SSIM_II

8/4/2019 SSIM_II

1/39

SPECIAL STUDIES IN MARKETING II

8/4/2019 SSIM_II

2/39

Communication Process With Reference To

Advertising

Communication

Advertising is a form of communication intended to persuade an audience

(viewers, readers or listeners) to purchase or take some action upon

products, ideals, or services.

It includes the name of a product or service and how that product or

service could benefit the consumer, to persuade a target market to

purchase or to consume that particular brand.

These brands are usually paid for or identified through sponsors and

viewed via various media.

8/4/2019 SSIM_II

3/39


Advertising

Communication

Communication is a process whereby information is enclosed in a package

and is channeled and imparted by a sender to a receiver via some medium.

The receiver then decodes the message and gives the sender a feedback.

All forms of communication require a sender, a message, and an intended

recipient; however the receiver need not be present or aware of the sender's

intent to communicate at the time of communication in order for the act of

communication to occur.

Communication requires that all parties have an area of communicative

commonality.

8/4/2019 SSIM_II

4/39


Advertising

8/4/2019 SSIM_II

5/39

Models of Communication AIDA

A - Attention (Awareness): attract the attention of the customer.

I - Interest: raise customer interest by focusing on and demonstrating

advantages and benefits (instead of focusing on features,

as in traditional advertising).

D - Desire: convince customers that they want and desire the productor service and that it will satisfy their needs.

A - Action: lead customers towards taking action and/or

purchasing.

8/4/2019 SSIM_II

6/39

Models of Communication Hierarchy of Effects

8/4/2019 SSIM_II

7/39

Models of Communication Innovation Adoption

8/4/2019 SSIM_II

8/39

Models of Communication Information Processing

8/4/2019 SSIM_II

9/39

Communication model for rural and urban communication

8/4/2019 SSIM_II

10/39

Integrated Marketing Communication

Integrated Marketing Communication is a concept of marketing

communications planning that recognizes the added value of a

comprehensive plan that evaluates the strategic roles of a variety of

communication disciplines - For Example ,General advertising , direct

response, sales promotion and public relations and combines these

disciplines to provide clarity , consistency and maximum communicationsimpact ( through seamless integration of discrete messages)

8/4/2019 SSIM_II

11/39


Advantages / Relevance

Offers an integrated approach to marketing communications

Provide greater consistency to communications

Reducing media waste

8/4/2019 SSIM_II

12/39


Components of IMC

Direct Marketing : Includes direct mail , tele- marketing and direct

response advertising

Sales Promotions : Used to get consumers to try or repurchase

the brand and to get retail trade to carry and push the brand.

Consumer promotions Coupons, sampling , premiums, price packs

sweepstakes, low-cost financing deals and rebates.

Trade promotions - Slotting allowances, allowances for featuring

the products in retail advertising, display and merchandising

allowances.

8/4/2019 SSIM_II

13/39


Components of IMC

Retail Advertising : Has a direct , action objectives

Co-operative Advertising :

- Vertical- Horizontal

- Ingredient producer co-op

Reminder ,Point of purchase and Speciality advertising

In- Store Advertising and Merchandising

Industrial marketing (Business to business)

8/4/2019 SSIM_II

14/39


Components of IMC

Public Relations

- New stories and media editorial coverage

- Event and Sports marketing

- Cause related marketing

- Product placement

- Contests

8/4/2019 SSIM_II

15/39

Defining Advertising Goals for Measured Advertising

Results (DAGMAR)

A precise method for selecting and quantifying goals and for using

those goals to measure performance.

DAGMAR approach can be summarized in its statement Defining an

advertising goal.

An advertising goal is a specific communication task, to be accomplished

among a defined audience , in a given period of time.

8/4/2019 SSIM_II

16/39

DAGMAR model suggests that the ultimate objective of advertising must

carry a consumer through four levels of understanding:

from unawareness to Awarenessthe consumer must first be aware

of a brand or company

Comprehensionhe or she must have a comprehension of what the

product is and its benefits

Convictionhe or she must arrive at the mental disposition or conviction

to buys the brand

Actionfinally, he or she actually buy that product


Results (DAGMAR)

8/4/2019 SSIM_II

17/39


Results (DAGMAR)

8/4/2019 SSIM_II

18/39

Advertising Can Shape Corporate Images

8/4/2019 SSIM_II

19/39

Marketing Objectives

Generally stated in the firms marketing plan

Achieved through the overall marketing plan

Quantifiable, such as sales, market share, ROI

To be accomplished in a given period of time

Must be realistic and attainable to be effective

8/4/2019 SSIM_II

20/39

Communications Objectives

Derived from the overall marketing plan

More narrow than marketing objectives

Based on particular communications tasks

Designed to deliver appropriate messages

Focused on a specific target audience

8/4/2019 SSIM_II

21/39

TheEconomy

Distribution Technology Price Policy

Promotion CompetitionProductQuality

Price PolicyTechnologyDistribution

ProductQuality

CompetitionPromotion

Many Different Factors Affect Sales

$ALE$

8/4/2019 SSIM_II

22/39

Sales As Advertising Objectives

8/4/2019 SSIM_II

23/39

Direct Response Ads Seek Sales

8/4/2019 SSIM_II

24/39

Many Ads Seek Communications Objectives

8/4/2019 SSIM_II

25/39

Advertising

Advertising is a paid, one-way communication

by an identified sponsor, designed to influence

the attitudes or decisions related to a product,service or an idea

8/4/2019 SSIM_II

26/39

Advertising Management

Advertiser

Consumers & Markets

Competition

Government

Research Agency

Media

Advertising Agency

8/4/2019 SSIM_II

27/39

Features of Advertising

Source of InformationSource of Information

Identified SponsorIdentified Sponsor

Paid Form ofPromotionPaid Form ofPromotion

Different FormsDifferent Forms

Non PersonalNon Personal

PersuasionPersuasion

Target AudienceTarget Audience

Integral part of MarketingIntegral part of Marketing

8/4/2019 SSIM_II

28/39

Launch brand

Increase market share

Increase consumption

Increase profitability

Increase Loyalty

Functions of Advertising

8/4/2019 SSIM_II

29/39

Tohelp protectyour privacy, PowerPointprevented thisexternalpicturefrom being automatically downloaded.To download and display thispicture,click Optionsin the MessageBar, and then click Enableexternalcontent.

An advertising agency is:

An independent business organisation composed of creative

and business people who develop, prepare and place advertising onadvertising media for sellers seeking to find customers for their goods

and services.

-American Advertising Agency Association (AAAA)

Advertising Agency Definition

8/4/2019 SSIM_II

30/39

Functions of an Advertising Agency

Big agencies such as HTA, Lowe, O&M are called full service

agencies because they are ONE STOP SHOP for all services that

are offered to the clients. Todays agencies are providing total

communications packages for the clients brands.

They are acting as the custodians of the client brands.

CLIENT SERVICING

Also calledaccount executives. Acts as the link between the agency

and the client. He suggests what the client exactly wants to his

ad agency. He is the person who carries the client brief and is also

responsible for the approvals.

Advertising Agency Functions

8/4/2019 SSIM_II

31/39

CREATIVE DEPARTMENT

Under the creative director are a team of copywriters and visualizers

who arrive at the big idea. Accordingly the storyboard is prepared

and script work is done. The final layout is sent for approval to the client.

PRODUCTION DEPARTMENT

The production department is responsible to convert the storyboard into

a finished layout if its for print medium orOutdoor. However the TVC will

be outsourced to a production house .The final storyboard is made into atechnical storyboard before it is sent for shooting.


8/4/2019 SSIM_II

32/39

MEDIA DEPARTMENT

The Media Planner along with Media manager and brand manager

of the client prepares the final media budget and purchases insertions

for print media (space buying) or purchases radio spots or purchases

TV time if its on television. Appropriate media mix is developed.

RESEARCH DEPARTMENT

In fact research department functions before and after a commercial

is made for pre-testing and post-testing of media respectively.

Consumer insights and brand usages are also tested at times,

according to client in many instances.


FINANCE DEPARTMENT

This department looks after the accounts (financial records) for

the agency

8/4/2019 SSIM_II

33/39

Advertising Agency

8/4/2019 SSIM_II

34/39

Advertising Agency Structure

8/4/2019 SSIM_II

35/39

Advertising Budget

Sets limit on minimum & maximum of advertising

expense for the year

Keeps expenditure within set parameters

Prudent use of advertising money over differentmedia

Facilitates approval of top management

Helps in evaluation of effectiveness of advertising

8/4/2019 SSIM_II

36/39

Advertising Appropriation

Amount allocated for advertising in an accounting period.

It may be based on any one of the methods given under advertising

appropriation methods.

- Affordable method

- Competitive parity method

- Objectives and task method

- Percentage of sales method

8/4/2019 SSIM_II

37/39

Methods of Budgeting / Advertising Budgeting Methods

Theoretical ApproachMarginal Analysis

Increase advertising budget as long as the profit from

sales

increase are more than cost of advertising and better

returnthan spend on any other marketing mix component

8/4/2019 SSIM_II

38/39


Practical Approach

Percentage of Sales

Most commonly used

Stage of life cycle impact (New vs.Established)

Competitive Parity

Objective and Task

Advertising Objective driven tasks

Media Budget required for the tasks

8/4/2019 SSIM_II

39/39


Regression Analysis

- Advertising and sales linkage in past data

- Competitive advertising

Experimentation based budgeting- Various levels tested in market

Documents

SSIM_II