This document provides an overview of advertising management and objectives. It discusses that advertising management is a planned process to communicate with a target market to influence purchase decisions. Advertising simply informs and sells a product. The objectives of advertising management include: introducing new products/brands, creating awareness, acquiring customers, differentiation, brand building, product/brand recall, and increasing sales and profits. Effective advertising is important for successful marketing.
This document provides an overview of advertising management and objectives. It discusses that advertising management is a planned process to communicate with a target market to influence purchase decisions. Advertising simply informs and sells a product. The objectives of advertising management include: introducing new products/brands, creating awareness, acquiring customers, differentiation, brand building, product/brand recall, and increasing sales and profits. Effective advertising is important for successful marketing.
This document provides an overview of advertising management and objectives. It discusses that advertising management is a planned process to communicate with a target market to influence purchase decisions. Advertising simply informs and sells a product. The objectives of advertising management include: introducing new products/brands, creating awareness, acquiring customers, differentiation, brand building, product/brand recall, and increasing sales and profits. Effective advertising is important for successful marketing.
This document provides an overview of advertising management and objectives. It discusses that advertising management is a planned process to communicate with a target market to influence purchase decisions. Advertising simply informs and sells a product. The objectives of advertising management include: introducing new products/brands, creating awareness, acquiring customers, differentiation, brand building, product/brand recall, and increasing sales and profits. Effective advertising is important for successful marketing.
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising
Management
Class: BBA 3rd Year
Subject: Advertising Management and Sales Promotion Unit 1 Module 1 Topic: Definition, Objectives, Functions and Classification of advertisement
Advertising management is a planned managerial process designed to
oversee and control the various advertising activities involved in a program to communicate with a firm's target market and which is ultimately designed to influence the consumer's purchase decisions. Advertising simply put is telling and selling the product.
Advertising Management though is a complex process of employing
various media to sell a product or service. This process begins quite early from the marketing research and encompasses the media campaigns that help sell the product. Without an effective advertising management process in place, the media campaigns are not that fruitful and the whole marketing process goes for a toss. Hence, companies that believe in an effective advertising management process are always a step ahead in terms of selling their goods and services.
Advertising is any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor. Five major decisions involve the mission, money, message, media and measurement
Advertising—the use of paid media by a seller to communicate persuasive
information about its products, services, or organization—is a potent promotional tool.
Advertising takes on many forms (national, regional, local, consumer,
industrial, retail, product, brand, institutional, etc.) designed to achieve a
Compiled Study Material by Syed Aamir Mehboob
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising Management
variety of objectives (awareness, interest, preference, brand recognition,
brand insistence).
Advertising decision-making consists of objectives setting, budget decision,
message decision, media decision, and ad effectiveness evaluation. Advertisers should establish clear goals as to whether the advertising is supposed to inform, persuade, or remind buyers.
The factors to consider when setting the advertising budget are: stage in the product life cycle, market share, competition and clutter, needed frequency, and product substitutability. The advertising budget can be established based on what is affordable, as a percentage budget of sales, based on competitors’ expenditures, or based on objectives and tasks, and based on more advanced decision models that are available.
The message decision calls for generating messages, evaluating and
selecting between them, and executing them effectively and responsibly.
The media decision calls for defining the reach, frequency, and impact goals; choosing among major media types; selecting specific media vehicles; deciding on media timing; geographical allocation of media. Finally, campaign evaluation calls for evaluating the communication and sales effects of advertising, before, during, and after the advertising.
Objectives of Advertising Management
1) Introduce a product The most common reason Advertising is used is to introduce a new product in the market. This can be done by existing brands as well as new brands. Have a look at the latest IPhone in the market or a Samsung smartphone and you will find a lot of advertisement for these new products. The objective of advertising here is to tell customers – “Here is the new product we have launched”
2) Introduce a brand There are many startups in the market today and many of them are services. Services are generally marketed as a brand rather than marketing their individual service product. Thus, Uber will market its own brand and introduce that Uber has started servicing customers in a new market. Same goes for Oracle or Accenture – Companies which market their brand and their presence in the market rather than marketing an individual product.
3) Awareness creation
Compiled Study Material by Syed Aamir Mehboob
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising Management
According to the AIDA model, the most important job of advertising is to get attention which is nothing but Awareness creation. Advertising needs to capture the attention of people and make them aware of the products or their features in the market.
Example – Most of the Bank ads that you see are awareness campaigns. The ads that advertise the benefits of savings / mutual funds or benefits on credit and debit cards are all awareness creation ads.
4) Acquiring customers or Brand switching
One of the major objectives of advertising and the first objective of many advertising campaigns is to acquire more customers. This is also known as making the customers switch brands. This can happen by passing on a strong message so that the potential customer leaves the brand which he is tied up with and comes to your brand.
Example – Most telecom companies launch plans and strategies just to acquire customers and then advertise these strategies in the market so that the customer switches brands. There is hardly any differentiation in the telecom market – thus advertising is a major way to acquire customers. The Vodafone Zoozoo campaign was just that – Influence the customers and create passion in such a way that they do brand switching,
5) Differentiation and value creation
A most important aspect of Advertising is to differentiate the product or the service from those of the competitor. A customer can only differentiate between services based on the value the firms provides over that of competitors.
If a competitor is just advertising the features, whereas your firm advertises the promises and commitments that it will keep, naturally more customers will “trust” your brand over others. This is the reason that advertising is used commonly to create value and to differentiate one brand from another.
Coca cola, Toyota, Amazon are some of the most trusted brands in the market. It is no doubt that these brands are also amongst the top advertisers in their respective segments. These brands target value creation as well as differentiation via their advertising campaigns.
6) Brand building When a brand regularly advertises and delivers quality products and fulfills the promises it makes, automatically the value of the brand is built. However, there are many other aspects of brand building. One of the first ones is to advertise via ATL and BTL campaigns etc.
Compiled Study Material by Syed Aamir Mehboob
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising Management
Brands have different objectives of Advertising. Brands like P&G
and HUL regularly invest funds in building a good brand value for the parent brand. By doing so, even if one brand is affected, the parent brand is untouchable.
Recently we observed the problems of Maggi in India where Maggi was banned completely due to high lead content. However, this did not affect the parent brand Nestle much and neither affected its other brands like Nescafe which had done their own brand building and were independent of the parent brand. This brand was built by good products and constant advertising towards building brand equity and making a connect with the audience.
7) Positioning the product – Product and brand recall
One of the key factors in the actual purchase of a product is the products recall and the brand recall at the time of purchase. Amongst the objectives of advertising, one objective is to correctly position the brand in the minds of the customer.
Examples include premium brands like Ralph Lauren, Gucci, Hermes or others which are clearly positioned premium. This position is achieved by first having a very premium product line which is high priced but it is also achieved by buying premium advertising and placing the ads in media vehicles which are very premium.
Besides premium marketing, we can also look at niche marketing. Kent is a
company which has focused all its advertising on its purification capability. They claim they are the masters of water purifiers. Their repeated advertising creates a high product and brand recall in the minds of the customers thereby positioning them as the top purchased brand in the water purifier segment.
8) Increase sales Naturally, with so many steps being taken to advertise the product, it is no doubt that one of the objectives of advertising is to increase sales. Many a times this objective is achieved via advertising. However, if the campaign is improper or the audience is not targeted properly, then advertising can fail in its objective.
Nonetheless, there are many seasonal products wherein an immediate
increase in sale is observed due to advertising. The best example is Ice cream brands which advertise heavily during the summer months because they know that advertising will immediately influence the sales figures. They do not waste money in advertising during the winter season at all.
Compiled Study Material by Syed Aamir Mehboob
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising Management
Similarly, you will see many ads of raincoats during rainy season and ads of winter wear during winter seasons. All these ads are placed to increase the sale of the product immediately.
9) Increase profits With the value being communicated and the brand being differentiated as well as sales being increased, there is no doubt that advertising can contribute a lot to increasing profits. Advertising should never be looked at as an expense or a liability. In fact, it is an investment for a firm just like a brand is an investment.
Look at the likes of Siemens or Bosch – Brands which have invested heavily in positioning themselves on the basis of their German engineering. As a result, today they demand high profits in whatever segments they operate in or whatever products they sell.
10) Create Desire
Again, referring to the AIDA model, one of the key factors in advertising is to create a desire for the product so that the customer wants the product. Brands which are known to do this are BMW, Audi, Harley Davidson, Adidas and others. These brands are master of advertising where they create so much desire for the product that the customer absolutely wants a product even if he doesn’t need it.
There are many stories of Harley Davidson as a brand wherein customers have saved money for years to buy a particular bike of Harley Davidson. Same stories can be heard about an Audi or a BMW. A unique example in this case are the bottles of Absolut Vodka. Absolut Vodka is so famous for its bottles that there are collectors who desire to collect all different bottle types of Absolut Vodka. Such desire creation is an effect of advertising + brand building + the fan following over time.
11) Call to action
One of the most common objectives of digital advertising and digital marketing is to get a call to action. Brands invest in banner ads, link ads as well as social ads to get their potential customers to take an action. This action can be filling up an Email form, clicking on a link, watching a video, giving a survey or what not.
There are brands which have done ATL advertising and shown half the ads and then attracted customers to their YouTube channel so that they could track their viewers and get them to take some action. Call to actions are also one of the objectives of advertising in which case the actions differ from time to time based on what the marketer wants to achieve.
Compiled Study Material by Syed Aamir Mehboob
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising Management
Functions of Advertising
Advertising has become an essential marketing activity in the modern era of
large-scale production and severe competition in the market.
It performs the following functions:
(1) It promotes the sale of goods and services by informing and persuading the people to buy them – A good advertising campaign helps in winning the new customers both in the national as well as the international market.
(2) It helps in the introduction of new products in the market – A business
enterprise can introduce itself and its products to the public through advertising. No new enterprise can make an impact over the prospective customers without the help of advertising. Advertising enables quick publicity in the market.
(3) Advertising facilitates large-scale production – Advertising encourages
production of goods on mass because the business firm knows that it will be able to sell on a large-scale with the help of advertising. Mass production reduces the cost of production per unit by making possible the economical use of various factory of production.
(4) It stimulates research and development activities – Advertising has
become a competitive marketing activity. Every firm tries to differentiate its product from the substitutes available in the market through advertising. This compels business firm to do more and more research to find new products and their new uses. If a firm does not engage in research and development activities, it will be out of the market in the near future.
Compiled Study Material by Syed Aamir Mehboob
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising Management
(5) Advertising educates the people about new products and their uses – Advertising message about the utility of a product enables the people to widen their knowledge. It is advertising which has helped people in adopting new ways of life and giving up old habits. It has contributed a lot towards the betterment of the standard of living of the society.
CLASSIFICATION OF ADVERTISING
1 Product advertising A normal characteristic of advertising is to create primary demand for a product category rather than for a specific brand. It is wrongly believed that product advertising must stress on brand name. This is based on the feeling that a good image often enhances the effectiveness of product advertising. However, in practice, most companies are successful in building the product image by using the brand names (e.g., Dettol, Horlicks). In short, when the company tries to sell its product or services through advertising it is referred to as product advertising.
2 Institutional advertising These advertisements are not always directed to consumers. Instead, it is aimed at many of the various types of public (shareholders, creditors, etc.). It is not product oriented but is rather designed to enhance the image of the company.
3 Primary demand advertising
It is intended to stimulate primary demand for a new product or product category. It is heavily utilised during the introduction stages of the life cycle of the product.
4 Selective or competitive advertising
When a product enters the growth stage of its life cycle, and when competition begins, advertising emerges and becomes selective. Here, the goal of advertising is to increase the demand for a specific product or service. Advertising may begin to stress subtle difference in brands, with heavy emphasis on 'brand name recall'. Pricing also will be used as a key promotional weapon as products become very similar.
5 Comparative advertising
Compiled Study Material by Syed Aamir Mehboob
BBA 3rd Year/ Advertising Management and Sales Promotion/ Unit 1/ Module 1/ Advertising Management
This is a highly controversial trend in today's competitive market. Such types of
advertising play a decisive role on comparative features of two or more specific brands in terms of product / service attributes. This method is adopted in the maturity stage when similar products fast appear in the market causing stiff competition.
6 Co-operative advertising When manufacturers, wholesalers and retailers jointly sponsor and share the expenditure on advertising, it takes the form of co-operative advertising. Such advertising carry the names of all the parties involved. From the customers' point of view this is beneficial, as they can get the articles directly from the authorised outlets.
7 Commercial advertising It is also termed as business advertising. As the name suggests such advertising is solely meant for effective increase in sales.
8 Non-commercial advertising These are usually published by charitable institutions preferably to solicit general and financial help (such as collection of donation or sale of tickets).
9 Direct action advertising
Advertising that stresses and persuades immediate buying of the product is known as direct action advertising. Direct mail advertising is capable of achieving immediate action to a large extent.
