Advertising

This is the mass media method of marketing communication and provides exposure to the largest, most geographically dispersed audience at the lowest cost per head. That being said, advertising costs can ad up quickly with mediums like television, radio and even online advertising which can be prohibitively expensive for many businesses. Other traditional forms of paid advertising include newspapers and magazines, the Yellow Pages, billboards, signs and posters. As well, advertising on buses, benches, gas pumps and even public restrooms is in vogue today. Basically, any medium which provides an opportunity to target "eyes and/or ears" can be a venue for advertising and you can see examples of successful promotion in the most unlikely places.

The Marketing Communications or Promotional Mix

Your marketing plan will be executed by using the tactical elements of the Marketing Communications, or Promotions Mix.

Definitions: Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Personal selling - Personal presentation by the firms sales force for the purpose of making sales and building customer relationships. Sales promotion - Short-term incentives to encourage the purchase or sale of a product or service. Public relations - Building good relationships with the companys various publics by obtaining favorable publicity, building up a good "corporate image", and handling or heading off unfavorable rumors, stories, and events. Direct marketing - Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.

Reaches large, geographically dispersed audiences, often with high frequency; Low cost per exposure, though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales; Impersonal, oneway communication; Expensive

Most effective tool for building buyers preferences, convictions, and actions; Personal interaction allows for feedback and adjustments; Relationship-oriented; Buyers are more attentive; Sales force represents a long-term commitment; Most expensive of the promotional tools

May be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term brand preferences

Highly credible; Very believable; Many forms: news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Often the most under used element in the promotional mix; Relatively inexpensive (certainly not 'free' as many people think--there are costs involved)

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-suited to highlytargeted marketing efforts

When deciding upon your unique marketing communications mix, you should also consider the Product Life Cycle. Here are some general guideline as to how and when to emphasize different parts of the mix according to the stages of a typical product life cycle:

Product Life Cycle

Pre-Introduction: Light advertising, pre-introduction publicity Introduction: Heavy use of advertising, public relations for awareness, sales promotion for trial Growth: Advertising, public relations, branding and brand marketing, personal selling for distribution Maturity: Advertising decreases, sales promotion, personal selling, reminder & persuasion Decline: Advertising and public relations decrease, limited sales promotion, personal selling for distribution Next let's briefly walk through each of the various parts of the marketing communications mix.

Promotional Mix
Advertising

Elements of the Promotional Mix

Public Relations

Personal Selling

Sales Promotion
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Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

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Advertising Media
Traditional Advertising Media Electronic Advertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines

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Advertising
Advantages
Ability to reach large number of people Cost per contact is low

Disadvantages
Total cost is high

Can be micro-targeted

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Public Relations
The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.
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Public Relations
Functions of Public Relations
Evaluates public attitudes Executes programs to win public

Identifies areas of public interest

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Publicity
Public information about a company, good, or service appearing in the mass media as a news item.

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Sales Promotion
Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.

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Sales Promotion
Sales Promotion Targets

End Consumers Trade Customers

Company Employees

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Sales Promotion
Free samples Contests

Premiums
Trade Shows

Popular Tools for Consumer Sales Promotion

Vacation Giveaways

Coupons
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Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.

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Personal Selling
Traditional Selling Relationship Selling

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Learning Objective
Describe the communication process.

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Communication
The process by which we exchange or share meanings through a common set of symbols.

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Marketing Communication
Categories of Communication

Interpersonal Communication

Mass Communication

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The Communication Process

As Senders
Inform

As Receivers
Develop messages

Persuade
Remind

Adapt messages
Spot new communication opportunities

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The Sender and Encoding

The originator of the message in the communication process. The conversion of a senders ideas and thoughts into a message, usually in the form of words or signs.

Sender

Encoding

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The Communication Process

Noise

Sender

Encoding Message

Message Channel

Decoding Message

Receiver

Message Channel
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Characteristics of Advertising
Advertising
Communication Mode Communication Control Feedback Amount Indirect and non-personal Low Little

Feedback Speed
Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility

Delayed
One-way Yes Yes Fast Same message to all audiences
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Characteristics of Public Relations

Public Relations
Communication Mode Communication Control Feedback Amount Usually indirect, non-personal Moderate to low Little

Feedback Speed
Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility

Delayed
One-way No No Usually fast Usually no direct control
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Characteristics of Sales Promotion

Sales Promotion
Communication Mode
Communication Control Feedback Amount Feedback Speed

Usually Indirect and non-personal

Moderate to low Little to moderate Varies

Message Flow Direction Message Content Control

Sponsor Identification Reaching Large Audience Message Flexibility

Mostly one-way Yes

Yes Fast Same message to varied target
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Characteristics of Personal Selling

Personal Selling
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Direct and face-to-face High Much Immediate Two-way Yes Yes

Reaching Large Audience

Message Flexibility

Slow
Tailored to prospect
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Learning Objective
Explain the goal and tasks of promotion.

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Goals and Tasks of Promotion

Informing Reminding

Target Audience

Persuading
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Goals and Tasks of Promotion

Informing Reminding
PLC Stages: Maturity

PLC Stages: Introduction Early Growth

Target Audience

PLC Stages: Growth Maturity

Persuading
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Goals and Tasks of Promotion

Informative Objective
Increase awareness Explain how product works Suggest new uses Build company image

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Goals and Tasks of Promotion

Persuasion Objective
Encourage brand switching

Change customers perception of product attributes

Influence buying decision Persuade customers to call
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Goals and Tasks of Promotion

Reminder Objective
Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness

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Learning Objective
Discuss the AIDA concept and its relationship to the promotional mix.

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The AIDA Concept

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

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The AIDA Concept

Action
Desire Interest

Attention
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AIDA and the Promotional Mix

Awareness Interest
Very Advertising effective Very effective Very effective Somewhat effective Very effective

Desire
Somewhat effective Very effective Very effective Very effective

Action
Not effective Not effective Very effective Somewhat effective

Public Relations Sales Promotion Personal Selling

Very effective Somewhat effective Somewhat effective

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Learning Objective

Describe the factors that affect the promotional mix.

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Factors Affecting the Promotional Mix

Nature of Product Stage in PLC Target Market Factors

Factors Type of Buying Decision Affecting Choice of Promotion Funds Promotional Mix
Push or Pull Strategy
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Nature of the Product

Factors that influence promotional mix
Product characteristics Business product vs. consumer product Costs and risks

Social risk
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Stage in the Product Life Cycle

Maturity
Sales ($)

Introduction

Growth

Decline

Time

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Product Life Cycle and the Promotional Mix

Sales ($)
Maturity
Introduction Growth Decline

Time
Light Advertising, preintroduction Publicity

Heavy use of advertising, PR for awareness; sales promotion for trial

Advertising, PR, Brand loyalty Personal Selling for distribution

Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive

AD/PR decrease Limited Sales Promotion, Personal Selling for distribution

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Target Market Characteristics

FOR:
Widely scattered market

Informed buyers
Repeat buyers
Advertising Sales Promotion Less Personal Selling
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Type of Buying Decision

Routine
Advertising Sales Promotion Advertising Public Relations

Type of Buying Decision affects Promotional Mix Choice

Not Routine or Complex

Complex

Personal Selling

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Available Funds
Trade-offs with funds available
Number of people in target market Quality of communication needed Relative costs of promotional elements

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Push and Pull Strategies

PUSH STRATEGY
Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer

Orders to manufacturer

PULL STRATEGY
Manufacturer promotes to consumer
Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer

Orders to manufacturer
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Elements in creation of an Advertisement

Message Headlines Copy or body copy Illustrations Message Appeal Layout

Message
Objective of the message To communicate main points in a best way To overcome opposing views of audience To create a persuasive message

Message..
How to structure a persuasive message for effectiveness 1. Order of presentation 2. Conclusion drawing 3. Message sidedness 4. Refutation 5. Verbal Vs Visual

1. Order of presentation
Where to place the strong arguments in the message? Beginning ----Primacy Effect End ----Recency Effect Recall ability is the basis for deciding

2. Conclusion Drawing
Advertiser's own conclusion Audiences own conclusion

Depends upon education/ awareness and complexity of the topic

3. Message Sidedness
One sided: only benefits Two sided: Good & Bad points

More effective when opposite views are also presented

One-Sided Examples

Arbor Mist
Ad Copy: Introducing Arbor Mist: Great tasting wine with a splash of fruit. Just what you've been looking for.

4. Refutation
Special kind of two-sided message Tell both sides and refute negative

Example : Tatasky
Tata Sky - A amir Khan Sardar A d.flv

5. Verbal Vs Visual
Effective use of visuals e.g. Madhya Pradesh Tourism

Lakshmi in Madhy a Pradesh Tourism.flv

Message Appeals
An approach used to attract the attention of consumers to influence their feelings toward the product/ service Anything that create interest

Appeals..
1. Informational / Rational appeal: Consumer utilitarian needs 2. Emotional appeal: Socio/psycho needs 3. Humor appeal: Fun 4. Reminder ads: Show presence 5. Teaser ads: Curiosity

Informational
Feature: focus on dominant traits of product and highly informative Product Popularity News appeal: All announcements Favorable price appeal: Value for money

Informational
(Product popularity appeal)

Part of informational appeal showing the popularity of the product.

Emotional
Focus on consumers social/ psychological needs for purchasing a product 1. Personal feelings:Safety,security, love, joy,fear, pleasure etc. AXE 2. Social feelings: Recognition, status, acceptance etc. K Bajaj Endeavor

Emotional
Social feeling

Bharti A XA Life Insurance Latest A d - TV C .flv

Humor Appeals
Best known Best remembered Set positive mood More used with low involvement products But Distracts from brand and attribute
C amlin Marker F unny Indian C ommercial A dv ertisement.flv

Reminder ads
Just to show presence in the market
Archies cards Usual Pepsi ads

Teaser ads
Designed to build curiosity, interest,excitement about a product Mainly used while introducing new product or name change etc.
New Hero Honda ad or UBI logo change

Advertising Execution
How appeal is presented to consumer Factual message: Industrial products Technical evidence: Colgate Demonstration: HARPIC Comparison: VIM BAR Challenge Testimonial: Own experience BP Animation: Kellogs, All Out, Pillsbury Personality symbol: Dr. Fixit

AIDA Model
Awareness

Interest

Desire

Action

Hierarchy of Effects
Unaware

Aware

Comprehension & Image

Attitude

Action

New Adopter Hierarchy

Awareness

Interest

Evaluation

Trial

Adoption

Lavidge and Steiner model

Awareness Knowledge Liking Preference Conviction Action

Advertising Copy
Text of a print, radio, or television advertising message that aims at catching and holding the interest of the prospective buyer, and at persuading him or her to make a purchase all within a few short seconds. The headline of an advertising copy is said to be the most important part, and quite often a small change in its wording brings disproportionate results. Although a short advertising copy is more common in consumer-product advertising, according to the UK advertising guru David Ogilvy (1911-1999) people do read (and listen or attend to) lengthy advertisements if they are skillfully written. Most advertising copy is based on advertising/consumer research and is composed by professional copywriters hired by advertising agencies. Also called advertisement copy, ad copy, or just copy.

Types of Copy
Scientific copy (Technical specifications are specified. E.g. High involvement goods or durable goods or industrial goods.) Descriptive copy: In a non-technical manner, the product attributes are described. The copy uses direct active sentences. There are short and pithy sentences. It looks very commonplace announcement.

Narrative copy: Here a fictional story is narrated. The benefits of the

product emerge from the story. Maybe, the narrative is humorous. Or else, it has strong appeal. It should make an imprint on our memory.

Colloquial copy: Here informal conversational language is used to convey the message. It could even become a dialogue. In many TV advertisements, we find the colloquial copy.

Humorous copy: Humor has been heavily used in advertising-especially in TV commercials. It is just as heavily suspect. But effective humor makes the advertisement noticeable.

Topical copy comes about when a copy is integrated to a recent

happening or event. Especially during the world cup days, you had ads
like Britannia Khao, World Cup Jao. Endorsement copy here a product is endorsed by an opinion leader who has a large following. I shall be discussing this at length in a later lecture. Questioning Copy: In this copy, several questions are put forward not to seek answers but to emphasize a certain attribute. Prestige Copy The product is not directly advertised. Only a distinguished and favorable atmosphere is created for the sale of the product.

Advertising message and appeals

The most popular and widely accepted need scheme given by A.H.Mashlow

(i) Physiological Needs or Creature Comforts (Hunger, Thirst, Sex, etc.) (ii) Safety Needs (Security, Protection, etc.) (iii) Love Needs (Affection, Belongingness, etc.) (iv) Esteem Needs (Self-Respect, Prestige, Social Approval, Achievement, etc.) (v) Self Actualization Needs (Self-Fulfillment, Self-Experience, etc.)

Appeals and Advertising Message We have mentioned that the advertising message should appeal, directly or indirectly, to those key needs, which influence behavior response. It may be an appeal, a time, an idea or a unique selling proposition. In fact, the message content ultimately formulates some kind of benefit, motive or reason why the audience should respond to, or do, something. The message content refers to what the advertiser has to say to the target audience that will produce the desired response. It may be an appeal, a time, an idea or a unique selling proposition.

Types of Appeals Appeals are broadly classified as rational, emotional and moral appeals. Rational appeals are those directed at the thinking process of the audience. They involve some sort of a deliberate reasoning process, which a person believes would be acceptable to other members of his social group. (i) High Quality: People buy television, stereophonic music systems, furniture, refrigerators, electric gadgets; kitchenware and a host of consumer durables for their high quality.

(ii) Low Price: Many people buy low-priced locally made air conditioners for their homes because they believe that these products will show a product performance similar to, or slightly inferior to, that of nationally reputed brands at higher price. (iii) Long Life, as of a car tyre that will give 30,000 kms, before its utility has been exhausted. (iv) Performance, as of a ballpoint pen that won't release excessive ink or skip under any circumstances. (v) Ease of use, as of a screwdriver with a magnetized tip which clings to the metal head of the screw, or a timer in the kitchen mixer which switches off automatically after a pre-determined time period. (vi) Re-sale Value, as of a two-wheeler scooter. "Bajaj" has a better resale value than any other make. (vii) Economy, in the operating expenses of some brands of refrigerator is greater because they consume less electricity. Many two-wheeler vehicles claim a better mileage per litre consumption of fuel than similar other vehicles.

Emotional appeals are those appeals, which are not preceded by careful analysis of the pros and cons of making a buying.
Emotions are those mental agitations or excited states of feeling which prompt us to make a purchase. Different emotional appeals, which are particularly important from the advertising point of view, are listed below. Following several motivation research studies, it has been found that negative emotional appeals are more effective than positive ones. All brands have rational and emotional credentials. Levi's is youthful, rebellious and sexy. But it offers rational benefits like strength too. One has to balance between rational and emotional arguments.

Negative Emotional Appeals:

An advertiser may try to induce a particular behavioral change by emphasizing either positive or negative appeals, or a combination of both. For example, an advertising campaign to get the target audience to buy fire insurance may stress the positive aspect -low cost relative to other investment, the services the insurance company provides, early settlement of claims, and so on; or it may stress the negative aspect of not getting insurance - the danger of losing one's possessions or the ravages of fire.

Precautions while using the Emotional Route: 1. The advertising should have relevance. If the product needs attribute-based rational Advertising, emotional appeals should be avoided. 2. There should be a natural flow of feelings. 3. Execution should not be exaggerated. The level of emotionality should not exceed that Experienced by the consumer. 4. There is a difference between a consumer's emotions associated with the product / brand and a consumer's emotional reaction to the ad copy itself. Preferably, these two should be compatible.

Fear Appeals: The fear appeal is most important among emotional appeals, and also the most effective. It is said that the message's effectiveness increases with the level of fear it generates.

A recent ad of "Colgate" shows a man not able to bite because of severe toothache, and then suggests the use of " Colgate Salt" to avoid a recurrence of toothache. first building up fear and then offering a solution with other positive appeals of the product advertised. Take the case of life insurance. Fear appeals are still required to sell policies. However, fear appeals fail in the case of the cancer hazard of cigarette smoking, which is often rejected by most smokers.

Moral appeals are those appeals to the audience that appeal to their sense of right and wrong. These are often used in messages to arouse a favorable response to social causes, such as prohibition, adult literacy, social forestry, anti-smuggling and hoarding, consumer protection, equal rights for women, social responsibility projects of corporations, rural development, siding weaker sections of society, employment generation, and so on. There are messages that appeal for generous donations for flood victims and for famine relief operations

Essentials of an Advertisement Appeal

(i) It must be thematically sound. (ii) It must be communicative. (iii) It must be interesting. (iv) It must have credibility. (v) It must have finality and be complete. (vi) It must contain truthful" information.

Art Direction and Production

The Evolution from Words to Pictures

Improved technology Advantages of visuals over text Brand images are build better with visuals Visuals can be protected legally Visuals are more portable than words across cultures Visuals allow placing the brand in a social context
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Illustration
Definition:
The actual drawing, painting, photography, or computer-generated art in the ad.
Attract attention of the target audience Make the brand heroic Communicate product features or benefits Create a mood, feeling, or image Stimulate reading of the body copy Create the desired social context for the brand

Purposes:

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Illustration Components

Size

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Illustration Formats
How the product or brand will appear as part of the illustration
Formats include:
Emphasizing the social context or meaning of the product More abstract formats

Must be consistent with the copy strategy

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Ad in Context Example
Illustrations can place the brand in a social context.

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Strategic and Creative Impact of Illustration

Attracts attention of target segment and stimulates information processing Communicates brand value relative to targets decision making criteria Visually presents the creative strategy Creates a mood for the brand Creates an image for the brand Makes concrete the values and benefits of the brand that may be intangible
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Design

The structure (and plan behind the structure) for the aesthetic and stylistic aspects of a print advertisement.

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Principles of Design
Balance (Formal)

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Ad in Context Example
Formal balance can create a very orderly look and feel.

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Principles of Design
Balance (Informal)

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Ad in Context Example
Informal balance can create desired eye movement through an ad.

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Principles of Design
Proportion

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Principles of Design
Order

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Principles of Design
Unity

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Principles of Design
Emphasis

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Ad in Context Example
Emphasis in an ad will lead the reader to focus on one layout element more than another.

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Layout
1. Thumbnails

2.

Rough layout

3.

Comprehensive

4.

Mechanicals

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Print Production Processes

Letterpress Offset lithography Gravure Flexography Electronic, laser, and inkjet Computer print production
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Typography

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Art Direction and Production in Cyberspace

Cyberspace is its own medium The audience is not passive At present, it is closer to print than TV
Streaming and RSS are improvements

Revision can be done instantaneously Persuasive content versus entertainment is a challenge Consumer generated content (CGC) is making its way into cyberspace (YouTube)
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Art Direction in Television Advertising

TV has changed the face of advertising TV is about moving visuals It can leave impressions, set moods, tell stories It can get consumers to notice the brand TV production is complex, with many people and requires tremendous organizational skills

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The Creative Team in Television Advertising

Agency Participants:
Creative Director (CD) Art Director (AD) Copywriter Account Executive (AE) Executive Producer Producer

Production Company Participants:

Director Producer Production Manager Camera Department Art Department Editors
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Creative Guidelines for TV Advertising

Use an attention-getting opening Emphasize the visual Coordinate the audio with the visual Persuade as well as entertain Show the product

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Production Process for TV Advertising

Preproduction
Multiple activities that occur prior to filming the commercial

Production (shoot)
Activities that occur during filming

Postproduction
Activities that occur after filming to ready the commercial
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Preproduction Process for TV Advertising

Storyboard and script approval

Review of bids from production houses and other suppliers

Budget approval

Creation of a production timetable

Assessment of directors, editorial houses, and music suppliers

Selection of location, sets, and cast

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Production Process:
Filming the commercial, or the shoot The shoot involves large numbers of diverse people:
Creative performers Trained technicians Skilled laborers

Sets often feature tension and spontaneity Typical commercial costs $100,000 to $500,000
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Postproduction Process
Screen dailies

Edit film
Produce search track Review rough cut (agency) Review rough cut (advertiser) Edit offline Edit online

Record announcer
Record music

Mix film and sound

Transfer film to videotape Prepare copies of tape Send tapes to TV stations
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TV Production Options
Videotape

Film

Digital Video (DV)

Live Production

Still Production

Animation
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