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ADVERTISING &SALES MANAGEMENT
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Importance of Advertising
Advertising is telling and selling
Though it is one of the several functions
of marketing, it has taken the form of anindependent discipline.
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The Meaning of Advertising
The term originates from the Latin adverto, whichmeans to turn round.
Advertising thus denotes the means employed todraw attention to any object or purpose.
It is a paid form of non personal presentation anpromotion of ideas, goods or services by anidentified sponsor.
Through advertisement, the advertiser intends to
spread his ideas about his products among thiscustomers and prospects.
Popularization is the basic aim of the advertisingactivity
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Key Components of the Advertising Job
Decide the advertising objectives to beaccomplished
Determine the target audience at whom the
message is to be aimed Decide the advertising appropriations Select the media Construct the actual advertisement in the
pretest its efficiency Coordinate the advertising effort with the rest of
the promotional Programmes
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Four Major Decision Areas
Deciding the Advertising Objectives
Deciding the Budget
Deciding the CopyDeciding the Media
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Deciding the Advertising
Objectives
Objectives are essential because it helps the marketer
know in advance what they want to achieve and it also
helps ensure that they are proceeding in the right
direction
Goals are also made real through objectives leading to
effective development of advertising Programmes for
meeting the objectives.
As Advertising became a business task it was imperative
that it was expected to yield results proportionate to theeffort and cost involved.
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Two distinct schools of
thought What should be or what could be the objectives of
advertising? One school has it that advertising must bring in more
sales and therefore advertising objectives shouldcertainly include sales growth.
The other school feels that advertising is aboutcommunication and therefore goals should be intendedto shape awareness and attitudes of consumers.
Advertising that does not sell is a waste David
Ogilvy Conflict Remains: Communicating certain ideas Vs
Direct Sales Task role
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Four Sets of
Constructs/Themes
The behavioral constructs e.g.. Trial
purchases and store visits
Attitude; Attitude change and attitudemeasurement
Awareness; creating awareness of new
products and ideas
Image creation and positioning (or
reinforcing)
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Areas of Ad Objectives
Introduction of new products in the market Expansion of the market for the existing products/brands Building a long term consumer franchise for the firm Countering Competition Reminding Customers Reassuring the customers by removing post purchase dissonance Building up brand image and company image Aiding the total selling function by taking the customer through all the
steps from awareness to purchase involved in the selling process Closing an immediate sale (Clincher ads)
Supporting other sales promotion activities Stimulating impulse buying Enthusing the channel to stock the product Supporting and supplementing the salesmans effort Supporting and supplementing the dealers selling effort
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AIDAAIDA AIDAAIDA
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works
AttentionAttention AttentionAttention
InterestInterestInterestInterest
DesireDesire
DesireDesireAction!Action!Action!Action!
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AIDA (Awareness, Interest,
Desire, Action)
The AIDA sequence is conceptualized by
Strong (1925)
Here the consumer is moved along a linearcontinuum of internal states from
unawareness to awareness
Then interest is elicited and desire (for the
brand) is aroused. Finally, the consumer is stirred into action.
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Linear Communication and the
Hierarchy of Effects
Theories reflect the methods and assumptions ofcognitive psychology.
Analogy is drawn between the information
processing of computers and that of humans These research traditions have been drawn on by
models of advertising persuasion The consumers resistance is broken by an
accumulation of advertising effects hence theexpression hierarchy of effects The consumer processes information like a
computer sequentially according to rules
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Hierarchy of Effects
The hierarchy of effect represents compounding
probabilities (Percy et al. 2001)
It is also criticized on the grounds that it conceives
of advertising consumption as an essentially dyadicprocess transmitted through a media channel to an
individual viewer and consumed in social isolation
A further criticism is that it represents only high
involvement purchases: many or most purchasesare spontaneous and do not engage consumers in
such rational processing
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Social Process Vs Emotional
Process
Ineluctably social process (Ritson and Elliot,1999) we do not generally view ads in anexperimental booth-our interpretation of them isnormally framed by the social context in whichwe encounter them.
Elliot, 1998; Holbrook and Hirschman, 1982 Subsequent models have incorporated strongerelements of consumer emotionality into the
persuasion process to reflect the often irrationaland quirky motivations behind consumerbehavior.
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Cognition
Cognition (Thinking) refers to the rational appeal ofadvertising as for example, a motor car ad which includesdata on engine performance or utility features.
The affective stage refers to the emotional response of theconsumer to an ad. Not only does the ad seek to engage
with the consumer on a rational level by emphasizingproduct benefits; it also tries to elicit a positive emotionalresponse with pleasing imagery and alluring symbolism.
Motor car ads typically feature the engine and other productdata plus a carefully shot picture of the car and itsoccupants in a pleasing setting.
The emotional response is: desire, triggered byidentification. Finally conation refers to action: thecombination of rational and emotional appeal in the same admight act persuasively and motivate a purchase response.
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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksSome things we know aboutSome things we know about people.people.Some things we know aboutSome things we know about people.people.
People read what interests them,People read what interests them,sometimes its an ad.sometimes its an ad.(Gossage)(Gossage)
People are strategicPeople are strategic - they look out for- they look out fortheir own best interests.their own best interests.
People arePeople are bombarded with messagesbombarded with messages A key concern is getting through clutterA key concern is getting through clutter
People (and advertising) work fromPeople (and advertising) work frombothboth logiclogic andand emotionemotion
People read what interests them,People read what interests them,sometimes its an ad.sometimes its an ad.(Gossage)(Gossage)
People are strategicPeople are strategic - they look out for- they look out fortheir own best interests.their own best interests.
People arePeople are bombarded with messagesbombarded with messages A key concern is getting through clutterA key concern is getting through clutter
People (and advertising) work fromPeople (and advertising) work frombothboth logiclogic andand emotionemotion
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The Linear Model of
Communication
SENDER ENCODE MESSAGE DECODE RECEIVER
NOISE
NOISE
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Limitations of Linear Model
It is easy to interpret in such a way that meaning and message are understoodto be synonymous. This risks misconstruing the interpretative possibilities.
Oversimplification of the customers cognitive engagement with advertisingby emphasizing a singular message that has one unproblematic meaning.
The advent ofparallel processing: the assumption that computers and human
brains can process one bit of data at a time as been challenged by more complexmodels The implication that explicit attention must be given to an ad is erroneous. The linear model of communication with its sequential processing translates
conveniently into a model of persuasion if these stages are replaced withattitudinal or behavioral states (AIDA). A lot of research goes on in measuringthese states as they are an indicator of the likelihood of purchase (and therefore
an indicator of success of the advertisement campaign). Thus these are necessaryconditions for advertising to achieve its marketing goals but not sufficient. Eg. Aconsumer may be aware of ad or may even like an ad but that does not mean hewill buy the product.
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The Lavidge-SteinerThe Lavidge-SteinerLearning ModelLearning Model
The Lavidge-SteinerThe Lavidge-SteinerLearning ModelLearning Model
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Begins withBegins with AwarenessAwareness Moves toMoves to ConvictionConviction
andand PurchasePurchase
Begins withBegins with AwarenessAwareness Moves toMoves to ConvictionConviction
andand PurchasePurchase
NOTE: Process may beNOTE: Process may bequite rapid and youquite rapid and youmay try before beingmay try before beingtotally convincedtotally convinced
NOTE: Process may beNOTE: Process may bequite rapid and youquite rapid and youmay try before beingmay try before beingtotally convincedtotally convinced
How people learn adsHow people learn ads How people learn adsHow people learn ads
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Key ConceptsThe Single Biggest Thing: Advertising dollarsAdvertising dollars have greathave greatelasticityelasticity Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising
is usually critical for success in the marketplaceis usually critical for success in the marketplace
The Wrong AdvertisingThe Wrong Advertisingis usually worthlessis usually worthless
AdvertisingAdvertising can becan be The Single Biggest ThingThe Single Biggest Thing It can probably impact salesIt can probably impact sales more than any othermore than any other
element of the marketing mixelement of the marketing mix.. And it isAnd it is the most fun!the most fun!
Advertising dollarsAdvertising dollars have greathave greatelasticityelasticity Planning and implementingPlanning and implementing the Right Advertisingthe Right Advertising
is usually critical for success in the marketplaceis usually critical for success in the marketplace
The Wrong AdvertisingThe Wrong Advertisingis usually worthlessis usually worthless
AdvertisingAdvertising can becan be The Single Biggest ThingThe Single Biggest Thing It can probably impact salesIt can probably impact sales more than any othermore than any other
element of the marketing mixelement of the marketing mix.. And it isAnd it is the most fun!the most fun!
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Key ConceptsThe Single Biggest Thing Advertising isAdvertising isjust a partjust a part ofofThe Five PsThe Five Ps All of IMC is importantAll of IMC is important However...However... Advertising dollarsAdvertising dollars are...are...
Often,Often, the biggest itemthe biggest item in the marketing budgetin the marketing budget The most visible partThe most visible part of marketing spendingof marketing spending
The most controllableThe most controllable marketing activitymarketing activity Advertising is oftenAdvertising is often the tail that wags thethe tail that wags the
marketing dogmarketing dog
Advertising isAdvertising isjust a partjust a part ofofThe Five PsThe Five Ps All of IMC is importantAll of IMC is important However...However... Advertising dollarsAdvertising dollars are...are...
Often,Often, the biggest itemthe biggest item in the marketing budgetin the marketing budget The most visible partThe most visible part of marketing spendingof marketing spending The most controllableThe most controllable marketing activitymarketing activity
Advertising is oftenAdvertising is often the tail that wags thethe tail that wags themarketing dogmarketing dog
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Key ConceptsCampaigns:
Origin of termOrigin of term
Military CampaignsMilitary Campaigns
Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns
Origin of termOrigin of term
Military CampaignsMilitary Campaigns
Political CampaignsPolitical Campaigns Advertising CampaignsAdvertising Campaigns
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Key ConceptsCampaigns:
Origin of termOrigin of term Origin of termOrigin of term Fr. campagne, It. campagna - open country
suited to military maneuvers Campaign - a series of military operations with
a particular objective in a war
Campaign - a series of organized planned
actions with a particular purpose, as forelecting a candidate.
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Key ConceptsCampaigns:
Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns
Victory is myVictory is myobjectiveobjective..War is myWar is mystrategystrategy..
WinstonWinstonChurchillChurchill
Victory is myVictory is myobjectiveobjective..War is myWar is mystrategystrategy..
WinstonWinstonChurchillChurchill
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Key ConceptsCampaigns:
Military CampaignsMilitary Campaigns Military CampaignsMilitary Campaigns
a series of military operations with a particular
objective in a war Advertising and marketing use both
the language and the military
mindset
Example: a very popularmarketing book
a series of military operations with a particular
objective in a war Advertising and marketing use both
the language and the military
mindset
Example: a very popularmarketing book
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Key ConceptsCampaigns:
Political CampaignsPolitical Campaigns Political CampaignsPolitical Campaigns
Each single geographic orEach single geographic or
statewide campaign may havestatewide campaign may have
its ownits own objectives andobjectives and
strategiesstrategies which contributewhich contribute
to the overall campaign.to the overall campaign.
Each single geographic orEach single geographic or
statewide campaign may havestatewide campaign may have
its ownits own objectives andobjectives and
strategiesstrategies which contributewhich contribute
to the overall campaign.to the overall campaign.
In politics, as in war, you haveIn politics, as in war, you have
toto pick your battlespick your battles. National. National
political campaigns focus onpolitical campaigns focus on
key states and voter groupskey states and voter groups..
In politics, as in war, you haveIn politics, as in war, you have
toto pick your battlespick your battles. National. National
political campaigns focus onpolitical campaigns focus on
key states and voter groupskey states and voter groups.. The objectiveThe objective is a majorityis a majority
in the Electoral College.in the Electoral College.
The objectiveThe objective is a majorityis a majority
in the Electoral College.in the Electoral College.
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Key ConceptsCampaigns:
Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns
AdvertisingAdvertisingis a team sport!is a team sport!AdvertisingAdvertising
is a team sport!is a team sport!
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Key ConceptsCampaigns:
Advertising CampaignsAdvertising Campaigns Advertising CampaignsAdvertising Campaigns
Structured andStructured andsequentialsequentialactivitiesactivities
An imaginativeAn imaginativere-integration ofre-integration of
new and existingnew and existingfactorsfactors Shared objectivesShared objectives
and strategiesand strategies
Structured andStructured andsequentialsequentialactivitiesactivities
An imaginativeAn imaginativere-integration ofre-integration of
new and existingnew and existingfactorsfactors Shared objectivesShared objectives
and strategiesand strategies
A team effortA team effort A team effortA team effort
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Key ConceptsNext, well show you four billboard ads fora telecom company in Kansas City - BirchTelecom
Then, well discuss some of the basic
common elements needed in an
advertising campaign
Heres the first ad...
Advertising Campaign:
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Key Concepts
Advertising Campaign:
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Key Concepts
Advertising Campaign:
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Key Concepts
Advertising Campaign:
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Key Concepts
Advertising Campaign:
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What were the common elements?What were the common elements?
1. ____________________________1. ____________________________
2. ____________________________2. ____________________________3. ____________________________3. ____________________________
4. ____________________________4. ____________________________
5. ____________________________5. ____________________________
6. ____________________________6. ____________________________
What were the common elements?What were the common elements?
1. ____________________________1. ____________________________
2. ____________________________2. ____________________________3. ____________________________3. ____________________________
4. ____________________________4. ____________________________
5. ____________________________5. ____________________________
6. ____________________________6. ____________________________
Key Concepts
Advertising Campaign:
graphic look
strategic messagebenefit statement
brand personality
executional elements - the dog
anything else?
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Campaigns are built withCampaigns are built with Campaigns are built withCampaigns are built withKey Concepts
Advertising Campaign:
Plans & StrategiesPlans & StrategiesPlans & StrategiesPlans & Strategies
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Key ConceptsPlans & Strategies:
Organized Actions andOrganized Actions and
Imaginative ReintegrationImaginative Reintegration
Plans & Strategies are a combination of:Plans & Strategies are a combination of: Tightly organized planned actionsTightly organized planned actions Unique strategic configurationsUnique strategic configurations
Plans may contain strategiesPlans may contain strategies Strategies need plans to be implementedStrategies need plans to be implemented
Organized Actions andOrganized Actions and
Imaginative ReintegrationImaginative Reintegration
Plans & Strategies are a combination of:Plans & Strategies are a combination of: Tightly organized planned actionsTightly organized planned actions Unique strategic configurationsUnique strategic configurations
Plans may contain strategiesPlans may contain strategies Strategies need plans to be implementedStrategies need plans to be implemented
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Key ConceptsPlans & Strategies:
Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)
In business as on the battlefield, the object ofIn business as on the battlefield, the object of
strategystrategyis to bring about the conditions most favorableis to bring about the conditions most favorable to ones own side.to ones own side.
In strategic thinking ,In strategic thinking ,
one first seeks a clear understandingone first seeks a clear understandingof the particular character of each element of aof the particular character of each element of a
situation,situation,
and then makes the fullest possible useand then makes the fullest possible use
of human brainpower to restructure the elementsof human brainpower to restructure the elements
In business as on the battlefield, the object ofIn business as on the battlefield, the object of
strategystrategy
is to bring about the conditions most favorableis to bring about the conditions most favorable to ones own side.to ones own side.
In strategic thinking ,In strategic thinking ,
one first seeks a clear understandingone first seeks a clear understandingof the particular character of each element of aof the particular character of each element of a
situation,situation,
and then makes the fullest possible useand then makes the fullest possible use
of human brainpower to restructure the elementsof human brainpower to restructure the elementsin the most advanta eous wa .
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Key ConceptsPlans & Strategies:
Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)
Phenomena and events in the real worldPhenomena and events in the real world
do not always fit a linear model.do not always fit a linear model.Hence, the most reliable means of dissecting aHence, the most reliable means of dissecting a
situationsituation
into its constituent parts and then reassembling theminto its constituent parts and then reassembling them
in the desired pattern is not a step-by-stepin the desired pattern is not a step-by-stepmethodology such as systems analysis.methodology such as systems analysis.
Rather, it isRather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinkingtool,,the human brain.the human brain.
Phenomena and events in the real worldPhenomena and events in the real world
do not always fit a linear model.do not always fit a linear model.
Hence, the most reliable means of dissecting aHence, the most reliable means of dissecting a
situationsituation
into its constituent parts and then reassembling theminto its constituent parts and then reassembling them
in the desired pattern is not a step-by-stepin the desired pattern is not a step-by-stepmethodology such as systems analysis.methodology such as systems analysis.
Rather, it isRather, it is that ultimate non-linear thinking toolthat ultimate non-linear thinkingtool,,the human brain.the human brain.
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Key ConceptsPlans & Strategies: Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan) Kenichi Ohmae (head of McKinsey Japan)Kenichi Ohmae (head of McKinsey Japan)
No matter how difficult or unprecedented theNo matter how difficult or unprecedented the
problem,problem,a breakthrough to the best possible solutiona breakthrough to the best possible solution
can come only from a combination of rational analysiscan come only from a combination of rational analysis
based on the real nature of things,based on the real nature of things,
andandimaginative reintegrationimaginative reintegration
of all the different items into a new patternof all the different items into a new pattern
No matter how difficult or unprecedented theNo matter how difficult or unprecedented the
problem,problem,
a breakthrough to the best possible solutiona breakthrough to the best possible solution
can come only from a combination of rational analysiscan come only from a combination of rational analysis
based on the real nature of things,based on the real nature of things,
andandimaginative reintegrationimaginative reintegration
of all the different items into a new patternof all the different items into a new pattern
usingusingnonlinear brainnonlinear brain
powerpower
.
usingusingnonlinear brainnonlinear brain
powerpower
.
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Key ConceptsPlans & Strategies: Now lets talk about PlansNow lets talk about Plans Marketing Plans are written:Marketing Plans are written:
By the AdvertisersBy the Advertisers By their Advertising AgenciesBy their Advertising Agencies
Creative Plans may be called:Creative Plans may be called: Creative strategiesCreative strategies Creative blueprintsCreative blueprints Creative platformsCreative platforms
Creative briefsCreative briefs And sometimes the word communicationAnd sometimes the word communication replacesreplaces
the word creativethe word creative
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Key ConceptsPlans & Strategies: Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have StrategiesMarketing Plans may also have Strategies
and Plans for Sales Promotion and PRand Plans for Sales Promotion and PR
The Campaign will also haveThe Campaign will also have A Media Strategy - andA Media Strategy - and A Media PlanA Media Plan
Media Departments write Media PlansMedia Departments write Media Plans The Advertising Strategy determines theThe Advertising Strategy determines the
Creative Objective and the Media ObjectiveCreative Objective and the Media Objective
Plans contain Strategies and vice versaPlans contain Strategies and vice versa Marketing Plans may also have StrategiesMarketing Plans may also have Strategies
and Plans for Sales Promotion and PRand Plans for Sales Promotion and PR
The Campaign will also haveThe Campaign will also have A Media Strategy - andA Media Strategy - and A Media PlanA Media Plan Media Departments write Media PlansMedia Departments write Media Plans
The Advertising Strategy determines theThe Advertising Strategy determines theCreative Objective and the Media ObjectiveCreative Objective and the Media Objective
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Key ConceptsPlans & Strategies: Heres a graphic representationHeres a graphic representation Heres a graphic representationHeres a graphic representation
Media StrategyTo be determined
Creative StrategyTo be determined
Market Strategy/MediaTarget audience W 18-49
Market Strategy/CreativeEstablish brand as superior
Media Objective
Deliver Advertising toTarget audience W 18-49
Creative Objective
Establish brand as superior
Marketing ObjectiveSell one million of product
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Key ConceptsPlans & Strategies: Whos going to manage all of this?Whos going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing
Responsible for MarketingResponsible for Marketing
Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget
Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients
At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans
Whos going to manage all of this?Whos going to manage all of this? At the client, Director of MarketingAt the client, Director of Marketing
Responsible for MarketingResponsible for Marketing Usually sets Marketing Objective and BudgetUsually sets Marketing Objective and Budget
Agency is responsible for AdvertisingAgency is responsible for Advertising Good agencies seek to do this work for their clientsGood agencies seek to do this work for their clients
At the agency, Account Managers:At the agency, Account Managers: They are the link to the clientThey are the link to the client They develop strategy - or lead developmentThey develop strategy - or lead development They manage the resources of the agencyThey manage the resources of the agency and, very often, they write the Plansand, very often, they write the Plans
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Key ConceptsPlans & Strategies: Agencies turn strategies into ideasAgencies turn strategies into ideas
And they turn those ideas into adsAnd they turn those ideas into ads Creative people actually make the adsCreative people actually make the ads
Copywriters and art directorsCopywriters and art directors Agencies turn plans into campaignsAgencies turn plans into campaigns
Clients and account management determine needs andClients and account management determine needs and
budgetsbudgets
Media departments turn budgets and strategies into MediaMedia departments turn budgets and strategies into MediaPlansPlans
Agencies turn strategies into ideasAgencies turn strategies into ideas
And they turn those ideas into adsAnd they turn those ideas into ads Creative people actually make the adsCreative people actually make the ads
Copywriters and art directorsCopywriters and art directors Agencies turn plans into campaignsAgencies turn plans into campaigns
Clients and account management determine needs andClients and account management determine needs and
budgetsbudgets
Media departments turn budgets and strategies into MediaMedia departments turn budgets and strategies into MediaPlansPlans
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Key ConceptsPlans & Strategies:Plans & Strategies:Plans & Strategies:Plans & Strategies: To make plans and strategies work, a lot ofTo make plans and strategies work, a lot of
people have to work together.people have to work together.
And that means they have to speakAnd that means they have to speak
To make plans and strategies work, a lot ofTo make plans and strategies work, a lot of
people have to work together.people have to work together.
And that means they have to speakAnd that means they have to speak
The sameThe same
language!language!The sameThe same
language!language!
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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: The Language of Marketing & AdvertisingThe Language of Marketing & Advertising The Language of Marketing & AdvertisingThe Language of Marketing & Advertising
Original conceptsOriginal concepts came fromcame from militarymilitary
Now the business of marketing has itsNow the business of marketing has itsownown intellectual infrastructureintellectual infrastructure - a way of- a way of
thinking and a way of talkingthinking and a way of talking
UnderstandingUnderstanding
thethe
specific meaningsspecific meanings
ofof
keykey
wordswords andand conceptsconcepts isis criticalcritical
Yes, it will be on the test!Yes, it will be on the test!
Original conceptsOriginal concepts came fromcame from militarymilitary
Now the business of marketing has itsNow the business of marketing has itsownown intellectual infrastructureintellectual infrastructure - a way of- a way of
thinking and a way of talkingthinking and a way of talking
UnderstandingUnderstanding thethe specific meaningsspecific meanings ofofkeykey
wordswords andand conceptsconcepts isis criticalcritical
Yes, it will be on the test!Yes, it will be on the test!
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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Mission:Mission: Overall goals & valuesOverall goals & values youryour
reason for beingreason for being Objective:Objective: WhatWhat you want to accomplishyou want to accomplish..
Strategy:Strategy: HowHow you are going to do it.you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be
specific action that helps meet strategicspecific action that helps meet strategicgoals - tactics should begoals - tactics should be on strategy.on strategy.))
Mission:Mission: Overall goals & valuesOverall goals & values youryourreason for beingreason for being
Objective:Objective: WhatWhat you want to accomplishyou want to accomplish..
Strategy:Strategy: HowHow you are going to do it.you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be
specific action that helps meet strategicspecific action that helps meet strategicgoals - tactics should begoals - tactics should be on strategy.on strategy.))
Remember,Remember, objectives first, thenobjectives first, thenstrategy. (If you dont know wherestrategy. (If you dont know whereyoure going, any road will take youyoure going, any road will take you
there.)there.)
Remember,Remember, objectives first, thenobjectives first, thenstrategy. (If you dont know wherestrategy. (If you dont know whereyoure going, any road will take youyoure going, any road will take you
there.)there.)
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RememberRememberthe acronymthe acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics
RememberRememberthe acronymthe acronym M.O.S.T.M.O.S.T.Mission, Objective, Strategy, TacticsMission, Objective, Strategy, Tactics
Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Mission:Mission: Overall goals & valuesOverall goals & values youryour
reason for beingreason for being Objective:Objective: What you want to accomplishWhat you want to accomplish..
Strategy:Strategy: How you are going to do it.How you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be
specific action that helps meet strategicspecific action that helps meet strategicgoals - tactics should begoals - tactics should be on strategy.on strategy.))
Mission:Mission: Overall goals & valuesOverall goals & values youryourreason for beingreason for being
Objective:Objective: What you want to accomplishWhat you want to accomplish..
Strategy:Strategy: How you are going to do it.How you are going to do it. Tactic:Tactic: Specific action. (Should beSpecific action. (Should be
specific action that helps meet strategicspecific action that helps meet strategicgoals - tactics should begoals - tactics should be on strategy.on strategy.))
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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: The Value Ladder
Consumer Benefit
Product Benefit
FeatureAttribute
Benefit
Value
The Value Ladder
Kids like it
Easy to serve
E-Z Open glass jar
Good food for my family
Im a good mom
Apple sauce is madefrom apples
Laddering
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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some More Important WordsSome More Important Words Some More Important WordsSome More Important Words Target audience -Target audience - person or group toperson or group to
whom advertising is directedwhom advertising is directed Primary target -Primary target - the target audiencethe target audience Secondary target -Secondary target - usually, the tradeusually, the trade
Demographics -Demographics - statistical description ofstatistical description of
target audiencetarget audience Psychographics -Psychographics - psychological traits ofpsychological traits of
target audiencetarget audience
Target audience -Target audience - person or group toperson or group towhom advertising is directedwhom advertising is directed Primary target -Primary target - the target audiencethe target audience Secondary target -Secondary target - usually, the tradeusually, the trade
Demographics -Demographics - statistical description ofstatistical description of
target audiencetarget audience Psychographics -Psychographics - psychological traits ofpsychological traits of
target audiencetarget audience
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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some More Important WordsSome More Important Words Some More Important WordsSome More Important Words Sales Promotion -Sales Promotion - use of incentives (a smalluse of incentives (a small
bribe) to develop or stimulate salesbribe) to develop or stimulate sales Public Relations (PR)Public Relations (PR) - publicity through- publicity through
non-paid medianon-paid media Publics -Publics - a PR version of target audiencea PR version of target audience
Situation Analysis -Situation Analysis -
beginning section of planbeginning section of plan
where current situation is evaluatedwhere current situation is evaluated SWOT Analysis -SWOT Analysis - Strengths, Weaknesses,Strengths, Weaknesses,
Opportunities, and ThreatsOpportunities, and Threats
Sales Promotion -Sales Promotion - use of incentives (a smalluse of incentives (a smallbribe) to develop or stimulate salesbribe) to develop or stimulate sales
Public Relations (PR)Public Relations (PR) - publicity through- publicity throughnon-paid medianon-paid media Publics -Publics - a PR version of target audiencea PR version of target audience
Situation Analysis -Situation Analysis -
beginning section of planbeginning section of plan
where current situation is evaluatedwhere current situation is evaluated SWOT Analysis -SWOT Analysis - Strengths, Weaknesses,Strengths, Weaknesses,
Opportunities, and ThreatsOpportunities, and Threats
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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some Important Media WordsSome Important Media Words Some Important Media WordsSome Important Media Words Reach -Reach - percentage of the audience exposedpercentage of the audience exposed
to an advertising messageto an advertising message FrequencyFrequency - average number of times- average number of times
audience has had the opportunity to see theaudience has had the opportunity to see themessagemessage
GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the- the sum of theratings points (a point is one percent of theratings points (a point is one percent of theaudience)audience)
TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset,- this is a subset,measuring rating points for the target groupmeasuring rating points for the target group
Reach -Reach - percentage of the audience exposedpercentage of the audience exposedto an advertising messageto an advertising message
FrequencyFrequency - average number of times- average number of timesaudience has had the opportunity to see theaudience has had the opportunity to see themessagemessage
GRPs (Gross Rating Points)GRPs (Gross Rating Points) - the sum of the- the sum of theratings points (a point is one percent of theratings points (a point is one percent of theaudience)audience)
TRPs (Target Rating Points)TRPs (Target Rating Points) - this is a subset,- this is a subset,measuring rating points for the target groupmeasuring rating points for the target group
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Key ConceptsVocabulary:Vocabulary:Vocabulary:Vocabulary: Some More Important Media WordsSome More Important Media Words Some More Important Media WordsSome More Important Media Words CPM (Cost per thousand) -CPM (Cost per thousand) - how much it costshow much it costs
to reach a thousand people (the M is theto reach a thousand people (the M is theRoman numeral for a thousand)Roman numeral for a thousand)
CPP (Cost per point)CPP (Cost per point) - how much it costs to- how much it costs tobuy a point of the broadcast audiencebuy a point of the broadcast audience
ShareShare - percentage of an audience tuned to a- percentage of an audience tuned to aspecific stationspecific station
CPM (Cost per thousand) -CPM (Cost per thousand) - how much it costshow much it coststo reach a thousand people (the M is theto reach a thousand people (the M is the
Roman numeral for a thousand)Roman numeral for a thousand) CPP (Cost per point)CPP (Cost per point) - how much it costs to- how much it costs to
buy a point of the broadcast audiencebuy a point of the broadcast audience ShareShare - percentage of an audience tuned to a- percentage of an audience tuned to a
specific stationspecific station
OK, now that we know how to talk aboutOK, now that we know how to talk aboutadvertising, lets talk aboutadvertising, lets talk about how it workshow it works
OK, now that we know how to talk aboutOK, now that we know how to talk aboutadvertising, lets talk aboutadvertising, lets talk about how it workshow it works
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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksLets talk aboutLets talk about how advertisinghow advertising
works.works. Next, well cover...Next, well cover...
Lets talk aboutLets talk about how advertisinghow advertising
works.works. Next, well cover...Next, well cover...
Some things we know aboutSome things we know about peoplepeopleSome things we know aboutSome things we know about
advertising messagesadvertising messages
The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model AIDAAIDA
Some things we know aboutSome things we know about peoplepeopleSome things we know aboutSome things we know about
advertising messagesadvertising messages
The Lavidge-Steiner Learning ModelThe Lavidge-Steiner Learning Model AIDAAIDA
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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksSome things we know aboutSome things we know about people.people.Some things we know aboutSome things we know about people.people.
People read what interests them,People read what interests them,sometimes its an ad.sometimes its an ad.(Gossage)(Gossage)
People are strategicPeople are strategic - they look out for- they look out fortheir own best interests.their own best interests.
People arePeople are bombarded with messagesbombarded with messages
A key concern is getting through clutterA key concern is getting through clutterPeople (and advertising) work fromPeople (and advertising) work from
bothboth logiclogic andand emotionemotion
People read what interests them,People read what interests them,sometimes its an ad.sometimes its an ad.(Gossage)(Gossage)
People are strategicPeople are strategic - they look out for- they look out fortheir own best interests.their own best interests.
People arePeople are bombarded with messagesbombarded with messages
A key concern is getting through clutterA key concern is getting through clutterPeople (and advertising) work fromPeople (and advertising) work from
bothboth logiclogic andand emotionemotion
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AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising WorksSome things we know aboutSome things we know about
AdvertisingAdvertising
Some things we know aboutSome things we know about
AdvertisingAdvertisingBrandingBranding andand AdvertisingAdvertising
BrandingBranding = overall brand equity building= overall brand equity building AdvertisingAdvertising = specific messages and goals= specific messages and goals
AdvertisingAdvertising contributes tocontributes to BrandingBranding
AdvertisingAdvertising is concerned with:is concerned with: The Advertising MessageThe Advertising Message Media PlanningMedia Planning andand PlacementPlacement
BrandingBranding andand AdvertisingAdvertising
BrandingBranding = overall brand equity building= overall brand equity building AdvertisingAdvertising = specific messages and goals= specific messages and goals
AdvertisingAdvertising contributes tocontributes to BrandingBranding
AdvertisingAdvertising is concerned with:is concerned with: The Advertising MessageThe Advertising Message Media PlanningMedia Planning andand PlacementPlacement
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AnAn Advertising Communication ModelAdvertising Communication Model AnAn Advertising Communication ModelAdvertising Communication Model
AdvertisingHow Advertising WorksHow Advertising WorksHow Advertising WorksHow Advertising Works
Feedback
MESSAGE
Advertising Communication Model
Advertiser
Sender(Encoder)
Audience
Receiver(Decoder)
Note it isNote it is more difficult for the audience tomore difficult for the audience tocommunicate backcommunicate back to the advertiser.to the advertiser. FeedbackFeedback is one purpose ofis one purpose ofMarket ResearchMarket Research
Note it isNote it is more difficult for the audience tomore difficult for the audience tocommunicate backcommunicate back to the advertiser.to the advertiser. FeedbackFeedback is one purpose ofis one purpose ofMarket ResearchMarket Research
Some things we know aboutSome things we know aboutAdvertisingAdvertising
Some things we know aboutSome things we know aboutAdvertisingAdvertising
Deciding the Advertising Budget
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g g g(how much should a company
spend?)
No Standard Formula or Norm
Varies from industry to industry
Varies from company to companyVaries from company to company within same
industry
Varies within same company over time
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General Practices in Budgeting
Competitive Parity (Competitor Standards)
Affordability (Small Firms)
Fixed Percentage of Turnover (1-2% ofturnover; ignores varying requirements of
advertising effort at various stages of PLC)
Based on Functions to be
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Based on Functions to be
performed
Advertising Objectives are Pinpointed
Their role in achieving the overall marketing
objectives is decided
Advertising appropriations are decided on a
market to market, product to product and
brand to brand basis
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Regression equation The regression equation deals with the following variables:
The unknown parameters denoted as . This may be a scalar or a vector of length k. The independent variables, X. The dependent variable, Y.
Regression equation is a function of variables X and .
Y = f (X, ) The user of regression analysis must make an intelligent guess about this function. Sometimes the form of
this function is known, sometimes he or she must apply a trial and error process. Assume now that the vector of unknown parameters, is of length k. In order to perform a regression analysis
the user must provide information about the dependent variable Y: If the user performs the measurement Ntimes, where N< k, regression analysis cannot be performed: there
is not provided enough information to do so. If the user performs Nindependent measurements, where N= k, then the problem reduces to solving a set of
Nequations with Nunknowns . If, on the other hand, the user provides results ofNindependent measurements, where N> k, regression
analysis can be performed. Such a system is also called an overdetermined system;
Regression coefficient - when the regression line is linear (y = ax + b) the regressioncoefficient is the constant (a) that represents the rate of change of one variable (y) asa function of changes in the other (x); it is the slope of the regression line
Regression Analysis
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Regression Analysis
Based on historical data
Time Series Data: Records of past advertising expenditures and salesover time
Cross Sectional Data: Records of advertising expenditure and salesfor a specific period over different markets
Most firms using Regression Analysis go for Time Series Data
The aim is to predict dependent variable-sale or market share
The advertising expenditure level would be one of independentvariables.
The regression coefficient corresponding to the advertising variableserves as a measure of the short term response to advertising. it is theslope of the regression line
The Adaptive Control Model
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The Adaptive Control Model
The model recognizes that the budget decisions need updating
because the relationship between the advertising and sales
changes over time with changes in market conditions.
This model starts with a sales response curve and locates an
optimal level of ad expenditure. The firm will now experiment with non optimal levels in select
test markets. This is done to get more knowledge about the
sales response curve set originally.
The new information therefore coming out of experimental
marketing is added to the sales response function for arriving atcurrent optimal advertising expenditure rate.
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The Compromise
A compromise budget is arrived at after considering thebasic questions:
What is the audience to be reached by advertising? What is its size, location etc?
What are the media available for delivering the advertisingmessage?
Of the available media which media or media combinationare likely to most cost effective?
What are the features of the proposed campaign? Does thecampaign involve single release of an advertisement or
repeat releases? What is the releases proposed?
Therefore, the Advertising Budget is a function of: AdvertisingObjectives, Media Decisions and Copy Decisions
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Deciding the Copy/Layout
Copy:
Written Matter
Pictures
Labels
Logo Design
Copy is synonymous with layout
Copy development has become the task of professional advertisingagencies;
however copy development becomes successful only when there is closeinteraction between the advertiser and the agency
Main Steps in Copy
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Main Steps in Copy
Development
Facts Finding Stage
What is the central issue to be tackled? What is the issue to which the total campaign has to
address itself? What are the overall communication objectives? What is the specific communication objective of the
proposed campaign?
Advertiser and the agency have to work out literally together The agency becomes an insider as far as the advertiser is
concerned. The agency gathers and analyses all pertinent data to come to
grip with the problem and to decide the course to be taken
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Idea Finding Stage
Tentative ideas are developed under different idea heads. They are further processed, developed and screened. The less promising ones are eliminated. To develop ideas different routes are adopted. Interviewing a selected
sample of target audience is a route normally taken for eliciting ideas.
Sometimes the agencies also attempt to focus on group interviewingand brainstorming. All processes are aids to get access to some creative ideas on which
the ad man can work further. He has to further develop the theme andtotal advertisement story.
He has to decide: kind of source for conveying message, frame
message, its style and structure. He normally the ad man/agency comes up with a number of copy
alternatives and places them before the advertiser. The copies are normally tested in selected segments of market before
final decision on choice of copy is made.
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The Main elements of a copy
Message Message Structure
Message Sidedness (One side argument or two side argument) Order of Presentation Climax Order (Strong points are placed at the end-applies to high interest material); Anti-
Climax (Strong points placed at the beginning-applies to low interest material); PyramidalOrder (important points presented at the middle-effect is least persuasive)
Stating Conclusion in a Message (Should there be an explicit conclusion? It is preferable to
leave something out of the message for the audience to guess) Message Appeal
Product oriented appeals Physical Features oriented appeal Function oriented appeal Brand to Brand comparison appeal
Consumer oriented appeals Consumer Oriented appeal (Attitude, Class, Lifestyle)
Appeals evoking pleasant sensations and moods Appeals evoking sense of luxury and distinctiveness Humor appeals Fear appeal
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Source The Credibility of the Source
Likeability/Attractiveness of the Source The Sources approach to the views and
Disposition of the audience
The Main elements of a copy
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Snapshots
Source tone: soothing, authoritative, upbeat;
familiarity or lack of it.
Color: Blue-Cold, used to create distance, blue
skies. Red-Intense. Orange (Warm). Black(Mysterious, Sinister), Purple (Luxury). Colors can
be treated as metaphors for nature: green grass,
brown earth, red blood and passion
Serif Old Roman Style: Tradition and Authority Times, Century Schoolbook (Transitional),
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Media Selection
Deciding on:
Reach (% of people in the target market exposed to an adcampaign during a given period)
Frequency (the no. of times the average person isexposed to an advertising message in a given period) Media Impact (qualitative value of a message exposure
through a given medium) Eg. Radio Vs TV
More the reach, frequency and media impact advertiserseeks the higher the advertising budget will have to be.
Choosing Among Major Media Types
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Profiles of Major Media Types
MEDIUM ADVANTAGES LIMITATIONS
Newspapers Flexibility, Timeliness, GoodLocal Market; BroadAcceptance; HighBelievability
Short Life; Poor ReproductionQuality
Television Combines sight, sound, andmotion; appealing tosenses; high attention; highreach
High absolute cost; lessaudience selectivity
Direct Mail Audience Selectivity,Flexibility; No Competition;
Personalization
Relatively High Cost; JunkMail Image
Radio Mass Use; high geographicand demographicselectivity; low cost
Audio Presentation only;lower attention thantelevision; non standardizedrate structures; fleeting
exposure
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Magazines High geographic anddemographic
selectivity; credibilityand prestige; highquality production; longlife
Long ad purchase leadtime; some waster
circulation; noguarantee of position
Outdoor Flexibility; high repeatexposure; low cost; lowcompetition
No audience selectivity;creative limitations
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Selecting Specific Media Vehicles (Specific
Magazines, Television Shows, Radio
Programmes)
Deciding on Media Timing (Scheduling the
advertising over the course of a year)
Advertising Evaluation
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Advertising EvaluationMeasuring the communication effect of an ad-copy testing-tells whether the ad is
communicating well.
Methods of Advertising Pretesting: Direct Rating (Exposes to consumer panel to alternative ads and asks them
to rate the ads) Portfolio Tests (Consumers view or listen to a portfolio of an
advertisements taking as much as time as they need. They are then askedto recall all the ads and their content, aided or unaided by the interviewer. )
Laboratory Tests (Physiological Reactions are measured: heartbeat, B P,pupil dilation, perspiration. These help measure ads attention getting powerbut reveal little on belief, attitude or intentions)
Post Testing Methods: Recall Tests (Recall everything they can about the advertisers and products
they saw) Recognition Tests (Eg. Readers of a given issue of a magazine are asked
to point out what they recognize as having seen before)
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Measuring the Sales Effect
What sales are caused by an ad that increases brandawareness by 20% brand preference by 10%?
Sales effect is harder to measure than communication effect Sales are effected by multiple factors apart from advertising:
product features, price, availability etc.
Methods:
Past Sales comparison with past advertising expenditures
Varying Advertising Spends (keeping market areas andmarketing efforts constant)