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Advertising: Nature, Scope & Types
- 3. Definition Of Advertising Advertising: Paid, non- personal communication through various media about a business firm, not-for- profit organization, product, or idea by an identified sponsor in a message that is intended to Inform, Persuade Or Influence audience. • A complex form of communication using objectives and strategies to impact consumer thoughts, feelings, and actions. • A form of marketing communication (all the techniques marketers use to reach their customers and deliver their messages).
- 4. Meaning Of Advertising •Derived from original latin word ‘advertere’ which means ‘to turn the attention’. • Advertising is a tool of mass communication. • It makes mass selling possible. • It is a macro concept: representing the entire advertising industry. • It promotes the goods through information and persuasion.
- 6. Objectives Of Advertising(SCOPE) • Informative advertising Promotion that seeks to develop initial demand for a good, service, organization, person, place, idea, or cause. • Persuasive advertising Promotion that attempts to increase demand for an existing good, service, organization, person, place, idea, or cause. • Reminder advertising Advertising that reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public. Advertisers coordinate advertising objectives with the product’s stage in the product life cycle.
- 7. Objectives Of Advertising •Sales • Awareness/ familiarity with brand. Information about brand benefits / attributes – Acer laptop/ Water purifiers.
- 8. • Creation ofbrand image / personality – Old Spice, Axe.
- 9. • Association offeelings with brand– Cadbury celebrations.
- 10. • Reminder orinducement about brand/brand trial– Colgate whiteness meter
- 12. Linkage of brandwith / experts and group norms –Pampers diaper/ Oral B.
- 13. Advertising Strategies • Advertisingis a means of bringing buyers and sellers together. • Marketers often combine several strategies to meet their objectives. COMPARATIVE ADVERTISING • Comparative advertising Advertising strategy that emphasizes messages with direct or indirect promotional comparisons between competing brands. • Market leaders seldom acknowledge competing brands.
- 14. CELEBRITY TESTIMONIALS • Useof celebrity spokespeople for products. • Can build brand equity but can hurt brand if celebrity is hit by scandal.
- 16. RETAIL ADVERTISING • Includesall advertising by retail stores that sell goods or services directly to the consuming public. • Cooperative advertising Strategy in which a retailer shares advertising costs with a manufacturer or wholesaler. INTERACTIVE ADVERTISING • Involves two-way promotional messages transmitted through communication channels that induce message recipients to participate actively in the promotional effort. • Changes balance between marketers and consumers.
- 17. Role of advertising •Economic function • Creates wide market. • Social function • Improved standard of living. • Promotes consumer welfare. » Advertising promises a quality, and forces manufacturer to live up to the quality. » It invests a new product with confidence- confidence about its function, quality, price and availability.
- 18. • Psychological function •It affects the personality of the consumer, his attitudes, beliefs and opinions.
- 19. Importance and benefitsof advertising • Advertisers (LIC) • Sales turnover. • It maintains the existing market and explores the new. • It controls the product prices. • Middlemen (Automobile) • It guarantees quick sales. • It acts as a salesman. • It makes possible retail price maintenance.
- 20. • Salesmen (EurekaForbes) • It creates a background. • It lightens his burden of job. • It instills self confidence and initiative. • Consumers (choice of brand) • Acts as a driving force in decision making. • Ensures better quality products at reasonable prices. • It saves good deal of time.
- 21. • Society • Ituplifts the living standards. • It generates gainful employment opportunities. • It provides new horizons of knowledge. (classified and job ads) • It upholds culture of a nation (reflects and influences society) . • Advertisements educates the society.
- 22. Defining Modern Advertising TheEvolution of Advertising • Identification – Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store. • Information – Gutenberg’s movable type mechanized printing leading to mass communication. • Promotion – The Industrial Revolution led to surplus goods, improved transportation, and the need for new media. • Sales – Advertisers became concerned about making ads that worked and defining standards of effective advertising.
- 23. Principle: An effective advertisementis one that can be proven to meet its objectives. Five Basic Factors of Advertising 1. Paid communication 2. Sponsor is identified 3. Tries to inform or persuade 4. Reaches a large audience 5. Message conveyed through many different kinds of largely nonpersonal mass media
- 24. Four Components ofAdvertising
- 25. Four Components ofAdvertising 1. Advertising Strategy • The strategy is the logic and planning behind the ad that gives it direction. • Advertisers develop ads to meet objectives. • Advertisers direct ads to identified audiences. • Advertisers create a message that speaks to the audience’s concerns. • Advertisers run ads in the most effective media.
- 26. 2. Creative Idea •The creative concept is the central idea that grabs the consumer’s attention and sticks in memory. • Planning strategy requires creative problem solving. • Research involves creativity. • Buying and placing ads requires creative thinking.
- 27. 3. Creative Execution •Effective ads are well executed reflecting the highest production values in the industry. • Clients demand the best production the budget allows.
- 28. 4. Media Planning/Buying •Television, Internet, magazines, and other media are used to reach a broad audience. • Deciding how to deliver the message requires creativity. Principle: In advertising how you say something and where you say it is just as important as what you say.
- 29. Place in marketingmix • Part of promotion mix in MM. • Dependent on other variables for its existence. • Advertising: An important component of marketing mix. • With other elements of promotion mix advertising leads to a successful marketing programme. • Advertising promotes non-commercial ventures also.
- 30. Roles of Advertising MarketingRoleMarketing Role Communication RoleCommunication Role Economic RoleEconomic Role •Marketing is the process a business uses to satisfy consumer needs and wants through goods and services. Societal RoleSocietal Role •Advertising is a form of mass communication. •Two main views about advertising, either the market power model or the economics of information theory. •Informs us about new and improved products, teaches us how to use these innovations, etc.
- 31. The Key Players:The Advertiser • Wants to send out a message about its business • Initiates effort by identifying a problem that advertising can solve • Selects the target audience, sets the budget, and approves the ad plan • Hires the agency – Agency of record (AOR) does the most business; manages other agencies
- 32. • Agencies havethe strategic and creative expertise, media knowledge, talent, and negotiating abilities to operate more efficiently than the advertiser. • Some large advertisers have in-house departments. Key Players: Agency
- 33. • Media arechannels of communication that carry the message to the audience • They’re vehicles, but also large media conglomerates like Time Warner and Viacom. Key Players: Media Principle: Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches.
- 34. • Group ofservice organizations that assist advertisers, agencies, and the media in creating and placing ads by providing specialized services • Artists, writers, photographers, directors, producers, printers, freelancers, and consultants Key Players: Suppliers Insert
- 35. • People towhom an ad is directed—their responses determine if advertising is effective. • Targeting is the process of identifying the people in the desired audience. • Interactive technology allows ads to be customized to the target audience’s individual needs. Key Players: Target Audiences
- 36. Interactive Advertising Interactive Advertising Public Service Advertising Public Service Advertising Institutional Advertising Institutional Advertising Business-to- Business Advertising Business-to- Business Advertising Brand Advertising Brand Advertising Retailor Local Advertising Retail or Local Advertising Political Advertising Political Advertising Direct-Response Advertising Direct-Response Advertising Directory Advertising Directory Advertising Types of Advertising
- 37.
- 38. Types Of Advertising •Geographical spread • National (HUL), • Local (Ads in Delhi Times, Meerut Jagran )and • Global (Sony) • Target group • Consumer ( Groceries, Beauty Care etc.) • Industrial (machinery, equipment) • Trade (for intermediaries) • Professional (Consumers are not responsible for buying choice Eg. Office automation, Library books) • Product advertising • Pioneer advertising: To stimulate primary demand of the product category. • Competitive advertising: To stimulate immediate buying / highlight benefits of product. • Retentive advertising: To retain customers. • Service advertising • Highlight emotion and utility Eg. Idea/ emphasize tangible aspects. Master Card
- 39. Types Of Advertising Institutionaladvertising (SBI) • To make the company known • To make its products/services known • To make its achievements known • To make its achievements known • To make socio-political/moral statements Public relations advertising (Reliance Foundation) • Represents the management and communicates the policies, problems and performances to the public. Public service advertising (Polio Campaign, Sarv Saaksharta Abhiyaan)) • Social responsibility of advertising agencies Financial advertising • Promoting capital issues International advertising • Response to global marketing
- 40. Type Purpose Institutional Promotesorganizational images, ideas, and political issues Advocacy Promotes a company’s position on a public issue Product Promotes products’ uses, features, and benefits Pioneer Tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product Competitive Points out a brand’s special features, uses, and advantages relative to competing brands Comparative Compares two or more brands on the basis of one or more product characteristics Reminder Reminds consumers about an established brand’s uses, characteristics, and benefits Reinforcement Assures users they chose the right brand and tells them how to get the most satisfaction from it
- 41. 5 Advertising Decisions •What are the advertising objectives? (Mission) • How much can be spent ? (Budget) • What message should be sent ? (Media) • What media should be used? (Media) • How should the results be evaluated ? (Measurement)