CONCEPT & GROWTH OF ADVERTISINGLecture 1

ADVERTISING MARKETING

Marketing

Advertising

MARKETING

“Marketing is about indentifying and meeting human and social needs”.

“Marketing is meeting needs profitably”

“Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”

UNDERSTANDING NEEDS, WANTS & DEMANDS

Needs are the basic human requirements like air, food, water, clothing, etc.

UNDERSTANDING NEEDS, WANTS & DEMANDS

Needs become Wants when they are directed to specific object that might satisfy the need. Like someone who needs food may want to eat ‘Biryani’.

UNDERSTANDING NEEDS, WANTS & DEMANDS

Demands are wants for specific products backed by an ability to pay.

UNDERSTANDING VALUE

A product or service is sold only when it offers certain benefits to the customers. The customer chooses between different oproducts and selects one which he/she perceives delivering the maximum value.

Therefore, Value reflects the sum total of the perceived tangible and intangible benefits and costs to customers. Value increases with quality and service…decreases with price.

“Itni worth nahi hai…”

UNDERSTANDING STP

Segmentation

Targeting

Positioning

SEGMENTATION

Segmentation is the process of dividing the market based on customers’ geographical, psychographical, behavioral and demographic characteristics and needs.

Segmenting consists of four sub activities. These are:

1. determining who the actual and potential customers are

2. identifying segments

3. analyzing the intensity

of competitors in the market

4. selecting the attractive

customer segments

TARGETING

After the most attractive segments are selected, the company must define the segments. Following sub activities form the basis for deciding which segments will actually be targeted:

1. defining the abilities of the company and resources needed to enter a market

2. analyzing competitors on their resources and skills

3. considering the company’s abilities compared to the competitors' abilities

4. deciding on the actual target markets.

POSITIONING

Positioning is the way by which the marketer tries to create a distinct image of the product or service into the minds of the customers.

Positioning attempts to sell the benefits of the product or service to the customer by targeting his mind.

UNDERSTANDING STP THROUGH ADS

Eg. Surf Excel & Tata Nano ads

IN CLASS ACTIVITY

Implement the STP concept to launch a product / service in your class.

UNDERSTANDING USP

USP – Unique Selling Proposition

UNDERSTANDING USP

Each advertisement must say to the audience “Buy this product for this specific benefit”

This ‘specific benefit’ is the Proposition of the product.

The proposition must be one that the competition doesn’t or cannot offer.

It must be strong enough to move the masses.

USP EXAMPLES

Head & Shoulders – Get rid of dandruff

Volvo - Safety

Dominos – Hot pizza at your door steps in 30 minutes or free

Indigo Ad

Air Deccan Ad

WHAT IS ADVERTISING??

It is an Act of Bringing a Product or Service to the

Attention of the Consumer…

Advertising is a paid, non-personal communication of information from an identified sponsor using mass media to persuade or influence an audience so as to maximize profits.

WHAT IS NOT ADVERTISING??

>Offering premiums to stimulate sales

>Entertaining customers through various activities like shows, music, etc.

>Use of exhibitions and demonstrations at shows and fairs

>Use of samples and activities involving personal selling

>Talk shows, etc.

WHY DO WE USE ADVERTISING???

> To inform and educate people about the products and services offered. (Eg. Amway Ad)

> To make the brand name familiar to the public

>To Enhance the brand image

>To Differentiate the product/ service in competition to others

>To Enhance sales

>To tell the public about improvements in the product / service

>To reinforce customer confidence in his/ her purchase

(>>>Incredible India Campaign)

Give examples of the commercials where you saw the above concepts being used.

UNDERSTANDING THE FEATURES OF ADVERTISING

>It is a Paid Form of Marketing

>It is a Non-personal presentation and promotion by the advertiser to the prospect/ customer

>It is used to promote Products, Services as well as Ideas. (Eg. Ideas…??? Government of NCT Ad + Chidiya Song)

>Advertising is undertaken by an identified company or individual

>The contents are controlled by the advertiser.

>It is a persuasive form of communication in order to achieve the advertiser’s objectives

UNDERSTANDING THE FEATURES OF ADVERTISING

>It is both science and arts. The theories learnt in the classrooms are practically implemented in designing ad campaigns

>It involves creativity

>Its an investment by the company / individual

>It is goal-oriented to achieve something

LETS SEE SOME PRINT ADS

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LETS SEE SOME PRINT ADS

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HOW ADVERTISING WORKS

What is the job of Advertising???

>Increase Sales?

>Enhance Brand Image?

>To inform about the product / services?

>To differentiate?

No matter what the objective is, advertising definitely tries to deal with the maintenance or changing of attitude of the customers.

HOW ADVERTISING WORKS / COMMUNICATION RESPONSE SEQUENCE

In order to maintain the attitude of the customers and to persuade, the advertising message must cross through the following five steps:

STEP 1: The message must be presented to the target audience first.

STEP 2: The target audience must pay attention to the message.

STEP 3: After they have paid attention, they must comprehend what is shown to them.

HOW ADVERTISING WORKS / COMMUNICATION RESPONSE SEQUENCE

STEP 4: Once the Target Audience has understood the message, he must yield to the arguments shown in the message…Else he would not consider the message credible.

STEP 5: Once they have accepted the argument, they must behave as desired by the message.

ADVERTISEMENT PLANNINGA company lays a marketing plan as per its profit objectives. The marketing plan states how the marketing communication efforts will help meet those objectives. Planning sequence shall be as follows:

Step 1: Objectives for Target Audience Action

>Non-users shall try the product

>Existing users shall continue the use or shall use more frequently

Step 2: Communication Effects

>The planning manager decides how to position the brand and which communication effects need to be established in the minds of the target audience.

>These communication effects will lead to action

ADVERTISEMENT PLANNING

Step 3: Processing

>Once the communication objectives have been determined, the next step is to design a creative strategy in order to achieve the communication objective.

>At this stage the manager decides how the target audience will comprehend the advertisement

Step 4: Exposure

>At this stage the manger decides how best to expose the advertisement to the target audience

>Which media to be used?

>Where to reach the target audience

CONSUMER RESPONSE SEQUENCE VS ADVERTISEMENT PLANNING

Planning always starts with the end in mind. Advertisement planning is done to achieve a desired action from the Target Audience. While CRS describes the Target Audience responds to a particular advertisement.

Their sequence is just opposite to each other.

Planning CRS

Step 1 Target Audience Action

Behave Step 4

Step 2 Communication Effects

YieldRetain

Step 3

Step 3 Processing AttentionComprehend

Step 2

Step 4 Exposure Presented Step 1

HIERARCHY OF ADVERTISEMENT’S EFFECTIVENESS

100% Target Audience

75% Aware of the Product

50% Shows Some Interest In the Product

30% Preferred the Product

25% Purchased the Product

15% Repurchased

SOME DO’S ABOUT ADVERTISING

Advertising should be Informative

Advertising should be Entertaining

Advertising should be Involving

SOME DON’TS ABOUT ADVERTISING

>Never over promise or over claim about your product

>Never show something that might insult your customer

>Never try to compare your product or disrespect your competitors

>Even if you show your competitors, it should be memorable and not in a bad taste. Eg. Sprite Ad

BENEFITS OF ADVERTISING

Benefits To Manufacturers

>Introducing new products and creating awareness

>Helps to create regular demand

>Helps in expanding the customer base

>Helps in creating more demand

>Helps in Fighting market competition

>Establishes a favorable image for the product

BENEFITS OF ADVERTISING

Benefits to the Customers>Informs and educates about the product

>Helps in comparing products and making choices easier

>Reduces prices due to large scale production

Benefits to the Society>Generates employment

>Improves standard of living by providing new and improved products

>Important source of revenue for the press

>Helps to solve social problems

CRITICISM OF ADVERTISING

>It is assumed that large amounts spent on advertisements are transferred to the customers as higher prices.

>It creates artificial needs and encourages wasteful production

>It is deceptive and misleading

>Sometimes it is offensive and in bad taste

>Consumption of harmful products

>Discontented society

ASSIGNMENT

Make a folder of Print Ads and comment to incorporate the concepts learnt in today’s class…

ORIGIN & DEVELOPMENT OF ADVERTISING

>Egyptians used papyrus to make sales messages and wall posters.

>Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia

ORIGIN & DEVELOPMENT OF ADVERTISING

>Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America.

>The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BCE.

>Out-of-home advertising and billboards are the oldest forms of advertising.

ORIGIN & DEVELOPMENT OF ADVERTISING

>As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour.

>Fruits and vegetables were sold in the city from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the customers.

Eg. Town Crier

ORIGIN & DEVELOPMENT OF ADVERTISING – PEARS CASE STUDY

>In 18th Century, with the development of the press, Advertising started appearing in the newspapers in England in the Weekly newspapers.

>Later handbills were introduced

>Thomas J. Barratt from London has been called "the father of modern advertising“.

>Working for the Pears Soap company, he created an effective advertising campaign and Pears Soap became the world's first legally registered brand and is therefore the world's oldest continuously existing brand.

>An advertising tactic that he used was to associate the Pears brand with high culture and quality. He developed a series of adverts of well groomed middle-class children, associating Pears with domestic comfort and aspirations of high society.

ORIGIN & DEVELOPMENT OF ADVERTISING – PEARS CASE STUDY

>Barrat established Pears Annual in 1891, a magazine which promoted contemporary illustration and colour printing and in 1897 added the Pears Cyclopaedia a one-volume encyclopaedia.

>From the early 20th century Pears was famous for the annual "Miss Pears" competition in which

parents entered their children into

the high-profile hunt for a young brand

ambassador to be used on packaging

and in consumer promotions.

>He recruited scientists and the

celebrities of the day to publicly

endorse the product.

ORIGIN & DEVELOPMENT OF ADVERTISING – PEARS CASE STUDY

>Barratt introduced many of the crucial ideas that lie behind successful advertising and these were widely circulated in his day.

>He constantly stressed the importance of a strong and exclusive brand image for Pears and of emphasizing the product's availability through saturation campaigns.

>He also understood the importance of constantly re-evaluating the market for changing tastes and mores, stating in 1907 that "tastes change, fashions change, and the advertiser has to change with them. An idea that was effective a generation ago would fall flat, stale, and unprofitable if presented to the public today. Not that the idea of today is always better than the older idea, but it is different - it hits the present taste.

DEVELOPMENT OF ADVERTISING IN US

>Advertising increased dramatically in the United States as industrialization expanded the supply of manufactured products. In order to profit from this higher rate of production, industry needed to recruit workers as consumers of factory products. It did so through the invention of mass marketing designed to influence the population's economic behaviour on a larger scale.

>Advertising was also used as a vehicle for cultural assimilation, encouraging workers to exchange their traditional habits and community structure in favour of a shared "modern" lifestyle.

>In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers.

>When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows.

SELF STUDY

>Public service advertising in WW2

>Commercial television in the 1950s

>Media diversification in the 1960s

>Cable television from the 1980s

>On the Internet from the 1990s

THANK YOU