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CONCEPT & GROWTH OF
ADVERTISING
Lecture 1
ADVERTISING
MARKETING
Marketing
Advertising
MARKETING
“Marketing is about indentifying and meeting human and
social needs”.
“Marketing is meeting needs profitably”
“Marketing is a societal process by which individuals and
groups obtain what they need and want through creating,
offering, and freely exchanging products and services of
value with others.”
UNDERSTANDING
DEMANDS
NEEDS,
WANTS
Needs are the basic human requirements like air, food,
water, clothing, etc.
&
UNDERSTANDING
DEMANDS
NEEDS,
WANTS
&
Needs become Wants when they are directed to specific
object that might satisfy the need. Like someone who needs
food may want to eat ‘Biryani’.
UNDERSTANDING
DEMANDS
NEEDS,
WANTS
Demands are wants for specific products backed by an
ability to pay.
&
UNDERSTANDING VALUE
A product or service is sold only when it offers certain benefits to
the customers. The customer chooses between different oproducts
and selects one which he/she perceives delivering the maximum
value.
Therefore, Value reflects the sum total of the perceived tangible
and intangible benefits and costs to customers. Value increases
with quality and service…decreases with price.
“Itni worth nahi hai…”
UNDERSTANDING STP
Segmentation
Targeting
Positioning
SEGMENTATION
Segmentation is the process of dividing the market based on
customers’ geographical, psychographical, behavioral and
demographic characteristics and needs.
Segmenting consists of four sub activities. These are:
1. determining who the actual and potential customers are
2. identifying segments
3. analyzing the intensity
of competitors in the market
4. selecting the attractive
customer segments
TARGETING
After the most attractive segments are selected, the company
must define the segments. Following sub activities form the basis
for deciding which segments will actually be targeted:
1. defining the abilities of the company and resources needed to
enter a market
2. analyzing competitors on their resources and skills
3. considering the
competitors' abilities
company’s
abilities
4. deciding on the actual target markets.
compared
to
the
POSITIONING
Positioning is the way by which the marketer tries to create a
distinct image of the product or service into the minds of the
customers.
Positioning attempts to sell the benefits of the product or service
to the customer by targeting his mind.
UNDERSTANDING STP THROUGH ADS
Eg. Surf Excel & Tata Nano ads
IN CLASS ACTIVITY
Implement the STP concept to launch a product / service in your
class.
UNDERSTANDING USP
USP – Unique Selling Proposition
UNDERSTANDING USP
Each advertisement must say to the audience “Buy this product
for this specific benefit”
This ‘specific benefit’ is the Proposition of the product.
The proposition must be one that the competition doesn’t or
cannot offer.
It must be strong enough to move the masses.
USP EXAMPLES
Head & Shoulders – Get rid of dandruff
Volvo - Safety
Dominos – Hot pizza at your door steps in 30 minutes or free
Indigo Ad
Air Deccan Ad
WHAT IS ADVERTISING??
Act of Bringing a Product or Service to the Attention
of the Consumer…
It is an
Advertising is a paid, non-personal communication of
information from an identified sponsor using mass media to
persuade or influence an audience so as to maximize profits.
WHAT IS NOT ADVERTISING??
>Offering premiums to stimulate sales
>Entertaining customers through various activities like shows,
music, etc.
>Use of exhibitions and demonstrations at shows and fairs
>Use of samples and activities involving personal selling
>Talk shows, etc.
WHY DO WE USE ADVERTISING???
> To inform and educate people about the products and services
offered. (Eg. Amway Ad)
> To make the brand name familiar to the public
>To Enhance the brand image
>To Differentiate the product/ service in competition to others
>To Enhance sales
>To tell the public about improvements in the product / service
>To reinforce customer confidence in his/ her purchase
(>>>Incredible India Campaign)
Give examples of the commercials where you saw the above
concepts being used.
UNDERSTANDING
ADVERTISING
THE
FEATURES
OF
>It is a Paid Form of Marketing
>It is a Non-personal presentation and promotion
advertiser to the prospect/ customer
by the
>It is used to promote Products, Services as well as Ideas. (Eg.
Ideas…??? Government of NCT Ad + Chidiya Song)
>Advertising is undertaken by an identified company or
individual
>The contents are controlled by the advertiser.
>It is a persuasive form of communication in order to achieve the
advertiser’s objectives
UNDERSTANDING
ADVERTISING
THE
FEATURES
OF
>It is both science and arts. The theories learnt in the classrooms
are practically implemented in designing ad campaigns
>It involves creativity
>Its an investment by the company / individual
>It is goal-oriented to achieve something
LETS SEE SOME PRINT ADS
.
LETS SEE SOME PRINT ADS
.
HOW ADVERTISING WORKS
What is the job of Advertising???
>Increase Sales?
>Enhance Brand Image?
>To inform about the product / services?
>To differentiate?
No matter what the objective is, advertising definitely tries to
deal with the maintenance or changing of attitude of the
customers.
HOW
ADVERTISING
WORKS
/
COMMUNICATION RESPONSE SEQUENCE
In order to maintain the attitude of the customers and to
persuade, the advertising message must cross through the
following five steps:
STEP 1: The message must be presented to the target audience
first.
STEP 2: The target audience must pay attention to the message.
STEP 3: After they have paid attention, they must comprehend
what is shown to them.
HOW
ADVERTISING
WORKS
/
COMMUNICATION RESPONSE SEQUENCE
STEP 4: Once the Target Audience has understood the message,
he must yield to the arguments shown in the message…Else he
would not consider the message credible.
STEP 5: Once they have accepted the argument, they must
behave as desired by the message.
ADVERTISEMENT PLANNING
A company lays a marketing plan as per its profit objectives. The
marketing plan states how the marketing communication efforts
will help meet those objectives. Planning sequence shall be as
follows:
Step 1: Objectives for Target Audience Action
>Non-users shall try the product
>Existing users shall continue the use or shall use more
frequently
Step 2: Communication Effects
>The planning manager decides how to position the brand
and which communication effects need to be established in
the minds of the target audience.
>These communication effects will lead to action
ADVERTISEMENT PLANNING
Step 3: Processing
>Once the communication objectives have been determined,
the next step is to design a creative strategy in order to
achieve the communication objective.
>At this stage the manager decides how the target audience
will comprehend the advertisement
Step 4: Exposure
>At this stage the manger decides how best to expose the
advertisement to the target audience
>Which media to be used?
>Where to reach the target audience
CONSUMER RESPONSE SEQUENCE VS
ADVERTISEMENT PLANNING
Planning always starts with the end in mind. Advertisement
planning is done to achieve a desired action from the Target
Audience. While CRS describes the Target Audience responds to a
particular advertisement.
Their sequence is just opposite to each other.
Planning
CRS
Step 1
Target Audience
Action
Behave
Step 4
Step 2
Communication
Effects
Yield
Retain
Step 3
Step 3
Processing
Attention
Comprehend
Step 2
Step 4
Exposure
Presented
Step 1
HIERARCHY
EFFECTIVENESS
OF
ADVERTISEMENT’S
100% Target Audience
75% Aware of the Product
50% Shows Some Interest In the Product
30% Preferred the Product
25% Purchased the Product
15% Repurchased
SOME DO’S ABOUT ADVERTISING
Advertising should be Informative
Advertising should be Entertaining
Advertising should be Involving
SOME DON’TS ABOUT ADVERTISING
>Never over promise or over claim about your product
>Never show something that might insult your customer
>Never try to compare your product or disrespect your
competitors
>Even if you show your competitors, it should be memorable and
not in a bad taste. Eg. Sprite Ad
BENEFITS OF ADVERTISING
Benefits To Manufacturers
>Introducing new products and creating awareness
>Helps to create regular demand
>Helps in expanding the customer base
>Helps in creating more demand
>Helps in Fighting market competition
>Establishes a favorable image for the product
BENEFITS OF ADVERTISING
Benefits to the Customers
>Informs and educates about the product
>Helps in comparing products and making choices easier
>Reduces prices due to large scale production
Benefits to the Society
>Generates employment
>Improves standard of living by providing new and improved
products
>Important source of revenue for the press
>Helps to solve social problems
CRITICISM OF ADVERTISING
>It is assumed that large amounts spent on advertisements are
transferred to the customers as higher prices.
>It creates artificial needs and encourages wasteful production
>It is deceptive and misleading
>Sometimes it is offensive and in bad taste
>Consumption of harmful products
>Discontented society
ASSIGNMENT
Make a folder of Print Ads and comment
to incorporate the concepts learnt in
today’s class…
ORIGIN
&
ADVERTISING
DEVELOPMENT
OF
>Egyptians used papyrus to make sales messages and wall
posters.
>Commercial messages and political campaign displays have been
found in the ruins of Pompeii and ancient Arabia
ORIGIN
&
ADVERTISING
DEVELOPMENT
OF
>Wall or rock painting for commercial advertising is another
manifestation of an ancient advertising form, which is present to
this day in many parts of Asia, Africa, and South America.
>The tradition of wall painting can be traced back to Indian rock
art paintings that date back to 4000 BCE.
>Out-of-home advertising and billboards are the oldest forms of
advertising.
ORIGIN
&
ADVERTISING
DEVELOPMENT
OF
>As the towns and cities of the Middle Ages began to grow, and
the general populace was unable to read, signs that today would
say cobbler, miller, tailor or blacksmith would use an image
associated with their trade such as a boot, a suit, a hat, a clock, a
diamond, a horse shoe, a candle or even a bag of flour.
>Fruits and vegetables were sold in the city from the backs of
carts and wagons and their proprietors used street callers (town
criers) to announce their whereabouts for the convenience of the
customers.
Eg. Town Crier
ORIGIN
&
DEVELOPMENT
ADVERTISING – PEARS CASE STUDY
OF
>In 18th Century, with the development of the press, Advertising
started appearing in the newspapers in England in the Weekly
newspapers.
>Later handbills were introduced
>Thomas J. Barratt from London has been called "the father of
modern advertising“.
>Working for the Pears Soap company, he created an effective
advertising campaign and Pears Soap became the world's first
legally registered brand and is therefore the world's oldest
continuously existing brand.
>An advertising tactic that he used was to associate the Pears
brand with high culture and quality. He developed a series of
adverts of well groomed middle-class children, associating Pears
with domestic comfort and aspirations of high society.
ORIGIN
&
DEVELOPMENT
ADVERTISING – PEARS CASE STUDY
OF
>Barrat established Pears Annual in 1891, a magazine which
promoted contemporary illustration and colour printing and in
1897 added the Pears Cyclopaedia a one-volume encyclopaedia.
>From the early 20th century Pears was famous for the annual
"Miss Pears" competition in which
parents entered their children into
the high-profile hunt for a young brand
ambassador to be used on packaging
and in consumer promotions.
>He recruited scientists and the
celebrities of the day to publicly
endorse the product.
ORIGIN
&
DEVELOPMENT
ADVERTISING – PEARS CASE STUDY
OF
>Barratt introduced many of the crucial ideas that lie behind
successful advertising and these were widely circulated in his
day.
>He constantly stressed the importance of a strong and exclusive
brand image for Pears and of emphasizing the product's
availability through saturation campaigns.
>He also understood the importance of constantly re-evaluating
the market for changing tastes and mores, stating in 1907 that
"tastes change, fashions change, and the advertiser has to change
with them. An idea that was effective a generation ago would fall
flat, stale, and unprofitable if presented to the public today. Not
that the idea of today is always better than the older idea, but it
is different - it hits the present taste.
DEVELOPMENT OF ADVERTISING IN US
>Advertising increased dramatically in the United States as
industrialization expanded the supply of manufactured products.
In order to profit from this higher rate of production, industry
needed to recruit workers as consumers of factory products. It did
so through the invention of mass marketing designed to influence
the population's economic behaviour on a larger scale.
>Advertising was also used as a vehicle for cultural assimilation,
encouraging workers to exchange their traditional habits and
community structure in favour of a shared "modern" lifestyle.
>In the early 1920s, the first radio stations were established by
radio equipment manufacturers and retailers who offered
programs in order to sell more radios to consumers.
>When the practice of sponsoring programs was popularized, each
individual radio program was usually sponsored by a single
business in exchange for a brief mention of the business' name at
the beginning and end of the sponsored shows.
SELF STUDY
>Public service advertising in WW2
>Commercial television in the 1950s
>Media diversification in the 1960s
>Cable television from the 1980s
>On the Internet from the 1990s
THANK YOU