2. • to move customers through the buyer-readiness
stages
• sometimes designed to move people to immediate
action
• many focus on building or strengthening long-term
customer relationships
GOALS
3. Advertising Objective
What is it?
• A specific communication
task to be accomplished
with a specific target
audience during a specific
period of time
• Should be based on past
decisions about the target
market, positioning, and
marketing mix, which define
the job that advertising
must do in the total
marketing program
7. Four common methods are:
1. the affordable method
2. the percentage-of-sales method
3. the competitive-parity method
4. the objective-and-task method
How do companies decide on the communication
budget?
8. Every business or product needs promotion for reaching out to the
consumers. Advertising strategy is created to fulfill this very purpose.
The period of an advertising strategy may range from a few months to
a year.
Steps to develop an advertising
strategy:
1.Defining the Product or Service – Before developing the plans and
strategies for advertising, the product or service offered by the
company is clearly defined. This means that the position of the product
in the market is determined. You have to understand the product and
its customer base for effectively marketing it to the people at large. It is
also important to understand the primary objective of the product or
company.
2.Understanding the target audience – This is an important step in
creating a strategy for advertising. Various factors are to be considered
for determining the target audience such as demographic factors,
psychographic factors, behavioral patterns, etc. The advertising plan is
created after considering these factors. For e.g. cosmetic and beauty
9. 3. Market research – Once the target market is determined, the next
step is to study the market for that particular product. Research
about the products already available in the market, what problems
are faced in getting those products, what does the consumer desire
from such products and such other issues. A marketing and
advertising plan can be derived with the help of this study. Also, find
out the latest trends in the market.
4. Developing a marketing plan – The strategies formed with the
help of market research can be put down as the plan of action for
marketing the product. This means, a marketing plan is created after
determining the current trends in the market. The marketing plan
aims to create a niche of the product so that it stands out among the
competition. The plan of action also helps to establish the positioning
of product.
5. Deciding communication media – The marketing plan is put to
action using various channels of communication. It is important to
choose the right media or a media mix for advertising. This depends
on the product or service that is being marketed. The choice of the
medium is made after considering the target audience and market
research. If a physiology equipment is to be marketed, its
advertisement will be put up as flyers or brochures in a doctor’s clinic
10. 6. Budget - The budget may be determined either before or after
creating an advertising strategy. It can be based on the resources
available to the company. If the company has an expensive budget,
they can carry out high impact advertising extensively. They can
create effective advertising strategy without worrying about the
finance. On the other hand, if the company has limited budget, that
alone dictates the advertising strategy. Because, at every step of the
market plan and advertising strategy, they have to consider the
budget.
7. Marketing methods – Company can consider from among two
types of methods to advertise while creating the strategy. They are
push method and pull method. They can decide to go with either
depending on their strategy and objective. Push method aims to
convince the retailers or sales person to promote the product,
whereas pull method is directly aimed at the consumers.
8. Modifying advertising strategy - This process does not end on
creating and implementing the advertising strategy. One has to stay
25. There are different tests and several techniques in each of the test to evaluate
advertising effectiveness. Based on Philip Kotler’s views, let us first discuss
classification of tests (various ways or approaches) to evaluate advertising
effectiveness.
1. Pre-test and Post Test:
Pre-test implies testing advertising message before it is sent to specific media.
Post test implies testing impact of advertising message after it is published in
any of the media.
2. Communication and Sales Effect Test:
Communication test measures communicability (ability to communicate) of the
message. Whereas sales-effect test measures advertising impact on sales
volume.
ADVERTISING EVALUATION/ TRACKING
ADVERTISING RESULTS
26. 3. Laboratory and Field Test:
Clearly, a laboratory test is conducted in a controlled environment in a limited
scale. Respondents are invited in a laboratory to state their response. Quite
opposite, a field test is conducted in original setting, artificial climate is not
created. It is similar as conducting survey to measure what customers think
about company’s advertisement.
4. Experimental and Survey Test:
Experimental test involves testing advertising effect by conducting test by
manipulating independent variable (i.e., advertising efforts) and measuring the
effect of the manipulation on other dependent variables like sales, profits,
consumer satisfaction, etc. Experimental test may be laboratory or field test.
Survey test involved knowing consumers’ view’s through a survey method.
5. Message and Media Effect Test:
While message test involves measuring clarity, contents, believability, action
ability, etc., of the message, the media test measures effectiveness/ suitability of
one or more media.
27. Mostly, a company is interested to measure advertisement’s communication
effect and sales effect. Therefore, it is worthwhile to discuss communication
and sales effect test.
Communication and Sales Effect Test:
Among several tests, the communication test and the sales effect test are
more relevant because success of advertising campaign depends on how far
advertising has influenced knowledge, attitudes and preference of the target
customers. In the same way, a sales volume is the ultimate aim of all
marketing efforts (including advertising). Advertising must increase sales.
Therefore, evaluation of advertising effectiveness, in most cases, consists of
evaluating communication test and sales effect test.
Methods for Communication Effect Test:
Communication effect test seeks to determine whether advertisement is
capable to communicate effectively.
Following methods are used:
28. 1. Direct Rating Test:
In this method, consumers are asked to rate/rank alternative advertisements.
They are exposed to different ads and are requested to rate them. Consumers
can consider various criteria to rate the advertisement, like message contents,
message clarity, coordination, and overall impression.
2. Recall Test:
It measures the retention value of ad message. The consumers are asked to
listen and/or view the particular advertisement. They are then asked to recall
the same. The amount of contents and message they recall determines
effectiveness of advertisement.
3. Portfolio Test:
Here, the consumers are asked to view and/or listen to a portfolio of
advertisements. They are given as much time as they need. They are then
asked to recall all the ads and their contents. Their recall level indicates an
advertisement’s ability to affect consumers’ knowledge and arouse interest.
4. Laboratory Test:
The test is conducted in laboratory. Necessary equipment’s are used to
measure consumers’ physical reactions in terms of heartbeat, blood pressure,
perspiration, etc., to an ad.
29. Methods Sales Effect Test:
While the communication effect test measures communicating ability of the
ad, the sales affect test measures ad’s ability to influence sales. Ad must affect
sales positively. In fact, advertising’s sales effect is difficult to test because
sales are influenced by many factors besides advertising, including product’s
features, price, availability, and competition.
Following two methods are used:
1. Historical Test:
The test involves correlating the past sales to the past advertising expenditures
using advance statistical techniques. The results can reveal how far
advertisement was effective in generating or increasing sales. The test can be
used for different products, territories and ad media, or in general.
2. Experimental Test:
Experiment is conducted to assess impact of advertisement on sales. Instead
of spending the same per cent of sales for advertisement in all territories or
products, a company spends different percentage of sales for advertisement.
Company can easily judge whether high-spending territories have resulted in
increasing sales and vice-versa.
30. ETHICAL ISSUES INVOLVING ADVERTISING
Society grants consumers the right to be informed and prohibits
deceptive practices and promotions that intentionally mislead
consumers.
Deceptive advertising is illegal; difficult to identify
Questions about what public standards should be used in
advertising may also present ethical dilemmas.
Children are a special public; disagreement about whether
advertising aimed at them is ethical.
31. When Ads are not Ethical?
•When it try degraded rival's product..
•When it gives false or misleading information about the product
•When it fails to give relevant information.
•When it is immoral.
VARIETY OF ETHICAL ISSUES
1.MISLEADING CLAIMS
2.REINFORCING STEREOTYPES
3.USE OF SEX APPEAL
4.HIDING OF REVEVANT FACTS
5.MANIPULATIVE ADS
6.SURROGATE ADS
7.PUFFERY
8.ADVERTISEMENT DIRECTED AT KIDS
