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TABLE OF CONTENTS

S.No TOPICS PAGE NO.


1. Introduction
2 Fundamentals of Advertising I
! Fundamentals of Advertising II
" T#$es of Advertising
% Advertising &usiness
' Advertising &udget
( )edia Selection
* Advertising Art t+e la#out of advertisement
, Advertising Stal-arts
1. Case Studies
INTRODUCTION
Advertising is multidimensional. It is a form of mass communication/ a
$o-erful mar0eting tool/ a com$onent of t+e economic s#stem/ a means of
financing t+e mass media/ a social institution/ an art form/ an instrument of
1usiness management/ a field of em$lo#ment and a $rofession.
In India t+e advertising 1usiness is gro-ing at t+e rate of !.2 to !%2
annuall#. T+e total advertising e3$enditure in India is a1out 4% &illion. It is a
12.. crore industr#/ even -+en 1illings are 5s. *... $lus crores. It is ,.2
of India6s G7P.
Toda# -e see our senses 1om1arded -it+ lots of advertisements. &e it t+e
ne-s$a$ers/ maga8ines/ t+e television or even so man# +oardings -+ic+ line
u$ an# street or +ig+-a#/ t+ere are lot of advertisements to 1e seen. In fact
t+e 9uantit# and t+e 9ualit# 1ot+ are increasing da# 1# da#. It +as 1ecome an
im$ortant tool at t+e +ands of t+e mar0eters to sell t+eir $roducts. Some
advertisements are critici8ed for 1eing false/ misleading/ and dece$tive and
for concealing information.
Advertisements can also mani$ulate t+e consumer to go in for unnecessar#
1u#ing s$ree. So it is im$ortant to understand -+at advertising is all a1out.
No-/ let us sa# t+at a firm +as develo$ed a $roduct/ -+ic+ -ill satisf# t+e
mar0et demand. So essentiall# +e +as to reac+ out to t+e $u1lic or to +is
target mar0et and inform t+em a1out +is $roduct. For o$timum e3$osure +e
+as to ma0e sure t+at +e reac+es out to t+e ma3imum num1er of $eo$le. So
mass communication -ould 1e t+e 1est -a# to reac+ out to t+e $eo$le +ence
t+e medium of advertisements to reac+ out to t+e masses. It s+ould 1e
+o-ever understood t+at advertising itself couldn6t sell t+e $roduct it merel#
assists in t+e selling $rocess. Advertising also cannot re:uvenate or restore a
$oor $roduct it onl# +el$s in t+e selling $rocess t+roug+ t+e means of
communication.
)atrimonial advertisements/ recruitment advertisements/ tenders/ classified
advertisements/ notice/ $u1lic announcements are also e3am$les of
advertisements.
&asicall# #ou must understand t+at adverting is an announcement to t+e
$u1lic of a $roduct/ service or idea t+roug+ a medium to -+ic+ t+e $u1lic
+as access. T+e medium ma# 1e $rint ;ne-s$a$ers/ maga8ines/ $osters/
1anners and +oardings</ electronic ;radio/ television/ video/ ca1le/ $+one/
internet< or an# ot+er. An advertisement is usuall# $aid for 1# an advertiser
at rates fi3ed or negotiated -it+ t+e media.
T+e American )ar0eting Association/ C+icago/ defines advertising as any
paid form of non personal presentation of ideas, goods and services by an
identified sponsor.
So a form could 1e a $resentation. It ma# 1e sign/ a s#m1ol/ an illustration/
an ad message in a maga8ine or ne-s$a$er/ a commercial on t+e radio or on
television/ a circular dis$atc+ed t+roug+ t+e mail or a $am$+let +anded out
at a street corner= a s0etc+ or message on a 1ill1oard or a $oster or a 1anner
on t+e Net.
Non-personal -ould mean t+at it is not on a $erson>to>$erson 1asis.
Goods, Servies, Ideas for a!ion -ould mean ma0ing a consumer6s -or0
eas# in 0no-ing a1out t+e $roduct of t+e firm. It could 1e a television/ or a
1an0ing service or filing #our ta3 returns/ -+ic+ t+e firm or t+e mar0eter
-ants t+e consumer to 0no- a1out. An idea could also 1e $olitical $arties
letting t+e $eo$le 0no- a1out t+eir $art# and -+# t+e# s+ould vote for t+eir
$art#. Adult education/ 1e-are of AI7S/ donate #our e#es are 1ut a fe-
e3am$les of ideas.
"aid #$ an iden!ified sponsor -ould im$l# t+at t+e s$onsor +as control
over t+e form/ content and sc+eduling of t+e advertisements. T+e s$onsor
could 1e identified 1# t+e com$an# name or t+e 1rand of t+e $articular
$roduct.
%Salesmans&ip in prin!'
%Adver!isin( as a s)#s!i!)!e for !&e &)man salesman'
%Adver!isin( is !&e #)siness of rea!ive !&in*in( for ommerial
advan!a(e'
T+e a1ove are fe- definitions of -+at advertising is all a1out.
To Comm)nia!e/ to "ers)ade/ to Infl)ene and to Lead to some a!ion is
-+at advertising is all a1out. ?uman nature and advertising are closel#
related. A man -+o -ears s+irt>trouser instead of d+oti is advertising t+at +e
is -esterni8ed= a -oman -+o -ears a li$stic0 -ants to advertise t+at s+e
-ants to loo0 1eautiful= a 1o# -+o rides a 1eautiful 1i0e -ants to advertise
t+at +e -ants to 1e noticed. So -e see t+at $eo$le -ant to notice for
an#t+ing t+at t+e# do. T+at is -+at advertising does. It $ulls $eo$le to-ards
t+e $roduct li0e t+e flo-ers attracts t+e 1ees to-ards it.
Advertising is a career for man#. I am sure #ou mig+t -ant to ma0e it a
career. It is getting $rofessionali8ed. Com$etition/ gro-ing mar0eting
e3$enses/ $roduct failures/ li1erali8ation/ glo1ali8ation and t+e emergence of
ne- electronic media +as given an im$etus to advertising activit#.
@ou must understand +o-ever t+at advertising is a communication $rocess.
@ou +ave a certain message and t+at is A7ecoded6 1# a $art# ;Sender< to 1e
AEncoded6 1# anot+er ;5eceiver<.
Be must understand t+at t+e message so encoded s+ould 1e so clear t+at t+e
$erson s+ould not distort t+e meaning of it. T+is means t+at -+at #ou are
tr#ing to sa# and -+at t+e ot+er $erson ma0es out of t+e message s+ould 1e
t+e same. @ou s+ould not ma0e t+e ot+er $art# confused. So it means t+at t+e
message s+ouldC
1. Gain attention of t+e receiver.
2. &e understood.
!. &e a1le to stimulate t+e receiver and suggest a$$ro$riate met+od to satisf#
t+eir needs.
So t+e sender must 0no- +is receivers or t+e audience and t+e 0ind of
res$onse t+e# are li0el# to elicit. T+is res$onse +e can get 1# maintaining a
$ro$er feed1ac0
mec+anism. T+e feed1ac0 can also +ave some DNoise elementsE. T+ese
could 1e $oor message $lanning/ 1us# audience mem1ers or careless
feed1ac0 of res$onse.
Be tal0 a1out t+e " P6s of )ar0eting Product/ Price/ Promotion and Place.
In a -a# -e can sa# t+at t+e entire $rocess of )ar0eting is a
Communication $rocess. For e3am$le -+at do -e -ant to sa# a1out a
$articular $roduct is it #out+ful/ #oung/ matured/ secured/ > t+at is -+at is
t+e $rofile of t+e customers t+at -e are loo0ing at
Once -e +ave identified a grou$ and furt+er identified a fe- c+aracteristics
a1out t+em t+en -e can incor$orate t+ose ver# c+aracteristics in our
message formulation.
T+is -ould 1e under t+e conte3t of Product. T+at is t+e distinctive image
#ou -ant to associate t+e 1rand -it+.
Bit+in t+e conte3t of Price/ 9ualit# $la#s a ma:or role. B+en #ou t+in0
a1out )ercedes &en8 at a $rice tag of 5s. (. Fa0+s/ t+ere is certainl# a
difference #ou $erceive -+en #ou are given an automo1ile -it+ a tag $rice
of 5s. ! Fa0+s.
T+e Place -ould mean t+e interaction 1et-een t+e 1u#er and t+e seller. It is
li0e #ou advertise #our 1rand of television 1ut -+en t+e 1u#er goes to t+e
s+o$ +e does not get it t+ere. So t+e $lace -ould mean t+e distri1ution
c+annels.
Promotion -ould encom$ass t+e met+od and t+e medias used to reac+ out to
t+e $eo$le. Even in rural areas/ -+ere t+ere ma# not 1e man# televisions in
+ouse+olds/ 1ut t+roug+ t+e local s+o-s and -it+ t+e +el$ of ANauta0i-alas6
#ou $romote #our $roduct. T+e local salesman coming to #our +ouse to sell
s+a-ls from Gas+mir is anot+er e3am$le of $romoting #our -ares.
Advertising as suc+ is related closel# to ot+er su1:ects of mar0eting too. &e
it Personal Selling/ Sales Promotion/ Pu1licit# or even Pu1lic 5elations/
advertising $la#s a significant role in reac+ing out to t+e selected target
audience.
CO++UNICATION +ODEL
As -e +ave understood t+at t+e sender identifies t+e receiver;s< and
develo$s a message/ t+e 1asic of t+e sender is t+at t+e customer or t+e target
audience s+ould 1u# t+e $roduct or t+e service. For t+is -e must understand
-+et+er a $articular message so created +as 1een effective in reac+ing out to
t+em. So -+at ma0es an advertisement effectiveH &elo- are t+e 0e# $oints
on t+e effectiveness of a message.
1. Attract Attention
2. Secure Interest
!. &uild 7esire for t+e $roduct
". O1tain Action
T+e a1ove +as 1een formulated as t+e AI7A )odel.
Attention could 1e t+e form of t+e la#out of a $rint advertisement or t+e -a#
an advertisement is made in t+e form of moving $ictures/ t+e colors used/
t+e models used and t+e co$# -ritten/ t+e movements used and t+e
contrasting element used.
Be are 1om1arded 1# so man# advertisements t+at t+ere are a fe- -e see
and -+ile a fe- -e don6t. T+e advertisement/ -+ic+ arouses interest in us
and $rovo0es us to t+in0 or feel a1out a $roduct/ is -+at an advertiser loo0s
at. It 1asicall# means to catc+ t+e e#e of t+e $u1lic.
7esire -ould mean t+e 1u#ing motive. B+en #ou feel t+at #ou -ant to
$osses t+e $articular $roduct or 1e associated -it+ it. Action -ould normall#
mean t+e ac9uisition of t+e $roduct. Bit+in t+e AI7A frame-or0/ Attention
-ould refer to t+e cognitive stage/ 1ot+ Interest and 7esire -ould relate to
t+e affective stage and Action -ould 1e a 1e+avioral activit#.
Bit+in t+e frame-or0 of advertisements t+e follo-ing s+ould 1e 0e$t in
mindC
Inderstanding t+e O1:ective;s< of t+e advertisement ;)ISSION<
7efining t+e Target Audience ;)A5GET<
Inderstanding t+e &udget ;)ONE@<
Inderstanding t+e )essage ;)ESSAGE<
T+e )edia used for $utting t+e advertisement ;)E7IA<
Seeing -+et+er t+e advertisement -as Effective ;)EASI5E)ENT<
T+e a1ove -ould commonl# 1e termed as t+e ' )6s of Advertising.
T+e )ission statement -ould refer to t+e Aim of #our advertisement. Is to
im$rove sales/ is to launc+ a ne- $roduct/ it for recall/ is it for some s+ort
term offers/ is it to gain attention/ etc.
T+e )ar0et anal#sis -ould incor$orate t+e t#$e of 1u#er #ou -ant to sell
t+e
$roduct to. For a cosmetic com$an# it is 1ut natural t+e# -ould s+o-
-omen and not men in t+eir advertisement. For ?orlic0s t+e# -ould s+o-
c+ildren +aving t+e $roduct.
)one# is t+e amount of 1udget constraint t+at t+e advertiser +as in
allocating t+e mone# 1et-een different medias and t+e e3$enditure to 1e
incurred. For e3am$le/ Procter J Gam1le ma# allocate 5s. 2 crore for t+e
advertisement of Tide detergent s$read over one #ear.
B+at to sa#/ +o- to sa#/ -+o -ill sa# it and -+at t#$e of a$$eals to 1e given
in t+e message is -+at )essage formulation is all a1out. S+a+ru0+ G+an
1eing t+e s$o0es$erson for ?#undai Santro/ t+e colors used in t+e car/ t+e
movements of t+e car and -+at t+e $erson s+ould remem1er t+e car as are
fe- of t+e elements to 1e 0e$t in mind.
Star Plus/ Kee TL/ Star )ovies/ Times of India/ 5adio )irc+i/ etc/ are fe- of
t+e c+oices -+ere #ou could t+in0 of $utting #our advertisement. T+e $eo$le
-atc+ing t+ose medias are ver# crucial to t+e success of #our advertisement
1eing seen 1# #our target audience.
@ou +ave s$ent 5s. % crore on #our advertisement 1ut do #ou t+in0 t+at #our
sales +ave im$roved or do #ou t+in0 t+e $eo$le +ave seen t+e
advertisementH )easurement is $recisel# t+e -a# in -+ic+ see as to -+et+er
#our advertisement +as 1een effective or not.
Advertising +as a dar0 side to it too. T+e use of -omen to sell virtuall#
ever#t+ing and to +ave se3ual overtures in an advertisement +as 1een a
contentious issue. T+en s+o-ing one communit# in a 1ad lig+t/ li0e if #ou
don6t $ut fairness cream t+en #ou -ould not get married +ave come under
t+e microsco$e of t+e et+ics committee. Advertising involves lot of
creativit# and also mar0eting a$titude to 1e successful in t+is field. @ou +ave
to 0ee$ #our e#es and ears o$en for ins$irations. After all great
advertisements -ere not made in t+e t+in0 rooms. S+o-n 1elo- is a diagram
of -+at advertising entails.
C&ara!eris!is of a (ood Adver!isemen! ,T&e D)al "roess
-.AT IS AD/ERTISING0
Adver!isin( is a communication -+ose $ur$ose is to inform $otential
customers a1out $roducts and services and +o- to use and o1tain t+em.
Ever# ma:or medium is used to deliver t+ese messages/ includingC television/
radio/ movies/ maga8ines/ ne-s$a$ers/ video games/ t+e Internet ;see
Internet advertising</ and 1ill1oards. Advertising is often $laced 1# an
advertising agenc# on 1e+alf of a com$an#.
Advertisements can also 1e seen on t+e seats of grocer# carts/ on t+e -alls of
an air$ort -al0-a#/ on t+e sides of 1uses/ +eard in tele$+one +old messages
and in>store $u1lic address s#stems. Advertisements are usuall# $laced
an#-+ere an audience can easil# andMor fre9uentl# access visuals andMor
audio and $rint
Some organi8ations -+ic+ fre9uentl# s$end large sums of mone# on
advertising 1ut do not strictl# sell a $roduct or service to t+e general $u1lic
includeC $olitical $arties/ interest grou$s/ religion>su$$orting organi8ations/
and militaries loo0ing for ne- recruits. Additionall#/ some non>$rofit
organi8ations are not t#$ical advertising clients and rel# u$on free c+annels/
suc+ as $u1lic service announcements.
DEFINATION OF AD/ERTISING
NAdvertising is the genie which is transforming America into a place of
comfort, luxury and ease for millions.N > Billiam Allen B+ite
NAdvertisers are the interpreters of our dreams -- Joseph interpreting for
Pharaoh. Like the movies, they infect the routine futility of our days with
purposeful adventure. Their weapons are our weaknesses fear, am!ition,
illness, pride, selfishness, desire, ignorance. And these weapons must !e
kept as !right as a sword.N > El-#n &roo0s B+ite
NAdvertising is legali"ed lying.N > ?.G. Bells
N#owever far your travels take you, you will never find the girl who smiles
out at you from the travel !rochure.N > Source In0no-n
NAdvertising is a racket, like the movies and the !rokerage !usiness. $ou
cannot !e honest without admitting that its constructive contri!ution to
humanity is exactly minus "ero.N > Source In0no-n
NAdvertising is the modern su!stitute for argument% its function is to make
the worse appear the !etter.N > George Santa#ana
T.E +AR1ETING CO++UNICATION "ROCESS
FUNDA+ENTALS OF AD/ERTISING , I
T.E FUNDA+ENTALS OF AD/ERTISING
T+e Small &usiness Administration ;S&A< can 1e a valua1le source of
information and financing for small 1usinesses. )uc+ of t+at information is
no- availa1le online/ including t+is on t+e fundamentals of $lanning an
advertising cam$aignC
As0 #ourself t+e follo-ing four 0e# 9uestions -+en $lanning #our ad
cam$aignC
B+at do I -ant m# advertising to accom$lis+H
B+o s+ould m# advertising s$ea0 toH
B+at s+ould m# advertising sa#H
B+at advertising medium s+ould I useH
Eac+ 9uestion can +ave a num1er of ans-ers/ de$ending u$on t+e s$ecific
1usiness situation. E3$lore t+e full range of $ossi1ilities >> #ou ma# need
several advertising strategies for #our $articular 1usiness.
@ou -ant advertising to increase a-areness of #our 1usiness/ develo$ t+e
lo#alt# of #our current customers or generate sales or sales leads. @ou ma#
-ant it to do all of t+ese t+ings. B+atOs im$ortant is to $rioriti8e #our goals.
Advertising -or0s 1est -+en itOs develo$ed to meet one goal at a time.
Once #ou determine #our goals/ #ou can target t+e rig+t audience to receive
#our advertising messages. According to t+e S&A/ N)ass mar0etN
advertising rarel# is successful. ?ave a s$ecific customer t#$e or grou$ in
mind -+en develo$ing #our ads.
Ads s+ould 1e -ritten to communicate a message t+at $o)r target audience
considers im$ortant. Stress t+e 1enefits of #our $roduct or service and 0ee$
AIDA in mindC
> attract A!!en!ion,
> +old In!eres!,
> arouse Desire and
> motivate A!ion2
In addition to t+e NtraditionalN $rint and 1roadcast media/ t+ere are do8ens of
ot+er o$tions for $lacing #our ads >> from 0ios0s to -e1 $ages to 1ill1oards.
T+e im$ortant t+ing to remem1er a1out $lacement is to go -+ere #our
targets -ill +ave t+e greatest li0eli+ood of seeing or +earing #our ad.
@our c+oice of media s+ould fit #our advertising goals/ effectivel# reac+es
#our target;s< and is cost>effective. B+ile getting t+e ma3imum num1er of
im$ressions $er ad dollar s$ent is im$ortant/ -+at is even more im$ortant is
t+at t+e ri(&! $eo$le see #our ad. @ou ma# 1e 1etter off/ for e3am$le/
running a larger/ more e3$ensive ad in a +ig+l# targeted trade $u1lication
-+ose readers+i$ is made u$ of #our targets/ t+an running a small ad in a
larger circulation $u1lication t+at may or ma# not +ave readers -+ic+ fall
into #our target categor#.
It ma# also 1e time to consider +aving a $rofessional >> eit+er an
inde$endent contractor or advertising agenc# >> +el$ #ou $lan and e3ecute
#our ad cam$aign. B+ile #ou -ill $a# for t+eir services/ t+e# can +el$ #ou
refine #our advertising goals and strategies/ $lan #our media $lacements and
-rite +ig+l# effective ad co$# designed to ac+ieve #our o1:ectives. T+ere are
man# trade and industr# associations t+at can $oint #ou to +ig+l# re$uta1le
$eo$le -+o s$eciali8e in $o)r 1usiness area/ suc+ as T+e American
Association of Advertising Agencies.
+AR1ETING DEFINED
)ost $eo$le t+in0 t+at mar0eting is onl# a1out t+e advertising andMor
$ersonal selling of goods and services. Advertising and selling/ +o-ever/ are
:ust t-o of t+e man# mar0eting activities.
In general/ mar0eting activities are all t+ose associated -it+ identif#ing t+e
$articular -ants and needs of a target mar0et of customers/ and t+en going
a1out satisf#ing t+ose customers 1etter t+an t+e com$etitors. T+is involves
doing mar0et researc+ on customers/ anal#8ing t+eir needs/ and t+en ma0ing
strategic decisions a1out $roduct design/ $ricing/ $romotion and distri1ution.
In ot+er -ords/ t+e five categories listed on t+e )OTI +ome $age re$resent
t+e 1road sco$e of mar0eting.
AD/ERTISING AND +AR1ETING +I3
AD/ERTISING AND T.E "RO4ECT
T+e mar*e!in( mi5 is generall# acce$ted as t+e use and s$ecification of t+e
" Ps descri1ing t+e strategic $osition of a $roduct in t+e mar0et$lace. One
version of t+e origins of t+e mar0eting mi3 starts in 1,"* -+en Pames
Culliton said t+at a mar0eting decision s+ould 1e a result of somet+ing
similar to a reci$e. T+is version continues in 1,%! -+en Neil &orden/ in +is
American )ar0eting Association $residential address/ too0 t+e reci$e idea
one ste$ furt+er and coined t+e term O)ar0eting>)i3O. A $rominent $erson to
ta0e centre stage -as E. Perome )cCart+# in 1,'.= +e $ro$osed a four>P
classification -+ic+ -as $o$ularised. P+ili$ Gotler descri1es t+e conce$t
-ell in +is )ar0eting )anagement 1oo0 ;see references 1elo-<
CLASSIFICATION OF "RODUCTS
Pust as itOs necessar# to segment mar0ets for meaningful $rogramming in
mar0et/ so also itO s +el$ful to se$arate $roducts into +omogeneous
classifications. lere -e s+all divide all $roducts into t-o grou$sC
CONSI)E5 GOO7S and IN7IST5IAF GOO7S a classification t+at
$aral l el s our segmentation of t+e mar0et.
CONSU+ER GOODS AND INDUSTRIAL GOODS
T+ere are man# 0inds of consumer goods. So man#/ in fact/ t+at is
im$ossi1le to discuss t+e mar0eting $rocess for eac+ of t+em. Furt+er/ some
$roducts usuall# considered consumer goods ma# also 1e industrial goods
since t+e# are destined for use 1# intermediate customers. &onsumer goods
are t+ose goods or services destined for t+e ultimate consumer in suc+ a
form t+at t+e# ma# 1e used -it+out furt+er commercial $rocessing. T+ese
contrast -it+ industrial goods, -+ic+ are defined as t+ose goods and
services destined for use in $roducing ot+er goods and services. O All goods
fit into eit+er of t+ese t-o categories.
T+e t#$e of customer 1u#ing t+e good determines -+et+er it s+ould 1e
classified as a consumer and industrial good. Alt+oug+ t+e same $+#sical
$roduct ma# 1e involved/ an entirel# different mar0eting mi3 ma# 1e
re9uired/ de$ending u$on t+e t#$e of 1u#er and intended use. T+e follo-ing
$roducts and services can 1e eit+er consumer or industrial goods/ de$ending
u$on -+et+er t+e# are destined for a final consumer or some intermediate
customer ;suc+ as a manufacturer/ farmer or government agenc#<C
t#$e-riters/ t#$ing $a$er/ rugs/ decoratorsN services/ lig+ting fi3tures/
1rooms and $lum1ing services.
Consumer goods include all $roducts -+ic+ are Ndestined for use 1# ultimate
consumers or +ouse+olds and in suc+ form t+at t+e# can 1e used -it+out
commercial $rocessing.Industrial goods are t+ose -+ic+ are Ndestined to 1e
sold $rimaril# for use in $roducing ot+er goods or rendering services as
contrasted -it+ goods destined to 1e sold $rimaril# to t+e ul t i mat e
consumer.
NEED FOR A CLASSIFICATION S6STE+
Fres+ meal/ cannot salmon and lettuce are all foods/ vet all are mar0eted
differentl#. ?osier# and -omenOs $art# dresses are clot+ing items/ 1ut t+e
mar0eting mi3es for eac+ are 9uite dissimilar. ?osier# is availa1le in man#
different t#$es of outlets and +as a muc+ sim$ler fitting $ro1lem. And
+osier< +as 1een successfull# 1randed/ -+i l e fe- -omenOs dress 1rands are
-idel# recogni8ed 1# customers.
T+ere are man# ot+er e3am$les of a$$arentl# similar $roducts -it+
dissimilar mar0eting $ro1lems. It is clear t+at t+e nature of t+e $roduct +as
considera1le 1earing on +o- t+e four POs are com1ined in a mar0eting mi3.
To avoid treating ever# $roduct as a s$ecial case/ -e must tr# to develo$
some sensi1le/ if tentative/ generali8ations a1out +o- $roducts are related to
mar0eting mi3es. Fet us see if -e can develo$ suc+ a $roduct classification
s#stem.
SO+E "OSSIBLE CLASSIFICATION S6STE+S
One s#stem of classification mig+t 1e 1# t+e t#$e of outlet t+roug+ -+ic+
t+e $roducts are mar0eted. All $roducts usuall# found in grocer# stores
could 1e treated ali0e/ for e3am$le. So could t+ose found in drugstores/
clot+ing stores/ s$orting goods stores/ +ard-are stores and so on.
Inder suc+ a s#stem/ +o- -ould -e treat a $roduct suc+ as toot+$asteH
Toot+$aste is no- 1eing sold in drugstores/ food stores/ variet# stores/
de$artment stores/ college 1oo0 stores and man# ot+er $laces. At one time
stores s$eciali8ed in certain $roducts/ 1ut t+ere is a definite trend for several
t#$es of store. T+is is called Nscram1led merc+andising.N
Anot+er $ossi1ilit# -ould 1e to categori8e a $roduct as a necessit# or as a
lu3ur#. T+e difficult# -it+ t+is s#stem is t+at it -ould de$end on t+e raterOs
attitudes. A Nnecessit#N to one $erson mig+t 1e a Nlu3ur#N to anot+er.
)oreover/ -+ile 1road categories suc+ as food are o1viousl# necessities/
relativel# fe- individual food items are.
Cl assi f#i ng 1# t+e degree of demand elasticit# is anot+er $ossi 1i l i t #.
&ut t+e elasticit# of demand for general categories suc+ as food does not
+old true for all t+e $roducts -it+in t+e categor#. Bit+in t+e meat categor#
alone ;-+ic+ mig+t 1e considered to +ave a fairl# inelastic demand< t+e
demand for s$ecial meat $roducts/ suc+ as +am1urger or $orter+ouse stea0/
are muc+ more elastic. T+e reason is t+at t+ere are man# su1stitute -a#s of
satisf#ing t+e general demand for meat.
A USEFUL CLASSIFICATION S6STE+
Be need a classification s#stem 1ased on the way people !uy products. T+e
$ur$ose of t+e mar0eting $rocess is t+e satisfaction of consumers. It follo-s
t+at/ to develo$ and mar0et $roducts effectivel#/ -e must 0no- +o- t+e#
feel a1out t+ese $roducts and es$eciall# t+eir 1asis of c+oice. It follo-s t+at/
t+en/ t+at an# classification s#stem s+ould 1e 1ased u$on customer 1e+avior.
Our s#stem -or0s t+at -a#/ se$arating goods into fourcategoriesC
1< Convenience goods/
2< S+o$$ing goods/
!< S$ecialt# goods/
"< Insoug+t goods.
&onvenience goods are t+ose -+ic+ customers -is+ to $urc+ase immediatel#
and -it+ a minimum effort. Put anot+er -a#/ convenience goods are t+ose
goods for -+ic+ t+e $ro1a1le gain from ma0ing $rice and 9ualit#
com$arisons is t+oug+t to 1e small relative to t+e value of customers.N time
and effort.
'hopping goods as t+e name im$lies/ are t+ose goods for -+ic+ customers
actuall# do s+o$. T+at is/ t+e# com$are $rice and 9ualit# of various 1rands.
T+e# ma# read a1out $erformance/ searc+ ne-s$a$er advertisements and
even go to several stores. In s+ort/ t+e# feel t+at t+e gain from ma0ing t+ese
com$arisons is -ort+ t+eir time and effort.'pecialty goods are t+ose -+ic+
customers c+aracteristicall# insist u$on and for -+ic+ t+e# are -i l l i ng to
ma0e a s$ecial effort.
(nsought goods are t+ose -+ic+ $otential customers do not #et -ant or
0no- t+e# can 1u#. T+e# do not searc+ out t+ese goods. Furt+ermore/ t+e#
-ould 1e unli0el# to 1u# t+em i I t+e# sa- t+em.
S.O""ING BE.A/IOR DETER+INES CLASSIFICATION
It s+ould 1e noted t+at some 0ind of shopping 1e+avior c+aracteri8es
convenience and s+o$$ing goods. T+ese goods can 1e seen as 1eing at eit+er
end of a continuum of customer Ns+o$$ing effortN. T+e amount of searc+ and
com$arison increases steadil# as one moves from s+oe strings ; a
convenience good< to suits and dining room furniture ;s+o$$ing goods<.
S$ecialt# and unsoug+t goods are not on t+e same continuum of s+o$$ing
effort. T+e# are s$ecial cases. No s+o$$ing at all is done for unsoug+t goods.
In t+e case of s$ecialt# goods/ customers -ould 1e -illing to travel
e3tensivel# for a $articular $roduct 1ut not to s+o$ for t+e most satisfactor#
$roduct. T+e customer +as alread# made a decision a1out a $articular $ro>
duct/ $ro1a1l# a s$ecific 1rand and -i l l loo0 as far as necessar# to find it.
T+is does not mean t+at s+e -ill +ave to loo0 ver# far/ +o-ever. Gno-ing
t+e strengt+ of customersO $references and -illingness to searc+/ man#
retailers ma# carr# suc+ a $roduct/ 0no-ing t+at ot+er-ise t+e# -ill lose t+e
1usiness.
It is ver# im$ortant to see t+at customersO attitudes are crucial in t+is
classification s#stem not t+e met+ods of distri1ution. 7istri1ution s+ould
;lo- naturall# from +o- customers t+in0 a1out t+e $roducts or services.
+AR1ETING SIGNIFICANCE OF "RODUCT
CLASSIFICATION
T+e t-o>-a# $roduct classification is a useful frame-or0 for $rogramming
mar0eting o$erations 1ecause eac+ ma:or class of $roducts ultimatel# goes
to a different mar0et and re9uires different mar0eting met+ods. In t+e field
of $roduct $lanning/ for e3am$le 1randing/ $ac0aging/ color and
fas+ion are generall# for more significant for a consumer $roduct t+an for
an industrial goods.
CON/ENIENCE GOODS
Convenience goods/ again/ are t+ose goods for -+ic+ t+e $ro1a1le gain from
ma0ing $rice and 9ualit# com$arisons is t+roug+ to 1e small relative to t+e
value of t+e customerOs time and effort. Isuall# considered as convenience
goods are items suc+ as cigarettes/ soa$/ drugs/ ne-s$a$ers/ maga8ines/ c+e>
-ing gum cand# and most grocer# $roducts.
T+ese $roducts are fre9uentl# and readil# $urc+ased/ re9uire little service or
selling/ are not ver# e3$ensive and ma# even 1e 1oug+t 1# +a1it. T#$icall#/
t+e customer is not -illing to $ut ver# muc+ time or effort into t+e $urc+ase
or convenience goods. T+e classic cigarette slogan NIOd -al0 a mile for a
CamelN/ tried to im$l# t+at Camels -ere not a convenience goods/ 1ut it is
dou1tful t+at man# consumers t+in0 of t+eir o-n cigarette 1rand in t+is
lig+t.
Care must 1e e3ercised in classif#ing goods as convenience goods too
9uic0l#. T+e attitudes ;$er+a$s 1ased on income and -ealt+ as -ell as ot+er
factors< of target customers are im$ortant.
Note t+at t+e $roduct classification ma# 1e related to elasticit# of demand. If
customers do not give muc+ t+oug+t to $rice -+en $urc+asing convenience
goods/ $ro1a1l# t+e demand for t+ese $roducts -ill 1e relativel# inelastic.
T.REE T6"ES OF CON/ENIENCE GOODS
Convenience goods can 1e su1classified into t+ree t#$es/ 1ased $rimaril# on
+o- customers t +i n0 a1out and 1u# suc+ $roductsC
1< Sta$les/
2< Im$ulse goods/
!< Emergenc# goods.
Sta$les. Sta$les/ suc+ as food and drug items used regularl# in ever#
+ouse+old/ are usuall# 1oug+t -it+out muc+ t+oug+t 1e#ond t+e initial
decision to 1u# suc+ $roducts. Sta$les are usuall# $urc+ased fre9uentl#.
&randing 1ecomes im$ortant/ since 1rand recognition or $reference +el$s
t+e customer reduce +er s+o$$ing effort. Furt+ermore/ if +er store c+anges
$rices onl# infre9uentl# on t+ese items/ s+e does not need to reconsider
-+ic+ item to $urc+ase/ 1ut can sta# -it+ familiar ones.
Sta$les items are offered for sale in man# convenient $laces 1ecause of
customersO reluctance to searc+ ver# far. T+e# are found in food stores/
drugstores/ +ard-are stores and vending mac+ines/ for e3am$le. Some
customers value convenience so +ig+l# t+at t+e# $refer to +ave suc+ goods
delivered to t+eir +ome. Some t+in0 of mi l 0/ ice and ne-s$a$ers as items
-+ic+ oug+t to 1e delivered to t+em. T+is e3tra service often increases t+e
$rice 1ut/ 1ecause of t+e convenience/ customers are -illing to $a# sl i g+t l #
more.
Im$ulse goods. Contrasted to sta$les/ im$ulse goods are t+ose -+ic+
customers t#$icall# do not see0. T+e# are included in t+e categor# of
convenience goods ;rat+er t+an unsoug+t goods< mainl# 1ecause t+e# are
items -+ic+ t+e customer -is+es to $urc+ase on sig+t and ma# +ave
$urc+ased t+e same -a# man# times 1efore. For e3am$le/ ifa +ouse-ife
-ere to $ass a street corner vendor/ decide eating ice cream -ould 1e a good
idea and $urc+ase an ice cream 1ar/ t+is 1ar $ro1a1l# -ould 1e an im$ulse
good.
?o-ever ;and t+is is t+e im$ortant distinction< if t+e same +ouse-ife -ere
to $urc+ase a 1o3 of ice cream 1ars -+ile s+o$$ing -it+ t+e invention of
using t+em for a famil# dessert/ t+en t+e 1ars -ould 1e regarded as sta$les.
S+e -as loo0ing for desserts/ among ot+er t+ings. T+e distinction is a su1tle
1ut im$ortant one. If t+e customer docs not $urc+ase an im$ulse good
immediatel#/ t+e need ma# disa$$ear and no $urc+ase -ill 1e made -+ereas
s+e $ro1a1l# -ill 1u# some dessert. If t+e +ouse-ife $assed a man selling
1alloons and considers 1u#ing one for +er small c+i l d 1ut finds s+e +as not
t+e $ro$er c+ange/ it is most unli0el# t+at s+e -ill go 1ac0 later loo0ing for a
1alloon.
Ot+er $ro1a1le im$ulse goods include fountain service/ roasted c+estnuts or
$eanuts/ cand# and novelties/ some -omenOs +ats and 1louses and costume
:e-elr#. As t+e income and 1u#ing $o-er of consumers gro-/ t+e num1er of
im$ulse items seems to 1e e3$anding. &ut it s+ould not 1e assumed t+at all
im$ulse goods are $urc+ased for emotional reasons. To 1e sure/ im$ulse
goods ma# satisf# emotional motives/ 1ut t+e# ma# also satisf# economic
motives. A +ouse-ife mig+t 1u# a ne- floor mo$ -+ic+ $romises to ma0e
+er +ouse-or0 easier even t+oug+ s+e +ad not even 1een t+in0ing a1out one.
Pust 1ecause a $roduct seems to 1e $urc+ased as an im$ulse good does not
mean t+at t+e customer -as not alread# a-are of t+e $roduct categor# and
$er+a$s even of t+e 1rand. T+ere mig+t even 1e strong 1rand $reference on
some items -+ic+ are $urc+ased on im$ulse for e3am$le Coca>Cola and
some 1rands of cand# 1ars. An im$ulse $urc+ase mig+t satisf# a strongl# felt
need in t+e same -a# t+at t+e need +ad 1een satisfied man# times 1efore.
T+is -ould still 1e an im$ulse $urc+ase/ +o-ever/ 1ecause t+e $articular
$urc+ase in 9uestion -as not $lanned and t+e need mig+t not 1e satisfied ;at
least -it+ t+e $articular $roduct involved< if it +ad not 1een seen.
T+is means $lace -ill 1e e3tremel# im$ortant for im$ulse goods.
7e$artment stores often $lace suc+ goods on t+e first floor near main doors/
-+ile su$ermar0ets and drugstores $ut t+em near t+e c+ec0out counter.
Emergenc# goods. Emergenc# goods are $urc+ased less fre9uentl#/ onl#
-+en t+e need is urgent. T+en t+e customer -ants t+e $roduct availa1le in
t+e most convenient $lace. Price/ $er+a$s even 9ualit#/ is of small concern
es$eciall# if t+e need is immediate enoug+. T+e demand for suc+ goods ma#
1e e3tremel# inelastic. Am1ulance services/ um1rellas or raincoats during a
rainstorm and tire c+ains during a driving sno-storm are e3am$les of
emergenc# goods.
S.O""ING GOODS
S+o$$ing goods are t+ose for -+ic+ t+e $ro1a1le gain from ma0ing $rice
and 9ualit# com$arisons is t+oug+t to 1e large relative to t+e time and effort
needed to s+o$ $ro$erl# for t+ese goods. B+en a su1stantial grou$ of
customers find it -ort+-+ile to s+o$ around for a $articular $roduct/ t+en
-e arc dealing -it+ a s+o$$ing good.
S+o$$ing Goods can 1e divided into t-o classifications de$ending
on -+at customers are see0ingC
?omogeneous
?eterogeneous
.O+OGENEOUS S.O""ING GOODS
?omogeneous $roducts ;t+ose -+ic+ consumers vie- as essentiall# similar<
1egins to 1ear fruit +ere. It -ill 1e recalled t+at -+en consumers vie- t+e
various $roducts offered in a categor# as essentiall# t+e same/ eac+
com$etitor +as an almost $erfectl# elastic demand curve. In suc+ a case/ a
slig+t $rice cut -ould su1stantiall# increase sales volume ;if com$etitors did
not matc+ t+is cut</ and t+us -e mig+t e3$ect $rice com$etition among t+e
various com$etitors in t+e mar0et.
Be do/ in fact/ find t+is condition in man# mar0ets. )an# consumers/ for
e3am$le/ find certain si8ed and t#$es of refrigerators/ television sets/
-as+ing mac+ines and even automo1iles to 1e essentiall# similar and are
$rimaril# concerned a1out s+o$$ing for t+e 1est $rice.
)anufacturers see0 to em$+asi8e t+eir differences and retailers tr# to
$romote t+eir N1etter serviceN. &ut if t+e customers do not 1elieve t+ese
differences are real/ t+e# -ill em$+asi8e t+e one varia1le -+ic+ t+e# feel is
or can 1e different $rice.
S"ECIALT6 GOODS
S$ecialt# goods are t+ose consumer goods on -+ic+ a significant grou$ of
1u#er c+aracteristicall# insist and for -+ic+ t+e# are -i l l i ng to ma0e a
s$ecial effort. T+e s$ecial effort t+e customer e3$ends is not to com$are t+e
$roduct -it+ ot+ers/ 1ut merel# to locate it. Searc+ing in s+o$$ing goods
sense does not ta0e $lace.
S$ecialt# goods are usuall# s$ecific 1randed items rat+er t+an $roduct
categories t+at is/ t+e# are s$ecific $roducts -+ic+ +ave $assed t+e 1rand
$reference stage and reac+ed t+e 1rand insistence stage. Product
differentiation and mar0et segmentation efforts see0 to create s$ecialt#
goods.
A uni9ue $roduct in t+e introductor# or mar0et gro-t+ stage/ even t+oug+
not 1randed/ mig+t also 1e a s$ecialt# good. A ne- drug com$ound/ even
t+oug+ availa1le from several manufacturers/ mig+t 1e a s$ecialt# good for
some target customers. Generall#/ +o-ever/ a s$ecific 1rand is involved.
It is sometimes assumed t+at s$ecialt# goods are limited to relativel#
e3$ensive items/ $ro1a1l# dura1le/ -+ic+ are normall# $urc+ased
infre9uentl#. T+ere seems to 1e no valid reason for ma0ing t+ese restrictive
assum$tions/ +o-ever. An# successfull# 1randed item -+ic+ develo$s a
strong consumer franc+ise ma# ac+ieve s$ecialt# goods status. Consumers
+ave 1een o1served as0ing for a drug $roduct 1# its 1rand name and -+en
offered a su1stitute/ actuall# leaving t+e store in anger.
Same -ell>advertised food a drug $roducts seem to +ave carved out a mar0et
for t+emselves. If t+e# ac+ieve t+e 1rand insistence stage/ -e call t+em
s$ecialt# goods. As mig+t 1e e3$ected/ t+e demand for s$ecialt# goods -ill
1e relativel# inelastic/ at least -it+in reasona1le $rice ranges/ since target
customers are -i l l i ng to insist u$on t+e $roduct.
UNSOUG.T GOODS
Insoug+t goods are t+ose -+ic+ $otential customers do not #et -ant or
0no- t+e# can 1u# and t+erefore do not searc+ for at all. Furt+ermore/ if
t+ese target customers +a$$en to come u$on t+e $roduct/ t+e# $ro1a1l#
-ould not 1u# unless additional $romotion -ere directed to-ard t+em.
In tal0ing a1out unsoug+t goods/ it 1ecomes e3tremel# im$ortant to 1ring in
t+e mar0et grid conce$t again and state s$ecificall# -+at target mar0ets are
1eing considered. )o1ile +omes/ for e3am$le/ -ould $ro1a1l# 1e a
s+o$$ing good for t+ose -+o are logicall# in t+e mar0etC construction
-or0ers/ servicemen/ students and elderl# cou$les. At certain times/ suc+
families are definitel# see0ing a mo1ile +ome and for t+em ;at t+at time< t+e
$roduct -ould 1e a s+o$$ing good. )ost mo1ile +ome dealers treat t+e
$roduct as a s+o$$ing good/ selling against ot+er mo1ile +omes rat+er t+an
against tract +ome 1uilders.
&ut if t+e target mar0et is defined as all t+ose families -+o mig+t 1e
interested in $urc+asing +omes/ t+en mo1ile +omes $ro1a1l# are unsoug+t
goods. Again t+e classification de$ends u$on t+e attitudes of t+e relevant
target mar0et.
INDUSTRIAL GOODS
B+ile a consumer goods classification s#stem is useful for develo$ing
effective mar0eting mi3es/ an industrial goods classification is even
more valua1le. In t+e famil#/ even allo-ing for t+e gro-ing im$ortance
of +us1ands and c+ildren/ t+e -ife is t+e $rime 1u#er= s+e 1u#s all t#$es of
goods.
&ut is an industrial $lant/ t+ere are a num1er of 1u#ing influences/
de$ending mostl# on t+e $roduct 1ut $artl# on t+e com$an# involved. B+ile
most $urc+ases are made 1# a $urc+asing agent/ t+e ma:or influence ma# 1e
e3erted 1# t+e office manager/ $lant foreman or t+e e3ecutive grou$.
GENERAL C.ARACTERISTICS OF INDUSTRIAL GOODS
)ost industrial goods +ave t+e follo-ing general c+aracteristicsC
T+eir demand is derived from t+e demand for final consumer
goods/
Industrial demand ma# 1e inelastic -+ile one com$an#Os demand ma#
1e elastic/
&u#er interest in $rice de$ends on t+e nature of t+e $roduct/
&u#ing is 1asicall# concerned -it+ economic factors/
T+e 1u#erOs attitude seems to 1e affected 1# t+e ta3 treatment
accorded t+e $roduct
B+et+er t+e e3$enditure for t+e $roduct is c+arged off as a ca$ital or an
e3$ense item.
INDUSTRIAL GOODS CLASSIFICATIONS
Industrial goods 1u#ers do relativel# little s+o$$ing as com$ared -it+
consumer goods 1u#ers. T+e acce$ted $ractice is for t+e seller to come to t+e
1u#er. T+is means t+at a $roductclassification s#stem 1ased $rimaril# on
s+o$$ing 1e+avior is not a$$ro$riate.
T+e industrial goods classification -e -ill use is determined 1# +o- 1u#ers
loo0 at $roducts. Our categories areC
Installations/
Accessor# e9ui$ment/
5a- materials/
Com$onent $arts and materials/
Su$$lies/
Services.
INSTALLATIONS
Installations are large and e3$ensive items -+ic+ do not 1ecome a $art of t+e
final $roduct/ 1ut instead are used u$ over man# #ears. All installations are
capital items. T+e# re$resent ma:or e3$enditures for t+e com$an# and are
de$reciated over a $eriod ranging from 2 or 2. or more #ears.
T+ere are t-o ma:or classification of installationsC !uildings and land rights
and ma)or e*uipment. &uildings and land rig+ts include factories/
-are+ouses/ 1arns/ retail stores/ office 1uildings/ -+eat fields/ mining
de$osits/ tim1er rig+ts/ etc.
)a:or e9ui$ment includes large items of mac+iner#/ suc+ as diesel engines/
1oilers/ tractors/ com1ines/ $a$er>ma0ing mac+ines/ electrical generators/
$rinting $resses/ furnaces/ 0ilns/ rolling mills and large conve#or s#stems.
)a:or e9ui$ment can 1e su1divided into t-o t#$esC
1< Custom>made/
2< Standard.
&ustom-made e9ui$ment is made es$eciall# for a $articular com$an# and
installed on t+e 1asis of s$ecial needs and detailed dra-ings or
s$ecifications.
'tandard installations include $roducts li0e tractors/ general $ur$ose diesel
engines/ lat+es and $rinting $resses/ -+ic+ are regular $roduction items.
For our $ro$oses/ 1uildings and custom>made e9ui$ment are treated ali0e/
since 1ot+ re9uire s$ecial negotiations for eac+ individual $roduct.
Standardi8ed ma:or e9ui$ment/ 1eing more +omogeneous/ can 1e treated
more routinel#. All installations/ +o-ever/ are im$ortant enoug+ to re9uire
+ig+> level and even to$ management/ consideration.
ACCESSOR6 E7UI"+ENT
Accessor# e9ui$ment ;li0e installations< does not 1ecome a $art of t+e final
$roduct. T+ese $roducts are usuall# less e3$ensive and s+orter lived t+an
installations/ 1ut still are capital items.
Actuall#/ accessor# e9ui$ment is ver# similar to t+e smaller standard
installations. T+is categor# includes tools and e9ui$ment -+ic+ facilitate
$roduction or office activities/ e3am$les include $orta1le drills/ sanding
mac+ines/ electric lift truc0s and small lat+es.

RA- +ATERIALS
5a- materials are t+ose $roducts -+ic+ +ave undergone no more $rocessing
t+an is re9uired for convenience/ $rotection or econom# in storage/
trans$ortation or +andling. In cont rast -it+ our first t-o categories/ t+e#
1ecome $art of t+e $+#sical $roduct.
5a- materials are expense items and are regarded in an entirel# different
lig+t from t+e ca$ital items -e +ave 1een considering. T+eir $urc+ase +as a
ma:or im$act on t+e current $rofit and loss situation/ 1ut less im$act on t+e
long>run situation. Even so/ -+ere ra- materials re$resent a large $art of t+e
firmOs costs/ to$ e3ecutives ma# enter into t+e negotiation/ es$eciall# of
annual contracts. Su1se9uentl#/ routine $urc+ase orders are sent t+roug+
against suc0 contracts. O1viousl# t+ese $roducts -ould come directl# from
farms/ forests/ seas or mines. Since man# different $roducts come under t+is
ra- materials categor# it is useful to 1rea0 t+em into t-o 1road categoriesC
1< Farm $roducts/
2< Natural $roducts. T+ese ma# 1e su1divided as follo-sC
1. Farm Products
Cro$s
Fi1ersC cotton/ fla3/ etc.
Fruits and vegeta1les/
GrainsC -+eat/ r#e/ 1arle#/ oats/ etc.
)iscellaneous cro$sC to1acco/ sugar cane/ etc.
7omestic Animals and Products
> Fivestoc0C cattle/ +ogs/ s+ee$/ etc.
> Poultr#/
> Products o1tained from animalsC -ool/ mil0/ etc.
2> Natural Products
Animal Fife
a< Fis+ and game/
1< Fur>1earing animals/
Forest Products
. Fum1er/
. )iscellaneousC ru11er/ rosin/ ma$le s#ru$/ etc.
a )ineral Product/
1. Nonferrous metalsC co$$er/ lead/ 8inc/ etc.
2. Iron ore/
!. Petroleum/
". Coal and ot+er fuels.
It is o1vious from a revie- of t+is listing t+at man# $roducts are included
-+ic+ final consumers can use directl#. )an# fruits and vegeta1les/ $oultr#/
eggs/ mil0 and meat $roducts are $urc+ased fres+ 1# customers. T+ese
$roducts +ave not undergone furt+er $rocessing since/ for $ractical $ur$oses/
t+e# are finis+ed $roducts. Alt+oug+ t+e# ma# re9uire s$ecial +andling
1ecause of t+eir $eris+a1ilit#/ t+e# can $ro$erl# 1e t+oug+t of as consumer
goods and $ro1a1l# convenience goods at t+at. Fres+ fis+ and game/ some
forest $roducts ;suc+ as fire>-ood</ and mineral $roducts ;suc+ as coal< also
can 1e used directl# as consumer goods.
CO+"ONENT "ARTS AND +ATERIALS
Com$onent $arts and materials ;li0e ra- materials< 1ecome a $art of t+e
finis+ed $roduct. &ot+ are treated as expense items and +ave some-+at
similar c+aracteristics. T+ese/ +o-ever/ undergo more $rocessing t+an is
re9uired for ra- materials.
&omponent parts include t+ose items -+ic+ areC
Q Finis+ed and read# for assem1l#/
Q Almost finis+ed
5e9uiring onl# minor additional $rocessing ;suc+ as grinding or $olis+ing<
1efore 1eing assem1led into t+e final $roduct. E3am$les include automo1ile
1atteries/ s$ar0 $lugs/ small motors/ tires/ forgings or castings/ all of -+ic+
are incor$orated directl# into a finis+ed $roduct. Also included in t+is
categor# are tools or ot+er items suc+ as automo1ile :ac0s/ -+ic+ are sold
-it+ t+e $roduct 1ut not $+#sicall# attac+ed to it.
&omponent materials include alread# $rocessed materials li0e -ire/ $a$er/
te3tiles or cement/ -+ic+ -ill 1e furt+er $rocessed or s+a$ed 1efore
1ecoming $ail of t+e final $roduct.
SU""LIES
Su$$lies ;li0e ra- materials and com$onent $arts and materials< are
continuall# used u$ in a com$an#Os o$eration. &ecause of t+is/ t+e# are
expense items. Inli0e t+e $revious t-o categories of $roducts/ +o-ever/
supplies do not !ecome a part of the physical product. T+us/ -+ile t+e# are
necessar#/ most su$$lies are not nearl# as vital as t+e $roducts in t+e firs
four classifications.
Su$$lies ma# 1e divided into t+ree categoriesC
1> )aintenance/
2> 5e$air/
!> O$erating su$$lies.
From t+is/ su$$lies are commonl# called ).5.O. items.
+aintenance items include suc+ t+ings are $aint/ nails/ lig+t 1ul1s/ s-ee$ing
com$ounds/ 1rooms and -indo-s>cleaning e9ui$ment. ,epair items are nuts
and 1olts or $arts -+ic+ are needed to re$air e3isting installations or
accessor# e9ui$ment. -perating supplies include items suc+ as lu1ricating
oils and greases/ grinding com$ounds/ coal/ t#$ing $a$er/ in0/ $encils and
$a$er cli$s.
SER/ICES
Services fre9uentl# are necessar# or desira1le to $lan/ facilitate or su$$ort
o$erations. Engineering or management consulting services mig+t im$rove
t+e $lant la#out or t+e organi8ation of t+e com$an#. 7esign services ma# 1e
useful for store/ -are+ouse/ $lant or $roduct design. Outside maintenance
services ma# 1e desired for -indo- cleaning/ $ainting or general
+ouse0ee$ing services= t+ese services are commonl# offered to small
retailers. Ot+er services/ suc+ as in>$lant lunc+ services and music s#stems
to im$rove em$lo#ee morale and $roduction ma# 1e $urc+ased from $rivate
contractors.
All t+ese services are considered expense items. T+e cost of 1u#ing t+em
outside -ould 1e com$ared -it+ t+e cost of $roviding t+e services 1#
com$an# $ersonnel. If s$ecial s0ills are involved and t+e services are
$urc+ased onl# irregularl#/ t+en an outsider ma# 1e in a strong selling
$osition. As our econom# 1ecomes more and more com$le3/ s$ecialists in
various activities are develo$ing= t+is trend -ill $ro1a1l# continue. T+e
demand for t+ese services ma# 1e fairl# inelastic if t+e su$$lier +as a uni9ue
$roduct.
"RODUCT "OSITIONING "ROCESS
Generall#/ t+e $roduct $ositioning $rocess involvesC
1. 7efining t+e mar0et in -+ic+ t+e $roduct or 1rand -ill com$ete ;-+o
t+e relevant 1u#ers are<
2. Identif#ing t+e attri1utes ;also called dimensions< t+at define t+e
$roduct Os$aceO
!. Collecting information from a sam$le of customers a1out t+eir
$erce$tions of eac+ $roduct on t+e relevant attri1utes
". 7etermine eac+ $roductOs s+are of mind
%. 7etermine eac+ $roductOs current location in t+e $roduct s$ace
'. 7etermine t+e target mar0etOs $referred com1ination of attri1utes
;referred to as an ideal vector<
(. E3amine t+e fit 1et-eenC
o T+e $osition of #our $roduct
o T+e $osition of t+e ideal vector
*. Position.
T+e $rocess is similar for $ositioning #our com$an#Os services. Services/
+o-ever/ donOt +ave t+e $+#sical attri1utes of $roducts > t+at is/ -e canOt feel
t+em or touc+ t+em or s+o- nice $roduct $ictures. So #ou need to as0 first
#our customers and t+en #ourself/ -+at value do clients get from m#
servicesH ?o- are t+e# 1etter off from doing 1usiness -it+ meH Also as0C is
t+ere a c+aracteristic t+at ma0es m# services differentH
Brite out t+e value customers derive and t+e attri1utes #our services offer to
create t+e first draft of #our $ositioning. Test it on $eo$le -+o donOt reall#
0no- -+at #ou do or -+at #ou sell/ -atc+ t+eir facial e3$ressions and listen
for t+eir res$onse. B+en t+e# -ant to 0no- more 1ecause #ouOve $i9ued
t+eir interest and started a conversation/ #ouOll 0no- #ouOre on t+e rig+t
trac0.
8"osi!ionin( onep!s
)ore generall#/ t+ere are t+ree t#$es of $ositioning conce$tsC
1. Functional $ositions
o Solve $ro1lems
o Provide 1enefits to customers
o Get favora1le $erce$tion 1# investors ;stoc0 $rofile< and
lenders
2. S#m1olic $ositions
o Self>image en+ancement
o Ego identification
o &elongingness and social meaningfulness
o Affective fulfillment
!. E3$eriential $ositions
o Provide sensor# stimulation
o Provide cognitive stimulation
"AC1AGING AND SALES "RO+OTION
Cons)mer sales promo!ion !e&ni9)es
Price dealC A tem$orar# reduction in t+e $rice/ suc+ as +a$$# +our
Fo#alt# re-ards $rogramC Consumers collect $oints/ miles/ or credits
for $urc+ases and redeem t+em for re-ards. T-o famous e3am$les are
Pe$si Stuff and AAdvantage.
Cents>off dealC Offers a 1rand at a lo-er $rice. Price reduction ma# 1e
a $ercentage mar0ed on t+e $ac0age.
Price>$ac0 dealC T+e $ac0aging offers a consumer a certain $ercentage
more of t+e $roduct for t+e same $rice ;for e3am$le/ 2% $ercent e3tra<.
Cou$onsC cou$ons +ave 1ecome a standard mec+anism for sales
$romotions.
Foss leaderC t+e $rice of a $o$ular $roduct is tem$oraril# reduced in
order to stimulate ot+er $rofita1le sales
Free>standing insert ;FSI<C A cou$on 1oo0let is inserted into t+e local
ne-s$a$er for deliver#.
On>s+elf cou$oningC Cou$ons are $resent at t+e s+elf -+ere t+e
$roduct is availa1le.
C+ec0out dis$ensersC On c+ec0out t+e customer is given a cou$on
1ased on $roducts $urc+ased.
On>line cou$oningC Cou$ons are availa1le on line. Consumers $rint
t+em out and ta0e t+em to t+e store.
)o1ile cou$oningC Cou$ons are availa1le on a mo1ile $+one.
Consumers s+o- t+e offer on a mo1ile $+one to a sales$erson for
redem$tion.
Online interactive $romotion gameC Consumers $la# an interactive
game associated -it+ t+e $romoted $roduct. See an e3am$le of t+e
Interactive Internet Ad for tomato 0etc+u$.
5e1atesC Consumers are offered mone# 1ac0 if t+e recei$t and
1arcode are mailed to t+e $roducer.
ContestsMs-ee$sta0esMgamesC T+e consumer is automaticall# entered
into t+e event 1# $urc+asing t+e $roduct.
Point>of>sale dis$la#sC
o Aisle interru$terC A sign t+e :uts into t+e aisle from t+e s+elf.
o 7anglerC A sign t+at s-a#s -+en a consumer -al0s 1# it.
o 7um$ 1inC A 1in full of $roducts dum$ed inside.
o GlorifierC A small stage t+at elevates a $roduct a1ove ot+er
$roducts.
o Bo11lerC A sign t+at :iggles.
o Fi$stic0 &oardC A 1oard on -+ic+ messages are -ritten in
cra#on.
o Nec0erC A cou$on $laced on t+e Onec0O of a 1ottle.
o @ES unitC N#our e3tra sales$ersonN is a $ull>out fact s+eet.
Trade sales promo!ion !e&ni9)es
Trade allo-ancesC s+ort term incentive offered to induce a retailer to
stoc0 u$ on a $roduct.
7ealer loaderC An incentive given to induce a retailer to $urc+ase and
dis$la# a $roduct.
Trade contestC A contest to re-ard retailers t+at sell t+e most $roduct.
Point>of>$urc+ase dis$la#sC E3tra sales tools given to retailers to 1oost
sales.
Training $rogramsC dealer em$lo#ees are trained in selling t+e
$roduct.
Pus+ mone#C also 0no-n as Ns$iffsN. An e3tra commission $aid to
retail em$lo#ees to $us+ $roducts.
Trade discounts ;also called functional discounts<C T+ese are $a#ments to
distri1ution c+annel mem1ers for $erforming some function
FUNDA+ENTALS OF AD/ERTISING , II
In t+is c+a$ter/ -e s+all devote some attention to t+e $s#c+olog#
governing t+e advertising $rocess. In s+ort/ -e s+all 1e stud#ing consumer
1e+aviours.
T&e roles people pla$ in !&e on!e5! of ons)mer #e&avio)r are
(iven #elo:;
a< Initiator is one -+o determines t+at some need or -ant is
unfulfilied.
1< Influencer is one -+o -ittingMun-ittingl# influencer t+e
decision to 1u#/ t+e actual $urc+ase andMor t+e use of t+e
$roduct.
c< &u#er is one -+o actuall# ma0es t+e $urc+ase
d< Iser is one -+o actuall# usesMconsumers t+e $roduct.
B)$er deision proesses are t+e decision ma0ing $rocesses underta0en 1#
consumers in regard to a $otential mar0et transaction 1efore/ during/ and
after t+e $urc+ase of a $roduct or service.
)ore generall#/ decision ma0ing is t+e cognitive $rocess of selecting a
course of action from among multi$le alternatives. Common e3am$les
include s+o$$ing/ deciding -+at to eat. 7ecision ma0ing is said to 1e a
$s#c+ological construct. T+is means t+at alt+oug+ -e can never NseeN a
decision/ -e can infer from o1serva1le 1e+aviour t+at a decision +as 1een
made. T+erefore -e conclude t+at a $s#c+ological event t+at -e call
Ndecision ma0ingN +as occurred. It is a construction t+at im$utes
commitment to action. T+at is/ 1ased on o1serva1le actions/ -e assume t+at
$eo$le +ave made a commitment to effect t+e action.
In general t+ere are t+ree -a#s of anal#sing consumer 1u#ing decisions.
T+e# areC
Economic models > T+ese models are largel# 9uantitative and are
1ased on t+e assum$tions of rationalit# and near $erfect 0no-ledge.
T+e consumer is seen to ma3imi8e t+eir utilit#. See consumer t+eor#.
Game t+eor# can also 1e used in some circumstances.
Ps#c+ological models > T+ese models concentrate on $s#c+ological
and cognitive $rocesses suc+ as motivation and need reduction. T+e#
are 9ualitative rat+er t+an 9uantitative and 1uild on sociological
factors li0e cultural influences and famil# influences.
Consumer 1e+aviour models > T+ese are $ractical models used 1#
mar0eters. T+e# t#$icall# 1lend 1ot+ economic and $s#c+ological
models.
No1el laureate ?er1ert Simon sees economic decision ma0ing as a vain
attem$t to 1e rational. ?e claims ;in 1,"( and 1,%(< t+at if a com$lete
anal#sis is to 1e done/ a decision -ill 1e immensel# com$le3. ?e also sa#s
t+at $eo$lesO information $rocessing a1ilit# is ver# limited. T+e assum$tion
of a $erfectl# rational economic actor is unrealistic. Often -e are influenced
1# emotional and non>rational considerations. B+en -e tr# to 1e rational -e
are at 1est onl# $artiall# successful.
T6"ES OF AD/ERTISING
+edia
Pa#ing $eo$le to +old signs is one of t+e oldest forms of advertising/ as -it+
t+is ?uman directional $ictured a1ove
A 1us -it+ an advertisement for GAP in Singa$ore. &uses and ot+er ve+icles
are $o$ular mediums for advertisers.
A 7&AG Class 1.1 -it+ INICEF ads at Ingolstadt main rail-a# station
Commercial advertising media can include -all $aintings/ 1ill1oards/ street
furniture com$onents/ $rinted fl#ers and rac0 cards/ radio/ cinema and
television ads/ -e1 1anners/ mo1ile tele$+one screens/ s+o$$ing carts/ -e1
$o$u$s/ s0#-riting/ 1us sto$ 1enc+es/ +uman directional/ maga8ines/
ne-s$a$ers/ to-n criers/ sides of 1uses or air$lanes ;Nlogo:etsN</ ta3ica1
doors/ roof mounts and $assenger screens/ musical stage s+o-s/ su1-a#
$latforms and trains/ elastic 1ands on dis$osa1le dia$ers/ stic0ers on a$$les
in su$ermar0ets/ t+e o$ening section of streaming audio and video/ $osters/
and t+e 1ac0s of event tic0ets and su$ermar0et recei$ts. An# $lace an
NidentifiedN s$onsor $a#s to deliver t+eir message t+roug+ a medium is
advertising.
Anot+er -a# to measure advertising effectiveness is 0no-n as ad trac0ing.
T+is advertising researc+ met+odolog# measures s+ifts in target mar0et
$erce$tions a1out t+e 1rand and $roduct or service. T+ese s+ifts in
$erce$tion are $lotted against t+e consumers6 levels of e3$osure to t+e
com$an#6s advertisements and $romotions.T+e $ur$ose of Ad Trac0ing is
generall# to $rovide a measure of t+e com1ined effect of t+e media -eig+t
or s$ending level/ t+e effectiveness of t+e media 1u# or targeting/ and t+e
9ualit# of t+e advertising e3ecutions or creative. Ad Trac0ing Article
Cover! adver!isin(
Covert advertising is -+en a $roduct or 1rand is em1edded in entertainment
and media. For e3am$le/ in a film/ t+e main c+aracter can use an item or
ot+er of a definite 1rand/ as in t+e movie +inority ,eport/ -+ere Tom
CruiseOs c+aracter Po+n Anderton o-ns a $+one -it+ t+e .okia logo clearl#
-ritten in t+e to$ corner/ or +is -atc+ engraved -it+ t+e /ulgari logo.
Anot+er e3am$le of advertising in film is in 0, ,o!ot/ -+ere main c+aracter
$la#ed 1# Bill Smit+ mentions +is &onverse s+oes several times/ calling
t+em Nclassics/N 1ecause t+e film is set far in t+e future. 0, ,o!ot and
'pace!alls also s+o-case futuristic cars -it+ t+e Audi and +ercedes-/en"
logos clearl# dis$la#ed on t+e front of t+e ve+icles. Cadillac c+ose to
advertise in t+e movie T+e )atri3 5eloaded/ -+ic+ as a result contained
man# scenes in -+ic+ Cadillac cars -ere used. Similarl#/ $roduct $lacement
for Omega Batc+es/ Ford/ Laio/ &)B and Aston>)artin cars are featured
in recent Pames &ond films/ most nota1l#/ &asino ,oyale.
Television ommerials
T+e TL commercial is generall# considered t+e most effective mass>mar0et
advertising format/ as is reflected 1# t+e +ig+ $rices TL net-or0s c+arge for
commercial airtime during $o$ular TL events. T+e annual Su$er &o-l
foot1all game in t+e Inited States is 0no-n as t+e most $rominent
advertising event on television. T+e average cost of a single t+irt#>second
TL s$ot during t+is game +as reac+ed 42.( million ;as of 2..(<.
Lirtual advertisements ma# 1e inserted into regular television $rogramming
t+roug+ com$uter gra$+ics. It is t#$icall# inserted into ot+er-ise 1lan0
1ac0dro$sR2S or used to re$lace local 1ill1oards t+at are not relevant to t+e
remote 1roadcast audienceR!S. )ore controversiall#/ virtual 1ill1oards ma#
1e inserted into t+e 1ac0groundR"S -+ere none e3isting in real>life. Lirtual
$roduct $lacement is also $ossi1le
Ne:er media and adver!isin( approa&es
Increasingl#/ ot+er media are overta0ing television 1ecause of a s+ift
to-ards consumerOs usage of t+e internet as -ell as devices suc+ as TiLo.
Advertising on t+e Borld Bide Be1 is a recent $+enomenon. Prices of Be1>
1ased advertising s$ace are de$endent on t+e NrelevanceN of t+e surrounding
-e1 content and t+e traffic t+at t+e -e1site receives.
E>mail advertising is anot+er recent $+enomenon. Insolicited 1ul0 E>mail
advertising is 0no-n as Ns$amN.
Some com$anies +ave $ro$osed to $lace messages or cor$orate logos on t+e
side of 1ooster roc0ets and t+e International S$ace Station. Controvers#
e3ists on t+e effectiveness of su1liminal advertising ;see mind control</ and
t+e $ervasiveness of mass messages ;see $ro$aganda<.
In$aid advertising ;also called -ord of mout+ advertising</ can $rovide
good e3$osure at minimal cost. Personal recommendations ;N1ring a friendN/
Nsell itN</ s$reading 1u88/ or ac+ieving t+e feat of e9uating a 1rand -it+ a
common noun ;in t+e Inited States/ NTero3N U N$+otoco$ierN/ NGleene3N U
tissue/ NLaselineN U $etroleum :ell#/ N?ooverN U vacuum cleaner and N&and>
AidN U ad+esive 1andage.< >> t+ese are t+e $innacles of an# advertising
cam$aign. ?o-ever/ some com$anies o$$ose t+e use of t+eir 1rand name to
la1el an o1:ect. E9uating a 1rand -it+ a common noun also ris0s turning t+at
1rand into a generici8ed trademar0 > turning it into a generic term -+ic+
means t+at its legal $rotection as a trademar0 is lost.
S)S ;S+ort )essage Service< te3t messages +ave ta0en Euro$e 1# storm
and are 1rea0ing into t+e ISA. T+e addition of a te3t>1ac0 num1er is
gaining $revalence as a --- address of #esterda#. Ised as $art of #our
com$anies O+o- to contact usO t+ese can 1e ver# effective. T+ese can 1e a
;rented< 0e#-ord on a s+ort>code or #our o-n s#stem on a standard num1er
;li0e )o:io )essenger<. T+e 1enefit of S)S te3t messages is $eo$le can
res$ond -+ere t+e# are/ rig+t no-/ stuc0 in traffic/ sitting on t+e metro. T+e
use of S)S te3t messages can also 1e a great -a# to get a viral ;-ord>of>
mout+< cam$aign off t+e ground to 1uild #our o-n data1ase of $ros$ects see
Liral mar0eting. Interstitial advertisement is a form of advertisement -+ic+
ta0es $lace -+ile a $age loads.
From time to time/ T+e CB airs s+ort $rogramming 1rea0s called NContent
Bra$s/N to advertise one com$an#Os $roduct during an entire commercial
1rea0. T+e CB $ioneered Ncontent -ra$sN and some $roducts featured -ere
?er1al Essences/ Crest/ Guitar ?ero 2/ Cover Girl/ and recentl# To#ota.
+eas)rin( !&e impa! of mass adver!isin(
T+e most common met+od for measuring t+e im$act of mass media
advertising is t+e use of t+e rating $oint ;r$< or t+e more accurate target
rating $oint ;tr$<. T+ese t-o measures refer to t+e $ercentage of t+e universe
of t+e e3isting 1ase of audience mem1ers t+at can 1e reac+ed 1# t+e use of
eac+ media outlet in a $articular moment in time. T+e difference 1et-een t+e
t-o is t+at t+e rating $oint refers to t+e $ercentage to t+e entire universe
-+ile t+e target rating $oint refers to t+e $ercentage of a $articular segment
or target. T+is 1ecomes ver# useful -+en focusing advertising efforts on a
$articular grou$ of $eo$le.
AD/ERTISING BUSINESS
Ever# 1usiness entit#/ irres$ective of its si8e/ o-ners+i$ and 0in of
1usiness/ does ta0e t+e +el$ of advertising> t+e $us+ t+at ma0es t+ins
+a$$en.
Advertising is a function of mar0eting/ and $us+es t+e $roduct in t+e
mar0et for 1igger sales. Firms do +ave an advertising and $u1licit#
de$artment to manage t+e advertising function.
AD/ERTISING +ANAGE+ENT
Advertising is a management function. B+ile advertising is t+e event/
advertising )anagement is t+e -+ole $rocess > a function of mar0eting
starting from mar0et researc+ continuing t+roug+ Advertising leading to
actual sales or ac+ievement of o1:ective. &ut Advertising )anagement does
not sto$ +ere. It goes furt+er in regard to evaluation of t+e -+ole cost>
1enefits t+at -ere involved in t+e -+ole e3ercise.
T+is means t+at if t+ere is a $u1lic service ad -it+ an o1:ective to increase
domestic saving/ t+e evaluation -ould ta0e $lace in terms of t+e actual
increase in domestic savings as can 1e found from 1an0s and ot+er financial
institutions. If itOs a1out launc+ of a ne- $roduct/ t+en t+e evaluation -ould
1e in terms of 1enefits derived from t+e cost sun0 in t+e advertising
cam$aign.
Advertising management incor$orates various s$ecialised su1>functions li0e
media strateg#/ message strateg#/ media $lanning/ media 1u#ing etc.
B+ile advertising management is an inse$ara1le $art of t+e mar0eting
de$artment/ usuall#/ t+e mar0eting de$artment of an organisation is
concerned more -it+ mar0et researc+ and evaluation of results. All t+e
critical $rocesses of advertising management are generall# outsourced to
s$ecialised Advertising agencies. For e3am$le t+e media 1u#ing is done in
1ul0 1# t+ese ad agencies on -+ic+ t+e# receive discount M commission/ t+at
goes into t+eir earning. It is a ver# creative field as it involves designing t+e
strategies to 1e ado$ted for influencing t+e $u1lic ie media selection and
deciding on t+e as$ect to 1e advertised 1ased on t+e image of t+e com$an#
and t+e $resent mar0eting o1:ective.It t+en involves deciding on t+e ad
message to 1e communicated -+ic+ s+ould ca$ture t+e $u1lic attentionV
FUNCTION OF AD/ERTISING AGENC6
Ao)n! E5e)!ive of Dire!or; 1e$ E5e)!ive of A(en$
T+is is a 0e# role -it+in a Po1 1oard enter$rise= managing t+e relations+i$s
-it+ 5ecruitment Advertising agencies t+roug+out t+e IG. Successful
candidates -ill 1e e3$ected to dis$la# a +ig+ level of $rofessionalism/ 1e
comforta1le and confident in $resenting to 0e# agenc# contacts and 1e
e3$erienced in managing and develo$ing e3isting relations+i$s. T+e role
-ill involve travel and -ill suit an individual -+o is target driven/ self>
motivated and a1le to effectivel# manage t+eir time.
Role and Responsi#ili!ies
Q Set u$ and attend meetings IG -ide
Q 7evelo$ ne- contacts -it+in e3isting agencies
Q 7evelo$ relations+i$s -it+ ne- recruitment advertising agencies
Q Advise 5ecruitment Advertising Agencies on most suita1le advertising
o$tions for t+eir client6s cam$aigns and $rovide detailed $ro$osals to meet
t+eir needs.
Q Promote all $roducts and services offered 1# Po1 &oard Enter$rises to t+e
agencies
Q Give formal agenc# $resentations to contacts -it+in agencies.
Q Arrange and +ost cor$orate entertainment for agencies
Q Attend relevant industr# related functions
Q Ac+ieve mont+l# revenue targets
Q 7evelo$ $romotional activities to encourage agenc#6s to recommend our
services to clients.
Q Ensure relevant administrative duties are com$leted in a timel# manner.
Repor!in(
> 5e$ort in to eit+er a team leader or manager on dail#/ -ee0l# and mont+l#
1asis.
> Targets include )eetings &oo0ed/ Ne- Account 7evelo$ment/ Account
)anagement and 7evelo$ment/ Call Times
Inen!ives
> ! ?olida# Targets $er #ear 2 -it+in Euro$e to locations suc+ as
&arcelona/ Prague/ Lalencia or Fis1on and 1 1ig annual tri$ to )iami or Fas
Legas for four da#sV
> Car Targets from LB Polo6s/ Golf Gti6sM)ini Coo$erS to &)B
Cou$eMPorsc+e &o3ster6s
> Batc+ Targets for W(%. to-ards t+e -atc+ of #our c+oice
> DFunc+ Clu1E E3ceed #our target and s$end Frida# afternoon in a to$
Fondon restaurant
> S+irt and Tie Targets for ac+ieving #our mont+l# revenue
> Ad +oc incentives suc+ as t+e DCas+ 7as+E
Trainin(
> , mont+s induction $rogramme covering ever# as$ect of sales
> 1 -ee0 intensive induction -it+ S! Grou$ Training Function
> 7es0 side coac+ing from internal coac+ and team leaderM)anager
> Outsourced training ever# X
> 7evelo$ment $rogrammes for team leaders and a route to management
"a*a(e
&asic Y &onus ;t1c de$endent on $revious e3$erience<
W!%G OTE
Re9)iremen!s
> Graduate level education 2C1 ;2C2 acce$ted<
> A>levels 3 ! A C
> GCSEs 3 , A C
> ?ig+ level communication s0ills -ritten and s$o0en
> Com$uter literate/ -it+ strong Internet s0ills
> Gno-ledge a1out IT
> E3cellent tele$+one manner
> Professional/ confident and $ro>active
ORGANISATION OF A T6"ICAL AD/ERTISING
DE"ART+ENT
AD/ERTISING BUDGET
Adver!isin( #)d(e!
B+en #ou use an# form of mar0eting to adver!ise $o)r #)siness #ou are
restricted -it+ #our o$tions according to #our com$an# advertising 1udget.
T+ere are so man# avenues t+at #ou +ave to do e3tensive researc+ to gain
ma3 $otential out of #our advertising 1udget. @ou +ave t+e most $o-erful
form of advertising -+ic+ is television advertising. Advertise #our 1usiness
in maga8ines for great 1randing and reac+ a large audience/ advertise #our
1usiness -it+ mail order and leaflets to assist in cornering t+e mar0et. B+en
advertising #our 1usiness -it+ internet mar0eting strategies #ou can save on
#our advertising 1udget and #ou can run #our advertising 1udget into arrears
if starting u$ #our internet mar0eting -it+ t+e -rong advertising com$an#.
Be1lin3 -as formed 1# $rofessionals -it+in t+e advertising industr# and
feel t+e# 0no- +o- to save costing for a com$an# advertising 1udget -+en
#ou advertise #our 1usiness online/ t+roug+ t+e effective in!erne!
adver!isin( sol)!ion > com$an# -e1site design searc+ engine o$timi8ation
in t+e IG. &elo- are a fe- ti$s for #our com$an# adver!isin( #)d(e! from
Be1lin3/ t+e internet mar0eting com$an# t+at relies on #our success -+en
#ou advertise #our 1usiness online to 1e successful t+emselves.
Adver!isin( B)d(e! - Television
To +ave t+e fle3i1ilit# -it+ #our com$an# advertising 1udget and t+e
$rivilege to advertise #our 1usiness on t+e television is t+e ultimate treat for
#our com$an#. @ou gain ma3imum $otential -+en #ou advertise #our
1usiness 1ut #ou sure do +ave to $a# for it. )ost com$anies out t+ere 0no-
t+at advertising on television is a massive gam1le on #our advertising
1udget -+en #ou advertise #our 1usiness no matter -+at industr# #ou are in.
T+e travel/ loans and insurance industries seem to 1e t+e main ones
receiving most of t+e 1enefits. Television advertising +as to 1e t+e num1er
one recommendation if t+e advertising 1udget fits -+en #ou adver!ise $o)r
#)siness.
Adver!isin( B)d(e! - Ne:spapers
@ou +ave to at least +ave one attem$t to advertise #our 1usiness in t+e
ne-s$a$ers. Pust as -it+ maga8ine advertising/ t+e 1eaut# is t+at a small
advertisement is afforda1le to #our average com$an# 1udget as #ou are a1le
to trial a ne-s$a$er advertisement out 1efore #ou commit to long term deals.
T+e amount s$ent to advertise #our 1usiness in t+e ne-s$a$er could still 1e
costl# on #our adver!isin( #)d(e! com$ared to t+e value of internet
mar0eting if carried out 1# t+e rig+t advertising com$an#.
Adver!isin( B)d(e! - +a(a<ines
In maga8ines it does de$end on si8e. @ou need large maga8ine advertising
s$aces in order to advertise #our 1usiness to 1e noticed among all t+e ot+er
colourful advertisements all over t+e $age. T+is is anot+er effective
advertising strateg# to corner t+e mar0et 1ut -ill cost t+e com$an#
advertising 1udget dearl# if #ou are a ne- 1usiness and t+e maga8ine
advertisement +as no $ositive feed1ac0. If #ou can afford to adver!ise $o)r
#)siness in ma(a<ines #ou gain great 1randing and if successful t+e
re-ards can 1e astronomical. @ou -ill 1e gam1ling -it+ #our adver!isin(
#)d(e! if #ou are a ne- com$an# and are restricted -it+ #our s$end. If #ou
are a ne- com$an# t+e num1er one -a# to advertise #our 1usiness is
t+roug+ searc+ engine o$timisation. If #ou carr# out SEO tec+ni9ues
correctl# #ou -ill +ave ma3imum savings on #our advertising 1udget.
Adver!isin( B)d(e! - +ail Order
Advertising #our 1usiness via mail order is also an effective mar0eting
solution. @ou get com$an# 1randing and ma0e contact -it+ $otential
customers t+at #ou -ould never +ave e3$ected. If t+e com$an# $roviding
#ou -it+ a data1ase can $rovide 9ualit# data #ou are going to +ave a good
c+ance of sufficient returns to at least cover #our costs of t+e -+ole mail
order o$eration. A lot of cas+ from t+e advertising 1udget can 1e s$ent on
design and all t+e ot+er as$ects of $re$aration for t+e mail s+ot 1ut it is
mone# -ell s$ent on 1randing and cornering t+e mar0et $lace in #our sector.
5emem1er it totall# de$ends on t+e 9ualit# of t+e leads/ and if t+is is t+e
met+od #ou c+oose to advertise #our 1usiness it ma# +ave a negative affect
on #our advertising 1udget.
Adver!isin( B)d(e! - Banners
An# internet mar0eting com$an# is a-are t+at 1anners are mainl# 1randing
tools on t+e internet. Banner adver!isin( used to 1e over rated -it+ great
e3$ectations on +ea$s of traffic coming t+roug+ to #our com$an# -e1site.
No- internet mar0eting com$anies realise t+emselves t+at $romising
customers too muc+ on deliver# can 1ring a lot of +assle a1out t+e
advertising $roduct s+ould t+e customer +ave +is advertising 1udget 1leed
dr#. &anner advertising does +ave great 1randing effect and end users on
average -ill clic0 on t+e 1anner at least once ever# t-ent# vie-ings. If #ou
can arrange a lo- $rice -it+ ma3imum e3$osure for at least a t-o 0e#-ord
online mar0eting $ac0age/ t+e com$an# advertising 1udget -ill not 1e
dented. A recommendation for 1anner advertising/ is to +ave te3t t+at is
targeting a s$ecific $roduct or service and let it flas+ over to more te3t
sending anot+er message. Tr# and +ave t+e 1anner loo0 as muc+ t+e same as
t+e rest of t+e listings on t+e searc+ engine $ages.
Adver!isin( B)d(e! - Cos! "er Cli*
A num1er one reommenda!ion for $o) adver!isin( #)d(e! is cost $er
clic0 -it+ Google. T+e Google Ad-ords are more effective t+an most on t+e
internet. @ou are on t+e first $age of all t+e 0e#-ords of #our c+oice/ on t+e
largest searc+ engine on t+e internet. It is t+e si8e of t+e searc+ engine and
t+e amount of traffic t+e searc+ engine Google delivers t+at dents #our
advertising 1udget -it+ t+is form of internet mar0eting. 7ue to t+e large
amounts of traffic delivered and not muc+ conversion on actual 1u#ers from
#our com$an# -e1site t+is a$$lies $ressure to t+e advertising 1udget. Bit+
our e3$erience in t+e online mar0eting industr# Google still +as 1etter
9ualit# traffic t+an most ot+er searc+ engines carr#ing out online mar0eting
solutions in t+e IG.
Adver!isin( B)d(e! - Goo(le SEO
@our advertising 1udget is com$limented s+ould #our com$an# -e1site
+ave a s)essf)l Goo(le SEO ampai(n. If #ou go -it+ t+e rig+t
advertising com$an# t+at $rovides #ou -it+ correct -e1site design
tec+ni9ues for #our -e1site $romotion t+en #ou -ill 1e re-arded greatl# on
#our advertising 1udget. @ou must find a lo- cost or $a# on $erformance
onl#/ -e1site SEO $ac0ages to +ave a $ressure free e3$erience -+ile
carr#ing out #our mar*e!in( online.
Adver!isin( B)d(e! - -e#lin5
After man# #ears -it+in t+e field of internet mar0eting Be1lin3 realise -+at
t+e customers -ant and need to 1e a1le to afford t+eir online advertising and
save on t+eir ompan$ adver!isin( #)d(e!. Be1lin3 are an internet
mar0eting com$an# t+at +ave develo$ed t+e ultimate online media solution
for #ou to advertise #our 1usiness. Be allo- #ou to c+oose +o- #ou -is+ to
target #our audience -it+ as man# 0e#-ords as #ou -is+ to advertise.
+EDIA SELECTION, "LANNING, SC.EDULING =
STRATEG6
I. T+e p)rpose of media plannin( is to conceive/ anal#8e/ and select
c+annels of communication t+at -ill direct advertising messages to
t+e rig+t $eo$le in t+e rig+t $lace at t+e rig+t time.
A. )edia $lanning involves man# decisionsC
B+ere s+ould #ou advertiseH
B+ic+ media ve+icles s+ould 1e usedH
B+en during t+e #ear s+ould t+e advertising 1e concentratedH
?o- often s+ould -e run t+e advertisingH
B+at are t+e o$$ortunities for integrating mediaH
&. As t+e com$le3it# of t+e field increases/ media decisions
1ecome more critical and clients more demanding. Advertisers
-ant agencies to 1e more t+an efficient. T+e# -ant creative and
-ell>negotiated 1u#s.
C. Inreasin( media op!ions
Toda#/ t+ere are more media to c+oose from/ and eac+ offers more
c+oices. TL is no- fragmented into net-or0/ s#ndicated/ and local
television/ as -ell as net-or0 and local ca1le.
National maga8ines $u1lis+ for $articular regions or demogra$+ic
grou$s.
Nontraditional media ;videota$es/ movie advertising/ com$uter on>
line services/ electronic 0ios0s/ and even s+o$$ing carts< e3$and t+e
menu of c+oices.
S$eciali8ed communications ;direct mar0eting/ sales $romotion/
$u1lic relations activities/ and $ersonal selling< are N1elo->t+e>lineN
activities t+at re$resent t+e fastest gro-ing segments at some of t+e
large agenc# +olding com$anies.
T+e Nmedia menuN needs to include ever#t+ing t+at carries a message
to andMor from customers and ot+er sta0e+olders. T+e $roliferation of
toll>free $+one num1ers/ fa3es/ t+e Internet/ and com$an# Be1 sites/
ma0e customers feed1ac0 easier and more immediate.
7. Inreasin( fra(men!a!ion of !&e a)diene > consumers are
selective in c+oosing -+at $articular articles to read/ -+ic+
ca1le or net-or0 TL s+o-s t+e# -atc+/ and -+at radio
$rograms t+e# listen to.
E. Inreasin( os!s > t+e os! of e5posin( >,??? people ;C"+>
cost $er t+ousand< to eac+ of t+e ma:or media rose faster t+an
inflation.
F. Inreasin( omple5i!$ in t+e media 1u#ing > No- media 1u#s
are more com$le3 t+an ever. )edia com$anies $ut toget+er
massive multimedia $ac0ages -+ic+ t+e# sell as Nval)e added
pro(ramsN designed to add value to traditional media
$lacements. )edia $lanners face gro-ing $ressure to learn +o-
to evaluate and e3ecute t+ese com$le3 deals. NPartners+i$sN add
to com$le3it#. T+e trend to-ard integrating mar0eting
communications and relations+i$ mar0eting is creating a ne-
1reed of media $lanner > #ounger/ com$uter literate/ and
sc+ooled in mar0eting disci$lines 1e#ond traditional media. A
good media s$ecialist must 1e an Nadvertising generalist.N
G. Inreasin( ompe!i!ion > Inde$endent media> 1u#ing services
+ave gro-n dramaticall# in t+e last decade/ attracting some of
t+e 1est and 1rig+test $eo$le to com$ete -it+ agencies.
II. T&e role of media in !&e mar*e!in( frame:or*
+ar*e!in( O#@e!ives and S!ra!e($
7etermining mar0eting o1:ectives for a 1rand or service and develo$ing
strategies -+ic+ ma$ out a $lan for attaining t+ose o1:ectives is derived
from t+e mar0eting situation anal#sis. )ar0eting o1:ectives ma# focus on
solving a $ro1lem or sei8ing an o$$ortunit#.
)ar0eting strategies la# out t+e ste$s for meeting t+ese o1:ectives 1#
1lending t+e four elements of t+e mar0eting mi3. Advertising is :ust one
of t+e man# strategic tools a com$an# ma# use to ac+ieve its mar0eting
o1:ectives.
T+e o1:ectives and strategies of an advertising $lan unfold from t+e
mar0eting $lan. To ac+ieve t+ese o1:ectives/ com$anies devise
advertising strategies t+at em$lo# t+e elemen!s of !&e rea!ive mi5C t+e
prod)! onep!/ !ar(e! a)diene/ adver!isin( messa(e/ and
omm)nia!ion media. T+e media de$artment ensures t+at t+e ad
message gets to t+e correct target audience effectivel#.
T&e +edia-"lannin( Frame:or*
)edia $lanning is done earl# 1ecause media are +o- t+e customers ma0e
contact -it+ t+e $roduct.
7evelo$ing a media $lan involves t+e same $rocess as mar0eting or
advertising $lanning.
A. 5evie- mar0eting and ad o1:ectives.
&. Set measura1le o1:ectives t+at can 1e ac+ieved 1# t+e media.
C. 7etermine a strateg# to ac+ieve t+e o1:ectives.
7. Set do-n tactical details.
III. +edia o#@e!ives translate t+e advertising strateg# into goals t+at
media can accom$lis+. )edia o1:ectives +ave t-o ma:or com$onentsC
A. A)diene o#@e!ives define t+e s$ecific t#$es of $eo$le t+e
advertiser -ants to reac+.
To$>do-n $lanners use (eodemo(rap&i classifications to define
t+eir target audience.
&. T+e target audience ma# not 1e actual users of t+e $roduct.
Advertisers ma# +ave to advertise to t+e trade ;as -ell to t+e
customers< to convince retailers t+eir media 1u#s -ill result in
more sales.
C. Planners rel# largel# on secondar# researc+ ;Ar1itron/ Nielson/
)eadiamar0<.
Planners select media ve+icles/ $articular maga8ines/ or 1roadcast
$rograms according to +o- -ell t+e# NdeliverN or e3$ose t+e message
to t+e desired target audience.
Advertisers using t+e in!e(ra!ed mar*e!in( omm)nia!ions ;I+C<
$lanning model segment t+eir target audiences according to 1rand>
$urc+asing 1e+avior and t+en ran0 t+em 1# $rofit to t+e 1rand.
Communication o1:ectives are stated in terms of reinforcing or
modif#ing customer $urc+asing 1e+avior or creating a $erce$tual
c+ange a1out t+e 1rand.
7. +essa(e-dis!ri#)!ion o#@e!ives define -+ere/ -+en/ and +o-
often advertising s+ould a$$ear. To ans-er t+ese 9uestions/ a
media $lanner must understand t+e follo-ingC
Audience si8e and message -eig+t
A)diene si<e > sim$l# t+e num1er of $eo$le in t+e mediumOs
audience. In $rint media/ for e3am$le/ Audit &ureau of Circulation
actuall# counts and verifies t+e num1er of su1scri1ers ;circulation<
and multi$lies 1# t+e num1er of readers per op$ ;R"C< to
determine total audience.
+essa(e :ei(&! > t+e total si8e of t+e audience for a set of ads or an
entire cam$aign. )essage -eig+t can 1e e3$ressed asC
Adver!isin( impression is $ossi1le e3$osure of t+e advertising
message to one audience mem1er/ sometimes called an
oppor!)ni!$ !o see ;OTS<.
Gross Impressions is t+e total num1er of $otential e3$osures
;audience si8e 1# t+e num1er of times t+e ad message is used
during a $eriod<.
&ecause gross im$ressions are often e3$ressed in millions and
are a-0-ard to +andle/ media $lanners $refer to use
$ercentages > or a rating/ for e3am$le/ a ra!in( of TL
+ouse+olds is t+e $ercentage of +omes e3$osed to an ad
medium. A rating of 2.U2.2 of t+e +ouse+olds -it+ TL sets=
!elevisions &o)se&olds/ or ;T/..<.
Gross Ra!in( "oin!s ;GR"s< > t+e total -eig+t of a s$ecific
media sc+edule/ com$uted 1# multi$l#ing t+e reac+/ e3$ressed
as a $ercentage of t+e $o$ulation/ 1# t+e average fre9uenc#.
Audience accumulation and reac+ > Rea& refers to t+e num1er of
different $eo$le or +ouse+olds e3$osed at least once to an ad or
cam$aign during a given $eriod of time/ usuall# four -ee0s. T+e term
Neffe!ive rea&N descri1es t+e 9ualit# of e3$osure. It measures t+e
num1er or $ercentage of t+e audience -+o receive enoug+ e3$osures
for t+e message to +ave t+e desired effect. A)m)la!in( rea& is
done t-o -a#sC t+e same media over time or com1ining media
ve+icles.
E5pos)re fre9)en$ > fre9uenc# refers to t+e num1er of times t+e
same $erson or +ouse+old is e3$osed to a message in a s$ecified time
s$an. It measures t+e intensit# of a media sc+edule/ 1ased on re$eated
e3$osures to t+e message.
Repe!i!ion is t+e 0e# to memor#. Effe!ive fre9)en$ measures t+e
average num1er of times a $erson must see or +ear a message 1efore it
1ecomes effective.
Avera(e fre9)en$ U Total E3$osure Z Audience reac+/ and 5eac+ 3
Fre9uenc# U G5Ps.
Conventional -isdom considers effective fre9uenc# to 1e t+ree or
more oppor!)ni!ies-!o-see ;OTS< over a four>-ee0 $eriod/ 1ut no
magic num1er -or0s for ever# commercial and ever# $roduct.
Con!in)i!$ > refers to t+e duration of an advertising message or
cam$aign over a given $eriod of time. B+ile fre9uenc# is im$ortant to
NcreateN memor#/ continuit# is im$ortant to NsustainN it.
IL. Good media $lanning is 1ot+ an art and a science. T+e o1:ectives of
reac+/ fre9uenc#/ and continuit# +ave inverse relations+i$s ;22..G<
to eac+ ot+er. T+e media $lanner -it+ a limited 1udget must decide
-+ic+ is most critical.
Effe!ive rea& descri1es t+e 9ualit# of t+e e3$osure/ measuring t+e
num1er or $ercentage of t+e audience -+o receive enoug+ e3$osures
to trul# receive t+e message. Some researc+ers maintain t+ree OTSs
over a four>-ee0 $eriod are necessar#.
Effe!ive fre9)en$ ist+e average num1er of times a $erson must see
or +ear a message 1efore it 1ecomes effective ;1et-een a minimum
level t+at ac+ieves a-areness and a ma3imum level t+at 1ecomes
overe3$osure t+at leads to N:earo)!N and irritates customers<.
A controvers# e3ists over NlearningN versus NremindingN and t+at
conventional media $lanning is 1uilt on Nmedia ve+icle e3$osureN ;t+e
num1er of $eo$le in a mediumOs audience< -+en it s+ould relate to
Nadvertising message e3$osure.N Cannon and 5iordan -ould re$lace
Neffective fre9uenc#N -it+ Nop!imal fre9)en$.N
Advertising res$onse curve ;2,..G<indicates res$onses to
advertising in relation to fre9uenc#. Studies s+o- t+at incremental
res$onse to advertising actuall# diminis+es > rat+er t+an 1uilds > -it+
re$eated e3$osures.
?istoricall#/ fre9uenc# +as 1een most im$ortant o1:ective ;assumes S
s+a$ed res$onse curve<. Cannon and 5iordanOs anal#sis indicates
res$onse curves are actuall# conve3 and t+e first e3$osure is t+e most
effective/ follo-ed 1# diminis+ing returns. If t+is is accurate/
advertisers s+ould s-itc+ from ma3imi8ing fre9uenc# to ma3imi8ing
target mar0et reac+/ adding less $rofita1le second e3$osures onl# as
1udget $ermits.
Reen$ plannin( > 1ased on t+e 1elief t+at most advertising -or0s
1# influencing t+e 1rand c+oice of consumers -+o are actuall# read#
to 1u#. T+is suggests continuit#.
L. Advertisers develo$ media strategies 1# 1lending t+e elements of t+e
media mi3.
A. )edia $lanners use t+e Five +s ;A+s< of t+e media mi3
;mar*e!s, mone$, media, me&anis, and me!&odolo($< to
develo$ an effective media strateg#.
)ar0ets > t+e various targets of a media $lanC trade and consumer
audiences= glo1al/ national/ or regional audiences= or certain et+nic or
socioeconomic grou$s.
)one# > +o- muc+ mone# to 1udget and -+ere to allocate funds.
)edia > all communications ve+icles availa1le to a mar0eter
)ec+anics > t+e com$le3 mec+anics of advertising and nontraditional
media.
)et+odolog# > t+e overall strateg# of selecting and sc+eduling media
ve+icles to ac+ieve t+e desired reac+/ fre9uenc# and continuit#
o1:ectives.
&. Several factors over -+ic+ t+e media $lanner +as little or no
control influence media decisions. T+ese includeC
T+e location and ma0eu$ of t+e target audience strongl# influences
t+e 1readt+ of t+e media $lan
In domestic mar0ets/ a media $lanner normall# limits advertising to
areas -+ere t+e $roduct is availa1le. 7ifferent media are re9uired for
local/ regional/ and national mar0ets.
&ecause of t+e media variations from countr# to countr#/ most
international and glo1al advertisers entrust national media $lans to in>
countr# media s$ecialists/ rat+er t+an ris0 fault# centrali8ed media
$lanning. )ost advertisers develo$ a series of national $lans first/
com1ining t+em for t+eir international $lan later. In some Euro$ean
countries and in Asia/ media researc+ and $lanning are $ro1a1l# more
so$+isticated t+an in t+e Inited States. S$illover media $ost a t+reat
to multinational advertisers 1ecause t+e audience is e3$osed to
multi$le cam$aigns.
T+e mar0et and mone# elements of t+e media mi3 also
de$end on t+e sales $otential of eac+ area.
T+e #rand developmen! inde5 ;BDI< > indicates t+e sales
$otential of a $articular 1rand in a s$ecific mar0et area.
FormulaC N&7IN e9uals N$ercent of 1randOs total I.S. sales in
t+e areaN divided 1# N$ercent of total I.S. $o$ulation in t+e
areaN multi$lied 1# 1...
T+e a!e(or$ developmen! inde5 ;CDI< > indicates t+e sales
$otential of an entire $roduct categor#. FormulaC NC7IN e9uals
N$ercent of t+e $roduct categor#Os total I.S. sales in t+e areaN
divided 1# N$ercent of total I.S. $o$ulation in t+e areaN
multi$lied 1# 1...
T+e com1ination of &7I and C7I ;"1..G< can +el$ t+e media
$lanner determine a strateg# for t+e mar0et.
C. Advertisers al-a#s consider -+at com$etitors are doing. T+is
-ill affect t+e media/ mec+anics/ and met+odolog# elements of
t+e media mi3. It sometimes ma0es sense to use media similar
to t+e com$etitionOs if t+e target audiences are t+e same or if
com$etitors are not using t+eir media effectivel#. )edia $lanner
s+ould anal#8e t+e com$an#Os Ns+are of voiceN in t+e mar0et
$lace.
7. Ever# countr# +as communications media/ 1ut t+e# are not
al-a#s availa1le for commercial use > es$eciall# radio and
television > and coverage ma# 1e limited. Fo-er literac# rates
and education levels in some countries restrict t+e coverage of
$rint media. B+ere income levels are lo-/ TL o-ners+i$ is also
lo- and motion $icture attendance is usuall# +ig+. T+ese
factors tend to segment mar0ets 1# media coverage.
E. An im$ortant influence on t+e media element of t+e mi3 is
+o- -ell a medium -or0s -it+ ;"*..G< t+e s!$le or mood of
!&e par!i)lar messa(e. Eac+ circumstance affects t+e media
selection as -ell as t+e met+odolog# of t+e media mi3.
Some media lend t+emselves 1etter to certain t#$es of
messages or creative a$$roac+es.
T+e 1est media strateg# de$ends on t+e t#$e of message >
dogmatic/ emotional/ rational/ com$le3/ etc.
F. +essa(e si<e, len(!&, and posi!ion onsidera!ions > t+e
$articular c+aracteristics of different media/ over -+ic+ t+e
media $lanner +as no control/ affect t+e Nmec+anicsN element of
t+e media mi3.
Some advertising re9uires more time and s$ace to
e3$lain.
Com$etitive activit# ma# dictate more message units.
Position an ad is anot+er consideration.
G. B)$er p)r&ase pa!!erns > affect ever# element of t+e media
mi3. Products -it+ s+ort $urc+ase c#cles ;convenience goods<
re9uire more constant levels of advertising t+an $roducts
$urc+ased infre9uentl# ;furniture<.
?. A :ri!!en ra!ionale for t+e media s!ra!e($ is an integral $art
of an# media $lan.
Generall#/ t+e strateg# statement starts -it+ a 1rief definition of target
audiences ;t+e mar0et element< and t+e $riorities for -eig+ting t+em.
T+e statement s+ould e3$lain t+e nature of t+e message and indicate
-+ic+ media t#$es -ill 1e used and -+# ;t+e media element<.
It outlines s$ecific reac+ and fre9uenc# goals and +o- t+e# are to 1e
ac+ieved ;met+odolog# element<.
It $rovides a 1udget for eac+ medium ;t+e mone# element< including
t+e cost of $roduction and an# collateral materials.
Finall#/ it states t+e intended si8e of message units/ an# $osition or
timing considerations ;t+e mec+anics element</ and t+e effect of
1udget restrictions.
LI. Once t+e general media strateg# is determined/ t+e media $lanner can
select and sc+edule $articular media ve+icles.
A. In evaluating s$ecific media ve+icles/ t+e $lanner considers
several factorsC
Overall ampai(n o#@e!ives and s!ra!e($
T+e media $lannerOs first :o1 is to revie- t+e nature of t+e
$roduct or service/ t+e intended o1:ectives and strategies/ and
t+e $rimar# and secondar# target mar0ets and audiences.
T+e $lanner identifies t+e c+aracteristics most relevant to t+e
acce$tance/ $urc+ase/ and use of t+e $roduct. Includes
anal#8ing content and editorial $olic# of media ve+icle.
T+e $lanner t+en matc+es t+ese data to t+e c+aracteristics of t+e
audience of t+e s$ecific media ve+icles under consideration.
Advertising is most effective -+en it $ositions a $roduct as $art
of t+e solution t+e consumer see0s.
C+aracteristics of media a)dienes
A)diene > is t+e total num1er of $eo$le or +ouse+olds e3$osed to a
medium. T+e $lanner needs to 0no- +o- closel# t+e mediumOs
audience matc+es t+e $rofile of t+e target mar0et and +o- interested
suc+ $eo$le are in t+e $u1lication or $rogram.
T+e content of a medium usuall# determines t+e t#$e of $eo$le in t+e
audience. Eac+ t#$e or $rogramming attracts a different audience.
E5pos)re, a!!en!ion, and mo!iva!ional val)e of media
ve&iles
E5pos)re /al)e > to understand t+e conce$t of e3$osure value/
t+in0 of +o- man# $eo$le an ad Nsees/N rat+er t+an t+e ot+er
-a# around. Five factors t+at affect t+e $ro1a1ilit# of ad
e3$osure areC
T+e senses used to $erceive messages from t+e medium.
?o- muc+ and -+at 0ind of attention t+e medium re9uires.
B+et+er t+e medium is an information source or a diversion.
B+et+er t+e medium or $rogram aims at general or s$eciali8ed
audience.
T+e $lacement of an ad in t+e ve+icle ;-it+in or 1et-een 1roadcast
$rograms= ad:acent to editorial material or ot+er $rint ads.<
LII. A!!en!ion /al)e > concerns t+e advertising message and co$#/ as -ell
as t+e medium. Si3 factors are 0no-n to increase attention valueC
Audience involvement -it+ editorial content or $rogram material.
S$eciali8ation of audience interest or identification.
Num1er of com$etitive advertisers ;t+e fe-er t+e 1etter<.
Audience familiarit# -it+ t+e advertiserOs cam$aign.
[ualit# of advertising re$roduction.
Timeliness of advertising e3$osure.
A. +o!iva!ion val)e > )edia $lanners assign numerical ratings to
t+eir :udgments of a mediumOs strengt+ and -ea0nesses/ and
t+en= using a -eig+ting formula/ add t+em u$.
Cos! effiien$ of media ve&iles
Cos! per !&o)sand ;C"+< -+ic+ is 1ased on t+e mediumOs total
audience ;ad cost divided 1# t+e num1er of t+ousands of $eo$le in t+e
audience<.
T+e media $lanner must evaluate eac+ mediumOs advantages and
disadvantages/ using all t+e criteria to determineC
?o- muc+ of eac+ mediumOs audience matc+es t+e target audience.
?o- eac+ medium satisfies t+e cam$aignOs o1:ectives and strateg#.
?o- -ell eac+ medium offers attention/ e3$osure/ and motivation.
T+e media $lanner ma# -ant to calculate t+e cost $er $oint ;CCP< of
different 1roadcast $rograms. T+is is done t+e same -a# as cost $er
t+ousand/ e3ce$t #ou divide t+e cost 1# t+e rating $oints instead of t+e
gross im$ressions.
&. T+e main $ur$ose of media advertising is to communicate -it+
customers more efficientl# t+an t+roug+ $ersonal selling.
In some undevelo$ed countries/ itOs c+ea$er to do $ersonal selling
;e.g./ send $eo$le out -it+ 1as0ets of goods<.
T+e cost is $ro+i1itive in t+e Inited States.
C. A com1ination of media is called a mi5ed media approa&.
5easons for using a mi3ed media are toC
5eac+ $eo$le unavaila1le t+roug+ onl# one medium
Provide re$eat e3$osure in a less>e3$ensive secondar# medium after
attaining o$timum reac+ in t+e first.
Ise t+e intrinsic value of an additional medium to e3tend creative
effectiveness of t+e ad cam$aign.
7eliver cou$ons in $rint media -+en t+e $rimar# ve+icle is 1roadcast.
Produce s#nerg#/ -+ere t+e total effect a$$ears to 1e greater t+an t+e
sum of t+e $arts.
7. After selecting t+e a$$ro$riate media ve+icles/ t+e media
$lanner decides +o- man# s$ace or time units of eac+ ve+icle
to 1u# and sc+edules t+em for release over a $eriod of time
-+en consumers are most a$t to 1u#.
Con!in)o)s/ fli(&!in(/ and p)lsin( sc+edules
Continuous > advertising runs steadil# and varies little over t+e
cam$aign $eriod.
Flig+ting > alternates $eriods of advertising $eriods of no advertising.
Pulsing > mi3es continuous and flig+ting strategies 1# using a lo-
level of advertising all #ear com1ined -it+ +eav# advertising during
$ea0 selling $eriods.
Addi!ional s&ed)lin( pa!!erns
For +ig+>tic0et items t+at re9uire careful consideration/ 1ursting >
running t+e same commercial ever# +alf +our on t+e same net-or0 in
$rime time > can 1e effective.
A variation is road 1loc0ing/ 1u#ing air time on all t+ree net-or0s
simultaneousl#.
o For slim ad 1udgets > #lin*in( is used.
o Once t+e sc+eduling criteria are determined/ t+e media $lanner creates
a flo-c+art of t+e $lan T+e flo-c+art is a gra$+ic $resentation of t+e
total cam$aign.
o Com$uters $erform t+e tedious num1er crunc+ing needed to com$ute
G5Ps/ CP)s/ reac+/ fre9uenc#/ and t+e li0e. T+e# also save time and
mone#.
AD/ERTISING ART , T.E LA6OUT OF
AD/ERTISE+ENT
"ropor!ional ()ideline;
1. Ill)s!ra!ion
'%
2

2. .eadline
1.
2

!. Cop$
2.
2

". Lo(o
%
2


1..
of s$ace allocation ;2.2Y -+ite
2
s$ace<
Ill)s!ra!ion
In most ads/ t+e illustration is used to attract attention. Farge/ single
illustrations attracted t+e most attention ;advertising recall studies 1#
Starc+<. T+oug+ t+e +eadline ma# 1e t+e Nsto$$erN/ t+e illustration is t+e
most critical element in t+e adOs success. It can also visuall# communicate
$roduct 1enefits and conce$t/ and lead t+e reader into t+e +eadline and co$#.
.eadline
T+e +eadline is used to attract attention/ arouse interest/ and ma0e t+e ad
more attractive and reada1le. ?o-ever/ it s+ould not 1e over 1. -ords and
more t+an 1% 2 of t+e adOs total area.
Cop$
St#le of t#$eface used in t+e +eadline/ su1+ead and co$# -ill im$act t+e
mood and reada1ilit# of t+e ad. )i3ed t#$e s+ould 1e eit+er ver# similar or
ver# different. )i3ing more t+an t-o ;or t+ree at most< different t#$efaces
ma0es an ad 1us# and confusing.
Lo(o
&ecause -e read left to rig+t and to$ to 1ottom/ t+e logo or com$an#
signature can 1e strategicall# $laced in t+e lo-er rig+t +and corner of an ad.
Bit+ t+is $osition/ t+e logo is t+e last element -e see and most li0el#
remem1er.
Dire! !&e vie:erBs e$e
from t+e $ageOs to$/ do-n t+roug+ t+e center and end at t+e $ageOs 1ottom.
T+e e#e sees t+e illustration first/ t+en -e read do-n from t+ere ;7avid
Ogilv#<. ?eadlines located 1elo- t+e illustration $ull 1.2 more readers
;researc+ 1# Simmons<.
Emp&asis
T+e o$tical center of an ad is in t+e center and t-o>t+irds u$ from t+e
1ottom. T+is s+ould 1e t+e adOs focal $oint.
"ropor!ional )se of spae
T+e $ro$ortional use of s$ace in an ad is de$endent u$on t+e $roduct and
mar0et target. Product ads t+at tr# to communicate an image ;$erfume/
:e-elr#/ etc.< -ill +ave a greater $ro$ortion of illustration and little co$#.
Conversel#/ an ad for a tec+nical $roduct -ill +ave more co$#.
-&i!e Spae
At least 2. 2 of an ad s+ould 1e 1lan0 ;-+ite s$ace<. Am$le -+ite s$ace
+el$s gain attention/ create contrast/ and unif# t+e ad. According to Al1ert
&oo0s/ -+ite s$ace is $ro1a1l# t+e most underestimated element in
advertisements.
Bleed and #orders
Bleed
A $age -it+out a 1order is called a 1leed 1ecause t+e in0 1leeds t+roug+ t+e
surrounding -+ite 1order into t+e trim s$ace. An o1vious 1enefit of t+is
tec+ni9ue is t+at t+e ad itself 1ecomes larger. Alt+oug+ most $u1lis+ers
c+arge e3tra for 1leeds/ t+is cost is often :ustified 1# t+e ads e3tra im$act. A
1leed carries t+e im$lication of action/ freedom and adventure and tends to
ma0e t+e ad more lifeli0e.
In researc+ 1# Fosdic0/ nearl# +alf of all +ig+ readers+i$ ads used 1leeds.
Conversel#/ onl# 1"2 of lo- readers+i$ ads used t+is tec+ni9ue.
Borders
In contrast/ 1orders set u$ continuit#/ structure/ and formalit#. &orders can
isolate t+e ad from surrounding co$# and ot+er ads >forcing #ou to focus on
t+e ad. ?o-ever/ t+e# tend to ma0e t+e ad a$$ear smaller.
Adver!isin( !&a! :or*s :ondersC
If #ou are loo0ing for t+e 1est creatives t+at advertise #our $roduct and
communicate t+e message to t+e rig+t $eo$le at t+e rig+t time and t+e rig+t
$lace/ 78ine Caf\ is #our 1est c+oice.
&e it a teaser cam$aign/ a 1leed/ a full>$age or a sim$le single>line classified
advertisement/ 78ine Caf\ offers #ou great ideas t+at -or0s for #ou and also
gives #ou a good run for #our mone#.
78ine Caf\Os services in Advertising 7esigns includeC>
Print Ads ;Ne-s$a$er/ )aga8ines or Pournals<
Posters
Television Commercials
?oardings and &ill1oards
Alternative advertising ideas
AD/ERTISING STAL-ARTS
Be are ver# $leased to $ut on record a 1rief -rite u$ on t+e
ac+ievements of India6s advertising stal-arts. T+ese stal-arts +ave 1een a
source of ins$iration for ne- entrants in t+e field of advertising.
>2 Gerson da C)n&a C T&e Ori(inal fo)n!ain&ead
Gerson da Cun+a is t+e eminence grise of Indian advertising. ?e
offered so man# talented ad $eo$le Al#9ue Padamsee. Gautam
5a:ad+#a0s+a/ and #ounger 1rot+er S#lvester. ?e is living and orginal God
of Fintas.
?e made Indian +ouse-ives using 7esi G+ee to s-itc+ over to 7alda
1# creating )ot+ers -+o care use 7alda co$#. ?e -ent to &ra8il to $romote
1reast feeding. ?e +as come 1ac0 to India for good.
D2 12 1)rian
A $aragon of t+e advertising 1usiness. Fo- $rofile. )an# do not
0no- 00 in advertising 1usiness itself.
For 1( #ears +e -as CE of 5adius. No- +e $resides over a sta1le/
res$ected and agenc#.
A :ournalist -+o stra#ed into a $rofession in 1,%, as co$# -riter 1ut
soon rose u$ to 1ecome an acce$ted aut+orit# on media. ?is creative talents
are un0no-n. It -as +e -+o -rote t+e success stor# of Amul 1a1# food and
made Fimca t+e No. one soft drin0 in t+e countr#.
G.Gurian -as to given AAI> Permnara#ana A-ard in 1,,1.
?e +as s+ored +is 0no-ledge and e3$erience for !. #ers -it+ students at
&a:a: Institute/ at several universities and at Asin)ass Communication
5esearc+ and Information Center.
E2 Fran* Simoes FFran* Simoes Adver!isin(G
Fran* Simoes ;1. 1,!( > d.2..2< -as an Indian -riter 1orn in )um1ai. ?e
studied at St. )ar#Os Sc+ool in )um1ai and 1egan +is career as a -riter -it+
t+e Times of 0ndia/ -+ere +is first article -as $u1lis+ed. After +is initial
fora# into -riting/ +e 1egan to +ave +is articles $u1lis+ed fairl# regularl#.
Simoes -as of Goan ancestr# and left India at 1, to serve as a dec0+and on a
Pa$anese trading s+i$ and travelled to Genoa/ and later s$ent time in Euro$e
doing odd :o1s of all 0inds. I$on +is return to India/ +e got a :o1 -it+
Ogilv# J )at+er as a co$# trainee/ and sta#ed -it+ t+em t+irteen #ears/
t+ree as a 1oard director. ?e t+en started 1rank 'imoes Advertising Private
Limited in 1,(. and ran it for over t-ent# #ears. ?is -or0 for clients suc+ as
Fi1ert# S+irts/ Limal/ 5a#mond Suitings and t+e Ta: )a+al ?otel grou$
-ere $at+>1rea0ing and legendar#
?e t+en retired from advertising and devoted +is full time to -riting. ?is
first 1oo0/ 'ale 1orward 2oyager/ a 1iogra$+# of Goan industrialist Lasudev
Salgaocar/ -as $u1lis+ed in 1,,1 and gained +im nation>-ide recognition.
Simoes -as elected to t+e ?all of Fame at t+e National A-ards for
E3cellence in Advertising 1,,1 in Gol0ata. ?is 1est 0no-n -or0 remains
3lad 'easons in 3oa/ a -or0 on Goa.
H2 1ersi 1a!ra*
?e +as crossed '. #ears/ and carries +is '. #ears lig+tl. ?i 1rain c+ild
)C) +as stormed t+e countr# in t+e si3ties -it+ flam1o#ant ads/ t+e -ide
-+ite s$ace/ t+e $las+ of colour and com$elling co$#. ?e led a team t+at
included 0+an among ot+ers. ?e not onl# revolutioni8ed advertising 1ut also
t+e life st#les of ad men/ +is 1eing t+e first agenc# to $a# five figures
salaries/ t+ro- lavis+ $arties and cele1rate in st#le. ?e +as moved to Fintas
as e3ecutive creative director . +e entered advertising in 1,",. -+en +e
1egan as a trainee co$#-riter at t+e age of 2! at National Advertising/ -+ic+
is no- defunct. In 1,%'. +e t+en left advertising to :oin 1ac0 eig+t #ears
later> Tri0a#a. In 1,*( at $adam see6s instance +e :oined Fintas as creative
director. ?e a$tl# remar0s D-+en I -rite a cam$aign/ I 0no- t+at I must
sur$rise. Involve and t+en deliver m# message. I must ma0e t+e advertising
-ear# customer sit u$ and ta0e notice.E
A2 S)#&as G&osal F>IDH->IIJG
T+e Su1+as G+osal foundation +as 1een set u$ 1# a grou$ of communication
$rofessionals -+o su1scri1e to t+e values t+e man stood for. B+ile it does
+ave t+e li0es of )i0e G+anna and Ivan Art+ur from PBT/ it also includes
$eo$le li0e Gerson 7a Cun+a/ t+e veteran advertising and t+eatre $ersonalit#
G. Gurian ;-+o ran 5adeus</ and Titoo A+lu-alia/ t+e mar0et researc+ c8ar.
Su1+as 1elieved t+at advertising $rofessionalism -as a multi>faceted t+ing
t+at meant e3cellence 1ased on 0no-ledge/ aest+etics/ 1usiness integrit#/
+onest#/ a sense of decenc#/ effectiveness/ mutual res$ect and t+e fact t+at
good 1usiness goes +and in +and -it+ good +uman relations+i$s.
K2 +o&ammad 1&an
?e +as 1een in t+e ad 1usiness for !! long #ears ?e is an alumnus of
St. Ste$+en6s college/ 7el+i. ?e started +is career as a co$#-riter -it+ a
Fondon 1ased agenc# in '.s. +e returned to India in 1,(1. +e -or0ed -it+
da cun+a6s and )C). ?is most satisf#ing cam$aigns are for Fa0me t+e
LST range. Standard c+artered &an0 egg ads to NECC. &ritannia/ 7a1ur/
&lue dart/ Titan J ?ero. On Pan 1 1,,(. enter$rise merged -it+ Ne3us
E9uit#. T+e ne- agenc# is called Enter$rise Ne3us. A co$#-riter descri1es
+im as t+e god -+o made all t+e demigods in industr# toda#. ?e +as 1een
nominated to t+e $restigious Clio a-ards Por# 1,,(. +e also t+e reci$ient of
t+e Premnara#ana A-ard given 1# t+e AAAS for e3cellence in t+e field of
advertising.
L2 R212 S:am$
?e is t+e grand old man of Indian Advertising. ?e is t+e founder of an
agenc# named after +im. 5ecentl#/ +e received t+e 1.
t+
AAAI>
Premanarage+ A-ard for 1,,(> t+e +ig+est a-ard in advertising. ?e +as a
career of %* #ears in advertising management.
J2 Bo## Sis!a
?e -as t+e c+airman of Sista Sootc+i J Saatc+i. ?e +anded over t+e
reins to L. S+anta Gumar/ a $rofessional and not to +is son. ?e declined
large cigarette accounts. ?e -as against t+e $oac+ing of talent6s on t+e lure
of lucre.
I2 Ravi G)p!a
T+e late 5ave Gu$ta of Tri0a#a Gre# -as 0no-n to get t+e 1est out of
+is creative team. ?e discovered J develo$ed C+risto$+or 7 5osario J
Alo0 Nanda. ?e -as cool>+eaded. 5avi Gu$ta/ t+e founder of Tri0a#a Gre#
e3$ired at t+e age of %, on Sunda#/ t+e !
rd
of )a#/ 1,,(.
>?2 "i$)s& "ande$ = "rasoon "anda$
Pande# comes from a 1ig famil# of nine/ seven daug+ters and t-o
sons. Pand#e6s sister Ela Arun. Pande#6s 1rot+er Prasoon is also in
advertising. Bit+ a Cannes a-ard -inning s$ot of Ericsson cellular $+one
are 1lac0 coffee/ $lease Pande#. Pande# +as -ritten man# ad co$ies for lever
in ?indi and Englis+ ads. In 1,,%/ +e -as on t+e &oarrd of O J ) and
1ecome its Notional Creative 7irector. ?e 1elieves in t+e $o-er of t+e
visuall# driven creative $rasson 1elieves in t+e intelligence of t+e audience.
?is films are -atc+ed again and again. ?e 1uilds intrigue. ?e ma0es t+e
audience t+in0/ and does not reveal ever#t+ing.
Crea!ive Trini!$ of Adver!isin(
T+e creative revolution in advertising -as 1roug+t 1# t+e &ill
&em1ac+ ;77&< Ogilv# Pioneered t+e marriage/ 1et-een +ard sell and
image rentals/ Sc+-e$$es/ 5oll 5o#ce/ )orl1ore/ and Green Giant Corn.
Case S!)d$- >
/EN16MS OF /EN1ATES.-ARA .ATC.ERIES
T+e Indian $oultr# industr# +as made good $rogress in increasing
$roduction over t+e #ears. &ut $rocessing and mar0eting lag 1e+ind/ ma0ing
e3$orts uncom$etitive. In 2..!>2.."/ Indian $oultr# e3$orts stood at a mere
5s 2./2!,.*2 la0+ >> less t+an 12 of -orld trade in $oultr# $roducts.
No- t+e $oultr# industr# is gearing u$ for a 1ig e3$ort $us+. &ut in order to
succeed/ it +as to c+ange t+e -a# it does 1usiness.
In 1,,'/ t+e Indian $oultr# sector reared around ''. million 1irds= toda#
t+ere are around 1/".. million 1irds. @et/ onl# ".%2 of t+e 1irds $roduced in
India are $rocessed/ t+e rest are sold live. T+ere are t+erefore ver# fe-
c+ic0en>$rocessing units.
T+e t-o 1iggest $la#ers in t+is sector are Len0#6s Ftd ;of t+e Len0ates+-ara
?atc+eries Grou$/ -+ic+ +as an annual turnover of 5s !/12! millionMF@
2.."< and Godre: Agrovet Ftd ;annual turnoverC 5s "/('" millionMF@ 2..!<.
A cou$le of smaller $la#ers o$erate in sout+ern India .
CONTRACT FAR+ING
All over India / $oultr# is raised mainl# 1# individual farmers under contract
-it+ $oultr# com$anies. In Tamil Nadu/ over ,.2 of 1irds are reared on
contract farms. In t+e Pune district of )a+aras+tra/ anot+er ma:or $oultr#
rearing area/ almost all t+e '/... $oultr# farms are on contract eit+er -it+
Len0#6s or -it+ Godre:.
Inder t+e contract s#stem/ Agro-ers6 or $oultr# farmers $rovide land/
1uilding/ e9ui$ment/ utilities and la1our to raise 1irds to a mar0eta1le age.
T+e com$anies/ or integrators/ su$$l# t+em -it+ da#>old c+ic0s ;7oC</ feed/
medication and t+e necessar# tec+nical su$$ort. T+e com$anies $ic0 u$ t+e
1irds -+en t+e# are read# for mar0et ;it usuall# ta0es "2>"% da#s for a 1ird
to -eig+ t-o 0ilos<. T+e farmers are $aid a rearing fee.
T+is s#stem suits 1ot+ t+e com$an#/ -+ic+ does not +ave to invest in land
and ot+er infrastructure/ and t+e farmer -+o gets a stead# income and t+e
necessar# in$uts and does not +ave to -orr# a1out mar0eting t+e $roduct.
In realit# t+oug+/ t+e s#stem is loaded against t+e farmer. Contracting
com$anies dra- u$ contracts -it+ t+eir o-n interests in mind. T+ere are no
$oultr# associations or collectives t+at -ould strengt+en t+e farmer6s
1argaining a1ilit#.
Often/ t+e infrastructure t+at t+e com$an# is su$$osed to $rovide is not
fort+coming. 7octors do not visit regularl#/ feed ma# 1e of $oor 9ualit#/ or
t+e 1reed of 1irds inferior. )oreover/ t+e farmer +as to 1ear an# losses
resulting from in$uts su$$lied 1# t+e com$an#.
T+is situation +as not +el$ed t+e industr#. As a conse9uence/ $oultr#
com$anies +ave 1egun loo0ing at ot+er $roduction models >> one of t+em
A1ac0#ard farming6>> $ractised in countries li0e &anglades+ .
T.E BAC16ARD +ODEL
In t+is s#stem/ t+e $oultr# farmer rears a small num1er of 1irds/ sa# around
2%. T+ese 1irds not re9uire muc+ 1# -a# of infrastructure as t+e# eat
-+atever is around and re9uire onl# minimal s+elter. ?o-ever/ e3$eriments
-it+ t+is 0ind of $oultr# rearing s+o- t+at -+at rural farmers find difficult
to +andle is rearing t+e da#>old c+ic0s ;7oCs<.
Fine>tuning t+is model/ com$anies +ave introduced a 0e# intermediar# ;t+e
mot+er unit</ a small/ rudimentar# $oultr# farm t+at 1u#s 7oCs from t+e
1reeding unit to rear t+em for a $eriod of t+ree to four -ee0s. T+ese four>
-ee0>old c+ic0s >> vaccinated/ fed and strong enoug+ to survive t+e +ars+
rural conditions >> are t+en distri1uted to 1elo- $overt# line ;&PF< families
for a $rice or free of cost in t+e initial $eriod.
+ODIF6ING T.E BAC16ARD +ODEL
A $ilot $ro:ect 1ased on t+is model +as 1een started 1# Len0ates+-ara
?atc+eries ;L?< in association -it+ t+e 5a:iv Gand+i Foundation ;5GF< and
ICICI &an0. T+e $ro:ect is 1eing underta0en in Amet+i and 5ae &areill# in
Ittar Prades+/ a state almost untouc+ed 1# t+e $oultr# -ave.
T+e nucleus of t+e $ro:ect -ill 1e t+e mot+er unit/ or central 1rooding and
gro-ing unit. T+is -ill 1e under t+e tutelage of t+e 5GF/ during t+e initial
stages of t+e $ro:ect. T+e idea is to transfer t+e mot+er unit to a coo$erative
or association of farmers as t+e $ro:ect matures.
T+e unit -ill +ave t+e ca$acit# to rear over !./... 1irds a #ear. T+e initial
focus -ill 1e on egg>$roducing la#er 1irds/ not 1roilers for meat. Satellite
$oultr# farms/ o-ned and run 1# entre$reneurs/ -ill 1e 1uilt around t+e
mot+er unit nucleus.
T+e mot+er unit -ill rear c+ic0s u$ to 1' -ee0s/ after -+ic+ t+e 1irds -ill
1e $assed on to t+e satellite farms o-ned 1# individual farmers. Around
1/... 1irds -ill 1e $laced in eac+ farm/ -+ere t+e# -ill 1e reared for %'
-ee0s/ till t+e end of t+e egg>la#ing c#cle.
A satellite $oultr# farmer under t+e $ro:ect ;-it+ a 1atc+ of 1.>2.
1eneficiaries< could earn 1et-een 5s ,'/... and 5s 1../... -it+in a c#cle
of 12>1! mont+s. T+is -or0s out to around 5s (/%..>5s */... a mont+. ?e
is e3$ected to scale u$ o$erations -it+ t+e tec+nolog#/ financial and
mar0eting su$$ort e3tended 1# t+e L?>5GF>ICICI com1ine.
T+e ne- model is e3$ected to fuel and s$ur integration -it+in t+e $oultr#
industr#/ and also create man# more $rocessing facilities. It -ill ma0e
$rocessed/ fro8en c+ic0en availa1le at strategic facilities across t+e countr#.
Bit+ t+is infrastructure/ com$anies li0e L? 1elieve t+e# can trul# ma0e a
mar0 in t+e glo1al $oultr# mar0et
Case S!)d$- D
LA1+E GIRL
5evlon t+e cosmetic giant in t+e Best created a 1rea0t+roug+ in
advertising 1# featuring a 5evlon girl. Cind# Cra-ford/ t+e -ell>0no-n
su$er>model is no- t+e 5evlon girl. In 1,*(/ t+e# crerated a ne- cam$aign
titled. DT+e )ost unforgetta1le -omen in t+e -orld.E 5eno-ned 1earuties
li0e Imam -ere featured -it+ Perr# ?all.
Fa0me in India +as also featured versatiles as -ell as salea1le faces>
@asmin ;)iss India> 1,''<. Pumima 7i3it/ )avreen Geelan ;no- Badia<.
Fa0me6s searc+ for model gave t+em a so$+isticated face of S+#amolie
Lerma in 1,*1. s+#amolie 1ecame a cor$orate model for all t+eir $roducts
for t+ree #ears. T+en follo-ed an assortment of faces/ some 0no-n/ some
un0no-n. ;Pu+i C+a-la/ Sonu Balia/ Lid#a 5ao/ Sa1ita 7+anrai:gir/
Poonam Gid-ani/ Anu Agar-al/ Anu A+u:a/ )e+r Pessia/ S+err#
)e+ro+om:i<. S+#mamolie Su$r$risingl# +as sur$assed all +er successors.
Once again t+e searc+ for a Fa0me Girl is on. Fa0me lever never too0 in
un0no-n face. &esides/ Fa0me a 1rand is 1igger t+an t+e face. Ais+-ar#a
5ai in t+e ,.6s -as t+eir $erfect face and screen &i$us+a &asu -as t+eir
c+ange in t+e mid>,.6s. to 1e Fa0me face toda#/ #ou don6t +ave :ust to loo0
good/ #ou +ave to feel good.
Iss)es
;a< B+at is t+e logic 1e+ind a Fa0me girl versatile enoug+ for t+e entire
range of ProductsH
;1< B+at is t+e difference 1et-een a Fu3 )odel recommending t+e soa$ and
a Fa0me modelH
Case S!)d$ , E
SOCIAL A-ARENESS AD/ERTISING
DSocial a-areness advertising $romotes ideas. &ut for t+e ideas/ crati>
vit# -ill 1e of a different and 0ind. A $roduct is out t+ere in a s+o$. A 1ar of
soa$ is an investment small conse9uence. Tr#ing to sell a idea> li0e a free
Cancer/ t+e need to 0ee$ t+e Ganga clean/ t+e im$ortant of famil# $lanning/
is altoget+er a different $ro$osition it needs more core/ more stud#/ more
$erce$tion/ more ins$iration and a1ove all/ more sensitivit# mot in t+e good
ta1le> manners sense 1ut as +onestl# as it is $ossi1le for on +uman 1eing to
s$ea0 li0e a $erson and not an ad man.E
;S.5. F#er<
Tara Sin+a -ants advertising to 1ecome an instrument to accelerate
t+e $rocess of c+ange in t+e ur1an rural societ#. Pu1lic Service Advertising
or social A-areness advertising must 1een a stam$ of $rofessional
e3cellence t+at moves $eo$le to action> es$eciall# t+e voluntar# and non>
voluntar# organi8ations -+o toget+er -it+ t+e ma0ers of advertising and
$lanners of media from a $art of t+e team is also necessar# t+at $u1lic
service advertising 1e vie-ed on a cam$aign 1asis ade9uate time must 1e
given for advertising to -or0.
It is desira1le to +ave an agenc# li0e t+e Ad council of t+e ISA -+ic+
ma0es use of t+e team -or0 of t+e agencies/ t+e cor$orate entities and t+e
media.
Educating drives 1# a centrall# located ?oarding is good 1ut it is
going to 1e effective -+en it sa#s. From toda# it -ill cost #ou 5s. %.. if #ou
overta0e from t+e left.E T+ere are areas of e3ce$tion li0e t+e IOC educating
t+e consumers t+e do6s and don6ts of coo0ing -it+ $ac0aged gas/ t+e
cam$aign designed to s+o- can o-ners +o- t+e# could get t+e most mileage
out t+eir ve+icles.
Iss)es
o T+in0 of t+e Social o1ligations of 1usiness. T+en t+in0 of social
o1ligations of advertising is one -a# to fulfill t+e social o1ligations
t+e agenc# +as. B+at sociall# relevant caused can 1e ta0en u$ for t+is
genre of advertisingH
o B+at is t+e similarit# of t+is 0ind of ads -it+ mainstream adsH ?o-
do t+e# distinct t+emH
o Contem$late +o- 1reast> feeding can 1e $romoted amongst Indian
-omen.
o Comment on t+e t+ematic 1rilliance of female feticide ad co$ies given
as a$$endi3.
Case Stud# "
CO+"LAN
o Formulated 1# Gla3o/ IG as ACom$lete $lanned food found its -a#
into emergenc# rations of &ritis+ Soldiers during t+e second -orld
-ar.
o First $ositioning Ameal in a tea cu$6 for famis+ed men in t+e arm#
ACom$lete meal for soldiers.
o Gla3o India6s largest 1rand sales touc+ing 5s. '. crore.
o Faunc+ed in 1,'( in India.
o )il0 1everage mar0et/ currentl# estimated at 5s. !.. crore (.2 of t+e
mar0et is of -+ite 1everages. Com$lan6s s+are is t+ird of t+is mar0et.
o )ar0et +as stagnated in t+e last four #ears. Com$lain +as +o-ever
managed a 1. $.c. annual gro-t+ rate.
Compe!i!ion
Active>2% Com$leat G57 Instanto
1,*( Pagit Industries Cadilla Barner
7almias
Enric+e Nutri$lan
Cad1ur#
)ost faded a-a#. Active 2% and Nutri$lan +ave less t+an I $.c. s+are.
?orlic0s and &ournvita are food su1stitutes6 and anot+er categor# altoget+er.
Iss)es;
7iscuss -+et+er Com$lan can 1e targeted 1ot+ to t+e c+ild and t+e aged.
7iscuss +o- com$lain can 1ust meet t+e com$utation.
Can com$lan t+in0 of relations+i$ mar0etingH ?o-H
B+at role SPC Sales Promotion/ can $la# in effective sales of com$lanH