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Title: Advertising and Sales Promotion Management


1
ADVERTISING SALES PROMOTION MANAGEMENT
  • Dr. ANANDA KUMAR
  • Professor
  • Department of Mgt. Studies
  • Christ College of Engg. Tech.
  • Puducherry, India.
  • Mobile 91 99443 42433
  • E-mail searchanandu_at_gmail.com

2
UNIT 1
  • Advertising and Strategic Advertising Decisions
  • Advertising Origin and Development Definition
    and Classification Planning Framework
    Organizing Framework The Advertiser and
    Advertising Agency Interface.
  • Setting Advertising Objectives The Budget
    Decision Preparing the Product and Media brief.

3
MARKETING COMMUNICATION
  • Marketing is the process of discovering and
    translating consumer needs and wants into product
    and service specifications, creating demand for
    these products and services and then in turn
    expanding this demand.
  • Companies must also communicate with present
    and potential stake holders, and the general
    public. Thus, every company is inevitably cast
    into the role of communicator and promoter.
  • For most companies, the question is what to
    communicate to whom, and how often, especially
    with the consumer.

4
MARKETING MIX
MARKETING MIX
PRODUCT Product Variety Quality Design Features Br
and Name Packaging Sizes Services Warranties Retur
ns
PLACE Channels Coverage Assortments Locations Inv
entory Transport
Target Market
PROMOTION Sales promotion Advertising Personal
Selling Public relation/ Publicity
PRICE List price Discounts Allowances Payment
period Credit terms
5
Sales Promotion
  • Sales promotion is the dissemination or
    propagation of information in a very broad sense
    through a wide variety of activities, including
    free samples, gifts, coupons, point-of-purchase
    sings and displays, reduction sales, contests,
    shows and exhibitions, demonstrations etc.
  • In other words, it includes those marketing
    activities other than personal selling and
    advertising.

6
PERSONAL SELLING
  • Personal selling refers to the presentation of
    goods and services before the customers and
    convincing or persuading them to buy the products
    or services.
  • Personal selling is a promotional method in which
    one party (e.g., salesperson) uses skills and
    techniques for building personal relationships
    with another party (e.g., those involved in a
    purchase decision) that results in both parties
    obtaining value.

7
PUBLICITY
  • Publicity is the dissemination of information by
    personal or non personal means and is not
    directly paid by the organisation and for which
    the organisation is not clearly identified as the
    source.
  • Publicity (a tool used in public relations) is
    non personal communication, that is typically in
    the form of a news story, that is transmitted
    through the mass media. The purpose of publicity
    is to draw favorable attention to a company
    and/or its products without having to pay the
    media for it.

8
ADVERTISING
  • American Marketing association has defined
    advertising as any paid form of non-personal
    presentation and promotion of ideas, goods and
    services by an identified sponsor.
  • According to the New Encyclopedia Britanica,
    advertising is a form of communication intended
    to promote the sale of the product or service to
    influence public opinion, to gain political
    support or to advance a particular cause.

9
ADVERTISING
  • Advertising is a paid form of communication,
    although some forms of adveritsing, such as
    public service announcements (PSAs).
  • Second, not only is the message paid for, but
    also the sponsor is identified.
  • Third, most advertising tries to persuade or
    influence the consumer to do something. Although
    in some cases the point of the message is simply
    to make consumers aware of the product or
    company.

10
ADVERTISING
  • Fourth and fifth, the message is conveyed
    through many different kinds of mass media
    reaching a large audience of potential consumers.
  • Finally, because advertising is a form of mass
    communication, it is also non-personal.

11
Salient Features / Phrases of Advertising
  • Any form
  • Paid form
  • Non-Personal
  • Goods, Services, Ideas
  • Identified Sponsor
  • Information
  • Persuasion
  • Target Audience

12
CHARACTERISTICS OF ADVERTISING
  1. Advertising is one of the methods of promotion
    mix.
  2. It is a paid mass communication, not aiming at a
    specific individual.
  3. It is a form of publicity, i.e., dissemination of
    information regarding a product, service or idea.
  4. It is salesmanship in writing or printed
    salesmanship.
  5. It is a mass non-personal communication. That
    is, communication is only through written, spoken
    or visual means, and not through persons.

13
Cont
  1. It is a sponsored publicity or communication
    i.e., the publicity has been deliberately
    sponsored, initiated or undertaken by a sponsor.
    It is paid for by the sponsor.
  2. The sponsor of advertisement (i.e., one
    responsible for it) is usually identified in the
    advertisement itself.
  3. It is undertaken to influence the buying
    behaviour of the customers.
  4. It guides the buyers towards a more satisfactory
    expenditure of their hard earned money.

14
ORGIN AND GROWTH OF ADVERTISING
  • Advertising by word of mouth is probably the
    earliest form of advertising because, oral skills
    were developed well before reading and writing
    did.
  • The origin of advertising as a public
    announcement is traceable to the town crier and
    the village drummer. These used their lungs to
    shout out their own or others messages.
  • The messages could relate to government
    announcement or even to sales of goods on market
    days. Then there were signs on shops or drinking
    houses to indicate the name of the shop owner or
    of the shop

15
Cont
  • 1. Ancient Times up to 5th Century
  • 2. 5th to 8th Centuries
  • 3. 9th to 15th Centuries
  • 4. 16th and 17th Centuries
  • 5. 18th and 19th Centuries
  • 6. The 20th Century

16
1. Ancient Times up to 5th Century
  • The artisans, bakers, shoe-makers,
    green-grocers and other merchants were eager to
    exchange their goods for money and advertising
    came to their timely help.
  • Selling goods in ancient times involved
    personal selling abilities.
  • Merchants needed to identify their places with
    a symbol that told their trade, and so the shop
    signs were born.

17
Cont
  • The merchants impressed upon the minds of
    consumers of the qualities of their wares which
    was done by the hired criers or the barkers.
  • Other form of communication was the wall
    signs. On the walls of the tall buildings near
    important gathering places were letter sign
    advertisements, entertainments, helped the
    location of taverns and goods for sale.

18
2. 5th to 8th Centuries
  • The period from 475 AD to 800 AD is referred to
    as Dark Age.
  • This is the period that starts with the
    downfall of Roman Empire and ends with the
    coronation of Charlemagne.
  • It was furthered in the form of Voice.
    Public barkers equipped with the horns and bells
    were capable of attracting the attention of
    consumers.
  • Advertising was done either by human voice and
    or by hand executed signs and play cards.

19
3. 9th to 15th Centuries
  • The latter part of the Middle Age was a great
    and bold leap forward in human civilization and
    culture.
  • These men developed a new gimmick of free
    samples.
  • Printing originated in China and the oldest
    book printed was dated 868 AD.
  • To increase in education was essential to the
    growth of advertising.
  • New methods of advertising were now available
    like printed posters, hand-bills, signs,
    pamphlets, books and newspapers.

20
4. 16th and 17th Centuries
  • During the 16th century, newspapers were
    largest among the prints and these newspapers
    were in the form of news-letters.
  • The first news-letter was started in 1622 in
    England. Latter half of the 16th century
    witnessed newspapers in the form of news-books
    and were common by the middle of 17th century.
  • The outstanding features of 17th century were
    that there were special advertising periodicals.
  • By the end of 17th century, newspapers were
    well established in England undertaking
    advertising on a regular basis.

21
5. 18th and 19th Centuries
  • The age old principle of Caveat Emptor ruled
    the transactions and hence the advertising that
    was resorted to was untruthful.
  • That is why, the people did not believe totally
    in the advertisement message given.
  • Buyers were to be cautious and diligent in
    buying the goods so advertised.
  • The 19th century was marked by a new trend of
    brand advertising. Magazines both weeklies and
    monthlies started catching the imagination of the
    people by popularising the brands.

22
6. The 20th Century
  • The current century is marked with the advent
    of two fascinating media of communication namely,
    radio and television.
  • Americans have the credit of having these
    first. Radio ruled the scene from 1922 to 1947
    and 1948 onwards, television took over.
  • Television could beat radio advertising with
    the visual effects.
  • The outdoor advertising has its own
    developments such as travelling displays,
    sky-writing, painted displays.

23
CLASSIFICATION AND TYPES OF ADVERTISING
  • 1. Product Related Advertising
  • A. Pioneering Advertising
  • B. Competitive Advertising
  • C. Retentive Advertising
  • 2. Public Service Advertising
  • 3. Functional Classification
  • A. Advertising Based on Demand Influence
    Level.
  • i. Primary Demand (Stimulation)
  • ii. Selective Demand (Stimulation)
  • B. Institutional Advertising
  • C. Product Advertising

24
  • i. Informative Product Advertising
  • ii. Persuasive Product Advertising
  • iii. Reminder-Oriented Product Advertising
  • 4. Advertising based on Product Life Cycle
  • A. Consumer Advertising
  • B. Industrial Advertising
  • 5. Trade Advertising
  • A. Retail Advertising
  • B. Wholesale Advertising
  • 6. Advertising Based on Area of operation
  • A. National advertising
  • B. Local advertising
  • C. Regional advertising
  • 7. Advertising According to Medium Utilized

25
i. Pioneering Advertising
  • This type of advertising is used in the
    introductory stages in the life cycle of a
    product. It is concerned with developing a
    primary demand. It conveys information about,
    and selling a product category rather than a
    specific brand.

26
ii. Competitive Advertising
  • It is useful when the product has reached the
    market-growth and especially the market-maturity
    stage. It stimulates selective demand. It seeks
    to sell a specific brand rather than a general
    product category.

27
iii. Retentive Advertising
  • This may be useful when the product has achieved
    a favourable status in the market that is,
    maturity or declining stage. Generally in such
    times, the advertiser wants to keep his products
    name before the public. A much softer selling
    approach is used, or only the name may be
    mentioned in reminder type advertising.

28
2. Public Service Advertising
  • This is directed at the social welfare of a
    community or a nation. The effectiveness of
    product service advertisements may be measured in
    terms of the goodwill they generate in favour of
    the sponsoring organization. Advertisements on
    not mixing drinking and driving are a good
    example of public service advertising.
  • In this type of advertising, the objective is to
    put across a message intended to change attitudes
    or behaviour and benefit the public at large.

29
3. Functional Classification
  • Advertising may be classified according to the
    functions which it is intended to fulfill.
  • (i) Advertising may be used to stimulate either
    the primary demand or the selective demand.
  • (ii) It may promote either the brand or the firm
    selling that brand.
  • (iii) It may try to cause indirect action or
    direct action.

30
i. Primary Demand Stimulation
  • Primary demand is demand for the product or
    service rather than for a particular brand. It is
    intended to affect the demand for a type of
    product, and not the brand of that product. Some
    advertise to stimulate primary demand.
  • When a product is new, primary demand stimulation
    is appropriate. At this time, the marketer must
    inform consumers of the existence of the new item
    and convince them of the benefits flowing from
    its use.

31
ii. Selective Demand Stimulation
  • This demand is for a particular brand such as
    Charminar cigarettes, Surf detergent powder, or
    Vimal fabrics. To establish a differential
    advantage and to acquire an acceptable sort of
    market, selective demand advertising is
    attempted. It is not to stimulate the demand for
    the product or service.
  • The advertiser attempts to differentiate his
    brand and to increase the total amount of
    consumption of that product. Competitive
    advertising stimulates selective demand.

32
B. Institutional Advertising
  • Institutional Advertising may be formative,
    Persuasive or reminder oriented in character.
    Institutional advertising is used extensively
    during periods of product shortages in order to
    keep the name of the company before the public.
    It aims at building for a firm a Positive public
    image in the eyes of shareholders, employees,
    suppliers, legislators, or the general public.
    This sells only the name and prestige of the
    company. This type of advertising is used
    frequently by large companies whose products are
    well known. HMT or DCM, for example, does
    considerable institutional advertising of its
    name, emphasizing the quality and research behind
    its products.

33
C. Product Advertising
  • Most advertising is product advertising, designed
    to promote the sale or reputation of a particular
    product or service that the organization sells.
    The marketer may use such promotion to generate
    exposure attention, comprehension, attitude
    change or action for an offering. It deals with
    the non-personal selling of a particular good or
    service. It is of three types as follows-
  • A. Informative Product Advertising
  • B. Persuasive Product Advertising
  • C. Reminder-Oriented Product Advertising

34
A. Consumer Advertising
  • Most of the consumer goods producers engage in
    consumer product advertising. Marketers of
    pharmaceuticals, cosmetics, scooters, detergents
    and soaps, cigarettes and alcoholic beverages are
    examples.
  • Baring a few, all these products are all package
    goods that the consumer will often buy during the
    year. There is a heavy competition among the
    advertisers to establish an advantage for their
    particular brand.

35
B. Industrial Advertising
  • Industrial executives have little confidence in
    advertising. They rely on this form of promotion
    merely out of fear that their competitors may
    benefit if they stop their advertising efforts.
    The task of the industrial advertiser is
    complicated by the multiple buying influence
    characteristics like, the derived demand, etc.
    The objectives vary according to the firm and the
    situation.,

36
A. Retail Advertising
  • This may be defined as covering all advertising
    by the stores that sell goods directly to the
    consuming public. It includes, also advertising
    by establishments that sell services to the
    public, such as beauty shops, petrol pumps and
    banks.

37
B. Wholesale Advertising
  • Wholesalers are, generally, not advertising
    minded, either for themselves or for their
    suppliers. They would benefit from adopting some
    of the image-making techniques used by retailers
    the need for developing an overall promotional
    strategy. They also need to make a greater use of
    supplier promotion materials and programmes in a
    way advantageous to them.

38
A. National advertising
  • It is practiced by many firms in our country. It
    encourages the consumer to buy their product
    wherever they are sold. Most national
    advertisements concentrate on the overall image
    and attraction of the product. The famous
    national advertisers are
  • Hindustan Levers
  • DCM
  • ITC
  • Jay Engineering
  • TISCO

39
B. Regional advertising
  • It is geographical alternative for organizations.
    Regional advertising is placing ads of any media
    within a specific geographic location to
    influence decision in one locality. A region may
    be defined in different geographic sizes or terms
    such as city, state, country, or continent.

40
C. Local advertising
  • It is generally done by retailers rather than
    manufacturers. These advertisements save the
    customer time and money by passing along specific
    information about products, prices, location, and
    so on. Retailer advertisements usually provide
    specific goods sales during weekends in various
    sectors.

41
7. Advertising According to Medium
  • The most common classification of advertising is
    by the medium used. For example TV, radio,
    magazine, outdoor, business periodical, newspaper
    and direct mail advertising.

42
ADVERTISING PLANNING FRAMEWORK
  • The advertising management is mainly concerned
    with planning and decision making. The
    advertising manager will be involved in the
    development, implementation, and overall
    management of an advertising plan.
  • The development of an advertising plan
    essentially requires the generation and
    specification of alternatives.

43
Planning Framework
  • Advertising planning and decision making depends
    on internal and external factors. Internal
    factors are situation analysis, the marketing
    program, and the advertising plan. The three legs
    of advertising planning concern are the
  • Objective setting and target market
    identification,
  • Message strategy and tactics, and
  • Media strategy and tactics.

44
Internal factors
  • Situation Analysis
  • It involves an analysis of all important factors
    operating in a particular situation. This means
    that new research studies will be undertaken on
    company history and experience.
  • 2. Consumer and Market Analysis
  • Situation analysis begins by looking at the
    aggregate market for the product, service, or
    cause being advertised, the size of the market,
    its growth rate, seasonality, geographical
    distribution.

45
Cont..
  • Nature of demand
  • Extent of demand
  • Name of competition
  • Environmental climate
  • Stage of product life cycle
  • Financial resources of the firm

46
Cont..
  • 3. Competitive Analysis
  • Advertising planning and decision making are
    affected by competition and the competitive
    situation facing the advertiser. Competition is
    such a pervasive factor that it will occur as a
    consideration in all phases of the advertising
    planning and decision making process.

47
External Factors
  • The external factors in the planning framework
    are environmental, social and legal
    considerations. To a considerable extent, these
    exist as constraints on the development of an
    advertising plan and decision making.
  • In developing specific advertisement, there are
    certain legal constraints that must be
    considered. Deceptive advertising is forbidden by
    law.

48
Advertiser and the Advertising Agency interface
  • From a situation analysis point of view, the
    advertiser needs to know what kinds of
    facilitating agencies exist and the nature of the
    services they provide. From a planning point of
    view much local advertising is done without the
    services of an advertising agency or a research
    supplier. On the other hand, a national
    advertiser may have under contract many different
    agencies and research suppliers, each serving one
    or more brands in a product line. Many
    advertising decisions involve choosing
    facilitating agency alternatives.
  • What advertising agency should be chosen?
  • What media should be used?
  • What copy test supplier will be best for our
    particular situation?

49
Advertising Industry
  • The advertising industry consists of three
    principal groups
  • (a) Sponsors
  • (b) Media and
  • (c) Advertising agencies or advertising
    departments.

50
STRUCTURE OF THE ADVERTISING INDUSTRY
51
What is an Advertising Agency?
  • An Advertising agency is an independent firm
    formed for the purpose of rendering specialized
    services in advertising, such as preparing copy
    and layouts for advertisement and getting the
    advertisement out through suitable media.
  • It also undertakes performing services such as
    conducting market research, preparing
    sales-promotional materials, counselling on
    public relations, preparing and distributing
    public relations materials and message.

52
Advertising Agency
  • According to American Advertising Agencies
    Association (A. A. A. A.) an advertising agency
    is
  • a. An independent business organisation,
  • b. Composed of creative and business people,
  • c. Who develop, prepare and place advertising
    on advertising media,
  • d. For sellers seeking to find customers for
    their goods and services.

53
History of Advertising Agencies
  • 1. Period of Early Growth (1841-1865)
  • 2. The Wholesaling Period (1865-1880)
  • 3. Semi-Service Period (1880-1917)
  • 4. Service Period (1917-1988)

54
Advertising Agencies in India
  • Rajiv Menon Productions (Horlicks, Fanta)
  • J.S. Films (Preethi Chef Pro Mixie,
    FairLovely, Milo)
  • OM (TVSE Printers, Chik Shampoo, Meera,
    Sify, Nippo)
  • R.K. Swamy BBDO Advertising (Tata Indicom)
  • Rubikon (Prince Jewellery)
  • TWC (Jeyachandran, Saravana Gold, Pothys, G
    H Gold Winner Oil)
  • Marlia Ads (Aachi Masala Brand, Amman TRY)
  • Maitri Ads (Reliance Communication)

55
Selecting an Agency
  • While selecting an advertising agency, the
    importance of compatibility should be borne in
    mind. An agency takes a long time to grasp the
    problems and accumulate the facts that are
    necessary for the smooth functioning of a client.
  • Though this investment period is long, it pays
    rich dividends. Therefore, an agency should not
    be frequently changed. Here are some points that
    can help the advertiser to

56
(i) Choose an agency
  • The agency should be able to think
    independently on various problems.
  • The agency should have experience in selling
    goods and ideas. It should be able to bring in
    more results than anticipated.
  • The company should be financially sound and
    should be able to cover both local and national
    advertising campaigns.
  • The size of the agency should not be seriously
    taken into account. A big agency is not
    necessarily a better than a small agency.

57
Cont
  • The agency should not be one that hesitates to
    correct the advertiser if it feels that he is
    wrong.
  • The agency should be able to use both research
    and brains to solve problems.

58
Advantage of Using Agencies
  • 1. The marketer gains a number of benefits by
    employing agencies. An agency generally has an
    invaluable experience in dealing with various
    advertising and marketing issues.
  • 2. An agency may employ specialists in the
    various areas of preparation and implementation
    of advertising plans and strategies.
  • 3. A related point is that the company can
    benefit from the agencys experience with many
    other products and clients.

59
Cont..
  • 4. They bring objective and unbiased viewpoints
    to the solution of advertising and other
    marketing problems.
  • 5. The discounts that the media offer to agencies
    are also available to advertisers. This is a
    strong stimulus to them to use an agency, for the
    media cost is not much affected thereby.
  • 6. Another advantage is that agency feels a
    greater pressure than the companys own
    department to produce effective results.

60
Setting Advertising Objectives
  • Without objectives, it is nearly impossible to
    guide and control decision making. The challenge
    today is to bring effective management to the
    advertising process in such a way as to provide
    simulation as well as direction to the creative
    effort. The solution is the meaningful objective.
  • Advertising objectives, like organizational
    objectives, should be operational. They should
    be effective communication tools, providing a
    line between strategic and tactical decisions. A
    convenient and enticing advertising objective is
    immediate sales or market share.

61
ADVERTISING BUDGET
  • The advertising budget or appropriation is the
    total amount of money which a marketer allocates
    for advertising for a specific time period.
  • The major part of the advertising budget is
    provided for buying space and time in media.
  • The expenses incurred for developing and
    preparing advertisements are included in the
    advertisement budget. The salaries of
    advertising staff, commission to agents, research
    expenses etc. are administrative expenses.

62
Advertising Budget Allocation by Rule of Thumb
  • 1. Profit Maximization
  • 2. Advertising as a Percentage of Sales
  • 3. The Objective and Task Approach
  • 4. Competitive Parity Approach
  • 5. All the Organization can afford approach
  • 6. By Using Judgment

63
1. Profit Maximization
  • The best method for determining advertising
    expenditure is to identify a relationship between
    the amount spent on advertising and profits, and
    to spend that amount of money which maximizes the
    net profits. Since the effects of advertising may
    be reflected in future sales too, the advertiser
    maximizes the present value of all future profits
    at an appropriate rate.

64
2. Advertising as a Percentage of Sales
  • Advertising Allocation Rs. Sales
  • A pre-determined percentage of the firms past
    sales revenue (or projected sales revenue) is
    allocated to advertising.

65
3. The Objective and Task Approach
  • The most desirable method is the objective and
    task approach. It is goal oriented. The firm
    agrees on a set of marketing objectives after
    intensive market research. The costs of
    advertising are then calculated.
  • The organization must define the goals the
    promotional mix is to accomplish. For example, a
    5 per cent increase in market share, or a 10 per
    cent rise in gross sales, or a 3 per cent
    addition to net profit, or more likely, a
    combination of several items.

66
4. Competitive Parity Approach
  • This approach ties its budget to the rupees or
    percentage of sales expended by its competitions.
    This approach tries to match the competitors
    outlays and meet competition either on absolute
    or relative basis. It involves an estimate of
    industry advertising for the period and the
    allocation of an amount that equal to its market
    share in the industry.

67
5. All the Organization can afford approach
  • It involves the income statement and the balance
    sheet. It asks how much is available to the firm.
    The decisions based wholly on them ignore the
    requirements of the advertising.

68
6. By Using Judgment
  • This method relays upon the judgment of
    experienced managers. Over the years, some of
    these individuals develop a feel for the market
    that permits them to arrive at appropriate
    decisions, given the organizations objectives
    and limitations.
  • It is a vital input for the determination of the
    budget. When the management uses other methods,
    it should temper them with the judgmental
    evaluations made by experienced managers.
    Judgment is subject to error and bias.

69
Media Brief
  • Each medium has its merits and its handicaps. The
    suitability and profitability of any one type
    varies from manufacturer to manufacturer and may
    vary for a single manufacturer too.
  • Changes are the only rule. The buyers constitute
    his market they are to receive his advertising
    coverage consists of the advertisers reaching
    the maximum number of these buyers include both
    his current and prospective customers.

70
Difficulties in Selection of Media Types
  • 1. Audience Measurement
  • 2. Difficulty of Cost Comparisons
  • 3. Reliance on a Particular type of Medium
  • a. Availability
  • b. Selectivity
  • c. Competition

71
Selection of Individual Media
  • 1. The Advertising Schedule
  • 2. Duplication
  • 3. Frequency
  • 4. Size of advertisement
  • 5. Colour
  • 6. Re-run on Advertisement
  • 7. Timing
  • 8. Positioning

72
Case Study
  • New Trend in Advertising in India
  • Booming markets and high consumer willingness to
    spend have made companies spend lavishly on
    advertising and brand-building. Therefore, the
    Indian advertising industry is upbeat.
  • Since many corporates are looking at accelerating
    their businesses at a much higher pace through
    both organic and inorganic means, the ad spends
    are expected to move up to address their
    aggressive pace and pitch. Considering the
    tremendous bullishness in the market, companies
    want to spend money on advertising for various
    reasons. While some of them want to connect with
    their target audience due to their higher
    spending abilities, there is a new breed of
    companies which want to be visible as they have
    an IPO in the offing. And these companies are
    typically non-traditional advertisers. They could
    be even from sectors such as infrastructure which
    want to advertise because they have plans for
    IPOs.

73
  • New increase in corporate advertising campaigns
    is also expected, which would contribute
    substantially to the advertising industry
    revenues. Aditya Birla Group and the Tata group
    have already invested in lavish campaigns. The
    coming months would see more corporate campaigns.
  • New advertising media beyond TV and print With
    digital and mobile telephony registering huge
    growth figures, advertisers would be allocating
    huge spends to digital advertising this year. It
    does not mean that digital will eat into the
    shares of TV and print. Digital spends is still
    far away from being on par with the print and TV
    spends for at least another 10 years.

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  • The other segment which is expected to draw
    considerable attention this year is
    below-the-line communication, such as out-of-home
    advertising, public relations and sponsored
    activities. BTL activities are expected to gain
    prominence but will not replace the 30-second TVC
    (TV commercials) in India as yet. The dominance
    of print and TV will continue for the next few
    years. However, over the next five years, there
    will be greater interdependence of media, not
    disintegration of media. That will be the new
    phenomenon.
  • Most channels are coming up with methodical
    approaches to capitalize on revenue from
    in-program product placements. The contribution
    of product placement to the overall revenue of
    the industry is likely to go up by six to nine
    percent this year.

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  • Non-traditional advertisers-While the FMCG
    companies have traditionally been the highest
    spenders, the industry expects to see other
    categories such as retail, banks, financial
    products, automobiles and travel and leisure
    increasing their advertising spends substantially
    this year. While automobiles, white and brown
    goods, financial services sector, technology and
    IT and mobile telephony will clearly be the
    largest spenders this year, FMCG spends may not
    go up further as FMCG brands will be investing
    heavily in distribution and market expansion
    through outlets in smaller towns where there is a
    significant consumer boom.

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  • But it is the retail sector which is going to
    take the cake in terms of ad spends this year.
    Brand surround will become more important, with
    customer events offering new ways for brands to
    connect with consumers. The opening of malls and
    supermarkets across big and small cities will
    offer new ways for old brands to connect with
    consumers. Given the apparent growth in retail,
    the will be a large focus on engaging customers
    within the retail premises. Hence, there will be
    a large focus on research into consumer insights
    as well as developing programs to capture
    consumer interest at the store level.

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  • Questions
  • 1. Do you think the increasing independence and
    control, consumers gain through new technologies
    like the internet, digital advertising, cell
    phones will make advertising and product branding
    less important? Explain.
  • 2. As cable-TV channels continue to proliferate
    and the TV-viewing audience becomes ever more
    fragmented, how would you expect the advertising
    industry to be affected?

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UNIT - 2
  • Copy Decisions Visualizations of Ad Layout
    Elements of Ad Copy and Creation Principles of
    Verbal Versus Visual thinkers, Styles and Stages
    in Advertising Copy Creation Copy (Pre)
    Testing Methods and Measurements.

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Advertisement Layout
  • The layout of an advertisement consists of its
    overall structure or the way in which the various
    elements are positioned with regard to one
    another.
  • Layout is the arrangement which assigns
    positions to each unit in the advertisement.
  • It is a plan, a diagram, a blue-print which
    differs from the earlier visualizations in that
    it is more specific, more complete, more polished
    and sound.
  • It displays the exact visualisation of what the
    decided advertisement should contain.

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Advertisement Layout
  • A complete and finalised advertisement is the
    combination of a number of units such as
    headline, sub-headlines, text-matter, slogan,
    identification mark, the white space, decorations
    and the border including the illustration.
  • The layout is a visual expression of the ideas
    of the creator of an advertisement.
  • The visual composition of an advertisement is
    the layout. It is the working drawing or the
    blue-print for an advertisement.

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Functions of Layout
  • 1. It organizes all the Elements
  • 2. It brings together Copy writer and the Art
    director
  • 3. It enables the Advertiser to visualize his
    future Advertisement
  • 4. It acts as a guide to the copy specialist

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Design and Layout
  • The word design means an arrangement of the
    parts in one sense. The other meaning is that it
    stands for the plan behind the arrangement
    providing a desired structure.
  • Designing a good layout means arranging the parts
    of an advertisement to attain certain goals.

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Principles of Good Design and Layout
  • 1. Balance
  • 2. Proportion
  • 3. Contrast and Emphasis
  • 4. Eye Movement
  • 5. Unity or Harmony

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Elements of a layout
  • 1. Background 9. Name Plate (logo)
  • 2. Border 10. Price
  • 3. Caption 11. Product
  • 4. Coupon 12. Slogan
  • 5. Decoration 13. Space
  • 6. Heading 14. Sub-heading
  • 7. Illustration 15. Text
  • 8. Mascot 16. Trade Mark

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CREATIVITY IN ADVERTISING
  • The success of advertising depends to a great
    extent on the quality of the message or copy of
    advertisement rather than the money spent on
    advertising.
  • Most of the advertisers believe that the
    message in advertisement copy must attract the
    attention and interest of the consumer if buying
    is to result.
  • The conventional theory of advertising includes
    the concept of AIDA (Attention, Interest, Desire
    and Action).

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CREATIVITY IN ADVERTISING
  • An artiste, writer, poet, novelists, play
    writer takes well known ideas, words and phrases
    and relates them in a fresh, often brilliant
    manner while preparing an advertising copy.
  • The advertising copy writer writes with a
    purpose to achieve clients objectives to express
    features or attributes of particular products and
    services, presented in terms of consumer
    benefits.
  • Thus advertising messages should present
    merchandise in ways that interest people in
    buying.

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Activities Comprising Creative Design task Process
  • 1. Advertising objectives
  • 2. Information to creative People
  • 3. Target Audience
  • 4. Copy and Layout Design
  • 5. Credibility or Back-up Claim
  • 6. Copy Layout Tests
  • 7. Allocation to Creative Task
  • 8. Creative Strategy and Tactics

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QUALITIES OF ADVERTISEMENT COPY
  • 1. Attention value,
  • 2. Suggestive value,
  • 3. Memorising value,
  • 4. Conviction value,
  • 5. Sentimental appeal value,
  • 6. Education value,
  • 7. Instinctive value,

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  • Attention Value
  • a. Use of Pictures
  • b. Use of Display Type or Heading
  • c. Boarder etc
  • d. Price Quotation
  • e. Reply Coupons

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CLASSIFICATION OF COPY
  • 1. Descriptive Copy 11. Suggestive Copy
  • 2. Scientific Copy 12. Expository Copy
  • 3. Institutional Copy 13. Questioning copy
  • 4. Topical Copy
  • 5. Reason why Copy
  • 6. Human Interest Copy
  • 7. Colloquial copy or Conversational Copy
  • 8. Personality Copy
  • 9. Prestige Copy
  • 10. Educational Copy

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  • 6. Human Interest Copy
  • a. Humorous Copy
  • b. Fear Copy
  • c. Story Copy

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Measuring Advertising Effectiveness
  • All advertising efforts are directed mainly
    towards the achievement of business, marketing
    and advertising objectives i.e., to increase the
    sales turnover and thus to market the maximum
    profit.
  • The advertiser spends lakhs of rupees into this
    advertising activity. In the background of all
    these efforts, is an attempt to attract the
    customer towards the product through advertising.

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Measuring Advertising Effectiveness
  • It has achieved the desired results i.e.
    desired sales profitability or results in terms
    the change in customer behaviour in favour of
    the companys product which will naturally,
    affect the future sale of the product.
  • In order to measure the effectiveness of
    advertising copy, two types of tests i.e.,
    pretests and post tests can be undertaken.

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Importance of measuring the Effectiveness of
Advertising
  • 1. It acts as a Safety measure
  • 2. Provides feed back for remedial measures
  • 3. Avoids possible failure
  • 4. To justify the Investment in Advertising
  • 5. To know the communication Effect
  • 6. Compare two markets

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METHODS OF MEASURING ADVERTISING EFFECTIVENESS
  • Direct Measures of Advertising Effectiveness
  • (a) Historical Sales Method
  • (b) Experimental Control
  • 2. Indirect Measures
  • (a) Exposure to Advertisement
  • (b) Attention or Recall of Advertising Message
    Content
  • (c) Brand Awareness
  • (d) Comprehension
  • (e) Attitude Change
  • (f) Action

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Copy Testing
  • Copy testing is a tool involving a procedure
    where the effectiveness of an advertisement is
    measured before it appears in its final form,
    during and after its exposure to the audience to
    determine whether and to what extent, it has
    accomplished its assigned task. In this way, the
    copy testing is a method used to control the
    effectiveness of future advertising.

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Copy Testing
  • It addresses the following questions
  • (a) Will a proposed copy theme be effective at
    achieving advertising objectives?
  • (b) Does the set of advertisings that makes up an
    advertising campaign create the Desired interest
    level and image? And
  • (c) Will an individual advertisement attract the
    attention of the audience?

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Types of Tests
  • 1. Pre-test methods
  • 2. Post-test methods
  • 3. Concurrent methods

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1. Pre-test methods
  • Pre-test method refers to testing the
    potentiality of a message or copy before printing
    or broadcasting. It is useful because the
    concepts in advertising may appear to be simple
    and effective to the advertiser or advertising to
    be simple and effective to the advertiser or
    advertising agency.
  • All the elements in the advertising copy requires
    careful pre-testing to see that the matter it
    intends to be conveyed has been really conveyed,
    prevention is better than care.

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1. Pre-test methods
  • a. Check list method
  • b. Consumer Jury method
  • c. Sales Area Test
  • d. Questionnaire
  • e. Recall test
  • f. Reaction test
  • g. Readability test
  • h. Eye-movement test

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2. Post-test methods
  • 1. Recognition Test
  • 2. Recall or Impact Test
  • 3. Psychological Analysis

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3. Concurrent Methods
  • 1. Consumer diaries
  • 2. co-incidental surveys and
  • 3. Electronic devices.

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  • UNIT 3
  • Media Planning and Selection Concepts of Reach
    Frequency, Continuity and Selectivity Measures
    of Media Cost Efficiency Media
    (Readership/Viewer ship) Research.
  • The Internet as an Advertising Medium Tracking
    Website Visits, Page Views, Hits and Click Stream
    Analysis, Permission Marketing and Privacy,
    Ethical Concerns.

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MEDIA
  • Advertising message goes to the target audience
    through media or the communication channels.
  • The front line media are newspapers, TV,
    direct mail, radio, magazines, business/trade
    publications and outdoor advertising.

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Types of Media
  • TYPES
  • Indoor Outdoor Directive Display
  • 1.Press 1.Posters 1.Envelope 1.Display
  • 2.Radio 2.Painted Display 2.Board Sides
    2.Showrooms
  • 3.Television 3.Travelling/Transit 3.Booklet
    3.Exibilitions
  • Catalogs Trade Fairs
  • 4.Film 4.Sky Writing 4.Sales Letter
  • 5.Video 5.Electric Sign 5.Gift Novelties
  • 6.Internet

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Media Planning
  • The two basic tasks of marketing communications
    are message creation and message dissemination.
    Media Planning supports message dissemination.
    Media planning helps you determine which media to
    use--be it television programs, newspapers,
    bus-stop posters, in-store displays, banner ads
    on the Web, or a flyer on Facebook.
  • It also tells you when and where to use media in
    order to reach your desired audience. Simply put,
    media planning refers to the process of selecting
    media time and space to disseminate advertising
    messages in order to accomplish marketing
    objectives.

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Media Objectives
  • How is a media plan developed? Media planning is
    a four-step process which consists of
  • setting media objectives in light of marketing
    and advertising objectives,
  • 2) developing a media strategy for implementing
    media objectives,
  • 3) designing media tactics for realizing media
    strategy, and
  • 4) proposing procedures for evaluating the
    effectiveness of the media plan.           

108
MEDIA PLANNING
  • Media Planning includes all decisions regarding
    the time and place of advertising, in addition to
    the selection of the media.
  • A media plan thus outlines how advertising time
    and space in various media will be used to
    achieve the marketing objectives of the company
    through advertising.

109
MEDIA SELECTION
  • It refers to the selection of a specific vehicle
    or a combination of vehicles, or more broadly the
    selection of a specific medium or a combination
    of media (media mix). Thus, for the launch of
    a new detergent it may be introduced by cinema
    advertising and also on television, with the
    press and outdoor media being selected as
    reminder media.

110
MEDIA STRATEGY
  • Media Strategy is a part of the marketing
    strategy hence the media plan is part of the
    overall market plan, and media selection is the
    final stage in the process of the promotion of a
    product through advertising.
  • As we have often remarked, advertising is only
    one element in the marketing mix the primary
    objective is marketing the product, and
    advertising is just the means of creating a need
    for the product.

111
MEDIA RESEARCH
  • Media Research involves the collection of data
    about the various advertising media, surveying
    consumers on their media preferences, and
    carrying out primary and secondary research on
    effectiveness of each medium for selling
    different types of products.

112
STEPS INVOLVED IN ADVERTISING PLANNING
  • 1. Target Market Study
  • a. Demographic data
  • b. Psychographic data
  • c. Consumer profile
  • d. Media profile
  • 2. Deciding the Advertisement Message
  • 3. Matching Media and Target Group
  • 4. Media Selection
  • 5. The Media Schedule

113
MEDIA REACH FREQUENCY
  • Media planners should plan the optimal use of
    media budget while deciding about the reach,
    frequency, and the number of advertising cycles
    affordable for the year.
  • We have seen in the hierarchy models that the
    first stage requires awareness of the product or
    brand.
  • Obviously, if more people are aware of the
    product, there is more likelihood that many of
    them will move to the later stages and finally to
    purchase action.
  • Creating awareness among audience requires reach
    which is nothing but exposing potential customers
    to the advertising message.

114
MEDIA REACH FREQUENCY
  • So far, there is no known way to determine how
    much reach is required to achieve desired levels
    of awareness, attitude change, or purchase
    intention.
  • Also, there is no certainty that an advertisement
    placed in a particular media vehicle will
    actually reach the target audience.
  • For example, if an advertiser buys 30 or 60
    seconds of TV time during a certain programme,
    everyone who is tuned to this programme may not
    necessarily see the commercial for a number of
    reasons.

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MEDIA REACH FREQUENCY
  • Frequency Total exposures / Reach
  • Example
  • Survey sample size 10 households with TV
  • Survey period 4 weeks
  • TV programme P

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117
  • Total Exposures 20
  • Households that watched TV 8
  • programme (reach)
  • Frequency Total exposures / Reach
  • 20 / 8
  • 2.5

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IMPORTANT FACTORS IN DETERMINING FREQUENCY LEVELS
  • Marketing Factors
  • Message Factors
  • Media Factors

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1. Marketing Factors
  • a. Brand history
  • b. Brand share
  • c. Brand Loyalty
  • d. Purchase cycles
  • e. Usage cycle
  • f. Competitive share of voice
  • g. Target group

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2. Message Factors
  • a. Message complexity
  • b. Message uniqueness
  • c. New campaigns
  • d. Creation of image
  • e. Message variation

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3. Media Factors
  • a. Clutter
  • b. Attentiveness
  • c. Number of media used

122
FACTORS GOVERNING THE CHOICE OF MEDIA
  • Availability of Funds
  • Nature of Product
  • Geographical Coverage
  • Demographic factors

123
Audience Research
  • Identifying the audience for a magazine or
    newspaper, or determining who watches television
    at a given time, is a specialized form of market
    research, often conducted on behalf of media
    owners.
  • Press figures are slightly complicated by the
    fact that there are two measures readership
    (total number of readers of a publication, no
    matter where they read it), and circulation (the
    number of copies actually sold, which is mostly
    independently validated).

124
ETHICS IN ADVERTISING
  • The world of advertising has its own set of
    stories about the good and the bad, truth and
    dishonesty. This unit focuses on truth and
    deception in advertising and on the ethical
    dilemmas of those who produce advertising.

125
ETHICS IN ADVERTISING
  • standards or moral values which dictate what is
    right and what is wrong, or good or bad, which
    are
  • culturally-based and formed based upon
    societys expectations
  • vary by person, and by situation
  • everyone develops their own code of ethics

126
WHAT IS DECEPTIVE ADVERTISING
  • claiming that a product can do something that
    it cannot is a clear-cut case of deception.
  • this is the picture by NIKE showing the
    strength of their food ball but in reality
    neither the footballs are so huge nor so
    powerful.
  • it is ethically wrong to show something that
    doesnt exist.

127
INTERNET MARKETING
  • The fastest growing media outlet for advertising
    is the Internet. Compared to spending in other
    media, the rate of spending for Internet
    advertising is experiencing tremendous growth.
    However, total spending for Internet advertising
    remains relatively small compared to other media.
  • Yet, while Internet advertising is still a small
    player, its influence continues to expand and
    each year more major marketers shift a larger
    portion of their promotional budget to this
    medium.

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Internet as an Advertising Medium
  • There are two primary ways to advertise on the
    Internet
  • Register your Web site with major search engines
    so Internet visitors can find you.
  • Place a banner ad for your site on another Web
    site that has a lot of traffic (viewers). Banner
    ads allow viewers to visit your site when they
    click on the banner.

129
  • The Internet offers many advertising options with
    messages delivered through
  • - Website Advertising
  • - Email Advertising

130
Website Advertising
  • Advertising tied to a users visit to a website
    accounts
  • for the largest spending on Internet advertising.

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Email Advertising
  • Using email to deliver an advertisement affords
    marketers the advantage of low distribution cost
    and potentially high reach.
  • In situations where the marketer possesses a
    highly targeted list, response rates to email
    advertisements may be quite high.

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Advantages
  • Messages can be timely because editing the
    content is often easy and instantaneous.
  • Ads on the Internet can be interactive. You can
    request viewer feedback, take orders or answer
    questions instantly.
  • Ad banners can run with as much frequency as
    you choose. The Internet is constantly available.
  • Internet advertisers can potentially reach a
    global audience. Aside from language barriers,
    anyone at any location in the world can access
    information about your products or services.

133
PAGE VIEW
  • a page view (PV) or page impression is a
    request to load a single page of an Internet
    site.
  • On the World Wide Web a page request would
    result from a web surfer clicking on a link on
    another HTML page pointing to the page in
    question.
  • This should be contrasted with a hit, which
    refers to a request for a file from a web
    server. There may therefore be many hits per
    page view since a page can be made up of multiple
    files.

134
PAGE VIEW
  • these page views may be counted as part of web
    analytics. For the owner of the site this
    information can be useful to see if any change in
    the page (such as the information or the way it
    is presented) results in more visits.
  • if there are any advertisements on the page,
    the advertisers would also be interested in the
    number of page views to determine their expected
    revenue from the ads. For this reason it is a
    term that is used widely for internet based
    marketing and advertising.

135
PAGE HITS
  • a hit is a request to a web server for a file
    (web page, image, JavaScript, Cascading Style
    Sheet, etc.).
  • when a web page is uploaded from a server the
    number of hits or page hits is equal to the
    number of files requested.
  • therefore, one page load does not always equal
    one hit because often pages are made up of other
    images and other files which stack up the number
    of hits counted.

136
PAGE HITS
  • because one page load does not equal one hit it
    is an inaccurate measure of a websites
    popularity or web traffic.
  • hits are useful when evaluating the
    requirements of your server, depending on the
    number and size of files which need to be
    transferred for one request.

137
TRACKING WEBSITE VISITORS
  • if you have a website or blog, collecting data
    on visitors to your site is extremely important.
    Whether you have a business or just develop
    websites or blogs as a hobby, data from your
    visitors can be extremely helpful in tweaking and
    fine-tuning your site.
  • the more data you can collect from visitors,
    the more productive and effective your content,
    campaigns and services can be. There are many
    ways to track website visitors. Some of the more
    popular include
  • Free website tracking software
  • Analytic software
  • Services that track and analyze data for you.

138
CLICK STREAM ANALYSIS
  • A Clickstream is the recording of what a computer
    user clicks on while Web browsing or using
    another software application.
  • As the user clicks anywhere in the webpage or
    application, the action is logged on a client or
    inside the Web server, as well as possibly the
    Web browser, routers, proxy servers, and ad
    servers.
  • Clickstream analysis is useful for web activity
    analysis, software testing, market research, and
    for analyzing employee productivity.

139
PERMISSION MARKETING
  • Permission marketing is a term coined by Seth
    Godin used in marketing in general and
    e-marketing specifically. The undesirable
    opposite of permission marketing is interruption
    marketing. Marketers obtain permission before
    advancing to the next step in the purchasing
    process.
  • For example, they ask permission to send email
    newsletters to prospective customers. It is
    mostly used by online marketers, notably email
    marketers and search marketers, as well as
    certain direct marketers who send a catalog in
    response to a request.

140
  • This form of marketing requires that the
    prospective customer has either obtained explicit
    permission to send their promotional message
    (e.g. an email or catalog request)or implicit
    permission (e.g. querying a search engine).

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UNIT 4
  • Ad Effectiveness Measuring Advertising
    Effectiveness Control of Advertising by
    Practitioners, Media and the Market. Advertising
    in the International Market Place. Advertising
    and Principles of Integrated Marketing
    Communication and Image Building.

142
MEASURING ADVERTISING EFFECTIVENESS
  • An unnecessarily large amount is sometimes
    spent without any reward. An improper display may
    tarnish the image of the product.
  • An advertising measurement is adopted both
    before and after an advertising campaign is
    launched.
  • After a campaign has been launched, it is
    essential to know how far the advertising plans,
    strategies and programmes are successful in
    achieving the objectives so that they may be
    modified and redesigned for better performance if
    needed.

143
OBJECTIVES OF MEASURING ADVERTISING EFFECTIVENESS
  • Some advertisers do not bother to measure
    advertising effectiveness. They expect that the
    sales will ultimately increase by reason of
    advertising.
  • But, recently, problems and difficulties have
    compelled them to measure advertising
    effectiveness. The producers also adopt a
    measuring device because they incur a sizeable
    amount of expenditure on advertising.
  • The effectiveness of media and message are also
    assessed for their use in future.

144
Cont
  • Only through the measuring of advertising
    effectiveness the success of a particular
    campaign can be known.
  • Various measuring techniques have been developed
    to measure effectiveness at every stage to
    isolate the effects of advertising from those of
    other promotional and marketing activities.
  • The copy, media and other advertising components
    have been tested. The factors like readership,
    consumer opinion, belief or disbelief, recall,
    attention, comprehension, attitude, etc are taken
    into consideration for measuring effectiveness.

145
MEASURING SALES AND COMMUNICATION PERFORMANCE
  • Two important aspects of measurements, viz.,
    sales and communication objectives are measured
    to judge the advertising effectiveness.
  • 1. Sales Measurement
  • 2. Measurement of Communication Effects

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WHEN TO MEASURE?
  • Pre-testing is adopted to measure the
    effectiveness and accuracy of an advertising plan
    before its implementation.
  • Post-testing is done after the advertising
    activities have been completed to examine the
    effectiveness of these advertising activities.
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