability of products with the retailer. It quickens the pace of sales thereby enabling the retailer to reduce losses in holding stock over longer period, reduces capital lock-ups and even increases profits through increased sales volume. It acts as a salesmen-

Advertising creates a favorable impression and image of the firm and its products. Retailers are willing to spend on advertising, which attracts consumers to the stores. It saves retailers to employ, train and control separate sales team.

It makes possible retail price maintenance-Very often advertisers publish prices of the product so that it will enable the consumers to budget their spending. It also reduces unnecessary bargaining by the consumers at the retail stores. Consumers, on the other hand is satisfied that he is charged reasonable price for the product and not cheated by the unscrupulous vendors.

Advertising benefits the salesmen- It creates a favorable background-The efforts of tactful and persuasive salesmen have value, esteem and glamour only when he has a matching backdrop. He may be active and versatile but the extent of his success is resting heavily on the colorful background created by the advertising. It is the advertising that makes the consumers to come to him and then he can prevail upon them. It lightens his burden of job-In the absence of advertising a salesmen has to perform a much tougher job of both advertising and selling. Advertising provokes the public interest, wins confidence, and promotes conviction. With such a task already achieved, the salesmen are at ease to close the sales with limited deliberations.

5

Advertising benefits the consumers- It acts as a driving force in decision making-Advertising, through its various forms, disseminates useful information about the relative merits and special features of the products and services in terms of prices, quality, utility, durability, convenience and the like thus guiding the consumers to shop for a product with relative ease. It ensures better quality product at reasonable prices-The objective of every firm is to maintain quality and price of the product so as to win customer satisfaction. By imprinting price, ingredients and the date of manufacture and the date of expiry on the product promises the consumers that they are getting value for their money. It saves good deal of time-Advertising educates the consumers about the availability, utility, specialty of a product. As the consumers know about the product and services of different producers through advertisements, these goods are pre-sold. The only thing that is to be done is to visit the prospective store and pick the goods. Thus, they save good deal of time which otherwise would have been lost in locating, identifying, comparing and deciding about the product or service.Advertising benefits the society-

It uplifts the living standards- . It generates gainful employment opportunity- It provides new horizons of knowledge- It upholds the culture of a nation-

What are Characteristics of the elements in the promotional mix?

Advertising Public relations Personal selling Sales promotionMode of communication

Indirect and impersonal

Usually indirect and non personal

Direct and face to face

Usually indirect and non personal

Communication control our situation

Low Moderate to low High Moderate to low

Amount of feed back

Little Little Much Little to moderate

Speed of feed back Delayed Delayed Immediate VariesDirection of message flow

One way One way Two way Mostly one way

Control over message content

Yes No Yes Yes

Identification of sponsor

Yes No Yes Yes

Speed in reaching large audience

Fast Usually fast Slow Fast

Message flex Same message local audience

No direct control over message

Tailored to prospective buyer

Same message to varied target audience.

Bring out the Comparison of advertising / sales promotion and personal selling:

6

Personal selling is more important if.. Advertising / sales promotion is more important if..

The product has a high value.It is custom made product.There are few customers.The product is technically complex.Customers are concentrated.E.g.: insurance policies, custom windows, airplane engines

The product has a low value.It is a standardized product.There are many customersThe product is simple to understandCustomers are geographically dispersed.E.g.: soap, magazine subscriptions, and cotton T- shirts.

Difference between advertising and sales promotion:

Advertising Sales promotion

1. A reason is offered to buy.

2. Theme is to build up brand loyalty.

3. Aim is to attract the ultimate consumers.

4. Effective in the long run.5. Customers response is slower.6. Heavy advertising makes the brand image of the product and according to the perception of higher quality

An incentive is offered to buy.

Theme is to break down the loyalty to competing brand.Aim is to attract consumers but retailers, wholesalers, and sales forces also.Effective in the short run.Customer’s response is faster.Heavy sales promotion leads to the product being perceived as having a brand image of cheaper and lower quality.

Discus the Relative strengths and weakness of various promotional tools:

Element Strength Weakness

Advertising

* Reaches many potential customers.* Effective way to create images.* Flexible in terms of time and markets* Variety of media to choose from.* Relatively low cost per person exposed to message.* Appropriate for achieving many types of communication objectives.

* Reaches many people who are not potential buyers.* Ads are subject much criticism.* Exposure time is usually short.* People tend to screen out advertisement.* Total cost may be high.

Personal selling

* Sales people can be persuasive and influential* Two-way communication allows for questions and other feed back.* Message can be targeted to specific individuals.* In some situations, such as for complex products, buyer may expect personal sales.

* Cost per contract is high.* Sales people may be hard to recruit or motive* Presentation may vary among sales people.* Poor presentation may damage image as well as lose sale.

Sales promotion

* Supports short-term price reductions designed to stimulate demand.* Variety of sales promotion tools available.* Effective in charging behaviour.* Easy to link to other communication.

* Risks are during brand loyal customers to stock up while not influencing others.* Impact may be limited to short terms.* Price related sales promotion might hurt brand image.* Easy for competition to copy.

7

Publicity

* Total cost may be very low.* Media – generated message seen as more credible than marketer sponsored messages.* Potential buyers may be less apt to screen out publicity messages.

* Media may not co-operate.* Competition for media attention is heavy.* Marketer has little control over message.* Messages tend not to be repeated

Write about types of advertising?

The important classification of advertising are: Product and Institutional.

1. Product advertising: it aims at selling a particular product. This is the common way. A particular product with its brand is promoted through advertising. For eg, Horlicks, Hamam, Bournvita, Viva etc., This types again divided into primary and selective.(a). Primary advertising (pioneer): this is a type of advertising used at the stage of introducing a new product to the market with the aim to inform the public as to its birth and other details. Eg: pressure cooker, bi cycles, scooter etc.(b) Selective advertising: this type of advertising is used when the market is loaded with similar products. There will be stiff competition among the producers. This generally happens in the growing stage of a products life cycle. Since competition is there, the advertisers aim to capture the market by influencing the demand for a specific product, probably supported by promotion activities. This type is also known as competitive advertising. Eg: prestige pressure cookers, HMT watches, rallie cycles etc.

2. Institutional advertising: this type of advertisement is displayed to create goodwill for the firm rather than to sell its products. Its aim is to make people, members of the advertiser’s firm. It gives importance to the firm and wants to create a good impression about a particular manufacturer or a shop keeper. Eg: Parry & co; godrej etc., this may further be divided into 3(a) In patronage: in it, consumers are informed about the firm, its product and policies.(b) Public relations: It tries to create a favourble image about the firm, dealing strike periods etc.(c) Public service: Here, the advertiser tries to create on image on public support, social services etc.

3. Commercial advertising: Commercial advertising or business advertising is concerned with selling products or ideas to increase the sales volume. They may be:Trade advertising – relating to tradeIndustrial advertising – relating to industrial goodsProfessional advertising – relating to professions (doctors, accountant etc)Farm advertising – relating to farm products.

4. Non- commercial advertising:Non – profit organizations adopt this type of advertisement for instance, inviting donations, financial aid etc.

5. Rational and emotional advertising:If the advertising explains the specialty of a product. Such as use the B.K. Soap. Kumari powder etcIt is a case of rational type. When publicity is made to effect a lady look like a cinema star, associated with a charming beauty, it is a case of emotional type

6. National & local advertising: when advertising is sponsored by manufacturers or producers. It is a case of national (general) advertising. When the advertising is done by retailers, it is a case of local (retail) advertising.

Write about the Role and functions of advertising?

8

1. Communication with consumers:Advertising is a major way to establishing communication between manufacturers and other organizations providing services or trying to put across ideas and concepts, on the one hand and customers, buyers and potential accptions on the other. It is a reminder to the existing consumes and it aims at cultivating need prospects as well. Advertising has, therefore, been described as, effective communication with the larger audience.2. Persuasion: Advertising attempts to persuade prospective buyers to by a product / service. In modern makers, the producer who is content with advertising that merely identifies or informs may soon fine himself in a vulnerable position. The consumer shout be aware of the advertisers persuasive interest no matter how restrained or information the message may be3. Contribution to economic growth: Advertising contributes to economic growth by helping to expand the market, particularly for new products, and by helping to develop new market segments.4. Catalyst for change: Creativity inherent in advertising loads to the discovery of new relationships that can change the perception of a prospect. Two aspects are of special significance: the originality of the message communicated, and the eventual effect on consumer’s standards of living. The ability to bring about changes comes from originality, intngenity, innovation & imagination in advertising. The contribution of advertising in bringing about a change is special relevance to developing countries.

Write about the characteristics of effective advertisement?

It is important to note that the study of effectiveness of advertising is the joint responsibility of the advertiser and his advertising agency, regardless of who is paying for research and under what head of account it is allocated. A proper understanding of the various aspects of effectiveness requires continuity of observation and use of appropriate research as and when called for. There can be a strong temptation to pass superficial judgment on the so-called effectiveness of an advertisement or a campaign. It is however, quite possible that a campaign may have proved effective owing to its intrinsic merit and appropriateness, or favorable conditions, or a combination of both.

Advertising effectiveness should not be confused with the winning of awards such as those given by the advertising club, Bombay in co-ordination with the commercial Artists’Guid. These All India awards for excellence in advertising have the following guidelines for judging the entries.

1. attention value2. comprehensibility 3. credibility4. technical execution5. overall impact6. originality

SOCIAL, ECONOMIC AND LEGAL IMPLICATIONS OF ADVERTISEMENTS

How do you define ethics? Cite an example of message that offends you?One of the most common reasons for criticisms of advertising is that, it does not promote the society well being. The following are some of the criticisms against advertising from social and ethical point of view.

Ethics: It is a moral code of conduct of an individual or group.

There are restrictions to the fact what is permissible in advertising. Eg. Cigarette advertisement is considered unethical, science it is injurious to health, so also alcohol.

1. Advertising is Untruth or Deceptive: One of the major complaints is that many ads mislead are untruthful and therefore, deceive the consumer. The advertiser must have sufficient back up for making a claim about the product performance and S (he) is required to produce evidence to support claims. Eg.

9

HLL claims that its shampoo Clinic All Clear has ZPTO technology, but fails to provide evidence, on the same line, Liril advertised that it has lemon contents, but lacks in reality.

2. Sometimes, the advertisers fail to award prizes promoted in a contest associated with advertising. There are instances of participant going to consumer courts.

3. Most advertisers seldom design their message with an intention to award the prizes. These practices are unethical and the company will lose its reputation and risk in getting prosecuted in the court. This will tarnish the brand image of the company and is likely to lose the hard won customer trust and confidence.

4. Most of these unethical practices observed in advertising are through telemarketing or mail orders.5. The most important criticism of advertisement is that, advertisers usually present only information which

is favorable to their position but not the whole truth about the product or services.

Cite a few criticisms against advertising and explain how advertisers defend them?

1. Advertisement is only informative in nature. It should not be taken word by word. Advertisers also argue that, they have the right to present the most favourable case for their products and services without being objective to justify the information. The advertisers feel it as the prerogative of consumers to get convinced or otherwise.

2. The advertisers feel enough protection to the consumer through courts and governmental body which protects against any misleading advertisement by the manufacturer.

It is contended that advertisements have harmful effects on the society. Eg.Bad habits, stereo-type culture, sex, nudity etc. All these are considered under-taste and appeal.

Taste: Sometimes, it is observed that advertisement is done in bad tasted. The sense of bad taste are follows:

i. Comparison: Advertisements should not be compared with its products and services with others without having sufficient back-up.

ii. Guarantee and warranty: The guarantee and warranty should be explicit with sufficient information. The terms and conditions of such warranty and guarantee shall be clearly disclosed.

Price claims: Advertisements should not mislead by announcing saving claims which does not exist. Eg. “Brand X petrol gives more economy. More economy means what? The claim has no defense. The type of advertisement can be misleading.Taste and Decency: In order to promote a product, certain public decency should not be sacrificed by the advertisers. Effect on children: Advertisement makes a great impact on children who are susceptible to deceptive advertisement due to ignorance. They are unable to ascertain the advantages and disadvantages of the product. Many advertisers exploit their innocence to create impression for new products. On account of this, children trouble their parents to purchase those articles, irrespective of its value and utility.Confuse the people: Advertising creates confusion I the minds of the people. This confusion occurs because of the claims made in the advertisement or because of repetitive advertisements which change the opinions of the individuals. Sometimes, emotional advertising brings irrationality among the individuals and forces them to go in for products and services. Eg: Let us considered an example of emotional application of a “After shave lotion”. The audience will be highly impressed with the antiseptic nature of a particular brand of after shave lotion. This information is quite rational. But advertiser will not stop at this. He will claim that this after shave lotion is “a hit with girls”. When the advertisers does this, he is to enter the motional domain of the viewer. Eg: It is informative to tell an audience that S(he) will lose several kilograms instantly. The methodology to be adopted for wight reduction will be known only after the participant registers with the weight reduction clinic. To the surprise of a participant, S(he) will find the dieting is necessary or wight reduction. But advertising does not convey this message and hence ‘such message are misleading.

10

Habits: Advertisement may inculcate bad habits among the viewers. Eg: Advertising for distinguished products People may tend to buy products which are not desirable. Sometimes, advertisement exploits the sentiment of “status symbol’. This unnecessarily creates a desire for satisfaction with ego protracted of the individual. Advertisement acts a motivator to realize the same. The passion to reach higher status is stimulated by advertising.

ADVERTISING AGENCY

Write about advertising agency?Advertising agency is an independent organization that provides one or more specialized advertising and promotion related services to assist companies in developing, preparing and executing their advertising and other promotion programmes Most large and medium-sized companies usually use an advertising agency.

The advertising agency performs the following useful services.1. They develop attractive and cheaper ideas for advertising.2. The specialized agency, who has all facilities, such as artists, painter, photographers, export

personnel etc, can offer the best advantageous services to the advertisers.3. They posses a closer relation with media owners and this facilitates in obtaining space and timely

presentation at a competitive rate.4. The burden of advertiser is undertaken by them, so that they are freed and can attend to other jobs.5. The expenditure met by the advertiser for advertising can be tuned into productive expenditure with

the help of agencies.6. Generally advertiser fined difficulty in the preparation of advertisement copy. Often they make

wrong copy. But the agency prepares the copy quickly and correctly. This relieves the burden of advertiser.

7. The agency also does the work of special packing, designing, sales training, research, test marketing etc for their clients.

Types of Advertising agencies:Advertising agencies come in all sizes. They include everything from one or two person

shops(which rely mostly on freelance talent to perform most fractions) small to medium sized agencies, large independents and multi-national, multi-agency conglomerates such as Omnicom group, WPP group, Interpublic group of companies and Haves.

An agencies size should not necessarily be considered a barometer of their billing or ability to handle large accounts. Indeed, these days smaller boutique agencies are just as likely to count very large corporations amongst their accounts.Full service or media-neutral advertising agencies have the talent and ability to produce creative and advice clients for a full range of media for virtually any type of account, company. Some agencies specialize in particular fields such as medica, charitable, FMCA, white goods, retails etc. Other agencies specialize in particular media, such as print ads or television commercials. Other agencies especially layer one, produce ark for many types of media (creating integrated marketing communications or through the line (TTL) advertising). The ‘line’, in this case, is the traditional market between media that pay a (traditionally 15%) commission to the agency (mainly broadcast media) and the media that do not.Lately, search engine marketing (SEM) and search engine optimization (SEO) firm have been classified by some as ‘agencies’ due to the fact that they are creating media and implementing media purchase of text base (or image based in some instance of search marketing) ads. This relatively young industry has been slow to adopt the term ‘agency’ however with the creation of ads(either text or image) and media, purchases they do quality technically as an ‘Advertising Agency’ as well as recent studies suggest that but SEO and SEM are set outpace magazine spending in the next 3-5 years.

Not all advertising is created by agencies. Companies that create and plan their own advertising are said to do their work in house.

11

Inside the Agencies:Creative department: The creative department- the people who create the local ads.-form the core of an advertising agency. Modern advertising agencies usually form their copy writers and cut directors into creative teams. The cut director and copy writer report to a creative director, usually a creative employer with several years of experience. Creative departments frequently work with outside design or production studios to develop and implement their ideas. Creative departments may employ production artists as entry level position, as well as for operations and maintenance.

Account services:The other major department in ad Agencies is account series or account management. Account

services or account management is some of the sales arm of the advertising agency. An account executive (one who within the account service department) meets with the client to determine sales goals and creative strategy. They are then responsible for co-coordinating the creative, media, and production staff behind the campaign. Throughout the creative process, they keep in touch with the client to update them on the ad’s progress and gain feedback.

Creative services:The creative services department may not be so well known, but their employees are the people who

have contacts with the suppliers of various creative media. For eg., they will be able to advice upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the process), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a simple agency or client.

Other departments and personnel:Advertising interns are typically university juniors and seniors who genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of six areas of expertise: account service, creative interactive, media, public relations and traffic.Famous advertising agencies:

1. AKQA- clients include Coca-cola, Nike, Microsoft, Yell.com2. BBDO- clients have included Visa and Pepsi-co.3. BBH (Bartle, Bogle & Hegarty)- know for Audi, Hohnnie Walker, British Airways.4. JWT (formerly J> Walker, Thompson)- clients have included Kellogs, Unilever, Diageo.5. WPP group, PUblicis, Omnicom group etc.

Mention some Top 25 AD Agencies.

1. O&M2. McCann Erickson3. Lowe Lintas4. JWT5. Leo Burnett6. Mudra7. Gery Worldwide8. FCB-Ulka9. Contract10. Rediffusion DYR11. RK Swamy BBDO12. Saatchi & Saatchi13. iB & W14. Euro RSCG15. Bates Enterprises16. Ambience Publicis17. SSC&b Lintas

12

18. Everest 19. Dentsu20. Interface21. Publicis India22. Triton23. Percept H24. Equus Red Cell25. TBWA

ROLE OF SALES PROMOTION

What is the role of sales promotion?

In advertising sales promotion - it is apparent that companies communicate with their customers in a number of ways. It is important that we distinguish between the two main varieties of communication.

1. Impersonal communication – e.g. point of sale, promotions,

advertising, promotions and public relations;

2. Personal communication (or direct person to person) e.g. the face to face meeting between a sales person and the customer.

The problem faced by the company planning a communication plan is that firstly there usually is more than one person responsible for making the purchase decision; secondly, there is the important fact that the buyer is influenced by more than one form of communication. For example, the buyer might use the following four sources of information:

1. Trade and technical press2. Salesperson calls

3. Exhibition

4. Direct mail

A review of the facts above reveals the following:

1. More than one person in the purchasing company has an influence on what is bought2. Sales people do not see all the influencers

3. Companies get the information for their decisions from a variety of sources.

It can be seen then that the buying process is quite complicated.

1. The purchasing manager in an organization realizes the need for a specific product to be purchased as a solution to a problem identified;

2. The characteristics and quantity of what is needed are worked out. This is the outline design process such as deciding performance, weight, size, operating conditions, and so on;

3. A specification has to be drawn up based on the above;

4. A search is made for suppliers. This may merely involve the browsing through of a suppliers’ catalogue;

5. Potential suppliers will submit products and plans for evaluation;

13

6. After the necessary trials the suppliers are selected;

7. The supplier delivers the product after the order is duly executed;

8. The goods delivered are checked against specification;

Not all of these steps are followed in every buying decision. When something is being bought for a new project, all the phases would be followed. Where it is simply the replacement of something that has been bought before, the search and even the tender processes may not be necessary. The newness of the product being purchased also plays a role in the product being purchased. The newness of the product is determined by;

1. The complexity of the product;2. The commercial uncertainty surrounding the outcome of the purchase.

Explain sales promotion in practice

Sales promotion is a problem-solving activity designed to get customers to behave more in line with the economic interests of the company.

Typical tasks for sales promotion are: rectifying slow stock movements; counter-acting competitive activity; encouraging repeat purchase; securing marginal buyers; getting bills paid on time; inducing trial purchase etc.However, it is important to realize that, on its own, sales promotion will not replace selling, change long term trends, or build long term customer loyalty.

Types of Sales Promotion

Money Goods Services

Target market Direct Indirect Direct Indirect Direct Indirect

ConsumerPrice reduction

coupons vouchers money equivalent competitions

Free goods premium offers free gifts trade-in offers

Stamps coupons vouchers money equivalent competitions

Guarantees group participation events special exhibitions and displays

co-operative advertising stamps coupons vouchers for services

Trade

Dealer loaders loyalty schemes incentives 

Extended credit Delayed invoicing sale or return coupons vouchers money equivalent

Free gifts Trial offers Trade-in offers

Guarantees group participation events Free services Risk reduction schemes

Stamps, coupons Vouchers for services Competitions

Sales forceBonus commission

Coupon vouchers Points system Money equivalent

Free gifts

Coupons Vouchers Points systems Money equivalent

Free services Group participation events

Coupons Vouchers points systems for services Event admission Competitions

Strategic role of sales promotion

Because sales promotion is essentially used as a tactical device, it often amounts to a series of unconnected gimmicks to lacking any coherence. Contrary to this advertising has been always considered as a strategic

14

process of building brand value over the longer term. Compare this against sales promotion which is commonly used to help the company retain a tactical advantage.

There is no reason why there should not be a strategy for sales promotion, so that each promotion increases the effectiveness of the next.

ETHICS IN ADVERTISING

Write about the Advertising Ethics, Legal and regulating environment in India?Ethics are moral principles and values that govern the actions and decisions of an individual or

group. Many laws and regulations are put into force that determines what is permissible in advertising. However not every issue is enrolled by rules. There is considerable overlap between what many consider to be ethical issues in advertising and the issues of manipulation, taste and the effects of advertising on values and lifestyles. Certain actions may be within the law but still unethical. Cigarette smoking, for example, has been shown to be associated with high levels of lung cancer and other respiratory tract diseases and many people would consider cigarette advertising as unethical.

Advertising is a highly visible business activity and any lapse in ethical standards can often be risky for the company. Consumer protection groups question the sponsorship or support of sports events by companies selling alcoholic beverages or tobacco products.

In India advertising standards council of India (ASCI) enforces the ethical code for advertisers. The council is a non-profit organization setup by 43 founder members and has developed a regulating code. It proposes to adjudicate on whether an advertisement is offensive or not. The council’s decisions are binding on its members and in case of any disputes it proposes to deal with the government.

The code of Advertising standards council of India is similar to the Advertising Standards Authority (ASA) code of UK and seeks to achieve the acceptance of fair advertising practices in the best interests of the consumer.

In case of a complaint from a consumer, a 14-member sub-committee (consumer complaint council) consisting of people from various walks of life such as medicine, media, law etc, hears the complaint. Eight of these members must be from professions and activities not related to advertising. The council meets twice a month and a minimum of 5 members have to be present for any decisions to be taken. In the light of the code, the council asks the agency or the advertiser to comment and submit the substantiation. If the complaint is upheld by ASCI, it asks the advertiser to withdraw the concerned advertisement. This procedure is completed in 2 months. ASCI guidelines are as follows:

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

2. To ensure that advertisements are not offensive to generally accepted standards of public decency.3. To safeguard against indiscriminate use of advertising for promotion of products, which are regarded

as hazardous to society or to individuals to a degree or of a type which is unacceptable to society at large?

4. To ensure that advertisements observe fairness in competition so that the consumer’s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served.

Code for commercial advertising on Doordarshan suggests 33 Do’s and Dont’s for advertiers and was presented before the Parliament in 1987. it incorporates the Indecent Representation of Women Act and the consumer Act, which were passed by the Parliament in 1986.Advertising principles of American Advertising Federation:1. Truth2. substantiation3. comparisons

15

4. Bait advertising5. guarantees and warranties6. price claims7. testimonials 8. Taste and decency.

Write about current issues in advertising and today’s challenges and opportunities of advertising?

Advertising continues to grow in both importance and complexity. Challenges and opportunities for today’s advertisers include better targeting, enhanced creativity, new media horizons, and results – driven advertising.

Better local and global targeting:More advertisers are reaching out to many smaller markets through micro marketing, which offers an

opportunity to focus only on those people interested in their products. The information that fuels micromarketing is growing and much of it is already available .with insight and the computing power to analyze this information advertiser will be better able to locate and communicate with customers and potential customers by tailoring both message and medium to each individual.Enhanced creativity through technology:

From hologram to the computer- manipulated are used in print and electronic media, the creative side of advertising is reaping the benefits of new technology to give advertisers the opportunity to break through clutter and capture attention. New media horizon:

new advertising media are all around, opening new opportunities for advertisers to grab our attention at home or away advertisers are learning how to use the opportunities provided by place-base3d advertising ( also known as in-your-advertising), a form of advertising that reaches the target audience when they are away from home and where they cannot help but notice the message.Result- driven advertising:

If there is one world that sums up advertising’s direction in the 1990’s and beyond, it’s accountability. Advertising can be intriguing, exciting, even suspenseful, but if they don’t achieve the advertiser’s goals, they are not good making the drive for results a major challenges. Creativity is only one part of the advertising equation and advertisers and agencies must continue to work toward combining the message and the media to most effectively influence each target audience.

ROLE OF ADVERTISING IN MODERN BUSINESS WORLD

Explain the structure and role of a full-fledge service Ad agency? (Or) What factors are considered before choosing an agency?

1. Client search for a suitable Ad Agency to launch a product2. Approach by Accounts Executives of different lead agencies.3. Negotiation with various Agencies4. Finalize one Agency5. Client explains the motive behind the launch with the proposed budget6. Client choses a particular service offered by Ad Agency such as M.R. or selection of the particular

media etc.7. If M.R. is chosen, conduct market research and find out customers attitude and suggest appropriate

commercials accordingly.8. Selection of the media such as broadcast or print media.9. Preparation of the Advertisement specimen/spot (Theme. Appeal, Endorsement of the Celebrity)10. Focus on individual media.

a. Regional/national channelb. Print Media/English/Vernacular

16

c. Media buyingd. Buying prime timee. Broadcast during Sports Programmef. Buy space in magazines and dailiesg. Evaluation of the commercial through actual sales.

11. Media buyinga. Broadcast mediab. Buy Prime timec. Broadcast during Sports programmed. Buy space in Magazines and Dailies

12. Evalution of the campaign through market research and its correlation with sales.

ADVERTISING CAMPAIGNS

How does advertising affect brand management and development? If building brand loyalty is one goal, can you identify several examples of business that have successfully used advertising campaigns to create strong brand equity?

An advertising campaign is a series of coordinated advertisements that communicate a reasonably cohesive and integrated theme. The theme may be made up of several claims or points but should advance an essentially singular theme. Successful advertising campaigns can be developed around a single advertisement placed in multiple media, or they can be made up of several different advertisements with a similar look, feel, and message. Another example is represented by the Altoids ads through Notice the excellent use of similar look and feel in this advertising campaign. Advertising campaigns can run for a few weeks or for many years. The advertising campaign is, in many ways, the most challenging aspect of advertising execution. It requires a keen sense of the complex environments within which a company must communicate to different audiences.And think about these important aspects of advertising campaigns. Most individual ads would make little sense without the knowledge that audience members have accumulated form previous ads for a particular brand. Ads are interpreted by consumers through their experiences with a brand and previous ads for the brand. When you see a new Nike ad, you make sense of the ad through your history with Nike and its previous advertising. Even ads for a new brand or a new product are situated within audiences’ broader knowledge of products, brands, and advertising. After years of viewing ads and buying brands, audiences bring a rich history and knowledge base to every communications encounter.

END OF UNIT I

17

UNIT IIMEDIA MANAGEMENT

WHAT DO YOU MEAN BY MEDIA PLANNING?

The customer watch TV, they read newspapers and magazines. They reached on the Internet and read E-mails and millions of advertising messages reach them through all of these media. But which ones work best for brand or client to reach them? And how many should some use? What is the reach? What is the cost per thousand (CPT).

Media planning are those activity that after having received an objective, defines targets, identifies key factors and elements essential in attaining these objectives while keeping in mind these factors; and then selecting various media based on part experience (either by self, through research or through external help) while sticking to a reasonable budget. This process, in its entirely forms the entire spectrum of media planning activities.

WRITE ABOUT MEDIA PLAN AND STREATEGY DEVELOPMENT ACTIVITIES?

The ‘media class’ refers to the general category of delivery systems available to carry advertising messages to a selected audience such as print media, broad cast media, outdoor media etc. within these categories are media sub-classes such as newspapers, magazines, TV, radio and so on. The ‘media vehicle’ is the specific message carrier within medium, such as computer @ home and Business today magazines are vehicles in print media.

Broad cast, press, outdoor, posters and cinema are often referred to as ‘above – the – line’ media. Direct mail, sales promotion, exhibitions, merchandising, sales literature etc are referred to a ‘below-the-line-media’. The distinction in media type is based on whether the agency gets a commission or not.In case of the former category, the agency gets a commission, while in the later there is no commission.

Some basic terms associated with media planning need to be mentioned. ‘Media planning’ refers to a series of decisions that need to taken in delivering the ad message to the largest number of the target audience in the most effective manner at the lowest cost. The plan specifies ‘media objectives’ and ‘media strategies’ to accomplish the objectives.

‘Reach’ is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time.

‘Coverage’ refers to the potential audience that might get exposed to the ad message through a media vehicle.

Reach refers to actual audience exposed to the message and coverage relates to the potential audience likely to be exposed to the message.

‘Frequency’ refers to the number of times the audience is exposed to a media vehicle in a given period of time (usually figured on a weekly basis for ease in schedule planning)

The basic goal of a media plan is to formulate a particular combination of media that would enable the advertiser to communicate the message successfully and effetely to the maximum number of potential and existing customers in the target market at the lowest cost. Any mistakes in the function may result in wastage of substantial amounts of money.

MEDIA STRATEGY AND SCHEDULING

MEDIA PLAN AND STRAGEGY DEVELOPMENT ACTIVITIES

SITUATION ANALYSIS

18

Analyze and define the marketing problem. What are the company’s and competitions strengths and weakness? What are the opportunities and threats?

MARKETING STRATEGYFormulate activities that will solve concerned marketing problems:

- marketing objectives - target market segments- marketing mix decisions.

ADVERTISING STRATEGYDecide what message to communicate through advertising

1. detailed profiling of target audience2. product and its positing decision3. communications media to be used.4. advertising message and appeal.

SETTING MEDIA OBJECTIVESSet media goals that can achieve advertising objectives

DETERMINING MEDIA STRATEGYSet guidelines for the selection & use of media, select the best strategy alternations.

SELECTION OF MEDIAComparing & selecting the media, class that best fulfills the criteria. Such as TV, newspapers, magazines, radio or others. Audience size a characteristics are used in making inter-media comparisons. Media planners will specify particular names of magazines newspaper, TV, programme etc.

WRITE ABOUT MEDIA OBJECTIVES?Media objectives are formulated to help accomplish the advertising communications task and marketing objectives. Media objectives are translated into specific goals for the media programme and are limited to those that can be achieved through media strategies. For eg, the media objectives can be stated as;

1. Use print media to provide coverage of 80% of the target market over a six-month period starting July.

2. Reach 60% of the target audience at least 3 times (frequently) over the same six months period. 3. Concentrate heaviest advertising between October and December with lighter emphasis in earlier

months.

WRITE ABOUT MEDIA STRATEGY AND SELECTION?Several internal and external factors may influence the media strategies and include media budget,

capabilities of agency personnel, rising costs of media and the competitive environment.

EXPLAIN ABOUT THE CHANGES IN MEDIA BUYING?

Media are constantly changing, often reflecting economic, social, ethnic, and political changes. The press, while losing some circulation among the more sensational tabloids and the politically boring heavies, predominates chiefly because of its long life, portability and ability to reach any required target audience.

Radio both local and national is acquiring a new importance in the UK, which suits tight budgets.Posters, because of the rationalization of sites and sizes and the offering of strategically planned

campaigns, has resumed its former position.

19

Direct mail continues to boom inspirit of the inefficiency of the post office but thanks to the growth of direct response marketing. Cinema has shown a marked increase in audience figures. Transportation advertising does not seem to appeal to advertisers judging by the number of buses one sees naked of posters.

Exhibition have had mixed fortunes according to the location and extent, if any of government support. Exhibitions and trade fairs are popular but most exhibitions are seeking export markets which has meant showing in Asia, Europe and the Gulf rather than in Britain.

But the medium which is really losing favor is television, partly because its audience has the least spending power and partly because of the proliferation of channels plus the temptation to zap from one channel to another when the commercials come on. Moreover some of the commercials are so obtuse it is difficult to know what they are saying while the detergent ads of 90s have been the dullest ever imposed on TV audience already bored by endless repeats. Just as cinema advertising used to be seen by large audience at 3000 seated cinemas so too is television advertising heading for the history books. This is now such a clutter of commercials scattered over numerous channels that the audience has become fractured.

MEDIA SELECTION

Explain media selection?Media selection specifies the media in which advertising message will be placed to reach the desired target audience. Media class refers to a broad category of media such as Radio or T.V. Media vehicle is a particular option for placement within the media class. Media plan includes objectives, strategies, media choice for placing the message. There are two primary media objectives, reach and frequency. Reach is the percentage of audience exposed to the message. Frequency is the average number of times reached. Circulation refers to copies sold, while readership refers to number of persons actually reading the publication. There are four problems of media planning. Also there are factors to be considered by the media planner before emphasizing reach, frequency and continuity.Media strategies are decisions made to deliver the media objective. Media planner use several competitive indicators such as CPM and CPRP of vehicles in the same medium. Media planners use index method to find proper location. BDI and CDI are the indicators. Media schedule is based on consideration of seasonality and timing. Scheduling methods vary from continuity, flighting and pulsing. Good media strategy decisions help ensure that good message are placed in the right media.

MEDIA PLAN

Write notes on Media Planning.

MEDIA PLANNINGMedia planning involves a series of decisions in delivering the ad message to the largest number of

the target audience in the most effective matter at the lower cost. Three important steps involved are media objectives, media strategy and media selection.

After closely analyzing the media habits of target audience, geographic area, and media timing, the planners formulate a particular combination that would serve the reach, frequency and impact objectives successfully and effectively. Media Class: is the general category of message delivery system for carrying the ad message to a selected audience, such as print media, broadcast media, or outdoor media etc. Media Vehicle: is the specific message carrier within a medium, such as Times of India, Outlook, Star Sports. Media Reach: is a measure of the number of different audience members or households exposed at least once to a media schedule within given period of time. Reach is also called Opportunity To See. (OTS).Media Frequency: is the average number of times that an individual or household is exposed to a message carrying media vehicle within the specified time period. Media Impact: refers to the qualitative value of an exposure through a given media vehicle. It is the intrusiveness of the ad message, such as the ad for a ladies perfume is likely to have more impact in Femina than in Computer Magazine.

20

Media Scheduling: is concerned with timing the insertion of ads in the selected media vehicles. There are three major media scheduling approaches. Continuity refers to a continuous pattern of advertising that can mean every day, every week etc. during an advertising cycle.

State the various factors influencing the selection of media in media planning.

Selection among major media typesMedia planners consider certain factors in making their choices among major media to achieve the

desired reach, frequency and impact. Media planners consider the following factors. target audience media habits

For instance to reach younger urban audiences, TV, magazines and FM radio are more effective. Product Characteristics

Products that require demonstration or want to be presented in slice-of-life format need TV as the medium. Women dresses are best presented in glossy magazines that reproduce good colour quality.

Message CharacteristicsA product message involving a great deal of technical data might require some specialized magazines.

Media costs:Television is considered as most expensive. With the rising number of advertisers seeking to reach

their customers through TV, cost of TV time is rising rapidly. Newspaper is relatively less expensive, and considering the coverage, radio is least expensive. For Broadcast Media

Costs are compared in terms of Gross Rating Points(GRP). This is a numerical figure indicating howMany potential audience members are likely to be exposed to a series of commercials.

This combines programme rating (Indicates percentage of households owning a TV who view a programme) and the average number of times(Frequency) these households are reached during a given period.

Magazine space is sold primarily on the basis of pages or some increment of a page and calculate on the basis of cost per page-per-thousand circulation. The Cost Per Thousand (CPM) is calculated as under:

GRP= Reach * Frequency

GENERAL CHARACTERISTICS OF MAJOR MEDIA TYPES

Media Advantages Disadvantages

Television

Offers mass coverage. High level of reach combined

impact of sight, sound & motion, prestige value.

Low cost per exposure. Attracts attention.

Offers low selectivity. Short span of message life. High cost. High production costs. Creates Advertising Clutter. Wastage coverage.

Radio

Local Coverage. Lower Cost. High Frequency, Focused Segment Selection. Low Production Costs.

Only audio. Noise. Low on attention getting. Message short lived.

Mass Coverage, Short life of advertisement

21

CPM= Cost of Space/ Circulation * 100

GRP= 1000,000* Rate Per Agate Line Circulation

Newspapers

Low Cost, Large Space, Short Lead time for ad

placing. Ad position choice possible, Good for current ads, Reader controls exposure, Coupons can be inserted.

Clutter. Low Attention getting. Poor Production Quality. Selective Exposure.

Magazines

Potential for focused segmentation.

Very good production quality. Longevity of message. High information content. More readers per copy.

Long lead time for ad placing. Only Visual. Low frequency. Lack of flexibility.

Outdoor Good for specific location. High repetition. High visibility.

Short exposure time. Short message. Poor image.

Direct Mail

High level of selectivity. Reader controls exposure. High information content. Opportunity for repeat

exposures.

High cost per contact Clutter often thrown as joint

mail.

Internet User controlled. Increased attention and

involvement.

Limited creative capabilities.

REACH AND FREQUENCY OF ADVERTISEMENTS

Discuss - Reach and Frequency Of Advertisements.

There are two kinds of reach:1. Numerical 2. Percentage

Numerical reach is the number of persons (or households, or adult females, or whatever your target population happens to be) that will be communicated to by your advertising. Numerical reach is usually rounded, so you may try to reach 8 million male teens or 1.5 million households.Percentage reach is the percent of all the persons (or, again, households, or working females, or whatever you target) that you will reach with your campaign. If there are 35 million college students in the United States and you will reach 10 million of them, you will reach about 28.6 percent of them. Because percent reach is often rounded to the nearest integer (whole number), you would have 29 percent reach.Reach is often abbreviated as “R” in tables and informal report.

Frequency:There are also two kinds of frequency: frequency of insertion and frequency of exposure.

Frequency of insertion describes the number of times that your advertisement appears in the media. Often, frequency is described on a per-week basis, rather than the frequency per year or the frequency

22

during the course of a campaign. So you might be running your advertising twenty-five times a week on a radio station during your thirteen-week campaign.Just because you run advertising insertion frequently does not mean that the audience will see or hear your advertisement every time it runs. In fact, it is unlikely that any member of your advertisement every time it runs. If you have a frequency of insertion of twenty-five times per week, the average audience member will see or hear that advertisement only three or four times each week, which would be your frequency of exposure.When scheduling multiple advertisement insertions, you are likely to reach your audience members with varying degrees of frequency. If you schedule, say, ten advertisements, perhaps only 10 percent of the audience members will see all ten and 30 percent will see only one. One method that a media planner uses to analyze the impact of an advertising media schedule is to look at a frequency distribution of the impressions.There are different schools of thought on how many times a consumer must see or hear and advertisement before it registers. The concept of effective frequency pegs a specific frequency number, such as 3+ (persons who see or hear the advertisement three or more times), which is when it is believed that a consumer will retain the message.Frequency is often abbreviated as “F” in informal plans and tables. Because no single week may be completely representative or average, we often count up the frequency over a four-week period and then divide the figure by four to come up with the weekly average. That way, a week that is higher or lower than average will not skew the figures.

ADVERTISEMENT COST

Explain Advertisement Cost?Media costs are a major consideration. Some media are expensive while others are less so; television has high advertising rates for air time, and the cost of producing a television commercial may also be steep. Radio, on the other hand, is much less expensive. Although costs are are important, the cost must be balanced against all the other factors. Does an inexpensive medium have the same audience impact, or is there a trade-off for the less expensive media outlet?Most advertising media also offer discounts, which can be based on the amount of advertising purchased – a “quantity discount” – or on regular purchase of advertising – a “frequency discount.”

Compare – Media Cost.

In addition to selecting media that reach out target, we often must judge how efficient the media are, often comparing the cost of one media vehicle with another on the basis of cost efficiency. Because costs vary so much form one medium to another, these cost comparisons are usually made for one vehicle versus another, rather than one medium versus another. Only a person who is highly skilled and experienced selecting and comparing media uses these cost comparisons to compare one medium with another. It is difficult to know whether a full-page, four-color bleed advertisement I a national magazine is equivalent to a thirty-second network television commercial (a “:30”), or a sixty-second commercial (:60), or perhaps a: 15. It is safest, then, not to use these cost comparison figures for intermediate comparisons.

23

Frequency and Repetition Some people believe that frequency and repetition are the same thing, but they are not. Frequency is the number of times you advertise, whether the same message is repeated or not. Repetition is using the same advertising message over and over again, whether it is done frequently or not.A local store buys twenty-five spots per week on a local radio station and has the messages delivered impromptu by one of the station’s on-air personalities. The advertising is appearing frequently, but it is unlikely that any of the messages is repeated exactly. Here we have frequency without repetition.A large insurance company runs its Christmas message in magazines every December, using the same message every year. Advertising one time per year is definitely not frequent advertising, so here we have repetition without frequency.

Explain cost per thousand.In advertising, the number 1,000 can be abbreviated as K (kilo) or M (mille). Most often, K is used for money and M is used for audiences. Because 1,000 x 1,000 equals a million, we use MM to mean a million. (Don’t get confused by newspaper headlines, which often use M to mean million).So the term “cost per thousand” is abbreviated as CPM. It is difficult to compare the cost efficiency of, say, one magazine with another because, in addition to having different advertising prices or rates, they also have different circulations. Say that Magazine A, with a circulation of 2.1 million, charges $23,500 for a full-page advertisement, and that Magazine B, with a circulation of 1.2 million, charges $13,500. you would expect the magazine with the larger circulation to charge more, but it is difficult to determine which magazine is more economical.

That is where CPM comes in. instead of trying to compare the costs and circulation at the same time, we assume that each magazine has a circulation of only 1,000, and we then compare the cost for each 1,000 circulation. We do this by dividing the advertising rate by the circulation, to get the cost of advertising in a single copy of the publication, then multiplying by 1,000 to compare the cost of a thousand-copy circulation.

Here is the CPM for Magazine A.

$23,500 x 1,000 = $11.19 CPMMagazine A = ---------

2,100,000Doing the same for the other publication gives a comparison CPM.

Magazine B = $ 13,500 x 1,000 = $11.25 CPM-----------1,200,000

So if both magazines had the same circulation, magazine A would be charging less for advertising. Saying that another way, magazine A charges less for advertising for each 1,000 circulation than does Magazine B.As we have just seen, for publications we often compare cost per thousand on the basis of circulation. But remember that the term “circulation” does not mean the same thing for broadcast media, so instead of circulation, we use audience numbers for CPM calculations in broadcast media. Because the number of people in an audience is usually much larger than the print circulation, CPM figures come out lower for broadcast media than they do for print media-another reasons not to use CPM for intermedia comparisons.

Explain cost per point?We can also compare costs among media vehicles on the basis of how much it costs to reach 1 percent of the audience. Remember that 1 percent reach is the same a s a rating point, so we call this comparison cost per rating point; it is sometimes abbreviated as CPR (cost per rating) or CPRP (cost per rating point), but most of the time it si simply called CPP (cost per point).

If radio commercial costs $5,300 and it reaches 2.2 percent of the audience, we simply divide the cost by the rating to derive the cost per point.

Cost per rating point = $ 5,300 = $2,409 CPP----------

Rtg

Just as with CPM, you can use CPP to compare the advertising rates of one media vehicle with another. If another radio station charges $6,200 and achieves a rating of 2.5 percent, its CPP would be:

Cost per rating point = $6,200 = $2,480 CPP

24

---------Rtg

So the first radio station is slightly more efficient in reaching a rating point ( 1 percent of the audience).

Cost comparisons are an important way to compare media vehicles, but we also need to compare one medium with another. Most of the time, these intermediate comparisons are based on a number of factors, other than price.

What are Ratings?

The concept of rating has a unique meaning in the advertising industry unlike the meaning used in everyday talk. When people typically use the word rating, they are referring to a judgement about something. For example, a movie (or restaurant, CD, etc.) might be rated on a five-star scale from terrible (=1 star) to wonderful (= 5 stars.). However, in the context advertising, the term ratings simply refers to the percentage of an audience that has an opportunity to see an advertisement placed in that vehicle. Let us illustrated the meaning of ratings using television as an example. As of 2005, the ACNielsen company, which is well-known in the area of measuring television ratings, estimated that there were approximately 109.6 million households in the United States who had television sets. Therefore, a single rating point during this period represents 1% (1,096,000) of all television households.

What is Gross Rating Points (GRPs)?

Gross Rating Points, or GRPs, reflect the gross weight that a particular advertising schedule has delivered. The term gross is the key. GRPs indicate the total coverage, or duplicated audience exposed to a particular advertising schedule. Compare these terms with the alternative terms given earlier for reach – that is, net coverage and unduplicated audience.

Returing to our hypothetical example of an advertisement for the Esuvee in Sports Illustrate, the reach was 90, meaning that nine of the 10 households in our mini audience were exposed to at least a single issue of SI magazine. The gross rating points in this example amount to 200 GRPs because audience members were exposed multiple times (2.22 times on average) to the vehicles that carried the Esuvee advertisement during the four-weel ad schedule.It should be apparent from this discussion that GRPs represent the arithmetic product of reach times frequency.

GRPs = Reach ( R ) x Frequency ( F )= 90 x 2.22=200

By simple algebraic manipulation the following additional relations are obtained:

R = GRPs / FF = GRPs / R

What is TRps?

Target Rating Points (TRPs):A slight but important variant of GRPs is the notion of target rating points. Target rating points, or TRPs, adjust vehicle ratings to reflect just those individuals who match the advertiser’s target audience. Returing to the Esuvee example, let us assume that the advertising target for this SUV model is primarily men between the ages of 18 and 49 who have incomes of $45,000 or more. Considering the 10 TV programs listed previously, assume that, as a matter of simplicity, only 35% of the total audience exposed to each of these programs actually match Esuvee’s target market. Hence, although placing a single ad in each of these

25

programs yields 119.8 gross rating points, this same schedule produces only 41.9 target rating points (i.e., 119.8 x .35 = 41.9). it should be obvious from this simple illustration that GRPs represent some degree of wasted coverage insofar as some adudience members fall outside the target audience the advertiser wishes to reach. Comparatively, target rating points, TRPs, represent a better indicator of a media schedule’s non-wasted weight. GRPs equal gross seight, some of which is wasted; TRPs equal net weight, none of which is wasted.

MEDIA MIX

Mention some factors to be considered in Media Mix?

Media mix: Media mix refers to the combination of media that is used. The following factors are considered in the media mix. There is a possibility that an advertiser can use the combination of broadcast and print media for the same product. Housing loan – give only a brief outline in the broadcast media, such as the name of the bank and interest rates. Announce the details of the housing loan available in the print media and the name of the newspaper which the customer could refer.

1. Match the media to the target market: The media planner should know the degree of interest that people have in a particular meida. Eg. In a particular geographical location, there may be many illiterates, Here, the print media will be more effective. Therefore, it is necessary to match the media mix with the target market.

2. Relative efficiency of the media: Cost efficiency has to be calculated before choosing a media. Cost efficeiency is defined as the cost at which the media reaches the target audience effectively. The most common measure of cost efficiency is the “cost per thousand”, CPM, which is the cost of reaching one thousand people in the target market. Eg. Take two newspapers, The Times of India and the Statesman. Let us calculate the cost efficiency as follows:

Time of India StatesmanPer page cost Rs. 1,56,000/- Rs. 1,44,000/-Circulation 4 million 3.1 millionCalculation of CPM 1,56,000 x 1,000

40,00,0001,44,000 x 1,000 31,00,000

CPM 39 46.45

From the above, it is evident that the Times of India is cost efficient even though its absolute cost is higher.

3. Match the media type to its objective: Eg. If reach is the main objective, then newspaper can be used, since it has got a bigger reach compared to other media.

4. Media type used by competitor: The media planner may like to avoid the same medium as that of competitor. He may choose some other innovative medium. Eg. API Polymer, manufactures of sports shoes under the brand name “Action” targeted the lower-end of the market. Initially, they were pitted against gaint global brands such as-Adidas, Puma, etc. the global multinationals use heavy TV commercial to promote their product.

Through innovative media planning, API Polymer used celebrity cricketers on point of purchase material (like posters, cut outs) instead of going into expensive TV commercial. This appealed to the mass audience and created high brand awareness. Besides POP they also put up sign boards in shopping centres. TV advertising was kept minimal.

5. Nature of the product: Media Mix will depend on the nature of the product. If it is technical product, the magazine would be ideal. If it is perfume, a celebrity on TV serial would be ideal etc.

6. Traget market coverage: Where more than one target market is defined, the media planner must determine the relative importance of each. This is known as “Weighting” Weighting classifies the target into primary target and secondary target.

26

7. Scheduling: Three scheduling methods are available for media planner namely a) Continuity: Continuity refers to a continuous pattern of advertising which may be every week or every day. The key is that, there is no non-advertising period. Such a strategy is used for advertising food products, laundary detergents etc. b) flighting: Eg Flighting employs intermittent periods of advertising and non-advertising. At some periods, there are heavier promotional expenditure and at other times, there is no advertising. Eg. Educational Institutions an example of flighting, some of the consumer durables like ridge etc. c) pulsing: Plusing is a combination of both the methods. In the pulsing strategy, continuity is being maintained. But at certain times, promotion efforts are stepped up. Eg. Automobiles such as car has advertisements which peaks during January – March. Because, depreciation advantage can be taken and most of the corporate buy vehicles during this time. Also, during Diwali and Dussehra, an advertisement for consumer durable follows pulsing.

d) Reach Vs. scheduling: While establishing the reach, care must be taken to see that there is no duplication. If one ad is placed in two different serials for the same population, there will be duplication and wastage. This has to be avoided. It is here that was would like to distinguish the Gross Rating Point (GRP) Vs. Target Rating Point (TRP). TRP does not include waste coverage.

e) Flexibility: An effective media strategy requires certain degree of flexibility. This is because, the marketing environment changes rapidly and strategies need to be modified. Flexibility may be needed to sort out the following:

1. Market opportunities: Sometimes, when the market opportunity arises, the advertiser wishes to take advantage. For development of a new advertising media such as Internet, it may offer an opportunity that was not previously available. Eg. House rentals, Tutorials.

2. Market threats: A competitor may alter his media strategy. If it is not responded properly by the marketer, could create problem.

3. Availability of media: Sometimes, a desired medium is not available or the medium currently used is inaccessible, alternative media vehicle must be considered.

What is Budget consideration?

One of the most important decisions in the development of media strategy is cost estimation. The value of any strategy is cost estimation. The value of any strategy can be determined by “How well it is delivers the message to the audience at the lowest possible cost”. There are two types pf costs to be considered

a) Absolute Cost: Total cost require by using only one media. Relative cost – Refers to comparative cost for different mediums (Example shown between Times of India and Statesman may be quoted). The relative cost is determined as follows:

Magazines = CPM = Cost of advertising space X 1000 / Circulation

TV = Cost per rating points = Cost of commercial time / Rating points Rating point = No. of people who watch a particular programme / Total no. of people owing TV in that area.

Newspaper = Cost per line / Inch = Cost X 1000 / Circulation.

List out the table - Media Planning in India.

Electronic Media Print Media Outdoor / Other media

Doordarshan – 24 channels private satellite channels – 95 Cinema – Mass media that reaches large population TRP – Television rating points used to evaluate

Newspaper – National, Regional, English or Vernacular Magazines – National, Regional, English or Vernacular.

Bill Boards Wall paintings Point of purchase display Ballon advertising In-stadium advertisement Transit advertising through local train, bus, tram etc.

27

private channels DART – Doordarshan audience research television rating

END OF UNIT II

28