Abm Internal
Abm Internal
Advertising is the means of informing and influencing a vast audience to buy a product or
service through visual, oral or written messages. Advertising can be described as a paid form
of non-personal presentation and promotion of ideas, goods or services. 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, and billboard and
in recent times, the internet
Definition of Advertising
In Marketing, Promotion refers to any type of marketing communication used to inform or
persuade target audiences of the relative merits of a product, service, brand or issue. The aim
of promotion is to increase awareness, create interest, generate sales or create brand loyalty.
According to American Marketing Association (AMA), "Advertising means any paid form of
non- personal presentation and promotion of ideas, goods, or services by an identified sponsor.
Importance of Advertising
Advertising plays a very important role in today’s age of competition.
Advertising is important for the customer awareness.
Advertising is important for the seller and companies producing the products.
Advertising helps increasing sales.
Advertising helps producers or the companies to know their competitors and plan
accordingly to meet up the level of competition.
Advertising helps creating goodwill for the company and gains customer loyalty after
reaching a mature age.
The demand for the product keeps on coming with the help of advertising and demand
and supply become a never-ending process.
Types of Advertising
Print Media (Newspaper and Magazine)
Broadcast Media (Radio and Television)
Directories
Outdoor and Transit
Direct mail, Catalogues and Leaflets
Online
Components of Advertising
Advertising can be broadly broken down into four major components:
1. Advertising strategy- Focuses on the message, customer segment to be
targeted, integrated marketing communication (IMC) channels and the budget
2. Advertising media- Choosing the most appropriate advertising channel, medium or media
to reach out to the customers
3. Creative idea- This is the message or the visual which can be made to attract the customer
4. Creative execution- The final advertisement created based on the creative idea.
Nature of Advertising
Attention seeker: The term ‘advertising‘ is derived from the Latin word ‘advertere’ that
means ‘to turn the attention’. Every piece of advertising attempt to seek the attention of
your audience towards a product or service.
Has a Unique Selling Proposition: Often, the advertiser need to have a unique selling
proposition (USP)? This unique selling proposition makes the product or service stand
out of the crowd. Advertising attempts to persuade and influence the audience through
the different kinds of appeal.
Visually attractive: The visual and non-verbal elements play a dominant role in
advertising. An eye-catching advertisement uses crisp information and focuses on the
visual treatment to convey the message. The visual elements used in the advertisements
not only convey the information, but also tell a story.
Consumer oriented: Advertising broadens the knowledge of the consumers. With this
nature of advertising, consumers can have the know-how of the products, brands or
services that exist in the market. In fact, every product or service is designed in a way to
keep the consumers satisfied.
Uses various media: Apart from print platforms like newspapers and magazines, its
presence can now also be seen in audiovisual platforms like, films, hoardings, banners
and many such promotional campaigns.
Nature of Advertising Management
Advertiser: It is the most important person as he is the customer and spends money on
it. He gives employment to a lot of people and supports the advertising agencies. The
advertiser also has a great social responsibility to create a sound social and economic
system.
Objective: The advertising objectives are many in number. However, we shall mention a
few:
To increase sale.
To create awareness and interest.
Establishing and sustaining the product.
To help middleman.
To persuade, to remain and inform the masses.
Activities: The activities included are mass communication, carrying message, image
building. It also persuades and reminds. The activities should be performed regularly
and economically.
Art & Science: Management is both an art and science and Advertisement being a part
of marketing is also an art. It creates, it requires experience. It is a science because it is
based on certain social-psychological factors. Cause and effect relationship are studied
in advertising. The effect of advertising is also studied by experimentation. The results of
advertising can be measured. It is tested on scientific principle as well.
Scope of advertising by deliverables: Once the budget is decided, the marketing plan
can be projected further. A detailed scope of work that deliverables require can be
outlined. Agencies can now develop a proposed resource plan.
Scope of advertising by allocating deliverables: For creative work, allocating the type of
deliverables (TV, online, mobile, press, magazine, etc) based on the previous campaign
requirements can be more insightful after the previous plan.
Benefits of Advertising
Advertising is a huge industry. It has created opportunities for various domains. The benefits of
advertising include:
Launch of a new product: Advertising plays very significant role in the introduction of a
new product in the market. It stimulates the people to buy or know about a product.
Increases markets: It helps the manufacturers to expand their markets. It opens the
horizons for new markets for the product or service.
Mass sales: Advertising facilitates mass production to goods that ultimately results in a
raised volume of sales.
Keeps the competitive spirit alive: Advertising helps in keeping the competition and the
competitors at bay. It keeps a regular check on the performance of your brand or
product.
Creative minds: Every place has a rich pool of strategic and creative minds, media and
professionals. And every advertising organization possesses such talents.
Direct link: Advertising aims at establishing a direct link between the manufacturer and
the consumer. This rule out the possibility for a middleman to be involved in between.
DAGMAR Model
DAGMAR is an advertising model proposed by Russell Colley in 1961. Russell Colley advocated
that effective advertising seeks to communicate rather than to sell. Advertisers discover
whether their message conveyed enough information and understanding of a product to their
consumers and also its respective benefits from clear objectives.
Comprehens
ion
Conviction
Action
AWARENESS: Awareness of the existence of a product or a service is needful before the
purchase behaviour is expected. The fundamental task of advertising activity is to
improve the consumer awareness of the product. Once the consumer awareness has
been provided to the target audience, it should not be forsaken. The target audience
tends to get distracted by other competing messages if they are ignored. Awareness has
to be created, developed, refined and maintained according to the characteristics of the
market and the scenario of the organization at any given point of time. The objective is
to create awareness about the product amongst the target audience.
CONVICTION: Conviction is the next step where the customer evaluates different
products and plans to buy the product. At this stage, a sense of conviction is established,
and by creating interests and preferences, customers are convinced that a certain
product should be tried at the next purchase. At this step, the job of the advertising
activity is to mould the audience’s beliefs and persuade them to buy it. This is often
achieved through messages that convey the superiority of the products over the others
by flaunting the rewards or incentives for using the product. Example: Thumbs up
featured the incentive of social acceptance as “grown up”. It implied that those who
preferred other soft drinks were kids. The objective is to create a positive mental
disposition to buy a product.
ACTION: This is the final step which involves the final purchase of the product. The
objective is to motivate the customer to buy the product.
Advertising Budget
An advertising budget is an estimate of a company's promotional expenditures over a certain
time period. More importantly, it is the money a company is willing to set aside to accomplish
its marketing objectives. When creating an advertising budget, a company must weigh the value
of spending an advertising dollar against the value of that dollar as recognized revenue.
Factors affecting advertising budget
Degree of competitiveness in market: A monopoly firm does not have to worry about
the promotional spends as it is the only player in the market. For duopoly, where market
is dominated by two dominant players, the promotional budgets would be high to
outperform each other. In an Oligopolistic market, where the market is cluttered and
there are many players, promotional spends has to be higher as frequency of
advertisement has to be increased to get noticed among so many players.
Market Share: Market leader/Market Follower: The advertising budget for a market
follower will be decided by the tactics of the market leader. To improve market share,
one of the investments is to increase promotional spent. Thus, where a company stands
is a deciding factor in advertising budget
Advertising Frequency: An ad can be played only once or can be multiple times. Also, it
can be daily, weekly, fortnightly, monthly etc. Depending upon the requirement, the
advertising budget is altered.
Media Planning
Media planning refers to the best way to get the advertiser’s message across to the market.
The goal of the media plan is to find that combination of media vehicles that enables the
message to be communicated to the largest proportion of the target audience at the most
effective cost. The process of media planning involves the following stages.
Setting Media
Objectives
Media Selection
The target audience can be classified in terms of age, sex, income, occupation, and other
variables. The classification of target audience helps media planner to understand the media
consumption habit, and accordingly choose the most appropriate media or media mix. And to
do that, one need to do the following:
Demographic and segmentation
Target market
Market need
Competition
Barriers to entry
Regulations
Step II. Setting Media Objectives
Media objectives describes what you want the media plan to accomplish. There are five key
media objectives that an advertiser or media planner has to consider - reach, frequency,
continuity, cost, and weight.
Reach - Reach refers to the number of people that will be exposed to a media vehicle at
least once during a given period of time.
Frequency - Frequency refers to the average number of times an individual within target
audience is exposed to a media vehicle during a given period of time.
Continuity - It refers to the pattern of advertisements in a media schedule. Continuity
alternatives are as follows:
Continuous: Strategy of running campaign evenly over a period of time.
Pulsing: Strategy of running campaign steadily over a period of time with
intermittent increase in advertising at certain intervals, as during festivals or
special occasions like Olympics or World-Cup.
Discontinuous: Strategy of advertising heavily only at certain intervals, and no
advertising in the interim period, as in case of seasonal products.
Magazines: They have a long shelf life and often stay in a consumer’s possession for two
to four weeks after being read. Information in this medium tends to be retained longer,
since people read faster than they can listen. Research has shown there is a higher
amount of trust in magazine ads than in other forms of media. Consumers are also less
resistant to these kinds of advertisements, as these often tie in with their interests.
Publications tend to be very targeted.
Newspapers: When selecting this medium, marketers can choose which section of the
newspaper ads are placed for further targeting. If they want to target those interested
in fashion, they can select that section of the newspaper for their ad. Newspapers have
a desirable audience for many marketers. Consider the following:
Newspaper readers are more likely to have higher education and earn a higher
salary.
This can be important when selecting ad space based on demographics.
The older the demographic, the longer they will spend reading the newspaper.
Radio: Radio ads have a local appeal, allowing you to target specific areas or regions of
the country. It is an easy medium to build frequency with your target audience.
According to research, exposure to a radio ad and time to purchase is the shortest of
any medium. Additionally, if paired with other forms of media, the overall campaigns
were more effective. This tends to be a lower-cost medium.
TV & Cable: This media is highly visual and can demonstrate products in everyday life. For
example, if you sell a cleaning product, consumers can see the benefits of your product
and how these can be applied in their home. This is very pervasive, as the average
American watches approximately five hours of television a day.
Out of Home: Media such as billboards are large and get attention. In a busy area, your
message can reach 10,000 people in a month. Out of home isn’t limited by billboards,
only your creativity is. It is an extremely mobile option.
Online Media
Digital Publications: Many digital publications have opportunities for you to email their
database through a personalized email or newsletter. They can track open rates and
understand conversion rates to your site or asset. These are often specialized
publications, making it easy to reach your target audience, and are great tools for lead
generation campaigns.
PPC: Advertisers can capitalize on search intent. Advertisers can retarget people who
have visited their site. PPC is an extremely cost-effective medium.
Social Media: Like PPC, social media is an extremely cost-effective medium. It is also
extremely targeted, allowing marketers to target by interests, age, marriage status, etc.
Social platforms are constructed on a basis of community, which allows your brand to
connect more personally with consumers. It also gives your brand the chance for
content to go viral.
Budget: What is your overall budget for advertising? Will your budget give you the
coverage you want? A firm that has a limited budget for advertising will limit amount of
coverage certain media can provide. Need to strike balance between budget &
coverage.
Campaign Objectives: One factor that will influence the budget and coverage question is
the objective of the campaign. If the objective is to raise the brand awareness of the
firm amongst the teenage market, then this will influence any decisions you make
above. You may need to spend a little more on certain publications in order to meet
your objectives.
Target Audience: The media you selected is obviously influenced by the target audience.
A firm must select media that the target audience is associated with e.g. the magazines
or paper that they read, or the social networking site they use.
Focus: What is the message focus going to be? Will the message be emotional and work
on guilt or will the message be clear cut and say why the firm is better than the leading
player?
Readership of Media: What is the readership of the media you wish to select?
Readership is the number times a publication has been read, so if I pick up newspaper
on the train, read it and leave it on the train and that same newspaper has been read by
10 other commuters, the readership in total is 11.
Circulation of Media: A firm will need to find out what the overall circulation of the
media chosen is. So how many publications are sold, and exactly who reads them.
Timing: When do you want the advertising campaign to start? Is it specific to a particular
time of the year e.g. Easter or Christmas?
Step VI. Implementation of Media Plan
The implementation of media plan requires media buying. Media Buying refers to buying time
and space in the selected media. Following are the steps in media buying:
Collection of information: Media buying requires sufficient information regarding
nature of target audience, nature of target market, etc.
Selection of Media/Media Mix: Considering the collected information and ad-budget,
media or media mix is selected which suits the requirements of both - target audience
and advertiser.
Negotiation: Price of media is negotiated to procure media at the lowest possible price.
Issuing Ad - copy to media: Ad - copy is issued to the media for broadcast or telecast
Monitoring performance of Media: Advertiser has to monitor whether the telecast or
broadcast of ad is done properly as decided.
Payment: Finally, it is responsibility of advertiser to make payment of media bills on time.
Successful strategies help build confidence and serve as reference for developing
media strategies in future, and failure is thoroughly analyzed to avoid mistakes in future.
How to test?
Fortunately, the advertising has wide range of testing techniques or the methods to choose for
evaluation purpose. What methods or techniques he is going to use is dependent on when he is
going to measure the ad effectiveness. Accordingly, there can be three sets of methods to meet
his needs namely, pre-testing, concurrent testing and post-testing methods.
I. Pre-Testing Methods
Check-list test: A check-list is a list of good qualities to be possessed by an effective
advertisement. A typical check- list provides rating scale or basis for ranking the ads in
terms of the characteristics. These characteristics may be honesty, attention getting,
readability, reliability, convincing ability, selling ability and the like. The ad that gets
highest score is considered as the best.
Opinion test: Opinion test or consumer jury test is one that obtains the preference of a
sample group of typical prospective consumers of the product or the service for an ad or
part of it. The members of the jury rate the ads as to their head-lines, themes,
illustrations, slogans, by direct comparison. Getting preference from a juror is better
than getting it from a member of general public or an ad expert.
Dummy magazine and port-folio test: Dummy magazines are used to pre-test the ads
under conditions of approximation resembling normal exposure. A dummy magazine
contains standard editorial material, control ads that have been already tested and the
ads to be tested. The sample households receive these magazines and the interviews
are conducted to determine recall scores. Port-folio test is like that of dummy magazine
test except that the test ads are placed in a folder that contains control ads. The
respondents are given these folders for their reading and reactions. The test scores are
determined in the interview. The ad with highest score is taken as the best.
Inquiry test: It involves running two or more ads on a limited scale to determine which
is most effective in terms of maximum inquiries for the offers made. These inquiry tests
are used exclusively to test copy appeals, copies, illustrations, and other components.
Any of these elements may be checked. The point that is to be checked is changed and
all other components are unaltered, to get the score.
Mechanical tests: These mechanical tests are objective in nature unlike the one already
explained. These help in provide good measures as to how respondent are eyes and
emotions reaching a given advertisement. The most widely used mechanical devices
are:
Eye Movement Camera
Percept scope
Psycho-galvanometer and
Tachistoscope.
II. Post-Testing Methods
Inquiry tests: It is controlled experiment conducted in the field. In inquiry test, the
number of consumer inquiries produced by an advertising copy or the medium is
considered as to the measure of its communication effectiveness. Therefore, the
number of inquiries is the test of effectiveness which can be produced only when the ad
copy or the medium succeeds in attracting and retaining reader or viewer attention. To
encourage inquiries, the advertiser offers to send something complimentary to the
reader or the viewer, if he replies.
Split-run test: A split-run test is a technique that makes possible testing of two or more
ads in the same position, publication, issued with a guarantee of each ad reaching a
comparable group of readers. It is an improvement over the inquiry test in that the ad
copy is split into elements like appeal layout headline and so on. Here also, the readers
are encouraged to reply the inquiries to the keyed or the given address.
Sales tests: Sales tests represent controlled experiment under which actual field
conditions than the simulated are faced. It attempts to establish a direct relationship
between one or more variables and sales of a product or service. It facilitates testing of
one ad against another and one medium against another.
Recall tests: Recalling is more demanding than recognizing as a test of memory. It
involves respondents to answer as to what they have read, seen or heard without
allowing them to look at or listen to the ad while they are answering. There are several
variations of this test. One such test is Triple Association Test which is designed to test
copy themes or the slogans and reveals the extent to which they have remembered.
Traffic counts: Traffic counts are of special applicability to outdoor advertising. One can
get good deal of information through traffic counts. This counting is done by
independent organizations may be private or public. This work is also undertaken by
advertising agencies. For instance, how many automobiles and other vehicles were
exposed to a bulletin board or a poster or a wall painting and how many times? Can be
determined.
The Subliminal Advertising: Capturing the Minds of the consumers is the main intention
of these ads. The ads are made in such a way that the consumers don’t even realizes
that the ad has made an impact on their minds and this results in buying the product
which they don’t even need. But “All ads don’t impress all consumers at all times”,
because majority of consumers buy products on basis of the price and needs.
Effect on Our Value System: The advertisers use puffing tactics, endorsements from
celebrities, and play emotionally, which makes ads so powerful that the consumers like
helpless preys buy those products. These ads make poor people buy products which
they can’t afford, people picking up bad habits like smoking and drinking, and buy
products just because their favorite actor endorsed that product. This affects in
increased the cost of whole society and loss of values of our own selves.
Offensiveness: Some ads are so offensive that they are not acceptable by the buyers.
For example, the ads of denim jeans showed girls wearing very less clothes and making a
sex appeal. These kinds of ads are irrelevant to the actual product. Btu then there are
some ads which are educative also and now accepted by people. Earlier ads giving
information about birth control pills was considered offensive but now the same ads are
considered educative and important.
Children: Children are the major sellers of the ads and the product. They have the
power to convince the buyers. But when advertisers are using children in their ad, they
should remember not to show them alone doing their work on their own like brushing
teeth, playing with toys, or infants holding their own milk bottles as everyone knows
that no one will leave their kids unattended while doing all these activities. So, showing
parents also involved in all activities or things being advertised will be more logical.
Alcohol: Till today, there hasn’t come any liquor ad which shows anyone drinking the
original liquor. They use mineral water and sodas in their advertisements with their
brand name. These types of ads are called surrogate ads. These types of ads are totally
unethical when liquor ads are totally banned. Even if there are no advertisements for
alcohol, people will continue drinking.
Ads for social causes: These types of ads are ethical and are accepted by the people. But
ads like condoms and contraceptive pills should be limited, as these are sometimes
unethical, and are more likely to lose morality and decency at places where there is no
educational knowledge about all these products.
Legal Aspects of Advertising
False, Not Misleading: The basic legal standard for advertising is that ads must be
truthful and not misleading. Several factors are considered when analyzing whether an
ad is truthful and not deceptive. These include whether the claim made by the
advertisement is express or implied, who the reasonable consumer is for the product
and whether the false or misleading content (if any) is material enough such that it
would influence consumer buying behavior.
Evidence for Claims: The other legal standard for advertisements is reliable evidence
that supports any claims being made by the advertisements. Not every ad needs
evidence. However, if a garbage bag company boasts that its bags are 50 percent larger
than the leading competition, the garbage bag company needs to have actual evidence
to support such claim. According to the Federal Trade Commission, the exact level of
evidence needed varies depending on the claim. At the very least, an advertiser must be
able to produce the level of evidence it says it has. Using the previous example, the
garbage bag company must identify the leading competition and demonstrate that its
bags are actually 50 percent larger.
Ethical Considerations: Ethical considerations fall into a gray area for advertisements. It
is possible for an advertisement to be legally permissible (in that it is truthful, not
misleading and supported by objective evidence), but for it to be unethical. Ethical
considerations relate to the manner in which the content is being delivered and the
message of the advertisement. According to the International Charter, ads that play on
fear would be unethical. An advertisement for car tires that claim (truthfully) to be safer
from the competition in bad weather conditions may be unethical if it displays actual
photos from accident scenes with gory imagery and sensationalized, emotionally
charged content. It is also unethical to market products towards groups for which those
products would be inappropriate, such as advertising cigarettes to teens.
Promotional Advertising: This technique involves giving away samples of the product
for free to the consumers. The items are offered in the trade fairs, promotional events,
and ad campaigns in order to gain the attention of the customers.
Facts and Statistics: Here, advertisers use numbers, proofs, and real examples to show
how good their product works. For e.g. “Lizol floor cleaner cleans 99.99% germs” or
“Colgate is recommended by 70% of the dentists of the world” or Eno - just 6 seconds.
Unfinished Ads: The advertisers here just play with words by saying that their product
works better but don’t answer how much more than the competitor. For e.g. Lays - no
one can eat just one or Horlicks - more nutrition daily. The ads don’t say who can eat
more or how much more nutrition.
Weasel Words: In this technique, the advertisers don’t say that they are the best from
the rest, but don’t also deny. E.g. Sunsilk Hairfall Solution - reduces hairfall. The ad
doesn’t say stops hairfall.
Complementing the Customers: Here, the advertisers used punch lines which
complement the consumers who buy their products. E.g. Revlon says, “Because you
are worth it.”
Ideal Family and Ideal Kids: The advertisers using this technique show that the
families or kids using their product are a happy go lucky family. The ad always has a
neat and well- furnished home, well-mannered kids and the family is a simple and
sweet kind of family.
Patriotic Advertisements: These ads show how one can support their country while
he uses their product or service. For e. g some products together formed a union and
claimed in their ad that if you buy any one of these products, you are going to help a
child to go to school.