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MK0016/- Advertising Management and Sales
1List some of the factors that affect advertising in India.
Ans:-Factors that Affect Marketing and Advertising should be monitored constantly, even when
one is not directly dealing with these products or segments, because the economy is an integrated
whole and that affects all of us.These are:.
i)Industrial growth is difficult to measure in absolute terms as when one sector is doing
well, another may not be. Industrial lending is a key indicator. Big industries have been in a
tight spot since 2008–09 due to global recession, forcing closures and retrenchments. And
the financial health of the urban industrial worker segment is a major influencer of the urban
market.
Medium and small-scale industries have been in trouble for some time – around 44,000
industries closed down in 2004–06. But that does not always show up in research data
because this segment is not given the correct weightage in aggregate growth. In May 2003,
ICRA report was based on four industry groups – food products, beverages, tobacco and
basic metals, which is a distorted view. The health of Pepsi, TISCO, ITC, and TELCO does
not represent the total Indian industry. Most SME are located in small towns and semi-rural
areas, and the purchasing power of their employees is as important as that of the farmer or
the urban industrial worker.
ii) China factor grew at over 10% of GDP for several years – slows down, it has many
implications on the Indian market.
China is always trying to flood the Indian market with industrial intermediary products and
cheap consumer products for the lower end of the market. It provides India with more
product options at lower prices, but it curtails our industrial growth and reduces jobs in India
and thus the buying power.
iii)Election expenditures are a major factor in the Indian economy, but they are not well
documented for obvious reasons. The Lok Sabha and state legislature elections as well as
the smaller local ones like by-elections, panchayat and municipal ones take place all the
time. Election advertising has come a long way from the erstwhile practice of sloganeering
and propaganda to the use of blogs, Google ads and even SEO techniques. For the
advertising industry, the amount of print ads, banners, hoardings, posters, plastic danglers,
booklets, CDs, video and music vans, films,
iv) Monsoon rains was considered that the rain is the real finance minister of India, because
it controls the entire economy. The dependence on rain is not so great now, partly due to
irrigation and partly because agriculture accounts for only 15% of India’s nearly $2 trillion
economy, Economic indicators show that during 2004–06, rainfall had been below normal,
yet these years have shown the highest economic growth. Nevertheless, rain matters a lot,
A monsoon with average rains would boost grains output, helping the government to keep
inflation under check and boost the faltering economy.
2.3.5 Disposable income was based on the consumer expenditure data collected from a
30-day recall period. In March 2012, the Planning Commission fixed the poverty line at Rs.
28.65 per capita daily consumption in cities and Rs. 22.42 in rural areas, bringing India's
poverty ratio to 29.8% in 2009–10.As per World Bank Survey, 2005, India emerged as the
12th wealthiest nation in the world based on the Purchasing Power Parity (PPP).
To sell in this market, advertisers will need to have a deep understanding of India’s new
consumers today so that they can deliver the products that meet their aspirations.
Advertising agencies will have to be sensitive to their attitudes and aspirations. People also
do not like to spend much, still being loyal to their age-old thrifty habits.
2 Write a short notes on:
A. Media Planners
B. Media Buyers
Ans:a) Media planner need to estimate is “how much to advertise.To do so he sees below as:
Reach (R) – The number of people or households (unduplicated) exposed to an ad
schedule within a particular period. It is typically expressed as % of the total population.
Frequency (F) – The number of times a particular ad reaches the same person or family.
Gross impressions – The total of all audiences covered by a media plan, inclusive of the
number of times they receive the message.
Gross impressionss = absolute reach x frequency
Rating – The percentage of a given population exposed to an advertising medium within a
given period of time. One rating point is equal to one percent.
Gross rating points (GRPs) – The aggregate total of all the ratings of a media schedule
or the total audience delivery of a media schedule. In other words, it is the average number
of times the entire audience reached is exposed to advertising, without regard to duplication.
GRPs = Viewers counted once x Average number of times they view
Or, GRPs = Reach x Frequency
So he sees R, F and GRPs? Due to the interrelationship of the three components, he can
exercise control over how much reach or frequency can be generated within a given number
of GRPs. As observed, keeping GRPs constant, there is an inverse relation between reach
and frequency. This tradeoff between reach and frequency suggests that advertisers must
make their R and F selection based on their objectives and budget constraints.
While ideally planners would like to maximise both R and F, because of limited advertising
budget, they have to decide how to spend that money. Usually, media experts suggest that
high reach is appropriate when something new is associated with the brand, such as new
product, new features, new sales incentives or new packaging. As per the AIDA model, this
is the stage when awareness is to be created about the product or its new features. Higher
reach may also be the objective when a couponing or sample distribution campaign is
executed, say, at the stage of action in the AIDA model. This is because the marketer might
want to ggod reach.
A high reach is often necessary in two other situations: (a) for reminder advertising for a
mass market product, and (b) when the brand faces severe competition. Higher frequency is
usually the goal when the message is complex, when it is a high-involvement product, when
brands are new or relatively unknown, or when competition has a high share of voice, etc.
Thus, R, F and GRP goals are an important part of the media plan.
b)
Once media planners have decided the media and media vehicles on which they want to
place their ads, media buyers need to make purchases – these include time on television
and radio, space in print and outdoor, etc.They have to schedule the number of ads to
appear on specific days and weeks and plan their placement (e.g. in-between commercial
breaks or at the start/end of break on television, on front/back cover of a magazine or in a
corner, on a billboard in Area A or Area B, as top banner on Website or side right banner,
etc.). They have to decide on the number and type of creative units to use – one 30-second
ad or three 10-second spots, one quarter-page colour insertion or one full-page black-andwhite insertion, etc. – There are several other special creative options to be taken into
account (e.g. gatefolds in magazines, tickers on news channels, sponsoring run-out breaks
during cricket matches, etc. While experience and research do guide these decisions, the
media buyer’s role is definitely not an enviable one.
Media buying is now such a complex activity that there are specialist agencies, which do only this
and nothing else. They buy time and space in bulk, which gives them the advantage of wholesale, so
to speak, like discounts and negotiated rates.
3 Describe the AIDA model of consumer response hierarchy.
AIDA is acronym & stands for Attention (or Attract)
Interest ,Desire & Action. It is a handy tool for ensuring that Ad copy, or other writing, grabs
attention. Daily we're bombarded with headlines like these that are designed to grab our
attention.
In a world full of Ad – delivered in all sorts of media from print to websites, billboards to
radio & TV to text messages – every message has to work extremely hard to get noticed.
AIDA is not just Ad messages that have to work hard, every report we write, presentation
we deliver, or email we send is competing for our audience's attention.As world of Ad
becomes more & more competitive, Ad is becoming more sophisticated. Yet basic principles
behind Ad copy remain – that it must attract attention , persuade someone to take action.
But to persuade people to do something, we still need to grab their attention, interest them
in how our product or service can help them & then persuade them to take action .We
want them to take as buying our product or visiting your website.
b)
4 What is “above the line” and “below the line” activities with respect to marketing
communications?
a)Media are constructions &do not simply reflect external reality. Rather, they present
carefully crafted constructions that reflect many decisions
&are due to many determining factors. Media Literacy works towards deconstructing these
construction. Media observe & experience from which we build up our personal
understandings of the world & how it works. It aims to encourage awareness of how the
media are influenced by commercial considerations.
b)It uses concepts as ATL &BTL.
i) ATL promotions use mass media methods &large audience as print, online media, tV &
cinema advertising. It is also very expensive. ATL use media that are broadcast & published
to mass audiences.ATL is also difficult to measure well.
ii) BTL use media that are more niche focused. BTL
gives marketer ability to tailor his message
in a more personal way to the audience. BTL are highly measurable telling marketers about
their return on investment.
While both can be used to either to build brand awareness or drive sales .
5 What are the various media that may be used for direct marketing? What are their
pros &cons?
Media for Direct Marketing(DM) are as:
i)Direct mail is one of the most popular forms . It is an advertising message that is
delivered by mail – posted, couriered or hand-delivered personally.It is not always a simple
letter. It can even be a package consisting of a brochure, a business-reply envelop, product
samples, etc. Sometimes it may contain a product catalogue. E,g, catalogue shows the
products to be sold. It remains one of the most inexpensive and heavily used media for DM
. In spite of the rise in postal charges, it remains the favoured tool due to its ability for
personalisation of mail, flexibility and testability. While CPM (cost per thousand) is higher
than mass media, there is less wastage due to tighter targeting. It allows businesses to
target individuals with known credit rating, purchase histories.Compared to print or tV. it has
a greater opportunity to grab and hold a reader’s attention.
But here response rate is as low as 2–3% (only response, not purchase)
II)Telemarketing
A tool that urban marketers have made heavy use of, telephone based DM – a call or mass
SMS on land lines/mobiles – is a relatively cost effective tool, when compared with personal
visits. The caller not only makes a direct contact with the potential buyer, he can make a full
and customised presentation of the product or service. It can be used as one-step selling, to
generate opportunities for later sales calls, for follow-up services or for servicing industrial or
larger customers. It is personal, interactive and enables the company representatives to
listen to the customer, existing or potential and prevent much of future dissatisfaction with
the product or after-sale services. It can be inbound or outbound. Inbound calls originate
from the customer.
But some customer can ignore SMS
iii)Internet is one of the most convenient and advantageous direct marketing media.
Direct marketing through the Internet overcomes many of the drawbacks of telemarketing.
Websites offer a virtual store. Online catalogues can trim down or get rid of mail-order
catalogues that are pricey to produce and send.
However, being intrusive and irritating, they too are meeting the same fate as telemarketing.
There are legislations all over the world prohibiting spam emails.
iV) Print media as. Newspapers carry Free Standing Inserts (FSIs).
Look at this one released in 2009.
Real women seek Dove.
And vice versa.
And who better than you?
Dove is looking for real faces for its next commercial. We would like you to try a Dove bar. If
your experience is memorable, simply send your recent photo.The marketers measure the
effectiveness of these not by readership, reach or frequency, but cost per inquiry/order.
V) Television has the advantage of immediacy. A programme such as Asian Sky Shop can
ask the viewer to call or contact for a certain product and the viewer can do so immediately.
But not all direct television ads seek orders.
6 Describe the Consumer Protection Act and its strengths and weaknesses.
The Consumer Protection Act came in, 1986 & under it Consumer Protection Councils have been
set up. It has brought relief to the consumer. The Website of the Consumer Protection Act hails it as
a “milestone in the history of socio-economic legislation.”
Here complainant can be
Complains are regarding unfair trade practices:
ity, quantity, grade,
composition, model, etc., of a product.
which they do not have.
Here relief can be granted to the complainant.District Forum or state councils or
national councils can
Limitation:This is the area where an advertiser, advertising agency or related organisations
can easily get in trouble, without even realising, because clearly they cannot know
everything about the product. India’s 555 has district courts. State Commissions.
Apart from n Councils, there are sectoral Ombudsmen for banking and insurance
established in 1995 and 1998 respectively, to to protect citizens from abuse of power,.
These institutions do not have judicial power but function on the principle that justice should
not only be done, but be seen to be done.
However,we should be aware that these institutions are at best quasi-judicial and statutory
authorities and are not equipped to handle complicated matters and judicial procedures.
Though these courts have the laudable objective of quick disposal of consumer grievances,
it does not always work that way. Referral to civil court after long procedures is normal and
often recommended in the first place. However, the fact that there is a forum where a
consumer can go to has made him/her far more aware of his rights and responsibilities as
well, since he/she does not get a compensation if it is proved that he himself acted
irresponsibly. On the other hand, the marketer and advertising agency too have become far
more careful about lofty claims, unreal promises, cheating in weight, measure and size,
misleading packaging designs, promised “free gifts” that never come or do not work and all
such dishonest and dangerous practices.