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AM Module 1

The document provides an introduction to advertising management and marketing, detailing the definitions, processes, and strategies involved in marketing and advertising. It covers the marketing mix, communication tools, and various forms of advertising, including above-the-line, below-the-line, and through-the-line strategies. Additionally, it discusses sales promotion, personal selling, direct marketing, public relations, and the importance of integrated marketing communication (IMC) for consistent messaging across channels.

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rashmishroff2016
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0% found this document useful (0 votes)
15 views124 pages

AM Module 1

The document provides an introduction to advertising management and marketing, detailing the definitions, processes, and strategies involved in marketing and advertising. It covers the marketing mix, communication tools, and various forms of advertising, including above-the-line, below-the-line, and through-the-line strategies. Additionally, it discusses sales promotion, personal selling, direct marketing, public relations, and the importance of integrated marketing communication (IMC) for consistent messaging across channels.

Uploaded by

rashmishroff2016
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

INTRODUCTION TO

ADVERTISING
MANAGEMENT-
MODULE I
NMIMS
• Shop around the corner
• Safari 1
• Safari 2
• Maggi

• Sabhyata
INTRODUCTION TO MARKETING

MEANING OF MARKETING
Marketing is the process of exploring, creating, and delivering value to
meet the needs of a target market in terms of goods and services.
Example- Apple,Harley,Nestle
DEFINITION OF MARKETING
Kotler, Armstrong, Saunders and Wong(2005)“A social and
managerial process by which individuals and groups obtain what they
need and want though creating and exchanging products and value with
each other.”
American Marketing Association(2007) “Marketing is the activity,
institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value”
MARKETING MIX

“The process of Product

planning and
executing the
conception, pricing,
Promotio Marketi
promotion, and n
ng
Price

distribution of ideas,
goods and services
to create exchanges
Place
that satisfy
individual and
organizational
WHAT IS MARKETING
COMMUNICATION?

• Involves all activities concerned with effectively


communicating product information to selected target
audience (TA)
• TA: a group of consumers to whom marketing
communication messages are directed
• Purpose: Seek a cognitive(consumers mind), affective
(change an attitude) or behavioural (consumer
action)response from the target audience
MARKETING COMMUNICATION /PROMOTION
MIX
Unconve
Advertis
ntional
ing
Tools
Inform and
persuade, Sales
Promotio
remind and Personal n
selling
reinforce Direct
Mktg Public
customers &Interac Relation
tive s
Tools
MARKETING COMMUNICATIONS/PROMOTION MIX

CONSISTS OF
1. ADVERTISING
2. SALES PROMOTION
3. PUBLIC RELATIONS AND PUBLICITY
4. PERSONAL SELLING
5. DIRECT MARKETING
6. INTERACTIVE MARKETING
7. EVENTS AND EXPERIENCES
8. WORD OF MOUTH MARKETING
9. MERCHANDISING,PRODUCT ,PACKAGING DESIGN
COMMON COMMUNICATION PLATFORMS
DIRECT
ADVERTISING SALES PUBLIC PERSONAL &INTERACTIVE
PROMOTION RELATIONS SELLING MKTG
Print ads (newspapers Contests, games, Press kits Sales Catalogs
and magazines) sweepstakes, Speeches presentations Mailings
Broadcasts(radio, Tv) lotteries Seminars Sales meetings TV shopping
Motion pictures Premiums and gifts Annual reports Incentive Fax mail
Network media Sampling Charitable programs E-mail
(telephone,cable, Fairs & trade donations Samples Voice mail
satellite, wireless) shows Sponsorships Fairs and trade Telemarketing
Electronic audiovisual Exhibits Publications shows
Company blogs
media(CD,DVD, Demonstrations Community Websites
webpage) Coupons relations Touch screen
Display media –OOH Rebates Lobbying kiosks
(billboards, signs,bus Low-interest Identity media Social media
shelters ) financing Company mktg facebook ,
Packaging Trade-in magazine twitter etc
outer,inserts allowances Events
Brochures ,booklets, Continuity
leaflets, posters, programs
Directories, Audio- Tie-ins
visual material POP/POS
Symbols and logos
ADVERTISING

• David Mackenzie Ogilvy CBE (23 June 1911 – 21 July 1999) was a British
advertising tycoon, founder of Ogilvy & Mather, and known as the "Father of
Advertising".
• Advertising is a marketing tactic involving paying for space to promote a product,
service, or cause.It intends to persuade people to buy that in a specific way.
• The advertising comes in various forms such as copy, videos, and promotion
through multiple mediums, namely newspapers, televisions, internet, radio, trade
journals, billboards, or movie theatres.
• Acc. To Wheeler “Advertising is any form of paid non-personal presentation of
ideas, goods or services for the purpose of inducing people to buy.”
ADVERTISING MANAGEMENT

Advertising management is a planned managerial process designed to


oversee and control the various advertising activities involved in a
program to communicate with a firm's target market and which is
ultimately designed to influence the consumer's purchase decisions.
6M’S OF ADVERTISING
Understanding the Objectives of the advertisement (MISSION) ·Defining
the Target Audience (MARKET) · Understanding the Budget (MONEY) ·
Understanding the Message (MESSAGE) · The Media used for putting the
advertisement (MEDIA) · Seeing whether the advertisement was Effective
(MEASUREMENT)
BROADER TYPES OF ADVERTISING
ABOVE THE LINE

• Above the Line marketing or ATL advertising consists of advertising


activities that are largely non-targeted and have a wide reach. ATL
communication is done to build the brand and inform the
customers about the product. The mediums convey the message to
everyone who has access to them. Above the line marketing includes
mass marketing strategies which are largely untargeted and are focused
on building the brand.
• Prominent Examples of ATL- Electronic medium-(TV, Radio
Advertisements),Print Medium-(Newspaper, Magazines),Transit
medium(Modes of Transport),Outdoor medium(Hoardings,Billboards,Flexis)
BELOW THE LINE

• Below-the-line marketing or BTL advertising consists of very specific,


memorable and direct advertising activities focused on targeted groups of
consumers. Often known as direct marketing strategies, below the line
strategies focus more on conversions than on building the brand.
It includes direct marketing strategies directed to specific target groups
and focused on conversions rather than building the brand.
• Examples of Below the Line
Direct Mail Marketing, Sponsorship, Brand Activation(Brand Activation
is the art of driving consumer action through brand interaction and
experiences through experiential marketing), for eg. Apple across the
world asks their customer to have in store experience and connects
with million of customers.
THROUGH THE LINE

• Through the Line marketing or TTL advertising involves the use of both ATL &
BTL marketing strategies. The recent consumer trend in the market
requires the integration of both ATL & BTL strategies for better
results. Through the marketing involves marketers to create marketing
campaigns which include both ATL & BTL strategies.
Examples of TTL
360° Marketing( a comprehensive plan that focuses on reaching the
target audience from multiple platforms and channels),
Digital Marketing(Search engines, PPC, Content Marketing, Social media, Email
marketing, Mobile apps ,Text messaging, Web-based advertising)
SALES PROMOTION

A sales promotion is a marketing strategy in which a business uses a temporary


campaign or offer to increase interest or demand in its product or service.
Acc to AMA “Sales promotion is a set of marketing technologies aimed to
stimulate the demand in particular products and increase brand
awareness.”
OBJECTIVES OF SALES PROMOTION
• Launch a new product and Attract new clients
• Stay competitive and Make existing customers buy more
• Sell during off-season and Run clearance campaigns
METHODS OF CONSUMER SALES PROMOTION

• Free Sampling .
• Offer of Price discounts/price deals
• Money back and Rebates
• Free-standing insert (FSI) – A coupon booklet is inserted into the local
newspaper for delivery
• Gift Coupons or cash back coupons
• Mobile couponing
• Loyal customers Reward Points
• Price-pack/Bonus packs offers
METHODS OF TRADE SALES PROMOTION

 Trade contest – A contest is organized with an intention to reward retailers who


have sold big quantity of the product.
Offering Trade discounts – These are payments to distribution channel members
for performing a particular function or achieving a certain target.
Trade credit period – a bigger trade credit period is offered to the most loyal and
big dealer as an incentive.
Dealer loader – An incentive given to induce a retailer to purchase and display a
product. This is the reason we see some products displayed by the store some
better products may not be seen.
PERSONAL SELLING

• Personal selling is a face-to-face selling technique by which a


salesperson uses his or her interpersonal skills to persuade a customer
in buying a particular product. The salesperson tries to highlight various
features of the product to convince the customer that it will only add value.
There are following types of Personal Selling-
• Transactional selling- Negotiation strategy that focuses solely on making
a sale.
• Solution selling- A sales approach that focuses on your customers' needs
and pain points, and provides products and services that address the
underlying business problems.
CONTD..

• Consultative selling-a sales approach where reps act more like


advisers than salespeople.
• Provocative selling-Proactive selling is a sales approach that
actively identifies your prospects' questions, pinpoints their
problems, figures out their needs, and provides the necessary
answers and solutions without waiting for the prospects to ask
first
• Relationship Selling- a technique that prioritizes building a
connection with customers and potential buyers to close sales.
DIRECT MARKETING

Direct marketing is a form of communicating an offer, where


organizations communicate directly to a pre-selected customer
and supply a method for a direct response. Among practitioners,
it is also known as direct response marketing.
Emails, online adverts, flyers, database marketing, promotional
letters, newspapers, outdoor advertising, phone text messaging,
magazine adverts, coupons, phone calls, postcards, websites,
and catalog distribution are some examples of direct marketing
strategies.
EXAMPLES

• Coffee-giant Starbucks uses SMS direct marketing campaigns to connect with


its customers. The brand sends reminders about products, such as updates
when seasonal flavors, like summer frappuccinos, are back in stores.
Starbucks also created an SMS trivia game that offered customers a prize and
encouraged them to sign up for direct messaging notifications.
• Kit Kat used a direct marketing flyer ad offering their UK customers a free
chunky Kit Kat bar. The company claimed that the chocolate was “too
chunky” to fit in the mailbox. Recipients could exchange the flyer for a free
candy bar at their local shop. Each note looked handwritten and used the
customer’s name and address. This helped to make the direct marketing ad
more personal
PUBLICITY
TOOLS
Non-personal Press Releases
communication by third-
party sources regarding an Press Conferences
organization’s products
Special Events
and activities solicited by
company indirectly, Opinion Polls
without paying for it
Interviews
Is used by the company
solely to attract attention Contests
by creating newsworthy
Weblog Write-ups…
information
PUBLIC RELATION

• Public relations (PR) is the set of techniques and strategies related to


managing how information about an individual or company is
disseminated to the public, and especially the media.
• Its primary goals are to disseminate important company news or
events, maintain a brand image, and put a positive spin on negative
events to minimize their fallout.
• PR may occur in the form of a company press release, news conference,
interviews with journalists, social media posting, or other venues.
• #VogueEmpower
• COLGATE MAX FRESH
• KUNAL
INTRODUCTION TO INTEGRATED MARKETING
COMMUNICATION
• Integrated marketing is a strategy for delivering a
unified message across all the marketing channels
your brand uses. It provides consistency wherever
customers choose to interact with a company.
• The American Marketing Association defines IMC as “a
planning process designed to assure that all brand
contacts received by a customer or prospect for a
product, service, or organization are relevant to that
person and consistent over time.”
NEW DEFINITION OF IMC-BY DON
SCHULTZ OF NORTHWESTERN
UNIVERSITY

IMC
IMC isis aa strategic
strategic business
business
process
process used
used to to plan,
plan, develop,
develop,
execute
execute and
and evaluate
evaluate coordinated,
coordinated,
measurable,
measurable, persuasive
persuasive brand
brand
communication
communication programsprograms with
with
consumers,
consumers, customers,
customers, prospects
prospects
employees
employees and and other
other relevant
relevant
external
external and
and internal
internal audiences.
audiences. The
The goal
goal of
of IMC
IMC isis to
to
generate
generate short-term
short-term
financial
financial returns
returns and
and build
build
long-term
long-term brand
brand value.
value.
TRADITIONAL MARKETING APPROACH

Sales
Special
Point of promotion
events
purchase Interactive/
internet
marketing
Media
Packaging
Adver-
tising
Public
relations
Publicity Direct
Personal selling
response
TRADITIONAL MARKETING
APPROACH

• Marketing and promotional functions were planned and


managed separately with different budgets, different views
of the market, and different goals and objectives.
• Lacks coordination and consistency.
• Disconnected puzzle pieces
CONTEMPORARY IMC APPROACH

Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive/
internet Personal selling
Special
marketing events
CONTEMPORARY IMC APPROACH

• It calls for a centralized messaging function, so that


everything a company says and communicates a
common theme and positioning.
• Company’s marketing and promotional activities project
clarity, consistency, unified image in the marketplace
with maximum impact .
• Coordinated and connected puzzle pieces in a seamless fashion
to create an effective communications program.
• One voice, one message, one strategy
• Avoids duplication
• Synergy among promotional tools
• More efficient and effective marketing
CONTEMPORARY PERSPECTIVE OF IMC

Recognized
Recognized as
as aa business
business process
process

IMC
IMC Importance
Multiple
Multiple of
of relevant
relevant
Importancerelevant audience
audiences
relevant audience
audiences

Demand
Demand for
for accountability
accountability and
and
Demand
Demand for
for accountability
accountability
measurement
measurement ofof outcomes
outcomes
BEHIND THE GROWING IMPORTANCE
OF IMC
From Toward
Media
Media advertising
advertising Multiple
Multiple forms
forms of
of communication
communication

Mass
Mass media
media Specialized
Specialized media
media

Manufacturer
Manufacturer dominance
dominance Retailer
Retailer dominance
dominance

General
General focus
focus Data-based
Data-based marketing
marketing

Low
Low agency
agency accountability
accountability Greater
Greater agency
agency accountability
accountability

Traditional
Traditional compensation
compensation Performance-based
Performance-based compensation
compensation

Limited
Limited Internet
Internet availability
availability Widespread
Widespread Internet
Internet availability
availability
THE IMC PLANNING PROCESS
• Developing an integrated marketing communications plan
requires

Planning
Executing
Evaluating

Controlling
BASIC ELEMENTS OF A MARKETING
PLANNING PROCESS
1.
1. AA detailed
detailed marketing
marketing situation
situation analysis-
analysis-
environment,
environment, customer, competition ,,
customer, competition
company
company ,brand
,brand ,market
,market

2.
2. Specific
Specific marketing
marketing objectives
objectives (( sales
sales ,profit,
,profit,
mkt
mkt share
share ))

3.
3. AA marketing
marketing strategy
strategy (STP
(STP and
and Marketing
Marketing mix,
mix,
competitive
competitive strategy
strategy ))

4.
4. AA program
program for
for implementing
implementing the
the strategy
strategy

5.
5. AA process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance
IMC PLANNING PROCESS

1)-REVIEW OF MARKETING PLAN:.A marketing plan is a written document


describing the overall marketing strategy and programme developed for the
organization, a particular product line or a brand. Broadly includes :-
• Macro environment changes
• Consumer characteristics changes
• Competition changes
• Target market broadening
• Need for change in Positioning
• Image building
2)-PROMOTIONAL PROGRAMME
SITUATIONAL ANALYSIS
• Internal analysis: Changes in target markets to be attracted/new segments
needing changes in target audience in communication ?
• Changes in positioning /repositioning needed to be communicated ?
• Changes in marketing mix that need to be communicated?
• External analysis:
• Changes in environment needing change in communication?
• Changes in consumer behavior needing change in communication strategies?
• Changes in competitive situation needing change in communication ?
CONTD..

3)-ANALYSIS OF COMMUNICATION PROCESS-This stage involves to


know how the company can effectively communicate with consumers in
its target market. It involves the communication decision regarding the
use of various sources, messages and channel factors.
4)-BUDGET DETERMINATION-Budget determination procedure
involves selecting the various budgeting ap­proaches(Competitive parity,
Percentage of sales, Top down approach etc) and integrating them. At
this stage, the budget is often tentative. It may not be finalized until
specific promotional mix strategies are developed.
5)-DEVELOPING THE INTEGRATED MARKETING
COMMUNICATIONS PROGRAMME-

a)-At this stage, decisions are made regarding the role and importance of
each element and their coordination with one another.
b)-Each promotional mix element has its own set of objectives and a
budget and strategy for meeting them.
c)-Media strategy involves determining which communications channels
will be used to deliver the advertising message to the target audience.
d)-Decisions must be made regarding which types of media will be used
PROMOTIONAL TOOLS

7. EVENT AND EXPERIENCES –relevant,engaging,softsell.


8. PRODUCT DESIGN – and packaging and brand name acts as silent
salesmen.
9. ONLINE ADVERTISING – internet users few, but interactive.
10. WORD OF MOUTH– Influential,personal,timely.need to be stimulated
through proper identification of opinion leaders
CONT..

6)-INTEGRATE AND IMPLEMENT MARKETING


COMMUNICATION STRATEGIES
Once the message and media strategies have been
determined, steps must be taken to implement them. Most
large companies hire advertising agencies to plan and
produce their messages and to evaluate and purchase the
media that will carry their advertisement.
7)-MONITORING, EVALUATION, AND CONTROL

• To determine how well the promotional program is meeting


communications objectives and helping the firm accomplish its
overall marketing goals and objectives.
• The promotional planner wants to know not only how well the
promotional program is doing but also why.
• to provide managers with continual feedback concerning the
effectiveness of the promotional program, which in turn can be used
as input into the planning process
AUDIENCE TOUCHPOINT

• A touchpoint is any time a potential customer or consumer comes in


contact with the brand–before, during, or after they purchase from
the marketer, for example, buyer's journey might include touchpoints such
as an advertisement, a visit to a website, a visit to a store where there's a
human interaction,it has five stages: awareness, consideration, decision,
action, and loyalty (retention and advocacy).
Acc. To Christopher “Touchpoint also referred as contact point, point of contact,
is business jargon for any encounter where customers and business
engage to exchange information, provide service, or handle
transactions
AUDIENCE CONTACTS/TOUCHPOINTS

A contact or a touch point refers to each and every


opportunity the customer has to see/hear about the company
and/or its brands or have an encounter/experience with it.

Unexpected touch
Company created Intrinsic touch points: Are Customer initiated
touch points: are points: interactions unanticipated touch points: occur
planned mktg that occur with the references or when the customer
communication co/brand during information about a contacts the
messages created by buying or using. Eg company or a brand company. E.g. call
co such as that a company or
interactions with prospect receives centre,website,email
Advertising,website retail sales or CSR, beyond org control.
s,brochures etc product use E.g. WOM
AUDIENCE TOUCHPOINT
MOMENT OF TRUTH

• Moment of truth in marketing, is the moment when a customer/user


interacts with a brand, product or service to form or change an
impression about that particular brand, product or service. In 2005 A.G.
Lafley Chairman, President & CEO of Procter & Gamble coined "Moments
of Truth“.
• To effectively manage customers, organizations must be concerned with
the entire experience a customer has with a company. While much of the
value sought by customers is obtained directly from the consumption or
use of goods or services they purchase (i.e., offers benefits that address a
need), customers’ satisfaction is not limited to direct product benefits ..
TYPES OF MOMENT OF TRUTH

• First moment of truth (FMOT): When a customer is first confronted with the
product, taking place either offline or online. It occurs within the first 3-7 seconds of
a consumer encountering the product and it is during this time that marketers have
the capability of turning a browser into a buyer.[Procter & Gamble describe the first
moment of truth as the "moment a consumer chooses a product over the other
competitors offerings".
• Second moment of truth (SMOT): When a customer purchases a product and
experiences its quality as per the promise of the brand. There can be multiple
second moments of truth for every time the product is consumed (used), providing
the consumer with information for future purchases and for sharing their experience
with the product/service.
• Third moment of truth (TMOT): When consumers give feedback or reactions
towards a brand, product or service, i.e., consumer becomes brand advocate and
gives back via word of mouth or social media publishing.
CONTD…

• Zero moment of truth (ZMOT) is a term coined by Google in 2011, it refers to


the research which is conducted online about a product or service before taking
any action, i.e., searching for mobile reviews before making a purchase. The
Internet has changed altogether the way consumers are interacting with brands,
products or services. This online decision-making moment is termed as ZMOT.
According to research conducted by Google, 88% of US customers are
researching online before actually buying the product.
• The less than Zero Moment of truth (<ZMOT) is a term started by eventricity
Ltd in 2014,referring to the time between an Event in a Customer's life
happening and the point at which they decide to research a purchase (ZMOT)
THEORIES OF ADVERTISING

• The switch from printed ads to the digital technology driven ads in the 21 st century
has been rapid and flamboyant.
• Advertising has to be innovative, expressive, and inspiring for people to pay
attention to it, which integrates delivering messages and choosing correct and
optimal media in reaching to its targeted audience
• Advertising has various objectives including communicating with potential
customers and prompting them to purchase a particular product.
• The advertising theories illustrate how and why advertising is effective in influencing
the customers behavior and accomplishing its objectives. There are various theories
on advertising and most of them propagate that the success of advertising is
controlled by the main practices being carried out which include frequent brand
exposure and repetitive advertising.
HIERARCHY OF EFFECTS MODEL

The theory was first raised by Robert J. Lavidge and Gary. Steiner in their article entitled “A
Model for Predictive Measurements of Advertising Effectiveness,” which was published in
1961. It has now been used as a sophisticated advertising strategy to build up brand
awareness and has branched off into many different variations.
What is the Hierarchy of Effects?
• The hierarchy of effects is a theory that discusses the impact of advertising on
customers’ decision-making on purchasing certain products and brands. The theory
covers a series of stages that advertisers should follow, from gaining customers’
awareness to the final purchase behavior. It consists of three major stages: the Cognitive
stage (awareness, knowledge); the Affective stage (liking, preference, conviction); and
the Behavioral stage (purchase).
STAGES OF HIERARCHY OF EFFECTS

1. Awareness-Gaining consumer awareness is the starting point of the entire


process. For example, if a consumer intends to purchase a smartphone, the
marketing team of a phone brand must make that potential consumer aware
of the brand’s existence through its advertising. At the awareness stage, the
consumer notices the brand but with very limited knowledge about it.
2. Knowledge-After being aware of a brand, the consumer will start to
evaluate whether the product under the particular brand can meet his/her
needs and how it is compared to other products and brands. It is essential to
ensure that sufficient information is available to consumers for them to know
the brand well so that they can move to the next stage.
CONTD..

3.Liking-At the liking stage, the process moves from cognitive to affective
behavior. A brand brings emotional comforts to consumers, and consumers
form positive perspectives on the brand. For example, the smartphone
consumer might like the good-looking design or find the HD camera of a
phone more appealing as compared to other attributes of the phone.
4. Preference-Although there are features that consumers like about a
brand, they might also appreciate certain characteristics of other brands.
At the preference stage, the brand needs to differentiate itself from other
products and gain consumer preference over its competitors.
CONTD..

5. Conviction-Conviction is the decision-making stage where the consumers’


positive feelings of a brand convert to the certainty of buying. Consumers settle
their doubts and stop moving back and forth between brands at this point.
6. Purchase-Purchase is the final stage of the hierarchy where consumers
make the action to purchase. It is essential to provide a positive purchasing
experience to consumers, e.g., offering pre-order choices, instructions of usage,
or a guarantee of post-sales support. Such efforts may encourage consumers to
purchase in larger amounts or stick to the same brand for the next purchase.
• A
• I
• D
AIDA THEORY/MODEL OF ADVERTISING

• The AIDA concept was developed by American businessman Elias


St. Elmo Lewis in 1898. Lewis was an advertising advocate who wrote
and spoke often about advertising's potential. This model describes a
series of steps or stages that customers follow when making
purchasing decisions.
• The AIDA Model, which stands for Attention, Interest, Desire,
and Action model, is an advertising effect model that identifies the
stages that an individual goes through during the process of purchasing
a product or service. The AIDA model is commonly used in digital
marketing, sales strategies, and public relations campaigns.
AWARENESS-In the first stage, a consumer comes across the Brand. This
can be through an advertisement or word-of-mouth or a kiosk displaying
products and more popularly these days, through sponsored content.
Thus a brand can gain the attention of consumers through:
• Captivating ads
• Personalized messaging
• Intelligent targeting
Example: A food delivery app targeting the youth should invest in being
highly active online on social media than on print ads.
MINI COOPER(OWNED BY BAYERISCHE MOTOREN
WERKE), TO ATTRACT MORE EYES AND ATTENTION,
USED A QUIRKY GUERILLA MARKETING STRATEGY OF
PLACING GIANT CARDBOARD CARTONS WITH TORN GIFT
WRAPPING ON THE STREETS OF AMSTERDAM.
CONTD…

Interest- Undoubtedly, the most crucial of the stages. If the consumer feels the
product has no meaning for him or if he does not find it captivating enough, he will
never reach the purchase stage. So it is important to deliver your product message
in a customized and crisp way that suits the profile of the intended audience.
Example-Lionel Messi’s picture initially attracts the consumer, the intended
audience being sports (especially football) enthusiasts. The contrasting colours of
the shoe and matching caption convey that it’s a shoe advertisement. The shoe
appears to be emitting sparks (representing fast performance), and the caption
contains the same imagery. So the consumer gets curious and looks up what
exactly does the campaign refer to and how can ‘that spark’ be added to the team.
At this point, considerable interest has been generated and the consumer has most
likely read up the features of the shoe.
CONTD..

• Desire-It is not enough to generate interest. A keen liking for how a brand presents
itself may be highly appreciated, but may not necessarily convert in sales.Interest and
Desire can be achieved simultaneously. So immediately after interest is generated, it is
important to convey to the audience why they need it. If a customer might not actually
NEED that product, the brand can try to create the WANT for it.
• Action-Finally, when the consumer has had a positive disposition towards the brand,
he/she will be willing to try it or buy it. At this stage, schemes like early-bird discounts,
free trials, one-on-one offers, referral systems, etc. can give that one final push to the
consumer to go ahead and buy it.
• For example, Amazon encourages purchases through its ‘EMI options’. That enables
consumers to buy durables and gadgets even when they’re running on a tight budget.
DAGMAR APPROACH

• DAGMAR is an advertising model proposed by Russell Colley in 1961. Russell


Colley advocated that effective advertising seeks to communicate rather than to
sell. Advertisers discover whether their message conveyed enough information
and understanding of a product to their consumers and also its respective
benefits from clear objectives.
• DAGMAR is a marketing expression that stands for “Defining Advertising Goals
for Measured Advertising Results”. It is a marketing tool to compute the results
of an advertising campaign. According to this approach, every purchase
encounters four steps; Awareness, Comprehension, Conviction, and Action.
DAGMAR method is an established technique of creating effective advertising.
DAGMAR MODEL OBJECTIVES

• 1. Awareness-Awareness is a prime aspect of creating a positive


impression in customers’ minds. Before buying a product, the customer
should know the brand, new product launch, and new offers.
• 2. Comprehension-Awareness alone cannot result in effective
advertisement results. The company needs to comprehend (detail) the
product information. Additionally, it needs to supply relevant
information about the product features.For example, Dell, a technology
company, is launching an advertisement for its new laptop. They
highlight the laptop features like enhanced processors, a protected
screen, and improved storage.
• 3. Conviction
• Here, the customers will decide whether they should buy the product or
not. They often make choices through comparison with similar
products. Then, if the customer finds the product interesting and
worthy, they might try it. At this stage, the advertisement tries to
convey its message to the target audience. For example, in 2020,
Facebook Meta, another technology company, projected an
advertisement where two users helped a lady to start her own
business. Slowly, many users joined hands and helped her grow her
shop with the help of Facebook.
4. Action-The final step is to enact the buying decision. This
step motivates the customers to buy the product.For
example, before launching a new iPhone, Apple, a company
specializing in consumer electronics, tries to push its ads
among the target audience. As a result, it creates hype
about the product. So, the customer buys the product if they
find it interesting.
DAGMAR EXAMPLE

In 2014, a soft drink company, Coca-Cola, devised a twist advertisement campaign


to deliver a beautiful message. They manufactured coke bottles that would open
when two people twisted them. Earlier, people were shy to make friends, but after
this initiative, they had to talk with others to open the bottle. Here, Coca-Cola
targeted college students.
• Thus, there were many coke vending machines installed in Australian institutions.
Students brought the coke bottle but were confused with the opening
system. After realizing the twist, they reached out to another classmate for help.
With this process, they started making friends.In this manner, the company hit its
advertising objective of encouraging coke sales by creating bonds between
people. As a result, they were successful in achieving their campaign goals.
FCB GRID

• In 1980, Richard Vaughn, along with his associates, suggested the FCB Model. He
was the Senior Vice President of FCB (Foote, Cone and Belding) Advertising company
at that time. This model was designed with the help of the theory of the right or left
brain. As the right brain of a human body indicates the emotional attribute, so is
the feeling factor of this model does. Also, as the left brain signifies the rational
behaviour of human beings, the thinking element on the left side of the matrix does
the same.
• The FCB grid or Foote, Cone and Belding model is an integrative approach to interpret
the consumer’s buying behaviour and its implication for adopting suitable advertising
strategy. It is depicted on a matrix with the help of four significant factors, i.e.,
thinking, feeling, high involvement and low involvement.
QUADRANTS OF FCB GRID

Informative (Quadrant 1):The expensive products having a high level of


importance to the consumers and requires intense thinking for decision-
making, lies in this category.The prospective buyer first learns or gathers
complete information about the product; then, he/she feels the need of buying
it; and later makes the final purchase. EX- Life insurance,MF
Affective (Quadrant 2): The valuable products which hold an emotional
attribute and requires consumer engagement are considered to be affective
products.The buyer follows a feel, learn and do order. That is he/she first
develops a connection with the brand or the product; gains complete
knowledge of it; finally buys it. Ex- Holiday package, Groom & Bridal Outfit
• Habitual (Quadrant 3): This category of products includes everyday
essentials. Thus, the customer experiences a low involvement but
analytical decision making while purchasing these items.The buyer first
obtains the product; tries it out and determines whether it solves the
purpose or not; then develops a trust in the brand. Ex-FMCG
• Satisfaction (Quadrant 4): The products whose purchase is driven
by the emotions; however, the buying decision does not require much
consumer involvement, lies in this quadrant.The consumer buys the
product; feels positive or negative about the purchase; and then learns
about the product. Ex- Coffee at Starbucks,CCD
• Smoking
• Eating meat
• Doing household chores
• Supporting fast fashion
THEORY OF COGNITIVE DISSONANCE IN
ADVERTISING
The theory of cognitive dissonance was molded by Leon Festinger at the beginning of
the 1950s. It suggests that inconsistencies among cognitions (i.e., knowledge,
opinion, or belief about the environment, oneself, or one's behavior) generate
an uncomfortable motivating feeling (i.e., the cognitive dissonance state).
The term cognitive dissonance is used to describe the mental discomfort that results
from holding two conflicting beliefs, values, or attitudes. People tend to seek
consistency in their attitudes and perceptions, so this conflict causes feelings of unease
or discomfort.
• The American Psychological Association defines cognitive dissonance as "an
unpleasant psychological state resulting from inconsistency between two or more
elements in a cognitive system. Example- You want to be healthy, but you don't
exercise regularly or eat a nutritious diet. You feel guilty as a result.
CONTD…

• Cognitive dissonance in marketing is connected to consumers' feelings towards a


particular brand, their expectations, and perceptions when seeking to purchase a
commodity. Therefore, marketers have to identify the possible conflicts, perceptions,
or expectations from new consumers that may prevent them from buying the
commodity. Marketers can then draft ways to counter the customers' beliefs and
perceptions that may negatively affect their buying decisions.
• For instance, a new customer may have a perception that smart televisions may be
prone to hacking through the TV's built-in camera for facial recognition and
microphone for voice recognition. In this instance, the customer believes that smart
TVs are prone to access by hackers. The marketer can use cognitive dissonance by
convincing the customer of the advantages of smart TVs over regular or traditional
ones, such as their ability to use the internet; hence, there is no need for an antenna
cable, allowing for access to many channels. The marketer in this situation should
frame the product in a way that makes the people who do not purchase it look like
hypocrites because of the many obvious advantages over other brands or competitors
WAYS COGNITIVE DISSONANCE IS
ADDRESSED IN ADVERTISING
• Post-Purchase Rationalization: Advertisers may use messaging that reinforces the positive aspects of a product
after a purchase. This helps consumers justify their decision and align their attitudes with their behavior. For example,
an advertisement might highlight the unique features or benefits of a product to make consumers feel more confident
about their purchase.
• Comparative Advertising: Advertisers might use comparative advertising to show that their product is superior to
competing products.
• Testimonials and Reviews: Including positive testimonials or reviews in advertisements can help consumers feel
more comfortable with their choice.
• Promotional Offers and Discounts: Advertisers may use promotions, discounts, or special offers to make
consumers feel that they have gained value from their purchase.
• Encouraging Commitment: Advertisers may encourage consumers to make public commitments or take additional
steps after a purchase, such as joining a loyalty program or sharing their experience on social media.
• Reframing Expectations: Advertisers may shape consumers' expectations about a product in a way that aligns with
the actual experience they are likely to have. This helps to avoid a significant gap between pre-purchase expectations
and post-purchase reality, reducing cognitive dissonance.
• Testimonial
• T2
• Dove
• Mamaearth
• Lodha
• Digital India
• DI2
INNOVATION ADOPTION MODEL

• According to Everett M. Rogers, this model of communication evolved


from work on the diffusion of innovations. The model depicts various
sequential steps and stages that a consumer moves through in
adopting a new product or service.
• Marketers face the challenge of creating awareness and interest and
the best way to persuade consumers to evaluate a brand is by inducing
product trial or sometimes product-in-use demonstration. This can lead
to product adoption as a result of consumer satisfaction or rejection if
the consumer is not satisfied.
THE INFORMATION PROCESSING MODEL

• Information processing model of advertising affects developed by


William McGuire. This model assumes the receiver in a persuasive
communication situation like advertising is an information processor or
problem solver. He goes through in being persuaded which constitutes
a response hierarchy. According to these models, our brain receives,
interprets, and uses information in stages corresponding to different
steps in the information processing system.
• The various steps like presentation, attention, comprehension, yielding,
retention & the behavior are present in information processing model.
ROLE OF ADVERTISING IN THE THE
MARKETING PROCESS
Marketing and Promotions Process Model
MARKETING STRATEGY AND ANALYSIS WRT
ADVERTISING
• A marketing strategy is a long-term plan for achieving
a company's goals by understanding the needs of
customers and creating a distinct and sustainable
competitive advantage. It encompasses everything from
determining who your customers are to deciding what
channels you use to reach those customers.
• Acc. To Kotler “Marketing strategy is the basic approach
that the business unit will use to attain its goals and which
comprises of elaborate decisions (strategies) on largest
markets, market positioning and mix and marketing
MARKETING ANALYSIS WRT ADVERTISING

• Market analysis is a process of assessing and identifying various internal and


external factors and conditions in a given market, or within a specific market
niche. Some key insights you might gain from market analysis when framing
advertising objectives and strategies:-
• The size of the market and the distribution of market share
• The major trends in the market and potential market challenges
• The market demographics and customer behavior patterns
• The most important competitors and what strategies they use
• The most important opportunities, biggest risks, and goals you might pursue
TOOLS FOR MARKETING STARTEGY ANALYSIS

Opportunity Analysis
Competitive Analysis
SWOT Analysis
PESTEL Analysis
TARGETING WRT ADVERTISING

Targeting is the process through which an advertiser identifies its


target audience and then advertises to them through a variety
of channels.
CATEGORIES OF TARGETING

1. Undifferentiated -Often referred to as mass marketing,


the undifferentiated strategy basically ignores the
differences between market segments and treats the entire
market as a single target.Ex-IKEA, the Swedish furniture and
homeware retailer.
2. Differentiated -It’s also known as ‘segmented’ marketing
and entails isolating a number of (generally two or more)
primary target segments that have the most potential value
for the company.Ex-Nike’s products are specifically
manufactured and promoted to reach distinct market
CONTD..

• Concentrated -Concentrated marketing is often called ‘niche


marketing’, a marketing segmentation strategy in which the firm
concentrates its entire efforts and resources on serving one segment of
the market. Ex-Nirma only for less income groups.
• Individual and local-It is meant to cater the local needs of the
employees.Ex-Karachi Biscuits,Local Cafe’s
MARKET SEGMENTATION WRT ADVERTISING

Market segmentation is a process that consists of sectioning the


target market into smaller groups that share similar
characteristics, such as age, income, personality traits, behavior,
interests, needs or location.
Segmentation helps marketers to be more efficient in terms
of time, money and other resources.
Market segmentation allows companies to learn about their
customers
. They gain a better understanding of customer's needs and wants
and therefore can tailor campaigns to customer segments most
likely to purchase products.
MARKET POSITIONING

• Market Positioning refers to the ability to influence


consumer perception regarding a brand or product
relative to competitors.
• Advertiser core objective while using positioning is to
establish the image or identity of a brand or product so that
consumers perceive it in a certain way.
Examples-Nike positioning as sports brand ,Tata as a brand of
trust ,Mercedes and BMW as performance ,positioning also
encompasses placing the product in the mindset of the
consumers which Bata and Nestle Maggi brands positions in
their respective customer mindset.
DEVELOPING A POSITIONING STRATEGY FOR
ADVERTISING
David Aaker and J.Gary Shansby categories into six heads :-
 Positioning by Product attributes and Benefits(Apple)
 Positioning by Price/Quality(Mercedes)
 Positioning by Use or Application(Cadbury during festivals)
 Positioning by Product class (Ex-Lo’real shampoo with conditioner as sales
promotion tool)
 Positioning by Product user(Ex-Sensodyne with dentist)
 Positioning by Competitor (Mercedez vs Lexus in US market)(Pepsi vs Coke)
MARKETING MIX WRT ADVERTISING

• The marketing mix is the set of controllable, tactical marketing tools


that a company uses to produce a desired response from its target
market. Advertiser uses the 4 P’s in accordance with the given market .It
consists of everything that a company can do to influence demand for its
product.
• Product
• Price
• Place (or distribution)
• Promotion

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