UNIT-1

Advertising Management

Sem: 3
Mansi Tyagi
INTRODUCTION
TO
ADVERTISING
 Definition
• a form of marketing communication used
to encourage, persuade, or manipulate
an audience (viewers, readers or
listeners; sometimes a specific group) to
take or continue to take some action
 Def” of Advertising
• According to “Philip Kotler” & American
Marketing Association. The advertising is
any paid form of non personal
presentation of
• Ideas
• Goods
• Services by an identified sponsor that is
called Advertising.
 Defining Modern Advertising
• Advertising is paid • Five basic
persuasive components:
communication 1. Paid communication
• Uses nonpersonal 2. Sponsor is identified
mass media to reach 3. Tries to persuade or
influence
broad audiences to
4. Reaches a large
connect an identified
audience
sponsor with a target
5. Conveyed through
audience impersonal mass
media
5 M’s OFof advertising:
5 M’s ADVERTISING

MONEY

MISSION MESSAGE

5 M’s

MEASURE
MENT
MEDIA
5 M’s OF ADVERTISING
• Mission,
– the main idea or selling proposition that they
want to propagate to the target
• Money,
– factors such as market share and consumer
base play a significant role in budget
allocation for an advertisement
• Message,
– needs to come up with a tagline and a
campaign
• Media,
– the mode of communication
– the reach and the impact
– the timing
• Measurement
impact of the advertisement through
– market research and
– by analyzing sales figures
NATURE AND SCOPE
OF
ADVERTISING
 Nature of Advertising
• A persuasive message.
• Carried by a non-personal medium.
• Paid for by an identified sponsor.
• One way communication.
• Supports other promotional efforts.

• MESSAGE MEDIUM ADVERTISING

• Consists of all activities involved in
presenting to an audience a non-personal,
sponsor-identified, paid-for message
about a product or organization.
• Advertising is distinguished from other
forms of marketing communications:
– It has a verbal and/or visual message.
– The sponsor of the message is identified.
– Delivery is through recognizable (usually
mass) media.
– There is payment by the advertiser to the
media for carrying the message.
 The Key Players
• Uses advertising to send
• Advertiser out a message about its
(client) products
• Initiates the advertising
• Agency effort by identifying a
marketing problem
• Media • Approves audience, plan
and budget
• Supplier • Hires the advertising
agency
• Audience
 The Key Players
• Advertiser • Has strategic and
creative expertise,
(client) media knowledge,
workforce talent, and
• Agency negotiating abilities
– Advertising
• Media department

• Supplier
• Audience
 The Key Players
• Advertiser • The channels of
communication that carry
(client) the message to the
audience
• Agency • Are also companies or
huge conglomerates
• Media • Mass media advertising
can be cost effective
• Supplier because the costs are
spread over the large
• Audience number of people the ad
reaches
 The Key Players
• Advertiser • Assist advertisers,
agencies, and the
(client) media in creating and
placing the ads
• Agency • Vendor services are
often cheaper than
• Media those in-house
• Supplier
• Audience
 The Key Players
• Advertiser • The desired audience for
the advertising message
(client) • Data-gathering
technology improves
• Agency accuracy of information
about customers
• Media • Advertisers must
recognize the various
• Supplier target audiences they are
talking to and know as
• Audience much about them as
possible
Advertising communication process

A manufacturer ,retailer or service organisation.

Prepared by an ad agency using artwork, music etc

Newspapers, TV, radio, magazines etc.

Decoding and adoption of the message depending on the attitudes,

values, experiences etc.

Specific market audience with geographical, demographical and

psychological characteristics.
 Advertising Functions
Informing

Persuading

Reminding

Adding Value

Assisting Other Company Efforts 19

19
 The Functions of
Advertising
• Builds awareness of products and Brands

• Creates a brand image

• Provides product and brand information

• Persuades people

• Provides incentives to take action

• Provides brand reminders

• Reinforces past purchases and brand

experiences
 TYPES
OF
ADVERTISING
 Types of Advertisement
• Out-Door Advertisement
• In-Door Advertisement
• Non-Product Advertisement
• Radio Advertisement
• T.V Commercial
• National Advertisement
• International Advertisement
• Retail Advertisement
• Classified Advertisement
• Local Advertisement
 Cont………
• Brand Advertisement
• Covert Advertisement
• Infomercials Advertisement
• Celebrities Advertisement
• Online advertising
• Surrogate Advertising
• Broadcast advertising
• Public Service Advertising
• Local Advertisement
 Out-Door Advertisement
• Bill-board and message painted on the
side of buildings are common forms of
out-door advertising, which is often used
when quick, simple, ideas are being
promoted.
 Outdoor advertising
• use of different tools to gain customer’s
attention.
– Billboards: The billboards are present all
around the city but the content should be such
that it attracts the attention of the customer
– Kiosks: The kiosks are an easy outlet of the
products and serve as information outlets for
the people too
– Events & Tradeshows: Organizing events
such as trade fairs and exhibitions for
promotion
 In-Door Advertisement
• This kind of advertisement provide the
best opportunity of putting over a
reasoned selling argument. The
advertisement are addressed to the
reader, listener and viewer at a time of
leisure when he or she can observe the
message.
• Product advertising:
– Designed to promote the sale of a specific
product or service
– May be direct action  quick-response
– May be indirect action  over a longer time

• Institutional or corporate advertising:

– Promotes the firm or tries to create a positive
image
– May be customer-service
– May be public-service
• Primary demand advertising:
– Intended to stimulate use of a category of products
– Pioneering advertising  Primary demand done in
the introductory stage of PLC

• Selective demand advertising:

– Intended to encourage purchase of a particular brand
or the products and services of a specific firm
– Comparative advertising  Direct or indirect
comparisons to a rival brand
 Other Types of Advertising
• Brand advertising
• Retail or Local advertising
• Direct-Response advertising
• Business-to-Business advertising
• Institutional advertising
 Print Advertising
• used for advertising since long.
• E.g.- newspapers and magazines
• Using the print media, brochures and fliers.
• advertising space and the cost depends on
several factors.
– The quantity of space,
– the page of the publication,
– and the type of paper
 Painted Hoardings
• Commonly such types of hoardings are painted on large
studios with the help of line drawings and oil painting.
• Usually to advertise upcoming albums or movies.
• Hand painted & Graphical machines both are used to
make painted hoarding.
 Digital Hoardings
• Created from computer programs and software.
• Can be designed to display running text, images and
other contents.
• Can display several different displays from the same
company, and even provide several companies.
 Mobile Hoardings
• Movable
• Difficult to ignore.
• Can be placed wherever there is heavy foot traffic due to
an event – including convention centers, train stations,
airports and sports arenas.
• Information is retained through repetition.
 Inflatable Hoardings & Multi-
purpose Hoardings
• An inflatable framework with an attached banner ad.
• Most appear near sports events or exhibitions.

• If the hoardings have some extra feature like telecom

antennas or power wiring, that comes under Multi-
purpose hoardings.
 Broadcast Advertising
• very popular all around the world.
• consists of television, radio, or Internet
advertising.
• The cost of the advertisement depends on
– the length of the ad and
– the time at which the ad would be appearing.
• Radio advertising is not what it used to be after
the advent of television and Internet, but still
there is specific audience for the radio ads too.
The radio jingles are quite popular in sections of
society and help to sell the products.
 Covert Advertising
• This is a unique way of advertising
• the product or the message is subtly
included in a movie or TV serial.
• There is no actual ad, just the mention of
the product in the movie.
• For example, TATA safari covert
advertising in “Singham returns”
 Covert Advertising
• This is a unique way of advertising
• the product or the message is subtly
included in a movie or TV serial.
• There is no actual ad, just the mention of
the product in the movie.
• For example, Tom Cruise used the Nokia
phone in the movie Minority Report.
 Public Service Advertising
• advertising is for the public causes.
• There are a host of important matters
such as AIDS, political integrity, energy
conservation, illiteracy, poverty and so on
all of which need more awareness as far
as general public is concerned.
• This type of advertising has gained much
importance in recent times and is an
effective tool to convey the message.
Public service advertising
It is directed at the social welfare of
the community or nation.
 Brand Advertising
• the process of making the public aware of
a particular brand and its features so that
they will continue to buy it:
• Brand advertising is the promotion of
products and services offered by a specific
brand. It is used primarily to create focus
on a particular person, product or service
and what consumers identify them with.
 Online advertising
• Online advertising is the newest and
fastest growing way to advertise. The
Internet now provides everything from
links on sites, to banner ads on sites, to
small ads on sites, to pay per click
advertising.
 Retail or Local advertising
• Significant smaller businesses/companies
• do not sell over the Internet and therefore do not
have a global marketplace
• Local media sites are the best ways to advertise for
local businesses
• Advertising using fliers, mailers, postcard coupons,
• is a great way to connect with residents in your
business' local area.
• A great advantage it's a great way to connect with
new movers in the area that are looking for
businesses for the first time.
 Direct-Response advertising
• prospective customer is urged to respond
immediately and directly to the advertiser,
through the use of a 'device' provided in the
advertisement.
• These devices (called direct response
mechanisms) include a
(1) coupon to cut and mail,
(2) business reply card,
(3) Toll-free telephone number, or, on the internet,
(4) hotspot to click.
Most retail sale advertisements are direct
response ads in one way or the other.
 Celebrities Advertisement

• Although the audience is getting smarter

and smarter and the modern day
consumer getting immune to the
exaggerated claims made in a majority of
advertisements, there exist a section of
advertisers that still bank upon celebrities
and their popularity for advertising their
products.
 Institutional advertising
• aimed at creating an image, enhancing
reputation, building goodwill, or advocating
an idea or the philosophy of an
organization, instead of sales promotion.
• When employed by an organization to
market itself (instead of its products), it is
called corporate advertising.
The Advertising Management Process

Advertising Strategy
• Setting Objectives
•Formulating Budgets
•Creating Ad messages
•Selecting Ad Media and Vehicles

Strategy Implementation

Assessing Ad Effectiveness 56
56
 ADVERTISING
APPROPRIATION
• The portion of the total marketing budget
that is allocated to advertising over a
specific time period.
• The advertising appropriation policy based
on a number of approaches.
• Advertising appropriation is also
sometimes referred to as advertising
budget.
 PROCESS
OF
ADVERTISING
 Advertising Planning Framework:

MESSAGE DECISION:
•Message
strategy
OBJECTIVE SETTING: BUDGET DECISION: •Message
execution CAMPAIGN
•Affordable
EVALUATION
•Communication Approach
Objective •Percent of sales •Communication
•Sales Objective •Competitive parity impact
•Objective & task •Sales impact
MEDIA DECISION:
Reach ,frequency,
impact, timing,
media vehicles or
types
 Step:1: setting advertising objective

The advertising objectives must be stated clearly in a precise

and measurable terms. The objectives stated clearly and
precisely enable the advertiser to measure the extent upto
which the objectives have been met or achieved. The
advertising objectives can be “sales oriented” or
“communication oriented”. Although the long term
objective of each ad is to have an increase in sales, all ad
campaigns are not designed with this specific objective.
Some ad campaigns may focus on increasing the
awareness about the product or service, changing the
attitude, informing the new product etc.
 Step:2: setting the advertising budget

Methods:
 Affordable approach
 Percentage of sales method
 Competitive parity method
 Objective & task method
 Step:3: Creating advertising message

Just to gain and hold attention, advertising messages must be

better planned, more imaginative, more entertaining and
more rewarding to consumers.

“creativity plays an important role in developing effective

message.”

A creative strategy focus on what the advertising message

says or communicate and guides the development of all
messages used in the advertising campaign.
 Advertising Appeal:
The advertising appeal refers to the basis or approach
used in the advertisement to attract the attention or
interest of consumer and to influence their feelings
towards the product, service or cause.

Advertising appeals can be broken down into 3:

 Informational appeal
 Emotional appeal
 Moral appeal
Step:4: Media planning:
A media planner needs to answer the following
question:

 What audiences do we want to reach?

 When & how to reach them?
 Where to reach them?
 How many people should be reached?
 How often do we need to reach them?
 What will it cost to reach them.
 Types of Media Vehicles:
 Print media: Newspaper, magazines, pamphlets,
visiting cards, yellow pages etc.
 Broadcast media: Radio, T.V, Cinema.
 Out door Advertising: Bill boards, hot air
balloons, wall writings, hoardings etc.
 Transit advertising: buses, loud speakers
 Specialty advertising: T-shirts, caps, cups etc.
 Internet
Step:5:Evaluating the effectiveness of advertisements:
The advertising program should evaluate both the
communication effect and the sales effect of advertising
regularly.
Measuring the communication effects of an advertisement-
copy testing- tells whether the ad is communicating well.

The sales effect of advertising are often harder to measure

than the communication effect because sales are effected
by many factors besides advertising- such as product
features, price and availability.
 PROCESS
OF
ADVERTISING
• Step 1 – Briefing
• Step 2 - Set the Objective
• Step 3 – Research
• Step 4 - Target Audience
• Step 5 - Media Selection
• Step 6 - Sett the Budget
• Step 7 - Designing n Creating the Ad
• Step 8 - Perfection
• Step 9 - Place n Time of Ad
• Step 10 – Execution
• Step 11 – Performance
• Step 1 - Briefing:
the advertiser needs to brief about the
product or the service which has to be
advertised and doing the SWOT analysis
of the company and the product.

• Step 2 - Knowing the Objective:

one should first know the objective or the
purpose of advertising. i.e. what message
is to be delivered to the audience?
• Step 3 - Research:
involves finding out the market behavior, knowing
the competitors, what type of advertising they are
using, what is the response of the consumers,
availability of the resources needed in the
process, etc.

• Step 4 - Target Audience:

identify the target consumers most likely to buy
the product. The target should be appropriately
identified without any confusion. For e.g. if the
product is a health drink for growing kids, then the
target customers will be the parents who are going
to buy it and not the kids who are going to drink it.
• Step 5 - Media Selection:
one should select an appropriate media for
advertising so that the customers who are to be
informed about the product and are willing to buy
are successfully reached.

• Step 6 - Setting the Budget:

advertising budget has to be planned so that
there is no short of funds or excess of funds
during the process of advertising and also there
are no losses to the company.
• Step 7 - Designing and Creating the Ad:
first the design that is the outline of ad on
papers is made by the copywriters of the
agency, then the actual creation of ad is
done with help of the art directors and the
creative personnel of the agency.

• Step 8 - Perfection:
then the created ad is re-examined and the
ad is redefined to make it perfect to enter
the market.
• Step 9 - Place and Time of Ad:
the next step is to decide where and when
the ad will be shown.
The place will be decided according to the
target customers where the ad is most
visible clearly to them.
The finalization of time on which the ad
will be telecasted or shown on the
selected media will be done by the traffic
department of the agency.
• Step 10 - Execution:
finally the advertise is released with perfect
creation, perfect placement and perfect timing in
the market.

• Step 11 - Performance:
the last step is to judge the performance of the ad
in terms of the response from the customers,
whether they are satisfied with the ad and the
product, did the ad reached all the targeted
people, was the advertise capable enough to
compete with the other players, etc. Every point
is studied properly and changes are made, if any.
 STP:
STRATEGY
FOR
ADVERTISING
 STP-STRATEGY
FOR
ADVERTISING
Deciding on a marketing communications
strategy is one of the primary roles of the
marketing manager and this process
involves some key decisions about:
•who the customer is,
•how to contact them, and
•what the message should be.
 Segmentation
Dividing the marketing into distinct groups
Drill –I:
• Who are the potential customers?
• How many sub-groups should you divide them
into?
• How do these groups differ?
Drill –II:
• What are their media consumption habits?
• What are their expectations and aspirations?
• What are their priorities?
• What are their buying habits?
• Are they likely to have children?
• How much money do they give to charity?
• How can you help them?
Marketing Research Method for
Segmentation
• Sales analysis and buying patterns
• Questionnaires
• Desk research
• Website statistics, especially social media
• Focus groups
• Face-to-face interviews
• Specialist market research companies
 Targeting
Deciding which of these groups to
communicate with, and how to talk to them
• process of communicating with the right
segment(s) and
• ensuring the best possible response rate.
• The methods you use to target your
audience must relate to your marketing
plan objectives –
– are you trying to generate awareness of a
new product? OR
– attract business away from a competitor?
 Targeting Process
• Evaluation of media channel
– Consider the reach,
– Frequency,
– Media impact and
– Target customer exposure.
• Deciding which media channel to use
– Media choice is a matter of compromise
between volume of people versus the
personalization of the message
• Ensuring your message reflects the stages of
the purchasing funnel
– Identifying the key stages in the customer journey and
ensuring communications messages are personalized
and relevant
• Integrated Marketing Communications
– All ads across all media work together towards a
common goal by using similar messaging and 'look
and feel‘
• Getting the best response
– message is relevant and clear
– Objectives are addressed clearly
 Positioning
How the product or brand should be
perceived by the target groups
BRANDING AND MESSAGING-
• unique selling points (USPs)

CORPORATE IDENTITY
• ensure that your branding is used in a consistent
way throughout the company.
Who is handling relations in organization/company ?

Functions of An Advertising Manager

 Planning and Budgeting

 Administration and Execution
 Coordination with other departments
 Coordination with outside agencies
and services
 Planning and Budgeting
 India’s 10 leading advertisers by media spend:

 Hindustan Lever($376 m)
 Paras Pharmaceuticals ($120 m)
 Procter & Gamble ($114 m)
 Coca-Cola company ($95 m)
 Godrej industries ($80m)
 Colgate-palmolive ($67 m)
 Pepsico ($62 m)
 Patanjali
 Nirma chemicals ($52 m)
 Nestle ($50 m)
 Dabur India ($49 m)
 India’s 10 leading advertising/PR companies of India:

 Ogilvy & mather

 J walter Thompson India
 Mudra Communivation Pvt Ltd
 FCB Ulka advertising Ltd.
 Rediffusion- DY&R
 Erickson India Ltd.
 RK Swamy/BBDO advertising Ltd.
 Grey worldwide(I) Pvt. Ltd.
 LEO Burnett India Pvt Ltd.
 Contract advertising India Ltd.