Characteristics of Marketing Communication PGDIMC 2014-15 Sidhartha Roy, 26 July 2014

What is Advertising?

Advertising originates from the Latin Word ‘ad vertere’ which means‘to turn the mind towards’.

Definations There are many definitions to Advertising including the one in the dictionary but the all time favourite is …

‘Advertising is the use of media to inform consumers about something and/or to persuade them to do something in effect. It brings products/brands & consumers together and then modulates the relationship between them’ - The Economist

In short ... … Advertising is a key part of Marketing Communications but far from being (as is often assumed) the sum total of it.

Functions of Advertising There are so many products of same category in the market. They compete with each other.  Advertising performs the function of distinguishing advertiser’s product from competitors.

Functions of Advertising Communicate product information. Urge a given audience to use a product. Raise the demand for a particular product. Help increase retailers and distributors and sale of that product.

Functions of Advertising Heighten brand preference. Increase marketshare. Reduce cost of sales.

Classification of Advertising Function. Region. Target market. Company demand. Desired response. Media.

Classification of Advertising Informs the customers about a product. Persuades consumers to buy a product. Reminds existing customers about the presence of the product in a market.  Announcements… Special offers Discounts Bundling Exchange…

Informative advertising Informs the customers about… products services ideas of a firm or organization.

Persuasive advertising Persuades or motivates the prospective buyers. To take quick action to buy the products or services of the firm. Motivates through offers ‘Buy one, get one free’.

Reminder advertising Reminds customers about the existence of a product or service. Invites them to be medium or heavy users of the products or services. Helps keep the brandname and products fresh the minds of customers.

Regional classification Global. National. Regional. Local.

Global advertising For global market niches. Reputed global magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science… TV channels are also used to advertise the products through out the world.

National advertising Planned at a country level. In India, we have to keep in mind… Languages Cultures Habits Religions Communities Exposure… Mediums available.

Regional advertising Similar to national advertising. But with regional bias.

Local advertising When advertising is done only for one area or city. Some also call it Retail Advertising. It could be done by the retailer to persuade customers to come to his store regularly. May not for any particular brand.

Target market classification Depends on the type of people who are likely to consume a particular brand. Five subcategories … Consumer product advertising Industrial product advertising Services advertising Trade advertising Financial advertising.

Industrial advertising Business-2-Business advertising. Done by the industrial manufacturer | distributor. Designed to increase the demand of an industrial product or service. Directed to the industrial customer.

Trade advertising Manufacturer persuades wholesalers and retailers to sell his goods. Different media are chosen by each manufacturer according to his product type, nature of distribution channel, and resources at his command. Designed for those wholesalers and retailers who can promote and sell the product.

Services advertising To inform people of an available service. Aimed at users of the service. Focussed on increasing demand for the service. Choosing the right target audience. Connecting with them in the apposite media.

Financial advertising Banks, financial institutions, and corporates.

Desired responses classification An ad can either elicit an immediate response from the target customer. It can create a favourable predisposition about a brand in their target consumers’ minds. Develop a likeable image in their minds. Leads to two types of advertising… direct action advertising indirect action advertising.

Direct action ads To get immediate responses from customers. Examples… Season's sales, discounts, discount coupons, free offers and so on.

Indirect action advertising For a positive effect on the mind of the reader or viewer. After seeing the advertisement he does not rush to buy the product. But develops a favourable predisposition of the brand in his mind.

Surrogate advertising A new category of advertising. In this type of promotional effort, the marketer promotes a different product to boost his real one. For example … the promotion of Bagpiper soda. The firm is promoting Bagpiper Whisky, but intentionally shows soda. They know that the audience is quite well aware about the product and they know this fact when the actor states, "Khoob Jamega Rang Jab Mil Baithenge Teen Yaar ... Aap ... Main, Aur Bagpiper”.

Classification based on media used in advertising Audio advertising. Visual advertising. Audio-visual advertising. Written advertising. Internet advertising. Verbal advertising.

Audio advertising It is done through radio, PA systems, auto-rickshaw promotions, and four-wheeler promotions…

Visual advertising PoP displays, without text catalogues leaflets cloth banners brochures electronic hoardings simple hoardings running hoardings…

Audio-visual It is done through cinema slides movies video clips TV cable TV Internet…

Written advertising Letters. Fax messages. Leaflets with text. Brochures. Articles and documents. Space marketing features in newspapers. Print ads. Mailers …

Internet advertising The world wide web is used extensively to promote products and services of all genres. For example Bharat Matrimony, teleshopping … And all social media sites.

Verbal advertising Verbal tools during… conferences seminars and group discussion sessions. Word of Mouth Marketing.

Advertising Client. Sponsor. Three criteria… Communication must be paid for Communication must be delivered to an audience Communication is a pad attempt to persuade.

Advertising campaign A series of ads. In one or different media. Can be one or a series of messages. With a reasonably cohesive and integrated theme. That make a single or several claims.

Coordinated advertisements with a similar look, feel, and message

Consumer categories Household consumers. Business organizations. Trade channels. Professionals. Government.

Consumer categories Social status. Income status. Education status. Asset holding status. Lifetsyle. Mindstyle. Gender. Age.

Advertising targets a group Like this ad aimed at Doctors

Not All Advertising is international or even national this ad targets a local audience

Advertising messages Strategies… Promote brand recall. Link a key attribute to a brandname. Instill brand preference. Gear the consumer to act. Create perceptions.

Advertising messages Situate the brand socially. Stimulate a brand image. Persuade… Reason why ads Hard sell ads Comparison ads Information ads Testimonial ads Demonstration ads Advertorial ads Direct response ads …

What is the message strategy used here?

What is the message strategy used here?

Media planning process Media Plan Specifies media in which advertising will be placed. Media Class Broad category of media like Television, Radio, Newspapers… Media Vehicle Particular option for placement within a media class.

Media goals Reach Media chosen must reach the target audiences. Scope Identify media that cover the same geographic area. Assess ability to reach given target audiences. Geo target Place advertisements in geographic regions with higher purchase potential. Check message weight Duplication of exposure Unduplicated audiences Gross Impressions Vehicle Duplication.

Media strategy Reach. Frequency. GRPs. Effective frequency. Effective reach.

Reach is a Key Message Strategy

Media continuity Continuous scheduling. Flight. Pulse. Impact.

Media measurement Efficiency Cost per thousand ~ CPT Cost per rating point ~ CPRP. Competitive assessment Share of voice.

Cost Per Thousand Efficiency in Some Media is Sacrificed For Effective Reach

Questions?