Introduction To IMC

Introduction to IMC
Marketing Communications
Advertising
Sales Promotion
Public Relations/Publicity
Personal Selling
Direct Marketing & E – Marketing
Event Marketing
Integrated Marketing Communications (IMC)
• It is the communications mix adopted by a

company to derive synergies from the various
types of marketing communications available
• IMC is a systematic, cross-organizational
marketing communication process that is
customer-centric, data driven, technically
anchored and branding effective.
Relationship between Promotion,
Promotional Mix and IMC
Promotional
Promotion IMC
Mix
Advertising has its origins in the U.S. in
the early part of the 20th century
Volney B. Palmer – media broker
Ads were released to make the magazines interesting

and the media paid for the ads instead of getting paid!
Ladies Home Journal -1902
“The editor of the Ladies Home Journal thinks that

we publish it for the benefit of the American
women. This is an illusion, but a very proper one
for him to have. The real reason, the publisher’s
reason is to give you who manufacture things
American women want, a chance to tell them
about your product.”
– Cyrus H. K. Curtis, founder of ladies Home Journal
Definitions of Advertising
 Advertising is any paid form of non-personal
presentation and promotion of ideas, goods
and services by an identified sponsor.
– Kotler
 Advertising is a paid, mass mediated attempt

to persuade
 “Salesmanship in Print”
 Substitute for a human salesman

Economic Effects of Advertising
Provides information
Maintains or enhances brand equity
Supports the media
Provides employment
Reduces distribution cost
Provides product utility
Stimulates introduction of new products

Ethical Issues to Advertising
 Over 90000 crores is the adspend of this country. Can this not be used for more
productive purposes?
 Goods could be cheaper if such huge adspends were not incurred by industry
 “Advertising makes people buy things which they never knew, which they don’t
need with money that they don’t have”
 Advertising is intrusive and invades personal privacy
 Advertising is manipulative and has a damaging influence on impressionable minds
 Advertising is offensive and distasteful.
 Advertising promotes and raises aspirations fuelling a materialistic society
 Advertising promotes harmful products like tobacco and alcoholic beverages
 Advertising promotes stereotype thinking
 Advertising leads to deceptive claims being believed by a gullible society

Advertising Media
Electronic
Outdoor
Press (TV+Mobile+ Cinema Radio
(OOH)
Digital)
The Communication Process
Filter Filter
media
Sender Encoding Decoding Receiver
Noise
Feedback Response
Major Institutions involved in the field
of Advertising management
Control Institutions Facilitating Institutions
Government Ad agency
Advertiser Media
Competition Research
suppliers
Markets and Consumer behaviour

The Advertising Agency
Client
Servicing/Accounts Creative Personnel/HRD
Management
Media Accounts
Niche Agencies
Media shops – Mindshare, Madison, Starcom
Creative boutiques – Ray and Kesavan
Event management agencies- Wizcraft
Sales Promotion agencies
Direct marketing outfits – Lintas Direct
PR houses – Genesis
Research suppliers – MARG, IMRB, Nielsen

Role of Advertising within the
Marketing Program
What can advertising do

and cannot do?
Contribution of
advertising to sales
Mix of ‘Pull’ and ‘Push’ in

the communication mix
SEGMENTATION AND POSITIONING
Why do we need to segment?
Because different
consumer groups needs
are different
To maintain focus on the

customer target segment
To customise advertising
according to target
segment
Segmentation is a spectrum
Concentrated Differentiated Mass Niche

marketing marketing marketing marketing
Segmentation Strategy
Psychographic
Demographic Brand Loyalty
or lifestyle
Culture and
Attitudes and
Usage ethnic
benefits
subculture
Reaching Target segments
Controlled Customer
coverage self-selection
Positioning
• What the product stands for?

• Mind-share
Positioning and segmentation strategies must have fit. A

brand must be positioned to be maximally effective in
attracting the desired target segment.
Positioning strategies
Product characteristics/benefits
Price-quality approach
Use or application approach
Product class approach
Product user approach
Cultural symbol approach
Competitor approach
Positioning strategies
Determine
how
Determine
competitors
Identify the Analyse the Select the Monitor the
are
competitors competitors customers position position
perceived
positions
and
evaluated
Psychographically Understanding the TV User
High Price/ Quality
The prestige-seeker Samsung
Philips Sony
The technology-seeker
LG
BPL Toshiba
The reliance-seeker
Videocon
Conservative Innovative
Onida
Akai
Sansui
I am very interested in new technology and gadgets
The economy-seeker Aiwa
Sharp
Low Price/ Quality

Positioning Decision
Economic analysis should guide the decision
Segmentation commitment
Not change for change sake. To stick with the advertising if it is

working.
Make it easy for customers to remember/recall. Use symbols,

logos, etc. as a memory aid.
Be honest.
Advertising Planning
The Planning Cycle
Whose job is it?
• Normally the brand manager.
• In some cases it could be the advertising manager, the
marketing manager, the product manager and similar
designations
Role of the Brand Manager
CEO of the brand
Accountable for the sales, profits,

contribution and fortunes of the brand
Needs to interact with all functionaries,

internally and externally and do whatever
it takes to ensure the progress of his
brand
Strategic Role of the Brand Manager
Role of advertising within the
communications mix
To increase awareness of the brand and its
characteristics
To encourage non-users to sample the product
To develop the belief among both users and

ideally, non-users that a brand is technically
superior to competitors for reasons A, B, C, etc.
To inform consumers especially lapsed

consumers that the product has been
improved or reformulated
To encourage retail trade to stock and display

the product
Is it an investment or
revenue expense ?
Conservative accounting principles does not recognise the
future positive effects of current advertising expenditure
Is advertising an expense or an
investment?
Benefits
How to
obtained
treat it in
from the
the books?
expenditure
Risk
Is Advertising related
to sales?
NO YES
Factors influencing sales
• Govt. policy • Advertising
• Taxes • Price
• Promotions • Distribution
• Economic climate • Packaging
• Seasonalities • Product features
• And so on • Competition
• Consumer tastes
Impact of Advertising
New customers
Advertising Immediate sales Future Sales
Change attitude
Improve image
You can attain temporary share of the market
with anew product or a smart promotion, but
to enjoy a really healthy share of market (in
three year’s time) you have to start now, to
build a share of mind.
- Leo Burnett
“I am astonished to find how many manufacturers, on
both sides of the Atlantic, still believe that women can be
persuaded by logic and argument to buy one brand in
preference to another. The greater the similarity
between products, the less part reason plays in brand
selection”
–David Ogilvy
“Half my advertising is wasted, but the
problem is I don’t know which half”
- John Wanamaker
Demand stimulated by advertising not
only increases sales but the value of the
brand in the minds of the consumer
Successful advertising helped increase prices

by 22% than not so successful advertising
The average % increase in sales to be
expected from 1 % reduction in price is
1.8%
The average % increase in sales to be

expected by 1 % increase in adspend is
0.2%
Advertising Objectives
Communication
and Criterion for Evaluating
coordination decision making results
device
Advertising Goal - DAGMAR
A specific communication task to be accomplished
among a defined target audience to a given
degree in a given period of time
Customer Dynamics
Targetting
Who is the target segment?
What is the behaviour within that segment that

advertising is attempting?
What is the process that would lead to desired

behaviour?
Is it necessary to create awareness, build attitudes/

brand equity/associated feelings/type of user
personality ?
Increasing Turnover
• Increasing customers
• Increasing usage per customer
• Reduce time between purchases
Situation Analysis
• Cost structure of • Nature of demand
industry • Extent of demand
• Skills of the firm • Nature of
• In – house skills vs competition
those of competitors • Environmental
• Financial resources of climate
the firm • Stage of PLC
Advertising Budgeting
Historical
Competitive
Parity
All-you-can-
afford
Objective
and Task
Attention and Comprehension
Getting Attention
 The first step in getting your ad noticed by the target segment

 Advertising clutter
 Noise clutter
 Memory is less when viewed/heard with competitive brand
advertising.
Primacy and Recency Effects
Primacy
 Being the first ad, it registers in the mind.
Recency
 The last one is fresh in memory
Therefore such ad positions are priced at a premium.

Zipping and Zapping
 Zipping is going ‘fast forward’

 Zapping is changing channels or channel surfing
How to minimise Zipping and Zapping?
Zipping
 To get the commercial at the beginning of the pod
 Visual elements that would be visible in the main body of
the program or even when doing FF.
Zapping
 Improving ‘likability’ of the ad
 Making it interesting and involving
What ads attracts attention?
Product information that would help

purchase decision
Those that expose themselves to

information that support these opinions
and avoid discrepant information
Those that desire to get exposed to

information that stimulates
Stimuli which is interesting

Information of Practical value
The behavioural tendency to process information

depends on:
 Need for information
 Expectancy (Probability) that processing a particular
ad will lead to relevant information exposure
 Measure of the value of that particular ad as a source
of relevant information
Long copy Vs short copy
Readership drops sharply after 50 words but between 50 and 500 words there is hardly any
difference.
‘The more you tell the more you sell’
‘If you don’t have anything to say, then sing it.’
Depends on whether it is under active search or for future reference
Infomercials
Advertorials
Information that supports
Dissonance theory – Cognitive dissonance is

discomforting and people will try to reduce it. One
mechanism is through selective exposure
People tend to have a psychological preference for

supportive information and avoid discrepant
information. This is called selective exposure
Ad awareness seems to be higher for those who

already have higher brand attitudes – Rajeev Batra
and Wilried Vanhonacker
Involuntary exposure to non-supportive information

shall increase selective exposure to information that
supports
Information that interests
 People tend to notice information that is interesting to them

– Russel Haley
 This where customer self-selection works when such ads are

put in mass media.
Information that stimulates
 Variety theory by Salvadore Maddi
This states that novelty, unexpectedness, change and

complexity are pursued because they are inherently satisfying.
 Adaptation level theory by H. Helson
People learn to associate stimuli with a reference point or

adaptation level. Marked deviation from it shall attract attention.
Weber’s Law
The degree to which a stimulus would be regarded

as different will depend not on the absolute stimulus
change but on the% change from some point of reference.
I
K
I
Attention vs Recall
Recall of an ad is a necessary but not sufficient condition for

persuasion.
 Ad repetition, higher frequency and higher SOV
 Using distinctive creative material in the ad
 Merchandising using clues to recall ad at the store
Attention vs Comprehension
 While getting attention is important it should not detract

the viewer from the message
 The execution, models, props, etc. must not take

precedence over the brand.
 Persuasion takes place when good comprehension takes

place. Processing would take central or peripheral
routes of processing depending on the comprehension
Interpretation vs Comprehension
 Objective comprehension
What is the take-out of the brand? – copy test scales
 Subjective comprehension
Explicit – the ad story

Implicit – using the ad information along with knowledge and experience
already stored in memory
The deeper the level of subjective comprehension, the more effective the
ad will be in credibility, likeability, persuasiveness and recall – David Mick
What is Perception?
It is the process where an individual

receives stimuli through the various
senses and interprets them
The Perception Process
Attention Interpretation
Stimulus Cognition
Stimulus Conditions Audience Conditions

Intensity Attitudes
Size Values
Message
Interests
Novelty
Confidence
Position
Social Context
Context
Cognitive Style
Perceptual organization
People tend to see objects as a whole than

see individually its parts. – S. E. Asch
First impressions are important.
Closure
Assimilation – Contrast
Miscomprehension
Brand Attitudes
Cognitive (awareness, comprehension, knowledge)
Affective (evaluation, liking, preference)
Conative (purchase, trial)
Attitudes decay over time. Therefore +ve attitudes need to be nurtured and sustained.
Attitudes can be examined at three levels
Physical
Pseudo-physical
Benefits –physical and psychological

% of total market Attitude Segments
3 5 Marketing efforts
2 6
Competitive efforts1 7
-ve Attitude +ve

Ad Attitudes
 Attitude towards an ad (liking) provided an impact on brand

attitudes over and above the ability of the ad to
communicate attribute information
– Andrew Mitchell, Jerry Olsen and Terence Shrimp
 Ad disliking has a greater effect than ad liking. The effect of

ad liking are more important for mood ads than for hard-sell
ads
– McCollum and Spielman
What makes an ad more likeable?
 Credibility  For a brand already liked

 Positive, likeable feelings  Contains useful information
 Using humour  Interesting and reasonably
 Using relevant complex
executional devices  Containing information that
 Using relevant, likeable is itself liked (SP)
celebrities  Placed in a media
 Using endorsers relevant environment that is itself
to target market liked
Associated Feelings
The use of feelings in advertising
is resorted to when audience
response feelings is of primary
importance and usually little or no
information content is involved.
When are feelings ads used?
Ads evoking feelings are most likely to be

used when consumers have a low level of
intrinsic interest in the product category or
brand. They do not have or care to have
strong brand attitudes
Feelings Ads typically have a
Evaluative component – influenced by beliefs
about the brand
‘Liking’ component – that cannot be explained

by knowledge and beliefs
The relative importance or % contribution of

‘liking’ will be high when the amount of brand
attribute information and association
processing efforts are low - Michael Ray and
Rajeev Batra
FCB Grid
Think Feel
House, child’s Luxury items,

H. I. education, car Designer wear,
Jewellery
Groceries, Food items,

detergents, fuel Cosmetics,
L. I.
chocolates
Rossiter-Percy Grid
Informational Transformational
-ve motivations +ve motivations
H. I.
Search and
Conviction
necessary
L. I.
Trial experience
sufficient
The Association Process
A consumer who feels certain feelings when a brand

name is mentioned can remember those feelings much
later when the brand is being thought of. Ad-evoked
feelings and brand names can and do become linked
and associated in consumer’s mind.
– Douglas Stayman and Rajeev Batra

Transformational Advertising
 It involves developing associations with the brand such that

it transforms the use experience
 Two types of associations – the use experience and the

user
It must make the experience of using the
product richer, warmer, more exciting and /or
more enjoyable than that obtained solely from
an objective description of the brand.
It must connect the experience of the brand so

tightly with the experience of using the brand
that consumers cannot remember the brand
without recalling the experience generated by
the advertisement.
For transformational advertising to
work, it must have
Closely
A
connect the
substantial
brand with
media
the
budget
advertising
Maintain
consistency
over time
Drama Advertising
 This advertising dramatises the situation. Feelings are

naturally evoked based on the plot and situation.
Humour ads
These cannot be used for all

situations.
If not handled properly, can be
very damaging for the product
Matching quality of humour to the
target audience
Diminishes CAs because it
distracts from cognitive responses
Fear and anxiety ads
 These ads directs compliance to remove the fear/threat as
depicted by the ad. If the element of fear or anxiety is too much it
can be a ‘turn-off’. If the level of is too low it may not motivate the
audience to comply with what is being suggested.
Fear appeal ads need 4 conditions
to be successful
Depicted threat is very likely
It can have severe consequences
That the advocated behavioural

change/action will lead to removal of threat
That the consumer can take such action

What affects intensity of feelings?
Believability Empathy
Involves all the activities that are necessary to
nurture a brand into a healthy cash flow
stream for the company after launch
Every ad contributes to make the brand
what it is in the minds of the consumer
– David Ogilvy
A company’s brand is the primary source

of its competitive advantage and is a very
valuable strategic asset
– David Aaker
When a commodity becomes a brand, it is said to
have ‘equity’. It starts with a name and can go up or
down depending on the marketing activity that is
done by the marketer. A name becomes a brand
when consumers associate it with a set of tangible
and intangible benefits that they obtain from the
product or service.
 The premium a brand can command in the
market
 The difference between the intrinsic and

perceived value of the product
 Distinguish product from others in the
market – Value proposition
 Align what it says about the brand in

advertising with what it actually delivers –
Creating the brand
 Generates enormous profits
 Expands future strategic opportunities

A Personality
distinctive and
product presence
Delivering
brand
promise
Generates relationships
Emotional bond with
measurably stronger
the customer
than ordinary brands
Seem to be present everywhere, enforcing distinctiveness
National/international scale
Successful brand extensions
Multiple concept and channels

Ability to devise
Agility to Creativity to
Superior insight product/services
redefine its produce exciting
into customer that powerfully
offering as those and compelling
needs meet those
needs change advertising
needs
Shape
Colour
Size
Models
Price
Features
Benefits
Grades
 Company name  Customer base
 Brand name  Trademarks and
 Slogan and its patents
underlying  Channel
associations relationships
 Perceived quality  Customer loyalty
 Brand awareness  Customer
confidence
 Competitive
advantage
Broad Specific Value
positioning positioning positioning
Choosing brand name
Developing rich associations and

promises
Manage customer brand contacts to

meet and exceed customer
expectations
What
performance/ What degree
What does it
expectations/ of preference
mean?
associations does it create?
does it evoke?
Product benefits
Product quality
Be easy to pronounce/remember/recognise
Be distinctive
Not have poor meanings in other countries or languages

‘Owned’
Slogans
word
Symbols
Colours and
logos
These are used to create the Brand personality,
just like a human being. Therefore in some
way the values and personality of the
ambassador rubs off into the brand.
Therefore, the brand and choice of the

ambassador must fit.
Step up Cash cow. Need
advertising to sustain brand
building activities
Esteem
Product should Troubled brand.

be phased out Product
upgradation
required
Familiarity
Differentiation in
consumer’s mind
Differentiation
relevant to
consumer’s need
Brand experience Calls for
must match brand managing every
image brand contact
Creative Approaches
What kind of appeal should the
ad have?
Rational Emotional Endorsement

Comparative Advertising
Limitations –
consumers don’t like
Explicit – where the
Implicit – where the the hard – sell,
identity of
the identity is not sponsor
competitive products
disclosed misidentification,
are known
unsuitable for
market leaders
2 – sided vs 1 – sided ads
2 sided ads are seen to be more credible
Consumers appreciate the ‘honesty’ of the company in

admitting its shortcomings
The –ve points are relatively unimportant, but not

trivial
Perceived to be negatively correlated to the attribute

where the product claims superiority
Open ended vs Close ended
Where the risk of the message being understood is

low, open – ended ads are likely to to succeed and
build greater brand attitudes
Since consumer generates the beliefs, it is that much

powerful.
“The consumer is not a moron. She’s your wife.” –

David Ogilvy
Inoculative advertising
Defensive Premptive
• When leaders are • Taking proactive
under threat from action before the
upstarts - reactive threat emerges -
proactive
Refutational Advertising
It is a preferred approach
to market situations in
which the advertising goal
Myth vs Reality Putting the facts straight
is to build resistance to
attitude change against
competitive attack
Emotional Creative Advertising
 Rely on emotions elicited through ads to

create positive attitudes to product.
Product attributes/benefits, if at all are
referred to indirectly.
 Lifestyle advertising (‘Slice of life’ ads)

Testimonial advertising
Communication coming from a source which

you admire, respect or look up to and can
muster the credibility in the message.
They can be celebrities, colleagues, friends or

even other customers.
Endorsement Advertising
Celebrity
Expert
Satisfied consumer
Announcer
The personality characteristics of the endorser

can get associated with brand imagery
Status products and snob value
product advertising
Depends on
Aspirational Exclusive the target
segment
Distraction
 Elements in the ad which distract are deliberately

inserted so that CAs are not formed to influence
attitude
‘Behind the scenes’ contribution to standard of living
Reduces selling costs and increases productivity
Reach the inaccessible influences
Encourages the favourable contacts required before

purchase is done
Application of the product
Technical literature to support claim
Cost and economy
Availability
Offer of more information or demonstration
Installation service/commercial use trial
After sales service assurance
Company name and address

Identity of manufacturer, his reputation, credibility,
worksmanship, infrastructure, resources
Never deal frivolously with industrial products
Do not be afraid to use technical jargon
Use diagrams, illustrations, drawings to explain
Formatted catalogues are better than qualitative copy

 Communication has to be suitably toned
down on technical content and more on
commercial content
Specialised work
Long shelf life
Marketing tool for buying as well

as for selling
Expensive and has to be used
sparingly
The Agency Business
Functions of an agency
Client servicing
Media
Creative
P&A
Accounts
The client brief
This is normally the first business meeting between

the client and agency after the agency has signed on.
Most likely the top brass of the agency and the
marketing department would be present to introduce
the operating people who would transact day-to-day
business
Client briefing
 What exactly is the agency being asked to do?

 What information does the agency need?
 What questions are the agency likely to ask?
In the briefing session, even the creative and

media people may be present so that they get first
hand impressions of the problems encountering
the company.
‘Pitching’
 Sometimes agencies may solicit for an account and

make a pitching brief to the client organization
hoping to get the account. This is speculative.
The agency is a people’s business
For an agency the

assets are its people There is high
– their calibre, mobility of people
expertise, within the industry,
knowledge and especially for good
experience people
It is for this reason

that some people
become so well
known that they are
‘brands’ in their
own right
Change of Agency
Agency changes are normally made because of some

dissatisfaction. But very often it is an excuse to
disguise shortcomings within the client’s
organization.
When does Change happen?
Whenever there is a change of

guard at the highest level
Changes in
ownership/mergers/acquisitions
Change in client servicing needs

Changing an agency is costly
Monetary Momentum
Time
terms is lost
Agency selection is normally a
top management decision
Criteria for selection
No. of people assigned to the account
Quality of people assigned to the account
Creative abilities ( Past work of the agency)
What kind of accounts are presently being handled by the agency
Culture/style fit
Ability to deliver and adhere to deadlines
Reputation for integrity
Ability to defend and justify recommendations
Degree of understanding of the client’s business
Market research and media buying abilities

Normally client would not take up an
agency if it is dealing with a competitor
brand
SIMILARLY AGENCIES DO NOT SIGN UP WITH

COMPETITORS IF THEY ARE HANDLING BRANDS IN
THE SAME PRODUCT CATEGORY
Building partnership and trust
It is not simply a principal-supplier relationship
The agency by virtue of its experience in different markets, different

product categories, is expected to give a different creative perspective and
insight on the company’s problems.
It is not expected to agree with the company all the time.
A client who does not expect and reward an agency for fresh thinking is
usually expected to get mediocre advertising
If a campaign is working the client
should stick to it.
Too often the campaign gets changed

not because it is stale but the
company people get bored with it.
IT MUST BE REMEMBERED THAT THE CONSUMER IS
JUST ABOUT BEGINNING TO NOTICE IT THEN
Cont’d
Keep approvals Give the agency

Treat the
simple and a formal
agency people
disapprovals evaluation
well
kind annually
Give the
responsibility
Agree on
and authority
clearly defined
to the agency to
objectives
produce good
advertising
Building a great agency-client relationship
Make the agency Create an

Ensure the
Be wary of totally absorbed environment for
Inculcate a spirit agency is making
change for in the company’s experimentation
of friendship a fair profit on
change’s sake product, people and be prepared
your account
and culture to pay for failure
What does an agency look for when taking up a new
account?
Product one would be proud to advertise
Not take up an account where one cannot better the

efforts of the previous agency
Steer clear of products whose sales have been consistently

falling – either due to product weakness or inconsistent
management
Account where the agency can make a profit
If profits are unlikely, is there mileage to be derived

elsewhere?
Cont’d
Agency-client fit
Avoid clients where there is low belief in

advertising
Not accept new products unless attached with a

national product
Always deal with one decision maker, not

committees
Do not have conditional accounts. It never

works.
Agency Compensation
The key issue is that compensation should be

commensurate with workload.
 Commission
 Fee
 Payment by Results (PBR)
Public Relations
What is Public Relations ?
PR involves a variety of programmes designed to

promote or protect a company’s image or its
individual products
PR is usually unsponsored and
unpaid
It acts synergistically along with advertising

PR is essentially defensive
It is a corporate armour that the company can

wear which would protect the company during
adverse times
Functions of PR
 Promoting goodwill
 Promoting product, service, corporate
image
 Corporate communications
 Lobbying
 Counteracting negative publicity
When PR is used for the purpose of
marketing its product and services, it
is known as Marketing Public
Relations (MPR)
It can be a very important component of the entire

communications mix of the company
Objectives of MPR
Assist in the launch of

products/company
Assist in repositioning a mature

product
Building interest in in a product

category
Influencing specific target groups
Countering negative publicity
Building corporate image that rubs off

onto its products
Advantages of PR
PR can hold
Very credible
down
and inexpensive
promotion costs
Disadvantages of PR
Difficult to quantify
PR benefits
Lack of control
‘Deft’ management
required
For PR to work there are several
prerequisites
It must first put its own house in order
IR must have the respect of employees and

community
Management must justify its profits and prove

that it is not profiteering
Work for the community as an able corporate

citizen
Uses of PR
Customer complaints and redressal
 It is an opportunity to cement relations with
the customer
 Very important in the service and hospitality
industry
Combating rumours / falsehoods
 Confront and disclose facts in leading media
 Give the positive side of the story
 Capitalise on rumour to your benefit
 Rumour can be dismissed as ridiculous
PR changes attitudes. Institutional
ads which present facts do not
change attitudes
You need to involve the reader by emotionalising the

information
How do PR people get their job done?
Using clout of the agency by virtue

of being a space buyer
Cultivating relations with media

and leveraging that when required
Communication that is
newsworthy and which media
would be glad to carry
Biased information shall bring in
more resistance than acceptance.
Credibility of media as an unbiased reporter must be

maintained . Therefore most media have their own
editorial policies where all such information is suitably
edited before it goes on print
SALES PROMOTION
WHEREAS ADVERTISING GIVES
A REASON TO BUY, SP GIVES AN
INCENTIVE TO BUY
It is part of the Marketing spend of all
companies and these days SP spends
in many companies exceed that of the
adspends
Why?
• Internal
• External
Internal reasons
Top Line
management managers Justification
is more under greater of
conducive to pressure to expenditure
spending on achieve is easy
promotions targets
External reasons
Increase in number of brands
Consumer is more price savvy
Greater pressure from trade to liquidate stocks
Add effectiveness declining owing to rising

costs, media clutter and legal constraints
SP is a push strategy
• Since it is at the last point where the consumer is often at
the point of buying, the additional incentive makes a last
ditch effort to convert the customer on to the incentivised
brand
SP is of two types
Trade Consumer
Trade promotion
• Liquidating heavy inventories
• Persuade retailers to carry stock, carry more than usual
stock, promote brand franchise
Consumer promotion
Stimulate purchase
Induce trial
Create new users
Increase repurchase from

occasional customers
Reward loyal customers

Forms of trade promotion
Bulk discounts
Free materials
Display windows
Shelf hiring
Lucky draws
‘Mystery’ customer
Redistribution incentives
Shop salesmen incentives

Forms of consumer promotion
Free samples
Free gifts
Coupons
In-packs
Price packs
Price-offs
Sweepstakes
Bundling offers
SP SPURS ACTION BECAUSE THEY
ARE SUPPOSED TO RUN FOR A
LIMITED TIME
While the advertising budgets are controlled by the

brand managers, SP budgets usually are controlled by
the sales managers
The More The Product’s Quality And Its
Advertising Persuasiveness Fail To Meet
Competition, The Greater Is The Need
For Promotion To Improve The Price –
Value Relationship
Promotion at different stages of the PLC
Introduction – wise
to use heavy Growth – promotion
promotion to induce should be limited ,if
trials and promote any
brand franchise
Maturity – Higher Decline – Heavy

promotions required promotions. Used
since the brand is only to retain a set of
under attack from loyal customers. Prior
competitors or to withdrawal of the
product quality or product, it could be
advertising used as a one time
effectiveness is stock clearance from
tapering off the trade
Essential elements for an effective SP
programme
Significant value before promotion is effective
Promotions must be part of an overall plan
Every brand must have a promotion objective and a strategy statement
A written tactical plan – time frame, costs, evaluation yardsticks
Factual knowledge must be gathered to plan
Specialised professional skill and knowledge must be applied to every

promotion operations
Final considerations
Don’t promote if the product is not good
Promotions rarely stop a declining sales curve
It is very easy to lose the promotional gains made if your promotion has
not been effective in retaining new customers. So the product has to
speak for itself.
The objective of the promotion is to wean away users from competition and
create new users.
Excessive promotions lead to diminishing returns and may devalue the brand
Cont’d
Promotions may be used in conjunction with advertising and other
marketing communication tools
It should be novel and attractive
Ensure supply lines are good and adequate stock is available right
through the promotion
Cater for contingencies. Have escape routes built into the plan
Trade has to be handled tactfully
Reimburse incentives/ rewards/ gifts promptly
Must be within the legal boundaries

ADVERTISING
REGULATION
Vulnerable Areas
Tobacco and alcoholic beverages
Food advertising – nutrition and health

claims
Children advertising
Advertising to old people
Environmental issues
Control authorities
Other formal
bodies eg.
Ministry of AAI, Mumbai
I&B Ad Club, etc
ASCI
Legal issues
Subject to
Copyright
the law of
protections
contracts
Intellectual
“Passing
Property
off”
Rights
“Puffery”
To a certain extent most
advertising suffer from this. It is
usually exaggerated claims,
using superlatives, etc.
Deceptive Advertising
Differs from the reality of the situation

– misrepresentation or omission
Affects buying behaviour to the

detriment of the consumer – consumer
has believed the communication and
acted accordingly
Consumer injury is possible and

he/she might have acted differently if
the facts were communicated
What is deceptive advertising?
• Suggesting a small difference is important
• Artificial product demonstrations
• Using an ambiguous or easily confused phrase
• Implying a benefit that does not fully or partially exist
• Implying that a product benefit is unique to that brand
• Implying that a product benefit is needed or a product will fulfill a
benefit when it will not
• Incorrectly implying that an endorser uses and advocates the brand
• Omitting a needed qualification
• Making a claim without substantiation
• Bait and switch
• Disguising advertising as news
• Infringing IPR
Misperception
When communication is vague and ambiguous, imperfect

comprehension or miscomprehension can lead to
misperception
Remedies
Cease-and- Restitution
desist (compensati
orders on)
Corrective Affirmative
advertising disclosures
Communication Models and
Advertising Research
AIDA Model
Awareness
Interest
Desire
Action
Hierarchy of Effects
Unaware
Aware
Comprehension
& Image
Attitude
Action
New Adopter Hierarchy
Awareness
Interest
Evaluation
Trial
Adoption
Lavidge and Steiner model
Awareness
Knowledge
Liking
Preference
Conviction
Action
Research stream 1
• Exposure, Salience, Familiarity – Zazonc
• Exposure – Preference is created by mere
exposure
• Salience – ‘TOMA’ for mature brands.
Reminder advertising for others
• Familiarity – Comfort, Security,
Ownership, Intimacy – Perceptual Fluency
• Implications – High level of ad repetition –
for low involvement products
Research stream 2
• Low Involvement Learning- Krugman,Ray
For normal products
Cognitive Attitudinal Behavioural
For L.I. products
Cognitive Behavioural Attitudinal
Implications – For L. I. products, greater
awareness and branding is required to
build preference (Wayne D. Hoyer)
Familiarity – Attitude Grid
High
Imported goods, Popular FMCG

Endorsement products Big brands
Recently Paints,
launched Lubricants, etc
products
Low
Low High
Familiarity
Central vs Peripheral routes to
processing
Central processing
• Depth of information processing
• Rational and logical thinking
• High involvement
Peripheral processing
• Holistic thinking
• Associating –ve or +ve cues from ads
• Cognitive ‘short-cuts’
Research stream 3
Elaboration Likelihood Model – Richard E.
Petty and John T. Cacioppo
Consumers are more likely to process

centrally when motivation and ability to
process is high. When either or both is
low, peripheral processing is likely to take
place.
Elaboration Likelihood Model to
Attitude change
Advertisement
Motivation to No
Process
Peripheral cue
information
Yes present
Ability to No
process information
Yes
Peripheral
Central route
route
Factors that shape motivation and
ability
• Ad medium
• Involvement or motivation (ad story)
• Knowledge level
• Comprehension
• Distraction
• Emotion
• Need for cognition
Research stream 4
• The Cognitive Response Model
Advertising exposure and processing leads
to consumers forming SAs and CAs.
These are the thoughts that go on in the
consumer’s mind which are cognitive
responses
• SAs change beliefs and attitudes
• CAs strengthens existing beliefs and
attitudes
Cognitive Response Model
CAs
CAs
SAs
SAs
Exposure
Implications of the CR model
The objective of the advertiser would be to
stimulates SAs and minimise CAs
Therefore this is to be managed
• Repetitions. CAs rise and SAs fall with too much
repetition. Therefore there is an optimal level
beyond which advertising should not take place
(ad wearout)
• Don’t expect to win over a hostile audience
easily
• Strength of argument promotes SAs
• Emotion – Positive moods generates SAs
Research Stream 5
Recall and Persuasion – David W. Stewart and
John G. Lynch
• Recall is a necessary but not a sufficient
condition for persuasion
• For L.I. products, recall is necessary for
comprehension and comprehension is
necessary for persuasion
• For H. I. products, message content indicating
superiority over competitive products and recall
are both necessary
Digital Marketing Communications
What is digital?
Before digital we had analog.
Analog can be described as service or a system that represents
changing values as continuously variable physical quantities. We
experience the world through an analog perspective. Eg vision
with it s infinite gradation of shapes and colours.
Digital is non-variable and finite. It utilizes discrete data points that
are either on or off, ones or zeros. Computer science has helped
us combine these discrete data points to simulate, augment our
analog reality through several devices.
A digital culture
A digital culture cuts across boundaries,
socio-economic classes, hierarchy,
geographies. It is open, transparent and
available to everybody. It is a way of life, a
culture and a continuous process.
Core values and Fundamental
Attributes of the Digital Culture
Core values Fundamental Attributes
Creativity Disruptive, Experimental, Innovative
Equality Non-hierarchical, Flat, Democratic
Empathy Responsive, Receptive, Adaptive
Integrity Honest, Trustworthy, Consistent
Knowledge Analytic, Data-driven
Efficiency Agile, Proactive, Purposeful
Openness Transparent, Collaborative,
Authentic
Unity Integrated, Holistic, Socially
Responsible
What is Digital Marketing Communications?
Digital marketing communications happens

when you employ different communications
mix using digital media in online or offline
campaigns.
What is digital marketing?
• E-marketing
• Internet marketing
• Cyber marketing
• Online marketing
• Social media marketing
• Does it really matter?
Principles of Digital marketing
• Consumers and customers must be actively engaged as participants, not as
passive viewers and targets.
• Marketers must move beyond the traditional metrics of reach and frequency.
This requires better planning and a clear proposition.
• Marketers need to determine the mix of channels which is right for their
marketing needs to engage participants around their personal preferences and
desires.
• Digital marketers need to make relevant quality content their focus in order to
generate sustained participant interest.
• Consumers will initiate and create content and marketers should encourage and
reward content creation that is relevant to their brands.
• Messaging must be optional and voluntary and customized to participants
indicated preferences. Paybacks would come when consumers share
information through their network sites and virally with one other
Principles of Digital marketing
(cont’d)
• Marketers would need to understand new media options which may have
pay-for-performance metrics. Search would play a key role.
• Digital marketers must try to keep pace with participants in their conversation
and use digital tools to influence, not dictate, the debate.
• Marketers would need to use more sophisticated approaches to connect
digital and physical tuch-points – from integration of brand image to
unification of each customer’s experience.
• Data would be the lifeblood of marketing. Marketers would use this data for
detailed psychographic and behavioural profiling of consumers
• Marketers would deploy real-time analysis of data to make quick, constant
and fact-based modifications to their digital marketing activities.
• Monitoring and measurement of the marketing mix would be enable to have
more accountable marketing.
Traditional marketing vs Digital
marketing
Traditional Marketing Digital marketing
• Consumer as viewers • Consumers as participants
• Impressions/frequency • Involvement/interaction
• Broadcast media • Addressable channels
• Schedule-driven • Time shifted-anytime
• Marketer led • Consumer initiated
• Push marketing • Opt-in and share marketing
• Traditional media Planning • New media planning
• Managed PR • Digital influence
• Integrated marketing • Unified marketing
• Sometimes data-enabled • Always data – enabled
• Post campaign tracking • Real-time tracking
• Partial ROI • Optimization
Growth of Digital marketing
Continents Population Internet Internet Penetration Growth % % internet
2012 (mill.) users users 2012 % 2012 users
2000 (mill.) (mill.)
Africa 1073 5 167 15.6 3606.7 7.0
Asia 3922 114 1077 27.5 841.9 44.8
Europe 821 105 519 63.2 393.4 21.5
Middle East 224 3 90 40.2 2639.9 3.7
North 348 108 274 78.6 153.3 11.4

America
Latin 594 18 255 42.9 1310.8 10.6
America
Oceania/ 36 8 24 67.6 218.7 1.0
Australia
Total 7018 361 2406 34.3 566.7 100.0
Marketing has moved from
‘helping the seller to sell’ to
‘helping the customer to buy’
The internet is a ‘pull’ medium

whereas internet ads are a ‘push’
medium
What has led to digital marketing?
An Adobe study pointed out
• Two thirds of all marketers think their companies won’t
succeed unless they have a successful digital marketing
approach. Yet only 15% of marketing budgets are allocated
to digital.
• 96% brands surveyed said that they will increase digital
marketing budget allocation in the next 12 months
• Less than half of digital marketers feel proficient in digital
marketing
• Just one in three marketers think their companies are highly
proficient in digital marketing
The Digital user
• Millenials will form 75% of the work fore by 2025 and would
be actively shaping corporate culture and expectations
• Only 11% regard having a lot of money as a definition of
success
• 84% say that helping to make a positive difference in the
world is more important than professional recognition
• 92% believe that business success should be measured
more than profit
• 90% view entrepreneurship as a mindset today, instead of
the role of a business owner
Types of Digital users
• Digital natives – They have an intuitive understanding
of digital, but need to learn how to think strategically
• Digital immigrants – recognize the value of digital, but
need to learn strategies, tactics and tools for its
successful implementation
• Digital aliens – think strategically but need to
experience the value of digital
• Digital integrator – have an expert command of digital
and its strategic implementation
Digital multitasking
• Content Grazing - accessing two or more screens for unrelated content (68%)
• Investigative spider-webbing – seeking content across several devices
simultaneously (57%)
• Quantum journey – multiple screens are used independently to achieve a goal

(46%)
• Social spider –webbing – focused on sharing content and connecting with

others across devices (39%)
The Digitally Integrated Organization
M Measurable
I Integrated
N Nimble
D Disruptive
S Strategic
E Engaged
T Transparent
Online marketing objectives
• Brand Development - where online presence complements and
enhances the offline branding efforts of the organization.
• Revenue generation - where online presence increases revenue into the

organization by direct sales, lead generation or direct marketing.
• Customer service/support – where the web is used to enhance the

service and support offered to customers and potential customers.
Brand development (KPIs)
• Visitor numbers – more visitors means more people
being exposed to the brand
• No. of visits by individuals – returning visitors might
suggest brand loyalty
• How deep into the site visitors go – more pages
accessed implies an interest in the brand’s offerings
• How long do visitors stay on the site – the longer they
stay , the greater the affiliation to the brand
Provision of after-sales service
(KPIs)
• Visits to and time on FAQ page – too many and too
long suggest problems with the product/suggestions,
whilst every visit might suggest offline cost savings
• How long a visitor stays on the site – a lengthy stay
might suggest that the sought information is not
easily available
• What down loads – might suggest what kind of
specific information that customers are particularly
looking for
Lead Generation
• Conversion rate - % of visitors to website vs sales
achieved/% of visitors to website who go on to
contact firm vs sales achieved
• Promotions acted on – discount coupons downloaded
( which can then be identified to a sale)
• How many and which pages downloaded – More
downloads might indicate greater interest
• How long a visitor stays on the site – lengthy stays
might indicate greater interest
Online sales
• Sales volume – Is the site generating income? If so, how much?
• Sales trends – time of day/week/month/year/location, etc.
• Average order size – bigger order sizes suggest customer
satisfaction
• Average items per sale – fewer customers buying greater
numbers is normally better (for logistical reasons)
• Conversion rates – sales (volume, items) per site visits
• Click stream – the way a visitor navigates their way around the
site might indicate to cross-selling opportunities
• Repeat visitors – returning to buy after looking round or
comparing prices
Maximizing visitor numbers
• Visitors numbers – falling, rising, constant
• Point of exit- home page or page of arrival might
indicate content is of no interest
• Subscription numbers – more numbers means
greater commitment to site or content
• Time of stay and depth of visit – more pages
accessed and longer stays might indicate greater
interest
The web as a medium
Medium To reach 25% penetration
(years)
Telephone 35
TV 26
Radio 22
Mobile 13
Internet 7
Why should you have a web presence?
Your web presence can be done by creating

your own website or use other sites (social
media) for customers to get an opportunity to
know your company. The website should be
designed to focus on helping the customer
and not so much the organization
Principles of Website designing
• What are the site’s objectives?
• Who are likely visitors to the audience?
• Why are they visiting the site?
• What need is being met?
Why people shop online?
• Value- prices more competitive
• Open- can shop any time
• Delivery – free delivery
• Speed – ‘usually next day’
• Ease – easy to shop
• Range – stock availability
• Choice – ability to shop from a wide choice of goods
• Time-saving – takes much less time than physical shopping
• No crowd – can be done in the comforts of home
• Spend less on fuel – frequent visits to the market are
minimized
From CRM to SCRM
• CRM has been around since the late 80’s, but SCRM is in its
infancy
• A CRM system uses digital technology to organize, automate
and synchronize sales, marketing, customer service and
technical support. It becomes a nerve centre that allows a
company to manage with current and future customers.
• A SCRM system is based on the ability of a company to meet
the personal agendas of customers, while meeting the
objectives of the company’s own business plan. It is aimed at
customer engagement, rather than customer management.
• It is focused on ‘doing the right things’ and planning to ‘do
things right’.
Why SCRM?
• 89% of customers have stopped doing business with
a company after experiencing poor customer service.
• A customer is 4 times more likely to buy from a
competitor if the problem is service related versus
price or product related.
• 55% of customers would be willing to pay more for
abetter customer experience.
• A 10% increase in customer retention results in a
30% increase in the value of a company
Outbound and Inbound Marketing
• Outbound marketing is when marketers try to reach their target
audience through print and TV advertising, jun mail, spam,
trade shows, seminars, e-mail blasts, purchased lists, internal
cold calling and outsourced telemarketing.
• Inbound marketing is a holistic data-driven strategy that helps
organizations attract and convert visitors into customers by
providing personalized, relevant information and content
instead of interruptive messages. By following through the
sales experience with ongoing engagement, inbound pulls
consumers toward and organization’s products and services by
aligning published content with consumer interests
Why is this necessary?
• 44% of direct mail is never opened; 86% of people skip
through TV commercials.
• 84% of 25-35 year olds have clicked out of a website
because of an ‘irrelevant or intrusive ad’.
• Inbound marketing dominated organizations experience a
62% lower cost per lead than outbound marketing
organizations.
• In 2013, 60% of companies adopted some element of the
inbound methodology into their overall strategy; 41% of
marketers confirm inbound produces measurable ROI
Inbound marketing initiatives combine three
core lead generation techniques into one
integrated approach
• Content creation
• SEO
• Social media
The Traditional Sales Funnel
Visitor comes to website
If I engage X
Lead clicks on call-to-
The sales action
number of
funnel is contacts, then I
Lead interacts with
merely a company should be able to
numbers generate Y leads,
Company pre-
game qualifies lead which when
converted leads
Sale is
closed to Z sales
The Digital Involvement
Cycle
The Digital Involvement Cycle more accurately reflects
the customer decision process; the customer moves
through the pre-decision process to commitment
through the post-decision process to champion. The
customer decision process is not linear but iterative,
building incrementally upon all inputs and moving
through repeated cycles until a definite action is taken.
At this point the second cycle begins as the new
customer grows into a loyal consumer and shares
customer experience on social media advocating for and
ultimately championing the brand
Digital Involvement Cycle
Awareness
Interest
Involvement
Commitment
Loyalty
Advocacy
Champion
From paid, owned and earned media to
converged media
Media Definition Examples The Role Benefits Challenges
Owned Media Brand controls the • Website Build for longer term • Control • No guarantee of
channel • Mobile site relationships with • Cost efficiency results
• Blog potential and • Longevity • Company
• Facebook existing customers • Versatility communication
and earned media • Niche audiences not always
assets trusted
• Takes time to
scale
Paid media Brand pays to • Display ads Shift from a • On demand • Clutters the user
leverage the channel • Paid search foundational element • Immediacy experience
• Sponsorships to a catalyst that • Scale • Declining user
feeds owned media • Control experience
and creates earned • Poor credibility
media
Earned media Customers become • WOM Listen and respond- Most credible • No control
the channel • Buzz earned media is often Key roe in most sales • Can be negative
• ‘Viral’ the result of well- Transparent and • Unpredictable
executed and well- sustaining scale
coordinated owned • Hard to measure
and paid media
initiatives
Integrated Digital Marketing
A marketing action is digital if it is reliant on a
digital medium to execute its specific functions
or complete its intended action. To stay
competitive, companies cannot afford to have
marketing silos. Digital marketing must be
integrated.
IDM Strategic Model
Define and Establish Convey and Promote Connect and Convert Measure and Refine
Strategic Analysis Strategic Analysis Strategic Analysis Strategic Analysis
Are your organization Is your content engaging and Is your online presence For each stage of the Digital
values and goals in effective? optimized for mobile? Involvement Cycle, are
alignment? Does it reflect your Does each of the seven analytics monitored and
Are all the elements of the organization values and stages of Digital measured and KPIs
Brand’s blueprint analysis goals? Involvement Cycle correlate evaluated against goals?
consistent and integrated Are your reaching your to the goals, targets and
with organization values intended audience? Are you tactics designated for each
and goals? interacting with them? stage?
Have you taken time to
perform an IDM strategic
analysis?
Tactics Tactics Tactics Tactics
Clarify Values Content marketing SoLoMo Website performance
Define Goals Social media marketing Lead Nurturing management
Shape Brand Message Paid social promotion Lead Conversion Social performance
Establish an online SEO management
presence Paid search Integrated performance
management
MEDIA SCENE IN INDIA AND
FUTURE TRENDS
Media buying agencies
• Agency of record (AOR)
• Central Media Buying (CMB)
Media Purchases thru Media
Buying Agencies
• 1980 1%
• 2000 25%
• 2006 33% (likely)
4 out of 10 Indians are still not
reached even today
Every 100 kilometers the dialect
changes
A country with many tongues
• 16 official languages
• Approx. 1000 dialects
Geographical size
• 7th largest area mass
• Population/ Area mass – India is No.1
• In comparision even USA is No.4
Media target
• 15 million people are being added every
year
• 5 – 14 age group – 26% population
• < 30 yrs - 70%
Rural Urban Divide
• 20 to 30 % of the population, with the urban %
growing every year
• 39% urban population are concentrated in the top
35 towns (towns over 1 million)
• 52% of the rural live in the smallest villages.
• 4 out of 5 HH have an HHI of less than Rs. 2000
p.m.
Market Penetration is far higher
than media penetration
Growth of Media Expenditures
• 1994 Rs. 3500 crores
• 2000 Rs 9000 crores
• 2005 Rs 16000 crores
Time spent on Media
2000 2001 2002 03-04 2005
Press (cr) 23.2 23.3 23.1 25.2 36.0
Time spent min 32 31 30 29 35
TV (cr) 33.3 34.3 35.0 37.0 38.6
Time spent min 113 110 112 108 106
Radio (cr) 12.2 10.5 10.1 13.8 15.3
Internet (cr) 0.3 0.5 0.8 1.2 1.2
Types of Media used
• TV
• Press
• Radio
• Cinema
• C&S
• Internet
Share of expenditure by media (%)
Year TV Press Radio Cinema Outdoor Internet
1990 23 63 4 0 9 0
1995 29 59 3 0 9 0
2000 46 45 2 1 7 0
2005 41 49 2 1 6 1
Top ad spends by category (rank)
category 2001 2002 2003 2004 2005
Soft Drinks 1 3 9 10 7
Soaps 2 1 1 2 1
Automobiles 3 7 7 5
2 wheelers 4 8 6 6
Toothpaste 5 5 5 8 4
Shampoo 6 6 3 1 2
Corporate 7 4 2 3
TV 8
Comp Edu 9
Website 10
Detergents 2 4 4 3
Hair Oils 7
Fair creams 9 10
Mosq. Rep 10
Cell Phone Ser 8 5 6
Biscuits 10 8
Cell phones 9 9
Top 10 brands – 2004 BE
• Ponds • Colgate
• Fair and Lovely • Lux
• Brittania • Rin
• Vicks • Dettol
• Bata • Tata salt
Top 10 Advertisers
Company 2002-2003 2003-2004 % Change
HLL 842 759 (9.8)
MUL 384 516 34.3
ITC 219 267 21.7
RIL 160 221 37.9
Ranbaxy 131 182 39.5
Dabur 160 155 (3.1)
Colgate- 185 148 (20.1)
Palmolive
Nestle 151 136 (9.7)
Bharti Cellular 118 133 12.6
Bajaj Auto 129 129 0.2
Top Trusted Agencies – 2004 BE
No.of top 20 No. of top 20 Top brand
Rank Agency brands -2004 brands -2003
1 Lowe 6 6 Fair and

lovely (7)
2 JWT 5 7 Lux (2)
3 O&M 4 3 Pond’s (6)
4 TBWA 2 0 Zandu balm
(16)
5 Rediffusion
1 1 Colgate (1)
6 Bates 1 1 Tata Salt (4)
7 Ambience 1 1 Vicks (9)

Media Reach (2000)
(%)
Media Urban Rural
TV 79 40
Press 58 15
Cinema 29 14
Radio 18 19
Media Reach (2000 – 2005)
Media Urban Rural
2000 2005 2000 2005
TV 79 (56) 83 (65) 40 (18) (28)
Press 58 45 15 19
Cinema 29 10 14 5
Radio 18 33 19 28
Media Penetration NRS 2003
Media All India Urban
Print 25 46
TV 53 80
C&S 20 46
Radio 22 25
Cinema 7 11
Internet 1
Share of Adspend by media (%)
Media 2003 2004
TV 45.2 44.8
Print 42.5 42.5
Radio 2.2 3.0
Cinema 0.1 0.2
Outdoor 9.3 8.9
Internet 0.6 0.7
% HH owning TVs
owned 1998 2000
1 97 96
2 3 4
3+ 0 1
TV ownership
(million)
1995 1998 2000
Total HH 159 174 180
TV owning 42.5 54.5 61.5

HH
% 27 31 34
Top 5 programmes in C&S
channels (2000)
• Kahani Ghar Ghar Ki
• Kabhi Saas Bhi Kabhi Bahu Thi
• Kasauti
• Son Pari
• Kahin Kissi Roz
Top 5 serials (2003)
• Kyunki Saas Bhi Kabhi Bahu Thi
• Kahani Ghar Ghar Ki
• Kasauti Zindagi Ki
• Des Mein Nikla Hoga Chand
• Jassi Jaise Koi Nahin
Top 5 channels preferred
• Star Plus
• Sony
• Zee
• Regional
• Doordarshan
Top 5 Revenue earning channels
(2005)
• Zee Telefilms – 1360 cr
• Star India – 1300 cr
• SET India – 1000 cr
• Doordarshan – 665 cr
• Sun Network – 300 cr
Top 5 revenue earning Channels
General Entertainment(2005)
• Doordarshan
• Star Plus
• Sun TV
• Gemini TV
• Zee Cinema
Top 5 revenue earners in
News channels (2005)
• DD News
• Aaj Tak
• NDTV India
• Star News
• Zee News
Channel categories preferred
• Movies
• News
• Sports
• Music
What does the future hold?
TV and C& S
• Fragmentation of viewership
• DD will counter this with more private
participation
• Satellite TV will provide further growth
impetus through regional /niche channels
Press Readership
(%)
Language Dailies Magazines Total
English 7 16 15
Hindi 45 40 41
Vernacular 48 44 44
Print Penetration (NRS 2003)
Across SEC Penetration %
Urban 46
SEC A 85
SEC B 69
SEC C 51
SEC D 33
SEC E 17
Publications
• There are over 40000 publication being
printed.
• 85% of these are language publications
Readership
(%)
Publications Total Male Female
Dailies 32 44 18
Magazines 18 23 13
Any 34 46 21
Publication
English vs. language (2000)
• Among the dailies, the first 8 are
vernacular. TOI comes 9th.(TOI is now
No.3)
• Among the magazines, INDIA TODAY is
2nd. All other nine publications are
vernacular.
Print - NRS 2003
• TOI is No.3 in the top 10 publications. The first
two are vernacular – Dainik Bhaskar and Dainik
Jagran (DJ is now No.1 – 2.2 crores circulation)
• Among the English Dailies, TOI, HT and The
Hindu are the top 3. For the first time an afternoon
daily, Mid-day is No.8 in the top 10 dailies.
• ET is the only business paper to make it to the
English top 10 at No.6.
The future
• Had to pull up its socks, Satellite TV was
hitting it. Had to resort to better analysis,
packaging, layout.
• Reshaping – layout , colour, spl. Issues,
local editions
• Aggressive Marketing – invitation pricing,
freebies, subscription drives
Cont’d
• Segmentation
Interest groups – eg.men, women
Content based – business, sports, fashion
• Pampering the reader – visual quality,
features
Vision
• Current – monopolies weakening, niche
publications
• Future – further fragmentation, press barons
entering radio /TV, innovate beyond space with
advertorials, promotion events, sponsorships
• Exploit emerging opportunities in cross media
ownerships
Implication – striking cross media deals,
leveraging spends
Radio
• State run – among the largest in the world
• 3 tier broadcasting system – local, regional,
national
• Programming in 24 languages and 146
dialects
What is the present status?
• Reaches a very large audience.
• A very important vehicle for the rural
market
• Impact however has been going down
because of TV.
Future
• Huge resurgence because of FM.
• Mobile audience
• Large media groups and channels entering
the fray.
• Local ethnic stations to spring up
• 70% of non TV HHs do not own radio or
have access to radio. Huge potential for
growth.
Cinema
• Current status
Reach going down owing to theatre viewership
going down. However, South is the only exception
where cinema is next to TV in reaching audiences.
• Future – High impact but stagnant medium.
a small revival is expected in
larger cities with multiplexes and better
viewing facilities.
Outdoor
• Is still relatively unorganised
• Heavy usage for liquor and cigarettes
• Lack of monitoring services
Technology is showing the way
• Hand painting to digital painting
• Metal to paper to PVC/vinyl
• Illuminated sites – frontlit/backlit
• Vinyls to lenticulars (lustrous)
INTERNET
• Net advertising comprises only 0.5 % of the
total adspend of the industry.
• Likely to grow upto 3.7% in year 2005
Internet usage
• Major uses from Internet
1) e – mail 37% now 32%( inclusive of
surfing)
2) chatting 15% (now 32% )
Time spent on the Internet
All Cybercafe Home Office
Base 62.5 21.2 20.3 21.0

(million) (32) (30)
Avg. times 20 15 21 19
accessed/
month
Avg. no. of 1.2 1.3 1.8 0.6
hours/day
Media access for the average
consumer
• Cinema – 5 visits/year
• Press – 22 min/day
• TV – 64 min/day
• Radio – 17 min/day
• Outdoor – 15 panels /day
Media knows no boundaries; it is
no longer constrained by
traditional choices
MEDIA
Media Planning
• It is basically the process involved in answering a

client’s question :
“ What are the best means of reaching out and

communicating to the prospective customers of my
brand ?”
TV Plan
Channel Prog Day/Time Dur Rate Spots Cost
X A Mon/2100 30 100 4 400

B Tue/2100 30 200 4 800
C Wed/2100 30 300 4 1200
Y D Thu/2100 30 400 4 1600
E Fri/2100 30 500 4 2000
F Sat/2100 30 600 4 2400
G Sun/2100 30 700 4 2800
Plan Total 28 11200

Print Plan
Publ. Lang Freq Circl. Edition Size Col/BW Ins Rate Cost
A Eng Dly 50 All 100 cc BW 4 100 400

B Hin Dly 60 All 100 cc BW 4 150 600
C Eng Dly 40 All 100 cc BW 4 200 800
X Ben Mnly 100 Cal FP Col 1 250 250
Y Tam Fnly 20 Mad FP Col 2 300 600
Z Tel Wkly 10 Hyd DS Col 4 200 800
Plan Total 19 3450

Evolution of Media Function : The front end
Insignificant part of a full service agency : Till TV (TRP)
Significant part of a full service agency : Till Zee TV
Critical part of a full service agency : Since Zee TV
Beginning of media unbundling : Since recession

(CMB/AOR)
Unbundling of agency : Since Carat
Media Service = Independent Business : TODAY

Some Basic Concepts
Reach
The total number of different people who have

been exposed at least once to the campaign
Frequency
The no. of times the audience gets exposed to the

campaign during the campaign period.
Average Frequency/OTS
The average number of times the target audience

was exposed to the campaign during the campaign
period.
Media weight
• The product of reach and frequency is known as GRPs.

• GRP is a measure of the media weight delivered by a
media plan
Media Research
Socio-Economic Classification
• A demographic indicator designed by the Market Research

Society of India to reflect purchase behaviour.
• It is based on 2 parameters - Education and a predefined

list of 11 goods and services ownership of the Chief Wage
Earner of the Household ranging from electricity
connection, agricultural land to consumer durables such as
airconditioners and cars.
• The SEC of the HH determines the SEC of the family

members.
• It has 12 grades from A1 to E3

Broad SEC Classification - Urban
SEC By Education By Occupation
A1 Grad & Post Grads B/I/SEP/Officer &Execs

(General & Professional) (Sr & Mdl)
A2 Grad & Post Grads Shop ownrs, Sup Level,

(Professional) Ofiicers & Execs (Jr Lvl)
B1B2 SSC+ < Grad Skld wrkrs, Petty Trdrs,
Clerk,Salesmen
C Schooling 5-9 yrs Skld wrkrs, Petty
Trdrs, Clerk,Salesmen
D Schooling upto 4 yrs Skld/Unskld, Petty Trdrs,

Clerks,Salesmen
E Illiterate Skld/Unskld, Petty Trdrs,
Socio-Economic Classification - Rural
• A demographic indicator designed by the Market

Research Users Council
• It is based on 2 parameters - Education of the Chief

Wage Earner of the Household and the Type of
House
• The SEC of the HH determines the SEC of the family

members.
Broad SEC Classification Grid - Rural
SEC By Education By Type of House
R1 Some College but not Grad., Pucca

Grads & Post Grads
R2 SSC/HSC Semi Pucca
R3 No formal school, Semi Pucca

Schooling upto 9th Std
R4 Illiterate Kuchha
New SEC Classification
• This is a revision on the earlier SEC scales

• It has 12 (A1 to E3) subgroups as against the
previous 8 for Urban and 4 for Rural.
• As against education and occupation for urban and
education and type of house for rural, the present
system takes ownership of durables(list of 11), which
is common for urban and rural households.
• Questions asked of the sample are relating to
ownership of durables, agricultural land, income and
education of the chief earner
• Advantages – uniform system for urban and rural,
easy to classify, less subjectivity and more
discrimination between subgroups
Databases Used by Planners
Print
Readership & Circulation
• NRS - National Readership Survey

• IRS - Indian Readership Survey
• Product profiles - Data on product and brand usage
• ABC - Circulation figures
Some Definitions
Urban & Rural Classification
According to the Census of India 1991, the following criteria were

adopted for treating a place as urban :
1. All statutory towns, i.e., all places with a municipality,
corporation, cantonment board or notified town area committee,
etc.
2. All other places which satisfied the following criteria :

- A minimum population of 5000
- At least 75% of the male working population engaged in
non-agricultural pursuits, and
- A density of population of at least 400 per sq km
Contd..
Some Definitions (cont’d)
Urban & Rural Classification
3. Apart from these, the outgrowths of cities and towns

have also been treated as urban.
All areas not identified as Urban, are classified as Rural

Household - A person living alone or a group of
persons staying together & sharing
food from the same kitchen
CWE - The member of the family who

makes highest contribution to the
HH income
MHI - The sum of income of all members

of the family
Housewife - The female or the male member of the HH

who is chiefly responsible for HH tasks
and decides what should be purchased
for the HH, for products such as soaps/
toothpastes, etc.
Literate - A person who can with
understanding do both - read &
write in any one language. It is however
not necessary that he should have
received formal education in a school.
Avg issue –readership - The estimated no. of people who have

read any issue of a publication within
the periodicity of the publication.
Eg. A person would be counted in the

average issue readership of outlook if
he/she has read outlook in the last one
week
Some Definitions cont’d)
Claimed Readership :
No. of people who claim to have read any

publication with a frequency greater than zero.
The National Readership Survey
Conducted by National Readership Studies Council
- Advertising Agencies Association of India

- Audit Bureau of Circulations
- Indian Newspaper Society
• NRS has been strictly an Urban survey

• 6 NRS studies have been conducted till date.
• From 1995, it was decided to make it a once in 2 years
survey
• From 1997 plans are to make NRS a 6-monthly
survey and would also cover rural areas like the IRS
(MRUC).
Covers 12+ age group as against 15+ age group in NRS.
INTAM - Current Status
Reporting 21 centres
- Bombay - Jalandhar
- Delhi - Nasik+Solapur+Aurangabad
- Calcutta - Vishakhapatnam
- Madras - Vijaywada
- Bangalore
- Hyderabad
- Ahmedabad
- Lucknow + Kanpur
- Pune + Nagpur
- Madurai + Coimbatore
- Bhopal + Indore
Peoplemeter Types
Tuner Substitution
These meters work by substituting the tuner inside the TV set
with their own tuner. Thus these meters have a direct control
over what is happening on the TV set
Tuner Monitoring
Monitoring meters work by placing a small antenna-like probe
near the tuner inside the TV set to detect the channel being
viewed.
Picture Matching
Meters that capture the picture on the TV set which is later
matched with the pictures collected at the master control station.
Calculation of TRP
- The Diary Method
Suppose there are 150 Diary HHs in Kanpur
30 people indicate in the diary that they watched Boogie Woogie
Therefore the TRP for Boogie Woogie : (30/150 )x100 = 20
100 people indicate that they watched the Sunday Hindi Film
Therefore the TRP for Hindi Film : (100/150)x100 = 66.6

Calculation of TRP
- The Peoplemeter Method
Universe : 10 people (A,B,C,D,E,F,G,H,I,J)
Programme : Madhubala telecast at 8.30 - 9.00 pm
Channel : Colors
Duration : 30 minutes
Viewership of KZK
Viewer Start Time End Time Minutes Watched
A 8:30 8:40 10
B DNW - -
C DNW - -
D 8:46 8:50 4
E DNW - -
F 8:30 8:35 5
G DNW - -
H DNW - -
I DNW - -
J 8:33 8:58 25
Calculation of TRP
- The Peoplemeter Method
TRP of Madhubala :
10 4 5 25
+ + +
30 30 30 30 x 100 = 15
10
The corresponding TRP under Diary Method : (4/10)x100 = 40

Data on Competitive Media Activity
Print and TV
Print
• ORG Press Audit
• ABC
Television
• Time Monitoring Services
• Super services
• Current Opinions and Future Trends
• ORG TV Audit
TV - Advertising Monitoring
• Coverage
– All TV advertising across categories
• Information
– Time of telecast of ad
– Spot duration
– Estimate of spend
• Reporting
– Category/Brand/Channel
• Periodicity
– Weekly
• Utility
– Keeping track of competition
Print - Advertising Monitoring
• Coverage
– Across product categories
• Information
– Date of insertion
– Colour/BW ad
– Size/position of ad
– Estimate of spend
• Reporting
– Category/Brand/Publication/Statewise
• Periodicity
– Monthly
• Utility
– Keeping track of competition
The Planning Process
Various Steps in Media Planning
• Studying the Target Audience and its Media preferences

• Review of our previous year’s performance
• Competitive Analysis
• Identifying Media Tasks/Setting Objectives
• Framing a Media Strategy
• Channel Selection
• Progs/Dlys/Mags Selection
• Developing the Final Plan
• Plan Evaluation
• Post Campaign Review
These do not necessarily happen sequentially

- there are overlaps between these steps
Identifying Media Tasks/Setting
Objectives
• Given the marketing objectives, one needs to identify
Media Tasks and set objectives accordingly
• The Media Objectives should be more a reflection of
the Marketing Objectives
• The marketing objectives provide direction for the
planner in selecting Media. Media objectives should
give further leads based on this.
Examples of Marketing Objectives and
Media Objectives
Marketing Objective
• To increase share with special effort directed only to
the existing customer base
Media Objectives
Marketing Objective
• To increase share with special effort directed only to
the existing customer base
Media Objective
• Focus on the Core Target segment in the existing
markets and increase frequency of exposure to our
advertising
Media Objectives
Marketing Objective
• To regain lost volume - target 14% market share
Media Objectives
Marketing Objective
• To regain lost volume - target 14% market share
Media Objective
• Special focus on markets where market share has
dropped and step up activity levels. Maintain a
consistent level of activity the other markets to
maintain market share
Media Objectives
Marketing Objective
• To acquire 20% market share in year 1 after national
launch, 25% in the next year and 30% in the 3rd year
Media Objectives
Marketing Objective
• To acquire 20% market share in year 1 after national
launch, 25% in the next year and 30% in the 3rd year
Media Objective
• Focus on markets where there is a higher return in
value for every rupee spent. Focus on growth
markets and capture market share
Framing a Media Strategy
• Media Strategy is all about concrete steps taken to

achieve Media Objectives
• This would include steps like setting quantifiable

media targets, finalising Media Mix, taking decisions
on scheduling, market prioritization, identifying role
for each element in the Media Mix, etc.
Market Prioritization - The Need
• All markets might not be of equal importance
• The client might want to focus on some markets for

strategic reasons
• Budget constraints - therefore cover markets with the

available money on a priority basis
Factors Considered in Market
Prioritization
• Dispersion of Brand Sales
• Competitive Activity
• Dispersion of Target Audience
• Growth rates in various markets
• Category Sales Dispersion
• Sales Targets
Media metrics
• CPM – Cost per thousand audience reached

• Weighted CPM – Cost per thousand of target market
reached
• CPRP – Cost per rating point ie. cost of media
buy/vehicle’s rating. Ratings indicate the % of a firm’s
target market that is exposed to the communication.
eg. if the rating of India Today is 16.1 and the
cost of advertising in India Today is Rs 350000 for a FP
ad, then CPRP would be Rs 21739.
if the rating of Frontline is 4.9 and the cost of
advertising for a FP ad is Rs 50000 for a FP ad, then
CPRP would be Rs 10204.
Media Metrics (cont’d)
• Gross impressions – The total exposure of the

audience to the communication
eg. If the readership to Business India is 20 million
and there are 6 insertions placed for a campaign lasting
3 months, then the total gross impressions is 120
mllion.
9/20/22, 10:24 AM Defining Advertising Goals
Defining Advertising Goals

By Russell H. Colley
One basic problem in the measurement of advertising effects is that too frequently the
advertising objectives or goals were not made explicit and, therefore, were not
understood.
The author of the present article presents several useful concepts dealing with the
proposes of advertising under a variety of conditions.
UNDERSTANDING ADVERTISING’S PURPOSE
It is a fact of modern business life that many different people are involved in the creation
and approval of advertising….for a small advertiser, there may be half-a-dozen different
people concerned, while a larger advertiser may have dozens of people involved in the
advertising of a single product, hundreds of people concerned with the entire product
line.
Do all of these people have a common understanding of the purpose of advertising?
We have already indicated what would be the result if you were to conduct a little
survey among these individuals asking: “What are we trying to accomplish with this
compaign or ad for this product at this time?” The same diversity of opinion would
undoubtedly result if the survey asked the more general question “What is advertising’s
purpose in our company?”.
The President may be strongly minded toward building a “corporate image. The Sales
Manager may regard advertising as a means of getting larger orders from retailers.
Financial people may regard advertising as an expense, chargeable to a given fiscal
period. The Advertising Manager or the agency account executive may regard
advertising as an investment, directed toward building a brand image and increasing
share of market.
The job of gaining a common understanding of advertising’s contribution is highly

important. Few of those who influence and approve key advertising decisions have had
any direct advertising experience. But the final decision makers in American industry
are reaching out for a better understanding of advertising and how it can be employed
most profitably in the business.
Robert F. Elder, President of the Plex Corporation, expressed the feeling voiced by
many other chief executives, in these words:
Most management men want to understand advertising and are eager to listen
attentively when you talk to them about it in simple, realistic, down-to-earth terms, and
what it means to corporate sales and profits.
The following chapters are presented merely as one way to explain the advertising
process, what it is and how it operates. These concepts may be helpful in gaining a
general understanding of advertising’s function and contribution in various kinds of
www1.ximb.ac.in/users/fac/MNT/mnt.nsf/pages/ADV3 1/8
business situations.
WHAT IS ADVERTISING?
Those who have spent their lives in advertising may, on first consideration, feel it is
naïve to pose the question, “What is advertising?” Such a question, they may say, is
appropriate only for students and trainees, but not for experienced and sophisticated
marketing and sales executives.
However, different meanings are frequently attached to the terms “Advertising,” “Sales
promotion, “publicity,” “selling,” and “Marketing.”
__________
There is no universally accepted distinction between “advertising” and “sales

promotion.” In some companies “advertising” includes all forms of mass paid
communication directed toward influencing the end consumer, whereas “sales
promotion” includes those forms of mass communication directed toward informing and
influencing the channels of distribution: salesmen, distributors, dealers. In other
companies, “sales promotion” includes mass communication materials (literature
catalogues, displays, films) which are used by the channels of distribution (salesmen,
retailer as selling aids. Hence, a piece of product literature mailed directly to a
consumer is advertising; literature distributed by the salesmen or dealer is sales
promotion. Still another (and perhaps the most traditional) distinction between
advertising and sales promotion is that advertising consists of time, space and
preparatory costs in commissionable media. All other mass commercial
communications are regarded as “sales promotion.” In some industries and channels of
distribution the tierm “sales promotion” is used to refer to any and all activities used to
promote sales including: premium offers and other special inducements to consumers,
special price offers, sales drives and contests, as well as advertising. Under such usage
the term “sales promotion” becomes almost synonymous with “merchandising” and
even “marketing.” The first important consideration is that some agreed-upon definition
be arrived at, as a basis for common understanding within the company and between
company and agency. Resolving industry-wide semantic differences is a longer range
effort.
Terminology differs from industry to industry and within industry. Differences of opinion
on “what is advertising?: are clearly demonstrated when a budget is prepared. In some
companies the advertising budget includes only paid space and time. In others it
includes practically all forms of the printed word including sales literature, price sheets,
publicity releases, house organs, employee communications, etc. (One advertising
manager thought it was going a little too far to change his budget for repair and
maintenance of the clock over the branch office building.) It is important that those
within a given company have a common understanding of terminology.
We start with the obvious fact that advertising is a form of communication. So is a letter
or a personal call by a salesman on a customer. The difference is that advertising is
mass communication. So is a story in a newspaper or magazine, or a play on television.
So is a sermon or a political speech. As a matter of fact, all of the fine arts – music,
poetry, painting, drama – are forms of communication. They convey a frame of mind. By
whatever the means, somehow these forms of art make contact and thereby transmit a
mood or “message” from one humen mind to another.
We begin to separate advertising from the many other forms of communication when we
add the term “commercial” or “paid.” It is paid for by a sponsor who express to induce
some kind of action on the part of the reader or listener that will be beneficial to the
advertiser. To sum up in a definition:
Advertising is mass, paid communication, the ultimate purpose of which is to impart

information, develop attitude and induce action beneficial to the advertiser (generally
the sales of a product or service).
Paid political announcements, recruitment ads, even the “lost dog” ad in the classified
columns of the newspaper are all advertising. They are mass communications, paid for
by a sponsor who wishes to achieve command: the selection of a candidate, the hiring
of personnel, or the recovery of the family pet. But the bulk of all advertising aims
toward the ultimate sale of a product or service. It is this area of advertising as
marketing force with which we are primarily concerned.
HOW THE ADVERTISING PROCESS WORKS.
The ultimate purpose of most advertising is to help bring about the sale of a product or
service.
To come to grips with this question of the purpose of advertising we ask two very simple
and obvious questions:
1. When? (Speed of reaction)

2. How much of the sales-making load is to be carried by advertising?
Answers to the question “When is advertising expected to bring about a sale?” will run
the complete gamut. A department store runs an ad in the eventing paper announcing a
sensational sale of an item. Next morining, people ae lined up waiting for the doors to
open. An hour later clerks are saying, “Sorry, we’re sold out.”
A corporation runs a “corporate image” ad aimed at prospective employees at the

student level. Ten years later a man who read the ad many apply for a job, or he may
specify the company’s products on a purchase order, he may buy some of the
company’s stock.
Of course, the time objective of most advertising falls somewhere in between these two
extremes. The advertiser of automobiles, insurance, farm equipment or machine tools
does not expect people to rush out and buy his product. But he does expect to move
the prospect a little closer to the purchase of his product. Advertising’s job is to increae
propensity to buy- to move the prospect, inch-by-inch, closer to a purchase. If one out of
ten or even one out of a hundred of the people who are exposed to the ads take near-
term buying action we may have a huge success on our hands.
Let’s examine the second question: “How much of the selling load is advertising
expected to carry?”
At one extreme we have a mail-order advertiser who would say, “100%,” because
advertising is the only commercial communication force. At the other extreme is the
industrial company in which personal selling is the key sales-making force. Advertising
assists by carrying part of the communicating work load. One corporation, having a line
of both consumer and industrial products, figured the advertising-to-sales ratio varied
from a high of 25% to a low of 25/100 of one per cent.
Between these extremes we have the wide range of products where advertising is
blended with packaging, promotion, price and personal selling; all of these forces
contributing to the consumption of a sale.
To repeat, we have two variables:
1. The speed of reaction to advertising

2. The share of the communicating work load to be carried by advertising
The Communications Spectrum
The concept of the “Marketing Communications Spectrum”…..offers a starting approach

to the solution of our problem. This concept is applied common sense. It breaks the
subject up into logical and comprehensible steps. It begins with the obvious assumption
that advertising is a communication force. Advertising does not physically impel the
consumer toward the purchase of goods; its purpose is to create a state of mind
conducive to purchase. Advertising, therefore, is one of several communication forces
which, acting singly or in combination, move the consumer through successive levels of
what we have termed the communications spectrum. These levels as shown in Exhibit
A are Unawareness, Awareness, Comprehension, Conviction and Action.
The lowest level of this communications spectrum is Unawareness. At this level are the
people who have never heard of our product or company. The messages about the
product have not penetrated to the point where the consumer recognizes or recalls the
brand or company name. Now it is conceivable that
Exhibit A. Marketing Communications Spectrum
MARKETING FORCES
Motivate people toward buying action Countervailing Forces
UNAWARENESS
AWARENESS
COMPREHENSION
CONVICTION
ACTION
People buy products or vote for candidates whose name are unknown to them. The
chances are, however, that such a product makes few sales and such a candidate gets
few votes. As a bare minimum, we strive for achieving consumer Awareness.
The next level above Awareness in the communications spectrum is that of

Comprehension. In this state the consumer not only is aware of the product or service,
but knows the brand name and recognizes the package or trademark and, in addition,
possesses some degree of comprehension of what the product is and does. He may
say, “Brand A is a headache remedy which the ‘maker claims will give fast relief and will
not upset the stomach,” or “The B company is a manufacturer of earth-moving
equipment that will scoop up 20 tons in one bite.”
The next level of the spectrum, Conviction, can be illustrated by a consumer who says,
“Brand B is a name for a polyester fiber made by the X Company Garments made of
this fiber dry faster, wear longer and hold their shape better. I intend to buy this product
in the future. “ It may also be illustrated by a woman who prefers a particular brand of
lipstick or a man who prefers a particular brand of beer on an emotional rather than a
strictly rational basis.
Finally, there is Action, in which the consumer has made a some overt move toward the
purchase of the product He may have visited a dealer’s showroom and asked for a
demonstration. He may have asked for literature or for a salesman to call. He may have
asked for or reached for the brand at the retail store. Comsume\ationof the sale may
have been beyond the power of advertising: the dealer did not have the brand in stock,
the salesman failed to follow up the lead, the price was considered too high, or the
product lacked appeal when physically examined. However, the advertising induced
action.
Advertising performs its role when it contributes to moving the consumer through one or
more levels in the spectrum: awareness of the existence of the product, comprehansion
of the features and advertanges, rational or emotional conviction of the benefits an,
finally, action leading to a sale.
The Marketing Communications Mix
Advertising is one of several forces contributing to awareness, comprehension,

conviction and action. Other forces will vary, depending upon whether this is a
“consumer” or “industrial” product or service. They may include; person-to-person
selling, recommendation of user or retailer, publicity and various other forms of mass
communication such as displays, exhibits, films, literature, etc.
Rarely does a single communication force move a prospect through the entire cycle.
The exceptions prove the rule Mail-order type advertising can move a reader through
the entire spectrum from unawareness to a cash-in-advance sale in a few hundred
words. Door-to-door salesman and street-corner demonstrators can sell kitchen
utensils, consmetics, brushes, etc., to consumers in a few minutes of persuasive selling.
But the use of advertising or personal selling to achieve the wrapped-up, one-shot sale
is but a tiny fraction of total advertising and selling effort. All of the forces of marketing
communication are brought together in a “mix” or “blend” to move the prospect step by
step, even inch oby inch, toward the ultimate goal of a satisfied customer.
The purpose of advertising is to perform certain parts of the communicating job with
greater economy, speed and volume than can be accomplished through other means.
In some instances – notably consumer package goods – advertising may be called

upon to carry the major part of the marketing communicating work load: from
awareness, though comprehension, conviction and right through to action. Consider a
product sold through self-service grocery and drug outlets. Advertising is the major
communicative force between manufacturer and consumer. The function today of the
package goods retailer is mainly to make the goods conveniently available at a price
and to provide facilities for the physical exchange between goods and money.
In other product lines, notably industrial goods, advertising is a complementary

communicative force. The typical company salesman calling on industrial accounts may
make only three or four calls a day. If we subtract the time he opens behind a steering
wheel, in reception rooms, in handling various service duties and in building friendly
relations, the actual face-to-face time spent in presenting the merits of his product to the
customer is small. The cost per sales call and per selling minute is high; the rate of
penetration of sales messages to the many thousands of buying influences is slow.
Advertising’s job is to increase the productivity of the salesman by relieving hi of a
substantial part of his communication workload.
Falling somewhere in between those two extremes are consumer durables and semi-
durables (autos, appliances, home furnishings, jewelry, clothing, etc.). Advertising’s job
is to deliver people who are informed and emotionally favourable to a brand, across the
retailer’s threshold (and, of course, advertising informs and influences the retailer, too).
Consummation of a sale hinges upon product appearance, price, availability in desired
size and color and a dozen other factors.
Advertising’s job may vary with the season or the stage of a product’s development. It
may be to introduce a new product or a new use of an old product. It may be to hammer
away at product benefits or to crease a favourable emotional disposition toward a
company or brand. In some cases the primary function of advertising is to remind
people to buy or to stimulate impulse purchases.
In very case the function of advertising is to perform a commercial communication task

more economically than by some alternate means.
Advertising Is Automated Marketing Communications
We tend to regard automation as a relatively recent development in American industry,

and so it is when applied to the factory or office. We tend to overlook the fact that
advertising is “automated marketing communication.” Automation can be a powerful
force for increased productivity If it is applied selectively. It would be foolish to propose
that every operation in a factory or office should be automated. The process of boring
cylinders in an engine bloo may land itself to automation, whereas the assembly of
carburetors may not. It may be economical to put factory payroll or finished goods
inventory on an electronic computer in one company and not feasible in another
company.
In a similar manner, we approach marketing communications on a “task basis”:
….What are the communicating tasks to be done?

….What parts of the total communicating job is advertising uniquely and economically
qualified to perform?
….What is the ideal “mix” of these communication forces for each product at this
particular stage in its marketing development?
MARKETING MIX IN ACTION
If we refer again to Exhibit A, we see that advertising is one of several marketing forces
acting upon potential customers and moving them toward buying action. Seldom does a
single force, such as advertising or personal selling, perform the entire task alone. And
rarely is a single force powerful enough to move a prospect though the entire spectrum,
from unawareness to action, through a single message. Advertising’s function is to
move the consumer, step b step, closer to buying conviction and finally, to buying
action.
In some situations, advertising may be designed to work at all levels at the same time,
Let’s assume that the market is equally divided into the five levels (Exhibit B):
Exhibit B.
ACTION - 20% are present users of the product
CONVICTION- 20% are convinced but haven't got around to buying
COMPREHENSION - 20% comprehend the product but are not convinced
AWARENESS - 20% are aware of the product but don't know of the
advantages
UNAWARENESS - 20% never heard of it
Let’s assume that, as a result of an advertising campaign, half of those at each level
move up the rung on the ladder. Then we should have (Exhibit C):
Exhibit C.
ACTION - 30 % present users

CONVICTION - 20%
COMPREHENSION - 20%
AWARENESS - 20%
UNAWARENESS - 10%
Advertising in this instance has worked “across the board,” moving some people from
unawareness to awareness, others to comprehension, conviction and action.
Under certain market conditions (such as intense competition), advertising may perform
a valuable economic function if it succeeds in holding its present share of the comsumer
mind. In addition to replacing customers lost to competition, the advertising has
succeeded in counter-acting such opposing forces as memory lapse and the losses that
occur through death and through customers “outgrowing” the beed for the product
(example: baby food).
Consider some entirely different situations. The force of advertising may be directed at
one particular level in the spectrum, rather than “across the board.” Some situations call
for advertising that is entirely action-oriented (Exhibit D):
Exhibit D
ACTION
CONVICTION
COMPREHENSION
AWARENESS
UNAWARENESS
For example, consider aleading brand of razor blades. Everyone is acquainted with the
product. And while not 100% of the people are convinced, the brand's high share of
industry indicates that this is not the key problem. What is advertising's job? It may well
be to remind people to buy: men forget to buy blades, use old blades beyond their
normal length of life. Similarly, advertising of such impulse items as soft drinks is
strongly action oriented.
9/20/22, 10:24 AM Defining the Advertising Objective
Defining the Advertising Objectives

Distinguish between Marketing Objectives and Advertising Objectives
E.g.
“Increase Sales 10% in X area” or
“Raise Share of Market by 5%

These are Marketing Objectives
Why ?
Sales Results are influenced by many factors of which Advertising is one
To know what an Advertising Objectives is
You must first know what Advertising’s proper job is
“Advertising’s job purely and simply is to communicate, to a defined audience,

information and a frame-of-mind that stimulates action”.
ADVERTISING IS COMMUNICATION
An Advertising Objective is a Communication Objective
“An Advertising goal is a specific communication task, to be accomplished among a

defined audience to a given degree in a given period of time”.
Defining Advertising Objective must proceed from
a. The Product and its virtues

b. The Competition
c. The segment of the Market aimed at all of which should be set down in The
marketing objecive.
Step I
Define the audience
Social class, Income, Occupation, Values and ambitions, Attitudes to Product.
Build up a model of your consumers.
Step II:
Define the Stage of the Communication task
What is the Specific Communication task?

Communication is a process of acting on the mind of your audience.
“We must create a state of mind conducive to purchase”.
This is done by States:
The communication Spectrum
Brand
Action
Conviction
Comprehension
Awareness
Unawareness
Advertising
Generally, you must telescope some stages. But necessary to define how much you
can and should aim to communicate through a given advertising campaign.
Three examples :
1. Structo : awareness/comprehension
2. Dulux : awareness/comprehension/conviction
3. Saffola : conviction/action
*Goals: 90% aware; 70% comprehend; 30% conviction – action.
Step III:
Define Consumer Preference or Resistance
What do consumers like about Brand?

What do they dislike?
This is where you need research into consumer attitudes:
Example : Paints Coffee
Step IV:
Define the product promise or claim
1. It must be meaningful and of value to consumer

2. It must be a distinctive – unique claim.
3. It must concentrate on this unique claim.
Unique Selling Proposition (USP)
“Advertising is the art of getting a Unique Selling Proposition into the heads of the most
people at the lowest cost”
Step V: Define the Brand Image
What will be the brand’s ‘Personality?’

i.e. What character or association does it evoke?
Thus : Humphrey Bogart A rugged

Or Sean Connery he - man
Define
To WHOM to say
WHAT to say
The Purchase Proposition or U.S.P.
Put all this in writing

From this will follow:
HOW to say
9/20/22, 10:17 AM Defining the Objective
DEFINING THE OBJECTIVE
The principles by which advertising media may be judged and valued have been described in Part
I. The wide range of different media available has been outlined in Part II. Part III now describes
the way in which media may be selected and combined to form a well-planned and effective
campaign. In the field of commercial advertising, virtually every problem involved continuity of effort
over a period, since the commercial activity of which it is part is continuous. Moreover few, if any,
advertising operations can be satisfied with the use of a single medium; there are usually two or
more to be woven together so that they reinforce each other. There is no doubt, as a result of
practical experience, that the sequence of activities, the timing of each advertisement, and the
combination of one type of medium with another, can materially affect the value obtained from a
given programme and appropriation. The effect of the sales message on the public mind can take
on an added urgency, and an extra importance, when a certain sequence or timing of media is
arranged. On the other hand, a wrong combination of media, or an ill-spaced-sequence of
advertisements can reduce the momentum of the public response, and thus lost the advertiser
some of the value of his investment.
The media plan in an integral part of the whole advertising plan. The marketing objective, the
advertising idea, the design of the advertisements and the choice of media must all be a single
concept. Normally, it is the marketing policy and the advertising idea which govern the media plan;
though there are times when the media factor can become paramount, and it is necessary to work
backwards from the media to the advertising idea and indeed the marketing objective itself. This
can happen when it is clear from a study of the competitive and other circumstances on which the
campaign tactics depend, that an opportunity exists to dominate a certain type of medium, which
competitors may have left inadequately covered; in such a case the advertising presentation and
even the very marketing plans and method may be modified to fit the market opened up by the
chosen medium.
Usually, however, the media selection depends on decisions reached by the marketing and
advertising policy makers. They will have defined the type of campaign that is to be carried cut;
they will have identified the particular groups and classes of the market which it is aimed to reach,
the seasonal factors; the required character of impact on the retail trade and so on. It will be for the
media planner to translate these requirements into the least expensive and most affective
combination of advertising media to do the job laid down.
1. The product, its personal peaks, buying rhythm and similar details
2. The appropriation to be spent.
3. The period over which it has to be used.
4. The competitive position, and the media which competitors are using.
5. The market which is being aimed at, in terms of:
Geography
Sex
Age groups
Social class
Domestic factors (housewives, children, etc.)
Any special groups
Retail trades to be covered
6. The atmosphere required in the campaign, e.g.,
Prestige
Gay
Hard-selling, etc.
7. The objective and tactics of the compaign. These should be detailed in a short note.
Before discussing these headings in detail, it is useful to consider the organization into which the
function of media planning fits. Ideally the planning of the campaign media should be in the hands
of someone who has been present at the overall planning of the campaign objective. Only in this
way can the intentions and aims of the policy be translated with a minimum loss of time and effort
into a media plan. More over, the media possibilities must to some extent govern other aspects of
the plan; for example, the size of space reqired by the creative side may not be available in the
most econmic cedia, or the decision to use colour can take one of a number of alternative forms
which can be finally determined only in the light of media considerations.
In some advertising units, however, the skill of media planning is not sufficiently understood and
there may be a tendency to brief the person or persons responsible for schedule building in a
cursory manner when all the other plans are already well in train. This is a great mistake because,
even in the normal case, where the selection of media is merely following lines already laid down
by advertising and marketing policy, there is a risk that some aspect of the intention will be
overlooked or that some advantage will not be seized which might have been valuable; but in the
exceptional case where the right choice of media might have been a master stroke, governing the
whole campaign plan, the opportunity will have been lost.
Nevertheless, since under some systems the mistake is made, it should at least be arranged that
those responsible for media planning receive the full information they need along the lines of the
above list. Most advertising agencies have a requisition system for the art departments whereby
the executive or other co-oreinating authority details what the advertising objective is, what layouts
are needed, what spaces have to be filled, and so on. It is a sound arrangement to apply this
system also to the medial department, and to use a requisition from in which the headings of the
list of information suggested above form the basis of the instructions for a media plan. This should
secure that the plan is as good as the media department can make it and meets the precise
requirements of the policy.
Let us examine under each of the above headings what may be involved.
1. The product. There are certain factors about the consumer buying of the product which affect
the planning of the media schedule. One is clearly the seasonal factor in sales. Many products
have seasonal fluctuations: some sell best in winter, others in summer; some have peak sales just
before the bank holidays, other have a grand peak at Christmas; some, such as patent medicines
of various kinds, sell heavily during the epidemic season of February; others during May perods
and fine weather, for example, sun-tan products. It may be said that those facts are known as soon
as the product is stated, but that is not always the case; in any event there is no need to leave it to
chance whether the media department is fully informed.
Another factor of importance, particularly n deciding the frequency of insertions is the buying
rhythm of the product. Certain types of product, such as groceries, are bought weekly, and the
week’s buying is usually concentrated into Friday afternoon and Saturday morning when the
paypacket comes home. A study of sales in both grocers and chemists shops indicates how they
peak towards the week-end and tend to fall off on Monday, Tuesday, and Wednesday. Other
requirements, such as holidays or men’s suits, are usually bought once a year; others again at
regular intervals of a few months. Products which are bought once in many years, such as
refrigerators, vacuum cleaners, television sets, will need to be dealt with on entirely different lines,
as regards the sequence of advertising, from products of regular sale.
2. The appropriation. The decision as to what the appropriation of a campaign should be is not
usually within the competence of media planning. It often happens, however, that a media
viewpoint will contribute to the decision. One of the basic methods of approach to deciding the
correct budget is how much will be needed to “do the job” (as opposed to complementary methods
which calculate how much appropriation an estimated sale of the product will yield); and the media
department’s views on the budget required to achieve a set objective are likely to be very relevant.
Once the budget is decided, the issue for the media plan is simple, though it will be important to be
clear whether allowance has been made elsewhere for art, mechanical, printing and other ancillary
costs. Sometimes also it is desirable to leave a small general resource of say 5% of the total for
“contingencies.” Such contingencies may be the possibility of picking up specially valuable
positons suddenly coming an offer or taking topical advertisements when occasion arises; or
strengthening some aspect of the compaign in light of tactical developments. On the other hadn,
the contingency resere carries a risk that it will either be hoarded until it is too late to spend it to
best effect, or that it will be frittered away on relatively valueless advertively valueless advertising
coaxed out of interested parties on a personal “blackmail” basis. A reserve is a good principle only
if it is under the sound firm control of someone who knows the basic intention of the whole plan.
3. The Period: The period for which the budget has to provide is not necessarily the same as the
period over which the advertising will run. The seasonal factor in the product, or the tactical
situation vis-à-vis competitors, may make it essential to spend the whole budget over a shorter
period, leaving some part of the year uncoverd. For example, if a product has a strong winter peak,
the year’s budget will probably be largely spent early in the peak period; which may be no more
than four to six months. Or again, it may be considered best to concentrates the whole year’s
bedget within a three to six months period in order to achieve parity at least during that period with
competitors who have much more to spend. This kind of decision is more within the sphere of the
overall campaign plan than of the media plan, though the later must contribute the facts on which
the wider decision is reached.
4. Competitive Spending. One of the necessary factors in the campaign and thereafter the media
plan is consideration of what competitors are doing:
What media they are using;

What sizes and positions they are working on;
What they are spending;
What apparent tactics the competitive campaigns are adopting.
Largely this job can only be done by day to day perusal of the newspapers and magazines, and by
observation of outdoor media, cinemas, radio, display material, etc. Such constant awareness of
what is going on in the advertising world is an essential part of advertising practice.
The information, however, can be supplemented by the expediture figures given in the Statistical
Peview, which have proved to be sound and accurate; and also by the service of the Legion
Publishing Company which for a fee will give details of the publication media and space sizes
used, and of the detailed costs of any product. Someone would be doing a considerable service to
advertising if they would devise a reliable means for giving the same kind of information for posters
and cinema media. For radio, the Radio Luxembourgh programme sheets give information from
which a close estimate of expenditure can be calculated.
5. Definition of the market. This is perhaps the most important factor in media planning, and yet
one which it is most difficult to provide in many cases with the necessary precision.
Where the aim of the advertising is clearly defined section of the community, such as doctors, or
architects or yachtsmen or people who are deaf, the case is simple, though the media decisions
are not always so straightforward. But the big advertising decisions concern the mass markets, in
which neither the market difinition nor the corresponding media selection can hope to be so
precise.
In some cases there may be consumer research or other exact product knowledge which can
settle conclusively who buys the product and who decides that it shall be bought (not always the
same thing), and where this information is available a media plan can be tailored within the limits of
precision afforded by media to reach the required section of the community with the minimum of
waste.
There are indeed many advertisers who have made a great deal of sales progress with only the
wildest guesses at the exact nature of their market and who rather resent attempts to define their
targets more exactly. For years the tools of measuring both market and media were virtually non-
existent, or at best intuitive and empirical; yet many great businesses were built up on the basis of
advertising at that time. The explanation was partly that the judgment and intuition employed by
clever men are no mean assets, and partly that the marketing conditions made it possible to waste
a great deal of the effect of advertising and still reap an adequate reward. It would probably not be
denied, however, that if intuition and judgment can be suppliemented by more exact
measurements, and if the element of waste can be eliminated to a greater or lesser degree, it is
highly important that new methods should be introduced, especially when more intensive
competition makes it necessary to work within finer margins.
The usual method adopted for defining the market is through the conventions of group
classifications adopted by the market research techniques: that is the age, sex, socio-economic,
and other obvious groupings including geographical and similar factors. Media research, by
adopting the same conventions, has permitted the specification to be satisfied in the same terms
as those in which it is drawn up. It must be readily agreed that the conventions are neither precise
enough, nor convenient enough, to offer more than a general correlation of media potential with
market requirements. It is easy enough by consumer research methods to define the market target
in all sorts of other terms, but if the media are not also defined in the same terms, the additional
data can be of little assistance in media planning. For example, research may ascertain that a
product is bought largely by hypochondriacs, or women with fair hair, or men who tend to worry
about their old age; and these facts may be helpful in deciding the form of product or the
advertising appeal. But such definitions cannot help in media selection because the media
coverage has not been analysed in the same terms (even if it could be). A product which is only of
interest to people with false teeth, or babies under one year old, may be broadly correlated with
media along the lines of age-grouping of readership or certain types of editorial content, and
therefore the information is important to the media department; but the correction may be so broad
that the precision of media selection can go little further than intuitive methods could anyway
achieve. The so-called Readership Survey offer some guidance, but only within the limits of one
type of medium.
The real problem is that so many product needs are determined by attitudes rather than
identificable physical factors such as age or geography, and these attitudes out across the physical
groupings.
Though one may stress the weaknesses of the available resources for measuring markets and
media, the fact still remains that, for many products, it is possible within rather broad limits to select
from the many media abailable those which are likely to be more appropriate or more economical
and involve less waste than others. For this reason the definition of the market to be aimed at is an
important prerequisite of media planning. The process has not yet the precision of firing a bullet at
a bulls-eye; but, even when scattering a charge of buckshot at a widespread tartet, it is still
important to aim the charge into the center of the target.
Sometimes the definition of the market can be narrowed down by geography or type of interest or
some other factor, in such a way as to justify using local or specialist papers, or direct mail, or
some other more limited medium instead of, or in addition to, general media. Certainly in all cased
the retail trade concerned should be stated in the raquisition so that a decision on the use of trade
papers may be taken.
6. Atmosphere. This is a factor which needs particularly to be specified in giving the media
department its brief. Is the campaign aiming at reputation or quick sales? Is the reaction of
Throgmorton Street as important as that of the housewives of Huddersfiedl? Does the advertiser
value his prestige to the extent of pulling some punches even if it means losing marginally on
sales? Does the marketing and advertising policy carry with it some atmospheric element glamour,
gaiety, humour, colour, or seriousness, or sporting interest, or anything else – which could be
translated into choice of publication, or other means of advertising, or into special selection of
positions within the medium as a whole? Is the atmosphere of the campaign such as will require
very good printing on very glossy paper? It is not only that an understanding of the atmosphere
required in the campaign can help in selecting suitable media; it is also that this understanding can
avoid the risk that impressions successfully achieved in the marketing policy and the creative work
are not cancelled out by the use of media which spoil the atmosphere and nullify the carefully
constructed appeal.
7. The objective and tactics of the campaign. Almost every advertising campaign has a different
character from every other. Something in the tactical circumstances, in the relationship of the
budget to the job to be done, in the special type of product, or hundreds of other aspects of the
policy behind the scheme gives the campaign its own particular character and intentions. To the
writer the chances of one schedule doing equally well for two advertisers seem very remote.
The factors on which the media planners must be thoroughly briefed are, for example:
Whether strong impact is important.

Whether maximum repetition is more necessary than size.
Whether there is a fundamentally new idea to promote, such as might require editorial activities.
How important is the effect on the retail trade in this campaign.
Whether the need is to get direct sales response or rather to build a long-term confidence,
And so on….
It is too easy, and too frequently ancountered a mistake, to talk about “doing a campaign” for such-
and-such a toothpaste, or soap, or some other apparently straightforward commodity. In practie,
the precise stage of marketing development of the product and the exact nature of the competitive
position, will create variations in the tactics required to deal with apparently simila.
In this respect it is usually the overall campaign plane, of which the media recommendations are
only one aspect, that will determine the matter. The copy and campaign idea and presentation will
reflect the reuired tactics at least as much as the media selection. Nevertheless, it is sometimes
forgotten that media selection too is capable of taking a wide variety of different forms according to
the particular objective to be achieved.
For example, in advertising a tore, the difference between selling particular spearhead lines from
time to time, and building up a reputation for the store as a shopping centere, makes a world of
difference not only in the presentation but also in the media planning of the advertising campaign.
Or again, in selling a straightforward mass-appeal consumer grocery, the differences between
getting as many people as possible to try it for the first time remaining the mass housewife
population of a well known name, so that it will recur to them with confidence at the time of
purchase inspiring confidence in the retail trade so as to make easy the job of widening distribution
– ensuring continuity of purchase of a particular brand in a rather changeable market –
reviving an established housewives to fellow as solidly as the last generation in a well-worn

household practice –
creating a belief in utmost value for money –
or a dozen other possible variations of advertising intention –
will involve differences in media selection as regards type of media, or size of spece, or position, or
frequency, or some other factor, such as will materially affect the whole plan.
If the best way into a particular market, against eneterenched competition, is through a particular
type of buyer, or a particular atmosphere of appeal, or through promoting a new habit (which might
be better done by editorial publicity than by staraight paid-for advertising), or by a special class of
distributive outlet, or by some other variation from the normal, the supporting advertising will then
assume an appropriate form and the media plan will fall into line.
The objective of stimulating direct replies, as for example in mail order projects, or immediate
action in the shops, will call for entirely different media treatment from that of creating a long-term
confidence perhaps for a product which is only bought twice in a lifetime and lasts for twenty years.
The writer recently had to consider a case in which the sales manager of the advertising company
was pressing for the use of local provincial evening papers on the ground that the local retailers
thought well often and would, therefore, be more ready to take the product into stock. An opposite
point of view expressed by the financial director of the company was that, since the ability of the
company to raise money in the City of London had to be borne in mind, it was valuable to build up
prestige in national newspapers and especially in the class of papers read by the city magnates.
An orthodox advertising point of view – a third consideration –was that since the product was an
ordinary household commodity bought by housewives, and had at least a fair distribution
throughout the country, the most econ9omical advertising medium would be national press and
magazines and perhaps posters. Here is an example of a clash of obuetives; until there can be a
final definition of the tactical objective of the campaign it is not possible to make the media plan
fully efficient and economic.
It is perhaps necessary to add to this section that the conflict of interests, of which the instance just
quoted is an example, is by no means easy to solve. A clearly charted course for the campaign,
however desirable, may never emerge from the cross-currents of competing interests in the
advertisor’s board-room. The media plan can be no batter than the general campaign plan allows it
to be. It happens only too often that there is no one person on a controlling board or committee,
strong enough to fix a steady course and lay down the exact objective and tactics for the
advertising. But there will be no arguments among these with advertising experience that this lack
of clarity of objective is one of the greatest dangers in advertising planning, and in no department
of the campaign will it have such wasteful effects as in the media plan.
This then is the information on which the campaign plan will be built; the next chapter describes
some of the principles which may be applied in campaign planning.
Source : the Selection of Advertising Media by J.N.Hobson, M.A., F.I.P.A.
9/20/22, 10:20 AM Definition of Promotion
DEFINITION OF PROMOTION
The nature and role promotions and their function in the marketing of packaged
goods are defined below. These definitions apply universally in the marketing
sense irrespective of accounting practice of marketing technology within particular
companies. They define promotions in the broadest possible sense.
IN SUMMARY PROMOTION IS AN IMPORTANT MARKETING FORCE

THE PROVIDES AN EXTRA INCENTIVE (USUALLY
SHORT TERM IN NATURE) FOR CONSUMERS, THE
TRADE. THE SALES FORCE AND OTHER INFLUENTIAL
GROUPS
AN IMPORTANT PROMOTION IS ONE OF THREE MAJOR ACTIVITIES IN
MARKETING THE MARKETING OF PACKAGED GOODS
FORCE
Promotion ranks with advertising and field selling effort as
one of the major activities that can be utilized in the
marketing of packaged goods.
AN EXTRA PROMOTION IS A SPECIAL INCENTIVE
INCENTIVE
Promotion is an extra incentive over and above (1) the
product’s inherent qualities, (2) its established price, (3) its
advertising and (4) its field selling efforts.
BROAD OR PROMOTION IS DIRECTED NOT ONLY TO CONSUMERS
SPECIALIZED OR THE TRADE, BUT ALSO ON OCCASION TO THE
IMPACT SALES FORCE AND OTHER INFLUENTIAL GROUPS
Promotion, in its broadest sense, provides extra incentives

for any group that is an important factor in the marketing of
a brand. Although it is most often directed to the consumer
or to the trade, it may also be directed to the sales force, or
to other influential groups (such as doctors, home
economists or appliance manufacturers) … or to all of them
at one. Promotion covers a wide field.
IMMEDIATE OR PROMOTION IS BOTH A SHORT-RANGE AND A LONG-
LONG-RANGE RANGE ACTIVITY
CHARACTER
Usually promotion is short-term in nature. On occasion,
however, it can be a long-term activity (as in the case of a
continuing in-pack premium operations).
FET BASIC TYPES PROMOTION IS LIMITED TO RELATIVELY FET BASIC
ENTRES
Although promotion covers a wide field and seems to offer

endless variety, almost all promotional activity is a variation
on one or more of a few basic types. An understanding of
what promotion is and what it does starts with a knowledge
www1.ximb.ac.in/users/fac/MNT/mnt.nsf/pages/adv10 1/23
of these basic types. A check list of basic promotion types

is provided in Appendix 1.
II. THE ROLE AND MECHANICS OF PROMOTION
Promotions are an extremely valuable tool for the marketing of packaged goods
brands. Like all other tools, promotions can make a valuable contribution to
marketing when they are properly used. Of course, they are capable of misuse as
well by unskilled and inexperienced hands. The doubts about promotions and their
misuse can be guarded against by clear understanding of its proper function and
mechanics in the context of the full range of marketing activities and situations.
PROMOTIONS THE FUNCTION OF PROMOTION IS TO ACCELERATE

FUNCTION ACTION STATED BY OTHER MARKETING ACTIVITIES
Promotion acts as a catalyst to accelerate action, primarily on

the part of the consumer, the trade or the sales force. It
supplements, but is not a substitute for, advertising and
selling efforts.
Its function is to speed up or trigger the action that: (1)

advertising has persuaded the consumer she should take …
)2) the salesman has persuaded the retailer he should take
… or (3) the sales manager has exhorted the salesman to
take. Promotion’s function is to act as a catalyst that triggers
action on the part of those who are favourably predisposed –
largely because of previous advertising and selling efforts –
to act.
BOTH PROMOTION ACCELERATES ACTION BY CHANGING
PROMOTION THE PRICE – VALUE RELATIONSHIP OF THE BRAND
WORKS
Every product has an established value in the minds of the
consumer, the trade or the sales force. This is what the
consumer or the retailer or the salesmen is normally willing to
expend (in money or effort) for what he gets, or thinks be
gets, when he buys (or sells) the product.
Promotion changes this price-value relationship to the point

where the individual is stimulated to take a desired action. It
does this in most cases either by lowering the price or by
increasing the value of the product, or both.
Where the product or its advertising or its selling efforts have

failed to establish any worthwhile value, promotion is unlikely
to be successful because promotion seldom if ever, provides
basic lasting values by itself.
BOTH PROMOTION IS A VERY GOOD METHOD – BUT NOT THE
PROMOTION ONLY METHOD – OF CHANGING THE PRICE-VALUE
COMPARES RELATIONSHIP
WITH OTHER
MARKETING A product improvement can increase the real or imagined
ACTIVITIES value of a brand – at least until competition duplicates the
improvement.
An attractive, convenient, image-reinforcing package can

increase a brand’s value to the consumer or trade.
A price reduction can change the price-value relationship –

but in a way that can quickly be matched by competition.
Effective selling efforts (effective distribution, pricing, display,

etc.) can improve the price-value relationship – not only to
the trade, but to the consumer as well. Yet the number of
salesmen is limited end they call infrequently on most stores.
Improved advertising is one of the best ways to increase the

value of a brand. A better advertising copy story – or possibly
better media coverage and frequency – can give a brand an
advantage that competitive brands cannot easily duplicate.
For advertising persuades by implanting ideas in the mind –
and what is put into the consumer’s mind is the key to her
action in the market place. And the consumer’s action in the
market place is, in turn, the key to the value the trade puts on
the brand. No other marketing endeavor works so effectively
o the consumer’s mind
- and thus indirectly on the retailer’s mind

- as advertising.
Promotion – provided it supplements all these other

marketing activities – can quickly accelerate action by
providing meaningful, readily visible (but temporary) change
in the price-value relationship. Without a backleg of other
value-building marketing support, however, promotion is not
likely to be effective long term.
Used properly, promotion can be an effective method of

temporarily changing the price-value relationship and thus
accelerating desired action by consumers, the trade, the
sales force, and other influential groups.
WHEN TO USE THE NEED FOR PROMOTION VARIES. IT IS GREATEST
PROMOTION THEN:
1. A BRAND’S QUALITY IS INFERIOR TO COMPETITION;

OR
2. A BRAND’S ADVERTISING IS NOT AS PRESUASIVE AS
COMPETITIVE COPY; OR
3. A NEW BRAND IS BEING INTRODUCED
There is no known formula for determining what percentage

of a brand’s marketing expenditures should be devoted to
promotion. It depends on the situation. But there are some
guide lines.
Generally, promotion is most needed when a significant

number of consumers (or retailers) are not convinced that a
brand’s value in relation to competition is high enough to
warrant its price.
This usually occurs (1) when an established brand is inferior

to competitive brands in quality, appearance or results, or 92)
when the brand’s advertising copy – completely apart from
the media expenditures behind it – is not as effective as
competitive copy in persuading the consumer to buy the
brand, or (3) when a new brand is in the process of
establishing its basic value through its initial advertising and
through increasing consumer trial or the product – trial which
promotion can accelerate.
Obviously there are many degrees of need for promotion,

and in actual practice even a healthy brand needs a certain
amount of promotion in its marketing mix. But, long term, the
more the product’s quality and its advertising persuasiveness
fail to meet competition, the greater is the need for promotion
to improve the brand’s price-value relationship.
Therefore, (except short term in new-product introductions) a

high ratio of promotion to advertising generally indicates that
work needs to be done to improve the brand’s quality and/or
its advertising copy.
PROMOTION’S AT EACH STAGE IN A BRAND’S LIFE CYCLE A
ROLE IN THE DIFFERENT DEGREE OF PROMOTINAL EMPHASIS IS
LIFE CYCLE OF REQUIRED.
A BRAND
In a competitive market a brand generally follows a well
defined life cycle, each stage of which requires different
promotional treatment.
New Product A new product can usually profit from substantial promotion
support – if the product, the advertising, distribution and price
are right … i.e. equal to competition in most respects and
superior in some respects.
Here is where promotion can truly perform its function of

accelerating trial and purchase of a brand whose value has
not yet been fully established in the minds of all consumers.
Although good advertising on a new brand will persuade
many consumers to try the brand, it is not likely to persuade
every logical prospect to take immediate action. Those that
advertising does not quickly move to action require an extra

incentive, such as a free sample or coupon or some other
devide that increases the value of the brand, or lowers its
price, to the point where the prospect decides to buy it. If the
product is of good quality, promotion thus helps to establish
its value ore quickly in the minds of more people.
There are indications, incidentally, that many new brands (but

not all) reach their share-of-market peak within six months to
a year after the completion of their introduction. This leads to
the conclusion that a brand of proven product and advertising
copy superiority would be well advised to meet maximum trial
during the introductory period by spending heavily in the
advertising media and on the promotional devices that are
most effective in reaching the brand’s best longterm
prospective consumers. Investment at the highest practicable
level in offective advertising and promotion during the
Growing Brand introductory stage, therefore – by quickly achieving a high
franchise level – can establish a business that is less
vulnerable to competition and that returns higher level of
profit in the following years.
An established, growing brand generally requires minimal

promotion support, usually of a selective nature. The product
and its advertising are still equal to or better than
competition. A high proportion of potential customers have
tried the brand and many have become more or less regular
users.
In such a healthy situation, the job that promotion has to do

usually is much narrower and more specialized. It can be
Stable Brand sued for sch specific purposes as improving distribution on
large sizes, attracting new users from fringe groups or areas
where usage levels are below potential, or increasing the
consumption among present users. Total promotion
expenditures, however, can be cut back to levels that
generate optimum profits – so long as the brand continues to
represent superior value for the price.
A mature, stable brand may need increased promotional

support as competition begins to match it in product quality
and in the persuasiveness of its advertising copy, or as the
brand reaches its natural franchise level. When this happens,
growth ceases, sales and share level off.
Although the market appears to be in a state of equilibrium,

there is seething turmoil under the surface. Consumers are
switching to competitive brands – but are balanced by those
switching away from competitors. In this dynamic market
increased promotional effort can provide the improved price-
value relationships needed to hold onto present customer

Declining Brand and to attract new users to replace those lost to competition.
But here also is the time for efforts to be redoubled to
develop an improved product, a better package, a new and
more persuasive advertising story, better distribution or a new
use or market. Promotion can delay the day of reckoning and
give time for such work … but it cannot prevent the inevitable
decline that will occur without an improved product and better
advertising to re-establish the basic value of the brand.
A declining brand may need much heavier promotion support

as it becomes old and out-dated by new or improved
competitive brands. Efforts to improve the brand’s quality and
its advertising copy to equal competition may have been
unsuccessful. Increasing the advertising appropriation may
not help – and may, in fact, merely reduce profits.
Yet the old successful brand has a strong base of loyal users
– or potential users – because of past product quality and
memorable advertising … a substantial reservoir of good will,
an established value in the consumer’s mind. True, the value
may be lower that it used to be before competitive brands
made inroads, but it is there and it still is substantial.
Under these conditions, promotion can temporarily maintain

brand sales by building on the established good will. It can
increase the value of the brand, or lower its price, to the point
where the reservoir of potential consumers is persuaded to
buy the brand. Unfortunately, unless improvements are made
in the product and the advertising – and unless the
advertising is maintained – heavy emphasis on promotion at
this stage seems to erode the brand’s basic values, so that
ever larger discounts and heavier promotions are required to
maintain sales volume. Ultimately, advertising may be
discontinued and a decision made to “milk” the brand by
relying solely on promotion to brake the decline.
The decision to “milk” a brand through promotion, however,

must not be taken prematurely. Brands that were once strong
can retain remarkable vitality under the survace. They may
have a more firmly established value and longer life than is
realized. Abandoning efforts to improve the product and the
advertising while switching to heavy promotion may serve
only to erode more quickly the established values of the
brand. This in turn hastens its eventual demise and the loss
of profits which the brand has generated. The decision to
switch almost completely to promotion is one that should not
be taken lightly.
In Summary, it appears that there is no magic formula to tell

the marketing man what promotion of his funds should be

spend on promotion. But there is a general life-cycle that
most brands in a competitive market follow. And this life-cycle
greatly influences promotion activity, as needs change for
improving the price-value relationship … needs that are
satisfied in many cases most practically by promotion.
III. 11 PRINCIPLES OF EFFECTIVE PROMOTIONS
Basic Principles that Are crucial to Successful Promotion Projects

(Regardless of Promotion Type, Product, Country or Time
It is to be noted that there are general principles that seem to be common to

successful packaged-goods promotions. These principles relate to individual
promotions and describe inherent qualities of the promotion; they do not
cover techniques of planning or administration or execution. (Such points are
covered later in the report.)
It has been observed that an effective promotion adheres, in the greatest

possible degree, to the following 11 basic principles:
1 IT DOES NOT ATTEMPT TO ACCOMPLISH GOALS THAT

ADVERTISING OR SALESMANSHIP CAN ACCOMPLISH
BETTER
The promotion is directed towards specific objectives that

promotion properly can achieve. It is not used to perform
functions that are best performed by advertising or a good
salesman. It is not offered simply because of whim or habit or
desire for a change. It is aimed at specifically-defined goals that
promotion realistically can be expected to achieve better than
any other marketing endeavour.
2 IT EMPLOYS THE SPECIFIC TYPE OF PROMOTION THAT
MOST CLOSELY FITS THE CONDITIONS AND THE GOAL
Every basic type of promotion has certain fundamental strengths

and limitations. Some are better fitted to one task than another;
some cost more than others. Some attract new users at the
expense of immediate sales to present users, or vice versa.
Successful promotions employ the type of promotion that – on
the basis of past record and logical analysis – offers the best
chance of achieving the desired goals under existing conditions.
3 IT IS AIMED PRIMARILY AT THE CONSUMER – BUT AT THE
SAME TIME IT OFFERS POSITIVE INCENTIVES TO THE
TRADE, SALES FORCE OR OTHER INFLUENTIAL GROUPS.
The consumer is the key to packaged goods marketing success.

Strong consumer demand is one of the best incentives that can
be offered to the trade to stock, display or feature a brand.
Promotion to the trade or to the sales force without ensuring that

consumers will take the goods out of the store is likely to be
inefficient and ineffective. This does not mean that trade
promotions should be used properly. The most successful
promotions have consumer appeal built into them.
4 IT IS CONSISTENT WITH PRESENT – OR POTENTIAL –
BEHAVIOR PATTERNS OF THE GROUPS INVOLVED
It does not require them to do something that is completely

foreign to their practice (unless there is strong evidence to
suggest that predisposition to change these practices already
exists). Unless conditions are right and unless the incentive to
action is adequate, consumers will not buy sizes or quantities
they don’t usually use or need … nor will the trade buy
merchandise they can’t sell or deals that require involved
administrative procedures. Successful promotions build on
existing – or latent – behavior patterns.
5 IT USES EMOTIONAL, AS WELL AS RATIONAL, APPEALS TO
SELF-INTEREST
The successful promotion appeals strongly to the self-interest of

the consumer (or the trade, or other target group). It frequently
does this on the emotional, as well as the rational, level.
While the rational appeal of a reduced price can be very

effective, cut prices or conetary rewards are not the only
incentives that move people to buy. Equally effective – or even
more effective – is the addition of extra value to a brand.
Frequently an added-value promotion not only provides longer-
lasting benefits than reducing the price, but also is much more
difficult for competition to duplicate.
The added value may be extrinsic, or tangible (as in the case of

a premium or reusable container) …. Or it may be intrinsic, or
intangible – even emotional. Here, especially, is where ideas
become so important to the success of a promotion. For ideas
evoke actions which can enhance a brand’s prestige and quality,
its reputation for service and surety of results – its image and its
value.
A great opportunity also exists for adding ideas and emotional

qualities even to cut price or other so called rational promotions
– ideas such as creatively tying in with news of a product
improvement or a new package; dramatizing a new advertising
claims; supplying spring house-cleaning hints or Christmas
dinner service suggestions. Ideas such as linking an intriguing
name or a plausible reason with what would otherwise be a
prosaic price-off pack.
Successful promotions employ both emotional and rational

approaches in appealing to the self-interest of the groups the

brand is trying to move to action.
6 IT SETS ITSELF APART FROM OTHER PROMOTIONS BY
UNIQUENESS, VARIETY AND CREATIVE IMAGINATION
Promotions may be successful because no other brands in the

category are using promotions, or because the promoted brand
may be the first or only brand to use a particular type of
promotion or an intriguing variety of promotions. But more likely,
success is due to creative, imaginative thinking in the conception
and execution of the promotion – creativity in the basic idea or
the reason for the promotion, in the name given to it, in the
prizes or premiums offered, in the little, intriguing differences that
excite imagination and arouse enthusiasm at all levels. Creative
thinking is just as important in promotion as it is in advertising,
field selling and product development.
7 IT HAS ATTENTION-VALUE, URGENCY AND ACTION BUILT
INTO IT
An effective promotion is arresting and cannot be ignored. It is

concentrated within a limited time period and is limited in
quantity. It features a sense of urgency, an incentive to action. It
is not something that the consumer or the trade or the sales
force can put off doing until later. Generally, the more immediate
the reward, the greater the effectiveness of the promotion. A
successful promotion is an infrequently-offered incentive of
limited duration and quantity that demands action now.
8 IT HAS SUFFICIENT IMPACT TO ACHIEVE ITS STATED
OBJECTIVE, BUT DOES NOT WASTE MONEY
A promotion that is too weak to accomplish what it sets out to do

is a waste of money. An effective promotion has sufficient impact
at every level to achieve its goals. The incentive is adequate to
trigger the desired action. Deal quantities realistically meet the
trade’s obvious minimum requirements.
But, on the other hand, an effective promotion does not give

away more than is necessary. The amount of money spent on a
promotion, or the size of the incentive that is offered, is not
necessarily a measure of its effectiveness. A 20-cent coupon
usually does not get twice as many new triers as a 10-cent
coupon. Doubling the deal quantity may do nothing more than
reduce brand profits. A good on-pack premium may attract more
potentially loyal consumers than a price-off pack costing 50%
more. Adding a trade display allowance to a strong consumer
promotion may result in only a few more displays than would
have been obtained anyway.
A brand with an established value may need a smaller price-off

concession than a brand of lesser value or poorer image. A good

promotion is strong enough to do the job, but does not waste
money.
9 IT IS CLEAR, SIMPLE AND EASY TO UNDERSTAND AND
EXECUTE
The consumer refuses to be confused. If the promotion is

complicated, she will ignore it. So will the trade. And so will the
sales force. The most successful promotions are simple in
concept, clear in presentation, easy to operate. There is little
opportunity for things to go wrong.
10 IT IS HONEST, BELIEVABLE AND REPRESENTS GOOD
VALUE AND QUALITY
It is straight forward and honest in presenting the terms of the

promotion offer and in describing the incentive. Prizes and
premiums are not misrepresented in terms of value or quality. It
avoids trickery or subterfuge or gimmickry that the consumer or
trade is quick to spot and which diminishes believability and
brand loyalty.
11 IT IS CONSISTENT WITH THE BRAND IMAGE
A good promotion can enhance brand image. But many

promotions actually conflict with the image that the product, its
package, its advertising, its positioning have carefully developed.
By appealing to the wrong type of consumers, some promotions
not only waste money but actually drive the brand’s best
prospects away. Good promotions are consistent with the brand
image.
IV. 7 ESSENTIAL ELEMENTS IN AN ORGANIZED, DISCIPLINED APPROACH TO AN

EFFECTIVE PROMOTIONAL PROGRAM
It has been observed that successful promotions don’t “just happen.” They not only
incorporate the 11 basic principles previously cutlined, but are also the result of
careful planning and organization. Successful promotions require the existence of
certain essential conditions and the application of an organized, disciplined
approach and follow-up to all promotion activities.
The conditions and disciplines that are essential to long-term brand and company
success follow:
1 A SIGNIFICANT VALUE MUST HAVE BEEN ESTABLISED FOR

THE BRAND BEFORE PROMOTION CAN BE EFFECTIVE
A reduced price on an unwanted brand does not make the brand

more wanted. A significant value for the brand must exist in the
minds of consumers (or others) before promotion can be
effective. (In the case of a new product this value sometimes is

created almost simultaneously with the offer of the promotion –
usually through media advertising, the advertising massage
accompanying the sample or coupon, or even through broad
consumer awareness of the product class.)
The establishment of brand value relies on many things, of which

the following two are most important:
Good Product
The product must be good. The better the product is in relation
to competitive brands, the more effective promotion will be in
attracting and holding new triers … and at the same time the
less will be the need for continuing and heavy use of promotion
beyond the introductory period. On the other hand, the more the
brand fails to meet competitive product quality, the greater must
be the reliance placed on promotion to compensate for
Persuasive diminished value. In order for promotion to be truly effective in
Advertising accelerating long-term growth and profits, a good product is
essential.
The advertising must be persuasive. Even a good product will

not be successful unless consumers (and everyone else) believe
that the brand offers the advantages (i.e. value) provided by no
other brand. Implanting this idea in the consumer’s mind is the
function of advertising. If advertising does this job well,
promotion can effectively provide added incentives to accelerate
purchase and trial. If advertising performs this job poorly,
promotion must make much more drastic changes in the brand’s
price-value relationship. Good advertising copy and the effective
use of media, therefore, are prerequisities for effective
promotion.
Some brands seem at first glance to be exceptions to these

conditions. Take, for example the older brand with no product
superiority which has abandoned advertising completely in favor
of promotion … and which is building its share of market in spite
of this. Does not this cast doubt on the validity of these
conclusions? The answer is “No”. For it is clear that the brand’s
past advertising and product quality have effectively created a
scund value concept as the base upon which promotion builds
… at least until such time as the brand’s value begins to
decrease in the minds of a shrinking group of consumers.
Promotion cannot be effective unless a significant value has
been established for the brand.
2 PROMOTION MUST BE PART OF AN OVER-ALL PLAN
Since promotion has already been found to be an important

element of marketing that supplements advertising and filed
selling and is interrelated with every from of marketing activity on
a brand, it seems clear that consideration of promotion must be
included in every overall marketing plan. It cannot be treated as

an afterthought, nor can it be ignored. It must be included in
every brand’s and every company’s marketing planning, rimarily
in the following two ways:
Marketing
Strategy All promotion planning must stem from and be part of the brand’s
marketing strategy. The marketing strategy (which must be a
written, working document) defines the brand’s long-range
marketing objectives, the brand concept and reason for being,
and the basic strategy by which it hopes to achieve these
objectives throughout the years. It is based upon an intensive,
organized study of the consumer, the market, the product and
the competition.
The marketing strategy also defines in general terms the role of

each marketing element (i.e. advertising, promotion, sales effort,
etc.) in achieving the brand’s marketing objectives and provides
broad guidelines as to the relative proportion of marketing funds
that will be put against each element – particularly the
relationship of promotion to advertising effect – under defined
conditions or during various stages of marketing development. It
Annual is the basic long-range planning document for the brand and
Marketing (while it must be kept up to date) the basic strategy should be
Plan changed infrequently.
Promotion activities must be planned and budgeted on an

annual basis. They must be part of the brand’s annual marketing
plan. The annual plan is (1) a statement of brand objectives,
strategies and tactical plans for all marketing activities during the
coming year, and (2) a financial forecast that translates these
plans into sales, expenses and profits. Failure to include realistic
plans and expenditures for promotions means that when a
decision is suddenly made to use promotion, advertising or other
marketing activities must be cut to provide promotional funds.
This in turn makes it impossible 91) to forecast profits accurately,
and (2) to coordinate promotion with other marketing activities.
An annual brand marketing plan, therefore, must include

objectives, strategy and plans for promotion as well as for
advertising, field sales effort, product development, etc. the
annual plan must also (1) be consistant with the brand’s long-
range marketing strategy, and (2) provide a reasonable degree
of flexibility when periodic reviews show that importantly-
changed conditions dictate changes in plans. Promotion, like
advertising and field selling efforts, must be planned on an
annual basis and coordinated with other marketing activities on
the brand.
3 EVERY BRAND MUST HAVE A WRITTEN STATEMENT OF
PROMOTION OBJECTIVES AND STRATEGY
The promotion strategy statement is one of the major elements

of the brand’s annual marketing plan. It fundamental purpose is
to establish guidelines and principles that are most likely to
ensure promotion success for the brand. It does this by
translating the eleven principles of effectives promotions ……….
Into basic policy decisions applying more specifically to the
brand involved. The promotion strategy statement should cover
five major points (each to the extent applicable)
Objectives
Annual Broad objectives – What the brand’s promotion program is
Program espected to accomplish. (See Promotion Principle No.1)
Kinds of promotion that will be used (or not used) – The relative
reliance that will be placed on cutting price vs. adding value to
the brand in order to achieve these objectives; the approsimate
proportion of annual promotion effort that will be directed against
the consumer vs. the trade or other groups. The specific types of
promotion, therefore, that will generally be used (or not used) by
Program the brand. (See Promotion Principles Nos. 2, 3, 5, and 11).
Principles
Policies relating to the annual program – The frequency, duration
and number of promotions to be offered; the times of year or
types of areas in which promotions will be concentrated or in
which no promotions will be run; the relative emphasis (in broad
terms), if any, that will be placed on promoting specific package
sizeds; provision of funds, and broad policies to be followed, to
Guidelines meet specified types of competitive conditions that may arise.
For Promotion (See Promotion Principles Nos. 2, 4, 7 and 8)
Development
Guidelines relating to individual promotions – Limitations, ranges
or standards to assist in establishing pack quantities, price
discounts, types and values of premiums, coupon values, etc.;
the degree and nature of advertising coordination or support, if
any, that is deemed essential for certain type of promotions or
Supporting conditions; the nature of tie-in promotions that will be used and
Reasons the standards established for the selection of products and
brands as tie-in partners; etc. (See Promotion Principles Nos. 4
through 11)
Reasons – Why these strategic decisions a and guidelines are

believed to be the ost effective and efficient way to achieve the
brand’s promotion – and overall marketing – objectives, based
on analysis of results of prior efforts and appraisal of current
conditions.
The promotion strategy a statement tell what the brand will do in

promotion, but not how to do it. It is a long-term statement of
principle and policy that provides guidance to all concerned. It is
changed only when the product manager and his management
agree that new conditions or new knowledge dictate a change in
basic strategy. Once the strategy has been agreed upon, all
promotional activities on the brand must conform to it.
4 A WRITTEN TACTICAL PLAN MUST BE PREPARED FOR
EACH INDIVIDUAL PROMOTION COMPRISING THE YEAR’S
PROMOTIONAL PROGRAM – AND MUST DEFINE THE
SPECIFIC NUMERICAL OBJECTIVES OF THAT PROMOTION
The promotion strategy statement, as just described, establishes

general promotion objectives for the brand’s promotion program
and tells what the brand will do (in terms or principle and policy)
to achieve these objectives. A tactical promotion plan, on the
other hand, tells how the brand will execute an individual
promotion that is part of the progress, translating the strategy
into specific terms for that promotion, and establishing numerical
goals against which each promotion’s accomplishment can be
Details of Plan measured.
and Time
Table The tactical promotion plan also gives full details of the plan, the
quantities, the cost, the timing, the specific areas covered, the
responsibilities of sales, Manufacturing and other groups
involved. It must include a time table showing the time required
for each preparatory step and establishing realistic target dates.
Where possible, the tactical promotion plan should also past
experience, research or other facts to support the
Plans To
reasonableness of the stated objectives, anticipated consumer
Evaluate
and trade reaction, and costs.
Results
Finally, the tactical promotion plan should describe the basis for
evaluating the promotion afterit has run, and should indicate
what special measurements must be set up in advance for this
purpose.
The tactical promotion plan, in summery, serves (1) as a tool to

sharpen planning, (2) as a device to communicate plans,
Outline And coordinate operations and control the execution and cost of the
Summary promotion, and (3) as the basis for measuring how successful
Included in and efficient the promotion, as run, actually was in relation to
Annual Plan anticipated goals and costs. A separate tactical plan is prepared
for each promotion in the brand’s program.
A consolidated outline and summery of the individual promotions

planned for the year’s promotion program is included in the
brand’s annual marketing plan to show how the strategy will be
carried out and to provide a finance breakdown and summery of
the total annual promotion budget. This consolidated summary
include information on the timing, nature, scope and cost of each
promotion planned for the year (or it set up reserves and
indicates preliminary plans for these promotions for which final
plans have not been established.) the detailed tactical plan
sheets for each promotion, however, usually are not included in
the annual plan, since the consolidated outline and summary

provides the essential information for management purposes.
A written tactical plan for each promotion is an essential element

in the effective use of promotions.
5 EFFECTIVE COMMUNICATION, COORDINATION AND
CONTROL MUST BE ESTABLISHED TO ENSURE THE
SUCCESSFUL EXCUTION OF PROMOTION PLANS
In almost no other marketing activity do so many different groups

of people become involved as in promotion. It requires the
assistance of manufacturing, warehousing, transportation, sales,
accounting, purchasing and legal groups – in addition to
promotion specialization, sales, accounting, purchasing and
legal groups – in addition to promotion specialists, creative
people, advertising agencies and brand marketing management.
Careful and articulate communication of objectives and plans is
essential. So is the effective scheduling and coordination of their
activities. And so is the establishment of controls to ensure that
the promotion works in practices as it was planned in theory. A
good plan can be vitiated, for example, by salesmen who don’t
understand its purpose, or who authorize payment of trade
allowances for services not actually performed as specified; or
by failure of the plant to ship deal packs on specified dates.
Delays and mistakes cost money – such of it hidden – that may
seriously reduce brand and company profits.
Every promotion must, of course inform to legal and ethical

standards. But the interpretation of law often is unclear … some
times even personal and capricious.
Lack of understanding and enthusiasm by legal advisors can

result in routine legal opinions that deny to a brand a form of
promotion that a more aggressive competitor may kind a way to
carry out, within legal restrictions, with only minor change. A
lawyer who is clearly told the purpose and the concept of a
promotion can frequently make constructive legal, conceptual
and operational suggestions of great value.
The successful execution of sound promotion plans requires

persistent attention to detail effective communication, contagious
enthusiasm, disciplined coordination and tight control.
8 FACTUAL KNOWLEDGE ABOUT PROMOTION MUST BE
DEVELOPED AND ASSEMBLED THOUGH A PROGRAM OF
PROMOTION TESTING, ANALYSIS, EVALUATION,
RESEARCH AND MEASUREMENT
It costs as much to run a bad promotion as a good one, perhaps

even more. The best way to eliminate bad promotion is to build
each promotion plan on a solid foundation of knowledge.
Unfortunately, too little is known about promotion and the way it

works. There are few experts or authorities with a broad
knowledge of promotion principles and with objective experience
in the things that mean better results for less money. And the
information that is known is usually not made available to others
Pre-Testing facing the same problem … or else it is ignored.
Pre-Testing – Every important unknown element of a given

promotion should be pre-tested if the risk of failure is greater
than the risk of delay or breach of security. In addition, a general
program of testing alternative promotions, or lower-cost
variations, or premium items or contest prizes must be
Analyzing established to build a backlog of proven devices that can be
utilized when conditions do not permit full-scale pre-testing.
Analysis of past records – Frequently a study of past records on

the same or other brands suggests how promotions can be
improved or prevents a brand from repeating a bad mistake. But
analysis is impossible unless records are kept and unless they
are interpreted and conclusions are drawn by a qualified person.
Evaluating
Faulty memory, superficial study and minister pretation are
dangers that must be eliminated.
Evaluation of results – Every promotion should be evaluated

after it has been used to determine whether it did, in fact,
achieve its objectives within the budgeted cost. If it did, how
could it have been improved? If it did not, conclusions should be
drawn – with complete objectivity – as to why it failed to perform
as planned. The evaluation should be in writing and should be
made available to others within the company as a means of
increasing their knowledge.
Such a program of evaluation depends on two essentials:
The objectives of the promotion must be clearly defined and

stated in measurable terms (i.e. “to obtain offshelf displays of at
least five cases each in 15% of the Class A stores”, or “to build
retail inventories from a 3-week supply to a 5-week supply,” or
“to raise the usage level from 7% to 10%).
Agreement must be reached in advance regarding what will be

Developing measured and arrangements must be made before the
fundamental promotion runs to obtain the necessary measurement and
Knowledge To information needed for the evaluation. After the promotion has
Replace ended it is too late to set up research or to ask for special reports
Unproved or to make personal observations.
Assumptions
Developing insights about how promotion works through co-
ordinated methods and special research – Every promotion plan
is based on a combination of fact and unproved assumption.

Some of these assumptions are of basic importance. If they are
incorrect the plan will fail. Hence it is vital to confirm or disprove
such assumptions as the following:
… “New triers obtained by a price-off valuable to a brand as

those obtained by a coupon (or by a sample).”
… “New triers usually buy the small size and “trade up” to larger
sizes if they are satisfied.”
… “Misredemption of a magazine coupon follows the same

pattern as for a mail coupon”.
… “The real value of a sendaway offer lies in the number who

buy the product but forget to send in the box top.”
In order to prove or disprove such broad assumptions as these –

assumptions which are important to every brand and company –
three steps are necessary:
All promotion tests and evaluations – on all brands must be

designed not only to answer the questions of immediate interest
ot the specific brand but also to permit deeper analysis and
insights into the fundamental behavior of people and the basic
ways in which promotion works standard methods of testing and
evaluating brand promotions may be needed to permit brand-to-
brand comparisons.
Special research may have to be undertaken – probably

underwritten by several brands or an entire company – to
determine the validity of some of the most important basic
assumptions about promotion. It is likely that such validation will
not come from normal brand testing and research, but will have
to be obtained through planned corporate projects of major
importance.
Research techniques must be improved and developed which

will provide the basic knowledge that each brand needs to define
the right marketing and promotion objectives, rather than
objectives that are assumed to be right. Establishing the right
Assembling
objective for a brand requires that basic knowledge abuut
And
consumer needs, usage habits and attitudes and about
Circulating All consumer profiles and brand images be available.
Promotion
Knowledge In summary, something more than ad-ccc testing and evaluation
of specific promotions is required. A special effort must be made
to develop deeper knowledge of the fundamentals of promotion
and marketing – knowledge that can be applied to all brands in
all countries, knowledge that can replace the many unproved
assumptions on which most objectives and most promotion
plans are now based.
Assembling, analyzing and interesting this knowledge – What

one brand learns can be of great value to another brand. A piece
of information about one type of promotion may provide insights
on how another type works. Basic research, while it may have
little application to a given brand’s immediate problems, has vital
implications for every brand’s long-range marketing program.
A way must be provided to assemble all available promotion

information and knowledge, t analyze and interpret it, and to
develop fundamental insights and uncover basic principles. Then
a way must be provided to make this knowledge available to
every product manager, to every promotion specialist, to every
echelon of management so that it can be applied to current
marketing operations.
The mounting cost of promotion and the high risk of failure

demand that knowledge be developed as rapidly as possible. It
also demands that this knowledge be assembled and made
available in valid and actionable from to all involved in
promotion.
7 SPECIALISED, PROFESSIONAL SKILL AND KNOWLEDGE

MUST BE BROUGHT TO EVERY PROMOTION OPERATION
The planning, execution and evaluation of promotion is a highly

skilled task that require specialized knowledge and professional
ability. It is not something to be turned over to the newest
Product trainee.
Manager
Primary Many groups are involved in promotion planning and operation,
Responsibility including both sales and advertising departments. It seems clear,
however, that primary responsibility for all promotion activity on a
brand must lie with the individual responsible for formulating the
brand marketing mix and for profit contributions. In most
Professional companies this is the product manager.
Assistance
Required But it is also clear that the product managere requires the same
sort of professional help in promotion that the advertising agency
(and company staff experts) provide in advertising Just as no
product manager is expected to be an expert in copy, media,
advertising production and advertising research (although he
may well be very capable in some), so no product manager
should be expected to be an expert in promotion theory,
promotion research and analysis, promotion development,
promotion execution and promotion evaluation. The job is too
Advertising complex, too specialized – it requires too much knowledge
Agency beyond the product manager’s have the time or the opportunity
Limitations or the inclination to develop.
Advertising agencies have at times been suggested as a

possible source of this professional assistance in promotion.
Undoubtedly they can be of great help in the development of
promotion ideas. But their help in preparing and executing
A Staff
Promotion detailed plans is likely to be limited. It is doubtful, therefore, that
Group Is any agency can contribute in the promotional field in the same
essential way that it contributes in advertising.
This means that there is a real need for a central staff promotion
group within every company where promotion is employed. The
form of organisation will very with each situation. A large
company may need a complete department staffed with broadly-
experienced managers and with specialists in such activities as
couponing, contests, premiums, trade promotions, promotion
research, evaluation, etc. in a small company the promotion
specialist may well be one person who may also have other
responsibilities.
The point is that there must be a central, iniesnient staff group –

responsible to top management – to supply specialized
knowledge and reccive annual and ato ….. company-wide and
basic projects. This staff promotion group can also pending
specialized services such as preparing display material; or
setting up managements with mailing beauses; or developing,
testing and buying premiums; or assisting in pre-tests and
evaluations. There must be someone within the company to
whom both the product manager and management can turn for
professional assistance in promotion as they turn to the
advertising agency for help in advertising.
Successful promotion under today’s conditions requires that

specialized, professional skill and knowledge be brought to bear
on every phase of promotion planning, execution and evaluation.
APPENDIX
CHECK LIST OF BASIC PROMOTION TYPES
In convenitnece, the most important types of promotions have been typed under
broad headings, even though it may be misleading in the cased to do so. For
example, a trade allowance that is passed …100% to consumers in the form of a
special reduced price might be classified as a consumer promotion. Likewise, a
coupon distributed only to present users of a brand might not be used as sampling
device”.
Inspite of these drawbacks, the following check list of basic promotion types if
furnished with the hope that it will illustrate the promotion is:
CONSUMER PROMOTIONS IN WHICH THE MAJOR EFFORT IS AIMED

PROMOTION INITIALLY AT CONSUMER
A Sampling 1. Sampling (distribution of free special or regular size package

Devices to consumers)
House to house
By mail
In or on packages of same brand or other brands
F…. inserts
Other
2.Couponing (distribution of certificates with a stated monetary

or merchandize value which the consumer redeems through a
retailer towards the purchase of the specified item
House to house
By mail
In or on packages (same brand or different brand)
In media advertisements
Other
3. Demonstrations ( An illustration or demonstration of how a

product is prepared and/or used, frequently involving consumer
tasting of food products and usually involving the presence of a
home economist or other trained representative.
B. Pack In Store
Promotions Fairs, exhibits, etc.
1. Reduced-revenue packs (usually at factory, but also may be

banded in stores)
Price off
½ price sale
“Two for…..” sale
Bonus packs (larger quantity at same price)
2. Premium packs
In or on-pack premium free or self-liquidating, or partially

C. Other liquidating ( Premium may be a sample of another brand)
Consumer May also include separate premiums distributed in stores, but
Promotions: not actually attached to package).
1. Refund offers
(Cash, check or coupon given consumer for proof of purchase…

usually by mail)
2. contests or competitions (puzzles, games, estimates, or

competitions involving skill for prizes or rewards of various
types)
3. Sweepstakes-type drawings (No skill or proof of purchase

required)
4. Sendaway (or mail-in) premiums Free or liquidating (usually

with proof of purchase) Label saving plans
5. Display promotions, Receipe or service or “idea” display

promotions (alone or tied in with other items)
TRADE
PROMOTIONS 6. Other miscellaneous consumer promotions, such as trading
stamps, out-of-pack premiums, etc.
A. Trade
Allowances PROMOTIONS IN WHICH THE MAJOR EFFORT IS AIMED
INITIALLY AT THE TRADE (DISTRIBUTORS,
WHOLESAILERS, RETAILERS OR THEIR SALESMEN)
Allowances
Payments to the trade usually for a specific purpose and for a
specified time. Payment may be in the form of cash or credit.
There are several types, including:
Count and recount allowance
Customer stocks counted at beginning and end of period (plus

purchases) to give net movement out of stock; allowance paid
on net movement.
Advertising and/or display or merchandising

Allowance
Allowance paid for performance of specified activity, such as
featuring in dealer’s advertising, display, reduced price, or offer
of extra trading stamps, etc.
Introductory allowance
B. Trade
Reduced Payment during introductory period to obtain distribution
Revenue
Promotion Buying allowance
Payment made without stipulation as to service required in

return.
Reduced Revenue offers
A reduction in the regular price to the trade without requiring that

such reductions be passed along to the consumer or that my
specified action be performed. The distinction between this
C. Other Trade promotion and a buying allowance is small. Generally, however,

Promotions. the reduced revenue promotion takes the following forms.
One package free with purchase of 11 (assuming cases are

packed 12’ s)
Baker’s dozen deal (13 for the price of 12) One case of one size
free with purchase of specified number cases of another size.
1. Trade Premiums (A gift to the organization or to individuals,

frequently upon the purchse of specified quantities or selections.
May include permanent display racks, or dual-use display
pieces, such as a plastic boat).
2. Redemption of retailer certificates packed in each case of
merchandise.
3. Trade contests, competitions or Prizes
4. Trade Sampling
Distribution of free product samples to dealers and distributors

SALES FORCE (usually for personal use).
INCENTIVE
PROMOTIONS 5. Other miscellaneous trade incentives
Salesmen’s (Pushmoney for retailer’s salesmen; billing; etc.) Some forms –

Inventives such as delayed billing dates or opportunities to buy in advance
of an announced price increase – are frequently classified as
other than promotions, but actually might be considered as
promotional devices.
PROMOTIONS IN … THE MAJOR EFFORT IS AIMED

INITALLY AT THE SALES FORCE
1. Sales contests
INCENTIVES Prizes for best or target performances by salesmen
FOR OTHER
SPECIALIZED 2. Salesmen’s premiums
GROUPS
A. Professional Merchandize awards for achievement of established sales or
Promotions pint-value goals, frequently from premium catalogues.
3. Salesmen’s cash bonus plans

These are usually classified as selling expense or
compensation, but ma be considered a special form or
promotion.
PROMOTIONS IN WHICH THE MAJOR EFFORTS IS AIMED

INITALLY AT GETTING THE COOPERATION OF OTHER
SPECIALIZED GROUPS
B. Appliance Offering of samples, premiums, service material, special
Manuracturer literature, and other incentives to professional people in order to
Promotions inform that of product advantages in their fields and so
encourage them to use and/or recommend the brand in their
contacts with consumers and/or other influential groups. Such
professional include:
Doctors
Dentists
Nurses
Teachers
Home Economists
Hair Dressers
Etc.
Incentive programs designed to encourage equipment and

appliance manufacturers or dealers to recommend the brand in
their instruction books and service literature and/or enclose
samples, coupons or brand service materials with their
equipment and appliances. (Examples: washing machine
manufacturers, dishwasher manufacturers, electric mixer or
frying pan manufacturers, retail appliances stores, etc.)
Promotions may include:
Sampling
Couponing
Free service material
Display material
Merchandising allowances
Advertising cooperation and support
Technical assistance
9/20/22, 10:21 AM Getting the best out of your agency
GETTING THE BEST OUT OF YOUR AD AGENCY
Some advertisers know how to handle their ad agencies well.

They are usually the ones who get the best advertising. We often
see the same agencies producing indifferent work for others.
You will learn to treat your advertising agency better if you realize
that they perform a specialist function at an economic rate. Try to
set up agency services in-house and you will know how costly it
can be. But economy is not the only advantage the agency
system offers.
Advertising agencies nurture experts in a variety of disciplines -
media planning. research, copy, art, film, TV, radio program, AV
and so on. As the years pass they acquire breadth of experience
over a wide spectrum of products and services. Which can be
harnessed, to your advantage.
A problem you encounter may be new to you, but the men in your
agency may have encountered similar problems while helping to
sell other products. Agency people are better informed about
media as they are in constant touch with them.
You are too close to the product or service you are offering and
hence may miss the flaws altogether agency mea can take a
more objective view. A little objectivity as the initial stage may
ensure timely advice and save you from costly blunders. (I know
from experience this some people do not even bother to register
their trade mark-with disastrous consequences later on).
Partnership
The agency-client relationship has been described as a close
working partnership and an attitude of give-and-take is always
helpful. To keep this relationship at its fruitful best here are a few
guidelines.
Treat agency personnel with courtesy, always. In India many
people have a condescending attitude to “suppliers” of goods and
services. Suppliers depend on your orders, and so you perceive

them as inferior or subordinate This is altogether wrong. An
agency is not subordinate of your company, nor is an agency
executive a subordinate of your marketing people. He has an
independent status. To bruise his ego is not the right way to get
things done.
Infect your agency with enthusiasm for your product or service.
Demonstrate the superiority of your product or service to the
agency people as you would to a prospective buyer. Share with
them information on the advantages that you have over
competitive products. This of course, includes market research
findings. Mark a copy to the agency of every appreciative letter
you receive from customers. Keep the agency informed about any
special recognition-awards won in India and abroad and so on.
Involve the agency fully. I know one advertiser who sends
territory-wise sales figures to his agency every month. Another
used to give free access to territory managers monthly reports.
Most sophisticated advertisers involve the agency from the very
concept stage of a new product. The brand name and the surface
design of the pack is the case of consumer products can have a
bean.. on advertising effectiveness later on. Sometimes your
agency will be able to suggest a product with a meaningful
difference to the consumer – and this difference may make it
easier to sell the product later.
Give a thorough brief before making for advertising proposals.
Some advertisers give a written brief. Some brief their agencies in
person, others expect their agencies to hang around and ferret
out a brief for themselves. A written brief is the best; ideally it
must contain a thorough review of the current year and marketing
plans for the coming twelve months. (Some work on three-year or
five year briefs, updated ever year). Agencies look for sales
figures segment-wise. They also need information about
competitors on relation to product quality, price, packaging,
promotion and advertising. How do you intend to counter
competition in the coming year? What is the weight you will
assign to the various elements in the marketing mix? Any

improvements in your product, pricing, packaging or distribution ?
How do you perceive the climate for selling?
A brief is usually more valuable if it is backed b research. Many
advertisers seem to grudge small amounts of money on research
while they will cheerfully part with large sums for media
expenditure. Research can help to provide guidelines for your
advertising. Seek your agency’s advice on this if you don’t have
research personnel in-house.
Define your marketing objective clearly, and work out the
advertising objective. It’s better to give a clear indication about the
budget you can afford. Some people ask the agency for a budget
with detailed workings, and then disclose that they can afford only
a small fraction of the amount. This can be quite demoralizing
because dc… media planning is a back-breaking causes. Be
candid about what you can spend, and re-examining the position
if the agency feels the amount can buy very little. In case of doubt
about how to arrive at a budget, ask your agency for methodology
that will help you.
Encourage your agency to clear with you, in advice, the main
points to be carried in the advertising. These days what you say
in your ad is much more important than how you say it. If there is
agreement on the content of your advertising, much heartaches
can be avoided later on when detailed proposals are presented.
Agencies generally try to arrive at what is generally called a “copy
platform”. The definition may change from agency to agency, it’s
usually a written plan that contains the most crucial information
about the product or service and explains the manner on which
an advertisement is to be put together. The advertising objective,
the selling theme and the visual and verbal approaches are the
main components.
Subroto Sen Gupta, well known advertising practitioner and
teacher, once wrote, “I am a believer in a written document on
creative strategy, agreed between client and agency as the
starting point in creative work.” He was of the view that the

document should define the target consumer.
Streamline your approval procedures. Who in your company
approves the advertising proposals prepared by the agency?
Ideally he should be the one to whom the agency must present
the advertising plans. Make sure that the brief and the strategy
document had his prior approval. Care should be taken to see
that approval (or rectification) is not based on whims and fancies.
In one company I know there was a convention that the right to
reject anything also carried with it the responsibility to explain
why. And whoever wanted a finger in the approval pre had to
make their comments as the agency presentation. Hierarchical
and committee models for approval were generally discouraged.
Creativity
You can drive agency men crazy with inane components “It
doesn’t appeal to me”. “Lacks punch”. “Not creative enough” are
some of these. Ads are meant to appeal not to you, but to the
target consumer. Subhas Ghosal, veteran ad man, once
discussed creativity there.
Any judge of advertising whether he is creator or buyer must
never forget must never allow the fact to be obscured, that it is
not creativity per se that he is passing judgment on. He is
assessing the level of persuasion attended – words like creative
and creativity confuse the issue – We are users of advertising not
purveyors of aesthetics. Mind you, persuasion and aesthetics are
not mutually exclusive, sometimes they may even coincide and
on the rare occasion the purely aesthetic may be wholly
persuasive. But as the true yardstick, persuasion is number one.
Treat the advertising professional with respect. Mere courtesy is
different from respect. An experienced professional often has
insights denied to others. Some advertisers follow the practice of
not interfering at all with the proposals submitted by the agencies
they have faith in. Their argument is that advertising must be at
the level of experience of senior agency people rather than at the
level of experience of the product manger or the marketing

manager whose specialization is generally in other fields. Much
depends, of course, on the calibre of the people in your agency.
Payments
Pay agency bills in time. Agencies face the penalty of
disaccreditation if they don’t pay media bills within the stipulated
credit period. As they have not tangible assets, it is difficult for
them to secure substantial bank credits. Some advertisers are in
the habit of solving their cash flow problems by withholding
payments to suppliers. Suppliers provide for the contingency by
padding their quotations. Agencies have so quotations of their
own, as the rates quoted are those of media, and their
commission is a fixed percentage. Agency personnel should not
be running around for money if you want their time to be devoted
to your advertising.
Don’t ask for concessional rates of artwork and other forms of
rebate of commission in kind. Kickbacks, whether in cash or kind
are forbidden. The idea is that agencies should invest the entire
15 per cent commission in improving advertising skills and
infrastructural facilities. Those who violate the rule are
misappropriating money from this “development fund”: advertisers
are the ultimate sufferers.
Curb your demands. Resist the temptation to use as ad agency
as a studio for designing your personal Diwali cards. Every job
cannot be an urgent job, refrain from pushing the agency from
one deadline crisis to another. Good work demands adequate
planning and time.
Disputes
Reduce disports to a minimum. One advertiser cleared a
consignment of posters a month after it reached its destination.
Moisture had seeped in. and the posters were unable. The
advertiser refused to pay. Reasonable? A newspaper with space
problems could not carry an ad on a scheduled date will you

blame the agency? Be human. Ask your self whether a
department of your own company could have fared better in each
circumstance. Don’t treat the agency as a scapegoat for
everything that goes wrong.
You can see the agency point of view reflected in what I’ve
written. Some day I must write on “How best as ad agency can
serve an advertiser.” Any suggestions?
Tailpiece
Which agency has more billings? Lintas or Thompson? Enterprise
has released an ad which says: “There is considerable debate
these days about which is the largest advertising agency in the
country. There is, however, little argument about which is the
best”. Enterprise seemed to me to be enterprising!
9/20/22, 10:23 AM How much to spend on Advertising
HOW MUCH TO SPEND ON ADVERTISING

By Joel Dean
The determination of advertising expenditures can be accomplished, at least

theoretically, through the use of marginal analysis. The difficulty is, of course, that
advertising costs have no necessary relationship to output.
The author of this article concludes that most methods which are used to determine the
size of the advertising budget have no economic basis and the despite its limitations
economic analysis can be helpful in reaching better decisions about advertising
expenditures.
Every important enterprise in the country wrestles unhappily with the problem of how
much to spend on advertising. Despite the vast amount of money involved in this
decision, most executives have to play by ear. Few firms have a valid theoretical or
research basis for deciding whether the advertising appropriation should be $100,000 or
$200,000 a year. The purpose of this article is to appraise the principal methods that are
now used for making this decision.
As a background for this appraisal we shall examine briefly the contribution of economic
theory, specifically in the form of marginal analysis.
AUTHOR’S NOTE : A number of people were kind enough to read this manuscript and
suggest improvements: Stephen Taylor and Philip Brooks of Joel Dean Associates;
Professors James Bonbright, Carl Shoup, and Howard Nixon of Columbia University;
Ralph Cordiner and Robert Peare of the General Electric Company; and A.L.Nickerson
of the Socony-Vacuum Oil Company.
For a fuller discussion of these and related thoughts see my forthcoming book,
Managerial Economics, to be published by Prentice-Hall, Inc., in February,
SOURCE: From Harvard Business Review, vol.29, January-February, 1951, pp.65-74.

Joel Dean: Professor of Business Economics, Columbia University.
Unavoidably, therefore, much of he discussion is in the no man’s land between the

abstract analysis of the economic theorist and the largely intuitive performance of the
practitioner. The fact is that there is no sure or easy way to determine how much to
spend on advertising, and the various methods widely used for that purpose have
serious weaknesses, which show up against a background of economic analysis.
CONTRIBUTION OF ECONOMIC THEORY
Economic analysis of the role of advertising (and other pure selling costs) in the
competitive adjustment of the enterprise has developed concepts that can be made
useful in planning and controlling advertising outlays.
Economical analysis is a basic economic approach to all business problems, including

the determination of the total advertising outlay, and it is, at least logically, superior to
other methods. It says that advertising expenditure for each product should be pushed
to the point where the additional outlay equals the profit from the added sales caused
by the outlay. The resulting total is the advertising budget that will maximize advertising
profits in the short run.
To implement this approach, a comparison is needed of what would happen with and
without the advertising outlay in question. This knowledge of the marginal effect of
advertising is extremely difficult to obtain. If the effect can be estimated with tolerable
reliability, however, the marginal approach provides a rational solution, not only for the
total budget but also for its allocation among years in the business cycle and among
products, areas, and media.
Nature of Advertising Costs. The distinctive nature of advertising costs makes the
analytical problem of determining the most profitable advertising outlay much more
complex than an analysis using only production costs. Production costs (and physical
distribution costs that behave like them) are functionally related to output (or sales) and
can therefore be budgeted and controlled by such relationships. Advertising costs, in
contrast, have no necessary functional relationship to output; they are a cause, not a
result of sales.
Advertising, like pricing and product innovation, is a device for manipulating the firm’s
sales volume. Price affects the volume obtainable under specified demand conditions,
while advertising and product improvement alter these conditions by changing the
public attitude toward the product and thus shift the whole relation of sales to price.
Hence profitability depends on the most advantageous combination of price, product
improvement, advertising outlay, and other selling activities. Since the practical problem
is often to get the right combination of advertising and other marketing activities, the
problem of the advertising budget is not alone, “How much should the total selling effort
be?” as economists have usually conceived it. It is also, “What part of the selling job
should be done by impersonal, mass selling, as opposed to personal selling?”
These various influences are, of course, interactive. The price changed, for example,
may affect eh responsiveness of volume to additional advertising expenditures;
changes in the product are almost certain to do so; and the price that will make the
most money may be different when advertising is stepped up or when the product is
improved.
For economic analysis, this is a problem of solving several simultaneous equations, an

intellectually intriguing pastime that rarely makes sense or profits for businessmen. But
the problem can easily be cut down to manageable proportions by restricting analysis to
the short run, say one year, and by making some assumptions about prices and costs.
We shall proceed to develop this kind of analysis.
Simplified Marginal Approach. The marginal approach to advertising outlays is

illustrated in its simplest form in Exhibit 1. Advertising cost is
Exhibit 1 Example of Incremental Advertising Cost Curve
Sales volume
Assumed to include only pure selling costs, physical distribution costs being included in
production costs. Incremental production costs (i.e., the added costs of producing an
additional unit of the product) are assumed to remain the same, 20 cents a unit, over
the practical range of sales. The price of the product is also assumed to remain
constant over this range. (Hence the average revenue and marginal revenue of
economic theory are equal and constant.) Under these circumstances the incremental
profit from an added sale is 50 cents a unit. Incremental advertising cost (i.e., the
additional advertising outlay that will be required to sell an additional unit of output) is
drawn as a curve, which first declines, then is constant, and then rises at an
accelerating rate.
The rising phase of the advertising cost curve represents the important part of our
problem since, if advertising is to be done at all, it should be expanded until diminishing
returns set in.
The upward trend in the curve reflects primarily the tapping of successively poorer
prospects as the advertising effort is intensified. Presumably the most susceptible
prospects are picked off first, and progressively stiffer resistance is encountered from
layers of prospects who are more skeptical, more stodgy about their present spending
patterns, or more attached to rival sellers. The rise may also be caused by progressive
exhaustion of the most vulnerable geographic areas or the most efficient advertising
media. Promotional channels that are ideally adopted to scale market of the firm are
used first. (Actually, for firms with expansible markets, the advertising cost curve may
have several minimum points corresponding to most efficient use of different media
appropriate for different-size markets, e.g., newspapers, billboards, magazines, radio)
From the diagram it is clear that advertising should be pushed to the point where the
advertising cost curve interacts the price line. Sales should not be expanded to a level
where it costs more than 50 cents in advertising to get another sale, since that sale
would bring only 50 cents of profit over incremental production costs. In general,
advertising outlays should be increased in every market and medium up to the point
where the additional cost of getting more business just equal the incremental profits
from that business.
Considering the totals that appear in an income statement, rather than thinking in terms
of increments, may clarify the results of our interpretation. The total production cost of a
given output in represented on the diagram by the area under the incremental
production cost curve up to that output. Similarly, the total sales revenue, is shown by
the area under the price line, and the total advertising cost by the area under the curve
of advertising cost. The area between the price line and the advertising cost curve is the
total net profit left after advertising expenses and is clearly largest when output is at the
point where marginal advertising cost is 50 cents a unit.
The assumptions underlying this simplified exposition are fairly realistic. A passive price
policy is common enough, at least for short-run adjustments like these under study
here. Hence a constant price (i.e., a price that is not changed as a result of charges in
advertising outlays) is a moderately good approximation to reality. As to the cost
assumption, empirical findings for industries whose production is mechanized indicate
that incremental production costs are usually constant over the range of output that is
significant for determining advertising policy in the short run. Finally, there is much
theory and some empirical evidence to support the shape of the advertising cost
function drawn here. Abstracting from fluctuations in business conditions and consumer
incomes in a necessary simplification which sharpens the incremental character of the
measurement problem, viz., to find the added sales with advertising, as against sales
without it.
Limitations. The main hitch in the marginal approach is the difficulty of estimating
incremental advertising cost. The relationship of advertising to sales is more intricate
than short-run marginal analysis indicates; for example, the important and difficult
problem of rivals’ reactions is left out. Under most circumstances the difficulties of
predicting response large, gauging the quality of advertising, and allowing for the
reservoir effect of past advertising frustrate efforts to isolate the impact upon sales of
additional advertising outlays.
Even when the advertising cost curve can be estimated with some reliability, the validity
of the cut-off criterion proposed by marginal analysis comes into question, because
much advertising is an investment rather than an expense. The objectives of advertising
are often dominantly long range, such as eternal life for the firm and a place in the sun.
For example, advertising may be designed to step up volumes to the point where
savings of large-scale production and research are more than a match for any new
entrants, or advertising may be focused on achieving product acceptance that will
permit some price premium over less familiar brands. Long-range goals such as these
are difficult to tie down to a concept of incremental profits that provides a definitive cut-
off for advertising.
Despite these limitations inherent in static economic analysis, the marginal approach to
determination of outlay make a conceptual contribution of practical importance. Except
for long-run investment advertising, it provides in concept a simple and definitive test of
how much to spend and when to stop. As such it is useful as a guide in thinking about
advertising appropriations and in determining what to shoot for in estimates – in short,
in guiding empirical measurement. The fact that it manipulates esoteric functional
relationships and assumes that the businessman has knowledge when he does not
have it may restrict its immediate usefulness. But these very restrictions may broaden
its future usefulness by raising the kind of questions that empirical research should try
to answer.
Practical applications in Direct Mail. Perhaps the most promising area for applying the
marginal approach quantitatively is direct mail advertising. Here the distorting conditions
that make it hard to find the marginal cost of advertising are often at a minimum. Keyed
responses make it possible to trace a large part of the results directly to a specific
advertisement. Quality of copy can be held constant (or manipulated independently) by
sending the identical copy to large numbers of prospects. The cumulative effects of
advertising are usually less troublesome, and response lag is short enough so that
cyclical changes do not cause important distortions. Finally, and perhaps most
important, sectors or strata of prospects can be walled off and tapped separately.
These conditions make it possible to establish a ladder of susceptibility by sampling

measurements of marginal advertising cost, and to set up a stop-loss signal based on
incremental profit. An outline of the way a publisher might determine the amount to
spend on direct mail advertising in promoting a specific book will illustrate how the
incremental approach can be applied quantitatively. In this sort of advertising,the
procedure can be sketched by the following steps:
1. Marshal the candidates for direct mailing in the form of mailing lists. These lists will
vary in “quality”, i.e., appropriateness for the particular book.
2. Array the lists in a guessed ladder of susceptibility to direct mail advertising.
3. Starting at the top of the ladder and working down, test each list by sending the
promotional literature to an efficient sample of the list.
4. Estimate the probable marginal advertising cost of each list by computing the ratio of
(a) the added advertising cost of the mailings to (b) the sales obtained from the sample
mailing s (e.g., for List A, 50 cents a copy).
5. Estimate the incremental profit per copy. Roughly, it is the spread between price and
incremental printing costs (e.g., $1.00 a copy).
6. Rearrange the sample lists in a new ladder in respect to the estimated marginal cost
of advertising. Starting at the top, make full mailings to each list down to the rung where
incremental profit just fails to cover estimated marginal advertising cost (e.g., stop at
List M, where a marginal advertising cost of $1.00 a copy was indicated by the sample.
ALTERNATIVE METHODS.
Having reviewed a theoretical foundation of selling cost analysis as applied to

advertising, we turn now to the methods that are actually used to determine advertising
outlays. Our central concern is with the philosophy underlying outlays. Our central
concern is with the philosophy underlying the methods rather than with the mechanics
of administrative controls. We shall use “budget” and “appropriation” interchangeable,
though a distinction might be made between the long-range expenditure plan (budget)
and the outlay authorized for a given year (appropriation). The words “expenditure” and
“outlay” will, unless otherwise qualified, apply to future plans and will refer to the budget.
As for the marginal approach reviewed in the preceding section, its impeccable logic
provides a criterion for appraising the methods described in this section, even though its
problems of application are at times insurmountable.
Several alternative approaches to the problem of planning total advertising expenditures
will be examined: 1. a fixed percentage of sales; 2. all you can afford; 3. whatever
amount promises a better than specified return on investment; 4. the amount needed to
attain advertising objectives; and 5. the amount needed to match competitors’
advertising.
Percentage-of-sales Approach. Determination of the advertising budget as a

percentage of past or expected sales is a method that was dominating in the past and is
still widely used. A survey of budgeting practices of industrial users in 1939 made by the
national Industrial Advertising Association and reported in the Sales management
Handbook1
1 J. C. Aspley, Editor (Fifth Edition, Chicago, The Dartnell Corporation,1974)
showed that 48% of the 383 respondent companies used some variant of the
percentage-of-sales method. Neil H. Borden, in The Economic Effects on Advertising,2
2 (Chicago, Richard D. Irwin, Inc. 1942), Chapter 25
points out that of 215 companies advertising consumers’ goods in 1935, 54% stated
that their appropriations were a predetermined percentage of sales, either of the past
year or of the year of the budget.
The method has several variants: it can use either a fixed percentage of a percentage
that varies with condition; it can be based either on historical or on projected sales; and
it can be stated either in dollars or in physical volume
This general approach to the problem is hard to support analytically. The purpose of
advertising is to increase demand for the company’s products above what it would
otherwise be. A stable or declining demand is not evidence that advertising is
ineffective, for without it sales might have been even lower. It must be remembered that
advertising is a cause, not a result, of sales. The amount to be spent in shifting the
demand schedule should depend on how much the shift is worth. The volume of sales
the company already has tells nothing about the cost or the worth of getting more.
It would appear even less rational to base the budget on the volume of sales that the
company expects to get. Sales will be the result in part of the level of national income
and the accumulated effects of past advertising, not only of the advertising that is
currently being decided on. To the extent, that sales are determined by forces other
than current advertising, the criterion of expected sales is irrelevant. To the extent that
they are determined by future advertising, the criterion is based on circular reasoning.
How, then, can the widespread use of this method be explained? To some extent it may
be due to top management’s desire for the certainty and the illusion of control that
comes from relating this essentially discretionary element of expense in a systematic
way to revenue. There is an element of safety in limiting advertising outlays in this
manner, since expenditures are timed to come when the company has the gross
revenue to afford them and when their tax effect may be favorable. But this element of
safety could be better found, as in the marginal approach, by making advertising a
function of expected profit, which normally fluctuates cyclically more violently than
expected sales. If this method rests upon the belief that the added sales per dollar of
advertising are higher when national income is high, it would be more logical to make
advertising outlay vary directly with national income.
Another possible explanation for the popularity of this method stems from competitive
relationships. If all, or most, members of an industry used this method and employed
the same percentage of sales, competitors’ advertising outlays would be roughly
proportional to their market shares. This condition would have a restraining effect on
competitive warfare in advertising, and would ease ulcers in peace-loving firms. Much
advertising is essentially defensive anyhow.
Thus, although the percentage-of-sales approach appears on its surface to have no

logical justification, it has features that make it attractive: It provides a formula answer
with an illusion of control; it permits the cyclical timing of outlay to fluctuate roughly with
ability to pay; and it may tend toward competitive stabilization. But inertia and the lack of
a more logical and equally definitive standard are probably the most important
explanations for the popularity of this essentially mechanistic method.
All-you-can-afford Approach. An approach to the determination of the advertising

budget, which is probably more widely used than most executives would admit is for a
company to spend on advertising all that it can afford. In practice, this amount is
sometimes a predetermined share of the profits, though sometimes it is gauged by the
amount of liquid resources and borrowable funds. The result of this policy is that
advertising is often the first expenditure to go because it does not involve long forward
commitments and does not disrupt the organization so much as other major
curtailments, and because long-term results are less tangible than the results of other
kinds of outlay.
At first blush this method seems to make no sense at all, yet on further analysis it
appears that the effects of advertising outlays upon profits and liquidity are important
considerations in setting outer limits for advertising. These limits may prove to be
beyond the range of profitable advertising outlays (e.g., for a producer of power plant
apparatus), but they are often well within it. In any event, these limits ought to be staked
out.
Normally a time lag occurs between advertising outlay and sales results. Even if the
advertising outlays bring highly profitable results ultimately, financial embarrassment
may develop if short-term cash and credit limits are ignored – especially if the time lag
of response is long. The limit of what a company can afford ought to be set ultimately by
the availability of outside funds. The firm’s resources in this sense set a real limit on
advertising outlay. However, the mere existence of a limit is no reason for shooting at it.
It may be far above the amount of advertising that is profitable.
The effect of advertising outlay upon the company’s earnings statement is also a valid
factor in timing. Even though an added thousand dollars of advertising brings a smaller
increment of sales and profits at a profits peak, it may be justified because the
government pays 45% or more of the outlay, and because a lower earnings figure is
often more respectable at such times.
Corporate income taxes favor concentration of advertising at cyclical peaks and

penalize attempts to accumulate advertising reserves to be spent in depressions. One
reason is that future tax rates are quite likely to be higher in prosperity than in
depression, and the carry-back and carry-forward provisions of the law are probably
inadequate to remove this tax incentive for bunching of expenditure. Moreover, Section
102 discourages retention of earnings for future depression advertising. The vast
amount of money spent during the Second World War in advertising unavailable civilian
products showed the widespread acceptance of the philosophy of relating advertising
outlays to profits, with a weather eye on their tax effects.3
3 See Jerome D. Scott, “Advertising When Buying is Restricted,” Harvard Business Review, Vol.
XXI, No.4 (Summer 1943), pp. 443 - 454.
Union negotiations and public opinion also frequently make it embarrassing to show
high profits in prospecrity; hence timing advertising outlays to manipulate reported
earnings makes sense as a modification of a strictly marginal approach. Considered
purely as a capital investment in distant-future benefits,
It may be desirable from the viewpoint of capital budgeting to limit advertising outlay of
an earnings plow-back nature to some fixed proportion of current earnings. Over the
cycle this method would lead to advertising outlays that fluctuate violently, for a
company’s profit cycle normally has much greater amplitude than its sales cycle. It
might lead to unprofitable curtailment in hard times.
Used uncritically, the all-you-can-afford approach is unsatisfactory, largely because

there is no relation between liquidity and the richness of advertising opportunities. If
another $1,000 of advertising will bring in $2,000 of added profits, is hard to say that it
cannot be afforded. A management that limits advertising to liquid funds or to
percentages of profits is probably overspending at some times and foregoing money-
making opportunities at others.
The all-you-can-afford method, however, is helpful in some ways in determining the

advertising appropriation. (1) It produces a fairly defensible cyclical timing of that part of
advertising outlay that has cumulative, long-run effects. (2) when marginal effectiveness
of advertising can be guessed, it budgets well for firms operating effectiveness of
advertising can be guessed, it budgets well for firms operating short of the point where
incremental advertising costs and profits are equal. (3) When nothing can be known
about the effects of advertising, it sets a reasonable limit on the gamble. Actually,
everything above a respectable return on capital might be spent on advertising, since
excess earnings could be considered to have low utility to management compared with
the possible contribution of continuous advertisng toward eternal life for the firm.
Return-on-investment Approach. Advertising has two effects: (1) It increases sales

today. (2) It builds goodwill to increase sales tomorrow. The first involves primarily
problems of selecting the optimum output rate for maximizing short-run profits. The
second involves selection of the pattern for investment of capital funds that will produce
the best scale of production and maximum long-run profits. Thus, another approach is
to treat advertising primarily as a capital investment rather than as a current expense.
Determination of the amount of advertising then becomes a problem of capital
expenditure budgeting Advertising investment must compete for funds with other kinds
of internal investment on the basis of prospective rate of return.
Although each piece of advertising affects both immediate sales and the long-run
goodwill structure, the relative importance of the two effects can vary widely. At one end
of the spectrum is institutional advertising, with a long time lag and untraceable effects –
e. g., using radio programs featuring symphony concerts. This is almost pure capital
investment. At the other end is advertising of special sales events by retail
establishments. Such advertising usually has only a small element of capital

investment. Metrical separation of these two components is probably impossible.
Interaction makes the problem even more complex since the level of the reservoir of
cumulative goodwill modifies the efficiency of advertising directed at immediate sales.
The only possibility, and that a slim one, is to use multiple correlation analysis4
4 See Sydney Hollander, Jr., “A Rationale for Advertising Expenditures,” Harvard Business Review,
Vol.XXVII, No.1, (January 1949), p 79.
The timing of advertising over the years resulting from a return-on-investment approach
differs unpredictably among companies. The pattern depends on the philosophy of
budgeting and on the prospective profitability of capital expenditures that vie with
advertising for funds. Only if the prospective return on institutional advertising has sharp
cyclical fluctuations will anything but an accidental cyclical pattern evolve from this
criterion alone. This may be unimportant in some cases, where the lag in response is
long and diffused. But dimming memories and the incursions of rivals usually dissipate
the goodwill built by advertising through evaporation or run-off. This is particularly
dangerous when costs of re-entering lost markets are high. Hence a part of the
advertising investment problem is to find what rate of current expenditure is required to
offset this deterioration and to maintain the level of this goodwill reservoir. Thus concept
analogous to plant replacement operates in estimating return on advertising investment.
The chief deficiency of the return-on-investment approach is the difficulty of even

guessing at the rate of return on advertising investments. Problems of distinguishing
investment advertising from outlays for immediate effect; problems of estimating the
evaporation of the cumulative effects of advertising; and, most important, problems of
measuring the effect of advertising accumulation on long-run sales volume and on the
possibility of eventual price premiums all conspire to make the return on advertising
investments highly conjectural.
These measurement difficulties rule out this approach as a sole criterion for budgeting
investment-type advertising, but they do not invalidate the investment approach itself.
For other kinds of investment, e.g., research laboratories and department store
escalators, it is equally impossible to estimate the return precisely. Yet few would, for
this reason, kick out such items from the capital expenditure budget. Institutional and
cumulative advertising should be analyzed in the intellectual setting of the capital
budget, viz., long-range strategic and profit objectives, competition of alternative
investments for limited company funds, and balancing of risks against prospective
return on investment in rationing capital. This kind of investment perspective should be
an integral part of an intelligent approach to the advertising budget.
Objective-and-task Approach. The Second World War brought to prominence the

objective-and-task method of determining the advertising appropriation. On the basis of
a postwar survey, Printers’ Ink of December 28, 1946, concluded what this was the
most widely used method. The popularity of this approach during the war apparently
came partly from the need to justify advertising expenditures as business expenses (for
purposes of taxes and contracts) during a period when a low percentage of civilian
goods sales would support only trivial outlays.
Under this approach the advertising budget is the amount estimated to be required to
attain predetermined objectives. The orthodox procedure involves an impeccable and
highly salable sequence of steps: (1) define the objectives; and (3) determine the cost
of accomplishing these tasks.5
5 For a complete and thoughtful treatment of this approach, see A. H. Haase, The Advertising
Appropriation (New York: Harper and Brothers,1931)
The cost so determined is the advertising appropriation.
An “ objective,” as used in this procedure, is properly stated as a change: the difference

between results with the advertising and results without it. The objective usually applies
to the coming year’s sales, although it may refer to invasion of a specific market or the
establishment of distribution outlets. In this respect the actual advance that this method
represents over the percentage-of-sales criterion may easily be overestimated. In
general practice the sales-volume objective is based on the preceding year’s volume.
Expected changes in business conditions, competitors’ actions, and so forth, are then
considered as a basis for deriving the current year’s outlay from the preceding year’s
outlay.
Some companies fall back on intermediate objectives such as establishing brand

familiarity or preferences, promoting applications of the product, or simply broadcasting
the sales message. Many such “objectives” simply list the roles of advertising in the
broader merchandising scheme without referring to specific sales effects. For example,
a recent study for the Association of National Advertisers reports the advertising goals
of the Armstrong Cork Company as keeping the company’s name before customers and
attracting the attention of those who are not buying now by: (a) providing salesmen an
access to prospects, (b) making prospects easier to sell to, (c) publicizing the
Armstrong name, and (d) carrying the sales message beyond the range of personal
coverage.6
6 Paul H. Nystrom, Editor, Marketing Handbook (New York, The Ronald Press Company, 1948),
p.1235
Nobody can quarrel with thinking through goals of advertising as completely as

possible, since it contributes to better copy and media policy. But this kind of analysis of
“objectives” contributes nothing to determining the size of the advertising appropriation.
For that purpose objectives must be expressed so that they are measurable and
costable, e.g., a 10% increase in sales next year over what they would have been
without this advertising.
In its bald form, the objective-and-task approach begs the question. The important
problem is to measure the value of objectives and to determine whether they are worth
the probable cost of attaining them. In other words, what intensity of demand (i.e., what
position and shape of demand schedule) is an economically sound objective? The
objective and-task method method assumes that the candle is always worth the cost. In
many cases the high marginal productivity of advertising (up to the limit of the money
available) bails out the advertiser, but his good fortune does not make his basic thinking
any clearer.
After valuing and costing legitimate objectives, the next and vital step is either to cut
back or to expand plans in the light of these prospective costs. In this form – since the
objectives are reshaped and really determined by the cost of attaining them, rather than
vice versa – the approach has the virtue of sharpening issues and directing research
and planning into relevant channels.
When an objective has been defined so that the task can be stated in terms of costs,
the problem is in a form that is appropriate for analysis either by the marginal approach
or the investment approach. Objectives in terms of near-future sales volume can be
expressed as the marginal advertising cost function in Exhibit I, while specific long-run
objectives can be viewed as investments to be built into the capital budget on a rate-of-
return basis. For instance, if the objective is to get mass volume for a new product at a
premium price, the task of advertising is to establish and maintain the corresponding
brand preference; the budgeting problem is to determine the relation between the
necessary initial and continuing outlays and the resulting level of price-Premium, and to
compare the premium profits with the required investment in advertising.
To sum up, the objective-and-task approach, using a straightforward sequence of attack

that is good for any business problem, tends to beg the question when it is not carried
the whole way. The economic problem is to determine what objectives are worth the
cost of attaining them. This cost can sometimes be predicted, but the value of attaining
objectives can rarely be measured. This general method can, however, be extended
into highly promising experimental and marginal approaches. Through such approaches
objectives can be reformed in the light of costs. Economic tasks can thus be adapted to
the peculiar goals and situations of individual companies and nicely integrated with
other elements in the company’s marketing plan. But the objective-and-task method is a
budgeting method only because it is called one; what it actually does is frame problems
for solution.
Competitive-parity Approach. The essence of the competitive-parity approach is to base

in some systematic way the company’s advertising outlay on the outlays of other
members of the industry. Specifically, the company’s percentage of total competitive
advertising might be made equal to its share of the market. (A variant, which is quite
different conceptually, is to spend as much as necessary to retain a desired market
share).
This method of budgeting is widely used, and it finds some support in the writing of
practitioners. The defensive nature of a large proportion of advertising outlay, designed
to check the inroads of troublemakers, may account for the method’s popularity. For
example, in the antitrust case against the big three tobacco companies, the explanation
advanced by American and by Liggett & Myers for following the lead of Reynolds in a
1931 price advance was that the revenue was needed to match Reynolds’s increased
advertising.7
7 American Tobacco Company v. United States, 328 U.S. 805 (1946)
The approach appears at first to have slim warrant in principle. What competitors spend
on advertising does not tell a firm how much it can spend to make added benefits just
equal the added costs. The size of this optimum outlay is affected by rivals’ advertising,
since competitors’ advertising influences the productivity (incremental cost) of the firm’s
advertising. But it cannot be determined by merely matching competitors’ appropriation.
Hence what rivals choose to spend does not in itself provide any valid measure of what
the firm’s advertising budget should be.
The parity approach is sometimes defended on the grounds that the advertising
percentages of competitors represent the combined wisdom of the industry. This
argument assumes that rivals know what they are doing and that their goals are the
same as the firm’s. Actually, since great differences normally exist among competitors in
the ratio of advertising to sales, the industry average is often relatively meaningless.
Consider, for example, this breakdown of an industry average that appeared in Printers’
Ink of February 8, 1947: out of seven companies one devoted 9% of sales to
advertising; one devoted 3%; three devoted 2% and two devoted 1%.
No correlation appeared between outlay and size of firm in this breakdown. Further
analysis revealed that the smallest firm, which was one of the heaviest advertisers, was
bent on a program of aggressive expansion; one of the concerns that spent 2%
manufactured only a restricted line and had no ambition to grow; the largest concern
was well established and was making a very satisfactory showing with an expenditure
of only 3%. This case illustrates the limitations of an industry average as a tool for
determining outlay, in that companies differ in objectives, brand maturity, and marketing
methods. It also suggests the advantages of knowing rivals’ objectives and competitive
situations as well as their advertising outlays.
Another difficulty is that, to the extent that this rationale is valid the future and not the
past advertising outlays of rivals should constitute the standard. Usually these outlays
cannot be determined soon enough or with enough accuracy to be useful in planning
appropriations.
Advocates of parity advertising claim that it safeguards against advertising wars that
can be started when other methods are used to determine outlay. Parity advertising
may thus play a role analogous to that of price leadership in preventing price wars. But
degenerative retaliation in advertising is much less likely relation to output, being a
cause rather than a result of sales.
In many situations an economically logical approach becomes a bit mystical, because

the relevant considerations for deciding how much to advertise are not measurable and
visceral guesses have to take their place. Under these circumstances rival methods
have an attractively solid appearance because their criteria, though not strictly relevant,
are nevertheless tangible.
Viewed against the logical background of marginal analysis, most of the methods that
are actually used to decide on the advertising appropriation seem to have no economic
foundation. The fixed-percentage-of-sales methods gets the cart before the horse;
advertising outlays should cause sales, not be determined by them. The all-you-can-
afford method reflects a blind faith in advertising, which, though occasionally rewarding,
is nevertheless a confession of ignorance. The objective-and-task approach, though it
sounds plausible, stumbles before it starts over the obstacle of not determining whether
the objective sought is economically worth attaining. The competitive-parity method
represents a narrow goal not usually tailored to the company’s full needs. And the
investment approach, while conceptually sound in recognizing the time dimension of
advertising and its rivalry with alternative capital expenditures, is hard to nail down with
empirical data.
The difficult problem in applying economic analysis to advertising is to find the empirical
equivalents of the theoretical curves. The deep uncertainty surrounding the productivity
of advertising is perhaps the origin of such methods as percentage-of-sales and
objective-and-task. But whatever rationale these methods may one have had, their
basic weakness is that they hide rather than highlight the economic issues in the
advertising problem. Despite its limitations, economic analysis can be helpful in

reaching a better decision on the amount of advertising by focusing attention on the
relevant (even though unmeasurable) relationships as opposed to the irrelevant (but
measurable) ones. Though the complete theoretical solution of the advertising problem
is too complex for practical use, manageable approximations may sometimes be
feasible. Quite a few things unmeasurable ten or twenty years ago are susceptible to
such approximation in 1951.
9/20/22, 10:21 AM Industrial Advertising
INDUSTRIAL ADVERTISING
THE MODERN ADVERTISER
1. Appreciates the importance of industrial advertising even though it represents, in

dollars, a relatively small percentage of the amount spent for all advertising.
2. Studies differences between industrial and consumer advertising as to factors that
make each effective.
3. Becomes acquainted with the methods used by industrial advertisers to make the job
of the salesman easier.
In modern advertising, industrial copy represents less than 10 per cent of all advertising
expenditures.1
1 The total advertising volume estimated for 1960 is $8.5 billion. For industrial advertising the
estimate is $845 million. See ‘Tomorrow is a big market’, Associated Business Publications, New
York, 1954. This is an appraisal of the American market-backward to 1935 and forward to 1975.
This percentage is so small that some advertising practitioners tend to overlook its
importance in our economy. One reason for this oversight is that consumer advertising
has more attractiveness, uses more artistic, colorful illustrations in mass publications
and appears in more glamorous television shows. Furthermore, the copywriters for
consumer advertising prepare advertisements on which agency billings are relatively
higher. The copy writer for the consumer advertisement can let his imagination go into
clouds of ecstasy about the delights obtainable from the use of a soap or a soup; but
the man who writes industrial advertising must stick closely to the cold facts-facts that
will be read by technically trained men who buy on a logical rather than an emotional
basis.
THE FUNCTIONS OF INDUSTRIAL ADVERTISING
The real importance of the industrial advertising man is in his behind-the-scenes

contributing to your standard of living. He is one of the most important influences in
educating and persuading manufacturers and processors to purchase more productive
equipment and to adopt lower-cost technical processes. These in turn, help the
producers to make better products at lower costs. As a result, consumers can buy more
consumer goods, thus raising the standards of living for all. This role is, in a way, more
significant but less glamorous than that of the consumer advertising man.
In the summer of 1953, the Sales Executives Club of New York sent a questionnaire to
1,328 sales executives in firms selling to the producer design, plant engineering, and
metalworking markets. The questions and the average of the answers of the 228
respondents are given below.
Questions Average of answers
What do you estimate is the average cost per call by $17.24

your salesman?
1. In your opinion, out of every 100 cold call made by your 9.2
sales force, how many orders do you get?
2. In your opinion, out of every 100 calls made by following 16.0

up an enquiry from your publication advertising,
how many orders do you get?
3. In your opinion, out of every 100 calls made after 38.4

your prospect or customer has studied your catalog and
invited your salesman to call, how many orders do you get?
The following table shows the over all average cost of orders developed under the three
conditions under which the calls were made:
Conditions Orders per 100 calls Cost per order
1. Salesman calling cold 9.2 $187.39

2. Following up ad inquiry 16.0 $107.75
3. Call on invitation after catalog studied 38.4 $ 44.89
The sharp contracts between numbers of orders per 100 calls and the cost of these
orders certainly indicate that every effort should be made to increase the percentage of
calls salesmen make on invitation.
------
Source: See Marketing Memo, Sweet’s Catalog Service, Dec. 1. 1954.
Much industrial advertising is done to increase the effectiveness of the salesman. It

costs money to have salesman call on prospects. In the industrial field, the average cost
of a salesman’s call on a prospect was found to be $17.24, according to a survey
conducted by the sales Executives Club of New York. Data was furnished by 223
representative manufacturers of industrial materials, equipment, and services. Of these
companies, 81 per cent indicating upon the product or service being sold, its cost, and
the amount of engineering and research necessary to meet customers’ demands. The
total range of costs per call was from a low of $1 to a high of $130(see Table 32-1).
Using these figures and the average call cost of $17.24, the Sales Executives Club
found that the average cost per order was about $187 for cold calls, about $107 for
advertising follow-ups and about $44 per order when the prospect had studied a
catalog.2
2 “N. Y. Sales Execs report Industrial Calls $17.24, “Advertising Age”, July 13,1953
The above figures are averages for certain general classes. Each company must, of
course, determine for its particular situation the appropriateness or inappropriateness of
the marketing tools available. Advertising for many industrial firms becomes an
effective, cost-reducing selling tool when rightly used.
Generally, the greater the number of favorable contacts with the customer, the greater
his recognition and preference for the brand or company.
A favorable contact may be in the form of use experience, a report from a pleased used,
a demonstration, a news item, a catalog listing, a salesman’s call, or a paid
advertisement. Of these, the marketer has the greatest degree of control over the
salesman’s call and the paid advertisement. As Howard G. Sawyer has stated:
Studies of business and industrial buying practices show that the companies most likely
to be considered in a purchasing decision are those that have made those two types of
contact most frequently. In one test, 2,657 men (who indicated they had buying
influence over unit air-conditioners) were asked to list in order of preference the brands
of air-conditioners they would consider for purchase and to mention the names of
companies that had recently contacted them through salesmen and advertising. Ranks
in preference and contacts were almost identical.3
3 Howard G. Sawyer, “Can Ads Sell as Well as salesmen?” Printer’s Ink, July 16 1954. Copyright,
1954, by Printer’s Ink Publishing Company, Inc., New York
The salesman is limited in his scope of activity. This is indicated by the percentage of
buyers in four manufacturing industries who remembered seeing salesmen from five
leading oil companies. The percentages ranged from 7 to 30.
Also, an analysis of one year’s sales by R.G. Le Tournequ, Inc., showed that 39 per
cent of its customers had not previously been known to them as prospects, had not
been approached by salesmen, were not on the company’s mailing lists.
Salesmen have difficulty in keeping contact with the many rapid changes in personnel
of industrial firms. McGraw-Hill circulation records show that out of any 1,000 industrial
buyers during a 12-month period, 148 will change their addresses while still holding the
same or similar jobs; 65 will change their titles (due to promotions, etc.) within the same
company 326 will die, retire, or move to another company.
One of the functions of industrial advertising is to reach the inaccessible purchasing

influences.
United States Steel Company asked 11 of its subsidiary companies to furnish names of
all the people their salesmen contact in33 prospect and customer plants; 105 names
came back. Yet a check of those plants revealed that in addition to those 105
individuals, there were 1,850 buyers with titles indicating buying influence for U.S. Steel
products. The 1,850 buyers were not seen by salesmen, but they were subscribers to
publications in which U.S. Steel advertises….
Advertising – it must be said cannot button hold a prospect, cannot adjust its message
to each individual case, carrot answer on a waver-but-not-yet sold order, and it does not
possess in anywhere nearly so great a degree the unquestionable advantage of selling
through individual personality.
However, it can be more truly and permanently representative of the company’s

personality. And this is an advantage that should not be underestimated.4
4 Ibid
Many industrial advertisers whose products are sold to consumers through distributors
and dealers have to furnish merchandise aids: store displays direct mail services, and
attractive packaging that meet their needs in the same way that the consumer
advertisers have to provide merchandising aids. These selling tools are developed by
industrial advertising men in much the same manner as they are prepared in companies
that sell consumer products only. Advertising for industrial publications, however,
requires special knowledge that meets the needs of the technically trained reader.
SPECIAL REQUIREMENTS OF TECHNICAL ADVERTISING
Many of the products advertised to industry are ingredients or parts of equipment whose
identities are lost when the product reaches the ultimate user. Chemicals and metals
are common examples. Textiles, such as cloth for automobile seats and insulating
materials for refrigerators are sold to other manufacturers who utilize them in end
products. The manufacturers’ purchasing experts must be given the kinds of product
information that they want highly technical. They want formulas, physical properties,
and technical descriptions.
The advertising copy writer for basic raw materials cannot be expected to know all the
technical details that apply to al of perhaps fifty products made by his materials
manufacturer. The copywriter must ask the experts for help. They, of course, are likely
to provide technical information, which the copy writer may not understand or be able to
interpret to the readers. Frequent consultations between the experts and the copywriter
are necessary until an advertisable idea and a plan are developed.
Sometimes the problem can be solved by publishing an advertisement in a many

industry magazine that describes the product in a way that is understandable to a wide
variety of technical men, each of whom will be able to see possible applications to his
industry.
There are some advertisers to whom technical advertising is vitally important because
acceptance and use of their products begin with technical people.
These people may be engineers- chemical, research, design, mechanical or they may
be technicians- chemists, metallurgists, and the like. They are, at any rate, specialists in
their work.
Table 32-2. Costs of Industrial Salesmen’s Calls.
Rising costs of personal calls have emphasized the importance in today’s selling of
backing up the salesman with business paper advertising, catalogs, direct mail, visual
sales tools – to the end that they can spend more of their precious time in presenting
product specifics and closing orders.
------------------
Source “Industrial Salesmen’s Cal Costs up 80% , “ Sales Management, April 4, 1953;
Research Department of McGraw-Hill Publishing Company, Inc.
Industry Costs,. Median averages
1942 1952
Chemicals $ 4.00 $ 6.00

Primary metals 5.24 13.30
Fabricated metals 6.45 10.71
Machinery, except electrical 6.47 11.00
Rubber products 6.75 12.00
Miscellaneous manufacturing 7.07 11.89
Transportation equipment 8.00 14.97
Electrical machinery 9.00 9.90
Paper products 9.38 17.50
Instruments 9.50 14.00
The men who scan, with interest and understanding, the algebraic formulas involving
differential equations, which are concerned with the deflections of perpendicularly
loaded split circular rings, or the prediction of reaction equilibrium, or the structure of
acetoacet – orthochloroanilide - they’re people, but they’re people with pride of intellect
– and with a lot to say about what goes into things chemical or mechanical.
Sure, these people may read the comic strips in the daily paper. They may buy neckties
as irrationally as the next guy. But in their professions and sheer specialities within their
professions, they can be cold in their judgments while intense in their professional
interests, and likely to dismiss as “just advertising that is flamboyant,, general,
inaccurate, overstates the case, or reveals no familiarity with their field.
They will read long copy and think nothing of it, if it’s right for them. And paradoxically, a
degree of favourable emotional reaction can be won from them – in the profitable form
of product loyalty – by advertising that adheres to high standards of honesty and that
leans toward understatement.5
5 Seth Jewell, “To be or not to be Technical in Advertising Copy” Advertising Agency , August,
1954, p 72
A leading industrial advertising manager, one who is an advertising manager for

Crucible Steel Co., has summarised some basic principles about industrial copy:
Factual product information is without doubt the most helpful kind of copy. The industrial
advertising man, in the majority, will list the following as his guide for a good ad:
1. Application of the product (actual use)

2. Technical data to support his claim
3. Cost and economy
4. Availability of the prod8ct
5. Offer of more technical information and or field engineering service and
6. Company name and sales department address
The copy must be as clear and precise as a purchase order. Industrial advertising,
unlike much consumer advertising, is so basic a part of the editorial content of a trade
publication, that it should take the tenor of the editorial itself. Survey after survey has
shown that where an industrial advertiser patterns his copy after the style of editorial, he
will gain greater readership and more believability…
How different then from the reader of consumer advertising who’s stopped by an ad
featuring a decorous blonde who encourages him to use Slick-Groom Hair Tonic…..and
he’ll get a kiss from his best gal ! OR the pathetic guy left in the cold at his company
picnic because he needs green grass seed to cure his body odor!
The number one distinction, then between consumer and industrial copy is the reader,
‘and his frame of mind when he’s reading as a part of his job versus reading for –
pleasure!6
6 Michael Stumm, “What Advertisers should know about Industrial Copy,” Industrial Marketing,
November, 1952
INDUSTRIAL ADVERTISING COPY CAN BE LONG
If the copy applies to the reader’s interests, it can be as long as necessary to explain
the facts.
McGraw-Hill Research made a survey of 1,069 single-page advertisements in one

publication, and found that industrial copy is more widely read and remembered longer
if the advertisement is detailed and informative. This finding indicates that the people
who read industrial publications want the facts fully explained. They want detailed
information in the advertising they read.
In order to evaluate readability of advertisements by the amount of information, full-

page advertisements in five issues were studied and grouped into three classes on the
basis of their length of text. The classes were divided into short (120 words or less),
medium (121 to 200 words), and long 201 to 500 words). There were 426 cases in the
short class, 430 in the medium, and 213 in the long.
The use of an index system permitted the making of comparisons without bias due to
color or bleed. “Remembered seeing” and “readership” classifications were compared in
short copy, in medium copy, ad in long copy. The medium-length advertisements were
remembered by 10 per cent more people and the long text ads by 34 per cent more
people than the short copy advertisements.
The comparison in “readership’ followed the same general pattern. Medium-length

advertisements measured 9 per cent more readership and long text advertisements
measured 23 per cent more readership than short text advertisement.
Further analysis was necessary to determine whether the findings were related to the
length of the advertisement rather than to the product or service advertised. After cross
tabulating the data, it was found that the advertisements using the same techniques of
size of space, color and bleed were better remembered and more widely read when the
information in the advertisement was detailed and full. The results of this survey clearly
indicate that long-text industrial advertisements are recalled better and read more
widely.7
7 Ibid
It should be recognized, however, that the mere use of long copy or big illustrations
does not force readers to read the advertisement. The advertisement must earn readers
by offering copy that is worth reading.
If long copy is helpful to the reader, it gets better reading than short copy. In an issue of
a technical magazine, two brass and bronze companies happened to have facing
pages. They had equal opportunity to win readers. The short-copy advertisement, less
than 100 words, gave general information about the items available. The 801 word
advertisement had technical copy that gave specific, helpful information. The latter got
70 per cent higher reading.
Position in the publication is relatively unimportant. Generally, consumer advertisements

that are placed opposite or near related editorial matter are more likely to be noticed
and read than those placed at the back of the publication or “buried in the middle.
Therefore, advantageous positioning is often important in the consumer advertising.
This is not the case in industrial advertisements. If they have reader interest, they will
be read regardless of their position in the publication.
Industrial advertisements are selective. Audience selection plays an important part in

industrial advertising. The reader should quickly identify the subject of an industrial
advertisement and the company sponsoring the product or service. The industrial
advertiser does not aim to achieve universal appeal. He is interested only in qualified
prospects.
Industrial advertising may have hidden objectives. In the case of industrial advertising,
many objectives other than immediate sales may be sought. Getting the product
accepted as the leader in its field and assuring the reader of its availability at all times
are examples of these hidden objectives whose success cannot be measured statically.
Management often has objectives in advertising, which are never actually voiced. Good
advertising campaigns have clear out objectives, so it is virtually impossible for
adverting to be effective unless management has confidence in the advertising man and
states fully and frankly just what these objectives are. Successful industrial advertising
men keep their managements informed about the company’s advertising and make
themselves accepted as members of management, thus setting up a basis for trust and
confidence. To produce effective advertising, advertising, advertising men and
management must cooperate fully.
Industrial advertising usually stresses the manufacturer as well as the product. The
manufacturer, his facilities, and his reputation are important aspects of industrial
advertising. Consumer advertising relies on brand names rather than corporate names.
The brand name is often advertised to the extent that the public has no idea whatsoever
of the manufacturer’s name. Industrial advertising endeavors to pre sell products by
associating the public with corporate names.
WHAT READERSHIP STUDIES SHOW ABOUT INDUSTRIAL ADVERTISING
Numerous surveys are being made of the extent to which readers of industrial
publications read the advertising. The nature of the product is, of course, one important
factor in readership. Obviously, an advertisement for a lubricant is likely to have a
greater number of reader prospects than one for railroad bridges. There are more
technical people who buy oil than bridges. In spite of this and other differences related
to product interest, readership surveys do elicit significant finding for the advertising
man such as the following:
1. Cartoon and humor treatments get less attention than “how to” or reader benefits.
One industrial advertiser, for example, ran a double spread in Power Magazine. The
left-hand page was in two colors and had a cartoon; the right-hand page was in black
and white and offered “how to” information. Only 5 per cent of the publication’s readers
noted the left-hand page and 4 percent read most of the copy. The right-hand page, in
contrast, got 20 percent Noted and 10 percent Read Most scores.
2. Technical men like to read about technical problems. They even read direct questions
such as “How would you insulate this valve?” They like to solve problems and read
about the ways other men solve problems.
Three manufacturers of water conditioning equipment used three different

types of advertisements. One had an illustration of an owl with the headline
“Whose expert advice should you follow?” and argued for the advertiser.
A Second advertisement had a cartoon illustration and posed the question of

“Sludge” versus “Scale” and explained the differences.
The third asked an important technical question, “Which chemicals is best for
your plant?” It included a checklist to enable the engineer to answer the
technical questions himself according to his own best judgment.
The first advertisement was one of the lowest scoring advertisements in the
issue, the second average, and the third was one of the very best.
3. Technical men like illustrations that show how a device really works. In one issue of
Machinery Magazine, four grinder manufacturers had illustrated advertisements: two let
the reader see the grinding workings of the apparatus and two did not. The two that let
the reader see the inwards of the machine and how it worked got two and one-half
times as much attention as the others. Brief, numbered copy points often help to set up
readership.
4. Catalog formats do better than generalized copy. Catalog formats that contain
detailed information about a product’s use, effectiveness, or construction is likely to
have better reading than general institutional copy. Institutional advertisements with
copy such as “our nationwide staff of engineers will welcome the opportunity of
discussing this important subject with you” get very little attention or reading. One
headline, “How to Give Your Boss Relief from ‘Cost- it is’ Headaches and Get Yourself a
Raise!” Get a score of zero on Read Most. Technical readers want specific information
about improvements that cut waste, records that show increased production at lower
cost, longer life for equipment, case histories that are genuine, and similar solutions to
engineering problems. Today’s best-read advertisements provide technical information
that rivals in value and accuracy the editorial content of the best industrial magazines.
SOME INDUSTRIAL ADVERTISERS FIND CONSUMER MEDIA HELPFUL IN

SELLING THEIR TECHNICAL PRODUCTS
Consumer media are at times used by industrial firms, and the advertisements are
adapted to the consumer reader. They are more generalized and less technical. This
may be done to get the attention of wholesalers and retailers or it may be part of a
planned campaign to make the company name a generic one for that company’s
products.
It may be done by the manufacturer of a technical product who wants to widen his
market. A good example is furnished by a manufacturer of steam generators for the
garment trade. The manufacturer decided to expand his operations into other industries
in order to even out his production schedule.
The usual approach to such an expansion is to run advertisements in business papers

that reach specific fields. Or, an extensive market survey may be done in order to
discover the industries in which business-paper advertising might be done profitably.
This manufacturer, however, decided to shortcut the usual lengthy procedures. Instead,
he ran a catch-all type of advertisement in Sunday editions of leading newspapers.
Inquires from possible new customers were obtained quickly and in profitable volume.
The consumer advertising was timesaver for his purpose when compared to the inquiry
results usually secured from technical or business publications 8
8 For further information see Nat Kameny, “Industrial Advertising – A time and Place,” Advertising
Agency, Sept. !7, 1954.
DIRECT MAIL INDUSTRIAL ADVERTISING
ARTHUR R. Tofte, Advertising manager of Allis-Chalmers Mfg. Co., and Chairman,

NIAA Direct Mail Committee, studied the place of direct mail in industry.
His survey showed that 7 per cent of the companies spent as much as half their
advertising money on direct mail and that 64 per cent spent less than a fifth of their
budget on it.
When asked if they believed direct mail had been an effective advertising tool for them,
93 per cent admitted it was. One member said that $12,000 space advertising in a
campaign had brought 200 inquiries. Many others reported very pleasing results, with
cost of getting inquiries cut in half or the number of inquiries doubled. The survey
indicated a strong ride or enthusiasm for direct mail by those who had made a real trial
of it.
The one big question Mr. Tofto wanted most to ask, and on which he felt he would get
the poorest answers, brought some interesting replies. He asked if the companies
attempted to measure results: 63 per cent said they did, 32 per cent did not. He then
asked if they had ever made a direct-mail readership survey. Only 17 per cent said they
had. He asked if they kept records of replies as a measure of effectiveness: 61 per cent
said they did, 39 per cent did not.9
9 Arthur R. Tofte, “Is Direct Mail Used Wrongly? NIAA Study Suggests It Is” Industrial Marketing,
July 1953
Even though most industrial advertisers do not make readership surveys of their direct-
mail advertising, certain leaders do. The Esso Standard Oil Company has employed
direct mail as an important medium in their advertising efforts for over ten years. These
mailing pieces range from a football handbook to scenic views of the United States, and
the cost of the operation is shared cooperatively with the dealers.
Recently, Esso set out to discover the amount of readership obtained by the regular
direct-mail pieces sent over a six month period. An attempt was also made to determine
what effect these pieces had on customer attitudes toward Esso dealers and on
purchases.
Addresses were obtained from their mailing lists in 12 cities of 6,0000 population or
more in the Esso areas. Using the actual mailing lists, interviewers were instructed to
call on 50 names in each neighborhood. A total of 1,670 interviews were obtained in the
12 cities. Interviews were conducted din the home. The interviewees were shown the
circular and asked to identify them, and their remarks on readership were taken down.
When shown to the interviewee, the copy that had been mailed in September had all
references to Esso, to the dealer, and to the dealer’s location masked out. This masked
piece was shown first to the interviewee. Questions on previous observation and on
product were asked.
The masked September mailing piece had been seen by 57.8 per cent of the 1,670
respondents interviewed. The product was correctly identified by 48.4 per cent, while
the Esso Brand was correctly named by 46.2 per cent. The Esso dealer sending the
circular rated 37.5 per cent, with his correct location named by 40.6 per cent.
Some part of the September circular was read by 27 per cent of the respondents.
Secondary readership by additional observers gave the piece 1.7 readers per home in
homes where the person interviewed stated he said seen the mailing piece.
Based on cross analysis of a sub-sample, we were able to conclude that the direct mail
was reaching over 50 per cent of the husband in the family, certainly a substantial
accomplishment.
The April-August circulars were unmasked: at least one of them had been seen by 66.8
per cent of the respondents. When observation of all six pieces was analysed, we found
that 77.2 per cent of the total recalled having seen at least one…
It was then found that 69,9 per cent of all the people interviewed had a favourable
opinion of direct mail advertising in general. With further study, it was evident that this
favourable attitude increased with increased exposure to the Esso campaign. A
favourable impression of the de4aler was created among 69 per cent of the
respondents as a result of the campaign. This favorable attitude went up with increased
exposure to the circulars…
Almost three quarters of the respondents stated that they regularly patronized the
dealer who sent them direct mail; 97.0 per cent were of the opinion that the dealer could
serve them satisfactorily. When they were asked what brand of gasoline they bought
when away from home, 75.0 per cent names Esso.10

10 Robert M. Gray, “Put a ‘Reward’ in your Direct Mail” Advertising Agency, February 19510
Similar benefits have been reported by other companies from the use of direct mail, but
direct mail has not been thoroughly explored by many industrial advertisers. It is likely to
enjoy a marked growth in importance during the years ahead.
CATALOGS
Catalogs are widely used as advertising by manufactures, wholesalers house in selling

to merchants and industrial buyers. Their usefulness as advertising is increased
because of their relatively greater length of life when compared to other forms of
advertising.
Catalogs serve a definite marketing function because, in most cases, they are the
buyer’s first-used source of information for comparing competing products and deciding
which companies should be asked to have a salesman call. Indeed, some industrial
advertisers think of the catalog as a marketing tool for buying rather then a selling.
In a good catalog, every word sells, and the pictures as well as the headline give
necessary information to the reader. Ti is obviously beneficial to the wholesaler,
manufacturer, and mail-order house that catalogs containing comprehensive information
and technical data in the hands of all important potential buyers, readily accessible for
instant use whenever buying needs arise.
The National Industrial Advertisers Association made a survey of its members and
found that nearly one third of the companies let from four to ten years go by before
redesigning their catalogs, that 41 per cent of the fourth of the companies distribute
their catalogs mainly on the basis of requests for them (see Table 32-5)
Compiling such catalogs is a laborious and time-consuming job and requires

specialized knowledge. For this reason, there are various business services in the
industrial and institutional field that arrange to develop catalogs for their clients and
circulate them to customers.
Sweet’s Catalog Service is an organization of catalog specialists. Founded in 1907,

Sweet’s, in a recent year, handled more catalogs then any other organization – over 40
million copies for 1,353 manufacturers.
Sweet’s endeavors to help clients find the answers to their individual catalog problems.
It services fall into three categories: (1) catalog design, (2) catalog production, and (3)
catalog distribution.
Table 32-3. Practices in Catalog Planning
Per cent
What action expected from catalog recipient? (587 answers):

Direct order 41.3
Request for further information 27.4
Request for salesman to call 25.4
No action (other purposes for catalog) 5.6
Other action 0.5
Who participates in catalog planning? (398 distribution patterns):
Advertising department 91.0

Sales department 41.5
Agency 23.0
Engineering 3.0
Special catalog department 1.5
Other 8.0
How often are catalogs redesigned? (835 cases):
Yearly 24.9
2-3 years 44.1
4 years 12.2
5years 12.7
5-10 years 6.1
Source: Survey by National Industrial Advertisers Association. See Dun’s Review and Modern
Industry, December, 1954, p 83
In the area of catalog design, Sweet’s maintains that good design starts with an
analysis of the client’s products and markets. The most effective catalogs are market
specialized to meet the different product-information needs of each buying group.
Market specialized catalogs describe only products of possible interest to the prospect
and interpret them in terms of his special requirements. Moreover, market-specialised
catalogs are economical to produce and distribute, and to replace when they become
obsolete.
Manufacturers’ catalogs, distributed by Sweet’s, are delivered to selected organizations

and individuals representing the bulk of the buying power in each market served.
Sweet’s maintains an up-to-date record of the most important concerns and of the
individuals in each concern who have real buying power for the following markets:
product engineering, plant engineering , general building, industrial construction, and
light construction.
Men in the industrial field who do marketing in any of the areas in which Sweet’s
specializes are likely to consult them or use their services at some time.
To increase the proportion of calls made after prospects have read the catalog, it follows
that a sales executive must increase the use of his catalog. Here are a number of points
to keep in mind, based on techniques used by Sweet’s catalog Service:
Design your catalog from the prospect’s point of view. Good design doesn’t mean
window dressing. Your prospect has an application. Your catalog should give him the
facts he needs, quickly, to decide whether your product might fit.
Aside from organization of facts, the catalog should induce the prospect to call in your
representative. After he has made a tentative decision, tell him what he should do next.
Send the catalog to all important potential customers within your distribution network. It
is dangerous to assume that hordes of potential customers will ask for the catalog and
wait for the mailing when they want production information – they may have your
competitor’s catalog handy.
Maintain your catalog. How many prospects have lost it or thrown it out? How many
have failed to add recent mailings to their loose-leaf catalogs?
Your catalog procedures should be integrated into your basic marketing plan. Your basic
tools are advertising, direct mail, point-of-sale displays, personal selling, and catalogs.
Is your catalog coordinated with your advertising, for example? Do you devote any ad
space to catalog promotion? Do your salesmen often talk from the prospect’s catalog,
rather than bring their own? If your products are bought in more than one market, do
you have several catalogs, each geared to a market’s requirements?11
11 See “ Here’s How Companies Use Sales Catalogues: Sales Distributes them, But Advertising
Plans Them,” Dun’s Review of Modern Industry, December, 19541
Source : Modern Advertising Practices and Principles by Harry Walker Hepner
9/20/22, 10:21 AM Public Relations
PUBLIC RELATIONS
THE MODERN ADVERTISER
1 Recognizes that goodwill towards a company and its products must be based on
deeds but that deals which serve the public and the customers require
2 Admits that advertising men

themselves have a public relating
problem.
3 Cooperates with self-regulation

practices of the advertising industry
and with organized bodies that seek
to improve the ethical standards and
practices in advertising
Advertisements are personalities in print. They reflect the individual companies and
persons who create them. However, advertisements are not the only personalities that
represent the advertiser. Each advertiser has many personal representatives:
salesmen, credit men, past customers, and employees of office and factory. These
people often speak a louder and a more effective language than any published
advertisements. All public relations of the advertiser should be watched and coordinated
with advertising programs. In turn, the advertising programs should be in line with the
public relations policies of the advertiser. One of the first steps in the analysis of public
relations is to look at the advertiser’s irritation points, those places or persons that are
likely to irritate the people who come into contact with the advertiser.
IRRITATION POINTS
The first place to investigate for possible irritation points is among the executives of the
company. If the executives are a surely domineering lot, no amount of advertising by the
advertising department or agency will overcome the ill effects of such personalities.
Of course, the advertising manager cannot discharge the contentious executive, who
may be the president. He can, however, try to minimize and remove the irritation points
that destroy the positive effects of media advertising.
Public-relating programs can be made effective only when all company officials are
aware of their responsibilities to the public. If untoward events have not forced the
management to develop a public-relations program, the advertising manager may well
bring about the inauguration of a suitable program. Employees, too, should be educated
to sense their part in advertising the company. They should be given confidence in the
management and in the products they help to make and sell. Their loyalty can no more
be taken for granted than can the loyalty of the consumers. Every consumer is expected
to buy the available product most to his advantage, and every employee is expected to
seek employment in the best available place to his personal advantage. Public relations
begin at home as a perennial operating principle and not as a publicity stunt.
The need for public-relations programs. Many members of the public are woefully
ignorant of the services rendered by the corporations whose products they purchase
and at times condemn. People tend to believe and perpetuate the “legends” they have
learned about corporations. Bernard Lichtenberg aptly expressed this fact:
In this world, mark these words, it is singularly easy to have the wrong label pinned on
you. Once it is pinned, you will have an almost impossible task to get it off. The sleepy
grunt of old Mr. Vanderbilt one early morning in a railroad car remained a curse to his
descendants until last year, when his great grandson with a different view on public
relations was elected Governor of Rhode Island.
There is a more celebrated historic example. Do you kow why we mistakenly call
ourselves Americans?
It is because a gentleman named American Vespucius contracted to supply Columbus

with beef and biscuits. We ought to call ourselves Columbians. If there were any justice,
we would be living in the United States of Columbia.
The beef and biscuit king did come out here, several years after Columbus had
discovered the country. But he never had command of a ship in his life, and he never
tried to steal the credit. It was given to him by a writer who didn’t have the facts. The
man later published a retraction but the damage to Columbus was done.
It easy to get ideas into the public mind. But it is hard and costly to get them out. We
public relations men, if we worked out just the single subject all the rest of our lives,
couldn’t make public that George Washington was not the first president of the United
States. (He was not. Our first president was a man named Samule Greene, who held
the job only a few weeks before G.W.’s formal election). We could not persuade the
Daughters of the American Revolution that George III was a pleasant, amiable old
gentleman, whose cruelties to taxpayers here, were all the work of his ministers.
Such misconceptions are amusing enough to talk about. They cease to be funny when
they are suddenly pinned to a business in whch we are interested.
Few businessmen realize in time that the public is not understanding their methods and
motives as it should. This is borne in upon me every day. Many an executive sends for a
public-relations counsel only after he discovers that some important public group is
violently misinformed. We often do not get the opportunity to do preventive work. We
are more like firemen sliding down brass poles, after the fire has broken out.
You remember what Emerson said about friends and enemies:
“He who has a thousand friends

Has not a friend to spare,
But he who has one enemy
Will meet him everywhere”
Dozens of surveys have revealed sound or unsound opinions regarding American

business practices. The obvious lesson for management is to operate the business with
so honest an appreciation of the customer and the public that the management can tell
all the facts about the business and tell them plainly. Sound public relations begin at the
top, not at the bottom of an organization. Public relations functions most effectively
when it is treated as a top management function and considered at the policy making
level.
No amount of advertising will make a company genuinely and generally liked. The
advertising manager or someone in authority should consider the manners and morals
and speech and actions of all members of the company. To do this, the man in charge
of public relations should find out what outsiders think of the company. Questionnaires
and interviews for this purpose may be just as important as for the study of consumer
and product relations.
When a management appreciates the kinds of prejudices and misinformation that

people have toward the company, a constructive public-relations program can be
inaugurated. The first step, of course, for management is to put its own house in order.
Industrial relations practices, for example, must be deserving of the respect of
employees and the community. The best public relations is public service. Management
must sense its citizenship to the extent of explaining its profits as well as its products.
As a good citizens of the community, it will boost the community as well as itself. A
railway company, for example, explained and praised the admirable qualities of the
people and industries of the area served by the railroad.
Public interest advertising campaigns have been used by many advertisers:

Metropolitan Life Insurance Company, P.F. Goodrich Company, E.I. du Pont de
Nemours & Company, General Electric Company, Union Oil Company of California, and
numerous others. However, the printed word alone is insufficient for the development of
goodwill, pleasant contacts with employees and executives are also essential
PERSONAL CONTACTS WITH THE PUBLIC
No company can be perfect in its public relations, but it's management can examine
every avenue of contact with the public. This includes the telephone calls, elevator
operation, collection letters, office, factory, and sales personnel. Every employee is to
some extent, a salesman and an advertising medium, Receptionists, floormen, guards,
delivery truck drivers, cashiers, secretaries to officials and office boys often represent a
company to more customers than the advertising department or the officers. The
contact employees should be trained for their responsibilities to the public and be made
acquainted with the advertising department’s problems and plans. This applies
particularly to the retail sales personnel. Spending $10 in advertising to gain a new
customer is a waste of money when an old customer might be held by means of 10
cents’ worth of systematic training for the salesclerks.
A good example of training the personnel is the warning pasted on the dashboard of a
United Parcel Service truck: “Whisper the C.O.D. amount. They may have company”.
Many companies have hired advertising agencies that prepare friendly advertisements
but fail to organize the advertiser’s offices to give equally friendly attention to the
inquirers who answers the advertising. “Friendly advertising but cold service” is what the
customer thinks when he reads a cheerful advertisement and then visits the icy offices
of the advertisers. At the office of many a firm that advertises its helpfulness he finds
that the “goddess at the information desk” greets him with an expression plainly
showing that she is bored at the intrusion. Worst of all, the visitor may get past the
information desk only to find that the executive knows nothing of the advertisement.
Many firms have remodeled their old reception rooms and eliminated that glass partition
with the small circular hole between the receptionist and the waiting room. Now, a
strained receptionist greets the caller in an informal manner. In progressive firms, when
a caller telephones the company and asks for an appointment, the operator-information
clerk asks, “Do you know to get here?” If the caller does not, she tells him the bus to
take or explains the shortest automobile route.
Alert advertising managers have learned to use the reception room as a place where
the visitor may sample the product or read the company’s advertising. Some of the best
advertising space on all of the advertiser’s properties is the office or customers’ rooms.
Consider, for example, the many banks that pay for billboard, car-card, and newspaper
space while the best space to advertise the bank, namely, the tellers’ windows, is
entirely free. Depositors have to stand in line before the tellers’ cages. They would be
glad to read the bank’s advertising if only the bank would offer something more than
signs of detective agency protection.
Courteous treatment of customers by the retail sales personnel often increases sales to
a market extent. A hardware-store owner conducted an experiment to determine the
part played by extra courtesy in increasing sales. One day, he instructed his employees
to wait on the customers with only ordinary courtesy, not accompanying them to the
door, nor making further suggestions, nor going out of their way to please customers.
The following day, the clerks were instructed to show such extra courtesies as calling
the customer by name, showing interest in the purchase, making a special effort to find
the exact article to fit his needs and taking him to the door. The purchaes that day were
reported to have been three times as great as on the first day.
Customers appreciate extra courtesies. The receptionist at one company’s information

desk not only tries to arrange for the visitor to see the executive desired but also
inspires respect for that company and shows her respect for the visitor himself by
saying, “Fortunately, I have been able to arrange for you to see our Mr. O-and so. In this
field, he’s one of the ablest men in the country. He is also one of our busiest men, but
he will be pleased to see you”. This receptionist not only treats the customer
courteously but also sells the company’s management to him and at the same time
makes it possible for the executive to end the interview if the visitor takes up more time
than necessary.
If properly approached, employees are glad to participate in a program designed to train

them in customer relations. When the customer contact employees of one institution
were shown motion pictures of themselves as they deal with customers, they decided
that they should smile more often, look the customer in the the eye at least once during
the transaction, and that the last ten seconds with the customer were most important for
building goodwill. Furthermore, they discovered that they should never answer for the
customer’s query by saying, “It’s a rule of the store”. The reason for the rule, rather than
a parrot like statement, was more convincing to the customer.
CUSTOMER COMPLAINTS
Complaints of customers should be looked upon as opportunities to cement relations
between the customer and the company. The trained adjustment correspondent or
complaint clerk should not think of himself as an official apologizer but as a member of
the advertising department.
Some companies have a “complaint department”. Any centralized office for the handling
of complaints should be called an “adjustment” or “customer-relations” department or
some equally positive term. When all customers’ complaints are centralized, records
can be kept and policies changed to prevent complaints. One the other hand, every
employee should be taught to do his work so as to build goodwill and advertise the
company’s products and services.
HOW TO COMBAT RUMORS AND PREJUDICES
Rumors and whispering campaigns are especially prevalent during wars and political
campaigns, but they also occur in the business world where they may do much damage
before they die out or are stopped. It is difficult to measure the effect of such rumors.
The manager of a milk company stated that the consumption of milk temporarily
decreased about 20 per cent in one city where certain politicians spread the rumor that
the milk of a large company was contaminated.
Four methods have been used to combat rumors and prejudices:
1. The direct answer to the rumor, in newspaper or other advertising is often best.
Sometimes the advertiser who wishes to throttle rumors by the direct answer also
includes the offer of a reward for proof of the rumor. Many years ago, a cigarette
manufacturer found that a whispering campaign had spread the rumor that his company
had contributed funds to a foreign political group and had discharged all employees of a
racial group. Several years previously the same manufacturer had been the victim of a
whispering campaign to the effect that a leper was working in one of his factories. The
manufacturer of course realized that any advertising that stated the rumor and denied it
would make it known to many people who were ignorant of it. The rumor, however, was
fought by frank advertising that offered rewards for evidence against the rumormongers.
2. Many companies are confronted with the problem of prejudice. Some ignore
prejudicial rumor and advertise only the positive side of the story. Years ago, cigarette
manufacturers did not try to increase the number of cigarette smokers by denying any ill
effects of smoking on the health of smokers. They simply used advertising that included
pictures of famous men and women who smoked cigarettes. Each reader was allowed
to draw his own inference. The joys and prestige of smoking were emphasized without
mention of any dangers.
3. The maligned person or firm can capitalize on the rumour for the benefit of customers
or dealers. A rumor may start to the effect that a firm is owned by foreign interests. The
company then has an opportunity to offer stock to the public as well as to publish the
lists of stockholders.
4. Humor can be an effective weapon. The rumor or prejudice may be dealt with in
exaggerated, humorous manner. Its absurdity may be thus illustrated and proved.
In addition to malicious rumors, many industries have to contend with prejudices that
are perpetuated in all sincerity by person who are ignorant of the facts about a product.
The manufacturers of canned goods must deal with the idea that canned foods are
poisonous. Some people still believe that tomatoes allowed to stand in aluminum ware
are poisonous. Prevalent false notions of this type are the following: Laundries use
chemicals that ruin the clothes; coffee causes headaches; tea is a drink for “sissies”;
playing pool causes crime; and cigarette-smoking by pregnant women produces
unhealthy children. Almost every industry suffers from false notions of long standing,
which educational advertising may help to remove from people’s minds. Advertisers
must contend with these as well as with untrue but short-lived rumors.
IN PUBLIC RELATIONS, ATTITUDES RATHER THAN IDEAS ONLY MUST BE

CHANGED
Many companies have done institutional advertising that gave information about the
company and its goods deeds, on the assumption that sympathetic understanding
would result. Information, however, is not enough to produce good will.
The American Telephone &Telegraph Co and its subsidiaries have conducted

experiments to measure the effects of various kinds of institutional advertisements.
Opinion surveys are made twice yearly so that the companies will know how they stand
with the public. One method of investigation is by comparing the attitudes of a group of
people who have first been asked to read an advertisement with the attitudes of a
control group who have not read the advertisement. Each group consists of 500
persons. Here is the copy of one of the advertisements tested. Under the heading,
“Security and a Fair Return”, it read:
When and wherever you invest your money, you naturally expect two things:
1. lasting security
2. a fair and steady return.
The hundreds of thousands of everyday men and women in all walks of life who
invest a part of their savings in the stock of the Bell System also expect two things:
1. lasting security
2. a fair and steady return
It is management’s responsibility to see to it that the invested dollars of these people

are secure and that, unfailingly, they earn a fair return. These dollars are vital. They are
the dollars we use to build and expand the telephone system.
This advertisement was one in a series run prior to a request for an increase in
telephone rates, the first request which the company had made in twenty five years.
The field survey showed little or no difference in the attitude indexes of the two groups
who were questioned. Almost two-thirds of the people seemed to think that the
advertisement was addressed to investors rather than to customers. About a fifth
thought that the purpose was to show the convenience of having a telephone. Only a
very small percentage connected the advertisement with a company’s need for higher
rates.
A second advertisement that had the same purpose as the first was tried in another
territory. Under the headline “You’re all invited for Thanksgiving” it read: “It’s a date! Kids
excited at a country trip. Father delighted to visit the old folks…so’s mother….and
relieved, too, to escape cooking chores. Amazing, how one simple call can add up to
give so much pleasure. But not amazing at all is how costs add up to give you the
service.
Day to day costs of keeping the service running right are mostly wages and materials.
The money we take in should meet these costs-and also include a profit because the
investors who supply funds for improving and expanding the service want a fair return
for their money. That’s the key to the strength and stability we need to provide good
service now and in the future.
This advertisement proved to be statistically effective in getting across some of the

intended purposes. Certainly, numerous studies have shown that institutional
advertisements, which merely present factual information about a company, do not
always change attitudes. The information must be emotionalized and tied into the
interests of readers.
GETTING PUBLICITY FROM THE PRESS
All editors suspect the presence of “free-space material“ when they look over the
release that comes to their desks. They often discard material with real news value
because the material has not been offered properly. To overcome the fears and
prejudices of editors, some advertisers or their agencies have a publicity department
issue news releases under the names of fictitious organizations, names designed to
convey an atmosphere of noncommercial disinterestedness.
Of course, editors may scorn what they call the “fraud” of the false front bureau or
institute, but they feel just as resentful about the use of the advertising agency’s own
name on the letterhead that offers publicity material. The reason for their prejudice
against many advertising agencies is the fact that some have used their space-buying
power as a “blackjack” to force the publication of publicity material. Hence, editors
suspect that the agency’s name is supposed to be an implied suggestion of pressure.
The best approach seems to be that of straightforward honesty and accuracy in the
'release' material that is really worthy of publication as news to general readers. Some
agencies, such as N.W. Ayer & Son, Inc., have achieved a reputation, for giving
accurate and worthwhile news, but years of effort and many personal contacts were
necessary to accomplish the reputation. Eventually, the name of the agency or
advertiser at the head of release pages may earn a measure of respect and confidence
from auditors.
News releases should be sent only to those editors whose readers might be interested
in the news. The standard Rate $ Data Service will indicate the publications that may be
addressed. Indiscriminate mailings are a waste of money.
Furthermore, releases should not be addressed “to the editor” if it is possible to address
them to a specific person. Lists of the names of staff members of newspapers and
journals should be kept up to date. This also enables the editor to use first-class mail
more effectively for important releases. The use of first-class mailings of typed letters
also tends to force the advertiser to present his material in brief form, and the shorter
the material the more likely it is to gain publicity. However, neither brevity nor length will
gain the advertiser publicity for obvious statements that merely “plug” his product. A
publicity man for an advertiser needs a better nose for news than a reporter, because
the news release is more apt to be viewed with suspicion of the writer’s motive.
Some rules of news writing to keep in mind when writing publicity for a company are the
following:
Observe the modus operandi of news writing. Start your release ina who-what-
when-where-how-why order. Don’t try to be “cute” and write a disguised feature
story. Don’t try to write a confused story, just to make someone read it through to
find out what’s going on. Wastebaskets are so handy...
Don’t write your own headline and expects the editor to use it.
Number and identify every page of copy.
Always type every release double-space. Never single-space. If your use
mimeographed or spriti enclosed releases, check on the job to see that copies are
legible. Smeary or unreadable releases wind up in the waste basket.
Don’t put your company name in capital letters when you use it in the release. Few
publications where you’d want to see your release will use it that way…and it
rquires additional editing.
If the publication date is important to the story for reasons of internal politics, see
that a release date is clearly indicated at the top page of your first copy. Beter, yet,
make it a rule to date every release.
Always ……but always…. Put the firm name and the publicity man’s name at the top of
the first page, with full address and telephone number. May be there is something more
the editor wants to know. If so, he’ll have an easy job hunting you up.
A survey of 500 editors concerning publicity releases indicated that about 20 per cent
want more releases but they stressed the need for more intelligently written releases.
The editor’s strongest suggestions were:
1 have experienced writers

2 give specific facts
3 have specific mailing lists
4 eliminate sales promotion
5 supply sharp photos
6 date all releases
7 back up your claims
Editors, of course, do not like to have sales promotion included in news items. That
should be paid for at regular advertising rates. It is often permissible, however, to state
where the product may be obtained: from the manufacturer, distributors, or retailers.
Readers of news do want statistics about weight, construction, and costs, but they
prefer honest rather than highly retouched photographs. Advantages over previous
products may be included. Technical facts that back up the claimed advantages often
have news value. Readers want to know what a product will do for them – not how
proud the manufacturer is of it.
PUBLIC RELATIONS FOR ADVERTISING MEN
Members of the advertising fraternity have a public relations problem for themselves as
well as for their employers. Many people do not look upon advertising in an objective or
favorable ways that have been presented in this book.
As expressed by James E. McCarthy, Dean of Notro Dame’s College of Commerce,

advertising cannot better its position by pretending that criticism of advertising does not
exist. Although the virtues of advertising, “far outweigh the faults”, the criticism cannot
be ignored. The bulk of advertising is “effective and praiseworthy,” he stated, but the
responsible majority of advertising men cannot ignore the criticisms leveled at the
minority. As he stated: "The real challenge does not come from the public, the
advertiser or the merchant. The challenge comes from within".
Because of the nature of its function in an economy such as ours, advertising should be
determining public trends, cultivating the public taste and even raising the intellectual
tone of society. But it has not been doing so.
Elaborating on the three major accusations against advertising – sameness, lack of

dignity and untruthfulness – Dean McCAarthy said:
Sameness: Here the worst offender is television, with radio a close runner-up in the
infuriating monotony of the oft repeated commercial. What most of us cannot
understand is why a presumably intelligent sponsor persists in antagonizing the public
upon whose goodwill the sale of his product depends.
Lack of Dignity: The occasional impropriety in advertising has multiplied and worsened
into shocking bad taste in both art and copy. The decline of standards of good taste has
been gradual, but it has been so steady that it seems deliberate. You cannot afford it. A
reaction already has set in, for this is one of advertising’s shortcomings that the public is
already doing something about.
Untruthfulness: Advertising as a matter of long practice has depended almost entirely

upon overstatement as the way to express ideas. In our personal lives, we soon learn to
discount the man who is constantly in an uproar, who cannot distinguish between the
insignificant and the important .
There is some reason to believe that the public is beginning to think that for too long
advertsing has been in an uproar over matters that are of little consequence, and that
many of its campaigns are keyed at too high a pitch. The result is resistance instead of
acceptance.
The need for truth in advertising is constantly stressed by editors of our advertising
journals. One leader, for example, condemns the oft-made excuse for exaggeration,
“that it is just advertising”. It seems to me that the danger lies in that last conclusion. So
long as the people who do exaggerated and misleading advertising are willing to
condone it on that ground, just as long will the public be encouraged to think of
advertising as a kind of irresponsible, ballyhoo business where the truth is held in pretty
low esteem. I cannot understand why a copywriter wants to write copy, which he doesn’t
think people will believe. The purpose of advertising is to persuade and convince. At
least I always thought that was the purpose.
We have come a long way from the days when the patent medicine advertiser could
promise a product that would cure everything from corns to dandruff, including cancer
and tuberculosis, and at the same time find any considerable number of people who
would believe his claims. Today the advertiser faces a public that is a lot shrewder and
a lot more intelligent than I think he frequently gives them credit for being so. Of course,
there are a lot of naïve, easily swayed people. But by and large, the opinion makers,
who can kill a product by their disapproval, are becoming more hard-boiled in their
appraisal of what advertisers say.
They are quicker to laugh at exaggerated statements on the printed page, quicker to
turn the dial when their ears are offended by raucous and blatant commercials than
were those people of the preceding generation. In fact, many of them are too skeptical.
They are inclined to look with disbelief on some advertising statements that are
conservative recitals of proven facts. There lies another danger. A public that becomes
disillusioned by too many liars is apt to punish not only the liars but their contemporaries
who are telling the truth.
Leaders in advertising are concerned over the play on psychological insecurities, as

seen in the cosmetic field, that is aimed at the typical adolescent’s worries about his
social status, and in campaigns aimed at arousing fears in parents about children’s
diseases. Too many advertisers of dentifrices and antispectics are still hiring a model
dressed in a white coat like that of a physician, who talks about what doctors
recommend and gives advice of a professional nature – advice that is always favorable
to the product advertised.
Many educators resent the misleading tactics of certain advertisers and therefore warn
students against all, rather than only the bad advertising. Fortunately for advertising,
leaders in advertising recognize the problem and are seeking improvement through
legislation, when necessary, but mainly through self-regulation.
CONSUMER PRODUCT RATING SERVICING
The two best known services of this kind are Consumers Union and Consumers
Research. Their origin stemmed from the depression of the 1930s when it was
assumed that people had so little money that each penny was counted and that
consumers would welcome advice from a service that rated the products on the market.
F.J. Schlink and Arthur Kallet wrote the book 100,000,000 Guinea Pigs, and Stuart
Chase and F.J Schlink wrote 'Your Money’s Worth'. The latter was called the Uncle
Tom’s Cabin of the consumer movement. These were, in part, a crusade that told
consumers not to believe all the advertising they read. In 1936, consumers Union split
off from Consumer Research and set up its organisation. CU, as it is usually called, now
has approximately 750,000 subscribers and CR, perhaps 100,000
Briefly stated CU operates in the following manner:
It decides what goods to test on the basis of its reader’s demands or it may take a look
at a product that has recently undergone big technical advances. It may examine a
product because advertising claims are “particularly exuberant”. It also decides what
brands to test on the basis of their popularity and availability. Shoppers for CU, about
170 part time workers in 75 to 80 cities buy the products to be tested, a retail store.
They forward the product to the laboratory.
Generally, the readers of the consumer product rating reports are largely from the
higher income, better-educated groups. Among the readers, some take the reports very
seriously and buy those items that are given “best buy” ratings; most subscribers
probably think of the ratings as simply another kind of information about a product and
then make up their own minds on the basis of a whole complex of influences.
MANY MEDIA POLICE ADVERTISING SUBMITTED TO CURB OBJECTIONABLE

COPY
The extent to which space and time media curb advertising abuses varies with the
individual publisher or station. Certain owners have sought to uphold high standards in
the belief that advertisers recognize the benefits of protection against unfair competitive
statements, superlative comparisons unwarranted claims, and “bait” advertising. Some
media owners spend and lose many dollars each year because they reject advertising,
which they consider objectionable. They believe that their policy of self regulation
results in benefits to them because it raises their stature with ethical advertisers and
with the members of their audiences.
One of the oldest and most effective advertising watchdogs is the New York Times.
Advertising Acceptability Department, offspring of a policy laid down in 1896 by Adolph
S. Ochs, when he took control of the newspaper. He believed that a newspaper should
seek to have intelligent people take it into their homes and find no advertising that is
misleading, untrustworthy, or offensive to persons of good taste.
Currrently, the department revises, rewards, or rejects about 1,700 advertisements each
year. Rejections run about 10 percent of this number. Three fourths of all copy revisions
are made in retail advertisements. Every effort is made to work out art or copy changes
with the advertiser or his agency. Examples of revisions made are shown in Table 35-1
Many of our leading magazine publishers maintain defined ethical standards for the
advertising that is submitted for their columns. Good housekeeping, for example, has
developed its consumers’ guaranty for more than a half century. The magazine’s
guaranty is a product endorsement indicating assumption of a definite liability by the
publisher. “If any product or any service is not as advertised herein, it will, upon request
and verification of complaint, be replaced or the money paid, therefore refunded.
The Curtis Publishing Manufacturing company’s copy service has operated more than
sixty years. The Copy Service Division personnel read every advertisement submitted
and use persuasion to effect any needed changes. Curtis copy service protects readers
and advertisers from the degrading, ruinous effects of advertising at its worst, strives
constantly for the intent and techniques of advertising at its best.
Table 35-1
Copy as submitted Changed to
“The most talked of motion picture in “One of the most talked-of motion
years” pictures in years”

“The savings – more appealing than
“The savings –greater than ever” ever”
“Thousands in New York City have “Carpet package specials”
saved with our famous carpet
packages” “Designed to keep you delectable all
“Never before such a fabulous way to over –even in the simmering summer
keep you delectable all over” heat”
“The lowest price ever offered” “The lowest price we ever offered”
“The best buy in town” “one of the best buys in town”
“Superior to any you’ve seen at this “Superior to what you’d expect to see
price” at this price”
“The finest coat we have ever sold”
The finest coat we have ever seen” “It was a charm to insure good hunting,
“It was a charm to insure good hunting, good fighting, good living”
good fighting, good loving” (a perfume) “Paris-inspired - but so nice to your
“Naughty – but so nice to your figure” figure”
(underwear)
Some of the radio and television networks have developed extensive codes for
advertising. Unfortunately, some stations have not signed the code, and therefore
practices vary with the ethical standards of the individual managements. Of course, the
Federal Communications Commission keeps an alert ear for broadcasting malpractices
of all kinds. The Food and Drug Administration and the U.S. Post Office Department
maintain strict standards in many advertising fields. The national and local Better
Business Bureaus conduct analysis and investigations of advertising and selling
practices in the major media.
Much improvement in advertising practice has taken place during the last few decades
but more is still to be done. The big problems lie in the “gray” area of advertising where
advertisements, though not legally provable as deceptive, nevertheless stretch the rules
of truth, public credibility, and good taste. Too many advertisements that are insincere
and explicit gullibility still appear in publications and on screen. Advertising men have a
large public relations problem before them. They are bound to take an active interest in
consumer attitudes toward advertising, to view their work honestly and objectively, to
improve their practices wherever possible, and to convince consumers that advertising,
rightly used, benefits consumers as well as publishers, advertising agencies, and other
members of the advertising fraternity.
The Advertising Council, Inc., 24 West 45the St., New York, is a business association
intent on selling beneficent ideas and ideals to the American public. Essentially, it is a
pool of talent that includes voluntary contributions and creative abilities of constituents
and affiliates: advertising agencies, national advertisers, and all advertising media. The
primary purpose is “to provide the means of marshaling the forces of advertising” for the
common good. It was started as the War Advertising Council early in 1942. The Ad
Council has fathered over 300 public-service campaigns, from Fat Salvage to Fight
Tuberculosis. During World War II, it helped stimulate the planting of 50 million victory
gardens; salvages 538 million pounds of waste fat, 23 million tons of paper, and 800
million pounds of tin; sell $800 million worth of war bonds; and recruited manpower for
industry, nurses for hospitals, men and women for the Armed Forces. It has averaged
$100 million worth of advertising per year, an output somewhat larger than the
combined budgets of Procter & Gamble, General Motors, and General Foods.
Two of its recent campaigns have been against juvenile delinquency and slums. The
antislum campaign, requested by the American Council to Improve Our
Neighbourhoods (ACTION), aims both to rebuild present slum areas and to “fight the
deterioration of homes and neighbourhoods which breeds the slums of tomorrow”.
Among the Council’s current campaigns are Better Schools, Future of America, Civil
Defense, Community Chest, Crusade for Freedom, Engineers Wanted, (Home) Fire
Prevention, Forest Fire Prevention, Group Observer Corps, Red Cross, Religion in
American Life, Stoc Accidents, and United States Saving bonds. For some campaigns,
the Council provides “ammunition” which salesmen of business firms may want to leave
with prospects on their regular calls. The Future of America – a 24 Page booklet on
what the Council calls the “long-range opportunities….for every business and
individuals”. The Miracle of America – a campaign booklet providing up-to-date facts on
the economic system (Cost of either The Future or the Miracle is $5 per 100, plus
handling and shipping charges). Then – for free – are one call, a leaflet on the Ground
Observer Corps, and After High School What? A pamphlet to persuade students to go
in to engineering or related fields. As for Better Schools, the Council offers a 44 page
working guide for local use on “How Can We Advertise School Needs?” and “How Can
We Get Enough Good Teachers?” a 92 page working guide for citizens’ school
committees. (Price on quantities of these guides and orders and inquiries for other
material can be obtained form the Council.)
9/20/22, 10:23 AM Size and Frequency
Size and Frequency
Many campaign plans involve a choice between size, frequency, and coverage. The
budget is fixed; it will permit so-many insertions of such-and such size; or twice as many
insertions of half-size; or twice as many insertions of full size if range of media is
reduced. On what basis should these conflicting claims be reconciled?
The basis, which will be examined in this chapter, consists of the following sequence of
considerations.
1. In the light of the circumstances and objectives of the particular campaign, a broad
decision must be reached about the required balance of the elements of impact and
repetition in the campaign. For the moment we will consider this balance in terms of a
single medium such as a new paper; in this case it will consist of larger spaces for
impact and smaller for repetition. In practice the balance may be found by a
combination of media, e.g., press for impact and posters for repetition; but it will be
easier to trace the process of decision in principle in terms of a medium such as press
which allows with in its compass for both elements.
2. Next, an assessment must be made of the space sizes properly required to carry the
agreed advertising message; in impact ad in repetition form respectively.
3. Third, an assessment must be made of the required frequency with which the
potential market should be reminded of the product through advertising.
4. The ideal size and frequency schedule for the product must now be applied to the
media suitable for the campaign in character and atmosphere. Those which are best
value will be chosen first, and the list widened at the budget permits.
5. It is essential to give adequate coverage to each medium used, and to avoid giving
too thin a schedule of size and frequency to the primary media, simply in order to widen
the list.
6. In the opposite direction it is essential to avoid giving any medium an excessive
coverage either in size or frequency; this involves a diminishing return of advertising
value.
Let us now examine these successive stages in detail.
1. Impact and repetition.: The decision between impact and repetition is one of the most
fought over battlegrounds in advertising practice. It is not a theoretical decision, but an
entirely practical issue arising out of the particular circumstances or objectives of the
campaign under consideration. It is not difficult decision to take, perhaps, when faced
with a clear-cut advertising job such as launching a new product or an entirely fresh
appeal for an old product. In practice, however, the problem arises more often of
selecting media for products, which have been on the market for years and which may
have already achieved what appears to be a stable degree of domination in a part of
their market. Moreover, at this particular moment the advertiser many have nothing
outstanding or important to say. How far then should he prefer the drip-drip-drip of
continuity to the more vigorous impact of larger spaces? And how far should he carry
the process of reducing size to get even greater frequency?
The key to the answer lines in realizing that the real threat to any successful
manufacturer of a branded article is not so much that his product will fade out
of the public’s mind, as that it will be supplanted these by a competitor with
something new to say or offer, or with a greater willingness to invest in a large
advertising budget with the object of gaining a better foothold in his market.
Markets are continuously in a state of flux with new comers pushing in and
new ideas ousting the old ones.
If we are considering (as is normally the case) a complete campaign,

designed to last at least three months and possibly a whole year, it seems to
the writer that few advertisers can afford to do without some measure of
impact space during so long a period. Their reputation with the trade, their
goodwill with the public, the general knowledge of the product’s performance,
all require to be noticed consciously during such a period. Reminder, by its
very definition affects only those with previous knowledge; an advertiser who
does nothing during a year to secure new customers, nothing to win over the
new generation to adults or housewives who come of age each year, nothing
to open new accounts, must surely he risking that his market will be smaller,
through the sheer process of death and attrition, at the end of the campaign
period than at the beginning.
Therefore it appears important that every campaign period should include an

element of impact as well as one of repetition, and most advertisers
experience shows that this so.
This is widely accepted practice which seems to work well enough. The
explanation why the system should be good may be along the following lines.
For each product a certain proportion of the public have a ready and easily
awakened interest. They will notice even quite small advertisements, which
appeal to this interest. But in order to reach more and more people the
advertisement has to penetrate progressively increasing layers of resistance
(which account for the factor of diminishing returns in advertising , noticed in
earlier chapters.)
The value of the sequence of large spaces followed by smaller spaces now
becomes clear: once the larger space has widened the circle of interest in the
product and introduced it to a new public, the smaller spaces have a wider
field of ready interest to work upon and thus become more effective. It may
take two or three advertisements to turn resistant interest into favourable
interest and thence into buying action; but if this result can be achieved with a
proportion of smaller space then the process becomes more economic.
2. Assessing the required size: The first step in deciding size and frequency is to settle
what is the proper size of advertisement (or number of sites, or length of films, etc.)
required to do the particular job defined at the outset; or the combination of sizes
required for impact and continuity respectively. Here the creative departments must
have their say. Some campaigns require large spaces: it may be necessary to give
plenty or room for copy, of scope for large half-tone blocks; it may be desirable simply to
he big for tactical reasons. Usually the requirements of size fall within certain
reasonable limits up or down, but them may actually require a particular area or shape
and no other. Almost always, however, both the presentation and the tactics of the
campaign set some limits; it is seldom that the media department will be told “You may
have anything between a half page and a two inch double.” The limits of size thus laid
down will control the media department’s scope for maneuver.
The creative department’s decision cannot necessarily be final. What is

wanted must be tempered by what is available in the media which offer the
right character, atmosphere and value for money to suit the particular
advertiser’s case. The best possible decision must therefore be reached
between art and media considerations.
3. Assessing the required frequency. The next step toward the decision is to assess the
proper frequency of insertion for the campaign. This process consists of two
considerations:
a) The rhythm of the consumer purchase of the product;

b) The need(already mentioned) to ensure that the advertiser’s message stays fresh in
the public’s mind, by not having too long an interval between reminders.
The former factor usually controls the maximum frequency, and the latter
factor the minimum frequency. If a product is bought weekly, as groceries are,
a weekly frequency, especially when synchronised with the main buying
period of the week, is the ideal. Anything more is probably excessive; often,
however, the advertiser has to content himself with less. In theory, the more
people one can remind of the brand name or product just before they go out
shopping for it, the better; ideally, therefore, the weight of advertising should
be brought into coincidence with the maximum concentration of shopping.
Where products are bought at infrequent intervals, there may be a seasonal

factor which lays down some measure of frequency. For instance since home
painting is largely done in the spring, and during off-duty time, the Spring
bank holiday seasons become very important. The paint will probably be
bought on the Saturday before Easter, whitsun, and August bank holiday. This
bespeaks a strong impact in three insertions just before these holiday.
At this point the second factor comes up for consideration: how soon will the
impression created by the message fade from the mind? Ideally, a further
insertion or more should be interposed between the buying peaks at such
interval as will on sure the brand’s story is kept fresh in mind. Also there will
be some buying between the holiday seasons. In this example, the solution
may be to have strong spaces just before the holidays and perhaps one or
two insertions in between, but the latter might be smaller and more of a
reminder.
When a product of very occasional purchases is being considered, like a

refrigerator, the frequency of buying is clearly unimportant. All that is required
is enough frequency to carry the campaign’s message over form one insertion
to the next, to keep the message fresh in the mind and so ensure that it takes
root and is not supplanted by alternative claims from a competitor. There may,
of course, be special seasons when buying is concentrated but this is usually
the occasion for concentration of impact rather than for frequency.
4. Applying the size and frequency schedule to the media. Once the required space
sizes and the proper frequency have been decided, the next step is to take the primary
medium or combination of media, and apply this ideal schedule to each. There may
need to be minor modification to accord with availability of space resulting from the
particular form or circumstances of each chosen medium. An impact space, which may
be a half-page in a full-size daily newspaper may be converted to a full-page in a
magazine. If the chosen repetition size does not yield good positions in one of the
newspapers owing to its special make-up, a variant will have to be chosen. But the
variations will be of minor degree not affecting the broad decision s on size and
frequency.
It must also be remembered that since most media duplicate each other to
some extent, the element of duplication is also an element of repetition. The
25% of readers of paper X who also see papery will see two insertions if both
papers are used, and this can be taken into account in assessing frequency
over a multiple schedule, especially when the question is one of using
supporting media, such as smaller circulation magazines in support of mass
newspaper or larger circulation magazines.
It is therefore a good plans when a fairly large media list is being used to
“stagger” insertions so that in any given week one paper or another is
carrying an insertion, rather than to arrange that all media carry the
advertisement in the same week and then have a complete hiatus until the
frequency permits another insertion in all papers. For example, if six
publications, A,B,C,D,E and F, have monthly insertions for a product, it is
better to arrange the schedule thus.
Week
Publication 1 2 3 4 5 6 7 8 9 10 11 12
A X X X X X X X X X X X X
B
C X X X
D
E X X X
F
Than thus:
Week
Publication 1 2 3 4 5 6 7 8 9 10 11 12
A X X X
B X X X
C X X X
D X X X
E X X X
F X X X
Generally a monthly frequency is regarded as the best minimum, an a weekly
frequency is regarded as the maximum necessary for products bought weekly
or less frequently. A monthly frequency in a media list with normal element of
duplication should give adequate reminder to keep the message fresh. It is,
however, essential to emphasis that it is very dangerous to accept may sort of
rule of thumb; each case, should be considered separately in the light of the
clearly defined campaign objective, the competitive position and so on. If
there is strong competition within the field, this increases the risk, that the
advertiser’s message may be supplanted by some rival, so that greater
frequency may then be needed to keep the continuity.
The combination of impact and continuity usually means that a campaign

involves a combination of larger and smaller spaces; sometimes in as many
as three combinations of size. The smallest size will be the repetition element
designed to refresh the deeper impact created by larger sizes. A third element
may be introduced by the need for one very big dominant space, designed to
act a a focus for impressing the retail trade and as a means of giving the
campaign an initial momentum. The usual arrangement of such a combination
of spaces should provide for:
The dominant space at the beginning of the campaign, to create the

maximum moments of interest among the widest possible public as quickly as
possible;
Following up with some of the larger spaces to rain force this momentum on a
broad front and add some new impact;
Following up with the smallest size to maintain interest;
A revival of the momentum, by introducing a larger space at reasonable

intervals.
Example. Suppose a 20 week campaign justifies using in each newspaper

included
One half-page
Three 11” x 3 cols
Six 8” x 2 cols
Giving fortnightly frequency over all for a product with a weekly buying
rhythm. The probable course would be to divide the media list into two
roughly equivalent groups, A and B, and the sequence of spaces would then
be:
Publications ½ page 11 x 3 8 x 2 ½ page 11 x 3 8 x 2 Week

week
1 X X X X X X 1
2 2
3 3
4 4
X X X X
5 5
6 X X 6
7 7
8 8
9 9
10 X X X 10
11 11
12 X X 12
13 13
X X
14 14
15 X 15
16 16
17 17
18 18
19 19
20 20
With some media, of course, such an arrangement is not possible because

they prescribe their own frequency. For reasons of audience building, a radio
programme will be weekly or even daily. For reasons of booking convenience,
cinema filmlets will appear daily every week or daily for a week at fortnightly
intervals. Posters are up all the time and may be seen daily or twice daily.
This excessive frequency is unnecessary but cannot be avoided; the point is
that the medium is so inexpensive o the basis of assumed daily or twice daily
notice of it, that any wastage due to excessive frequency can be easily
absorbed within the very economic cost.
5. Satisfy each medium before passing on to the next. We now come to one of the most
important principles in media planning; do one thing properly before moving on to widen
the coverage. We have settled the proper balance of size and frequency in the first
three steps. The next step is to calculate the best media in order in value. By “best
media” is meant those which confirm with the character and atmosphere required to
carry the advertising message of the particular campaign. There will probably be a
number of likely choices, and these will then be evaluated on the basis of quantity and
cost of the right type of coverage.
Starting with the first choice in this order of value, make sure of giving this
medium the full required schedule. And so on down the list of value allowing
for duplicated coverage, until the widest coverage of the defined market is
achieved, with each medium having its full proper schedule of size and
frequency of insertion. Do not grasp for extra coverage at the risk of doing an
inadequate job all round. The advice is harder to follow than it sounds; there
is always the temptation to try to satisfy one extra point of view or one extra
marketing ambition. Make certain of making your mark at one point and do
not be greedy to make your mark ever where.
6. Avoid excessive coverage. Finally, however, the caution must once more be repeated
against over-using any one medium. It is the measure of skilful media selection and
planning that it must steer a course between Scylla of not doing a proper job in the
chosen medium and the Charybdis of overdoing it. We have already seen that increase
of space size produces a diminishing return in quantity of notice (thought effects of
prestige and impact are enhanced). It is also clear that excessive frequency is likely to
entail a similar reduction of value. This is not only true of individual media (e.g., a single
publication) but a types of media. Therefore when newspapers as a group or when
publication media as a whole (not forgetting that element of duplication which adds a
measure of frequency that may be overlooked) have had a proper coverage, it may well
be useful to proceed to another type of medium which introduces fresh kinds of impact
such as sound (i.e., television, radio and films), movement (such as films) colour (such
as poster and films) which will give the message new life and vitality.
In the same way once the primary need of building up the product’s reputation
on the widest front (by means perhaps of mass dailies or magazines) has
been satisfied with sufficient size and frequency, it may be desirable to tackle
some particular part of the selling problem with special intensity in selective
media. Thus, in selling a dentifrice, if sufficient has been done in the primary
selling job, a special campaign directed to children in children’s media might
be added. If in selling a bee enough has been done to saturate the general
reputation-building media, a secondary campaign to catch the home going
workers, the television market, the football crowds or some other limited but
rewarding part of the market might be run, in a suitable selection of special
media. In each case, however, the rule applies of doing each job – both the
primary and secondary job – thoroughly, and not attempting to do too many
jobs with a resulting insufficiency of size or frequency in any of them. The
subject of combining media to achieve a combination of campaign objectives
is dealt with more fully in the next chapter.
***
9/20/22, 10:22 AM The Role of the Advertising Agency
THE ROLE OF THE ADVERTISING AGENCY
One of the most important influences on how – and on how effectively the billions of dollars spent
for advertising are spent is a specified service organization known as an advertising agency. The
advertising agency performs a wide variety of different types of advertising and marketing services
for their clients who are advertisers like your own organizations.
It is important for an executive with even partial responsibility for advertising decisions to have a
clear picture of the nature of and the strengths and weaknesses of advertising agencies. That
knowledge is called into play when you consider such vital questions as these:
Should we hire an advertisement agency? A new advertiser has the problem of deciding whether
or not to use the services of an advertising agency. That decision, if affirmative, may lead to a
whole series of closely related sub decisions. If he decides to hire (or “appoint”, as it is often
euphemistically termed) an advertising agency, the advertiser has to determine what type and size
of agency is most likely to provide the best “fit” to his needs. From a list of a number of agencies of
that type and size, he has to select the one which he feels will do the most effective advertising job
for him.
What agency should we use for our new product, or to handle our advertising in a new field or
industry? An advertiser launches a new product, or enters a new field or industry as a
consequence of a diversification move or merger. Should the new advertising assignment be given
to an existing advertising agency already serving the advertiser, or should it be given to a new
agency? If there was an agency-client relationship already in existence prior to the merger, the
question of whether or not to continue with that agency needs to be answered. This is a particularly
important question where the more places an advertiser who has been primarily active in industrial
marketing in the consumer-product field, or vice versa.
What should we do about an agency solicitation? All advertisers are expected continually, in
business-paper advertising and through personal solicitation, to the claims of advertising agencies
that are not but would like to be that advertiser’s agency. In their sales talks and “presentations”,
the agency soliciting an account often seems to offer more or better service than the advertiser,
perhaps, is receiving from his present agency. How far should an advertiser go in exploring those
claims? If the claims seem true, should the advertiser move his account from his present agency?
Or should he instead try to achieve the same end, in terms of increased service, by stimulating his
existing agency to supply it?
To answer questions like these require some understanding of what advertising agencies are, how
they work, what types of agencies exist, and related matters. It is the objective of this chapter to
introduce the reader to the advertising agency’s operations, and thus lay a foundations for
subsequent discussions in later chapter of specific problem-areas in advertising agency-client
relationships.
An advertising agency is a service business, providing a service which is essentially intangible:
Many manufacturing executives find it difficult initially to understand what an advertising agency is
and how it “works”. The first thing to not in trying to understand the role of the advertising agency is
that an advertising agency is primarily a service business. Unlike more familiar service business
like banks and insurance companies, however, the service provided by an advertising agency is
essentially intangible.
Advertising agencies operate in a universe of people and ideas. In this they differ from the
manufacturer whose universe is made up largely of materials and machinery, operated and
handled by people to produce the company’s products. The difference here is an important one,
which extends through the balance sheets of the two types of organizations. The major assets of
an advertising agency lie in the combined experience the individuals in the organizations have
accumulated. The experience was developed as they prepared and executed advertising of a wide
variety of types, for a variety of client organisations. The balance sheet of an agency does not
typically include many assets other than office equipment and cash in the bank no factory
buildings, no expensive machinery, no in-process of finished goods inventories.
When you hire an advertising agency, the effect is to add to your staff additional specialized
personnel who are qualified by their past training and experience to help you increase the
effectiveness and productiveness of the money you spend for advertising. Some people in the
advertising agency business make very large salaries, a fact, which has been published and
sometimes emphasized in popular novels, movies etc. Where there is so much smoke, there must
be fire – which raises this important question: Can you afford to hire an advertising agency? Before
that question can be answered, it is necessary to explore briefly the subject of advertising agency
compensation.
The source of an advertising agency’s income:
A manufacturer who operates out of a small and unpretentious office is often impressed
(sometimes unfavourably!) by the obviously furnishings in the offices of some advertising agencies.
Paying for part of the agency’s overhead, rent, payroll, etc. is naturally going to use up some of the
money he spends for advertising. Should he spend his money through an agency, or should he
spend that money direct and thus save the cost of the agency’s services?
Questions like these are good questions, but the answer to them is often not as clear or simple as
it seems. In order to answer them, attention must be focused not on the total costs of advertising
agency service but on the additional costs, if any which the use of an advertising agency will
involve as against the expenditure of the same number of advertising dollars on a direct basis
without agency participation in the expenditure. The difference is a vital one, because of the nature
of historically established advertising agency compensation methods.
An advertising agency traditionally derives its basic income from “agency commissions”. Those
commissions, for the most part, are paid to the advertising agency by various advertising media
(e.g., newspapers, magazines, radio or televisions stations or networks, etc). Agency commissions
is usually established at or near the level of 15 per cent of the “card” or “list” price of the space,
time or other facility purchased.
To be sure you understand how the commission is derived, let’s use a specific example is
previously mentioned, a full-page four-colour advertisement in LIFE cost $39,500. if you as an
advertiser brought a one-page four-colour single insertion in LIFE direct from the publisher you
would be billed the full published rate of $39,000. However, if you had the ad prepared for you by
an advertising agency which placed the ad with the publisher of LIFE, the agency would be billed
for the rate of $39,000 less 15% agency commission. That commission of $5,925 would represent
the agency’s gross income on the creation and placement of that single ad. From your viewpoint as
an advertiser, the effect of this compensation method is clear. It would cost you no more dollars out
of your total advertising budget (or appropriation, as it is called), for advertising space if you used
an advertising agency that would if you did not.
You may well ask: Why should advertising media pay my advertising agency for services
performed by the agency for me, the advertiser? The answer is buried in the historical
development of the advertising agency, and would require more space here than its relevance to
the subject of this report warrants. What you should remember is that, illogical or not, that is the
basis of most advertising agency compensation generally.
For a more complete picture of the compensation question, we might note a few exceptions, which
introduce added costs to the use of an agency. Some advertising media (the large direct-mail
house, for example), do not grant advertising-agency commission. If your places some of your
advertising through non-commissionable media, the invoice which you receive from your agency
for such advertising is likely to consist of two items, each identified. The first is the base cost which
represent the sum, which the agency paid out of its corporate pocket to the media. The second is
an additional figure, representing agency commission. In that way the agency receives the same
relative gross income from the advertising it places, as it would have received if the media granted
commissions to agencies. It is customary also to add agency commission to various other non-
commissionable expenditures made by the agency for its advertiser-client, such as the cost of the
engravings used in advertisements (purchased by the agency from a photo-engraving house), and
the cost of the finished artwork from which those engravings were made.
Some advertisers tend to resist and resent the practice of agencies’ adding an agency commission
to non-commissionable items. For example, the agency may buy artwork, engravings or
typographic composition, or prepare a portfolio for the use of your salesman. Any activity of that
type costs the agency money, in terms of the time and overhead associated with the activities of
skilled and experienced people in performing such specialized tasks. Agencies pass along the
costs involved by adding an agency commission to the cost incurred, or by charging a special fee
for the service. You should be alert to the possibility that the fee or commission may be out of the
line with the agency’s costs. You should not, however, expect the agency to provide such service –
on which there is no commission from a media, nor any other income for the agency to use to
offset its costs – without charge. Such charges are an established trade practice.
Not the vital importance of paying agency commission on all non-commissionable media. If such
expenditures were not commissionable, the agency would often be in the position of having to
choose between two or more media, with significant difference in the agency’s own income as one
influence on the decision. Since all media expenditure carry the same commission, whether it is
the policy of the media to pay an agency commission or not, the agency’s decision is influenced
only by its judgment as to what contributes the soundest media approach to achieving the planned
objectives sought by its client.
Agency commission represents gross income, within which a profit-provision must be made:
It is important to remember that the agency commission, whether paid to the agency by a media or
whether added to the client’s invoice and paid by the client in the case of non-commissionable
media or non-media advertising expenses, constitutes the gross income and not the net income of
the advertising agency. Out of that gross income, all of the expenses of operating an agency is
typically its payroll account. In addition to salaries, which often represent as much as half of total
agency expenses, such other items as rent, heat, light, telephone and telegraph, postage, and
travel and entertainment costs must be paid. There is, in addition, a further “cost” which should be
recognized.
An advertising agency, like a manufacturing organization, is in business to make a profit. An

agency can realize a profit only if the total of all its gross income. The management of an
advertisement agency typically plans for achievement of a planned-for profit margin by the process
of reserving a portion of anticipated income from a given client (on account) for profit, and
budgeting the remainder over various expense items involved in serving the account. This
tendency, to take a “slice off the top” of total income from an account as profit, differs from the
profit-planning approach of some manufacturing organization. It is rather general in advertising-
agency management.
The amount and quality of advertising service which you as an advertiser can expect from an
agency depends directly on the size of your total expenditure:
Now to arrive at accurate perspective on what you as an advertiser can expect, in the way of
service, from an advertising agency you hire, let’s mentally transpose ourselves to the agency’s
side of the desk. Assume that you are the president of an advertisement agency, considering an
account-present or perspective – in terms of how important that account is to you or would be if
you had it, and of how much service you could afford to give the account if it wore “in the shop”.
What criteria do you use? A very simple one – a rough estimate of the potential gross and net profit
the account would provide.
Suppose that the account in question has a total appropriation, you estimate, of $100,000. That
represents gross income of $15,000. What would it represent to you in real profit – that is, in net
income? Assume that your agency does its profit – that is, in net income? Assume that your
agency does its profit – planning in the expectation that it will retain as profit after taxes, 2 per cent
of its expenditure. In order to have 2 per cent after taxes, however, you need about 4 per cent
before taxes. Note that is 4 per cent out of the total of 15 per cent you receive as commission in
other words a little more than on –quarter of the total amount you receive as commissions you plan
(or hope!) to retain as before-tax profits in order to have about one-eighths of that income as your
after-tax profits. (There are two wide variations in the earnings ratios of different types of
advertising agencies and of different sizes of advertising agencies. The 4 per cent before taxes –
per cent after taxes figures used are reasonable figures for any agency in the moderate size range
– that is, with total billings in an area from 5 million to 9 million, and with gross income at about 15
per cent of total billings.).
The purpose of this relatively long example is to make an extremely vital point. You as an
advertiser approach an agency, and discuss with the principals of that agency the possibility that
they may be appointed to handle your account, which you estimate will total $100,000 a year. If
you appoint them, you will be creating for yourself, in effect, a “service bank account” in the amount
of $11,000 a year. (The $11,000 represents gross income of $15,000 reduced by profit provision of
a $4,000 before-tax sum.)
You are entitled to know just how much in the way of what kind of service you will receive for that
$11,000. the agency will (or should) tell you. You should be on guard against being “over sold” –
against being promised $20,000 or $30,000 in service. You know from the above figures that the
only way an agency can deliver that much service on an account your size, is for the agency to
lose a substantial sum of money in serving you.
As a minor exception to the above comment, we might note that some agencies – perhaps most
agencies – realize little or not profit in the first year or two that they handle an account. There are
substantial non-recurring costs involved in acquainting the agency team with the particular
problems of the advertiser and his industry. Particularly on an account, which is estimated to have
substantial growth potential, a deliberate policy of “investment spending” (i.e., spending in service
and in direct costs a sum in excess of commission income) is not unusual. But mark this well: it is a
very different thing for an agency to have a planned policy of investing in new accounts in the first
year or two of serving them, and for an agency to promise continually to provide more service than
the commissions and/or fees involved can pay for.
While commission income represents the major source of agency compensation, there is an
additional method of working out the agency’s income from an account, which warrants mention. In
some cases, the cost of preparing a client’s advertising would be far in excess of the commission
income involved. Such a pattern is not usual in the case of advertisers with multiple product-lines,
using a variety of different specialized business publications. Such publications reach selective
audiences. The circulation of each is far smaller than the multimillion copy circulation of some
consumer publications. The cost of a page of space (and, therefore, the commission on a page of
space) is correspondingly small. On that type of operation, it is not unusual for the advertiser and
the agency to agree upon a service for handling the account. Often commissions earned on
advertising placed by the agency are credited against and hence reduce the net fee the advertiser
must pay. The point to note here is that the advertising agency, like the advertiser, is in business to
make profit and is entitled to do so when soundly managed. If the amount of expense involved in
handling a particular advertiser’s account (including time salaried personnel, overhead items, etc.)
is in excess of the commissions which would be generated by the amount of advertising in
question, the agency is enlisted to and will typically insist upon a fee in addition to commission
sufficient to reimburse it for its costs and leave a profit for the agency’s management.
Against the background of these general comments about the nature of the advertising agency, it
would be logical now to move into a consideration of specific agency types and of factors involved
in the selection of an agency. Before you as an advertiser can discuss intelligently with an
advertising agency whether you are or are not interested in their services or whether they are or
should be interested in handling your account, it is necessary for you to have in mind at least an
approximate dollar figure which represents a preliminary estimate of the size of your advertising
account. Therefore, it seems desirable to proceed a more specific discussion of agency types and
selection problems with an examination of some facets of the vital question which is the subject of
the next chapter: How much should you spend for advertising?
9/20/22, 10:24 AM Three Basic Principles in Campaign Planning
Three Basic Principles in Campaign Planning
The late Sir William Crowford propounded the most concise yet complete recipe for good
advertising in a three-word precept: Concentration - Domination - Repetition. It applies over the
whole field of marketing and advertising, in the design of advertising layout –and certainly not least
in the media plan for an advertising campaign. In longhand it may be translated into the three
fundamental rules of an advertising plan:
1. Do not disperse your emphasis or your appropriation or your advertising design;

2. Be sure of being the biggest factor in your market at some point; be dominant with one appeal
out of the many which your product and its competitors can advance; be dominant in some form of
media if you cannot be dominant in all; be sure that some one factor emerges vigorously from your
advertisement design.
3. Since advertisements have to create continuing habits if they are to reward the advertiser who
invests in them, it is not enough to stop after a single impact or jump about from one advertising
objective to another, or from one product appeal to another, or from one set of media to another.
The precept sounds so simple, as well as so sensible, that it is surprising how often it is not
observed or has to give way to some conflict of intentions on some over-ambitious desire to attract
everybody all the time.
The consideration of this context is limited to the media plan within the campaign plan, but there is
no better way to outline the principles of media planning than to examine Sir William Crawford’s
three factors.
Concentration. The first of his three elements is probably the most important.
The greatest (and most frequently encountered) mistake in advertising is excessive dispersal of
resources. A product may have several good selling points but it is wise nevertheless to
concentrate its advertising campaign on making a thorough conquest of the market with one only:
the one that is chosen for its maximum effectiveness in the particular marketing and competitive
circumstances of the time. The public does not readily understand two equally good points put to it
simultaneously, though it can focus on, and accept, two points successively. If you throw two balls
to a person he probably will not catch either of them, when he would easily have caught one. It is
too much to expect the public to make the mental effort of concentration for you; you must do it for
yourself. It is the advertiser’s job to make it easy for the public (who, after all, have plenty to think
about apart from his particular arguments for his toothpaste or his soap or his store) to understand
the one point which makes his product specially good for a type of customer or a type of purpose.
The trouble is that advertisers tend to be too greedy in their objectives. An emollient may be
particularly good for the hands, but the advertiser cannot also resist saying that it is good for the
complexion, and for sunburn, and for a hundred and one other uses, for which it is also quite
properly to be recommended.
A hot drink may have its best market in the evening, but the advertiser finds it extremely difficult to
refrain also from recommending it at elevenses, for nursing mothers, on picnics, and for invalids,
having had some direct evidence of its success on all these occasions. In selling a toothpaste it
may be much more valuable to concentrate on persuading young people of the late teenage, who
are just forming their adult habits for life, and particularly the young women who are more
conscious of these matters; but the advertiser cannot resist also the temptation to try the much
more difficult job of changing the settled habits of older people, or to tackle the quite different and
far more short-term custom of children.
Here are some examples of the risks of dispersal of aim. The positive side of the case is the
advantage of building up a product to have in the mind and memory of a large public, the complete
answer to one uncomplicated need, and of concentrating on filling this requirement and on nothing
else.
In the field of media selection the principle of concentration equally applies, partly in carrying out
the concentration of the marketing and presentation policy and partly in the quest for outspending
competitors and making a strong impression on the public in a given medium.
Taking first the former of these two contexts, clearly if the marketing and advertising objective is
defined as being a certain type of customer, then the media planning will concentrate on reaching
this section of the public. In the sphere of mass advertising, this is a question of focusing, as well
as the case permits, on a general area selected from the whole public rather than picking out a
very precisely defined section. The mass media themselves are largely not capable of very sharp
definition; but there is considerable value in narrowing both the target and the aim as far as
possible, so as to ensure a better and more economical use of resources. Where the marketing
target takes the form of a specialist or geographical group, it may prove much easier to select
media so as to achieve a parallel concentration.
The second, however, of the two contexts stated above – the concentrating media so as to ensure
creating a strong impression on at least one particular section of the public – is an application of
the principle of concentration, which applies primarily to media selection. It is of very great
importance. Each medium represents a section of the public either numerically or in terms of
atmosphere, mood, or circumstances. The mass national morning papers, for example, have their
own particular mood and circumstances, and within this group each one of them selects its own
section of the total public. Even the least of these sections represents a market of considerable
size. To select this one section of media, or any one of its component newspapers, and to
dominate it thoroughly, may well represent for a given advertiser a fully sufficient scope for his
marketing ambitions.
In a rather different mood and circumstance the same people travel by transport to their jobs and
thus the transport media may create their own separate world of advertising, because of the way in
which they are seen, the colour employed, the shape and positioning of them, and so on. The
magazines, again, create a rather different advertising mood and circumstance from the daily
press, even among the people, men or women, who read both. The hoardings, the radio, the shop
display, the cinema, and every other medium create its own particular effects. It is possible,
therefore, for an advertiser who is outspent by some competitor in say the daily papers, to turn to
another advertising field and be the most dominant advertiser in his class, within the type and
mood and quality of coverage offered by the field. This second field may not offer the type and
mood and quality of coverage the advertiser would have chosen first; but he may well do better to
make his mark effectively in this more limited field than to be an also-ran in the best field.
The only reservation is that the more limited field of advertising thus selected should be large
enough to provide, when properly exploited, a return which justifies the expenditure on a normal
ratio of advertising the same time a more universal coverage would spread the advertising impact
too thin, then the whole basis of the advertising costing needs re-examining and possibly a
radically different solution will have to be sought.
The issue, which arises at all stages in media planning can be settled only by a careful balance of
pros and cons. In a simple case an advertiser may have the choice of ten insertions of given size in
one newspaper; or five in each of two; or ten in each of two but only half the size. The balance of
the decision will lie in whether five is adequate frequency, or whether the half-size will enable him
to do the job the campaign requires; or whether he will do better to limit himself to the one
newspaper and achieve a full success among the more limited public so covered. More
complicated examples of the same issue arise when a larger budget offers scope for a variety of
media of different types.
The rule must be that it is far better to do a given job – in terms of size and frequency – in a limited
type of media, than to risk doing an inadequate job in all types cut of a desire to expand the total
coverage. It is a decision, which is often hard to reach because of the anxiety to widen the
coverage which always arises. The temptation to make the resources cover just one more set of
possible customers is difficult to resist; but it must be resisted. Moreover, there are often conflicting
counsels and desires to be reconciled, and it sometimes seems easier to affect the reconciliation
by giving everyone a little of what they want rather than go through the labour and trouble of
deciding priorities. This is once again an example of the danger of dispersal of advertising effort.
The issue particularly calls for god judgment because if the principle is applied too far, there is a
complementary risk of wasting resources. In another context reference has already been made to
the diminishing return that sets in at a certain point of advertising expenditure on a given medium.
Too great a size of space, too much frequency of insertion, too much money spent in a single
medium, can be a waste of resources, just as too little can be. At a certain point of spending in, let
us say, one newspaper, it becomes better to add a second newspaper and thus broaden the field
of total coverage.
The right course is therefore to start by defining clearly what size and frequency of space the
tactical situation requires and ensure that no medium is included which cannot be afforded an
adequate strength of campaign.
There are various methods of concentrating an advertising budget, and where concentration is
necessary (as it usually is because virtually no budget is sufficient for everything) the following
possibilities may be reviewed:
a. Numerical concentration; i.e., choosing only a few (naturally the most economic) media of a
certain type.
b. By choice and continuity of position within a type of media, pre-selecting an even more limited
section of the whole audience, which has particular interest in the product.
c. Seasonal concentration; i.e. limiting the advertising to a part (probably the peak period) of the
selling season.
d. Geographical concentration; i.e., proceeding by intensive coverage of a selected area or
sequence of areas.
e. Economic class; i.e., not attempting to cover all classes equally. Such a form of media
concentration must be linked with parallel concentration of marketing and creative effort.
f. Age; i.e., limiting the advertising objective to a special age group with all the consequent
narrowing of the media field.
g. Interest groups; i.e., choosing, within the general scope of the product appeal, some more
limited group of interests, e.g., social religious, sporting, etc., which can then be reached with a
more restricted list of media. The creative appeal would be limited in parallel.
The scope for deliberate concentration of objective is almost endless, because of the vast variety
of media available. These suggestions are only examples of how a general principle can be
worked out.
In summary, therefore, the need for concentration in media planning lies in:
a. the need to focus the media as far as possible on the section of the public prescribed by the
marketing and advertising objective; and
b. the need to concentrate on the best media for the purpose until a pre-defined strength has been
achieved in each, and not proceed to widen the media list until it has.
Domination. The advertising complex may be envisaged as a market place in which a large
number of salesmen are crying their wares. The resultant hubbub is continuous and the public gets
accustomed to it, to the stage where it discounts it. Moreover, the public is going about its own
affairs, which lie to a large extent outside the field of buying. It has interests, anxieties,
preoccupations with earning its livelihood, recreations, family affairs, and other influences far
removed from what the salesman is trying to sell.
To catch the attention of the public in these circumstances requires a very skillful technique. There
may be a factor of unusual novelty, or a vast appropriation, or a product of close relevance to the
moment’s interests of the public, or some other element in the situation, which gives an advertiser
an advantage. To suggest that such a factor can be invented if it is not present is to underrate the
extent to which the public can subconsciously distinguish between the real and the false novelty or
interest.
There may be some appropriations, which are so great that they can by very volume make
themselves heard across the whole market place. But the average case is one in which the
resources available permit of only a normal volume of salesmanship. In these circumstances the
salesman must as it were pitch his booth in that section of the market place where from previous
knowledge his likeliest customers will circulate in greatest numbers, and at least ensure that within
this limited area his resources permit his voice to be heard above the general din.
This is the principle of concentration, already described; its purpose is to dominate. So, too, in the
choice of media the advertiser must dominate at least for some of the time and in relation to some
of the public.
Domination may be achieved by scores of different methods of media planning. The most obvious
way is to use large spaces; and even if this cannot be afforded throughout the whole campaign, it
will probably be possible for a short period – enough to make its mark on the relevant public for a
time. It is often imagined by the inexperienced that novelty and ingenuity are what make
advertising successful; and for a short time and in certain circumstances this may be true. But in
the long run it is weight of money, which generally controls the situation. Therefore to outspent
competitors is the surest way to dominate, and once again the argument reverts to the need to
concentrate resources in order to do this.
On the other hand, merely to do something different from competitors in the sphere of media may
go some way to achieve the object; for example, suing a medium that is new for the product or an
unusual shape of space; or choosing poster sites of noticeable size or quality; or using colour
pages where competitors have hitherto used only black and white; or skillfully finding means of
getting news printed in the editorial columns; or turning up with a sample offer through the
unexpected medium of the consumer’s own letterbox.
In a competitive market, domination is particularly necessary, and few markets nowadays are not
competitive. But what makes the problem more difficult (and tends to stress the factor of sheer
spending power rather than new ideas or ingenuities of presentation) is that an advertiser has to
compete not only with others making similar products, but also with manufacturers in other fields
who are bidding for the same money with different kinds of interests. Chocolates do not compete
only with other chocolates or with other sweets, but also with tobacco, and nylons, and cinemas,
and biscuits and football pools, and all other forms of recreational spending. Television sets do not
compete only with other television sets but with washing machines, and household cleaners, and
family holidays, and new clothes. To some extent indeed competitive products in the same field
assist each other because their combined spending tends to outbid competing interests from other
fields.
Bigness, as we have already remarked elsewhere, is an important quality in advertising; therefore,

to be bigger and more noticeable than competitors is to dominate. But the idea of domination is not
only in relation to being better and bigger than other advertisers, but also to taking control of the
potential customer’s mind and interest for the necessary space of time, and to continuing to control
it partly by the quality of the goods sold and partly by repeated domination of his or her
subconscious inclinations.
Repetition. This brings the argument to repetition. The average advertiser is not aiming to make a
single sale; he wants the customer to come back again and again for his product. The investment
in advertising cannot otherwise be repaid. All the time other interests are crowding in upon his
customer with new ideas and products, and with alternative means of enjoying the pennies or
shillings he wants spent on his own product. He must dominate the market and take control of the
customer’s interests at least once in order to get his own idea or product noticed and tried; but
thereafter, he must keep the impression so created alive forever afterwards. This process requires
neither the bigness nor the dominance, but it entails spending advertising resources continuously
over a period, and allowance for this continued outlay must be made in deciding what media the
budget can afford to use.
The proper frequency and size of this element of repetition are matters, which need a chapter to
themselves. They depend on a wide variety of factors such as the seasonal peaks of the purchase
of the product, the frequency of consumer purchase, the amount the buyer is prepared to spend at
a single purchase, and similar factors.
The most important point to grasp in this context is the basic factor that, because the only kind of
buying that can reward the average advertiser for his outlay involves repetition, therefore repetition
is necessary to the selling process which advertising represents. If one may use the alternative
description (which the writer prefers) in which advertising is defined as adding a subjective
something to the very product itself, then repetition of advertising appeal is clearly as much a
necessity to the continuing process of production as is repetition of the labeling process or that of
putting into cartons. It is the process of continuing to hallmark the product in which the public
places its confidence.
There are many media especially suitable for repetition and generally it is possible (as well as
necessary in view of the need to make resources go round) to make do with less expensive forms
and sizes of space. This is because:
a. The stage of breaking through the barrier of public ignorance of the product is over, at least for
the time being; and
b. It is usually unnecessary, at the repetition stage, to state the selling points in as much detail as
when they are first being put across; and a reminder type of advertising can be adopted.
The process of repetition cannot go on indefinitely. After a stage, which must be judged from the
tactical circumstances, it will be necessary to create new impact – a new effort of domination –
before the repetitive process can be resumed. Repetition is by its very description the repeating of
something, and each repeat gets a little fainter. The fresh impact may take the shape of a new
presentation of the marketing and advertising message, or it may be judged sufficient to use the
existing message over again in larger and more dominant spaces.
In the same way too much exact similarity in the medium of repetition may cause the value of it to
diminish quicker than would otherwise be the case. It is for this reason that posters, which are seen
by their public so frequently in the course of a week’s normal journeys, are thought b many experts
to lose their repetitive value rather quickly. The same poster, or the same hoarding, passed at the
same stage of the daily or twice daily journey becomes a mere part of the scenery. Changes of
poster design can help to overcome this disadvantage, but it is a factor to consider in relation to
what otherwise is the most convincing medium of repetition.
Some variation in the shape, size, and even the actual media of repetition can be very helpful. The
same message striking at the viewer from a different angle, in a different context, or catching him
in a different mood and circumstance, can almost convey a little of the feeling of a new impact.
Repetition must not be allowed to result in a blind spot in the vision of the public.
In newspaper and magazines the risk of this is not so great because the surrounding material –
news, features, pictures, and other factors that go to create the context – are constantly changing.
An exception may be the earspaces alongside the newspaper titles, which are a favourite repetition
medium but which , like the poster sites, can wear a blind-spot with the regular reader of the
publication. There is no doubt that where repletion is spread over a variety of media each with its
different context, it sustains the freshness of the first impact over a longer period.
Concluding this chapter it will be useful to restate the four basic principles of media planning which
have been emphasized in this and the previous chapters.
Definition – Getting the campaign objective into clear focus (by methods outlined in the previous
chapter)
Concentration – Avoiding dispersal of resources over too many different objectives or media.
Domination – Ensuring that at some part of the market the campaign dominates its competitors,
and takes control of the mind and interests of the potential customers.
Repetition – Providing for the continuation of the message in reminder form regularly over a period.
Definition – Concentration – Domination – Repetition. It may be useful thus to expand Sir William
Crawford’s original precept for sound campaign planning in the field of advertising media.
Source : the Selection of Advertising Media by J.W. Hobson, M.A.,F.I.P.A.

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Introduction to IMC

Direct Marketing & E – Marketing

• It is the communications mix adopted by a

Volney B. Palmer – media broker

Ads were released to make the magazines interesting

“The editor of the Ladies Home Journal thinks that

 Advertising is a paid, mass mediated attempt

 Substitute for a human salesman

Maintains or enhances brand equity

Supports the media

Reduces distribution cost

Provides product utility

Stimulates introduction of new products

 Advertising is intrusive and invades personal privacy

 Advertising is manipulative and has a damaging influence on impressionable minds

 Advertising is offensive and distasteful.

 Advertising promotes and raises aspirations fuelling a materialistic society

 Advertising promotes harmful products like tobacco and alcoholic beverages

 Advertising promotes stereotype thinking

 Advertising leads to deceptive claims being believed by a gullible society

Control Institutions Facilitating Institutions

Markets and Consumer behaviour

Creative boutiques – Ray and Kesavan

Event management agencies- Wizcraft

Sales Promotion agencies

Direct marketing outfits – Lintas Direct

Research suppliers – MARG, IMRB, Nielsen

What can advertising do

Mix of ‘Pull’ and ‘Push’ in

To maintain focus on the

Concentrated Differentiated Mass Niche

• What the product stands for?

Positioning and segmentation strategies must have fit. A

Use or application approach

Product class approach

Product user approach

Cultural symbol approach

The prestige-seeker Samsung

Low Price/ Quality

Economic analysis should guide the decision

Not change for change sake. To stick with the advertising if it is

Make it easy for customers to remember/recall. Use symbols,

CEO of the brand

Accountable for the sales, profits,

Needs to interact with all functionaries,

To encourage non-users to sample the product

To develop the belief among both users and

To inform consumers especially lapsed

To encourage retail trade to stock and display

Advertising Immediate sales Future Sales

Successful advertising helped increase prices

The average % increase in sales to be

Who is the target segment?

What is the behaviour within that segment that

What is the process that would lead to desired

Is it necessary to create awareness, build attitudes/

 The first step in getting your ad noticed by the target segment