Advertising and Sales Promotion
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PONDICHERRY UNIVERSITY (A Central University) DIRECTORATE OF DISTANCE EDUCATION Advertising and Sales Promotion Paper Code: MBMM 4003 MBA - MARKETING IV - Semester Author Sk. Md. Nizamuddin Asst. Professor, Directorate of Distance Education, Pondicherry University All Rights Reserved For Private Circulation Only ISBN 978-93-81932-12-4 TABLE OF CONTENTS UNIT LESSON TITLE PAGE NO. 1.1 Lesson 1.1 – Advertising - An Introduction 3 1.2 Lesson 1.2 – Advertising Planning and Organizing 23 Framework I 1.3 Lesson 1.3 – Advertising and Advertising Agency Interface 29 1.4 Lesson 1.4 – Strategic Advertising Decision 38 1.5 Lesson 1.5 – Strategic Media Planning 50 2.1 Lesson 2.1 – Copy Decision 59 II 2.2 Lesson 2.2 – Creativity in Advertising 71 2.3 Lesson 2.3 – Copy Testing 83 3.1 Lesson 3.1 – Media Decision 97 III 3.2 Lesson 3.2 – Internet as an advertising medium 119 3.3 Lesson 3.3 – Permission Marketing 128 4.1 Lesson 4.1 – Measuring Advertising Effectiveness 137 4.2 Lesson 4.2 – Advertising in International market place 153 IV 4.3 Lesson 4.3 - Advertising and principles of Integrated 165 Marketing Communication and image building 5.1 Lesson 5.1 – Sales Promotion 177 5.2 Lesson 5.2 - Sales Promotion Strategies and Practices 194 V 5.3 Lesson 5.3 – Brand Equity 203 5.4 Lesson 5.4 – Linking Advertising and Sales Promotion 216 MBA (Marketing) - IV Semester Paper Code: MBMM 4003 Paper - XVIII Advertising & Sales Promotion Unit - I Advertising - an introduction- Origin and Development - Definition and Classification - Planning Framework - Organising Framework - the Advertiser and the Advertising Agency interface - Strategic Advertising Decisions - Setting Advertising Objectives - The Budget Decision - Preparing the Product and Media Brief Unit - II Copy Decisions - Visualization of Ad Layout - Elements of Ad Copy and Creation Principles of verbal versus visual thinkers - Styles and Stages in advertising copy creation- Copy (Pre-) Testing methods and measurements. Unit - III Media Decisions - Media Planning and Selection - Concepts of Reach, Frequency, Continuity, and Selectivity - Measures of Media Cost Efficiency – Media (Readership / Viewership) Research - The Internet as an Advertising Medium - Tracking Website visits, page views, hits, and click-stream analysis - permission marketing and privacy - ethical concerns. Unit - IV Measuring Advertising Effectiveness - Control of Advertising by practitioners, media and the market - Advertising in the International Market-place - Advertising and Principles of Integrated Marketing Communication and Image Building. Unit - V Sales Promotion - Rationale, Types - Consumer and Trade Promotions - Sales 1 Promotion Strategies and Practices, Cross Promotions, Surrogate Selling, Bait and Switch advertising issues. Brand Equity - Concepts and Criteria, Building, Measuring and Managing Brand Equity, Linking Advertising and sales promotion to achieve ‘brand-standing’ - Leveraging Brand Values for business and non-business contexts. References 1. Kazmi & Batra, ADVERTISING & SALES PROMOTION,Excel Books, 2008 2. Aaker, Batra & Myers, ADVERTISING MANAGEMENT; Prentice Hall, India. 2008 3. Kruti Shah & Alan D’souza, ADVERTISING & PROMOTION, Tata McGraw-Hill New delhi, 2009 4. Kelley & Jugenheimer,ADVERTISING MEDIA PLANNING A BRAND MANAGEMENT APPROACH, Prentice Hall, India. 2008 5. J. T Russel & Ronald Lane, KLEPPNER’S ADVERTISING PROCEDURE; Prentice Hall. 6. June Valladares, THE CRAFT OF COPYWRITING, Sage Publications. 7. J V Vilanilam & A K Varghese, ADVERTISING BASICS! A RESOURCE GUIDE FOR BEGINNERS: RESPONSE BOOKS, Sage Publications. 8. Subroto Sengupta, BRAND POSITIONING; Tata McGraw Hill. New Delhi. 9. Wells, Burnett &Moriarty, ADVERTISING PRINCIPLES AND PRACTICES, Prentice- Hall 10. Wright, Winter & Zeigler, ADVERTISING, Tata McGraw Hill. New Delhi 2 UNIT – I Unit Structure Lesson 1.1 – Advertising - An Introduction Lesson 1.2 – Advertising Planning and Organizing Framework Lesson 1.3 – Advertising and Advertising Agency Interface Lesson 1.4 – Strategic Advertising Decision Lesson 1.5 – Strategic Media Planning Lesson- 1.1 - Advertisement - An Introduction Learning Objectives After reading this lesson, you should be able to: ➢ Understand the concept of advertising. ➢ Learn the meaning and definition of advertising ➢ Examine the origin and development of advertising ➢ Understand about contemporary advertising ➢ Discuss various types of advertising Introduction Advertising is a powerful communication force, highly visible, and one of the most important tools of marketing communications that helps to sell products, services, ideas and images, etc. Many believe that advertising reflects the needs of the times. One may like it or not but advertisements are everywhere. Advertisements are seen in newspapers, magazines, on television and internet and are heard on radio. The average consumer is exposed to a very large number of advertisements every day, particularly the urban and semi-urban population. 3 It seems almost impossible to remain totally neutral and not take any notice of modern day advertising. The most visible part of the advertising process is the advertisements that we see, read, or hear and praise or criticize. Many suitable adjectives are used to describe advertising, depending on how an individual is reaching, such as great, dynamic, alluring, fascinating, annoying, boring, intrusive, irritating, offensive, etc. Advertising is an indicator of the growth, betterment and perfection of civilization. It is part of our social, cultural and business environment. It is not at all surprising that advertising is one of the most closely scrutinized of all business institutions. In today’s environment, not only are advertisers closely examined by the target audience for whom that advertisement are meant, but by society in general. Marketing-Mix and Promotion-Mix The marketing mix is the combination of elements necessary to the planning and execution of the total marketing operation. The ‘Four Ps’ concept of the marketing mix, developed by Philip Kotler, and widely adopted by marketing teachers, creates four division of the mix, namely, product,, price, promotion and place. Advertising comes under promotion. Under promotion mix there are several components like advertising, personal selling, sales promotion, publicity, direct marketing etc. Advertising is one of the components of promotion as shown in fig below. Marketing Mix Product Price Promotion Place Advertising Personal Sales Publicity Direct Selling Promotion Marketing Origin of Advertising It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest that the Romans practiced advertising; but the earliest indication of its 4 use in this country dates back to the Middle Ages, when the use of the surname indicated a man’s occupation. The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services. If there were many competitors, he relied upon his own personal magnetism to attract attention to his merchandise. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, the seller was doing the complete promotion job himself. The invention of hand press increased the potentialities of advertising. By Shakespeare’s times, posters had made their appearance, and assumed the function of fostering demand for existing products. Another important event was the emergence of the pamphlet as an advertising medium. The early examples of these pamphlets disclose their sponsorship by companies want to generate goodwill for their activities. The low cost of posters and handbills encouraged a number of publishers to experiment with other methods. History of Advertising The recorded history of advertising goes back to about 5000 years including the modern satellite and Internet age. Our knowledge of advertising in ancient times is quite fragmented. Nevertheless, it seems that the urge to advertise is a part of human nature since ancient times. The diggings by archaeologists, in countries rimming the Mediterranean sea, has unearthed a Babylonian Clay tablet of about 3000BC, Bearing inscription for an ointment dealer, a scribe and a shoe mark, Romans and their predecessor knew that “it pays to advertise”. Papyri found in the ruins of Thebes (Egypt) show announcements offering rewards for the return of runaway slaves about 3000 BC. Before the invention of printing from movable type (about AD 1438) by Johann Gutenberg there were three forms of advertising. Trademarks: Craftsman, in early times, wanted to be identified for their skills and placed their individual marks on goods that they crafted. This led to reputation building of particular artisans by word of mouth. Buyers learnt to look for distinctive marks just as we look today for brands names and trademarks on products. Signs: Phoenicians, and other traders, painted commercial messages on prominent tocks along trade routes that they frequented. These messages highly praised the products that were for sale. This is an example of ancient outdoor advertising, Archaeologists have revealed, from excavations at Pompeii, that little shops had inscriptions on walls near the 5 entrance to inform the passers-by whether the shop sold pottery, wine, bread, or any other goods. Town Criers: This system of town criers was perhaps, present in all developed civilizations of the ancient world. In Greece, during the golden age, town criers were paid to go around town spreading