Advertising

Pakistan Advertising Spend

Total Ad Spend: Rs.17.2 Billion Rs.Billion

TV 6.8
Print 6
Radio 1.5
Outdoor 2.5
Direct Marketing 0.45
3%
14%

39%
9%

35%

TV Print Radio Outdoor Direct Marketing

Advertising defined

Paid form of non personal communication of

information or ideas by an identified
sponsor

Role of Advertising
is to influence
people
5 Distinct Players in Adv. process

Advertiser

The
Media
Audience
Advertising
Process

Advertising
Suppliers
Agency
Advertising Classified

Types Of
Advertising

By Target Audience Geographic Area

Media By Purpose
Types Of Advertising
On the basis of Target Market
1.Consumer Adv
2.Business Adv
- Industrial
- Trade
- Professional
Types Of Advertising
On the basis of Media
Print
Newspaper
Magazines
Electronic
TV
Radio
Out of Home
Outdoor (posters, hoardings etc)
Transit (buses, terminals etc)

Direct mail
Directories
Other Media
Types Of Advertising
On the basis of Purpose
 Product or Non Product
 Commercial or Non commercial
 Primary demand or Secondary demand
 Direct Action or Indirect action
Objectives of Advertising
Broadly speaking these can be classified as
1.Inform
2.Persuade
3.Remind
4.Reinforce
Communication Phases in Adv.

Awareness

Comprehension

Acceptance

Preference

Ownership

Reinforcement
Characteristics of Effective Ads
Effective ads work on two levels
 They should satisfy consumers’
objective by engaging them and
delivering relevant message
 Helps the advertiser reach its goals
3 Broad dimension of Effective Ads
Strategy

Execution Creativity
Advertiser – Agency Relationships
Using an in House Agency
Benefits
 Complete control over all agency
functions
 Agency focuses on only your products
thus developing expertise
 Cost effectiveness
Using an Independent Agency
Benefits
 Objective and well rounded input
 Better talent and creativity due to
experienced staffing
 Tailored management of all activities
Types of Advertising Agencies
 Full Service Agency
 Limited Service Agency
 Creative Boutiques
 Media Buying Services
 Specialized Agencies
Agency Structure
 Account management
 Creative development and production
 Media Planning and Buying
 Account planning and research
Hiring an Agency
What to look for…
 Competence – does they do quality
work?
 Expertise – Do they know your
industry? Your markets? Your
products?
 Reputation – What others say about it?
Hiring an Agency
What to look for…
 Compatibility –
 Expertise – Do they know your
industry? Your markets? Your
products?
 Reputation – What others say about it?
Advertising Planning Process
Analyze The Current
Situation

Define The Audience Develop & Execute Develop & Execute

Creative Strategy Media Strategy

Develop Marketing Goals

And a marketing Plan

Develop
advertising Set the
Goals and Advertising Evaluate Advertising
advertising Budget Effectiveness
plans
Audience Analysis
and Buyer
Behavior
Pressure on adv. in three areas

 Advertisers are looking for greater

Accountability
 Markets are becoming exceedingly
fragmented
 More competition
Benefits of clear consumer insights

 Less wastage
 Greater Effectiveness
 Improved buyer-seller relationship
Why Consumers Buy??
Consumer buying is influenced by three
major influences
 Psychological Influences
 Social and Interpersonal Influences
 Situational Influences
Psychological Influence
Needs &
Motives

Consumer
Buying

Personality
Attitude &
& Self
Lifestyle
Concept
Social & Interpersonal Influence
Culture

Consumer
Buying

Reference
Social Status
Group
Social & Interpersonal Influence

Cultural factors

Culture Sub Culture

Basic values, perceptions, wants people with shared values
and behaviors learned from system based on common life
family and other institutions experiences and situations

Social Class
Relatively permanent and ordered
divisions in a society whose members
share similar values, interest and
behaviors
Social & Interpersonal Influence

Social Factors

Groups Family

Roles & Statuses

Opinion Leaders:- Person within a reference group who, because

of special skills, knowledge, personality, or other characteristics, exerts
influence on others
Social & Interpersonal Influence

Age &
Stage in
Lifecycle

Personality
& Self Occupation
Concept
Consumer
Buying

Economic
Lifestyle Circums-
tance
Situational Influence

Physical
Surrounding

Antecedent Social
State Surrounding
Consumer
Buying

Task Temporal
Definition Perspective
How Consumers Buy??
This involves the study of
 Perception
 Learning
 Decision Making
How Consumers Buy??
Three Perceptual processes
 Selective Attention
 Selective Retention
 Selective Distortion
How Consumers Buy??
Learning
 Cognition
Learning through mental activity
 Conditioning
Learning to respond in a certain
way to a given stimulus
Decision Making
1. Problem Recognition

5. Post purchase behavior 2. Information search

4. Purchase Decision 3. Evaluation of

alternatives
Organizational Buying
Organizational buying centers
 Initiator
 Influencer
 Decider
 Gatekeepers
 Purchaser
 User
Segmentation,
Targeting &
Positioning
Target Marketing
“Selecting a certain group of consumers in a
broad market and aiming products and
advertising at them”
Why Target Marketing???
Helps identify marketing opportunities better
The seller can develop right offer for the right
market
The price, distribution & adv. Can be adjusted
to reach the consumers effectively
They can focus on buyers whom they have the
greatest chances to satisfying
 Market Segmentation
1. Identify Segmentation
Variable & segment the
market
2. Develop profiles of Market Targeting
resulting segments 3. Evaluate the
attractiveness of each
segment
4. Select the target
Market Positioning segment
5. Identify possible
positioning concepts
6. Select, develop &
communicate the
chosen positioning
Major Segmentation Methods
1.Geographic Segmentation
2.Demographic Segmentation
3.Psychographic Segmentation
4.Behavioral Segmentation
Meaningful Segments
To be useful segments must be;
1.Measurable
2.Substantial
3.Accessible
4.Differentiable
5.Actionable
Attractive Segments
Important factors in selecting and prioritizing
attractive segments include the following;
1.Profitable opportunities
2.Growth Potential
3.Acceptable Risk
4.Acceptable entry and exit barriers
Target Marketing Options
1.Undifferentiated / Mass Marketing
2.Differentiated / Segment Marketing
3.Niche Marketing
4.Local Marketing
5.Individual Customer Marketing