imc ba 7014 unit 1
TRANSCRIPT
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Introduction to Advertisement
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1. Concept of Advertisement Advertisement/Ad/Ad-Film/Commercial
From Latin word which means “to turn attention of people to specific thing”
Is a from of communication
Represents the message/idea of the sender
Targeted at a mass audience – mass persuasion apart from disseminating information to target customers
Not always the efficient way of reaching people
Usually paid by sponsors and viewed on different media
A combination of creativity, market research & economic media buying
Diverse field
Ultimate aim is to increase sales
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2. Meaning & Definition Derived from Latin word ‘advertere’ which means to turn on
attention
Powerful communication medium & vital marketing tool to help sale of goods
Convinces people to buy product
Contains information & persuasion
According to America Marketing Association, “Advertising is any paid form of non-personal presentation of ideas, goods or services by an identified sponsor”
According to William J. Stanton, “Advertising consists of all activities involved in presenting to a group, a non-personal, oral or visual, openly-sponsored message regarding a product, service or idea, this message is called advertisement, is disseminated through one or more media and is paid for by an identified sponsor”
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3. Features of Advertisement
Paid form Ideas, goods & services Controlled Persuasive act Competitive act
Non-personal presentation & promotion
Identified sponsor Mass communication
media Not neutral; not
unbiased Informative act
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4. Scope of Advertisement
1. Message
2. Media
3. Merchandise
4. Advertising functions
5. Advertiser
6. Objectives
7. Activities
8. Art & Science
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5. Objectives of Advertisement1. Informing
2. Influencing
3. Reminding
4. Adding Value
5. Assisting with other company efforts
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6.Functions of Advertisement
1. Communication with customer
2. Persuasion
3. Contribution to economic growth
4. Catalyst for change
5. Stimulates demand
6. Strengthens other promotion mix element
7. Develops brand preference
8. Reduce costs
9. Lower prices
10.Competitive weapon
11.Brand image building
12.Innovation
13.Growth of media
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Principles of Advertisement
Grab people Be clever & creative Speak loudly Do not make people think Use colors that make sense Be informative Be memorable Show not tell Use humor
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Types of Advertisement
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Classification
On basis of geographical spread On basis of target group On the basis of demand influence level On the basis of Corporate Philosophy On the basis of Timing of the response it elicits On the basis of media Miscellaneous
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A. On the basis of Geographical Spread
Global Advertising National Advertising Local Advertising
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B. On the basis of Target Group
Consumer Advertising Trade Advertising Industrial Advertising Professional Advertising
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C. On the basis of Demand Influence Level
Primary Demand (Stimulation) Selective Demand (Stimulation)
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D. On the basis of Corporate Philosophy
i. Corporate Advertising
ii. Brand Advertising
a. Informative Brand Advertising
b. Persuasive Brand Advertising
c. Reminder – Oriented Brand Advertising
d. Negative Advertising
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E. On the basis of the Timing of Response it Elicits
i. Direct action advertising
ii. Indirect action advertising
iii. Surrogate advertising
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F.On the basis of media
Audio Visual Audio-Visual Written Internet Verbal
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G. Miscellaneous
Covert Institutional Product
i. Pioneering Advertising
ii. Competitive Advertising
iii. Reminder Advertising
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Advantages of Advertisement
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To Manufacturers
Increased sales Steady demand Lower costs Greater dealer interest Quicker turnover & smaller inventories Supplementing salesmanship Encouragement to better performance Creating goodwill
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To Consumers
Facility of Purchasing Improvement in Quality Elimination of unnecessary intermediaries Consumer’s surplus Education of consumers
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To Society
Generates employment Standard of living Stimulates research & development Promote art & culture
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Disadvantages of Advertisement
1. Multiplication of needs
2. Misrepresentation of facts
3. Consumer's deficit
4. Increased cost
5. Wastage of national resources
6. Barriers to entry
7. Product proliferation
8. Inefficient manufacturers stay in business
9. Propensity to consume
10.Deferred revenue expenditure
11.Managerial difficulties
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Implications of Advertising
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Introduction
Ads have social & legal implications When violated, social issues arise & government may
take corrective measures Society – decides what is offensive, excessive &
irresponsible Government – decides what is deceptive & unfair The implications are:
1. Social aspects of advertising
2. Economic aspects of advertising
3. Legal aspects of advertising
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1. Social Implications of Advertising
To direct the desires of human beings Ads are the integral part of mass distribution of
Industrial Capitalism Objectives of marketers influence social values,
lifestyle and society’s tastes Generally agreed – Ads exert a powerful social
influence & is criticised for encouraging materialism in society
Critics say ads should be informative instead of using persuasion to influence the emotions, anxieties, etc
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Positive Social Implications of Ads
Informed society Rights of Consumers New ideas Environmental
protection Quality consciousness Health & hygiene
awareness
Preventive course if dreaded diseases
Contribute to creativity of people
Social changes Promotion of national
interest
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Negative Social Implications of Ads
Children & advertisement
Materialism & consumption
Wrong message Message problems
Control of media Stereotypes Religion & culture Undermines social
values
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2. Economic Implications of Ads
Subsystem of economy – plays an important role in economy
Helps producer reduce costs Helps consumers widen choices Principles of free economies:
1. Self – interest
2. Perfect information
3. Many buyers & sellers
4. Absence of externalities
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Positive Economic Implications of Ads
Effect on cost – Production, Distribution & Prices
Effect on competition Effect on business cycle Advertising & creation
of utility Effect on product quality
Effect on demand Effect on consumer
choice Effect on national
income Effect on employment
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Negative Economic Implications of Ads
Not productive Multiplies needs Monopoly argument Restricts entry of new
business units Widens business cycle
Forces people to desire & buy things
Increases cost of goods Encourages waste Reduces consumer
choice Wastage of National
Resources
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3. Legal Implications of Ads
Ads have been accused of many crimes – social, economic & moral
Gives exaggerated hopes to people Despite pitfalls, ads cannot be wished away Ads face legal restrictions Consumer-movement has forced government to
enforce laws to regulate advertising
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Need to Regulate Ads
Morality & tastes Untruthful advertising Ads as Environment pollutant
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Legislative codes controlling Ads
Indian Penal Code (IPC), 1860
Drugs & Cosmetics Act, 1940
Drugs Control Act, 1950 Young Persons (Harmful
Publications) Act, 1950 Indecent Representation of
Women (Prohibition) Act, 1986
Emblems & Names (Prevention of Improper Use) Act, 1950
Prize Competitions Act, 1955
Prevention of Insults to National Honor Act, 1971
Infant Milk Substitutes, Feeding Bottles & Infant Foods (Regulation of Production, Supply & Distribution) Act, 1992
Indian Copyright Act, 1957
Trademarks Act, 1999
Monopolies & Restrictive Trade Practices (MRTP) Act, 1984
Consumer Protection Act, 1986
Cigarettes & Other Tobacco Products Act, 2003
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Setting Advertisement Objectives
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Introduction
Objectives – end point towards which every activity of an organization is oriented
Philip Kotler – “The objectives of advertising is to communicate to a defined audience, the necessary information that simulates action in a given period of time”
Setting objectives is the integral part of planning process
If objectives are not formulated clearly, ads can fail
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Functions of Advertisement Objectives
Serves as Communication & Coordination Device Criterion for Decision-Making Evaluation of Advertising Effectiveness
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Types of Advertising Objectives
1. Sales Objectives
2. Communication Objectives
3. Specific Objectives of Advertising
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1. Sales Objectives
To sell product & raise level of present sales When objectives are sales, a definite & quantifiable
perspective should be present If sales increase after an ad campaign, the campaign
is successful
Limitations: Ads not the only factor affecting sales Effect on sales is in long run
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2. Communication Objectives
1. To increase brand awareness
2. To increase knowledge
3. To create linking
4. To induce preference
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3. Specific Objectives of Advertisement
1. To increase demand
2. To sell new product/ build new brand
3. To educate masses
4. To build brand preference
5. To build good will
6. To attract & help middlemen
7. To support sales team
8. To remind customers of product & company
9. To reach customers left out by sales man
10.To inform about changes in marketing mix
11.To neutralize competitor’s ads
12.To enter in new geographical area
13.To do entire selling job
14.To overcome dissonance of buyers
15.Specific objectives of classified ads
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DAGMAR Approach for setting Advertising Objectives
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Introduction
DAGMAR – Define Advertising Goals for Measured Advertising Results
Approach to setting objectives in which advertisement effectiveness can be measured
Prepared by Russel Collay for Association of National Advertisers in the year 1961
“The main objective of advertising is to communicate with the defined audience, the necessary information that simulates action. Advertisement succeeds or fails depending on how well it communicates the desired information to right people at right time at right cost”
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Features of Advertisement Objectives in DAGMAR
1. Well defined objectives
2. Benchmark & degree of change sought
3. Well defined target audience
4. Specific time period
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Contributions of DAGMAR
DAGMAR – many advertising planners use this to set objectives
DAGMAR focuses on communication objective as the criteria for evaluating ad-effectiveness
According to this approach sales is not the main objective because:
1. Advertising is not the only factor affecting sales
2. Impact of advertising on sales can be measured in long run
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Criticisms of DAGMAR Approach
1. Sales objective
2. Difficult to measure benchmark
3. Costly
4. Problem with communication hierarchy
5. Effect of other factors
6. Inhibits the creative idea
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Requirements for setting Suitable Ad Objectives
1. A precise statement of whom, what & when
2. Objectives must be quantitative & measurable
3. Specifying the amount of change
4. Objectives must be realistic
5. Objectives must be internally consistent
6. Objective must be clear and in writing
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Advertisement Agencies
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Introduction
A service business dedicated to creating, planning & handling advertising (and sometimes other forms of promotions) for its clients
George E. Belch – “Advertising agency is a service organization that specializes in planning and executing advertising programs for its clients”
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Functions of Advertising Agency
1. Contacting clients
2. Advertising Planning
3. Creative Function
4. Developing & Preparing Advertising Copy
5. Approval from Client
6. Media selection & Media Scheduling
7. Ad-Execution
8. Evaluation Function
9. Marketing Function
10.Research Function
11.Accounting Function
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Organizational Structure of Advertising Agency
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Types of Advertising Agencies
1. Full-Service Agencies
2. In-House Agencies
3. Creative Boutiques
4. Media Buying Services
5. A La Carte Agency
6. Special Service Agency(Group)
7. Sweet Shops
8. Interactive Agencies
9. Search Engine Agencies
10.Health Care Communications Agencies
11.Medical Education Agencies
i. Promotional Education
ii. Continuing Medical Education
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Services offered by various Agencies
1. Account services
2. Marketing Services
3. Research services
4. Media services
5. Creative services
6. Media buying services
7. Special services
8. Direct response services
9. Sales promotion services
10.Sponsorship services
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Selection of Advertisement Agencies
Agencies vary widely in their focus Some cater to only a few larger clients & do not
generally accept new accounts Others have hundreds of clients It is important for businesses to work hand in hand
with agencies Many factors come into play when choosing
advertising agency
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Criteria for selection & evaluation of Ad agencies
1. Location
2. Size
3. Agency working for competitors
4. Image of agency
5. Service offered by agency
6. Rates charged
7. Creative skills & new ideas
8. Past record of agency
9. Quality & calibre of staff
10.Financially sound
11.Agency experience
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Remuneration Strategies for Ad agencies
1. Commission
2. Fee arrangement
3. Cost plus agreement
4. Incentive based compensation
5. Percentage charges
6. Speculative basis
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5. Advertisement Campaigns
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Meaning & Definition
Advertising campaign is a series of advertisement messages that share a single idea & theme which make up an IMC
Advertising campaigns appear across different media such as radio, tv & internet
According to Dunn & Barban “ An advertising campaign includes a series of ads, placed in various media, which are designed to meet objectives, and are based on analysis of marketing & communication situations”
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Importance of Ad Campaigns
Establish a feel of urgency for the buyer Advertiser’s benefit concerns Avoiding failure Consumer’s benefit concern Compliments to production area
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Factors influencing planning of Ad campaigns
1. Organization
2. Advertising budget
3. Product
4. Consumers
5. Language
6. Competitors
7. Media
8. Sales promotion efforts
9. Identification of current problems
10.Government regulations
11.Advertising objectives
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Successful Ad Campaigns
Nike – Just Do it Intel – Intel inside Coca-Cola – Open Happiness Dairy Milk – Sweet edu kondadu Amul – Taste of India (Mascot Girl)
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End of Unit - I
Thank You!