Table of ConTenT Page
no.
Intro Difference Between Advertising & Marketing 6
What is Advertising 7
Nature of Advertising 8
Feature of Advertising 10
Role and Importance of Advertising 12
Objective of Advertising 16
Scope of Advertising 17
Benefits of Advertising 20
Disadvantages of Advertising 23
Types of Advertising 25
Key Player of Advertising 35
Advertising What is Advertising Agency 38
Agency
Feature of Advertising Agency 39
Importance of Advertising Agency 41
Types or classification of Advertising Agency 44
Selection of Advertising Agency 44
Client Agency Relationship 48
Adv. Media Function of Advertising Media 50
Types of Advertising Media 52
5Ms 5Ms of Advertising/ Developing Ad 55
Programmes
Marketing Advertising role in Marketing Mix 57
Mix
Marketing Meaning, Importance of Marketing 60
Communica- communication
tion
Process of Marketing communication 63
Process of Advertising communication 63
AIDA Model AIDA Model 66
Model’s Hierarchy of Effects Model 68
Innovation Adoption Model 70
Information Processing Model 73
Integrated Integrated Marketing Communications 74
Marketing
Communica-
tion
Importance of Integrated Marketing 74
Communications
Components of Integrated Marketing 76
Communications
Benefits of Integrated Marketing 79
Communications
Setting Setting Advertising Objective 80
Advertising
Objective
DAGMAR DAGMAR Model 82
Model
Ethics in Ethics in Advertising 86
Advertising
Unethics in Advertising 90
Puffery in advertising 90
Surrogate in Advertising 91
Stereotyping in Advertising 94
Subliminal in Advertising 96
Advertising to Children 97
Aspect of Aspect of Advertising 98
Advertising
Social Aspect of Advertising 98
Economic Aspect of Advertising 101
Legal Aspect of Advertising 104
How How Advertising Works 106
Advertising
Works
Feeling and Emotions in Advertising 110
Advertising What is Advertising Research 112
Research
Scope of Advertising Research 113
Types of Advertising Research 114
Process of Advertising Research 116
Methods of Advertising Research 119
Problems of Advertising Research 121
Advertising Meaning of Advertising Media Planning 123
Media
Planning
Importance of Advertising Media Planning 123
Process of Advertising Media Planning 124
Problem of Advertising Media Planning 127
Factor affecting Advertising Media Selection 128
Media Meaning and Strategies of Media scheduling 130
Scheduling
Creativity in What is Creativity in Advertising 133
Advertising
Importance of Creativity in Advertising 134
Meaning and Types of Creative Strategy 136
Advertising Meaning and Strategies of Advertising 138
Message Message
Advertising What is Advertising Budget 140
Budget
Process of Advertising Budget 140
Factor affecting Advertising Budget 141
Method or Types of Advertising Budget 143
Advertising Meaning of Advertising Copy 145
Copy
Elements of Advertising Copy 145
Types of Advertising Copy 149
Personal What is Personal Selling 151
Selling
Importance of Personal Selling 155
Process of Personal Selling 156
Types of Personal Selling 159
Advantages of Personal Selling 160
Disadvantages of Personal Selling 161
Salesman Meaning of Salesman 162
What is Salesmanship 164
Difference between Advertising and Marketing
Advertising Marketing
Advertising Is Just One Slice of the Marketing include advertising and
Marketing other factor also.
Advertising include promotion of It is the process of Create,
product. communicate, Delivers Value to
Customer.
Short Term Long Term
Aware and create interest to buy the Attracts Customer Organically
product
Create awareness Generates Sales
Example of advertising and marketing
The company noticed that the roads in India were damaged, due to which
people had trouble in traveling. For this company introduce a motorbike
that they travel hassle-free. In this company first, discover the needs or
wants of the consumers and, then create a product, after then they
communicate ( means Advertising ) and, then deliver the product to the
customer.
What is Advertising
Meaning of Advertising
a.) Advertising work as a source of communication between the customer
( the user of product and services ) and the advertiser.
b.) Advertising is the means of informing and influencing a vast audience
to buy a product or service through visual ( seen ), oral, or written
messages.
c.) Advertising is the action of calling public attention.
Definition of Advertising
Advertising is any paid form of non-personal presentation ( not for an
individual ) & promotion of ideas, goods, or services by an identified
sponsor. - Kotler
Advertising is any communication, usually paid-for, specifically intended
to inform and/or influence one or more people.
- Advertising Association of the UK
Requirement of Advertising
A business that wants to step into markets and make a mark definitely
needs advertising. There is hardly any organization that does not
advertise these days. Advertising can be done through various media such
as newspaper, magazines, television, radio, posters, hoardings, billboard
and in recent times, the internet.
Nature of Advertising
1.) Attention seeker
2.) Has a unique selling proposition
3.) Consumer-oriented
4.) Uses various media
5.) Paid Form
1.) Attention seeker
The term ‘advertising‘ brings from the Latin word ‘advertere’ meaning
‘to turn the attention’ each piece of advertising attempts to hunt the eye of
your audience towards a product or service.
2.) Has a unique selling proposition
Usually, the advertiser needs to have a unique selling proposition (USP).
This unique selling proposition makes the merchandise or service stand
out of the gang. Advertising attempts to influence the audience through
different kinds of appeal.
Convenience
Spicy & Tasty
3.) Consumer-oriented
Advertising expands the knowledge of consumers. With this nature of
advertising, consumers can have the skills to know the products, brands,
or services that exist within the market. Every product or service is made
for consumer satisfaction.
Is the Product for baby, child,
young, or old age customers?
4.) Uses various media
Alone from print platforms like newspapers and magazines, its presence
can now even be seen in audio, visual platforms like films, hoardings,
banners, flags, promotional campaigns, nowadays the internet, web, so
on…
We, Will, discuss it in details
in advertising media.
5.) Paid Form
Only that attempt of the seller on which he/she has spent some money to
communicate information to the consumer is called advertising. Whatever
may be the media each medium and media vehicle cost the advertiser.
Feature of Advertising
1.) Paid Form
2.) Impersonal Presentation
3.) Speedy and Mass Communication
4.) Target oriented
1.) Paid Form
Only that attempt of the seller on which he/she has spent some money to
communicate information to the consumer is called advertising. Whatever
may be the media each medium and media vehicle cost the advertiser.
For example :- If an editor of some magazine, on his own, publishes
news about a particular product, it will convey to the consumers
necessary information regarding that product but no expenditure has been
incurred by the seller for this publication.
As such, it cannot be called advertising. It may be called propaganda or
publicity. Thus, any information about a product communicated free of
cost cannot be termed as advertising.
2.) Impersonal Presentation
Advertising is non-personal presentation of information. In other words,
it is not for an individual. Advertising cover mass population.
3.) Speedy and Mass Communication
Advertising is a speedy medium of communication. Besides being speedy,
its operational area is extremely vast. In other words, it reaches many
people simultaneously.
4.) Target oriented
Advertisements focused upon the needs and want of target customers and
markets. Advertisements depict target customers and markets
For example - protein health drinks like Horlicks, Complan, etc., are
targeted towards children, focusing upon parent's emotions, pointing
towards excelling in studies, sports, and beating the competition.
Role and Importance of Advertising
1.) Spreading Awareness
2.) Popularizing a Brand
3.) Increasing Demand
4.) Increased Profit
5.) Maintains the existing market
6.) It acts as salesman
7.) Reduces his burden of job
8.) It is a driving-force in decision-making
1.) Spreading Awareness
Advertisements aware people about new or existing products and services
in the market that will accomplish their needs or solve their problems. A
typical advertisement will tell you what the service or product is, where it
can be bought, for how much, by whom, why it should be bought so on.
2.) Popularizing a Brand
Think about all the famous manufacturers you recognize, which includes
coca-cola or McDonald's. These manufacturers come out of the group and
make their name a brand because they applied the phenomenon of
advertising nicely.
Top Popular Brands In India
3.) Increasing Demand
The target Customer of advertisements is typically big, whether you’re
advertising in Newspapers, magazines, BillBoards, radio, or television. A
well-maid or delivered advertisement will satisfy the public that they
should buy the product or try it at once.
4.) Increased Profit
Advertisements are displayed too large groups of people at the same time.
This means, even with a low conversion rate, many people will end up
buying your products eventually. If you execute your advertisement well,
you will get a good conversion rate and great sales. Increased sales, of
course, mean increased profits.
5.) Maintains the existing market
A forward-looking company or a going concern always has its eyes on
future business prospects that it cannot be going to lose a place in the
current position. A company’s success is shown not only in creating a
market but also in its maintaining and expansion as per the changing
environment.
6.) It acts as salesman
Sometimes Advertising has been rightly described as salesmanship. What
a traveling salesman does, he sells goods and services at the doorstep by
convincing the customer. That is why most retail organizations do not
employ a large army of the traveling salesman, as they advertiser their
products to their customers.
7.) Reduces his burden of job
In case the salesman alone is asked to accept the challenge of selling, it
goes very difficult. In the absence of advertising, he is forced to play a
double role. One role is advertising another is selling.
Advertising produces public interest, wins confidence, and promotes
strong faith. With such a ready back-ground, the salesman can perform
his task easily.
8.) It is a driving-force in decision-making
In the present day, products and services are complex. There is a large
number of products and services available in the market. The largest
possible varieties of products to such an extent that the consumers are
confused to decide which product will be better for them. Further, each
producer claims that his products are the best.
Objective of Advertising
1.) Introduce a product
2.) Spreading Awareness
3.) Brand building
4.) Maintains the existing market
5.) Acquiring customers
6.) Value Creation
1.) Introduce a product
Advertising is most commonly used for the introduction of a new product
in the market. There are so many advertisements for the latest phone,
refrigerator, television, etc. It does not matter that there is a new or
existing company they all need advertising to launch their new product.
2.) Spreading Awareness
Advertisements aware people about new or existing products and services
in the market that will accomplish their needs or solve their problems. A
typical advertisement will tell you what the service or product is, where it
can be bought, for how much, by whom, why it should be bought so on.
3.) Brand building
Think about all the famous manufacturers you recognize, which includes
coca-cola or McDonald's. These manufacturers come out of the group and
make their name a brand because they applied the phenomenon of
advertising nicely.
4.) Maintains the existing market
A forward-looking company or a going concern always has its eyes on
future business prospects that it cannot lose place of the current position.
A company’s success is shown not only in creating a market but also in
its maintaining and expansion as per the changing environment.
5.) Acquiring customers
The objective of advertising is not only to introduce the product or create
awareness about a new product but also to acquire more customers for
company growth. Acquire the customer is not an easy task because they
are already habitual of other products. So the advertiser has to pass a
strong message to the customer to switch customer brands.
6.) Value Creation
Creating value is not an easy task. It requires time and a lot of effort from
the company. The company can sell out their product with the help of
advertisements. But a company that provides a quality product at less
price can create its value in front of its customers.
Scope of Advertising
1.) Message
2.) Media
3.) Organization or Advertiser
4.) Product
5.) Advertising agencies
6.) Competitor
7.) Art as well as science
8.) Activities
1.) Message
Advertising carries a message of the product. The message may be visual
or oral or written. It is designed in a systematic and psychological manner
to influence the prospective customer.
2.) Media
A large number of advertising media, with their respective advantage,
disadvantage, cost, and benefit are available. The selection of media
should be made based on the type of customer to be approached and the
capacity of the organization to bear the cost.
3.) Organization or Advertiser
It is who, which need advertisement to sell his product or services.
Because advertisements create demand, provide messages or information,
Influence the prospective customer, and that all helps a company to sell
its product or service.
4.) Product
Advertising covers the attributes of the product & services. Product and
services to be sold have its advantage and disadvantage. The advertiser
should show the attributes of the product and avoid the criticism of a
similar product of the competitors.
Daag acche hai
Tide ho toh white ho
These products have their feature, but they cannot criticize the
product of the competitors.
5.) Advertising agencies
Advertising agency plays an important role because the advertising
agency makes an effective and innovative advertisement which attracts
customers to get that product. Advertising agencies help people in
understanding the merits and demerits of a company product or service.
An advertising agency is one which makes awareness about the
company’s product through advertisements. He has to be very cautious in
selecting his advertising message and method. This can influence people
negatively.
6.) Competitor
A company's product or service is shown as better when compared to a
competitor's. A comparative advertising campaign may involve
marketing a side-by-side comparison of the features of a company's
products next to those of its competitor. It may also feature comparison
based on price or Quality.
Companies cannot criticism the similar product of the competitors. So,
they use words like other toothpaste do not have this feature but our
product has.
7.) Art as well as science
Advertising is considered to be an art as well as a science because it has
some of the characteristics of both. It is an art because of the advertiser
employs his creative abilities. It is a science because of no. of media,
technology, method, the technique used to create an advertisement.
8.) Activities
It is a continuous activity. Activities included under advertising and Mass
Communication carrying message developing Impressions and image
building and so on. These activities are performed by the advertiser
economically, effectively and regularly.
Benefits/Advantages of Advertising
1.) Launch of a new product
2.) Increases markets
3.) Mass sales
4.) Keeps the competitive spirit alive
5.) Creates goodwill
6.) Consumer awareness
1.) Launch of a new product
Advertising plays a highly significant role in the introduction of a new
product on the market. It encourages people to buy or know about a new
product. Without the help of advertising no, one will be aware of the new
product launched in the market.
2.) Increases markets
It helps the manufacturers to expand their markets. It opens the horizons
for new markets for the product or service. Advertisement not only create
new customer but it also helps to expand the new locations for the
company.
3.) Mass sales
Advertising facilitates mass production of goods that ultimately results in
a raised volume of sales. There is a direct link between advertisements
and sales. The more advertisements we do the more sale will take place.
4.) Keeps the competitive spirit alive
Advertising helps in keeping the competitors at the end. It keeps a regular
check on the performance of the brand or product. Advertising help the
company to come out of the group and help to create its own brand. A
perfect advertisement helps the company to uplift its brand from its
competitor.
5.) Creates goodwill
Advertising builds goodwill for a brand. Advertising is a central root
through which the audience gets to know about a brand or product. If a
company is spending on the advertisement, it means they want to make
their consumers aware. This increases the goodwill of a brand.
6.) Consumer awareness
Advertising is educational and dynamic. It educates the customers about
the new products and their diversification. It helps them to know all the
variants available in the market and which one will fit for them. Every
customer has his taste and it differs from person to person. Advertisement
helps them to choose the right product for them.
Disadvantages of Advertising
1.) Deferred Revenue Expenditure
2.) Misrepresentation of Facts
3.) Increased Cost
4.) Advertising helps to sell bad products
5.) Wastage of National Resources
6.) Survival of Small Companies
1.) Deferred Revenue Expenditure
It is a deferred revenue expenditure, as the results are not immediate. As
advertising occupies a substantial portion of the total budget of the
organization. Hence, investing a large sum in it does not necessarily yield
immediate results.
Have to advertise at regular intervals.
Have to advertise at the time of introducing the
new model.
2.) Misrepresentation of Facts
A major drawback of advertising is the misrepresentation of facts
regarding products and services. Advertisers usually misrepresent the
unreal/false benefits of a product. The customer comes to realize later that
the description given in the advertisement was something else whereas
the actual product was quite different from it.
3.) Increased Cost
An organization has to spend a large cost on advertising. It increases the
expense of the products. To meet this expenditure, the price of the
product is increased. No manufacturer of goods or services pays for the
advertising expenses out of his pocket. Therefore advertising leads to an
unnecessary rise in prices of goods or services. Advertising costs are
passed on to consumers in the form of high prices.
4.) Advertising helps to sell bad products
Usually, miracle products that claim they can cure rapidly everything
from bad breath are heavily advertised. Consumer’s choice is greatly
affected by the advertisement. Advertisement reduces competition among
the competitor because not every company can advertise there product.
Big industrialists and manufacturers have a huge budget with them so
they can advertise easily.
5.) Wastage of National Resources
Products have their life period. Day by day new products gets launched
by the company with minor changes. These products attract the customer
to buy the new one in place of the old product. Sometimes the product is
changed before the end of its normal period of usefulness.
6.) Survival of Small Companies
The advertisement makes it difficult for a small organization to uplift in
society. They have to struggle a lot to make the customer aware of their
products. They face difficulty to sell their product because another Big
player is having a major share of the market.
Types or classification of Advertising
1.) Classification Based on the Media
2.) Classification Based on Geographic Area
3.) Classification Based on Target Audience
4.) Internet Advertising
1.) Classification Based on the Media
A.) Print Advertising
B.) Outdoor Advertising
C.) Broadcast Advertising
A.) Print Advertising
a.) News papers
b.) Magazine
c.) Brochures
d.) Flyers
a.) News papers
A newspaper is a serial publication. It Published on daily bases expect
some days. It includes news on current events of special or general
interest.
It is a powerful mode of mass communication which is available
physical or digital.
b.) Magazine
A magazine is a publication in printed form or online that comes out
periodically. Most magazines are published monthly, weekly, or
quarterly.
It usually bound in a paper cover, and typically contains essays, stories,
poems, etc., by many writers.
c.) Brochures
Brochures are promotional documents, mainly used to introduce a
company, organization, or its products or services in front of the public.
It contains pictures and data which help the public to know about the
company effectively.
d.) Flyers
1. Flyers are typically single sheet and unfolded.
2. They may be printed on one or both sides.
3. A flyer is generally printed on the 8.5” x 11” paper size to keep its cost
low, though flyers can be created in any size that is easy to handle
B.) Outdoor Advertising
a.) BillBoards
b.) Point of Sale Displays
c.) Retail advertising
d.) Guerilla advertising
a.) BillBoards
Billboards are giant posters displayed on accessible locations. Consumers
have admitted to looking at the messages on roadside ads. This shows
that creating billboards is more useful for sales conversion.
This is especially true in high traffic areas with many highways.
b.) Point of Sale Displays
You can see the products at cashier counters. It may often look like an
efficient and harmless last-minute purchase. This is one of the simplest
ways to advertise a product with the least minimum amount of marketing
efforts. It’s a more effective way to market a product.
c.) Retail advertising
To keep a buyer continuing to shop – advertise more.
Retail advertising takes place mainly in or around retail environments,
such as stores and shopping centers.
Consumers are already in the mentality to buy, so take advantage of
the situation.
d.) Guerilla advertising
Guerilla advertising is a more unconventional way of marketing. It has a
shock factor. To engage in this marketing technique, you simply take an
existing item in public, and then you add to the environment.
C.) Broadcast Advertising
a.) Television advertising
b.) Radio advertising
a.) Television advertising
It is about showing a product & Service from few seconds to several
minutes. This method of advertising is more expensive than another form
of promotion.
b.) Radio advertising
As advertisers pay for the advertisements you see on television, some
advertisers also decide to focus on radio advertising, to promote their
products or services. Advertisers pay commercial radio stations and, in
exchange, the radio station broadcasts the advertisements to its listening
audience.
2.) Classification Based on Geographic Area
A.) Global Advertising
B.) National Advertising
C.) Local Advertising
A.) Global Advertising
Global advertising reaches consumers from different countries. When a
company watches in the entire world as one market. There is no
difference between the local market or any other country market. This
advertising is used by the advertiser having certain products to sell in
huge quantities. They sell the same product all over the country and the
same thing all over the store.
B.) National Advertising
Most of the advertisements of well-known companies and brands that are
seen on major national or regional media are national advertising. The
purposes of national advertisers are too aware consumers of the company
or brand about its features, benefits, advantages.
C.) Local Advertising
Local advertising is the approach of targeting audiences close to the
location of the company. A company uses local advertising to attract
customers living nearby. This advertising work in a specific area but
influence more customers because it fulfills the needs of particular area
persons.
3. Classification based on Target Audience
A.) Consumer Advertising
B.) Business-to-Business Advertising
C.) Professional Advertising
D.) Agricultural Advertising
A.) Consumer Advertising
Consumer advertising includes advertising for different segments or
groups of segments such as childhood, adolescence, adulthood, middle
age, senior, or for all.
B.) Business-to-Business Advertising
It include insurance, travel services, and health care, H.R., Factoring,
Leasing, etc.
C.) Professional Advertising
Advertising that target to the professionals such as physicians, lawyers,
doctors, engineers, or professors is called Professional Advertising. It
encourages them to use a company’s product in their business operations.
D.) Agricultural Advertising
Advertisements targeted towards the farmers for the purchase of seeds,
tractors, and other agricultural implements are regarded as agricultural
advertising.
4.) Internet Advertising
A.) Web Banner Advertising.
B.) Contextual Advertising.
C.) Blog Advertising.
D.) Mobile Advertising.
A.) Web Banner Advertising
Unlike the billboard advertising, which is used on roads, a similar type
called banner advertising is used on the web. The horizontal
advertisement layers that are seen at the top or down of the web page are
nothing but the web banner advertisements.
B.) Contextual Advertising
Contextual advertising is a targeted form of Internet marketing in which
the advertisements are selected by automated systems. It is based on the
content being viewed by a particular user. The automated system scans
the text of a website for keywords that customers searched and sends
advertisements that match the content which the user is viewing. Google
Adsense was the first 74 contextual advertising venture.
C.) Blog Advertising
Blog advertising is simply placing advertisements on one’s blog. It
consists of running banners and text advertisements on the top, sidebar,
and footer of one’s blog. Blog advertising is getting great popularity
nowadays. Advertisers have smartly used blogs as effective advertising
and marketing tools. Companies blogs are an attractive way for
companies to reach out to their customers.
D.) Mobile Advertising
Most of the time, advertisers have mobile numbers of their existing
customers as well as a list of phone numbers of people who might be
potential customers. An advertising message will be sent to these mobile
numbers. Advertising messages help the company to aware customers of
its new brand, products, offer, etc. It is now a fact that mobile advertising
is one of the most effective ways of advertising.
Key Player of Advertising
1.) Advertiser
2.) Advertising Agency
3.) Media
4.) Suppliers
5.) Target Audience
6.) Government Authorities
1.) Advertiser
The advertiser is the company whose product or service is going to be
promoted through advertising. The result of the final advertisement is
going to benefit him the most as it's his brand whose future depends upon
the nature of the advertising.
2.) Advertising Agency
Whenever an advertiser will get affected the most positive or negative it's
the advertising agency that plays the greatest role in creating the impact
of the advertisement. In other words, the advertising agency is
responsible for the degree of the effectiveness of the advertisement, the
outcome of which will make or break the brand. Advertising Agency
like......
A. CRAYONS ADVERTISING Crayons Banners
Crayons Advertising has expertise in advertising brand management, branding, film
production, events, digital, media, and out of home services.
Clients: SBI, Delhi Police, Indira IVF, J&K Tourism, Kajaria, among others.
B. JWT INDIA
JWT India offers services for brand building, digital transformation, social and sector
expertise. They also provide trends and insights on cultural shifts to their clients.
Clients: Apollo Hospital, Hero Honda, Star news, Standard Chartered, Ministry of
Finance, Ministry of Defence, Pepsi Foods, 20th Century Fox, Van Heusen, Hero
Motors, and Parle etc..
3.) Media
The third player in the advertising world is media. The media player is
composed of the channel of communication that carries a message from
the advertiser to the audience and in the case of the internet it carries a
response from the audience back to the advertiser.
4.) Suppliers
The fourth player in the world of advertising is the group of service
organizations that assist advertisers, advertising agencies, and media in
creating and placing the ads.
They provide specialized services like artist, writer, photographer,
directors, producers, freelancer, consultants and so on
5.) Target Audience
All advertising strategies start with the identification of the customer or
prospective customer, the audience of the advertising message.
The task of learning about the target audience is difficult and
takes no. of hours to accomplish. The data-gathering technology that not
only reduces the time but also improves the accuracy of information
about the customer.
6.) Government Authorities
The business of advertising is regulated by the government department.
The government adopts law and regulation which have a direct and
indirect bearing on the advertising. Apart from this ASCI ( Advertising
Standards Council of India ) and ABC ( Audit Bureau of Circulation ) are
also some of the authorities regulating advertising.
Advertising Agency
Meaning of Advertising Agency
Whenever an advertiser will get affected the most positive or negative it's
the advertising agency that plays the greatest role in creating the impact
of the advertisement. In other words, the advertising agency is
responsible for the effectiveness of the advertisement, the outcome of
which will make or break the brand.
A.) CRAYONS ADVERTISING Crayons Banners
Crayons Advertising has expertise in advertising brand management,
branding, film production, events, digital, media, and out of home
services.
Clients: SBI, Delhi Police, Indira IVF, J&K Tourism, Kajaria, among
others.
B. JWT INDIA
JWT India offers services for brand building, digital transformation,
social and sector expertise. They also provide trends and insights on
cultural shifts to their clients.
Clients: Apollo Hospital, Hero Honda, Star news, Standard Chartered,
Ministry of Finance, Ministry of Defence, Pepsi Foods, 20th Century Fox,
Van Heusen, Hero Motors, and Parle etc..
Feature of Advertising Agency
1.) Independent Organization
2.) It works for Advertiser
3.) Composed of Creative People
4.) Provide different services
5.) Commercial Organization
1.) Independent Organization
Advertising agency works independently. Advertiser contact to advertiser
agency to make an advertisement for them. They work on the message,
Creativity, Quality. If the agency requires any information, then they ask
the company. The agency creates a message for the advertiser and in
return, the agency gets paid by the advertiser.
2.) It works for Advertiser
The purpose of establishing an advertising agency is to make an
advertisement for the advertiser. So, it works for the advertisers.
Advertising agency helps to create and deliver the advertising message to
the target customer, Create a new customer for the advertiser, improve
brand image, increase the sale of the company, etc.
3.) Composed of Creative People
Creating and delivering advertising is not an easy task. Agency needs
in-depth knowledge of each aspect of advertising. Advertising techniques,
media, methods change rapidly. So, the agency has to be very polished in
their work, that will happen with the help of professional and expert
persons. It consists of writers, artists, market analysts, researchers, etc.
4.) Provide different services
Advertising agency provides different types of services to the advertiser.
These services start from the preparation of the advertisement to the
execution of the advertisement after analyzing the appropriate media and
time, follow up the message, and measuring the effectiveness of the
advertising message. It helps the advertiser to check that their objective of
advertisements fulfills or not.
5.) Commercial Organization
The advertising agency is a commercial organization because it charges a
fee for its services. These charges are based upon the
a. services which they are going to provide to the advertiser,
b. the brand name of the agency,
c. the past track record of the advertising agency.
Importance of Advertising Agency
A. Importance to its Clients
B. Importance to Customers
C. Importance to Media Owners
A. Importance to its Clients
1.) Eliminates the need for the advertising department
2.) Reduce in Media Cost
3.) Effective Advertising Campaign
4.) Conducting Market Research
1.) Eliminates the need for the advertising department
Advertising agency eliminates the need for an advertising department
because it requires the services of an expert and professional persons that
are costly for the advertiser. Companies with sound financial conditions
and which advertise their product on a small interval can set their
advertising department.
2.) Reduce in Media Cost
Media cost reduced by obtaining the space and time in the media for its
advertiser cheaper rates as much as possible. Advertising agencies are in
touch with the media on a constant basis. As the advertising agency is
friendly with the advertiser in the same way they are friendly with the
media channel provider.
3.) Effective Advertising Campaign
An advertising agency is consist of expert and professional person, so
they are highly specialized in their work. They have in-depth knowledge
of preparing ads, selecting media, selecting the most appropriate time and
space for advertising, etc. Agency makes it possible to perform all the
activities timely and effectively.
4.) Conducting Market Research
Advertising agency make research in the field of market demand, level of
competition, customer taste, economic and trade conditions, trends in
market or fashion, popular t.v. program, popular media channel, the right
time for advertising, requirement of space in media, etc. Agency does
continuous research to make advertising smooth and effective.
B. Importance to Customers
1.) Spread Awareness
2.) Provide knowledge and information
3.) Create Link b/w advertiser and customer
1.) Spread Awareness
If an advertiser produces a new product, then how market and customer
will get aware of it. In this case, the advertising agency helps the
advertiser to introduce its product in the market. This is how customers
get awareness that there is a new product available in the market.
2.) Provide knowledge and information
Introducing a product is not sufficient. Customers must get some
information about the feature, use, benefits, etc. of the product. In
addition, they must get some knowledge that why their product is better
than others or any warning related to the product. This is done with the
help of an advertising agency.
3.) Create Link b/w advertiser and customer
The advertiser wants to introduce its product and customer want to
purchase a product that can fulfill their needs, wants, or provide comfort.
This is how customers and advertisers will get satisfaction. Advertising
plays an important role to create a link between the advertiser and
customers.
C. Importance to Media Owners
1.) Assure risk free business
2.) Slashes down the product cost
1.) Assure risk free business
Agency is the intermediate between the client and media channel owner.
The agency is friendly with both advertisers and media owners. They
provide risk-free business for both as it is helpful for the advertiser to
provide the best media channel at less price, and media owners get
benefited when the agency buys space and time at large for the number of
clients.
2.) Slashes down the cost
Agency reduces the cost for the advertiser, media owner, and the
customer. As the agency provides services at an economical price, so the
advertiser does not have to set up its expensive advertising department.
Most of the work gets done by the agency, so the media owner has to put
less effort. At last, if these costs get reduce, then the price of the product
also reduces that benefit customer.
Types of Advertising Agency
1.) Full service Agencies
2.) Interactive Agency
3.) Boutique Marketing Agency
4.) Media buying agencies
5.) In house Agency
1.) Full service Agencies
These are medium or large-sized agencies capable of carrying a complete
advertising campaign. The main agency may be helped by many
subsidiaries involved in various other related activities like market
research, sales promotion, advertising, public relation, media buying, film
production, etc. Thus, these agencies are capable of handling all the
various related activities of the advertisement from beginning to end.
2.) Interactive Agency
An interactive agency, also recognized as a digital agency. The increasing
number of internet users and the development of social networks have
significantly increased the need to adapted to current requirements. The
interactive agency helps the company, by providing creative services,
focused mainly on the online world.
3.) Boutique Marketing Agency
A boutique marketing agency is an expert marketing business that works
with a small group of professionals who are experts in their field.
The boutique agency has a limitation that they aren’t as
well-known in the market. Therefore, they won’t have a high reputation.
The boutique agency may not have a strong reputation, but the quality
and experience you receive from a boutique agency exceed expectations.
4.) Media buying agencies
Media buying agencies specialize in :
a.) They identify the best time frame,
b.) Schedules slots at different television channels and radio stations.
c.) Finally manages or checks whether the advertisement has been
telecasted at schedule time and place or not
A media agency may also have deep insights knowledge into the target
audience because of the tracking it conducts for advertising campaigns.
5.) In house Agency
In-house Agency means that in which all the advertising activities of a
company are handled by employees of the company. No or only a few
external individuals or organizations are involved in the advertising
processes.
Your in-house agency team benefits from an internal brand
understanding their inside knowledge of the company can be leveraged to
react quickly to immediate needs.
Selection of Advertising Agency
1.) Location
2.) Size
3.) Agency working for Competitors
4.) Image of Agency
5.) Services offered by Agency
6.) Rates Charged
7.) Financial Sounds
8.) Agency Experience
1.) Location
The advertiser will prefer that they get the best agency at the near
location. Companies have to make meetings at some interval. If the
agency is far from the company, then the company have to bear extra
expense plus it will create a communication barrier. Companies can make
good relations if they choose the nearly located agency.
2.) Size
Both large and small-sized agencies have their merit and demerit. Like
large-sized agencies provide a wide range of services with experienced
staff, but these agencies are costly and give less personal attention to all
clients. In the case of small size agency, they cost less and provide
personal attention because of less no. of clients but, they have failed to
provide services like the large-sized agency.
3.) Agency working for Competitors
Advertisers should not choose an agency that is working for their
competitors. For an advertising agency, both companies are clients to the
agency. Agency will not prepare ads that can go against advertiser
competitors because that company is also a client of the agency so, it can
create conflict between agency and company.
4.) Image of Agency
Image of the company matter a lot. Advertising is like the face of the
company, which represents the company brand image and products.
Before selecting an agency, the advertiser should check its image,
integrity, relation with the client, etc. It can be done, through the agency's
past and present work, its clients, its employee, etc.
5.) Services offered by Agency
In recent times the agency provides a wide range of services which
reduce the company's work. It includes Planning, market research,
preparation of ads, execution of ads, selection of right media with
reasonable price, follow up, public relation, etc. If the agency does not
serve the services that the company required, then it should not be
selected by the company.
6.) Rates Charged
The price of the services rendered by the agency should be reasonable.
The advertiser should compare the rate charged by the agency and then
compare it with the benefits excepted by the company. Rates also vary
from agency to agency as per their services and brand images that also
affect selection decisions.
7.) Financial Sounds
The agency with financial sound can work effectively. The agency with
financial sound can go with good types of equipment, hire expert
professionals, can afford better infrastructure, etc. They also have a good
relationship with the media owner that benefits the client to get media at
an affordable price.
8.) Agency Experience
Commonly, an experienced person can do better than a layman or
inexperienced. In the same case, an experienced agency can work better
than a new or less no. of experience agency. Experience agency is
familiar with the political environment, competitor policy, taste of
consumer, fashion, and trend, selection of best design, planning,
preparation, execution, etc.
It is difficult to find all these key points in one advertising
agency. So, firstly the advertiser has to plan that what are its requirements
or the benefits he wants for his advertising then, he should select the
advertising agency.
Client Agency Relationship
The client's agency relationship means the relationship between
advertiser and advertising agency. A friendly relationship between both
will help to work smoothly and effectively. Now, times all the advertiser
depends upon advertising agency because they provide professional
services according to their needs.
In the same way, the advertising agency has to depend upon the
advertiser for collecting the data, to know their requirements, feedback,
futures contract, etc. So, for working smoothly, it requires good relations
between the advertiser and advertising agency.
Principles of effective Client Agency
Relationship
1.) Do not advertise for the competitor
2.) Prompt Payment
3.) Passing Payment Discount to Advertiser
4.) Not to blame the agency for media lapses
5.) Professional Services
6.) Trust and confidence
7.) Written Agreement
8.) Interaction between agency and Client
1.) Do not advertise for the competitor
If the agency wants to maintain a long-term relationship with its client,
then the agency should not accept any business from the client's
competitor. In the same way, the client should not go to any other agency
for the advertising services without any dispute.
2.) Prompt Payment
Agency needs short terms funds to work smoothly. If the agency demands
any advance amount or money for partly work done, then the company
should pay the agency on time. Agency should clear all the conditions
that when and how much money will be required. So, it will not create
any misunderstanding.
3.) Passing Payment Discount to Advertiser
In case, the agency selecting the media channel for the clients and if the
media owner provides any discount offer to the agency, then the agency
should pass the same discount to the client. It will create a strong and
trustful relationship between the advertiser and client.
4.) Not to blame the agency for media lapses
As we discussed, sometimes the agency selects the media channel on
behalf of its client. After selecting the media channel, they have to choose
the time and date for placing the advertising. In case the advertisement is
not placed at the selected time and date, then the company should not
blame the agency.
5.) Professional Services
If clients are burning their money, then the agency has to provide the best
services to its clients. It is not only the obligation of the agency, but it is
the duty of the agency also. So, the agency has to provide professional
services to its client, at a reasonable rate, and at a scheduled time. It will
create a positive image of the agency in the mind of its client.
6.) Trust and confidence
Trust and confidence help the agency and client to maintain a good
relationship for the long term. Agency trust that their client will provide
timely information and make payments without getting late. In the same
manner, clients support their decisions as they are expert in their services.
7.) Written Agreement
Before start working, the client and agency should sign an agreement.
This agreement will include all the terms and conditions between the
client and the agency. It will help them to avoid any dispute in the future.
These terms can be - services rendered by the agency, fees paid by the
client, penalties on breach of agreement, time duration for the preparation
of the advertising, etc.
8.) Interaction between agency and Client
Agency and client must interact with each other frequently to create
agency-client relations. It will help both to understand the problems of
each other and to develop an understanding of various advertising
decisions. The client should check agency work frequently, instead of
criticizing at the end. It will also help to take the right action at the right
time.
Functions of Advertising Media
Introduction
Advertising media is a channel by which advertisers create a link to their
product and service with their customers. It includes Print media, Outdoor
media, Broadcast media, Internet, etc. Advertising media helps the
advertiser to make their customer know about its product uses, features,
utilities, benefits. It not only helps the advertiser to inform the customer
about its product but it also helps him to grow, to create his company a
brand, or to cut throw the competition. The selection of the right media is
also a difficult part because it cost huge and if advertising does not fulfill
the purpose then all the effort or budget gets wasted.
Functions of Advertising Media
1.) Inform
2.) Educate
3.) Socialize
4.) Persuasion
5.) Reminder
1.) Inform
This is the first function of advertising media. Whenever an advertiser
produces any product or service for the customer. No one is going to
consume it until no one knows that there is a new product available in the
market. So, here advertising media helps the advertiser to inform their
customer that there is a new product available in the market.
2.) Educate
Advertising media educate the customer about the variety of products and
services available in the market. The market does not include one variety
of the product ( head & shoulder has different flavor ) or product of one
brand only ( Shampoo of Different Brand ). There is always more than
one Brand or more than one variety of products available in the market.
So, the media educate the customer which product will fit him.
3.) Socialize
Social media is nowadays a very popular tool for making products or
services more popular. The use of the internet connects more and more
people on social media which helps the advertiser to make his product
more popular than ever before. Social media also helps advertise
indirectly because customers like to share information with there friends,
family, providing advice by sharing their experience over social media.
4.) Persuasion
Advertising media tries to influence customers that his company’s
services or products are the best than any other company. It enhances the
image of a company product or service in front of customers. It aims to
influence consumers to take buying action and switch brands, try a new
product, or remain loyal to a current brand.
5.) Reminder
Media reminds people about the requirement for a product or service by
providing the same or new features or any other benefits it will provide
when they purchase the product or services. A reminder might be used by
a company that has already invested in advertising in the initial stages and
they want to maintain its competitiveness or Customer.
Types of Advertising Media
1.) Print Media.
2.) Outdoor Media.
3.) Broadcast Media.
4.) Internet Media.
5.) Other Media.
Point to be noted.
The first four headings ( Print, Outdoor, Broadcast, Internet ) are
discussed earlier in Types of Advertising (Page Number - 25).
5.) Other Media
a.) Cinema or Entertainment app
b.) Video-film
c.) Exhibition & Trade Fair
a.) Cinema or Entertainment app
Customers like to spend their leisure time in the cinema or entertainment
app. These are the new evolution nowadays. Million of internet data
consumed by these yearly. These media has reached millions of customer
so it creates an effective advertisement and its advertising recall are four
times higher than ads placed on television.
b.) Video-film
Advertising costs a lot, the company requires a huge budget to advertise
their product or service. This type of media helps a large number of small
and medium-sized advertisers to advertise their products. It has the
advantages of sound, motion, visuality, and timelines.
It has two popular types.
Two Popular Types
a.) Documentary Advertising - In this type of advertising, the
advertiser focus on two points, one is his product second a
message for education purpose.
b.) Straight Advertising - They concentrate on the product
only.
Documentary Advertising
c.) Exhibition & Trade Fair
An exhibition is a place where different manufacture comes under one
roof. It is a huge gathering for the purpose of displaying, demonstrating,
and booking orders for the latest product and service. The exhibition is
normally organized by the trade association and chamber of commerce.
5 Ms of Advertising
Introduction
In developing an ad program marketing manager must always start by
identifying the target market and buyer. Then they can make the five
major decisions regarding developing an advertising program. These
Five-step in developing ad program are also known as the 5Ms of
advertising which are mission, money, message, media, and
Measurement.
5 Ms of Advertising
1.) Mission - Setting Ad Objectives
2.) Money - Establishing Ad Budget
3.) Message
4.) Media
5.) Measure
1.) Mission - Setting Ad Objectives
This refers to the purpose or objective behind advertising. The objectives
behind advertising are different in character. They include sales
promotions, brand loyalty, market goodwill, facing market competition,
making the product popular, and introducing a new product in the market.
The first advertiser has to choose what is the mission of his advertising
2.) Money - Establishing Ad Budget
This refers to the finance provided for advertising purposes. It means the
funds allocation made by the company for advertising. Money is a
limiting factor so the company has to think before advertising how much
money they are going to spend on advertising. Advertising is costly and
companies have to spend a lot on this purpose. Some advertising media
cost more like Television, newspaper, radio, etc.
3.) Message
The message is given through written words, pictures, slogan, video, and
voice. The message is for the information, guidance, and influencing the
prospective or existing buyers. Advertising with attractive and
meaningful message give a positive result. The services of creative
writers, artists, etc. are used for giving an attractive message to the
consumer.
Designing or developing the advertising message and positioning the
advertising is a creative and analytical task.
4.) Media
Some of the major advertising media that are more popular amongst
marketers are newspapers, television, radio, posters, internet, etc. Media
differ regarding cost, coverage, effectiveness, and so on. The selection of
media depends on the budget, products to be advertised, and
characteristics of prospective buyers, and so on. Wrong decisions on
advertising media may make advertising ineffective and money spent will
be wasted.
5.) Measure
Advertisement is costly but it generates revenue for the company. So,
advertising must be effective that it influences the existence or
prospective customer, which can be done by measuring the advertising. It
is the final phase. An advertiser will like to make an evaluation of
advertisements to judge the effectiveness of the advertisement. If an
advertisement is not effective or purposeful, it will be modified or
withdrawn.
Advertising Role in Marketing Mix
The marketing mix ( also known as the 4Ps ) is used by a business as a
tool to assist them in pursuing their objectives. The marketing mix
principles are controllable variables, which have to be carefully regulated
and must meet the need of the defined target group. It is the strategy used
to perform marketing effectively.
1.) Advertising and product
2.) Advertising and Price
3.) Advertising and Place
4.) Advertising and Promotion
1.) Advertising and product
Advertising plays a very crucial role in promoting the product of the
company. A product is the heart of any program. "without a good product
one has nothing. Advertising makes able the marketer to sell the product
and to satisfy the consumer.
Through advertising, marketer gives the information regarding........
a) Functional feature: By advertising, the marketer can inform about
the various features of the product.
b) Aesthetic design: By advertising consumers know about the shape,
size, design, color of the product.
c) Instruction for use: Marketer gives information about the correct
use of the product to increase its value.
d) Warranty: By advertising, the marketer tells about the warranty and
guarantee condition about the price.
e) Product Differentiation and Positioning: Through advertising,
marketers able to differentiate their product from the competitor and
create a good image in the mind of the consumer.
2.) Advertising and Price
Price is an important factor in buying decisions. Every one of us would
like to know the price of the product for comparison purposes before
finally deciding to buy. Advertising sometimes carries the price tag of the
product.
Advertising plays a very important role in determining the value of the
product. The factors are ............
a) Pricing Method: Advertising help the marketer in determining the
price of the product and communicating them to the consumer.
b) Term Offered: Advertising gives information regarding the term
which are offered by the company to the consumer. It consists of credit
period, interest charges, credit limit.
3.) Advertising and Place
It is concerned with transportation, warehousing, inventory,
management, channel management. However, with proper identification
of these segments, the right selection can be made. The most common
channel for consumer goods is Manufacture- wholesaler-Retailer- the
consumer.
Advertising gives the information regarding the following aspects of the
place.
1. Number and location of retail outlet
2. Inventory – extent and location
3. Distribution channel
4. Market coverage
4.) Advertising and Promotion
Advertising is used to make a large target audience aware of the
promotion, to communicate the key benefits, and to deliver a compelling
reason why the target audience members should take advantage of the
promotion.
Advertising plays a very crucial role in the promotion mix. It can be
understood by headings that are....
a) Advertising and Personal Selling:
Advertising is communication with many consumers of products and
services. Advertisers put the advertising message through mass media
like the press, magazines, and TV. Advertisers communicate with buyers
through the media. There is no face- to- face conversation.
b.) Advertising and Sale Promotion :
It makes the consumer take a favorable purchase decision by providing
one or other kind of direct inducement,e.g., discount, price-off, gift,
coupon, etc. It either informs or reminds about a product and service. It
builds up a company image or brand image. Advertising is more frequent
and repetitive than sales promotion.
c.) Advertising and Publicity:
Publicity is defined as demand for a product, service by farming
commercially meaningful news about it in a published medium, or
receiving favorable performance of it on radio, TV, or stage that is
non-paid for by the sponsor or advertiser. Marketers have high control
over advertising than they have over publicity. Publicity may be negative
or positive.
d.) Advertising and Public Relations:
The ultimate aim of public relations is to develop a favorable image in
the eyes of the public. It refers to a company’s communication and
relationships with various sections of the public- customers, suppliers,
shareholders, employees, governments, media, and society at large.
Advertising plays an important role to maintain public relations.
Meaning or Importance of Marketing Communication
Meaning of Marketing Communication
Marketing communication ( Marcoms ) is an important P ( also called
Promotion ). Marcoms is a message and media used to communicate with
the consumer. It involves sharing an idea, information, and concepts with
media by the sender to the receiver about the products and services. The
marketer who desires to promote the product delivers a message to a
receiver, who is the target market or customer. The message is received
by consumers and if the message is favorable for the customer, they
decide to purchase.
In other words, the different media either directly or indirectly that the
company chooses to exchange information about their goods and services
to the customers is termed as Marketing Communication.
In simple words, The sender can use whatever media or promotion
method he wants to use, just connect with the customer, without
communication, you cannot sell.
Importance of Marketing Communication
1.) Continuous Process
2.) Two or More Persons
3.) Two-Way Process
4.) Increasing Awareness
5.) Increase Knowledge
6.) Increase Sales
7.) Direct and Indirect Communication
8.) Use of Words and Symbols
1.) Continuous Process
Communication is a continuous or never-ending process. As the regular
circulation of blood is essential for the human body, similarly the
continuous circulation of information and ideas is essential for
organizational activity. An organization cannot exist without
communication. The product is old or new does not matter, both need
communication at regular intervals.
2.) Two or More Persons
For communication to be effective there must be at least two persons
because no single individual can have an exchange of ideas with himself.
A receiver is essential to receive one’s message. So, there must be at least
two persons- the sender of information and the receiver of information.
3.) Two-Way Process
Communication is a two-way process. It is not complete unless the
message has been correctly understood by the receiver of the message
and he does not provide any feedback to the sender. When the sender gets
the feedback, the marketing communication process completes.
4.) Increasing Awareness
If the company makes new features in existing products or produced any
new product, then he can aware their target customers by message. The
message will help the company to aware its customer that there is a new
product or service available in the market and they can buy it.
5.) Increase Knowledge
If the Product is new, or marketer wants to introduce it to there customers,
promotion is the key. The introduction of a new product will increase
awareness but it does not mean that they will buy it. So, in addition to the
awareness, they proved knowledge of products like uses, features,
benefits. How it differs from other products and why they need it.
6.) Increase Sales
Marketing communication is used to introduce the product or service
which will help the company to generate sales. Increasing awareness or
knowledge of the product will go fail if one does not get the consumer to
act. The promotion strategies should work together to inform, convince
the customer, and motivate the customer to buy the products or services.
7.) Direct and Indirect Communication
Communication can be direct as well as indirect. Direct communication
means face-to-face conversations with the receiver of the message. While
indirect communication is through other means of communication like
Print media, Outdoor media, Internet, etc.
8.) Use of Words and Symbols
Communication is mostly written or oral, but it can also be symbolic. For
example, the ringing of the bell in schools indicates recess or day off.
Facial gestures are also an important medium of communication. For
example, disapproval or anger of manager through eyes or facial
expression.
Process of Advertising/Marketing Communication
Advertising as Communication
Advertising is an important P ( also called Promotion ). Advertising is a
message and media used to communicate with the consumer. It involves
sharing an idea, information, and concepts with media by the sender to
the receiver about the products and services.
In other words, the different media either directly or indirectly that the
company chooses to exchange information about their goods and services
to the customers is termed as Advertising as Communication.
1.) Sender
The sender is called the source of the message or information. He is the
encoder who sends the message. The sender may be an individual, group,
or organization. There is a number of things that the sender has to think
before sending any message, who will be there target customer or
receiver, what will be the effective media that will fulfill his purpose of
the message.
2.) Encoding
It is the process of converting sender thoughts into communication. The
encoder uses a ‘medium’ to send the message — Print media, Internet,
outdoor media, etc. Encoding must be done as per the understanding level
of the receiver that he interprets the advertising message in the same
manner as the sender wants it. While encoder encoding the message one
thing he has to keep in mind that there is no noise interference between
the flow of communication.
3.) Message
The message is the idea, information, and concepts that the sender wants
to send to his receiver about his product and service. It must be assured
that the main purpose of the message is clear. It is the core of all the
communication process. All the other processes help to convey the
message. If there is no message there will be no sender or receiver.
4.) Media
Media is a means used to exchange the message. The sender must pick a
suitable medium for communicating the message. If the media selection
goes wrong then all the efforts go wasted.
The selection of a suitable medium of communication is
essential for making the message effective and correctly interpreted by
the receiver.
5.) Decoding
Decoding is the process in which the receiver of message turn
communication into thoughts. For example, you may realize you’re
hungry and suddenly you receive a message from online fast food.
Hungry, Get 50% off on your pizza order now. As you receive the
message, you decode this communication and turn it back into thoughts to
make meaning.
6.) Receiver
A recipient is a person for whom the message is made or it is the target
customer. The degree to which the receiver decodes or understands the
message is dependent upon various factors like knowledge of the
recipient, their responsiveness to the message, and the faith of encoder
and decoder.
7.) Noise
Noise is anything that distracts or diverts you from the message. It can be
caused by too many reasons. For example, a print advertisement has
multiple images or too much text. It will make it harder to recognize what
you are trying to communicate. Second, Noise can also be created when
your message is similar to your competitors. If your receiver can not
differentiate between products, they are not going to buy your product.
8.) Feedback
Feedback is the main part of the communication process as it allows the
sender to analyze the efficiency of the message. It assists the sender in
confirming the correct analysis of the message by the receiver. Feedback
may be verbal or non-verbal ( facial expressions, gestures, posture, etc. It
may take written form of memos, reports, etc.
AIDA Model
The AIDA model is a model used in marketing that defines the stages a
customer goes through in the process of purchasing a product. The AIDA
model is an abbreviation of attention, interest, desire, and action. It has
been studied and transformed multiple times over the years, both in
marketing and public relations.
History of AIDA Model
American businessman "E. St. Elmo Lewis" introduced the AIDA model
in 1898. Lewis can be considered a pioneer when it comes to the use of
scientific methods for designing advertising. He has shared his
knowledge in written form and seminars at US universities. His AIDA
model can be seen as an important legacy because the formula is still
used more than 100 years.
AIDA Stands for..
1.) Attention
2.) Interest
3.) Desire
4.) Take action
1.) Attention
The product must attract the consumer's attention. This is done via the
advertising materials. It is a type of “eyecatcher.”
To grab people’s attention, you have these weapons.
Photo Powerfull Graphic
Illustrations Solving problem
Personality Words
Discounts Video
Sound Unique Content
2.) Interest
This is one of the challenging stages in the AIDA model. Advertising will
get the attention of a mass of your target audience, but can your
advertising engage with them enough so that they will want to spend their
valuable time understanding your message in more detail?
3.) Desire
It is the seller’s task to convince the customer that they want to purchase
this product. In some situations, the advertisement or the product itself
creates the desire to purchase.
A good way of building the customer desire for your product and service
is to link features and benefits. The purpose of your product is to give a
specific benefit to the customer of your target market.
4.) Take action
Finally, be very clear about what action you want your readers to take.
As soon as the desire to buy is generated, this must be transferred into
action, that is, the purchase.
In the case of online shops, this would ultimately be the shopping cart
process, in which a customer is lead to a conversion
Example of AIDA Model
You gain attention by putting your interesting content over
Attention
Facebook that people would find interesting to read.
The reader reads all your content over Facebook and gets
Interest curious regarding your content.
The reader has been enjoying your content. They know that
Desire your wright books also and being to want your book.
The reader finally decides to buy the book and see the link of
Action an e-book on Facebook and take action.
Hierarchy of Effects Model
The Hierarchy of Effects Model was developed in 1961 by Robert J
Lavidge and Gary A Steiner. The concept is quite simple - the consumer
is initially unaware of the brand – after some time they gain some
awareness of the brand, then this awareness build into an understanding
of the brand (attitudes and beliefs), and then customer finally take action
and purchase the product.
Steps in The Hierarchy Of Effects Model
1.) Awareness
2.) Knowledge
3.) Liking
4.) Preference
5.) Conviction
6.) Purchase
1.) Awareness
The customer becomes aware of the product & service through
advertising. This is a challenging step, there is no guarantee that the
customer will be aware of the product, after they view the advertising.
Customers see many advertising each day but only remember a few of
them. Where the consumer has now understood the brand but still has a
very limited understanding of the brand.
2.) Knowledge
The customer starts to obtain knowledge about the product for example
through the internet, retail advisors, etc. In today's digital world this step
has become more powerful as consumers start to find product knowledge
at the click of a button. Consumers will soon move to competitor brands
if they do not get the information they want.
3.) Liking
This step is about assuring that the customer likes your product.
The word ‘liking’ should not be confused with an emotional attachment
with the product. In this case, liking refers to the consumer viewing some
positive benefits associated with the brand.
For Example, it is available, it looks like a good product, it’s a healthy
product, it fits with my budget, and so on.
4.) Preference
A person or thing that is liked more than another e.g. my preference is to
travel by train.
This occurs when the consumer recognizes the overall
product as a suitable option for a future purchase. At this stage,
advertisers want the consumer to disconnect from competitive products
and focus on their particular product.
5.) Conviction
This stage is about generating the customer's desire to purchase the
product. Advertisers may boost conviction by allowing consumers to test
or sample the product. Examples of this are requesting consumers to take
a test drive or offering consumers for a free sample of the product. This
encourages consumers that the purchase will be a safe one.
6.) Purchase
The final pause on the hierarchy of the model is the purchase. This stage
needs to be smooth and simple, otherwise, the customer will get irritated
and walk away without a purchase.
For example, a variety of payment options encourages purchase because
if they don't have one they can go with another. On the opposite side slow
website discourages purchases.
Innovation Adoption Model
The Innovation Adoption Model Process includes 5 phases. This model
shows the phases from which the customer goes to accept the innovation
in product and service. The customer has to cross these 5 stages to adapt
an innovative product.
Awareness, Interest, Evaluation, Trial, and Adopt.
1.) Awareness
Awareness is the phase in which the customer is made aware of the
product or service, that there is a new product available in the market. In
this stage, advertising has to highlight the feature and benefits of the new
product. It will help the customer to differentiate the product with an old
product or competitor product.
2.) Interest
Interest is the second stage of the customer where he finds the product
interesting. Now the awareness of new product spreads in the market.
Customers start getting more information about the product. If customers
looking for any feature, then is this product include that feature?
3.) Evaluate
The customer starts liking the product so he starts evaluating the product
more. IN this customer evaluate the product in depth. Customers take
analyses that are there any products available in the market with the same
feature or benefits. What will be the price of this product if I buy it?
4.) Trial
Consumer trials are an essential part of a new product launched in the
market. Product trials and samples allow consumers to try a product with
no risk before they consider purchasing it. If the product is of long-term
use then the trial will help the company to generate lead also, because
customers get faith in the product by using it.
5.) Adoption
Product adoption defines the process of the customer in which they are
ready to buy the product because they understand it’s value. This stage
needs to be smooth and simple, otherwise, the customer will get irritated
and walk away without a purchase.
For Example, a variety of payment options encourages purchase because
if they don't have one they can go with another. On the opposite side slow
website discourages purchases.
Information Processing Model
William McGuire developed IP Model which assumes that the
advertising audiences are information processors and problem-solving.
This model is like the other response hierarchy models that explain how a
customer go through six phases to take the final decision of purchase.
1.) Presentation
Presentation is the phase where customer are make aware about the
product, that there is a new product available in the market. In this stage,
advertising has to highlight the feature and benefits of the new product. It
will help the customer to differentiate the product with an old product or
competitor product.
2.) Attention
The product must attract the consumer's attention. This is done via the
advertising materials. It is a type of “eyecatcher.”
To grab people’s attention, you have these weapons.
Photo Powerfull Graphic
Illustrations Solving problem
Personality Words
Discounts Video
Sound Unique Content
3.) Comprehension
Customers evaluate the product in depth. Customers take analyses that
are there any products available in the market with the same feature or
benefits. What will be the price of this product if I buy it?
4.) Yielding
This step is about assuring that the customer likes your product.
The word ‘liking’ should not be confused with an emotional attachment
with the product. In this case, liking refers to the consumer viewing some
positive benefits associated with the brand. For Example, it is available, it
looks like a good product, it’s a healthy product, it fits with my budget,
and so on.
5.) Retention
Retention refer to the ability of the consumer to accept and store in
memory the relevant information about the product or service. Retention
of information is important because most advertising is designed to
motivate the customer. It does not happen immediately but used later time
to make the purchase decision.
6.) Behavior
Behavior is the final phase of the Information Processing Model. This
stage includes the purchase of products and services. Purchase can be
offline or online both. This stage describes that the purpose of advertising
gets fulfill and it convinces the customer to purchase the product.
Integrated Marketing Communication
Integrated Marketing Communications ensures that all the promotional
tools are carefully linked together so that they work together in harmony.
Promotional tools of communications like mobile marketing, newspapers,
magazines, radio, television, billboards, posters, internet, etc.
1. IMC maximizes impact on the consumer mind which results in
maximum profit at minimum cost.
2. The company has to create an advertisement message once and then
proceed the same across several marketing channels or the company
can create one message and cover that message in all the media.
Example of Integrated Marketing Communications
Domino's brought new suit to help the customer to order from their
devices and platforms they already use every day instead of making the
customer come to there outlet. This new suite of ordering named
Domino's AnyWare and includes ordering with a tweet, a text, Ford Sync,
Smart TV's, and smartwatches.
Importance of Integrated Marketing Communication
1.) Improved Results.
2.) Improved Brand Image.
3.) Increased Employees Morale.
4.) Improved Efficiency.
5.) Customer Preferences.
6.) Reduced Confusion.
1.) Improved Results
Traditional marketing, set up different campaigns for separate marketing
platforms. They have to spend on press releases, advertising, direct
marketing, and sales promotions. Each of these marketing teams works
differently, and they never meet while doing their duties.
However, an integrated approach ensures that all these platforms come
together to form one effective and beautiful marketing mechanism. This
method creates better and clear communication with your target audience.
2.) Improved Brand Image
In IMC it is not only the message of your product or service you are
delivering to your customers but your message also communicates about
your company brand. This will help the company to make its brand image.
When you are delivering your message, ensure that your content, quality,
logos, voice, etc. are effective and understandable by the customers. It
will ensure that you maximize your market impact, which will make a
brand image.
3.) Increased Employees Morale
IMC is great when it builds trust in your company. But in addition to this,
it also helps the company internally. When a company has to run any
campaign all the marketing has to work together to make the campaign
successful.
When teams work together, it creates mutual understanding among them
and they are capable of taking any campaign challenge. In turn, they
achieve great results, which will act as an excellent morale booster for
your employees.
4.) Improved Efficiency
If the company making continuous messages then it will not only ensure
that you have a stronger market base but also make you more productive
and save money. The company has to create an advertisement message
once and then proceed the same across several marketing channels.
The company can also choose to work with a single marketing agency
that specializes in rendering an integrated marketing approach.
5.) Customer Preferences
An integrated campaign helps you provide the message to customers with
a platform they like. Customers like social media, television, mail, etc.
Consumers can specify by which platform they want to receive product
information. Integration ensures that customers receive the same
information on all platforms. You can also fulfill the needs of customers
who search the Internet for product information by integrating your
website design.
6.) Reduced Confusion
Integrated marketing also helps the consumer to reduce its confusion
while purchasing any product, as the message is delivered over different
communication platforms that increase faith and interest over the product.
IMC helps the customers to get all information about special offers and
new products. Consumers can then purchase the products as quickly as
possible.
Components of Integrated Marketing Communication
1.) Advertising.
2.) Personal Selling.
3.) Public Relation.
4.) Publicity.
5.) Sales Promotion.
6.) Word of Mouth.
1.) Advertising
Advertising means to communication with the users of a product or
service.
Advertising is the means of informing and influencing the customer by
different media like print, outdoor, broadcast, internet, etc media.
Advertising influence the customer to buy a product or service through
visual ( seen ), oral, or written messages.
2.) Personal Selling
Personal selling is where companies use people to sell the product, it
includes face to face interaction with the customer.
The sellers sell the product through their skills of attitude, appearance,
and specialist product knowledge. In personal selling one person who is
the salesman tries to convince and encourage the customer to buy, or at
least trial the product.
3.) Public Relation
PR is a strategic communication process that creates mutually
relationships between organizations and their publics. Public Relations
professionals help a company to create a positive reputation with the
public through various communication media. They also help the
company to defend its reputation during a crisis or tough time. Public
means investors, government, community, customer, market, etc.
4.) Publicity
It is said that “Advertising is what you pay for; publicity is what you pray
for.”
Publicity is also a source of mass communication for the company.
Publicity is not paid form by the organization. It involves getting a
favorable response of buyers by placing commercially significant news in
mass media, or sometimes mass media place news about the company
that can be a good or bad one. Publicity comes from reporters and
journalists
5.) Sales Promotion
Sales promotion means attracting a potential customer to buy the product.
Sales promotion is designed to give the product a sales boost in the short
term. Some sales promotions are aimed to attract new consumers while
others aimed to boost the sale or both.
There are some points to be considered while doing sales promotion.
1.) Will the sales boost justify the investment?
2.) Promotion of premium products can lose the brand value in the long
term?
3.) The promotion will attract new customers to the brand or it attracts
those who always looking for offers.
6.) Word of Mouth
Word-of-mouth marketing (WOM marketing) is when a happy
consumer's interest in a company's product or service and he refers the
same with there known or unknown people. WOM is a free advertising
source for the company. The customer refers to the product when it fits as
per his desire or it goes beyond what they expected. WOM marketing
includes viral, blog, emotional, and social media marketing.
Benefits of Integrated Marketing Communication
1.) Brand Equity
2.) Brand Reinforcement
3.) Cost effective
4.) Provide Information
5.) Competitive Advantage
6.) Increase Profit
1.) Brand Equity
IMC important goal is to make brand equity on the national or
international level. Brand equity makes the company more desirable to
consumers and businesses. Brand equity can be achieved with effective
advertising and quality products. A high level of brand equity helps the
company to move consumers toward a purchase decision.
2.) Brand Reinforcement
Brand reinforcement is not an easy task because there are multiple brands
available in the market which are communicating with customers daily.
Everyday customer is hit by a hundred Advertisement if not a thousand.
So, IMC place an important role for brand reinforcement because it uses
multiple promotion mix.
3.) Cost effective
We as customers want to save money by getting a quality product at less
price. The company also wants to save its cash by communicating
effective advertising with less budget. IMC helps the company to make
effective communication with less cost because companies do not have to
pay for different platforms. They integrate all their promotional tools.
4.) Provide Information
IMC used to provide information to the prospective customer. This type
of information includes more detailed specifications or descriptions of the
product. It includes benefits of the product, its uses, offer associate with it.
This information will make the purchase process more easy and quick for
the customer. The customer gets all the required information they need to
make the buying decision.
5.) Competitive Advantage
The integrated marketing approach makes brands more recognizable
because the company uses the same message across all of your
advertising channels. So, company brands also enjoy a boost in consumer
awareness that gives the company a competitive advantage. When it's
time to make a purchase, consumers will recognize your brand easily.
This puts your brand in a favorable position as compared to your
competitor.
6.) Increase Profit
All the benefits we have studied in IMC clear that by this approach
company profits will also increase. This approach will help the company
to make brand equity, help the customer to recognize the brand, the
company has not to make extra expenses on other platforms.
These benefits will helps the company to increase its profits.
Setting Advertising Objective
Advertising objectives are the goal or specific tasks that have to be
completed within a specific time frame to achieve the desired result.
Advertising objectives are those center points towards which every
activity of the company takes place. The setting objective is the starting
point, without objective, it is difficult to manage the activity. Well
defined objectives help the company to compare the actual performance
with set standards.
Objectives can be…
1.) Brand awareness among your target customer
2.) Re-market of product or brand
3.) Increase your Customer base
4.) Improve your sales volume
5.) Increase your profit
6.) Create a need among users
7.) Promotion of products and services
8.) Launch of new products or services
Types or Process of advertising objective.
1.) Informative advertising.
2.) Persuasive advertising.
3.) Reminder advertising.
1.) Informative advertising
It is heavily used in the pioneering or starting stage of the product. The
primary aim of this advertising is to introduce the product or make the
customer aware that there is a new product available in the market.
2.) Persuasive advertising
It is used when the product is in the competitive stage. When any product
enters this stage that means customers are aware of your product and they
are testing it. At this stage, the company has to create a strong image of
its product. It will help the company to cutthroat the competition and
create demand for its product.
3.) Reminder advertising
When the product enters into the maturity stage, now next work is to
remind the product. Customers are fully aware of the product they are not
testing it but purchasing it and start using it. Customers have created a
positive attitude about the product and they become habitual.
For example - Coke, Pepsi is not showing ads to create awareness
because people are aware of the product and using the brand. These are
reminding the brand for making the brand top of mind.
DAGMAR Model
DAGMAR is an abbreviation for Defining Advertising Goals for
Measured Advertising Results. This Model was developed by Russell
Colley in 1961 for setting advertising objectives and measuring
advertising results.
According to this model, the overall objective of advertising includes
communication, create awareness, give information, develop an attitude
about the product, and influence action.
The main objective of this model is to communicate the desired message
to the target audience. This communication task involves 4 stages
1.) Awareness
2.) Comprehension
3.) Conviction
4.) Action
1.) Awareness
Awareness of the product or service is required before the purchase. The
primary purpose of advertising is to improve consumer awareness about
the product.
Once the consumer is made aware of the product, it should not be
forsaken. The consumer tends to get puzzled by other competing
advertising if they get ignored.
2.) Comprehension
Awareness is not sufficient to influence the customer for the purchase.
Knowledge and the right understanding of the product and the company
are important. This can be done by providing information about the
company and product.
Example: If you want to convince people to buy a new toothpaste brand,
it may be required to compare the product with other toothpaste brands,
otherwise provide additional benefits.
3.) Conviction
Conviction means where the customer judges different products to buy
the product he like most. At this stage, a sense of conviction or faith is
established, and by creating interests and preferences, customers are
convinced that a certain product should be tried at the next purchase.
The aim is to create a positive mentality to buy a product.
4.) Action
This is the last step which includes the final purchase of the product or
service by the customer. As soon as the desire to buy is generated, this
must be transferred into action, that is, the purchase.
In the case of online purchase, this would ultimately be the shopping
cart process, in which a customer is lead to a conversion.
EXAMPLE OF DAGMAR APPROACH
1.) In the AWARENESS stage, Company ABC spreads awareness
among the consumers about its new product ( Electric Car ) launched in
the market.
2.) In the COMPREHENSION stage, Company ABC represents its
consumers the features of the new product and reminds the consumers of
the company ABC’s logo and brand name.
3.) In the CONVICTION stage, Company ABC connects the consumer
emotionally to the new product so that the consumer establishes an
emotional preference for the company ABC’s brand.
4.) In the ACTION stage, consumers purchase the product and Company
ABC makes sales.
Advantages of DAGMAR Approach
1.) Target Audience
2.) Precise and Clear
3.) Measurable
4.) Specified Timeframe
5.) Written Goal
1.) Target Audience
DAGMAR requires the target audience is well defined. A group of
potential customers, who have the highest likelihood of purchasing the
product, is the target market. Identifying the target market includes the
process of demographic, geographic, and psychological segmentation.
2.) Precise and Clear
The objective of communication should be a precise and clear statement
of whatever message the advertiser wants to communicate to the target
audience.
The message must include all the details and benefits of Product.
3.) Measurable
Whenever the company launches any new product they set goals and
objectives to measure the result. Measurement is an important factor in
the advertising process. Measurement assure that the company achieves
its desire goal or objective. If there is any difference between sets goal or
result then the company has to take proper precautions.
4.) Specified Timeframe
A good and sound objective has a specified time frame, during which the
objective has to be achieved by the company. If a company going to
launch any product then the objective regarding product have to be
achieved within the timeframe.
Setting a particular timeframe confirms an effective evaluation of results.
5.) Written Goal
The goal should be mention by the company. When the goals are written,
basic differences, and defects are exposed, it becomes ultimately easy to
determine whether the goal contains the important aspects of the
DAGMAR approach.
Importance of DAGMAR Approach
1. Growth in market share.
2. Improve sales turnover.
3. Perform selling function.
4. Advertise a special reason to buy.
5. Remind people to buy.
6. Create awareness about the product and brand.
7. Create favourable emotional towards the product
8. Correct false impressions, wrong information
Ethics in Advertising
Meaning of Advertising Ethics
The blast of new media, technologies, and opportunities changing the
business activity rapidly. It creates a need for ethics in advertising so that
customers do not get exploited.
Advertising ethics means a set of moral principles that a company used in
its daily dealings with the world at large, or with a single customer. Many
businesses have gained a good reputation just by ethical in business.
To some people, businesses are for making money. Making money is
not wrong in itself, but ethics must be followed for customer welfare.
Thus ethics in advertising means a set of well-defined principles
that make communication between the seller and the buyer.
An ethical advertisement is that which doesn’t lie, doesn’t make
fake or false claims. It includes honest, decent, and truthful
advertising.
Principles of Ethics in Advertising
1.) Honesty.
2.) Social Responsibility.
3.) Exploitation of Goodwill.
4.) Health.
5.) Safety of Customer Information.
6.) Comparisons.
7.) Children Protection.
8.) Unsolicited Product.
1.) Honesty
The advertisement should not contain any activity which offends the rules
and regulations made by the government. The advertisement should be
framed in such a way that it make, not break the trust of the consumer. As
it said that honesty is the best policy. The company should be honest that
all the information given in the advertisement is correct.
2.) Social Responsibility
The advertisement should not include any form of discrimination based
on national origin, religion, color, age, sex. etc. We all are consumers and
all have equal importance in society. The company has to take care that
his advertisement should not hurt anyone's sentiments.
Example - Some Beauty product ads show that beauty is everything you
have no value if there is no charm on your face. If you are not beautiful,
you are not accepted.
3.) Exploitation of Goodwill
The advertisement should not make use of the name, logo, and trademark
of other companies. Some companies use another companies name or
logo to grow fast in the market. Companies with goodwill have a strong
customer base, companies that use another name or logo do not have to
make an effort to create their customer base.
4.) Health
Advertisement does not include those products that create a problem for
customer health. It is the company's duty that if there is any product that
can create risk for customer health, then the company has to aware of the
customer about the same.
Example - Insecticide killing spray also dangerous for human, so proper
awareness is also provided that, how to use, how far you have to keep it
while doing spray
5.) Safety of Customer Information
When you purchase any product from a brand they collect your data to
use it for future use like making aware of new products, new offers
available, the opening of a new outlet, events, etc.
In the same case when you make an online purchase or visit any
website they ask your personal information for sign up purposes. It's the
Company duty that when they store your data it should not be shared with
anyone.
6.) Comparisons
Advertisements that are making a comparison of the product should
comply with the principles of fair competition. Product comparison
allows the customers to differentiate the two products and chooses the
one which they like.
Example - If you are comparing your mobile with other brands and says
that your product will provide Quick charging and good battery backup if
it goes fail then it will be unethical.
7.) Children Protection
The company has to take proper care that advertising does not mislead
children as to the true size, value, nature, durability, features, etc.
Advertisement of the product should not contain any activity that has the
effect of harming children, affect them mentally, morally, etc. It does not
include any activity that encourages children to do things that can hurt.
8.) Unsolicited Product
Unsolicited goods are those goods that are sent to someone without being
asked to the receiver. Sending Unsolicited goods is an offense.
Advertising should not be used to support the unethical activity. If any
customer gives his consent that he likes the product, no company can
forcefully send the product to its doorstep and can ask for the money.
Un-Ethics or Ethical issue in Advertising
Unethical advertising means when a company misleading the customer or
uses false claims so that customers buy their products. The company uses
advertising there own advantage. Some company crosses their line to sell
there product and earn profit by misleading the customers.
There are many unethical practices done by the company to beat the
competition and gain a large market share for selling more and more
product or to increase profits.
Types of Unethical Advertising
A.) Puffery Advertising.
B.) Surrogate advertising.
C.) Stereotyping Advertising.
D.) Subliminal Advertising.
E.) Advertising to Children.
A.) Meaning of Puffery Advertising
Puffs up - The product to appear like more than it is.
Advertising puffery is defined as advertising or promotional
activity that makes broadly exaggerated ( representation of something as
more extreme or dramatic than it is ) or boastful ( excessive self-pride )
statements about a product or service that are subjective (a matter of
opinion), rather than objective (something measurable).
Puffery does not create any warranty or guarantee for the
consumer.
Example of Puffery Advertising
The advertisement for Starbucks coffee displays puffery advertising. The
puffery shows through exaggerating the product with a claim that can’t be
proven true or false. The advertisement is technically legal but can be
considered dishonest to those who don’t understand puffery.
This claim is that Starbucks is the best coffee and that makes it the
best coffee for you. This claim is dishonest because you can’t measure
the quality of coffee to be the best and it is a matter of opinion.
B.) Surrogate advertising.
Surrogate is a form of advertising which is used to
promote banned products, like cigarettes and alcohol, in the cover of
another product.
This type of advertising uses a product that is ethical in its category,
like club soda, mineral water, golf accessories, music CDs, or playing
cards, and take benefit indirectly by advertising the brand name which is
of alcohol products or other banned products. This type of advertising
helps the company to hammer the brand name into the heads of
consumers.
Surrogate Advertising In INDIA
In India, Surrogate Ads are done in tobacco and liquor products. There is
a ban on direct or indirect ads for tobacco and liquor products.
Therefore to promote its products, the company takes the option of
surrogate ads.
The banned product is not advertised directly to consumers but they
advertised in the name of another product, under the same brand name so
people start connecting it with its main product.
Kingfisher is the best example of it, they had promoted everything from
bottled water to soda under the umbrella of the brand name 'Kingfisher.
The Cable Television Networks ACT,1995
Rule 7(2)(viii) of the Cable Television Rules prohibits the direct or
indirect promotion of "cigarettes, tobacco products, wine, alcohol, liquor,
etc. However, the proviso to this rule also runs as:
"Provided that a product that uses a brand name or logo, which is also
used for cigarettes, tobacco products, wine, alcohol, liquor may be
advertised on cable services but the following condition must be fulfilled
Conditions regarding prohibited Product
1.) The story or visual of advertisement, advertise the actual product
and not the prohibited products in any form or manner;
2.) The advertisement does not contain any direct or indirect reference
to prohibited products;
3.) The advertisement does not contain any phrases promoting
prohibited products;
4.) The advertisement must not use particular colors and layout or
presentations connected with prohibited products;
5.) The advertisement must not use situations for the promotion of
prohibited products when advertising other products.
3.) Example of Surrogate Advertising
4.) Images of Surrogate Advertising
5.) Advantages of Surrogate Advertising
1.) It helps the company to generate sales for banned products.
2.) It keeps on reminding consumers about the banned products
indirectly.
3.) If nobody can advertise, then the threat of competition from new
players or new launches by competitors is minimized.
6.) Disadvantages of Surrogate Advertising
1.) It beats the purpose of ban on advertisement
2.) Advertising of harmful products.
3.) It is harming the society a lot because children cannot distinguish
between the banned products and the advertised product
C.) Stereotyping Advertising.
Meaning of stereotyping
A stereotyping is a fixed image, set of characteristics, qualities, a
personality that a lot of people have about someone or something.
It can be positive or negative.
Stereotyping also is known as a label, pattern, categorize.
Stereotyping in Advertising
Stereotypes include things or people that follow a common pattern and
category, which is common in advertising. People are complex. We
cannot define them by a single role. In advertising, labels are used to an
individual or group of people to provide them a role. Gender stereotypes
are common in advertising. Pay attention to cleaning activity and you see
a female playing the lead role in advertisements. Such types of ads do not
show the right picture. The company shows these types of ads to attract
the audience.
Types of Stereotype Advertising
1.) Children
2.) Women
3.) Men and Masculinity
4.) Skin Color
1.) Children
Children are shown as cute and happy in advertising. Ads are shown in
such a way that children force or request to there parents to buy the
product. Sometimes the ads itself create a demand for their parent, that
they require this product for their children. Products are positioned to
solve a problem for the parents. For example, a diaper that absorbs the
urine. The perfect family with a happy child is a common stereotype used
to target the middle class.
2.) Women.
The campaign for gender equality is strong, and women have ignored for
a long in advertising campaigns. Some of the advertisements shown
women as housewives and buying beauty products.
The role of women in advertising is changing nowadays, they started
buying products, doing jobs, driving cars, doing their own business, etc.
3.) Men and Masculinity.
Masculinity means a set of attributes, behaviors, and roles associated with
boys and men. Men acquire major area in advertising from old time, they
are shown at the top level of the company, driving a vehicle, buying
expensive gifts, head of the family, gym guy, sportsperson, etc.
4.) Skin Color.
Color is discrimination common in all over the world in which persons
are treated differently based upon skin color, which is white or black.
From the birth of the child, we start liking them by color. Nelson
Mandela’s name comes to our minds when we talk about color
discrimination.
Color plays an important role, especially in a girl’s life. So, all the
beauty products show that they will turn you from black to white.
D.) Subliminal Advertising.
Advertising that uses images, sounds, and content that the conscious mind
is not aware of, in order to influence people and make them attracted to a
product for purchasing. Subliminal advertising is manipulative because it
acts on us without our knowledge or consent. Such advertisements
sometimes just flash a product name on the screen. It can be positive or
negative.
Example - Want energy drink XYZ.
E.) Advertising to Children
Children are shown as cute and happy in advertising. Ads are shown in
such a way that children force or request to there parents to buy the
product. Sometimes the ads itself create a demand for their parent, that
they require this product for their children. Products are positioned to
solve a problem for the parents.
For example - a diaper that absorbs the urine. The perfect family with a
happy child is a common stereotype used to target the middle class.
Aspects of Advertising
Advertisements are created to help the company to sell their product and
services. It means the ultimate goal of advertising is selling and
increasing the customer base. However, some companies take
unnecessary advantage of it and advertise unethically.
When companies are violated, the government takes corrective measures
that the advertisement is offensive, irresponsible, or unfair. These
government bodies provide direction to the company or advertising
agency that how the company will execute advertisement. It tells the
company how to be ethical, socially responsible while communicating
advertisements to its customers.
Types of Aspects of Advertising
A. Social Advertising
B. Economics Advertising
C. Legal Advertising
A. Social Advertising
Advertising represents social life as it updates us daily. It is a part of our
life because we breathe ads like air. It sends us the latest information
about new products. It is like a friend who guides us to purchase the best
product. Advertisement is blamed for manipulating customer to buy
things which they do not require.
Advertising should be used to provide information like price, features,
quality, uses, etc. It does not be used for playing with customer emotions.
Positive Aspects of Social Advertising
1.) Informed Society.
2.) Health Awareness.
3.) Prevent form diseases.
4.) Environmental protection.
5.) Social changes.
1.) Informed Society
Advertisements, help the society to get informed about various products,
their uses, safe handling of dangerous goods, effective use of the product,
price or quality difference between the product, etc. But still our society
far from information about the products. There are some companies
which moreover focus on selling products.
2.) Health Awareness
The advertisements on health drinks, hygiene food, pollution control
product, and their installation, etc., make the people aware of health and
hygiene. It helps society to protect themself from unnecessary health
issues and live healthy and hygiene.
3.) Prevent form diseases
There are so many diseases in the society, some of them spread like fire,
some of them worked slowly, some spread infection among others.
Advertising helps to know all about these diseases and make us aware
that how we can save us from the disease.
The best example of it is CORONA ( COVID -19 ) that affects millions
of people.
4.) Environmental protection
Environmental protection is the need of time. The attack on nature by
cutting more and more trees, letting off industrial waste into the open,
growing urbanization, etc., are brought the environment into a dangerous
situation. Advertising makes people aware of the need for environmental
protection
For Example- Launching a campaign against the use and burning of
plastics, Save water save the planet, make the world green again.
5.) Social changes
Social changes that are changing the lifestyle, way of thinking, like
accepting women as equals, women empowerment, up-gradation of
traveling vehicles, new and better technologies for education, developing
public opinion against child labor, girl education, keep surrounding clean,
etc. These all the changes come through advertisements only.
Negative Aspects of Social Advertising
1.) Deceptive Advertising
2.) Harmful Effects
3.) Advertising to Children
4.) Create Confusion
5.) Forceful Selling
1.) Deceptive Advertising
Advertising wins the confidence of the consumer by showing their ads
effectively or unethically. Deceptive advertising indicates that the
advertisement is not true there are some misrepresentations, fraudulent
presentation of product, misleading interpretations shown in the
advertising.
2.) Harmful Effects
Advertising has a harmful effect on society. Nudity, bad habits,
stereotype culture, surrogate advertising, etc. affect on society badly.
Many people have criticized the advertising that affects social or cultural
traditions.
3.) Advertising to Children
Children are shown as cute and happy in advertising. Ads are shown in
such a way that children force to there parents to buy the product.
Sometimes parents require the product for their children. For example, a
diaper that absorbs the urine. The perfect family with a happy child is
used to target the middle class.
4.) Create Confusion
Advertising creates confusion in the minds of the customer while taking
any decision of product. Multiple and repetitive advertising irritates
people. If new and new products are launched month by month that is
costly. It creates confusion that which product will fit as per the taste
which will cost less and provide better quality.
5.) Forceful Selling
Advertising play with the emotions of the customers. The company
exploits the sentiments and desires of the customers. Sometimes they
motivate us that this product will boost your body strength, mind abilities,
etc. sometimes advertising emotional attachment with the product. Thus
customers get attracted to the product.
B. Economics Advertising
It helps the consumer by providing knowledge about a variety of products
and services so the customer chooses the right product. Advertising also
played an important role in the development of rural and urban areas.
Advertising helps to increase sales that will result in the consumption of
goods and the flow of money. This process will improve the growth of
the economy.
Positive Aspects of Economic Advertising
1.) Increase GDP
2.) Competition in advertising
3.) Standard of living
4.) Consumer Welfare
1.) Increase GDP
Gross domestic product ( GDP ) is the total of all the goods and services
produced in a country over the period of time. However, it is difficult to
measure the GDP because there are some unofficial transaction happens
in the economy which is not reported to the government. Advertising
helps to boost the production of more goods and services that increase
GDP.
2.) Competition in advertising
Competitive advertising is an effort by one or more companies to create a
difference between its product and the similar product offered by its
competitors. Competition start where the company has substitute products.
Competition creates an environment where every company makes an
effort to provide a better quality product at a low price to its customers.
3.) Standard of living
The Standard of living refers to the level of wealth, comfort, goods, and
necessities available to an individual, group, nation, or to a certain
geographic area. The Standard of living is used to compare the difference
between two geographic areas. Advertising helps the economy to achieve
wealth levels, comfort, goods, and necessities that increase the standard
of living of people.
4.) Consumer Welfare
Consumer welfare refers to the individual benefits received from the
consumption of goods and services. The company focuses on Consumer
welfare by delivering quality goods with a long life duration of products.
Consumer welfare means the welfare of the economy.
Negative Aspects of Economic Advertising
1.) Advertising Focus on Customer
2.) Advertising Multiplies the needs
3.) Increase Product Cost
4.) Restricts Entry of New Units
1.) Advertising Focus on Customer
Advertising is more over-focus on selling the products and services to
target customers. The company wants to sell its product some of them
don't believe to provide quality goods. They sell their products by
manipulating the customer.
2.) Advertising Multiplies the needs
The economy is too big there are millions of products available in the
market. They all are focus on making you addicted to the product. Some
companies produce the different flavor of one product, some companies
provide a product that gives you comfort zone, some launch their product
with the minor specification.
3.) Increase Product Cost
Advertising is not so easy companies have to spend crore of rupees to
advertise its product. All the cost of advertising is not personally bear by
the company. The burden of advertising coast is collected from the
customer indirectly. Companies distribute their advertising cost over the
product and service they are providing to their customers.
4.) Restricts Entry of New Units
As we discuss earlier that companies require huge funds to advertise their
products. New companies do not have sufficient funds to advertise their
products, so it creates trouble for them to take their place in the market.
Also, existing companies have their brand value and new companies
cannot compete with popular brands.
C. Legal Advertising
Advertising has many unethical activities - social, economic, and moral.
It misleads the people by believing them what is not true. Today
advertising company's face several legal restrictions. The government has
taken the proper action to pass laws to regulate advertising and protect
consumer interest.
Advertising is regulated or monitored by several govt bodies
such as the Advertising Standards Council of India ( ASCI ) and the
Advertising Agencies Association of India ( AAAI ). In 1914, the Federal
Trade Commission Act ( FTC ) come into existence to control deceptive
advertising. FTC Act provides guidelines for ethical and unlawful
advertising.
Need to Regulate Advertising
1.) Morality or Taste.
2.) Untruthful Advertising.
3.) Harmful Effects.
4.) Restricts Entry of New Units.
1.) Morality or Taste
Morality in simple words is the rules and set standards that define what is
wrong or what is right. It makes the difference between a good or bad
ones. Many people criticized advertising that it is often in bad taste. It
affects culture and social traditions. Government bodies monitor the
advertising that it should not harm the customers morality or taste.
2.) Untruthful Advertising
It is true that consumers get attracted to the products and services which
are of good quality but available at a cheaper price. It saves customers
money and provides them extra or the same feature as compared to
substitute products. These ads are truth from the customer side as they
believe that the product is real but untruthful from the advertiser side
because they are misleading the customers.
3.) Harmful Effects
Advertising has a harmful effect on society. Nudity, bad habits,
stereotype culture, surrogate advertising, etc. affect on society badly.
Many people have criticized the advertising that affects social or cultural
traditions. The government prohibits such types of advertising.
4.) Restricts Entry of New Units
Companies require huge funds to advertise their products, also existing
companies have their brand value. New companies lack funds to advertise
their products, so it creates trouble for them to take their place in the
market. The government takes care that the existing company does not
exploit new companies.
Rules and Regulation Controlling Advertising
a.) Indian Penal Code ( IPC )
b.) Drugs and Cosmetics Act
c.) Prize Competition Act
d.) Indian Copyright Act
e.) Trademarks Act
f.) Consumer Protection Act
Model of effective Advertising or How Advertising Work
1.) Perception
2.) Emotional/Affective
3.) Cognition
4.) Association
5.) Persuasion
6.) Behavior
Objective Communication Consumer Drivers
Response
Perception See/Hear Attention, Interest, Awareness,
Emotion Feel Want/desire, Feelings, Liking.
Cognition Understand Need, Differentiation, Recall.
Association Connect Conditioned learning, Transformation
Persuasion Believe Motivation, Influence, Involvement, Believ
-ability, Intention, Loyalty
Behavior Act Trial, Buying, Contacting, Referral, Preven
tion/Avoidance
1.) Perception
It is defined as the process through which the information from the
outside environment is received, organized, and interpreted to make it
meaningful.
Consumers have different perceptions regarding one product they pay
attention to the products they like. Advertisers have to attain their
attention by creating a creative message.
2.) Emotional/Affective
This phase is all about creating wants, desires, and liking. If you know
your customer well, about their wants and linking, it is a great advantage
for the company. The company's task is to take a step further to generate
a strong emotional connection of your product or service with the
customer.
3.) Cognition
How consumers respond to information, learn, and understand something.
It is used by the customer who wants to learn everything about a product
before they buy it. A cognitive stage explains to the customer that how a
product works and what it can do for them.
Different product of one Category
Different Flavor of One Product
4.) Association
The process of implants an idea in a consumer’s mind. It helps to create a
connection between a brand and characteristics that express the brand’s
image, identity, loyalty, and personality. The brand stands for a certain
quality. A bond or relationship is created based on these qualities.
5.) Persuasion
In this process, the advertiser influence the customer to change their
attitude. Advertising attempts to persuade prospective buyers to buy the
products. Persuasion is the intention to influence or motivate the receiver
of the message to believe or to do something. People will only take action
when they believe in the message of the product.
6.) Behavior
Advertising effectiveness is measured when customers trying or buying
the products. The trial is important because it lets a customer use the
product without purchasing. If the customer gets satisfied with the trail,
they purchase the product. The purchasing process should be easy and
hassle-free.
Feeling and Emotion in Advertising
Advertising that makes people share and buy the product usually
happen because of emotional attachment with the brand. It is not a
surprising factor that customers relay on emotions more than
information. Customers get more in-fluent when they see advertising of
an emotionally attached brand. It helps them to make quick decisions
about the purchase of the product.
Factor Affecting Feeling & Emotions
1.) Personality
2.) Culture
3.) Believability
4.) Empathy
1.) Personality
Personality, refers to individual differences in patterns of the way of
thinking, feeling, and behaving. Personality includes moods, attitudes,
and opinions and is most clearly expressed in interactions with other
people. The mixture of qualities in a person that makes that person
different from others.
2.) Culture
Culture includes characteristics of a particular group of people, including
language, religion, social habits, music, and arts.
Culture contains what we eat, how we eat, what we wear, how we
wear it, our language, way of marriage, music, what right or wrong for us,
how we sit at the table, how we welcome visitors, etc.
3.) Believability
Believability means to have confidence in the truth, the existence, or the
reliability of something, sometime with or sometimes without absolute
proof that something is right or wrong. Believability increases emotional
response. If the customer has believed, then he purchases the product or
shares their experience.
4.) Empathy
Empathy means to emotionally understand what other people feel, see
things from their point of view, and imagine yourself in their place. It
creates a link between us and others because it shows how we as
individuals understand what others are experiencing as if we feel the
same. If empathy is higher and understanding of other situations is more
then the emotional response is also high.
Advantages of Emotions in Advertising
1.) It Inspires Action
2.) Generates Interest
3.) Easy to Recall
4.) It Makes your Products memorable
5.) It makes your product shareable
Disadvantages of Emotions in Advertising
1.) Time Consuming
2.) Customer miss center of the message
3.) Play with customer emotions
4.) Misleading Customers
Advertising Research
Advertising research is a detailed and systematic gathering, recording,
and analysis of data to improve the efficiency of advertising. Advertising
research also decides the success of an advertising campaign to know
how customers respond to particular advertising.
The purpose of advertising research is to establish a brand image,
create Awareness, Knowing the consumer's attitude, develop creative ads,
effective ads to influence consumers, improve brand image, etc.
Scope of Advertising Research
1.) Increases awareness
2.) Analyzes changing market
3.) Advertising Communication
4.) Provide Feedback
5.) Provide Results
1.) Increases awareness
Advertising's purpose is to make the customer aware of the company and
its products. Advertising research on the opposite side is to make the
company aware of its target market and target customer, which helps in
building effective advertising.
2.) Analyzes changing market
If a company want to grow in the long run the company needs to know
their customer. Customer attitude also changes with the change in the
market or environment, because new and innovative products are
launched by the companies on a daily bases. Advertising research helps
the company to analyzes these changes to know about the changing
attitudes of customers.
3.) Advertising Communication
Advertising's purpose is to communicate the product or brand with its
target or prospective customer. Successful communication of messages
can be measure by increasing awareness about the product, changing the
attitude of the customer, taking some action by the customer regarding
the product.
4.) Provide Feedback
Advertising does not end after execution company has to check that they
got the desired result or not. It is an attempt to measure that the
investment in creating the advertising has resulted in attaining the goals
and provide satisfaction to the consumers. Advertising research provides
feedback to the company about the effectiveness of advertising.
5.) Provide Results
Evaluation of advertising refers to the activity of comparing the actual
results of advertising to the established standard to know the real value of
the advertising performance.
It helps to know that message reached the target customers or not.
It can be done at any stage, in starting, in the middle, or at the end of the
advertising.
Types of Advertising Research
A.) Research Point of View
B.) Company Point of View
A.) Research Point of View
1.) Customized Advertising Research
2.) Syndicated advertising Research
1.) Customized Advertising Research
Customized Advertising research is done by the company to fulfill its
specific needs.
For Example - Coca-cola wants to launch its new flavor drink and they
like to research how customers will react to the advertising. The research
will be done by the company itself or the company will hire someone, but
research results will used by the coca-cola company.
2.) Syndicated advertising Research
Syndicated advertising Research is done by the research individual or
companies. The result of this type of advertising is available to other
organizations. If anyone is interested in their research result then they can
get it for paying a particular price or for free.
For Example - A Company issue research on the best way to advertise,
this research is available and anyone can buy it.
B.) Company Point of View
1.) Pre-testing research
2.) Post-testing research
1.) Pre-testing research
Every process starts with an idea. Converting an idea into reality involves
a lot of risks. More then half of the idea failed due to creative issues. The
company must ensure that its idea reaches the target audience. The
pre-test phase of the advertising research helps to make a detailed study
of your target audience. It will decide that the idea will be accepted or
rejected.
2.) Post-testing research
The advertising message is a two-way process. It started when the
company advertises its product and completes it when they get feedback
from the customer. The company gets feedback from post-testing
research, which measures the output of the advertising. Research helps
the company to know that advertising is implemented successfully or not.
Process of Advertising Research
1.) Preliminary discussions
2.) Planning & data collection
3.) Application of research findings
1.) Preliminary discussions
What is the problem faced by the company? This stage involves the
identification of the problems regarding advertising. The purpose of
identification of the problem is to increase knowledge and understanding,
Selection or Evaluation of Alternative Actions, to assess problems and
opportunities.
Three components of a research problem
a.) Problem identification
b.) Justify the need for research
c.) Specifying informational needs
a.) Problem identification
The first step is to identify the advertising problem. In this step, we point
out the number of problems that we are facing regarding advertising.
Now the next step is to identify what type of information is needed to
solve the problem when this information is needed, why this information
is needed, and how the company will use this information.
b.) Justify the need for research
Research should be beneficial for the company, not all research provide
benefits to the company. The question is in which condition research will
be conduct. The benefit of conducting research can be evaluated by
measuring cost. It means the benefits driven from research should exceed
the cost that occurs in research.
c.) Specifying informational needs
The last step is to identify the important information from the research to
avoids the risk of incomplete research. It will help to evaluate the
strengths and weaknesses of the advertising campaign. This evaluation
can be done that how a message delivered to the customer and how they
respond to it.
Example of components of a research problem
a.) Problem identification
The company developed a product with two different packings and the
Company wants to know which packing will be most effective in
generating sales.
b.) Justify the need for research
Since there is no prior information available about these packages, so
the research is required over the 6 months of the test market to determine
which packing will be effective.
c.) Specifying informational needs
Research will evaluate 1) package preference; 2) product perceptions 3)
uniqueness.
2.) Planning & data collection
A.) Identify the type of research
B.) Determine Sampling Method
C.) Data Collection Method
A.) Identify the type of research
a.) Access Information through secondary research
b.) If necessary, conduct primary research
Qualitative - correlation and regression, mean, median, etc.
Quantitative - do not involve numbers like feeling, emotions, colours.
B.) Determine Sampling Method
a.) Random Sample - A random sample is a method in which each
individual has an equal chance to get selected.
b.) Non-Random Sample - In this method, individuals are not selected
by chance. They are selected intentionally.
C.) Data Collection Method
a.) Interviews
b.) Questionnaires and surveys
c.) Observations
d.) Mail
e.) Telephone
f.) Electronic Survey
3.) Application of research findings
If research is Quantitative the data require coding, interpretation,
analyzing. If Qualitative then data need some efforts, to sum up, the
information.
The last step is to apply the finding of the research. It will help to make a
decision regarding the advertising problem and to evaluate the strengths
and weaknesses of the advertising.
Methods of Advertising Research
1.) Focus Group
2.) Projective Techniques
3.) Field Work
4.) Internal Companies Resources
5.) Government Sources
6.) Commercial Source
7.) Professional Publications
8.) Internet
1.) Focus Group
Normally it is a group of 8-15 people but sometimes 20-25. A focus
group is a small and demographically different group of people. The
reaction of these people is studied to complete the advertising research.
It is a group of different people from different backgrounds, come
together to participate in a discussion about a particular product, service,
or advertising campaign.
2.) Projective Techniques
The projective technique is used when the researcher has to make a deep
study or he knows that the participant will hesitate to answer the question
because these questions are about personal information. So, they are
placed in a simulated situation to study their psychology or way of
thinking and taking action.
3.) Field Work
Research that takes place outside of the agency is known as fieldwork.
This type of research is generally taken at the place of consumption.
For example - Cash counter and the main entrance of a shop or mall.
It is very helpful because it focuses on the target customer and the
accuracy of data also increases.
4.) Internal Companies Resources
Internal Companies Resources are the database collected and stored by
the company. This database can be any old or new, about all transactions
or a particular thing. Advertisers collect this data for future use. This data
can be about customer interest, supplier firms, any previous research
conducted, etc.
5.) Government Sources
Government has to collect data about the economy, population, business
activity, etc. If a company has to make research on these aspects then the
company or advertiser has to burn a lot of money. But this data is easily
available from the government at a low cost and most of the time free of
cost.
6.) Commercial Source
Commercial sources are costly but save the time and effort of the
advertiser. It involves cost factors such as subscription and association
fees. Advertisers or companies have to pay the price of information that
they want. Commercial sources include research and trade associations,
such as financial institutions, and publicly traded corporations.
7.) Professional Publications
Professional publications are the report provided by the advertising and
marketing professionals. They provide important information regarding
industry trends and new research findings. These reports are available in
books or articles. This information is provided on periodical bases.
8.) Internet
The Internet is the new era with the help of this you can get information
by setting on a table. It is the best friend of the advertiser when they are
looking for information. There are thousands of information and data
available over the internet. If you make any research with the help of the
internet, it will save time and cost of the company.
Problems in Advertising Research
1.) Insufficient Information
2.) Lack of Funds
3.) Time Pressure
4.) Inappropriate Methodology
5.) Inexperience Expertise
1.) Insufficient Information
Advertising research requires huge information. It includes information
on age, taste, attitude, education level, geographical area, etc. If the
advertiser is lack of information, then media research will fail to fulfill its
purpose. In Advertising research, the main role is of information weather
it is pre-advertising or post-advertising.
2.) Lack of Funds
If an advertiser wants to make quality analysis on advertising research
that which advertising will be the best fit for the target customer, then the
advertiser has to burn a lot of money. Funds are the big constraints for
most of the company or advertisers due to which they are not able to
make effective research on advertising.
3.) Time Pressure
Change in the environment is sudden and quick. These sudden changes
require quick research by the advertiser regarding advertisements. If
advertising research is made without proper analysis then all the efforts
get wasted. It creates a lot of time pressure on advertisers because they
have to make their research at the appropriate time.
4.) Inappropriate Methodology
There are various methods available for advertising research but you
cannot apply anyone from them. It depends upon the type of data
available and the objective of the advertising research that which method
will be suitable. If you use the wrong method for your research then the
outcomes will come with errors.
5.) Inexperience Expertise
Advertising research is not an easy task it requires expert those have deep
knowledge for research. It requires the services of talented, experienced,
and skilled researchers. If the researcher does not have sufficient
knowledge, experience, talent, then the analysis goes wrong.
Advertising Media Planning
Media planning includes a series of decisions and strategies to choose the
right advertising channel for delivering the advertising message to
existing and prospective consumers. It helps to get the best way for
communicating the advertiser message to the market. In another way, the
aim is to find the best combination of media that allows the advertiser to
communicate the message most effectively to potential customers at the
lowest cost.
Importance of Advertising Media Planning
1.) Optimum Utilization of Resources
2.) Helps in Allocating Advertising Budget
3.) Ensures Appropriate Timing of Advertising
4.) Helps in Controlling
5.) Selection of Appropriate Media
1.) Optimum Utilization of Resources
Advertising included a huge cost. Media planning will help the advertiser
to use the available resources in an optimum manner. It helps the
advertiser to take the right decision about the media and time for the
advertising that will effectively communicate the message with less cost.
In the absence of media planning, the advertiser can select high cost
media that will not cover his target audience.
2.) Helps in Allocating Advertising Budget
Media planning helps to decide the total amount to be spent on different
media. There are different media vehicles advertisers have to choose
which will communicate with their target audience. So, it also helps the
advertiser in allocating the advertising budget fro different media
vehicles.
3.) Ensures Appropriate Timing of Advertising
Advertising will provide the best result if they are shown at the right time
to its target customers. So, it helps to decide on what day, month, or time
advertising will be communicated. It helps to communicate the ads at
the time when more customers can be connected. It includes media
scheduling which decides the time and space of advertisement in media.
4.) Helps in Controlling
In media planning, some standards of performance are fixed at the time of
planning. These standards are regarding the goal which has to be
achieved through advertising. These standards will help management in
evaluating the effectiveness of advertising. If actual performance does not
match with the standards, then proper precaution takes to fulfill the gap.
5.) Selection of Appropriate Media
In media planning, different media Channels are compared based on cost
per reader, cost per viewer, media-coverage, etc. While selecting media
the advertiser must select media that will reach the maximum number of
target customers.
For example, 1. if the target audience is literate, then print-media can be
selected 2. if the target audience is professionals, then professional
journals and magazines can be selected.
Process of Advertising Media Planning
1.) Environmental Analysis
2.) Media Objective
3.) Developing and Implementing Media Strategies
4.) Implementation Media Plan
5.) Evaluation and Follow-up
1.) Environmental Analysis
Environment analysis is the first step taken by the advertiser at the time
of media planning. This analysis is done by taking a review of internal or
external factors. The advertiser has to analyze
1.) Who is the Target Customer
2.) Internal and external factors.
3.) Time for delivering the message.
2.) Media Objective
Media objective means what is the purpose of communicating the
message. The purpose is to spread awareness, change the attitude of the
customer, increase sales, recall the product, etc. The objective decides the
type of media to be selected or the nature of the advertising.
3.) Developing and Implementing Media Strategies
a.) Media MIX
b.) Scheduling
c.) Creative Aspects
d.) Flexibility
a.) Media MIX
Media mix means that advertisers have to choose one effective media
from all the alternatives or to create a correlation between them that all
the media alternatives are used in an optimal manner. This depends upon
the nature of the product, type of advertising, size of the budget, etc.
b.) Scheduling
Scheduling means the number of times an advertisement ( once or ten
times in a day, morning, or evening time ) appears in each medium, the
size of advertisements, the date or month at which the ads are to appear.
Proper time and selection of media are required to make the advertising
effective.
c.) Creative Aspects
Creativity is the most important aspect as there is a lot of competition in
the market. It is the most efficient way to create memorable, long-lasting
impressions for your target customers. If your ads have creativity
customers will spend time on it. Experiments observed that creative
messages get more attention and change attitudes about the products
being advertised.
d.) Flexibility
If a company and advertiser want effective advertisement, then there must
be some flexibility in it. In today's time, the internal and external
environment changes rapidly, so the advertiser has to change there policy
as per the changing environment. It requires flexibility in advertising
whenever it is required.
4.) Implementation Media Plan
Implementation is the process of converting strategies and plans into
actions to achieve strategic objectives and goals. In this stage, the media
planner implements the media plan. All the strategies should be
implemented effectively so that advertiser gets a favorable result.
5.) Evaluation and Follow-up
After implementation, the last step is to follow up the media plans to
evaluate their effectiveness and to check whether it achieves the
advertising objectives or not. It will help the advertiser to know the
success or failure of the advertising campaign. If media planning is not
effective then proper action is taken in the future to fulfill the gap.
Problems in Advertising Media Planning
1.) Insufficient Information
2.) Time Pressure
3.) Difficulty in Audience Measurement
4.) Difficulty in Cost Comparison
5.) Inadequate Expertise
1.) Insufficient Information
Media planning requires huge information regarding target customers. It
includes the information of age, taste, attitude, education level,
geographical area, etc. The advertiser also needs information about the
strategies of competitors. Advertising company requires information
about advertising agency rates, Image, rating, etc for selecting the best
agency.
2.) Time Pressure
Change in the environment is sudden and quick. These sudden changes
require quick decisions by the advertiser regarding advertisements. If
media planning is made without proper analysis then all the efforts get
wasted. It creates a lot of time pressure on advertisers because they have
to make quick decisions at the appropriate time.
3.) Difficulty in Audience Measurement
Audience measurement means the number of persons who spend most of
their time on a particular media. It is very difficult to know the number of
audiences on a particular media, mostly in broadcast media. For example,
it is difficult to know how many watch a particular television program. If
the number of audiences of a media is known, still it is very difficult to
know the number of target customers out of them.
4.) Difficulty in Cost Comparison
While estimating the cost of different media it creates trouble for the right
selection because the cost of different media is available on a different
basis.
For example -
1. Cost per word or square centimeter is known in the case of print media.
2. In the case of broadcast media, cost per second is known.
5.) Inadequate Expertise
Media planning is not an easy task it requires expert those have deep
knowledge for selecting the right media. It requires the services of
talented, experienced, and skilled advertisers. If the advertisers do not
have sufficient knowledge, experience, talent then media decisions may
go wrong and effort gets wasted.
Factor Affecting Advertising Media Selection
The aim of the media is to communicate the product with the target
customer. If you are thinking of advertising your product or service then
you have to choose effective media from the various alternative. It is not
necessary that all the business require one type of media. It will depend
upon company objective, product nature, fund allocation, etc.
1.) Company Objective.
2.) Cost of Media
3.) Media Reach
4.) Types of Customer
5.) Nature of Product
6.) Company’s Advertising Policy
7.) Past Experience of Company
8.) Expert services Charges
1.) Company Objective
The company objective is the foremost thing that is kept in mind while
selecting the media. The company objective can be customer awareness,
change attitude, increase sales or profit, recall the product, etc. Media
have their pros and cons that are to be kept in mind while selecting the
media.
2.) Cost of Media
The cost of media is a complex factor while choosing media. Small
businesses have to go with less costly media due to insufficient funds.
Media like TV, radio, films are costly for advertising. Print media are less
costly in space and preparation of advertising messages. Some outdoor
media cost an average as compared to other media.
3.) Media Reach
Media have their range and capability to reach target customers. Media
selection also gets influenced by the reach of the customer. If you want to
target the local market, then you can go for templates. If your target
customer is in a particular region, then you can select a newspaper. If you
want to reach millions of customers, then television is the best option.
4.) Types of Customer
All products are not made for every customer, some for them require a
particular group of customers. For example - 1. Colgate is used by all
age, religious persons. 2. Wheel Chair is for disabled or old age persons.
The type of customer is categorized into different groups based on their
age, educational level, income, religion, social, and cultural interests.
5.) Nature of Product
If the product is something that creates demand or is needed by the
customer or creates value for the customer, then advertising of such
product becomes effective. Thus the nature of the product decides the
type of media required as if you want to demonstrate your product then,
television will work best.
6.) Company’s Advertising Policy
Company policy also influences the advertiser to select the media channel.
For example, if the company policy is awareness of the customer, spend
less on advertising and sell the product or service at less price, So the
advertiser has to choose the media that will cost less but fulfill the
purpose of the advertising.
7.) Past Experience of Company
Company previous experience helps the company a lot to select the media
that will be proven effective. If the company tried several different media
channels and got satisfactory results from a particular media channel,
then there are more chances to use the same media next time.
8.) Expert services Charges
Marketing experts are professionals that help the company to choose the
appropriate channel of advertising. These experts make market analysis
and recommend suitable media. They have experienced professionals so
they can judge the effective media channel. These professional services
incurred huge costs that increase the coast of advertising.
Meaning and Strategies of Media Scheduling
When an advertiser decides the media channel for there advertising, then
the next step is to make a decision regarding media Scheduling. Media
scheduling refers to the process of making a decision regarding the time
and date that when the advertisement appears, the frequency of ads, etc.
Advertisers have to choose the best time for maximum customer
response.
Media Scheduling Strategies
1.) Continuous strategy
2.) Flighting strategy
3.) Pulsing strategy
4.) Steady strategy
5.) Step-down strategy
1.) Continuous strategy
This scheduling involves advertising the message throughout the year.
This type of advertising use where products are sold and used by the
customer throughout the year. This strategy helps the advertiser to
constantly reminding the products to its customers.
For example - Toothpaste, Shampoo, Soap.
Continuous Strategy Diagram
2.) Flighting strategy
Flighting strategies include giving advertisements at specific intervals.
The advertiser makes advertising for some time after then took a break of
no ads, then take the second flight of advertising. The company with
seasonal products or according to the life cycle of products and services
use such scheduling strategies.
Flighting Strategy Diagram
3.) Pulsing strategy
In this strategy, the advertiser advertises its product all over the year. But
for some period the expenditure on advertising is high and sometimes less.
It removes the limitation of continuous or flighting strategy. The
advertiser can increase or decrease the expenses of advertising depending
upon the requirement.
Pulsing Strategy Diagram
4.) Step-down strategy
This strategy includes seasonal products. When the time of seasonal
products started, then the advertiser starts advertising their products. As
the season getting into the finishing phase, then the advertising starts
declined.
For Example - When the rainy season begins companies give
advertisements related to rainy shoes, raincoat, umbrella, etc.
5.) Step-up strategy
In this strategy, advertisers communicate ads on a low scale when the
season begins. When the season picks up advertisers start advertising on
large scale.
For Example - Products like a-c, fan, Air cooler, etc. advertisement starts
with a low scale as the season picks up slowly advertising reaches its
peak.
Creativity in Advertising
Creativity means to convert new and imaginary ideas into reality. It is the
ability to observe the world in new ways, to find hidden patterns. If you
have a new idea or imagination in your mind but don’t act on them, then
you are imaginative but not creative. If you are a writer, musician,
photographer, or designer, you are called creative at some point because
of your creativity in your work.
What is Creativity in Advertising
Creative advertising means to choose a new way of advertising. It is more
efficient than simple ads. Such advertising is more memorable, resist for
a long time in mind, costs less media spending, and builds a strong
customer base. Creative advertising messages get more attention and
create positive attitudes towards the products.
Example of Creativity in Advertising
Importance of Creativity in Advertising
1.) Brand Recognition.
2.) Attract Customers.
3.) Customer likeability Increase.
4.) Impact on Budget.
5.) Introducing the New Product.
1.) Brand Recognition
Creativity creates uniqueness and different way of delivering an
advertising message to customers. It will help the customer to recognize
the brand. Consumers retain those things more that are unique and
relevant to their interests. Companies can create value for their brand
product by providing meaningful, relevant, and unique advertising to
their target customers.
2.) Attract Customers
Creative advertising attracts more customers as compared to simple
advertising. Advertisements should be different and enjoyable. Example-
A enjoyable advertisement creates interest for the children toward the
product. In return, children will force their parents to buy the same
product for them.
3.) Customer likeability Increase
The customer starts liking the product with your creative advertising. It
will not only help the company to sell its advertised product, but it will
create value for its brand. Now this will support the company to sell out
their other products. The company gets advantages of these in selling an
existing and new product that will be launch in the future.
4.) Impact on Budget
A creative advertisement cost less as compared to dull and simple ads.
Creative advertisements make a quick impression on the target customer.
In the case of dull and simple advertisements, advertisers have to show
ads again and again to influence the target customer that will cost more.
Creative ads bring more returns to the company.
5.) Introducing the New Product
It said that the first impression is your last impression. Creative
advertising helps the company to popularizer its product or service in the
market in the first attempt. Creative advertisements make more influence
on the customer. Advertisers have to spend less on creative ads as
compared to dull ones. So the advertising becomes more effective with
less expenditure of money.
Meaning or Types Creative Strategy
What is Creative strategy
Creative strategy is a strategy or blueprint that is created by a team that is
consists of copywriters, an art director, an advertising layout artist, a
graphic designer, and a creative director. These professionals get together
to create a strategy that is going to help the advertising campaign to meets
its target goals or objective.
A creative strategy is different from company to company and from the
goals and objectives to be achieved. The creative strategy identified the
target market, product benefits used for advertising, why these benefits
are important for the customers, the purpose of advertising like retention,
selling, recall the product, providing offers.
Types of Creative Strategy
1.) Changing attitude strategies
2.) Appeal Strategy
3.) Positive and Negative Strategies
4.) Comparative Strategy
1.) Changing attitude strategies
Changing attitude strategies are formed to influence the consumer to buy
a particular product. If a customer is interested in other brand products,
then the task is to change the attitude of the customer toward this product.
If the advertiser wants to influence the customer to its new product, then
they have to specify their feature and benefits.
2.) Appeal Strategy
In this advertiser makes an appeal to purchase the products. The customer
goes through the process of attention, interest, desire, and action (AIDA)
to make a purchase of the product. Attention gained by making creativity
in advertising. It creates interest for the customer to look over the
products that convert into desire, and finally, consumers purchase the
product.
3.) Positive and Negative Strategies
A positive advertising promise that the product will come up with various
features, provide pleasure, provide more comfort, new features, and
offers associate with the product. In negative advertising, they focus on
avoid other brand products by making fear of damage, pain, destruction,
unpleasant experience, etc.
4.) Comparative Strategy
A comparative strategy involved a comparison between one or more
companies' products and services. This comparison is based on the
illustration of products. If the comparison does not include any original
brand name or product, it is effective advertising. If an advertiser used the
original brand name or product, then it creates conflict or controversy.
Meaning and Strategies of Advertising Message
Meaning of Advertising message
In the advertising communication process, effective communication
requires the message between the sender and receiver. If there is no
message, why should we communicate with each other? The
effectiveness of advertising largely depends on the message. Creating a
message can be confusing, frustrated, hair-pulling, etc. A message should
create awareness, get attention, make interest, and obtain action.
Advertising message includes
1. Information,
2. Facts,
3. Opinion,
4. Idea,
5. Pictures,
6. Brand symbols - McDonald's, Pepsi, Coca-Cola,
7. Appeal - Captures the attention of the consumer that can be humorous
like in Mentos ads, adventurous like in Thums-Up ads, or emotional as in
insurance ads, etc.
Advertising message effectiveness also depends on how the message is
designed and framed. It means the decision of message format, content,
objective. That all depends on various factors like competitor strategy,
consumer buying behavior, product features, legal factors, advertisement
budget, nature of the consumer, etc.
Strategies of Advertising Message
1.) Brand Recall
2.) Persuade the Customer
3.) Change behaviour of customer
4.) Create Attention of Product
5.) Promote Buying Action of Customer
What is Advertising Budget
An advertising budget is an amount that is estimated by the company to
spend on promotional activity over a certain period of time. In other
words, it is the money that the company is willing to spend on advertising
to fulfill its objectives. It includes the preparation of the budget, approval
of the budget, Execution of budget, Monitoring and controlling of the
budget.
Process of Advertising Budget
1.) Preparation
2.) Presentation
3.) Execution
4.) Control
1.) Preparation
The company's first step is to decide the total budget of advertising,
which is known as budget appropriation. The overall budget is estimated
based on the information on markets, product, pricing, image, message,
and media, the existing sales, and affordable capacity. Now the budget is
prepared for each market segment, time, and geographic area.
2.) Presentation
The budget is presented to the advertising manager after the preparation.
He decides the rationale and the contribution of the budget components.
The budget is discussed with the finance manager before finalizing it. The
budget is modified based on marketing conditions, management
requirements, change in the external environment.
3.) Execution
The execution is not an easy part. It does not mean that you prepare the
budget now execute it quickly. Advertisers have to plan about the
purchase of advertising time and space ( space is the area of a newspaper,
web page, and other media channel ). Contingency funds are also set
aside, which is used during times of need.
4.) Control
In this stage advertiser check, that there is the proper utilization of the
advertising budget. It happens through constant surveillance or periodic
checks, that determine whether the advertising plans are implemented
properly or not. The budget is prepared under normal marketing
conditions. If the conditions change, the budget is changed accordingly.
Factor Affecting Advertising Budget
1.) Existing Market Share
2.) Competition level.
3.) Stage of Product Life Cycle
4.) Frequency of Advertisement
5.) Type of Product
1.) Existing Market Share
A company with a lower market share will have to spend more on
advertising channels to make his brand popular or to acquire the market
share. On the other hand company with larger market share have to spend
less because they already position their product in the mind of customers.
2.) Competition level.
There is a direct link between competition and advertising budget. If there
is a high level of competition, then the advertiser needs a high advertising
budget. On the opposite side, if the competition level is low, then the
budget requirement will be less. In the case of a monopoly where the
competition level is less, the company will need to invest less in
marketing.
3.) Stage of Product Life Cycle
It is a common fact that in the introduction or growth stage of the product
life cycle, advertisers need a large amount of advertising budget. In these
stages, advertisers have to aware the customers about new products.
While in the later stages of the product life cycle, the need for the
advertising budget will decline.
4.) Frequency of Advertisement
The advertising budget will also depend on how many times a company
runs its ads on different advertising media channels. If the frequency of
advertising is more, then the size of the budget will be more. If the
frequency is less, then the size of the budget will be less.
5.) Type of Product
The type of product to be advertised will determine the size of the
advertising budget. Consumer products like FMCG require a large
amount of advertising budget. FMGC is a daily use product, so the
advertiser has to recall their products every time. While other products
are advertised in the stage of introduction or growth or when the season
of products comes.
Method or Types of Advertising Budget
1.) Percentage of Sales
In this method, advertisers set a percentage of the past sale or expected
future sales as the advertising budget. The Small advertiser or company
adopts this method. Let suppose the Past sale of the company is 50
crore and the company decides to advertise 2% of it. Now the company
will set 1 crore for its advertising budget.
2.) Objective and Task
This advertising budget method decided on the bases of the advertising
objective. It can be the introduction of new products, create awareness,
acquire customers, brand building, brand recall, etc. Once the objective is
selected, the budget is estimated to complete those objectives.
3.) Competitive Parity
This method advocates that a company sets an advertising budget similar
to its competitor to get similar results. Advertisers believe that if they
choose the same method, then it will help them to maintain or gain
market share. This method is helpful for those advertisers who can afford
the budget of the competitors.
4.) Market Share
The market share of the company is the deciding factor in the advertising
budget. Companies with a bigger market share already position their
brand in the customer minds they advertiser to recall their brand. So, they
require less amount of advertising budget as compare to a growing
company.
5.) Incremental Method
The incremental method includes the increase in the advertising budget
over the last year. Last year's budget becomes base and, then the
advertising budget for the current year is calculated. It happens because
the cost of all the advertising input increases with time. Input like media
cost, agency cost, professional services cost, etc.
6.) Quantitative Method
This method required a mathematical calculation to find out the
advertising budget. It uses the statical method like simulation, regression,
correlation, probability. The professional person services are required for
this type of statical method. This method is more effective when the
company has past data with them.
7.) Judgment Method
This method required an experienced team that has in-depth knowledge
of advertising. In this method, the judgment of the experienced team and
the senior manager is taken to prepare the advertising budget. As they are
experienced teams their estimation will be effective. This method cost to
the company for expert services but consumes less time.
8.) Affordable
As the name itself gives an idea that it is the amount that is affordable by
the advertiser is known as affordable budget. For example - as per the
company situation, it decides to spend 50 lakh on promotional activity,
then it is the advertising budget for that company. This method does not
require any professional services to calculate the budget.
Meaning of Advertising Copy
An advertisement copy includes written text ( a dialogue, a catchy punch
line, or a statement ) or spoken matter of ads. It can be short or long,
made-up of head-line, sub-headlines, the body, illustration, logo, slogan,
and the brand name of an advertiser, designed to communicate the desired
message to the target consumers.
Example of Advertising Copy
Elements of Advertising Copy
1.) Headline
2.) Sub-Headline
3.) Body Copy
4.) Logo, Slogan
5.) Visual Elements
6.) Layout
1.) Headline
The most important element of advertising copy is the headline. If the
headline is not effective, then all other elements go wasted. So, the
advertiser has to make its headline caughty, that it attracts the customer
and fulfills its purpose.
2.) Sub-Headline
If the headline fulfills its objective, then the job of the sub-headline
becomes easier. It helps the reader to have more knowledge about the
product. Example - Dudh Mein Horlicks Milao, Dudh Ki Shakti Badhao.
3.) Body Copy
In the text, both rational and emotional reasons are mention to attract
customers to buy a particular brand. Facts and figures about the product,
guarantee of satisfactory performance, etc. are described.
4.) Logo, Slogan
A slogan is the group of words used by the advertiser to impress
customers about the product. It is a popular method of attaining the
attention of the customers. E.g. – Horlicks - Taller, stronger, sharper
5.) Visual Elements
The Visual Elements are Line, Shape, Tone, Color, Pattern, Texture and
Form, Picture.
6.) Layout
Page layout that deals in the arrangement of visual elements on a page.
Types of Advertising Copy
1.) Institutional copy
2.) Fear Advertising Copy
3.) Educational Ad Copy
4.) Scientific Ad Copy
5.) Descriptive Copy
6.) Topical Copy
7.) Suggestive Copy
8.) Reason Why Copy
1.) Institutional copy
The institutional copy does not sell its goods and services. It assists in
promoting the product of the selling house. It helps the selling hub to
build a strong reputation with their customers. The main objective of this
type of ad copy is to create, maintain, and increase the goodwill of selling
hubs in the minds of prospective customers.
2.) Fear Advertising Copy
Fear ad copy creates a sense of fear in the reader to save their lives or to
protect themselves from damage, pain, destruction, unpleasant experience,
etc. These advertising copies create deep interest in the consumer mind
because it protects their values.
For Example - Advertisement of locks, medical and insurance, stock
market, etc.
3.) Educational Ad Copy
An educational ad copy aware, inform, update to its customer about the
product by educating them. It is designed in such a way that it will
highlight the benefits and special features of the product to the customer.
It is the responsibility of the advertiser to educate the customer and make
them user friendly with the product.
4.) Scientific Ad Copy
A scientific copy is technical and, it provides detailed information about
the product and the producer of the product. It is mostly used by
pharmaceutical firms, engineering, and drug authorities. It helps the
advertiser to inform the ordinary people in general and professional
persons in particular about the merits and value of the product.
5.) Descriptive Copy
This Descriptive copy is the non-technical opposite of scientific ads copy.
It is prepare in such a manner that a layman ( a person without
professional or specialized knowledge ) can understand it. It gives
complete information about the product in easy and understandable
language.
For example - FMCG Goods
6.) Topical Copy
A topical ad copy is that in which the advertiser creates a connection
between the product and a particular recent happening. This type of copy
makes an effective impression on the target customers. It creates interest
because the event is sensational and fresh in the minds of the customers.
For example – advertising copy of Adidas during sports.
7.) Suggestive Copy
A suggestive copy suggests or attempts to convey the message directly or
indirectly to the customer. A Suggestive ad copy works best when the
reader is confused regarding the quality of the product and finding it
difficult to make a decision regarding its purchase. Different suggestions
are delivered to help the customer in making a purchase decision.
8.) Reason Why Copy
The approach of this copy explains reasons to customers why it is
necessary to have the product. It gives definite positive points in favor of
a particular product. It attempts to explain the product superiority using
data in the forms of performance tests, records, recommendations,
guarantees, etc.
Example - LIC
What is Personal Selling
Personal selling means selling personally. It is a costly but effective
promotional method because it involves face to face interaction between
the buyer and the seller. The buyer's motive is to use his skills and
abilities to convince the customer to sell the product. Here, the
salesperson highlights the features of the product, and if it matches the
buyer's interest, they purchase it.
Personal Selling Demonstration
Conversation ~1
Hi, I am a Seller What you have
Conversation ~2
I have Ultraglow Face But I am already using a
Cream of ABC Company cream of XYZ Company
Conversation ~3
Oh! Great ma'am but this
cream has more benefits OK, and what that's?
with reasonable price
Conversation ~4
It keeps the skin moisturized That's great! But I heard about
and protect from sunrays. this company from you, how can
I trust this product.
Conversation ~5
Ma'am we are in existence from
past 2 years, and we have 2 Impressed, What is the
million happy customers with price of this product.
5-star rating, let me show you.
Conversation ~6
Generally we charge Rs 300 for
this product, but we are running a
promotion campaign, and we are It's a great deal, I want to
selling this product for Rs 149 purchase it.
only.
Payment taken and deal get closed, If later on buyer face any issue
he can contact with the seller if he shares the contact details.
Importance of Personal Selling
1.) Two-way communication
2.) Interactive approach
3.) Detail Demonstration
4.) Build strong relationships
5.) Immediate Feedback
1.) Two-way communication
Advertising channels like newspaper, television, radio, social media, and
Magazine is one-way communication, but personal selling is a two-way
communication. Salesmen provide necessary information to customers
about the company's and its products, and Convince him to buy the
product.
2.) Interactive approach
In personal selling, buyer and seller have face to face communication
with each other. It helps both the parties to interact effectively and
observe each other closely.
3.) Detail Demonstration
Demonstrating on advertising channels (newspaper, television, radio,
social media, Magazine) is limited, but personal selling includes a
detailed demonstration of the product by the salesman to the buyer.
4.) Build strong relationships
Most of the media channels are one way communication. No doubt they
make relation between product and customer, but person selling involves
deep interaction of buyer and seller that build strong relationships.
5.) Immediate Feedback
It is that promotion technique that provides immediate feedback from the
customers. If the buyer has any queries regarding the product, he can ask
at the same time. The company also get to know why the customers are
not liking their product.
Process of Personal Selling
1.) Prospecting
2.) Preparation or pre-approach
3.) Approach
4.) Presentation
5.) Handling objections
6.) Closing
7.) Follow-up
1.) Prospecting
Prospecting involves finding potential buyers or clients. The company
needs to do research to identify the right customer who can purchase the
product. It will save the time and effort of the company by just focusing
on the target buyer.
For example - If you want to sell insurance to individuals over age 65,
then you will not target someone with age 30.
2.) Preparation or pre-approach
Before making contact with the client, the seller needs to prepare himself.
Sellers need to be aware of product descriptions, prices, payment options,
and competitor similar product information. It will help to connect better
with the customer. Practice what you're going to say and be ready to
answer the question asked by the client.
3.) Approach
In the approach stage, the seller makes the first personal connection with
the client. The seller shares the information about the product and takes
query from the client. To make this process effective, ask questions from
the client to involve him in the conversation.
Example: If you are selling skin care products, you can ask:
Do you currently use any skincare products?
Is there anything you are unhappy with?
Any problem or side effect to your skin?
Have you heard about our product?
You can also give some offers for additional benefits.
4.) Presentation
In the previous step, you understand the needs and wants of the client.
Now, you can give a presentation or demonstration of your product that
will fulfil those needs or wants.
Example - If you have skin care products, the client may need
moisturizers, Sunscreens, dark spots, and face oil products. So,
understand your customer and pitch accordingly.
5.) Handling objections
After completing the presentation, the client may have some questions. It
is an important part of the selling process and it shows that the customer
is taking interest in your product. It helps the client to understand the
product better.
Example: The customer may ask how to use this product, Is this product
have any side effect, and why this product has a high price compared to
similar products.
6.) Closing
Once you convince the client, then it's time to close the sale. Closing
sales might involve drafting a proposal, negotiating terms or pricing (EMI
or full settlement), signing contracts, completing a monetary transaction,
etc. The seller should make sure that the buyer understands the terms,
such as refunds or returns.
7.) Follow-up
Follow-up creates a strong relationship between the seller and the buyer
that ensures customer satisfaction, retains customer loyalty and helps to
generate new customers. It involves asking about their experience with
their product or service. You can also request the customer to leave
positive feedback on the company website about your product.
Types of Personal Selling
1.) Order Takers or Indoor selling
2.) Order Getters or Outdoor selling
3.) Order Creators
1.) Order Takers or Indoor selling
In this type, salesperson receive requests and queries from the customers.
It means, the customer approaches these salespersons. Salespersons hold
positions like retail sales or telemarketers and keep enough inventory that
meets customer needs.
2.) Order Getters or Outdoor selling
Order getters reach out to new clients, give information about the product
and persuade them to make a direct purchase. These are in-field
salespersons who bring in new clients to the business. It is a tough, but
effective way of sale.
3.) Order Creators
Order creators don’t close the deal itself, but convince the public to
promote their business’s offering, which eventually leads to sales.
For example, A pharmaceutical company salesperson reaches out to a
doctor to persuade him to prescribe his company’s medicine to the
patient.
Advantages of Personal Selling
1.) Conveys Detail information
2.) Creates Deep impact
3.) Customer Confidence
4.) Improving Image
1.) Conveys Detail information
Personal selling conveys more detailed information than any other form
of promotion. The seller gives the information about the product, creates
a need for the product for the customer, and persuades him to buy it. If a
customer has any doubts about the product, he can clear it on the spot.
2.) Creates Deep impact
It’s more impactful as it is an interactive conversation between the client
and the seller. The salesperson assists the customer throughout the buying
process, answering questions, and solving doubts.
3.) Customer Confidence
Personal sales include interpersonal relationships. It starts with a simple
conversation and then making aware about the product by talking about
its features or benefits, clearing all doubts, quarries, misunderstandings,
and winning customer’s confidence. It increases customers’ faith in the
company and its product.
4.) Improving Image
The seller can remove the bad image of the company by clearing any
misunderstanding created by the client in his mind. The seller conveys the
company’s achievements and offers. The detailed explanation of the
company and its products removes all doubts and misunderstandings.
Disadvantages of Personal Selling
1.) Limited reach
2.) Training Cost
3.) High salesperson turnover
4.) Negative Image of Salesmen
1.) Limited reach
In personal selling, there is person-to-person contact. The seller can
approach only a few numbers of clients in a specified period. So, it has a
limited reach.
2.) Training Cost
The Company occur a high cost in training the sales staff. Some sales
team training expenses are mobile phone charges, health care, salaries of
trainees, training equipment, meals, expenses of managers that are
appointed to train sales staff, hotels and travel expenses.
3.) High salesperson turnover
The salesperson turnover rate is very high in the case of personal selling.
The reason for high turnover in personal selling is because of work
pressure. Salesmen sometimes quit their job after training or sometime in
the middle of their job. It takes a lot of time to hire and train a new
salesperson.
4.) Negative Image of Salesmen
The biggest drawback of personal selling is a negative perception about
the salesman. Not every salesman is perfect in his job. This job demands
a skill set to sell a product. Some salesmen have an aggressive tone, and
some have a low. It annoys customers, that cost the company in the form
of low sales.
Meaning of Salesman
A man whose job is selling or promoting a product or service, either in a
shop or by visiting the client's locations. A salesman can sell to customers,
businesses or organizations directly. Sometimes they sell over the phone
or by communicating with people online.
Qualities of a good Salesman
1.) Physical Qualities
2.) Social Qualities
3.) Mental Qualities
4.) Technical Qualities
5.) Miscellaneous Qualities
1.) Physical Qualities
If a salesman has a charming personality, then it will make the first
impression impactful. A Charming personality boosts self-confidence and
fills with positive energy. It helps not to hesitate during the conversation.
2.) Social Qualities
A salesman must show courtesy while he is dealing with the client. He
should take care that every word of the conversation shows politeness,
and if a client is not in good mood, then he should not make any
arguments. He should not be shy and maintain his confidence during the
entire selling process.
3.) Mental Qualities
A good salesman must have a high degree of intelligence and convincing
power. He should be enough intelligence that he understands his
customer and answers his query quickly, for that he must have product
knowledge, presence of mind and common sense.
4.) Technical Qualities
A salesman should have technical knowledge about the product. It is a
skill where employees understand and effectively communicate with
customers about your product, its features, and benefits. Technical
knowledge improves sales and boosts customer confidence.
5.) Miscellaneous Qualities
1.) The seller should care about the customer’s interests.
2.) The seller should be honest.
3.) The seller should have hunger to do the sale.
4.) A successful salesperson need to be motivated.
5.) A salesperson need patience than closing a sale rapidly.
What is Salesmanship
Salesmanship is a process where the seller establishes and activates the
needs and wants of the buyer so that the client buys the product that the
seller is selling. It is the ability of the seller to persuade the client to buy
the product.