SPECIAL STUDIES IN MARKETING II

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.

Communication Process With Reference To 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.

Communication Process With Reference To Advertising

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 product or service and that it will satisfy their needs. A - Action: lead customers towards taking action and/or purchasing.

Models of Communication Hierarchy of Effects

Models of Communication Innovation Adoption

Models of Communication Information Processing

Communication model for rural and urban communication

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 communications impact ( through seamless integration of discrete messages)

Integrated Marketing Communication

Advantages / Relevance

Offers an integrated approach to marketing communications Provide greater consistency to communications Reducing media waste

Integrated Marketing Communication

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.

Integrated Marketing Communication

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)

Integrated Marketing Communication

Components of IMC

Public Relations - New stories and media editorial coverage - Event and Sports marketing - Cause related marketing - Product placement - Contests

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.

Defining Advertising Goals for Measured Advertising Results (DAGMAR)

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

Defining Advertising Goals for Measured Advertising Results (DAGMAR)

Advertising Can Shape Corporate Images

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

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

Many Different Factors Affect Sales

$ALE$

Promotion

Competition

Product Quality

Distribution

Technology

Price Policy

The Economy

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales As Advertising Objectives

Direct Response Ads Seek Sales

Many Ads Seek Communications Objectives

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

Advertising Management

Competition

Research Agency

Advertiser
Government Advertising Agency Media

Consumers & Markets

Features of Advertising
Source of Information Identified Sponsor Paid Form of Promotion Different Forms Non Personal Persuasion Target Audience Integral part of Marketing

Functions of Advertising

Launch brand Increase market share Increase consumption Increase profitability Increase Loyalty

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Advertising Agency Definition

An advertising agency is: An independent business organisation composed of creative and business people who develop, prepare and place advertising on advertising media for sellers seeking to find customers for their goods and services.

-American Advertising Agency Association (AAAA)

Advertising Agency Functions

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 called account 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

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 or Outdoor. However the TVC will be outsourced to a production house .The final storyboard is made into a technical storyboard before it is sent for shooting.

Advertising Agency Functions

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

Advertising Agency

Advertising Agency Structure

Advertising Budget
Sets limit on minimum & maximum of advertising expense for the year Keeps expenditure within set parameters Prudent use of advertising money over different media Facilitates approval of top management Helps in evaluation of effectiveness of advertising

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

Methods of Budgeting / Advertising Budgeting Methods

Theoretical Approach Marginal Analysis Increase advertising budget as long as the profit from sales increase are more than cost of advertising and better return than spend on any other marketing mix component

Methods of Budgeting / Advertising Budgeting Methods

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

Methods of Budgeting / Advertising Budgeting Methods

Regression Analysis - Advertising and sales linkage in past data - Competitive advertising Experimentation based budgeting - Various levels tested in market