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Introduction to Advertising

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Evolution of Marketing
Product Concept Focus: Quality improvisation Assumption: Customer will prefer a brand which offers best features and utility irrespective of the escalation Seller is always focused on continued addition of features to a brand
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Evolution of Marketing
Production Concept Origin: Industrial Revolution Mechanization of production Focus: Economies of Scale Continued increase in quantity with an aim to reduce the cost of production Assumption: Customer will prefer a brand which offers best value for money
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Evolution of Marketing

Selling Concept
Seller Customer

Origin: Revolutionary increase in production due to industrialization resulted in surplus stocks Focus: Selling Assumption: Unless a brand is pushed into the market it will not sell
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Evolution of Marketing

Marketing Concept
Customer Production

Marketing starts with a customer and ends with a customer Origin: A mere push of products through selling will not give expected results Focus: To understand consumer needs Assumption: A brand will be successful only if it fulfils their needs and want

Seller

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Evolution of Marketing

Societal Marketing Concept Focus: Marketing + welfare of the society Assumption: Any marketing effort should not disturb the social equilibrium of the social system in which the brand operates
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Evolution of Marketing

Customer Relation/Retention ship Management Focus: Customer Loyalty/Retention


Winning a new customer = retaining 6 customers

Assumption: Retention of customer is a winning strategy


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What is Marketing?
The American Marketing Association Defines Marketing as the Process of Planning and Executing the Conception, Pricing, Promotion, and Distribution of Ideas, Goods, and Services to Create Exchanges That Satisfy the Perceived Needs, Wants, and Objectives of the Customer and the Organization.
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What is Advertising?

Advertising is Paid, Nonpersonal Communication From An Identified Sponsor Using Mass Media to Persuade or Influence an Audience.

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What Makes an Ad Great?

Explicit objectives should drive the planning, creation, and execution of each ad. An ad is great to the extent that it achieves its objectives, not because it wins awards. Creativity for its own sake does not always lead to great advertising.

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Advertisings Role in the Marketing Plan Advertising is One of Several Marketing Communication Options.

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What Makes an Ad Great?

Explicit objectives should drive the planning, creation, and execution of each ad. An ad is great to the extent that it achieves its objectives, not because it wins awards. Creativity for its own sake does not always lead to great advertising.

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Broad Dimensions That Characterize Great Advertising


The Ultimate Test for the Greatness of An Ad is Whether It Achieved Its Goals.

Strategy

Creativity

Execution

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Characteristics of Great Ads

Good or Great Ads Work on Two Levels

Satisfy the Customers Objectives by Engaging Them & Delivering a Relevant Message

Achieve the Sponsors Objectives


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Types of Advertising
Interactive Advertising Public Service Advertising Institutional Advertising Business-toBusiness Advertising Direct-Response Advertising Brand Advertising

Retail or Local Advertising

Political Advertising
Directory Advertising

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Roles of Advertising
Marketing Role
Marketing is the process a business uses to satisfy consumer needs and wants through goods and services.

Communication Role

Advertising is a form of mass communication. Two main views about advertising, either the market power model or the economics of information theory. Informs us about new and improved products, teaches us how to use these innovations, etc.
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Economic Role

Societal Role

Functions of Advertising
Provide Product & Brand Information

Provide Incentives To Take Action

Advertising Performs 3 Basic Functions

Provide Reminders and Reinforcement


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Five Players of Advertising

The Advertiser is the individual or organization that usually initiates the advertising process.
1. 2. 3. 4. Manufacturers Resellers Individuals Institutions, Government Agencies

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Five Players of Advertising

The Advertising Agency plans and implements part or all of the advertising efforts.
May use an outside agency, or their own advertising department or in-house agency.

The Media are the channels of communication that carry the messages from the advertiser to the audience, i.e. television, magazines, radio, etc.

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Five Players of Advertising

The Vendors are a group of service organizations that assist advertisers, advertising agencies, and the media, i.e. freelance copywriters, graphic artists, photographers, etc. The Target Audience may be the purchaser or the consumer of the product, or both. May need to design different ads for each group.
Critical to know as much about these target audiences as possible. K. Praveen Kumar

The Evolution of Advertising


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Age of Print

1850s1900
Industrial Revolution & Consumer Society

19001950s
Age of Science

1920s

Rise of Agencies

World War IWorld War II


Advertising Declines

1950s
Reintroducing Consumers to Marketing

1960s1970s
Creative Era

1970s1990s
Accountability Era

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Practical Tips # 2 Ogilvys Advertising Tenets

Here are some advertising tenets that David Ogilvy offers: (11)
Never write an advertisement you wouldnt want your own family to read. The most important decision is how to position your product. If nobody reads or looks at the ads, it doesnt do much good to have the right positioning. Big ideas are usually simple ideas. Every word in the copy must count.

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Current Advertising Issues


Interactive Advertising
Integrated Marketing Communication Globalization Niche Marketing Consumer Power, Relationship Marketing and Customization
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The Marketing Plan


A Marketing Plan is a Blueprint of Planned Marketing Activity That Strives to Create a Competitive Advantage for an Individual Product, a Product Line, or an Idea.
Research Stage
Analyze Marketing Environment

Strategic Stage
Develop Objectives and Strategies

Tactical Stage
Specific Tools Are Selected

Implementation Stage
Coordinate Strategy With Marketing Activities

Evaluation Stage
Assess How Well Objectives Were Achieved
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Advertisings Role in the Marketing Plan Advertising is One of Several Marketing Communication Options.

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The Four Main Types of Marketing

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Approaching the Market


Undifferentiated Approach
Develop One Marketing Strategy That Will Appeal to As Many People as Possible. (i.e. Gasoline, White Bread)

Market Segmentation Approach


Divide the Entire Heterogeneous Market Into Segments That Are More Homogeneous, Then Focus on Specific Target Markets Based on Groupings Such As:

Type of Buyer

Consumer Characteristics

Benefits Sought From Product


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Product Differentiation

A Competitive Marketing Strategy Designed to Create Product Differences in the Eyes of the Consumer.

Tangible Differences
Product Features, Color, Size, Quality of Performance, Options or Price

Intangible Differences
Image That Implies Difference such as Status, Enjoyment or Masculinity
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Marketing Concept

The marketing concept suggests that marketing should focus first on the needs and wants of the customer, rather than finding ways to sell products that may or may not meet customers needs.
Step 1. Determine what the customer needs and wants. Step 2. Develop, manufacture, market, and service the goods and services that fill those particular needs and wants.
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Integrated and Relationship Marketing

Integrated marketing has emerged as the strategic approach with the greatest potential to implement the marketing concept. Relationship marketing identifies highvalue customers and prospects and bonds them to the brand through personal attention. Advertising, along with other communication tools, can play an important role in maintaining
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Four Tools of Marketing

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Product Branding
Brand
Name, Term, Design, Symbol, or Any Feature That Identifies the Goods, Service, Institution, or Idea Sold by a Marketer.

Brand Name
Part That Can be Spoken

Brand Mark
Logo

Trademark
Legally Protected Through Registration

Brand Equity
Reputation that the Name or Symbol Connotes

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Channel of Distribution Influencers


Channel Direct or Indirect?
Direct Marketing: Companies that distribute products without the use of a reseller. Indirect marketing: product is distributed through a channel structure that includes one or more resellers.

Push, Pull or Combo Strategy?


Push Strategy: Directs marketing efforts at resellers. Pull Strategy: Directs marketing efforts to the ultimate consumer. Combination Strategy: Most often used and combines push and pull strategies.

Market Coverage?
Exclusive Distribution: Only one distributor is allowed to sell the brand in a market area. i.e.Ethan Allen

Selective Distribution: Increased number of outlets, but limit number to most profitable. i.e. Timex
Intensive Distribution: Places product in every possible outlet. i.e. soft drinks
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Pricing
The Price a Seller Sets for a Product is Based Not Only on the Cost of Making and Marketing the Product, But Also on the Sellers Expected Profit Level.
Customary or Expected Pricing

Psychological Pricing

Pricing Strategies

Price Lining
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Marketing Communication Mix


Advertising Packaging
How the Marketer May Communicate With Target Markets.

Personal Selling Sales Promotion

Point-ofSale

Direct Marketing

Public Relations
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Marketing Communication

Personal Selling
Face-to-face contact between the marketer and a prospective customer. Most important for companies that sell products requiring explanation, demonstration, and service.

Advertising
Has a greater ability to reach a larger number of people simultaneously. Has less ability to prompt an immediate change in behavior.

Sales Promotion
Communication devices offered for a limited period of time to generate immediate sales. K. Praveen Kumar

Marketing Communication

Public Relations Set of activities intended to enhance the image of the marketer to create goodwill. Direct Marketing Interactive system that allows two-way communication. Provides a mechanism for the prospect to respond. Can occur at any location. Provides a measurable response. Requires a database of consumer information. Point-of-Sale/ Packaging All the communication devices and marketing messages found at the place where the product is sold.
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Why Hire an Agency?

Hiring an agency can result in several benefits:


Offer objective advice. Draw on the collective experience and training of its staff. Provide people and management skills to accomplish advertising objectives. Provide supportive environment for professional advertising people.

K. Praveen Kumar

praveensan@gmail.com 9849050352

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