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Chapter 5 - Advertising Management

Advertising is defined as a paid, non-personal promotion of ideas, goods, and services through mass media by an identified sponsor. It serves various functions such as informing, persuading, and reminding consumers, and can be classified based on target audience, product type, and objectives. The advertising management process includes setting objectives, budgeting, creating messages, and selecting media, with effectiveness evaluated through communication and sales impact.

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29 views33 pages

Chapter 5 - Advertising Management

Advertising is defined as a paid, non-personal promotion of ideas, goods, and services through mass media by an identified sponsor. It serves various functions such as informing, persuading, and reminding consumers, and can be classified based on target audience, product type, and objectives. The advertising management process includes setting objectives, budgeting, creating messages, and selecting media, with effectiveness evaluated through communication and sales impact.

Uploaded by

Armie Landrito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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ADVERTISING

“The means of providing the most persuasive possible selling


message to the right prospects at the lowest possible cost".

Kotler and Armstrong provide an alternative definition:-

"Advertising is any paid form of non-personal presentation and


promotion of ideas, goods and services through mass media
such as newspapers, magazines, television or radio by an
identified sponsor".
Nature of Advertising
• A persuasive message.
• Carried by a non-personal medium.
• Paid for by an identified sponsor.
• One way communication.
• Supports other promotional efforts.

• MESSAGE MEDIUM ADVERTISING


Persuasive message
Characteristics of Advertising
Advertising
Advertising
Communication
CommunicationMode
Mode Indirect
Indirectand
andnon-personal
non-personal
Communication
CommunicationControl
Control Low
Low
Feedback
FeedbackAmount
Amount Little
Little
Feedback
FeedbackSpeed
Speed Delayed
Delayed
Message
MessageFlow
FlowDirection
Direction One-way
One-way
Message
MessageContent
ContentControl
Control Yes
Yes
Sponsor
SponsorIdentification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Fast
Fast
Message
MessageFlexibility
Flexibility Same
Samemessage
messageto
toall
allaudiences
audiences

6
5 M’s of advertising:

MONEY

MISSION MESSAGE

5 M’s

MEASURE
MENT
MEDIA
Advertising communication process

A manufacturer ,retailer or service organisation.

Prepared by an ad agency using artwork, music etc

Newspapers, TV, radio, magazines etc.

Decoding and adoption of the message depending on the attitudes,

values, experiences etc.

Specific market audience with geographical, demographical and


psychological characteristics.
Advertising Functions
Informing

Persuading

Reminding

Adding Value

Assisting Other Company Efforts 9


9
Classification of Advertising
• Can classify it by:
– The target audience: consumers or
businesses

– Product/service vs. organization/company

– Objective: Primary or selective demand

20 - 11
Advertising to
Target Audiences
• Consumer advertising generally appears in
mass media and is directed to end
consumers: may be product or institutional
in nature.

• Business-to-business advertising is often


called trade advertising and is directed to a
business market.

20 - 12
What is Being Advertised?
• Product advertising is designed to promote the sale of a
specific product or service:
– may be direct-action,
direct-action quick-response
– may be indirect-action over a longer time

• Institutional advertising promotes the firm or tries to


create a positive image:
– may promote customer service
– or send a public service message
Examples-Reliance and kalbe pharma

20 - 13
What are the Objectives?
• Primary-demand advertising is intended to
stimulate use of a category of products.
• Selective-demand advertising is intended to
encourage purchase of a particular brand
or the products and services of a specific
firm.

20 - 14
Comparative Advertising
• Selective-demand advertising
• Involves comparing a product to its competing
brand
• May be:
– Direct, naming competitors outright
– Less direct, alluding to competitors (e.g., “leading
brand”, “Brand X”) but not naming them

20 - 15
Public service advertising
It is directed at the social welfare of
the community or nation.
The Advertising Management Process

Advertising Strategy
• Setting Objectives
•Formulating Budgets
•Creating Ad messages
•Selecting Ad Media and Vehicles

Strategy Implementation

Assessing Ad Effectiveness 18
18
Budgeting Considerations
in Practice

• What is the Ad objective?


• How much are competitors spending?
• How much money is available?

20
Creating the Advertising Message
IMPAC
T
Advertising Media

Traditional
Traditional Electronic
Electronic
Advertising
Advertising Media
Media Advertising
Advertising Media
Media
 Television  Internet
 Radio  Electronic mail
 Newspapers  Interactive video
 Magazines
 Books
 Direct mail
 Billboards
 Transit cards
23
Evaluating Advertising Effectiveness and Return
on Advertising Investment

Communication effects indicate whether the ad and


media are communicating the ad message well
and should be tested before or after the ad runs

Sales and profit effects compare past sales and


profits with past expenditures or through
experiments
The STP Marketing Process
(segmenting ,Targeting, Positioning)

1. Break the broad market into smaller, more


homogenous segments

2. Specifically target discrete market segments

3. Position the brand to appeal to the targeted


segments

PPT 6-5 25
Promotional Mix

Combination of promotion tools


used to reach the target market
and fulfill
Advertising
the organization’s
Public Relations
overall goals.
Sales Promotion
Personal Selling
Word-of-Mouth

26
Public Relations

The marketing function that evaluates public attitudes,


identifies areas within the organization that the public may be
interested in, and executes a program of action to earn public
understanding and acceptance.
Sales Promotion

Free
Free samples
samples

Contests
Contests

Premiums
Premiums

Trade
Trade Shows
Shows

Popular
Popular Tools
Tools Vacation
Vacation Giveaways
Giveaways
for
for
Consumer
Consumer Sales
Sales
Promotion Coupons
Coupons
Promotion 28
Personal Selling
Planned presentation to
one or more prospective buyers for the purpose
of making a sale.
What advertising can do
• Remind the target audience to buy.
• Announce a new brand or service.
• Create brand awareness.
• Stimulate impulse buying.
• Increase confidence in a brand or a company.
• Fight competition.
• Change attitudes.
Conclusion
(Key to good advertising)
The most important step lies in deciding
what advertising should say and
to whom it should say .
In all there is a need to do is to decide
who buys and uses your products and why.

In order to spend media dollars wisely, the advertiser must


know what they read or watch so that they will see your ads.

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