Advertising Management: The AIDA Model

• These study notes pertain to the subject of Advertising Management with the code MBA 902 for MBA 3rd Semester.

AIDA Model

• AIDA stands for Attention, Interest, Desire, and Action.
• Devised by Elmo Lewis it explains how personal selling works.
• AIDA outlines the stages of promotional goals concerning consumer involvement with a message.
• In a media-filled world, ads need to be catchy to grab attention using powerful words and pictures.
• After grabbing the target audience's attention, keeping them engaged to understand the message is important.
• Audience interest can be gained by advertisers staying focused on audience needs.
• Building the reader's desire involves linking features and benefits, and designing features to give specific benefits to target market members.
• Advertisers need to be very clear about what action they want the audience to take, such as trial, purchase, or repurchase.

Advertising Agency Functions

• Advertising agencies identify and contact firms that want to advertise products or services.
• Agencies select firms that are financially sound, make quality products/services, and have efficient management.
• Another agency function involves planning ads for clients like studying the client's product, market analysis, trade and economic conditions.
• Another part of ad planning is studying seasonal demand, competition, distribution channels, and formulating an advertising plan.
• Creative people such as copywriters, artists, art directors, and graphic specialists perform the creative function.
• Ad agencies, assisted by writers, artists, designers, animators, graphic designers, and film directors, prepare and develop ad copy.
• Ad copy is shown to the client for approval.
• It is important to selects appropriate media for advertisement depending on media cost, coverage, ad budget, and target customers.
• After approval, verification, and required changes, the ad copy is handed to the media for ad execution.
• It is the ad agency's responsibility to evaluate the effectiveness of ads after execution to see if the ad is beneficial for its client.
• Agency preforms marketing functions such as selecting target audience, designing products/packages, determining prices, and studying distribution channels.
• Research functions, such as researching different media, media cost, reach, circulation, and TV program ratings, are also performed by the Ad agency.

Concurrent Testing

• Concurrent testing is evaluated throughout the entire advertisement execution process, while an audience is exposed to different types of media.
• Customer Diaries are provided so that the selected customers can record the details of advertisements they watch, listen to, or read and collected periodically.
• Co-incidental surveys are also called co-incidental telephone method, are done by customer calls at the time of the advertisement program is broadcasted.
• Electronic devices like auto meters track are widely used to measure the effectiveness of an advertisement, mainly in broadcast media.

Copywriting Guidelines

• Copywriting uses words to promote a person, business, opinion, or idea and aims to achieve business objectives.
• A composite art of linguistic ability and business sense, copywriters write ad copy and the associated headlines, slogans, and baselines.
• Copywriters also develop copy for TV, cinema commercials, prepare drafts for press releases, and promote other promotional materials.
• Copywriting Guidelines:
• Let your personality shine through.
• Have sound structure and purpose.
• Know your audience.
• Hit on emotions, needs, and desires.
• Be consistent and persuasive.
• Use calls to action and accent your strengths.

Surrogate Advertising

• Surrogate advertising promotes banned products (like cigarettes and alcohol) in disguise by using products of a similar category or a completely different category.
• The banned product may be masked under another product with the same brand name.
• In India, many companies use surrogate advertising, like music CD's, club soda, and playing cards.
• Liquor ads had direct influence on Consumers purchase behavior.
• Advertisements for liquor and cigarettes has been banned since 1995.
• Companies usually employ brand extension and promotion of events.

Client-Agency Relationship

• It refers to the relationship between advertiser and ad-agency.
• Experts in advertising management state cordial relationships with full trust and confidence are needed to get maximum benefits.
• Key aspects:
• Advertising agencies are known for selling professional services to the clients, the rules are flexible because each client and agency are unique.
• Advertisers expect agencies to not accept work for competitors, advertisers shall not engage another agency without prior consent.
• Agencies get prior approval for all advertising work and expenses on the basis of client feedback.
• The client pays the agency based on the media's published rates, the agency retains its commission, and any media concessions are passed on to the client.
• Mutual trust and confidence are crucial. Agencies should participate in planning, have freedom to contribute creative ideas.

Puffery in Advertising

• Advertising puffery uses broad, exaggerated, or boastful statements about a product/service that is subjective rather than objective, and is not literally true.
• It does not create any express warranty or guarantee for the consumer.
• Judgement found the statement "Better ingredients. Better Pizza" was not a verifiable fact that would be relied upon by consumers and was, therefore, mere puffery.

Advertising Theme

• An advertising theme is a central, repetitive message that promotes brand awareness and is intended to trigger desired action from customers.
• It is the heart of advertising copy and themes may be readily recognizable as promoting a certain emotion, such as fear, but they can also be strictly humorous in nature.
• Common themes: comfort (cars, air conditioners), beauty (cosmetics), family values, prestige (luxury products), patriotism, courage, fear.
• The common advertising theme for Coca-Cola cares about relations and values, while Pepsi uses the theme of youth energy and challenge promoting.

Outdoor Media for Advertising

• Poster and wall paintings are effective in rural areas but distateful in towns and cities.
• Hoardings (billboards) are very cheap media and usually focused at the driving public.
• Currently, neon and illuminated boards are replacing hand painted hoardings.
• Sky writing involves using inflated balloons and airplanes.
• Sandwich men use human beings to display an advertisement.
• Traveling displays involve pacing advertisement on public transport system such as buses, trucks and taxis.

DAGMAR Approach

• DAGMAR stands for Defining Advertising Goals for Measured Advertising Results Model developed by Russell Colley in 1961 to set advertising objectives.
• DAGMAR states the ultimate advertising objective involves a communication task to create awareness, impart information, develop attitude and induce action.
• The goal of advertising must take a consumer through four levels of understanding:
  • Awareness: Consumer must be aware of the product or company.
  • Comprehension: Consumer knows what the product is and its benefits.
  • Conviction: Mental conviction to buy the product.
  • Action: Finally buying the product.

Online Advertising

• Online advertising, also called online marketing, Internet advertising, or web advertising, uses the Internet to deliver promotional marketing messages to consumers.
• The advertising is included email marketing, search engine marketing (SEM), social media marketing, types of display advertising, and mobile advertising.
• This type of advertising include a publisher, who integrates advertisements into its online content. It also includes an advertiser, advertising agencies, and an ad server.

Media strategy

• Media Mix: Determine the role each medium will play in achieving media objectives and the allocation by medium.
• Usage of Media: Determine how each medium will be used in terms of commercial forms like television spots vs sponsorships or ad placement.
• Geographic Allocation: Decide how the media mix will be used to allocate advertising efforts based on market priorities and media objectives.
• Scheduling Strategy: Spacing of the media activity in a time frame considering seasonality, competition, budget, and brand purchase cycle.

Lavidge-Steiner Model

• The Hierarchy of Effects Model, created in 1961 by Robert J. Lavidge and Gary A. Steiner, has six steps from viewing a product advertisement to product purchase.
• The advertiser encourages the customer to go through the six steps:
  • Awareness: The customer becomes aware through advertising.
  • Knowledge: The customer begins to gain knowledge through internet, retail advisors, etc.
  • Liking: This is about ensuring that the customer likes your product.
  • Preference: Advertisers will want to highlight their brand’s benefits and unique selling points.
  • Conviction: Creating the customer’s desire to purchase which gives the customer confidence.
  • Purchase: Making the purchase simple and easy.

Total Customer Cost

• It encompasses the purchase costs, use costs and the post-use costs.
  • Purchase costs include the cost of searching and gathering information,
  • Use costs arise for durable goods such as high demand on resources.
  • Post-use costs encompass the costs for collecting, storing and disposing of the product.
• Elements of purchase cost: financial risks, performance risks, physical risks, time risks, social risks and psychological risks.

TV, Radio and Internet Media

• TV advertising is the most powerful form of advertising as it combines video and audio with varied messaging. It has been the common leisure activity of people.
  • TV reaches large numbers of people and a short span of time is required to reach the product to the public.
  • Television helps in conveying the message or advertisements with sound, visuals and actions.
• Radio as an advertisement has a lot of advantages.
  • Radio cheaper, can be aimed at a narrow audience/specific groups and reaches people within this audience, whereever the customer is.
  • There is a wide range of offers, radio also allows you to target your message to specific groups.
  • Radio is the only mass medium that people use while driving, clean the house or mow the lawn while doing other things.
• Internet provides advertisers with unique and cost-effective ways of reaching advertisement audiences.
  • The Internet's vast reach reaches more people than traditional mediums, Internet advertising is more targeted.
  • One disadvantage of advertising is that your marketing materials can be automatically copied.
  • Also the Internet-advertising has begun to introduce ad clutter to the Web.

Advertising Budget

• It is an estimated amount an organization decides to invest in its promotional expenditures over a period of time.
• Approaches to Developing Advertising Budget:
  • Percentage of Sales Budget - the business organization have to set their advertising spending at a fixed percentage of either past or anticipated sales.
  • Competitive Parity Approach - organizations compare their advertising spending with that of its competitors.
  • Objective and Task Approach - advertiser correlates its advertising spending to marketing objectives.
  • All Organization can Afford Approach - advertisers base their advertising budget on what they can afford.
  • Market Share Approach - equates its market share with its advertising expenditures.
  • All Available Fund Approach - all available profit is used in advertising spending.
  • Managerial Judgment Approach - organizations spending depends on the judgment of experienced managers.

Tools For Measuring Effectiveness of Ads

• Tools will allows a marketing firm to heavily invest in advertisement for making products known to the audience.
• Three types of Test: Pre-Testing, Concurrent Testing, Post Testing:
  • Pre-Testing - used to test the effectiveness of ad-copy. Types include qualitative and quantitative methods.
  • Concurrent Testing - is evaluated throughout the audience exposed to different type of media. Its Types include Consumer Diaries, and Electronic Devices.
  • Post Testing - is done to know- to what extent the advertising objectives are achieved. Its types are, Recognition Test, Starch Test and Recall or Impact Test.

Ethics and Social Responsibilities

• Advertising increases sales, makes the product popular, helps in brand formation, and makes the public aware.
• Positive advertising includes advertising increases sales, makes brand popular, and helps in brand formation. This also is the largest financial source for mass media.
• Negative advertising includes criticsm of deceptive or manipulative nature.
• Positive ethics in advertising means a set of well defined principles which govern the ways of communication takingplacebetweentheselleandbuyer through fairness.
• Negative Ethics cause cultural or moral harm to society so advertisements should avoid being highly exaggerated and using lot of puffing.
• Ethical advertising morals should follow three rules related to truthfulness, dignity and social responsibilit.

Selecting an ad agency

• Services offered by the ad agency depend on the requirement of advertiser whether he need a fulls service agency, creative boutique, media buying service agency. Experience of the Agency - An experienced agency performs better then a new agency
  • Agencies can be located geographically which is required at different level of ad creation.
  • Size of Agency - Large agencies serves big clients, provides wide variety of services, and charges higher but, cannot give personal attention.
• Always avoid hiring the agencies the competition is using.
  • Before selecting also inquire in the agencies standard and client relations.
  • Consider agencies that are creative for the target audience.
  • Advertiser should select agency whose rates are reasonable and within the ad-budget, strong with connections and staff.
  • Know the background and client history of how long they were with the agency and what the experience was like.

Advertising Appeal

• In marketing its an exciting way to impact customer desire towards advertised product and services and there are three types.
• Rational or Informational: Highlights the product like, quality economy tag, tag or better performance to give a competitive nature.
  • Examples here are feature appeal and price appeal and quality.
• Emotions: relates to individual needs for purchasing, also used to provide fear and comfort.
  • Examples here include advertisements such as Humour Happiness.
• Morals: Uses justice, freedom rights, and social standards to encourage.
  • Examples include messages about stopping Anti-smuggling and saving freedom.

Aspects of Advertising

• Advertising works by attracting attention, communicating benefits and creating a favorable impression.

Functions of Advertising

• Advertising aims to distinguish products from competitors, communicate with customers, urge product use and expand sales.
• Types of Advertising:
  • Informative advertising: informs the consumers about the products.
  • Persuasive advertising: advertising persuades or motivates the prospective buyers to take quick actions to buy the products or services of the firm.
  • Reminder advertising: reminds the existing customers to become medium or heavy users of the products or services of the firm.

Advertising Based on Region

• Global advertising: It is executed by a firm in its global market niches.
• National advertising: It is executed by a firm at the national level done to increase the best product or services
• Regional advertising: the manufacturer confines his advertising to a single region of the country, its promotional exercise is called Regional Advertising. Local advertising: When advertising is done only for one area or city, it is called Local Advertising.

Advertising Based on Target Market

• Consumer product advertising: This is done to impress the ultimate consumer meant for person who buys product in their name.
• Industrial product advertising: This is also called Business-to-Business Advertising it will increase sale of product or business
• Trade advertising: For wholesalers/retailers for selling product to the trade partners and customer.
• Professional advertising: Made by manufacturers and their team members/trade partners or distributors for a specific trade or business professionals

Advertising based on Response

• Includes immediate and favorable feedback that elicits customer impressions.
  • Such as Direct action to get user coupon or response and Indirect for long favorable promotion
• Surrogate: Promotional soda with bagpiper brand which is intended to be for brand alcohol with same tag or association.

Advertising based on Media

• Media platforms with auto ads, video, articles that show brand Audio, visual, and printed are some examples