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Special Studies in Marketing T.Y.B.M.S.

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MODULE- I

COMMUNICATION

Set of Suggested questions as per Mumbai University

Concept Question

1. Define Communication

Descriptive Questions

1. Explain the advertising Communication Process

2. The steps in an integrated marketing communication process.

RAM
Special Studies in Marketing T.Y.B.M.S.
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INTRODUCTION TO ADVERTISING
Advertising is the backbone for any business. It is a form of mass
communication, a powerful marketing tool.

When a market or a firm has developed a product to satisfy market demand after
thoroughly analyzing the market, there is a need for establishing contact with the
target market to eventually sell the product. Advertising helps in reaching to the
target market.

Advertising can thus aptly be called as the MOTHER OF ALL


COMMUNICATION. Advertising is all around us. We are bombarded with ads
(commercials) over TV, radio &in the print. When we go to our colleges, offices
we are expose to many bill boards, which tell us to drink more milk, donate are
eyes, gives you more information, tells you to do family planning etc. On an
average, an Indian citizen is exposed to more than 20 commercials per day.

In modern times, advertising prevails in all walks of life. It has acquired the
distinction of being the most visible & glamorous method of marketing
communication. It is the world’s fifth largest industry. Oil, Automobiles,
Computers & Agriculture follow advertising in that order. Today it is a million
dollar business.

“Advertising” = “means to inform”

COMMUNICATION DEFINED

The steps between source and a resource that result in the transference and
understanding of meaning
- STEPHEN R. ROBINS

ADVERTISING COMMUNICATION SYSTEM


Advertising communication always involves a perception process and four of the
elements shown in the model: the source, a message, a communication channel & a
receiver. In addition, the receiver will sometimes become a source of
information by talking to friends or associates. This type of communication is
termed word-of mouth communication and it involves social interactions

RAM
Special Studies in Marketing T.Y.B.M.S.
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between two or more people & the important ideas of group influence & the
diffusion of information.

Perception process

Source Message Receiver Destination


(Advertiser) Audience

Channel Channel
(Media) (Word-of-Mouth)

Model of the advertising communication system

The source of a message in the advertising communication system is the point of


which the message originates. There are many types of “sources” in the context
of advertising, such as the company offering the product, the particular brand or
the spokesperson used.

MESSAGE:

The message refers to both the content and execution of the advertisement. It
is the totality of what is perceived by the receiver of the message. The message
can be executed in great variety of ways for e.g. the use of humor & fear

CHANNEL:

The message is transmitted through some channel from the source to the
receiver. The channel in an advertising communication system consist of one or
more kinds of media, such as radio, TV, newspaper, magazines, billboards,
point-of-purchase display, &so on. The impact of the communication can be
different for different media.

RECEIVER:

The receiver in an advertising communication system is also called the target


audience. Thus, the receiver can be described in terms of audience segmentation

RAM
Special Studies in Marketing T.Y.B.M.S.
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variables, lifestyle, benefits sought, demographics, & so on. Of particular interest
might be the receiver’s involvement in the product & the extent to which he/she
is willing to search for and/or process information. It is the characteristics of the
receiver-the demographics, psychological, & social characteristics-that provide
the basis for understanding communication, persuasion & market processes.

DESTINATION:

The communication model in above diagram does not stop at the receiver but
allows for the possibility that the initial receiver might engage in word-of mouth
communication to the ultimate destination of the message. The receiver then
becomes an interim source & the destination becomes another receiver. Word-of-
mouth communication resulting from advertising can be a critical part of a
campaign. The reality is that for some products the absence of word-of-mouth
communication can be fatal. It is only the word-of-mouth communication that
has credibility, comprehensiveness, & impact of affect the ultimate behavior of a
portion of the audience. Advertising can actually stimulate word-of-mouth
activity, even when it cannot stimulate it, knowledge of its appropriateness and
power can be very helpful.

An advertising message can have a variety of effects upon the receiver. It can:

Create awareness
Communicate information about attributes & benefits
Develop or change an image or personality
Associate a brand with feelings & emotions
Create group norms
Precipitate behavior

ADVERTISING EXPOSURE MODEL


The following diagram of communication & persuasion process shows the
various processes that can occur after consumers are exposed to advertisements.
First, exposure to the advertisement can create awareness about brand, leading
to a feeling of familiarity with it. Second, information about the brand’s benefits
& the attributes on which the benefits are based can register with the consumer
can also result from exposure to the ad. Third, advertisements can also generate
feelings in an audience that they begin to associate with the brand or its
consumption. Fourth, through the choice of the spokesperson & image for the
brand, often called “brand personality”. Fifth, the advertisements can create the

RAM
Special Studies in Marketing T.Y.B.M.S.
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impression that the brand is favored by the consumer’s peers, or experts-
individuals & group the consumer likes to emulate. This is often how products &
brands are presented as being fashionable. These five effects can create favorable
liking, or attitude, towards the brand, which in turn should lead to purchasing
action. Sometimes the advertisers will attempt to spur purchasing action directly
by providing a reminder or by attacking reasons why the consumer may be
postponing that action.
These two models help us to understand how & why consumers acquire process
&use advertising information. It is also important to at the planning stage to
develop a good understanding of where advertising fits into the total pool of
information & influence sources to which consumer is exposed. Understanding
information processing invariably leads to the need for understanding a wide
range of other important psychological constructs, such as perception, learning
attitude formation & change, source of effects, brand personality & image.

Awareness / Familiarity
with brand

Information i.e. brand


attributes or benefits

Creation of brand image


/ personality

Brand Purchase
Ad Exposure Attitude Behaviour
Association of feelings
with brands

Linkage of brand with


peers / experts and group
norms

Reminder or inducement
about brand trait

A Model of the communication / persuasion process

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Special Studies in Marketing T.Y.B.M.S.
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An integrated marketing communications planning model

Review of marketing plan

Analysis of promotional program situation

Budget determination

Develop integral marketing communication program

Direct Interactive / Sales Personal


Advertising Marketing Internet Promotion Selling
Marketing

Advertising Direct Interactive / Sales Personal


Marketing internet Promotion Selling
objectives
marketing
objectives Objectives Objectives
Objectives

Advertising Direct Interactive / Sales Personal


Marketing internet Promotion Selling
strategy marketing
Strategy Strategy Strategy
Strategy

Sales promotion Sales


Advertising Direct I.I.M. Message & media Message &
Message & marketing Message & strategy media strategy
media strategy Message & media strategy & tactics & tactics
& tactics media strategy & tactics
& tactics

Develop integral marketing communication program

RAM
Special Studies in Marketing T.Y.B.M.S.
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INTEGRATED MARKETING COMMUNICATION (IMC) DEFINED

“The process of managing all sources of information about a product service to


which a customer or prospect is exposed which behaviorally moves the customer
towards a sale and maintains customer loyalty.”
-Northwestern University, Medill School of Journalism

Review of Marketing Plan


Examine overall marketing plan & objectives
Role of advertising & promotions
Competitive analysis
Assess environmental influence

Analysis of Promotional Program Situation

Internal analysis External analysis

Promotional department Organization Market Segmentation & Target


Marketing
Firm’s ability to implement Consumer Behavior Analysis

Promotional program
Review of previous program result

ANALYSIS OF COMMUNICATION PROCESS


Analyze receiver’s response processes
Analyze source, message, channel factors
Establish communications goals & objectives

BUDGET DETERMINATION

Set tentative marketing communications budget


Allocate tentative budget

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Special Studies in Marketing T.Y.B.M.S.
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DEVELOP INTEGRATED MARKETING COMMUNICATION PROGRAM

Advertising:

Set advertising objectives Determine


advertising budget Develop
advertising message Develop
advertising media strategy

DIRECT MARKETING

Set direct marketing objectives Determine


direct marketing budget Develop direct
marketing message Develop direct
marketing media strategy

INTERACTIVE/INTERNET MARKETING

Set interactive/internet marketing objectives


Determine interactive/internet marketing budget
Develop interactive/internet message
Develop interactive/internet media strategy

SALES PROMOTION

Set sales promotion objectives


Determine sales promotion budget
Develop sales promotion tools & develop messages
Develop sales promotion media strategy

PUBLIC RELATION/PUBLICITY

Set PR/publicity objectives Determine


PR/publicity budget Develop
PR/publicity messages Develop
PR/publicity media strategy

PERSONAL SELLING

Set personal selling & sales objectives


Determine personal selling & sales budget

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Special Studies in Marketing T.Y.B.M.S.
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Develop sales messages
Develop selling roles & responsibilities

INTEGRATE & IMPLEMENT MARKETING COMMUNICATIONS


STRATEGIES

Integrate promotional mix strategies


Create & produce ads
Purchase media time, space, etc.
Design & implement direct marketing programs
Design & distribute sales promotion materials
Design & implement PR/publicity programs
Design & implement interactive/internet marketing programs MONITOR,
EVALUATE, & CONTROL INTEGRATED MARKETING
COMMUNICATIONS PROGRAM

Evaluate promotional program results/effectives


Take measures to control & adjust promotional strategies

RAM
Special Studies in Marketing T.Y.B.M.S.
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TOOLS OF IMC

ADVERTISING SALES PUBLIC PERSONAL DIRECT


PROMOTION RELATIONS SELLING MARKETING
Print and Contests, Press Kits Sales Catalogues
Broadcast Ads Games, Presentations
Sweepstakes,
Lotteries
Packaging – Premiums and Speeches Sales Mailings
Outer gifts Meetings
Packaging Sampling Seminars Incentive Telemarketing
Inserts Programmes
Motion Pictures Fairs and trade Annual Samples Electronic
shows Report Shopping
Brochures and Exhibits Charitable Fair & Trade
Booklets Donations Shows
Posters and Demonstrations Sponsorships
Leaflets
Directories Coupons Publications
Reprints of Ads Rebates Community
Relations
Billboards Low interest Lobbying
Financing
Display Signs Entertainment Identity
Media
Point-of- Trade in Company
purchase allowances Magazine
Displays Continuity Events
Programmes
Audio –Visual Tie - ins
Material
Symbols and
logos
Video Tapes

RAM
Special Studies in Marketing T.Y.B.M.S.
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Mc CANN ERICKSON MODEL FOR COMMUNICATION

ROAD MAP TO EFFETIVE ADVERTISING

PULSE * BRAND
FOOTPRINT +

SELLING
STRATEGY^

AD WORKS

Mc CANN PULSE: Technique of transforming consumer information into


consumer insight.
+ Mc FOOTPRINT: Method of transforming brands from one market
opportunities into expanded multinational platforms.
^ Mc CANN SELLING: Transforming Consumer Insight into effective
advertising.

Mc CANN ERICKSON

END OF MODULE I

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MODULE- II

ADVERTISING AGENCY

Concept Questions

1. Function of an ad agency

2. Selection of an ad agency

3. Evaluation of an Ad agency

4. Five M’s of Advertising

Descriptive Questions

1. Organisation of an Ad agency with their function

2. Explain the organization structure of an advertising agency (of your


choice)

3. How much would you select and evaluate an advertising agency.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

INTRODUCTION

An outsider’s perception of the work in an ad agency is one of glamour and glitz. It


is often assumed that working in an ad agency means being surrounded by
glam dolls and hunks. That it is a profession of high profile and high living with a
lot of showmanship, socializing and partying. Till a few years ago people
would have ranked it second only to the world of films in terms of the
“glamour” co-efficient. But ‘politics’ and ‘fashions’ world have pushed it down
the ladder a bit since.

Well, the real world of advertising is most certainly a world of high and intensity
but in a different way. Though at a first glances an ad agency would seem like
any other corporate office, often the similarity would end at the office reception.
Once inside, you are in the battle zone.

The decibel levels and chaos is often striking arguably second only to the
commodity and stock exchange pits. So is the pressure of deadlines, client calls
and chasing of work and people both inside and outside the agency. Usually a
working day in the agency for most people is long, hectic, unpredictable,
stressful, full of drama, yet loads of fun, often including the weekends.

FIVE M’s OF ADVERTISING

Advertising is an important promotional tool for any marketing campaign. So


much so that whenever we think of marketing we think of advertising although it
is just one of the marketing tools. Today government bodies as well as non-
government organizations go for high profile advertising campaigns. The
purpose here is not to increase the sales figure but to increase the awareness of
people regarding the relevant topics. Today the marketing manager has a range
of advertising options to choose from- from interpersonal communication to
Internet. Deciding on a correct option calls for detailed analysis aspects like
objective behind advertising (Mission), company’s earmarked budget (Money),
content of communication through advertising (Message), advertising vehicle
(Media) and impact of advertising (Measurement). These can be broadly
classified as the five M’s of advertising.

RAM
Special Studies in Marketing T.Y.B.M.S.
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MISSION

First of all the marketing manager must be clear on the company’s purpose for
advertising. “Increase in sales figure” will be a very broad and to a certain
context a vague objective. According to Mr. Philip Kotler, a renowned authority
in this field, there can be three possible objectives behind advertising:

Information- when a new product is launched, the purpose should only be


to inform people about the product

Persuasion- Persuading people to actually go out and buy the product.


This objective is of paramount importance because of cutthroat
competition. Any advertisement must be persuasive in nature, attracting
consumers towards the brand

Reminder: This objective is relevant for well-established companies. These


types of advertisements only try to remind the consumers of the brand
existence. For instance whenever we hear or read yeh dil maange more,
we tend to think about Pepsi. Same way we tend to associate “two
minutes” with Maggie noodles. The marketing manager should establish a
clear goal as on the purpose of advertising, information, persuasion or
reminder.

MONEY

After the objective has been decided upon, the next step is to decide upon the
budget. There are several methods for deciding on the advertising budget. The
most common among them is the percentage of sales method. Under this
method, a certain percentage of sales are allotted for advertising expenditure.
Though this method is used widely, there are some problems with this method.
The first issue is what percentage the company should take? Even if a company
somehow decides a percentage figure, this would mean increase in advertising
expenditure when sales are up and less spending when sales are down. This in
some ways is quite paradoxical, because logically the reverse should happen. The
company needs to spend more on advertising when sales are down. But this
method uses circular reasoning and views sales as cause for promotion. In fact
sales are a result of promotion. Another method suggests that a company should
spend as much as its competitors are spending. This method claims that it would
prevent promotional wars. But then like each individual each company is also
different. It may not make any sense in spending like your competitor because
competitor might be on a different footing.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
MESSAGE

As a common experience, we love some advertisements, while the others just


irritate us. An appealing advertising will win consumers and will consequently
induce them to purchase the product. On the other hand, irritating advertising
will create an adverse effect. This is why many companies hand over this task to
advertising agencies, which has professionals to make impact -making ads. The
message that company wants to convey should be put in a manner that will
arouse interest. Moreover it should convincingly highlight upon the products
USP. What is said is definitely important but what is more important is how it is
said. The tone should be appealing. Words used should be catchy and retentive.
These days both electronic as well as print media are overflowing with ads.
People have no time to read or see them, and therefore they have to be attractive
enough to target audience’s attention. This is the job of message.

MEDIA

Selecting the proper media vehicle for communicating the message goes a long
way in the success of any kind of advertising. Each media vehicle has its positive
and negative points with a different reach and impact. Therefore a company has
to be very clear about its target audience. Choices available are Internet, TV,
newspapers, magazines, direct mails, radio and hoardings. Everyone of this has
its advantages and disadvantages. Companies often go in for a media mix, i.e.
they select more than one of the available choices. Timing is of great significance
here. Many industries face seasonal fluctuations and pass through cycles.
Therefore advertising should be timed that way to take care of these fluctuations.
A limited budget should be prudently allotted among these media vehicles.

MEASUREMENT

It is necessary that effectiveness of any advertising be judged. Only on the basis


of this measurement, can further decisions regarding continuation or termination
of the particular advertising campaign be taken. An ad can be judged on the
basis of its reach and impact on sales. Good advertising is one that generates
brand awareness and consequently brand preference. How much of sales can be
attributed to advertising, is a difficult question to answer. Sales are influenced by
many factors besides advertising. It is not easy to isolate the impact of
advertising on sales. Nonetheless there are some advanced statistical techniques
available that can be used with the help of computer software’s like SPSS. Thus a
systematic and balanced understanding of these five Ms of advertising will help
in designing better advertising campaigns that create a favorable impact on the
target audience.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

INTRODUCTION TO ADVERTISING AGENCY

DEFINITION OF AN ADVERTISING AGENCY

It is the core of advertising profession and industry.

An advertising agency is:

a) An independent business organization


b) Composed of creative and business people
c) Who develop, prepare and place advertising on advertising media
d) For sellers seeking to find customers for their goods and services

-American Advertising Agency Association (AAA)

There are an estimated 200 advertising agencies in India accredited to INS


(Indian Newspaper Society- to be eligible for 15 percent commission) and 8000
odd agencies which are unregistered. Together they serve 6000 clients in India.

Four Key Functions of an Ad agency

ACCOUNT MANAGEMENT

Account Management is the pivot on which the entire agency’s work revolves.
Also called as Client Servicing or suits, it is the agency’s big window to the
outside world. The ‘suits’ are the agency’s face to the client. They interact with
the clients, take briefs and understand the marketing issues involved.
Internally, they brief the creative and media on the jobs and co-ordinate
the entire ‘work processes ‘inside the agency. They evaluate the ad campaign and
media plan internally and often present these to the clients.

ACCOUNT PLANNING

It is the second core function in the agency. It is also referred to as ‘strategic


planning’. However, all agencies do not necessarily have a separate unit for
planning. In some agencies account management takes care of the strategic
planning involved in their respective brands. Whether as a separate unit or not,
planning is the research face of the agency. However they rarely conduct

RAM
Special Studies in Marketing T.Y.B.M.S.
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research themselves, though sometimes they may co-ordinate it through research
agencies if required.

CREATIVES

Creative form the third core function of the agency. They are also at the core of
the production process of the agency as they are the ones who create ads.
Generally, the copywriters write the headline and copy and the art directors do
the visualizations and layouts. But often they ideate and work together. A
headline may come from the art person and visualizations from the writer.
Creatives are the agencies lifeline the one who can make or break the agency.

C L I E N T

THE Account Account


CORE Media Creative
Management Planning
Planning Copy writing Research
Buying Art direction

Media Film Print Graphic Billing Account


Supports Operations Production Production Studio Administration

S U P P L I E R

MEDIA

Media forms the fourth and the last core function of an agency. With increased
media fragmentations, media planning and media buying have emerged as two
specialized functions within media. Sometimes the planners may also extend
expertise to the both.
Media planning involves a lot of number crunching and good
‘quantitative’ abilities are a critical requirement. Media Buyers not only look
other media relations and negotiate rates but also supervise the media
operational word like sending release order and ad material to the respective
media. They also monitor releases.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

TYPICAL WORK FLOW IN AN AD AGENCY

Briefing Stage Briefing from the client


Internal Briefing to creative &
Media
Any research briefing if required

Ad campaign and media plan


development
Creation Stage Internal Review and finalization
Presentation to client and approval
Any pre – testing if required

Budget and Estimate approvals


Production of film, press ads,
Production Stage collaterals, etc.
Media Scheduling and media
bookings
All release approvals for creative
and media

Material Dispatch to media


Media release monitoring
Release Stage Any post – testing if required
Billing and collection

THE WORLD’S TOP TEN ADVERTISING


AGENCIES
WPP GROUP, LONDON (18485.3 BILLION)
INTERPUBLIC GROUP, NEW YORK ( US $ 13,967 BILLION)
OMNICOM GROUP, NEW YORK (US $ 13,839 BILLION)
DENTSU, TOKYO (US $10846.3 BILLION)
SAATCHI & SAATCHI COMPETITORS , LONDON(US $ 10809
BILLION)

RAM
Special Studies in Marketing T.Y.B.M.S.
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YOUNG & RUBICAM, NEW YORK( US $ 7559 BILLION)
EURO RSCG, FRANCE (US $ 6508 BILLION)
GREY ADVERTISING , NEW YORK( US $ 5171 BILLION)
HAKUHODO, TOKYO (US $ 4938 BILLION)
FOOTE, CONE AND BELDING (FCB),CHICAGO ( US $5336 BILLION)

SOURCE: THE ASIAN AGE

INDIA’S TOP 5 ADVERTISING AGENCIES


O & M, BANGLORE (RS.2500 CRORE)
JWT, MUMBAI (RS 1800 CRORE)
LOWE LINTAS & PARTNERS, MUMBAI( RS 1500 CRORE)
MUDRA, DDB NEEDHAM, AHMEDABAD (RS1200 CRORE)
FCB ULKA, NEW DELHI (RS.800 CRORE)

SOURCE: BRAND EQUITY, ECONOMICS TIMES

FUNCTIONS OF AN ADVERTISING AGENCY


Big agencies like JWT, O&M, and LOWE are called full service advertising
agencies because they are ONE STOP SHOP for all services that are offered to the
clients. Today’s agencies are providing total communications packages for the
client brands. They are acting as the custodians of the brands of the clients.

1. CLIENT SERVICING: Also called as “Accounts executives”. He is link


between the agency and clients. He suggests what the client exactly wants
to his advertising agency. He is the one who carries the client brief and is
also responsible for approvals.

2. THE CREATIVE DEPARTMENT: Under the Creative Director there are a


team of Copywriters and Visualisers who arrive at the “BIG IDEA”.
Accordingly the storyboard is prepared and script work is done. The final
layout is sent to the client for approval.

3. THE PRODUCTION DEPARTMENT: The production department is


responsible to convert the storyboard in to a finished layout (technical
storyboard if it’s for print medium or outdoor. However, the television
commercial will be outsourced to a production house (like Prasoon

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Special Studies in Marketing T.Y.B.M.S.
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Pandey’s CORCOISE FILMS). The final storyboard is made into a
technical storyboard, before it goes for shooting.

4. THE MEDIA DEPT.: The Media Planner along with the Media manager
and brand manager/media dept of the client prepares the final media
budget and purchases Insertions for print media (space buying) or
purchases radio spots if it’s for Radio or purchases TV time if it’s on
television. Appropriate media mix is developed.

5. RESEARCH DEPT.: In fact Research dept 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 situations

6. THE FINANCE DEPT (ACCOUNTING): This dept looks after the


accounts (financial records) for the agency.

7. STATEGIC PLANNING: Strategic planning is a heart of an advertising


agency. It will be headed by VP Strategic Planning and assisted by
strategic planners. These days the clients require a well prepared
advertising strategy before the design of the advertisement and hence
strategic planning has grown past 4 years. Usually MBA’s from reputed
management institutes are recruited in these dept. big agencies have a
strong Strategic Planning dept whereas in small and medium agencies, it
is handled by the creative dept itself.

SELECTION OF AN ADVERTISING AGENCY


First and foremost, the agency must be known. Previously unknown agencies are
not preferred.
Secondly, the agency must have creativity. Creative people are a little crazy, non-
conformists. Creativity does not follow any logical pattern. Creative people are
like naughty children. The secret of creativity is simplicity.

Thirdly, the agency must have a sound track record, a good deal of experience.
Fourthly, the accounts executive must have ability to understand the client’s
problems.

RAM
Special Studies in Marketing T.Y.B.M.S.
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Fifthly, you may look t the accounts they handle, and the accounts they have
gained and lost. In other words, the work they have produced for other clients
does matter.

Sixthly, the personal equation of the client with the agency also matters. If you
know them personally, they are compatible with you.

Seventhly, their ability and presentation may make you opt for them. Premier
Auto (the company that makes Fiat cars) was shopping around for an agency to
launch its 118 NE. It invited presentations from various agencies and then shifted
its account from its old agency Sistas to Ulka. More and more clients prefer to
invite presentations for campaigns of new products and then award the
campaign to the agency who they think has made the best presentations.

Lastly, there are some unique considerations, some prefer a small, some a
medium, some a large agency. Increasingly, clients prefer to fragment their
business, giving different products to different agencies.

Other factors that need consideration is the staff of the agency and its caliber, its
flexibility, practical and consumer oriented approach, the use it makes of MR, its
media understanding, the attention it gives to the client, its growth, the ability to
handle below-the-line publicity and its international tie-ups.

So creativity, commitment to client and the quality of its top management go a


long way in the selection of an agency. Unfortunately many think ‘Creativity’ is
just another way of saying, ‘I like the agency.’

EVALUATION OF AN ADVERTISING AGENCY

CLIENT INVITES TENDER FOR AD

AGENCIES PITCH FOR THE ACCOUNT

CLIENT SELECTS THE ADVERTISING AGENCY

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Special Studies in Marketing T.Y.B.M.S.
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EVALUATION OF AN ADVERTISING AGENCY

The agency is evaluated on the past performance.


The number of clients it holds. (For e.g. O & M works on 240 brands at a time) The
reputation the agency has in advertising circles (JWT is renowned for its
reputation)
The particular USP of the agency (on what areas the agency is specialized in, for
e.g. O&M is known for creativity. R.K Swamy BBDO is renowned for print; Leo
Burnett is renowned for consumer insights.
Timely delivery of advertising materials (especially for Cola ads)

Agency Evaluation and Selection some Criteria (pg no 291)

MUDRA COMMUNICATIONS LIMITED


An Overview….

Mudra Communications was founded in 1980 under the stewardship of Shri


A.G. Krishnamurthy. It was a single account, 15 people advertising agency wish
an initial investment of Rs. 4000. Today, Mudra is the largest Indian advertising
agency with a capitalized billing of Rs. 700 crores (Mar 2001), and a portfolio of
country’s finest brands.

Mudra is one of the countries first transitional Indian advertising agencies in


1994, with stakes in agencies in 6 countries, which facilities the transfer of
technology and creative expertise.
Mudra has an affiliate in DDB worldwide who is a part of the Omnicom Group.
The Mudra group consists of two advertising agencies.

1. Mudra Communication Limited.


2. Interact Vision Advertising and Marketing Pvt. Ltd.

In addition to these two there are specialized divisions for Public Relations,
Outdoor Advertising, Information Technology, Direct Marketing, Video
Software and MAGINDIA.COM, the advertising archive.

On Mudra’s client list multinational brand leaders rub shoulders with leading
national brands, most of which have become brand leaders with Mudra.

RAM
Special Studies in Marketing T.Y.B.M.S.
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Values

Mudra’s brand success have been possible only because of there tenacious
adherence to their corporate values. These values govern Mudra’s external
equations while determining internal growth.

Fundamentally they believe that

It is better to invest in long term relationships with clients and in the


process grow with them rather than temporarily boost billing with short-
term accounts.
Organizations work best when they work simple, sincere and
straightforward.
To function at peak level, work groups and task forces must have people
who possess a fine balance of good human nature and professional
competence.
Intuitions and common sense are required and respected. But they must
be equally disciplined through research.
Most importantly, an agency is only as good as its last campaign. Past
excellence is no excuse for incompetence.

Made in India
Mudra became the largest advertising agency in the ninth year of its existence.
This was achieved by a group of people whose credentials were being Indian and
knowing India. Together they took Indian to the Indian. They understood what
India made tick.

Mudra’s advent on advertising scene saw the birth of the true Indian advertising
professional. A perfect blend of an Indian soul with international outlook. One,
who encourages excellence, delivers the good on time and does it in most cost
effective manner. This is Mudra spirit.

Made in Mudra Made in India

Key Facts 2000-2001

1. Billing Million 7000


2. No. of Accounts 120
3. No of Offices 8
4. No of Division 8
5. No of Employees 549
6. Industry Ranking 4

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Branches…

Ahmedabad Hyderabad
Bangalore Kochi
Chennai Kolkata
Delhi Mumbai

Mudra Divisions

1. Horizon Porter Novelli (Public Relations)


2. ICRG (Market Research)
3. Magindia.com (Advertising Achive)
4. Mudra Digital Consulting ( Digital consultancy for brands)
5. Mudra InfoTech
6. Mudra International
7. Mudra Videotech ( Video software)
8. Prime site (Outdoor Media)
9. Optimum Media Solutions

Awards

1996 : 90 awards
Agency of the Year: Advertising club
Copywriter of the Year: Kolkata advertising Club (Freedy Birdy)

1997 :67 awards


Agency of the Year: Pioneer
Hall of Fame (A.G Krishnamurthy) Kolkata advertising Club

Major Accounts (Mumbai)….

Godrej Foods Reliance Capital


Godrej Soaps UTI
Indian Oil Corporation Indian Express
Kinetic Honda Screen
Larsen & Tubro SBI Mutual Fund
LIC McDonald’s Nestle
MTNL Hindustan Inks
Mid-Day Johnson & Johnson skincare
Reliance Industries Indiagames.com
Reliance Entertainment Balsara Household Products
Rasna

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Mudra is a fiercely Indian Agency, home grown, dismissive of sustainability of


‘Global Alignment’ of advertising account ( the same brand being handled by
one network around the globe) and unrepentant in its refusal to sell its stake to
any foreign suitor. DDB Needham has long had affiliation with what is an
agency own by Reliance’s famous Ambani family, but this has not led the two up
to the altar

Mudra’s pride is not for nothing. It is among few big agencies whose names
means something heart-held in the language of Indian Origin, it has build such
as ‘I love you Rasna’, Dhara, Bennie’s and Polo.

Mudra has a hot growth story of the 1980’s (as was Reliance textile brand Vimal).
Mudra was the 1st advertising school in India. It won many MNC account on the
strength of its market understanding and creativity. Nestle goodies particularly.

END OF MODULE II

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MODULE- III

ADVERTISING OBJECTIVES

Concept Questions

1. Define DAGMAR

Descriptive Questions

1. What is DAGMAR? Explain its functions

2. Explain Advertising objectives of moving the target audience through


hierarchy of effects model with suitable examples

3. Explain strengthening attitude as an advertising objectives

4. Advertising objectives in terms of Communication Effect.

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THE ADVERTISING OBJECTIVES ARE:

1. Inform and build awareness


2. Create brand knowledge
3. Reinforce positive attitudes about the brand
4. Precipitate buying action
5. Increase sales
6. Build up image

To facilitate the realization of advertising objectives, it is necessary that these are


laid down in specific operational terms, and are linked to the time span during
which these are to be accomplished.

1. Advertising objectives in terms of communication effects

Ads

Advertising
Ad Planning Objectives
& Advertising
Strategy Process Strategies

Marketing objectives
& Strategies

Situation Analysis

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Model 1: AIDA

THE AIDA MODEL

This fundamental model has for many years guided copywriters in writing
persuasive copy. The term AIDA is an acronym derived from the four words
describing the steps in the process.

1. A – Attention Attract the audience to the as message and then


provoke her.
2. I – Interest In the central theme that presents forceful selling point,
which arouses.
3. D – Desire To act in favorable manner, that ultimately leads to,
4. A - Action Action of purchasing the product, making an enquiry
with the retailer or whatever has been set as the copy
goal.

These are several methods employed by copywriters to increase the impact of


each step in the AIDA process.

Model 2: DAGMAR

Colley developed the DAGMAR model. The model describes the purchase
process as under:

Non - Awareness

Awareness

Comprehension

Conviction

Motivation

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Model 3: Information Processing

INFORMATION PROCESSING MODEL

William J. McGuire presented this model, in a paper presented at the symposium


of behavioral and management science sponsored by the centre for continuing
education, university of Chicago. The six steps in the persuasion process, use in
this model, are as follows:

Presentation

Attention

Yielding

Retention

Behaviour

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Model 4: Hierarchy-of-Effects

This model developed by Robert J. Lavidge and Gary A. Steiner, illustrates a


series of steps that progressively increases the commitment of a prospect to buy
the product.

Unawareness

Awareness

Knowledge

Linking [Favourable attitude]

Preference [First choice]

Conviction [Desire to buy]

Purchase

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Model 5: Industrial Conference

In this model, it is said that consumers pass through five stages:

Awareness

Acceptance

Preference

Buying Intention

Provoking Sales

Awareness is similar to “attention” as discussed earlier. In this step the emphasis


of the ad campaign is to generate brand awareness. New products
advertisements usually aim at generating awareness.

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Model 6: The Stimulus Response

Product Attributes Corporate Attributes

Attributes I O
N U
Influences Behaviour
P BLACK BOX T
U P
Perceptions T U
S T
Situational including
competitive circumstances

The above mentioned communication models have played a very significant role
in bridging the gap between communication and advertising objectives. It was
easy for ad agencies to understand the ad making process better.

STRENGTHENING ATTITUDES AS AN ADVERTISING OBJECTIVE

ATTITUDE

Attitude is the most important variable in social psychology. Attitudes govern


the response to a stimulus and lead to behaviour, usually to action. Attitude
means involvement, and readiness to action, attitude indicates the likes and
dislikes of the people about a particular product. Belief is a must in attitude. An
attitude cannot be said to exist without a belief.

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COMPONENTS OF ATTITUDE

These are the 3 main components of attitude.


1. Cognitive [awareness, comprehension, and knowledge]
2. Affective evaluation
3. Action Rendency ( Conative )

Affective

Cognitive Conative

1. Cognitive Component

The Cognitive Components is what the individual knows or is aware or believes


about the product. The concern is not only believes about the characteristic of the
object, but more or less, about its evaluations. It is important to evaluate the
object in terms of its qualities, i.e., whether the object the object is good or bad,
moral or immoral or necessary or unnecessary. Without belief / opinion of
product attitude cannot take shape.

2. Affective Component

The Affective Components is the individual’s emotional reaction to the object,


i.e., whether individuals like the object or not, whether they have favourable or
unfavourable attitude towards the object. This component states why the objects
carry a positive view.

3. Action Rendency (Conative)

This component is behavioral part of the attitude, the readiness to respond with
action. If the attitude is negative, it will adversely affect the behaviour of the
person. The response may range from ignoring the object stimulus to

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aggressively attacking it conversely; a positive attitude towards the object is a
good omen. It may result in praise and, hopefully for the marketer in the
purchase of the product. Attitude may range from indifferences to passion with
many complexities along the way. Attitudes do not spring up all of a sudden.
Experience teaches us what is good or what is bad. Attitudes do not function in
isolation. This interacts with perception, thinking, feeling, and reasoning.

Therefore, consumer attitude is important for the marketer to assess the success
of the product.

Attitude Formation and Change through Mass Communication

The factors that lead to attitude formation are:

CREATIVE POSITIVE ATTITUDE

Creative Positive Attitude can also be a worthwhile objection in case of


established product. The following creative styles and approaches can be used
for this purpose:

Message Focus

1. A message can be designed to focus a receiver’s attention. The focus may be


on the source, i.e. who is explaining the message. But care should be taken
that the sources and what he or she is communicating by actions, voice, and
role position should be in agreement and is able to attract the receiver’s
attention.

2. An alternative may be to concentrate on generating emotional reactions in a


receiver by putting him or her in pleasant mood, enhancing and bolstering
his or her ego, or using some type of emotional appeal.

3. A receiver’s attention may be directed mainly to claim being made which are
based on widely accepted principles and logic. Thus, the main objective of
this style is to focus the attention of the receiver to the message.

DAGMAR CONTINUES…. GO TO NEXT PAGE

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DAGMAR

Russel H Colley called for the need to provide explicit link between adverting
goals and advertising results in his pioneering approach called DAGMAR
[Defining advertising goals for measured advertising results] in the early 1960’s.
All communication seeks to persuade people to think, feel or act in a particular
way in their relationship with a brand.

The stages of relationship between consumer and brand, and the steps taken to
arrive at a purchase decision have been mapped over several years. Yet, despite
the efforts of many great minds, we still understand these things at little more
than a superficial level. The combination of emotional and rational elements in a
buying decision, combined with extensive external pressures mean that any
purchase decision is very complex and that each is probably unique.
Russel Colley distinguished 52 advertising goals to explain his model. He argues
that consumers start by not knowing the brand, hence – unawareness, they learn
of its existence – awareness, then gradually develop an understanding of what
the brands offer – the stages of comprehension. They come to believe the brands
message – convection and finally that the brand is right for them and so they buy
– action.

Unawareness

Awareness

Comprehensio

Conviction

Action

The DAGMAR

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DAGMAR RESTS ON 2 BASIC OBJECTIVES


I. Sales as an objective
II. Communication objective

In sales as an objective DAGMAR propounds that direct tools like mail orders
etc… can enhance sales through advertising.

In Communication as an objective; DAGMAR states that awareness for the brand


should be created and communicated.

Possible Roles for Communication

DAGMAR Role for communication


Stages
Unawareness To establish awareness of the brand’s existence on the market
Awareness To increase the level of that awareness amongst a larger
proportion of the target audience
Comprehension To educate or inform the audience about particular aspects of
the brand
Conviction To establish particular perceptions or to correct mis-
perception of the brand
Action To generate retailer visits, or mail/telephone responses. To
prompt trail or sell products

The DAGMAR approach to advertising planning is summarized in its lucid


statement defining an advertising goal. An advertising goal is specific
communication task, to be accomplished among a defined audience in 2 given
period of time.

I. A COMMUNICATION TASK

An adverting goal certainly involves a communication task.

Step 1: The communication task is based on a specific model of communication


process. There are a series of mental steps which a consumer has to go through in
purchasing a brand. [Unawareness to Action]

Step 2: Before person likes or dislikes a brand, he must learn something about it. It
is called as “Brand Comprehension”

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Step 3: The third step in the conviction step and intervenes between the
comprehension or image stage. Most measures of attitude would fall into this
category.

II. A SPECIFIC TASK

DAGMAR emphasis the communication task of advertising as contrasted to the


marketing objectives of the firm. The second important concept of DAGMAR is
that the advertising goal be specific. It should be written, measurable task
involving a starting point, a defined audience and a fixed period.

Measurable: DAGMAR needs to be made specific when actual goals are


formulated. When brand comprehension is involved, it is necessary to indicate
exactly what appeal or image is to be communicated.

Target: The audience must be well defined as to when the product is segmented
etc…

Time Period: The objective should involve a particular time period such as six
months or a year in order to evaluate the results of the ad campaign.

CONTRIBUTIONS OF DAGMAR
DAGMAR has 3 potential aspects that make it potentially useful to advertising.

1. It provides a planning tool that can lead to a systemic control over advertising
budgets and campaigns.

2. The DAGMAR approach provides guidance to the creative groups. It helps in


determining how the advertising should be pre-tested.

3. Finally, the DAGMAR approach provides a mechanism to incorporate


behavioral science theory into advertising.

CHALLENGES TO DAGMAR

The following are some criticisms to DAGMAR given below:

1. The Sales Goal: Awareness alone doesn’t affect sales. Sometimes, a consumer
may purchase a brand on impulse behavior.

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2. Practicability: A level in the hierarchy, which the campaign has to address,


has to be selected. On reality it is not so easy.

3. Measurement Problems: Measuring attitude, awareness or brand


comprehension is very difficult in practical situations.

4. Noise in the System: There are many other factors which affect sales. There is a
problem in the response models. Advertising alone cannot create awareness far
a brand always.

5. Inhibiting the Great Idea: DAGMAR is claimed to provide guidance to


creative people. The problem is it doesn’t have any influence on this work.

DAGMAR - MODULE II
It was basically developed to overcome the problems of DAGMAR

DAGMAR Module II retains many of the features of DAGMAR. The concept of


objectives is similar. An objective should specify a target audience, a specific time
period, and be based on me measurable construct. A benchmark level should be
ascertained and target levels specified. It should be based on communication
model of a process that will lead to a desired behavior. The measure can be based
on the desired action – getting people to try a brand or to increase their loyalty,
for e.g. – But will frequently focus on an intervening variable such as image or
attitude. Aggregate short term sales or market share can be used as a measure
but will usually be inappropriate.

DAGMAR Module II will extend DAGMAR in several important ways. Basically, it


will attempt to draw on current research to improve the communication model on
which DAGMAR is based. First, DAGMAR was associated with a particular
hierarchy-of-effects model of the communication process that included
awareness, comprehension, conviction and action. In DAGMAR Module II, the
emphasis is on determining the model that will apply to the particular situation.

The appropriate model could involve different intervening variables. The


hierarchy model based on the innovation adoption process, for example, used
such constructs as evaluation, trail, and adoption. If industrial or organizational
were the focus, a logical hierarchy step would be to determine, if the brand were
on a bid list. Objectives could be equally well motivated by a model that doesn’t

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have a hierarchy premises. The model suggested by Krugman, for e.g. may well
be applicable in some situations. The fact is that the communication and the
behavior process involved will often be unique to a particular situation. It is
unreasonable to expect that some universal model will always apply. The proper
approach is recognize this fact and to determine the appropriate model for the
context at hand. As Haskins suggested, the true situation includes the
qualification, “It all depends!”

Second, DAGMAR Module II will emphasize more analytical models. The


constructs like image, attitude and behavior will made more precise and capable
of empirically based analysis. In the case of behavioral constructs, attempts will
be made in chapter 7 to ascertain the long-run value of the behavior. In the case
of intervening of variables like image, attitude, attempts will be made to make
explicit the link between these constructs and behavior. Only when this link is
formalized can the key question of implementation be comfortably addressed.

PERSUASION MATRIX

During the early 20th century, especially in the post world war II period,
advertisers began to use the techniques of psychology in a big way. This
manipulation of peoples mind was exposed in books such as “The Hidden
Persuaders” and “The Process of Persuasion” by Clyde Millers. In order to
combine the communication objectives and response hierarchy psychologists
carries out a number of studies.

The combination of communication components and a response hierarchy has


been suggested by Mc Guire. He developed a persuasion matrix, which combines a
particular view of response hierarchy with the communication components. The
response hierarchy matrix can be considered as different kinds of dependent
variables that are both measurable and for one of the steps that a receiver goes
through in being persuaded. The communication components are independent
variables of the factor that an affect each step.

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The Modus Operandi of Persuasion Matrix

Independent Variable: Source Message Channel Receiver Destination


The communication
Dependent variable:
component
Steps in being
persuaded
Message presentation 0
[p]
Attention [a] +
Comprehension [c] +
Yielding [y] ++
Retention [r] ++
Behavior [b] ++

Source: McGuire “An information processing model of advertising


effectiveness”

A careful look at the persuasion matrix [illustrated overleaf] will lead us to


understand the functional aspects of the matrix. The dependent variables go
hand in hand with the independent variables. For e.g. if the attention has to be
increased for an advertisement, one could use factors such as: color, vivid
contrast, camera movements, seductive female voices etc…, through an
independent variable such as “source”.
The persuasion matrix is basically to evaluate the effectiveness of an
advertisement. McGuire suggest a simple scoring system of ++, +, 0 [and perhaps
– to be used where the component might interfere with the occurrence with one
of the steps]. Each component would then be scored with respect to the degree of
the contribution to the accomplishment of each one of the steps. Scanning the
results of each entry would provide an indication to the strengths and weakness
of the camping.

CRITICISM OF PERSUASION MATRIX

The persuasion matrix faced several criticisms:

1. Sacrificing components: A matrix can only display a few components. It


cannot successfully match all the components.

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2. Only Advertisement cannot impact sales: If a salesman uses persuasion


process to sell a product, this model is redundant. Because the components of
advertising cannot match with that of salesmanship.

3. Outdated Models: Persuasion matrix is an outdated model in the present


scenario. Many advertisements are used these days to build brands, but not to
sell brands.

ADVERTISING OBJECTIVES
The first step in developing an advertising program is to set the advertising
objectives. These objectives must flow prior decisions on the target market,
market position and market mix. The marketing positioning and market mix
strategies define the job that advertising must do in the total marketing program.

Advertising is either good or bad in its ability to achieve its objectives. Though
advertising is largely informative and persuasive in nature, yet to do a good job,
the objectives of each advertising campaign need to be clearly spelt out in
measurable terms, in order to focus clearly on the target audience and in the time
period over which these are to be achieved.

Russell H Colley called for the need to provide explicit link between advertising
goals and advertising results in his pioneering approach nicknamed DAGMAR –
Defining Advertising Goals for Measuring Results. Colley distinguished 52
advertising goals that might be used in connection with a single advertisement, a
year’s campaign for a product or a company’s entire philosophy. Some of such
goals are:

1. Announce a special reason for ”buying now” ( price, premium )


2. Build familiarity and easy recognition of the package or trademark.
3. Place advertiser in a position to select preferred distributors and dealers.
4. Persuade prospect to visit a showroom, ask for a demonstration
5. Build up the morale of the sales force of the company.
6. Implant information or attitude regarding benefits and superior features
of a brand.

According to DAGMAR, the communication task of the brand is to gain:

1. Awareness

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2. Comprehension
3. Image
4. Action

Advertising goals should, therefore be specific to the communication task to be


performed. The process of advertising goal setting thus, should begin by
understanding the dynamics of the consumer behavior and the market
environment in order to carry out the task of marketing communication
effectively.

COMMUNICATION MODELS
Psychologists all over the world made an attempt from the last century in
connecting COMMUNICATIONS with ADVERTISING OBJECTIVES. Various
communication models were developed in the above course of time. They are as
follows:

There are several models that have been developed to analyze the responses of
consumer’s behaviour to persuasive advertising communication. Some of them
are:

1. The AIDA Model Developed by E.K. strong in his book


“The psychology of selling”
2. The DAGMAR Model Developed by Russell Colley in
“Defining advertising goals for
measured advertising results”
3. An information processing Developed by William J. McGuire
Model of advertising effectiveness
4. Hierarchy of effects Model Developed by Robert J., Lavidge and
Gary A. Steiner
5. Industrial conference board Discussed by Christopher Gilson and
Model Harold W. Berkman in their book
“Advertising concepts and strategies”
6. The stimulus – Response Discussed by A.W. Fery and Jean C.
Model Halterman in their book
“Advertising”

END OF MODULE III

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MODULE- IV

BRAND MANAGEMENT

Concept Questions

1. What is advertising Brief

2. Differentiate between brand image and positioning

3. Define Brand

4. “Every Advertisement must be considered as a contribution to the


complex symbol, which is a Brand Image”. Comment.

5. Define Brand Personality

6. Define Brand Equity

7. Define Brand Essence

Descriptive Questions

1. Distinguish between image and positioning

2. State various factors affecting Brand Image. How would you develop
Brand Image/ Brand Personality strategy?

3. How would determine the positioning strategy

4. Explain any 7 positioning strategies.

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What Makes a Brand?

What does it
do to you??
Brand Equity
Value added by Brand

Brand Identity
Who the brand is
Brand Brand
Image Personality
Product Core
What is
Functional
it???

Brand Utility
What the brand

What it does
for you??

Functionality: What functional Feelings: Who is the brand for


needs the brand will satisfy personality, attitudes, perceptions,

Product Core Brand


Identity

Brand

Brand Values
Brand Utility

Performance: How does the Values: Core Values that brand


Brand satisfy the need better will stand for
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INTRODUCTION TO BRANDS

Management thinkers today strongly believe that the customer is king. The
single most important job in marketing is the job of creating and also obtaining a
customer. Numerous research studies across the world have proven that the best
way of creating and retaining customers is by building strong brands. Now what
are Brands? Products? Enhanced Products? Products with names? In a simple
equation

BRAND = PRODUCT + IMAGES

A brand is more than the mere product it stands for. A product is the amalgam of
the physical product and notional images that go with the brand when we recall
a brand, not only do we recall the physicality of the product but also the image it
conjures.

EXAMPLE: SUNDROP = SUNFLOWER OIL + (HEALTHY FAMILY + HAPPY


CHILDREN + LOVING MOTHER + TASTY FOOD +…)

Brands are an integral part of the product policy. The most distinctive skill of
marketers is their ability to create, maintain, protect and enhance brands. Brands
are long term investments made by the companies for their future to be certain.
Companies spend huge amounts of money for the creation of a powerful brand.

BRAND DEFINED:

“A brand is a name, term, sign, symbol or design, or a combination of them,


intended to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors”

- American Marketing Association, USA

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Brand composition

RATIONAL EMOTIONAL SENSUAL


APPEAL APPEAL APPEAL

RATIONAL APPEAL: These relates to the physical features that are embedded
in the brand.
Eg :- 4 stroke engine ( Hero Honda)

EMOTIONAL APPEAL: These relate to the images or the associations a


customer display with respect to the brand. (Emotions about the brands)
Eg : ICICI Bank ( Hum Hai na)

SENSUAL APPEAL: These relate to the feeling, the sensous image the brand
stands for the customers. It should trigger a feeling.
Eg: Bisleri ( Play Safe)

BRANDING FRAMEWORK

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Brand
Vision

Customer Survey Market Scan


What the brand wants to stand
for

Customer Competition
Presepective Prespective

Brand Positioning Statement

Current Category and Current Positioning


brand perceptions Landscape

What the Brand will stand for

Core Brand Values And BRAND Brand Identity Parameters


Promises

Brand
Relevant Communication Distinct

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THE ADVERTISING BRIEF

Background Creative Brief Media Brief


Advertising brief Target Audience
Profile
Key brand characteristics Target audience profile Advertising Task
objective Media Objective
Brand performance i.e Key consumer insights Suggested
Suggested Media Medias
Market performance Advertising task Geographical
Geographical market market priorities
Competitive analysis Campaign requirements Seasonality of
priorities. sales
Previous advertising of Brand promise Media Budgets
Media Budget Duration of the
The brand and the competition Brand image, personality campaign
Duration of the campaign
Budgets- media and non media

DEVELOPING BRANDS

The first task is the development of a brand is to give the product an identity
through a name. The second task is to enhance its recognition by the provision of a
symbol or identity. The third task is to develop a unique image for the brand
and to build its personality over the long term.
Thus successful brands are MAJOR ASSETS FOR A COMPANY, Example: Frooti
for Parle Exports.

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THE BRANDING PROCESS

BRAND IMAGE
BRAND RELATIONSHIP +
BRAND ATTITUDE

BR AND ASSOCIATIONS
BRAND IMAGE +
BRAND PERSONALITY

LINKS UP IN MEMEORY WITH


BRAND ASSOCIATIONS BR AND’S ATTRIBUTES
BENEIFITS

BRAND SYMBOL
BRAND LOOKS +
BRAND NAME

BRAND CHARACTER
BRAND SYMBOL +
BRAND LOGO

Brand relationship is the ultimate achievement-need of branding. All


other aspects (eg. Brand Positioning) might happen but if this does not
happen the job is not complete.
Brand relationship happens if ‘image’ and ‘attitude’ for a brand exist. It is
the resultant effect of these two aspects of a brand.

Brand Attitude defines what the brand thinks about the consumer, as per
the consumer. A brand may have ‘attitude’ on one or more aspects.

Brand Image includes two aspects of brand –its associations and its
personality. A brand may have image on one or more aspects.

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Brand Association includes all that is linked up in memory about the
brand. It could be specific to attributes, features, benefits or looks of the
brand. A brand may have a range of associations. But the one association
that stands out in memory and differentiates it becomes the ‘position’ of
the brand. A brand may have one or more associations but no ‘position’.

For a brand to have brand relationship, it should have ‘image’. And for
‘image’ a brand should have ‘association’. If among its ‘associations’, a
brand has a ‘position’ it is of great advantage. But if a brand does not have a
‘brand position’ it does not mean that it would not have brand image or
brand relationship. In other words, ‘brand position’ is not a sufficient
condition for brand relationship, but a ‘highly desirable’ condition.

Brand Looks, which have a role to play in forming/reinforcing brand


associations, are facilitated by two key properties of a brand – its name
and its symbol. While brand name is a necessary condition for existence of
brand relationship, the same is not true for brand symbol. However, if the
latter exists it helps the process of brand relationship and reinforces it.

Brand symbol two visual signals of a brand – its character (Eg. Amul girl,
Pillsbury doughboy) and its logo.

‘Necessary’ aspects for brand relationship to exist are:


o Brand name,
o Brand associations, and
o Brand attitude.

‘Highly desirable’ aspects for brand relationship to exist are (excluding the
‘necessary’ aspect):
o Brand position, and
o Brand symbol.

BRAND PERSONALITY:
“The term ‘brand personality’ is a metaphor for emotional relationship that exist
between a consumer and a brand.”
- Wendy Gorden
A brand personality is a shorthand way of describing the nature and quality of
the consumer response to a brand.

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CONDITIONS FOR BRAND PERSONALITY


The brand functional performance must inspire feelings of trust and
confidence. Example: Dove, can rouse feelings of confidence that it will
improve a middle-aged women’s complexion.

The second condition is that all elements of the marketing


communications mix mainly advertising have to give the brand a human
face, a personality. Example: Titan watches is superlative example of
everything surrounding them- from style, design and accuracy to outlets
and advertising - has contributed to the brand personality.

The third condition for creating an effective brand personality is that it


must be persuasive for the target consumer, he must find it more
attractive and relevant compared to similar brands.

The fourth and the most difficult condition for creating successful brand
personality is that it must be unique and distinctive – originally; the
attractiveness and features of the creative execution are the prerequisites.
Example: Nestle Polo – the mint with hole. Some other examples of brand
personalities are: Thums Up – taste the thunder, personality: adventurous,
excitement seeker. Pepsi – Yeh Maange More, personality: youthful,
irreverent.

People’s personalities are determined largely through the values and beliefs they
have, and the personality characteristics they develop. An example of a value or
belief is honesty. Many people believe in being honest in everything they do and
say. An example of a characteristic is confidence. This is not precisely a belief,
but more of behavior. Among the many values, beliefs and characteristics that a
person may have, there are some that are particularly likeable and to which,
people are inevitably attracted. There are about two hundred words that describe
personality characteristics.

To illustrate how people think in personality terms while judging brands, listed
in the table above are the results of consumer research into how people feel
about two companies, when asked the question: ‘If these two companies were
people, how would you describe them?’ These two companies are actually
competitors in a service industry. If you were asked which company you’d like
to be friends with, you’d probably choose Company b, as did 95 percent of other
respondents. It is not surprising that the service level of Company b can be a
better experience for customers. It is also easy to conclude that if consumers

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consistently experience these differences between the two companies, then the
brand image of Company b will be much better than that of Company A.

A further point of B interest arising out of this research is that people tend to
prefer brands that fit in with their self-concept; everyone has views about
themselves and how they would like to be seen by others. And they tend to like
personalities similar to theirs, or those whom they admire. Thus, creating a
brand with a personality similar to that of a certain type of consumer would be
an effective strategy. The closer the brand personality is to the consumer
personality (or one which they advertising-mire or aspire to), the greater will be
the willingness to buy the brand and the deeper the brand loyalty.

The process will be:

Define the target audience.


Find out what they need, want and like.
Build a consumer personality –profile based on the findings.
Create the product personality to match that profile.

Companies such as Levi Strauss that research their target audience fastidiously,
favour this type of approach. The result is a master-brand personality that is
original, masculine, sexy, youthful, rebellious, individual, free and American.

A related product-brand personality (for a specific customer group) such as


Levi’s 501 jeans is Roman-tic, sexually attractive, rebellious, physically adept,
resource, in-dependent, likes being admired.

Both profiles appeal mostly to the emotional side of people’s mind to their
feelings and sensory functions. This profiling approach aims to reinforce the self-
concept of the consumer and her aspirations. The approach is ideal for brands
that adopt a market-niche strategy, and can be extremely successful if the
segment has a high degree of global homogeneity, as is the case with Levi’s.

Companies should periodically conduct analyses of their brand personality. They


should match brand attributes with the target-segment attributes. The target
could change personality over time. This could be because of various reasons
such as:

Change in socio-economic conditions


Media and cultural influences
Change in the immediate external or internal environment of the target.

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Change in self-perception of the target (in the 1960s the majority of the
youth perceived themselves in the Beatles’ mould, in the 1990s it was
Spice Power).

Many brands have fizzled out because their attributes were not able to keep pace
with the target group’s, which changed over time (especially in the readymade
brand-ed-apparel sector). I wonder how many of us remember brands such as
Avis, Apache, Blue Lagoon and Wanted, which were doing fine till just a few
years ago. These brands significantly failed to enhance their brand personality
with the changing times. To maintain brand loyalty, the companies should
monitor their external and internal environment regularly as and when required.

Brand personality is anything and everything that influences how its target
constituencies or even the individual consumer perceives a brand or a company.
Brand personality may be the best, single marketable investment a company can
make. Creating or revitalizing a positive brand personality means reinforcing a
pillar on which the company can lay the foundation for its future.
Smart marketers utilize ‘personality’ variables to segment markets. In the late
1950s, Ford and Chevrolets were promoted as having different personalities. The
Ford buyer was identified as independent, impulsive, masculine, alert to change
and self-confident. On the other hand, the Chevrolet owner was conservative,
thrifty, prestige conscious, less masculine and seeking to avoid extremes.

The consumer generally becomes loyal to a brand, which is closest to her


thoughts and beliefs. These are bound to change over time (especially generation
to generation), and the brand, which is flexible enough to adapt to those changes
with an add-on to its personality, lives the longest.

Distinguish between brand image and positioning.

Brand Positioning Brand Image


I. It is a distinctive position the It is the distinctive impression the
brand creates in the mind of the brand creates in the mind of the
prospect. prospect.
II. It is the outcome of It is the outcome of the brand
segmentation & targeting. It is association & brand personality.
also the outcome of product
positioning.
III. It is very difficult to change the It is very easy to change the brand
positioning of a product, as the image of a brand, if the brand is
entire marketing strategy has to addressing a different segment of the
be re-worked. market.

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IV. Positioning is derived from the Brand image is a part of brand
marketing plan of a company. management.
V. Positioning is a “PUSH” Image is a “PULL” strategy.
strategy.
VI. It is developed before the It is the outcome of the advertising. In
advertising campaign is finally other words, it can be perceived only
derived. after the advertising is screened.
VII. Positioning can be an ultimate Although, image tries to provide
differentiate for a brand. distinctiveness, sometimes it is
repeated by some brand.
VIII. Positioning is usually done on Image can appeal to the non-users of
the user segment. the brand also.
IX. Positioning is usually done by Image is the derived outcome of the
the marketer/advertiser. target market.
X. It is usually done on the brand’s It is usually more on emotional plank
features or appeal. sometimes using celebrities to create an
image. Not much on brand features.

BRAND IMAGE &VARIOUS FACTORS AFFECTING IT

BRAND

Brand Relationship = Brand Image + Brand Attitude

Brand Image = Brand Associations + Brand Personality

Brand Associations = Link up in memory with brands attributes benefits and looks

Brand Looks = Brand Symbol + Brand Name

Brand Symbol = Brand Character + Brand Logo

PRODUCT

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Brand image is one of the two critical elements of brand relationship. It is a
combination of association and personality of a brand. Brand image includes a
set of BAs usually structured in a logical fashion. For example- Sunsilk helps one
have good healthy hair and good knight helps one ensure a good sleep for the
family. One or more BAs can generate a brand image and while reading a brand
image statement based on BA quite often one may feel like reading a BA
statement as both are closely linked.

Associations can exist on a host of parameters/aspects such as- provides


immediate relief, relief does not last long is affordable, is easy to get has no side
effects it is okay for children doesn’t have a bad taste its smell is somewhat floral
etc. similarly image based on BA can exist on a range of factors like quality,
effectiveness, value for money etc.

BRAND IMAGE = Brand Associations + Brand Personality

BRAND ASSOCIATIONS

PRODUCT
ATTRIBUTES INTANGIBLES
COUNTRY/
GEOGRAPHIC
AREA

CUSTOMER
BENEFITS
COMPETITORS
BRAND
NAME AND
RELATIVE
SYMBOL PRICE

PRODUCT
CLASS USE/
APPLICATION

LIFE STYLE/ CELEBRITY/


PERSONALITY PERSON

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POSTIONING STRATEGIES

Al Ries and Jack Trout first introduced the concept of positioning, during the
decade 1970-1980. Positioning was introduced with idea of being able to compete
in a tougher, more competitive marketplace.
“Positioning is a strategy of differentiating your product from that of the
competition, in the mind of the prospect.
A positioning strategy may be developed from the product’s attributes, its
specific uses, the type of uses, the product class or category, or the competition.
Each of these represents a different approach to developing a positioning
strategy. However, all of them have the ultimate objective of developing or
reinforcing an image in the minds of the audience. Following are steps of
positioning strategies:

1. Positioning by Product Characteristics/Consumer Benefits

a) This is commonly used strategy and consists in associating an object with a


product characteristic or customer benefit.
“Colgate is a cavity fighter.”
The ability to fight cavities is a product attribute that translates into a consumer
benefit.
b) Sometimes, a new product can be positioned with respect to product
characteristics that competitors have ignored.
“The toothpaste with clove oil.”
c) A product can also be positioned along two or more characteristics at the time.
“Double-action pepsodent fights cavities and freshens breath.”
d) While it is tempting to include several product characteristics at the same
time, advertising that tries to communicate too many things at the same time
may not drive home the main message effectively. Beside, the resulting image of
the product in the minds of consumers may be a fuzzy, confused one. E.g.
Infocom – too many punch lines.

e) A positioning strategy based on product characteristics, could be based on


physical characteristics, pseudo-physical characteristics, or benefits.
Physical characteristics are objective and can be measured on some physical
scale.

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Temperature, colour, sweetness, saltiness, thickness, weight.


Pseudo-physical characteristics, in contrast, are characteristics that cannot be
easily measured.
Spiciness, greasiness, creaminess, shininess (Kiwi shoe polish)
Benefits represents to advantages that promote the well being of the consumer.
Quenching thirst (Limca), not harmful to the skin, satisfying
hunger, convenience.

2. Positioning by “Price-Quality”

The price-quality issue is so important in some product category that it is a


positioning strategy in itself. On the one hand, there are certain product
categories where high price is automatically associated with quality, or where
low price is often considered to be synonymous with inferior quality.
Perfumes, whisky, leather goods, stereo systems, designer clothing.
Manufacturers of such brands charge more, partly to cover higher cost, and
partly to communicate that they are of higher quality. Such brands should be
positioned based on the price-quality approach, to communicate that higher
price and higher quality goes together.
On the other hand, there may be other brands in the same product category that
try to appeal on the basis of lower prices. They offer more by way of features and
performance and claim to be of quality that is comparable and is another way of
positioning based on price-quality.
Videocon’s value-for-money positioning.
Zenith Computers: “MNC quality. Indian price.

3. Positioning by Use or Approach

Associating the product with a specific use is another commonly used


positioning strategy.
Sometimes, this type of positioning strategy may also be used to expand market
for a particular brand. The example of “Arm and Hammer”, an international
baking soda brand, mentioned earlier, is an example of this. Arm and Hammer
successfully positioned their product as an odour-destroying agent in
refrigerators. E.g. FNL
Vicks: “Use Vicks when cold attacks.”
Dettol: The liquid protection against bacteria.”
Clinic All Clear: “The dandruff-control shampoo.”

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4. Positioning by Product User

This is a strategy of associating the product with a particular type or class of


user. One way of doing this is through celebrity endorsements.
E.g. Lux-earlier their positioning was ‘Filmi Sitaroan Ka Saboon’, now new
Aishwarya’s advertise says that by using Lux you can also become a star.

5. Positioning by Product Class

Sometimes in order to counter the competition, some brands need to associate


themselves with a unique classic example of this is “Seven Up, the uncola”,
mentioned earlier.
Other relevant example is diet beers (Kingfisher) and ice beers (recently launched
by united Breweries) that positioning themselves with respect to regular beer.

6. Positioning by Culture Symbol

This type of positioning strategy consist in identifying something that is very


meaningful to people, and that competitors are not using, and then associating
the brand with that symbol. Advertising is full of examples of this type of
positioning strategy. A classic international example is Marlboro cigarette’
American cowboy, which helped differentiate Marlboro from other cigarette
brands, and developed the Marlboro Man.
E.g. Onida’s green eyed devil also set Onida apart from the competition
by positioning it as something that is envied and talked about by
neighbours.
This type of positioning tends to have high recall value because of the use of
meaningful and relevant symbols.

7. Positioning by Competitor

This type of positioning strategy consists in making consumers think that your
brand is better than, or as good as the competitors. The competition is used as the
point of reference.

This positioning strategy can be used to advantage in certain cases.


a) First, when the competitor has an established image that has been built up
over the years, this image can be used as “bridge” to communicate
another image. For example, if someone wants to know where a particular

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office is, it would be easier to say it is net to the City Bank building rather
than describing the various streets to get there.
b) Secondly, sometime it is not important how good customers think you are.
It is more important that they think that you are at least as good as the
competition.
Positioning with respect to competitors can also be done through comparative
advertising.

HOW WOULD YOU DETERMINE POSITIONING


STRATEGY
Research to develop a suitable positioning for a brand should try to get
information on the following:

Who are the competitors?

Pepsi for example, might define its competitors as follows:


Other cola drinks
Non diet soft drinks
All soft drinks
Nonalcoholic beverages All
beverages except water

In most cases, there will be a primary group of competitors, and one or more
secondly competitors. In this case, other cola drinks could be considered primary
competitors, and secondary competitors.

How are their brands perceived and evaluated?

To determine how competitor brands are perceived, an appropriate set of


product attributes should first be chosen for the comparison. Attributes include
not only product characteristics and customer benefits, but also product
association such as product uses or product users. Foe example, a relevant
attribute for beer could be the association of a brand with outdoor picnics, apart
from taste, strength, and so on.
Once a relevant set of attributes has been chosen, the next step is to do a survey
in which prospects are asked to rate competing brands on each of these
attributes. This is usually done through rating scale questions, as mentioned in
an earlier section on how to measure consumer perceptions.

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How are their brands positioned?

The next step is to determine how competitors are positioned with respect to the
relevant attributes. What is the customer’s image of the various competitors?
Which competitors are perceived as similar and which ones as different?

Who are the customers for our brand?

Analyzing the customers for our brand is the last step before a positioning
decision is taken. One-way of doing this is to identify which attributes or
customer benefits are most important and then identify groups of customers who
value similar benefits.
Conducting the above four steps provides answers that will help make actual
positioning decision. Even if research is not feasible or justifiable, the information
should be obtained through secondary sources.

While making the positioning decision, certain guidelines should be followed:

An economic analysis should guide the decision. For example, if the


positioning strategy id to be based on a new product attribute, a sizeable
segment should be interested in the new attribute.

If an existing positioning is working, then a repositioning strategy should


not be consider.

A positioning strategy that exploits the market opportunity should not be


chosen if it promises something that the product cannot deliver.
Therefore, prier to positioning, it is important to conduct blind taste-test,
in-home or in-office use tests, to make sure that the product can deliver
what it promises.

While selecting a positioning strategy, the use of any existing symbols


should be considered. Symbols can have strong associations and can
strengthen the positioning of a brand.

A positioning strategy, like an advertising objective, should be measurable. It


should be monitored over time to see if any changes are needed.

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A positioning strategy, to be effective, should go beyond product attributes and


be based on a richer knowledge of the consumer. In other wards, positioning
should also try to associate the product with people’s lifestyle, and even feeling
related to the product.

BRAND EQUITY
In today’s environment, building strong brands and establishing brand equity is
becoming more and more challenging. A strong brand acts as a promise, leading
faithful customers to pay a premium over competitive products. The most
important assets of any business are intangible: its company name, brand,
symbols, perceived quality, name awareness, patents, trademarks etc. these
assets comprise brand equity, a primary source of competitive advantage.

MEASURING BRAND EQUITY


Most evaluations of brand equity involve utility estimations. Value (utility) of a
product features and price level and also measuring the overall utility of a
product, including brand name. The difference between total utility and utility of
product features is the value of the brand. Monetary value, intangibles and
perceived quality are also used in the brand equity measurement.

Brand Equity can provide strategic advantages by:

Use leverage when introducing new products.


Brand can be linked to a quality image that buyers want to be associated
with
Can lead to greater loyalty from customers. Offer a strong defence against
new products and new competitors.
Can lead to higher product trails and repeat purchasing, due to buyer
awareness of the brand.

Example: BPL brand has been valued at Rs. 600 Crores


HLL brand has been valued at Rs. 900 Crores

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BUILDING BLOCKS OF BRAND

Brand
Equity
Long Term Profits

Consumer Franchisee

Brand
Loyalty Premium Pricing

Relationship

Brand
Preference

Persuasion Salience

Brand Identity Brand Awareness

Brand Personality Brand Recall


Brand Image Brand Recognition
(Image of the
Product, Maker,
User, Competing
Brands)

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BACARDI - CASE EXAMPLE

Background

The spirits market in India is still at an evolutionary stage and has only emerged
from being a regulated market with very few established local players. Indian
consumers have not had anywhere near the kind of choice available in the
developed markets of the world. India has traditionally been a brown spirit
market, which meant that rum and whisky have been the dominant product
categories, with brandy claiming some limited share. Until a few years ago,
white spirits, wines, liquors, cognacs, etc, where only present on upper and niche
markets and all put together were negligible in comparison to browns. This
situation was common in many parts of the world as well –but 20 years ago.
Those markets have seen developed and white spirits now hold strong category
shares.

Under the impact of the economic and cultural liberalization policies that were
put in to effect in India during the early ‘90s, the spirit industry also saw a
gradual shift towards white spirits and lighthearted drinking, away from the
traditionally serious brown spirits

THE BRAND

Brand history

In 1962, Don Facundo Bacardi set up a small tin-roofed distillery in Santiago,


Cuba. Here he began manufacturing new Bacardi rum using a formula he had hit
upon after many years of experimentation.

Rum was, at that time, a fiery drink used by Caribbean seamen to ward off the
cold; Don Facundo’s new formulation transformed rum in to a smoother, lighter,
milder drink, called Bacardi. Over the next few years, rum gained popularity all
over Cuba, and Don Facundo began expanding his operations. He kept the
formula a closely guarded as the Bacardi family’s success story took hold. The
product was entered in international exhibitions, where it was acclaimed
alongside such wonders as A.G. Bell’s telephone. His sons dreamt of expanding
the brand outside Cuba; Cuba was then on the road to independence and was
aided by a considerable US presence. Put together, these factors gave Bacardi
rum a foot-hold in the US, the first step towards becoming a huge international
brand.

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Today Bacardi sells in over 170 countries, its popularity the world over has made it
the No.1 international spirita brand in the world
The Bacardi Bat

Inspite of 6 generations of the Bacardi family distinguishing itself in business,


philanthropy and public service, easily the most recognizable member of the
family remains the one with no name. It is the Bacardi Bat, the trademark that
appears on the label of every product carrying the Bacardi surname.

Legend has it that Don Facundo’s wife, Donna Amalia Lucia Victoria suggested
making the Bat the trademark for the new rum, perhaps because of th colony of
fruit bats living in the rafters of the first Bacardi distillery. Donna Amalia, who
was cultured in the arts believed bats represented a blessing of good health,
fortune and family unity. But this suggestion of hers was also hard-headed and
pragmatic. Illiteracy was common in the 90th century, and for a product to get
recognized and sell, it needed a memorable graphic logo- a trademark. The bat
mythology helped. That is the power of mnemonic.

Word of Don Facundo’s bat spread around the world along with his smooth new
rum. The bats, local storyteller attested, brought good fortune and added magical
powers to his rum. Today Bacardi Bat is a welcome character in more than 170
countries where Bacardi rum is also sold and enjoyed, Accomplishing everything it
was supposed to do for more than century, the bat has elevated its presence to
new heights.

BACARDI IN THE INDIAN CONTEXT

Alcohol had never been comfortably accepted by post-independence Indian


society. Drinking was generally associated with the darker side of life, with deep
and unholy secrets. Dingy bars, seedy-looking characters and drunk villains in
hindi movies, in stark contrast with the clean, honest and upright non drinking
hero-this typified society’s outward attitude to alcohol drinking. Further the
absence of international players in the spirits category, as well as comfortably
entrenched local brands, meant that the consumer had never been exposed to the
glitzy and slick side of spirits marketing until the 1990’s came along.

The 90’s ushered in the winds of change in the entire social and economic fabric
of the country, and like everything else, spirits shifted in to gradual movement
away from the traditional perception. Bacardi was positioned to ride on this
change. One of the key elements to be built in to Bacardi’s brand character was,
therefore its image as the ‘the icon of new age drinking’.Changing attitudes to

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drinking were alreadt apparent, in that drinking was gradually coming out into
the open, and especially in urban areas, gaining acceptance. By associating with,
and by accelerating this process of change in a positive manner, the brand
immediately gained the relevance in the minds of the consumer.

In India, Bacardi Carta Blanca’s core value was defined as vibrant sensuality.
This represents an unaffected pursuit of enjoyment through one’s senses. Vibrant
because the character of the brand is passionate, energetic and upbeat.
Sensuality, strictly speaking is the appreciation through tactile senses(feel, hear,
taste…). (In literal terms, sensuality is the overall sensory experience
surrounding Carta Blanca)

Vibrant sensuality therefore means “living life true to your senses” in a style that
is energetic and colourful (as opposed to languid or passive pleasure). Within the
Bacardi portfolio, Carta Blancas the flagship brand. It is the main image driver of
the umbrella brand Bacardi; it is also the Indian consumer’s introduction to the
brand.
Selling Strategy for Bacardi Carta Blanca

BRAND/ PRODUCT

What is the brand/ product to be advertised?

A range of rums, under the Bacardi name;historically better known for white
rum and associated with the light-hearted Caribbean spirit of fun, frolic and
water.

BRAND / POSITION

What is the position the brand currently holds in the consumer’s mind-and
why?

An international brand of (exotic) alcohol

BRAND OBJECTIVE

How do we want the brand to be positioned in the consumer’s mind?

As an icon of new age drinking

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CONCEPTUAL TARGET

What ‘natural’ groupings of consumers, bound by a common set of values,


singular outlook, attitudes, aspirations, do we wish to reach?

Post- liberalization young adults

CORE DESIRE

What is the conceptual target’s most deeply held desire, need, want, hope, that
the brand best fulfils?

Unshackle themselves

ROLE OF THE PRODUCT

What is the functional/symbolic role of the product category in the lives of the
consumer?

Functional: Relaxant
Social lubricant
Gives a high
Symbolic : Let your hair down…. Have fun

REASON TO BELIEVE

What is the most compelling rationale to support the role of the product?

Less intense in looks, hence eminently adaptable to broader drinking occasions.

BRAND ESSENCE

What is the enduring spirit which anchors the brand-and how should it speak
to the deeply held values of the conceptual target?

Vibrant sensuality

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BRAND ACTIVITIES
TELEVISION ACTIVITY

Around the world Bacardi has a long association with a ‘sun-sea-sand’ imagery
which has successfully maintained its brand salience, especially during launch
phases. This imagery was also found to lend itself perfectly to the positioning
developed for the Indian market. The sun-sea-sand route was researched, and
was found to be very well received by consumers. This came through on the
concept testing study, as well as on quantitative research parameters. The
concept that was tested was “Get away to be relaxed in a carefree world”, via a
sun-sea-sand execution. (The first concept in the research section above).
Quantitative consumer research showed a strong acceptance of this particular
concept, the product and its packaging.

Communication for the brand was led by television advertising, which used to
international, ‘Friends’ commercial. The various elements in the theme TV
commercial (sun, sea, sand, free spirited interaction between the sexes) were in
sync with the new attitudes to drinking, and with Bacardi as an ‘icon of new age
drinking’. The commercial represented taking drinking out into the open, far
away from the dark atmosphere of illicit pleasures.

BELOW THE LINE ACTIVITY

This was supported by an extensive below-the-line package for the retail


channel as well as on premise outlets ( pubs, bars, restaurants, etc.,). The package
developed on the sun-sea-sand theme was intended to maintain high salience
levels especially during the crucial launch phase.

One critical element of the Bacardi persona was the several promotions that were
conducted at pubs and discotheques across the metros in India. The pub-going
culture, which is still developing, has got a strong impetus due to Bacardi’s
popularization of the concept.

A series of innovative promotion mechanics were designed for these on-premise


outlets. The promos served various objectives:

To announce the launch of the brand, and to give the target consumer a
feel of its trendy, young and vibrant character.

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To generate a sampling of the product- this was a critical role given the
fact that while rum was still a new product for the consumer.

To gain substantial incremental volume sales.

Of course the promotions also offered excellent opportunities to develop different elements of
the Bacardi brand character. They have now been built in to the long standing
properties of the brand. Some of the key properties are:

BATSTAGE WITH BACARDI

The Bacardi core consumer being 18-25 years old and urban, music is an effective
medium to use get through to him. The idea was to sponsor live bands to
perform on a given night in pubs and disco-theques. This was to be done on a
regular basis and branded “ Batstage with Bacardi”.

THE BRAND TODAY


In the first year of launch, Bacardi attained and surpassed its volume targets.
This can be gauged from the fact that the first year’s volumes exceeded those of
its closest competitor, Smirnoff vodka, a brand that has been established in the
market for over 4 years. Initial reports indicate that the volume and its growth
are being sustained in the second year of operations. Already, Bacardi Carta
Blanca is reported to have garnered over 10 percent of the international spirits
market in India.

END OF MODULE IV

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MODULE- V

COPYWRITING

Concept Question:

1. Principles of Copy writing

Descriptive Question:

1. Explain stages of copy production

2. Explain the creative process of copywriting

3. Write three components of attitude

4. Explain the Persuasion Matrix

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INTRODUCTION TO COPYWRITING
By 1910, Henry Ford had spent five years and thousand dollars perfecting his
new Model T car. It was time to advertise. But what sort of ad should he run?
Ads at that time were mostly art or photos, with a very little copy or words. But
Ford believed that art alone couldn’t sell his model T. It had to described in
detail.

A few weeks later, readers of the “Saturday Evening Post” were startled to see a
two-page long black and white ad, with no pictures and all words!

“When Ford speaks, the world listens”, boldly declared the headline. The ad
contained more words or copy (1200 words to be exact) than any ad of the day. It
detailed the financial condition of the Ford Company, listed its 28 factories
assembly plants and branches, and described how Model T was invented. Ford
was proven right in no time at all. The ad soon produced more sales than any
other auto ad in history. And it gave Henry Ford his first push toward beginning
the most profitable manufacturing company in the world, 10 years later.

The above example illustrates the power and potential of copy to stimulate
action.

Let us now look at the specific role of copywriting in the advertising creative
process. There are two aspects to advertising creativity—“Creativity Strategy”
and “Creative Tactics”. Both “Strategy” and “Tactics” are terms borrowed from
military terminology. While Strategy refers to the broad, overall planning of an
activity, Tactics refers to the detailed steps taken to execute that plan.

Creative Strategy specifies what the advertising is to convey. It is the starting


point for Creative Tactics. It involves decisions such as brand positioning, image,
personality and attributes.

Example: Macfast serves delicious wholesome, food made-on-the-spot to your


order that provides a change from the usual fast-food meals.

Creative Tactics, on the other hand, determine how the message is going to be
conveyed. It includes both verbal and visual development of the message. In this
section, we are concerned with copy, or Verbal Creative Tactics. Verbal Creative
Tactics involve decisions such as type of copy, appeal, etc. which will examine in
detail later.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
Example: “Macfast --- The fffrresh fast –food alternative”.

Accompanying visual creative tactics for TV commercial for the restaurant could
include—extreme close-ups of the food, showing freshness of ingredients, close-
ups of eaters to show enjoyment of food, or the above slogan written in an
unusual type style.

Let us now refer back to the Model T, to understand the objectives of copy. This
example illustrated the ultimate purpose of copy—to persuade or remind people
to take some action, in order to satisfy a need.

However, good copy must fulfill some basic objectives, before going on to induce
action. As a first step, copy must gain the prospect’s attention. Simply having a
great idea is not enough it needs to be presented properly and have stopping
power. There are several devices which could be used to achieve this attention-
gaining function.

The headline is usually the major attention-gaining device. It can halt the
progress of readers through newspaper or a magazine. Various tactics may be
used for gaining attention through headlines. We shall examine these in detail
later.

One effective type of headline is to ask question and get prospects to read on, to
find the answer. For example, the Grasim Suitings caption:

“How does Robert De Niro turn on the Heat?”

There is a pun on the word “heat”, which refers to the movie starring Robert De
Niro. The curiosity of the reader is aroused and he is tempted to read further.
The message: Wearing Grasim Suitings makes you a star.

You ‘ve now grabbed your customer’s attention. He’s looking at the ad. But if
you can’t keep his interest, you’re going to lose him. As a copywriter, you will
need to talk to him, about him, about his problems and needs.

Interesting copy is like an effective salesman. If it is inviting, enthusiastic and


encourages participation, it will hold the prospect. If not, it will be shunned like a
rude salesman! Copy can hold interest through use of subheads, humour
(provided it is relevant), invigorating body copy, variety in sentence construction
and length, choice of words, and combinations of letters to mention a few
techniques. Again we will discuss these in greater detail, in later section.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

PRINCIPLES OF COPYWRITING
Be Concise
Be Simple
Be Specific
Be Personal
Make it Believable
Be Clear
Make it intersrting
Make it Persuasive
Keep a surprise in the Copy
Follow the Headline and Illustration.

The renowned advertising agency, McCann Erickson’s motto is “Advertising is the


truth well told,” Copy must also strive to live up to this motto. The truth as
perceived by the consumer (or credibility0 is more important than the literal
truth.

Copy must present the facts in a manner that consumers can believe. This often
poses a challenge for copywriters. A simple example will illustrate this.

Lets say an instant remedy has been discovered to cure the common cold. While
this may be absolutely true it could be probably not be communicated directly in
the advertising. This is because most consumers have deep-rooted skepticisms
regarding cold remedies, and would be reluctant to accept a message about
instant cure. In this case, the copy would have to convey the message in an
indirect, yet credible manner.

It is not sufficient for a copy to say, “a product has this and this, so buy it.”
Consumer reaction is likely to be: “What will all those features do for me?”

Having informed prospects about the product’s features and established


credibility, the next task of copy is therefore to create a desire for the product.
The copy must promise a benefit to the consumer, and show him how and why
he will be better off with the product than without it. Example

“The Apco appliance is easy to use because it has 14 moving parts, attractive
because it comes in three colours, and safe because its plug is shielded.”

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
The above example is likely to create desire for the product, because it states the
products benefits and backs them with proof. This is also known as a “reason-
why” or “rational” appeal.

The important point to remember is that the benefit must be matched with a real
or perceived need of the consumer, in order to heighten desire. It should also be
presented in such a way that consumers believe it and understand its application
to their own situation.

Finally, having taken the consumer through the initial stages of attention,
interest, credibility and desire copy must achieve its ultimate purpose- motivate
the prospect to take some action.

The copy must spell out precisely what the prospect is expected to do. The
proposed action may be immediate, e.g. “ Visit our showroom today”, or future,
e.g.” Come to our sale, September 14” .The action may be directly requested as
above, or indirectly implied in the copy (asking the prospect to associate a
manufacturer’s product with high-quality).

Common “ action aids” used by copywriters are- convenient and ample


availability, simple payment terms, immediate pick up or delivery, special
bonuses for buying now, memorable slogans and so on. The important to
remember is that consumers are essentially lazy and have to be “eased” into a
sale.

STAGES IN COPY PRODUCTION:

GAIN ATTENTION

HOLD INTEREST

CREDIBILITY

CREATE DESIRE
(Product benefits)

MOTIVATE ACTION
(Use tools of advertising)
RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

BIG IDEA

Having acquired background information about the product, the copywriter


must first come up with a basic concept, around which to build the campaign.
This is called “big Idea” and is believed by most advertising professional to be
the hallmark of a great campaign.

The big Idea can be developed through certain techniques.


Projecting cultural values relevant to the products use.
Stretching the products use beyond a believable level.
Building a little drama into the product.
Looking at the product in a completely different light and asking
questions beyond its basic use.

To be effective, the big idea should be

Original Eg : Raymond – The Complete man


Relevant
Have a long-term relationship with the brand eg Pulsar – Definitely Male.
Share an exclusive belonging with the brand.
Lend itself to exclusive across various media.
Have universal appeal.

STRATIVITY MODEL – LOWE AD AGENCY

COPY COPY
THINKING STRUCTURE

COPY FORMAT COPY STYLE

GOOD COPY WRITING

END OF MODULE V

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MODULE- VI

MEDIA
Concept Questions
1. Explain Media
2. Urban and Rural Media
3. Media Brief
4. List out components of Media Mix
5. What is media planning
6. Why is media planning important
7. What is pre and post media mix
8. List out various media vehicles available in India
9. Explain Media reach
10. Distinguish Print Media v/s Electronic Media
11. Media Vehicles in rural communication / urban communication
12. List out the Do’s and Don’ts of media planning
13. Sources of Media Research in India
14. List any three methods of arriving at Media Budget
15. Name the main media organizations in India
16. Name one Media channel for each class of Media
17. Media Buying
18. Media Scheduling
19. Define Media Related terminology – GRP, TRP, Reach, Frequency &
Impact.

Descriptive Question
1. Explain the Merits and Demerits of Different Media (any one) in India.
2. Explain the various media vehicles with emphasis on Merits and demerits
(List out at least two)
3. How is Media Research done in India?
4. Highlight the role of Media Research with examples
5. How do you foresee Internet as the future medium in India?
6. Do you think Internet as a medium has failed in India?
7. What are the main elements of Media Plan? What is the process?
8. What are the main issues in deciding media budget?
9. Media is becoming more important in the advertising strategy. Comment
10. Discuss the non-conventional media mix in India?
11. Measurement / Media Models/ Media Buying/ Implementation/
Scheduling.
12. Media Models

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

THE GREAT MEDIA EXPLOSION


You can read the news today from any of the 6,830 English or 39,825 vernacular
newspapers published in India; catch it on the tube –22 terrestrial and over 100
satellite channels, with 8 devoted to news; log on and surf the net for the latest;
or get the days headlines on your mobile. Numbers bear this out; with 10 million
television households, India boasts the third largest television market in the
world, with the cumulative circulation exceeding 12 crores, its print industry
ranks 5th globally. A bouquet of private satellite channels has segmented the
market in terms of veiwership and advertising. There are 35 million cable and
satellite households in the country.

Big numbers mean tough time for today’s media planners, media planning has
gained dominance in India because of the following factors: -

Increasing no. of media option: - a media planner has to be skilled


professional with good analytical and decision making skills, as the option
to select in media have grown manifold. e.g.: - There are 16 different
magazines for women in India in English language!!!

Growing importance of media research: - media research has been in its


infancy in India, until recently. However, a number of independent
research organizations have sprung up over the last few years. Media
research is now being carried out by different agencies using various
tools.

Audience “fragmentation”: -as a result of increasing no. Have specialized


media options, the no. Of people watching a particular TV program, or
reading a particular publication has become considerably smaller. This is
known as audience “fragmentation”. Reaching these specialized
audiences requires careful selection of the best combination of media.

Growing no. Of media –literate clients: - advertisers today are becoming


more cost conscious and media savvy. They want to get maximum
mileage for their campaigns within limited advertising budgets. Hence, a
media planner has to select innovative media to reduce cost.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MEDIA DEPARTMENT IN AN AD-AGENCY

MEDIA PLANNING MEDIA BUYING

VARIOUS MEDIA VEHICLES IN INDIA

Outdoor Advertising Media


Indoor Advertising
(Media Conventional) Posters
Hoardings
Print Radio Travel Displays
Television Bus Shelter
Movie Theatre Local Trains
Cable TV Sky Writing
Sandwich man

Direct Advertising Media

Envelop Enclosures
Booklets and Catalogue
Sales Letter
Gift Novelties
Package Inserts

Rural Advertising Emerging Media


(Unconventional) (Innovative Media)
Folk Theatre Internet
Puppetry Atm’s
Wall Paintings STD Booth’s (Zip Phone)
Videos On Wheel Short Messaging Service (Sms)
Post Card Wap Enabled Device
Computer Kiosks

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MEDIA COMPARISONS (EFFECTIVE MEDIA MIX)

Medium Creative Advantages Creative Disadvantages

Newspapers impact of black against less visual impact.


White.

Magazines higher quality than size not as large as


prestige factor. newspaper.
graphic & color possibilities

Television combination of sight, sound, limited time commercial,


& Movement. “What you see is clutter.
What you get”- credibility.

Radio opportunity to use sound. No visual excitement.


Can personalize a message. Fleeting message,
Distracted message.

MAIN ISSUES IN DECIDING THE MEDIA BUDGETS


As 85% of the client’s money go into media planning, the ad-agency must see
that the client’s money is spent in the most useful and effective manner. The
advertising agency takes the following issues into consideration when arriving at
the media budget. Many a times even the client (company) fixes the media budget
and accordingly the agent and the client sit together and finalize the deal. The
marketing mix or 4p’s can effect the media decisions very strongly.

1. Interaction of the media with the product: - the very nature of the product
may suggest one media over the other.. A product like a perfume needs a
distinct image and would advertise in a women’s magazine.
Eg:- mercedes benz India ltd (MBIL) used only print medium ( magazines
and newspapers) to highlight its safety features in their models like c-class, s-
class, and e-class (RK swamy bbdo is their ad-agency.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
2. Interaction of media with the price: - price is also a key factor to be
considered in choosing the topic of media. A “premium priced” product will
require the use of prestigious or class media to support its market image.
Eg: - Shaw Wallace launched “antiquity rare premium whisky” to create a
new segment in Indian whisky market----that of a super premium whisky. It
was targeted to the upscale premium whisky consumers. It used “below the
line” media and banked on direct marketing campaign. It distribute
miniature bottle samples and also sponsored the amateur golf tournament in
india.

3. Interaction of media with the place decision: - the product is the channel of
distribution also important in media planning. If the product is available in
the local areas, localized media should be used.
Eg: - O & M designed ads for the orange mobile only for the Mumbai market.
Hence, they compared airtime along with vada pav and cutting chai, which
are famous in Mumbai in their outdoor media.

4. Interaction of media with promotion mix: - the effort devoted to advertising,


personally selling and sales promotion techniques can also affect the media
plan. The use of sales promotion device like coupon may use the of
newspaper as the medium to distribute the coupons.
Eg: - holiday companies like Thomas cook, Cox & kings prefer print ads in
newspaper like to to generate leads by giving sales promotion schemes.
Thus, media decisions have to be taken carefully by even taking into
preview in which stage of PLC the brand is.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MEDIA PLANNING PROCESS

Advertising Objectives & Strategy


Brand Awareness Brand Persuasion

Budget Advertising profile & Media habits

Media Objective

Advertising Exposure
Reach Frequency

Media Media Strategy

TV, Newspapers,
Magazines, Radio, Media Selection Media Scheduling
Outdoor Readership
profile Viewership Media Operations
profile

Negotiation Buying

Placement & Monitoring

WHAT IS REACH

The total number of different persons exposed to an ad at once is its reach.


The number of different persons exposed to an ad at least once among its
defined “target audience” is its “effective reach”
The total number of different persons reached at least once for an entire
media schedule is called its cumulative reach
Reach is always meant to be unduplicated and for a specified period of
time.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

WHAT IS FREQUENCY

The number of times a person is exposed to an ad is its Frequency.


The minimum number of times (threshold) an ad is to be exposed to each
reached person among the defined target audience is its effective
frequency.
The average number of times a person is exposed to the entire media
schedule is its average frequency.
Like reach, frequency is also for a specified period of time.

REACH X FREQUENCY = TOTAL AD EXPOSURE

THE FUNNEL

MARKETING DECISIONS

ADVERTISING DECISIONS
FUNNEL APPROACH
TO MEDIA DECISION
MAKING
MEDIA DECISIONS

THE MEDIA PLAN IS A PART OF ADVERTISING PLAN, WHICH IS A PART


OF OVERALL MARKETING PLAN…

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
MEDIA OBJECTIVES

Before the media strategy is formulated, the advertising planner and the media
planner will “set the objectives”. Specific, operational are formulated. An
example of a media goal is as follows: -
“Use media that will provide broad national coverage” these are some essential
terms to set the media objectives

Reach: - It refers to the total number of people or households exposed to


an advertising message in an issue of a publication, or in radio/tv program,
once during a given period of time. Time period for broadcast media in 4
weeks, and life of an issue for point (say newspaper, one day) reach is
expressed in percentage terms.

Frequency: - Also referred to as OTS (opportunity to see), refers to


number of times a person or household is exposed to the same advertising
message in program or an issue, during the given time period.

Frequency is expressed as an average of

F
= TOTAL NO. OF EXPOSURES
REACH

GROSS RATING POINTS (GRP’S)

Sometimes the media planner may want to set his goal in terms of the best
possible combination of reach and frequency. This is known as the “GRP’s”. it is
an indication of the total “weight” of the media buy. It is calculated by
multiplying reach and frequency.
E.g.: Programme ‘X’ has a reach of 60 and an average frequency of 5. The GRP’s
for the programme are 60*5 = 300

MEDIA PROCESS

MEDIA MEDIA MEDIA MEDIA


STRATEGY PLANNING BUYING SCHEDULING

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

THE MEDIA STRATEGY

Media Strategy refers to a specific course of action with the media. It describes
how the media planner will achieve the stated media objectives. There are 4
strategic decisions to be taken by the media planner:

Which media will be used?


How often each will be used?
How much of each will be used?
When will they be used?

The media planner has to take the following factors when developing a media
strategy:

Scope of the target audience


Consumer purchase patterns
Mechanical considerations

THE MEDIA PLANNING

The first step in media planning i.e. to match the media with the target group.
The better the match of the target with the media, the less will be the money
wasted on delivering the messages to the consumers for whom the product was
intended to. This is known as “weighting”.

The second step in media planning process will be the selection of the “Media
Mix” or the most optimal combination of media. It is important for the media
planner to distinguish between media types, vehicles and media units.

E.g. Contract Ad Agency used only Star Network for planning the media for the
launch of Cadbury’s new chocolate “TEMPTATIONS”. In this process it was a
WIN-WIN situation to both CADBURY and STAR because both of them got
benefited. Contract launched a sales promotion scheme with the help of Star
Network for Temptations.

MEDIA BUYING

Media planning also involves allocating media budgets to media types. Budgets
may be allocated based on the importance of media types and/or geographic
regions. Geographic allocation usually marketing objectives

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

REGION SALES POTENTIAL BUDGET GOAL


(based on sales potential)
SOUTH 25% Rs. 50 lakhs
EAST 15% Rs. 30 lakhs
WEST 30% Rs. 60 lakhs
NORTH 10% Rs. 20 lakhs

Media buying may be defined as the process of executing a schedule of desired


media weights for brands at a lowest possible cost. The media buying process
can be divided into 2 broad stages:

Deciding what to buy


Setting out to buy at the most competitive rates.

SPECIALIZED MEDIA SERVICES

With clients becoming particular about media buying rates, some agencies are
creating their own specialized media buying houses. Such agencies are termed
“AOR” (Agencies Of Record). JWT’s AOR is called FULCRUM, Lintas call it
INITIATIVE MEDIA, Mudra’s AOR is called OPTIMUM MEDIA SOLUTIONS.
Agencies are now turning their attention towards independent media buying
houses, because these days satellite channels and print media are offering heavy
discounts on bulk buying. Two specialist independent networks are discussed
below:

Mind share: This is an independent network of WPP group, the larges agency
conglomerate in the world. Mindshare entered the Indian market in 1996. it
purchase media for its group agencies JWT, Contract, O&M and FCB ULKA. It is
surprising to know that Mindshare got its first client no the day it opened its
office. HLL purchased media worth 600 crore from Mindshare. Today, its annual
billings are 1500 crore.

Carat Media: This is Europe’s leading media specialist. It entered into India in
1998. Carat offers the Indian clients media consultancy, which includes media
strategy, research planning, buying, and media selection as a total package of
services. It purchases media for agencies like Mudra, Clarion, and RK Swamy
BBDO. Last years billing were 90 crore.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
MEDIA SCHEDULING

This is the final step in the media process (media plan). It refers to the timing of
the media insertions. A media schedule is usually prepared for the entire
campaign period, which is usually for a period of 6 months or 1 year. The
following factors are taken into consideration in preparing a media schedule:

Seasonal patterns of the products (Monte Carlo advertises more in


winters)
Repurchase cycles (FMCG’s require more advertising)
Product life cycle (a product in introductory stage requires more
advertising)
Competitor’s media schedule (Coca-Cola and Pepsi)

DIFFERENT PATTERNS OF MEDIA SCHEDULING


Continuous Advertising: this refers to advertising without breaks.
Products with short repurchase cycle that are purchased frequently are the
examples. E.g. HLL, Coca-Cola, Pepsi etc.

Flighting: this is an intermittent pattern with gaps where no advertising is


done. This is a case for seasonal products, where funding is limited and
the products with a long repurchase cycle. E.g. CRY (Child Relief and
You) cards and Monte Carlo woolen wears.

Pulsing: this is continuous advertising, which gets heavy during certain


periods. Seasonal items follow this pattern of advertising. E.g. Rasna
(Rozana and Utsav)

Blinkering: this is strong advertising during periods with short gaps in


between. E.g. Eagle Diaries start advertising from September and stops
advertising in October and again go for strong advertising (bursts) in
November and December

Thus the media planning is very complicated and involves a lot of expertise.
Media planners play a very crucial role in media budget decisions.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MEDIA STRATEGY TODAY

Analysis driven

Targeting Placement

Media Choice Weight Level Scheduling

MEDIA STRATEGY TOMORROW

Brand Experience Driven

Targeting Placement

Media Choice Weight Level Scheduling


Narrowed by
attitude,
widened by
demographic
Unconfined by Leading to
media action not
just
awareness

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

KEY MEDIA SELECTION DECISIONS

Media Media Media Media


Class Vehicle Size/format Schedule

TV Channels, 60 secs, 30 secs Date, day, time slot


programs
Date day position
PRESS Newspapers, Full page half page,
Magazines 100cc, double
spread, single page
B/W color
RADIO Channel. Date day, time slot
Programmes 60 secs, 30 secs Location, positing,
duration
OUTDOOR Billboards, Kiosk
40` x 40`, 60` x 60`

END OF MODULE VI

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MODULE- VII

PUBLIC RELATIONS

Concept Question

1. Public Relations / Role, Importance

2. Role of PR in corporate image

3. Corporate advertising

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

WHAT IS PUBLIC RELATION?


All living beings have relationships of one kind or another and that includes
companies, institutions as well as people. Relationships can be good, bad or
indifferent, and may change from time to time. To build relations, we need to
communicate and interact.

Communications is a means by which we give as well as receive information.


Public Relations is the most effective communication tool that companies and
people have to build and maintain relationships.

Public Relations as the term suggest, broadly mean relations with the public and
involves a whole range of activities.

The word Public refers to an institution’s or a company’s employees and


customers who are directly affected by its policies and actions. In PR language
the plural “publics” is used to refer all the people a company has to interact with
at some stage or other. Public Relations is communication on behalf of an
organization to a number of publics ranging from customers to employees plus
the media.

As the late founder PR – Edward L. Bernays says that “main elements of PR


practically as old as society; informing people, persuading people or integrating
with people”.

PR includes publicity (Stories in the mass media with significant news, value),
news conferences, company sponsored events, open houses, plant tours,
donations and other special events.

PR is often referred to as a new or young profession or business. This supposed


newness is sometimes given as excuse for misunderstandings about PR. People
who are new entrants to the world of PR are often confused by its breadth, and
fail to recognize the very simple purpose of PR, which is to create understanding.

DEFINITIONS OF PUBLIC RELATIONS


It is difficult to define PR. Most definitions are descriptions of the functions pf PR
rather than true definitions.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

Institute of Public Relations – UK (IPR)

“Public Relations practice is the planned and sustained effort to establish and
maintain goodwill and mutual understanding between an organization and its
publics”.

PR IS ABOUT
Reputation
Perception
Credibility
Confidence
Harmony

PR IS

Two way communication


Giving information
Creating understanding
Building and maintaining relationships
Gathering goodwill.

ROLE OF PUBLIC RELATIONS


PR professionals can do anything from coordinating a company sponsored golf
tournament to giving newspaper reporters a tour of a new factory. PR reaches its
wide range of audiences by using any number of PR techniques to convey its
messages.

Whether it be through a private PR agency or an in house PR department, the PR


person is required to undertake major functions. Following are some of the
important PR functions and activities:

1. COMMUNICATING WITH PR ‘PUBLICS’

We are all a ‘public’ of one kind or another, whether we are consumers of


products, employees, shareholders, or members and customers of a company,
organization, trade or professionals association. ‘Publics’ in the PR language are
classified into internal and external publics.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

Internal Communication: Full and part time employees of an organization,


their families, trainees, trade union officials, form the internal publics of an
organization. Employee communication is a vital part of any PR programme.
The ultimate success of the organization depends largely on the success of its
internal communication. This ensures smooth flow of information from the
management to its employees, improving employee performance, team spirit
and coordination. Full and truthful information both way results in:

Harmony in the work place


Trust and confidence between the employer and employee
Healthy and safe working conditions
Work satisfaction, fair salary and satisfaction for each employee
Pride in the organization

External Communication: Governments, investors, distributors, customers,


suppliers and shareholders, environmental groups and other people affected
by the organization’s policies and actions are the external publics of an
organization. Lets look at each of theses closely:

a) Governments: PR is a major in the relations between the industry and the


government. PR job is to support a company’s efforts to sell products to the
government agencies and make sure that the government laws and
regulations do not unfairly obstruct a company’s business and progress. PR’s
involvement in this area includes conducting surveys and other research
building coalitions and using media to promote their message.

b) Investors: Investor relations involve communicating with the current and


potential investors, financial analysts and government regulators. PR people
operating here must have extensive knowledge of corporate finances,
financial markets and government regulations. Current investors want to
know whether to keep the company’s stocks and bonds they own, and
potential investors want to know if the company has a promising future.

2. COMMUNICATING WITH THE MEDIA

The PR professional is required to make cordial relations with the media.


Media Relations is about the management of the media channels available to
any company.

For people engaged in business and industry, the press is the most important
communication media. Good press relations assure that a press release will be

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
carried by the leading dailies. The main function of PR while working with
the media is giving them what they need, in the correct form and at the right
time. PR should never be a barrier between the media and the organization.
To make most effective use of various media, the PR person has to keep 3 key
factors in mind:

The message to be conveyed


The target audience
The media through which the message will reach the target audience

3. CORPORATE COMMUNICATIONS

The term ‘Corporate Communications’ covers all communication activities


which an organization undertakes as a corporate entity: everything that
involves communication with staff or which reflects the organization as a
whole. Each company has a personality of its own. Corporate identity should
take into consideration the whole personality of the company and not just an
important aspect.

Corporate identities should not be changed frequently. Before a change is


thought about, extensive research is essential. The success of a corporate
identity programme involves detailed research to define the organization’s
present image.

Corporate communication is aimed at:

i. The general public


ii. Investors and financial analysts
iii. Competitors and suppliers
iv. Government and pressure groups

CRISIS COMMUNICATION
Crisis management is a key PR function. This has become an important part of
PR as it specializes in dealing with negative public opinion when the company is
in trouble. A crisis can blow up at any time, and unless it is handled calmly and
effectively, it may have disastrous results; a career or a company can be ruined.

Planning for a crisis involves planning for a possible crisis in the first place and
quickly providing clear information and when a crisis hits. The key to good crisis
management is information. Principles of Crisis PR:

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
Be prepared
Provide background information
Manage information flow
Agree to a commonplace of action
Be authoritative

SPECIALIST PR
Apart from its traditional areas of operations PR is also used in innumerable
specialized areas. Following are three of these specialized areas:

i. Marketing Public Relations (MPR): Marketing Public Relations is the use of


public relations strategies and techniques to achieve marketing objectives. The
purpose of MPR is to gain awareness, stimulate sales, facilitate communication,
and build relationships between consumers and companies and brands. The
principal functions of MPR are the communication of credible information the
sponsorship of relevant events and the support causes that benefit society.

Marketing public relations is the process of planning, execution and evaluation


of programmes that encourages purchase and consumer satisfaction through
credible communication of information and impression that identify
companies, their products with needs, wants, concerns and interest of
consumers. PR is used in marketing specifically:

To build and maintain product brand image or awareness


Repositioning the brand in a different slot
Overcoming negative perceptions

It is a cost – effective targeted communication process that leverages news


media, and other communication vehicles to enhance reputation and create
“compelling interest and purchase intent” amongst key stakeholders for a
brand.

ii. Brand PR: Brand PR as the name suggests is about building brand reputation
through PR. Seen as a relatively new concept in the market today, Brand PR is a
very old practice in the industry. The main aim of Brand PR is to bring about
credibility to the company and its product. Brand PR can be defined in the
following manner:

BRAND MANAGEMANT+ PUBLIC RELATIONS= BRAND PR

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Brand PR emerges from the combination of two different terms ‘Brand’ and
‘PR’. Before defining the term BRAND PR lets look at its each of the two words
individually:

BRAND = PRODUCT + IMAGES


PR = IMAGE OF THE BRAND + EFFECTIVE COMMUNICATION
The meanings being clear now we can say that Brand PR is about promoting a
brand and building its image in the market.

iii. Online PR: With the technology advancement at its peak today, PR is also
keeping its pace. That one reason why online PR has tremendous growth
potential in the market. A very popular way of online PR is through ‘Blogs’.
Blogs are nothing but online journals. These are sent across by various
promoters to the target audiences for promotion. These journals contain
complete information about the product. It has proved to be a widely accepted
form of Online PR.

CORPORATE ADVERTISING

Corporate advertising has been around for decades perhaps as long as product
advertising. But it is not discussed very often. Unlike product advertising, which
obviously helps to sell a product or a service, corporate advertising sells an idea
or an organization itself.

When an organization wants to influence consumer attitudes, public opinion, or


other important publics such as suppliers, stockholders, governments and
employees, it uses corporate advertising.

Corporate advertising is a special type of advertising that is used is by business


organizations to create and maintain positive attitudes toward their companies.
Corporate advertising promotes the company rather than its products or services
because it is designed to show a favorable picture of a firm’s products, publics
and overall corporate health.

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Corporate advertising is also undertaken in order to project an organization’s
personality, culture, and values to the outside world. Corporate advertising is
closely related to public
information, rather than to its sales. So it comes under the function of Public
Relations.

Goals of Corporate Advertising: Corporate advertising has traditionally served


three goals:

a) Image Building: This traditional role is the most important one and is
designed to build consumer awareness and goodwill. It is aimed at
general audience to present the positive qualities of a company.
b) Financial Relations: It is aimed at informing and building confidence in
the financial sector. It also focuses on shareholders and potential investors,
thus ensuring financial security and independence.
c) Advocacy: This explains and promotes a company’s viewpoints and
position and a controversial issue, or any issue that affects the company in
anyway.

Today however corporate advertising has a mush broader role:


a) To improve name awareness
b) To proclaim the organization’s views on an issue of importance
c) To publicize positive news
d) Ti add staff requirements
e) To give information about the organization

WHY CORPORATE ADVERTISING


Big industries companies and organizations have used corporate advertising to
make a positive impression on customers and investors for a long time.
Corporate advertising is a highly useful marketing tool. It can improve the
morale of a company’s employees. In certain situations, such as take over bids, it
can make good impression on the investment community.

Many have questioned the necessity of corporate advertising as in how


important is knowing the name of the company manufacturing a certain product
for the consumers. People these days are more conscious than before. Corporate
advertising gives the products an edge. Consumers often cannot see much
difference between products, when they have to choose form a wide range. Being
aware of the company’s name can make them decide faster and choose better.

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Corporate advertising can be important in building consumer confidence for
marketing big and expensive goods like cars, electrical and electronic appliances.
The opinion that people have of a company determines to a large extent its
ability to attract employees and executives of high caliber.

TYPES OF CORPORATE ADVERTISING


When an organization wants to influence publics un the marlet place it uses
different types of corporate advertising. This depends on:

The needs of a particular situation

The audience or the public to be addressed

The message to be communicated

Different types of corporate advertising include:

1. Corporate Identity Advertising

2. Institutional Advertising

3. Public Relations Advertising

4. Issue Advertising

5. Public Service Advertising

END OF MODULE VII

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MODULE- VIII

SALES PROMOTIONS

Concept Questions:

1. Define Sales Promotion

2. Sales Promotion method (any 1)

3. Give a tool of sales promotion and explain which promotion tool will be
used.

Descriptive Questions:

1. What is the role of sales promotion?

2. Explain the basic tools and techniques of sales promotion

3. Develop a sales promotion strategy for a particular product.

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INTRODUCTION TO SALES PROMOTION

Sales Promotions is one of the important elements of the marketing promotion


mix or the integrated marketing communication. In this age of intense
competition, where the bottom line is quick sales, marketers are beginning to rely
more and more on short term tactics to win the battle for consumer’s minds and
wallets. Short term tactics to accelerate sales come under the category of sales
promotions.

A formal and comprehensive definition of Sales Promotions is one given by the


American Marketing Association- namely that sales promotions consists of
“those marketing activities other than the personal selling, advertising, direct
marketing and public relations, that stimulate consumer purchasing and dealer
effectiveness”. Clearly, sales promotions are a marketing activity or tool used for
the purpose of generating sales, by targeting either the final consumer or the
trade. The difference is that sales promotions have specific and sole purpose of
directly trying to generate quick sales. Sales Promotions and advertising are both
part of the marketing communication mix.

Sales Promotion

Consumer Promotion Trade Promotion

Pull Effect Push Effect

Consumer Franchise Monetary Incentive


Building Type Type

Sales target incentives


Contest Prizes Discounts Trade Advertising Support
Premiums Tie- Price Packs Allowances for
ins Free Coupons Other Merchandizing
Sampling Schemes Other incentives
Loyalty Programs

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METHODS OF SALES PROMOTIONS


There are four methods involved in sales promotions

SP METHODS

Consumer Sales Trade Sales Business to Business Sales Persons


Promotions Promotions Promotions Promotions

1. Consumer sales promotions


2. Trade sales promotions
3. Business to business promotions
4. Sales persons promotions

But before dwelling any further into the nuances of the chapter let us define the
methods of sales promotions:

CONSUMER SALES PROMOTIONS (CSP)

In the previous section, we defined sales promotion as “those marketing


activities other than selling, advertising and publicity, that stimulate consumer
purchasing and dealer effectiveness”. I this section we are going to discuss
promotional activities aimed at the final consumer. These activities rely on what
is known as a “pull strategy”- that is they depend on the consumer to literally
pull the product through the distribution channels. Before looking at the tools
and techniques of (CSP) let us look at some of its specific goals:

a) Encourage trial: Most new products fail because too few people try the
product or because trial does not lead to repeat purchase. Especially when
the concept is new, most people are hesitant to take risks. Sales promotion
directed at the consumer offers a reason for trying the new offering.

b) Encourage brand loyalty: It is not enough to persuade consumers to try


your product. The real challenge lies in getting them to stay with your

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brand. As we saw with the subscription wars competitors are always
ready to come up with counter offers to woo away your customers.

c) Increase product usage: (CSP) could also aim to persuade customers to


buy a product in larger quantities.

d) Encourage consumption of other products in your line: when marketer’s


product portfolio consists of several related products, (CSP) may aim to
create demand for more than one product.

e) Reinforce advertising efforts: (CSP) could help to emphasize product


benefits highlighted in the advertising.

Once you have decided what you want the (CSP) to achieve, a technique has to
be chosen. A single technique, or a combination of techniques may be used. The
various tools/techniques involved in the (CSP) are:

Sampling: This consists in offering a small quantity of the product free, or


at a very low cost, in order to encourage trial. It is most commonly used
by large firms which produce packaged foods, health and beauty items.
Hindustan Lever’s and P&G samples for their detergent brands. Samples
may be distributed door-to-door, through the mail, with magazines and
newspapers in the store, or anywhere where your audience is likely to be.
A sample can stimulate a higher rate of trial than any other promotional
efforts. Sampling is however a costly way of introducing or encouraging
trial of a new product. Sampling will only be successful only if trial
translates into repurchase.

Couponing: A coupon is a certificate good for a specific price reduction,


on a particular product, for a specific time period. It is a medium by which
the manufacturer offers a consumer a price deal. If redeemed at a retail
store, the coupon is used by the retailer and the wholesaler to gain
reimbursement from the manufacturer. Coupons are most commonly
used by manufacturers of packaged foods. Coupons can help a new
product to be launched, build market share.

Money-back offer: In this case the marketer offers to return a certain


amount of money to the consumer if he is not satisfied with the product.
This may take the form of a full or partial refund, after the product is
returned. Money-back offers help to reduce the risk involved in trying

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new products. They also help to reward existing customers, encourage
multiple purchases, and persuade consumers to buy now rather than later.
The disadvantage with this technique is that refunds are not available on
the spot. Consumers are normally reluctant to go through the process of
filling out refund forms, sending them in and waiting for cash back.

Price incentives: This is the use of a short term reduction in price to


stimulate demand for an established product whose sales is declining.
Such price incentives may take the form of price promotions or price
packs. A price promotion is a short term reduction that is available to
everyone who buys the product during the promotional period.

While some price promotions decrease the selling price by a specific


amount (Rs 100 or Rs 500 off, depending on the product), others reduce it
by a certain percentage (20% or 50% off). Price packs are generally more
effective than price promotions. A price pack normally includes
something extra with the regular product package. One type of price pack
is the “bonus pack” which offers more of the product at the regular price.
A second type of price pack is the “banded pack”. Here two or more units
of a product are sold together at a lower price than if purchased
separately. The “buy one get one free” offers are examples of banded
packs.

Premiums: A premium is the offer of some type of mechandise or service


either free or at a greatly reduced price to induce purchase of another
product or service. The specific purpose of a premium is to induce
present consumers to increase their use of brands or to purchase it in
larger sized packets. It can also help to switch consumers from their
present brand to that of the promoters brand in order to gain trial use,
with hopes of repurchase. Premiums may be distributed in a no of ways:
o By enclosing it in a product package known as a “in-pack”
premium.
o By attaching it onto the package known as a “on pack” premium.
o By giving it away at the point of purchase, known as a “shop or
store” premium.
o By offering it as a container holding a product, called a “container”
premium.
o By distributing it through mail in return for proof of purchase
known as a “mall premium”.

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Premiums may be classified In terms of whether they are offered free or at a


reduced price. Premiums offered at reduced price are known as “ self
liquidating” premiums. The purpose of such a premium is to cover the
manufacturers out of pocket costs. Premiums are also an expensive
technique and unless tremendous volumes are generated no company can
afford to do this.

Contests and sweepstakes: A contest is a promotion based purely on the


participants skills and abilities. It requires that the participants apply a
skill in creating an idea, a concept or an end product contests are usually
based on coining a name or a slogan for a new or existing product or
answer a question related to a product. A sweepstake on the other hand is
purely based on chance. Each participant has an equal chance of winning a
prize from an extensive and expensive list of rewards lucky draws and
lottery’s are examples of this. Both contests and sweepstakes are powerful
sales promotions devices as they have the ability to involve the customer
and build excitement around the product. The disadvantage with these
techniques is that it is difficult to test them in a limited market before
using them on a national basis.

Frequency programmes: As the name suggests the purpose of such a


promotion is to increase frequency of purchase. This is usually an on-
going promotion used commonly by service industries. The”frequent
flyer” programme offered by the airlines is the best example of this. The
advantage of such a programme is that they build a long term brand
loyalty with the customer.

Point of purchase displays: Attractive displays of a product can trigger


purchases even if the purchase was not originally planned. Point of
purchase display materials such as special merchandise racks, banners
and danglers etc. can be used to effect, to encourage consumers to try new
products, switch brands or make unplanned purchases.

Joint sales promotion: Consumer sales promotions need not always be for a
single advertisers product. Often two or more marketers join together
and offer a combined promotion. The biggest advantage with this type of
promotion is that the sharing of work load and expenses. The

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disadvantage is that the loss of control over creative, media and budget
elements.

To recap what we have discussed in this unit the various goals and techniques of
(CSP) may be summed in the table below:

Sr. No. GOALS TECHNIQUE

1. Increase Trial Sampling


Couponing
POP displays
Price packs
Bonus packs
Premium

2. Increase Consumer Bonus Packs


Inventory Price Packs
Refunds

3. Encourage Contests and sweepstakes


Repurchase On-pack and in-pack premiums
Refunds

ADVANTAGES OF SALES PROMOTIONS


The importance of sales promotions may be grouped as follows:

ADVANTAGES TO CONSUMERS

On the consumers point of view sales promotions methods are beneficial to


them in the following way:

a) Increased product knowledge: various consumer promotions methods such


as demonstration, training to use the product etc give sufficient product’s
knowledge to consumers with regard to its operation.
b) Availability of products at reduced prices: (SP) tools like price off deals,
premium offers discounts etc reduce the prices of the product when
purchased on notified occasions.

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c) Higher standard of living: the consumers also get plenty of opportunities in
using the new cheaper and durable items to their satisfaction which may help
them to maintain a higher standard of living.

IMPORTANCE OR ADVANTAGES TO PRODUCERS/MANUFACTURERS

The producers have a no of advantages:

a) Increase in sales: (SP) programme attracts the consumers and stimulates


them for larger purchases leading to increased sales.
b) Demand for product and services: the (SP) techniques have proved
successful in introducing new products and services. By the supply of free
samples the new product makes its place in the market.
c) Capture of new market: the (SP) programme facilitates the producer to
capture new markets for his products easily.

IMPORTANCE OR ADVANTAGE TO DEALERS/MIDDLEMEN

The dealers have the following advantages:

a) Facilitates larger sales: the dealer get advantages of (SP) techniques for
increasing their sales. (SP) is a co-ordinating activity between sales
advertisingand public relations efforts and they reduce the resistance at the
point of sales.
b) More facilities and assistance: the producer under the sales promotional
programme provides various facilities and assistance to the middlemen such
as assistance to the marketing research, providing with display materials and
managerial assistance etc for maintaining regular stock of sales.
c) Direct relation with customers: a direct relationship between the dealers and
the customers are established through the sales promotional techniques
which will continue for a long time.

IMPORTANCE TO THE SOCIETY AND THE NATION

The importance of SP to the society and the nation are as follows:

a) Increase in standard of living of the people.


b) Increase in employment opportunities.
c) Increase in GDP and per capita income.

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TRADE SALES PROMOTIONS (TSP)

CSP contributes only partially to the success of a product. Much also depends on
the willingness of wholesalers and retailers to carry and sell the product. This is
particularly important today when power has shifted from the marketer to the
retailer. A few years ago, companies with huge advertising budgets and
extensive distribution networks could use their marketing muscle to move
products onto retail shelves. Today retailers command terms and demand
incentives from the manufacturer for giving preference to his products. Some
specific objectives of TSPS are:

Encourage stock of new products.


Raise or lower inventory levels of an existing product.
Provide an incentive to sell a product.
Encourage more prominent and attractive display of a product.
Offer support and training for distributors and the sales force.
Strengthen relations with the trade.

Either one or a combination of tools/techniques may be used to achieve the


above goals:

i. Trade deals: This is a short term arrangement whereby the wholesaler and
the retailer agrees to give a manufacturers product a special promotional
effort. The deal could take the form of product discounts, cash payments or
additional discounts offered by the manufacturer.

Buying allowance: this could take the form of cash payment, a


product discount or additional goods offered to a distributor to
encourage him to carry a new item that he may not ordinarily buy
or to encourage purchase of a certain quantity of an existing
product during a certain period. It is a push strategy.

Display allowance: this is a cash payment given in a form of a fee


or a discount in exchange of a desirable shelf, location or space for a
point of purchase display. It is generally given to support an
established product.

Slotting allowance: this is a technique generally used to promote


new products. It also involves a cash payment or a fee given to
the retailer in exchange for a slot or position on a shop shelf.

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ii. Sales support: both dealers and the sales force need to be equipped with
some basic selling tools in order to push the product. Sales support could take
the form of training programmes, seminars, product demonstrations and
distribution of materials such as brochures, videotapes and slides that show
detailed product information. Prepared by the advertiser for dealer or
salespersons use these materials could be presented to prospects during sales
calls at (POP) or at trade shows.

iii. Yellow pages advertising: this form of advertising is much more common in
the U.S. than in India. An ad in the yellow pages of a directory creates
awareness regarding availability of your product. Once a prospect has seen
an ad or a commercial for your product he tends to check the yellow pages to
see where he can buy it.

iv. Specialty advertising: This another way of advertising in non-traditional


media. Pens, calendars, diaries are all examples of specialty advertising. In
contrast to premiums which are given only when purchasing a product,
specialty items are offered free of charge without having to purchase
something. Their purpose is to create goodwill.

BUSINESS TO BUSINESS (B2B)

business to business is also an important method of sales promotions. But they


are used for industrial products and not much for consumer products. Therefore
their sales promotions techniques may also differ from that of consumer
products. For example a company needs spare parts as a major input or raw
material then it will have an auction where different suppliers will come and the
supplier that bids the lowest price will be chosen. Now suppose the company
wants 1,00,000 spare parts then it will go for economies of scale and try and
purchase say about 80,000 spare parts from that particular supplier with some
sort of concession.

SALES PERSON’S PROMOTIONS

The following promotion aids are used for sales force promotions:

a) Sales meetings: producers often organize annual meetings for the sales force
for giving them necessary information about any new product to be
introduced, new sales plans and techniques and the new sales programme of
the producers.

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b) Contest: sales contest for the salesman are organized from time to time by the
producers. They are awarded with cash prizes and other benefits on the basis
of highest sales, minimizing field expenses etc.

c) Sales literature and letters: salesmen are provided with various printed
literatures, such as sales manuals, folders, price lists, designs and directories
of customers etc. it is extremely helpful to them un their contacts with
customers.

d) Product demonstration kits and visual sales aids: salesmen are often
provided with sales kits, containing the models of industrial and technical
products.

e) Premiums bonus and gifts: premiums are given for achieving prescribed
sales quotes. Bonus is paid to salesmen from the portion of profits of the firm
every year to motivate him for better efforts. Gifts are also given on special
occasions such as Diwali, Holi etc.

END OF MODULE VIII

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MODULE- IX

ADVERTISING BUDGET

Concept Question

1. Any 1 ad budget method can be asked for example- The competitive


parity method

Descriptive Question

1. What is an ad budget? Explain any 4 methods for determining an ad


budget

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ADVERTISING BUDGET
An advertising budget reflects the importance given to the function of
advertising within a company. The budgeting process is the responsibility of the
top management along with the marketing manager.

The advertising budget is both a planning and control device. There are many
managerial functions that are performed through the process of budgeting.
Managerial goals are discussed and are synchronized with marketing and
advertising objectives. This provides a forum of communication that resolves
conflicts and sets the priorities for the communication plan of the company.

An advertising budget is a plan that sets a limitation on advertising


expenditures, states how expenditure will be allocated and controls the
dispersement of expenditure over a designated period of time.

The process of budgeting is therefore a decision making process that divides the
total appropriation under different expenses heads. For example if the total
advertising budget for launching a new product is rupees two-three crores, then
deciding that 1.5crores will be spent on the national media, is a budgeting
decision.

WHO DECIDES THE ADVERTISING BUDGET


It is the primary responsibility of the advertising manger to prepare draft budget
proposals. It is his duty to access the needs of the company with respect to the
challenges posed by the market. He also takes into account the cost of the media,
creative and actual production, while preparing the proposals. This draft budget
then becomes the basis of discussion between the marketing manager and
advertising manager and sometimes, even the advertising agency (especially
when the agency has a long term relationship with the company. This result in
final budget plan that is then recommended to the top management for approval.
Though this is the most scientific process of arriving at the advertising budget, it is
sometimes not followed, especially by small advertisers. In such circumstances the
top management may decide upon the amount to be spent (budget
appropriation) and the advertising manager will then plan how to allocate this
sum between different expenditure heads.

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METHODS OF SETTING THE ADVERTISING


BUDGET
One of the most difficult tasks facing advertisers and ad agencies is the decision
on the optimum money to be spent on advertising. Advertisers want to minimize
expenditure and maximize the returns. Though advertising expenditure is
considered to be an investment, its utilization has to be intelligent and profitable.

Though there are several accepted methods of arriving at the budget, the
individual brand budget will depend upon several factors such as profitability,
marketing objective and competitor’s position. The various methods, which are
used, for setting advertising budgets are:

1. Percentage of sales method


2. Unit of sales method
3. Task and objective method
4. The competitive parity method
5. Brand history method
6. All you can afford method
7. The break even method
8. The quantitative method
9. Share of voice method

Each of these methods has certain advantages and disadvantages. In reality, a


combination of these methods will be used.

1. PERCENTAGE OF SALES METHOD:

The percentage of sales method is the most widely used widely used method of
setting the appropriation, although it has been criticized by many. The
percentage is based on the past years’ sales or on estimated sales for the coming
year or on some combination of these two. This is simplest method, as it requires
little decision making. Many companies in India use this method to arrive at a
tentative budget appropriation. But this method suffers from a basic drawback in
that it does not take into account any specific need of the market situation.
Moreover, when past sales are used to arrive at the current year’s budget, the
figure may have more historical value rather than current utility. Advertising
leads to sales and the amount of advertising expenditure depends upon the sales

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target and therefore, when the percentage of future sales is used the estimates are
more realistic.

In conclusion one can say that this method is not appropriate as market
situations change rapidly and past sales alone are not an effective indicator of the
company’s communication needs.

2. UNIT OF SALES METHOD:

The unit sales method also relates the advertising expenditure of sales. In this
approach, a percentage of the price of each unit of the item sold is allocated to
advertising. Thus a soap manufacturer might budget that a cake of soap costing
Rs.6/- will have Rs.1.50 as the advertising expenditure. Thus, if the manufacturer
sells one lakh units, his expenditure on that brand will be Rs. 1.5 lakh. This
approach is useful as it links the price of a brand with its advertising
expenditure. This approach is simple to plan and execute. However, it does not
lead to efficient marketing since past sales determine how much a firm should
spend on advertising, when in fact advertising is a tool to create sales and
expand markets. This also assumes that the advertiser is satisfied with the
current rate of growth in sales. This is rarely so, as every advertiser aims at
improving the rate of growth.

In an extreme situation if sales go down, a firm following this method will also
reduce advertising expenditure. This will be disastrous for the company as it
may lose its market rapidly to competitors.

In conclusion the unit of sales and percentage of sales method are not suitable to a
dynamic market situation. However they are useful guides to give direction to
planners who use them as a basis for deciding the ad budget, in combination
with other methods.

3. TASK OBJECTIVE METHOD:

This method is gaining more popularity because it provides a more logical basis
for deciding advertising appropriation. The objective task method concentrates
on the marketing/advertising objectives that are pre-decided and ask these
questions: what is the role of advertising in obtaining these objectives? How
much should we spend to achieve these objectives?

Thus under this method a company launching a new product will decide to
spend more money as it has to create immediate awareness amongst consumers.(
for example Ranbaxy will spend more on its new product Olesan). For an

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existing well know brand, the company may spend less on advertising (for
example Ranbaxy will spend less to advertise its product Garlic Pearls.)

As it is obvious in the above example, the objective task approach directs the
efforts of manufactures to think through the objective while setting the budget.

There is one problem involved in the use of this method of setting the
appropriation and that is: how does one determine just how much advertising
and what type of advertising will achieve the stated objectives. The present
methods of research do not give a direct link between advertising expenditures
and achievement of the objectives. Until more sophisticated methods are
developed managers will have to face this problem of uncertainty while deciding
the optimum budget.

4. THE COMPETITIVE PARITY METHOD:

This is the most controversial method and few executives admit that they use it
while preparing the budget. In this approach an advertiser bases his budget
decision primarily on the expenditures of competitors. That is they try to keep
pace with their competitor’s advertising budgets. This method could be useful in
deciding individual brand ad expenditures. It has the advantage of recognizing
the importance of competitors and ensure that the competitors do not increase
their ad expenditure to a level that affects the advertiser’s sales. But the approach
has disadvantages. Firstly your objective may be different from that of your
competitors. And secondly it assumes that your competitors are spending
optimally. It also maintains the present market position rather than bringing any
positive change for the company. If you want to overtake your competitors you
may have to spend more than them and spend this money more efficiently.

5. BRAND HISTORY METHOD:

Under this method the brand’s product life cycle is considered while setting the
budget. Thus a brand at the introductory or pioneering stage will use more
advertising appropriation than an established brand. Brands that are facing a
decline may also use more advertising to add new life into it. For example Close
Up, the toothpaste manufactures by Hindustan Lever had a stagnating market
share till recently. In 1990 its spent Rs. 3.45 crore on television advertising with
its new theme close up: “a mouth wash in tingling red and blue colours”. The
result was that close up has over taken Promise and is now number two in the
toothpaste market behind Colgate.

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6. ALL YOU CAN AFFORD METHOD:

This approach means that the advertising budget will be decided on the basis of
whatever money is left after all other fixed and unavoidable expenses have been
allocated. This method seems to be illogical and unambitious but conservative
management use this method as it is safe and ensure that there is no
overspending. New entrepreneurs have no other option but to follow this
method when they are short of funds.

7. THE BREAK EVEN METHOD:

The break even or the marginal analysis method attempts to quantify the
advertising spending level that will offer an organization the highest additional
gross profits. That is the firm continues to spend on the advertising as long as the
incremental expenditure are exceeded by the marginal revenue they generate,
thus maximizing the gross profits of the firm.

This method has an advantage because it helps in diagnosing any problem, that
is when the company is overspending or under spending. But it suffers from the
disadvantage of limited research techniques that cannot isolate the effect of
advertising on marginal revenues and gross profits. Other activities such as
personal selling and sales promotions also influence the revenue earned by a
company. Moreover, it assumes that there is an immediate effect of advertising
expenditure. This is possible in direct mail advertising. In most other advertising
there is a carryover effect that is a potential consumer may be influenced by the
ad, in the month of June but may make a purchase in December. Advertising
may also attract customers who become loyal customers for several years. The
immediate purchase measures up to only a small part of the value the firm
enjoys from such continuous purchases. This drawback can be overcome by
using the experimental method.

In the experimental method varying advertising expenditures are used in


different cities. For example the advertising expenditure in Pune may be greater
than the advertising expenditure in Hyderabad. Then sales in the two cities are
compared to find out which is optimum level of expenditure.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

FOLLOWING ARE THE FACTORS THAT ARE CONSIDERED IN


DETERMINING THE ADVERTISING BUDGET.

1) Corporate objectives:

Using the objective task method, linkage between advertising expenditure and
corporate objective will be established. The advertising expenditure varies
depending upon corporate philosophy and priorities. For example in India, we
find that public sector corporations such as BEST or the Mahanagar Telephone
Nigam Ltd spend less on advertising than private sector companies such as
Reliance Industries or Tata Industries.

2) The product Life Cycle:

This has a very important influence on the ad budget and companies use the
brand history method for deciding how to spend on the product.

3) The budgeting period:

Usually companies have a yearly budget but some may prepare long term
budget that match the long-term objectives.

4) The competitors strategies:

Product categories, which have stiff competition, witness a greater expenditure


on advertising. For example, in India television manufacturers spend more than
the manufacturer of ear buds.(manufactured mainly by Johnson & Johnson ).
When competitors increase their advertising expenditure others are forced to
follow them.

5) Affordability:

While the affordability level depends upon the advertisers priorities ceilings on
how much to spend is fixed by the advertisers in order to avoid overspending.

6) Crisis management:

Even the best-laid plans can be affected by the changes in the marketplace.
Advertisers have to keep aside contingency funds that can be used to tackle
unexpected market challenges.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

7) The type of product:

Consumer products need more advertising than industrial products. Among


consumer products shopping items such as toothpaste, shampoo and soaps need
to be advertised consistently in order to maintain their brand position. Such
products will have a higher budget appropriation.

8) Importance of middlemen:

In product categories where middlemen or retailers have to push the product,


manufacturers may prefer to spend more on dealer commission than advertising.
For example Sumeet washing machines and kitchen mixers and food processors
are not advertised heavily. This is because the brand name Sumeet is familiar to
consumers who have accepted the product image of quality and after sales
service. The company prefers to use retailers to push the brand. In most common
durables such as televisions, VCRs, microwave ovens and so on, the influence of
retailers is very strong. Unlike impulse purchase products such as chewing
gums, chocolate and ice cream, which therefore use more of advertising.

9) Scope of the market:

If the advertiser wants to approach the national market his budget has to be
much more than that required for local or regional market.

10) The quality of the campaign:

When the advertising campaign is striking and is unusually creative, it is


immediately noticed by consumers. In this case the advertisers need not spend
on buying media, time and space. To compensate on poor quality campaign an
advertiser may have to spend more on media, in order to enjoy the same degree
of visibility. For example the Cherry Blossom ad, which used a Charlie Chaplin
look alike, was a striking television commercial that immediately gained
attention.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

END OF MODULE IX

MODULE- X

ADVERTISING EFFECTIVENESS

Descriptive Question

1. Evaluating Advertising effectiveness- Pre and Post methods.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

ADVERTISING EFFECTIVENESS
Effectiveness testing involves specialized set of research techniques known as
“Advertising Research”. This is purely evaluative in nature, as opposed to the
research done prior to campaign planning, which helps to develop the overall
campaign strategy. A lot of time and money is spent on the latter type of
research, also known as “Developmental Advertising Research”. Advertising
research gives advertisers and campaign planner’s feedback such as how many
people received the message, how it was interpreted, which media were most
successful in delivering the message, and what sales resulted from the
advertising. This feedback in turn, helps to refine or modify the campaign in
successive phases.

REASONS FOR ADVERTISING RESEARCH IN INDIA


1. Growth In Advertising Spends:

In India, the growth in the scale of advertising expenditures has been brought
about mainly by the entry of MNC’s. According to a recent study, MNC’s
account for over 50% of the total money spent on advertising today. This has
lead to increasing research spending to test the effectiveness of the
campaigns.

2. General Trend Towards More Scientific Decision-Making:

Market research has taken off in a big way in India, because it provides
accurate data based on which decisions may be taken. The same is true of
advertising research. It helps to select the approach that best achieves the
objective of the campaign.

3. Differences In The Effectiveness Of The Individual Advertisements And


The Media:

Research has revealed that advertisements costing the same amount of money
differ vastly in their effectiveness. Some medias are found to be more
effective than others, irrespective of the message. This has given rise to the
need for advertising research, to see whether ads have high or low ratings.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MEASURING ADVERTISING EFFECTIVENESS

Share of Share of Share of Share of


Spend Voice Mind Market

= =
=

Top of mind Preference


Visibility recall
% % % %

Brand ad Brand Ad Who prefer Brand Sales


spend Exposure Brand Total
Total Total Total category
Category Ad category ad category sales
Spend exposure consumers

If the media plan for a brand is efficient in maximizing its ad exposure


and takes care of the creative and image impact issues, then a higher
ad spend should ensure higher ‘visibility’. This would mean higher
share of voice in the category.

The higher share of voice, when combined with creative impactful and
meaningful ads gets a better ‘top of the mind recall’. This would mean
higher share of the mind among the consumers of the category.

The greater share of the mind, together with the persuasion power of
the advertising creates a ‘preference’ for the brand which may
eventually lead to higher market shares.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

ADVERTISING RESEARCH
It involves decisions on-

The elements of an ad to be tested. (What should be tested?) Eg: TV,


music, etc.

The method to be used. (When should they be tested?) Eg: Pre-test, post-
test.

Whether they should be tested before or after the campaign. (How should
they be tested?)

The question “what should be tested” refers to the specific elements of the
campaign that are to be measured for their effectiveness- headlines, visuals,
slogans, media and so on. Advertisers would like to measure each of these
elements but it is not practically possible. Therefore the advertiser has to focus on
those elements that may be measured with some degree of accuracy. The most
common areas that are evaluated are the advertising messages and the media.

MESSAGE TESTING

This refers to testing the entire advertising campaign. Both the advertising
strategy or what is said as well as the creative execution, or “how it is said”, may
be tested for their effectiveness in terms of recall of the message, ability to induce
action, or some other measure.

MEDIA TESTING

In testing, the media for their effectiveness in delivering a message, media types,
media vehicles, as well as media units could be tested.
In addition to message and media, some other areas of advertising that may also
be evaluated include:

MARKETS

Advertisers may want to test a particular strategy or a television commercial


against various market segments, to determine their reactions. In this process, the
advertisers may even decide to alter the strategy and to target the campaign to a
different market.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

MOTIVES

Advertisers may also be interested in knowing what product benefits appeal to


consumers and what motivates them to buy, which helps to know whether the
right appeals have been developed.

ADVERTISING BUDGETS

Advertising research can also help to determine the effectiveness of different


levels of advertising spendings, in terms of sales generated.

SCHEDULING

Advertisers can also test consumer responses to a campaign during different


seasons of the year, or days of the week. They can test whether frequent
advertising is more effective than occasional or on-time insertions, or whether
year-round advertising of say, a gift products, is more effective than advertising
concentrated in the festival season.

Regarding “ when campaigns should be tested”, campaign evaluation can be


done in two stages-before the campaign is run and after it has been run.

PRE-TESTING
This refers to testing the campaign before it has run. The purpose of pretesting is
to detect weaknesses or flaws in the campaign that may result in consumer
indifference or negative response. This increases the likelihood of preparing the
most effective advertising message. All the areas of advertising like-markets,
motives, messages, media, budgets and scheduling may be tested.

It may be done to test two types of effects: “communication effects” and “sales
effects”.

Pre-testing of advertising effects seeks to determine whether advertising


objectives such as awareness, recall, attitudes and opinions, beliefs about the
product and intentions to buy, have been achieved. Pretesting of sales effects
seeks to determine whether a proposed message or media plan has resulted in
increased sales. This type of pretesting identifies and isolates the influence of
advertising on sales. A number of more advanced techniques are used for

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
pretesting both communication effects and sales effects, both in the print and
broadcast media. This brings us to the question “how campaigns should be
tested”.

Given that most advertising is assigned the task of achieving specific


communication goals, a number of methods have been developed for pretesting
these communication effects. These may be broadly grouped under three
categories:

Opinion and attitude tests


Mechanical laboratory methods and
Projective techniques.

OPINION AND ATTITUDE TESTS

1. Direct Questioning: This is a method designed to obtain a full


range of responses o the advertising, by asking direct questions
about the advertising. Based on the responses, researchers can infer
how well the advertising messages convey the key copy points.

2. Focus Groups: This is another commonly used method to pretest


print ads at both the conceptual and finished stage. It is a free-
wheeling discussion conducted among small groups of people and
led by a “moderator”. The group may be interviewed on their
reactions to advertising concepts or finished campaigns. The
advantage of this method is that it is an inexpensive and quick way
of obtaining insights into the advertising process. Focus groups are
used extensively by Indian advertisers.

3. Dummy advertising media vehicles: This is a technique that can


be applied to both print and broadcasting ads. It involves placing
the “test” ads in a dummy vehicle, which resembles the actual
advertising medium. In case of television commercials, the
effectiveness of these may be tested by showing respondents an
actual television programme, with the test commercials placed
within it. Questions are then asked to measure the extent on which
people recalled the test commercials.

4. Order-of-merit test: this is used mainly for pretesting print ads in


finished form. A group of people are shown a series of
advertisements, sometimes as many as six or seven, and asked to

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
place them in rank order, based on some communication criterion,
such as “liking”:. After all the ads have been ranked, a composite
score is obtained. This score shows which ad was ranked no.1, no.2
, and so on.

5. Paired comparisons: This is used when more than six or seven ads
have to be rank ordered. Consumers are then asked to judge two
ads at a time, and asked to choose which one is better. The process
continues until each advertisement has been paired with each of the
others.

6. Central Location Projection Tests: This is used for pretesting


broadcast advertising. Test commercials are shown to a group of
respondents along with other commercials, at a central location.
Questions are asked before and after exposure to determine
whether the commercials have been successful in gaining attention,
increasing brand awareness and comprehension, and shifting
attitudes.

7. Live Telecast tests: Here, test commercials are shown on closed-


circuit or cable television. Respondents are then interviewed on the
phone to test their reactions.

8. Attitude Ratings: In an earlier section, we defined attitudes as


liking or dislike for a brand. Similarly, people may also form
positive or negative attitudes towards ads. It is possible to measure
attitudes towards ads using quantitative research techniques such
as attitude rating scales.

The most commonly used type of attitude rating scale is the “semantic
differential”. Under this method, respondents are asked to indicate on a seven
point scale, their liking for an ad, on various dimensions.

MECHANICAL LABORATORY TESTS

These are commonly used in US and other developed countries. These include:

1. The “tachistoscope”: It is used to measure consumer perceptions to


ads. Using this device, the researcher can tell how long it takes for
respondents to get the intended message and how they perceive it.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________
This way two alternative layouts may be tested for their
effectiveness.
2. The “eye camera” photographs the movement of people’s eyes
while reading ads.

3. The “psychogalvanometer” is a device similar to lie-detector. It


records skin temperatures and tension resulting from reading ads.
The theory behind this concept is that the more tension an ad
creates, the more successful it is likely to be.

4. The “pupillometer” is a device that measures a person’s pupil size


when exposed to visual stimuli such as ads. The theory behind it is
that the size of the pupil increases when the person finds the ad
visually interesting or emotionally appalling.

PROJECTIVE TECHNIQUES

It is a type of qualitative or “motivational” research adapted from clinical


psychology. It permits the respondents to direct questioning, projective
techniques permits respondents to indirectly project their views or feelings about
the advertising situation. The following types of projective techniques are used:

1. Depth interviews: Here, respondents are shown advertising material and


promoted to discuss it freely. A trained interviewer, usually a
psychologist, probes the respondent about his underlying feelings and
motivations.

2. “Word Association and Sentence Completion” Tests: These are a little


more structured than the depth interview. Key words or sentences are
used as stimuli, to which the respondent replies by projecting his
thoughts. These words and sentences are taken from ads being tested.
This way, the researcher can determine what they mean to the consumers.

3. Thematic Apperception Tests: In this method, pictures of people in


ambiguous situations are shown to respondents. Respondents are asked to
build a story around these pictures, by projecting their opinions and
feelings into the story.

The problem with using projective techniques to measure advertising


effectiveness is the expenses involved, including the cost of training interviewers
to evoke useful responses from respondents.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

PRE-TESTING

The purpose of testing ads for their sales effectiveness before the campaign is
run, is to assess the advertising on reduced scale, and to see whether it would be
profitable on a larger scale. The two methods used are:

1. Inquiry Tests: It involves measuring the potential sales effectiveness of ads


based on the number of inquiries received. The ads usually offer some incentive
for responding immediately, such as free booklets, product samples or free trials. It
is also used to test the effectiveness of media. It is useful especially in testing
small print ads. It also measures the intentions to buy, and therefore a good
measure of sales effectiveness of ads.

It may not always represent a sincere interest in the product advertised. Such
tests are also time consuming, as the responses to some ads may sometimes take
months to come in.

2. Sales Experiments an Test Markets: An advertiser who wishes to know how


effective his advertising is before investing large amounts of money on a rational
effort, may decide to go for a “test market”. Besides pretesting ads, they can also
be used for pretesting the media mix, the budget level and the scheduling or the
timing of the advertising. The problem with this method is that it is expensive
and it takes a lot of time

POST-TESTING

Campaign evaluation after the release of the ads is known as “post-


testing”. It is done with the specific purpose of evaluating a campaign against
pre-determined objectives- awareness, attitude change or increase in sales. Many
of the areas of advertising that are pretested can also be posttested like media,
message and markets.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

The post testing methods for communication effects of advertising fall into two
broad categories:

1. RECALL TESTS

this may be in the nature of “aided recall tests” or “unaided recall tests”. Aided
recall tests measure whether respondents recognize a particular ad. They are
shown certain ads and then asked questions to determine whether their previous
exposure to the ad was through reading, viewing or listening.

Recall tests indicate whether consumers got the point of the advertiser’s message.
They are very useful in determining whether ads are being read and how well
they are working, compared with the competitor’s ads. They can also yield
useful data on the relative effectiveness of different advertising components,
such as size, colour or attention-getting themes.

The disadvantage of recall tests is that they indicate only the readership of the
ads. This does not necessarily mean product sales. An ad may be remembered
for itself, while the brand name may not be remembered. Recall is also subject to
the variations of individual memory. Therefore they are at best only a short-term
measure of advertising effectiveness.

2. ATTITUDE TESTS

Tests that measure shifts in attitudes are generally a better measure of


effectiveness than recall tests, because attitudes relate more closely to the
purchase of a product. A positive attitude is an indication of an intention to buy
the product, and vice versa. A variety of measurement techniques like constant
sum, Likert scale, Semantic differentials are used.

The advantage of attitude tests is that they are easy to conduct and low in cost,
because they can be done via phone or mail. The difficulty lies in coming up with a
proper definition of attitude, which represents a complex mix of feelings. Many
people also find it difficult to express their attitudes. Also, attitudes are resistant
to change even by highly aggressive advertising efforts.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

3. INQUIRY TESTS

They measure interest in and desire for a product.

The two broad categories of posttesting methods available to test the sales
effectiveness of advertising are:

Measurement of post sales: This method consists in comparing past sales


with the current sales.

Experimental designs: This method overcomes some of the problems of


sales tests by eliminating the influence of all variables that influence sales,
except advertising. One way to use an experimental design would be to
test which level of advertising expenditure produces the best sales level.
In addition, it can also be used to test alternative media mixes, creative
approach and the timing or frequency of ads. It is best suited for products
that are purchased frequently and advertising is the major factor in the
marketing mix.

The consumer’s emotional response to an ad is also considered a measure of


effectiveness. A special quantitative technique for measuring such responses
has been developed in US by Leo Burnett advertising agency, known as
“Viewers Response Profile”. It consists of a series of 52 different statements
about the ad or commercial, with which respondents are asked to agree or
disagree. These statements measure emotional response along seven different
dimensions: entertainment, confusion relevant news, brand reinforcement,
empathy, familiarity and alienation.

This technique can be used for both pretesting and posttesting of TV


commercials as well as print ads. It is based on what people feel after
watching ads, rather than what they know.

Although advertising is still in its infancy stage in India, its importance is


bound to grow in future. The “account planning” function; still a relatively
new concept in India will assume greater importance, as it is the integration
of research with campaign planning. The account planner will be responsible
for conducting advertising research, as well as taking strategic decisions
about the campaign.

RAM
Special Studies in Marketing T.Y.B.M.S.
________________________________________________________________________

ADVERTISING SHARE V/S MARKET SHARE

Less effective advertising

More effective
advertising

TOPICS ON WHICH CASE STUDY CAN BE GIVEN

Brand Management
Advertising Objectives and DAGMAR
Copy
Evaluating Advertising Effectiveness
Sales Promotion

Wish u ALL THE BEST for your Exams!!!!

Feedback about this study material can be emailed @


ramkishen123@rediffmail.com

...THE END…

RAM

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