Marketing and Advertising

The Role of Marketing in Advertising

• Marketing serves as the foundation of advertising
• Advertising is categorized under the fourth P of marketing which is promotions
• The success of a product isn't solely dependent on promotions; the other 3 Ps (Product, Place, Price) also contribute
• Negative feedback occurs from unfavorable product, place, or price issues

Advertising Impact on Consumer Decisions

• Great advertising campaigns can successfully influence a consumer’s buying decision
• The third P fails if a product is unavailable when a consumer decides to purchase,
• The advertisements job is inciting consumer interest
• If a product can't reach a consumer, it indicates a failure in the distribution channel and isn't attributed to advertising
• If a brand gets poor reviews following advertising-generated hype, focus on the poor product performance

Marketing's Role in Advertising

• Sets the tone for advertising initiatives
• Allocates the promotional budget
• Determines when advertising should be used as a communication tool
• Works around the target audience's and competitors' perceptions
• Involves developing a corporate identity to establish a brand identity

Advertising Fundamentals

• Advertising includes the product in a narrative from day to day life
• Advertising highlights its availability as a solution
• Ads demonstrate a problem, then present a product as the solution

Need vs. Want vs. Demand

• Some items can be converted into a want or a demand
• Cold drinks and junk food aren't always needed, but advertising can generate demand for them

Advertising Challenges

• Consumers never DEMAND advertising despite needing it
• Ads get skipped, because they are usually commercial breaks
• Attracting retention is difficult because consumers skip ads on platforms
• There is a race to make ads engaging, informative and persuasive

The Need - Want - Demand Cycle

• What we use is in these categories
• Need refers to hygienic and standard mineral water
• Want refers to Bisleri - your 1st and immediate recall
• Demand refers to Qua or a Himalayan - Vitamins & flavour infused water.
• Buying decisions align with need, want, and demand, based on financial capacity and intent

Consumer Preferences and Advertising's Influence

• A common person can be happy with Rupees 15 water package
• The middle class buyer may prefer Bisleri
• The affluent consumer may buy Himalayan water
• Luxury varies as Zara is luxury for some but basic for others.
• Redefining need, want, and demand.

Defining Advertising

• "Advertise" originates from the Latin word "advertere" which means to turn to
• The meaning is to give public notice or announce publicly

Advertising as a Marketing Tool

• Advertising is a creative marketing tool used to influence public opinion and change buying behavior
• It is any paid form of presenting ideas by a sponsor
• It is used to bring products, opinions to public through tactics and persuade them to respond

Responsibility for Sales

• Though it pushes sales, advertising is never solely responsible for sales or profit, because the marketing effort is more than solely the advertising

Advertising Necessity for Brands and Consumers

• Brands and consumers both require advertising to do well

Benefits of Advertising for Brands and Consumers

• Brands prosper through advertising, as more people learn about various products and services
• Consumers are informed about available products and services through advertisements
• Consumers get to make the best choices with ads
• Advertising is essential for these reasons

Quick Decision Making and Time-Saving

• The market is full of products that every producer says is better than others
• Advertising helps consumers compare the price, quality, and features of other products

Improving Quality and Reasonable Pricing

• Advertising causes good quality which in turns removes bad quality
• This leads to competition helping consumers which allows for reasonable pricing

Advertising Scope Today

• The ad industry is growing due to the rise in products and services
• Competition is greater requiring promotion from every businessman

Advertising Techniques

• The development of advertising has let to more techniques
• Reaching the right people with better awareness is the aim of promotional campaigns

Advertising Goal

• Responsible for RECALL

The Role of Recall in Advertising

• Recall is a main factor in advertising effectiveness and success

Factors Influencing Television Advertisement Recall

• Advertisement details
• Viewer attention
• Liking of advert
• Number of scenes/shots
• Clutter
• Demography
• Purchase Intention

Goals of Brands in Advertising

• Brands want to be recalled when products are proposed as recommendations, and purchasing is happening

Advertising Decision Factors

• What are the circumstances for advertising to exist
• There is a presence of primary demand, known as the principle of Laissez Faire

Primary Goal of Advertising

• Sells the brand by separation
• Look at the probability of market not being aware
• Get something exceptional out in the market
• Supply comes after demand
• Convincing market that its product is neccessary

Objectives of Advertising

• Testing
• Continuity
• Brand Switch
• Switching Back

Trial Advertising Objective

• Commonly for companies in their introduction stage
• The goal is convincing customers to buy the product through attractive ads

Continuity Advertising Objective

• Goal is to have existing customers stuck to the product
• Advertisers commonly bring something new so the existing customers continue buying the product

Brand Switch Advertising Objective

• Advertisers want to convince customers to switch from existing products

Switching Back Advertising Objective

• Goal is to attract previous customers back through ads, discounts, reworked packaging, etc

Product Differentiation

• Highlight what makes YOUR product different
• Lack of differentiation means use advertising to highlight the unique parts of a product
• Product differentiation changes looks to highlight the product

Understanding Hidden Product Qualities

• Refers to finding a way to sell product
• Insurances appeal to family
• Jewellery pulls at human relations
• Jio lowered price which identified price sensitivity

Leveraging Emotional Appeal

• Using social elements can appeal to the audience
• Marriage
• Family
• Friendship
• Career

Addressing Market Risks

• Risks occur when you try to sell a new product
• Making people feel safe about new things is a focus and requires some comfort
• Ads like face creams work because they use insecurities

Advertising Appeals

• Advertising appeals grab customer attention, influence feelings, or are moving

Rational Appeals

• Product messaging focuses on practicality, features and cost with evidence of reliability
• Business ads are suited for rational appeals

Emotional Appeals

• They persuade action for products and spark feelings
• Include joy, fear, pity, sadness, joy

Humor Appeals

• Humor makes customers laugh and creates an emotional connection with the product
• Humorous insurance can be good to show why insurance is useful
• Senior citizens dont like being seen as grumpy
• Women hate being seen as overbearing
• Commonly used with established products

Sexual Appeals

• Sexual ads grab attention but don't promote sales
• Beer ads appeal to men, fragrance aims at romance
• Should convey overall message, done by showing men get the attention of attractive women

Bandwagon Appeals

Addresses the need to belong.

• They are often done by showing adults enjoying products
• Messages are shown to make the consumer buy a product because others do
• Appeals backfire if consumer conflicts with rationalization

Different Advertising Approaches

• Brand
• Industrial
• Classified
• Financial
• Political
• PR
• Surrogate
• Public Service

Brand Consumer Advertising

• Commonly seen ads with basic design to connect with customers and which is divided into 3 parts

Above the Line (ATL)

• Advertising runs on traditional mainstream
• It gets mass engagement but is more costly

Below the Line (BTL)

• Advertising connects a target audience individually through media
• Roadshows, handbills, skits, live events, mall popups
• It's cost effective but has limited reach

Through the Line (TTL)

• Ads run on digital media platforms
• It gets ATL level reach but at BTL costs
• Brands are spending more money here

Advertising Budget

• Big companies love HUL and coke love ATL ads
• Small players do BTL
• Strategic ads spend only as much as needed
• Target audience and campaign recall needs to be clear

360º Advertising

• Goal is to get and find customer anywhere regardless of circumstance
• Utilize channels from media, in store, digital, etc.
• 360 marketing communications combines marketing to create customer journey
• Brands can't miss the target with 360 degree strategies
• Markets have lifestyles, preferences, and forms of communications
• Consumers may have low data requiring radio and media
• Using every medium helps communicate

Industrial Advertising

• It markets to niche with ads for the public
• cement, steel, tractors

Advertising medium

• Ads drive the Indian market
• Cement and wire businesses get an advantage with ads because people prefer familiar names
• it contributes to sales and has brand recall value

Classified Advertising

• Oldest advertising tactic featuring only listings
• Advertisements are under categorical headings in text

Financial Advertising

• Advertising for Banks, investments, insurances, reports, and securities

Pr Advertising

• Used as a tool to promote building rapport and reputation with customers
• Ads drive content and online influences
• Olay with Lilly Singh sketch and Coco-Cola

Political Advertising

• Used to communicate political view to sway voters
• Used by campaigns with consultants
• Political messaging is controlled by countries

Surrogate Advertising

• Duplicates a product image to sell one from the same brand
• Surrogate is the original marketing to preserve names

Promoting When Restrictions Apply

• Promoting happens when countries ban a type of product like tabacco and alcohol
• Bagpipper soda and Mineral water are advertised

Public Service Advertising

• Commecial advertising for non-commercial
• Increase knowledge to change attitudes and strenghten support
• Campaigns work when target group is committed

General Ethical Advertising Principles

• Principles are for ethical creation of ethical ads
• Creating advertising means considering foundations or consumer groups
• Ethical rules include social responsibility and protecting children
• Principles dont remove individual liberty but increase advertising moral values

Advertisement Morality

• According to International Code of Advertising, you need to have sensitivity in verbal and visual elements and avoid abusing moral values

Honest and Truthful Advertising

• Don't trick customers or use a lack of knowledge
• Show customers elements and info and dont mislead
• Consumers rely on trust and avoid false messaging

Socially Responsible Advertising

• Don't include discriminatory messaging based on anything
• The ethical principles should protect society.
• It shows the company cares

Advertising to children

• Children shouldn't be in dangerous settings
• Ads shouldn’t incentivize negative actions

Ethical Concerns

• Request avoiding coercion and respecting rights
• Online ads get flak, because those rights are not shown
• Brands must protect consumers with ethical advertising

Self-Regulation in Advertising

• Industry shows integrity with decent, safe, and honest advertising

Advertising Standards

• Ecosystems adhere to standards and correct when a law is not met
• Ads have certain standards

Respecting Decisions

• Code of advertising shows the importance of laws and ethical and transparent boards

The Advertising Standards Council of India (ASCI)

• They enable self regulation over advertising and enable consumer protection

American Association of Advertising Agencies (AAAA)

• Trade association for advertising founded in 1917
• Serves 700 members and controls spending

Sustaining the Advertising industry

• 4As helps members support employees through benefits
• They have plans to sustain the leaders of generations

Advertising Standards Authority (ASA)

• The UK independent regulator making sure advertising sticks to rules

What Determines Advertising Impact?

• Recall and frequency are best achieved when you consider these things
• Intensity
• Ad Expenditure
• Media Planning
• Exposure
• Rating & Reach
• Frequency

Intensity

• The brands willingness to put effort and money to communication

Advertising expenditure

• budget
• Production and post
• Media planning is another piece

Media Planning

• Determining when and where and how often the run ads

Exposure

• How much should you be advertising and bombarding or season ads

Rating and Reach

• You can tailor these based on products
• Like how cosmetics are by age so your appeal to them is different than your mother

Frequency

• the number of times an ad goes

Frequency and Media Planning

• Time slots decide channel and magazine amount

Gross Rating Point (GRP)

• Measures advertising impact by reach times frequency

Integrated Marketing Communications

• IMC unifies marketing with brand identity to be used over channels

Integrated Marketing Communications

• Advertising is used for the 4 P
• The effectiveness is decided by integration of above
• Following everything means following integrated communications

Advertising Agency

• Its used to make marketing with business and creative people

Advertising Agency Role

• Provider that works on advertising projects
• Design
• New thoughts
• Print materials
• Surverys

Advertising Analysis

• Helps clients enter the market with multiple plans
• Advertising agency advantages shows what is able to influence customers behavior
• There is less wastage and more efficiency
• Agencies also administer mass communication and execute

Agency Disadvantages

• The communication is a factor
• This means that if the messaging fails lawyers get involved, resulting in a contract
• Commission barriers may not show media buys

Advertising Agency Role

• Identifying the goals of clients, who is the service for?
• What is the target demographic, what is unique with it?
• Position against competitors?
• What message
• What mediums

Strategic Planning

• Deciding future direction
• Acquaint sales to meet goals by planning
• It leads to customers wanting restating benefits from sales

Departments

• Account
• Research
• Creative
• buying

Account Management

• Agency liasison as well as between clients
• Receives briefs

Account Planning and Research

• They research and seek approvals

Creative Development

• This department brings new ideas

Campaign Creation

• The department brings creativity by creating the approval

Media and Buying

• Deals with agencies
• Helps determine medium

Ad Agency departments

• Service departments can do human resources, printing billings
• The flow is receiving input, then creative, then production, then film/advert

Agencies

• Agencies work together helping teams operate

Types of Ad Agencies

• There are four
• Full Service Agencies
• Modular Agencies
• In House agencies
• Specialist advertising agencies

Full Service

• Full range of help
• Copy, layout, distribution

Modular

• Full service with help
• piecemeal

In House

• Internal
• advertiser owned

Specialists

• Do specific work

Creative Boutiques

• Shop agencies work with work and functions
• Fee for copies of the services