Organizations handle advertising in different ways:

y In small companies : handled by sales & marketing

department. y In large companies : handled by a separate advertising department. y Most companies use an outside agency.

The 5 M s of Advertising

Mission
y An advertising goal is a specific communication task & achievement level to be accomplished with a specific audience in a specific period of time.

Advertising objectives can be classified as: y Informative advertising . E.g. products at introductory stage health drinks y Persuasive advertising. E.g. important at competitive stage detergent y Reminder advertising . E.g. automobile ads depicts satisfied customers enjoying special features of their new car.

Money
y Advertisement has a carryover effect that lasts beyond

the current period.

y If it spends too little , the effect will be negligible . y If it spends too much , then some of the money could

have been put to better use.

There are 5 factors to be considered when setting the advertising budget: y Stages in the product life cycle y Market share and consumer base y Competition y Advertising frequency y Product substitutability

Message
y Creativity factor can be more important than the no. of

rupees spent. Message generation Message evaluation & selection Message execution Social responsibility review

Media
y Deciding on reach & frequency y Choosing among major media types y Deciding on media timing

Measurement
y Communication effect research

It seeks to determine whether an ad is communicating effectively. y Sales effect research It seeks to determine what effect does the advertisement have on sales. It is more difficult to determine than communication effect.