Advertising

What is Advertising?
•Any paid form of non personal presentation
and promotions of Ideas, goods and services
through mass media such as newspaper,
magazines, TV or radio by an identified
sponsor.
•Advertising is a mass, paid for communication
which is used to transmit information ,develop
attitudes and include some form of response
from the audience.
 Characteristics of Advertising
• Non Personal form of Communication aimed at a
target audience.
• Used by commercial and by non Profit organization.
• Advertising is paid for.
• Most advertising is concerned ultimately with selling.
• It is a major element in the promotional Mix.
 Objectives
• An advertising objective is a specific
communication task to be achieved with a
specific target audience during a specified
period of time.
• Like all object they should be SMART.
• In essence the main advertising objectives are:
 To inform- To provide information about Product.
 To persuade – To persuade people to buy.
 To remind – To remind people about a mature product.
 Inform, persuade, Remind
Inform Persuade Remind

To provide information. To persuade customers to To remind customers

Used especially with a new buy a particular brand. about a product they
or complex product. might other overlook.

Print media is superior to Stress the distinctive Advertising A mature

TV for this type of features of the brand. Products
Advertising. Minimal Information.
Examples:
Insurance
Examples: Examples:
Financial products
Perfumes Corn flakes
New Electrical goods Cars Kitkat
Coca Cola
 Possible Objectives
• To raise awareness of the product.
• To communicate the benefit of the product.
• To generate leads for the sales force.
• To encourage prospects to buy directly through a direct
response campaign.
• To persuade prospects to switch brands.
• To support a special marketing events.
• To ensure that customers know where to obtain a
product.
• To build confidence in the organization
 Summary of objectives
• To create awareness
• To inform
• To remind customers
• To reassure customer
• To offset advertising by
competitors.
• To support the sales force.
• To Persuade.
• To promote
ideas/attitudes/causes.
• To increase market share.
• To differentiate from
rivals
• To encourage Trial
• To build brand loyalty.
• To encourage brand
switching.
• To change attitudes
• To support activities in
the distribution change.
 Types of Advertising

• Informative -Provides Information.

• Persuasive -To encourage brand switching
• Reminder -To remind about a mature product.
• Reinforcement -To Reassure
• Pioneering -To introduce New products.
• Competitive -To point out differential advantage.
• Defensive -To reduce damage caused by
campaign of a direct competitors.
 Institutional or Corporate Advertising
• Seeks to promote corporate identity, image and Values.
• There is distinct PR element In the form of Advertising.
• This type of Advertising is not about individual products
the company offer.
• The product is not mentioned.
• Used by large companies, especially multinational
companies eg :ICI, BP.
• BP promotes itself an energy company rather than a
petroleum company.
 Direct response Advertising
• The use of prime media to elicit an order, enquiry or
request or visit.
• Direct response television advertising invites consumer
to phone in to place an order (e.g. some music CDs are
promoted in this way.)
• QVC and other shopping channel are involved in
DRTVA.
• The print media is also used- coupons cut out of the
page and inserts are means to invite people to respond.
 AIDA

•Advertising Should Seek to:

•A- Increase awareness
•I- Create Interest
•D- Develop a desire
•A- Encourage consumer to buy.
Advertising seeks to move potential buyer
through theses stages.
 Advertising and The Product Life Cycle

Product Life Advertising AIDA Objectives

Cycle

Introduction Informative Attention Increase in Sales

Interest

Growth Maturity Persuasive Desire Increase in Market

Action Share

Saturation Decline Reminder All four Corporate Image

 Developing An Advertising Campaign

• Set the Advertising objectives.

• Define Target Market.
• Determine the Advertising Budget.
• Determine the Key Advertising Massage.
• Decide which media to use.
• Plan campaign Timing.
• Evaluate the results of the Campaign.
 5 Ms of Advertising
• Mission-Objectives
• Money-To pay for the campaign
• Message-To be delivered
• Media-Choice of Advertising Media
• Measures-Measuring the impact.
 Determining the budget
• The advertising budget will be set interms
of one of:
• What can be offerded
• A given % of sales.
• Comparison with rivals.
• Objectives and task-whatever is needed to
achieve objectives.
 Message
• An Advertising Message translates a
company’s basic selling preposition into
worlds, symbols and illustrations that are
attractive and meaningful to the target
audience.
• The message must be
 Meaningful
 Distinctive
 Believable
 Some Famous Advertising Slogan

• Guinness is good for you.(Guinness,1929)

• A diamond is forever.(De Beers 1948)
• Probably the best beer in the
world( Carlsberg,1973)
Advertising Media
 Main Advertising Media
• Print Media-Newspaper & Magazines.
• Television
• Radio
• Cinemas
• Outdoors (Billboards)
• Internet
 Factors in the Choice of Media
• Marketing Mix. • Permanence of the
• Relative Cost. Media.
• Target audience • The nature of the
• product.
Impact of the media
• Size and spread of the
• Reach and selectivity
market.
of the media.
• Advertising Budget.
• Competition
• The message to be
• Legal Constraints.
conveyed
 AIMRITE-Choice of Media
• Audience-Does it reach the target audience?
• Impact-Does it have the impact to ensure the
message has a chance of getting through?
• Message- Does it ensure the message is clearly
communicated?
• Response-Does it make responding easy?
• Internal Management-Does it enhance the
efficient management of the campaign?
• The end response- Costs and projected likely
revenue.
 Television
• Advantages • Disadvantages
• Large Audience • Very high overall cost.
• Low Cost per • Limited prime time space.
exposure. • Short Lived.
• High Impact- Colour, • May not watched visual
Sound and Movement. wallpaper.
• Can target specific • Proliferation of channels
groups. reduces audience.
• Conveys only Limited
message.
 Radio
• Advantages • Disadvantages
• Relatively Inexpensive. • Limited Impact
• Can Target specific • No Vision
segment. • Short Life
• Relatively mobile. • Listeners attention
• Local Limited.
• Audio wallpaper.
• Mainly Local rather than
National.
 Newspaper
• Advantages • Disadvantages
• Widely range. • Short Life.
• Can Target specific • Low Impact
segments. • May get lost in the rest of
• Frequent Publication. the paper.
• Short Lead time. • Not every group reads a
• Inexpensive Compared to paper.
Television. • High costs especially for
• Local, regional and National newspaper.
national papers available.
 Magazines
• Advantages
• Useful for targeting
specific groups.
• Good Reproduction-high
quality gloss images.
• Long life-read at leasure.
• Can be linked to features.
• All consumer interests
catered for.
• Disadvantages
• Can be expensive.
• Long lead time.
• Some magazines are only
published monthly.
• Moderate Impact
• Slow impact due to long
life.
• Magazines with limited
leadership are not suitable
for mass marketing.
 Cinema
• Advantages • Disadvantages
• High Impact • Limited Audience.
• Captive Audience • Mainly young Audience.
• Can be specifically • Short Lived Message.
targeted. • May only be seen once.
• Local Audience
• Visual, Sound ,
movement.
 Outdoor(Billboard)
• Advantages • Disadvantages
• Repeatedly seen. • Message must be short and
• simple.
24/7 coverage.
• Cannot target socio
• Target Particular area.
economic groups.
• May encourage impulse
• Rarely attract full attention.
buying if close to shop.
• Short Lived.
• Local media
• May be seen as traffic
Hazard.
• Difficult to measure
effectiveness.
 Advertising on transport
• Advantages • Disadvantages
• Low Cost. • Harder to target by socio-
• Target certain areas. economic class.
• • Quick results unlikely.
Captive audience.
• • Difficult to measure
Reaches wide diverse
audience. effectiveness.
• Rarely gains reader’s full
attention.
• Space for only a short
message.
 Internet
• One of the fastest growing advertising media.
• Can target particular groups according the site a
customer is on.
• Can use moving images as well as written
information.
• Can be saved by the consumer.
• Allow direct link to the product.
• But not used by all potential groups of customers.
• Customers may see the advertisements as in the
way of what they really need from an internet site.
• Can be expensive to set up.
 Advertising on the Internet
• Paid for search inclusion (e.g Google adwords)
• Company website.
• Banner Ads-online adverts on relevant website.
• Link exchange-mutual exchange of links between
websites or similar or complimentary interest.
• Search engine /directory listing.
• Ezine/email Sponsorship-Online magazines
delivered to subscribers via email.
 Internet Advertising
• Advantages • Disadvantages
• Cheap • Problem of connecting.
• Easy to set up. • Limited audience.
• Easily updated. • Technical Problems.
• Numbers of hit can be • Banner adverts not very
monitored –useful effective.
measures of effectiveness. • Search engine listing can be
costly (e.g. click fraud)
 Evaluating effectiveness of Advertising
• Judge in relation to the objectives.
• Did the advert achieve its objectives?
• Is it cost effective?
• Here the question to be asked is whether or not the
objectives were achieved at the lowest possible
price.
 Efficiency/Effectiveness Matrix
Efficient Inefficient

Effective Achieves objectives at Effective but more costly

lowest possible cost. than it needed to be.

Ineffective Inexpensive but objectives Expensive but did achieve

not achieved. objectives.
 Advertising effectiveness
• The effectiveness of Advertising is expressed in
terms of its ability to meets its objectives.
• If sales increased profit and sales are the aims,
then effectiveness is measured in terms of the
return on investment in advertising spending.
• If competitive defense is the main aim it is
measured in terms of maintenance in indicators of
competitive position (e.g. market share).
 Advertising lasticity
• A measure of the responsiveness of demand to an
advertising campaign.
%change in quantity sales
% change in advertising spend
• If a 10% rise in advertising spending is followed
by a 20% rise in demand or sales than advertising
of elasticity is 2.
• But can we be sure that sales rose because of the
increased advertising?
 Measures of Advertising effectiveness
• Advertising Awareness-the ability of consumer to
remember a particular advertisement.
• Advertising coverage-the % of the target market
who have at least one opportunity to see an
advertisement during a campaign.
• Advertising share of voice-the proportion of
overall advertising in a market accounted for by a
brand or company.
• Adverting to sales ratio-expenditure on advertising
as a proportion of sales.
 DAGMAR
• The DAGMAR models highlights how advertising
can be assessed by a firm.
• Defining
• Advertising
• Goals
• For Measured
• Advertising
• Results
 A word of Caution
• Even good Advertising cannot overcome problems
caused by
-Poor Product
-Inefficient service
-Uncompetitive pricing
• “Half of all advertising is wasted –the problem if
we don’t know which half”.(Lord Leverhulme)
founder of unilever.