Download ADBM - Sanjeev Institute of Planning and Management

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SIPM
Unit 1
According to Richard Buskirk, "Advertising is a paid form of non-personal presentation of
ideas, goods or services by an identified sponsor."
According to Wheeler, "Advertising is any form of paid non-personal presentation of ideas,
goods or services for the purpose of inducting people to buy."
According to William J. Stanton, "Advertising consists of all the activities involves in
presenting to a group, a non-personal, oral or visual, openly sponsored message regarding
disseminated through one or more media and is paid for by an identified sponsor."
Definition of Advertising - "Advertising is the non-personal communication of information
usually paid for and usually persuasive in nature about products, services or ideas by
identified sponsors through the various media." Now let's take this statement apart and see
what it means.
- American marketing association
Non-personal
Basically sales are done either personally or non-personally. Personal selling requires the
seller and buyer to get together whereas advertising is non-personal selling it does not require
buyer and seller together. Personal selling has many advantages over advertising like direct
communication, bargaining, enough time to discuss in detail about the product, seller can
easily locate potential buyer. Advertising has none of the advantages of personal selling, very
little time to present sales message, message is cannot be changed easily.
But, advertising has
its
own
advantages
which
is
not
found
in
personal
selling: advertising has comparatively speaking, all the time in the world. Unlike personal
selling, the sales message and its presentation does not have to be created on the spot with the
customer watching. It can be created in as many ways as the writer can conceive, be
rewritten, tested, modified, injected with every trick and appeal known to affect consumers.
Advertising covers large groups of customer and to make it effective proper research about
customer is done to identify potential customers, to find out what message element might
influence them, and figure out how best to get that message to them.
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Thus, it appears that advertising is a good idea as a sales tool. For small ticket items, such as
chewing gum and guitar picks, advertising is cost effective to do the entire selling job. For
large ticket items, such as cars and computers, advertising can do a large part of the selling
job, and personal selling is used to complete and close the sale.
Communication
Communication means passing information, ideas, or feelings by a person to another.
Communication uses all the senses like smell, touch, taste, sound, sight. Only two senses sound and sight are really useful in advertising. In advertising, what appears is everything the
writer thinks the customer needs to know about the product in order to make a decision about
the product. That information will generally be about how the product can benefit the
customer.
Paid For
Advertiser has to pay for the creation of ad and for placing it in the media. Cost of ad creation
and cost of time/space in the media must be paid for. Cost of advertising depends on TRP of
media, reach of media, and frequency of ad to be displayed.
Persuasive
"Persuasive" stands to reason as part of the definition of advertising. The basic purpose
of advertising is to identify and differentiate one product from another in order to persuade
the consumer to buy that product in preference to another.
Identified Sponsors
Identified sponsors means whoever is putting out the ad tells the audience who they are.
There are two reasons for this: first, it's a legal requirement, and second, it makes good sense.
Legally, a sponsor must identify himself as the sponsor of ad. By doing so the sponsor not
only fulfils the legal requirements, but it also makes a good sense, if the sponsor doesn't do
so, the audience may believe that the ad is for any competitor's product, thus wasting all the
time and money in making and placing the ad.
Objectives of Advertising
The real objective of advertising is effective communication between producers and
consumers with the purpose to sell a product, service, or idea. The main objectives of
advertising are as follows:
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Informative
Objective of advertising is to inform its targeted audience/customers about introduction of
new product, update or changes in existing products or product related changes, information
regarding new offers and schemes. Informative advertising seeks to develop initial demand
for a product. The promotion of any new market entry tends to pursue this objective because
marketing success at this stage often depends simply on announcing product availability.
Thus, informative advertising is common in the introductory stage of the product life cycle.
Persuasive
Objective of advertising is to increase demand for existing product by persuading new
customer for first time purchase and existing customers for repurchases. Persuasive
advertising attempts to increase demand for an existing product. Persuasive advertising is a
competitive type of promotion suited to the growth stage and the early part of the maturity
stage of the product life cycle.
Reminder
The objective of advertising is to remind customers about existence of product, and ongoing
promotional activities. Reminder advertising strives to reinforce previous promotional
activity by keeping the name of a product before the public. It is common in the latter part of
the maturity stage and throughout the decline stage of the product life cycle.
Mathews, Buzzell, Levitt and Frank have listed some specific objectives of advertising.

To make an immediate sale.

To build primary demand.

To introduce a price deal.

To build brand recognition or brand insistence.

To help salesman by building an awareness of a product among retailers.

To create a reputation for service, reliability or research strength.

To increase market share.
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Functions of Advertising - Following are the basic functions of advertising:
1. To distinguish product from competitors' products
There are so many products of same category in the market and they competes with each
other, advertising performs the function of distinguishing advertiser's product from
competitors.
2. To communicate product information
Product related information required to be communicated to the targeted customers, and
advertisement performs this function.
3. To urge product use
Effective advertisement can create the urge within audience for a product.
4. To expand product distribution
When the market demand of a particular product increases, the number of retailer and
distributor involved in sale of that product also increases, hence product distribution get
expanded.
5. To increase brand preference
There are various products of different bands are available, the brand which is effectively and
frequently advertised is preferred most.
6. To reduce overall sale cost
Advertising increases the primary demand in the market. When demand is there and the
product is available, automatically the overall cost will decrease, simultaneously the cost of
sales like distribution cost, promotional cost also get decreased.
Classification of Advertising –
Advertising can be classified on the basis of Function, Region, Target Market, Company
demand, Desired response, and Media.
A) Classification on the basis of function

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Advertisement informs the customers about a product
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
Advertisement persuades the consumers to buy a products

Advertisement reminds existing customers about the presence of the product in the
market
Let us discuss some important types of advertising based on the functional aspect of
advertising.
Informative advertising: This type of advertising informs the customers about the
products, services, or ideas of the firm or organization.
Persuasive advertising: This type of advertising persuades or motivates the prospective
buyers to take quick actions to buy the products or services of the firm. Example: “Buy one,
get one free”.
Reminder advertising: This genre of advertising reminds the existing customers to become
medium or heavy users of the products or services of the firm that have been purchased by
them at least once. This type of advertising exercise helps in keeping the brand name and
uses of the products in the minds of the existing customers.
B) Classification on the basis of region
Advertisements can also be classified on the basis of the region, say:
Global advertising: It is executed by a firm in its global market niches. Reputed global
magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular
Science. Cable TV channels are also used to advertise the products through out world.
Supermodels and cinema stars are used to promote high-end products Examples: Sony,
Philips, Pepsi, Coca Cola, etc.
National advertising: It is executed by a firm at the national level. It is done to increase the
demand of its products and services throughout the country. Examples: BPL (Believe in the
best). Whirlpool Refrigerator (Fast Forward Ice Simple) etc.
Regional advertising: If the manufacturer confines his advertising to a single region of the
country, its promotional exercise is called Regional Advertising. This can be done by the
manufacturer, wholesaler, or retailer of the firm. Examples: Advertisements of regional
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newspapers covering those states or districts where these newspapers are circulated. Eg. The
Assam Tribune (only for the NE region) etc.
Local advertising: When advertising is done only for one area or city, it is called Local
Advertising. Some professionals also call it Retail Advertising. It is sometime done by the
retailer to persuade the customer to come to his store regularly and not for any particular
brand. Examples: Advertisements of Ooo la la, Gupshup (Local FM channels) etc.
C) Classification on the basis of target market
Depending upon the types of people who would receive the messages of advertisements, we
can classify advertising into four subcategories:
Consumer product advertising: This is done to impress the ultimate consumer. An ultimate
consumer is a person who buys the product or service for his personal use. This type of
advertising is done by the manufacturer or dealer of the product or service. Examples:
Advertisements of Intel, Kuttons (shirt), Lakme (cosmetics) etc.
Industrial product advertising: This is also called Business-to-Business Advertising. This
is done by the industrial manufacturer or his distributor and is so designed that it increases the
demand of industrial product or services manufactured by the manufacturer. It is directed
towards the industrial customer.
Trade advertising: This is done by the manufacturer to persuade wholesalers and retailers to
sell his goods. Different media are chosen by each manufacturer according to his product
type, nature of distribution channel, and resources at his command. Hence, it is designed for
those wholesalers and retailers who can promote and sell the product.
Professional advertising: This is executed by manufacturers and distributors to influence the
professionals of a particular trade or business stream. These professionals recommend or
prescribe the products of these manufacturers to the ultimate buyer. Manufacturers of these
products try to reach these professionals under well-prepared programmes. Doctors,
engineers, teachers, purchase professionals, civil contractors architects are the prime targets
of such manufacturers.
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Financial
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advertising: Banks,
financial
institutions,
and
corporate
firms
issue
advertisements to collect funds from markets. They publish prospectuses and application
forms and place them at those points where the prospective investors can easily spot them.
D) Classification on the basis of desired responses
An ad can either elicit an immediate response from the target customer, or create a favourable
image in the mind of that customer. The objectives, in both cases, are different. Thus, we
have two types of advertising under this classification.
Direct action advertising: This is done to get immediate responses from customers.
Examples: Season's sale, purchase coupons in a magazine.
Indirect action advertising: This type of advertising exercise is carried out to make a
positive effect on the mind of the reader or viewer. After getting the advertisement he does
not rush to buy the product but he develops a favourable image of the brand in his mind.
Surrogate advertising: This is a new category of advertising. In this type of promotional
effort, the marketer promotes a different product. For example: the promotion of Bagpiper
soda. The firm is promoting Bagpiper Whisky, but intentionally shows soda. They know that
the audience is quite well aware about the product and they know this fact when the actor
states, "Khoob Jamega Rang Jab Mil Baithenge Teen Yaar ... Aap ... Main, Aur Bagpiper").
E) Classification on the basis of the media used in advertisement
The broad classification based on media is as follows:
Audio advertising: It is done through radio, P A systems, auto-rickshaw promotions, and
four-wheeler promotions etc.
Visual advertising: It is done through PoP displays, without text catalogues, leaflets, cloth
banners, brochures, electronic hoardings, simple hoardings, running hoardings etc.
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Audio-visual: It is done through cinema slides, movies, video clips, TV advertisements,
cable TV advertisements etc.
Written advertising: It is done through letters, fax messages, leaflets with text, brochures,
articles and documents, space marketing features in newspapers etc.
Internet advertising: The world wide web is used extensively to promote products and
services
of
all
genres.
For
example
Bharat
Matrimony,
www.teleshop.com,
www.asianskyshop.com etc.
Verbal advertising: Verbal tools are used to advertise thoughts, products, and services
during conferences, seminars, and group discussion sessions. Kinesics also plays an
important role in this context.
Advertising is a form of mass communication
Advertising is a process of transmission of information by the manufacturer or a seller of a
product or service to modify or stimulate the behavior of the buyer to buy a particular
product. Advertising can be in any form of presentation such as sign, symbol or illustration in
print media, a commercial on radio or television, poster etc. Thus advertising is the
communication link between the seller and the buyer.
Advertising is a paid form of a non-personal message communicated through the various
media by industry, business firms, nonprofit organisations, or individuals. Advertising is
persuasive and informational and is designed to influence the purchasing behavior and/or
thought patterns of the audience.
One of the basic ingredients of today's popular culture is consumption and it is
the advertising industry that makes mass consumption possible. Advertising is an important
element of our culture because it reflects and attempts to change our life styles.
The advertising message has to reach a billion people, speaking different languages,
practicing many religions. Advertisers can reach their audiences through television, radio,
cinema,
print
medium,
outdoor
advertising,
sales
promotion
and
the
Internet.
Hence, advertising is a form of mass communication.
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Marketing Communication Mix
The marketing communication mix is the specific mix of advertising, personal selling, sales
promotion, public relation, and direct marketing a company uses to pursue its advertising and
marketing objectives. Elements of the mix are blended in different quantities in a campaign.
PRODUCT
PLACE
Product characteristics, options, assortment, Different types of distribution channels,
brand name, packaging, quantity, factory
density of the distribution system, trade
guarantee
relation mix (policy of margins, terms of
delivery, etc), merchandising advice
PRICE
PROMOTION
List price, usual terms of payment, usual
Advertising
discounts, terms of credit, long-term saving
campaigns
Sales promotion
Personal selling
PR
Advantages of advertising
1. Advertising always focuses on reaching all the targeted audience.
2. Choice of media is a great advantage to the sponsors, because they have different
types of media and based on the product they can use the media mix.
3. Advertising always expresses the product features well
4. Advertising creates customers satisfaction and confidence regarding product.
Disadvantages of advertising
1. In advertising no person involved in promoting product.
2. For some products it is very difficult to choose media
3. Feedback is non participative in advertising
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ROLE OF ADVERTISING IN PROMOTIONAL MIX:
Promotional mix consist of various tools called advertisng ,sales promotion, personal selling
and public relations.
Elements of communication mix
Marketing communications has a mix. Elements of the mix are blended in different quantities
in a campaign. Following are the elements of marketing communication mix:1.
Advertising - Advertising is any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an identified sponsor.
2.
Personal selling - Personal presentation by the firm's sales force for the
purpose of making sales and building customer relationship.
3.
Sales promotion - Short term incentives to encourage sales or purchases of a
product orservice.
4.
Public relation - Building good relationship with the company's various
publics by obtaining favorable publicity, building up a good corporate image, and
handling unfavorable rumors, stories, and events.
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5.
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Direct marketing - Direct communication with carefully targeted individual
consumers to obtain immediate response and cultivate lasting relationship.
6.
Sponsorship - Sponsorship is about providing money to an event, in-turn the
product or company is acknowledged for doing so.
7.
E-marketing - Online marketing is also gaining importance these days.
AIDA Model is a selling concept presented by Elmo Lewis to explain how personal selling
works. AIDA Model outlines the processes for achieving promotional goals in terms of stages
of consumer involvement with the message. The Stages are Attention, Interest, Desire, and
Action.
Attention
In this media filled world, advertisers need to be quick and direct to grab audience attention.
Ads are required to be eye catchy which can make audience stop and read or watch what
advertiser have to say next. Powerful words and pictures are used in ads to make them
attractive.
Interest
After getting attention of a chunk of the targeted audience, it is required to keep them
engaged with the ad to make them understand the message in more detail. Gaining the
reader's or audience interest is more difficult process than grabbing their attention. To gain
audience interest the advertisers must stay focused on audience needs.
Desire
The Interest and Desire parts of AIDA goes hand-in-hand. As advertiser builds the audience
interest, he also need to help them understand how what he is offering can help them in a real
way. The way of doing this is by appealing to their personal needs and wants.
A good way of building the reader's desire for advertiser offering is to link features and
benefits. Hopefully, the significant features of the offering have been designed to give a
specific benefit to members of the target market.
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Action
Finally, advertiser need to be very clear about what action he want the audience to take- trial,
purchase, repurchase, or other.
AIDA and the Promotional Mix
Attention
Interest
Desire
Very
Somewhat Not
Effective
Effective
Effective
Effective
Public
Very
Very
Very
Not
Relations
Effective
Effective
Effective
Effective
Sales
Somewhat Somewhat Very
Somewhat
Promotion
Effective
Effective
Effective
Personal
Somewhat Very
Very
Very
Selling
Effective
Effective
Effective
Advertising Very
Effective
Effective
Action
INTEGRATED MARKETING COMMUNICATIONS (IMC)
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.
-(AMA)
IMC requires
•
Awareness of audience’s media habits and preferences
•
Understanding of audience’s knowledge and beliefs about the product
•
Use of coordinated media blend linked to a specific objective
•
Key is a single, coordinated message and image thrust
•
Synergy
•
Better use of communication funds
•
Balancing the ‘push’ and ‘pull’ strategies
•
Improves the company’s ability
1. to reach
2. the right consumer
3. at the right place
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4. at the right time
5. with the right message
PULL and PUSH strategies
push strategy
-
directs communication efforts at channel members
-
many products, such as business products, are promoted with a push strategy,
involving personal selling and use of trade promotions
pull strategy
-
directs promotion at the end consumer
-
most consumer products would rely more heavily on a pull strategy
-
where promotion is directed at the consumer to stimulate demand
ECONOMIC, ETHICAL AND LEGAL ASPECTS OF ADVERTISING
ECONOMIC ASPECTS
•
Advertising accounts nearly 2.3% of the product price
•
Effect on the value of the product
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•
Creates desirable to the consumer
•
Effect on price
•
Effect on competitors
•
Effect on consumer demand
•
Effect on the business cycle
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ETHICAL ASPECTS
Positive and Negative Aspects of Advertising
As like any other medium of mass communication, advertising also have positive as well as
negative aspects. Advertising increases sales, advertising makes the product popular,
advertising helps in brand formation, advertising makes the public aware with the available
brands or products. Advertising is the largest financial source for mass media. Advertising is
sometimes subjected to wide criticism. Many of the advertisements are criticised as deceptive
or manipulative. Other criticism focus on the social or environmental impact of advertising,
the effect of advertising on our value system, commercial clutter, stereotypes, and
offensiveness.
Ethics in Advertising
Ethics means a set of moral principles which govern a person's behaviour or activities. Ethics
in advertising means a set of well defined principles which govern the ways of
communication taking place between the seller and buyer.
Advertising benefits advertisers in many ways, similarly it makes the public aware with the
available brands so that they can make informed choice among the available products or
brands. But, some of the advertisement doesn't match the ethical norms of advertising, such
ads causes political, cultural, or moral harm to society. Ethical ad is one which is in the limit
of decency, make no false claims, and doesn't lie.
Nowadays advertisements are highly exaggerated and a lot of puffing is used. It seams like
the main area of interest for advertisers is to increase their sales, gain maximum market share,
prove their product best in the market by presenting a well decorated, colourful, and puffed
advertisement.
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Ethical and Moral principles of Advertising
Advertisers must have sufficient knowledge of ethical norms and principles, so that they can
understand and decide what is correct and what is wrong. We can identify several ethical and
moral principles that are particularly relevant to advertising. We are speaking briefly of three
as follows:1.
Truthfulness in advertising;
2.
The dignity of the human person; and
3.
Social responsibility.
Truthfulness in Advertising
Truth in advertising promotes a highly efficient, functioning economy by:

Discouraging deceptive business practices;

Encouraging the provision of accurate and truthful information;

Enhancing competition by ensuring a level playing field; and

Enabling informed consumer choice.
The Dignity of the Human Person

The dignity of human beings should be respected; advertisements should not insult the
dignity of human beings;

Different cultures and ethnic groups should be presented in advertising as equal with
the majority of the population;

Special care should be given to weak and vulnerable groups like - children, poor
people, or elderly people.
Advertising and Social Responsibility
Advertising has a strong social responsibility, independent of its known commercial
responsibility. Advertisers should have a deeper sense of social responsibility and should
develop their own set of ethical and social norms taking into consideration the values of their
society.
CHILREN AND ADVERTISING
Children below ten years of age cannot distinguish good or bad of ads. Some of them may
mislead them and also confuse them because,
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Children lack experience and knowledge to evaluate advertising critically
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-
They cannot differentiate between commercials and program (fantasy vs. reality)
-
Children are vulnerable to advertising
-
Children must learn through the consumer socialization process; need to acquire
skills to function in the marketplace
-
Acquired skills have helped teens evaluate ads and recognize persuasion techniques
SOME ADS WHICH MAKE CHILDREN CONFUSE
Most of the ads mislead children and provoke them to do unnecessary things, for example in
television ads they show superman, shaktiman and other characters as doing some stunts.
Children try to imitate them and fall injuries
•
Cable television programming
•
Internet ads
•
Ads encouraging children to call 100, 108 numbers
•
Cartoon based programmes
•
Marketing of violent films, music and games
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UNIT 2
CREATIV STRATEGY AND COPY WRITING
Ad-creation stage consists of three stages:
1.
Idea Generation
2.
Copy-writing
3.
Layout
1. Idea generation stage
Orientation: First of all in the process of idea generation it is necessary to identify
the purpose or objective of communication then only a proper creative idea can be
decided.
Preparation: Relevant and sufficient information is required to be gathered.
Analysis: Once the information is collected is required to be properly organised under
different heads like- technical information, consumer behaviour information,
competitors' information etc.
Ideation: Ideation is the generation of actual ideas by trying different combinations of
facts and information available.
Incubation: Once ideas are generated, they are kept aside to incubate, i.e., to let
the subconscious mind work on them for some time.
Synthesis: When the team arrives at this step, it is equipped with a number of ideas.
In this stage, the emphasis is on combining these ideas and evolving something
substantial from it.
Evaluation: The various ideas generated in the previous steps are evaluated here.
The criteria used for evaluation are described here. The idea should be
-
Relevant to the communication objectives.
-
Original and capable of catching the attention of the viewer.
-
Flexible so that they can be modified or extended to other advertisements in
the future.
2. Copy Writing
The word 'Copy' has a specific meaning in the world of advertising. Advertisement Copy is
the soul of advertisement. An Advertisement Copy is the written and spoken matter expressed
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in words, sentences, and figures designed to convey the desired message to the target
audience. In print media the elements of an ad-copy are head line, sub-headlines, illustrations,
slogans, and brand name.
Copy approval process
Approaches to Copy Writing
A copy-writer has to answer the following questions to prepare an effective advertising copy:

What am I advertising?

To whom am I advertising?

How can I convey best the advertising message to my readers?

Where and how the product is being sold?

When the product is purchased and used?

What legal implications are involved?
3. Layout
A layout is a miniature sketch of the proposed advertisement. A rough layout is first prepared
in which the headline and subheads are lettered in artwork and photographs are drawn or
provided, and the position various elements of ad-copy is indicated. The rough layout is
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tested and modified to prepare the final layout. The final layout is appended with many
explanations
and
mechanical
designs
to give
a
comprehensive
view.
It
refers
to specifications for estimating costs, guidance for engravers and blueprints for advertisers.
‘Layout’ means two things; in one sense, it means the total appearance of the advertisement –
its design and the composition of its elements; in another sense, it means physical rendering
of the design for the advertisement – its blueprint for production purposes.
Functions of the Layout

It Organises all the Elements

It Brings Together Copy Writer and Art Director

It Enables the Advertiser to Visualize his Future Advertisement.

It Acts as a Guide to the Copy Specialists.
Copy Testing
Copy testing is a means of measuring the communication value of advertising. As a
diagnostic tool rather than an evaluative tool, copy testing can be instrumental to the creative
development process. There are two key objectives in a copy testing framework. One
objective is to determine whether theadvertising can cut through the clutter and make people
stop and notice the ad. The second is to assess whether the ad communicates the intended
message.
ADVERTISING APPEALS
Advertising Appeal is an igniting force which stimulates the customer mindset towards the
product or services. It not the only factor in the marketing mix which initiates a consumer for
buying the product but it is certainly one of the advertisers' most important creative strategy
decisions involves the choice of an appropriate appeal.
Advertising appeals are designed in a way so as to create a positive image of the individuals
who use certain products. Advertising agencies and companies use different types of
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advertising appeals to influence the purchasing decisions of people. There are three types of
appeals:
1.
Rational or Informational Appeal
2.
Emotional Appeal
3.
Moral Appeal
Rational or Informational Appeals
This is generally product oriented appeal, highlights the functional benefits like- quality,
economy, value, or performance of a product. Following are different types of rational
appeals:
Feature Appeal - Advertisements based on such appeal are highly informative, provides
information of product attributes or features that can be used as the basis for rational purchase
decision. Technical and high involvement product often uses this appeal.
Competitive Advantage Appeal - Such appeal is used to compare the product with the
competitor's product directly or indirectly and advertiser try to present his product superior
then competitor's product on one or more attributes.
Favourable Price Appeal - Here price offer is considered as the dominant point of the
message.
News Appeal - Some type of news or announcements about product or company dominates
the advertisement.
Product Popularity Appeal - Product popularity is considered as the dominant point of
advertisement by highlighting the increasing number of users of brand or the number who
have switched to it.
High Quality - Some products are preferred for their quality not merely because of their taste
or style, such products are advertised by highlighting the quality attribute in advertisement .
Low price - Many people prefer low priced goods. To target such audience products are
advertised by highlighting the low price tag of the product.
Long Life - Many consumers want product of durable nature that can be used for a long
period, in advertisement of such product durability is the dominant point of the message.
Performance - Many advertisements exhibit good performance of product.
Economy - Many customers consider savings in operation and use of product, for example in
case of automobile the mileage is considered while selecting the brand or model.
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Scarcity - Another appeal that is occasionally used is scarcity. When there is a limited supply
of a product, the value of that product increases. Scarcity appeals urge consumers to buy a
particular product because of a limitation.
Other Rational Appeals - Other rational appeals include purity, more profits, time saving,
multifunction, more production, regular supply and availability of parts, limited space
required, artistic form, etc. that can make advertising effective.
Emotional Appeals
An emotional appeal is related to an individual’s psychological and social needs for
purchasing certain products and services. Emotions affects all type of purchase decisions.
Types of emotional appeals are as follows:
Positive Emotional Appeal - Positive emotions like- humour, love, care, pride, or joy are
shown in advertisements to appeal audience to buy that product. For example- Jonson and
Jonson baby products.
Negative Emotional Appeal - This includes fear, guilt, and shame to get people to do things
they should or stop.
Fear - Fear is an emotional response to a threat that expresses some sort of danger. Ads
sometimes use fear appeals to evoke this emotional response and arouse consumers to take
steps to remove the threat. For example- Life Insurance
Anxiety - Most people try to avoid feeling anxious. To relieve anxiety, consumers might buy
mouthwash, deodorant, a safer car, get retirement pension plan.
Humour - Humour causes consumer to watch advertisement, laugh on it, and most important
is to remember advertisement and also the product connected with humour. For exampleHappydent, and Mentos.
Moral Appeals
Moral appeals are directed to the consumes’ sense of what is right and proper. These are
often used to exhort people to support social and ethical causes. Types of Moral Appeal are
as follows:

Social awakening and justice

Cleaner and safe environment

Equal rights for women
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
Prohibition of drugs and intoxication

Adult literacy

Anti-smuggling and hoarding

Protection of consumer rights and awakening
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Other Type of Appeals
Reminder Appeal - Advertising using reminder appeal has the objective of building brand
awareness. For example- IPO
Teaser Advertising - Advertisers introducing a new product often use this appeal. It is
designed to build curiosity, interest and excitement about a product or brand. For examplePonds ad of Saif & Priyanka
Musical Appeals - Music is an extremely important component in advertising. It captures the
attention of listeners. For example- Docomo, Airtel
Transformational Appeal - The idea behind this appeal is that it can actually make the
consumption experience better. For example- Ambay products
Comparison Appeal - In this appeal a brand’s ability to satisfy consumers is demonstrated
by comparing its features to those of competitive brands. For example- Tide & Surf
Direct Appeals - Direct appeals clearly communicate with the consumers about a given need.
These extol the advertised brand as a product which satisfies that need.
Indirect Appeals - Indirect appeals do not emphasise a human need, but allude to a need.
MEDIA PLANNING
The word Media came from the Latin word "Middle". Media carry message to or from a
targeted audience and can add meaning to the message.
Media Planning, in advertising, is a series of decisions involving the delivery of message to
the targeted audience. Media Plan, is the plan that details the usage of media in an advertising
campaign including costs, running dates, markets, reach, frequency, rationales, and strategies.
Media Terminology
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Media Planning - Media Planning is the process of designing a strategic course of action that
shows how advertising space and time can be used to present the message in order to achieve
the advertisers goal.
Media Objectives - Media objectives are goals to be attained by the media strategy and
program.
Media Strategy - Decisions on how the media objectives can be achieved.
Media - The Various category of delivery systems including broadcast and print media.
Broadcast Media - T.V., or Radio network or local radio station broadcast.
Print Media - Publications like Newspaper, Magazine, Direct Mail, etc.
Media Vehicle - The Specific Message Carrier, it can be a specific Television Show, or a
Specific News Paper.
Coverage - Refers to the potential audience that might receive the message through the
media vehicle.
Reach - Reach refers to the number of people that will be exposed to a media vehicle at least
once during a given period of time.
Frequency - Frequency refers to the average number of times an individual within target
audience is exposed to a media vehicle during a given period of time.
Media Characteristics
There are two types of media for communication - mass media and interpersonal media.
Interpersonal media is an expensive medium but highly useful for focused reach. On the other
hand mass media like television, or radio, or newspaper are cost efficient and characterised
by wide reach. Now, let's examine the characteristics of each of the mass medium.
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1. Television
Following are the specific characteristics of television:

It is more impact-full as it is the combination of sound, sight, and motion,

It has broad reach and mass coverage,

It is highly intrusive medium,

It has high absolute cost but cost per thousand is moderate.
Television Characteristics
Advantages
Disadvantages

Mass Coverage

Low selectivity

High Reach

High absolute cost

Impact of sight, sound, and

Short message life

High production cost

Clutter
motion

High prestige

Moderate cost per thousand
exposure
2. Radio
Following are the specific characteristics of radio:

It can reach out to remote audiences,

It is most cost efficient among all mass media,

Radio can reach mobile population,

Radio has local market identification.
Radio Characteristics
Advantages
Disadvantages

Local coverage

Audio only

Low cost

Clutter

High frequency

Fleeting message

Low production cost

Well segmented audience
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3. Newspaper
Following are the specific characteristics of newspaper:

Newspaper is a better option to provide detailed information,

A publication have different editions for different areas, so there is a geographic
flexibility innewspaper,

Newspaper have different sections, so there is opportunity of targeting special interest
groups,

Newspaper are vehicle for coupon delivery.
Newspaper Characteristics
Advantages
Disadvantages

High coverage

Short life

Low cost

Only visual

Short lead time for placing ads

Clutter

Ads can be placed in interest sections

Poor reproduction quality

Timely or current ads

Selective reader exposure

Can be used for coupons

Low attention getting capability
4. Magazine
Following are the specific characteristics of magazine:

There are magazines for sports, corporate, business, women. children, etc., so we can
say magazines have specific audience selectivity, as they are specialised,

Magazines have longer life,

Magazines provide them opportunity for message scrutiny, and geographic
and demographic flexibility.
Magazines Characteristics
Advantages
Disadvantages

Segmentation potential

Only visual

High information content

Long lead time for ad placement

Longer life

Compatible editorial environment

Lack of flexibility

Multiple readers

Quality reproduction
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5. Outdoor
Following are specific characteristics of outdoor media:

Outdoor media is easily noticeable, and it provides 24 hours coverage,

Outdoor is location specific media, it has local market presence,

Outdoor media is Cost efficient medium,

It can be good reminder media.
Outdoor Characteristics
Advantages
Disadvantages

24 hour coverage


Location specific
short ads

High resolution

Poor image

Easily noticed

Local restrictions

Cost efficient medium
Short exposure time requires
Steps in Development of Media Plan
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1. Market Analysis
Every media plan begins with the market analysis or environmental analysis.Complete review
of internal and external factors is required to be done. At this stage media planner try to
identify answers of the following questions:

Who is the target audience?

What internal and external factors may influence the media plan?

Where and when to focus the advertising efforts?
The target audience can be classified in terms of age, sex, income, occupation, and other
variables. The classification of target audience helps media planner to understand the media
consumption habit, and accordingly choose the most appropriate media or media mix.
2. Establishing Media Objective
Media objectives describes what you want the media plan to accomplish. There are five key
media objectives that a advertiser or media planner has to consider - reach, frequency,
continuity, cost, and weight.
Reach - Reach refers to the number of people that will be exposed to to a media vehicle at
least once during a given period of time.
Frequency - Frequency refers to the average number of times an individual within target
audience is exposed to a media vehicle during a given period of time.
Continuity - It refers to the pattern of advertisements in a media schedule. Continuity
alternatives are as follows:
Continuous: Strategy of running campaign evenly over a period of time.
Pulsing: Strategy of running campaign steadily over a period of time with intermittent
increase in advertising at certain intervals, as during festivals or special occasions like
Olympics or World-Cup.
Discontinuous: Strategy of advertising heavily only at certain intervals, and no
advertising in the interim period, as in case of seasonal products.
Cost - It refers to the cost of different media
Weight - Weight refers to total advertising required during a particular period.
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3. Determining Media Strategies
Media strategy is determined considering the following:
Media Mix - From the wide variety of media vehicles, the advertiser can employ one vehicle
or a mix suitable vehicles.
Target Market
Scheduling - It shows the number of advertisements, size of advertisements, and time on
which advertisements to appear.
- Seasonal Pulse: Seasonal products like cold creams follows this scheduling.
- Steady Pulse: According to this scheduling one ad is shown over a period of time, say one
ad per week or one ad per month.
- Periodic Pulse: A regular pattern is followed in such scheduling, as in case of
consumer durable, and non durable.
- Erratic Pulse: No regular pattern is followed in such scheduling.
- Start-up Pulse: Such scheduling is followed during a new campaign or a launch of a new
product.
- Promotional Pulse: It is for short time, only for a promotional period.
Reach and frequency
Creative Aspects - Creativity in ad campaigns decides the success of the product, but to
implement this creativity firm must employ a media that supports such a strategy.
Flexibility - An effective media strategy requires a degree of flexibility.
Budget Considerations - In determining media strategy cost must be estimated and budget
must be considered.
Media Selection - It covers two broad decisions - selection of media class, and selection of
media vehicle within media class.
4. Implementation of Media Plan
The implementation of media plan requires media buying. Media Buying refers to buying
time and space in the selected media. Following are the steps in media buying:

Collection of information: Media buying requires sufficient information regarding
nature of target audience, nature of target market, etc.

Selection of Media/Media Mix: Considering the collected information and ad-budget,
media or media mix is selected which suits the requirements of both - target audience
and advertiser.
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
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Negotiation: Price of media is negotiated to procure media at the lowest possible
price.

Issuing Ad - copy to media: Ad-copy is issued to the media for broadcast or telecast

Monitoring performance of Media: Advertiser has to monitor whether the telecast or
broadcast of ad is done properly as decided.

Payment - Finally, it is the responsibility of advertiser to make payment of media bills
on time.
5. Evaluation and Follow-up
Evaluation is essential to assess the performance of any activity. Two factors are important
in evaluation of media plan:

How successful were the strategies in achieving media objectives?

Was the media plan successful in accomplishing advertising objective?
Successful strategies help build confidence and serve as reference for developing
media strategies in future, and failure is thoroughly analysed to avoid mistakes in future.
MEDIA MIX DECISIONS
Which media should the advertiser use? Media planners craft a media mix by considering a
budget-conscious intersection between their media objectives and the properties of the
various potential media vehicles. That is, they consider how each media vehicle provides a
cost-effective contribution to attaining the objectives, and then they select the combination of
vehicles that best attain all of the objectives.
When making media mix decisions, planners look to a whole spectrum of media, not just to
traditional media vehicles such as TV, radio, and print. That is, media planners consider all
the opportunities that consumers have for contact with the brand. These opportunities can be
non-traditional brand contact opportunities such as online advertising, sweepstakes,
sponsorships, product placements, direct mail, mobile phones, blogs, and podcasts. The scale
and situations of media use are especially important when evaluating suitable brand contact
opportunities. For example, product placement in a video game makes sense if the target
audience plays video games. Sweepstakes make sense if many of the target audience find
sweepstakes attractive.
Mix Strategy: Media Concentration vs. Media Dispersion
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A media planner's first media mix decision is to choose between a media concentration
approach or a media dispersion approach. The media concentration approach uses fewer
media categories and greater spending per category. This lets the media planner create higher
frequency and repetition within that one media category. Media planners will choose a
concentration approach if they are worried that their brand's ads will share space with
competing brands, leading to confusion among consumers and failure of the media
objectives.
Media Category Selection
Whether media planners select media concentration or media dispersion, they still must pick
the media category(ies) for the media plan. Different media categories suit different media
objectives. Most media options can be classified into three broad categories: mass media,
direct response media, and point-of-purchase media. A media planner's choice will depend on
the media objectives. If the media planner wants to create broad awareness or to remind the
largest possible number of consumers about a brand, then he or she will pick mass media
such as television, radio, newspaper and magazine. If the media planner wants to build a
relationship with a customer or encourage an immediate sales response, then direct response
media such as direct mail, the Internet and mobile phone are good choices.
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UNIT 3
ADVERTISING BUDGETS
Introduction
In this advertising world, every day we see much advertisement of different products or
brands. Organisations invest heavily in advertising to make their product popular and to
increase sales. But, here the question is - how the organisations decide - how much to
advertise?
How much to invest in advertisement? What should be the size
of advertising budget?
Definition of Advertising Budget
"Advertising budget is an estimated amount an organisation decides to invest in its
promotional expenditures over a period of time. An advertising budget is the money a
company set aside to accomplish its marketing objectives."
It is difficult to measure the effect of advertising on business sales. Advertising is just one of
the
variables
that
affects
sales
in
a
period
of
time.
As
a
percentage
of
sales, advertising expenditure varies from business to business. Because of such
complications it is very difficult for business organisations to decide the size
of advertising budget.
There
are
various approaches that
can
be
used
to
set
advertising budget.
Approaches to Develop Advertising Budget
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1.
Percentage of Sales Budget
2.
Competitive Parity Approach
3.
Objective and Task Approach
4.
All Organisation can Afford Approach
5.
Market Share Approach
6.
All Available Fund Approach
7.
Managerial Judgement Approach
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Percentage of Sales Budget

According to this approach the business organisation have to set
their advertising spending at a fixed percentage of either past or anticipated sales.

This Approach can be followed by organisations operating in markets with stable and
predictable sales pattern.

As it is simple in application, it is most commonly used by small business
organisations.
This approach has some disadvantages, as sales is not directly related to advertising, it
get affected by different variables too.
Competitive Parity Approach

This approach is followed by organisations whose product is well established and
operating in market with predictable sales pattern.

Organisations following this approach compare their advertising spending with that of
its competitors. As the organisation is aware of how much its competitors are
spending inadvertising, it can logically decide its advertising budget either equal,
more, or less to that of the competitors.

Here considering competitors advertising budget organisation should consider its
objectives too, as the competitors objectives may not be similar or comparable.
Objectives and Task Approach

This approach is followed by big organisations having well defined marketing
objectives, and business goals.

Following this approach advertiser can correlate its advertising spending to marketing
objectives.

In long term this correlation is important to keep organisational spending focused on
business goals.
All organisation can afford approach
It is difficult for small business organisations to invest heavily in advertising. Small business
organisation's advertising spending depends more on their affordability. According to this
approach advertisers base their advertising budget on what they can afford.
Market Share Approach
Similar to competitive parity approach, the market share approach bases
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its advertising spending on external market trends. With this method a business equates its
market share with its advertising expenditures.
All Available Fund Approach
According to this approach all available profit is used in advertising spending. It can be too
risky for any size of organisation as the all available fund is used in advertising and no fund is
allocated to help business grow in other ways like- technology up-gradation, or work force
development. This approach is useful for new business organisations trying to develop its
brand.
Managerial Judgement Approach
In long run managers gain expertise in their field of operation. Similarly, some of the
marketing managers working over the years develops a feel for the market that permits them
to arrive at appropriate decisions. According to this approach the
organisations advertising spending depends on the judgement of experienced managers.
Definition of Advertising Agency
According to American marketing Association, "An Advertising agency is an independent
business organisation composed of creative and business people who develop, prepare and
place advertising in advertising media for sellers seeking to find customers for their goods
and services."
Advertising Agency is an independent business organisation specialised in advertising related
work which undertakes the work of planning, preparing, and executing advertising campaign
for its clients. Advertising Agency is a body of experts specialised in advertising. Advertising
Agency performs following activities for its clients:
1.
Planning: Advertising agency studies the product or services of clients to
identify the inherent qualities in relation to competitor's product or services, analyses
competition and marketing environment to formulate advertising plan.
2.
Preparing: After the study of product, competition, and marketing
environment the experts of agency has to write, design, and produce the
advertisement, it is also called formulation of ad-copy.
3.
Executing: Now, media is selected for time or space, ad is delivered to media,
checked, verified, and released in media. After ad release payment is done to media
and client is billed for the services provided.
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Functions of Advertising Agency
Advertising agency performs following functions:
1.
Contacting Clients: Advertising agency first of all identify and contact firms
which are desirous of advertising their product or services. Ad-agency selects
those firms which are financially sound, makes quality products or services, and
have efficient management.
2.
Planning Advertisement: Advertising agency's next function is to plan ad for its
client. For ad planning following tasks are required to be performed by adagency:

Study of client’s product to identify its inherent qualities in relation to
competitor’s product.
3.

Analysis of present and potential market for the product.

Study of trade and economic conditions in the market.

Study of seasonal demand of the product

Study of competition, and competitor’s spending on advertising.

Knowledge of channels of distribution, their sales, operations, etc.

Finally, formulation of advertising plan
Creative Function: Creative people like - the copywriters, artists, art-directors,
graphic-specialists have to perform the creative function which is most important
part of all advertising function.
4.
Developing Ad-Copy: Ad-agency with the help of their writers, artists,
designers, animators, graphic-designers, and film-directors prepares and develops
Ad-copy.
5.
Approval of Client: Ad-copy is shown to the client for his approval
6.
Media Selection and scheduling: It is very important function of ad-agency to
select appropriate media for its clients. Ad-agency has to consider various factors
like- media cost, media coverage, ad-budget, nature of product, client's needs,
targeted customer, and etc while selecting media.
7.
Ad-Execution: After approval, verification, and required changes, the ad-copy is
handed to the media for ad-execution.
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8.
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Evaluation Function: After execution, it is the responsibility of ad-agency to
evaluate the effectiveness of ad to know how beneficial the ad is for its client.
9.
Marketing Function: The advertising agency also performs various marketing
function like- selecting target audience, designing products, designing packages,
determining prices, study of channel of distribution, market research, sales
promotion, publicity, etc.
10.
Research Function: Ad-agency performs various research functions likeresearch of different media, media cost, media reach, circulation, entry of new
media, information regarding ratings, and TRP's of TV programmes, serials.
11.
Accounting Function: Accounting function of ad-agency includes checking bills,
making payments, cash discounts allowed by media, collection of dues from
clients, payment to staff, payment to outside professionals like- writers,
producers, models, etc.
SELECTION OF AD AGENCY
Services offered by Ad-agency - There are different agencies provides different services,
some provides all the services, some provide selected services, some provides only media
services. It depends on the requirement of advertiser whether he need a fulls service agency,
creative boutique, media buying service agency, or a sweet shop.
Experience of Agency - An experienced agency performs better then a new agency because
it is familiar with different components of marketing environment like- competitors' policies,
taste of consumer, income of consumer, consumer responses, fashions and trends, reputation
of different media etc.
Location - A major factor to be considered while selecting ad-agency is location of office of
agency. A considerable amount of communication is required at different level of ad
planning, creation and execution. So, a local or near by ad-agency should be preferred which
is easily accessible.
Size of Agency - There are both large size agencies and small size agencies, both have their
own advantages and disadvantages. Large agencies serves big clients, provides wide variety
of services, and charges higher but, cannot give personal attention because of having large
number of clients, also cannot give much attention to small clients because of having large
number of big clients.
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Competitors' Agency - Agency which is working for competitors must be avoided otherwise
agency will not prepare ads which help the advertiser to take an edge over competition.
Image of Agency - While selecting ad-agency the advertiser should enquire the image,
integrity, ethical standards, and relations of agency with its clients. Creativity and other skills
- Ad-agency must be creative enough to generate new ideas to gain the attention of target
audience.
Rates Charged by Agency - The rates of agency must suit the pocket of client. Advertiser
should select agency whose rates are reasonable and within the ad-budget.
Financial Strength of Agency - A financially strong ad-agency have better turnover and
better contacts with media owner, and afford better infrastructure, well-equipped-ad labs, and
quality staff.
Past Records of Agency - It is necessary to know who were the past clients of agency, how
long were they with agency, why they left the agency, brand image of products of clients, etc.
EVALUATING OF ADVERTISING EFFECTIVENESS
In today's advertising world, every firm invests heavily on advertisement for making their
products or services known to the target audience and to arouse the interest of target
audience in firm's products or services. Advertising is done with some predefined objectivesto generate awareness about product, to arouse interest in product, to change the attitude of
audience towards product, to stimulate desire for product, or to make them buy the product.
Advertising is of no use if the defined objectives of communication is not achieved. So, it is
necessary to evaluate the effectiveness of advertisement at different level, starting from
creation of ad-copy to running of ad on media, and also after execution of ad to know to what
extent the objectives are achieved.
Types of Test
Following are the types of test applied in advertisement evaluation:

Pre-Testing

Concurrent Testing

Post Testing
1. PRE-TESTING
Pre-Testing follows the universal law "Prevention is better than cure". Advertising can be
pretested at several points in the creative development process. Pre-Testing helps the
advertiser to make a final go or no go decision about finished or nearly finished
advertisement. Pre-Testing method refer to testing the potentiality of a communication
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message or ad-copy before printing, broadcasting, or telecasting. Following are the types of
pre-testing methods:
A. Qualitative Methods of Pre-Testing
Focus Group: Focus group involve exposing the ad to a group of 8 to 12 respondents. Focus
groups are used with surprising frequency for making final go or no go decision. A moderator
facilitates the discussion and walk s the group through a series of issues that are outlined in
discussion guide.
In-depth Interview: In-depth interview involve one on one discussion with respondents.
Interviews are very effective when a researcher has a good idea of critical issues but does not
have a sense of the kind of responses one will get. This method can be effectively used to
generate new ad concepts and ideas.
Projective Techniques: In this technique the respondent is instructed to project himself into
the situation and verbalise the thoughts. projective technique can be very effective for
evaluating ad concepts and for generating new ad concepts. But, it cannot be used for making
final decisions.
B. Quantitative Methods of Pre-Testing
Checklist Method: Checklist method is used to test the effectiveness of ad-copy. The
purpose of this method is to ensure that all elements of the ad-copy are included with due
importance in the advertisement. As it is a pre-test method any omitted element of ad can be
included in the copy before release of the advertisement.
Consumer Jury Method: This method involves the exposure of alternative advertisements
to a sample of jury or prospects. This test is designed to learn from a typical group of
prospective customers. Advertisements which are unpublished are presented before the
consumer jury either in personal interviews or group interviews and their reactions are
observed and responses are recorded.
Sales Area Test: Under this method advertising campaign is run in the markets selected for
testing purposes. The impact of the campaign is evaluated by actual sales in the selected
markets. The market with high sales is considered the best market for effective sales
campaign. In other markets suitable changes are made in the advertising campaign.
Questionnaire Method: It is a list of questions related to an experiment. The draft of an
advertisement along with some relevant questions is to be sent to a group of target consumers
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or advertising experts. Their opinions are collected and analyzed to find out whether the
proposed advertisement is satisfactory or not.
Recall Test: Under this method, advertising copies are shown to a group of prospects. After
few minutes they are asked to recall and reproduce them. This method is used to find out how
far the advertisements are impressive.
Reaction Test: The potential effect of an advertisement is judged with the help of certain
instruments, which measure heartbeats, blood pressure, pupil dilution etc. Their reactions
reveal the psychological or nervous effects of advertising.
Readability Test: All the listeners of advertisements cannot read it equally. So respondents
are drawn from different socio economic and geographical backgrounds. This method is used
to find out the level of effectiveness when and advertisement is read.
Eye Movement Test: The movements of eyes of the respondents are recorded by using eye
observation camera when advertisements are shown to them in a screen. This helps to find
out the attention value of advertisement.
2. Concurrent Testing
Concurrent testing is evaluated throughout the whole advertisement execution process. Tests
are conducted while audience is exposed to different type of media. Following are the types
of concurrent testing methods:
Consumer Diaries: Diaries are provided to a selected customers. They are also informed to
record the details of advertisements they watch, listen or read. The diaries are collected
periodically. The result obtained from such a survey reveals the effectiveness of
advertisement.
Co-incidental Surveys: This method is also called as co-incidental telephone method. Under
this method, samples of customers are selected and calls are made at the time of broadcast of
the advertisement programme. The data obtained and analyzed will give a picture about the
effectiveness of an advertisement.
Electronic Devices: Now day’s electronic devices are widely used to measure the
effectiveness of an advertisement. They are mainly used in broadcast media. These are auto
meters, track electronic units etc.
3. Post Testing
Post testing is done to know- to what extent the advertising objectives are achieved.
Following are the types of post testing methods:
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Recognition Test: Recognition test involves the ability of viewers to correctly identify ad,
brand, or message they previously exposed to. The types of recognition test are:
Starch Test - The Starch test is applied only to print ads that have already run. The
interviewer shows each respondent a magazine or newspaper containing the ads being tested.
For each ad the interviewer asks the respondents to reply to ad related questions.
Bruzzone Test - The Bruzzone test is conducted through mail surveys. Questionnaires
containing frames and audio scripts from television commercials are sent to respondents and
respondents are asked whether they recognise the ad and brand.
Recall or Impact Test: The recall test is designed to measure the impression of readers or
viewers of the advertisement. If a reader has a favorable impression of the advertisement, he
will certainly retain something of the advertisement. The measures of interest would be
obtained by interviewing the readers or viewers or listeners, days after the advertisement or
commercial is appeared in the newspaper, or on T.V. Interviewer asks the readers or viewers
to answer some ad related questions, and in response to the question asked, the reader reveals
the accuracy and depth of his impression.
UNIT 4
TELEMARKETING
Telemarketing can be an effective tool for your business and it can be an easy and effective
way to increase your profits and promote your product or service. However, it does have
some disadvantages that you should also consider.
Benefits of using telemarketing
The main benefit of using telemarketing to promote your business is that it allows you to
immediately gauge your customer's level of interest in your product or service. Additionally
it allows you to do the following:

provide a more interactive and personal sale service
 create an immediate rapport with your customers
 explain technical issues more clearly
 generate leads and appointments
 sell from a distance to increase your sales territory
 reach more customers than with in-person sales calls
 sell to both existing and new customers
 achieve results that are measurable
Disadvantages of telemarketing
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There can be as many negatives using telemarketing as there are positives. In particular, you
need to consider that:

telemarketing can be resented - particularly when dealing with business-to-consumer
customers, and when calls are made in the evenings

customer lists may not always be clean and opted-out - this leaves you with a potential
risk of breaking the law

customer lists can be very costly

telemarketing has a negative image that could damage your business' reputation - if
carried out poorly

telemarketing has the potential to replace a sales team and this could lead to negative
feelings among employees

training staff can be time-consuming and costly

you may need to prepare a script
 an outside service provider can result in your losing control over your sales processes
because the people doing the work aren't your employees
Targeting consumer audiences using telemarketing
You can ensure that you target the correct group of customers and potential customers for
your product or service by obtaining telemarketing lists. These lists need to be 'clean' - ie only
contain details of individuals and organisations that have chosen to receive unsolicited sales
calls. Any customers who do not wish to receive calls will have joined specialised lists.
Even if customers are on preference lists, there are certain ways to target the correct
audiences for your products or services. For example, you could consider:



Contacting people that are new to an area - you can access new telephone numbers before
people are registered on 'do-not-call lists'. This audience is often in the market for products
and services related to setting up new households.
Customising your pitch to make it appropriate to your audience - you could consider
adjusting your data to target specific demographics like age, location, or profession.
Developing lists that are based on particular interests. You can run contests or drawings at
events - ideal places where you can capture opted-in information.
It is crucial that you do not make calls to anyone who is registered on a Telephone Preference
Service or a Corporate Telephone Preference Service list.
Measuring the success of your telemarketing campaign
To ensure that your telemarketing campaign is effective and efficient, it is important that you
evaluate its success at regular intervals. There are a number of methods you can use to
measure the results of your campaigns, such as the following:



comparing it to previous campaigns from the year before that ran within the same time period
keeping track of calls and orders received and compare these results with the previous year's
statistics
judging the effectiveness of the cold calls by the reactions of customers contacted
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assessing the number of leads generated within a particular time period
recording the number of meetings that are generated from the leads received
comparing the cost of the telemarketing against the money made in overall sales
checking the value of sales in pounds made per hour
You should consider running a test telemarketing campaign to work out how you will assess
success or failure, before you begin a more permanent campaign. You can then use this
information for any future campaigns you decide to undertake.
You should record any information specific for a campaign, such as:




the telemarketed product
the number of calls
the targeted group of customers
the address source
Ensure that you also record the costs of the address source, telephone charges and any other
relevant costs for each campaign.
PROCESS OF TELEMARKETING
The aspect of selling that strikes the greatest fear in people's hearts is usually cold calls. A
good way to make cold calls more appealing is to stop thinking of them as "cold" calls. Try
thinking of them as "introductory" calls instead. All you're trying to do is introduce yourself
and your business to the prospect.
It's important to understand the purpose of introductory calls so you have a realistic attitude
about this type of business development activity. Phone prospecting takes longer to pay off
than other types of marketing efforts, so go into it knowing you're exploring a new frontier,
and it's going to take some time to get results.
Just as with any marketing method, you should never make introductory calls without a plan.
First, always use a targeted list of prospects when making your calls. If your product is
household cleaning services, why call a random neighborhood if you have no knowledge of
income levels, number of household wage earners, or number of children? If you sell
nutritional products to hospitals, why call nurses or doctors if a third-party pharmacy makes
all the buying decisions? Get the right list of prospects.
You can obtain information about prospects from the list broker who provides you with the
list;
if you are working from your house list, you should already have the information. If for some
reason you don't, try an introductory call like the following: "We provide mobile pet
grooming for dogs and cats. Would that be a service your customers would want to know
about, Mr./Ms. Veterinarian?"
Next, determine the best time frames for calling. If you are selling financial services to upperincome CEOs or entrepreneurs, wouldn't it be nice to know when their corporate fiscal years
end? Perhaps most of their investment purchases are made two to four weeks prior to that
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year-end close-out. That's when they know how much extra income needs to be sheltered in a
pension plan.
Sometimes timing is your ace in the hole. Granted, follow-up calls throughout the year may
make that one important sale possible, but knowing when to instigate the first call is a
priceless piece of information.
Third, plan by preparing a "sales script" ahead of time. Write down what you are going to
say, what responses the prospect is likely to have and how you will reply to them. No, you're
not going to follow this word for word, but if you're nervous about making calls, it helps to
have something in front of you. Chances are, after you get beyond the opening sentences,
you'll be able to "wing it" just fine.
If preparation for cold-calling is easy but actually making calls is painful for you, here are
seven easy steps to get you on the phone fast:
1. Personalize each call by preparing mentally. Your mind-set needs to be aligned with
your language, or the conversation will not ring true. You need to work on developing a
warm but not sugar coated telephone voice that has that "Don't I know you?" or "Gee, you
sound familiar" ring to it.
2. Perfect your phone style alone before making any calls. If you are self-conscious about
calling, you need to feel safe to act uninhibited. Try this: Gather a tape recorder, a mirror, a
sales journal of incoming and outgoing phone scripts, a pen and a legal-sized pad. Either
write or select a favourite phone dialogue; then talk to yourself in the mirror. Do you look
relaxed, or are your facial expressions rigid? Our exteriors reflect our inner selves. If you
look like you're in knots, your voice will sound strained as well.
Push the "record" button on your tape recorder, and pretend you're talking to a new prospect.
Play back the tape, and listen to your conversation. Ask yourself how you could improve
your delivery. If your voice seems unnatural and the dialogue contrived, do not despair. As
you practice and participate in real phone experiences, you will improve. Mastering the art of
cold-calling is no different than improving your golf swing or skiing technique.
3. Create familiarity all around you. Use family photos, framed testimonial letters,
motivational quotes, or whatever gets you in a positive, enthusiastic mood. If you like, play
some music that inspires you.
4. Use your imagination. Pretend you are a prospective customer calling a bookstore to see
if they have a book in stock. If it helps, record how you sound to get the feel of your inquiring
phone voice. It's always easier to imagine you're a customer in need of information than a
salesperson trying to force your way into the customer's time. The inquiry call is good
practice because the tone of the conversation is "Can you help me?" or "I need some
information." Try to convey that same attitude when you use the phone to contact future
customers.
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5. Watch your tone of voice. You do not want to sound sheepish and embarrassed, nor do
you want to be arrogant. The ideal tone is warm, businesslike, curious and straight to the
point. A good option is a question or a cut-to-the-chase statement such as: "I've got a
problem. We are offering a two-for-one special during the next 30 days on all our coffee
drinks, just to get people into the store. I need to know if you have ever stopped in while
shopping at the mall, and, if not, why not? We have got the greatest ice-blended mochas in
town."
6. Make your goal a fast "50 in 150"-that is, 50 calls in 150 minutes. Three minutes per
call is all you need. With so many voice-mail systems intercepting calls today, this should be
easy. Never give people the impression you have time to chat. Chatting is not prospecting.
You're on a mission. Get to the point, then move to the next prospect.
7. Take five after 15. After 15 calls, take a five-minute break-stretch, eat, sip a soda, turn on
some tunes, and pat yourself on the back because you're making it happen. Then grab the
phone for 15 more calls.
HOME SHOPPING
Shopping carried out from one’s own home by ordering goods advertised in a catalogue, on
television, or over the Internet.
If you want instant — and HUGE — exposure for your product, check out home shopping
networks such as QVC. If you’ve got the right product, QVC can be an excellent distribution
channel.
QVC has been instrumental in the success of many products. Footless hosiery Spanx first
appeared in QVC in May 2001 and sold 8,000 pairs in under eight minutes. Necklace
extender Shooks sold $37,128 worth of products in less than five minutes, while the
illuminated fragrance jar of Potpourri Glo sold $39,018 worth of products. And the list goes
on and on.
But selling on QVC has its advantages and disadvantages that you should consider. While the
network offers an incredible opportunity to new entrepreneurs, potential participants should
also understand that they’ll assume some risk should their product be chosen.
Advantages
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Television allows for three dimensional demonstrations of your product. Through
your story and live presentation, you can convince the customers of the benefits your
product can offer.
Response can be instantaneous. If your product resonates with the audience, home
shopping networks can allow you to move thousands of units of your products in a
few minutes.
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Huge distribution potential. As amazing as that is for an unknown merchant hawking
an unknown product, the feat is repeated over and over again during the show.
Ability to reach wide geographic targeting of audience.
Venue allows for feedback from buyers. The company encourages feedback from its
customers and so remains aware of what they want.
Disadvantages




Getting in on the show is tough. On average QVC receives 20,000 applications a year,
only 4 percent of those landed on the show.
Huge inventory requirements. You will be required to have enough inventory in stock
prior to your appearance in the show. But you will be paid only if and when QVC
sells your product.
Rigorous quality tests. Your products must pass QVC quality standards. Depending
how much you want your product to be on QVC, you must be willing to change the
packaging or even the use of your products as you’ve envisioned it to be in order to be
acceptable to QVC audience
QVC can remove your items. QVC’s success stems from listening to their customers.
As such, they take no chances with their products and will quickly remove any item
that gets complaints totaling more than one percent of units shipped.
CATALOGUES
Definition: Catalogue Marketing
Catalogue Marketing is form of direct marketing where the seller prepares catalogues of
merchandise or products and sells directly to the customer. The catalogues are generally in
printed form but can also be distributed in the form of CDs. To avoid printing and
distribution costs, the catalogues are being increasingly made available online. Products from
various companies or vendors may be combined into a single catalogue to provide a one shop
point for customer looking out for a particular type of product.
Example : Avon is a good example of a company successfully leveraging this channel to sell
its range of cosmetics. Catalog marketing is a sales technique used by businesses to group
many items together in a printed piece or an online store, hoping to sell at least one item to
the recipient. Consumers buy directly from the catalog sender by phone, return envelope or
online using information in the catalog. Some catalog marketers act as intermediaries
between consumers and manufacturers, while businesses with more than a few items create
their own catalogs.
Print Catalogs
A print catalog usually consists of a cover that announces what type of items the piece
contains, followed by the items. Some catalogs feature a single product category, such as
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clothing, while others include a diverse collection of goods. The catalogs contain photos and
descriptions of the items, as well as prices and ordering information. Some come with order
forms and return envelopes with prepaid postage. Others require shoppers to order by phone.
Catalog marketers use targeted mailing lists to increase sales and decrease the printing and
mailing costs associated with waste circulation. Some print catalogs are included with items
shipped to online buyers to generate additional sales.
Online Catalogs
To save on the cost of printing and mailing and to allow retailers to update prices, products
and promotions more quickly, some business put their products in an online catalog. The
products are grouped and displayed in a similar fashion to a print catalog, but consumers can
sort items by price, category, manufacturer or other criteria. These catalogs allow shoppers to
purchase immediately, using a virtual shopping cart and an electronic payment method.
Single Company Catalogs
Some companies with many products produce their own catalogs. Examples include
manufacturers of apparel, footwear, sporting goods, kitchen accessories, auto parts, home
furnishings, lawn and garden items, health, beauty and food items. The manufacturer might
group similar products to allow consumers with a specific interest to quickly find what they
want, or they might spread items throughout the catalog to make shoppers view more items,
hoping to increase impulse buys. The manufacturer processes the orders, ships the items and
handles customer service, cutting out the cost of wholesalers or distributors.
Multiple Company Catalogs
Some catalogs feature products from a variety of manufacturers, giving companies with
fewer products a chance to use catalog marketing. This allows mass retailers to include more
items in their catalogs. In these types of catalogs, you might see several competing products
on the same page. The producer of the catalog takes direct payment from the consumer,
giving a portion of the sale to the manufacturer after the money is collected. Some multicompany catalog marketers fulfill orders from their warehouses, while others send orders to
the manufacturer, who ships the item and handles returns and customer service.
DIRECT MAIL ADVERTISING
Contacting carefully targeted prospects with custom tailored offers or promotional material
(such as brochures, circulars, letters, newsletters) on one-to-one basis via ordinary mail or
email. These mailings almost always carry a response mechanism such as a toll-free number,
website address, and/or a business-reply card. In the US, direct mail advertising is the largest
single advertising medium totaling over $50 billion per year, or about 35 percent of all annual
advertising expenditure. See also direct mail and direct response advertising.
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Direct mail encompasses a wide variety of marketing materials, including brochures,
catalogs, postcards, newsletters and sales letters. Major corporations know that direct-mail
advertising is one of the most effective and profitable ways to reach out to new and existing
clients.
What's the advantage? Unlike other forms of advertising, in which you're never sure just
who's getting your message, direct mail lets you communicate one-on-one with your target
audience. That allows you to control who receives your message, when it's delivered, what's
in the envelope and how many people you reach.
To create an effective direct-mail campaign, start by getting your name on as many mailing
lists as possible. Junk mail isn't junk when you're trying to learn about direct mail. Obtain
free information every chance you get, especially from companies that offer products or
services similar to yours. Take note of your reaction to each piece of mail, and save the ones
that communicate most effectively, whether they come from large or small companies.
The most effective direct-mail inserts often use key words and colors. Make sure the colors
you use promote the appropriate image. Neon colors, for example, can attract attention for
party planner or gift basket businesses. On the other hand, ivory and gray are usually the
colors of choice for lawyers, financial planners and other business services.
To involve the reader in the ordering process, many mailers enclose "yes" or "no" stickers
that are to be stuck onto the order form. Companies such as Publisher's Clearing House take
this technique farther by asking recipients to find hidden stickers throughout the mailing and
stick them on the sweepstakes entry. It also asks customers to choose their prizes, which gets
them even more involved.
Next, read up on the subject. A wealth of printed information is available to help educate you
about direct mail. Do-It-Yourself Direct Marketing: Secrets for Small Business by Mark S.
Bacon is a comprehensive manual that touches on all aspects of direct mail. Two of the
better-known publications are DM News, a weekly trade paper, and Direct Magazine, a
monthly.
The Direct Marketing Association (DMA) is a national trade organization for direct
marketers. For a catalog that highlights many of the direct marketing industry's books, a free
brochure that lists a variety of direct marketing institutes and seminars across the country, or
more information about joining, call the DMA at (212) 768-7277. You can also visit the
group's website.
With any type of direct mail, appropriately timed follow-up is key. Mailings with phone
follow-ups are most effective. Don't wait too long to contact your customers after doing your
mailing: After several days, call to ask if they've received your card, letter or e-mail. If they
have, now's the time to make your sales pitch. If they haven't, mail them another ASAP.
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Popularity of Direct Mail Advertising
Direct mail is the most heavily used direct marketing medium, and its popularity continues to
grow despite postage increases. The mail is the third largest advertising medium after
newspapers and television because it can be directed to a specific target audience and sent
cheaply using bulk mailing rates.
Direct mail is a particularly attractive option for small business owners, as it can
communicate a lot of information about a product or service and reach almost any
conceivable target group for a relatively low cost. Direct mail can be a company's sole form
of advertising, or it can be used to supplement other sales efforts. For example, a small
business could use direct mail to inform potential customers about its offerings, then follow
up with a phone call or a visit from a salesperson.
Direct Mail Advantages
Owners of start-up businesses may find direct mail an effective method of creating awareness
and interest in a new product, while owners of existing companies may find it useful for
generating new business outside of their customer base or geographic area. Another
advantage of direct mail is that it is testable, so that entrepreneurs can try out different sales
messages on various audiences in order to find the most profitable way to market a product or
service.
The Cost of Direct Mail
The largest single expense of direct mailing is postage, and can account for one-third of the
total cost of a direct mail campaign. Other costs include designing, writing, printing and
packing the mailing, and buying mail lists. A four-color postcard is the simplest and most
common form of direct marketing and is also the least expensive to mail. Other forms of
direct marketing such as mailers, brochures, newsletters, and catalogs can raise costs
considerably.
INTERNET ADVERTISING
Definition - What does Online Advertising mean?
Online advertising is a marketing strategy that involves the use of the Internet as a medium to
obtain website traffic and target and deliver marketing messages to the right customers.
Online advertising is geared toward defining markets through unique and useful applications.
Since the early 1990s there has been an exponential increase in the growth of online
advertising, which has evolved into a standard for small and large organizations.
Online advertising is also known as Internet advertising.
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Techopedia explains Online Advertising
A major advantage of online advertising is the quick promotion of product information
without geographical boundary limits. A major challenge is the evolving field of interactive
advertising,
which
poses
new
challenges
for
online
advertisers.
Online advertisements are purchased through one of the following common vehicles:



Cost per Thousand (CPM): Advertisers pay when their messages are exposed to
specific audiences.
Cost per Click (CPC): Advertisers pay every time a user clicks on their ads.
Cost per Action (CPA): Advertisers only pay when a specific action (generally a
purchase) is performed.
Examples of online advertising include banner ads, search engine results pages, social
networking ads, email spam, online classified ads, pop-ups, contextual ads and spyware.
Advertising is the branch of marketing that deals with communicating to customers about
products, brands, services and companies. The Internet, as a global communications medium,
provides advertisers with unique and often cost-effective ways of reaching advertising
audiences. As with all media, however, advertising on the Internet has unique advantages and
disadvantages.
Significance
Advertising on the Internet is almost a necessity for modern businesses, especially those that
do business outside of their local community. Consumers use the Internet for more than
simply entertainment or information, as they do with radio, television, magazines and
newspapers. Consumers use the Internet to assist them in nearly every aspect of life, creating
countless opportunities to place relevant, targeted ad messages.
Advantages
The Internet's vast reach can allow advertisers to reach significantly more people than
traditional advertising media at a fraction of the cost. Internet advertising is ideal for
businesses with a national or international target market and large-scale distribution
capabilities. As a rule, the more people your business serves, the most cost-efficient internet
advertising can be. Internet advertising can also be more targeted than some traditional
media, ensuring that your messages are seen by the most relevant audiences.
Disadvantages
One disadvantage of advertising on the Internet is that your marketing materials are
automatically available for anyone in the world to copy, regardless of the legal ramifications.
Logos, images and trademarks can be copied and used for commercial purposes, or even to
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slander or mock your company. This is not the case with television and magazine advertising,
wherein images must be replicated rather than simply copied electronically.
Another disadvantage is the fact that the Internet-advertising gold rush has begun to introduce
ad clutter to the Web. Web users are so inundated with banner ads and spam email that they
have begun to ignore internet advertising just as much as ads on traditional media.
Considerations
In addition to advertising, the Web offers high-impact opportunities to leverage word-ofmouth marketing and generate buzz about your company. Product review websites and social
media outlets, among other web communities, allow customers to praise or condemn your
company based on their personal experiences. Thus, the Internet ties the customer service
component directly to advertising.
Future
The Internet is likely to continue to play a large role in individuals' lives in the foreseeable
future. Whether personal computers remain the dominant method of accessing the Internet,
some form of global communication network will likely be a reality for many generations,
creating effective avenues of sending advertising messages to consumers in the community
and around the world.
INTERNATIONAL ADVERTISING
International advertising can be defined as a subfield in advertising and international
marketing that studies the differences and similarities in advertising across different nations
and how one country’s advertising overseas affects the other country. There are different
conceptions of international advertising based on the scope of the study. For example, from
an ethnocentric point of view, international advertising can simply be any advertising outside
the home country of the researcher. Using this perspective, international advertising is
synonymous with foreign advertising. Because the United States is the core country in
publishing advertising research, for a US researcher or US-based journals, all advertising
studies conducted outside the United States can be considered “international advertising”
research. To a researcher in China, however, advertising in the United States is “international
advertising.” Such a configuration of international advertising is certainly relative to the
home country of the researcher and does not strictly following the definition of “international
advertising” that involves more than one nation. Despite its flaw, this is a quite common use
of international advertising in research categorization. Such a conception underscores the
importance of knowing the advertising practices and consumer behaviors in other countries to
understand advertising across nations. Hence, this bibliography includes some single-country
advertising research conducted in non-US countries on pertinent advertising topics published
in English-language journals and books, but the focus is on advertising practices and effects
in multiple countries, as well as cross-country and cross-cultural comparison of advertising.
Some variations of “international advertising” are “global advertising” and “multinational
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advertising.” The former has no specific country in focus, while the latter usually focuses on
specific nations of interest in the research. In the most refined term, international advertising
is about advertising in different nations and between nations. The “nation” can be a national
culture, a country, or an ethnic group. In addition, what constitute “advertising” determines
the scope of topics covered. For example, some researchers may consider product placement
a paid communication with identified sponsors; and equate advertiser-manipulated electronic
word-of-mouth recommendation (eWOM) to advertising. Hence international advertising can
include studies on how product placement and e-WOM is being done by international brands
across nations. Advertising can be for profit or cause-related for nonprofit organizations.
International advertising includes any form of controlled message provided in a third-party
media space in different countries.
INTERNATIONAL ADVERTISING REGULATION
Is advertising the ultimate means to inform and help us in our everyday decision-making or is
it just an excessively powerful form of mass deception used by companies to persuade their
prospects and customers to buy products and services they do not need? Consumers in the
global village are exposed to increasing number of advertisement messages and spending for
advertisements is increasing accordingly.
It will not be exaggerated if we conclude that we are 'soaked in this cultural rain of marketing
communications' through TV, press, cinema, Internet, etc. (Hackley and Kitchen, 1999). But
if thirty years ago the marketing communication tools were used mainly as a productcentered tactical means, now the promotional mix, and in particular the advertising is focused
on signs and semiotics. Some argue that the marketers' efforts eventually are "turning the
economy into symbol so that it means something to the consumer" (Williamson, cited in
Anonymous, Marketing Communications, 2006: 569). One critical consequence is that many
of the contemporary advertisements "are selling us ourselves" (ibid.)
The abovementioned process is influenced by the commoditisation of products and blurring
of consumer's own perceptions of the companies' offering. In order to differentiate and
position their products and/or services today's businesses employ advertising which is
sometimes considered not only of bad taste, but also as deliberately intrusive and
manipulative. The issue of bad advertising is topical to such extent that organisations like
Adbusters have embraced the tactics of subvertising - revealing the real intend behind the
modern advertising. The Adbusters magazine editor-in-chief Kalle Lason commented on the
corporate image building communication activities of the big companies: "We know that oil
companies aren't really friendly to nature, and tobacco companies don't really care about
ethics" (Arnold, 2001). On the other hand, the "ethics and social responsibility are important
determinants of such long-term gains as survival, long-term profitability, and competitiveness
of the organization" (Singhapakdi, 1999). Without communications strategy that revolves
around ethics and social responsibility the concepts of total quality and customer
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relationships building become elusive. However, there could be no easy clear-cut ethics
formula of marketing communications.
ADVERTISING - PRESCIOUS INFORMATION OR VICIOUS MANIPULATION?
In order to get insights into the consumer perception about the role of advertising we have
reviewed a number of articles and conducted four in-depth interviews. A number of research
papers reach opposed conclusions. These vary from the ones stating that "the ethicality of a
firm's behavior is an important consideration during the purchase decision" and that
consumers "will reward ethical behavior by a willingness to pay higher prices for that firm's
product" (Creyer and Ross Jr., 1997) to others stressing that "although consumers may
express a desire to support ethical companies, and punish unethical companies, their actual
purchase behaviour often remains unaffected by ethical concerns" and that "price, quality and
value outweigh ethical criteria in consumer purchase behaviour" (Carrigan and Attalla, 2001).
Focusing on the advertising as the most prominent marketing communication tool we have
constructed and conducted an interview consisting of four themes and nine questions. The
conceptual frame of this paper is built on these four themes.
THEME I. The Ethics in Advertising
The first theme comprises two introductory questions about the ethics in advertising in
general.
I.A. How would you define the ethics in advertising?
The term ethics in business involves "morality, organisational ethics and professional
deontology" (Isaac, cited in Bergadaa', 2007). Every industry has its own guidelines for the
ethical requirements. However, the principal four requirements for marketing
communications are to be legal, decent, honest and truthful. Unfortunately, in a society where
the course of action of the companies is determined by profit targets the use of marketing
communications messages "may constitute a form of social pollution through the potentially
damaging and unintended effects it may have on consumer decision making" (Hackley and
Kitchen, 1999).
One of the interviewed respondents stated that "the most successful companies do no need
ethics in their activities because they have built empires." Another view is that "sooner or
later whoever is not ethical will face the negative consequences."
I.B. What is your perception of the importance of ethics in advertising?
The second question is about the importance of being moral when communicating with/to
your target audiences and the way consumers/customers view it. In different research papers
we have found quite opposing conclusions. Ethics of business seems to be evaluated either as
very important in the decision making process or as not really a serious factor in this process.
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An example of rather extreme stance is that "disaster awaits any brand that acts cynically"
(Odell, 2007).
It may seem obvious that the responsibility should be carried by the advertiser because "his is
the key responsibility in keeping advertising clean and decent" (Bernstein, 1951). On the
other hand the companies' actions are defined by the "the canons of social responsibility and
good taste" (ibid.). One of the interviewees said:
"The only responsible for giving decent advertising is the one who profits at the end.
Company's profits should not be at the expense of society."
Another one stated that "our culture and the level of societal awareness determine the good
and bad in advertising".
The increased importance of marketing communications ethics is underscored by the need of
applying more dialogical, two-way communications approaches. The "demassification
technologies have the potential to facilitate dialogue", but the "monologic" attitude is still the
predominant one (Botan, 1997). Arnold (2001) points out the cases of Monsanto and Esso
which had to pay "a price for its [theirs] one-way communications strategy". In this train of
thought we may review ethics in advertisements from two different perspectives as suggested
by our respondents and different points of view in the reviewed papers. The first one is that it
is imperative to have one common code of ethics imposed by the law. The other affirms the
independence and responsibility of every industry for setting its own standards.
THEME II. Which type of regulation should be the leading one in the field of advertising?
The next theme directs the attention towards the regulation system which should be the
primary one. Widely accepted opinion is that both self regulation and legal controls should
work in synergy. In other words the codes of practice are meant to complement the laws.
However, in certain countries there are stronger legal controls over the advertising, e.g. in
Scandinavia. On the other hand the industry's self regulation is preferred in the Anglo-Saxon
world. Still, not everyone agrees with the laissez-faire concept.
One of our respondents said:
"I believe governments should impose stricter legal frame and harsher punishment for
companies which do not comply with the law."
Needless to say, the social acceptability varies from one culture/country to another. At the
end of the day "good taste or bad is largely a matter of the time, the place, and the individual"
(Bernstein, 1951). It would be also probably impossible to set clear-cut detailed rules in the
era of Internet and interactive TV. Therefore, both types of regulation should be applied with
the ultimate aim of reaching balance between the sacred right of freedom of choice and
information and minimizing possible widespread offence. Put differently, the goal is
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synchronising the "different ethical frameworks" of marketers and "others in society" in order
to fill the "ethics gap" (Hunt and Vitell, 2006).
THEME III. Content of Advertisements.
Probably the most controversial issue in the field of marketing communications is the content
of advertisements. Nwachukwu et al. (1997) distinguish three areas of interest in terms of
ethical judgment of ads: "individual autonomy, consumer sovereignty, and the nature of the
product". The individual autonomy is concerned with advertising to children. Consumer
sovereignty deals with the level of knowledge and sophistication of the target audience
whereas the ads for harmful products are in the centre of public opinion for a long time. We
have added two more perspectives to arrive at five questions in the conducted interviews. The
first one concerns the advertisement that imply sense of guilt and praise affluence that in the
most cases cannot be achieved and the second one is about advertisements stimulating desire
and satisfaction through acquisition of material goods.
III.A. What is your attitude towards the advertisement of harmful products?
A typical example is the advertisement of cigarettes. Nowadays we cannot see slogans like
"Camel Agrees with Your Throat" (Chickenhead, accessed 25th September 2007) or
"Chesterfield - Packs More Pleasure - Because It's More Perfectly Packed!" (Chickenhead,
accessed 25th September 2007). The general advertisement, sponsorship and other marketing
communications means are already prohibited to be used by cigarette producers. Surprisingly,
most of the answers of the respondents were not against the cigarettes advertisement. One of
the respondents said:
"People are well informed about the consequences of smoking so it is a matter of personal
choice."
As with many other contemporary products the shift in communications messages for
cigarettes is oriented towards symbol and image building. The same can be said for the
alcohol ads. A well-known example of emotional advertising is the Absolut Vodka campaign.
From Absolut Nectar, through Absolut Fantasy to Absolut World the Swedish drink actually
aims to be Absolut... Everything.
Advertising of hazardous products is even more harshly criticised when it is aimed at
audiences with low individual autonomy, i.e. children. Two main issues in this respect are the
manipulation of cigarettes and alcohol as "the rite of passage into adulthood" and the fact that
"sales of health-hazardous products (alcohol, cigarettes) develop freely without much
disapproval" (Bergadaa, 2007).
III.B. What is your attitude towards the advertisement to children?
Children are not only customers, but also consumers, influencers and users in the family
Decision-Making Unit (DMU). Additional difficulty is that they are too impressionable to be
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deciders in the DMU. At the same time it is not a secret that marketers apply "the same basic
strategy of trying to sell the parent through the child's insistence on the purchase" (Bernstein,
1951). It is not a surprise then that "spending on advertising for children has increased fivefold in the last ten years and two thirds of commercials during child television programs are
for food products" (Bergadaa 2007). In the US alone children represent a direct purchases
market of $24 billion worth (McNeal cited in Bergadaa, 2007) which certainly is on the top
of the agendas of many companies. While exploiting children's decision-making immaturity
advertisers often go too far in dematerialising their products and "teleporting children out of
the tangible and into the virtual world of brand names" (Bergadaa 2007). Teenage virtual
worlds like Habbo where snack food brands run advertising campaigns are already a fact of
life (Goldie, 2007). The imaginative worlds are popular not only online. Hugely successful
for creating a fantasy world is Mc Donald's. The company tops the European list of kids'
advertisers while more than half of the children's adverts are for junk food.
In some countries there are harsher restrictions to the children advertising.
. "Sweden and Norway do not permit any television advertising to be directed towards
children under 12 and no adverts at all are allowed during children's programmes.
. Australia does not allow advertisements during programmes for pre-school children.
. Austria does not permit advertising during children's programmes, and in the Flemish region
of Belgium no advertising is permitted 5 minutes before or after programmes for children.
. Sponsorship of children's programmes is not permitted in Denmark, Finland, Norway and
Sweden while in Germany and the Netherlands, although it is allowed, it is not used in
practice." (McSpotlight, accessed 20th September 2007).
According to a research by Roberts and Pettigrew (2007) the most frequent themes in
children advertising are "grazing, the denigration of core foods, exaggerated health claims,
and the implied ability of certain foods to enhance popularity, performance and mood." But
the junk food is not the only reason for parents' preoccupation. According to a study of Kaiser
Family Foundation (Dolliver, 2007) parents are concerned about the amount of advertising of
the following products (in order of importance): toys, video games, clothing, alcohol/beer,
movies, etc.
The interviewed respondents were unanimous: "The advertising to children should be strictly
monitored." Similar results were obtained in surveys by Rasmussen Reports and Kaiser
Family Foundation. Nevertheless, the legal means are just one part of the children's
protection. The other part involves "the decision-making responsibility of parents and
teachers" which is "to assist their children in developing a skeptical attitude to the
information in advertising" (Bergadaa 2007). The marketers themselves should also be
involved in shaping the moral system of our future and "each brand should have its own
deontology - a code of practice regarding children - rather than rely on industry codes"
(Horgan, 2007).
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III.C. Do you think there are many misleading, exaggerating and confusing advertisements.
Are many ads promising things that are not possible to achieve?
It will not be exaggerated to state that advertising is in a sense "salesmanship addressed to
masses of potential buyers rather than to one buyer at a time" (Bernstein, 1951). Since
"salesmanship itself is persuasion" (ibid.) we cannot merely blame advertisers for pursuing
their sales goals. However, in the last twenty years or so advertisers have increasingly applied
semiotics in their messages and as a consequence ads have begun to function more and more
as symbols. One extreme case in this stream of advertising is the creation of idealised image
of a person who uses the advertised product. Bishop (2000) draws our attention to two
"typical representatives of self-identity image ads" which entice consumers to project the
respective images to themselves through use of the products:
- "The Beautiful Woman";
- "The Sexy Teenagers.
Through setting of such stereotypes advertisers not only mislead the public and exaggerate
the effects of products but also provoke low self-esteem in consumers. At the same time they
promise results that in most cases are simply impossible to achieve. Instead of promoting
"'glamorous' anorexic body images" communication messages should use "varied body types"
and should drop the idea of the "impossible physical body images" (Bishop, 2000).
To question III.C one of the respondents commented:
"The customers of these products [the ones advertised through thin models] are mostly people
who do not have the same physical characteristic. For me, this type of advertising is
deliberately aimed at people to make them feel not complete, far from attractive social
outsiders."
However, another interviewed stated that: "every person has his own way of evaluating what
is believable and what is misleading. Consumers are enough sophisticated to know what is
exaggerated."
Similarly, Bishop (2000) concludes that "image ads are not false or misleading", and
"whether or not they advocate false values is a matter for subjective reflection." The author
argues that image ads do not interfere with our internal autonomy and if people are misled, it
is because they want it. It is all about our free choice of behaviour and no advertisement can
modify our desires. Perhaps, the truth lies somewhere in-between the two extreme positions.
III.D. What is your attitude towards advertisement that imply sense of guilt, and praise
affluence that in the most cases cannot be achieved?
A more specific case of controversial advertising is the one used to "promote not so much
self indulgence as self doubt"; the one that "seeks to create needs, not to fulfill them: to
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generate new anxieties instead of allaying old ones" (Hackley and Kitchen, 1999). A response
of our interviewee reads:
"It is not only a matter of advertising. It has to do with the social inequality and the desire to
possess what you can not."
Hackley and Kitchen (1999) refer to this discrepancy as to "when reality does not match the
image of affluence and the result is a subjective feeling of dissonance". The issue could be
elaborated further through the next question.
III.E. Are advertisements stimulating desire and satisfaction through acquisition of material
goods moral?
We live in a society which is more or less marked by materialism. Advertisements are often
blamed to fuel consumption which is allegedly leading to happiness. The role of promoting
satisfaction through acquisition of material goods has become so important that currently the
"media products are characterised by relativism, irony, self referentiality and hedonism"
(Hackley and Kitchen, 1999). Is the popular saying "those who die with most toys win" really
a motivator in consumers' behavior and could consumption be the cure of emotional
dissonance? This seems to be the case provided a brand succeeds to enter in the evoked set of
consumer choices. This new "kind of materialism" goes hand in hand with "the emergence of
individualism via sheer hedonism along with narcissism and selfishness" (Bergadaa 2007).
THEME IV. Is the quantity of advertisements justified?
IV.A. Do you think there is too much advertising?
An audit of food advertising aimed at children in Australia by Roberts and Pettigrew (2007)
revealed that "28.5 hours of children's television programming sampled contained 950
advertisements." Actually, we all are being bombarded by ads on TV, Internet, print media,
etc. The amount and content of marketing communications messages puts the consumer's
information processing capacity to a test. The exposure to marketing data overload often
leads to diluted consumer's selective perception. Whether our responses are circumscribed by
"confusion, existential despair, and loss of moral identity" or we "adapt constructively to the
[communications] Leviathan and become intelligent, cynical, streetwise" (Hackley and
Kitchen, 1999) is a question open to debate.
Two opposite streams of attitudes were produced in our research. One stance is concerned
with the undue quantity of advertisement. The other stream proclaims that "If there is an
advertisement, so it is justified by a need." We agree that the communications overload may
indeed have "pervasive effect on the social ecology of the developed world" (Hackley and
Kitchen, 1999). If the increasing communication pollution is not managed properly by both
legal and industry points of view yet again the advertising will manage "to hoist its foot to its
own mouth and kick out a couple of its own front teeth" (Bernstein, 1951).
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UNIT 5
BRAND MANAGEMENT
Brands have been around for many years, though they existed silently. For long, managers
did not accord due respect to branding when the product was developed, priced, and
packaged. Branding was a later decision or not much significant for the marketers, who felt
that the product was more important.
EVOLUTION OF BRANDS AND HISTORICAL PERSPECTIVE
Branding has been around much before the term entered in the jargon of modem marketing. It
can be traced to ancient civilizations. The Greeks and Romans and people before them
employed various ways to promote their products. These were wines, ointments, pots, or
metals. Messages would be written informing the public that this man, at this address, could
make shoes and that the man who lived over there, at that address, was a scribe. The Greeks
also used town criers to announce the arrival of ships with particular cargos.
The AMA defines it as: “A brand is a name, term, sign, symbol, or design, or a combination
of them, intended to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors.”
The purpose of branding is to differentiate your cow from other cattle on the farm. The reality
is that cattle on the ranch do look almost like clones. “A successful branding programme is
based on the concept of singularity. It creates in the mind of the prospect the perception that
there is no product on the market quite like your product”. A brand must singularly represent
a product. Hanging multiple products on a name are likely to cause confusion. A brand
represents a position, an idea, a concept and a product. This is the way it should be.
PRODUCT BRANDING
Product branding is one extreme of the branding continuum. It is fiercely driven by customer
logic. In terms of customer perception and information processing, the most effective way to
designate a product is to give it an exclusive name, which would not be available to any other
product. This way the brand is able to acquire a distinct position in the customer’s mind.
What the brand represents is clearly understood and internalised by the market.
LINE BRANDING
Line in the context of product mix refers to various product lines that a firm may have in its
total portfolio. For instance, Philips has product lines like television, video and audio,
personal care, communication and household appliances.
RANGE BRANDING
Line branding restricts the brand’s expansion into nearby territories of complementary
products, which, complement or support the main product’s usage. On the other hand, Range
branding, is not restrictive in this sense. Brands can move beyond product complementarities.
Range brands encompass many products under a single banner. All the products share a
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common promise, which stems from the firm’s or range brand’s area of competence. The
products are tied together by a single brand concept. For instance, Nestle uses its Maggi
brand for its range of fast foods- Maggi noodles, sauces, super seasonings, Tonite’s special,
dosa mixes, soups
UMBRELLA- BRANDING
The companies of the East have particularly favoured umbrella branding. For instance,
Japanese and Korean companies enjoy the distinction of pursuing umbrella branding. For
instance, the Korean giant LG uses its name on products like microwaves, refrigerators,
computer monitors, televisions, and air conditioners.
Umbrella branding, scores well on the dimension of economics. Investing in a single brand is
less costly than trying to build a number of brands.
SOURCE/DOUBLE BRANDING
Source brand strategy combines the firm’s name with th accordingly becomes Bajaj Chetak.
Both the names enjoy equal importance and are given equal status in the brand’s
communication. Firms, which follow double branding, include Johnnie Walker. Its brands are
Johnnie Walker Red Label, Johnnie Walker Black Label, and Johnnie Walker Blue Label. e
product brand name. It is a hybrid of umbrella brand and product brand strategy. The product
is given a brand name and it is combined with the name of the firm. This is also called double
branding. For instance, Chetak is the name of the scooter and Bajaj is the company behind it,
the brand.
ENDORSEMENT BRANDING
Endorsement brand strategy is a modified version of double branding. It makes the product
brand name more significant and the corporate brand name is relegated to a lesser status. The
umbrella brand is made to play an indirect role of passing on certain common generic
associations. It is only mentioned as an endorsement to the product brand. By and large, the
brand seeks to stand on its own.
FACTORS FOR CHOOSING A BRANDING STRATEGY
Market Size: Product branding strategy is a high fixed cost intensive strategy. Some
minimum investments have to be made to get a brand to the threshold of awareness and
image formation. Recouping the expenditures incurred in the initial phases of establishing a
brand would necessitate acquisition of a critical mass in the market.
Competition: Competition implies how fiercely the market is contested. When competition is
less intense, the marketers are not motivated to brand the product. Simply manufacturer’s
identification would be sufficient. This was the case with most firms in India prior to
liberalisation. Brand building was not really a priority. Brands were labels to identify the
products. Branding in the primitive sense prevailed.
Resources: Product branding is definitely not an option for a resource starved firm. Product
branding firms like P&G, HLL, RCI (earlier), Coke and Pepsi are all deep pocketed. They
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have the resources to create and support product brands. Building a common equity has not
been on their agenda.
Product Newness: Today’s market environment is characterised by brand proliferation. As
brands crowd the shelves at the retail outlets, distinctiveness is lost. Customers tend to club
all brands into categories. This simplifies decision-making. Brand multiplication tends to
work counter to brand individuality.
Technology/Innovativeness: Product innovations sometimes embody new technology.
Innovations bring uncertainty, both for the firm and the customers. From the firm’s point of
view, innovations imply uncertainty about success and risk of potential failure. For instance,
when Sony launched Betamax or RCA launched Selectavision, the companies were doubtful
whether the products would be commercially successful or not.
BRAND EQUITY: DEFINITION AND MEANING
Brands are valued for their equity. Everyone in the marketing profession agrees that
brands can add substantial value. It is also true, sometimes, that brands become a burden. The
brand can be a value enhancer or decreaser. A variety of opinions exist about brand equity.
Some of these are as follows:
“Brand equity can be thought of as the additional cash flow achieved by associating a
brand with the underlying product or service” (Biel, 1992).
“Brand equity is a set of brand assets and liabilities linked to a brand, its name and symbol,
that add to or subtract from the value provided by a product or service to a firm and/or to that
firm’s customers” (Aaker, 1991).
Brand equity assets can enhance or decrease value for customers. A brand’s equity is
valuable to customers because:
It helps customers in information processing. A brand is useful in aiding customers in
interpreting, processing, and storing information about the products and the brands.
Value to Marketer
Brand equity also plays a critical role in enhancing value for the marketer. A firm
benefits from the equity in the following ways:
The brand equity assets increase the effectiveness and efficiency of marketing programmes.
The expenditure associated with a brand to achieve a goal generally tends to be less than an
unbranded product aiming to achieve the same goal.
Brand Equity
A brand is a name or symbol used to identify the source of a product. When developing a
new product, branding is an important decision. The brand can add significant value when it
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is well recognized and has positive associations in the mind of the consumer. This concept is
referred to as brand equity.
What is Brand Equity?
Brand equity is an intangible asset that depends on associations made by the consumer. There
are at least three perspectives from which to view brand equity:
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Financial - One way to measure brand equity is to determine the price premium that a
brand commands over a generic product. For example, if consumers are willing to pay
$100 more for a branded television over the same unbranded television, this premium
provides important information about the value of the brand. However, expenses such
as promotional costs must be taken into account when using this method to measure
brand equity.
Brand extensions - A successful brand can be used as a platform to launch related
products. The benefits of brand extensions are the leveraging of existing brand
awareness thus reducing advertising expenditures, and a lower risk from the
perspective of the consumer. Furthermore, appropriate brand extensions can enhance
the core brand. However, the value of brand extensions is more difficult to quantify
than are direct financial measures of brand equity.
Consumer-based - A strong brand increases the consumer's attitude strength toward
the product associated with the brand. Attitude strength is built by experience with a
product. This importance of actual experience by the customer implies that trial
samples are more effective than advertising in the early stages of building a strong
brand. The consumer's awareness and associations lead to perceived quality, inferred
attributes, and eventually, brand loyalty.
Strong brand equity provides the following benefits:
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Facilitates a more predictable income stream.
Increases cash flow by increasing market share, reducing promotional costs, and
allowing premium pricing.
Brand equity is an asset that can be sold or leased.
However, brand equity is not always positive in value. Some brands acquire a bad reputation
that results in negative brand equity. Negative brand equity can be measured by surveys in
which consumers indicate that a discount is needed to purchase the brand over a generic
product.
Building and Managing Brand Equity
In his 1989 paper, Managing Brand Equity, Peter H. Farquhar outlined the following three
stages that are required in order to build a strong brand:
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1. Introduction - introduce a quality product with the strategy of using the brand as a
platform from which to launch future products. A positive evaluation by the consumer
is important.
2. Elaboration - make the brand easy to remember and develop repeat usage. There
should be accessible brand attitude, that is, the consumer should easily remember his
or her positive evaluation of the brand.
3. Fortification - the brand should carry a consistent image over time to reinforce its
place in the consumer's mind and develop a special relationship with the consumer.
Brand extensions can further fortify the brand, but only with related products having a
perceived fit in the mind of the consumer.
Alternative Means to Brand Equity
Building brand equity requires a significant effort, and some companies use alternative means
of achieving the benefits of a strong brand. For example, brand equity can be borrowed by
extending the brand name to a line of products in the same product category or even to other
categories. In some cases, especially when there is a perceptual connection between the
products, such extensions are successful. In other cases, the extensions are unsuccessful and
can dilute the original brand equity.
Brand equity also can be "bought" by licensing the use of a strong brand for a new product.
As in line extensions by the same company, the success of brand licensing is not guaranteed
and must be analyzed carefully for appropriateness.
Managing Multiple Brands
Different companies have opted for different brand strategies for multiple products. These
strategies are:
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Single brand identity - a separate brand for each product. For example, in laundry
detergents Procter & Gamble offers uniquely positioned brands such as Tide, Cheer,
Bold, etc.
Umbrella - all products under the same brand. For example, Sony offers many
different product categories under its brand.
Multi-brand categories - Different brands for different product categories. Campbell
Soup Company uses Campbell's for soups, Pepperidge Farm for baked goods, and V8
for juices.
Family of names - Different brands having a common name stem. Nestle uses
Nescafe, Nesquik, and Nestea for beverages.
Brand equity is an important factor in multi-product branding strategies.
Protecting Brand Equity
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The marketing mix should focus on building and protecting brand equity. For example, if the
brand is positioned as a premium product, the product quality should be consistent with what
consumers expect of the brand, low sale prices should not be used compete, the distribution
channels should be consistent with what is expected of a premium brand, and the promotional
campaign should build consistent associations.
Finally, potentially dilutive extensions that are inconsistent with the consumer's perception of
the brand should be avoided. Extensions also should be avoided if the core brand is not yet
sufficiently strong.
BRANDING IN RETAIL
Branding a Store shows how to build a strong, independent retail brand to remain
competitive in today’s global marketplace. It shows how to make your shop a winner.
A survival guide for shops that explains how you can create an appealing retail business,
Branding a Store is full of practical tips on how shops can win the "battle of the brands."
Branding a Store is a must-have title for professionals who earn their living in the retail
business. The book will be of benefit to retailers, manufacturers, and advertising agencies,
and it is suitable for those taking retail training courses.
What are some of the things that come to mind when you hear Bloomingdale’s? Exclusive,
high-end designer merchandise, unique-and-wide selection, great atmosphere, superior
customer service, and a place to treat yourself? These are just some of the things that
immediately may come to mind. Opening its doors in 1872, the Bloomingdale brothers knew
that if they were to succeed big-time in the Big Apple, they had to do something different.
Instead of selling what everyone else was selling, they imported high-end European fashions
and by the 1920s they had expanded into an entire city block. They knew who their loyal
customers were, listened to them and, amazingly, 128 years and many stores later, still do.
They recognized the value of “branding” and consistency and were generously rewarded.
What is branding and why is it so important? Branding is the unique image that goes
through a person’s mind when he or she is thinking of your store(s). When done right, a
consistent theme should dominate and that theme should withstand the test of time.
Another great example of branding is Disney. We all have images imprinted on our brains
when we think of Disney because those images have been pretty unique and consistent
throughout most of our lives.
How is successful branding achieved? Branding isn’t always in a name. After all, before
Disney created his magic, the name Disney meant little or nothing to the general public. Now
it is synonymous with a certain mouse, some theme parks, many movies, and exciting
vacations. This recognition and association did not happen overnight. Whether your store be
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a small family-run business or a large chain, brand strategy and recognition is critical. A
starting point might be to ask yourself the following questions:
1. HOW DO YOU WANT THE WORLD TO VIEW YOUR STORE(S)? Is there
something unique about your store(s) that causes the public to remember you in a
certain way? It might not a bad idea to make a list of what you think makes you
unique and take a customer survey to validate those perceptions. Sometimes who we
are and who we think we are can be two very different things.
2. WHO ARE YOUR CUSTOMERS? Do you know the average profile of your most
loyal customers? Why do they shop in your store(s)? How can you be sure you are
buying the right merchandise if you don’t understand and know your target
customers? The saying “You can’t be all things to all people” is especially true in
retail. It is important to find your niche and work it to the hilt.
3. IS YOUR MESSAGE CONSISTENT? There are many ways to message your
brand. You can do print advertising, television, e-marketing, social-cause marketing,
and event marketing to name but a few. All of these methods should present a
consistent image of your store(s). This message could be in a store name, logo,
slogan, song, in-store graphics, website or all of the above, as long as it is pervasive,
consistent and appropriate and gets across the image you would like to project.
4. DOES YOUR BRICK-AND-MORTAR STORE HAVE A CONSISTENT AND
CUSTOMER-CENTRIC ATMOSPHERE? Is the store designed and
merchandised with your loyal customer profile in mind? People spend money in
places where they feel most comfortable. That’s why teens and young adults spend
big bucks at stores like Aeropostale and Abercrombie and Fitch. They feel
comfortable and know what to expect. Conversely an elderly woman might feel most
comfortable in the Alfred Dunner department at Macy’s. She also feels comfortable
and knows what to expect. Most importantly, both the teen and the elderly woman
identify with the brand.
5. DOES YOUR WEBSITE DELIVER A MESSAGE THAT IS CONSISTENT
WITH YOUR STORE IMAGE? Successful branding demands consistency
throughout the enterprise. Your website and/or e-store should be a reflection of your
brick and mortar store(s) and be easily recognizable to your target customers.
Choosing an inexpensive and amateurish standard template driven e-commerce
solution can result in a long-term costly mistake. Your website is your window to the
world.
In a world racked with political and economic turmoil, it is easy to impulsively
change your direction and message in hopes that another approach will work better.
If your message becomes unclear or confusing and you lose sight of your brand, you
may also lose your best customers. If you don’t understand who you are, it is unlikely
your customers will.
BRAND POSITIONING
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Brand positioning refers to “target consumer’s” reason to buy your brand in preference
to others. It is ensures that all brand activity has a common aim; is guided, directed and
delivered by the brand’s benefits/reasons to buy; and it focusses at all points of contact with
the consumer.
Brand positioning must make sure that:
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Is it unique/distinctive vs. competitors ?
Is it significant and encouraging to the niche market ?
Is it appropriate to all major geographic markets and businesses ?
Is the proposition validated with unique, appropriate and original products ?
Is it sustainable - can it be delivered constantly across all points of contact with the
consumer ?
Is it helpful for organization to achieve its financial goals ?
Is it able to support and boost up the organization ?
In order to create a distinctive place in the market, a niche market has to be carefully chosen
and a differential advantage must be created in their mind. Brand positioning is a medium
through which an organization can portray it’s customers what it wants to achieve for them
and what it wants to mean to them. Brand positioning forms customer’s views and opinions.
Brand Positioning can be defined as an activity of creating a brand offer in such a manner
that it occupies a distinctive place and value in the target customer’s mind. For instanceKotak Mahindra positions itself in the customer’s mind as one entity- “Kotak ”- which can
provide customized and one-stop solution for all their financial services needs. It has an
unaided top of mind recall. It intends to stay with the proposition of “Think Investments,
Think Kotak”. The positioning you choose for your brand will be influenced by the
competitive stance you want to adopt.
Brand Positioning involves identifying and determining points of similarity and difference to
ascertain the right brand identity and to create a proper brand image. Brand Positioning is the
key of marketing strategy. A strong brand positioning directs marketing strategy by
explaining the brand details, the uniqueness of brand and it’s similarity with the competitive
brands, as well as the reasons for buying and using that specific brand. Positioning is the base
for developing and increasing the required knowledge and perceptions of the customers. It is
the single feature that sets your service apart from your competitors. For instance- Kingfisher
stands for youth and excitement. It represents brand in full flight.
There are various positioning errors, such as1. Under positioning- This is a scenario in which the customer’s have a blurred and
unclear idea of the brand.
2. Over positioning- This is a scenario in which the customers have too limited a
awareness of the brand.
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3. Confused positioning- This is a scenario in which the customers have a confused
opinion of the brand.
4. Double Positioning- This is a scenario in which customers do not accept the claims
of a brand.
Brand identity stems from an organization, i.e., an organization is responsible for creating a
distinguished product with unique characteristics. It is how an organization seeks to identify
itself. It represents how an organization wants to be perceived in the market. An organization
communicates its identity to the consumers through its branding and marketing strategies. A
brand is unique due to its identity. Brand identity includes following elements - Brand vision,
brand culture, positioning, personality, relationships, and presentations.
Brand identity is a bundle of mental and functional associations with the brand. Associations
are not “reasons-to-buy” but provide familiarity and differentiation that’s not replicable
getting it. These associations can include signature tune(for example - Britannia “ting-ting-tading”), trademark colours (for example - Blue colour with Pepsi), logo (for example - Nike),
tagline (for example - Apple’s tagline is “Think different”),etc.
Brand identity is the total proposal/promise that an organization makes to consumers. The
brand can be perceived as a product, a personality, a set of values, and a position it occupies
in consumer’s minds. Brand identity is all that an organization wants the brand to be
considered as. It is a feature linked with a specific company, product, service or individual. It
is a way of externally expressing a brand to the world.
Brand identity is the noticeable elements of a brand (for instance - Trademark colour, logo,
name, symbol) that identify and differentiates a brand in target audience mind. It is a crucial
means to grow your company’s brand.
Brand identity is the aggregation of what all you (i.e. an organization) do. It is an
organizations mission, personality, promise to the consumers and competitive
advantages. It includes the thinking, feelings and expectations of the target
market/consumers. It is a means of identifying and distinguishing an organization from
another. An organization having unique brand identity have improved brand awareness,
motivated team of employees who feel proud working in a well branded organization, active
buyers, and corporate style. Brand identity leads to brand loyalty, brand preference, high
credibility, good prices and good financial returns. It helps the organization to express to the
customers and the target market the kind of organization it is. It assures the customers again
that you are who you say you are. It establishes an immediate connection between the
organization and consumers. Brand identity should be sustainable. It is crucial so that the
consumers instantly correlate with your product/service.
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Brand identity should be futuristic, i.e, it should reveal the associations aspired for the brand.
It should reflect the durable qualities of a brand. Brand identity is a basic means of consumer
recognition and represents the brand’s distinction from it’s competitors.
SOURCES OF BRAND IDENTITY
SYMBOLS- Symbols help customers memorize organization’s products and services. They
help us correlate positive attributes that bring us closer and make it convenient for us to
purchase those products and services. Symbols emphasize our brand expectations and shape
corporate images. Symbols become a key component of brand equity and help in
differentiating the brand characteristics. Symbols are easier to memorize than the brand
names as they are visual images. These can include logos, people, geometric shapes, cartoon
images, anything. For instance, Marlboro has its famous cowboy, Pillsbury has its Poppin’
Fresh doughboy, Duracell has its bunny rabbit, Mc Donald has Ronald, Fed Ex has an arrow,
and Nike’s swoosh. All these symbols help us remember the brands associated with them.
Brand symbols are strong means to attract attention and enhance brand personalities by
making customers like them. It is feasible to learn the relationship between symbol and brand
if the symbol is reflective/representative of the brand. For instance, the symbol of LG
symbolize the world, future, youth, humanity, and technology. Also, it represents LG’s
efforts to keep close relationships with their customers.
LOGOS- A logo is a unique graphic or symbol that represents a company, product, service,
or other entity. It represents an organization very well and make the customers wellacquainted with the company. It is due to logo that customers form an image for the
product/service in mind. Adidas’s “Three Stripes” is a famous brand identified by it’s
corporate logo.
Features of a good logo are :
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
It should be simple.
It should be distinguished/unique. It should differentiate itself.
It should be functional so that it can be used widely.
It should be effective, i.e., it must have an impact on the intended audience.
It should be memorable.
It should be easily identifiable in full colours, limited colour palettes, or in black and
white.
It should be a perfect reflection/representation of the organization.
It should be easy to correlate by the customers and should develop customers trust in
the organization.
It should not loose it’s integrity when transferred on fabric or any other material.
It should portray company’s values, mission and objectives.
The elements of a logo are:
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1. Logotype - It can be a simple or expanded name. Examples of logotypes including
only the name are Kellogg’s, Hyatt, etc.
2. Icon - It is a name or visual symbol that communicates a market position. For
example-LIC ’hands’, UTI ’kalash’.
3. Slogan - It is best way of conveying company’s message to the consumers. For
instance- Nike’s slogan “Just Do It”.
TRADEMARKS- Trademark is a unique symbol, design, or any form of identification that
helps people recognize a brand. A renowned brand has a popular trademark and that helps
consumers purchase quality products. The goodwill of the dealer/maker of the product also
enhances by use of trademark. Trademark totally indicates the commercial source of
product/service. Trademark contribute in brand equity formation of a brand. Trademark name
should be original. A trademark is chosen by the following symbols:
™ (denotes unregistered trademark, that is, a mark used to promote or brand goods);
SM
(denotes unregistered service mark)
® (denotes registered trademark).
Registration of trademark is essential in some countries to give exclusive rights to it. Without
adequate trademark protection, brand names can become legally declared generic. Generic
names are never protectable as was the case with Vaseline, escalator and thermos.
Some guidelines for trademark protection are as follows:
i.
ii.
iii.
iv.
v.
Go for formal trademark registration.
Never use trademark as a noun or verb. Always use it as an adjective.
Use correct trademark spelling.
Challenge each misuse of trademark, specifically by competitors in market.
Capitalize first letter of trademark. If a trademark appears in point, ensure that it
stands out from surrounding text.
Brand image is the current view of the customers about a brand. It can be defined as a
unique bundle of associations within the minds of target customers. It signifies what the
brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is
nothing but the consumers’ perception about the product. It is the manner in which a specific
brand is positioned in the market. Brand image conveys emotional value and not just a mental
image. Brand image is nothing but an organization’s character. It is an accumulation of
contact and observation by people external to an organization. It should highlight an
organization’s mission and vision to all. The main elements of positive brand image areunique logo reflecting organization’s image, slogan describing organization’s business in
brief and brand identifier supporting the key values.
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Brand image is the overall impression in consumers’ mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they
form brand image. An image is formed about the brand on the basis of subjective perceptions
of associations bundle that the consumers have about the brand. Volvo is associated with
safety. Toyota is associated with reliability.
The idea behind brand image is that the consumer is not purchasing just the product/service
but also the image associated with that product/service. Brand images should be positive,
unique and instant. Brand images can be strengthened using brand communications like
advertising, packaging, word of mouth publicity, other promotional tools, etc.
Brand image develops and conveys the product’s character in a unique manner different from
its competitor’s image. The brand image consists of various associations in consumers’ mind
- attributes, benefits and attributes. Brand attributes are the functional and mental connections
with the brand that the customers have. They can be specific or conceptual. Benefits are the
rationale for the purchase decision. There are three types of benefits: Functional benefits what do you do better (than others ),emotional benefits - how do you make me feel better
(than others), and rational benefits/support - why do I believe you(more than others). Brand
attributes are consumers overall assessment of a brand.
Brand image has not to be created, but is automatically formed. The brand image includes
products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually
brand content. When the consumers purchase the product, they are also purchasing it’s image.
Brand image is the objective and mental feedback of the consumers when they purchase a
product. Positive brand image is exceeding the customers expectations. Positive brand image
enhances the goodwill and brand value of an organization.
To sum up, “Brand image” is the customer’s net extract from the brand.
MEASURING BRAND PERFORMANCE
Brand Performance means to us, that the brand value has to bear interest and on top of that,
the brand has to provide a measurable contribution to the success of a business as a whole.
In general, nobody speaks of the value of a brand and the corresponding brand value return.
Unbelievable, but this is the reality. Most businesses, provided that they own brands, assume
that their competitive environment and therefore their business results are better due to their
brands, than other businesses, who do not utilize brands. Details are only known in few cases.
The value of brands is usually only mentioned in yearly published brand value lists and when
a business is being purchased or sold. In those brand value lists, published yearly by different
institutions, the figures often are divergent. If you look at the financial statements of the
brand owners listed on the stock exchange, then you will realize, that the value is often
unrealistic or, and this is the other explanation, the business does not receive a noteworthy
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from
the
brand
value.
In terms of contribution of the brand to the business results it is not easy to come up with a
valid statement, but there are options to determine, what a brand is able to accomplish.
Prerequisite is, that the funds used for brand maintenance and promotion are under a strict
supervision of results and are displayed in the calculation of products. It is not enough to
speak of it in general, that X percent have been spent on marketing. Marketing funds should
not be seen as expenditures, but as investments. Marketing funds should, if they are to be
used for brand products, not flow into the structure of conditions. They have to be used
directly and only for the benefit of the brand. Not just when the cash flow is good and at
one’s
discretion.
Investments into a brand have to be designed for the long run. Marketing plans have to be
laid out in a way that it is possible to determine the return-on-investment and to allocate it to
the brand. Of course, all this asks for strict discipline and a comprehensive knowledge of
brand and marketing performances. This all starts with the determination of brand and
product profiles and their positioning on the market. It requires a deep understanding of what
constitutes a brand, because only then it can be determined, what it can achieve. The
determination of the brand value return requires the knowledge of effort and application.
In the beginning stands the knowledge of the value of the brand. If you know what a brand is
worth, you can follow the development of the value; as it is the case with stocks.
In many businesses, brand value is a kind of “concealed asset”. We think this should be
changed, if this is indeed the case. Brands are no concealed asset. Just as well as the real
estate value of a business is being applied gainfully, the same should be the case with the
brand. Actually, brands should be taken out of the general business assets and moved to
associated companies which deal exclusively with brand utilization. The business purpose of
a brand utilization company is the achievement of brand performance.
This path, suggested by us for many years, to take brands out of the concealed assets and to
achieve performance, is being taken more and more often, especially by businesses with
international
and
global
character.
Companies for the commercial exploitation of brands are even then valued highly, when
companies are being bought or sold. When a family sells a brand business of the same name,
it is advisable to verify, if the business is being sold without the name and to leave the name
and the brands to the buyer via a brand utilization company. In this manner, the business can
be carried on under its name and the brands of the same name, while the owner of the name
retains a value which has often become a notion over the years.
We consult businesses in all questions of brand performance. As consultants, we are at the
disposal of banks, investors and heirs.
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You can’t manage what you don’t measure.” ~ Peter Drucker
If you are a brand manager, by definition, you are measuring the performance of your brand
on a regular basis. Otherwise, how can you successfully manage your brand? Here are the
items I recommend brand managers measure:
















Unaided brand awareness (for the categories in which the brand competes and perhaps
for the customer benefits the brand delivers)
Top-of-mind brand associations (your brand’s true position in its customer’s minds)
Perceived brand delivery against the most important customer benefits
Attitudinal loyalty toward the brand
What customers think makes your brand unique (differentiation)
Brand price sensitivity (a measure of brand strength)
Brand vitality (a measure of brand marketplace momentum)
Brand quality perceptions
Brand value perceptions
Brand accessibility perceptions
Emotional connection to the brand
Brand values alignment with its customers
Brand distribution
Brand market share
Brand sales
Brand profitability
If you have access to these brand metrics, it is more likely that you are actively managing
your brand to increase its strength and performance. One should measure most of these items
at least once a year and immediately after major brand initiatives.
BRAND MARKETING PROGRAMS
In recent months Facebook has focused the conversation between developers, brand
marketers and agencies around Social Design. As Facebook puts it, “Social Design is a way
of thinking about product design that puts social experiences at the core.” This blog post will
focus around my interpretation and extension of this concept to the conception and design of
brand marketing programs in general.
As background, it’s noteworthy to say that Dachis Group has since 2008 viewed the world
through its framework of Social Business Design, which is the intentional creation of
dynamic and socially calibrated systems, process, and culture. The goal: improving value
exchange among constituents. In other words, we reengineer the inner-workings and
outward-reaching facets of organizations to transform said organizations into effectively and
efficiently functioning social businesses that deliver better business results.
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Now back to Social Design, which I’ll reinterpret and extend under the framework of Social
Business Design to the intentional creation of brand marketing programs rooted in social.
Why am I doing this? Because social needs to be Incorporated into the foundation of brand
marketing programs. This is easy for me to say as I’ve built a business that is social from the
ground up that has been focusing specifically on the design of social experiences. However,
it’s not so easy for brand marketers and their agencies. We’ve worked with countless
amazing brands and agencies that have great intentions and creative concepts, but don’t quite
hit the spot when it comes to the creation of brand marketing programs that are social at the
core. Provided below is a three-pronged framework for the development of brand marketing
programs that are social by design:
1) Define the Business Requirements



Business Objective
Business Metrics
Social Metrics
It all starts with a business objective that leads to the development of specific business
metrics and social metrics/KPIs to frame the development of a concept and measure the
success of the program. No program concept, digital or otherwise, should ever see the light of
day without this step being completed first.
2) Incorporate Interaction Drivers




Emotion
Fame & Fortune
Fun & Entertainment
Utility
Through the development of literally hundreds of program concepts we’ve come to realize
that all successful social programs share some common threads–from creating a strong
emotional connection, to providing the consumer with a once in a lifetime opportunity at
fame and fortune, to providing unmatched utility. Whether one likes it or not, these are the
drivers that get consumers to take action and engage. And I can’t stress the importance of
ensuring that programs are framed through this lens enough. We’ve seen countless fully
fleshed out brand-centric programs come through our doors that look polished at first glance,
but don’t really take into account the real wants and needs of the consumer.
3) Focus on the Building Blocks



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Conversation
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Once the business objectives and program frames have been set, then one can move onto
focusing on the building blocks of the program. These are the core elements of Social Design
according to Facebook and they play a key role in the development of brand marketing
programs that are social at the core. As Facebook puts it: Community refers to the people we
know and trust and who help us make decisions; Conversation refers to the various
interactions we have with our communities, and Identity refers to our own sense of self and
how we are seen by our communities. Facebook is viewing these central elements through a
product development lens, but they can and should be applied in the development of every
brand marketing program.
Developing a successful brand marketing program is really as easy as 1, 2, 3 if you take the
time to focus on systematizing the process and applying the necessary amount of rigor to
getting them right. In addition to the foundational points outlined above, a couple of other
items that are worth mentioning are game mechanics and the development of a systemic
learning process that fosters continuous improvement in results.
Let
the
Game
Mechanics
Flow
With the proliferation of digital experience gamification, one would think that game
mechanics can only be applied to digital programs; this is a misconception. Game mechanics
can, and should, be incorporated into most types of large-scale brand marketing programs. It
is not always going to be the standard levels, points, challenges, and badges that make sense.
It is the point of deliberately taking into account how game mechanics effect user psychology
and behavior and incorporating the appropriate game mechanics to drive the behavior deemed
valuable by the brand that delivers the business and social metrics outlined in the initial step.
Learn
and
Systematize
Continuous
Improvement
Learning from experience is something that sounds so basic and simple, but when it comes to
the development of brand marketing programs, it is something that is overlooked the majority
of the time. As organizations deploy more resources towards social business efforts and
social technologies harden, it is going to get easier to develop and tap into closed-loop
learning systems that deliver actionable insights to enable continuous learning and
improvement. Consider being able to leverage a big data analytics platform that has hundreds
of measures and metrics built in to correlate the effectiveness of your brand marketing
efforts. This is the future that we’re heading towards and the future will be here very soon.
To sum up, I’d like to encourage everyone that is involved in any facet of the creation,
design, development, management, or measurement of brand marketing programs to follow
and use the above steps as checks against their day-to-day work activities. Whether you’re a
planner, a creative director, a brand manager, a social media director, an art director, a TV
commercial producer, UX engineer, etc., executing within the above framework will make
you more effective. It will enable you to deliver brand marketing programs that are created to
be social by design, and in the end deliver better results.
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RECENT TRENDS IN BRAND MANAGEMENT
It was management consultant, Peter Drucker, who advised the best way to predict the future
was to create it. Creating new things being difficult, the next best way is to have access to
validated and predictive loyalty and emotional engagement metrics to help point the way.
Happily, we do. And after examining over 100,000 consumer assessments, we’ve identified
14 critical trends to help marketers create their own, successful futures next year.
1. Consumers Expect More: Over the past 5 years consumer expectations have
increased on average 20%. Brands have kept up by only 5%, a big gap between
what’s desired and what’s delivered. The ability to accurately measure real,
unarticulated expectations, will provide significant advantages.
2. Attention Must Be Paid to Brands: Increased expectations come with a greater
sense of product and service commoditization. You may be known, but you need to be
known for something meaningful and important to consumers.
3. Category is King: Brands will stop trading away category-specificity for crosscategory generalities in how they target, strategize, and execute content. To engage
smarter, high-expectation consumers, brand wills need to be smarter about specific
category values they can leverage.
4. Brands Will Get Emotional: Values that drive the brand decision process to have
become more emotionally-driven. In most categories the rational aspects are price-ofentry. Successful brands will identify what emotional values exist in their category,
and utilize them as a foundation for meaningful differentiation.
5. Real Brand “Engagement” Defined: For too long engagement has been associated
with attention levels. Successful marketers will link “engagement” to how efforts
increase how well the brand is perceived versus the Category Ideal, and a metric that
correlates highly with loyalty, sales, and profitability.
6. Targeting Becomes Personal: With consumers craving – and expecting – more, and
more customized and personalized products, services and experiences, brands that
better respond to real consumer expectations, will find consumers engaging with
brands that are able to personalize messaging and outreach.
7. Digital Done Right: With digital diversification getting bigger, and with more
channels, brands need to shift their question from “should I be here?” to “what should
I do now that I am here?” Success will be linked not to outreach, but brand
differentiation and emotional engagement.
8. Content is King, Too: Content marketing will become a specialty unto itself. Tools
like the Digital Platform GPS will optimize placement and help brands distinguish the
difference between paid, owned, and earned media, more important when it comes to
dealing with contextual relevance and strategically navigating brands in digital space.
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9. Mobile Optimized: In 2011 Brand Keys trends identified that mobile would move
mainstream. It has. For 2014 brands need to adapt strategies and delivery
mechanisms, content and flow of communications to match increased consumer
multi-tasking and multi-screen behavior.
10. Fewer Tedious Texts: More visually literate consumers will move from text outreach
to more image-based connections. Visual content will become more important in
creating viral marketing campaigns, with brands becoming more attentive to imagesharing initiatives and platforms.
11. Micro Becomes Mainstream: Micro videos will continue to rise in popularity and
use. Metrics will move away from number of views and toward real brand
engagement (see Trend #5). Watch for more :6 and :12 videos to accommodate digital
delivery platforms and increasingly shorter consumer attention spans.
12. Integration Intensification: Brand marketing and digital budgets will fuse as teams
work jointly and cross-silo. Multi-platform traditional and digital models will require
social media integration into all marketing efforts, including customer experience,
design, sales, and product development.
13. Data Deceleration: Data aggregations for traditional and digital will become more
integrated and streamlined, allowing brands to better separate the “wheat from the
chaff.” Big Data will actually get smaller and more compact. And more useful.
14. The Funnel Flattens: What used to be a “purchase funnel,” that became a “path-topurchase,” will become an extraordinarily category specific “multi-path-to-purchase.”
Content and value communication with the right platforms in the right way will
become the only way to create emotional engagement – and profitability.
A new year provides brands with a chance for new resolutions and new beginnings, so, it’s
worth noting Mr. Drucker also advised companies if they wanted to do something new, they
had to stop doing something old. These 14 new trends provide brands the opportunity to
break old habits, embrace new methods of brand engagement and brand marketing, and to
help to create new and profitable futures for themselves.
ROLE OF LABEL
The role and importance of packaging:
Packaging has been around for many hundreds of years in some shape or form, from the early
days of using wooden barrels to transport water to today’s rather sophisticated methods. For
identification purposes packaging must be labelled in some way and the traditional methods
for doing so would be to print and apply a label to the product.
The role of packaging in society is a vitally important one, not only in ensuring the safe
delivery of products to the end-user but also in communicating the nature of the product and
how it should best be utilised.
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Packaging identifies the product and its function whilst transmitting brand values. It’s
important that a brand owner chooses the correct packaging to suit the nature of the product
and the purpose and desired functions of packaging a product in the first instance.
Packaging must communicate a variety of information to ensure its safe usage and direction;
Food product labelling must include details of storage conditions, use-by dates, preparation
and cooking user-instruction. Pharmaceutical products must be labelled in accordance to
strict legislative guidelines providing instruction to both the person administering the drug
and the patient.
In brief, labels play a crucial role in the communication of often vital product and userinstruction.
The global packaging industry:
The global packaging industry is estimated to be around $500 billion US dollars. Some key
trends indicate significant growth in the demand for packaging and printed products in the
coming years.





An increase in population worldwide.
Longevity – people are living longer than ever before.
Smaller households – there are far more people living alone these days.
Fast-pace society demands more convenience foods and single portion products.
Due to the continuing strain the increasing population is having on our planet, we are
all look at ways in which can reduce, re-use, recycle and most importantly seek out
more sustainable methods of creating and disposing of our packaging.
A growing demand for added on-pack information:
So consider the importance of the self-adhesive label within packaging furthermore within
society and now consider the many challenges within the packaging industry. There is
increasing legislative and consumer demands placed on the manufacturer to include far more
product and user-information than ever before.
Just how can all this information be included within the confines of a single label?
Leaflet labels – providing packaging enhancement:
Leaflet labels combine a standard self-adhesive label with a folded leaflet or booklet. They
are also commonly referred to as booklet labels, multi-page labels or expanded content
labels.
Leaflet labels can be produced in a variety of different formats, shapes and sizes and may
include between anywhere between 2 to 100 additional pages in concertina style leaflet or
booklet format.
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The benefits of leaflet labels:
There are a whole range of features and benefits that can be gained by using leaflet labels:






Adaptable to virtually any container or product.
Supplied in reel format so they can be applied using any standard label applicator.
They may equally be applied manually for low volume/ specialist production runs.
Almost unlimited additional space, where space is often limited within the confines of
the primary label.
Additional space for the inclusion of a variety of product information.
Replicates branding and livery by use of conventional print methods.
Pharmaceutical user-applications:
The development and delivery of healthcare products is a costly business. It therefore stands
to reason that every effort should be taken to ensure products are used in the correct manner
by the patient.
Besides the initial contact a patient will have with a doctor and the pharmacist the only
further communication they may have is the packaging and labelling. Leaflet labels have
played an increasingly important role within the healthcare industry and have become
common-place for over a decade on a wide variety of healthcare products.
Medical products can often be complex in nature and detailed directions of what to take,
when and what adverse effects might manifest must all be included on one carton or sheet of
paper. It is therefore a big responsibility for drug manufacturers to get the job right when
conveying vital user-instruction on packaging.
There are some very serious statistics that support the need for good quality and additional
product guidance:


Each year in the US alone 125,000 people die as a result of non-adherence with a
direct cost to the US healthcare system of around $US 100 billion.
31% of all medicines prescribed don’t even get collected whilst an estimated 40% of
those prescriptions are not taken as directed.
Pharmaceutical leaflet labels remain firmly attached to the product or container allowing for
single or repeat reference. This is of particular importance as it is often only part way through
a course of drugs that a patient might develop a side-effect or illness.
Our network of label printing companies is highly experienced in supplying this demanding
sector as well as niche product requirements such as clinical trials and medical device
labelling requirements. Legislative requirements such as pharma codes and 2D matrix as well
as Braille, batch coding and serial numbering may all be provided on the leaflet or the label
by use of our custom production equipment.
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Processed foods and beverages:
Leaflet labels are commonly (but not exclusively) applied to foods and beverages for two
main reasons:
1. Additional product and user-information &
2. An on-pack promotion
1) Informational applications:
Manufacturers are increasingly looking for ways to reduce costs and this can often be in
material usage and inventory. Leaflet labels can help to achieve this goal by offering
additional space for the inclusion of multi-lingual product and user instruction. In some
instances, they may even replace a carton and a loose leaflet.
As legislation varies from one country to another, manufacturers are frequently faced with
having to look at options for over-labelling of parallel imports. Leaflet labels can be produced
to exactly match the space of an existing label and may be over-applied with great accuracy
onto an existing product for this purpose.
2) Promotional purposes:
Packaging changes and re-designs for promotional purposes can be costly. Instead, leaflet
labels may be applied onto existing packaging for the purposes of an on-pack promotion
allowing for a cost-effective speed-to-market solution.
Money-off coupons encourage brand-loyalty and reach out to new target audiences, whereas
a prize competition may help to tempt consumers to choose your brand over a competitor
product. Recipe booklets and cross-promotional information may be included inside the
leaflet label to provide cooking inspiration on a food or beverage product. Even a minicatalogue of products could be included to encourage consumers to consider purchasing other
products within a brand. Return on investment may be measured when considering a repeat
promotion by means of redemption rates on coupons and competition entries.
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