Advertising: Features and Types

• Advertising is a paid form of communication used to promote products, services, or ideas to a target audience.
• Advertising aims to inform, persuade, and remind consumers about a brand or offering.

Features of Advertising

• Paid Form: Advertising involves a cost to the sponsor.
• Non-Personal: It is directed at a mass audience rather than individuals.
• Promotional Tool: Advertising aims to promote products, services, or ideas.
• Controlled Message: The advertiser controls the content, timing, and medium of the message.
• Persuasive: Advertising seeks to influence consumer behavior and drive sales.
• Targeted: Advertisements are often tailored to specific audiences.

Types of Advertising

• Print Advertising: Includes newspapers, magazines, brochures, etc.
• Broadcast Advertising: Includes TV and radio commercials.
• Digital Advertising: Includes social media ads, search engine ads, display ads, etc.
• Outdoor Advertising: Encompasses billboards, posters, transit ads, etc.
• Product Placement: Involves integrating products into movies, TV shows, or other media.
• Direct Mail: Sending promotional materials directly to consumers.
• Guerrilla Advertising: Unconventional, low-cost methods to grab attention.
• Influencer Advertising: Collaborating with influencers to promote products.

Functions of Advertising

• Informative: Provides information about products, services, or ideas.
• Persuasive: Convinces consumers to choose a particular brand.
• Reminder: Keeps the brand in the minds of consumers.
• Brand Building: Creates and reinforces brand identity.
• Demand Generation: Stimulates interest and demand for products.
• Differentiation: Highlights unique selling points (USPs) of a product.

Setting Advertising Objectives

• Advertising objectives should align with overall marketing and business goals.

Common Objectives

• Increase Awareness: Make consumers aware of a new product or brand.
• Generate Sales: Drive immediate purchases.
• Build Brand Image: Create a positive perception of the brand.
• Educate Consumers: Explain product features or benefits.
• Encourage Action: Prompt consumers to visit a store, website, or event.

Advertising Budget

• The advertising budget depends on factors like business size and goals, industry competition, target audience, advertising medium and the stage of the product lifecycle

Approaches to Setting the Budget

• Percentage of Sales: Allocating a fixed percentage of sales revenue.
• Competitive Parity: Matching competitors' spending levels.
• Objective and Task: Setting objectives and determining the cost to achieve them.
• Affordable Method: Spending what the company can afford.

Approaches to Advertising: DAGMAR & AIDA Models

• DAGMAR Model (Defining Advertising Goals for Measured Advertising Results)
• Developed by Russell Colley, the DAGMAR model emphasizes setting clear, measurable advertising objectives.
• The DAGMAR model focuses on moving consumers through four stages: Awareness, Comprehension, Conviction, Action

The four stages:

• Awareness: Making consumers aware of the product or brand.
• Comprehension: Ensuring consumer understand the product's benefits.
• Conviction: Persuading consumers to prefer the brand.
• Action: Encouraging consumers to take action (e.g., purchase).
• AIDA Model
• The AIDA model describes the stages a consumer goes through before making a purchase: Attention, Interest, Desire, Action

The four stages:

• Attention: Grab the consumer's attention.
• Interest: Generate interest in the product or service.
• Desire: Create a desire for the product.
• Action: Prompt the consumer to take action (e.g., buy, sign up).

Social Aspects of Advertising

• Positive Impacts: Educates consumers about products and services, raises awareness of social issues and promotes cultural exchange and diversity.
• Negative Impacts: Can perpetuate stereotypes or unrealistic standards, may encourage materialism or overconsumption and can be intrusive or manipulative.

Economic Aspects of Advertising

• Positive Impacts: Drives economic growth by stimulating demand, supports media and creative industries and encourages competition and innovation.
• Negative Impacts: Can lead to higher product costs due to advertising expenses, may create monopolies, and can contribute to information overload for consumers.

Concept of Advertising Copy

• Advertising copy refers to the written or spoken content used in ads to convey a message to the target audience, aiming to capture attention and persuade action.

Elements of an Advertising Copy

• Headline: A catchy phrase or sentence that grabs attention
• Subheadline: Supports the headline and provides additional context.
• Body Copy: Explains the product's features, benefits, and value proposition.
• Visuals: Images, graphics, or videos that complement the text and enhance the message.
• Call to Action (CTA): A clear instruction prompting the audience to take a specific action.
• Tagline/Slogan: A memorable phrase that represents the brand's identity.
• Brand Logo: The visual representation of the brand.
• Contact Information: Details like website, phone number, or social media handles.

Requisites of a Good and Effective Advertising Copy

• Clarity: Easy to understand.
• Relevance: Resonates with the target audience.
• Creativity: Unique and engaging.
• Persuasiveness: Convincing arguments.
• Conciseness: Short and to the point.
• Emotional Appeal: Connects emotionally with the audience.
• Consistency: Aligns with the brand.
• Strong CTA: A compelling call to action.

Advertising Appeals

• Advertising appeals are strategies to influence consumer behavior by addressing their needs, desires, or emotions.
• Rational Appeal: Focuses on logic and facts (e.g., product features, price, quality).
• Emotional Appeal: Taps into emotions like happiness, fear, or nostalgia.
• Moral Appeal: Appeals to the audience's sense of right and wrong (e.g., social causes).
• Humorous Appeal: Uses humor to entertain and engage the audience.
• Fear Appeal: Highlights negative consequences to motivate action (e.g., insurance ads).
• Scarcity Appeal: Creates urgency by emphasizing limited availability or time.
• Bandwagon Appeal: Encourages people to follow the crowd (e.g., "Everyone is using it").

Measuring Advertising Effectiveness

• Evaluating the success of an advertising campaign is essential to ensure it meets its objectives.
• Sales Analysis: Measuring changes in sales before and after the campaign.
• Surveys and Feedback: Collecting audience opinions and perceptions.
• Reach and Frequency: Analyzing how many people saw the ad and how often.
• Click-Through Rates (CTR): Measuring how many people clicked on the ad.
• Brand Recall: Testing how well consumers remember the ad or brand.
• Return on Investment (ROI): Comparing the revenue generated to the cost of the campaign.
• A/B Testing: Comparing two versions of an ad to see which performs better.

Advertising Agencies

• An advertising agency is a professional firm that specializes in creating, planning, and executing advertising campaigns for clients.

Role of Advertising Agencies

• Market Research: Analyzing the target audience and market trends.
• Creative Development: Designing ads and crafting compelling messages.
• Media Planning: Selecting the right channels to reach the audience.
• Campaign Execution: Managing the implementation of the campaign.
• Performance Analysis: Measuring the effectiveness of the campaign.

Types of Advertising Agencies

• Full-Service Agencies: Offer a complete range of services.
• Creative Boutiques: Focus on creative design.
• Media Agencies: Specialize in media planning and buying.
• Digital Agencies: Focus on online advertising and digital marketing.
• In-House Agencies: Operate within a company to handle its advertising needs.

Selection of Advertising Agencies

• Expertise: Assess the agency's experience in your industry.
• Portfolio: Review their past work and success stories.
• Reputation: Check client testimonials and industry reputation.
• Cost: Ensure their pricing aligns with your budget.
• Compatibility: Evaluate if their culture and values match yours.

Regulating Agencies in India

• Advertising Standards Council of India (ASCI) is a self-regulatory body that ensures advertisements are honest, fair, and ethical.
• Functions of ASCI: Reviews and resolves complaints about misleading ads, sets guidelines for responsible advertising and promotes consumer awareness
• The Advertising Agencies Association of India (AAAI) represents the interests of advertising agencies in India, promotes ethical practices, provides a platform for collaboration and advocates for the industry with policymakers
• Advertising copy, appeals, and effectiveness measurement are critical components of successful campaigns.

Media Planning & Scheduling

• Media planning involves selecting the most effective media channels to deliver an advertising message to the target audience.
• Scheduling refers to determining the timing and frequency of ad placements.

Broadcast Media

• Television: Reaches a wide audience with audio-visual impact.
• Radio: Cost-effective and targets local or niche audiences.

Non-Broadcast Media

• Print Media: Newspapers, magazines, and brochures.
• Digital Media: Social media, search engines, and websites.
• Outdoor Media: Billboards, posters, and transit ads.
• Direct Mail: Personalized communication sent to consumers.

Key Factors Influencing Media Planning

• Target Audience: Demographics, preferences, and media consumption habits.
• Budget: Allocation of funds for media buying.
• Campaign Objectives: Awareness, sales, or brand building.
• Geographic Reach: Local, national, or international audience.
• Timing: Seasonal trends or product launch timelines.
• Competitor Activity: Media choices of competitors.
• Media Reach and Frequency: How many people will see the ad and how often.

Media Decisions

• Media Class: Broad category of media (e.g., TV, radio, digital, print).
• Media Vehicle: Specific channel within a media class (e.g., a particular TV channel or magazine).
• Media Option: Specific placement within a media vehicle (e.g., prime-time TV slot or front-page newspaper ad).

Management of Sales Promotion

• Sales promotion refers to short-term incentives designed to encourage immediate sales or customer engagement.
• importance: Boosts sales, attracts new customers, clears inventory, enhances brand visibility and supports other marketing efforts

Types of Consumer Schemes

• Discounts: Price reductions (e.g., 20% off).
• Coupons: Vouchers offering discounts on future purchases.
• Free Samples: Distributing free product samples to encourage trial.
• Buy-One-Get-One (BOGO): Offering an extra product for free or at a discount.
• Loyalty Programs: Rewarding repeat customers with points or perks.
• Contests and Sweepstakes: Offering prizes to engage customers.
• Gifts with Purchase: Providing a free gift with a purchase.

Other Methods of Promotion

• Trade Promotions: Incentives for retailers or distributors (e.g., bulk discounts).
• Point-of-Sale (POS) Displays: Attractive in-store displays to grab attention.
• Referral Programs: Rewarding customers for referring new clients.
• Bundling: Offering complementary products together at a discounted price.
• Flash Sales: Limited-time offers to create urgency.
• Seasonal Promotions: Discounts or offers tied to holidays or festivals.

Sales Promotion

• Sales promotion refers to short-term marketing activities designed to stimulate immediate sales, increase demand, or encourage customer engagement.

Objectives of Sales Promotion

• Boost Sales: Increase short-term sales volume.
• Attract New Customers: Encourage trial of products or services.
• Retain Existing Customers: Reward loyalty and repeat purchases.
• Clear Inventory: Sell excess or outdated stock.
• Enhance Brand Awareness: Increase visibility and recognition.
• Support New Product Launches: Generate interest in new offerings.
• Counter Competition: Respond to competitors' promotional activities.

Consumer Schemes

• Discounts: Price reductions (e.g., 10% off).
• Coupons: Vouchers for discounts on future purchases.
• Free Samples: Distributing product samples.
• Buy-One-Get-One (BOGO): Offering an extra product for free or at a discount.
• Loyalty Programs: Rewarding repeat customers with points or perks.
• Contests and Sweepstakes: Engaging customers with prizes.
• Gifts with Purchase: Providing a free gift with a purchase.

Trade Schemes

• Trade Discounts: Reduced prices for bulk purchases by retailers.
• Point-of-Sale (POS) Displays: Attractive in-store displays.
• Cooperative Advertising: Sharing ad costs with retailers.
• Trade Allowances: Incentives for meeting sales targets.

Exhibitions and Trade Fairs

• Concept: Events where businesses showcase their products or services to potential customers, distributors, and partners.
• Objectives: Generate leads and sales, build brand awareness, network with industry stakeholders and launch new products.
• Importance: Provides a platform for direct customer interaction, helps businesses stay updated on industry trends and enhances credibility and market presence.

Sales Planning and Control

• Process of Selection of Sales Personnel: Define job roles and responsibilities, conduct interviews and assessments
• Criteria of Selection of Sales Personnel: Communication and interpersonal skills, Sales experience, Motivation and goal orientation

Training of Sales Personnel

• Purpose: Enhance product knowledge and selling skills, familiarize with company policies and tools and improve customer relationship management.
• Methods: Classroom training, on-the-job training and role-playing and simulations
• Motivation of Sales Personnel
• Techniques: Monetary and non-monetary incentives, career development opportunities and positive work environment
• Importance: Boosting morale and productivity, reducing turnover and absenteeism

Compensation of Sales Personnel

• Types: Fixed Salary, Commission, Bonus, Hybrid
• Factors Influencing Compensation: Industry standards, sales targets and performance and cost of living and regional differences

Ethical Aspects

• Truthfulness: Avoid misleading or false claims.
• Transparency: Disclose all terms and conditions of promotions.
• Respect for Privacy: Avoid intrusive or unethical data collection.
• Fair Competition: Avoid disparaging competitors.
• Social Responsibility: Promote positive social values and avoid harmful stereotypes.

Legal Aspects

• Advertising Standards: Compliance with regulations set by bodies like ASCI (Advertising Standards Council of India) and avoid false or deceptive advertising.
• 2. Consumer Protection Laws: Protect consumers from unfair trade practices, and ensure clear terms and conditions for promotions.
• Intellectual Property Rights: Avoid using copyrighted or trademarked material without permission.
• Data Privacy Laws: Adhere to regulations like GDPR (General Data Protection Regulation) for customer data.
• Industry-Specific Regulations: Follow guidelines for specific industries (e.g., pharmaceuticals, alcohol).