Professional Documents
Culture Documents
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MODULE- I
COMMUNICATION
Concept Question
1. Define Communication
Descriptive Questions
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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.
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.
COMMUNICATION DEFINED
The steps between source and a resource that result in the transference and
understanding of meaning
- STEPHEN R. ROBINS
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between two or more people & the important ideas of group influence & the
diffusion of information.
Perception process
Channel Channel
(Media) (Word-of-Mouth)
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:
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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
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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
Brand Purchase
Ad Exposure Attitude Behaviour
Association of feelings
with brands
Reminder or inducement
about brand trait
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Budget determination
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Promotional program
Review of previous program result
BUDGET DETERMINATION
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Advertising:
DIRECT MARKETING
INTERACTIVE/INTERNET MARKETING
SALES PROMOTION
PUBLIC RELATION/PUBLICITY
PERSONAL SELLING
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Develop sales messages
Develop selling roles & responsibilities
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TOOLS OF IMC
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PULSE * BRAND
FOOTPRINT +
SELLING
STRATEGY^
AD WORKS
Mc CANN ERICKSON
END OF MODULE I
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MODULE- II
ADVERTISING AGENCY
Concept Questions
1. Function of an ad agency
2. Selection of an ad agency
3. Evaluation of an Ad agency
Descriptive Questions
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INTRODUCTION
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.
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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:
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.
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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
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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
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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
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.
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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)
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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.
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.
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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.
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EVALUATION OF AN ADVERTISING AGENCY
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.
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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.
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.
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Branches…
Ahmedabad Hyderabad
Bangalore Kochi
Chennai Kolkata
Delhi Mumbai
Mudra Divisions
Awards
1996 : 90 awards
Agency of the Year: Advertising club
Copywriter of the Year: Kolkata advertising Club (Freedy Birdy)
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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
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THE ADVERTISING OBJECTIVES ARE:
Ads
Advertising
Ad Planning Objectives
& Advertising
Strategy Process Strategies
Marketing objectives
& Strategies
Situation Analysis
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Model 1: AIDA
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.
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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Presentation
Attention
Yielding
Retention
Behaviour
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Model 4: Hierarchy-of-Effects
Unawareness
Awareness
Knowledge
Purchase
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Awareness
Acceptance
Preference
Buying Intention
Provoking Sales
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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.
ATTITUDE
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COMPONENTS OF ATTITUDE
Affective
Cognitive Conative
1. Cognitive Component
2. Affective Component
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.
Message Focus
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.
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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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In sales as an objective DAGMAR propounds that direct tools like mail orders
etc… can enhance sales through advertising.
I. A COMMUNICATION TASK
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.
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.
CHALLENGES TO DAGMAR
1. The Sales Goal: Awareness alone doesn’t affect sales. Sometimes, a consumer
may purchase a brand on impulse behavior.
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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.
DAGMAR - MODULE II
It was basically developed to overcome the problems of DAGMAR
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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!”
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.
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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. Awareness
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2. Comprehension
3. Image
4. Action
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:
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MODULE- IV
BRAND MANAGEMENT
Concept Questions
3. Define Brand
Descriptive Questions
2. State various factors affecting Brand Image. How would you develop
Brand Image/ Brand Personality strategy?
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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??
Brand
Brand Values
Brand Utility
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
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.
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:
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Brand composition
RATIONAL APPEAL: These relates to the physical features that are embedded
in the brand.
Eg :- 4 stroke engine ( Hero Honda)
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 Competition
Presepective Prespective
Brand
Relevant Communication Distinct
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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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BRAND IMAGE
BRAND RELATIONSHIP +
BRAND ATTITUDE
BR AND ASSOCIATIONS
BRAND IMAGE +
BRAND PERSONALITY
BRAND SYMBOL
BRAND LOOKS +
BRAND NAME
BRAND CHARACTER
BRAND SYMBOL +
BRAND LOGO
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 symbol two visual signals of a brand – its character (Eg. Amul girl,
Pillsbury doughboy) and its logo.
‘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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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.
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.
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.
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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.
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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
Brand Associations = Link up in memory with brands attributes benefits and looks
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.
BRAND ASSOCIATIONS
PRODUCT
ATTRIBUTES INTANGIBLES
COUNTRY/
GEOGRAPHIC
AREA
CUSTOMER
BENEFITS
COMPETITORS
BRAND
NAME AND
RELATIVE
SYMBOL PRICE
PRODUCT
CLASS USE/
APPLICATION
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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:
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2. Positioning by “Price-Quality”
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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.
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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.
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.
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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?
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.
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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.
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Brand
Equity
Long Term Profits
Consumer Franchisee
Brand
Loyalty Premium Pricing
Relationship
Brand
Preference
Persuasion Salience
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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
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
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.
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
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?
BRAND OBJECTIVE
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CONCEPTUAL TARGET
CORE DESIRE
What is the conceptual target’s most deeply held desire, need, want, hope, that
the brand best fulfils?
Unshackle themselves
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?
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.
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.
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.
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:
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”.
END OF MODULE IV
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MODULE- V
COPYWRITING
Concept Question:
Descriptive Question:
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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 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.
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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:
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.
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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.
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?”
“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.”
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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).
GAIN ATTENTION
HOLD INTEREST
CREDIBILITY
CREATE DESIRE
(Product benefits)
MOTIVATE ACTION
(Use tools of advertising)
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BIG IDEA
COPY COPY
THINKING STRUCTURE
END OF MODULE V
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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
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Big numbers mean tough time for today’s media planners, media planning has
gained dominance in India because of the following factors: -
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Envelop Enclosures
Booklets and Catalogue
Sales Letter
Gift Novelties
Package Inserts
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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.
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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.
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Media Objective
Advertising Exposure
Reach Frequency
TV, Newspapers,
Magazines, Radio, Media Selection Media Scheduling
Outdoor Readership
profile Viewership Media Operations
profile
Negotiation Buying
WHAT IS REACH
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WHAT IS FREQUENCY
THE FUNNEL
MARKETING DECISIONS
ADVERTISING DECISIONS
FUNNEL APPROACH
TO MEDIA DECISION
MAKING
MEDIA DECISIONS
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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
F
= TOTAL NO. OF EXPOSURES
REACH
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
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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:
The media planner has to take the following factors when developing a media
strategy:
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
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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.
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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:
Thus the media planning is very complicated and involves a lot of expertise.
Media planners play a very crucial role in media budget decisions.
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Analysis driven
Targeting Placement
Targeting Placement
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END OF MODULE VI
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MODULE- VII
PUBLIC RELATIONS
Concept Question
3. Corporate advertising
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Public Relations as the term suggest, broadly mean relations with the public and
involves a whole range of activities.
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.
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“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
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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
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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:
3. CORPORATE COMMUNICATIONS
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:
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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:
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:
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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:
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.
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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.
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.
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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.
2. Institutional Advertising
4. Issue Advertising
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MODULE- VIII
SALES PROMOTIONS
Concept Questions:
3. Give a tool of sales promotion and explain which promotion tool will be
used.
Descriptive Questions:
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Sales Promotion
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SP METHODS
But before dwelling any further into the nuances of the chapter let us define the
methods of sales promotions:
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.
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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.
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:
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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.
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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:
ADVANTAGES TO CONSUMERS
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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.
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.
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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:
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.
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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.
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.
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MODULE- IX
ADVERTISING BUDGET
Concept Question
Descriptive Question
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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.
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.
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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:
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.
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.
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.
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.
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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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.
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.
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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.
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.
Usually companies have a yearly budget but some may prepare long term
budget that match the long-term objectives.
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.
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8) Importance of middlemen:
If the advertiser wants to approach the national market his budget has to be
much more than that required for local or regional market.
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END OF MODULE IX
MODULE- X
ADVERTISING EFFECTIVENESS
Descriptive Question
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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.
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.
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.
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.
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= =
=
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.
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ADVERTISING RESEARCH
It involves decisions on-
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
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MOTIVES
ADVERTISING BUDGETS
SCHEDULING
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”.
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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”.
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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.
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.
These are commonly used in US and other developed countries. These include:
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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.
PROJECTIVE TECHNIQUES
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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:
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.
POST-TESTING
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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
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.
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3. INQUIRY TESTS
The two broad categories of posttesting methods available to test the sales
effectiveness of advertising are:
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More effective
advertising
Brand Management
Advertising Objectives and DAGMAR
Copy
Evaluating Advertising Effectiveness
Sales Promotion
...THE END…
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