ADVERTISING MANAGEMENT

Advertising
Advertising can be defined as any paid from of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor.
Advertising can reach huge audiences with simple messages that present opportunities to
allow receivers to understand what a product is, what its primary functions is and how it
relates to all other similar products.
Advertising can create competitive advantage by providing the communication necessary for
target audiences to frame a product.
Advertising plan is composed, essentially, of three main elements:

The message or what to be said.

The media or how the message will be carried.

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The timing or manner in which the message will be carried.

Advertising Goals
Building Brand Image
Building a strong brand and corporate image is one of the most important advertising goals.
Advertising is critical component of building brand equity.
e.g. Burger King, McDonalds, Nike, Reebok

Providing Information

A retailers store hours, business location, detailed product specification

Objective is to make the purchasing process convenient and simple.

Persuasion
- particular brand is superior
- Can show negative consequences of failing to use a particular brand.

Supporting Marketing Efforts

- to support trade and consumer promotions

e.g. sale or buy-one-get-free, pre-Christmas sale requires effective advertising.

Encouraging Action

- TV commercial that encourages viewers to take action by dialing a toll-free number to

make a quick purchase is an example.

Characteristics of Advertising

Pervasiveness

Amplified expressiveness

Impersonality

Advertising considered to be an impersonal approach as it can reach masses of

geographically dispersed buyers at a low cost per exposure.
Due to its public in nature, it is more often viewed as more legitimate.
Characteristics of Advertising
Communication
Ability to deliver a personal message
Ability to reach a large audience
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Low
High
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Level of interaction
Credibility given by target audience
Costs

Low
Low

Absolute costs
Cost per contact
Wastage
Size of Investment
Control

High
Low
High
High

Ability to target particular audience

Managements ability to adjust the deployment of the tool as circumstances
change

Medium
Medium

Advantages & Disadvantages of Advertising

Advantages of advertising
Advertiser controls the message
Cost effective way to communicate with large
audiences
Effective way to create brand images and
symbolic appeals
Often can be effective way to strike responsive
chord with consumers

Disadvantages of advertising
High costs of producing and running ads
Credibility problems and consumer
skepticism
Clutter
Difficulty in determining effectiveness

Informative Ad

Telling the market about the new product.

Suggesting new uses of other product.

Informing the market of a price change.

Describing available services.

Correcting false impression.

Reducing customer fears.

Building company image.

Explaining how the product works

Persuasive Ad

Building brand preference

Encouraging switching to your Brand

Changing customers perception of product attributes.

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Persuading customer to purchase now.

Persuading customer to receive a sales call.

Reminder Ad

Reminding consumer that the product may be needed near future.

Reminding consumer where to buy it.

Keeping it in customers mind during off-seasons.

Maintaining its top-of-mind awareness (TOMA).

Television Ad
Advantages
Mass Coverage
High Reach
Sight, Sound and Motion
High Prestige
Attention Grabber
Low Cost Per Exposure

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Disadvantages
Low Selectivity
Short Massage Life
High Absolute Cost
High Production Cost
Clutter

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Radio Ad
Types: AM, FM & Cable Radio (Not Applicable in BD)
Advantages
Local Coverage
Low Cost
High Frequency
Flexible
Low Production Cost
Segmented Audience

Disadvantages
Audio Only
Clutter
Low Attention getting
Fleeting Message

Newspaper Ad

Provides Stark Contrast to broadcast media

Can Provide Detailed Product Information
Read by Three Fourth of the Population

Advantages
High Coverage
Low Cost
Short Lead Time for Placing Ad
Timely
Readers Control Exposure can be Used
for Coupons

Disadvantages
Short Life
Clutter
Low Attention getting
Poor Reproduction Capability
Selective Reader Exposure

Magazines

Longer Life Span, Quality is better, Published Periodically

Advantages
Segmentation Potential
Quality Reproduction
High Information Content
Longevity
Multiple Readers

Disadvantages
Long Time Lead For Placement
Visual Only
Lack of Flexibility

Direct Response
Advantages
High Selectivity
Reader Controls Exposure
High Information Content
Opportunities for Repeat exposure

Disadvantages
High Cost Per Contact
Poor Image (Junk Mail)
Clutter

Interactive Ad
Websites: The Main Advantage is Low Cost, Level of Details and the Degree of
Customization
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Advantages
Customized & In-depth Information

Disadvantages
Lack of Emotionality

Outdoor Ad
Advantages
Location Specific
High Repetition
Easily Noticed

Disadvantages
Poor Image
Local Restrictions
Short Exposure Time

Note: For details please see text & reference books.

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