Project on Marketing Mix and Advertising

Description
Marketing mix is a set of controllable, tactical marketing tools that the firm uses to achieve its objectives in the target market. Popularly the 4Ps are used to represent the elements of marketing-mix.

Advertising
Marketing-mix and Advertising
Marketing mix is a set of controllable, tactical
marketing tools that the firm uses to achieve its
objectives in the target market. Popularly the
4Ps are used to represent the elements of
marketing-mix.
Each 'P' stands for:
• Product
• Price
• Place (distribution)
• Promotion

Promotion-mix
• Promotion-mix" constitutes the specific group of
marketing activities at a given time concerned with
the communications aspect with existing or potential
consumers, and the relevant public.
• It involves activities such as advertising, sales
promotion, personal selling, PR/publicity, direct
marketing, packaging, events, Propaganda and
sponsorships.
• The most important elements of promotion mix
(marketing communications mix) are:
• Advertising
• Personal selling
• Sales promotion
• Direct marketing, and
• Publicity/PR
• Propaganda etc.
Four Ps of Marketing-mix (first row), and five major
elements of Promotion-mix
Product Price Promotion Place
Advertising Personal selling Sales promotion Publicity Direct marketing
Marketing mix
Advertising Defined
• Many early attempts were made to formulate a
definition of advertising. One such attempt led to
the following definition of advertising:
Several years ago (1963) the American
Marketing Association proposed the
following definition of advertising:
"Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, and
services by an identified sponsor."

The definitions have used certain words or
phrases that need some elaboration

• "Any paid form“
• "Non-personal presentation and promotion“
• "Ideas, goods, and services“
• "An identified sponsor“
• "Controlled“
• "Mass communications media“
• "Persuasion“
• "It is not neutral; it is not unbiased"
Product Life Cycle and Advertising
• The developmental stage of a product
determines the advertising strategy. As
products pass through various stages of their
life cycle, the manner in which the advertising
presents the product to target audiences
depends largely upon the degree of a
product's acceptance by consumers.
• Based on the concept of product life cycle,
one may differentiate three stages:
• The introductory stage
• The competitive stage
• The reminder stage
Brief History

• Modern advertising is largely a product of
twentieth century.
• Communication has been a part of selling
process almost as long as there has been
the need to exchange goods from one
person to another.
Brief History cont…
• Before the invention of printing from movable
type (about 1438 A.D) by Johann Gutenberg,
there were three forms of advertising:
• Trademarks: Craftsmen in early times
wanted to be identified for their skills and
placed their individual marks on goods they
crafted. This led to reputation building of
particular artisans by word of mouth. Buyers
learnt to look for distinctive marks just as we
look today for brand names and trademarks on
products.

Brief History cont…
• Signs: Phoenicians and other traders
painted commercial messages on
prominent rocks along trade routes they
traveled. These messages highly praised
the products that were for sale. This is an
example of ancient outdoor advertising.
Archaeologists have revealed from
excavations at Pompeii that little shops
had inscriptions on walls near the
entrance to inform the passers-by
whether the shop sold pottery, wine,
bread, or any other goods.

Brief History cont…
• Town criers: This system of town criers was
perhaps present in all developed civilisations of
the ancient world. In Greece during the Golden
Age, town criers were paid to go around
spreading news and making announcements in
the streets of Athens. Epics and history books
about ancient India reveal that the rulers used
the system of town criers in India to inform public
of various public interest matters. Not long ago,
in rural India, town criers were used till 1950s

Development of Modern Advertising

• The fact is that advertising as we know it
really had its beginnings in mid 19th
century.
• Volney B. Palmer was the first advertising
agent who established an office in
Philadelphia.
• For a fee, he worked as an agent of the
newspapers numbering about 1,400. He
sold space to advertisers throughout the
country. He did not provide any creative or
planning services to clients, except the
media selection
Development of Modern Advertising
cont..
• Albert Lasker (generally regarded as the
father of modern advertising) and Claude C.
Hopkins got together in the last decade of
19th century.
• Claude C. Hopkins developed "Reason why"
approach to advertising copy.
• Albert Lasker made the ad agency a
professional business that included the
Records of Results." This was the
counterpart of today's research department
Development of Modern Advertising
cont..

Hopkins was particularly good at understanding
the consumer and how advertising should be
integrated in the total marketing effort.
John E. Kennedy believed that advertising was
"salesmanship in print." He tried to provide a
reason why customers should buy the
advertised products.

Indian Advertising

• It seems relevant to especially have a look at
the development of Indian advertising.

• Two British advertising agencies, J. Walter
Thompson and D. J. Keymer were the ones
who laid the foundations of professional
advertising in India in the early 1950s.

• J. Walter Thompson is now HTA and J. D.
Keymer became the Ogilvy & Mather. Ibrahim
Patel and Ratan Batra set up Ratan Batra
Pvt. Ltd. and co-founded Communications
Artists Guild (CAG).
Indian Advertising cont..
• Advertising is rarely a stable business. It changes with
business conditions, social and cultural times, and
technology.

• The Advertising Club of Mumbai celebrated its silver
jubilee in March 1980 and there was a workshop on
twenty-five years of Indian advertising.

• There are now advertising clubs in all metropolitan
cities and more than 500 advertising agencies.

• There are professional bodies that represent the
advertiser, advertising agency, and the media. The
names of these representative bodies are:
- The Indian Society of Advertisers (ISA)
- The Advertising Agencies Association of India (AAAI)
- The Indian Newspaper Society (INS)


Advertising in the 21st Century

• The last decade of the 20th century witnessed
remarkable impact on advertising due to rapid
strides in technology.

• It is difficult to determine exactly what the
decades in this new century will bring.
However, what looks certain is that there will
be much greater consumer involvement and
control and some degree of two-way
communication.

Advertising in the 21st Century cont..
-With the opening up of economies, mass
marketers will continue to increase their
operations on a worldwide basis.
-More and more global players will increasingly
adjust their strategies to a local market; country-
based or region-based, and advertising will
increasingly acquire local colour.
.

Coca-Cola ads depict the dresses in fashion more than a century ago in
the USA


An 1895 advertisement for a weight
gain product.
A bus with an advertisement for GAP in Singapore. Buses
and other vehicles are popular mediums for advertisers.
Objectives of Advertising
• Sales as Advertising Objective
• Communications objectives
Sales as Advertising Objective
• To trigger immediate sales response.
• Sales effect
Communications objectives

• In pyramid form
• The percentage of prospective customers will
decline as it move up the pyramid towards
more action oriented objectives.

• -awarness-90%
• -Knoledge-70%
• -liking-40%
• -preference-25%
• Trial-10%
• Repurchase/Regular use-5%
Classification of Advertising
• The principals means of advertising
classification are-
• By Geographical spread
-National
-Local
-Global




Classification of Advertising cont..
• By target group
-Consumer advertising
-Industrial advertising
-Trade advertising
-Professional advertising


Categories of advertising
• Consumer advertising
• Advertising to business and profession
• Non-product advertising
Consumer advertising

• National advertising
- Not confined to any geographical area
within the nation
- It conveys mass marketing effort.
-The objective is to inform or remind
consumers about a company or brand
nationwide.
Consumer advertising
cont..
• Retail(local) advertising
- The retailer advertises to encourage
patronage by consumers and build store
loyalty among them.
-Retailer is not
particularly
concerned with
any specific brand
Consumer advertising
cont..
• Cooperative advertising
-For specialty product, dealers put the ads in
local media under their names.
-The manufacturer often provides material
and guidelines to develop ads.
-Msg . What the manufacturer wants to
communicate.
-Shares the media costs ,(so cooperative
adv)
Consumer advertising
cont..
• End-product Advertising
-For products that are rarely purchased direct by
consumers.
-They are usually bought as part or ingredient in
other products.
-To create demand for the ingredients that helps
in the sale of another product
-Example-Pentium,Athelon
Advertising to business and
profession
• This advertising is aimed at re-sellers and
professionals such as architects, lawyers
and doctors, etc.
• Trade Advertising-:
-To promote products to re-sellers
encouraging them to stock the product
- Creating brand awareness among
resellers.
Advertising to business and
profession cont…
• Industrial advertising
-It is directed at a specialised and relatively
small-sized target audience.
- Advertisement contains details and
specifications of products meant for a
specific manufacturing segment.
Advertising to business and
profession cont…
• Professional Advertising
-Adv.is directed towards people who are not
the final consumers.
-to make the final purchase decision on
behalf of their clients.
Advertising to business and
profession cont…
• Corporate or Institutional Advertising
• -It is the extension of public relation s functions
and does not promote any specific product or
service.
• -To build and maintain the image of a company
or institution.
• To boost or to establish corporate identity and
image, counter negative attitudes toward a
company.
• Target groups are most often customers, stake
holders, employees, financial institutions,
political leaders, governments etc.
Advertising to business and
profession cont…
• Advocacy advertising
- refers to company's views on issues that
affect its business and to protect its
position in the market place.

Non Product Advertising
• Idea advertising
- to influence special
interest group
Example-
environmental issues,
population explosion,
human rights etc
The Ad shows a bride's burnt face.
An example of Social Cause Advertising



Non Product Advertising
• Service advertising
• - to provide different services for different
fields.
• Example-financial services, educational
services, health care etc.
Non Product Advertising
• Surrogate Advertising
-A substitute.
-When the laws of country do not permit
advertising of certain product category.
-Whisky-Bagpiper soda.
Non Product Advertising
Political Advertising:
-Political advertising is a component of political
campaigns and uses various media, including
speeches.
-Mostly, such advertising is comparative and
includes negative, one-sided attacks on rival
candidates and political parties pointing their
weaknesses, misdeeds, false promises, and
how voters were deceived.

Functions of Advertising
• Jagdish N. Sheth has suggested a
broader framework for advertising
functions. He has described four primary
sequential functions:
-Precipitation
-Persuasion
-Reinforcement, and
-Reminder.

Other Functions of Advertising

• Stimulates Demand
• Builds Brand Image
• Develops Brand Preference
• Strengthens other Promotion-mix Elements
• Cuts Costs
• Lowers Prices
• Competitive Weapon

Benefits of Advertising
• Information

• Brand Image
Building

• Innovation

• Growth of Media
The ad shown below encourages
brand preference by suggesting
that a wrong choice of sunglasses
will harm looks
Source
The source here means the person involved
directly or indirectly in communicating the
advertising message. Companies take due care in
selecting the source. A key source, the endorser,
in an advertisement can be a celebrity, announcer,
spokesperson or a common consumer, etc., who
endorses or demonstrates the product in an
advertisement.
Source Credibility
Source credibility means the extent to which the
audience perceive the source as having relevant
knowledge, expertise, or experience and believe
that the source will provide unbiased and objective
information about the product or service. The
element of credibility has two important dimensions,
expertise and trustworthiness.
Expertise: The research findings show that
expert and trustworthy endorsers are more
persuasive than others considered less
knowledgeable or trustworthy.
.
Trustworthiness: Expertise is fine,
but consumers must also be
convinced about the expert's
trustworthiness. Finding endorsers
with an image of being trustworthy is
at times difficult
Source Attractiveness

Attractiveness of a source surrounds similarity, familiarity,
and likability. Similarity is an assumed resemblance between
the source and the members of audience, and familiarity
means the knowledge of the source through exposure.
Likability is the affection developed for the message source
as a result of physical appearance and behavioural aspects.

Likability: Advertisers often use physically attractive
persons in their ads as a passive or decorative model to
attract attention. Attractiveness generates positive influence
and can lead to favourable evaluations of products as well
as ads. The relevance and suitability of the model depends
on the nature of the product. For example, Cindy Crawford
appears in Revlon ads; Aishwarya Rai has appeared for Lux
skincare.
Message
The message is the thought, idea, attitude, image, or other
information that the advertiser wishes to convey to the targeted
audience.
Message Sidedness: A message can be either one-sided or two-sided.
1. A one-sided message mentions only benefits or positive attributes of
the product or service. For example, advertisements of Maruti 800 only
address its advantages and don't mention any possible weaknesses. If
the audience is favourably predisposed, or if it is not likely to hear an
opposing argument, then a one-sided message is most effective.
2. A two-sided message presents not only the strong points of the
product or service, but also admits to at least some trivial weaknesses.
If the audience is critical, unfriendly or hostile, well-educated, or if it is
likely to hear opposing claims about the product or service, then a two-
sided message is most likely to be more effective.
Refutation: Refutational appeals in an advertising message are
considered a special type of two-sided message. The advertiser first
presents both strong and weak points about the product or service then
refutes the views concerning the weakness.
Order of Presentation: Order of presentation of message arguments is
an important consideration in the design of advertising message.
Climax versus Anti-climax Order: When the strongest message
arguments are presented at the end of the message, it is called climax
order. But when the most important message points are presented at the
beginning of the message, it is referred to as anti-climax order. The main
message points when presented in the middle are called pyramidal order.
Message Appeals
Marketing is all about satisfying consumer needs and wants at a profit and at
the same time, protecting the larger and long term interests of the society.
Through the use of variety of appeals, advertising attempts to communicate and
influence the purchase and consumption behaviour of the existing and potential
consumers.
1. Rational appeals are those that focus on the audience's self-interest and
are directed at the thinking aspect of decision-making process.

2. Emotional appeals are placed under two categories: positive emotional
appeals, and negative emotional appeals, depending on what kind of
emotions are to be triggered. Love, affection, joy, pride, humour, prestige,
status, etc., are some examples of positive emotional appeals.

3. Moral appeals attempt to draw audience attention to what is "right." Moral
appeals are generally used to urge people to support social causes such
as, environmental concerns, population explosion, donating money to help
victims of some natural calamity, or equal status for women etc.
Powerful Emotional Appeals
Fear Appeals: Fear is an emotional response to some
actual or perceived threat or danger. Advertisers use
fear appeals in some situations to evoke the desired
emotional response and motivate audience to take
steps to remove the threat. Some people humorously
term these as "slice-of-death" ads. Toothpaste,
mouthwash, deodorants, helmets, anti-dandruff
shampoos, water filters, fire extinguishers, life
insurance, and a large number of other products and
services use explicit or implicit fear appeals.
Humour Appeals: Humour is used in
almost 30% of all advertisements.
Humour generates feelings of
amusement and pleasure and for this
reason it has a potential for the feelings
to become associated with the brand
and affect consumer attitudes toward the
brand and probably its image.

Sex appeals: Marketers have always had
a traditional worry that consumers are
being flooded with too many advertising
claims. This, coupled with ever-increasing
competition from new products, has
convinced many advertising people that
sex is a necessary ingredient in
advertising.
Elements of Print Advertisement:
Headline
The headline contains the words in the leading position in the
advertisement. These are the words that will be read first or
are positioned with the intent to draw the readers' most
attention. The headlines are almost invariably set in larger,
dark type and generally set apart from body copy to make
them prominent. The headline is considered as the most
important part of a print ad by most advertising professionals.
Types of Headline:
(a) Benefit headline (b) Information headline
(c) Selective headline as question

(d) Question headline
Subheads
Many ads have only one headline, but one or more secondary heads
called subheads, are also common. A subhead is an additional smaller
headline that may appear above or below the headline. When the
subhead is above the headline, it is referred as a kicker or overline,
and is often underlined. Subheads sometimes also appear in body copy.
Subheads are usually set smaller than the headline but larger than the
body copy, and may appear in boldface or italic type.
Body copy
The main text portion included in the advertisement is called the body
copy. The body copy contains the complete sales story and is the logical
continuation of the headline and subheads. It covers the attributes,
benefits, and the utility of the product or service, but getting the
audience to read the body copy is often
Types of body copy
Approach Description
Straightforward It is factual coy, usually written in the words of an
anonymous or unacknowledged source.
Narrative This type of copy tells the story in first person.
Dialogue The copy lets the reader "listen in" on a conversation.
Explanation Copy explains how something works.
Translation Presents technical information, such as that written for
high technology and medical industries, must be defined
and translated into understandable language.
Visual elements
Visual elements are a major component in print advertising and
are the responsibility of artists and/or photographers. The
purpose of visual elements is to:
? Capture the reader's attention.
? Clarify claims made by the advertising copy.
? Show the product in actual use situation.
? Convince the readers about copy claims.
? Arouse the reader's interest in the headline.
? Identify the subject of the advertisement.
? Emphasize the brand's unique features.
? Create a positive impression of the brand or advertiser.
Checklist for writing effective copy
? Get to the main point - fast.
? Emphasize one major idea simply and clearly.
? Be single-minded. Do not try to do too much at a time.
? Position the product clearly.
? Keep the brand name up front and reinforce it.
? Write with the consumer's ultimate benefit in mind.
? Write short sentences. Use easy, familiar words and themes people
understand.
? Don't waste words. Say only as much as you have to, nothing more, or less.
? Avoid bragging and boasting. Write from the reader's point of view. Avoid
using "we", "us", "our."
? Avoid clichés. Bright, surprising words and phrases perk up readers and keep
them reading.
?Write with flair. Build up excitement. Make sure the copy reflects your own
enthusiasm.
? Use vivid language. Use action verbs and adverbs.
? Write in the present tense, active voice. Exceptions should be deliberate, to
create special effect.
? Use personal pronouns. You are talking to an individual, a friend. Use "you" and
"your."
? Use contractions. They are personal, natural, and fast. People use them while
talking.
? Don't use excessive punctuation. Too many comas kill the copy.
? Read the copy aloud and listen. Written word is considerably different from
spoken word
? KISS (keep it short and simple). Edit mercilessly. Tell the whole story and no
more. Stop, when you are finished.
Layout
A layout is an orderly physical arrangement of headline,
subheads, body copy, slogan, seal, logo, signature, and the
visual elements into a finished advertisement.
During the creative phase, the designer uses thumbnails,
roughs, dummies, and comprehensives. In the pre-press
phase, the mechanical (the final artwork with the actual type and
visuals in place) is prepared from which the actual ad is
reproduced. At any point in this process, the ad or its concept
may be altered or even cancelled.

Design principles
Unity: Unity is considered as the most important design principle.
All creative advertising has a unified design.
Balance: There is a belief among many designers that balance is
a fundamental law of nature. Balance means controlling the size,
tone, weight, and position of the elements in the ad.
Contrast: Contrast means variety. It imparts life to a layout and
adds emphasis to selected elements. Variations in the size,
shape, and colour of layout elements create contrast.
Sequence or eye movement: The ad should be arranged in an
orderly manner so that consumers can read it from left to right
and top to bottom. Arrangement of elements in a sequence helps
direct the reader's eye in a structural motion.
Emphasis or proportion: Emphasis refers to division of space
among layout elements. That is, accentuating or focusing on an
element or group of elements so that they stand out among
elements of layout for pleasing optical effect.
Using colour
Colour is another physical element of layout and can be used with impact only if
its dimensions are understood.
The use of colour directly influences the cost of advertisement, but offers
significant advantages.
? Colour adds attention-capturing value to the advertisement.
? Colour can help in imparting emphasis to important elements in an ad.
? Colour can add a sense of realism or atmosphere.
? Colour can help easy identification of brand name, package, and
trademark.
? Colour imparts a feeling of quality and prestige to the advertisement.
Some of the basic principles of writing commercial script or developing the idea
through include:
? In a TV commercial, one is dealing with sight, sound, and motion. Each
element has its own requirements and uses. There has to be a relationship
between these elements so that the audience perceives the desired
message. It is to be ensured that when a sales feature is demonstrated, the
audio is talking about that particular feature.

? Whatever is obvious in the video, probably there would be no need to
describe that. Audio should be relevant to video. Words should interpret the
picture and advance the thought.

? TV commercials are generally more effective at showing than telling. The
video part carries more responsibility in communicating the message
successfully.

? The number of scenes should be carefully planned because too many
senses tend to confuse the audience. Yet the scenes should not be static
unless included for a reason. The scenes should be timed for pacing the
message. If a scene is too long, it may cause impatience among the
audience.
?It is critical to conceive the commercial as a flowing progression so that the
audience members are in a position to follow it easily. Viewers who are
unable to follow the progression of thought are most likely to tune out.
Transitions should be logically connected to add motion and smoothness.
? Because of the limitations of screen size, television is basically a medium
of close-ups. Any extraneous details must be avoided unless essential in
establishing a setting. Product features must be shown in close-ups.
? Action part of the commercial takes more time than a straight
announcement.
? Often the last scene in a commercial will feature product identification
and the theme line so that the viewers can see and hear the words as
well as see the product.
? It may be important to show the brand name and the package
prominently. It is vital to establish the brand identification and brand
recognition.
Guidelines for Radio Copywriting
? Expand on the introduction and work it into part of the selling offer. A
sound effect can be used to attract attention and then inserted
throughout the spot to maintain the interest in the product.
? Describe the fundamental aspect of the product. Why is it better than
some other similar solutions?
? Emphasize the benefits of owning the product. Rational and
emotional benefits (do good, feel good, or look good) such as
economy, reliability, quality, appreciation, approval, status, and
achievement etc.
? Explain the selling points that deliver the desired benefits and
important extra benefits.
? Communicate the enjoyment that comes from ownership.
? Mention the disadvantages of not owning the product.
? At the end of the spot, close it with product theme or punch line, and
invite to act.
? The close should be set up powerfully.
Advertising Research
Purpose of Advertising Research
Advertising research is required to serve a number of purposes,
which can be grouped into four categories:
1. Advertising strategy research is used to determine the product
positioning, to assist in the selection of the target markets,
advertising messages, or media vehicles.
2. Creative concept research is used to assess the extent of
target audience's acceptance of different creative ideas at the
concept development stage.
3. Pre-testing of ads is done to diagnose any possible
communication problems before beginning an ad campaign.
4. Post-testing of ads helps advertisers to evaluate the campaign
results.
Pre-testing and Post-testing: Advertisers use pretests and post-tests to
ensure that the advertising money is used wisely to achieve the predetermined
objectives. Testing can help in judging the effectiveness of advertising strategy
or medium.
Pre-testing is used to increase the likelihood of creating the most effective
advertising messages. This helps in spotting any communication gaps or flaws
in the ad message content before the account executive recommends it to the
client. Advertisers are often interested in concurrent testing to assess the
audience response while the ad campaign is under way. By using pre-testing,
advertisers can sharpen their decisions about a number of advertising
variables. Many of these can be post-tested as well. These variables can be put
in terms of five Ms:
1. Merchandise,
2. Markets,
3. Motives,
4. Messages and
Methods for Pre-testing Advertising
Print Advertising
? Direct questioning:Theresearcher using this method asks
respondents specific questions about the ads.
? Focus group: A group of 8 to 10 people participate in a moderated
but freewheeling discussion and interview.
? Portfolio test: One group of respondents is exposed to a portfolio of
test ads interspersed among other ads and editorial matter. Another
group sees the portfolio without the test ads.
? Paired comparison test: Respondents compare each ad in a
group.
? Order-of-merit test: Respondents see two or more alternative ads
and arrange them in rank order.
? Mock magazine test: Ads to be tested are "stripped into" a
magazine which is left with respondents for a specified time.
? Direct-mail test: Two or more alternative ads are mailed to different
potential customers on a mailing list to test which ad attracts more
orders.
Television and Radio Advertising
? Central location test: Respondents see test commercial film in a
central location, such as a shopping centre.
? Clutter test: Test commercials along with non-competing control
commercials are shown to respondents to determine their
effectiveness, measure comprehension and attitude shifts and detect any
weak points.
? Trailer test: Respondents see or listen commercials in trailers at
shopping centres and receive coupons for the advertised products.
? Theatre test: Respondents use electronic equipment to indicate what
they like or dislike as they view TV commercials shown in a theatre
setting.
? Live telecast test: Test commercials are shown on closed circuit or
cable TV and subsequently respondents are interviewed by telephone.
? Sales experiment: Alternative TV or radio commercials run in two or
more markets.
Physiological Testing
? Pupillometeric device: Dilation of the respondent's pupils is
measured, presumably to indicate respondent's interest.
? Eye-movement camera: The route the respondent's eyes
travelled is superimposed over an ad to show the areas that
attracted and held attention.
? Galvanic skin response (electrodermal response): A mild
electrical current measures respondent's sweat gland activity
to measure the tension an ad creates.
? Voice-pitch analysis: A customer's voice response is taped
and a computer is used to measure changes in voice-pitch
caused by emotional responses.
? Brain-pattern analysis: A scanner monitors the reaction of
the respondent's brain.
Post-testing methods
Post-testing occurs after the advertising has run and is commonly
undertaken both by advertisers and advertising agencies. It is generally
more expensive and time-consuming than pre-testing. Advertisers and
agencies use both quantitative and quantitative research methods in
post-testing. Most post-testing methods can be put into five broad
categories: aided recall (recognition-readership), unaided recall, attitude
tests, inquiry tests and sales tests.
Recall refers to a measure of the proportion of a sample audience that
can recall an ad as having seen. In aided recall, respondents are shown
certain ads with the name of the sponsor or brand concealed and then
asked whether their previous exposure was through reading, viewing, or
listening. In unaided recall, respondents are asked, without prompt,
whether they read, saw, or heard advertising messages.
There are several tests to measure recall of print ads, including recall
tests, recognition tests and inquiry tests. Perhaps the best know of recall
test are the ASI Print Plus and the Gallup & Robinson Impact Test.
The Starch Readership Report
Objective:Determining recognition of print ads and
comparing them to other ads of the same variety or in the
same magazine.
Method:Samples are drawn from 20 to 30 urban areas
reflecting the geographic circulation of the magazine.
Personal interviewers screen readers for qualifications
and determine exposure and readership. Samples
include a minimum of 200 males and females, as
well as specific audiences where required. Participants
are asked to go through the magazines, looking at the
ads, and provide specific responses.
Output:Starch Readership Reports generate three
recognition scores:
Day-After-Recall-Test (ASI Market Research)
Objective:Determining the ability of the commercial to gain viewer
attention, communicate an intended message, associate the
brand name with the message, and affect purchase behaviour.
Method: Interviews are conducted the day after the commercial
airs in numerous cities throughout the (country name). The
sample is 200 people who confirm that they watched the
programme in which the ad was placed. All individuals are
asked if they remember a commercial, then what they can
remember about it.
Output: Scores reflecting unaided and aided recall, indicating that
viewers remember the commercial and can relate details
about it.
DAGMAR Approach
Defining Advertising Goals for Measured Advertising Results
(DAGMAR).
In Colley's words:
"Advertising's job, purely and simply, is to communicate to a defined audience
information and a frame of mind that stimulates action. Advertising succeeds or
fails depending on how well it communicates the desired information and
attitudes to the right people at the right time and at the right cost.“
? Awareness: Involves making target audience aware of the existence of
brand or company.
? Comprehension: The purpose is to develop an understanding among
audience of what the product is and what it would do for them.
? Conviction: The objective is to create a mental disposition among target
audience members to buy the product.
? Action: To motivate the target audience to purchase the product or service.
According to Colley, the advertising objective should have the following
features:
? Stated in terms of concreter and measurable communication tasks.
? Specify a target audience.
? Indicate a benchmark or standard starting point, the degree of change
sought.
? Specify a time period for accomplishing the objective(s).
Criticism of DAGMAR:
? Problem with response hierarchy.
? Sales as the advertising goal.
? Practicality and costs.
? Inhibits creativity.
Assessment and Criticism of DAGMAR Approach
Problems with Response Hierarchy: DAGMAR approach is based on
hierarchy of effects model and the fact cannot be ignored that consumers do
not always follow the sequence of communications effects leading to
purchase.

Sales as the Advertising Goal: Many believe that sales is the only relevant
measure of advertising objectives and show little respect and tolerance for ad
campaigns that otherwise may achieve communications objectives but fail to
increase sales.

Practicality and Costs: Implementation of the DAGMAR approach is
difficult. Expensive research is required to establish quantitative standards
and measure changes in the response hierarchy.

Inhibits Creativity: The DAGMAR model is basically a planned and rational
approach to setting advertising objectives. It imposes too much structure and
may restrict creativity. Many advertisers dream or hope for the "great creative
idea" and the DAGMAR approach is too concerned with quantitative
assessment of ad message impact on awareness, brand name recall, or
specific persuasion
Budget Allocation
Some Points to Consider:
? Additional advertising normally increases sales but, at some point, the
rate of return declines.
? Sales response to advertising may build over time, but it is not durable,
and a consistent investment is important.
? There are minimum levels of ad expenditure below which advertising
expenditures have no effect on sales.
? There will be some sales even if the marketer does not advertise.
? Culture and competition impose saturation limits and beyond this no
amount of advertising can increase sales.
Product life Cycle Stage: New products, typically, need a large advertising
budget to create awareness, develop preference and induce product
trial/purchase. Mature brands usually require lower budget as a ratio to sales.
Market Share: Brands which enjoy a high market share usually need more
advertising push as a percentage of sales as compared to low-share brands.
Intensity of Competition and Clutter: Many competitors and high spending
on advertising, there is bound to be advertising clutter. A brand must advertise
more heavily to be heard above the noise in the market.
Advertising Frequency: When many advertising repetitions are needed to
communicate the brand’s message to the target consumers, the advertising
budget must be large.
Product Differentiation: When a brand cannot be differentiated significantly
and resembles other brands in a product category, it requires heavy advertising
to set it apart from competitors.
Approaches to Budgeting
Top-down approach Build-up approach

Top management sets Advertising objectives
the spending limit are set

Activities necessary to
achieve objectives a re
planned

Costs of different
advertising elements are
budgeted
Advertising budget set
to stay within allocation Total advertising budget
limits is approved by top
management.

? The Affordable Method (also called all-you-
can-afford method)
? Arbitrary Allocation Method
? Percentage of Sales Method
? Competitive Parity Method
? Objective and Task Method
? Payout Planning
? Quantitative Models
? The Experimental Approach
Methods
Ethical Issues
Ethics are moral principles and values that govern the actions and
decisions of an individual or group (Eric N. Berkowitz et. al., Marketing,
2nd ed. Richard D. Irwin, 1992). Many laws and regulations are put into
force that determine what is permissible in advertising. However, not
every issue is controlled by rules. Marketers are often faced with
decisions regarding appropriateness of their actions, which are based
on ethical considerations rather than what is within the law or industry
guidelines. There is considerable overlap between what many consider
to be ethical issues in advertising and the issues of manipulation, taste,
and the effects of advertising on values and lifestyles. Certain actions
may be within the law but still unethical. Cigarette smoking, for example,
has been shown to be associated with high levels of lung cancer and
other respiratory tract diseases, and many people would consider
cigarette advertising as unethical.
Sex appeals and/or nudity used simply to
gain consumers' attention and not even
appropriate to the product or service being
advertised is in poor taste. Even when such
appeal is used in case of related products, such
as condoms, people may be offended by it.
Many people consider nudity or suggestive sex
in advertising as objectionable. With the
increasing levels of clutter in advertising
environment, advertisers will probably continue
using appeals that attract the attention of
consumers, but offend many people.
Advertising Standards Council of India
(ASCI) works to maintain the ethical code.
The council is a non-profit organisation set up
by 43 founder members and has developed a
regulating code.
ASCI guidelines are as follows:
1. To ensure the truthfulness and honesty of representations and claims
made by the advertisements and to safeguard against misleading
advertising.
2. To ensure that advertisements are not offensive to generally accepted
standards of public decency.
3. To safeguard against indiscriminate use of advertising for promotion of
products, which are regarded as hazardous to society or to individuals
to a degree or of a type, which is unacceptable to society at large.
4. To ensure that advertisements observe fairness in competition so that
both the consumers' need to be informed about choices in the market
place and the cannons of generally accepted competitive behaviour in
business, are served.
Advertising Principles of American Advertising Federation
1. Truth: Advertising shall reveal the truth, and shall reveal significant
facts, the omission of which would mislead public.
2. Substantiation: Advertising claims shall be substantiated by evidence in
possession of the advertiser and the advertising agency prior to making
such claims.
3. Comparisons: Advertising shall refrain from making false, misleading,
or unsubstantiated statements or claims about a competitor or his products
or service.
4. Bait advertising: Advertising shall not offer products or services for sale
unless such offer constitutes a bona fide effort to sell the advertised
products or services and is not a device to switch consumers to other
goods or service, usually higher priced.
5. Guarantees and warranties: Advertising of guarantees and
warranties shall be explicit, with sufficient information to apprise
consumers of their principal terms and limitations or, when space or time
restrictions preclude such disclosures, the advertisement shall clearly
reveal where the full text of the guarantee or warranty can be examined
before purchase.
6. Price claims: Advertising shall avoid price claims that are false or
misleading, or savings claims that do not offer provable savings.
7. Testimonials: Advertising containing testimonials shall be limited to
those of competent witnesses who are reflecting a real and honest
opinion or experience.
8. Taste and decency: Advertising shall be free of statements,
illustrations, or implications that are offensive to good taste or public
decency.

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