Advertising MANAGEMENT

Advertising MANAGEMENT Lecture I Concept Presentation Prof Soumitra Mookherjee

BASIC CONCEPTS Advertising is the paid, non-personal communication of information about products or ideas by an identified sponsor through the mass media in an effort to manipulate customer behavior. Advertising is non-personal because it's a fantasy that selects one part of the target audience. It communicates information about products or ideas. Advertising is used to publicize a product, service, or idea.

BASIC CONCEPTS Advertising is a form of communication intended to persuade an audience to purchase or take some action upon products, ideas, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular Brand. These messages are usually paid for by sponsors and viewed via various media.

BASIC CONCEPTS Commercial advertisers often seek to generate increased consumption of their products / services through branding, which involves the repetition of an image or product name. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as public service announcement. Public service advertising: The advertising techniques can be used to inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS, political ideology, energy conservation and deforestation.

BASIC CONCEPTS Advertising may influence consumers in many different ways, but the primary goal of advertising is to increase the probability that consumers exposed to an advertisement will behave or believe as the advertiser wishes. Advertising is used by: commercial firms trying to sell products and services; politicians and political interest groups to sell ideas or persuade voters; Not-for-profit organizations to raise funds, solicit volunteers, or influence the actions of viewers. Governments seeking to encourage or discourage particular activities, such a wearing seatbelts, participating in the census, or ceasing to smoke.

OBJECTIVES OF ADVERTISING Objectives of advertising To make an immediate sale. To build primary demand. To introduce a price deal. To build brand recognition or brand insistence. To help salesman by building an awareness of a product retailers. To create a reputation for service, reliability or research strength. To increase market share.

FUNCTIONS OF ADVERTISING The primary objective of advertising is to persuade, it may achieve this objective in many different ways. An important function of advertising is the identification function, that is, to identify a product and differentiate it from others. this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products.

functions OF ADVERTISING Another function of advertising is to communicate information about the product, its attributes, and its location of sale. The third function of advertising is to induce consumers to try new products and to suggest reuse of the product as well as new uses; this is the persuasion function.

functions OF ADVERTISING Different benefits are important to different customers. Thus, to realize its full potential as a persuasive tool, advertising must often be tailored to emphasize those benefits that are important and meaningful for a particular type of customer or a particular use of the product. Examples : Monetary Benefit if purchased Special attributes/features creating consumer appeal Acts as a substitute or alternative Products/ services offering convenience

classification OF ADVERTISING Classification based on function Informative advertising This type of advertising informs the customers about the products, services, or ideas of the firm or organization. Examples: Vishal Megamart is offering 2 kg sugar for every Rs. 1,000/- purchase everyday. Persuasive advertising This type of advertising persuades or motivates the prospective buyers - Example: “Buy one, get one free”. Reminder advertising This reminds the existing customers to become heavy users of the products and this helps in keeping the brand name alive in the minds of existing customers. Negative advertising This type of advertising dissuades target audience from purchasing products which would not only harm them but also the society in general. Example: “ Cigarette smoking is injurious to Health”

classification OF ADVERTISING Classification based on Geographical Presence Global advertising It is executed by a firm in its global market niches. Reputed global magazines like Far Eastern Economic Review, Span, Economist, Fortune, Futurist, Popular Science, etc. Also, popular brands like Sony, Philips, Etc are advertized globally. National advertising It is executed by a firm at the national level to increase demand of its products and services throughout the country. Examples: BPL (Believe in the best). Whirlpool Refrigerator (Fast Forward Ice Simple) etc, Airtel (Express Yourself), etc

classification OF ADVERTISING Regional advertising: If the manufacturer confines his advertising to a single region of the country. Examples: Advertisements of regional newspapers where these newspapers are circulated. Eg. The Assam Tribune (only for the NE region) etc.

classification OF ADVERTISING Classification based on targeted markets Consumer product advertising This is done to impress the ultimate consumer. Examples: Advertisements of Intel, Kuttons (shirt), Lakme (cosmetics) etc. Industrial product advertising: This is also called Business-to-Business Advertising, - Where advertisement is directed towards the industrial customer. Advertising not very frequent as for FMCG Trade advertising This is done by the manufacturer to persuade wholesalers and retailers to sell his goods.

classification OF ADVERTISING Classification based on targeted markets Professional advertising This is executed by manufacturers/ distributors to influence professionals, and they try to reach these professionals under well-prepared programmes. Doctors, engineers, teachers, purchase professionals, civil contractors, architects are the prime targets of such manufacturers. Financial advertising: Banks, financial institutions, and corporate firms issue advertisements to collect funds from markets. e.g. SBI 9.75% Infrastructure Bonds for mobilizing funds

TYPES OF ADVERTISING Digital advertising Television advertising / Music in advertising The TV commercial is generally considered the most effective mass-market advertising format. Relatively more expensive An infomercial is a long-format television commercial, typically five minutes or longer. The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through toll-free telephone number or website. E.g. TELE-SHOPPING

TYPES OF ADVERTISING Radio advertising Radio advertising is a form of advertising via the medium of radio. While radio has the obvious limitation of being restricted to sound, this medium is popular in many commercial cities where customers witnessing long car rides get reminded continuously. Online advertising Online uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, Social network advertising, online classified advertising, and e-mail marketing, including e-mail spam.

TYPES OF ADVERTISING Physical advertising Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, to more narrowly targeted media such as local newspapers/ trade journals. A form of press advertising is classified advertising,. Billboard advertising: Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. E.g. Airlines, Real Estate Firms, Consumer Products, etc

TYPES OF ADVERTISING In-store advertising In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, and advertisements in places as shopping carts, in-store video displays. Coffee cup/ Momento advertising Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed out of café, or drive-through coffee shop. This form of advertising is popular in USA, Europe, Australia, etc

TYPES OF ADVERTISING Celebrity branding/ Endorsements Advertisers often advertise their products - when celebrities share their favorite products or wear clothes of specific brands. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise products. May be dangerous – if mistake by a celebrity is detrimental to the Brand Image. e.g. AbhishekBachan – IDEA Shah Rukh Khan – DISH TV Parker Pen – AmitabhBachan EPSI – Cricket Sportstars

TYPES OF ADVERTISING Word of Mouth Advertising While some argue that word of mouth is not advertising because it's free, this form of promotion is one of the most credible and priceless assets of any business. Great option for creating referrals and expanding customer base. e.g. HOTELS, EDUCATION CENTRE, AIRLINES, HOSPITALS, MOVIES FOOD PRODUCTS, ELECTRONIC GOODS

SOCIAL IMPACT OF ADVERTISING Advertising has positive as well as negative social/economic impacts on society. Assorted techniques are enforced for persuading consumers that they want the product which is being advertised. These techniques usually give attention to the benefits to the consumers rather than focusing on the actual products. There are various blames that advertising is causing a negative social impact on the lives. The unfavorable judgment for advertising is that it hales the public to buy things that they go not really want.

SOCIAL IMPACT OF ADVERTISING Advertisers also think that there are positive impacts of advertising. For example, it can be used to generate awareness about which product is OK and which one public should say NO. It educates people about what is good and puts a ceiling on the harmful products like smoking and drinking etc. There are not only social benefits of advertising, but also some economic advantages. Without advertising, the media, including newspapers, television and radio would never be financially strong.

SOCIAL IMPACT OF ADVERTISING The major economic negative aspect of advertising is that it boosts the price of goods and services. The source of this contention is that, when organizations subsidize the mass media with advertising, we, the purchaser, subsidize advertising by compensating a grossly increased price for heavily advertised goods and services. E.g. FMCG, Consumer Durables, Food Products, etc

Positive effects OF ADVERTISING The positive side of advertising is that it makes you aware that a product/service is available. New & improved products are developed continuously and public cannot keep track of these developments. Therefore, constant reminders necessary for inducing customers to purchase.

Positive effects OF ADVERTISING Advertisement may convey the following messages: Better and cheaper than the competitor's product easier to use than the competitor's product More prestige value than any similar product Lasts longer the competitor's product it's made of superior parts or ingredients it's healthier for you it's stronger, faster acting, etc

Positive effects OF ADVERTISING Advertisements are useful because they keep us up to date on the improvement of existing products and the creation of new ones. This is all very good as long as the message given is true in real life. Unfortunately many advertisements,, tell us a product or service is good only to find out after purchase that it is not good at all. This is definitely not good. Therefore, reputation is key for building TRUST & CONFIDENCE

Negative effects OF ADVERTISING After sale we may discover that the ad failed to inform us about any or all of the following: Made of substandard materials Tastes bad and is made from leftovers and rejected materials Far too expensive and should cost 10% of what it does Some ingredients or additives such as preservatives, colorings, etc. have been banned in your country due to adverse impact on health

Medium OF ADVERTISING Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, human billboards, magazines, newspapers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, Musical stage shows, subway platforms and trains, elastic bands on disposable diapers,doors of bathroom stalls,stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

Advertising MANAGEMENT