Unit 2- Communication and Advertising

7/27/2019 Unit 2- Communication and Advertising

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UNIT 2:

COMMUNICATION

AND ADVERTISING


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COMMUNICATION

Communication is an exchange of facts, ideas,

opinions, or emotions by two or morepersons- Newman W. H.

Communication is an intercourse of words,letters, symbols or messages and is a way that

one organization member shares meaning andunderstanding with another. Koontz and O`Donnel


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PROCESS OF COMMUNICATION

SENDER RECEIVER

FEEDBACK

ENCODES DECODES

PRE TESTS AND POST TESTS

MEDIUM

MESSAGE

NOISE


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MODEL 1: AIDA MODEL

AWARENESS

INTEREST

DESIRE

ACTION


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MODEL 2: HIERACHY OF EFFECTS


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MODEL 3: INNOVATION ADOPTION

AWARENESS

INTEREST

EVALUATION

TRIAL

ADOPTION


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MODEL 4: INFORMATION PROCESSING

PRESENTATION

ATTENTION

COMPREHENSION

YIELDING

RETENTION

BEHAVIOR


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MODELS OF COMMUNICATION/

TRADITIONAL RESPONSE HIERACHY MODELS


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AAKER AND MYERS COMMUNICATION

MODEL

INFORMATION OR BRAND ATTRIBUTESORBENEFITS

CREATION OF BRANDIMAGE/PERSONALITY

ASSOCIATION OF FEELINGS WITH

BRAND

LINKAGE OF BRAND WITHPEERS/EXPERTS AND GROUP NORMS

REMINDER OF INDUCEMENTABOUT

BRANDTRIAL

AD EXPOSUREBRAND ATTITUDE PURCHASE

BEHAVIOUR

AWARENESS/FAMILIARITY WITH BRAND


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COMMUNICATION MODEL FOR RURAL

AND URBAN COMMUNICATION


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INTEGRATED MARKETING

COMMUNICATIONS

"Integrated marketing communication is astrategic business process used to plan,

develop, execute and evaluate coordinatedmeasurable, persuasive brand communications

programs over time with consumers, customers,prospects, employees, associates and other

targeted relevant external and internalaudiences. The goal is to generate both short-

term financial returns and build long-termbrand and shareholder value"

- Don Schultz of Northwestern University


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FEATURES OF IMC

Shift from Media Advertising

Solves communication problems by moving awayfrom advertising

Shift in marketplace power from manufacturer toretailers

Rapid growth and development of databasemarketing

Demands greater accountability from agenciesand changes the way agencies are compensated

Internet based changes


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ADVANTAGES/ RELEVANCE OF IMC

Awareness

Information

Persuasion

Attitudes

Reminder

Brand Loyalty

Brand Image

Counter competitors claims

Educating the customers

Markets expansion


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FACTORS INFLUENCING IMC

Nature of the product

Nature of purchases

Product strategy

Promotion mix of competitors

Product life cycle

Unit price of the product

Dealer network

Target marketing


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OBJECTIVES OF IMC

Promotion objectives

Communication objectives

Sales objectives


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IMC PROCESS

1. Identifying the target audience

2. Determining the communication objectives

3. Determining the message

4. Selecting the communication channels5. Determining the budget

6. Promotion mix decision

7. Implementing the promotion mix

8. Evaluating the performance


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DAGMAR

1961 - Russell Colley

Report for association of national advertisers

Model for setting advertising objectives and

measuring the results of an ad campaign

Communication effects are given key importance

DAGMAR defines an advertising goal as a specific

communication task to be accomplished among a

defined audience in a given period of time.


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DAGMAR (Defining Advertising Goals for Measured

Advertising Results)

AWARENESS

COMPREHENSION

CONVICTION

ACTION


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CHARACTERISTICS OF OBJECTIVES

Concrete measurable tasks

Target audience

Benchmark and degree of change sought Specified time period


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CRITICISIMS OF DAGMAR

Problems with the response hierarchy

Sales objectives

Practicality and costs Inhibition of creativity


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ADVERTISING- AN INTRODUCTION

The American Marketing Association

Advertising any paid form of non-personal

presentation and promotion of ideas, goods or

services by an identified sponsor.

Advertisement V/s Campaign


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5 M`s OF ADVERTISING/ 5-M MODEL

Mission: What are the advertising objectives?

Money: How much can we spent?

Message: What message should we send?

Media: What media should we use?

Measurement: How should we evaluate the results?


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5-M MODEL


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1. MISSION

ADVERTISING OBJECTIVES:

1. Informative advertising

2. Persuasive advertising

3. Reminder advertising

4. Reinforcement advertising


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2. MONEY

Stage in the PLC

Market Share and Consumer base

Competition Frequency of advertisements

Product substitutability


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3. MESSAGE

Message generation

Message content

Message structure Message format


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4. MEDIA

Reach, Frequency, Impact

Variables Considered:

Media habits of target audience Product characteristics

Message characteristics

Cost


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5. MEASUREMENT

Communication effect research

Sales effect research


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FEATURES OF ADVERTISING1. Paid form of communication

2. Non-personal presentation

3. Ideas, goods and services

4. Identified sponsor

5. Controlled

6. Mass communication

7. Element of promotion mix8. Element of marketing mix

9. Persuasive

10. Provides information

11. Target oriented

12. Builds image

13. Creates awareness

14. Helps in consumer choice

15. Creativity

16. Art, science and profession


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FUNCTIONS OF ADVERTISING

PRIMARY

Increases sales volume

Persuade channel intermediaries

Assist channel intermediaries

Increase product usage

Receptiveness of new product/ model

Build confidence in quality

Eliminate seasonal fluctuations

Raise standard of living

Bring more business

Create insurance


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SECONDARY

Encourage salesman

Furnish information

Impress executives

Impress factory workers Feeling of security

Secure better employees


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ADVERTISING MESSAGE DECISIONS

Message Content: Rational, Emotional, Moral

Appeal

Message Structure: Conclusions, Repetition,

One-sided versus 2 sided arguments, order of

presentation

Message Format: Copy, Illustrating, Layout

Message Source: Source Credibility (expertise

and trustworthiness), Source Attractiveness


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ADVERTISING AGENCY

American Advertising Agency Association (AAAA)

1. An independent business organization

2. Composed of creative and business people

3. Who develop, prepare and place advertising on

advertising media

4. For sellers seeking to find customers for their

goods and services.


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FEATURES OF AN AD AGENCY

Independent organization

Works for advertisers

Creative talent

Various services

Fees from client and commission from media


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STRUCTURE OF AN AD AGENCY

Contact Department

Media Department

Copy Department

Art and Visualization Department

Production Department

Finance Department

Research Department

Public Relations Department


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FUNCTIONS OF AD AGENCIES

Selection of prospects

Advertising planning

Media selection

Creative function

Research

Marketing functions

Coordination

Trained personnel


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TYPES OF AD AGENCIES

1. Full service agencies

2. Creative boutiques

3. Specialist agencies

4. Modular ad agencies

5. In-house agencies

6. Agency networks7. Media buying agencies


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PILLARS OF AD AGENCY/ TRIANGLE OF

DELIGHT

Client Servicing

MediaCreative


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FACTORS IN SELECTION OF AN AD AGENCY

1. Creativity2. Size

3. Initiative and involvement

4. Market standing

5. Type of clients6. Media connection

7. Services offered

8. Location

9. Accreditation10.Compensation


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PROCESS OF MAKING AN AD

Ad brief to a/c executive

Analysis and Clarifications Creative and Media Brief

Research by Creative and Media

C + M present ideas to A/c Executive

Internal Review and finalization

Presentation to client

Ad Pre- testing

Budget & Estimate Approvals

Ad Processing

Printer or Commercial

Media Buying

Launch of Ad

Billing/ Compensation

Post Evaluation

BRIEFINGSTAGE

CREATION

STAGE

PRODUCTION

STAGE

RELEASE

STAGE

METHODS OF AD BUDGETING


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METHODS OF AD BUDGETING

1. FIXED GUIDELINE METHOD

Percentage of Sales

Unit of Sales

Competitors Expenditure

Market Share

2. TASK METHOD/ OBJECTIVE METHOD


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3. SUBJECTIVE METHODS

Arbitrary

Affordable amount

Go-for-Broke Profit Planning

Documents

Unit 2- Communication and Advertising