AND MANAGEMENT UNIT – I Advertising industry: advertisers, agencies, media companies and other organizations. The communication model: communication process, stages and challenges. Economic, social, ethical and regulatory aspects of advertising. Demand creation role of advertising in primary and secondary demand. How advertising works" Hierarchy of effects model, advertising objectives, routes to persuasion. UNIT – II Customer behavior and advertising. Segmentation; motivation analyses, and value proposition. Advertising message: message objectives, recall, attitude, emotions and feelings. Message tactics: creative approaches, copy writing Creative aspects of advertising: copy writing, advertising artwork, copy in conventional media and Cyberspace. UNIT – III Advertising Objectives: goals and objectives, DAGMAR, Media strategy: budgeting, approaches and allocation. Media planning types, class, vehicle, scheduling and new media forms. UNIT – IV Advertising effectiveness; pro and post launch research. Advertising in the evolving environment. UNIT – V Branding context: assets and the asset, concept of value, brand and marketing metrics; Brand meaning: brand image and personality, brand and product; Brand planning; brand vision and visioning process, business of brand: Brand audit brand reality check and brand appraisal. UNIT – VI Brand positioning; choice of context, parity and differentiation. Repositioning brand equity: brand assets and liabilities, equity creation and management.

STUDENTS ARE ADVISED TO REFER THESE NOTES TOPIC WISE IN THE RESPECTIVE UNITS.

UNIT - I

―While listening to radio you come across a product called ―Bajaj Almond hair oil‖. Then while going to buy a hair oil you ask the shopkeeper to show you that product. You like the fragrance and find the price reasonable and purchase it for your use.‖

DEFINITION OF ADVERTISING

The American Marketing Association defines advertising as ―any paid form of non-personal presentation and of ideas, goods and services by an identified sponsor.‖

Prof. N.D.Syriac Defines – Advertising is to communicate regarding a product using mass media for mass prospects or users.

David Ogilvy says – “Advertising is the art and science of building through persuasive communication and positioning them in consumers perception with a constant vigil on the market situation and consumer expectations.”

A.G.Krishnamurthy founder of Mudra Advertising Defines - Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service through creative form of presentation.

FEATURES OF ADVERTISING

(i) Non-personal presentation of message – In advertising there is no face-to-face or direct contact with the customers. It is directed to the prospective buyers in general. (ii) Paid form of communication-In advertising the manufacturer communicates with prospective customers through different media like, newspapers, hoardings, magazines, radio, television, etc. He has to pay certain amount for using some space or time in those media. (iii) Promotion of product, service or idea –Advertisement contains any message regarding any particular product, service or even an idea. It makes people aware about the product and induces them to buy it. (iv) Sponsor is always identified –The identity of the manufacturer, the trader or the service provider who issues advertisement is always disclosed. (v) Communicated through some media- Advertisements are always communicated through use of certain media. It is not necessary that there will be just one medium. All the media may also be used.

KEY CONCEPTS OF ADVERTISING

HISTORY OF INDIAN ADVERTISING

 Pre independence –West end watch co Mumbai 1907  1930 –Talkies and radio emerge in india  1941 – Leela chitnis : LUX SOAP(1943),EVEREST (1946)  1950 – 2-3 MIN FILMS in existence  1960 – first indian ad convention(kolkata),nargis wadia :made for each other

 NRS(National Readership Survey),INS(Indian News Paper Society),AAI (Advertising Association of India) Come into existence.  1970 -1980 : radio & TV Commercials  1990 –CNN,DD2,and channels.  LINTAS (Lever International Advertising Service),Mc Cann,O & M (Ogilvy and Mather),FCB Ulka, Orienta etc.(2008) ADVERTISING V/S …..

Personal Selling- Delivery of a specially designed message to a prospect by a seller, usually in the form of face-to-face communication, personal correspondence, or a personal telephone conversation,

Sales promotions can be directed at either the customer, sales staff, or channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions.

Advertising and are two very different communication tools, even though both employ the mass media as a vehicle for reaching large audiences.

Traditionally, most marketers placed heavy reliance on advertising and only occasionally used publicity. On the other hand, public relations practitioners have primarily relied on publicity--or, as they sometimes prefer to call it, media relations--and only rarely used advertising.

Publicity is presented by the media because it's "newsworthy."This does not mean that advertising should be seen only as a marketing tool and that publicity should be seen only as a public relations tool. Thoughtfully used, both tools are valuable for both functions.

Public relations (PR) is the practice of managing the flow of information between an organization and its publics.1 PR aims to gain an organization or individual positive exposure to their key stakeholders, while downplaying any negative exposures. Common activities include speaking at conferences, winning industry awards, working with the press and employee communications.

- PARTICIPANTS IN ADVERTISING-

Advertiser • Uses advertising to send out a message about its products. • Initiates effort by identifying a problem that advertising can solve. • Approves audience, plan and budget. • Hires the agency. Agency • Has strategic and creative expertise, media knowledge, workforce talent and negotiating abilities. Media • Channels of communication that carry the message to the audience

• Are also companies or huge conglomerates • Cost effective because the costs are spread over a large number of people Target Audience • The desired audience for the advertising message • Data-gathering technology improves accuracy of information about customers • Advertisers must recognize the various target audiences they are talking to and know as much about them as possible OBJECTIVES

1. Communicate 2. Inform 3. Increase in sale 4. Competition 5. New product launch 6. Build goodwill 7. Better dealer relations 8. Effective brand performance FUNCTIONS OF ADVERTISING

(1)Primary Functions – To Increase Sales,

 Persuasion of dealers  Help to dealers  Increase in per capita use  Receptiveness of new product  Insurance for manufacturers Business  Confidence in quality  To eliminate seasonal fluctuations  More Business for all  Raising standard of living.

(2) Secondary Functions –

 To encourage salesman ship and lend them moral support  To furnish information  To impress Executives  To Impress factory workers  To secure better employees

IMPORTANCE OF ADVERTISING

Benefits to Manufacturers – It Establishes contact between manufacturers and consumers,It facilitates smooth demand in market , It helps to create an image and reputation of company , Easy introduction of new products , Price maintainance , High response from market.

Benefits to market Intermediaries – It saves time and money ,ensure more economic selling , create awareness very easily.

Benefits for Consumers – Creates an Opportunity to compare the products ,educate the consumers or prospects , It ensures indirect guarantee.

Benefits to Community or Society – It provides a glimpse of a country way of life , Educative in nature through entertainment , I spurts individual exertion and greater production , Assures employeement opportunities.

ADVERTISING AGENCY

The role of an advertising agency is to plan, create produce and place advertising for its clients. Advertising agency is ―an organization whose business consists in the acquisition as a principal of the right to use space or time in advertising media and the administration on behalf of the advertisers of advertising appropriations made by them.

In the beginning advertising agents were simply agents and their main job was to sell space in a medium. But today they ave achieved such a pivotal position in the marketing process the they are sometimes called marketing agents. With ever increasing competitions advertising agents have extended the range of services they could render. This is evident from the chart below which explains the multifarious activities undertaken by such agents.

With the profound impact of large scale selling methods, the responsibilities of a sales organisation have out-grown to their unusual proportions. Specialization and sophistication are warranted from talented artists. The work of specialized units called Advertising Agencies has been gaining much ground over a period of fifty years.

In advanced nations, major portion of the publicity work is handled by the advertising agencies. U.S.A. has more than 4 5 6 7 agencies and England has 2170 Units. Agencies has come up in India in Bombay, Calcutta, Delhi, Madras and Bangalore. To day India as over 375 agencies of medium and small sizes catering to the needs of Indian manufactures and dealers. The well known agencies in India are Clarion, Everest Advertising, M.C.H. Lintas, Shilpi etc.

ADVERTISING AGENCY FUNCTIONS

Professionals at advertising agencies and other advertising organizations offer a number of functions including:

 Account Management – Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. These responsibilities include locating and negotiating to acquire clients.  Creative Team –The principle role of account managers is to manage the overall advertising campaign for a client, which often includes delegating selective tasks to specialists. An agency‘s creative team consists of specialists in graphic design, film and audio production, copywriting, computer programming, and much more.  Researchers – Full-service advertising agencies employ market researchers who assess a client‘s market situation, including understanding customers and competitors, and also are used to test creative ideas. Researchers are also used following the completion of an advertising campaign to measure whether the campaign reached its objectives.  Media Planners – Once an advertisement is created, it must be placed through an appropriate advertising media. Understanding the nuances of different media is the role of a media planner, who looks for the best media match for a client and also negotiates the best deals. TYPES OF ADVERTISING AGENCIES.

1. Full service Agencies . Large size agencies. . Deals with all stages of advertisement. . Different expert people for different departments.

. Starts work from gathering data and analyzing and ends on payment of bills to the media people. 2. Interactive Agencies . Modernized modes of communication are used. . Uses online advertisements, sending personal messages on mobile phones, etc. . The ads produced are very interactive, having very new concepts, and very innovative. 3. Creative Boutiques . Very creative and innovative ads. . No other function is performed other than creating actual ads. . Small sized agencies with their own copywriters, directors, and creative people. 4. Media Buying Agencies . Buys place for advertise and sells it to the advertisers. . Sells time in which advertisement will be placed. . Schedules slots at different television channels and radio stations. . Finally supervises or checks whether the ad has been telecasted at opted time and place or not. 5. In-House Agencies . As good as the full service agencies. . Big organization prefers these type of agencies which are in built and work only for them. . These agencies work as per the requirements of the organizations. FUNCTIONS OF VARIOUS DEPARTMENTS IN AN AD AGENCY

1. Contact Department. Creation, sustaining an extension are the three basic functions of the department. It gets new business and tires to continue the existing business. Accounts Executive of the departments is the key man who acts as a liaison between the agency on the one hand and the clients on the other. 2. Media Department. After making the advertisement plan, the agency selects the best possible medium. It is choosing the channels o communication trough which to distribute the advertising. The media analyst and estimators decide the approximate kind and number of potential customers and then to choose the media that get the message to them. 3. Copy Department. The copy director coordinates the work of writing the copy with the assistance of copy chief and copy writer. The advertisement copy is the heart of advertising programme as it contains the message. Copy writing requires imagination, flair and fluency in the language and then to choose the media that copy is the outcome of his interest, mood and ability. 4. Art and Visualization Department. The art director heads this department. He is assisted by artists, lay-out men and visualizers. Art director gets prepared visuals and lay-outs for press advertisements, posters, calenders, printed bulletins, car cards and other out door pieces. Some

agencies hire the outside artiste. There should be close cooperation between the department of art and copy as they supplement the work of each other. 5. Production Department. When a copy is ready the agency proceeds to its mechanical production, agencies generally use out side units for these production services. The production manager as to move to the typographers or type setters to have copy set in type, later to the photoengraver for the illustrations. Finally he moves to the electro-typer for electro-types mats or other duplicate material in such qualities as needed. 6. Finance Department. The accountants are responsible to maintain accounts, billing and collecting the dues from the customers. The checking section verifies the production and publicity of each individual case, may be press medium or outdoor or radio or television or cinema etc. The aim is to see that such publicity is really helping the advertiser. It is interested in realizing the goals of publishing whether the advertisement is to day or after a coupe of days or a week or a month. 7. Research Department. This section of the advertising agency is engaged in the study of h effects of sales activities at the end of the point f distribution of a particular product. Sometimes outside research organisations are employed to carry on such research as they are more economical and reliable. The Research director takes the assistance of analyst, investigators, marketing assistants clerks and librarians. All these persons are trained in research work and are in a position to evaluate the information relating to the product. 8. Public Relations Department. The birth, growth and survival of an advertising agency depend very much on the public opinions, support and feelings it sis public opinion that decides the destiny of the enterprises. The department establishes an maintains mutual understanding between the organisation an the public. Public relations approach is the product of publicists an advertising men. The department is headed by the Public relations Director who a to struggle hard to have always high opinion about the firm. Once the image is lost the whole business comes to a standstill. ADVERTISING CAMPAIGN

Advertising campaigns are the groups of advertising messages which are similar in nature. They share same messages and themes placed in different types of medias at some fixed times. The time frames of advertising campaigns are fixed and specifically defined.The very prime thing before making an ad campaign is to know-Why you are advertising and what are you advertising ?Why refers to the objective of advertising campaign. The objective of an advertising campaign is to

 Inform people about your product  Convince them to buy the product  Make your product available to the customers The process of making an advertising campaign is as follows:

1. Research: first step is to do a for the product to be advertised. One needs to find out the product demand, competitors, etc. 2. Know the target audience: one need to know who are going to buy the product and who should be targeted.

3. Setting the budget: the next step is to set the budget keeping in mind all the factors like media, presentations, paper works, etc which have a role in the process of advertising and the places where there is a need of funds. 4. Deciding a proper theme: the theme for the campaign has to be decided as in the colors to be used, the graphics should be similar or almost similar in all ads, the music and the voices to be used, the designing of the ads, the way the message will be delivered, the language to be used, jingles, etc. 5. Selection of media: the media or number of Medias selected should be the one which will reach the target customers. 6. Media scheduling: the scheduling has to be done accurately so that the ad will be visible or be read or be audible to the targeted customers at the right time. 7. Executing the campaign: finally the campaign has to be executed and then the feedback has to be noted.

Mostly used media tools are print media and electronic media. Print media includes newspaper, magazines, pamphlets, banners, and hoardings. Electronic media includes radio, television, e-mails, sending message on mobiles, and telephonic advertising. The only point to remember is getting a proper frequency for the ad campaign so that the ad is visible and grasping time for customers is good enough.

COMMUNICATION IN ADVERTISING

The word communication comes from the Latin word communis, meaning common. When we communicate we try to establish a 'commonness' with someone, that is we try to share information, an idea or an attitude. Man is a social animal and communication is essentially a social affair. 'No man is an island or an entire in himself', 'We cannot not communicate' are some of the common sayings in communication. Communication is what makes human relationships possible. Speech, writings, gestures are some of the means of communication, or our means of social interaction.

Comm can be in terms of conventions of dress, mannerism, institutions etc. In communication there are various schools of thought. The process of communication has been explained through different models and theories as per the changing times.

Aristotle was among the first to develop a communication model. According to Aristotle, in a communication event, there are three main elements, the speaker, the speech and the audience. Subsequently, many other experts have developed other models.

Shannon and Weaver developed a model based on technical aspect of communication. They introduced the concept of 'noise' and the idea that meaning lies in people. Noise could be the culture, value etc of the society.

The Berlo's model brought 'encoder' 'decoder' elements in the communication process. Further Harold Laswell's model emphasised on the effect of communication and the response of the receiver. In the Wilbur Schramm model, the focus is on the signal from the two sides of the source and receiver. Further there are various theories such as the Bull's eye theory, spiral theory etc explaining the process of communication.

Communication is no longer viewed as simply a way to reach out to people. Comm is a field that has been growing in diverse directions, therefore it is to be studied not only at interpersonal, organisational levels, but also at various other levels such as the inter-cultural context. Therefore to understand communication at any level we study any event, process or system under four main categories-Context, Technology, Representation and Social relation. These are the four analytical dimensions of communication. Each of them is co-determinant. These four dimensions can be studied as the broad framework of the communication process. George T. Vardaman, of the College of Business Administration, University of Denver, USA, suggests following a simple formula in acronym TRIM. In this he suggests definition and planning the to whom, what, when and where of communications: • Target or Mission or purpose of communication. • Receiver to whom the message is directed at, based on his needs • Impact or result that is desired. • Method of media that must be employed to get the desired results. The TRIM formula can give you very effective communications and presentation control, so that your time and efforts can be productively channeled and bring you results you want. Putting ideas together is about organizing and developing your communication. The way you put together your ideas determines how you will give out the information and how well your target audiences will receive your message - with what impact and result. This is vital to the success of business communications. It is worthwhile to examine methods for putting ideas into a communicable form. For instance: 1. Structuring ideas for the target group they are for. 2. Building logical sequences. 3. Building psychological sequences. 4. Developing core ideas from the lot. 5. Having proper introductions and conclusions.

However, in any situation success of the communication will directly depend on the quality of the ideas and their development within the larger objectives. While communication can be better if you know your objective, greater effectiveness lies in hitting the right target audience in conjunction with their predominant communication needs. In this, there are five receiver types, which need to be understood and tackled: 1. Apathetic 4. Credent 2. Sophisticated 5. Critical 3. Hostile Some of the techniques used by professional communicators are: 1. Shock - startle, shake or surprise the audience. 2. Suspense - keeping them guessing. 3. Humor - in language or situation to overcome apathy. 4. Novelty - something new or innovative or creative.

5. Familiarity - keeping audience interest through something known. 6. An inside story - something to do with behind the scene activities.

Visual and other devices - in presentation, like demo, audiovisual, case-studies, and anecdotes. In doing this one must at the same time be careful in selecting appropriate techniques, avoid talking down to the audience, be natural and avoid being condescending towards people.

ECONOMICAL ASPECTS OF ADVERTISING

Value of Products: The advertised products are not always the best products in the market. There are some unadvertised products also present which are good enough. But advertising helps increase value for the products by showing the positive image of the product which in turn helps convincing customers to buy it. Advertising educates consumers about the uses of the products hence increasing its value in minds of the consumers. For e.g. mobile phones were first considered as necessity but nowadays the cell phones come with number of features which makes them mode of convenience for consumers.

Effect on Prices: Some advertised products do cost more than unadvertised products but the vice versa is also true. But if there is more competition in the market for those products, the prices have to come down, for e.g., canned juices from various brands. Thus some professional like chartered accountants and doctors are not allowed to advertise.

But some products do not advertise much, and they don‘t need much of it and even their prices are high but they are still the leaders in market as they have their brand name. e.g., Porsche cars

Effect on consumer demand and choices:Even if the product is heavily advertised, it does not mean that the demand or say consumption rates will also increase. The product has to be different with better quality, and more variety than others. For E.g., Kellogg‘s cornflakes have variety of flavors with different ranges to offer for different age groups and now also for people who want to loose weight thus giving consumers different choices to select from.

Effect on business cycle: Advertising no doubt helps in employing more number of people. It increases the pay rolls of people working in this field. It helps collecting more revenues for sellers which they use for betterment of product and services. But there are some bad effects of advertisements on business cycle also. Sometimes, consumer may find the foreign product better than going for the national brand. This will definitely effect the production which may in turn affect the GDP of the country.

SOCIAL ASPECTS OF ADVERTISING

There are some positive and some negative aspects of advertising on the social ground. They are as follows.

Deception in Advertising:The relation between the buyers and sellers is maintained if the buyers are satisfied with what they saw in advertise and what they got after buying that product. If seller shows a

false or deceptive image and an exaggerated image of the product in the advertisement, then the relation between the seller and buyers can‘t be healthy. These problems can be overcome if the seller keep their ads clean and displays right image of the product.

The Subliminal Advertising:Capturing the Minds of the consumers is the main intention of these ads. The ads are made in such a way that the consumers don‘t even realizes that the ad has made an impact on their minds and this results in buying the product which they don‘t even need. But ―All ads don‘t impress all consumers at all times‖, because majority of consumers buy products on basis of the price and needs.

Effect on Our Value System:The advertisers use puffing tactics, endorsements from celebrities, and play emotionally, which makes ads so powerful that the consumers like helpless preys buy those products.These ads make poor people buy products which they can‘t afford, people picking up bad habits like smoking and drinking, and buy products just because their favorite actor endorsed that product. This affects in increased the cost of whole society and loss of values of our own selves.

Offensiveness:Some ads are so offensive that they are not acceptable by the buyers. For example, the ads of denim jeans showed girls wearing very less clothes and making a sex appeal. These kinds of ads are irrelevant to the actual product. Btu then there is some ads which are educative also and now accepted by people. Earlier ads giving information about birth control pills was considered offensive but now the same ads are considered educative and important.

But at the last, there are some great positive aspects which help

. Development of society and growth of technologies . Employment . Gives choices to buyers with self interest . Welcomes healthy competition . Improving standard of living. . Give information on social, economical and health issues.

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.

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 REGULATION In today's world of cut throat competition, advertisement plays an important role in brand building and informing public about available products so that they can make informed choice among different products or brands.

On one side advertising carries several responsibilities, but on the other side advertising is accused of encouraging materialism and consumption, of stereotyping, of causing us to purchase unnecessary, of using sex to sell, of taking advantage of children, of manipulating our behaviour; contributing to downfall of our value system.

In order to protect consumer interest and to monitor and control advertising a number of different regulatory bodies are established. Many countries have an Advertising Standard Authority to ensure advertising claims are truthful, not exaggerated or misleading; or to protect particular groups like children.

Meaning of Advertising Regulation Advertising regulation refers to the laws and rules defining the ways in which products can be advertised in a particular region. Rules can define a wide number of different aspects such as ad placement, timing and content.

Advertising Regulations in different countries

 United States - False advertising and health related ads are regulated most.  Sweden and Norway - Domestic ads that target children are prohibited.  Some European Countries don't allow sponsorship of children programs, no ads are targeted to children under the age of twelve.  United Kingdom - Tobacco ads on television, bill boards, or at sporting events is banned.  India - Alcohol and Tobacco ads are banned.

Self Regulation-The word 'Self' refers to the actor. Here the actor can be a company or a group of companies acting collectively. 'Regulation' refers to what the actor is doing. Regulation has three components:-

1. Legislation - to define appropriate rules, 2. Enforcement - igniting actions against violators, 3. Adjudication - decision on violation and and imposing an appropriate sanction.

The term 'Self Regulation' means the company or the industry rather than the government is doing regulation. In self regulation it is not necessary that government involvement lacks entirely. One or two components of regulation are taken over by the industry other remains with the government. DEMAND STIMULATION

Primary Demand Stimulation Primary demand stimulation refers to advertising messages that promote the merits of an entire product category rather than a particular brand. It can be thought of as growing the overall pie, rather than taking a bigger piece of the pie from competitors. The major purpose of primary demand stimulation is either to inform customers about a brand new product or technology that they are unfamiliar with, or to persuade customers that they haven‘t recognized the benefits of a given product. Primary demand is typically used in one of two scenarios: to launch a completely new product category or to garner more attention to an under-appreciated category. The idea behind new product primary demand is that before a pioneer can promote its benefits, the product category must be explained to target customers. This is especially true in complex categories like technology, where innovative leaders must inform audiences about the new product category before investing in secondary demand stimulation. General guidelines to use primary demand stimulation is if you meet the following criteria: (1) you own significant market share, (2) all or most of the growth will go to you, or (3) if your are advertising on behalf of a trade association.

Secondary Demand Stimulation Secondary demand stimulation, also called selective demand stimulation, is the better recognized form of traditional marketing. Secondary demand stimulation ads try to take a bigger piece of the pie from competitors by distinguishing the products unique advantages. ADVERTISING AND HIERARCHY OF EFFECTS MODEL

Among advertising theories, the hierarchy-of-effects model is predominant. It shows clear steps of how advertising works. Hierarchy of effects Model can be explained with the help of a pyramid. First the lower level objectives such as awareness, knowledge or comprehension are accomplished.

Subsequent objectives may focus on moving prospects to higher levels in the pyramid to elicit desired behavioural responses such as associating feelings with the brand, trial, or regular use etc. it is easier to accomplish ad objectives located at the base of the pyramid than the ones towards the top. The percentage of prospective customers will decline as they move up the pyramid towards more action oriented objectives, such as regular brand use.

Many marketers know the Hierarchy of Effects (one of several theoretical frameworks that is useful in developing an advertisement for an advertising campaign), but usually by a different name. Some call it AIDA, others the demand chain, still more the purchase funnel. Whatever the name, it invariably begins with the total potential market for your brand. This pool of potential customers then progress through a series of stages that can include awareness, preference, purchase and, hopefully, loyalty.

WHY IS IT A „HIERARCHY‟? It is a ‗hierarchy‘ because we lose people as they move through the sequence.

WHY IS IT A „HIERARCHY OF EFFECTS‟? It is a ‗hierarchy of effects‘ because at each stage marketers must achieve different communication goals. They might be encouraging trial, rewarding loyalty, or communicating brand associations, depending on the stage the target customer has reached. THE SIX STAGES INVOLVED

Awareness:If most of the target audience is unaware of the object, the communicator‘s task is to build awareness, perhaps just name recognition, with simple messages repeating the product name. Consumers must become aware of the brand. This isn‘t as straightforward as it seems. Capturing someone‘s attention doesn‘t mean they will notice the brand name. Thus, the brand name needs to be made focal to get consumers to become aware. Magazines are full of ads that will capture your attention, but you‘ll have trouble easily seeing the brand name.

Knowledge: The target audience might have product awareness but not know much more; hence this stage involves creating brand knowledge. This is where comprehension of the brand name and what it stands for become important. What are the brand‘s specific appeals, its benefits? In what way is it different than competitor‘s brands? Who is the target market? These are the types of questions that must be answered if consumers are to achieve the step of brand knowledge.

Liking: If target members know the product, how do they feel about it? If the audience looks unfavorably towards the product to communicator has to find out why. If the unfavorable view is based on real problems, a communication campaigns alone cannot do the job. For product problem it is necessary to first fix the problem and only then can you communicate its renewed quality.

Preference: The target audience might like the product but not prefer it to others. In this case, the communicator must try to build consumer preference by promoting quality, value, performance and other features. The communicator can check the campaigns success by measuring audience preference before and after the campaign.

Conviction: A target audience might prefer a particular product but not develop a conviction about buying it. The communicator‘s job is to build conviction among the target audience.

Purchase: Finally, some members of the target audience might have conviction but not quite get around to making the purchase. They may wait for more information or plan to act later. The communicator must need these consumers to take the final step, perhaps by offering the product at a low price, offering a , or letting consumers tried out. This is where consumers make a move to actually search out information or purchase. Thus advertising is thought to work and follow a certain sequence whereby the prospect is moved through a series of stages in succession from unawareness to the purchase of the product.

UNIT - II

Segmentation is the first step in a . Once marketers divide the market into various groups, they can then select their 'targeted segments' and design products that suit their requirements.

Basis of Segmentation The first step in developing a segmentation strategy is to identify the basis on which the is done. There are eight categories of customer characteristics that form the basis for segmentation. The categories are: 1.Geographic segmentation: The market is divided according to the location. The classification is based on the assumption that people living in the same area share similar habits and wants. However, there's a difference in the purchasing patterns of the consumer living in urban, semi-urban, and rural areas. For instance, as an Electrolux dealer, having a showroom in Hyderabad, you can advertise your company in and around Hyderabad via local newspapers, TV, radio, and other magazines. On the basis of geographical spread, advertising can be classified as (a) national, (b) local and (c) global. (a) National Advertising: Some manufacturers may think that their target is the entire country. They select media with a countrywide base. Generally large, established firms belong to this category. Among them are Hindustan Lever, Brooke Bond, Larsen & Toubro, Escorts, Associated Cement Companies and the like. (b) Local Advertising: Small firms may like to restrict their business to State or regional level. Some firms first localize their marketing efforts and once success has been achieved, they spread out to wider horizons. A classic example 'is Nirma washing powder, which initially was sold in Gujarat and subsequently entered the other markets. Retail stores also undertake local advertising the area to be covered would generally be a city or a town and media would be selected t principally relates to that area. In recent years, several magazines have appeared which focus on a particular city and are of direct relevance to its inhabitants like the Bombay and Iskl11d. Sometimes large firms may also go in for local advertising, e.g., when they undertake pretest of a product, especially consumer product in selected areas before embarking promotional campaign on a national level.

(c) Global Advertising: Multinational firms treat the world as their market. Firms like National, IBM or Sony or Ford advertise globally, e.g., in periodicals like Times, Reader's Digest. However, with the increase in the popularity of the television and satellite communications, marketers strongly believe that the geographic segmentation can be replaced by a single global marketing strategy. 2. Demographic segmentation: The segmentation is based on characteristics like age, sex, marital status, income, occupation, and education. It's the most accessible and cost-effective way to identify your target market. 3. Psychological/psycographic segmentation: Psychological characteristics refer to the inner qualities of a person. For instance, consumers are divided on the basis of their needs and motivations, personality, perceptions, learning, level of involvement, and attitudes. As an executive dealer you can provide a questionnaire to the people residing in the area with questions like: Do you like book reading or not? How often you go out for movies and picnics? What channels do you prefer watching etc. Depending on these questions you can segment the consumers and offer products that matches their lifestyle.

4. Sociocultural segmentation: This is another basis for segmentation. Markets are divided depending on factors like family life cycle, social class, cultural values, and cross-cultural affiliations. Culturally distinct segments offer excellent growth avenues for marketers. However, care should be taken while advertising the products. For instance, if you are selling the Whirlpool refrigerator with the 'instant cool' feature, sell it as a means of convenience for a workingwomen family. However, the same should appeal as a 'status symbol' for the upper class. 5. Use-Related segmentation: It's the most popular method of segmentation. Consumers are divided into different categories depending on the product, service, or brand usage characteristics like the rate of usage (consumers are divided depending on the number of times they use a product); Awareness status (Consumers are divided based on their knowledge level of a product. For instance, if a consumer instantly recalls all the features and models available/ yet to be launched in the market, his awareness level is high); and brand loyalty. 6. Usage-Situation Segmentation: This classification is based on the products/ services that the consumer uses depending on the situation. For instance, if you buy red roses to your wife on her birthday, you fall under one category. 7. Benefit-segmentation: The market is divided into segments depending on the benefits of the products. This sort of segmentation is used to communicate the product features to consumers. For instance, Bausch and Lomb advertise its disposable lenses as a form of convenience. 8. Hybrid segmentation: Instead of sticking to one particular segmentation style, marketers combine one or two segmentation variables and arrive at segmentation. This style is referred to as Hybrid segmentation. Coming back to the Target advertising on the other hand is: Segmentation on the basis of target groups aimed at, advertising can be classified as – (a) Consumer Advertising, (b) Industrial Advertising, (c) Trade Advertising, (d) Professional Advertising.

MOTIVATION ANALYSES

Motivation is an internal state that drives us to satisfy needs. Motivation is the energizing force that activates behavior. Once we recognize that we have a need, a state of tension exists that drives the consumer to the goal of reducing this tension and eliminating the need. Consequently, only unmet needs motivate.

According to McGuire, there are 12 psychological motives, 12 reasons why consumers are motivated to make purchases.

1. Need for consistency

 People have a basic desire to have all parts of themselves consistent and they purchase products that fulfill this need. People that listen to country music will purchase products like cowboy boots, heavy duty trucks and pets.

2. Need for attribute causation

 People have the need to determine who or what causes things to happen to them. For example, some people choose to attribute it to themselves, fate or an outside force like God.

3. Need to categorize

 Categories allow people to process a large amount of information. Vehicles are categorized into cars, SUV‘s, light trucks, heavy duty trucks, van, sporty, mid-size, hybrid, electric and so on. This helps consumers quickly narrow down their choices when purchasing a vehicle.

4. Need for cues

 Most people will view others‘ behavior and infer what they feel and think. Clothing plays an important role in presenting image of a person. People quickly judge others by the clothing they are wearing and the vehicle they drive.

5. Need for independence

 Americans strive for individuality and self-expression and many products are marketed as "limited edition" or being different and unique  The Japanese culture discourages individuality and focuses on affiliation, and behavior that enhances family and culture.

6. Need for self-expression

 Americans are known for letting others know who and what they are by their extravagant purchases, especially clothing and cars. Who really needs a $1,200 pen? What is that saying about that person?

7. Need for ego-defense

 The need to defend your identity. An insecure customer will purchase well-known brand names for fear of being labeled socially incorrect.

8. Need for reinforcement

 People are motivated to act because they are rewarded for doing it. For example, showing off a new diamond ring to your friends creates acceptance and approval.

9. Need for affiliation

 Affiliation is the need to develop mutually helpful and satisfying relationships with others, which is a critical part of all people‘s lives.

10. Need for modeling

 Conformity and the need to base behavior on that of others. This is the major motivation of children, tweens (8-12 year olds), and especially teenagers-and in their social world conformity mean acceptance.

11. Need for novelty

 People have variety seeking-behavior and this may be a reason for brand switching and impulse buys, but that depends on the person. People experiencing rapid life changes will seek stability, while people in stable life situations will seek change. The travel industry uses this by changing up their ads and showing adventure vacations where people are actively having fun and some ads showing relaxing vacations where people are swinging in a hammock.

12. Need for Assertion

 Customer‘s need to engage in activities that will increase self-esteem and self-esteem in the eyes of others. Most consumers respond positively to ads that appeal to this need. In an advertisement for a ladies razor, it will say "show off your beautiful legs to your man," this will appeal to women by showing that the product increases your self-esteem.

According to Maslow‘s hierarchy of human needs, for each need there are positives gained and negatives that are avoided by meeting that particular set of needs. Products that are purchased because of a need will satisfy a goal and avoid unwanted consequences. For example, people need to feel secure so they purchase smoke detectors, therefore gaining protection and avoiding loss and fear of fire.

VALUE PROPOSITION

A value proposition is a promise of value to be delivered. It‘s the primary reason a prospect should buy from you.

In a nutshell, value proposition is a clear statement that

 explains how your product solves customers‘ problems or improves their situation (relevancy),  delivers specific benefits (quantified value),  tells the ideal customer why they should buy from you and not from the competition (unique differentiation).

The value proposition is usually a block of text (a headline, sub-headline and one paragraph of text) with a visual (photo, hero shot, graphics).

There is no one right way to go about it, but I suggest you start with the following formula:

 Headline. What is the end-benefit you‘re offering, in 1 short sentence. Can mention the product and/or the customer. Attention grabber.  Sub-headline or a 2-3 sentence paragraph. A specific explanation of what you do/offer, for whom and why is it useful.  3 bullet points. List the key benefits or features.  Visual. Images communicate much faster than words. Show the product, the hero shot or an image reinforcing your main message.  The best value proposition is clear: what is it, for whom and how is it useful? If those questions are answered, you‘re on the right path. Always strive for clarity first.  If your value proposition makes people go ―hmph?‖, you‘re doing it wrong. If they have to read a lot of text to understand your offering, you‘re doing it wrong. Yes, sufficient amount of information is crucial for conversions, but you need to draw them in with a clear, compelling value proposition first.

ADVERTISING MESSAGE

An advertising message is the general idea that an ad will convey to the target audience. Most advertising campaigns are focused on conveying an advertising message to a target audience in order to convince them to purchase a product or service, investigate the brand further, and make the audience remember the brand name. This can all be done through several types of techniques, each focused on making the target audience remember the product or service and identify it with quality or expertise. The message can be delivered through various forms of media, including television, radio, print, word of mouth, events, and so on. Several components make up the advertising message: the hook, the slogan, the appeal, and the value. Each component of the advertising message seeks to convince the target market that they should spend money on a product or service. The hook is a statement, image, video, or other type of media that grabs the audience's attention and compels them to find out more about the particular ad. This may be one of the most difficult aspects of the advertising message to come up with, as it will need to stand out above all other distractions that can keep the audience from noticing the product or services. MESSAGE TACTICS

Ad-creation stage consists of three stages:

1. Idea Generation 2. Copy-writing 3. Layout

1. Idea generation stage

1. 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. 2. Preparation: Relevant and sufficient information is required to be gathered. 3. Analysis: Once the information is collected is required to be properly organised under different heads like- technical information, consumer behaviour information, competitors' information etc.

4. Ideation: Ideation is the generation of actual ideas by trying different combinations of facts and information available. 5. Incubation: Once ideas are generated, they are kept aside to incubate, i.e., to let the subconscious mind work on them for sometime. 6. 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. 7. Evaluation: The various ideas generated in the previous steps are evaluated here. The criteria used for evaluation are described here. The idea should be:

i) Relevant to the communication objectives. ii) Original and capable of catching the attention of the viewer. iii) 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 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.

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 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 the advertising 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 ART

It refers to graphic design used in the field of advertising, and includes print design, illustration, photography, and Web and video development. In advertising art, creativity and technology blend to communicate ideas – a poster to promote a nonprofit‘s fundraising marathon, a video showcasing a college campus, a 3D rendering for a series of promotional postcards, photographs highlighting a firm‘s architectural designs, or a mobile app design for a new restaurant. Advertising art is everywhere – in the magazines we read weekly, on the websites we search daily, and on the mobile apps that grab our attention hourly.

COPY IN CONVENTIONAL MEDIA AND CYBERSPACE.

(Please refer the text book for this : advertising management by leo burnett and moriarti or advertising by G.S.Sudha)

UNIT – III

MEDIA TERMINOLOGY

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 advertiser‘s 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.

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 motion  High production cost  High prestige  Clutter  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

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 in newspaper,  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  Clutter ads  Poor reproduction quality  Ads can be placed in interest  Selective reader exposure

sections  Low attention getting  Timely or current ads capability  Can be used for coupons

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  Longer life placement  Compatible editorial  Lack of flexibility environment  Multiple readers  Quality reproduction

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  Short exposure time requires  Location specific short ads  High resolution  Poor image  Easily noticed  Local restrictions  Cost efficient medium

SETTING THE ADVERTISING OBJECTIVE

Promotion Decisions, marketing promotion, which includes advertising, can be used to address several broad objectives including: building product awareness, creating interest, providing information, stimulating demand and reinforcing the brand. To achieve one or more of these objectives, advertising is used to send a message containing information about some element of the marketer‘s offerings. For example:

 Message About Product – Details about the product play a prominent role in advertising for new and existing products. In fact, a very large percentage of product-oriented advertising includes some mention of features and benefits offered by the marketer‘s product. Advertising can be used to inform customers of changes that take place in existing products. For instance, if a beverage company has purchased the brands of another company resulting in a brand name change, an advertising message may stress ―New Name but Same Great Taste‖.  Message About Price – Companies that regularly engage in price adjustments, such as running short term sales (i.e., price markdown), can use advertising to let the market know of price reductions. Alternatively, advertising can be used to encourage customers to purchase now before a scheduled price increase takes place.  Message About Other Promotions – Advertising often works hand-in-hand with other promotional mix items. For instance, special sales promotions, such as contests, may be announced within an advertisement. Also, advertising can help salespeople gain access to new accounts if the advertising precedes the salesperson‘s attempt to gain an appointment with a prospective buyer. This may be especially effective for a company entering a new market where advertising may help reduce the uncertainty a buyer has about a new company.  Message About Distribution – Within distribution channels, advertising can help expand channel options for a marketer by making distributors aware of the marketer‘s offerings. Also, advertising can be used to let customers know locations where a product can be purchased. Advertising is a method of communication with a specified objective. The Objectives of advertising as explained before are grouped as sales objectives (measured in terms of increase in sales, increase in market share and return on investment) and communication objectives. The communication objectives of advertising can be grouped in to the following –

 Building awareness (informing).  Creating favorable attitudes (persuasion).  Maintenance of loyalty (reinforcement). Some of the broad advertising goals are explained as per the following:- 1.Launch of New Products and Services: In a saturated market, the introduction of new products and brands can give the seller a tremendous opportunity for increasing his salesFor Example Laptop Computers, a great deal of advertising has to be done over an extended period of time to make people aware of ―What the product is‖ and What it does‖ and ―How the customers would find it useful‖. 2.Expansion of the Market to Include the New Users: For example TV and Video Camera manufacturers who have been concentrating on domestic users and professionals can direct their

advertising to the government institutions and large organization for closed circuit TV networks, security systems and educational purposes. 3.Announcement of a Product Modification: For example, ―Surf Excel‖ gives the impression of an advanced detergent powder, although there may be no tangible difference between the earlier brand and the new one. 4.Announcement of a Special Offer: For example, Colgate Dental Cream campaign about 20% extra was to increase volumes through a campaign. Hotels offer special rates during off- season. 5.To Announce Location of Stockiest and Dealers: To support dealers, to encourage selling of stocks and to urge action on the part of readers, space may be taken to list the names and addresses of stockiest and dealers. 6.To Educate Customers: Advertisement of this type is ―informative‖ rather than persuasive‖. This technique can be used to show new users for a well-established product. It can also be used to educate the people about an improved product e.g. Pearl Pad odor free jars and bottles. 7.Reminder Campaigns: This type of advertising is useful for products, which have a high rate of repeat purchase, or those products, which are bought frequently e.g. blades, cigarettes, soft drinks, etc.

8.To Sought Dealer Cooperation and Motivation: A successful retail trader depends upon quick turnover so that his capital can be reused as many times as possible. Advertisers send ―display‖ material to dealers for their shops, apart from helping the retailer with local advertising. 9.To Create Brand Preference: This type of advertising does two things: (I) it creates a brand image or personality (ii) It tells the target audience why Brand X is better than Brand Y. 10.Communication Objective. Defining Advertising Objective you must proceed from: a. The Product and its virtues. b. The Competition. c. The segment of the Market aimed at all of which should be set down in the marketing objective. Step I: Define the audience. Issues like Social class, Income, Occupation, Values and ambitions, Attitudes to Product. Step II: Define the Stage of the Communication task. What is the Specific Communication task? Communication is a process of acting on the mind of your audience. ―We must create a state of mind conducive to purchase". Step III: Define Consumer Preference or Resistance. What do consumers like about Brand? What do they dislike? This is where you need research into consumer attitudes:

Step IV: Define the product promise or claim. 1. It must be meaningful and of value to consumer 2. It must be a distinctive – unique claim. 3. It must concentrate on this unique claim or the Unique Selling Proposition (USP).

"Advertising is the art of getting a Unique Selling Proposition into the heads of the most people at the lowest cost"

Step V: Define the Brand Image: What will be the brand's 'Personality?' i.e. What character or association does it evoke? After you have answered the above questions it is then that we are moving ahead where the setting of objectives are concerned. The important thing to understand about setting advertising objectives is that most advertisers do not set sensible ones. But then these same advertisers are not sure if their advertising is paying off either.

DAGMAR Model

Introduction - DAGMAR is Defining Advertising Goals for Measured Advertising Results. It is basically an approach to advertising planning and a precise method for selecting and quantifying goals and for using those goals to measure performance.

An advertising objective involves a communication task, intended to create awareness, impart information, develop attitudes or induce action. In the DAGMAR approach, the communication task is based on a specific model of the communication process, as shown below.

 Communication Process in DAGMAR Approach - The model suggests that before the acceptance of a product by an individual, there is a series of mental steps which the individual goes through. At some point of time, the individual will be unaware of the product or offer in the market. The initial communication task of the advertising activity is to increase consumer awareness of the product or offer.  The second step of the communication process is comprehension of the product or offer and involves the target audience learning something about the product or offer. What are its specific characteristics and appeals, including associatied imagery and feelings? In what way does it differ from its competitors? Whom is it supposed to benefit?  The third step is the attitude (or conviction) step and intervenes between comprenension and final action. The action phase involves some overt move on the part of the buyer such as trying a brand for the first time, visiting a showroom, or requesting information.

The whole communication process is a bit more complex. And under different circumstances, it may differ slightly, but the the basic concept revolves around what is mentioned in the paragraphs above. The DAGMAR approach emphasises the communication task of advertising. The second important concept of the approach is that the advertising goal be specific. It should be a written, measurable task involving a starting point, a defined audience, and a fixed time period.Now that the basic theory is told, how to apply in your specific situation? We are mainly traders dealing with products from other reputed and not so reputed companies and sitting here, we cannot dictate the company's advertising strategy. So, we look forward to developing a model which can reasonably applied in our case. Let's build your scenario and have the advertising brief: Illustration : - You are a dealer or distributor and want to sell products of a reputed company. You don't have to worry about the image and perception of the brand. You are just worried that customers might not want to buy from you. And, instead, buy from a competiting shop next to yours dealing with the same kinds of products. In such a case, what should be done? What should be your advertising objective? Should you have a advertising strategy? What would be the ingredients of such an advertising plan? What should be the budget? Let's discuss some of the issues related to your promotion/advertising related activity. You must first distinguish between advertising from your marketing objectives. And DAGMAR is aimed at setting your advertising goals/ plannings and not marketing goals.

 A Measurable Objective - The DAGMAR approach sounds impractical once we talk of measurements, surveys, questionnaires and all that staff. After all, who'd go for a survey! But, as the approach emphasises the importance of objectives, we must have some form of measurement to indicate the effectiveness of the advertising/ promotional campaign.  So if you are thinking of a promotional campaign, it must have an objective. And an objective that is measurable.  For a yellow page advertisement, the measurement could be the number of phone calls received before and after the ad was published or the number of referrals through yellow pages. Many of our advertisers are pleasantly surprised by orders/ offers received through phone calls, which were later found to be through advertisements in yellow pages.  Now, the question is, if they did not advertise in the yellow pages, would they have received those orders/ offers? That's another matter, though Your measurable objective must be written,

clear and unambiguous. Goals like 'Improve store image'/Increase awareness of our store' etc are too vague and do not lead to anywhere. A good starting point to work on the goal would be:  Notice the missing fullstop? We still have to construct our campaign objective.

 A Conceivable Benchmark- When we talk of measurement, its both current and future. We must, first, know where we stand now, and know in quantitative terms. The current position is your starting point which will help in establishing a goal and selecting a campaign to reach it. Getting more customer into your store might not be an optimal goal, if you already receive a large number of visitors. So, have an objective analysis of where you are and then start working on your objective.  If you know that already many customers are visiting your store, you may probably have some idea of their behaviour related to purchases. (If you don't, that's a pity). Now you know that your advertising can be aimed at converting your visitors to customers.Let's reconstruct our goal now:Increase awarenes of our store from the current level of 20% to 30%

 Well-Defined Target Audience -Perhaps, the first lession you should learn in marketing is target audience. Not everyone is going to buy your product. Not everyone needs your product, its another matter that some needs are latent and needs to be aroused. So, identify your target audience, to whom you are going to aim your ad campaign. Most likely, this is going to be your user segment as well.  As an example, if you are selling premium car accessories, you should target customers who are either stylish, sophisticated or own premium cars.

 Fixed time period - Your advertising campaign should not run for eternity, without having milestones to achieve over the future time frame. You should have a fixed time period, six months or a year, within which you should aim at attaining certain goals. There should also be some time allocated td to test the campaign, make amendments, if required to the campaign. A time should be fixed upon the arrival of which the campaign can be evaluated. So, we finally have our advertising goal as follows:

ADVERTISING BUDGET

The advertising budget of a business is typically a subset of the larger sales budget and, within that, the marketing budget. Advertising is a part of the sales and marketing effort. Money spent on advertising can also be seen as an investment in building up the business.

In order to keep the advertising budget in line with promotional and marketing goals, a business owner should start by answering several important questions:

1. Who is the target consumer? 2. What media type will be most useful in reaching the target consumer? 3. What is required to get the target consumer to purchase the product? 4. What is the relationship between advertising expenditures and the impact of advertising campaigns on product or service purchases? Advertising budget should be based on the following criteria:

- Time your ad campaign for when the customer wants to buy, not based only upon when you want to sell. - Advertise items that will be popular with customers, instead of basing this decision on what items you want to get rid of.

-Ads should be written to tout customer benefits.

- Choose your advertising medium based on the ability to reach prospective customers.

Methods companies use to set their advertising campaign budgets.

1. The Percent of Sales Method: This method works as long as the advertising campaign budget is set as a percentage of desired sales. If the budget is set to actual sales, and sales drop, you do not want to cut your advertising campaign budget, or you will get caught in a downward spiral.

2. The Task Objective Method: How much money do you need to spend to reach the specific goals you have outlined for the advertising campaign? This is especially effective when you are starting out, or if you are trying to grow rapidly. Some advertising campaign strategies call for heavy spending upfront in order to win long-term customers.

3. The Historical Method: How much did you spend to reach your sales goals in previous years or periods? You will find that by tracking your ads, you will know in advance what you need to do to accomplish your goals.

4. Share of Market - Share of Voice: This method links market share to advertising expenditure. A company with a 20% market share would spend slightly more than 20% of the total advertising dollars spent in the market for that product or service. For new companies, expenditures would be 1.5 times the desired market share until that position is attained. [So if you want 20% market share, you spend 30% of total advertising dollars in that market until you get it].

5. Competitive Parity: With competitive parity you spend in equal amounts to your competitors as a percentage of market share. This is a self-defense method of budgeting marketing and advertising expenditures.

6. The Combination Method: The best advertising campaign budget you can set will be based on some combination of all of the previous models. You want to maintain a minimum level of advertising, fulfill specific goals, maintain your market share, keep up with your competitors, and compare everything to last year.

MEDIA PLANNING AND SCHEDULING

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.

Steps in Development of Media Plan 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.

1. 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. 2. 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. 3. Continuity - It refers to the pattern of advertisements in a media schedule. Continuity alternatives are as follows: o Continuous: Strategy of running campaign evenly over a period of time.

o 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. o Discontinuous: Strategy of advertising heavily only at certain intervals, and no advertising in the interim period, as in case of seasonal products. 4. Cost - It refers to the cost of different media 5. Weight - Weight refers to total advertising required during a particular period.

3. Determining Media Strategies Media strategy is determined considering the following:

1. Media Mix - From the wide variety of media vehicles, the advertiser can employ one vehicle or a mix suitable vehicles. 2. Target Market 3. Scheduling - It shows the number of advertisements, size of advertisements, and time on which advertisements to appear. o Seasonal Pulse: Seasonal products like cold creams follows this scheduling. o 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. o Periodic Pulse: A regular pattern is followed in such scheduling, as in case of consumer durable, and non durable. o Erratic Pulse: No regular pattern is followed in such scheduling. o Start-up Pulse: Such scheduling is followed during a new campaign or a launch of a new product. o Promotional Pulse: It is for short time, only for a promotional period. 4. Reach and frequency 5. 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. 6. Flexibility - An effective media strategy requires a degree of flexibility. 7. Budget Considerations - In determining media strategy cost must be estimated and budget must be considered. 8. 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.  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 analyzed to avoid mistakes in future.

UNIT – IV

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 objectives- to 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 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 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:

 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: o 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. o 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 – V

Definition of Branding According to American Marketing Association - Brand is “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.”

According to Philip Kotler - “Brand is a name, term, sign, symbol, 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”

Branding is “a seller’s promise to deliver a specific set of features, benefits and services consistent to the buyers.”

Meaning of Branding

Branding is a process of creating a unique name and image for a product in the mind of consumer, mainly through advertising campaigns. A brand is a name, term, symbol, design or combination of these elements, used to identify a product, a family of products, or all products of an organisation.

Branding is an important component of product planning process and an important and powerful tool for marketing and selling products.

Elements of Branding Brand includes various elements like - brand names, trade names, brand marks, trade marks, and trade characters. The combination of these elements form a firm's corporate symbol or name.

 Brand Name - It is also called Product Brand. It can be a word, a group of words, letters, or numbers to represent a product or service. For example - Pepsi, iPhone 5, and etc.  Trade Name - It is also called Corporate Brand. It identifies and promotes a company or a division of a particular corporation. For example - Dell, Nike, Google, and etc.

 Brand Mark - It is a unique symbol, colouring, lettering, or other design element. It is visually recognisable, not necessary to be pronounced. For example - Apple's apple, or Coca-cola's cursive typeface.

 Trade Mark - It is a word, name, symbol, or combination of these elements. Trade mark is legally protected by government. For example - NBC colourful peacock, or McDonald's golden arches. No other organisation can use these symbols.

 Trade Characters - Animal, people, animated characters, objects, and the like that are used to advertise a product or service, that come to be associated with that product or service. For example - Keebler Elves for Keebler cookies

BRAND IMAGE AND PERSONALITY

Brand personality is the way a brand speaks and behaves. It means assigning human personality traits/characteristics to a brand so as to achieve differentiation. These characteristics signify brand behaviour through both individuals representing the brand (i.e. it‘s employees) as well as through advertising, packaging, etc. When brand image or brand identity is expressed in terms of human traits, it is called brand personality. For instance - Allen Solley brand speaks the personality and makes the individual who wears it stand apart from the crowd. Infosys represents uniqueness, value, and intellectualism.

Brand personality is nothing but personification of brand. A brand is expressed either as a personality who embodies these personality traits (For instance - Shahrukh Khan and Airtel, John Abraham and Castrol) or distinct personality traits (For instance - Dove as honest, feminist and optimist; Hewlett Packard brand represents accomplishment, competency and influence). Brand personality is the result of all the consumer‘s experiences with the brand. It is unique and long lasting.

Brand personality must be differentiated from brand image, in sense that, while brand image denote the tangible (physical and functional) benefits and attributes of a brand, brand personality indicates emotional associations of the brand. If brand image is comprehensive brand according to consumers‘ opinion, brand personality is that aspect of comprehensive brand which generates it‘s emotional character and associations in consumers‘ mind.

Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look and feel of any communication or marketing activity by the brand. It helps in gaining thorough knowledge

of customers feelings about the brand. Brand personality differentiates among brands specifically when they are alike in many attributes. For instance - Sony versus Panasonic. Brand personality is used to make the brand strategy lively, i.e, to implement brand strategy. Brand personality indicates the kind of relationship a customer has with the brand. It is a means by which a customer communicates his own identity.

Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures immediate awareness, acceptability and optimism towards the brand. This will influence consumers‘ purchase decision and also create brand loyalty. For instance - Bollywood actress Priyanka Chopra is for J.Hampstead, international line of premium shirts.

Brand personality not only includes the personality features/characteristics, but also the demographic features like age, gender or class and psychographic features. Personality traits are what the brand exists for.

BRAND AND PRODUCT

There are several fundamental differences between a brand and a product (or a service). If you can make the distinction between the following differences, you‘re on your way to understanding brands vs. products. Of course, it‘s important to understand that popular products can become brands unto themselves and brand names can be used to refer to products. While it can get a bit confusing, the fundamental differences between products and brands identified below should help you clear up some of that confusion.

Companies Make Products and Consumers Make Brands - A product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella. For example, Toyota‘s product is cars. Its umbrella brand is Toyota and each product has its own more specific brand name to distinguish the various Toyota-manufactured product lines from one another. Without a product, there is no need for a brand.

Products Can Be Copied and Replaced but Brands Are Unique- A product can be copied by competitors at anytime. When Amazon launched the Kindle e-reader device, it didn‘t take long for competitors to come out with their own branded versions of an e-reader product. However, the brand associated with each e-reader device offers unique value based on the perceptions, expectations, and emotions that consumers develop for those brands through previous experiences with them.

Similarly, a product can be replaced with a competitor‘s product if consumers believe the two products offer the same features and benefits. Products with low emotional involvement are typically easily replaced. For example, do you really care what brand of milk you buy or do you primarily just care that the milk you buy is fresh and includes the fat percentage that you want?

Products Can Become Obsolete but Brands Can Be Timeless - Remember VHS players? With the introduction of DVD players and more recently DVR devices and streaming video services, VHS players have become obsolete. The same thing happened to 8-track tapes, vinyl records, cassettes, and CDs. Today, most people buy their music in digital format and listen to it on their iPods. The Elvis Presley brand is timeless, but no one buys Elvis music on cassettes anymore.

Products Are Instantly Meaningful but Brands Become Meaningful over Time.

When you launch a new product, it‘s easy to make that product instantly meaningful and useful to consumers because it serves a specific function for them. However, a brand is meaningless until consumers have a chance to experience it, build trust with it, and believe in it. That‘s why the 3 steps to brand building include consistency, persistence, and restraint. It takes time and effort to convince consumers to believe in your brand. Consider Google as an example. When Google first hit the Internet scene it offered a simple product — a search engine. That product was instantly meaningful to consumers because it helped them find information online quickly. However, the Google brand didn‘t become meaningful to consumers until people had a chance to use the Google search engine product and see for themselves that it really was a better search engine. Through those experiences, consumers began to trust that the Google brand could deliver faster and better information online. Today, when Google launches a new product (like Google+ recently), people are quick to try those products because they trust the Google brand.

BRAND PLANNING

A well-written Brand Plan helps to align an organization around the direction, the choices and the tactics that need implementing for a brand to achieve their goals. The Brand Plan unites functions such as marketing, sales, product development outlining what each group needs to do for the brand to be successful, while setting goals that operations and finance need to support. The Brand Plan gains approval from senior management around spending options, strategic choices and sets forth the tactics that will be implemented. It holds senior management accountable to the plan. The Brand Plan helps frame the execution for internal stakeholders and for the various agencies who will implement programs within the plan. Execution is an expression of the strategy, and the plan must hold agencies accountable to delivering work that is on strategy. And lastly, the Brand Plan helps the Brand Manager who wrote it, stay focused to deliver what they said they would. It helps them to refer back to the strategy and the intention to ensure the Brand Manager “stays on strategy” the entire year.

BRAND VISION AND VISIONING PROCESS

Creating a vision for the brand is the most important primary step in the process. Brand Vision can be defined as the long term strategic position that the brand will take in the market as

well as in the consumer mind-space. Brand vision offers a strategic intent which will act as a long term goal for the brand.

Creating brand vision is a strategic process which requires the involvement of top management. The vision dictates the future course of action for the brand with regard to its growth and future course of action.

Most of the time marketers are faced with critical decisions regarding the future growth path for the brand. There is a dilemma whether the brand should be extended to cater to new opportunities in the market or to be focused on the current category. Some times marketers tend to extend the brand too much that the entire brand equity gets diluted. Without the guidance of a clear vision, brands tend to lose focus and extend into unchartered unrelated categories. Lack of vision also creates the problem of discontinuity for the brand‘s strategies. There are chances that the brand compromises its equity for the sake of short-term growth unless guided by a long-term vision.

Having a brand vision will help marketers make decisions regarding the growth of the brand. The vision also helps marketers to tap into opportunities which are in line with the vision and reject others that contradict the vision. Vision helps the brand to create a brand charter which will act as a rule book for the managers. It will also help the managers to shape the brand strategies during the time of crisis.

Brand vision also helps to develop consistency with regard to brand communication. The messages derived from the brand vision will be consistent across all media. Even when the advertising & creative agencies change, the brand message will remain constant. In the absence of brand vision, the communication messages will not be connected by a common thread.

Brand vision also motivates the employees to perform better. Employees feel motivated and inspired when they are aware of the brand vision. More importantly, employees should feel that they are contributing to the realization of that vision.

Typically brand vision statements should be simple and easy to remember. The golden rule is that every employee should be able to remember the brand vision especially in the case of a corporate brand or service brand.

While drafting the brand vision, the marketers has to keep the following facts into mind

Think Big - While drafting a brand vision, marketers need to have big plans for the brand. The vision should not restrict to the category or even the industry. Instead the brand vision should aim at addressing some critical issues faced by the consumer. The vision should inspire both the consumers and employees alike.

Encourage growth- Brand vision should encourage the growth of the brand beyond product categories. The marketers should be looking at a 10 year time horizon while drafting the brand vision. The marketers should be asking the following questions while drafting the vision.

a. In 10 years, what will be the position of the brand in the industry/category?

b. What is the core need that this brand is going to satisfy? c. Is that need sustainable over a period of time? d. What needs do this brand satisfy in future? e. Will the vision of the brand appeal to the consumers? f. Does the brand vision excite the employees? g. Does the vision encourage growth and pursuit of opportunities? h. Is the vision easy to understand and communicate?

Synergy with corporate strategy - It is important for the brand to maintain synergy with the corporate strategy. That is why the top management should play a key role to in drafting the vision. When the brand‘s vision is aligned with corporate vision, a sustained investment and support can be ensured for the brand‘s growth.

Customer Focus - Brand visions should be created with customer as the focal point. Many a time brands focus too much on the product rather than the customer need. Having a strong focus on customer will help brands to create visions which are practical. Customers will also be able to relate to the brand vision since the vision is created with the customer in mind.

Periodic Revision - Although brand vision is crafted for a long term, it is important for the marketers to revise the vision from time to time. Brands operate in a dynamic environment. There are chances that the brand‘s vision may become irrelevant for the consumers in the changed environment. Hence visions need to be revised in line with the changing consumer environment.

Branding Strategies

There are various branding strategies on which marketing organisations rely to meet sales and marketing objectives. Some of these strategies are as following :-

 Brand Extension - According to this strategy, an existing brand name is used to promote a new or an improved product in an organisation's product line. Marketing organisations uses this strategy to minimise the cost of launching a new product and the risk of failure of new product. There is risk of brand diluting if a product line is over extended.  - According to this strategy, some organisations allow other organisations to use their brand name, trade name, or trade character. Such authorisation is a legal licensing agreement for which the licensing organisation receives royalty in return for the authorisation. Organisations follow this strategy to increase revenue sources, enhance organisation image, and sell more of their core products.  Mixed Branding - This strategy is used by some manufacturers and retailers to sell products. A manufacturer of a national brand can make a product for sale under another company's brand. Like this a business can maintain brand loyalty through its national brand and increase its product mix through private brands. It can increase its profits by selling private brands without affecting the reputation and sales of its national brand.

 Co-Branding - According to this strategy one or more brands are combined in the manufacture of a product or in the delivery of a service to capitalise on other companies' products and services to reach new customers and increase sales for both companies' brands

BRAND AUDIT

BRAND APPRAISAL

Brand appraisals are most commonly conducted as a discounted cash flow (DCF) analysis. This puts a capital value on the expected future stream of revenues attributable to the subject Brand.

The key elements in a brand appraisal are:

Forecast revenues by segment Brand strength analysis Forecast profits by segment Brand contribution analysis Long term market growth rates Brand risk analysis Value driver analysis These elements are combined in a financial modelling process to provide a point-in-time valuation opinion. It also creates a framework for testing "what-if?" scenarios to answer key brand strategy questions. This leads on to dashboard development, resource allocation and brand value maximisation.

UNIT – VI

BRAND POSITIONING Brand positioning is the result of consumer‘s perception about the brand relative to the competing brands. Brand positioning is a part of brand identity and value composition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands. According to Kotler positioning is the act of designing the company‘s offer so that it occupies a distinct and valued place in the mind of the target customers.

BRAND EQUITY

Brand vary in the amount of power and value they have in the marketplace. Some brands are largely unknown to most buyers. Others brands, have high degree of consumer . Still others enjoy brand preference – buyers select them over the others. Finally, some brands command a high degree of brand loyalty. Brand equity is the process of brand building.

Albar defines brand equity as a set of assets associated with a brand and which add to the value provided by the product/service to its customers. A brand equity is in effect the aggregate of potential customer‘s beliefs that it will deliver on its promise. Thus the term brand equity refers to the value inherent in a well known brand name.

A powerful brand has high brand equity. Brands have higher brand equity to the extent that they have higher brand loyalty, name awareness, perceived quality, strong brand association, and other assets such as patents, trademarks and channel relationships. A brand with strong brand equity is a valuable asset. In fact it can even be bought or sold a price. The world‘s top brands include Coca-Cola, Kodak, Sony and Mercedes-Benz. The best example fo brand equity is Lifebuoy which has consistently followed a strategy of a ‗Soap for Health‘ and similarly as ‗Herbal Soap‘. ‗Brand heritage‘ means brands which have a glorious past and a carefully nurtured image build over a period of time.

High brand equity provides a company with many competitive advantage.

 A powerful brand enjoys high level of consumer brand awareness and loyalty.  Consumers accept and willing to pay more fore the powerful brand.  The company will incur lower marketing cost relative to revenues.  The company has more leverage in bargaining with resellers, and  The brand name carries high credibility, the company can more easily launch brand extensions.  A powerful brand offers the company some defense against fierce price competition. Measuring the actual equity of band name is difficult. Because it is so hard to measure, companies usually do not list brand equity on their balance sheets. Still, they pay handsomely for it. According to one estimate, the brand equity of Coca-Cola is $36 billion, Kodak film $10 billion.

To build brand equity, the manager has to create and enhance brand awareness, brand loyality and perceived quality of brand and brand associations (i.e. associating with certain tangible and

intangible attributes). It should be understood that a brand is an intellectual property and thence patents form a brand asset. This requires continuous R&D investment, skillful advertising and excellent trade and consumer service. Some companies appoint ―brand equity managers‖ to guard their brands‘ images, association and quality.

Some analysis see brands as the major enduring asset of company, or lasting the company‘s specific products and facilities. Yet, behind every powerful brand stands a set of loyal customer. Therefore, the basic gdgdsfg underlying brand equity is customer equity. This suggests that marketing strategy should focus on extending loyal customer lifetime value, with brand management serving as a major marketing tool.

BRAND EXTENSION DECISION

A brand-extensions strategy is any effort to use a successful brand name to launch product modification or new products. Brand extension also covers the introduction of new package sizes, flavours and models.

Brand extension saves the manufacturer the high cost of promoting new names and creates instant brand recognition of the new product. At the same time, if the new product fails to satisfy, it might hurt consumer‘s attitude toward the other products carrying the same brand name.

MULTI-BRAND DECISION

In multi-brand strategy, the seller develops two or more brands in the same product category. Manufacturer adopt multi-brand strategies for several reasons:

Manufacturers can gain more shelf space, thus increasing the retailer‘s dependence on their brands.

A few consumers are to loyal to a band that they will not try another. The only way to capture the ‗brand switchers‘ is to offer several brands.

Creating new brands develops excitements and efficiency within the manufacturer‘s organisation.

A multi-brand strategy positions the different benefits and appeals and each brand can attract a separate following. For example, Palmolive Shaving Cream is offered in Lime, Lavender and Antiseptic classes.

Tow or more brands commonly capture more sales and profits because they cater to more segments.

It helps to sell new product variations in terms of colour, flavour, taste etc. For example, Campa- Orange and Campa-Cola.

In deciding whether to introduce another brand, the manufacturer should consider such questions as:

Can a unique story be built for the new brand?

Will the unique story be believable?

How much will the new brand connibalise the manufacturer‘s other brands versus competitor‘s brands?

Will the cost of product development and promotion be covered by the sales of the new brand?

A major limitation in introducing a number of multi-brand entries is that each may obtain only a small share of the market and none may be particularly profitable. These companies should weed out the weaker brands and establish tighter screening procedures for choosing new brands. Ideally, a company‘s brand should cannibalize the competitor‘s brands and not each other.

BRAND RE-POSITIONING DECISION

However, well a brand is initially positioned in a market, the company may have to reposition it later. A competitor may have launched a brand next to the company‘s brand and cut into its market share. Or customer preferences may have shifted, leaving the company‘s brand with less demand.

Management must weigh two factors in making its choice of re-positioning. The first is the cost of shifting the brand to the new segment. The cost includes changing the product‘s qualities, packaging, advertising and so on. In general, the repositioning cost rises with the repositioning distances. The more radically the brand image has to be modified, the greater the required investment. The other factor is the revenue that would be earned by the brand in the new position. The revenue depends upon the number of consumers in the preference segment, their average purchase rate, the number and strength of competitors in that segment and the price charged by brands in that segment.

Marketing research firms have elaborate name – research procedures including association tests (what images come to mind?), learning tests (how easily is the name pronounced?), memory tests (how well is the name remembered?) and preference tests (which names are preferred?).

Horlicks was relaunched as a New Horlicks in an attractive new jar. The new Horlicks claimed more nourishment through additional protein and calcium, eight essential vitamins and iron nutrients. Now ‗Junior Horlicks‘ has been introduced targeting youngsters.

Lifebuoy is probably the oldest toiled soap available today. From its small beginnings in England in 1894, Lifebuoy has come a long way to become one of the most popular and larges selling soaps in the world.

When Lifebuoy was introduced in the Indian market 100 years ago, its positioning was clear. Lifebuoy was the soap that would destroy germs and keep the body healthy. Though the properties were clear, the brand found the going tough in rural markets. Therefore Hindustan Lever Limited decided to launch Lifebuoy as soap for hand wash in 1900. The brand began to develop and at this stage, Lifebuoy was repositioned as a bath soap. ―Where there is Lifebuoy, there is health‖ became a very popular slogan. In 1964, the brand was relaunched with a slight change in its shape and wrapper

design backed by powerful advertisement and intensification in rural markets. With intensification of competition in 1970, Hindustan Lever Limited launched ‗Lifebuoy a Personal‘ – a perfumed, pink- coloured, 75 gm soap. But the brand suffered because it did not carry the USP‘s health and value for money. In 1980, the Hindustan Lever Limited launched ‗Lifebuoy Plus‘ with a new perfume. By this time, Liquid Lifebuoy also stages its entry to strengthen urban market. In the rural markets, Lifebuoy continued its . Even today 60 per cent of Lifebuoy sales are from rural areas. The brand remains the larges selling brand and a Cash Cow for Hindustan Lever Limited.