Steps in Advertising Process

“Mass demand has been created almost entirely through the development of
Advertising”
For the development of advertising and to get best results one need to follow the
advertising process step by step.
The following are the steps involved in the process of advertising:

1. Step 1 - Briefing: The advertiser needs to brief about the product or the
service which has to be advertised and doing the SWOT analysis of
the company and the product.
2. Step 2 - Knowing the Objective: One should first know the objective or the
purpose of advertising. I.e. what message is to be delivered to the audience?
3. Step 3 - Research: This step involves finding out the market behavior,
knowing the competitors, what type of advertising they are using, what is the
response of the consumers, availability of the resources needed in the process,
etc.
4. Step 4 - Target Audience: The next step is to identify the target consumers
most likely to buy the product. The target should be appropriately
identified without any confusion. For e.g. if the product is a health drink for
growing kids, then the target customers will be the parents who are going to
buy it and not the kids who are going to drink it.
5. Step 5 - Media Selection: Now that the target audience is identified, one
should select an appropriate media for advertising so that the customers who
are to be informed about the product and are willing to buy are successfully
reached.
6. Step 6 - Setting the Budget: Then the advertising budget has to be planned so
that there is no short of funds or excess of funds during the process of
advertising and also there are no losses to the company.
7. Step 7 - Designing and Creating the Ad: First the design that is the outline of
ad on papers is made by the copywriters of the agency, then the actual creation
of ad is done with help of the art directors and the creative personnel of the
agency.
8. Step 8 - Perfection: Then the created ad is re-examined and the ad is redefined
to make it perfect to enter the market.
9. Step 9 - Place and Time of Ad: The next step is to decide where and when the
ad will be shown.
 The place will be decided according to the target customers where the ad is
most visible clearly to them. The finalization of time on which the ad will be
telecasted or shown on the selected media will be done by the traffic
department of the agency.

10. Step 10 - Execution: Finally the advertise is released with perfect creation,
perfect placement and perfect timing in the market.
11. Step 11 - Performance: The last step is to judge the performance of the ad in
terms of the response from the customers, whether they are satisfied with the
ad and the product, did the ad reached all the targeted people, was the advertise
capable enough to compete with the other players, etc. Every point is studied
properly and changes are made, if any.

Consumer buying decision process

 Advertising Budget
An advertising budget is an estimate of a company's promotional expenditures
over a certain time period. More importantly, it is the money a company is
willing to set aside to accomplish its marketing objectives.

An advertising budget is important for a successful marketing plan. Your ad

budget is the amount you plan to spend on paid promotion of your brand and/or
products over a set time period, such as a year or a quarter.

In other Words
An advertisement budget is an amount that is estimated by the company to spend
on promotional activity over a certain period of time.

Importance of Advertising Budget

 Check on advertising Expenditure

 Approval from top Management.
 Balanced focus
 Selection of media
 Facilitates planned execution.

Types of Advertising Budget

Percentage of sales method

In this case, the company allocates an advertising budget based on a certain

percentage of the previous year’s total sales or the last few years’ average sales.
For example, the company sets a 2% -5% budget of the previous year’s revenue.

This method is safe and straightforward.

But, this method also has several drawbacks. This method assumes that market
conditions do not change. The company also assumes that the audience behavior
and competition map is relatively the same as before.
Affordable method

Under the affordable method, the advertising budget depends on the company’s
capacity to spend on advertising. In other words, the budget depends on how much
money the company has. The stronger the company’s financial position, the bigger
the advertising budget.

With this method, the company will allocate the advertising budget only if it has
allocated other expenses. If the company has large enough remaining funds, the
company spends it on advertising. Conversely, if there are no funds, the company
naturally has to manage the product without advertising.

Competitive parity method

Under the competitive parity method, firms calculate budgets according to

competitors’ advertising spending or industry averages. The aim is to at least offset
the effects of competitor advertising spending.

Budgets may be right or above competitors’ average. It depends on the company’s

goals.

If it targets higher sales than your competitors, the company charges higher
advertising spends. An advertising budget equal to the average competitor is to
maintain current sales and market share.

Objective and task method

The objective and task method is considered the most sensible. Therefore, some
larger companies prefer to use this approach. In this case, the company sets the
advertising budget based on the activities or tasks consumed.

This method’s main benefit is that it allows companies to correlate advertising

spend with overall marketing objectives.
What is the AIDA Model in Marketing?

The AIDA Model, which stands for Attention, Interest, Desire, and Action model,
is an advertising effect model that identifies the stages that an individual goes
through during the process of purchasing a product or service. The AIDA model is
commonly used in digital marketing, sales strategies, and public relations
campaigns.

The AIDA Model Hierarchy

The steps involved in an AIDA model are:

 Attention: The first step in marketing or advertising is to consider how to

attract the attention of consumers.
 Interest: Once the consumer is aware that the product or service exists, the
business must work on increasing the potential customer’s interest level.

For example, Disney boosts interest in upcoming tours by announcing stars that
will be performing on the tours.

 Desire: After the consumer is interested in the product or service, then the
goal is to make consumers desire it, moving their mindset from “I like it” to
“I want it.”
For example, if the Disney stars for the upcoming tour communicate to the target
audience about how great the show is going to be, the audience is more likely to
want to go.

 Action: The ultimate goal is to drive the receiver of the marketing campaign
to initiate action and purchase the product or service.

Therefore, the AIDA model says that Awareness leads to Interest, which leads
to Desire, and finally, Action.

Let us consider ways to use the AIDA model by looking into each part of the
hierarchy.

First Step: Attention

Often, the attention part is overlooked by many marketers. It is assumed that the
product or service already got the attention of the consumers – which may or may
not be the case. In any event, don’t just assume that everyone is already aware of
your product. One of the best approaches to attracting consumer attention is what’s
called “creative disruption” – breaking existing patterns of behavior through a
highly creative message. This can be done in several ways:

 Placing advertisements in unexpected situations or locations. This is often

referred to as guerrilla marketing.
 Creating shock in advertisements through provocative imagery.
 An intensely targeted message. This is also referred to as personalization.

Second Step: Interest

Creating interest is generally the hardest part. For example, if the product or
service is not inherently interesting, this can be very difficult to achieve. Make sure
that advertising information is broken up and easy to read, with interesting
subheadings and illustrations. Focus on what is most relevant for your target
market in relation to your product or service, and on conveying only the most
important message you want to communicate to consumers.

A good example of this is Wendy’s “Where’s the beef?” ad campaign that focused
on the fact that Wendy’s hamburgers contained more beef than their competitors’
hamburgers.
Third Step: Desire

The second and third steps of the AIDA model go together. As you are hopefully
building interest in a product or service, it is important that you help customers
realize why they “need” this product or service.

Think about how the content in infomercials is presented – they aim to provide
interesting information on the product, along with the benefits of buying it –
benefits that ideally make consumers want the product more and more.
Infomercials do this extremely well by showing the product being used in several
creative situations. Convey to the audience the value of the product or service, and
why they need it in their life.

Fourth Step: Action

The last step of the AIDA model is getting your consumer to initiate action. The
advertisement should end with a call to action – a statement that is designed to get
an immediate response from the consumer. For example, Netflix uses persuasive
text to convince the consumer to try their free trial. Netflix communicates how
convenient their product is and highlights its value, then urges consumers to sign
up for a free trial.

Information Processing Model

Information processing model of advertising affects developed by William
McGuire. This model assumes the receiver in a persuasive communication
situation like advertising is an information processor or problem solver. He goes
through in being persuaded which constitutes a response hierarchy. The various
steps like presentation, attention, comprehension, yielding, retention & the
behavior are present in information processing model.

 PRESENTATION
The presentation is the fundamental stage in the Information-Processing Model.
This is the awareness phase where the consumer becomes aware of his needs and
seeks a product to satiate his needs.

 ATTENTION
This is the second stage of the Information-Processing Model, where the product
seizes the attention of the potential customers.
 COMPREHENSION
In this stage of the Information-Processing Model, the consumer compares and
evaluates various products of different brands accessible in the market to ascertain
the product that actually meets his requirement.

 YIELDING
This is a stage in which the customer figures out what exactly he wants and the
brand and its product that balances his needs to its specifications.

 RETENTION
This is the fifth stage in the Information-Processing Model. This is the stage in
which the customer remembers the key features and attributes, the benefits and all
the positive aspects of the products that he is seeking to purchase.

 BEHAVIOR
This is the last stage of the Information-Processing Model in which the purchase
action of a product of a particular band takes place.

In the Information-Processing Model, the Presentation, Attention and

Comprehension take place in the Cognitive stage, Yielding and Retention of
information fall under the Affective stage, and the final Behavioral action takes
place in the Behavioral stage.