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Advertising Management

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The Field of

Advertising Management

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Market / Consumer Behavior

Government

Competition

Ad Agency

Media

Research

Agency

Advertiser

Control Inst. Facilitating Inst.

Institutions Involved in the Field of

Advertising

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Research Suppliers

Advertiser Ad agency Media

Role of the Facilitating Institutions

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Advertising Management

Planning and Decision Making

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Framework of Advertising Planning

and Decision Making

Situation Analysis

Marketing Program

Integrated Mar. Com. Plan

Advertising Plan

Implementation

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The process starts with an analysis of the

Brands external & internal environment

Situation Analysis

Marketing Program

Consumer analysis

Competitor analysis

Brand Analysis- SWOT

Advertising Plan

Implementation

Environmental analysis

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Role of Advertising

Emerges from the Marketing Program

Situation Analysis

Marketing Program

It defines the role of eachelements of the Marketing Mix

And indicates how all elements

will support and synergize for

maximum impact

IMC & Advertising plan

Implementation

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The Advertising Plan Includes

Situation Analysis

Marketing Program

Advertising Plan

And IMC

Setting Objectives -

(segmentation-positioning)

Media strategy and tactics

Message strategy and tactics

Implementation

Coordination and synergy

with other IMC tools

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Advertising Planning and

Decision Making

Situation Analysis

Marketing Program

IMC /Advertising Plan

Implementation

Facilitating Agencies

Social, legal and other

constraints

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How does Advertising work ?

Advertising is persuasive communication

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The Communication Process

MessageSource Receiver Destination

Media WOM

Perception Process

Message

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The

Persuasion

Process of

Advertising

is through

a variety

of

advertising

effects

Awareness/

Familiarity

Brand Benefits

and Information

Creating Image /

Personality

Associating

Feelings with Brand

Linkage of Brand withPeers/Experts/Group Norms

Reminder / Brand trial

Inducement

BrandAttitude

PurchaseBehavior

The Persuasion Process of Advertising

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Setting Goals and Objectives

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Objectives Must be Operational

Operational Advertising Objectives -

Provide criteria for decision making

Serve as a communication and coordination tool

Provide criteria to evaluate performance

Can Sales be an Operative Objectives if

Advertising ha

s no direct rela

tionship withsales?

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Advertising Objectives

Setting Objectives involve 3 considerations

1. Behavioral decisions that Advertising must

influence e.g. trail purchase, repeat purchase

2. The decision making process thatinfluences behavior and precedes

communication

3. The Target Segment

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Sales

A meaningful Advertising objective?? Advertising has a lagged effect

New customers Advertising Immediate Sales Future Sales

Change attitude / improve image

Isolating Ad impact from other elements of the

marketing mix is difficult

Hence sales cannot be an operative objective

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Sales Strategy -

The basis for Advertising Objectives

Sales growth comes from -

New customers buying

Old customers staying loyal

Old customers consuming more

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Demand Generation Offensive Strategy

Market dynamics:- Sales grow because of new customers buying

Offensive Marketing Strategies Primary demand generation an appropriate strategy

for a market leader

Secondary demand generation an appropriatestrategy in a mature market

Those not the

buying product

Existing

customers

Those buying

Other brands

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Demand Generation

Defensive Strategy

Market dynamics:

Sales grow with old customers staying loyal

Defensive Marketing Strategy Recall the important brand features

Reinforce use experience

Consumer promotions

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Demand Generation

I

ncrease Consumption

Market dynamics:

Sales grow with product form expansion More frequent usage / share of requirement

(SOR)

New use applications

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Secondary Demand-

New customers using

other brands

Primary Demand -

Customers trying

the category for the

first time

Existing customer

Loyalty

More Consumption

New uses and more usage

Behavioral

Responses

that drive

Purchase

Marketing / Sales Strategies & Behavioral Objectives

Induce Trial

Purchase

Induce Trial

Purchase

Loyalty

Increased

Usage / SOR

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The Influence of Advertising

on Desired Behavior

Advertising is not effective in directly evoking desired

action -Purchase.

Advertising causal intervening response

desired behavioral response Sales

Sales Promotions, Direct Marketing, RetailAdvertising

used in conjunction with Advertising can drive sales

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The

Persuasion

Process of

Advertisingis through

a variety

of

advertising

effects

Awareness/

Familiarity

Brand Benefits

and Information

Creating Image /

Personality

Associating

Feelings with Brand

Linkage of Brand withPeers/Experts/Group Norms

Reminder / Brand trial

Inducement

BrandAttitude

PurchaseBehavior

The Persuasion Process of Advertising

T

hese Intervening Variables between Advertising and Action aremore effective Operational Advertising Objectives than Sales

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The

Persuasion

Process ofAdvertising

is through

a variety

of effects

Awareness /

Familiarity

Brand Benefit

Information

Creating image -

personality / users

Associating feelings

with Brand use

Linkage with peers /

experts/group norms

Reminder / Brand trial

inducement

Purchase

These Intervening Variables have a causal relationship between

Advertising & Sales

Trial Purchase

& Loyalty

Trial Purchase &

Increased usage

Loyalty

Loyalty

Loyalty

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Advertising Objectives (the Intervening

Response Variables that are persuasive in its

context)are determined by the type of Sales

Strategy and Behavioral Objectives

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Advertising Objectives

Reflect th

eT

argetSegment

The segment & sub-segment can be defined by

Behavioral measures non-users, other brand

users, heavy / light / loyal users etc.

Advertising response measures unaware, not

convinced of key benefits, diffused / sharp image, etc

Lifestyle - attitude and opinions, interests

Benefits sought

Demographic, psychographics, geographic basis -

more relevant for media decisions

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Other Persuasion Models

AIDA Hierarchy Innovatioof Effects Adoption

AttentionAwareness

Knowledge

Awareness

Interest

Desire

Liking

Preference

Conviction

Interest

Evaluation

Cognitive

Stage

Affective

Stage

Action

Stage

Action Purchase

Trial

Adoption

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Segmentation and Positioning

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Segmentation Strategies

Undifferentiated orAggregation Strategy : All

groups are the focus of a singleMarketing Program

Concentration : all marketing programs are focused

on one large sub-group

Concentration on a small segment is a Niche Strategy

Differentiation : separate marketing programs for 2 or

more sub-groups

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TM and Media Reach Approaches

Controlled Coverage using niche media to

reach only the desired segment e.g. trade

magazines

Customer Selection using mass media for

Reach is directed at mass audiences

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Positioning

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PositioningStrategy Approaches

Brands can be positioned by single or multiple

approaches:

Product attributes or consumer benefit

Price-quality

Use or application

Users

Product class

Cultural symbols

Competitors

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Positioning is Communicated

Primarily th

rough

Advertising It is a relative concept that indicates the position

of the brand vis--vis other brands

It determines the nature of all the elements of the

marketing mix