Chapter 4 Developing and Managing an Promotion Program

 advertising is the paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

 Mission: It states the objectives of the advertising. It also includes the sales goals of the company. Money: It gives an idea that how much money should be spent by the company for the advertisement. Factors to be considered for this are stage of product life cycle, market share and consumer base, competition, advertisement frequency and product substitutability. Message: Message includes what message should be spent in advertisement. It includes message generation, message evaluation and selection, message execution and social responsibility review. Media: It includes which media should be used for the advertisement. It also includes reach, frequency, impact of the advertisement. It also contains major media types, media vehicles, media timing and geographical media allocation. Measurement: it is nothing but evaluation of the results. It measures communication impact and sales impact by an advertisement.

 SETTING THE OBJECTIVES 1) Informative advertising : The prime objective of the advertising is to inform the existing and potential customers about the product. 2) Persuasive advertising: It aims to create liking preference, conviction and purchase of a product or service. Persuasion will create demand of the product. 3) Reminder advertising: It aims to simulate repeat purchase of products and services. This will remind the customers that the product may be needed in the near future. 4) Reinforcement advertising: It aims to convince current purchases that they made the right choice.

 DECIDING ON THE ADVERTISING BUDGET. After determining advertising objectives the company next sets its advertising budget for each product. Specific factors that should be considered when setting the advertising budget. 1) Stage in the product life cycle: New products typically need large advertising Budgets to build awareness and to gain consumer trial. Mature brands usually require lower budgets as the ratio to sales. 2) Market share and consumer base: High market share brands usually needs more advertising spending as a person of sales than do low market share brands. Building the market or taking share from competitor requires larger advertising spending than does simply maintaining current share. 3) Competition and clutter : In a market with many competitors and high advertising spending, a brand must advertise more heavily to be notices above the noise in the market. 4) advertising frequency: when many repetitions are needed to present the brand’s message to consumers, the advertising budget must be larger. 5) Product substitutability: A brand that closely resembles other brands in its product class requires heavy advertising to set it apart. When the product differs greatly from competitors, advertising can be used to point out the differences to consumers.

 DEVELOPING THE ADVERTISING CAMPAIGN In designing and evaluating an ad campaign, it is important to distinguish the message strategy or positioning of an ad from its creative strategy. Message generation and evaluation A large advertising budget does not guarantee a successful advertising campaign. No matter how big the budget, advertising can succeed only if commercials gain attention and communicate well. Today’s advertising messages must be better planned, more imaginative, more entertaining and more rewarding to consumers to gain and hold attention. Creative strategy will play an increasingly important role in advertising success. Effective message strategy begins with identifying customer benefits that can be used as advertising appeals. Advertising appeals should have three characteristics: +Meaningful, Believable and Distinctive.

 Creative Development and Execution The impact of the message depends not only on what is said but also on how it is said. Any message can be presented in different execution styles. Message execution can be decisive. They can be following advertising medium for execution: Television Ads: It is generally acknowledge as the most powerful advertising medium. Properly designed and executed TV ads can improve brand equity and affect sales and profits. Print Ads: It offer a stark contrast to broadcast media. In general there are two main print media: Magazines and Newspaper. Radio Ads: It is cheaper than television. Radio listening is expected to increase significantly over the coming years. Radio Ads can be extremely creative. Creative devices can tap into the listeners imagination to create powerfully relevant and popular images. Film Ads: India is the largest producer of films in the world. Many local firms use this medium to advertise their products and services as this minimizes the spillage and the wastage of advertisement money. SOCIAL RESPONSIBILITY REVIEW: Advertiser and their agencies must be sure advertising does not over step social and legal norms. Public policy makers have developed a substantial body of laws and regulations to govern advertising.