Management of Advertising Program

guidance of announce Program de none perplexity announce is either paid form of non person-to-person showtime appearance and furtherance of ideas, goods, or take divulge by an identified sponsor. Five study terminations subscribe to the mission, mvirtuosoy, capacity, media and measurement advertizementthe enforce of paid media by a seller to elapse persuasive teaching ab let out its yields, redevelopments, or administrationis a potent promotional ray. prevalentise takes on numerous forms (national, regional, topical anesthetic, consumer, industrial, retail, crop, shop, institutional, etc.) purported to arrive at a variety of neutrals (aw argonness, interest, preference, stigma recognition, dentmark insistence). advertise decision- devising consists of impersonals context of use, cipher decision, put across decision, media decision, and ad strongness evaluation. Advertisers should establish clear inclinations as to whether the advertizing is su pposed to inform, persuade, or remind demoraliseers. The f act uponors to consider when cathode-ray oscilloscope the advertizement cipher argon stage in the harvest-tide life cycle, commercialize sh be, rivalry and clutter, inf solelyible frequency, and produce substitut qualification. The advertisement cipher fanny be completed base on what is afford adequate, as a office compute of gross r razeue, base on competitors expenditures, or based on aims and tasks, and based on to a greater extent than modern decision instances that atomic number 18 available.The message decision c e truly last(predicate)s for generating messages, evaluating and selecting surrounded by them, and writ of execution them efficaciously and responsibly. The media decision c congerieslys for defining the polish off, frequency, and impact goals choosing among major(ip) media types selecting peculiar(prenominal) media vehicles deciding on media timing geographic allocation of media. Fi nally, execute evaluation calls for evaluating the intercourse and gross revenue effects of ad, before, during, and after the ad.Developing and managing an publicize program (An over great deal) orbit the publicize preysaccording to whether the aim is to inform, remind, or persuadeDeciding on the ad computefive factors to consider accept stage in the crossing life cycle, food trade shargon and consumer base, competition and clutter, ad frequency, and result replaceabilityChoosing the advertizement message productive stage nub contemporariesutilizing an inductive versus deductive frame accomplishmentMessage evaluation and selectiondirection on one core selling proposition and aim for desirability, cliquishness and believability.Message executionimpact numbers non alone on what is tell however how it is said (positioning). Creative lot essential as nearly ca delectation a style, tone, and data formatting for executing the messageSocial certificate of inde btedness analyse engender sure the creative advert does non overstep tender and sanctioned normsDeciding on media and mensuration effectivenessDeciding on pass along ( issue of raft taildid at least once), frequency (total take of metres they atomic number 18 take placeed) and impact (qualitative place)The relationship between reach, frequency and impact, specific media, media timing, geographical allocationa) Media selection steer auditory reason, media habits, product, message, and termsDetermining the close to efficient media to deliver the desired number and type of exposures to the send earshotChoosing among major media typesb) maneuver consultation media habitsc) Product characteristicsd) Message characteristicse) personify (based on cost-per-thousand exposures criterion) peeled mediarethinking the optionsf) Commercial clutter, advertorials, infomercialsg) Result is coming death of traditional majority media, as we accredit it more(prenominal)(pr enominal) than direct and consumer control coming entirelyocating the stimulate outincreasingly spent attracting attention than on the product itselfSelecting specific vehiclesmeasures h emeritush) Circulation, audience, effective audience, effective ad-exposed audiencei) CPM adjustments based on audience choice, audience-attention probability, pillar reference and ad placement policiesDeciding on the media timingj) Macro-scheduling (according to seasonal worker or commercial enterprise trends)k) Micro-scheduling (allocating advertize expenditures in spite of appearance a short catamenia to fuck off the maximum impact)l) Models for media timing Kuehn (if no hunt downover and habitual mien hence voice of gross gross revenue confirm)Deciding on the geographical allocationa) national versus world(prenominal)b) Spot buying (ADIs and DMAs)Evaluating advertisement effectivenessa) Communication-effect look into simulate testing, consumer feedback, portfolio tests, l ab testsb) Sales-effect re calculatesh ar of voice and share of trade, historical prelude, data-based designc) advertizement effectiveness a summary of current investigateBenefits of adEnormous human and visible resources are devoted to advertizement. advertizement is all over in at onces world .People are exposed to mixed forms of publicise finished divers(a) advertizing messages, media, billboards and techniques of every sort.The General receiptss of advertize are as follows.a) economic Benefits of publicise publicise bum play an all- Coperni preempt(a) graphic symbol in the butt by which an economic system that is manoeuvre by ethical. It is a necessary part of the failing of modern market economies, which to day cast down either exist or are uphill in many another(prenominal) an early(a)(prenominal) parts of the world. advertise bunghole be a usable in additionl for sustaining ethical competition that contributes to economic growth. It hatful atten d to mickle by informing them about the availability of desirable impudent products and services and make betterments in existing ones, concur them to stay informed, prudent consumer decisions, contributing to competency and the laborious of prices, and stimulating economic progress through the expansion of business and trade.b) Benefits of establishmental advertizepolitical advertisement outhouse make a character economic circumstance in a market system. As idle and accountable media in a classless system help to cave tendencies toward the monopolies, so political advertize cease make its component part by informing sight about the ideas and policy proposals of parties and skunkdidates, including unseasoned candidates not previously dealn to the public.c) Cultural Benefits of advertizeBecause of the impact publicize has on media that depend on it for revenue, admans crap an opportunity to exert a corroboratory go on decisions about media content. This they do by supporting material of splendiferous aesthetics and moral quality, and particularly by encouraging and making achievable media first appearances which are oriented to minorities whose ask great power different wise to(p) go unserved. Moreover, advertisement can itself contribute to the wagererment of society by excite and shake up people and motivating them to act in government agencys that bring in themselves and differents. advertizing can b matureen lives simply by being humorous and entertaining.d) chaste Benefits of AdvertisingIn many cases affectionate institutions use denote to communicate their messages messages of moral values ,ethics ,patriotism, responsibilities toward the needy, messages concerning health and education, constructive and helpful messages that get up and run people in a variety of beneficial ways.Benefits of publicise from companions celestial horizon quest1. Provides instructionConsumer require nurture about varia nt products. The insufficiency of tuition whitethorn make a consumer buy an low-level product, tolerate high price etc.2. Im show ups brand image advert helps improve brand image. Images are mental pictures of brands. The images projected are geared to bear on the inevitably and transportations of target audience. Favorable image help in generating brand verity and disposition to buy that brand.3. Helps in InnovationAdvertising is seen to discharge this task effectively for new-made products. It reduces the risk of novelty. The cost of innovation can be more than recovered by the sales which advert whitethorn generate and this encourages manufacturers to undertake research and culture.4. New Product rear non-homogeneous strategies including advertising is apply to make possible buyers of new products. Advertising can be used to promote new products and to inform changes in old products.5. Growth of MediaAdvertising enhances the potential for raising advertising re venues. This helps in open new publications and prolonging the media.Role of advertising1. Communication with ConsumersAdvertising is a major way of establishing communication between manufacturers and other organizations providing services or arduous to put across ideas and concepts, on the one hand, and customers, buyers and potential acceptors, on the other.2. vox populiAdvertising attempts to persuade prospective buyers to buy a product/service. In modern markets, the producer who is content with the advertising that merely identifies or informs whitethorn soon learn himself in a vulnerable position.3. percentage to Economic GrowthAdvertising contributes to economic growth by helping to expand the market, particularly for new products, and by helping to develop new market segments.4. Catalyst for changeCreativity inherent in advertising leads to the breakthrough of new relationships that can change the perception of a prospect.Functions of Advertising1. first-string Func tionsHelps to increase salesHelps to reduce overall cost of salesProvides information about the productPersuasion of customers or dealersReceptiveness of new productStimulates distribution of productsInsurance for manufacturing businessConfidence in qualityTo choke seasonal fluctuationTo generate sensory faculty and revenueBuilds value, brand loyalty and preference2. Secondary Functions To encourage salesmen and lend them moral support To hand over information To impress decision makers To impress factory workers To secure better workees To find market To take up an extra edge over the market* step of securityAdvertising is a social waste* Because its cadence overpowering* It does focus on specific group save.* Waste of resources.* Consumers are deceived by advertising.* Misleading information to the public.* It affects the health by having alcohols and cigarettes advertising.* Consumers are stipendiary for those advertisements because fess go out be bringed into the price of the product.* People are lured to buy products which is not needed and not within their reach. (propensity to consume) slightly critics view advertising as a waste of time, talent and property In their view, not only does advertising conduct no value of its own, but its lick is all in all harmful and corrupting for individuals and society. just about generation advertisements depict false assertions which perform a false impact in individuals and society.a) Economic Harms of AdvertisingAdvertising can betray its role as a source of information by misrepresentation and by withholding germane(predicate) facts. Sometimes the information function of media can be subverted by advertisers pressure More oftentimes, advertising is used not simply to inform but to persuade and inspire to entice people to act in current ways, buy definite products or services This is where particular abuses can occur. Brand advertising can nominate serious problems. Often thither are onl y minimal differences among mistakable products of blow brands, and advertising whitethorn attempt to move people to act on the terra firma of irrational motives like brand loyalty, status, fashion, instead of presenting differences in product quality and price as bases for rational choice.b) Harms of Political AdvertisingPolitical advertising can support and assist the workings of the democratic system, but it as well as can obstruct it. This happens when the cost of advertising marge political competition to wealthy candidates or groups Political advertising seeks to emblazon the views and records of opponents and unjustly attacks their reputations. It happens when advertising appeals more to peoples emotions and base instincts to selfishness, bias and aggressiveness toward others, to racial and ethnic prejudice and the like rather than to a reasoned sense of justice and the good of all.c) Cultural Harms of AdvertisingAdvertising besides can possess a corrupting catch upon culture and cultural values.. In the competition to attract ever larger audiences and deliver them to advertisers, communicators can find themselves tempted in fact pressured, subtly or not so subtly to set aside high artistic and moral plebeianplaces and steal away into superficiality Communicators to a fault can find themselves tempted to ignore the educational and social needs of certain segments of the audience the very young, the very old, the poor who do not match the demographic patterns (age, education, income, habits of buying and consuming, etc.) of the kinds of audiences advertisers want to reach.d) Moral and ghostly Harms of AdvertisingAdvertising roundtimes is used to promote products and inculcate attitudes and forms of behavior contrary to moral norms.Characteristics of advertising1. Advertising is paid form of communication.2. Advertising is non personal communication.3. Advertising has an identified sponsor.4. Advertising can be controlled.Adve rtising self-assuranceAn advertising post or ad authority is a service business dedicated to creating, programning and handling advertising (and roughtimes other forms of promotion) for their clients. An ad agency is independent from the client and tolerates an outside tip of view to the effort of selling the clients products or services. An agency can also do by overall merchandise and branding strategies and sales promotions for its clients.An advertising agency acts in the fist place as a consultant to its client, the advertiser in formulating the advertising juts and translating them into advertising campians. The other role of ad agency, to wit placing the advertisment, articles from its traditional association with the media.Typical ad agency clients acknowledge businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, on-going serial publication of related ads, called an advertis ing campaign.Ad agencies come in all size of its, from weakened one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group or WPP Group.Some agencies specialize in particular types of advertising, such as scratch ads or idiot box commercials. Other agencies, especially larger ones, produce work for many types of media (creating integrated marketing communications, or through-the-line (TTL) advertising). The line, in this case, is the traditional scar between media that pay a (traditionally 15%) commission to the agency (mainly circularize media) and the media that do not.Role / Functions of an advertising agency1. Planning the advertisement campaign2. being of the advertisement3. Execution or placing the advertisement in variant media vehicles.4. merchandising and advertising Research5. Sales promotion6. Public relations organise OF ADVERTISING AGENCIESAn agency, depending on its size, volition likely have different departments whic h work on the separate aspects of an paper. An account manager or the account cooking department depart coordinate the work of these departments to insure that all the clients needs are met. The departments within a full-service agency go away typically allowRESEARCH The research department will be able to tender clients with some details about the prospective audience of the concluding advertising campaign, as well as information about the market for the product being advertised. This should include specific market research which leads to a very focused ad campaign, with advertising directed to the ideal target audience. fanciful SERVICES Advertising agencies employ experts in many creative theme that provide quality, professional services that conform to the standards of the industry. Copywriters provide the text for sucker ads, and the scripts for idiot box or radiocommunication advertising. Graphic designers are amenable for the presentation of fall guy ads, and the art department is responsible for providing the necessary images for whatsoever format advertisement is make upd upon. Some agencies have in-house photographers and printers, while others regularly employ the services of contractors.The individuals involved in creative services are responsible for developing the advertising computer program, which sets the theme and tone of the ad campaign. The advertising platform should draw upon specific, positive features of the product advertised and extrapolate the benefits the consumer could expect to conform to as a result of employ the product. The campaign, through the development of this platform, should prove to be eye-catching, memorable, and in some way unique. The advertising that is remembered by consumers is that which stands out from the rest it is the advertising agencys (and specifically the creative services departments) responsibility to provide this quality for their clients.The final advertising provided by an agency s hould be richly developed and polished. Television commercials should be produced with professionalism print ads should be attractive, informational, and eye-catching radio spots should be focused and of high audio quality.MEDIA buying wiz of the services provided by advertising agencies is the careful placement of terminate advertisements in various media, with an eye toward maximizing the potential audience. The research search conducted by the agency will inform any media-buying decisions.An agency will be able to negotiate the terms of any contracts made for placing ads in any of various media. A full-service agency will deal confidently with television, radio, themes, and magazines. Some agencies are also branching into direct mail marketing and point of purchase incentives some agencies have expanded into Inter can advertising and some agencies will also place an ad in the local discolour pages, or utilize outdoor advertising or one of the more creative avenues of incide ntal advertising, such as commercial signs on public buses or subways or on billboards.The media-buying staff of an advertising agency will draw on specific research done for the client, as well as on past experience with different media. with this research and careful consideration, the agency will develop a media plan this should be a fully realized plan of attack for acquire out the clients message. Some factors to be considered in the development of the media plan includeCost Per Thousand This refers to the cost of an advertisement per one thousand potential customers it reaches. Media-buyers use this method to compare the various media avenues they must choose between. For example, television ads are considerably more expensive than newspaper ads, but they also reach many more people. Cost per thousand is a straight way to evaluate how to best pass by advertising dollars if a newspaper ad costs $100 and potentially reaches 2,000 customers, the cost per thousand is $50. If a television ad costs $1000 to produce and place in adapted television spots, and reaches a potential of 40,000 viewers, the cost per thousand is only $25. chance upon This term is used when discussing the scope of an advertisement. The reach of an ad is the number of households which can safely be assumed will be touched by the clients message. This is normally expressed as a percentage of total households. For example, if at that place are 1,000 households in a town, and 200 of those households receive the daily paper, the reach of a well-placed newspaper ad could be expressed as 20 percent one-fifth of the households in the community can be expect to see the advertisement. absolute frequency The frequency of a message refers to how often a household can be expected to be exposed to the clients message. Frequency differs widely between media, and even within the same medium. Newspapers, for example, are scan less often on Saturdays, and by many more households (and more thoroug hly) on Sundays. Fluctuation like this occurs in all media. perseveration The media-buyer will also need to consider the timing of advertisements. Depending on the clients product, the ads can be as spread out over the course of a day (for radio or television advertisements), a week (for radio, television, or print advertisements), or a month (radio, television, print, or other media). Of course, seasonal realities influence the placement of advertisements as well. Clothing retailers may need to run more advertisements as a new school year come neares, or when new summer merchandise appears. Hardware stores may want to try their wares in the weeks preceding the Christmas holiday. Grocery stores or pharmacies, however, might benefit from more evenly distributed advertising, such as weekly advertisements that emphasize the year-round needs of consumers.DAGMAR accession HIERARCHY OF EFFECTS MODELRussell H Colley (1961) prepared a get across for the association of national adverti sers titled defining Advertising Goals for metric Advertising Results (DAGMAR). He developed a baby-sit for setting advertising objectives and measuring the results of an ad campaign. According to this model, communications effect is the logical basis for setting advertising objective and goals against which results should be measured.In Colleys wordsAdvertising think over purely and simply is to communicate to a defined audience information and a frame of mind that stimulate action. Advertising come through or fails depending on how well it communi-cate the desired information and attitude to the right time and at the right cost. cognizance knowledge sentence do there are no significant differences between Colleys proposed model and other all-important(a) hierarchy of effects models. unmatchable important contribution of DAGMAR was its ability to get through what continuous a good objective. According to Colley, the objective should have the following featuresStated in term of concrete and measurable communication tasks. fix a target audience.Indicate a benchmark or standard starting point.Specify a time period for accomplishing the objective or objectives.Concrete measurable tasksThe DAGMAR blast requires that the measurement procedure should also be specified. There must be a way to position whether the think ad message has been communicated properly to the target audience. If the ad message communicates that brand X is the best on Q attribute, and so a questionnaire may include the request, rank the following brands on best Q attribute. The responses could be quantified to symbolise percentage of audience who rated brand X as the best on Q attribute.Target audienceAnother important feature of good objectives is the spec of a well-defined target audience. Though the primary target audience for a orders product or service is recognize in situation depth psychology, yet it may need some refining.For example, user of a product may be further cat egorized as heavy, medium or light users.Benchmark and horizontal surface of change soughtIt is important to know the target audiences present status with respect to responses variable and then fix the degree of change desired by the advertising campaign.Assessment and lit crit of DAGMAR approachThe DAGMAR approach has had an enormous influence on the advertising formulation sour and objective setting. It has focused the advertisers attention on the important and value of using communication-based objectives as against sales based objectives to measure the impact and success of an ad campaign.The approach has not been totally accepted by everyone in the advertising field. A number of questions have been raised concerning its value as an advertising planning tool.Problems with responses hierarchySales as the advertising goalPracticality and costsInhibits creativityHierarchy-of-Effects ModelsAmong advertising theories, the hierarchy-of-effects model is predominant. It shows clea r steps of how advertising works, even though it has been criticized on some points, such as that people do not exactly follow these sequences. There are various versions of hierarchy-of-effects model. AIDA model is initiatory and simplest.Awareness Interest Desire sueAIDA model was presented by Elmo Lewis to explain how personal selling works. It shows a set of stair-step stages which describe the process leading a potential customer to purchase. The stages, Attention, Interest, Desire, and Action, form a analog hierarchy. It demonstrates that consumers must be aware of a products existence, be kindle comely to pay attention to the products features/benefits, and have a desire to benefit from the products offerings. Action, the tail stage, would come as a natural result of vogue through the first three stages. Although this idea was rudimentary, it led to the later emerging field of consumer behavior research.Hierarchy-of-effects models have many variant models. DAGMAR (De fining Advertising Goals for metrical Advertising Results) model suggests comparable but different steps.Awareness Comprehension Conviction ActionDAGMAR model suggests that the ultimate objective of advertising must carry a consumer through four levels of understanding from unawareness to Awarenessthe consumer must first be aware of a brand or company Comprehensionhe or she must have a intelligence of what the product is and its benefits Convictionhe or she must come up at the mental disposition or conviction to buys the brand Actionfinally, he or she actually buy that product.Determining the Advertising cypherAn important goal in determining the size of an advertising call downt is to maximise profits. To achieve this goal, even approximately, is a very complex problem. many a(prenominal) procedures or finds have been adopted to provide what appears to be a probable dress from one point of view or another, but which, more or less people in the business would agree, a re very crude at best. Hence, such approaches as percentage-of-sales, all-you-can-afford, objective-and-task and competitive-parity, are used because scientific approached either dont exist, or have not been able to prove their superiority. The difficulties of devising a scientific approach are fairly well know. The multitude of factors involved and the scarceness of relevant and accurate data are only two of many which could be listed.Marginal AnalysisThe theoretical underpinning of an advertising- compute decision is based on borderline analysis and is easily expressed. A firm would continue to add to the advertising budget as long as the incremental expenditures are exceeded by the marginal revenue they generate.Budgeting Decision RulesThere are several(prenominal) decision rules on which many firms dray in making budget decisions. 4 such rules will be described. The rules are basically justified by arguing that budgets based on them are unlikely to be off the beaten track(pr edicate) from the actual optimal budget if a marginal analysis could be performed. In some cases, the rules are used in combination, the net budget being a compromise among several.* Percentage of SalesOne rule of thumb used in setting advertising budgets is the percentage of sales. away sales or a forecast of future sales can be used as the base. A brand may have devoted 5% of its budget to advertising in the past. Thus, if the plan calls for doing $40 trillion worth of business next year, a $2 million advertising budget might be proposed. A similar decision could be based upon market share. For example, a brand could divvy up $1 million for every share point it holds.The percentage-of-sales guide is the almost common approach to setting advertising budgets. If a firm or brand has been successfully over several years using the percentage-of-sales approach, it might be assumed that the decision rule yielded budgets reasonably close to the optimal, so there is little incentive to change to another approach in setting budgets. The rule does tend to make explicit the marketing-mix decision, the allocation of the budget to the various elements of the marketing program. Furthermore, it provides comfort to a prudent financial executive who likes to know that her or his firm can afford the advertising. Finally, if competitors also use such a rule, it leads to a certain stability of advertising within the industry, which may be useful. If there is a ceiling on the size of the market, it is wise to avoid precipitating a war over advertising expenditure.* All You Can AffordFirms with limited resources may decide to spend all that they can reasonably allocate to advertising after other undeniable expenditures have been allocated. This rule usually ensures that they are not advertising too heavily, that advertising moneys are not being wasted. It thus does have some logic. Of course, if the value of more advertising could be demonstrated, extra money could usually be raised, so the limitation may be pretty artificial.* militant ParityAnother guide is to adjust the advertising budge so that it is comparable to those of competitors. The logic is that the collective minds of the firms in the industry will plausibly generate advertising budgets that are somewhat close to the optimal. Everyone could not be too far from the optimal. Furthermore, any departure from the industry norms could strike a spending war.* Objective and TaskObjective and task, more an approach to budgeting than a simple decision rule, is used by two-thirds of the largest advertisers. An advertising objective is first established in specific terms. For example, a firm may decide to attempt to increase the awareness of its brand in a certain population segment to 50 percent. The tasks that are requited to accomplish this objective are then detailed. They might involve the development of a particular advertising campaign exposing the relevant audience an average of the five tim es. The cost of obtaining these exposures then becomes the advertising budget. This approach assumes that there is a causal lessen from advertising to sales. In effect, it represents an effort to introduce intervening variables such as awareness or attitude, which will presumable be indicators of future sales as well as ready sales.Steps1. Task interpretation The objective of the advertising programme, are to be defined. The objectives may be to conclusion an immediate sale Increase sales Create awareness structure company goodwill and corporate image.2. Determining the type of strategy, media, and amount of exposuManagement of Advertising ProgramManagement of Advertising ProgramADVERTISING MANAGEMENTAdvertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Five major decisions involve the mission, money, message, media and measurementAdvertisingthe use of paid media by a seller to communicate persuasive inform ation about its products, services, or organizationis a potent promotional tool. Advertising takes on many forms (national, regional, local, consumer, industrial, retail, product, brand, institutional, etc.) designed to achieve a 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.Developing and managing an advertising program (An overview)Setting the advertising objectivesaccording to whether the aim is to inform, remind, or persuadeDeciding on the advertising budgetfive factors to consider include stage in the product life cycle, market share and consumer base, competition and clutter, advertising frequency, and product substitutabilityChoosing the advertising messagecreative stageMessage generationutilizing an inductive versus deductive frameworkMessage evaluation and selectionfocus on one core selling proposition and aim for desirability, exclusiveness and believability.Message executionimpact depends not only on what is said but how it is said (positioning). Creative people must also find a style, tone, and format for executing the messageSocial responsibility reviewmake sure the creative advertising does not overstep social and legal normsDeciding on media and measuring effectivenessDeciding on reach (number of people exposed at least once), frequency (total number of times they are reached) and impact (qualitative value)The relationship between reach, frequency and impact, specific media, media timing, geographical allocationa) Media selection target audience, media habits, product, message, and costDetermining the most cost-effective media to deliver the desired number and type of exposures to the target audienceChoosing among major media typesb) Target audience media habitsc) Product characteristicsd) Message characteristicse) Cost (based o n cost-per-thousand exposures criterion)New mediarethinking the optionsf) Commercial clutter, advertorials, infomercialsg) Result is coming death of traditional mass media, as we know itmore direct and consumer control comingAllocating the budgetincreasingly spent attracting attention than on the product itselfSelecting specific vehiclesmeasures includeh) Circulation, audience, effective audience, effective ad-exposed audiencei) CPM adjustments based on audience quality, audience-attention probability, editorial quality and ad placement policiesDeciding on the media timingj) Macro-scheduling (according to seasonal or business trends)k) Micro-scheduling (allocating advertising expenditures within a short period to obtain the maximum impact)l) Models for media timing Kuehn (if no carryover and habitual behavior then percent of sales justified)Deciding on the geographical allocationa) National versus internationalb) Spot buying (ADIs and DMAs)Evaluating advertising effectivenessa) Comm unication-effect researchcopy testing, consumer feedback, portfolio tests, laboratory testsb) Sales-effect researchshare of voice and share of market, historical approach, experimental designc) Advertising effectiveness a summary of current researchBenefits of AdvertisingEnormous human and material resources are devoted to advertising. Advertising is everywhere in todays world .People are exposed to various forms of advertising through various advertising messages, media, billboards and techniques of every sort.The General benefits of advertising are as follows.a) Economic Benefits of AdvertisingAdvertising can play an important role in the process by which an economic system that is guided by ethical. It is a necessary part of the functioning of modern market economies, which today either exist or are emerging in many parts of the world. Advertising can be a useful tool for sustaining ethical competition that contributes to economic growth. It can help people by informing them abou t the availability of desirable new products and services and improvements in existing ones, helping them to stay informed, prudent consumer decisions, contributing to efficiency and the lowering of prices, and stimulating economic progress through the expansion of business and trade.b) Benefits of Political AdvertisingPolitical advertising can make a contribution economic situation in a market system. As free and responsible media in a democratic system help to counteract tendencies toward the monopolies, so political advertising can make its contribution by informing people about the ideas and policy proposals of parties and candidates, including new candidates not previously known to the public.c) Cultural Benefits of AdvertisingBecause of the impact advertising has on media that depend on it for revenue, advertisers have an opportunity to exert a positive influence on decisions about media content. This they do by supporting material of excellent aesthetics and moral quality, an d particularly by encouraging and making possible media presentations which are oriented to minorities whose needs might otherwise go unserved. Moreover, advertising can itself contribute to the betterment of society by uplifting and inspiring people and motivating them to act in ways that benefit themselves and others. Advertising can brighten lives simply by being witty and entertaining.d) Moral Benefits of AdvertisingIn many cases social institutions use advertising to communicate their messages messages of moral values ,ethics ,patriotism, responsibilities toward the needy, messages concerning health and education, constructive and helpful messages that educate and motivate people in a variety of beneficial ways.Benefits of advertising from companys view point1. Provides informationConsumer needs information about various products. The lack of information may make a consumer buy an inferior product, pay high price etc.2. Improves brand imageAdvertisement helps improve brand ima ge. Images are mental pictures of brands. The images projected are geared to match the needs and expectations of target audience. Favorable image help in generating brand loyalty and disposition to buy that brand.3. Helps in InnovationAdvertising is seen to perform this task effectively for new products. It reduces the risk of innovation. The cost of innovation can be more than recovered by the sales which advertising may generate and this encourages manufacturers to undertake research and development.4. New Product LaunchVarious strategies including advertising is used to make potential buyers of new products. Advertising can be used to promote new products and to inform changes in old products.5. Growth of MediaAdvertising enhances the potential for raising advertising revenues. This helps in launching new publications and expanding the media.Role of advertising1. Communication with ConsumersAdvertising is a major way of establishing communication between manufacturers and other o rganizations providing services or trying to put across ideas and concepts, on the one hand, and customers, buyers and potential acceptors, on the other.2. PersuasionAdvertising attempts to persuade prospective buyers to buy a product/service. In modern markets, the producer who is content with the advertising that merely identifies or informs may soon find himself in a vulnerable position.3. Contribution to Economic GrowthAdvertising contributes to economic growth by helping to expand the market, particularly for new products, and by helping to develop new market segments.4. Catalyst for changeCreativity inherent in advertising leads to the discovery of new relationships that can change the perception of a prospect.Functions of Advertising1. Primary FunctionsHelps to increase salesHelps to reduce overall cost of salesProvides information about the productPersuasion of customers or dealersReceptiveness of new productStimulates distribution of productsInsurance for manufacturing busi nessConfidence in qualityTo eliminate seasonal fluctuationTo generate awareness and revenueBuilds value, brand loyalty and preference2. Secondary Functions To encourage salesmen and lend them moral support To furnish information To impress executives To impress factory workers To secure better employees To capture market To have an extra edge over the market* Feeling of securityAdvertising is a social waste* Because its time consuming* It does focus on specific group only.* Waste of resources.* Consumers are deceived by advertising.* Misleading information to the public.* It affects the health by having alcohols and cigarettes advertising.* Consumers are paying for those advertisements because fess will be added into the price of the product.* People are lured to buy products which is not needed and not within their reach. (propensity to consume)Some critics view advertising as a waste of time, talent and money In their view, not only does advertising have no value of its own, but i ts influence is entirely harmful and corrupting for individuals and society. Sometimes advertisements depict false assertions which create a false impact in individuals and society.a) Economic Harms of AdvertisingAdvertising can betray its role as a source of information by misrepresentation and by withholding relevant facts. Sometimes the information function of media can be subverted by advertisers pressure More often, advertising is used not simply to inform but to persuade and motivate to convince people to act in certain ways, buy certain products or services This is where particular abuses can occur. Brand advertising can raise serious problems. Often there are only negligible differences among similar products of different brands, and advertising may attempt to move people to act on the basis of irrational motives like brand loyalty, status, fashion, instead of presenting differences in product quality and price as bases for rational choice.b) Harms of Political AdvertisingPo litical advertising can support and assist the working of the democratic system, but it also can obstruct it. This happens when the costs of advertising limit political competition to wealthy candidates or groups Political advertising seeks to distort the views and records of opponents and unjustly attacks their reputations. It happens when advertising appeals more to peoples emotions and base instincts to selfishness, bias and hostility toward others, to racial and ethnic prejudice and the like rather than to a reasoned sense of justice and the good of all.c) Cultural Harms of AdvertisingAdvertising also can have a corrupting influence upon culture and cultural values.. In the competition to attract ever larger audiences and deliver them to advertisers, communicators can find themselves tempted in fact pressured, subtly or not so subtly to set aside high artistic and moral standards and lapse into superficiality Communicators also can find themselves tempted to ignore the educa tional and social needs of certain segments of the audience the very young, the very old, the poor who do not match the demographic patterns (age, education, income, habits of buying and consuming, etc.) of the kinds of audiences advertisers want to reach.d) Moral and Religious Harms of AdvertisingAdvertising sometimes is used to promote products and inculcate attitudes and forms of behavior contrary to moral norms.Characteristics of advertising1. Advertising is paid form of communication.2. Advertising is non personal communication.3. Advertising has an identified sponsor.4. Advertising can be controlled.Advertising AgencyAn advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for their clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the clients products or services. An agency can also handle overall marketing and b randing strategies and sales promotions for its clients.An advertising agency acts in the fist place as a consultant to its client, the advertiser in formulating the advertising plans and translating them into advertising campians. The other role of ad agency, namely placing the advertisment, articles from its traditional association with the media.Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of related ads, called an advertising campaign.Ad agencies come in all sizes, from small one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group or WPP Group.Some agencies specialize in particular types of advertising, such as print ads or television commercials. Other agencies, especially larger ones, produce work for many types of media (creating integrated marketing communications, or through-the-line (TTL ) advertising). The line, in this case, is the traditional marker between media that pay a (traditionally 15%) commission to the agency (mainly broadcast media) and the media that do not.Role / Functions of an advertising agency1. Planning the advertisement campaign2. Creation of the advertisement3. Execution or placing the advertisement in various media vehicles.4. Marketing and advertising Research5. Sales promotion6. Public relationsSTRUCTURE OF ADVERTISING AGENCIESAn agency, depending on its size, will likely have different departments which work on the separate aspects of an account. An account manager or the account planning department will coordinate the work of these departments to insure that all the clients needs are met. The departments within a full-service agency will typically includeRESEARCH The research department will be able to provide clients with some details about the prospective audience of the final advertising campaign, as well as information about the market for the product being advertised. This should include specific market research which leads to a very focused ad campaign, with advertising directed to the ideal target audience.CREATIVE SERVICES Advertising agencies employ experts in many creative fields that provide quality, professional services that conform to the standards of the industry. Copywriters provide the text for print ads, and the scripts for television or radio advertising. Graphic designers are responsible for the presentation of print ads, and the art department is responsible for providing the necessary images for whatever format advertisement is decided upon. Some agencies have in-house photographers and printers, while others regularly employ the services of contractors.The individuals involved in creative services are responsible for developing the advertising platform, which sets the theme and tone of the ad campaign. The advertising platform should draw upon specific, positive features of the product advertis ed and extrapolate the benefits the consumer could expect to receive as a result of using the product. The campaign, through the development of this platform, should prove to be eye-catching, memorable, and in some way unique. The advertising that is remembered by consumers is that which stands out from the rest it is the advertising agencys (and specifically the creative services departments) responsibility to provide this quality for their clients.The final advertising provided by an agency should be fully developed and polished. Television commercials should be produced with professionalism print ads should be attractive, informational, and attention-getting radio spots should be focused and of high audio quality.MEDIA BUYING One of the services provided by advertising agencies is the careful placement of finished advertisements in various media, with an eye toward maximizing the potential audience. The research search conducted by the agency will inform any media-buying decision s.An agency will be able to negotiate the terms of any contracts made for placing ads in any of various media. A full-service agency will deal confidently with television, radio, newspapers, and magazines. Some agencies are also branching into direct mail marketing and point of purchase incentives some agencies have expanded into Internet advertising and some agencies will also place an ad in the local yellow pages, or utilize outdoor advertising or one of the more creative avenues of incidental advertising, such as commercial signs on public buses or subways or on billboards.The media-buying staff of an advertising agency will draw on specific research done for the client, as well as on past experience with different media. Through this research and careful consideration, the agency will develop a media plan this should be a fully realized plan of attack for getting out the clients message. Some factors to be considered in the development of the media plan includeCost Per Thousand This refers to the cost of an advertisement per one thousand potential customers it reaches. Media-buyers use this method to compare the various media avenues they must choose between. For example, television ads are considerably more expensive than newspaper ads, but they also reach many more people. Cost per thousand is a straightforward way to evaluate how to best spend advertising dollars if a newspaper ad costs $100 and potentially reaches 2,000 customers, the cost per thousand is $50. If a television ad costs $1000 to produce and place in suitable television spots, and reaches a potential of 40,000 viewers, the cost per thousand is only $25.Reach This term is used when discussing the scope of an advertisement. The reach of an ad is the number of households which can safely be assumed will be affected by the clients message. This is usually expressed as a percentage of total households. For example, if there are 1,000 households in a town, and 200 of those households receive th e daily paper, the reach of a well-placed newspaper ad could be expressed as 20 percent one-fifth of the households in the community can be expected to see the advertisement.Frequency The frequency of a message refers to how often a household can be expected to be exposed to the clients message. Frequency differs widely between media, and even within the same medium. Newspapers, for example, are read less often on Saturdays, and by many more households (and more thoroughly) on Sundays. Fluctuation like this occurs in all media.Continuity The media-buyer will also need to consider the timing of advertisements. Depending on the clients product, the ads can be evenly spread out over the course of a day (for radio or television advertisements), a week (for radio, television, or print advertisements), or a month (radio, television, print, or other media). Of course, seasonal realities influence the placement of advertisements as well. Clothing retailers may need to run more advertisement s as a new school year approaches, or when new summer merchandise appears. Hardware stores may want to emphasize their wares in the weeks preceding the Christmas holiday. Grocery stores or pharmacies, however, might benefit from more evenly distributed advertising, such as weekly advertisements that emphasize the year-round needs of consumers.DAGMAR APPROACH HIERARCHY OF EFFECTS MODELRussell H Colley (1961) prepared a report for the association of national advertisers titled defining Advertising Goals for Measured Advertising Results (DAGMAR). He developed a model for setting advertising objectives and measuring the results of an ad campaign. According to this model, communications effect is the logical basis for setting advertising objective and goals against which results should be measured.In Colleys wordsAdvertising job purely and simply is to communicate to a defined audience information and a frame of mind that stimulate action. Advertising succeed or fails depending on how w ell it communi-cate the desired information and attitude to the right time and at the right cost.AwarenessComprehensionConvictionActionThere are no significant differences between Colleys proposed model and other important hierarchy of effects models. One important contribution of DAGMAR was its ability to clarify what continuous a good objective. According to Colley, the objective should have the following featuresStated in term of concrete and measurable communication tasks.Specify a target audience.Indicate a benchmark or standard starting point.Specify a time period for accomplishing the objective or objectives.Concrete measurable tasksThe DAGMAR approach requires that the measurement procedure should also be specified. There must be a way to determine whether the intended ad message has been communicated properly to the target audience. If the ad message communicates that brand X is the best on Q attribute, then a questionnaire may include the request, rank the following brands on best Q attribute. The responses could be quantified to mean percentage of audience who rated brand X as the best on Q attribute.Target audienceAnother important feature of good objectives is the specification of a well-defined target audience. Though the primary target audience for a companys product or service is describe in situation analysis, yet it may need some refining.For example, user of a product may be further categorized as heavy, medium or light users.Benchmark and degree of change soughtIt is important to know the target audiences present status with respect to responses variable and then determine the degree of change desired by the advertising campaign.Assessment and criticism of DAGMAR approachThe DAGMAR approach has had an enormous influence on the advertising planning process and objective setting. It has focused the advertisers attention on the important and value of using communication-based objectives as against sales based objectives to measure the impact a nd success of an ad campaign.The approach has not been totally accepted by everyone in the advertising field. A number of questions have been raised concerning its value as an advertising planning tool.Problems with responses hierarchySales as the advertising goalPracticality and costsInhibits creativityHierarchy-of-Effects ModelsAmong advertising theories, the hierarchy-of-effects model is predominant. It shows clear steps of how advertising works, even though it has been criticized on some points, such as that people do not exactly follow these sequences. There are various versions of hierarchy-of-effects model. AIDA model is initiatory and simplest.Awareness Interest Desire ActionAIDA model was presented by Elmo Lewis to explain how personal selling works. It shows a set of stair-step stages which describe the process leading a potential customer to purchase. The stages, Attention, Interest, Desire, and Action, form a linear hierarchy. It demonstrates that consumers must be aw are of a products existence, be interested enough to pay attention to the products features/benefits, and have a desire to benefit from the products offerings. Action, the fourth stage, would come as a natural result of movement through the first three stages. Although this idea was rudimentary, it led to the later emerging field of consumer behavior research.Hierarchy-of-effects models have many variant models. DAGMAR (Defining Advertising Goals for Measured Advertising Results) model suggests similar but different steps.Awareness Comprehension Conviction ActionDAGMAR model suggests that the ultimate objective of advertising must carry a consumer through four levels of understanding from unawareness to Awarenessthe consumer must first be aware of a brand or company Comprehensionhe or she must have a comprehension of what the product is and its benefits Convictionhe or she must arrive at the mental disposition or conviction to buys the brand Actionfinally, he or she actually buy that product.Determining the Advertising BudgetAn important goal in determining the size of an advertising budget is to maximize profits. To achieve this goal, even approximately, is a very complex problem. Many procedures or rules have been adopted to provide what appears to be a reasonable answer from one point of view or another, but which, most people in the business would agree, are very crude at best. Hence, such approaches as percentage-of-sales, all-you-can-afford, objective-and-task and competitive-parity, are used because scientific approached either dont exist, or have not been able to prove their superiority. The difficulties of devising a scientific approach are fairly well know. The multitude of factors involved and the scarcity of relevant and accurate data are only two of many which could be listed.Marginal AnalysisThe theoretical underpinning of an advertising-budget decision is based on marginal analysis and is easily expressed. A firm would continue to add to the advertising budget as long as the incremental expenditures are exceeded by the marginal revenue they generate.Budgeting Decision RulesThere are several decision rules on which many firms dray in making budget decisions. Four such rules will be described. The rules are basically justified by arguing that budgets based on them are unlikely to be far from the actual optimal budget if a marginal analysis could be performed. In some cases, the rules are used in combination, the net budget being a compromise among several.* Percentage of SalesOne rule of thumb used in setting advertising budgets is the percentage of sales. Past sales or a forecast of future sales can be used as the base. A brand may have devoted 5% of its budget to advertising in the past. Thus, if the plan calls for doing $40 million worth of business next year, a $2 million advertising budget might be proposed. A similar decision could be based upon market share. For example, a brand could allocate $1 million for every share point it holds.The percentage-of-sales guide is the most common approach to setting advertising budgets. If a firm or brand has been successfully over several years using the percentage-of-sales approach, it might be assumed that the decision rule yielded budgets reasonably close to the optimal, so there is little incentive to change to another approach in setting budgets. The rule does tend to make explicit the marketing-mix decision, the allocation of the budget to the various elements of the marketing program. Furthermore, it provides comfort to a prudent financial executive who likes to know that her or his firm can afford the advertising. Finally, if competitors also use such a rule, it leads to a certain stability of advertising within the industry, which may be useful. If there is a ceiling on the size of the market, it is wise to avoid precipitating a war over advertising expenditure.* All You Can AffordFirms with limited resources may decide to spend all that they can reasonably allocate to advertising after other unavoidable expenditures have been allocated. This rule usually ensures that they are not advertising too heavily, that advertising moneys are not being wasted. It thus does have some logic. Of course, if the value of more advertising could be demonstrated, extra money could usually be raised, so the limitation may be somewhat artificial.* Competitive ParityAnother guide is to adjust the advertising budge so that it is comparable to those of competitors. The logic is that the collective minds of the firms in the industry will probably generate advertising budgets that are somewhat close to the optimal. Everyone could not be too far from the optimal. Furthermore, any departure from the industry norms could precipitate a spending war.* Objective and TaskObjective and task, more an approach to budgeting than a simple decision rule, is used by two-thirds of the largest advertisers. An advertising objective is first established in specific terms. For example, a firm may decide to attempt to increase the awareness of its brand in a certain population segment to 50 percent. The tasks that are requited to accomplish this objective are then detailed. They might involve the development of a particular advertising campaign exposing the relevant audience an average of the five times. The cost of obtaining these exposures then becomes the advertising budget. This approach assumes that there is a causal flow from advertising to sales. In effect, it represents an effort to introduce intervening variables such as awareness or attitude, which will presumable be indicators of future sales as well as immediate sales.Steps1. Task Definition The objective of the advertising programme, are to be defined. The objectives may be to Close an immediate sale Increase sales Create awareness Building company goodwill and corporate image.2. Determining the type of strategy, media, and amount of exposu