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Eastern Institute of Management

2nd Year 1st Semester
|dvertising and the Marketing Process
 ïhat is Marketing ?

‡ The |merican Marketing |ssociation Defines Marketing as

the Process of Planning and Executing the Conception,
Pricing, Promotion, and Distribution of Ideas, Goods, and
Services to Create Exchanges That Satisfy the Perceived
Needs, ïants, and Objectives of the Customer and the
Organization.
 The Marketing Plan
| Marketing Plan is a Blueprint of Planned Marketing |ctivity That
Strives to Create a Competitive |dvantage for an Individual Product, a
Product Line, or an Idea.

   
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The Four Main Types of Marketing
 |pproaching the Market

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 Product Differentiation

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 Marketing Concept
‡ The marketing concept suggests that marketing should focus first
on the needs and wants of the customer, rather than finding ways to
sell products that may or may not meet customers· needs.
² Step 1. Determine what the customer needs and wants.
² Step 2. Develop, manufacture, market, and service the goods
and services that fill those particular needs and wants.
Four Tools of Marketing
 Channel of Distribution Influencers

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. Only one distributor is allowed
marketing efforts at resellers.
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reseller. Increased number of outlets,
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structure that includes Places product in every
one or more resellers. possible outlet. i.e. soft drinks
 Pricing
The Price a Seller Sets for a Product is Based Not Only on the Cost of
Making and Marketing the Product, But |lso on the Seller·s Expected
Profit Level.

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 Marketing Communication Mix

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 Marketing Communication
‡ Personal Selling
² Face-to-face contact between the marketer and a prospective customer.
² Most important for companies that sell products requiring explanation,
demonstration, and service.
‡ |dvertising
² Has a greater ability to reach a larger number of people simultaneously.
² Has less ability to prompt an immediate change in behavior.
‡ Sales Promotion
² Communication devices offered for a limited period of time to generate
immediate sales.
 Marketing Communication
‡ Public Relations
² Set of activities intended to enhance the image of the marketer to create
goodwill.
‡ Direct Marketing
² Interactive system that allows two-way communication.
² Provides a mechanism for the prospect to respond.
² Can occur at any location.
² Provides a measurable response.
² Requires a database of consumer information.
‡ Point-of-Sale/ Packaging
² |ll the communication devices and marketing messages found at the place
where the product is sold.
 |dvertising·s Role in the Marketing Plan
|dvertising is One of Several Marketing Communication Options.
|dvertising vis-à-vis Sales
For an advertising agency standpoint, it is
very important to realize that they can
increase sales with their effort.
|ID| Model
|ttract |ttention

Gain nterest

Create a esire

Precipitate |ction
Concept of the |ID| Model

‡The |ID| model states that advertising agency

should know how to draw attention of a buyer
to get the customer interested by exhibiting its
advantages, benefits and features. Interest is
followed by desire. It is advertising agency·s
duty to create a desire in a buyer to buy a
specific product.
‡|ll three steps of the |ID| policy will help
you to stimulate the action towards the purchase
of a product. |ID| theory guides and leads
you to build a better advertising business. BIG
B·s of advertising world have followed |ID| to
generate good advertisement campaigns.
Consumer Must go through«

|wareness

Comprehension (Image/Identity)

Conviction (|ttitude)

|ction (Purchase)
 D|GM|R Model
efining |dvertising oals for
easured |dvertising esults

It emphasizes the communication task of |dvertising as

contrasted to the Marketing Objectives of the organization.
The |dvertising goal should be specific«should be written,
measurable task involving a starting point, a defined audience
and a fixed time period.
 D|GM|R Model Concept
‡ Suppose you are marketing a service or a product and your customer knows
nothing about the product.
‡ |s your client is unaware of the product, the first step is to make him |&  of
your product by posting advertisement regarding your product on respective
websites.
‡ " is the second step of D|GM|R. Try to know the answers to
these following questions.
² a) ïhat is your product about?
² b) ïhat are product·s potential features and benefits of product?
² c) ïhat will your customer get from your product? |nd how?
‡ |nswers to all these questions will help you to get a potential customer.
‡ Next stage is " and this is very important. Convince your customer by
telling him the benefits of your product. |fter convincing, your next step starts
i.e. action, which is not controlled by you. You have to depend on the customer.
‡ However, your previous actions will have a major role to play. If you have been
able to convince, the customer ad have answered him satisfactorily and then you
will definitely be the winner of the day.
 |ID| vs D|GM|R

|ID| D|GM|R

è |wareness è |wareness

è Interest è Comprehension

è Desire è Conviction

è |ction è |ction

Form of |dvertising Content of |dvertising

 ïhy Hire an |dvertising |gency?
‡ Hiring an agency can result in several benefits:
² Offer objective advice.
² Draw on the collective experience and training of its staff.
² Provide people and management skills to accomplish
advertising objectives.
² Provide supportive environment for professional
advertising people.
| ïalk through an |dvertising
|gency
 |dvertising |gency
‡ Board of Directors (Privately held)
‡ CEO/CMD/Chairman/MD
‡ Servicing : Client Servicing/Brand Holder
‡ Planning : Brand Planner
‡ Creative : Copy/|rt
‡ Media: Planner/Buyer
‡ Research : Consumer Behaviour/Pre Test/Post Test
‡ Film : Producer/Director/Unit
‡ Finance/HR/L&D etc.
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 The |dvertising Plan

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 Marketing Objectives
‡ Decide what the marketing objectives is out to achieve in terms
of: Increase sales of brand x Increase market share Generate
500 new enquiries each month Increase distribution penetration
Establish a network of distributors
 Communication Planning
‡ Determining the demand factors.
‡ Identifying the Target Group.
‡ |ssess the Competition
‡ Legal and Regulatory Environment
 |dvertising Objectives
‡ Decide what the |dvertising Objectives is out to achieve in terms
of: Increasing brand awareness, Positioning the service as the
friendliest on the market, Repositioning a beer from an old mans
drink to a young mans drink, Maintaining brand X as the
preferred brand, Supporting the launch of a new shop by
generating 50% awareness in the city, Repositioning the Daily
newspaper as an up-market business newspaper, etc.,
 |dvertising Strategy
‡ How we get there- how the objectives are achieved. Strategy drives the tactics
in the same direction.
‡ The strategy summarizes the tactics, by helping to harmonize and integrate all
tactical communication tools. The strategy should also include selection of
target markets, positioning, selection of communication tools, sequence of
communication tools (are different tools used at different stages?), time scales
and more. Examples of such strategies include:
‡ The Tupperware direct response campaign that combines personal selling in
party format and toll free numbers and catalogues.
‡ The IBM Position the business as a solution provider for all your computing
problems, e.g. conferences, published papers, training awareness days etc.
² Daewoo Cars Position Daewoo as a customer focused firm that is happy to
deal directly with customers.
‡ Stage 1. Build customer credibility through TV and motoring press
‡ Stage 2. Develop dialogue with customers about current issues about
car ownership
‡ Stage 3. Launch brand
 |dvertising Budget
Setting the budget can be achieved in four main ways:
1. Objective and task approach - ïhere the cost of implementing
the objectives determines the budget.
2. Percentage of sales approach, whereby the budget is determined
by a fixed percentage of sales.
3. Competition matching approach, whereby the firm·s budget
spend matches that of the competition.
4. |rbitrary approach, where the CEO sets an arbitrary figure that
does not take account of the cost of implementation.
 Creative Planning
‡ Identify the target audience : Decide whom the message is for.
‡ Determine the response sought : ïhat would the marketer like
the audience to do after they get the message?
‡ Choose the message : ïrite the copy, or produce the appropriate
image.
‡ Choose the channel : Decide the most appropriate medium (i.e.
TV, radio, or other medium) is most appealing to the audience.
‡ Select the source·s attributes : Decide what it is about the product
or company that needs to be communicated.
‡ Collect feedback : Carry out market research to monitor how
effective the promotion was.
 Media Planning
‡ Determining the media channels to utilise.
² In order to achieve maximum reach (no. of customers).
² The frequency of coverage (no. of times a customer is exposed to the advert).
² The scheduling of coverage (e.g. prime time or early morning for radio and TV.)
² The size of the advert (e.g. half page in a paper)
² The positioning of the advert (e.g. on the front page of a magazine or paper).
‡ In |dvertising the decision is based on the cost per thousand viewers, listeners or
readers.
‡ Creating the platform Deciding the basic issues and selling points that the
communication must convey. This clarifies the thinking on producing the
communication plan.
‡ |ction Plans to outline the details of the tactics : Detailed action plans implement the
tactics in various forms including: Project management skills Time management
Prioritising People management |n ability to get things done and plan for
contingencies
‡ Control Plans should identify how progress should be reviewed, monitored, measured
and controlled. So measurement systems need to be built in from the start.
 |n Example
Months prior to November work with Production, R& D to get the product right
in line with Customer Needs and branding exercise done with |gency and
Consultant.
‡ December : Press Release to trade press and retailers
‡ January :
² Sales campaign to persuade retailers to stock the product
² Press Release to trade press, TV programs if newsworthy enough
² Begin a teaser campaign
‡ February : Launch Teaser campaign
‡ March : Once 50 per cent retailer penetration has occurred, start public
campaign to maximize brand awareness
‡ |pril : Begin a new campaign to inform consumers about the brand. Possibly
use money-off promotion, linked promotions, etc.
‡ May : Review progress using market research. Possibly release PR to specialist
trade press
The Brief

 
 Types of |dvertising - Client
‡ Institutional/Corporate ² promotes organizational images and
ideas not specific products eg : Union Bank
‡ |dvocacy ² promotes a company·s position on a public issue eg :
Tata Motors on Singur Isssue
‡ Brand/Products/Service ² promotes a product use, feature or
benefit, Service, Brand eg : Vodafone, Vivel, Jet |irways etc.,
‡ Pioneer ² promotes a product category rather than a brand eg :
|pple i-pod, i-phone etc
‡ Political ² promotes polictical party idealogy, messages eg : BJP
Campaign, US Presidential Election
‡ Public Service/Social Service ² promotes the cause of social
awareness, urges action eg : Teach for India from TOI
 Types of |dvertising - Media
‡ Print |dvertising ² Newspapers, Magazines, Brochures,
Fliers
‡ Outdoor |dvertising ² Billboards, Kiosks, Tradeshows and
Events
‡ Broadcast/Electronic Media |dvertising ² Television, Radio
and the Internet
‡ Covert |dvertising ² |dvertising in Movies : James Bond
and Sony Erickson Cybershot
‡ Non - conventional Methods ² Village Hailers, Slides in
Movie Halls, Van Publicity,
‡ Brand Experience : Promos in Malls, Retail |dvertising at
POP
 Types of |dvertising - Type
‡ Reminder ² reminds consumers about an established brands
features, benefits, characteristics, uses
‡ Reinforcement ² assures consumers that they have made the
right choice
‡ Competitive ² promotes a brands competitive features w.r.t
another brand
‡ Comparative ² compares two or more brands on the basis of
one or more characteristics
‡ Celebrity |dvertising

‡ Surrogate |dvertising ² |dvertising Indirectly

 |dvertising Campaign
‡ The creation and execution of a series of advertisements that
communicate to a particular target audience
‡ Thematic Campaign ² Brand Promise (Pull Strategy)
‡ Tactical Promotion ² Brand Sale (Push Strategy)
‡ Relaunch Campaign
‡ Repositioning Campaign
Thematic Campaign
Thematic Campaign
Thematic Campaign
Tactical (Promotion) Campaign

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 Repostioning (Brand Image)

India·s Pride Power & Control

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 Creating a Campaign
‡ Identify and analyze target audience (need, problem etc)
‡ Define advertising objectives (what would it do)
‡ Create the advertising content (based on a brief)
‡ Determining the |dvertising |ppropriation
‡ Pre-test with a sample size
‡ Evaluate the results and rework if necessary
‡ Develop media plan and budget
‡ Run the campaign
‡ Evaluate its effectiveness
 Identifying and |nalyzing TG
‡ TG is group of similar people to whom the advertisement is
aimed at
‡ Demographic
‡ Psychographic
‡ Lifestyle
‡ |ttitudes
 Defining the Objectives
‡ ïhat does the firm hope to accomplish with the campaign
‡ Objectives should be clear, precise and measurable
‡ Increase in sales ?
‡ Increase in awareness ?
 |dvertising Content
‡ Basic issues or selling points that must be included in the
campaign
‡ Simple
‡ One or two such points
‡ Must be important to the TG
 |dvertising |ppropriation
‡ |dvertising Budget for a specified period
‡ The size of the market and the geographic spread will
determine the budget
‡ Budgeting |pproach
‡ Objective and Task : Determining the objectives and
the cost needed to attain them
‡ Percent of Sales : ïhat percent of past sales
determines the budget
‡ Competitive Matching
‡ |rbitary
 Top 10 US Spenders - 4554

COMP|NY S|LES USD |DVERTISING % OF S|LES

MILLION SPEND USD MLN
General Motors 132399 3374 2.5
Procter & Gamble 20334 2541 12.5
Ford 108296 2408 2.2
Pepsi Co 18295 2210 12.1
Pfizer 19932 2189 11.0
Daimler Chrysler 72708 1985 2.7
|OL Time ïarner 32676 1885 5.8
Phillip Morris 52098 1816 3.5
ïalt Disney 20970 1757 8.4
Johnson & Johnson 20204 1618 8.0
 Pretesting
‡ Pretesting is a research method that seeks to minimize
mistakes by getting consumer reactions to ad messages before
they are placed in the media.
 Developing the Media Plan
‡ Specifies media vehicles (press, tv, radio, billborads etc.,) and
the schedule for running the advertisements
‡ Plan objectives focus on the reach and frequency that the
budget will allow
‡ Reach ² the percentage of consumers in a target market
exposed to an advertisement in a specified period
‡ Frequency - The number of times the TG is exposed to
the ad
 Developing the Media Plan
‡ Cost Comparison Indicator ² | means of comparing the cost
of vehicles in a specific medium in relation to the number of
people reached
‡ The indicator is stated a the cost of exposing one thousand
people to an ad in a medium and its unit is CPM
 Percentage of Media Spend
2000 US|
MEDIUM USD MILLION SPEND % of TOT|L
Television 59231 24.3
Newspaper 49050 20.1
Direct Mail 44591 18.3
Radio 19295 7.9
Yellow Pages 13228 5.4
Magazines 12370 5.1
Business Prss 4915 2.0
Internet 4333 1.8
Outdoor 1758 0.7
Miscellaneous 34919 14.4
TOT|L 243680 100.0
 Strategy & Creative Content
‡ Consumer Insight ² Brand Idea ² Execution Idea ²
‡ Copy ² The verbal portion of advertisements, Headline,
BaseLine, Body Copy etc.,
‡ |rt ² The visual portion of the advertisement
‡ Story Board ² | mock up combining copy and visual material
to show the sequence of major scenes in a TV commercial
 Creative Content
‡ |rtwork ² |n advertisements illustration and layout ²
rendering to printable form
‡ Illustrations ² Drawing, photos, charts, graphs and tables used
to spark the TG·s interest level
‡ Layout ² The physical arrangement of an ad·s illustration and
copy
 Specialists ïho Create |dvertising
Campaigns
|n |dvertising Campaign is a Coordinated, Comprehensive Plan that Carries
Out Promotion Objectives and Results in a Series of |dvertisements Placed in
Media Over a Period of Time.

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 Choosing Media

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 Media Scheduling:
ïhen to Say It
‡ | media schedule specifies the exact media to use, when, and
how often the message should appear.
‡ |ssess advertising exposure - degree to which the target market
will see an advertising message in a specific medium and
depends on the following two factors:
 Media Scheduling:
How Often to Say It?

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Terminology

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 Evaluating |dvertising

‡ Post testing is research conducted on consumers· responses to

actual advertising messages they have seen or heard.
‡ Three ways to measure the impact of an advertisement are:
‡ Unaided recall
‡ |ided recall
‡ |ttitudinal measures.
Challenges Facing the |dvertising
Industry
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How the |dvertising Industry is
Meeting these Challenges ?

   
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