Advertising 01

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Advertising

“Any paid form of nonpersonal


presentation and promotion of
ideas, goods, or services by an
identified sponsor.”
Nature of Advertising
• An important component of marketing mix.
• An essential element in promotion mix.
• Mass communication is the basic purpose of
advertising.
• Carries a message which motivates and inspires
customers to purchase a particular product.
• Is paid and undertaken by some advertising
agencies.
• Is sponsored by some identified advertiser.
• Is persuasive and informative.
• Aims at target group.
Advertising to
Target Audiences
advertising can be classified by the target
audience to which it is directed
consumer advertising generally appears in
mass media and is directed to end
consumers: may be product or institutional
in nature
business-to-business advertising is often
called trade advertising and is directed to a
business market
What is Being Advertised?
product advertising is designed to promote the
sale of a specific product or service:
 may be direct-action,
direct-action quick-response
 may be indirect-action over a longer time

institutional advertising promotes the firm or tries


to create a positive image:
 may promote customer service
 or send a public service message
What are the Objectives?

primary-demand advertising is intended to


stimulate use of a category of products

selective-demand advertising is intended to


encourage purchase of a particular brand or
the products and services of a specific firm
Advertising Process
Message decision
•Message generation
•Message evaluation
And selection
Budget decisions •Message execution Advertising evaluation
•Communication
Objective setting
•Affordable approach •Impact
•Communication objective
•Percent of sales •Sales impact
•Sales objective
•Competitive parity
•Objective and tasks Media decision
•Reach, frequency,
impact
•Major media types
•Specific media vehicle
•Media timing
Advertising Budget
An estimate of future advertising
expenditure that will be used to
implement managerial decisions to
maintain or improve profit results.
Budgetary Process

Preparation of budget

Presentation and
approval of budget

Execution of the budget

Control of budget
Factors influencing the advertising
budget allocation

Marketing mix of the company.


The sales forecast.
Affordability.
The product life cycle.
Level of competition.
Type of product.
Allocating Funds for Advertising

Affordability Method.
Percentage of sales Method.
Competitive Method.
Objective and task Method.
Additional or Empirical research Methods.
Advertising Media

ADVERTISING MEDIA

Outdoor or Sales
Broadcast Transit Specialty Mail Promotion
Print Media
Media Media Media Media Media

Radio
Television
Point of purchase advertising
Newspapers Magazines Trade shows
Samples, coupons
Media Plan and Strategy development activities

Situation analysis
Analyse and define
the marketing problem
Media Plan and Strategy development activities
Marketing strategy
•Marketing objective
Situation analysis •Target market segments
•Marketing mix decision
Media Plan and Strategy development activities

Situation analysis Marketing strategy

Advertising Strategy
2. Detailed profiling of target audience
3. Product and its positioning decision
4. Communications media to be used
5. Advertising message and appeal
Media Plan and Strategy development activities

Situation analysis Marketing strategy

Advertising Strategy

Setting media objective


Set media goals that can achieve advertising objectives
Media Plan and Strategy development activities

Situation analysis Marketing strategy

Advertising Strategy

Setting media objective

Determining media strategy


•Reach and Frequency
•Scheduling
Media Plan and Strategy development activities

Situation analysis Marketing strategy

Advertising Strategy

Setting media objective

Determining media strategy

Selection of media

Print
Television, Radio Print
Local or Internet

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