Download Decision Stage - Media Center Imac

ADVERTISING PLANNING &
STRATEGY
BEFORE DEVELOPING THE
ADVERTISEMENT…LET US REVIEW THE
MARKETING PLAN
1. Product Description – What are you Marketing?
2. Market Assessment – What is your overall assessment of
the market where you compete?
3. Source of Business – Where do you expect business to
come from?
4. Competitors – What is your competition and how does it
position itself?
5. Marketing Objectives – What are the marketing
objectives of the brand?
STRATEGIC PLANNING PROCESS
SELECTING THE TARGET AUDIENCE
UNDERSTANDING TARGET
AUDIENCE DECISION MAKING
DETERMINING THE BEST POSITIONING
DEVELOPING A
COMMUNICATION STRATEGY
SETTING A MEDIA STRATEGY
STEP 1 – SELECTING TARGET AUDIENCE
PROFILING A TARGET AUDIENCE
1. Demographics - These are easy to identify but not always
enough to describe a target audience.
>>Age
>>Education
>>Income
>>Place of Residence
>>Gender
2. Geographics – It addresses the country, climate, region and
state of the target audience. It considers the characteristics of
people living in a particular area. However, like Demographics, it
should never be used as primary selection criteria for a target
audience.
PROFILING A TARGET AUDIENCE
3. Psychographics – It defines the target audience in terms of
values, attitudes and lifestyle. Examples can be someone’s
attitude towards western wear, willingness to take risk, concern
about the society and environment, political opinions, etc.
>>Concept of Personality Traits : Self-esteem, intelligence, and
introversion/ extroversion.
>An ad says – “95% of the doctors believe that sodium is
good for your teeth…..our toothpaste contains sodium”
(intelligence).
>Eg : “Bindas Bol”.
AWARENESS AND ATTITUDE CONSIDERATIONS
FOR TARGET AUDIENCE BUYER GROUPS
Buyer Group
Awareness & Attitude Considerations
Users
Brand Loyal • Highest awareness
• Most positive brand attitude, likely to
immunize against competitive message
Favorable Brand Switchers • Awareness should be high, but must be
measured
• Positive brand attitude, but only moderate
preference
Non-users
Other brand switchers • May or may not be aware
• Neutral or positive attitude
Other Brand Loyal • May or may not be aware
• Strong positive attitude for loyal brand likely
will immunize against our message
LOYALTY IN TARGET AUDIENCE
SELECTION
Loyal – highly satisfied with their brand and are unlikely to
switch
Vulnerable – Satisfied with their brand, but little perceived risk
in switching
Frustrated – Not satisfied with their brand, but feel the risk is
greater than the potential gain in switching
Switchable – Neither satisfied with their brand nor inhibited from
switching
LOYALTY IN TARGET AUDIENCE
SELECTION
Satisfaction
High
High
Low
Risk In Switching
Low
FRUSTATED
LOYALS
SWITCHABLE
VULNERABLE
COST IMPLICATION & BRAND LOYALTY
1. Loyal
I. Our Brand Loyal
> Inexpensive to maintain; need to remind them of their positive
attitude towards the brand, reinforcing brand equity.
> However, if we want to increase their usage, that could be
expensive.
II. Other Brand Loyal
> Beyond the reach of our brand and they do not have sufficiently
positive motivation to try our brand.
> Giving the product free of cost so that they try our brand may
also not ensure the usage.
> Expensive products and those with longer purchase cycles
would present too high a cost and risk
COST IMPLICATION & BRAND LOYALTY
2. Vulnerable
I. Our Brand Vulnerable
> They have a positive attitude towards our brand but do not see
it better than some other brands.
> Maintaining positive attitude is easy but to retain or increase
their usage will cost more as the brand shall be competing with
other favorable brands.
II. Other Brand Vulnerable
> Their disposition to try other brands keeps them from being
very costly, unless they have tried and rejected our brand.
> Try to provide an incentive for trial
COST IMPLICATION & BRAND LOYALTY
3. Frustrated
I. Our Brand Frustrated
> Maintaining the current usage will be inexpensive (due to
whatever perceived risk) but to increase brand equity, usage and
satisfaction will be expensive.
II. Other Brand Frustrated
> Attracting them to our brand will be expensive (due to whatever
perceived risk) .
Advertisements and promotions shall be planned to break
those perceived risks and barriers.
COST IMPLICATION & BRAND LOYALTY
4. Switchable
I. Our Brand Switchable
> Excessive advertisement and promotion shall be done to retain
or increase usage.
> Strengthening the Brand Image is very important
II. Other Brand Switchable
> Attracting them to our brand will be as expensive as retaining
our brand switchable, assuming they have not tried and rejected
our brand.
COST IMPLICATION IN TARGET AUDIENCE
SELECTION
Loyalty
Grouping
Cost to Protect
Users
Cost to Attract
Non-users
Loyal
Low
Very high
Vulnerable
Low-moderate
Moderate-high
Frustrated
Moderate
Moderate
Switchable
Moderate-high
Moderate-high
SEGMENTATION
Primary use of segmentation is in defining a target market and
not a target audience.
Segmentation is defined as “the division of a mass market into
distinct groups which have common characteristics, needs, and
similar responses to marketing action.”
Once the target market is selected, we must identify the target
audience. The variable which is used here is ‘attitude’ towards
product category and brand.
While selecting the target audience, we are looking for groups of
people in the target market who hold relatively similar attitudes
towards category usage and brands within the category.
LINKING TARGET AUDIENCE & STRATEGY
Target audience selection will determine whether we are looking
at customers or non-customers, and this in turn will determine
whether the target audience action objective is trial, repeat
purchase or increase usage. All this shall become a part of the
strategic communication planning.
Communication Strategy for trial will be different from that
driving repeat purchase.
For Trial – Coupons, rebates, refunds and sampling
For Repeat – Loyalty cards, games and contests, premiums
Communication Strategy for different loyalty groupings will be
different for different groups as well as for customers and noncustomers.
CASE STUDY
Eurostar – How Mr. JetSet Made Eurostar Mean Business
STEP 2 – UNDERSTANDING TARGET
AUDIENCE DECISION MAKING
At this stage the Marketing Manager / Adv. Manager tries to
understand how the consumers go about making decisions to buy
products or utilize services.
There are mainly two models of consumer decision making:
1. Behavioral Process
The proponents of this theory believe that it is impossible to
understand what is going on inside a consumer’s mind. They rely
upon analysis of observations or self-reports of actual behavior.
Accordingly they try to create positive associations. Eg.
2. Cognitive Process
This process tries to understand what is going on inside a
consumer’s mind while making a purchase decision.
(Need – Information Search & Evaluation – Purchase – Post
Purchase Evaluation)
BEHAVIORAL SEQUENCE MODEL
Introduced by Rossiter & Percy, it is based on cognitive process
models of buyer behavior.
One needs to determine decision stages, then for each stage
establish:
>> Individuals involved and the roles they play
>> Probable location
>> Timing
>> Description of how it is accomplished
The completed model guides positioning, communication strategy
& Media Strategy.
(((At the end of the lecture students shall be able to understand
and develop Behavioral Sequence Model for various purchase
decisions of products or services. )))
DECISION PARTICIPANTS
In order to understand the process how consumers reach buying
decisions, one must understand who is involved in that decision.
There are five potential roles people can play in decisions leading
to purchase:
1. Initiator – One who suggests the purchase
2. Influencer – Who recommends or discourages the purchase
3. Decider – Who makes the actual choice
4. Purchaser – Who does the actual purchasing
5. User – Who uses or consumes the product or service
It is important to understand them because advertising and other
marketing communication is not just aimed at individuals but at
individuals in a role.
ROLES & MESSAGE OBJECTIVE
Different messages are required for people playing different roles
in marketing communication.
The communication objective remains the same but the
communication message is different for different participants.
Eg: In planning a holiday both travel agents and friends might act
as initiators or influencers but the marketing messages are
different for both of them.
DECISION PARTICIPANT GRID
Many a times a single individual can play all the decision
participants role and many a times more people are involved in
the purchase decision (Eg. A student buying a chocolate himself).
At many occasions, the providers of the product or service are also
decision participants.
Grid For a Holiday
Role in Decision
Target Audience
Consumer
Provider
Initiator
Self, friends, family
Travel Agent
Influencer
Self, friends, family
Agent, Resorts, and
destinations
Decider
Self, companion
Purchaser
Self, companion
User
Self, companion
Travel agent
DEVELOPING TARGET AUDIENCE
DECISION MAKING MODEL
Once the decision participants are identified, the next step is to
see how the roles played by them relate to the decision process
itself.
This model utilizes a grid which requires to identify the probable
stages (Need Arousal – Evaluate Options – Purchase – Usage –
Post Purchase Evaluation) in decision making, and then for each
stage determine:
who is involved; where that stage in the decision is likely to occur;
when each stage occurs in relation to other decision stages; and
how that stage is likely to occur.
TARGET AUDIENCE DECISION MAKING
MODEL
Decision Stage
Need Arousal
Individuals
Involved &
Decision Roles
Where stage is
likely to occur.
Timing of stage
How stage is
likely to occur
Brand
Consideration
Purchase
Usage
DECISION STAGES
Need Recognition
Search
Alternative Evaluation
Purchase
Usage
DECISION STAGES
Decision stages are different for different brands and different
product category. It is not necessary that all the decision stages
will occur with every product.
Eg. FMCG Products amongst brand loyal.
>>> Decision Stages in Low Involvement versus High
Involvement Products
DECISION ROLES
Once we identify the decision stages for consumers making
choices in a category, we must identify everyone who might play a
part in the decision process, and the role or roles they play at each
decision stage..
Where the Decision Stage is Likely to Occur?
>>This understanding helps in better Media Planning Decisions
and where to place the ads.
Timing of the Decision Stage?
>>This understanding helps in deciding when to schedule our ads
in media?
How the Decision Stage is Likely to Occur?
>>Understanding how a decision stage will occur is the first step
towards establishing a positioning strategy.
TARGET AUDIENCE DECISION MAKING
GRID FOR A HOLIDAY
Refer Distributed Sheet
STEP 3: DETERMINING THE BEST
POSITIONING
Positioning strategy is the choice of target market segments,
which determine where the business competes, and the choice of
differential advantage, which dictates how it competes.
Where you want to compete? – Identifying the target market….
How you want to compete? – Serving the target market more
effectively….
STEP 3: DETERMINING THE BEST
POSITIONING
Marketing Mix – All those variables a marketer controls, and
which are used to achieve the marketing objectives of the
company. These are divided into following four groups:
1. Product – A product is an item that satisfies what a consumer
demands
2. Price – It is the amount a customer pays for the product. The
Marketer must be aware of the Customer Perceived Value.
3. Promotion - All of the methods of communication that a
marketer may use to provide information to different parties
about the product. Promotion comprises elements such
as: advertising, public relations, sales organisation and sales
promotion.
4. Place - Refers to providing the product at a place which is
convenient for consumers to access.
MARKETING MIX AND POSITIONING
High
BRAND
‘D’
P
R
I
C
E
BRAND
‘C’
BRAND
‘E’
BRAND
‘A’
BRAND
‘B’
Low
Few
PRODUCT FEATURES
Many
MARKETING MIX AND POSITIONING
All the components of the marketing mix must be understood in
order to develop the positioning and communication strategy.
To achieve the marketing objectives the company must know as
much knowledge as possible about the market.
>>How the competitors are positioned in the market??
>>How the company’s product / service is positioned currently in
the market??
>>What benefit the consumers are seeking in the market??
MARKETING MIX AND POSITIONING
Overall the Marketing Mix shall be seen as providing ‘consumervalue’. These benefits the consumer will relate to their
underlying motivations and will take action accordingly.
Product / Service must provide attributes that are seen as
offering particular benefits to the consumer.
Price must be seen within the context of a price-value
relationship.
Place or Distribution must provide convenient access to the
product as well as positive store image.
Promotion will alert the consumer to these potential benefits
IDENTIFYING AND DEFINING THE MARKET
Markets are defined on the basis of consumer’s perception about a
particular category of product and not how we define the market.
The reason to understand how markets are defined is that it
permits to make more effective positioning decisions for new
products; else the brand might fall under cannibalization. Eg. Soft
drinks.
There might not be a need to launch a new product in the same
category. Eg. Nestle’s frozen pizzas; Chocolate Lux.
WAYS TO DEFINE A MARKET
The most traditional way of describing markets is simply to look
at broad category and then break it down by whatever
characteristics of the product make sense.
Few ways of defining a ‘Market’ :
1. Cross Elasticity – When the Change in price of one brand
influences the sales of other brand, they may be considered
substitutable, and therefore a part of the same market.
Eg: Reliance's Positioning strategies in telecom market.
WAYS TO DEFINE A MARKET
2. Perceived Similarity – It is a way of looking at markets in
terms of how consumers perceive the brands in a particular
category.
Consumers are asked to list down the products they use for a
particular task or in a particular situation. Products that are felt
to be appropriate for the same usage situation are considered as
similar, hence defining a market. Eg. Alcohols, Perfumes, Cars
etc.
While there are methods to understand what similarities
consumers see in a particular category, it is difficult to
understand how consumers are defining this market.
‘Perceived similarity’ is more important in showing a relation
between products than in defining markets.
WAYS TO DEFINE A MARKET
3. Hierarchical Market Definition
It assumes that the consumers look at the characteristics of a
product in a particular order. In marketing it is termed as
Partitioning a market.
When consumers are asked to describe how products in a category
differ they tend to reply in terms of four general characteristics:
1. Type of product – What kind of product it is?
2. End Benefit – Why do you consume/use it?
3. Usage Situation – When do you consume it?
4. Brand name – Differences amongst various brands available?
Take the example of cars….
WAYS TO DEFINE A MARKET
Knowing the answer of these questions will help the marketing
manager to understand how consumers see a particular product
market and how they define the market.
Eg – Coffee market
SEEKING A DIFFERENTIAL ADVANTAGE
In the first half we have tried to identify the market where we
have to compete in the second half we shall try to understand why
the target audience wants the product or service offered by the
market.
For consumers, brands exist to satisfy a need, and it is this need
that defines the product category for them. It doesn’t matter how
the marketer sees a particular category.
INITIAL POSITIONING DECISIONS
BRAND
“how should the
brand be positioned
with regard to the
product category?”
“whether the
brand’s position in
relation to other
brands should be in
terms of ‘product
users’ or the
‘product itself’.
INITIAL POSITIONING DECISIONS HOW TO POSITION THE BRAND IN RELATION TO THE
PRODUCT CATEGORY???
Category based positioning can be
1. Centrally Positioned – Delivers all the benefit of the category
and is the best brand in the category. Eg – Cadbury, Xerox,
Maggie, etc.
2. Differentially positioned – Shows the benefit which is different
from the main brand. Eg – Yippie noodles
INITIAL POSITIONING DECISIONS –
WHETHER THE POSITIONING WILL BE IN TERMS OF
PRODUCT USERS OR PRODUCT ITSELF??
User-Oriented Positioning
>User is the focus not the product
>It is marketed to a specific segment
>When social approval is primary purchase motivation
Product-Oriented Positioning
>Product’s benefits is the focus in positioning
>Product characteristics are the message
GENERAL MODEL OF BRAND POSITIONING
What is it?
Category
Need
What does it offer?
Brand
Brand Awareness
Benefit
Brand Attitude
SELECTING THE APPROPRIATE BENEFIT
Considerations in
Communication
Selecting
Benefits
> It is important to the target audience?
> The brand can deliver it?
>It can be delivered better than other brands?
for
Marketing
SELECTING THE APPROPRIATE BENEFIT
The Expectancy-Value Model of Attitude
This model is based on a person’s attitude towards an object and
is measured as the sum of all the perceived benefits about it,
weighted by how important each of those things are to them.
Or,
What the model says is that a person’s attitude towards a product
will be the sum of its perceived characteristics and how important
they are to what motivates that person to buy the product.
COMPARATIVE EXPECTANCY-VALUE
MODEL OF ATTITUDE OF TWO BRANDS
Benefits
Importance
Weight
Chocolate/
Cocoa
2
Peanuts
1
Provides Energy
1
Inexpensive
Snack
3
Indulgence
3
Beliefs
(Snickers)
Beliefs
(Cadbury)
SELECTING THE APPROPRIATE BENEFIT
Understanding from Expectancy-Value Model will help to
evaluate positioning options in terms of:
>Building uniqueness for your brand on important benefits
>emphasizing important benefits your brand delivers better than
others
>increasing the importance of benefits that your brand delivers
and decreasing the benefits your brand doesn’t deliver.
4. DEVELOPING A COMMUNICATION
STRATEGY
In order to develop a communication strategy, the manager must
identify the communication objective. There can be four types of
communication objective –
1. Category Need
2. Brand Awareness
3. Brand Attitude
4. Brand Purchase Intention
CATEGORY NEED
Category Need – It refers to the target audience’s feeling that it
would like a particular product in order to satisfy a specific need.
Category need is a perception.
It becomes an objective only when 1. it is necessary to remind the target audience of his need, a
forgotten need. Eg – Parachute’s new ad.
or,
2. one tries to sell the need as the product’s category is new for
the target audience. Under such circumstances the company must
try to communicate the category benefits along with Brand
Benefits. Eg: Meswak
BRAND AWARENESS
Brand awareness is the target audience’s ability to identify a
brand within a category in sufficient detail to purchase or use it.
A brand can be identified in the following two ways:
Recognition and Recall
>>Recognition Brand Awareness is when awareness of the brand
reminds you of the category need.
>>Recall Brand Awareness is when the category need occurs and
you must remember brands that will satisfy that need.
(Exercise)
BRAND PURCHASE INTENTION
It is not often a specific objective for advertising except when
brand attitude is positive and a reason to buy now is required, but
always an objective for promotion.
BRAND ATTITUDE STRATEGY
Brand attitude is that something about a product which motivates
you to choose one product over the other amongst various
products. It is always a communication strategy.
Depending on the current standing of the product in the product
category we need to create, increase, maintain, modify, change a
brand attitude.
CHARACTERISTICS OF BRAND ATTITUDE
There are four important characteristics of Brand Attitude that
we need to understand –
1. What the consumer wants now from the product
2. Brand Attitude is made up of what the consumer knows about
a product.
3. What the consumer knows about a product is driven by
different beliefs.
4. Brand Attitude is a relative concept – We relate to different
psychological factors in buying a product.
IMPORTANCE OF INVOLVEMENT AND
MOTIVATION
Motivation is underlying reasons which results in a particular
consumer behavior. It answers the questions as why consumers
behave in a particular way?
Motivation can be divided into positive and negative motives.
Negative Motives doesn’t mean something bad.
>>Negative motives generally concern solving or avoiding
problems.
>>Positive motives generally involve seeking more personal
satisfaction.
Eg.- Kareena wearing her mother’s watch in 3 Idiots…
IMPORTANCE OF INVOLVEMENT AND
MOTIVATION
Involvement specifies whether or not the consumer sees any risk
in the decision to buy or use a product/ service. These perceived
risk can be either financial or psychological.
The perceived risk is determined based on the target audience.
THE ROSSITER – PERCY GRID
When one deals with ‘positive motives’, he actually tries to create
a mood, and when one deals with ‘negative motives’, he provides
information to help address a perceived problem.
Rossiter and Percy in their grid refer –
Positive Motives as transformational (transforming your mood)
and
Negative motives are informational…
THE ROSSITER – PERCY GRID
Low
High
Involvement
Motivation
Informational
Transformational
(Negative)
(Positive)
THE ROSSITER – PERCY GRID
Grid 1 – Implementing Low Involvement Informational Brand
Attitude Strategy
>>Low risk purchase decisions are involved
>>Motivation is to solve or avoid a problem
>>In order to solve or avoid a problem, one must provide
information about the brand, in terms of the benefit that will
resolve the problem and provide relief through the brand.
Eg: Washing Powders, soaps, etc.
THE ROSSITER – PERCY GRID
Grid 2 – Implementing Low Involvement Transformational Brand
Attitude Strategy
>>Low risk purchase decisions are involved
>>Motivation is positive
>>Emotional portrayal of the brand benefit is required In order to
arouse correct emotional response.
>>The target audience must see himself emotionally in the role of
using the product. Therefore, when dealing with positively
motivated behavior, the Target Audience must like the ad.
Eg. Dairy Milk
THE ROSSITER – PERCY GRID
Grid 3 – Implementing High Involvement Informational Brand
Attitude Strategy
>>High risk purchase decisions are involved
>>Motivation is negative
>>Since the risk involved is higher, the existing attitude of the
target audience must be known.
>>The more negative the brand attitude, more difficult it would
be for someone to accept anything the brand has to say.
>>Once we have understood their attitude, we must also know
what is important to them in the product.
>>Since it’s a high involvement product, the Target Audience will
definitely compare the product with the knowledge and
associations he has in his brain.
THE ROSSITER – PERCY GRID
Grid 4 – Implementing High Involvement Transformational
Brand Attitude Strategy
>>High risk purchase decisions are involved
>>Motivation is positive
>>Emotional portrayal of the brand benefit is required in order to
arouse correct emotional response.
>>The target audience must feel that the brand will satisfy the
social approval motivation underlying its need.
Eg. Luxury cars
CORPORATE IMAGE ADVERTISING
Mostly it follows a transformational brand attitude strategy. The
main motive in almost every ad is to build a positive brand
attitude.
5. SETTING A MEDIA STRATEGY
There has been an ever increasing number of media channels
with varied / segmented audiences.
Media selection has therefore become highly complex and has led
to the growth of specialist media agencies.
It is in this context that one needs to understand how media
strategy can be guided by the communication strategy developed
in previous topics.
UNDERSTANDING KEY MEDIA CONCEPTS
Reach – The percentage of the target audience exposed to an
advertisement in a given time period.
Frequency – The no. of times an individual member of the target
audience is exposed to an advertisement in a given time period.
Opportunities to See (OTS) – The cumulative exposures
achieved in a given time period, usually used in media planning
in place of frequency.
Gross Rating Points (GRPs) – A summary statistic for the
achievement of a media plan, calculated by multiplying reach by
frequency.
Effective Frequency – A hypothetical construct that attempts
to estimate the number of OTS required to have an effect in the
target audience.
REACH VERSUS FREQUENCY
A media plan must deal with three basic variables – reach,
frequency, and timing.
>>Ideal plan would enable to reach everyone in the target
audience and as often as necessary to ensure a positive response.
>>However, the budget constraints requires one to decide how
many members of target audience can be reached successfully,
how many times and when.
>>Minimum Effective Frequency – Point at which advertising will
begin to work.
>>It is better to reach few people effectively than reaching many
and without any effect.
SELECTING MEDIA
The Media Strategy depends on the communication objectives.
1. Brand Awareness Strategies
>>Brand Recognition – For this we look for good visual content
and not much time should be required for processing the message.
Low Frequency will do.
>>Brand Recall – Here we put the emphasis on frequency
SELECTING MEDIA
2. Brand Attitude Strategies
>>Low-Involvement, Informational Strategy –There is no strong
visual requirement, only a brief processing time is needed, and
high frequency is not required because the benefits shown in such
adverts can be learnt in one or two adverts. It can be addressed by
almost any medium only if the benefit need not be demonstrated.
>>Low-Involvement, Transformational Strategy – Good visual
content is critical. Only a brief processing time is required but
frequency should be high to ensure a Positive brand attitude
development. Television is the ideal medium, however, very
creative radio adverts can work if it can really make one see the
product.
SELECTING MEDIA
>>High-Involvement, Informational Strategy – It requires a
longer processing time to convince the audience, therefore media
emphasis is likely to be on print media.
>>High-Involvement, Transformational Strategy – Higher
frequency of adverts are not required as we deal with products
with much longer purchase cycle. In low-involvement,
transformational strategy deals with mostly FMCG products with
a relatively short purchase cycle. Radio may not be a medium for
HITS.
DEMOGRAPHIC VERSUS DIRECT
MATCHING
Demographic Matching is the practice of defining a target
audience in terms of specific demographic characteristics, then
matching that demographic profile with the demographic profile
of a media vehicle’s audience.
Finding media that brand users read or watch is Direct Matching.
It requires surveying the market and measure their media habits.
ASSIGNMENT
Discuss the positives and negatives of New Media (Mobile,
internet, etc.) for achieving the advertising objectives.
PUTTING EVERYTHING TOGETHER –
INTEGRATED MARKETING COMMUNICATION
Integrated Marketing Communication is the planning and
execution of all types of marketing communication needed for a
brand, service, or company in order to satisfy a common set of
communication objectives.
It might be possible that only one type of marketing
communication is required to meet the brand’s marketing
communication objectives. Still it is IMC.
TRADITIONAL ADVERTISING AND
PROMOTION
Advertere – ‘to turn towards’
promovere – ‘to move ahead’
Advertising contributes to long-term attitude while promotion
contributes to short-term action.
‘Integrate’ comes from Latin verb ‘integrare’ which means
‘combine parts into whole’.
Various forms of traditional advertising and promotion are
combined and the ‘whole’ is a consistent marketing
communication program or IMC.
OPTIMIZING THE COMMUNICATION
OBJECTIVES
It is important to understand the relative strengths and
weaknesses of traditional advertising and promotion in
contributing to the four basic communication effects.
1. Category Need – Neither advertising nor promotion is
especially strong in stimulating category need as category needs
springs from some felt need or motivation. Advertising can help in
positioning a category need and promotion can accelerate category
need.
2. Brand Awareness – Advertising can be effective for both brand
‘recall’ and and ‘recognition’ while promotions are more effective
for ‘recognition’ brand awareness.
OPTIMIZING THE COMMUNICATION
OBJECTIVES
3. Brand Attitude – Advertising is more effective in creating
brand attitude.
4. Brand Purchase Intention – Because of their generally shortterm, tactical nature, promotions are geared to immediate action.
Strong
Advertising
Promotion
Brand
Purchase
Intention
Brand
Attitude
Brand
Awareness
Category
Need
Weak
Sales
PRODUCT LIFE CYCLE INFLUENCE ON
RELATIVE INFLUENCE OF ADVERTISING &
PROMOTION
Introduction
Growth
Maturity
Time
Decline
PRODUCT LIFE CYCLE INFLUENCE ON
RELATIVE INFLUENCE OF ADVERTISING &
PROMOTION
Introductory Stage
During the introduction phase a company would like to quickly
introduce the brand and grow to a position of strength in a
market. Maximum advertising & promotion efforts are required
at this stage.
>>Advertising helps in making people aware about the product
and in creating an image about what type of product it is.
>>Promotion helps in making people aware of the product and
induce them to try it.
PRODUCT LIFE CYCLE INFLUENCE ON
RELATIVE INFLUENCE OF ADVERTISING &
PROMOTION
Growth Stage
At this stage, the distribution of advertising and promotion
expenses depends on the nature of the product and the marketing
strategy undertaken.
>>If the product is a leader in the category and is more desirable
as compared to the competitors, then the company should spend
heavily on advertising to maintain the competitive advantage and
high levels of awareness.
>>If there is not much to differentiate the brand from others, the
company should try promotion techniques to increase the product
usage and depend on the competitors advertising to establish /
increase the category need.
PRODUCT LIFE CYCLE INFLUENCE ON
RELATIVE INFLUENCE OF ADVERTISING &
PROMOTION
Maturity Stage
At this stage, the expenditure will vary depending on loyalty.
With high number of brand loyal, promotion techniques will not
be required. However, if there is very low loyalty in the category,
spending more on promotion will be more effective than using
advertising. Eg – Sugar.
PRODUCT LIFE CYCLE INFLUENCE ON
RELATIVE INFLUENCE OF ADVERTISING &
PROMOTION
Decline Stage
At this stage, both advertising and promotion expenditure should
stop. Minimal expenditure on promotion techniques will be
required till the company’s inventory lasts.
ADVANTAGES OF USING ADVERTISING &
PROMOTION TOGETHER
When advertising has been effective in generating a strong brand
attitude, all the brand’s uses of promotion become that much
more effective because
>>A strong brand attitude mean that when the brand will use
promotion, the target audience will see the promotion as a better
value.
>>Strong positive brand attitude also means that when a brand’s
competitors use promotion, the brand’s target audience will be
less likely to respond
ADVANTAGES OF USING ADVERTISING &
PROMOTION TOGETHER
The Ratchet Effect
1. Promotion Alone
Sales
Promotion
Promotion
Promotion
ADVANTAGES OF USING ADVERTISING &
PROMOTION TOGETHER
2. Advertising Alone
Sales
Advertising
Advertising
Adevrtising
ADVANTAGES OF USING ADVERTISING &
PROMOTION TOGETHER
3. Advertising & Promotion
Sales
Advertising
Promotion
Advertising
Advertising
Promotion
Promotion
CAMPAIGN TRACKING
One must measure the responses to not only their product’s
advertisement but also their competitor’s advertisements. Ways
to track advertising campaigns:
1. Correlating sales with advertising and promotion spending.
2. Using a panel of consumers who are questioned about their
purchases and recall of advertising.
3. Continuous Tracking – Ongoing interviews of small samples of
consumers, rolling the results, with moving averages for weekly,
fortnightly, or monthly.
CAMPAIGN WEAROUT
‘Wearout’ means that the current campaign is not performing up
to the expectation, in the absence of external causes.
>>Check if there is a problem with the media plan
 Whether it is reaching the target audience?
 Minimum effective frequency is being obtained?
>>Over-exposure leading to diminished attention
>>Interference due to new advertising when the previous
advertisement was still trying to create an association.
PROBLEMS IN IMPLEMENTING IMC
1. Organizational Structure – Due to the structure of any
organization there might be situations that the information and
materials shared with various agencies are not same.
Interrelations between various departments are not smooth.
2. Low standing of Marketing Communication in an Organization
– For many in top management, spending money on advertising is
seen as a luxury that can be afforded only when everything else is
going well.
3. Lack of Marketing Communication Specialists – Most of the
times those handling the campaign specialize in a particular area
of communication. Different specialists hardly talk to each other.
They have their own plans, budgets and objectives.
PROBLEMS IN IMPLEMENTING IMC
4. Politics and Power
5. Resistance to change – Human Nature towards any change.
There can be conflicts in promotion and advertisement managers
due to their own objectives.
THANK YOU
MODERN ADVERTISING
Changing Trends
One of the major constraints on the ability of any mass medium to
maintain itself in the marketplace of ideas, or in the marketplace
of divertissement, is the level of economic support available. The
major economic support comes from advertising.
Traditionally, advertising has sought to make its impression via
visual and audio representations of products and brands. New
ways of making impressions have been made possible by changing
demographics, changing media, and improved technology.
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Alternatives and Compliments
Chris Anderson, in his now-famous discussion of how “free” has
become a common price for online products, said, “To follow the
money, you have to shift from a basic view of a market as a
matching of two parties—buyers and sellers—to a broader sense
of an ecosystem with many parties, only some of which exchange
cash.”
Indeed, Anderson credits the media industry’s prime business
model – selling readers or viewers to advertisers, rather than
merely selling content to users – as the inspiration for many
online business models. The practice of selling an audience
instead of content is thriving, and companies are paying more
than ever for those audiences.
MODERN ADVERTISING
Advertising activities are divided into two categories: above the
line advertising and below the line advertising.
Above the Line Advertising (ATL)
Above the line advertising refers to traditional mass media
advertising, that which is conducted in newspapers, on television,
the radio, and on the internet. It is, simply, what people think of
when they think of advertising.
MODERN ADVERTISING
The following methods are usually considered BTL advertising:
• Price promotions or discounting
• Coupons
• Gift-with-purchase
• Competitions and prizes
• Monetary refunds
• Loyalty incentives
• Point-of-sale displays
MODERN ADVERTISING
Shift from Traditional to Non-traditional Advertising
>>Consumers want to feel engaged
>>Consumers want to feel empowered and connected, and
>>Consumer interactions are easier to measure
In the past, advertising has often focused on brand awareness and
recognition, but non-traditional advertising seeks instead to drive
sales. It aims for an efficiency of communication that traditional
advertising often does not maintain.
MODERN ADVERTISING
Most advertisers seem to be pushing multi-platform, or through
the line, campaigns. Much of the money is going into direct
marketing, though brand-building through mass media remains a
part of many advertising campaigns.
The challenge for leaders of “traditional” media outlets is not to
bow to non-traditional advertising but rather to find ways to coopt the value it offers to advertisers: consumer-specific marketing
that offers direct incentive to purchase while providing the brand
with data.