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Advertising definitions:

Paid form of non personal communication about an organization or its products that is

transmitted to a target audience through a mass/broadcast medium.

A. "Advertising" is the expression of an idea created and produced for reproduction and

distribution through means such as television, radio, newspapers, newsletters, periodicals, trade

journals, publications, books, magazines, standardized outdoor billboards, direct mail, point-of-

sale displays, leaflets, brochures, fliers, and package design, and which is designed to promote

sales of a particular product or service or to enhance the general image of the advertiser.

Advertising includes public service messages that are designed to affect the behavior of the

public, and messages that are political in nature.

B."Advertising agency" is any person that is directly responsible to an advertiser for, and

whose functions as a business include the creation of advertising. Creation of advertising meansdeveloping concepts or ideas to express the advertising message.

C."Advertiser" is a person who contracts to purchase, or have delivered to a third party

on its behalf, advertising.

Importance of Advertising:

Advertisements are important for:

standardized products

products aimed at large markets

products that have easily communicated features

products low in price

Products sold through independent channel members and/or are new.

Broadcast Ad spending is at an all time high due to heavy competition in the:

Computer industry

Telecommunications Industry

Auto Industry

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Whenever severe competition between marketers, introducing new products etc. and even

with the evolution of direct marketing, and interactive media the importance of advertising has

been increased in the marketing communication process.

Nature of Advertising: Used by many types of organizations including Churches, Universities,Civic groups and charities, politicians. Need to consider the following issues:

Does the product possess unique, important features to focus on Unique Selling Point(USP)

Are the hidden qualities important to the buyers Is the general demand trend for the product adequate Is the market potential for the product adequate Is the competitive environment favorable Is the organization able and willing to spend the required money to launch an advertising

campaign

As far as India is concerned advertising is a growing business today and gainingimportance day by day. The host of new products marketed, the expenses and the risksinvolved in launching them and the cost of personal selling and some challenges whichhave placed a heavy responsibility on the advertising, with its growing productivecapacity and out right there is a need for finding customer for this growing output and theadvertising plays an important role in moving the goods from producers to consumers byadvising the people to purchase the best out of the variety of products offered forselection under the emerging global market tendency.

Scope of advertising: The scope of advertising includes the discussion of both the activitiesincluded in advertising and the activities excluded from advertising. The activities included in

the advertising are:

1. Selection of media with a view to stimulate sales amongst present and prospective

consumers;

2. Communication with consumers of the product and of the manufacturer;

3. Maintenance of brand loyalty amongst the customers;

4.

Increasing support to dealers, distributors, wholesalers and retailers and the sales force

are the main functions of advertising;

5. It projects an image in the mind of the people who are customers of the companys

products or who are closely related with the company such as shareholders, government,

creditors and the general public;

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6. Demarketing of the existing products while they continuously loose the market image

The activities excluded from advertising are:

1. Advertisements which are designed to deceive the consumers cannot be said to be

an advertising;

2. Advertising is not a game or a toy which the advertiser can play in any way by the

advertisers;

3. The advertising does not include the offering of premiums to stimulate sale of

products; the use of exhibitions and demonstrations at fairs, shows and

conventions; the use of samples and so called public activities involving news

release and activities of personal selling forces.

Thus the scope of advertising is very wide. Each and every type of activity whichstimulates sales by communication through a mass media is included in it and all other activities

which do not perform the communication function through mass media cannot be regarded as

advertising.

Role of Advertising in Marketing MixMarketing Mix

PRODUCT MIX PRICE MIX PROMOTION MIX PLACE MIX

PERSONAL SELLING SALES PROMOTION PUBLICITY

ADVERTISING DIRECT MARKETING

Marketing mix consist of four important variables of marketing, i.e. 4Ps-Product, Price,

Promotion and Place. Apart from the traditional 4Ps, there are also other variables, i.e.

Packaging, Posting, and Pace.Advertising is an element of promotion. However, it not only

assists in promoting the product, but also affects the other variables of marketing mix. This can

be explained as follows:

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1. Advertising and Product: A product is normally a set of physical elements, such as quality,

shape, size, colour and other features. The product may be of very high quality .At times, the

product is so designed that it requires careful handling and operations. Buyers must be informed

and educated on the various aspects of the product. This can be effectively done through

advertising. Thus, advertising plays the role of information and education.

2. Advertising and Price: The price is the exchange value of the product. A marketer may bring

out a very high quality product with additional features as compared to competitors. In such a

case, price would be definitely high. But buyers may not be willing to pay a high price would be

definitely high. But buyers may not be willing to pay a high price. Here comes advertising.

Advertising can convince buyers regarding the superiority of the brand and thus its value for

money. This can be done by associating the product with prestigious people, situations, orevents. Alternatively when a firm offers a low price products the job of advertising needs to

stress the price advantage by using hard hitting copy. It is not just enough to convince, but it is

desirable to persuade the buyer. Thus advertising plays the role of conviction and persuasion.

3. Advertising and Place: Place refers to physical distribution and the stores where the goods

are available Marketer should see to it that the goods are available at the convenient place and

that too at the right time when the buyers need it. To facilitate effective distribution and

expansion of market, advertising is of great significance. Thus advertising do help in effective

distribution and market expansion.

4. Advertising and Promotion: Promotion consists of advertising, publicity, personal selling

and sales promotion technique. Businessmen today have to face a lot of competition. Every seller

needs effective promotion to survive and succeed in this competitive business world.

Advertising can play a significant role to put forward the claim of seller, and to counter the

claims of competitor. Through effective advertising, sellers can face competition and also help to

develop brand image and brand loyalty.

5. Advertising and Pace: Pace refers to the speed in marketing decisions and actions. It involves

among other things the launch of new products or brand variations at greater speed than before.

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As and when new brands are launched, advertising plays an important role of informing,

educating and persuadingthe customers to buy theproduct.

6. Advertising and Packaging: The main purpose of packaging is protection of the product

during transit, and preservation of quality and quantity. Now a days, marketers take lot ofefforts to develop and design attractive packages as they carry advertising value. A creatively

design package attract the attention of the customers. It also carries an assurance of quality and

creates confidence in the minds of customers to buy the product.

7. Advertising and Positioning: Product positioning aims at creating and maintaining a distinct

image of the brands in the minds of the customers. Through advertising the marketer can convey

the positioning of the brand and accordingly can influence the buying decision of the target

audience.

Various forms of advertising: Advertising can take a number of forms, including advocacy,

comparative, cooperative, direct mail, informational, institutional, outdoor, persuasive, product,

reminder, point-of-purchase, and specialty advertising.

Advocacy Advertising: Advocacy advertising is normally thought of as any advertisement,

message, or public communication regarding economic, political, or social issues. The

advertising campaign is designed to persuade public opinion regarding a specific issue important

in the public arena. The ultimate goal of advocacy advertising usually relates to the passage of

pending state or federal legislation. Almost all nonprofit groups use some form of advocacy

advertising to influence the publics attitude toward a particular issue.

Comparative Advertising: Comparative advertising compares one brand directly or indirectly

with one or more competing brands. This advertising technique is very common and is used by

nearly every major industry, including airlines and automobile manufacturers. One drawback of

comparative advertising is that customers have become more skeptical about claims made by a

company about its competitors because accurate information has not always been provided, thus

making the effectiveness of comparison advertising questionable. In addition, companies that

engage in comparative advertising must be careful not to misinform the public about a

competitors product. Incorrect or misleading information may trigger a lawsuit by the aggrieved

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company or regulatory action by a governmental agency such as the Federal Trade Commission

(FTC).

Cooperative Advertising: Cooperative advertising is a system that allows two parties to share

advertising costs. Manufacturers and distributors, because of their shared interest in selling theproduct, usually use this cooperative advertising technique. An example might be when a soft

drink manufacturer and a local grocery store split the cost of advertising the manufacturers soft

drinks; both the manufacturer and the store benefit from increased store traffic and its associated

sales. Cooperative advertising is especially appealing to small storeowners who, on their own,

could not afford to advertise the product adequately.

Direct-Mail Advertising Catalogues, flyers, letters, and postcards are just a few of the direct-

mail advertising options. Direct-mail advertising has several advantages, including detail of

information, personalization, selectivity, and speed. But while direct mail has advantages, it

carries an expensive per-head price, is dependent on the appropriateness of the mailing list, and

is resented by some customers, who consider it junk mail.

Informational Advertising: In informational advertising, which is used when a new product is

first being introduced, the emphasis is on promoting the product name, benefits, and possible

uses. Car manufacturers used this strategy when sport utility vehicles (SUVs) were first

introduced.

Institutional Advertising: Institutional advertising takes a much broader approach,

concentrating on the benefits, concept, idea, or philosophy of a particular industry. Companies

often use it to promote image-building activities, such an environmentally friendly business

practices or new community-based programs that it sponsors. Institutional advertising is closely

related to public relations, since both are interested in promoting a positive image of the

company to the public. As an example, a large lumber company may develop an advertising

theme around its practice of planting trees in areas where they have just been harvested. A theme

of this nature keeps the companys name in a positive light with the general public because the

replanting of trees is viewed positively by most people.

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such as caps, glassware, gym bags, jackets, key chains, and pens. The value of specialty

advertising varies depending on how long the items used in the effort last. Most companies are

successful in achieving their goals for increasing public recognition and sales through these

efforts.

Different means of advertising

Advertising is the promotion of a companys products and services carried out primarily

to drive sales of the products and services but also to build a brand identity and communicate

changes or new product /services to the customers. Advertising has become an essential element

of the corporate world and hence the companies allot a considerable amount of revenues as their

advertising budget. There are several reasons for advertising some of which are as follows:

Increasing the sales of the product/service

Creating and maintaining a brand identity or brand image.

Communicating a change in the existing product line.

Introduction of a new product or service.

Increasing the buzz-value of the brand or the company.

Thus, several reasons for advertising and similarly there exist various media which can be

effectively used for advertising. Based on these criteria there can be several branches of

advertising. Mentioned below are the various categories or types of advertising:

Print AdvertisingNewspapers, Magazines, Brochures, Fliers

The print media have always been a popular advertising medium. Advertising products

via newspapers or magazines is a common practice. In addition to this, the print media also

offers options like promotional brochures and fliers for advertising purposes. Often the

newspapers and the magazines sell the advertising space according to the area occupied by the

advertisement, the position of the advertisement (front page/middle page), as well as thereadership of the publications. For instance an advertisement in a relatively new and less popular

newspaper would cost far less than placing an advertisement in a popular newspaper with a high

readership. The price of print ads also depend on the supplement in which they appear, for

example an advertisement in the glossy supplement costs way higher than that in the newspaper

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supplement which uses a mediocre quality paper.

Outdoor AdvertisingBillboards, Kiosks, Tradeshows and Events

Outdoor advertising is also a very popular form of advertising, which makes use of

several tools and techniques to attract the customers outdoors. The most common examples of

outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by

the company. The billboard advertising is very popular however has to be really terse and catchy

in order to grab the attention of the passersby. The kiosks not only provide an easy outlet for the

company products but also make for an effective advertising tool to promote the companys

products. Organizing several events or sponsoring them makes for an excellent advertising

opportunity. The company can organize trade fairs, or even exhibitions for advertising their

products. If not this, the company can organize several events that are closely associated with

their field. For instance a company that manufactures sports utilities can sponsor a sportstournament to advertise its products.

Broadcast advertisingTelevision, Radio and the Internet

Broadcast advertising is a very popular advertising medium that constitutes of several

branches like television, radio or the Internet. Television advertisements have been very popular

ever since they have been introduced. The cost of television advertising often depends on the

duration of the advertisement, the time of broadcast (prime time/peak time), and of course the

popularity of the television channel on which the advertisement is going to be broadcasted. The

radio might have lost its charm owing to the new age media however the radio remains to be the

choice of small-scale advertisers. The radio jingles have been very popular advertising media and

have a large impact on the audience, which is evident in the fact that many people still remember

and enjoy the popular radio jingles.

Covert AdvertisingAdvertising in Movies

Covert advertising is a unique kind of advertising in which a product or a particular brand

is incorporated in some entertainment and media channels like movies, television shows or even

sports. There is no commercial in the entertainment but the brand or the product is subtly( or

sometimes evidently) showcased in the entertainment show. Some of the famous examples for

this sort of advertising have to be the appearance of brandNokiawhich is displayed on Tom

Cruises phone in the movieMinority Report, or the use of Cadillaccars in the movieMatrix

Reloaded.

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Surrogate AdvertisingAdvertising Indirectly

Surrogate advertising is prominently seen in cases where advertising a particular product

is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to

heath are prohibited by law in several countries and hence these companies have to come up with

several other products that might have the same brand name and indirectly remind people of the

cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher

beer brands, which are often seen to promote their brand with the help of surrogate advertising.

Public Service AdvertisingAdvertising for Social Causes

Public service advertising is a technique that makes use of advertising as an effective

communication medium to convey socially relevant messaged about important matters and social

welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy,

poverty and so on. David Oglivy who is considered to be one of the pioneers of advertising andmarketing concepts had reportedly encouraged the use of advertising field for a social cause.

Oglivy once said, "Advertising justifies its existence when used in the public interest - it is much

too powerful a tool to use solely for commercial purposes.". Today public service advertising has

been increasingly used in a non-commercial fashion in several countries across the world in

order to promote various social causes. In USA, the radio and television stations are granted on

the basis of a fixed amount of Public service advertisements aired by the channel.

Celebrity Advertising

Although the audience is getting smarter and smarter and the modern day consumer

getting immune to the exaggerated claims made in a majority of advertisements, there exist a

section of advertisers that still bank upon celebrities and their popularity for advertising their

products. Using celebrities for advertising involves signing up celebrities for advertising

campaigns, which consist of all sorts of advertising including, television ads or even print

advertisements.

Advertising Objectives

Meaning and Importance

Advertising objectives are the communication tasks to be accomplished with specific

customers that a company is trying to reach during a particular time frame. A company that

advertises usually strives to achieve one of four advertising objectives: trial, continuity, brand

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switching, and switchback. Which of the four advertising objectives is selected usually depends

on where the product is in its life cycle.

Trial: The purpose of the trial objective is to encourage customers to make an initial purchase of

a new product. Companies will typically employ creative advertising strategies in order to cutthrough other competing advertisements. The reason is simple: Without that first trial of a

product by customers, there will not be any repeat purchases.

Continuity: Continuity advertising is a strategy to keep current customers using a particular

product. Existing customers are targeted and are usually provided new and different information

about a product that is designed to build consumer loyalty.

Brand Switching: Companies adopt brand switching as an objective when they want customersto switch from competitors brands to their brands. A common strategy is for a compan y to

compare product price or quality in order to convince customers to switch to its product brand.

Switchback: Companies subscribe to this advertising objective when they want to get back

former users of their product brand. A company might highlight new product features, price

reductions, or other important

The long-term objective of advertising, as of every other business activity, is to increasethe firm's net profits over what they would be without it. In some cases, increased profits are also

immediate objectives; but in others, they are not. Perhaps the most important short-term

objective of advertising is to provide support for personal selling and other methods of

promotion. Advertising is almost never used alone; generally it is cast in a supporting role to

other means of promotion.

However, advertising is an extremely versatile communications tool. Depending upon the

marketing situation, companies use advertising to achieve various marketing objectives:

1. To do the entire selling job (as in mail-order marketing)

2. To introduce a new product (by building brand awareness among potential buyers)

3. To force middlemen to handle the product (pull strategy)

4. To build brand preference (by making it more difficult for middlemen to sell substitutes)

5. To remind users to buy the product (retentive strategy)

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6. To publicize some change in marketing strategy (e.g., a price change, a new model, or an

improvement in the product)

7. To provide rationalizations for buying (i.e., socially acceptable" excuses)

8. To combat or neutralize competitors; advertising efforts

9. To improve the morale of dealers and/or salesmen

10. To acquaint buyers and prospective buyers with new uses of the product.

The above list is not all-inclusive but only illustrative of the broad range of objectives

advertising may be directed toward accomplishing. One danger in presenting such a list is that

the reader may get the idea that advertising is only something that the advertiser does to someone

else. However, for companies operating under the marketing concept, it is important to bear in

mind that advertising should also serve as an effective and efficient source of information for

members of the audience. Following the logic of the marketing concept, an information sourcecan only maximally serve the advertiser's purposes when it serves the target audience's

purposes. Advertising objectives, in other words, although they may be phrased in terms of

what the marketer would like to accomplish, should be appraised from the standpoint of their

effectiveness in providing needed and relevant information to members of the intended audience.

Difference between objective, goals and strategy

The strategies and tactics of a marketing plan are the direct plans and actions taken toachieve marketing objectives and goals. A marketing strategy is defined as your game plan to

achieve your objectives. Strategies can be simply aligned to broader categories in a marketing

plan, or they can be more formally aligned with the 4 Ps of marketing in an overall marketing

plan.

The 4 Ps of marketing include:

Productyour product(s) or services Pricewhat you will charge for products or services and how you will charge

Promotionhow you will promote your products and services to customers

Place (or distribution) how you will make your products or services available to

customers.

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Each of the 4 Ps of marketing includes a strategy. Examples of marketing strategies

include:

Launch a product that solves customers XYZproblem

Promote product throughlocal online advertising

Pricing discounts for long-term customers or subscriber programs

Make products available throughwell-branded affiliate programs

Tactics are defined as specific actions that will be taken in support of the marketing

strategies. Tactics are closed related to implementation steps and should include details on timing

and budget allocation. Examples of tactics for business marketing plans include:

Run banner ads monthly on XYZ website ; Send 10,000 direct mail pieces to existing customers in March ;

Create a monthly email newsletter to promote new products to customers ;

Set up a LinkedIn group as asocial media public relationschannel ;

Launch a telemarketing campaign in September to acquire 1,000 new customers.

Establishing a marketing plan that starts with well defined marketing objectives, goals,

strategies and tactics will keep a business focused on achieving results within a desired

framework.

DAGMAR Model

Introduction

DAGMAR is Defining Advertising Goals for Measured Advertising Results. It is

basically an approach to advertising planning and a precise method for selecting and quantifying

goals and for using those goals to measure performance. An advertising objective involves a

communication task, intended to create awareness, impart information, develop attitudes or

induce action. In the DAGMAR approach, the communication task is based on a specific model

of the communication process, as shown below.

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Communication Process in DAGMAR Approach

The model suggests that before the acceptance of a product by an individual, there is a

series of mental steps which the individual goes through. At some point of time, the individual

will be unaware of the product or offer in the market. The initial communication task of the

advertising activity is to increase consumer awareness of the product or offer. The second

step of the communication process is comprehension of the product or offer and involves the

target audience learning something about the product or offer. What are its specific

characteristics and appeals, including associated imagery and feelings? In what way does it differfrom its competitors? Whom is it supposed to benefit?

The third step is the attitude (or conviction) step and intervenes between comprehension

and final action. The action phase involves some overt move on the part of the buyer such as

trying a brand for the first time, visiting a showroom, or requesting information. The whole

communication process is a bit more complex. And under different circumstances, it may differ

slightly, but the basic concept revolves around what is mentioned in the paragraphs above. The

DAGMAR approach emphasizes the communication task of advertising. The second importantconcept of the approach is that the advertising goal be specific. It should be a written, measurable

task involving a starting point, a defined audience, and a fixed time period.

Awareness

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Awareness of the existence of a product or organization is necessary before the purchase

behavior can be expected. Once the awareness has been created in the target audience, it should

not be neglected. If there is neglect, the audience may become distracted by competing messages

and the level of awareness of focus product or organization will decline. Awareness needs to be

created, developed, refined or sustained, according to the characteristics of the market and the

particular situation facing an organization at any one point of time.

Awareness grid

Involvement

High Low

Awareness

HIGH

Sustain current levels

of awarenessRefine awareness

LOW Build awareness

quickly.

Create association of

awareness of product

with product class

need

In situations where:

Buyer experiences high involvement: Is fully aware of a products existence, attention and

awareness levels need only be sustained and efforts need to be applied to other communication

tasks. Sales promotion and personal selling are more effective at informing, persuading and

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provoking consumption of a new car once advertising has created the necessary levels of

awareness. The LG golden eye ads that are repeatedly shown inspite of high awareness to ensure

top of mind awareness and retain the existing awareness levels. Where low levels of awareness

are found, getting attention needs to be the prime objective in order that awareness can be

developed among the target audience.

Sahara Homes ad that features Amitabh Bachhan saying jaha base Bharat. Awareness

level is low, however it is a high involvement decision. Thus adequate attention is required and

awareness levels are raised with use of well-known and trusted celebrities.

Buyer experiences low involvement:

If buyers have sufficient level of awareness, they will be quickly prompted into purchase

with little assistance of the other elements of the mix. Recognition and brand image may be felt

by some to be sufficient triggers to stimulate a response. The requirement in such a situation

would be to refine and strengthen the level of awareness so that it provokes interest and

stimulates greater involvement during recall or recognition.

Parle G ad that talks about it being the largest seller Duniya ka sabse Zyada bikne

waala biscuit. Parle G as a brand already enjoys high levels of awareness and requires low

involvement decision, thus communication is mainly intended to refine awareness.

If buyers have low level of awareness, the prime objective has to be to create awareness

of the focus product in association with the product class.

When coils were popular in use and then the different repellants entered the market,

awareness had to be created about their benefits and use.

Comprehension

Awareness on its own may not be sufficient to stimulate a purchase. Knowledge about

the product or the organization is necessary. This can be achieved by providing specific

information about key brand attributes.

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In attempting to persuade people to try a different brand of water, it may be necessary to

compare the product with other mineral water products and provide an additional usage benefit,

such as environmental claims. The ad of Ganga mineral water, featuring Govinda, which banked

on the purity aspect. They related the purity of the water with that of river Ganga.

Conviction

The next step is to establish a sense of conviction. By creating interest and preference,

buyers are moved to a position where they are convinced that a particular product in the class

should be tried at the next opportunity. To do this, audiences beliefs about the product have to

be moulded and this is often done through messages that demonstrate the products superiority

over a rival or by talking about the rewards as a result of using the product.

Many ads like Thumbs Up featured the reward of social acceptance as grown up. It

almost hinted that those who preferred other drinks were kids.

Action

Communication must finally encourage buyers to engage in purchase activity.

Advertising can be directive and guide the buyers into certain behavioural outcomes,

Use of toll free numbers, direct mail activities and reply cards and coupons.

Tupperware, Aqua Guard, are famous in Indian cities as a result of its personal selling

efforts.

For high involvement decisions, the most effective tool in the communication mix at this

stage in the hierarchy is personal selling. Through the use of interpersonal skills, buyers are more

likely to want to buy a product than if personal prompting is absent.

Characteristics of Objectives

A major contribution of DAGMAR was Colleys specification of what constitutes a good

objective. Four requirements or characteristics of good objectives were noted

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Concrete and measurablethe communications task or objective should be a precise statement

of what appeal or message the advertiser wants to communicate to the target audience.

Furthermore the specification should include a description of the measurement procedure

Target audience a key tenet to DAGMAR is that the target audience be well defined. Forexample if the goal was to increase awareness, it is essential to know the target audience

precisely. The benchmark measure cannot be developed without a specification of the target

segment

Benchmark and degree of change soughtanother important part of setting objectives is

having benchmark measures to determine where the target audience stands at the beginning of

the campaign with respect to various communication response variables such as awareness,

knowledge, attitudes, image, etc. The objectives should also specify how much change or

movement is being sought such as increase in awareness levels, creation of favorable attitudes or

number of consumers intending to purchase the brand, etc. a benchmark is also a prerequisite to

the ultimate measurement of results, an essential part of any planning program and DAGMAR in

particular.

Specified time perioda final characteristic of good objectives is the specification of the time

period during which the objective is to be accomplished, e.g. 6months, 1 year etc. With a time

period specified a survey to generate a set if measures can be planned and anticipated.

Written Goal- finally goals should be committed to paper. When the goals are clearly written,

basic shortcomings and misunderstandings become exposed and it becomes easy to determine

whether the goal contains the crucial aspects of the DAGMAR approach.

***

UNIT II

ADVERTISING BUDGET

Objective:

After studying this chapter you should be able to understand :

Definition of advertising budget

Budgeting methods Media scheduling and selection

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Advertising Negotiations and Discounts

Relationship of Advertising to Other Promotional Tools

Factors to be considered for deciding advertising budget

Methods of determining advertising budget

Media planning and evaluation

Types of media

Current advertising media scenario in India

An estimation of a company's promotional expenditures over a period of time. An

advertising budget is the money a company is willing to set aside to accomplish its marketing

objectives. When creating the advertising budget, a company must weigh the trade-offs between

spending one additional advertising dollar with the amount of revenue that dollar will bring in as

revenue.

The advertising budget of a business typically grows out of the marketing goals andobjectives of the company, although fiscal realities can play a large part as well, especially for

new and/or small business enterprises. As William Cohen stated in The Entrepreneur and Small

Business Problem Solver, "In some cases your budget will be established before goals and

objectives due to your limited resources. It will be a given, and you may have to modify your

goals and objectives. If money is available, you can work the other way around and see how

much money it will take to reach the goals and objectives you have established." Along with

marketing objectives and financial resources, the small business owner also needs to consider thenature of the market, the size and demographics of the target audience, and the position of the

advertiser's product or service within it when putting together an advertising budget.

In order to keep the advertising budget in line with promotional and marketing goals, an

advertiser should answer several important budget questions:

1. Who is the target consumer? Who is interested in purchasing the advertiser's product or

service, and what are the specific demographics of this consumer (age, employment, sex,attitudes, etc.)? Often it is useful to compose a consumer profile to give the abstract idea

of a "target consumer" a face and a personality that can then be used to shape the

advertising message.

2. Is the media the advertiser is considering able to reach the target consumer?

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3. What is required to get the target consumer to purchase the product? Does the

productlenditself to rational or emotional appeals? Which appeals are most likely to

persuade the target consumer?

4. What is the relationship between advertising expenditures and the impact of advertising

campaigns on product or service purchases? In other words, how much profit is earned

for each dollar spent on advertising?

Answering these questions will provide the advertiser with an idea of the market

conditions, and, thus, how best to advertise within these conditions. Once this analysis of the

market situation is complete, an advertiser has to decide how the money dedicated to advertising

is to be allocated.

Budgeting Methods

There are several allocation methods used in developing a budget. The most common are listed

below:

Percentage of Sales method

Objective and Task method

Competitive Parity method

Market Share method

Unit Sales method

All Available Funds method

Affordable method

It is important to notice that most of these methods are often combined in any number of

ways, depending on the situation. Because of this, these methods should not be seen as rigid, but

rather as building blocks that can be combined, modified, or discarded as necessary. Remember,

a business must be flexibleready to change course, goals, and philosophy when the market and

the consumer demand such a change.

PERCENTAGE OF SALES METHOD.Due to its simplicity, the percentage of sales method

is the most commonly used by small businesses. When using this method an advertiser takes a

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percentage of either past or anticipated sales and allocates that percentage of the overall budget

to advertising. Critics of this method, though, charge that using past sales for figuring the

advertising budget is too conservative and that it can stunt growth. However, it might be safer for

a small business to use this method if the ownership feels that future returns cannot be safely

anticipated. On the other hand, an established business, with well-established profit trends, will

tend to use anticipated sales when figuring advertising expenditures. This method can be

especially effective if the business compares its sales with those of the competition (if available)

when figuring its budget.

OBJECTIVE AND TASK METHOD.Because of the importance of objectives in business, the

task and objective method is considered by many to make the most sense, and is therefore used

by most large businesses. The benefit of this method is that it allows the advertiser to correlateadvertising expenditures to overall marketing objectives. This correlation is important because it

keeps spending focused on primary business goals.

With this method, a business needs to first establish concrete marketing objectives, which are

often articulated in the "selling proposal," and then developcomplimentaryadvertising

objectives, which are articulated in the "positioning statement." After these objectives have been

established, the advertiser determines how much it will cost to meet them. Of course, fiscal

realities need to be figured into this methodology as well. Some objectives (expansion of areamarket share by 15 percent within a year, for instance) may only be reachable through

advertising expenditures that are beyond the capacity of a small business. In such cases, small

business owners must scale down their objectives so that they reflect the financial situation under

which they are operating.

COMPETITIVE PARITY METHOD.While keeping one's own objectives in mind, it is often

useful for a business to compare its advertising spending with that of its competitors. The theory

here is that if a business is aware of how much its competitors are spending to inform, persuade,

andremind(the three general aims of advertising) the consumer of their products and services,

then that business can, in order to remain competitive, either spend more, the same, or less on its

own advertising. However, as Alexander Hiam and Charles D. Schewe suggested in The

Portable MBA in Marketing, a business should not assume that its competitors have similar or

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even comparable objectives. While it is important for small businesses to maintain an awareness

of the competition's health and guiding philosophies, it is not always advisable to follow a

competitor's course.

MARKET SHARE METHOD.Similar tocompetitive parity,the market share method bases itsbudgeting strategy on external market trends. With this method a business equates its market

share with its advertising expenditures. Critics of this method contend that companies that use

market share numbers to arrive at an advertising budget are ultimately predicating their

advertising on an arbitrary guideline that does not adequately reflect future goals.

UNIT SALES METHOD.This method takes the cost of advertising an individual item

andmultipliesit by the number of units the advertiser wishes to sell.

ALL AVAILABLE FUNDS METHOD.This aggressive method involves the allocation of all

available profits to advertising purposes. This can beriskyfor a business of any size, for it means

that no money is being used to help the business grow in other ways (purchasing new

technologies, expanding the work force, etc.). Yet this aggressive approach is sometimes useful

when a start-up business is trying to increase consumer awareness of its products or services.

However, a business using this approach needs to make sure that its advertising strategy is an

effective one, and that funds which could help the business expand are not being wasted.

AFFORDABLE METHOD.With this method, advertisers base their budgets on what they can

afford. Of course, arriving at a conclusion about what a small business can afford in the realm of

advertising is often a difficult task, one that needs to incorporate overall objectives and goals,

competition, presence in the market, unit sales, sales trends, operating costs, and other factors.

MEDIA SCHEDULING

Once a business decides how much money it can allocate for advertising, it must then

decide where it should spend that money. Certainly the options are many, including print media

(newspapers, magazines, direct mail), radio, television (ranging from 30-second ads to 30-minute

infomercials), and the Internet. The mix of media that is eventually chosen to carry the business's

message is really the heart of the advertising strategy.

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SELECTING MEDIA.The target consumer, the product or service being advertised, and cost

are the three main factors that dictate what media vehicles are selected. Additional factors may

include overall business objectives, desired geographic coverage, and availability of media

options.

SCHEDULING CRITERIA.As discussed by Hiam and Schewe, there are three general

methods advertisers use to schedule advertising: the Continuity, Flighting, and Massed methods

ContinuityThis type of scheduling spreads advertising at a steady level over the entire

planning period (often month or year, rarely week), and is most often used when demand

for a product is relatively even.

FlightingThis type of scheduling is used when there are peaks and valleys in product

demand. To match thisunevendemand a stop-and-go advertising pace is used. Notice

that, unlike "massed" scheduling, "flighting" continues to advertise over the entire

planning period, but at different levels. Another kind of flighting is the pulse method,

which is essentially tied to the pulse or quick spurts experienced in otherwise consistent

purchasing trends.

MassedThis type of scheduling places advertising only during specific periods, and is

most often used when demand is seasonal, such as at Christmas or Halloween.

Advertising Negotiations and Discounts

No matter what allocation method, media, and campaign strategy that advertisers choose, there

are still ways small businesses can make their advertising as cost effective as possible. Writing

in The Entrepreneur and Small Business Problem Solver,author William Cohen put together a

list of "special negotiation possibilities and discounts" that can be helpful to small businesses in

maximizing their advertising dollar:

Mail order discountsMany magazines will offer significant discounts to businesses that

use mail order advertising.

Per Inquiry dealsTelevision, radio, and magazines sometimes only charge advertisers

for advertisements that actually lead to a response or sale.

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owners think about the four promotion tools, it becomes obvious why promotion managers must

use a mix. There are clear trade-offs to be made between the tools."

The choice of promotional tools depends on what the business owner is attempting to

communicate to the target audience. Public relations-oriented promotions, for instance, may bemore effective at buildingcredibilitywithin a community or market than advertising, which

many people see as inherently deceptive. Sales promotion allows the business owner to target

both the consumer as well as the retailer, which is often necessary for the business to get its

products stocked. Personal selling allows the business owner to get immediate feedback

regarding the reception of the business' product. And as Hills pointed out, personal selling allows

the business owner "to collect information on competitive products, prices, and service and

delivery problems."

All the companies or individuals provide for advertising budgets to create brand

awareness and proportionately increase the sales of the product or service offered to their

customers. However it is highly important to know the method of spending advertising budgets

fruitfully for the desired results. There should be no quarter for indiscriminate spending of the ad

budget without producing any tangible benefits to you.

The following factors must be kept in mind while spending advertising budgets foreffective results.

Factor # 1:

Prepare a marketing plan consistent with the objectives of your organization. The

advertising plan must only supplement the marketing plan by providing that little bit of

assistance in creating an awareness and brand image in the market.

Factor # 2:

You must clearly define and identify your real customers who must be targeted with your

advertising campaign. This makes the task of targeting them effortlessly and also does provide

the clues to reach them purposefully.

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Factor # 3:

You must clearly chart out the unique selling point of your product or service that can be

highlighted in your ad campaign. Your strengths and features must be spelt out succinctly in the

ad copy for achieving better results. The focus on your core idea helps to penetrate the market

and generate interest from the customers.

Factor # 4:

You can select an appropriate media that provides the maximum reach and contact with

your customers. The budget to be allocated to each media can be decided based on the forecasted

results anticipated from each source and can be changed depending on the results achieved by

you.

Factor # 5:You must time your advertising schedules so that they are visible and seen by your

targeted customers. This enables to keep track of your expenditures and the resulting sales that

emanate from your advertising scheduling.

Factor #6:

You should always track the response to the advertising campaign for fine tuning it if

necessary to get the optimal results. All these factors help to spend your advertising budget

prudently and derive the benefits that accompany the program.

Experiential Marketing Impetus is a steadfast team of highly experienced individuals

who together are able to design and deliver specialized event sampling, road shows, and

promotional campaigns.

5 Ms of Advertising:

MISSION: What are the Advertising objectives?

MONEY: How much can be spent? (Advertising budget)

MESSAGE: What message should be sent?

MEDIA: What media should be used?

MEASUREMENT: How should the results be evaluated?

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After the Target Market, market positioning and marketing mix decisions have been

taken the First step n developing an Advertising Program is:

1. MISSION OR SETTING THE ADVERTISING OBJECTIVES

Advertising Objectives can be classified as to whether their aim is:

To inform: This aim of Advertising is generally true during the pioneering stage of a product

category, where the objective is building a primary demand. This may include:

Telling the market about a new product

Suggesting new uses for a product

Informing the market of a price change Informing how the product works

Describing available services

Correcting false impressions

Reducing buyers fears

Building a company image

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Fig: 5 Ms of advertising

To persuade:Most advertisements are made with the aim of persuasion. Such advertisements

aim at building selective brand.

To remind: Such advertisements are highly effective in the maturity stage of the product. The

aim is to keep the consumer thinking about the product.

2. MONEY

This M deals with deciding on the Advertising Budget

The advertising budget can be allocated based on:

Departments or product groups

The calendar

Media used

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Specific geographic market areas

There are five specific factors to be considered when setting the Advertising budget.

Stage in PLC: New products typically receive large advertising budgets to buildawareness and to gain consumer trial. Established brands are usually supported with

lower advertising budgets as a ratio to sales.

Market Share and Consumer base: high-market-share brands usually require less

advertising expenditure as a percentage of sales to maintain their share. To build share

by increasing market size requires larger advertising expenditures. Additionally, on a

cost-per-impressions basis, it is less expensive to reach consumers of a widely used brand

them to reach consumers of low-share brands.

Competition and clutter: In a market with a large number of competitors and high

advertising spending, a brand must advertise more heavily to be heard above the noise in

the market. Even simple clutter from advertisements not directly competitive to the

brand creates the need for heavier advertising.

Advertising frequency: the number of repetitions needed to put across the brands

message to consumers has an important impact on the advertising budget.

Product substitutability:brands in the commodity class (example cigarettes, beer, soft

drinks) require heavy advertising to establish a different image. Advertising is alsoimportant when a brand can offer unique physical benefits or features.

3. MESSAGE GENERATION

Message generation can be done in the following ways:

Inductive:By talking to consumers, dealers, experts and competitors. Consumers are the major

source of good ideas. Their feeling about the product, its strengths, and weaknesses gives enough

information that could aid the Message generation process.

Deductive:John C. Meloney proposed a framework for generating Advertising Messages.

According to him, a buyer expects four types of rewards from a product:

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1. Rational

2. Sensory

3. Social

4. Ego Satisfaction.

Buyers might visualize these rewards from:

1. Results-of-use Experience

2. Product-in-use Experience

3. Incidental-to-use Experience

Message evaluation and selection

The advertiser needs to evaluate the alternative messages. A good ad normally focuses on one

core selling proposition. Messages can be rated on desirability, exclusiveness and believability.

The message must first say something desirable or interesting about the product. The message

must also say something exclusive or distinct that does not apply to every brand in the product

category. Above all, the message must be believable or provable.

Message execution.

The message impact depends not only upon what is said but also on how it is said. Some ads aim

for rational positioning and others for emotional positioning. While executing a message the

style, tone, words, and format for executing the message should be kept in mind.

Style. Any message can be presented in any of the following different execution styles, or a

combination of them:

Slice of life: Shows one or more persons using the product in a normal setting.Example: Coke 1litre ad, showed a family enjoying Coke, with a game of antakshari

when there is a power failure.

Lifestyle:Emphasizes how a product fits in with a lifestyle.

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Fantasy:Creates a fantasy around the product or its use.

Example: VIP Frenchie ads, showing a woman thinking of the Frenchie man saving her from a

villain.

Mood or image: Evokes a mood or image around the product, such as beauty, love, or

serenity. No claim is made about the product except through suggestion.

Example: Kingfisher Beer ads, saying the King of Good Times.

Musical: Uses background music or shows one or more persons or cartoon characters

singing a song involving the product.

Example: Ads of Old Spice After Shave Lotion

Personal i ty symbol:Creates a character that personifies the product. The character might

be animated

Example: Ronald McDonald for McDonalds

Techni cal experti se:Shows the company expertise, experience, and pride in making the

product.

Example: GE and Skoda ads

Scientif ic evidence:Presents survey or scientific evidence that the brand is preferred over

or outperforms other brands. This style is common in the over-the-counter drug category.

Example: Duracell Ads, claiming the battery lasts 6 times longer than ordinary batteries

Testimonial evidence:This features a highly credible, likable, or expert source endorsing

the product. It could be a celebrity or ordinary people saying how much they like the

product.

Example: In ads for Sunsilk, they had hair expert Coleen, endorsing the product.

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Tone: The communicator must also choose an appropriate tone for the ad. Example: Procter &

Gamble is consistently positive in its tone. Its ads say something superlatively positive about the

product, and humor is almost always avoided so as not to take mention away from the message.

Other companies use emotions to set the toneparticularly film, telephone, and insurance

companies, which stress human connections and milestones.

Words:Memorable and attention-getting words must be found. The following themes listed on

the left would have had much less impact without the creative phrasing on the right:

FORMAT: Format elements such as ad size, color, and illustration will make a difference in an

ads impact as well as its cost. A minor rearrangement of mechanical elements within the ad

can improve its attention-getting power. Larger-size ads gain more attention, though not

necessarily by as much as their difference in cost. Four-colour illustrations instead of black and

white increase ad effectiveness and ad cost. By planning the relative dominance of different

elements of the ad, optimal delivery can be achieved.

4. MEDIA

The next element to be considered while making an Advertisement Program is the Media

through which to communicate the Message generated during the previous stage. The steps to be

considered are:

5.MEASUREMENT

Evaluating the effectiveness of the Advertisement Program is very important as it helps

prevent further wastage of money and helps make corrections that are important for further

advertisement campaigns. Researching the effectiveness of the advertisement is the most used

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method of evaluating the effectiveness of the Advertisement Program. Research can be in the

form of:

Communication-Effect Research

Sales-Effect Research

There are two ways of measuring advertising effectives. They are:

Pre-testing : It is the assessment of an advertisement for its effectiveness before it is actually

used. It is done through

Concept testing- how well the concept of the advertisement is. This is be done by taking

expert opinion on the concept of the ad.

Test commercialstest trial of the advertisement to the sample of people

Finished testing

Post-testing: It is the assessment of advertisement effectiveness after it has been used. It is

done in two ways:

Unaided recalla research technique that asks how much of an ad a person remembers

during a specific period of time

Aided recalla research technique that uses clues to prompt answers from people about

ads they might have seen from any of the mass media vehicles.

Methods for determining advertising budget

There are several percentage methods used in developing a budget. The most typical are

listed below:

The advertising budget making process:

Advertising budget is not an exception to the general budget. It is a functional budget

setting the goals and objectives in terms of income and expenditure on advertising during a

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specified period which is called as budget period. While preparing any budget the person who is

entrusted with this function must observe two fundamental aspects, viz.,

1. Budget must be constructed with the financial capabilities of the company

otherwise the plans set will remain unexecuted due to short of funds;2. It must be specifically contain the details on the allocation of funds to specific

operations. Only then, it will be able to perform its single most important purpose

of budgetary control.

Steps in advertising budget making process:

1. Collection of data and preparation of budget;

2.

Presentation and approval of the budget;3. Budget execution; and

4. Control of budget or budgetary control.

Step 1 contains the collection of datapertaining to the marketing mix strategies, target

market, competition, competitors strategies, media and media characteristics, innovative

practices in the market at present and to be in future. These details will enable the budget

preparation authorities to consider the allocation of funds as per the requirements and for

achieving the optimality for spending the funds for the possible achievement of the goals.

Step 2 explains about preparation and approval of the budget. This step is executed

by the advertising head of the company or the firm with the support of the agency

personnel or with the assistance of some specialists and finally the draft will be submitted

to the top level management of the firm. The utmost important aspect to be kept in mind

executing this step is to see that whether the organizational goals are given due

importance on priority basis or not while allocation of the funds are made.

Step 3 describes about the way the advertising budget is executed. It discusses about

the various media mix decisions or media mix strategies finalization. During this stage

the advertising manager has to continuously verify the allocation is done appropriately or

not as per the plan.

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Advertising media generally include:

Television

Radio

Newspapers

Magazines (consumer and trade)

Outdoor billboards

Public transportation

Yellow Pages

Direct mail

Specialty advertising (on items such as matchbooks, pencils, calendars, telephone pads,shopping bags and so on)

Other media (catalogs, samples, handouts, brochures, newsletters and so on)

When comparing the cost and effectiveness of various advertising media, consider thefollowing factors:

Reach.Expressed as a percentage, reach is the number of individuals (or homes) you want toexpose your product to through specific media scheduled over a given period of time.

Frequency. Using specific media, how many times, on average, should the individuals inyour target audience be exposed to your advertising message? It takes an average of three ormore exposures to an advertising message before consumers take action.

Cost per thousand.How much will it cost to reach a thousand of your prospective customers(a method used in comparing print media)? To determine a publication's cost per thousand,also known as CPM, divide the cost of the advertising by the publication's circulation inthousands.

Cost per point.How much will it cost to buy one rating point for your target audience, amethod used in comparing broadcast media. One rating point equals 1 percent of your target

audience. Divide the cost of the schedule being considered by the number of rating points itdelivers.

Impact.Does the medium in question offer full opportunities for appealing to the appropriatesenses, such as sight and hearing, in its graphic design and production quality?

Selectivity.To what degree can the message be restricted to those people who are known tobe the most logical prospects?

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Reach and frequency are important aspects of an advertising plan and are used to analyzealternative advertising schedules to determine which produce the best results relative to themedia plan's objectives. Frequency is important because it takes a while to build up awarenessand break through the consumer's selection process. People are always screening out messagesthey're not interested in, picking up only on those things that are important to them. Repetition is

the key word here. For frequency, it's much better to advertise regularly in small spaces than it isto have a one-time expensive advertising extravaganza.

F ig: Media Planning Process

Media

Planning

Process:

Situation

analysis

* Strategy &

targets (business/brand/consumer)

* Market situation and competition analysis

* Marketing und media objectives

Objectives

* Definition of communication objectives

* cognitive-oriented objectives (awareness, recall)

* affective-oriented objectives (interest, brand positioning,

brand development, brand management)

* conative-oriented objectives (purchase intentions,

customer loyalty)

Target group analysis

* target group identification: two-step segmentation process

* definition of core target groups based on

- demographic characteristics (age, gender)

- psychographic characteristics (interests, buying habits)

- socioeconomic characteristics (occupation, social status,

income, buying power)

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- behavioural characteristics (buying behaviour, decision behaviour)

Strategic media planning

* Campaign strategy (duration, timing, recency/burst strategy)

* Media mix and budgeting

* Advertising impact

* Ad specials

Detail planning/Optimization

* Detail planning for each media channel

* Availability

* Dates of publication

* Selection of time slots

* Positioning within the magazine or commercial breakPurchasing

* Booking (order management, production plans)

* Job handling (artwork, tapes)

* Rescheduling/Optimization

Completion

* Controlling, documentation

* Invoicing

Evaluation/Controlling

* Campaign performance (expost analysis)

* Planning, purchasing efficiency

* Competition reporting

Negotiations/Discounts

* Special conditions, performance optimization

* Client-specific agreements

Evaluation of important media

Print media

1. Newspapers.Newspapers are one of the traditional mediums used by businesses, both big

and small alike, to advertise their businesses.

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Advantages

Allows to reach a huge number of people in a given geographic area

Consisting the flexibility in deciding the ad size and placement within the newspaper

The ad can be as large as necessary to communicate as much of a story as we care to tell

Exposure to the ad is not limited; readers can go back to the message again and again if

so desired.

Free help in creating and producing ad copy is usually available

Quick turn-around helps the ad reflect the changing market conditions. The ad decided to

run on any day can be in the customers hands in one to two days.

Disadvantages

Ad space can be expensive.

The ad has to compete against the clutter of other advertisers, including the giants ads

run by supermarkets and department stores as well as the ads of the competitors

Poor photo reproduction limits creativity

Newspapers are a price-oriented medium; most ads are for sales

Expected that the ads have a short shelf life, as newspapers are usually read once and

then discarded. It may be paying to send the message to a lot of people who will probably never be in the

market to buy from.

Newspapers are a highly visible medium, so the competitors can quickly react to the

prices.

With the increasing popularity of the Internet, newspapers face declining readership and

market penetration. A growing number of readers now skip the print version of the

newspaper (and hence the print ads) and instead read the online version of the

publication.

2. Magazines.Magazines are a more focused, albeit more expensive, alternative to newspaper

advertising. This medium allows reaching highly targeted audiences.

Advantages

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Allows for better targeting of audience, as one can choose magazine publications that

cater to the specific audience or whose editorial content specializes in topics of interest to

the audience.

High reader involvement means that more attention will be paid to the advertisement

Better quality paper permits better color reproduction and full-color ads.

Disadvantages

Long lead times mean that it has to make plans weeks or months in advance.

The slower lead time heightens the risk of the ad getting overtaken by events.

There is limited flexibility in terms of ad placement and format.

Space and ad layout costs are higher.

3. Yellow Pages. There are several forms of Yellow Pages that we can use to promote and

advertise the business. Aside from the traditional Yellow Pages supplied by phone companies,

we can also check out specialized directories targeted to specific markets (e.g. Hispanic Yellow

Pages, Blacks, etc.); interactive or consumer search databases; Audio text or talking yellow

pages; Internet directories containing national, local and regional listings; and other services

classified as Yellow Pages.

Advantages

Wide availability, as mostly everyone uses the Yellow Pages Non-intrusive Action-oriented, as the audience is actually looking for the ads Ads are reasonably inexpensive Responses are easily tracked and measured Frequency

Disadvantages

Pages can look cluttered, and the ad can easily get lost in the clutter

The ad is placed together with all the other competitors

Limited creativity in the ads, given the need to follow a pre-determined format

Ads slow to reflect market changes

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4. Radio

Advantages

Radio is a universal medium enjoyed by people at one time or another during the day, at

home, at work, and even in the car.

The vast array of radio program formats offers to efficiently target the advertising

expenses to narrowly defined segments of consumers most likely to respond to the offer.

Gives the business, personality, through the creation of campaigns using sounds and

voices

Free creative help is often available

Rates can generally be negotiated

During the past several years, radio rates have seen less inflation than those for othermedia

Disadvantages

Because radio listeners are spread over many stations, it may have to advertise

simultaneously on several stations to reach the target audience

Listeners cannot go back to the ads to go over important points

Ads are an interruption in the entertainment. Because of this, a radio ad may require

multiple exposure to break through the listener's "tune-out" factor and ensure message

retention

Radio is a background medium. Most listeners are doing something else while listening,

which means that the ad has to work hard to get their attention

5. Television

Advantages

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Television permits to reach large number of people on a national or regional level in a

short period of time

Independent stations and cable offer new opportunities to pinpoint local audiences

Television being an image-building and visual medium, it offers the ability to convey the

message with sight, sound and motion

Disadvantages

Message is temporary, and may require multiple exposure for the ad to rise above the

clutter

Ads on network affiliates are concentrated in local news broadcasts and station breaks

Preferred ad times are often sold out far in advance

Limited length of exposure, as most ads are only thirty seconds long or less, which limits

the amount of information we can communicate

Relatively expensive in terms of creative, production and airtime costs

6. Direct Mail. Direct mail, often called direct marketing or direct response marketing, is a

marketing technique in which the seller sends marketing messages directly to the buyer. Direct

mail includes catalogs or other product literature with ordering opportunities; sales letters; and

sales letters with brochures.

Advantages

The advertising message is targeted to those most likely to buy the product or service.

Marketing message can be personalized, thus helping increase positive response.

The message can be as long as is necessary to fully tell the story.

Effectiveness of response to the campaign can be easily measured.

We can have total control over the presentation of the advertising message.

The ad campaign is hidden from competitors until it's too late for them to react

Active involvement - the act of opening the mail and reading it -- can be elicited from the

target market.

Disadvantages

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Some people do not like receiving offers in their mail, and throw them immediately

without even opening the mail.

Resources need to be allocated in the maintenance of lists, as the success of this kind of

promotional campaign depends on the quality of the mailing list.

Long lead times are required for creative printing and mailing

Producing direct mail materials entail the expense of using various professionals -

copywriter, artists, photographers, printers, etc.

Can be expensive, depending on the target market, quality of the list and size of the

campaign.

7. Telemarketing. Telephone sales, or telemarketing, is an effective system for introducing a

company to a prospect and setting up appointments.

Advantages

Provides a venue where it can easily interact with the prospect, answering any questionsor concerns they may have about the product or service.

It's easy to prospect and find the right person to talk to.

It's cost-effective compared to direct sales.

Results are highly measurable.

We can get a lot of information across if the script is properly structured. If outsourcing, set-up cost is minimal

Increased efficiency since we can reach many more prospects by phone than we can with

in-person sales calls.

Great tool to improve relationship and maintain contact with existing customers, as well

as to introduce new products to them

Makes it easy to expand sales territory as the phone allows to call local, national and even

global prospects.

Disadvantages

An increasing number of people have become averse to telemarketing. More people are using technology to screen out unwanted callers, particularly

telemarketers

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Government is implementing tougher measures to curb unscrupulous telemarketers

Lots of businesses use telemarketing.

May need to hire a professional to prepare a well-crafted and effective script

It can be extremely expensive, particularly if the telemarketing is outsourced to an

outside firm

It is most appropriate for high-ticket retail items or professional services.

8. Specialty Advertising. This kind of advertising entails the use of imprinted, useful, or

decorative products called advertising specialties, such as key chains, computer mouse, mugs,

etc. These articles are distributed for free; recipients need not purchase or make a contribution to

receive these items.

Advantages:

Flexibility of use

High selectivity factor as these items can be distributed only to the target market.

If done well, target audience may decide to keep the items, hence promoting long

retention and constant exposure

Availability of wide range of inexpensive items that can be purchased at a low price.

They can create instant awareness.

They can generate goodwill in receiver

The items can be used to supplement other promotional efforts and media (e.g.

distributed during trade shows).

Disadvantages

Targeting the market is difficult.

This can be an inappropriate medium for some businesses.

It is difficult to find items that are appropriate for certain businesses Longer lead time in developing the message and promotional product

Possibility of saturation in some items and audiences Wrong choice of product or poor creative may cheapen the image of advertiser.

COMPUTER MEDIA SELECTION

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The search engines have accentuated the use of information technology in

advertisements. Considering the mindset of a common buyer, one can establish that he seeks

information before making a major buying decision. Now, Internet is also put to use through

search engines for seeking information related to product, service, price, specifications,

comparison, etc. The users seeking information regarding buying decision making can also be

influenced with the online advertising tools. This calls for premier Internet advertising agencies.

With Internet advertising opening its door, it is possible for the advertisers to gain

momentum through it. To place banner advertisements online there are lot of factors that have to

be managed strategically. The searches from the users can also be used to bring traffic to your

web presence. It can be efficiently done by working with Internet advertising agencies. It is all

about identifying the growth opportunities online. Consider the growth through following data,

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which tells that India has over 46 million Internet users (IAMAI). Both, global and Indian brands

are increasing ad spends to remain at an edge above the competition.

Another important data from IAMAI grabs the attention. It reveals that Rs.236 crores of

annual ad spends were made in 2006 for targeting Indian users. It is considerable money spentover online advertisements. The strategic promotions have to be synchronous with expert

knowledge of Internet advertising agencies. Online advertising and promotion needs to be done

with a well planned and targeted approach. The online ad agencies prove to be wonderful

resources where graphic experts can give your campaign a dynamic shape. This is all due to their

innovative ad designing skills. The reach to target audience is not confined to conventional

methods alone.

The large base of Internet users has so much to offer in terms of potential customer

responses and leads. In addition, the Internet being spread across the very length and breadth of

the globe, it becomes useful for online advertising. It is essential in building brands, which

generally need striven efforts to become distinguished. In presence of vast audience, consider the

clicks and impressions that can be achieved from the desired corner of the globe. This can be

quite effective to make your brands identified. Even so, Internet advertising works on feasible

cost models. This makes Internet advertising agencies the cost effective partners to reach target

audience.

Marketing is the process by which goods are sold and purchased. The aim of marketing is

to acquire, retain, and satisfy customers. Modern marketing has evolved into a complex and

diverse field. In today's extremely competitive business environment businesses are searching for

ways to improve profitability and to maintain their position in the marketplace. As competition

becomes more intense the formula for success becomes more difficult. One particular thing has

greatly aided companies in their quests to accomplish these goals and that is the computer. Some

of the roles computers play in these changing marketing trends is as follows. One role ofcomputers in marketing is inventory control. Computers are now used to keep records of

inventory. Inventory keeping allows Inventory control systems maintain information about

activities within firms that ensure the delivery of products to customers. The subsystems that

perform these functions include sales, manufacturing, warehousing, ordering, and receiving.

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Softwares like Simple Inventory, Microsoft Access, Mess Less Inventory Management System

and Jump Box facilitate automated inventory management. It makes it easy to retrieve, save and

change stocks, customer details, market niches, and sales. Secondly, computers are used in

product and market analysis. Systematic gathering, recording, and analysis of data about issues

relating to marketing products and services are currently done using computers. The goal of this

is to identify and assess how changing elements of the marketing mix impacts customer behavior

quickly. Computers are able to analyze a greater sample of market niches and make forecasting

more precise than the previous ways of getting the study done.

Current Ad Media scene in India

Communication is experiencing a series of rapid changes. Last few decades have

witnessed the development of new communication system and pieces of equipments that have

great potential in enhancing our communication capabilities. The same series of development has

also reached far beyond the communication field and has numerous implications for both

developed and developing societies. The spread of mass media has been among the most

powerful forces for social changes in developing as well as developed countries. The media have

broadened narrow horizons, accelerated the pace of transformation and created a climate of

readiness for development. Studies revealed that communication could alter the form and shape

of our life style if used to overcome development problems. But impact has not always been

beneficial. The media and communication are still seen as a tool for entertainment or

propaganda, their potential in stimulating directed development remaining largely unrealized in

the majority of countries. It has been calculated that less than 10 percent of broadcasting hours in

third world are devoted to educational and developmental purposes. At the same time most

development project and programme go ahead without a media or communication element.

Planners concentrate on physical and economic factor while the human element is ignored. The

people often lack the information they need to cope with new situations, while the government

do not get the information they need on peoples needs, priorities and possibilities. Thusdevelopment and communication are out of gear. On one hand we have development action

without media or communication support. Yet in an ideal world the two would work hand in

hand. It is curious that there is this neglect of communication in development that so often

communication is a missing link in a development inputs. For communication, has now proved

itself beyond dispute in many successful projects and programmes in the sphere of agriculture,

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education, family planning, health and nutrition etc. Properly designed and coordinated with

other development efforts, the communication input can inform people of new idea and

techniques help to change attitudes and stimulate popular participation & self help more rapidly

and effectively than conventional approach.

The recent breakthrough in communication technologies has resulted in emergence of

various basic devices such as television, video, satellite, tele-text, videotext, audio text,

computers, print media and wide range of projection devices. Now more advance devices and

materials are available as a result of modification or combination of these devices, thes