Advertising Management

Introduction

In small companies, advertising is handled by someone in sales department who works with an advertising agency.

Large companies set up their own advertising departments whose managers report to vice president marketing.

Here the cos. Prepare their advertising budgets, approves advertising agency ads, campaigns and handles direct marketing mails, dealer displays and other forms of

advertising not ordinarily performed by the agency.

Most companies use an outside advertising agency which offer several advantages.

Steps in Advertising Management

1. 2. a)
b) c) d)

The steps involved are: Situational Analysis Advertising strategy

Objective setting Budgeting Message strategy Media strategy

3. 4.

Strategy Implementation Strategy Evaluation/ Accessing advertising

1. Situational Analysis

The first step is backgrounding, researching and reviewing the current state of business relevant to brands Advertising.

Analysis means making sense of all data collected and figuring

out what the information means for future success of brand.

Involves both internal and external analysis. Internal analysis involves analysis of : - Previous advertisements - Departmental Organisation - Firms ability to implement programme and review of previous results, etc.

External Analysis involves analysis of:

- Consumer Behavior - Market segmentation & Positioning. - competitive and environmental analysis

Decisions to be made on:

- Setting of advertising objectives

- targeting audience - Product feature & competitive advantage - Establish Brand image and personality - Position a product

2. Advertising Strategy

It involves the four major activities: - Setting of Objective - Deciding the budgets - Setting message strategy - Setting Media Strategy

 Setting
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the objective

Informative advertising (brand awareness & knowledge)

Persuasive advertising( creating liking, preferences,

conviction & purchase)

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Reminder Advertising ( stimulate repeat purchases) Reinforcement advertising ( convince current purchasers that they made right choice)

Deciding on advertising budget (5 factors worth considering in setting advtg. Budget)

Stage in product life cycle (new products more budget &

established brands requires lesser)

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Market share & consumer base (High mkt share less budget, more consumer base less cost per impression basis)

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Competition & clutter ( more competition more spending) Advertising frequency ( no. of advt. repitition impacts

budget)
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Product substitutability

Setting Message strategy

Advertisers go through following steps to develop the creative message strategy:

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Message generation
Message evaluation & selection

Message Execution

Message generation - Inductive method: generate advertising ideas by talking to customers, dealers, experts and competitors.

- Deductive Method: looking for more & more Ads

alternatives to reach the most high rated Ad.
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Message Evaluation and selection Message should be rated on desirability, exclusiveness and believability.

Must say something desirable & interesting about product. Should be distinct, it must be provable or believable.

Message Execution : Messages impact depend not only on what is said but also on how it is said.

- the advertiser has to put the message across in such a way

that wins the audiences attention & interest.

- Creative people must find style, tone words headlines and format for executing the message.
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Execution style: - Slice of life: (family sitting around dinning table shows

interest about product) (Tata Tea, kurkure)

- Lifestyle: how a product fits into life style (MTR Food items)

Fantasy

Musical (Perk ad)

Personality symbol ( character that personifies the product) Boomberman

Technical expertise (Volkswagen) Scientific evidence (Pantene, head and sholders) Testimonial evidence Tone (Humours, informative, emotional)

Words

- memorable and attention getting words must be found.

Headlines

- News (new boom & more inflation ahead - Question (Have you had it lately) - Ways (12 ways to save your income tax) - Command (dont buy until u try all three)
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Format:

- format elements such as Ad size, colour illustration

Setting Media Strategy

Deciding on reach frequency and impact Choosing among major media types Choosing specific media vehicles Selecting specific media vehicles

Deciding On Media And Measuring Effectiveness

Reach (R): The number of different persons or households exposed to a particular media schedule at least once during a specified time period. Frequency (F): The number of times within the specified time period that an average person or household is exposed to the message. Impact (I): The qualitative value of an exposure through a given medium( such as media costing Rs 600 per thousand exposure or Rs. 60 per thousand exposure) Exposure (E): Total number of Exposure (E) (Gross Rating Point) = R X F Weighed number of Exposures (WE) = R X F X I

Choosing Among Major Media Types

Media planners make their choices by considering following variables

Target audience and media habits (TV & radio most effective to
reach teenagers)

Product characteristics ( male accessories like watch watches cuff lets in business magazines and LCD Tv , washing machines, good night machines on TV)

Message characteristics (technical message requires specialized

magazines, a sale announcement message requires radio, newspaper or TVs local channel -Cost (Tv most expensive, newspaper

Selecting specific vehicles

Media planner must search for most cost effective vehicles within each chosen media type. Planner has to depend on measurement services that provide estimates on audience size, composition, media cost. Audience size has following measures: Circulation: the number of physical units carrying the advertising. Audience: the number of people exposed to the vehicle.

Effective audience: the number of people with target audience characteristics exposed to the vehicle. Effective ad-exposed audience: the number of people with target audience characteristics who actually saw the ad.

Deciding on media timing and allocation

In choosing media, advertiser may choose macroscheduling or microscheduling.

Macroscheduling: scheduling advertising in relation to seasons & business cycle.

Microscheduling: allocating advertising expenditures within a

short period to obtain max. impact.

Strategy Implementation

It deals with tactical, day to day activities that must be performed to carry out advertising campaigns.

Evaluation

It is critical to advertising.

Only through evaluation we may get to know whether our

advertising objectives are accomplished or not.

It requires baseline measures before the advertising campaigns begins and afterwards to check if advertising objectives are accomplished.

Research is fundamental to advertising.

Thank You