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ADVERTISING AND PROMOTION

MANAGEMENT [APM]
Birat Shrestha
BBA, KUSOM
August 23, 2016

1. Introduction
Marketing and
Integrated Marketing Communication
IMC

MARKETING
Market segmentation and targeting
Need identification of targeted segments
Process of planning, pricing, distributing, promoting
of goods, services, and ideas
Product/service offering as per the needs of segments
Customer satisfaction
Communicating the offerings
Marketing Communication (Advertising)
Product/brand positioning in selected segments
Promoting the product, brand, or positioning

INTEGRATED MARKETING COMMUNICATION

One voice Communication

A way to promote a product using various methods


Reaching the customer from every angle with the same message
Coordinating between various marketing communication forms
Creating the maximum communication impact

Integrated Communication

Creating a balance between long term brand image & short term
sales

Marketing Communication Process

GENERAL COMMUNICATION SYSTEM

Noise
Source

Encoding

Message

Channel

Noise

Feedback

Decoding

Receiver

COMMUNICATION SYSTEM

Source

Company
Brand
Spokesperson

Channel
Electronic
TV, Radio

Print
Press Ads

Outdoor

Message

Content
Creative strategy
Way of execution
Outdoor

Hoarding boards, events

Receiver
Target audience
Demography, psychography, social

COMMUNICATION PROCESS IN ADVERTISING


(ORGANIZED FORM OF COMMUNICATION FORM)
Stern model of advertising communication process
(Barbara Stern, Rutgers University)
Source

Message

Sponsor

Receiver
Implied consumers

Within the text of advertisement

Author
Persona

Literary form
1. Autobiography
2. Narrative
3. Drama

Sponsorial consumers

Actual consumers

Feedback

ADVERTISING COMMUNICATION SYSTEM

Source Dimension
Sponsor company/brand
Author copywriter, director, creative team of Ad agency
Persona Voice over

Message Dimension
Autobiographical message I tell a story about myself to you
Narrative message third person tells a story about other to an imaginary
audience
Drama message the characters act out events in front of imagined empathic
audience

Receiver Dimension
Implied consumers imagined by the ad creators to be an ideal consumers,
addressed by the persona & are a part of the drama
Sponsorial consumers gatekeepers at sponsor companys office, who decide if
this Ad message is going to go to persuade the real consumers.
Actual consumers targeted consumers to whom the message is meant

Noise - other competing advertising messages


Feedback & Interactivity redeemed coupons, inquiries, visits, sales

COMMUNICATION/PROMOTION MIX

Advertising
Sales Promotion
Personal Selling
Public Relation
Publicity

ADVERTISING
Advertising is the structured and composed
non-personal communication of information,
usually paid for and usually persuasive in nature,
about products (goods, services, and ideas) by
identified sponsors through various media

Mass communication
Impersonal communication
Sponsor identified
Paid in by the sponsor
Informing & aspiring activity
Media usage

SALES PROMOTION
Demand stimulating activity
Short run
Consumer promotion

Coupons
Sampling
Price Packs
Premiums & Gifts
Sweepstakes & Contests
Subsidized financing

Trade Promotion

Off invoice
Display schemes
Gifts & Frees
Slotting or facing allowances

PERSONNEL SELLING
Door to door selling
Touch & feel advantage
Tailor the communication
message
Product demonstration
and trial
More of convincing and
persuasion

PUBLIC RELATION
News Stories & Media Editorial Content
Event, Programs & Sports Marketing

Lux: Lux Miss Nepal


Sprite: Sprite Band Challenge
Amul: Amul Voice of India
Bourvita: Bournvita Quiz Contest
Coke: Sports
Shikhar: Music
Surya: Golf

Cause Related Marketing

SCBNL : Seeing is Believing


Lifebuoy: Scholarship
Rum Pum: Bravery award

PUBLIC RELATION
Press Releases/ Press Conferences
Product Placements/ Product Plugs

Coke: Call Kantipur


Ray-Ban Sunglasses: Top Gun movie
Audi Car: Transportation movie
Cars in James Bond movies
Nerolac, Exxon, Cadbury: Viruddh movie
Coke - Dhoom II

PUBLICITY

A form of Public Relation


It is not paid for
News and Articles
Word-of-Mouth
Greater credibility

PROMOTION MANAGEMENT

Advertising
Advertising and Publicity
Advertising and Personal Selling
Advertising and Sales Promotion
Advertising and Public Relations
Integrating Marketing Communication

Advertising
Publicity
Personal Selling
Sales Promotion
Public Relations

PROMOTION MANAGEMENT

Direct Marketing
Database
Events & Trade Shows
Package Graphics
Point Of Sale Materials
Poster
Shelf Talker
Dangler
Streamer
Collateral
Brochure
Catalogue

ADVERTISING AS A COMMUNICATION TOOL

Makes the product known


Xerox - copier
Red Label - whiskey
Honda - bike

Standard Chartered Bank VIB

VIPS formula

VIB (Visual Identity Band)


Visibility
Identity
Promise
Single-mindedness

ADVERTISING IN A COMMUNICATION ROLE

Simplicity

Easily understandable

Words, symbols, graphics, liners

Singapore girl - Singapore airlines


Three stripes - Adidas
Right swoosh - Nike
Yellow M arches - McDonalds
The real thing - Coke
Cowboy - Marlboro

Classification of Advertising

BY TARGET AUDIENCE
Consumer

advertising
Business/Industrial advertising
Trade Advertising (to obtain greater
distributions)
Professional Advertising (to convince
professional people, to recommend or
prescribe a product or a service, to buy and
use particular product or equipment)
Agricultural Advertising (agribusiness
products and equipments)

BY GEOGRAPHICAL AREA
Regional

advertising

National

advertising

International

advertising

BY MEDIUM
Print

advertising
Broadcast (electronic)
advertising
Alternative/Ambient Media
Out-of-home (outdoor)
advertising
Direct-mail advertising
Interactive advertising
Transportation advertising

BY PURPOSE
Product

advertising

Nonproduct

(corporate or institutional)

advertising
Commercial

advertising

Non-commercial
Action

advertising

advertising

Awareness

advertising

FUNCTIONS AND EFFECTS OF ADVERTISING


AS A MARKETING TOOL
To identify products and differentiate them from
others
To communicate information about the product, its
features and its place of sale
To induce consumers to try new products and to
suggest reuse
To stimulate the distribution of product
To increase product use
To build value, brand preference, and loyalty
To lower the overall cost of sales

FUNCTIONS OF ADVERTISING

Economic Function
Demand stimulation
Creates the customer
Product sales
Aspires for better living standard

Social Function
Product information
Product quality promise
Remind about the product
Social awareness

Psychological Function

Personality and self concept change


Belief, opinions and attitude change

CORPORATE ADVERTISING
The broad area of non-product
Advertising aimed specifically at
enhancing a companys image and
increasing lagging awareness.
It is promoting the companys desired
image

Public Relations Advertising


Institutional Advertising
Corporate Identity Advertising
Recruitment Advertising
Advocacy Advertising (to communicate
views on issues that affect businesses)
Advertorials

2. The Advertising Business

Agencies and Clients

THE ADVERTISING BUSINESS


ADVERTISER
(Client)

ADVERTISING
AGENCY

RESEARCH
AGENCY

MEDIA HOUSE

TARGET
CONSUMER/S

THE EVOLUTION OF ADVERTISING


(AS AN ECONOMIC TOOL)
1.

The Preindustrial Stage

2.

The Industrializing Stage

3.

The Industrial Stage

4.

The Post Industrial Stage

5.

The Global Interactive Age

1. THE PREINDUSTRIAL STAGE

The marketplace grew and became complex

Merchants hung carved signs and symbols

The Chinese invented paper and Europe has its first paper mill in 1275

Johannes Guntenberg invented printing press in Germany in 1440s


this allowed facts to be established, substantiated, recorded, and
transported
First formats of advertising posters, handbills, signs
The first Ad in English a handbill tacked in Church doors in London
announcing prayer book on sale
First newspaper Ad reward for 12 stolen horses
Ad announcing the availability of Stage Waggons to carry passengers
from Powles Hook Ferry to Philadelphia 1767
Benjamin Franklin, innovator of advertising art made more readable
by using larger headlines, changing fonts, and adding art

2. THE INDUSTRIALIZING STAGE

Industrial Revolution began in England mid 1700s and reached North


America by the early 1800s

Large companies increased their productivity through mass production

Growth of Advertising was fueled by mass consumption

The primary burden of marketing fell on wholesalers to arrange for the


products delivery to markets as manufacturers were into mass
productions
Volney B. Palmer set up advertising business in Philadelphia in 1841
contracted newspapers for large volumes of advertising space at discount
rates and resold the space to advertisers
The Advertisers prepared the Ads

In 1869, Francis Ayer formed an Ad agency in Philadelphia, named after


his father N.W. Ayer & Sons first agency to conduct market survey,
planning, creating, and executing complete Ad campaigns for mediacommissions

3. THE INDUSTRIAL STAGE

CONTD...

Started around the turn of the twentieth century and lasted well into 1970s

An industrial growth of consumer packaged goods

The manufacturer changed their focus from production orientation to sales


orientation as wholesalers were playing by changing manufacturers that
hurt the profit of producers
The manufacturers developed new products and strengthened their salesforce, packaged and branded their products, and executed national brand
advertising Coca-Cola, Kellogs, Campbell, Wrigleys
Advertising reached the status of science Scientific Advertising by
copywriter Claude Hopkins at Albert Laskers agency, Lord & Thomas,
published in 1923
Radio became the primary means of mass communications
Due to great depression in 1929, there was consumer resistance to sales
that lead to cutting in corporate budget for an advertising industry to
improve effectiveness - it turned to research Daniel Starch, A.C. Nielsen,
George Gallup founded research group to study consumer attitude and
preferences

3. THE INDUSTRIAL STAGE

CONTD...

Brands sought to sell their own special qualities


Manufacturers followed the strategy of product
differentiation
USP (Unique Selling Proposition)
During the post-war prosperity of late 1940s and early
1950s, consumers tried to climb the social ladder by buying
more modern products
Advertising entered its golden era
A creative revolution ensued in which Ads focused on
product features that implied social acceptance, style,
luxury, and success
Advertising giants Leo Burnette, David Ogilvy, Bill
Bernbach built their agencies that changed the advertising
was planned and created

3. THE INDUSTRIAL STAGE

CONTD...

Companies turned to Market Segmentation


advertisers emphasis shifted from product
features to brand image or personality to align it
with the target segments Cadillac as an image
of success
Positioning Strategy proposed by Al Ries and
Jack Trout, acknowledged the importance of
product features, but insisted on the ranking of
brand in the minds of the consumers

Positioning strategy proved to be an effective way to


separate a particular brand from its competitors by
associating that brand with a particular set of customer
needs that ranked high on the consumers priority Avis
(Were only no. 2), VW (Think Small), 7UP (The Uncola)

4. THE POST INDUSTRIAL STAGE

During 1970s and 1980s, a new marketing term demarketing


appeared due to energy shortages advertisers asked people to use
less of the appliances advertising to slow demand
Demarketing was also used to stop the use of competitors product
and tobacco related products

TV was the hot medium more creative executions

There was the growth of sophisticated products

Marketing Warefare by Al Ries and Jack Trout was published in


1980s outlined four strategic positioning in the marketplace
defensive, offensive, flanking, and guerrila
Cosmetics industry aiming the me generation LOreal. Because
Im worth it
Affluent consumers were more concerned with the quality of their
lives
Shifts from sales promotion to building brand value advertising

5. THE GLOBAL INTERACTIVE AGE


The explosion of technology affected advertising
cable TV, satellite receivers
Transformation from mass media to a more
specialized narrowcasting medium
Video recorder
Computer technology
Database marketing
Social Media Marketing (SMM)

INVENTORS OF MODERN ADVERTISING


Benjamin Franklin (advertising art)
Albert Laskar
Stanley Resor (JWT)
Raymond Rubicam (Y&R)
Leo Burnett
Claude C. Hopkins
Bill Bernbach,
David Ogilvy (O&M)
John Caples (Copywriters)

FAMOUS AD AGENCIES
JWT
Ogilvy & Mather
Young & Rubicam
Dentsu
Saatchi & Saatchi
McCann Erickson
Leo Burnett
EURO RSCG
Publicis
BBDO
Wieden & Kennedy

THE ADVERTISER: CLIENTS

Private or public organization


Types of Advertisers

Local Advertisers

Regional & National Advertisers

Small scale advertisers, private citizens


Retail Ads, Institutional Ads, Classified Ads
Sale and clearance Ads
Focus on point of sales, gross sales, tactics, local customers
Short-term Ads to bring in customers
Consumer and industrial products
National media usage
Focus on brand market share
Long-term campaigns to build brand

Transnational Advertisers

Consumer and industrial products


Large scale
International media usage
Involved with MNCs

WHO ADVERTISES WHERE?

Consumer FMCG products - TV focus

Consumer durable - Print focus

Print focus
Local advertising

Retail advertiser: Store image

Detailed information

Retail advertiser: items & price listings

Brand information
Brand appeal

TVC focus
National advertising

Local organizations - Local advertising focus

BRAND MANAGER
Advertiser/ client representative
Link between the advertising company & ad agency
Handles certain brand/brands
Interacts with an account manager of an ad agency
Decides on the advertising plans for the brand
Brand plan
Brand positioning
Advertising Message
Advertising budget

TOP ADVERTISERS
(WITH 2 BILLION PLUS

Proctor & Gamble

Unilever

Sears Roebuck

Toyota

General Motors

Coke

Pepsico

Levis

Ford

AT&T

Nestle

Johnson & Johnson

Philip Morris

McDonalds

Eastman Kodak

Kellogg

ANNUAL ADVERTISING BUDGET)

THE ADVERTISING AGENCY


An advertising agency is an independent organization
of creative people and business people who specialize in
developing and preparing marketing and advertising
plans, advertisements and promotional tactics for the
clients and brands in their account

TOP AD AGENCIES
(WITH 18.4 BILLION PLUS OF ANNUAL BILLINGS)

WPP Group London


JWT
O&M

Interpublic Group, New York


McCann-Erickson
Lintas
Lowe
Omnicom Group, New York
BBDO

Dentsu Inc., Tokyo

Saatchi & Saatchi Co., London

Young & Rubicam, New York

Euro RSCG, France

Grey Advertising, New York

Foote, Cone & Belding, Chicago

Leo Burnett Co.

ROLE OF AN AD AGENCY
To stand as an independent entity
To act as an principal

towards client

towards media

Media investments
Media payments

To be in a middle position

to clients

Creative & media services

to media houses

Bulk business

Coordinating between client, research agency & media


To be the guardian for their brands

TYPES OF AD AGENCIES

Local agencies
Regional, National agencies and International agencies
Full service agencies
Advertising services (creating Ads, research, media planning)
Non advertising functions ( packaging, PR, sales promotion, exhibition)
General consumer agency & B2B agencies
Entrepreneurial agencies limited clients, full fledged service

Specialized Agencies

Creative boutiques

Pool of graphic designers, copywriters, cinematographers


Creative Artists Agency (CAA) took Coke campaigns from its long-time
agency McCann-Erickson Worldwide

Media Buying Services (Bulk media buying - space & time)


Interactive agencies (interactive website, direct-response,
sales promotions)

Functions of an Advertising Agency

ACCOUNT MANAGEMENT

Formulating & executing advertising plans

Representing agency to the client

Representing clients point of view to agency

Presenting concepts & brand plans to clients

Developing brand strategy

Meeting & presentation schedules with clients

Timely delivery of works

Completing the tasks within the given budget

Accepting & committing to new campaign projects

Account executives report to account supervisor or director

AEs should be meticulous, artistic, strategic, ethical, discreet

RESEARCH AND ACCOUNT PLANNING

Research the uses of the product and insights of consumers

Provide the wealth of product information to creatives

Media potential to reach the TG

Research bridges the gap between account management & creative

Studying consumer needs & desires through interactions & FGDs

Representing the view of the TG in the Ad campaign

Putting consumers at the center of advertisement account planning

Research leads to better account planning

Should be a good listener

CREATIVE CONCEPTS

Copywriters creates Ad copy


Headline and message
Visualizer generates concepts into something visible a sketch
Art Directors creates nonverbal messages
Graphic designers, artists
Color combination
Outfits colors
Font type selection
Visual symbols
Creative Director supervises copywriters & artists
Including the BIG IDEA into the campaign
Civic Nation - Honda

ADVERTISING PRODUCTION: PRINT AND BROADCAST

Production department once the Ad is approved

Print Ads

Type selection

Photo shoot or purchase

Illustrations

Work with painters, photographers, engravers, printers, illustrators

Broadcast Commercials

Approved script or storyboard

Works with actors, models, camera operators, production specialists


(studious, directors, editors)

Audiotape for radio jingle & film, videotape, DV for TVC

Dealers kit, direct mailing letters, media literature

MEDIA PLANNING AND BUYING

Media services

Media research

Media negotiation

Media bookings

Media scheduling

Media buying

Media verification

IMC and relationship marketing

Creative media buying

Press releases, articles, interviews, event coverage

ADDITIONAL FUNCTIONS OF ADVERTISING AGENCY

Traffic Management

Keeping up with monthly magazine deadline

Completing the Ad production works before the media deadlines

Smoothing the Ad releases of various brands in scheduled media

Additional Services

Advertising & non-advertising services

Sales promotion department dealer Ads, window display, pointof- purchase & dealer sales materials

Public relations & direct marketing

Web page and package designs

Agency Administration

Admin, accounting, human resource, data processing, purchasing,


financial analysis, legal issues, insurance

ORGANIZATION STRUCTURE OF AN AD AGENCY

Ad agency organizes its functions, operations, & personnel


according to types of accounts it serves, its size, & its geographic

scope

In small agencies an employee might require to wear many hats

The owner supervises operations, client services, & business

development

AEs do the creative works like copy writing & media buying

Art director can do the designs or designs purchased from a

free lancer

Medium & large agencies are structured in departmental or group


system

ORGANIZATION STRUCTURE OF AN AD AGENCY

In departmental system, the agency organizes its various


functions account services, creative services, marketing services,
media services, and administration into separate departments

In the group system, the agency is divided into a number of little


agencies or groups, where each group may serve one large account
or few smaller account.

Each group will consist of AE, copywriter, art director, media personnel,
headed by the account supervisor.

DEPARTMENT SYSTEM OF AN AD AGENCY


BOD/MD/ CEO

Account
Department

Creative
Department

Media
Department

Creative Director
Account
Director
- Account
Executives

-Copy
writer
-Visualizer
-Art
director

Media Director
-Media
Planner
-Media
Buyer

GROUP SYSTEM OF AN AD AGENCY


BOD/MD/ CEO

Client/Brand I

Client/Brand II

Account
Managemt Service

Client/Brand III

Creative Service

Client/Brand IV

Media Service

Advertising Agency Compensation

MEDIA COMMISSIONS

Started by space brokers & reps for newspaper

They saved media from sales & collections

Media allowed agencies to retain a 15 % media commission

Calculations

Rate card price of full page Ad - $100,000

Agency bills the client - $100,000

Agency send the media by retaining 15 % profit- $85,000 (media billing)

Agency profit - $15,000

In some cases media will pass on additional corporate discount to high


volume advertising client, passed through agency billing system.

The agency still will keep 15% agency discount

The agency provides design services out of this 15% commission, if the
business volume is huge

But agencies have started to charge separate creative fees

MARKUPS

In the process of creating an Ad, the agency buys a variety of services


like photography, printing & production, illustrations, paintings etc.

The agencies will add on 17.65% on the suppliers bill as a 15% margin
to the cost

Calculation

Photography cost - $8,500

Markup - $8,500 x 17.65% = $1,500

Total bill to client - $8,500 + $1,500 = $10,000

Markup - $10,000 x 15% = $1,500

In some cases agencies put up to 20% to 25% as a markup depending


upon business volume

FEES

Agencies have the role to solve the business problem of the client

Agencies charge clients with fees for brand plan, concept, design &
strategy recommendations

Agencies have started to work on the fee-commission combination

In the straight-fee or retainer method, agencies charge for all their


services, either by the hour, month

Sometimes agency is compensated on the incentive based system,


targeting certain goals.

THE IN-HOUSE AGENCY

Companies setting wholly owned in-house agency


To save money & tighten control over advertising
Management is involved in advertising in single-business
companies
Companies sacrifice more than they gain
Outside agencies offer greater versatility, creative, & talent
It is difficult to retain creative people due to monotonous
works
Loss of objectivity
Internal politics, liner thinking policymakers, &
harangues, from management Ads may become insipid
contemplation of corporate navels rather than relevant
messages the kiss of death
Agencies linked to one of the MNC (Lintas Hindustan
Lever)

CLIENT - AGENCY RELATIONSHIP: MAKING THE CLIENTS

Referrals
Existing & satisfied clients
Agency review consultants
Suppliers (art studios, web designers, research
agencies, printers, production houses, media houses)
Other agencies with conflicting/competing accounts
Presentations
Agency philosophy, experience, track record, personal,
works (Agency profile)
Speculative presentation what the agency can do
(capabilities, ideas, strategy for new campaign)
Account Reviews (to change the agency)

CLIENT - AGENCY RELATIONSHIP: MAKING THE CLIENTS

Networking and Community Relations


Being active and supportive in social, charity based
works, and sponsoring various entities like Ad clubs,
Ad association
Personal relationships

Soliciting and Advertising for New Business


Aggressive approach
Trade advertising, cold calls, letters, direct mail
Award recognition and publicity
Bringing in creative excellence and publicizing it in
the industry

STAGES IN CLIENT AGENCY RELATIONSHIP

The Pre-relationship Stage


Knowing the agency by its previous or ongoing Ad campaigns
Social contacts
Agency listings in the clients call list
The Development Stage
Honeymoon period; Peak of optimism
Both sides most forgiving; Rules of the relationship are
established
The personalities of the players come in
The agency creates its first work for the client
Agencys output is eagerly awaited & appreciated
Clients payment tendency is judged; First problems of the
relationship starts

STAGES IN CLIENT AGENCY RELATIONSHIP

Maintenance Stage
Length of relationship
Foote, Cone & Belding-Sunkist (100yrs)
JWT-Unilever
BBDO-Hammermill Paper
McCann-Erickson-Exxon (80 yrs)
Average relationship- 5 to 6 years
Termination Stage
If the agency handles competing or conflicting
account
Monotonous creative works

FACTORS AFFECTING CLIENT AGENCY RELATIONSHIP: 4 CS


1.

Chemistry

2.

Communication

3.

Poor communication
Misunderstanding about objective, strategies, roles, expectations
Poor advertising
Constant communication develops mutual good relationship

Conduct

4.

Personal rapport between the clients and agencys staff


Being with the clients to improve the chemistry

Unsatisfied agency performance


Agency not understanding the clients marketing problems
Client not giving clear, complete, accurate information

Change

Clients market position or policies may change


New management may arrive
Agency handling competing accounts or conflicting accounts
Changing staff members between agency & the client

SELECTION OF AN ADVERTISING AGENCY

Scope of the work

Credibility

Reputation (creative works, payments)


Registrations (legal entities, media, associations)
Past works; Team

Strengths

Designing, Concept & strategy development


Marketing plan development
Media planning & buying
Direct marketing; Market research; Event management

Core
Supportive

Rates

Design & artworks


Media discounts

3. Crafting Marketing and


Advertising Strategies

MARKETING PLAN
A marketing plan is a document that serves as a
guide for present and future marketing activities
of an organization
Marketing plan execution

1.
2.
3.

4.
5.
6.
7.

State organizations mission


Situation analysis and environmental scanning
Set marketing objectives with SMART criteria
Describe strategies that will be used to achieve
marketing objectives with specific target markets
Describe tactics or action program (marketing mix
4Ps) for implementing the marketing strategy
Explain how the effectiveness of the marketing
efforts will be evaluated
Propose a budget for marketing activities

EFFECT OF MARKETING PLAN ON ADVERTISING

Improves marketing and advertising programs

Dictates the role of advertising in the marketing mix

Enables better implementation, control, and continuity of


advertising programs

Ensures the most efficient allocation of advertising budget

Communicates the intended message to the targeted

consumers

MARKETING PLAN: TOP- DOWN MARKETING


Situation
Analysis
Marketing
Objectives
Marketing
Strategy
Marketing
Tactics

SITUATION ANALYSIS

Description of brand history, sales, market share,


profitability, competitive status, markets served, industry
growth rate, product sales trend, brand rankings

Organizations current situation factual statement

External market environment scanning economic,


social, technological, commercial, political

Prediction of future trends - trend spotting

SWOT analysis

MARKETING OBJECTIVES
Determination of marketing and advertising budget
Corporate objectives profit, ROI, net worth, reputation
Marketing objectives derived from corporate
objectives

Communication objectives (need-satisfying)


Take a broader view of the market - solve customer problems
(Revlon selling hope; Levis selling comfort)
Look through the customers eyes - what value are we offering to
our customers? customer needs-products
Creating favorable brand image, increased comprehension of
brand's attributes and benefits

Sales-target objectives
What are we planning to do for ourselves? specific, quantitative
goals
Sales volume product wise, market segment wise, category wise,
product line wise

MARKETING OBJECTIVES
A traditional model for setting objectives: DAGMAR its is
Defining Advertising Goals for Measured Advertising
Results - developed by Russel Colley
The DAGMAR system emphasized communication
objectives it believed that the proper way to evaluate a
campaign is to determine how well it communicates
information within a given budget, to the target audience
DAGMAR formulation of the objective for market planners

Awareness (knowing the brand exists)


Comprehension (knowing about the brands benefits or
attributes)
Conviction ( a favorable attitude toward the brand)
Action (purchasing and using the brand)

MARKETING STRATEGY

Selecting and defining the target market

Market segmentation gender, age, preference, education, first time or

second time buyers, geographical spread, personality, lifestyle


Defining the target market General Motors (college educated import owners
and intenders highly educated young adults) Mountain Dew (active young
people)

Positioning the product (Al Ries & Jack Trout; David Ogilvy of Ogilvy & Mather)
How do we want the consumers to perceive the brand
The place a brand occupies competitively in consumer minds

Lux: beauty; Lifebuoy: health; Dove: moisturizer


Mountain Dew Adventurous
Xerox from a copier to the document company

Positioning approaches (product attributes, price/quality,


use/application/ product class, product user, product competitor,
cultural symbol)

Determining the marketing mix 4 Ps (product, price, promotion,


place) with an IMC approach (sponsorship, PR, personal selling)

The choice depends upon target market, market position, and product life cycle

MARKETING TACTICS
Objective (where it wants to go), strategy (intended route),
tactics (the action plan or action program)
It is the short-term actions to be taken to execute the
strategy
It is a way devised to fulfill the marketing objectives
Its kind of by whom? and when? kind of things
A tactic is a singular, competitive mental angle
It is planning from the bottom-up
Advertisers can focus all the elements of the marketing mix
on the tactic
Advertising campaigns live in the world of marketing tactics
Tactics are the key to bottom up marketing

MARKETING PLAN: BOTTOM-UP MARKETING


Marketing
Results

Marketing
Strategy

Marketing
Tactics

MARKETING PLAN: BOTTOM-UP MARKETING

It is mainly planned by small companies

When day to day details come first and there is no time for formal planning

Develop a tactic into a strategy

Focus on indigenous tactic and develop a strategy (Jack Trout & Al Ries)

New discoveries are made with this reverse method

When Vicks discovered it put people to sleep, the startegy became to position
NyQuil as a nighttime cold remedy

A home delivery tactic of pizza to a customer who could not collect it became the
strategy of Dominos

RELATIONSHIP MARKETING
Transactional to relationship marketing
Market driven conception managing strategic
partnership
Delivering value perceived benefits
The importance of relationships

The cost of lost customers huge loss

The cost of acquiring new customers high

Life Time Customer Value (LTCV) profit security


Defensive marketing costs less than offensive marketing

The value of loyal customers customer retention

Customers relationship with the brand


(Classic Coke to New Coke to Classic Coke issue )

LEVEL OF RELATIONSHIP

Basic transactional relationship (the company sells the


product but does not follow-up)
Reactive relationship (the company sell the product and
encourages customers to call if they encounter any
problems)
Accountable relationship (the company or a salesperson
call the customer shortly after the sale to know if the
product met the expectations and for feedback and
suggestions)
Proactive relationship (the company call customer timeto-time with suggestions about new or improved product or
services)
Partnership (the company works continuously with
customers to discover ways to deliver better value)

INTEGRATED MARKETING COMMUNICATION (IMC)

How the Customer Sees Marketing Communications


Various communications or brand contacts, sponsored or not create an
integrated product in the consumers mind
Consumers automatically integrate all the brand-related messages that they
encounter
The way they integrate those messages determine their perception of the
company
IMC can manage those perceptions and create a superior relationship

Inside-out view of IMC


A way to coordinate and manage marketing communication mix (advertising,
sales promotion, public relations, personnel selling, direct marketing)
To give consumers a consistent message

Outside-in perspective
Sees customers as partners in an ongoing relationship
Recognizes the reference they use
Acknowledges the whole of the communication system
Accepts the many ways they come into contact with the company or the brand

THE FOUR SOURCES OF BRAND MESSAGES


- TOM DUNCAN
1.

Planned messages
1.
2.
3.

2.

Product messages
1.
2.
3.

3.
4.

Traditional marketing communication messages


Advertising, sales promotion, personal selling, merchandising
materials, publicity releases, event sponsorships
They have least impact as they are self serving

Messages from the product, price, or distribution channel


Packaging, color, type fonts, imagery, design, & layout
Should not be gap between performance & message

Service messages - employee interactions with customers


Unplanned messages
1.
2.
3.

Companies have no control over these messages


Gossips, criticisms of the brand
W-O-M communication can change consumer attitudes

THE INTEGRATION TRIANGLE - MESSAGES


Say
Planned
messages

Confirm

Do

Unplanned
messages

Product,
service
messages

Slide Note

IMC APPROACH TO MARKETING & ADVERTISING PLAN


WANG &SCHULTZ SEVEN STEP IMC PLANNING MODEL (REF EXBH 8-7, PG 248)
1.

Segments the customer and prospects in the database by purchase


behavior

2.

Analyzes the information on customers to understand their attitudes,


history, and their contact with brand or product (determining the best time,
place, and situation to communicate with them)

3.

Marketing objectives based on this analysis building and maintaining


usage or nurturing brand loyalty

4.

Identifies, what brand contacts and what change in attitude are required to
support consumers continuance or change of purchase behavior

5.

Sets communications objectives and strategies for making contact with


consumer and influencing her/his attitudes beliefs, and purchase behavior

6.

Decides what other elements of marketing mix can be used to further


encourage the desired behavior

7.

Determines what communications tactics to use media advertising,


direct marketing, publicity, sales promotion, special events
Slide Note

ADVERTISING PLAN

Reviewing Marketing Plan

Where the company is going


How it intends to go there
Role of advertising in the marketing mix
SWOT analysis
Market Positioning
Marketing mix

Setting advertising objectives

SMART
(Specific, Measurable, Achievable, Realistic, Time-bound)
Understanding what advertising can do
Advertising should inform, persuade, and remind the consumers
Advertising objectives should be related to communications
effects
Marketing sells, advertising tells

ADVERTISING PYRAMID: A GUIDE TO SETTING OBJECTIVES

Action
Desire
Conviction
Comprehension
Awareness

Slide Note

ADVERTISING PYRAMID: A GUIDE TO SETTING OBJECTIVES

Awareness Acquaint people (PR and mass media Ads)


Toyota Prius a hybrid car run on gas & electricity
Communicate the existence of it to 5,00,000 people who buy foreign economy
cars

Comprehension, interest and credibility Communicate enough


information (media Ads, publicity, direct mail, brochures, events)

Conviction - Persuade people to believe in the value

Inform 70% of this people regarding its fuel efficiency & environment friendly
aspects, design, safety, service, image, position & value
Convince the informed group that Prius is a high-quality car, reliable,
economical, status oriented, and fun to drive.

Desire - Make them move towards the product (good reviews, media Ads,
brochure, sales promotions)

Invite the convinced group to a test drive

Action Sell it (direct mail, sales promotion, personal selling in showroom)

May request additional information, send in a coupon, visit a store


Can actually buy it
Motivate 70% of the desire group to visit the showroom for a test drive

DIFFERENT WAYS CONSUMERS LEARN ABOUT BRANDS

The Advertising Pyramid


Learn-feel-do model
Reflects traditional mass-marketing monologue
Advertising affects attitude and attitude leads to behavior
True for expensive, high-involvement purchases

The Impulse Purchases


POS materials
Checkout counters
Do-feel-learn model
Behavior leads to attitude

IMC Model

Database, information about customers


Where they live, what they buy, their likes, dislikes, etc.
Marketers can have a dialogue and relationship with customers
From pyramid model to circle
Message to customer-feedbacks-message evolve
Interactive media and brand experience
Store design, sales promotion, PR

IMC: FROM PYRAMID TO CIRCLE


Contact points

Information

Consumer
attitudes /
motivators

Consumer
behavior

Information

Contact points

Slide Note

ADVERTISING STRATEGY AND THE CREATIVE MIX


(CREATIVE STRATEGY)

Advertising objective where it wants to be

Advertising Strategy how to get there

Consumer awareness, attitude & preference

Blends the elements of creative mix

Creative Mix

Target audience

Product concept

Communication media

Advertising message

CREATIVE MIX: THE TARGET AUDIENCE

Everyone who should know

Specific people the advertising addresses

Purchasers, influencers, end-users

Heavy users, light users

McDonalds campaigns are directed towards kids

CREATIVE MIX: THE PRODUCT CONCEPT


Presenting the product
The bundle of values
Same product can be marketed to two different TGs
Considering how consumers perceive the product
Its about how the advertising presents and positions
the product
Give consumers the reason to pick it up
Cognitive involvement (think) & Affective involvement
(feel)
High involvement or low involvement product
Emotional value or rational value
Different product called for different advertising

THE KIM-LARD GRID


Cognitive involvement (Think)

Affective involvement (Feel)


Low

College
High

Video Camera
Motor Oil

Laundry Detergent
Low

Paper Towels

High

Car
Shampoo
Skin Lotion

Greeting Card
Pizza
Bread

Product Concept

CREATIVE MIX: THE COMMUNICATIONS MEDIA

The message delivery system


Traditional media
ATL TV, Radio, Newspaper,
Magazine
BTL Stalls, POS materials,
Posters, Boards

Integrated communication
programs Internet, video game
characters, product sampling,
special events, endorsement
deals, public relations, personal
selling, sales promotion, direct
marketing and alternative and
ambient media
Balancing on both ends grassroots and mass-appeal
Slide Note

CREATIVE MIX: THE ADVERTISING MESSAGE


What the advertising communicates
How the advertising communicates
Verbal, and non-verbal (visual) message Copy, art

Singaporean girls Singapore airlines; Golden M McDonald

Keeping the brand youthful Mountain Dew


(Skateboards, Rafting, Athletes, Cheetah), Pepsi
(youths)
Taking the brand to new heights and appealing to
new segments

Diesel jeans communicating to youths


See Portfolio Review Strategic Use of the Creative Mix (pg 256-258)

Slide Note

THE ADVERTISING MESSAGE

THE ADVERTISING MESSAGE

MARKETING AND ADVERTISING PLANNING

Target Market consideration

Element of Advertising (Creative) Strategy Determination

Product concept to be communicated

Various media to be used to communicate

Nature of the advertising message

The work of the creative team begins

ADVERTISING BUDGET

In the early 1990 after years of growth US &


Canada experienced recession

Interest rate rose, real estate sales dropped,


home construction slowed, defense spending cut,
unemployment was on the rise, consumer
confidence declined, retail sales sank

Corporate companies cut down on marketing &


advertising budget taking them as expenses

Two years later, the government announced that


recession was over

Sales of those companies were still down, &


those companies had lost market share

Advertising not an expense; an investment in


future sales

The power of advertising is in its cumulative,


long-range, reinforcement effect

Advertising builds consumer preference and


promotes goodwill and increases product value

ADVERTISING, SALES, AND PROFIT


In consumer goods marketing increase in market share
are closely related to increase in marketing budget
market share is a prime indicator of profitability
Sales normally increase with advertising at some point,
however, the rate of return plateaus and then declines
Sales response to advertising may build over time, the
durability of advertising is brief, so a consistent
investment is important
Advertising expenditures below certain minimum levels
have no effect on sales
Some sales will occur even if there is no advertising
Culture and competition impose saturation limits above
which no amount of advertising can increase sales

METHODS OF ALLOCATING
ADVERTISING BUDGETS

Percentage of Sales

Determined by allocating last years sales, future sales forecast or their


combinations the percentage is based on industry average of
company experience

Its shortcoming it takes advertising as an occurrence of sales

Percentage of Profit
Percentage

is applied to last years or coming years forecasted profit

Unit of Sale
It is also called case-rate method
A specific dollar is set for each sale of case, barrel, carton, bottle, pack
It is used by traders

METHODS OF ALLOCATING
ADVERTISING BUDGETS

Competitive Parity

It is also called self-defense method


Dollars allocation as spent by closest competitors

Share of Market/Share of Voice

Allocates dollar maintaining the percentage share of


industry advertising to somewhat ahead of desired
market share

A company wanting to maintain a 30% market share will


invest 35% of the industrys advertising dollars

Often used for new product introductions

METHODS OF ALLOCATING
ADVERTISING BUDGETS

Objective/Task

It is also called budget build-up method

Defining objectives

Determining strategy

Estimating cost to execute that strategy

Forces companies to think about their goals

Appropriate if the results are measurable

Adaptable to the changing market environment

METHODS OF ALLOCATING
ADVERTISING BUDGETS

Empirical Research

Different budgets for different markets

Run an experimental tests

Determine the most efficient level

Quantitative Mathematical Models

Computer based programs relied on previous information

All Available Funds or Residual Method

Go-for-broke technique

Used by small firms

Used when trying to introduce new products or services

4. Creating Advertisements and


Commercials

THE CREATIVE TEAM

Creative Director supervises the creative work

Copywriter develops verbal message, the copy


Art Director develops nonverbal aspect of the
message, the design which determines the visual look
and intuitive feel of the Ad
Graphic Designers designs the Ad layout using
graphic designing software
Illustrators draws objects as required

WHAT MAKES GREAT ADVERTISING?

Great Ad copies

Coke (The real thing), DeBeers (Diamonds are forever)


VW (Think Small); Carlsberg (Probably the best beer in the world)

The Resonance Dimension


Boom effect, chime, echo, reverberate, or vibrate
Informational: negatively originated motives (problem avoidance,
problem removal, provide foundation for great Ads. These resonate
with audience by being highly informational by offering relief from
some real perceived problems Overnight delivery (FedEx)
Transformational: positively originated as consumers seek sensory
gratification, intellectual stimulation, or social approval. Here, Ads
may achieve greatness by being transformational, using positive
reinforcement to offer or reward. Be all you can be

The Relevance Dimension


Great advertising has strategic relevance than entertaining aspects
Needs to fulfill strategic mission of consumer solution

Informational Ad Copy

Transformational Ad Copy

FORMULATING ADVERTISING STRATEGY:


THE KEY TO GREAT CREATIVE

Advertising Strategy

Target Audience
(primary market, secondary target audience, key influencers)

Product Concept
(positioning and image association)

Communication Media
(TV, radio, press, outdoor, digital best way to reach the
target audience)

Advertising Message
(what a company wants to say and how it wants to say it)

WRITING THE CREATIVE BRIEF


[COPY PLATFORM]
Creative brief, provided by Account Planners on the basis of Ad
objective & strategy, serves as a creative guide to creative team of
Creative Director, Copywriter, Art Director
Who? The prospects personality (behaviorist, geographic,
demographic, psychographic)
Why? Consumers specific wants or needs the Ad should appeal to
rational appeal (practical and functional need) and emotional appeals
(psychological, social, or symbolic needs)
What? Special product features; product positioning; product image or
personality; product perception
What style, approach? Campaign tone and copy content
Where & when? Message communication media, timings and place

CREATIVE BRIEF (DEVELOPED BY P&G & LEO BURNETT)


1.

An Objective Statement
a specific, concise description of what the advertisement is
supposed to accomplish or what problem an advertising is
supposed to solve. It includes the brand name and target
consumer description

2.

A support Statement:
a brief description of evidence that backs up the product
promise; the reason for the benefit

3.

A tone or brand character statement:


tone statement is short-term emotional description of the
advertising strategy. Brand character statement is the longterm description of the enduring values of the brand that give
product the brand equity

ELEMENTS OF MESSAGE STRATEGY


Message strategy- description & explanation of an Ad
campaigns overall creative approach (what, how, & why it says it)

Supervised by Creative Director


Verbal - Copywriting
What the advertising should say
The choice of words
Relationship of the copy approach to the media

Nonverbal Art Direction


Nature of the Ads graphics
Visuals used (mental concepts & copy into symbol & visuals)
Relationship of graphics to the media

Technical - Execution
Execution approach
Mechanical outcome (budget and scheduling)
Mandatory (addresses, slogan, logo)

HOW CREATIVITY ENHANCES ADVERTISING

Creativity Helps Advertising Inform


Attracts attention, maintains interest, stimulates consumer thinking
Using plays on words, verbal or visual metaphors- Fly the friendly skies
Using commonly accepted symbols, aesthetic cues models, voice tones,
settings, clothing style.

Creativity Helps Advertising Persuade

Creating character to motivate consumers Energizer Bunny, Fido Dido


Creative story or persona establishes unique identity for the product
Higher form of expression creates a grander impression
The products perceived value rises
The Ads verbal message must be reinforced by the creative use of
nonverbal message/information graphics color, layout, charts, illustration
Artworks and colors stimulates related emotions

HOW CREATIVITY ENHANCES ADVERTISING

Creativity Helps Advertising Remind


Transforms boring reminders into interesting, entertaining advertisements
Reminds consumers to indulge again & again
Consumers are entertained daily by creative ads of the same product
Nike, Lux, Fair & Lovely, Vodafone, Lays, Coke, Pepsi

Creativity Puts the Boom in Advertising


Successful comedy has a boom factor the punch line Happydent,
Mentos, Centershock
Boom doesnt always need to be funny, but can be subtle understanding
Good punch lines are the result of taking of everyday situation, looking at it
creatively and exaggerating a bit, and delivering it as a surprise
(doing unexpected acts or things with double meaning)
Show consumers the benefits of using the product

STYLES OF THINKING

Two-brain Theory of Creativity Roger Sperry (1990)

Based on the surgical experiments


The human being use two sides
(hemispheres) of brain for different
purposes
Left brain (fact-based hard
thinking) thinks in terms of symbols
and words; used for logical thinking,
judgment, speaking, mathematical
reasoning analyzing the creative idea
Right brain (value-based soft thinking)
thinks in terms of sensory images;
used for feeling, imagining, dreaming,
visualization, and intuition creative
thinking

UNDERSTANDING CREATIVE THINKING

Fact-Based Style of Thinking


(Hard Thinking)

Fragment concepts into components


Analyze situation to discover best solution
Prefer to have hard data - facts, figures, & logic
Practical work, simple straightforward layouts, rational
appeals

Fact-Based (Hard) Thinking

UNDERSTANDING CREATIVE THINKING

Value-Based Style of Thinking


(Soft Thinking)

Make decisions based on intuition, values and ethical


judgment
They embrace change, conflict, & paradox
Soft, subtle, intuitive, metamorphical
HP (imagination in what technology can do to life), Taylor
Guitar (association with trees and woods), Nike (athlete)
They use their imagination
They use emotional appeal

Value-Based (Soft) Thinking

THE CREATIVE PROCESS

It is the step-by-step procedure to discover original ideas and


recognize existing concepts in new ways
In 1986, Roger von Oech published four-step creative model
used today by many Fortune 100 companies
The creative process includes the following four roles the
copywriter & the art director has to take:
1.
2.

3.

4.

The Explorer Role: Searching and gathering Information


The Artist Role: Developing and Implementing the Big Idea with
experiments and looking for original ideas (a value-based style is more
effective)
The Judge Role: Evaluates the results of experimentation and decides
on the most practical approach - Decision Time (a fact-based style is
more effective)
The Warrior Role: Overcoming, excuses, idea killers, setbacks and
obstacles to bring in creative concepts to realization (a fact-based style is
more effective)

THE EXPLORER ROLE

Its gathering of information


Searches for new information, paying attention to unusual patterns
Reviewing creative brief, marketing and advertising plan, market study
Developing an insight outlook

Know the objective

Explore uncommon places for cues


Visit places because ideas are everywhere diverse sources
Insight outlook positive belief that good information is available and you
have the skills to find and use it
A problem well stated is a problem half-solved John Dewey
Know what you are looking for
Creative juice maintenance of Ad award book, ad files

Brainstorm

Conceived by Alex Osborn, the former head of BBDO


Invite any ideas (no idea is wrong)
Allow free association of ideas allow flexibility, courage, openness

THE ARTIST ROLE

Its developing and implementing the big idea


Experimenting and playing with a variety of approaches, looking for an
original idea
Task 1: Develop the Big Idea

Visualization or conceptualization creating the mental picture of the Ad


Bringing the subject to life that will interest and arouse the consumer
Transforming a concept: Do Something to It

Adapt Change contexts. Think what a product might else be


(Cambells Soup Health Insurance)
Imagine Ask what if. Let your imagination fly. Imagine the weirdest thing
Reverse Look at it backward. Moisturizing cream Introduce your husband to a
younger women.
Connect Join two unrelated ideas together
Compare- Take one idea & use it to describe another. Use of metaphors, as bankers
talking like plumbers flood the market, float the loan, liquid assets
Eliminate- Do the things other way - Seven up positioning as an uncola thing
Parody Have some fun. Use humor Amul Butter

Blocks to Creativity information overload, fatigue, concept rejections (value based)


Incubating a Concept Do nothing to it. Do something else to it (subconscious mind)

THE ARTIST ROLE

Task 2: Implement the BIG IDEA

Copywriting - Writing the exact words


Art direction Managing visual presentation of the Ad
The Creative Pyramid: A Guide to Formulating Copy & Art
Designing the advertisement layout

The BIG IDEA

The flash of insight; a bold, creative initiative that builds on the strategy
Joins the product benefit with consumer desire with fresh, involving way
Brings subject to life; makes the audience stop, look and listen
Strategy describes the direction the message should take, the BIG IDEA
gives it a life
Strategy requires information, dedication, BIG IDEA requires inspiration

ADVERTISING AND CREATIVE PYRAMID:


A GUIDE TO FORMULATING COPY AND ART
Advertising Pyramid

Creative Pyramid

Action

Action

Desire

Desire

Conviction

Credibility

Comprehension

Interest

Awareness

Attention

THE ARTIST ROLE

The Creative Pyramid: A Guide to Formulating Copy and Art


Attention
Breaking through consumers psychological screens
Ads boom factor (unusual layout, dynamic visuals, sound, animation)
Headline that expresses the big idea
Interest
Compatible tone and language with the target market attitude, drama
The writer and designer must lead prospect from one step to another
The successful Ad resonates (using the word you)
Credibility
Customers are sophisticated and skeptical
Proof presentations, comparison Ads, and endorsement Ads
Desire
Encourage prospects to picture themselves enjoying the benefits
Personalize the Ad copy; characters agreeing to each other in an Ad
Action
Motivate people to buy - Toll free number, coupon return

THE JUDGE ROLE

Its deciding about the creative approach

Its evaluating the results of experimentation and deciding the most


practical approach

Idea worth fighting for during warrior role

Questions to be asked & analyzed by the creative team:

Is this idea really great?

Whats wrong and right with this idea?

What if this idea does nor succeed?

What is my cultural bias?

Whats clouding my thinking

Refer Exhibit 12-3 (pg 395) Leo Burnett Global Committees rating scale

THE WARRIOR ROLE

Its overcoming setbacks and obstacles

The warrior overcomes excuses, idea killers, setbacks, & obstacles to bring

a creative concept to realization

The warrior carriers the concept into action (approved, produced, released)

To gain the maximum selling power, Bruce Bendinger suggests five

components:
1.

Strategic precision: The strategy should lead the creative approach (selling idea)

2.

Savvy psychology: The idea has to meet the clients needs (receiver-driven)

3.

Slick presentation: Prepare with great visuals and emotional appeals

4.

Structural persuasion: Well structured presentation flow (organized thinking)

5.

Solve the problem: Clients problem should be solved (in style)

PRINCIPLES OF DESIGN ( ROY PAUL NELSON - ADV AUTHOR)

Good design attracts and holds customers and informs


Principles of a Layout Design

Balance (optical center is the reference point of layout balance)

Formal balance (perfect symmetry stable Ad)


Informal balance (visually balanced Ad with elements of different size, shape,
color intensity from the optical center - makes the Ad more interesting, imaginative
and exciting)

Movement / Sequence (eye tend to flow Z pattern when scanning the


page; positioning the eyes of people or animal to direct the viewers; use of
dark and white spaces)
Proportions (elements of Ad accorded space as per their importance)
White Space (Isolation) (to focus attention on isolated element)
Emphasis/Contrast (effective way of drawing attention to a particular
element through color, size, or style)
Clarity and Simplicity (avoiding complex styles, boxed items)
Unity (Ad elements relating to each other to give a singular harmonious
impression visual and font type)
Continuity (relationship of one Ad to the rest of the campaign, by using
same design, format, style, and tone)

BALANCE

MOVEMENT/ SEQUENCE

PROPORTION

UNITY

EMPHASIS/CONTRAST

Designing Print
Advertising

Designing refers to how the art director & graphic

designer, choose & structure the artistic elements of


an Advertisement. Its about layouting, visual choice,
type setting.

USE OF LAYOUTS

Layout is an overall orderly arrangement of all the


format elements of an Ad:

Visuals

Headline

Subheads

Body copy

Slogan

Seal, Logo, & Signature

Layout gives the complete picture of a tangible Ad

It helps creative to develop the psychological impact - Image

LAYOUT STYLES (

REFER TO BOOK PAGE

412 TO 414, PORTFOLIO REVIEW)

Picture Window Layout/Poster-Style: Single large visuals occupy about twothirds of the Ad. The headline & copy may appear above or below the window

Mondrian Grid Layout: Series of vertical & horizontal lines, rectangles, & squares
within a predetermined grid to give a geometric proportion to the Ad.

Circus Layout: Filled with multiple illustrations, oversized type, reverse blacks, tilts,
or other gimmicks to bring the Ad alive & make it interesting

Picture Frame Layout: The copy is surrounded by the visual. Or, in some cases
the visual may be surrounded by the copy.

Copy-Heavy Layout: When you have lot to say use text. The headline & subhead
is interesting. The copy frames the headline & visuals.

Montage Layout: Brings multiple illustrations together & superimposes or overlaps


to make single composition.

Combo Layout: Combining two or more layout types

PICTURE WINDOW

COPY HEAVY

CIRCUS

Till Here

USE OF VISUALS

Its a pictorial or graphical message

Done by Illustrators & Photographers

Purpose of the Visual

Capture the readers attention


Clarify claims made by the copy
Identify the subject of the Ad
Show the product actually being used
Qualify readers by stopping those who are the legitimate prospects
Help convince the reader of the truth of copy claims
Arouse the readers interest in the headline
Emphasize the products unique features
Create a favorable impression of the product
Provide continuity for the campaign by using a unified visual technique

STANDARD SUBJECT FOR VISUALS

The package containing the product Snack foods, biscuits

The product alone Non-packaged goods

The product in use- Automobile, toothpaste, cosmetics, Juices

How to use the product Recipes

Product features Cars, software, mobile phones, laptops, TVs

Comparisons of Products Cars, DTH service

User Benefits Cosmetics, financial services

Humor Candies, cookies

Testimonial Suiting, cosmetics, soap

Negative Appeal Insurance

Copywriting & Formats


for Print Advertising

Headlines

Subheads

Body Copy

Slogans

Seals, Logos, & Signatures

HEADLINES

Words in the leading position to draw attention in larger type


Roles

Attract attention
Engage the audience
Explain the visual
Lead the audience into the body of the Ad
Present the selling message
Present the product news

Examples: FREE, NOW, Amazing, Suddenly, Announcing,


Introducing, Just Arrived used in Direct Marketing

Just do it Nike

At 60 miles an hour, the loudest noise in the new Roll-Royce comes from the
electric clock David Ogilvy, O&M

TYPES OF HEADLINES

Benefit Headline: the reward after experiencing the product utility


You will look fair in 90 days fairness cream

News/Information Headline: announces news or information


now arrived in new pack

Provocative Headline: to provoke the readers curiosity


Betcha cant eat just once Lays

Question Headline: encouraging customers to search for answers


What makes you smarter than others?

Command Headline: orders the reader to do something


Obey your thirst - Sprite

SUBHEADS

An additional smaller headline

Appears above, below the headline, or in the body copy

It is smaller than the headline & larger than the body copy in type

It usually is presented in an italic & boldface font type

They link the headline with the body copy

A subhead above the headline kicker (or overline)

BODY COPY

Tells the complete sales story

Comprises the interest, credibility, desire, & action steps

It is a logical continuation of headline, & subheads

Covers the features, benefits, & utility of the product or service

Should speak to the readers self-interest

WRITING EFFECTIVE COPY

Get to the main point fast

Emphasize into one main idea simply & clearly

Be single minded dont chase two rabbits at a same time

Position the product clearly

Highlight & reinforce the brand name

Explain consumer benefit

Use short sentences with familiar words

Avoid bragging (self - important), boasting. Use you & avoid clichs

Write with flair, excitement, & enthusiasm

Use vivid language verbs & adverbs

Stick to the present tense, active voice

Use personal pronouns - use you & your

Use contractions listen to yourself

Dont over punctuate maintain the flow

Read the copy aloud, & rewrite edit mercilessly

BODY COPY STYLES

Straight-Sell Copy

Immediate explanation & development of the headline & visual

Ticks off products sales point

Used in direct-mail Ads, industrial & high tech products

Institutional Copy promotes the philosophy or merits of organization

Narrative Copy sets up a situation & resolves the problem through the product

Dialogue/Monologue Copy verbal interaction between two characters

Picture-Caption Copy telling story with illustrations & captions

Device Copy using figures of speech or rhymes

FORMATTING BODY COPY

Lead-In-Paragraph

Bridge between the headline & the sales ideas


Is part of the interest step
It must be engaging to convert reading interest to product interest

Interior Paragraphs

Develop credibility by providing proofs of copy claims data, testimonials

Build desire by using language that stirs the imagination

Trial Close asking the reader to act now offers

Close real action step - tells customer how to do it visit website

SLOGANS

Also called theme lines, baselines, punch lines, or taglines

To provide continuity to a series of Ads in a campaign

Present message strategy in brief, catchy phrase

Examples:

AT&T Reach out & touch someone

Wheaties cereals Breakfast for champions

DeBeers Diamonds are forever

Philips If its Philips you can be sure

Coke Things go better with Coke

Complan The complete planned food

SEALS, LOGOS, & SIGNATURES

Seal - the proof of quality standard provided by recognized institutions

Logotype the logo design of the product

Signatures special designs, trademarks of the company

THE CREATIVE & APPROVAL PROCESS

Thumbnail sketches
Rough, rapidly produced basic designs
Artists uses to visualize layout approaches

Rough layout
The artist draws to the actual Ad size
Headlines & subheads suggest the final type style,
illustrations & photos are sketched in
Body copy simulated with dashed lines ------ ------ The agency presents it to the client for layout approval

Comprehensive

Highly refined finished Ad, elaborative


Colored photos, final type styles & sizes, subvisuals
Glossy spray
Printed as a full color proof

THUMBNAIL SKETCH

THE CREATIVE & APPROVAL PROCESS

Dummy
Presents the handheld look & feel of brochures, POPs
It will be constructed replica of the to-be-finished materials

Mechanical (pasteup)
The type & visuals placed in exact position for reproduction
by printer
Its print setup or to make print ready format
The final size, color tone is checked as per the print media

Approval
The work of copywriter & art director is subject to approval
First approved by the agencys creative director
Next the clients product manager & the marketing & sales
staff review it
Finally the companys top executives review the final
concept & text

5. Planning Media Strategy

MEDIA PLANNING

Where to advertise (location)

Which media vehicles to use?

When to concentrate the advertising

How often to run the advertising?

Integrating media advertising with other


communication tools

ROLE OF MEDIA IN MARKETING FRAMEWORK

Marketing Objectives & Strategy

Situation or SWOT analysis

Marketing objectives (focuses on solving a problem)

Increasing sales volume by 20 % in the Northern area

Increasing market share in the female buyer segment

Marketing Strategy (way and steps to meet objective)

Product adaptation to suit the local taste Product

Lower the price to compete with local brands Price

Devise trade deals to gain shelf space Distribution

Reposition the brand through advertising - Communication

ROLE OF MEDIA IN MARKETING FRAMEWORK

Advertising Objective & Strategy

Convincing 25% of the target market regarding product

Positioning the brand in the minds of 30%, 18-34 yrs

Increasing the brand preference by 10% in South

Improving the stakeholders attitude by the year end

The Media Planning Framework

DEFINING MEDIA OBJECTIVES

Audience Objective
(geo-demographic classification of target group)

People in specific income, educational, occupational or


social group

Opinion leaders, distribution channel members, financial


community

Potential consumers

Selecting media vehicles

MESSAGE DISTRIBUTION OBJECTIVES

Audience Size and Message Weight

Media offering larger number of audiences

Print media circulation Readers Per Copy (RPC) - readership

Message weight

Advertising impression exposure of Ad message to one audience member referred to as Opportunity To See (OTS)

Gross impressions = mediums total audience size x number of time an Ad message


is used

Gross Rating Points (GRP) Percentage of homes or individuals (expressed as

Television Households or TVHH) exposed to an Ad medium

Schedule delivering 180 GRPs, means the gross impressions generated by our
schedule equaled 180 percent of the target market population

GROSS IMPRESSION ANALYSIS


Media Vehicle

Target
Audience

Message
Used

Gross
Impression

TV Ch. 6 News

140,000

15

2,100,000

Daily newspaper

250,000

1,750,000

Spot radio

10,000

55

550,000

Total gross
impressions

4,400,000

GROSS RATING POINT (GRP) ANALYSIS


Media Vehicle

Adult rating
Mkt Sz 1m

Message
Used

Gross Rating
Points

TV Ch. 6 News

14

15

210

Daily newspaper

25

175

Spot radio

55

55

Total Gross
Rating Points

440

MESSAGE DISTRIBUTION OBJECTIVES

Audience Accumulation and Reach


Reach total number of different people or households exposed, at least once to a
medium during a given period of time Opportunity To See (OTS)
Increasing the reach using the same media vehicle continuously or by combining two
or more media vehicles
It is expressed in percentage of total market or a number

Exposure Frequency

The number of times the same person or household is exposed to a message


It is the intensity of media schedule or the number of exposure to same group
Frequency is important because repetition is the key to memory
Average Frequency = Total exposures /Audience reach
Reach x Frequency = GRP

Continuity
It is spreading the marketing efforts through longer period
As frequency is to create memory, continuity is to sustain it

Developing the Media Strategy:


The Media Mix

ELEMENTS OF MEDIA MIX: 5 MS


1.

Markets: targets of media plan; trade and consumer, global, national, or regional
audiences & socioeconomic groups; need to find motivation or reason of purchase

2.

Money: how much to budget & where to allocate; media type; area

3.

Media: Communication vehicles; radio, T.V. newspaper, magazines, outdoor,


internet, direct mail, PR activities, sales promotion, events, brochures, shopping
bags, t-shirts

4.

Mechanics: time units of T.V. and radio; size & styles of print media

5.

Methodology:

selecting & scheduling media vehicles (radio stations, T.V.

channels, newspapers, magazines) for desired message weight, reach, frequency, &
continuity; Creativity in planning, buying & negotiating

FACTORS THAT INFLUENCE MEDIA STRATEGY


DECISION

Scope of the Media Plan

Affects decisions regarding market, money, & media

Domestic markets

Usage of local plan, regional plan, or a national plan

International markets

Use of foreign local media

Acquisition of information through media research

Media planning assigned to local agency or the branch of the global


agency

FACTORS THAT INFLUENCE MEDIA STRATEGY


DECISION

Sales Potential of Different Markets

Affects decisions regarding market & money

Brand Development Index (BDI)


% of the brands total sales in the area x 100
% of total population in that area

Category Development Index (CDI)


% of the products total sales in the area x 100
% of total population in that area

Low BDI raises red flag, high CDI indicates the potential to
grow the sales of that brand

BDI AND CDI MATRIX


Low BDI

High BDI

High CDI Low market share, but


good market potential

High market share and


good market potential

Low CDI Low market share and


poor market potential

High market share, but


monitor for sales
decline

FACTORS THAT INFLUENCE MEDIA STRATEGY


DECISION

Competitive Strategies & Budget Considerations

Affects decisions regarding media, mechanics, & methodology

Knowing the media budget of the competitors (SOV)

Following the consumers by using different media channels,


where the competitors does not have a strong presence

Panasonic Power Activator Batteries

Did not have budget ad huge as Energizer & Duracell

Targeted 15 to 22 years

Included posters in dance clubs; sponsored DJs & VJs, had t-shirts,
hats, stickers; Ads in music channels; cross promotion with a new CD
release; interactive web media

FACTORS THAT INFLUENCE MEDIA STRATEGY


DECISION

Media Availability and Economics

Its complex for global marketer

Every media is not available for commercial communication

Lower literacy rates restricts the use of print media

Low T.V. ownership will limit television advertising

Spillover media will create confusion by running two different

campaigns of the same products from different regions

FACTORS THAT INFLUENCE MEDIA STRATEGY


DECISION

Nature of the Medium and Mood of the Message

Affects the media, & methodology elements of the media mix

Simple message or detailed message requiring explanation

Emotional or sensual appeals

A new or complex message may require greater frequency and


exposure

Emotionally oriented messages are usually more effective when

spread at regular intervals to create enduring feelings about the


product

FACTORS THAT INFLUENCE MEDIA STRATEGY


DECISION

Message Size, Length, & Position Considerations

Affects the mechanics element of the media mix

Full page, quarter page, color, b/w, page & position of the Ad (front
page, back page, third page right side)

Quarter page Ad run 4 times a week, or full page Ad run once a


month

TVC of 60 sec, 30 sec, or 15 sec to be run in prime time

Buyer Purchase Patterns

Consumer purchase behavior - how, when, & where the product is


typically purchased

Media Tactics: Selecting and


Scheduling Media Vehicles

CRITERIA FOR SELECTING AND SCHEDULING


MEDIA VEHICLES

Overall Campaign Objectives and Strategy

Review the nature of product or service

Compatibility of product type with media type and media vehicle

Consumer view regarding magazines, newspapers, and TV programs

If the marketing objective is to gain greater distribution, the planner should select
media that influence potential dealers

Characteristics of Media Audiences

Audience is the total number of people or households exposed to a medium

Mediums audience matching the profile of target market

Interest level of the audience in the to be selected media

Data on target audience profile: age, income, occupational status, and other
demographic and psychographic data

Content of the medium specialization of the media, editorial, program

CRITERIA FOR SELECTING & SCHEDULING


MEDIA VEHICLES

Exposure

How many people an Ad sees

Factors affecting the probability of Ad exposure

The senses used to perceive the Ad (scratch-&-sniff Ads)

Attention the media requires (higher media involvement-higher Ad exposure)

Medium as an information source or diversion ( radio news or elevator music)

Medium aimed at general or specialized audience

The placement of the Ad

Motivation

Familiarity with the advertisers campaign may affect attention significantly


but affects the motivation very little

The attention factors of quality reproduction and timeliness can motivate

CRITERIA FOR SELECTING & SCHEDULING


MEDIA VEHICLES

Attention

Consumers having interest on certain product categories will notice Ads

related to that categories

Exposure value relates to the medium; attention value concerns the


advertising message, copy, as well as medium

Factors known to increase attention value

Audience involvement with editorial content or program material

Specialization of audience interest or identification

Number of competitive advertisers

Audience familiarity with the advertising campaign

Quality of advertising reproduction

Timeliness of advertising exposure

CRITERIA FOR SELECTING & SCHEDULING


MEDIA VEHICLES

Cost Efficiency of Media Vehicles

Cost per thousand (CPM)

Example

Target audience females ages 18 to 49; 40% of a weekly newspapers subscriber


base of 250,000 fits this category; Target audience 40% of 250,000 = 100,000

The paper charges $3,000 for a full-page Ad

CPM = $3,000/100,000 1,000 = $ 30 per thousand

The paper can be more cost efficient if 60% of its readers (180,000) belong to the
target audience: CPM = $5,000/180,000 1,000 = $ 27.78 per thousand

The media planner must evaluate all the criteria to determine

How much of each mediums audience matches the target audience

How each medium satisfies the campaigns objectives & strategy

How well each medium offers attention, exposure, & motivation

CONTINUOUS SCHEDULE
FLIGHTING SCHEDULE
PULSING SCHEDULE
Methods for Scheduling Media

CONTINUOUS SCHEDULE

Advertising runs steadily and varies little over the campaign period

Advertising spread evenly through campaign time period

Its the best way to build continuity in the campaign

Used for frequently purchased products (FMCG products)

100 GRPs/week

12 weeks

FLIGHTING SCHEDULE

Alternates periods of advertising with periods of no advertising

Bursts of advertising alternated with periods of total inactivity

Certain week flight then schedule additional week flight during season

This intermittent schedule makes sense for products or services that


have fluctuating demand throughout the year (tax services, cold

remedies, lawn-care products)


150
GRPs/
week

0 GRPs

150
GRPs/
week

4 weeks

4 weeks

4 weeks

PULSING SCHEDULE

Mixes continuous and flighting strategies

A continuous base augmented by intermittent bursts of heavy Advertising

As the consumers purchasing cycle gets longer, pulsing becomes more appropriate

The advertiser maintains a low level of advertising all year, but uses periodic pulses to
heavy up during peak selling periods

This strategy is appropriate for products like soft drinks, which are consumed all year,
but more heavily in the summer.

110
GRPs/
week
4 weeks

80
GRPs/
week
4 weeks

110
GRPs/
week
4 weeks

MEDIA SCHEDULING
Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Method
Nepal TV
Continuous
Image Ch

Flighting

KTV
Pulsing
THT
Pulsing
TKP

Flighting

NP

Flighting

KNP

Continuous

MEDIA SCHEDULING PATTERNS

Bursting running the same commercial every


half-hour on the same network during prime time

Roadblocking buying air time on all three


networks simultaneously

Blinking to stretch slim advertising budget

Media

Pros/Advantages

Cons/Disadvantages

Print/
Newspapers

High coverage; low cost


Short lead time; Ad placement page
Can be used for coupons

Short life; clutter; low attention


Poor reproduction
Selective readers

Print/
Magazines

Segmented audience
Quality reproduction; longevity
High information content
Multiple readers

Long lead time for Ad placement


Visual based
Lack of flexibility

Television

Mass coverage; high reach


High impact for all senses
High prestige; favorable image
Low CPM; attention getting

Low selectivity
Short message life
High absolute/ production cost
Clutter

Radio

Local coverage; low cost


High frequency; flexible
Segmented audiences

Audio only; clutter


Low attention getting
Fleeting message

Media

Pros/Advantages

Cons/Disadvantages

Out of
home/Exhibitive

Location specific; repetition;


noticed

short exposure; restrictions

Direct Mail

Selectivity; content; repeat


exposures

High relative cost; poor junk image

Internet/
digital/Interactive/
Supplementary
Media

User involvement; interactive


Direct selling potential
Flexible message platform

Limited creativity; Websnarl


(crowd)
Technology limitations
Limited reach

6. Evaluating Promotional Program

EVALUATING PROMOTIONAL
PROGRAMS
Arguments For and Against Measuring
Advertising Effectiveness
Brief Concepts of Pre-Testing and Post
Testing

MEASURING ADVERTISING EFFECTIVENESS


Objectives
Increase the effectiveness of the
Advertisement
Predict the relative strength of the Ad
strategy
Avoid Costly Mistakes

Methods of Testing
Pre Testing - before the Ad campaign execution
Post Testing - after the Ad campaign execution

MEASURING ADVERTISING EFFECTIVENESS


Purpose of Pre-Testing

To get an idea about the potential of the Ad


To spot the errors in the Ad copy
To design the Ad better
To reduce wastage in advertising
To ensure that money is invested prudently
To make the communication more effective

METHODS FOR PRETESTING ADS


Quantitative Methods
Qualitative Methods

PRE-TESTING PRINT ADVERTISING

Direct questioning asking direct questions about Ads


Focus group discussion a moderated freewheeling discussion
Order-of-merit test respondents see two or more Ads and
arrange them in rank order
Paired comparison method respondents compare each Ad in a
group
Portfolio test one group sees the portfolio of test Ads
interspersed among Ads and editorial matter another group sees
the portfolio without the test Ads
Mock magazine test Ads stripped into a magazine
Perceptual meaning study respondents see Ads in timed
exposures
Direct mail test two or more alternative Ads are mailed to
prospects to see which Ad generates largest response

PRETESTING BROADCAST ADVERTISING

Central location projection test - respondents see test


commercials in a central location like shopping centers
Trailer test respondents see test commercials in a central
location like shopping centers and receive coupons for the
advertised products difference in coupon redemption is
measured
Theater test electrical equipment enables respondents to
indicate their likes and dislikes while they view TV in theater
style
Live telecast test test commercials are shown in cable TV
and respondents interviewed by phone
Sales experiment alternative commercials run in two or
more areas

PHYSIOLOGICAL TESTING

Pupilometric device dilation of the subjects pupils is


measured, to indicate the subjects interest level
Eye-movement camera the route the subjects eyes travelled
is superimposed over an Ad to show the areas that attracted and
held attention
Galvanometer measures the subjects sweat gland activity
with mild electrical current the more tension and Ad creates,
the more effective it is likely to be
Voice-pitch analysis a consumers response is taped and a
computer used to measure changes in voice pitch caused by
emotional responses
Brain-pattern analysis a scanner monitors the reaction of
the subjects brain

MEASURING ADVERTISING EFFECTIVENESS


Purpose of Post Testing - Ad tracking

To find out the impact of the Ad in terms of it being noticed, seen


and read
To find out its credibility
To find out its comprehension
To measure its memoribility
To asses its effects on buyers
To asses its fit with the promotion & marketing mix
To asses its objective
To asses the relative effectiveness of different copies and media
plans
To improve future advertising effectiveness

POST-TESTING METHODS OF ADVERTISING

Aided recall (recognition-readership) to jog their memories,


respondents are shown the Ad and asked if their exposure to it was
through reading, viewing, or listening
Unaided recall respondents are asked, without prompting,
whether they saw or heard advertising messages
Attitude test direct questions, semantic differential tests, or
unstructured questions measure changes in respondents attitudes
after a campaign
Inquiry test additional product information, product samples, or
premiums are given to readers or viewers of an Ad Ads
generating the most responses are presumed to be the most
effective
Sales test measures past sales compare advertising efforts with
sales controlled experiments test different media in different
markets

TESTING HELPS MAKE IMPORTANT DECISIONS


Five Ms
1.

Merchandise package design, brand positioning, product


feature communication

2.

Markets understanding various customer groups representing


different markets

3.

Motives - find the right appeal to the most compelling need

4.

Messages Ad copy modifications, including font type, color, etc.

5.

Media effectiveness of media class, media subclass, media vehicle,


media units

Questions/Answers/Discussions
Thank You/Best Wishes

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