Ads media planning ppt.pptx for students

Advertising media planning course material

1. Advertising media planning and management

2. Chapter one 1.1. The Concept of advertising media planning Media planning consists of the series of decisions made to answer the question , “What are the best means of delivering advertisements to prospective purchasers of my brand or service?” A media planner attempts to answer the following specific questions: How many prospects (for purchasing a given brand of product) do I need or Can I afford to reach? In which media should I place ads? How many times a month should prospects see each ad?

3. During which months should ads appear? Where should the ads appear? In which markets and regions? How much money should be spent in each medium? When all the questions have been asked and the decisions made, the recommendations and rationales are organized into a presentation (usually PowerPoint) and a written document called a media plan. The plan, when approved by the advertiser , becomes a blueprint for the selection and use of media. Once the advertiser has approved the plan, it also serves as a guide for actually purchasing the media.

4. Media planning should be thought of as a process or a series of decisions that provides the best possible answers to a set of problems. A planner might find that a recommended solution to a given marketing problem does not make sense when other factors are considered. Finding the best solutions to a set of marketing problems represents the main task of planners. That is what makes media planning such an intellectually challenging activity .

5. 1.2. Advertising media planning objective The Advertising Plan is similar, in some ways, to a marketing plan that guides the development of a campaign. The focus of the Media Planning Concepts Marketing plans is on sales objectives, whereas in the advertising plans the focus is on communication objectives. Therefore , the task of an advertisement is to create the most effective and distinctive communication in the marketplace.

6. These specific tasks of media can be expressed in terms of three brand objectives: Brand Growth (e.g. when a new brand is launched) Brand Share Maintenance (of an established brand) Protection from in roads (wherein one brand tries to stay off competition)

7. In light of these three brand objectives you will appreciate that the `Role of Advertising' are specific and they can be of the following types: Vehicle of Direct Impact : The first role of advertising can be that it aims to create a response. A Tool for Seeking Information: Such advertisements aim to evoke A link Between Communication and Consumer Needs: There are advertisements, which relate the consumer's needs and wants to the communications of the advertisement, thereby influencing the behavior of the target audiences.

8. A Tool that Aims to Modify Attitudes: These are the advertisements which aims to change the consumers' perceptions of a products attributes. A vehicle to reinforce the Attitudes: There are advertisements which aims to reinforce specific attitudes of the consumer in relation to the products.

9. 1.3 Setting communication objective Once you have determined whom you want to reach, where they are, and when you need to reach them, you must determine how much pressure you need to put behind your message. This is where media communication objectives come into play. Setting media communication goals can be a challenge. It’s like someone with a weakness for sweets going into an ice cream shop: you want it all, but you have to make some tough choices.

10. Media communication objectives are often reduced to the Big Four dimensions. The first dimension is reach: which potential customers do you want to reach? The second dimension is frequency: how often do you want to reach them? The third dimension is continuity: how many days, weeks, months, and patterns of advertising do you need at the appropriate reach and frequency levels?

11. Another consideration is impact: how much weight do you need to accomplish the task? Impact can also relate to tactical items such as creative size or type of activity that gains attention. Impact is a measure of density.

12. 1.4 Media strategy Media strategy is the overall game plan which is geared towards strengthening the communication while countering any move the competition may have. Media strategy therefore defines and provides rationale for the recommended media, spelling out the specific role each one plays either in complementing or supplementing the others .

13. Four basic elements of Media strategy statement are: Media Mix Usage of Media Geographic Allocation Scheduling Strategy Let us examine what each of these are: Media Mix For each target market, a market-media match exercise needs to be done and the role each medium would play in contributing to the achievement of media objectives is described. Summary explanation of the approximate allocation by medium is also provided.

14. Usage of Media Each medium lends itself for use in various ways, by way of commercial forms in which it is available. How each is to be used in terms of spot buying vs. sponsorship on television, time/space units general interest vs. special interest publications, prime time/space vs. non-prime time/space, color vs. black & white, main issue vs. supplements and so on – are decisions to be taken so as to extract the best mileage out of the selected media .

15. Geographic Allocation In view of the market priorities and the differential media objectives set for such market, how the media mix is to be used in order to allocate the advertising effort is explained in strategic terms . Scheduling Strategy The extent and spacing of the media activity in a time frame is expostulated. Rationales for controlling the continuity of the exposures are also provided. These are dependent upon various factors drawn from various background analysis done earlier on seasonality, competitive advertising, budgetary considerations, brand purchase cycle and so on ..

16. The Media Plan consists of three broad sections: Media vehicle selection Media Plan and cost details Media activity schedule

17. Media Vehicle Selection Having obtained a somewhat large listing of various TV programmes and publications, you would then need to examine how well you could use these vehicles. Since a higher level of average exposure can be desired from a combination of two vehicles which have low levels of audience duplication, this factor has to be kept in mind. Having done an optimization exercise which is maximizing returns (in terms of Reach/Frequency) on investments (in terms of media costs), a qualitative judgment is necessary to see whether the editorial environment is compatible with the advertising message, or evaluating a vehicle's audience profile in terms of the brand personality.

18. Media Plan and Cost Details Exact number of Television spots to be bought with each selected programme , in what duration, at what cost over what network for precisely which market and similarly the exact number of press insertions to be bought with each selected publication, in what size, at what cost, for which market - is indicated in great detail followed by Media Cost Summaries. The latter provide a management summary of the plan outlay by time period, market, medium etc .

19. Media Activity Schedule The calendar of media activity is provided on an actual visual diagram where in for each market, what precisely is planned through the campaign is provided at one glance.

20. 1.5 Media concentration and media selection The following factors must be considered for media selection. Media Environment In-fact Media environment is a complex combination of the following: Nature of medium - Nature of medium in terms of its being informative, (Quiz based or science programmes ) or entertaining (Film based programmes ). Context of use - i.e. where is the media used. Way of using it - refers to how the media is used for e.g. Radio is essentially used as a background medium at home, with several other activities being discharged alongside .

21. 2. Physical Characteristics of the media Duration: It refers to the shelf life of the medium, which varies. A newspaper has a short span as compared to a magazines. Scope for extended arguments: It essentially depends on the nature and contents of the advertisement. Print media have greater scope than electronic. Color: It implies the availability and applicability of color and color reproduction. Magazines and television provides greater opportunity in this regard. Movement: It essentially means dynamism. TV is a dynamic medium while Press though been a static medium. It can at times give the dynamic feel.

22. Reproduction quality: Some publications, for example, have a high quality printing. In certain cases, the where in the market place you have to depend on the illustrations and representations of the product, rather than the actual product, in such situations the realism inherent in the use of color and quality of reproduction becomes important? Scope for Gaining Attention: TV displays a greater scope for attracting attention because it is a medium which combines sight, sound and movement demonstrative audio visual, color abilities that provide an impactful. The print media too can resort to innovative ways to captivate the audience.

23. Media Effectiveness and its Importance Once an ad has been produced, the advertiser must decide whether to issue it for frequent or not so frequent exposures in national or in limited geographical areas. Media Effectiveness is generally determined on the basis of exposure. The simplest Media Planning Concepts definition of exposure is: “the open eyes, facing vehicle ". Obviously , this does not mean the person has to be paying much attention to the vehicle (Media Vehicle).

24. Media Choices Besides Reach, Frequency and coverage, Media choices are made on the basis of other variables as well. Selectivity: It is of two kinds. First is the Geographic Selectivity , which refer to the ability of a medium or a vehicle to reach a specific geographic area such as a city or region (for example a local newspaper can only take your message to the area where it gets sold. The second is the Class Selectivity , which refers to the ability of a medium/vehicle to reach specific people who have certain common traits. Magazines, for example, are class selective, because of their specialized editorial contents.

25. Flexibility: refers to the amount of lend time, a medium/vehicle requires before the ad will be run. Most magazines have a longer (sometimes even two months) lend time. In other words , the ad must be in the hands of the magazine as much as two months before publication. Local Radio and local Newspapers in contrast have a great deal of flexibility.

26. Positioning Refers to the way in which a product is perceived by the consumers in the market place. It is a deliberate attempt at creating a perceptions for the Brand in the prospects mind, so that it stands apart from the competing brands. It also helps in bringing the product closer to the consumer’s needs . While selecting media vehicles you must do a sort of matchmaking between the brand positioning and the positioning of the media vehicle.

27. Consumer Buying System and Media Consumer buying behavior and the Media are very much linked to each other. Media influences the consumer buying behavior in the following ways: What is the minimum level of exposure required to generate a response? What is the maximum level of exposure required so that there is no overkill? How many people should get the minimum exposures in a given period? How is it distributed in a campaign period? These questions help to evaluate the consumer buying system , and, therefore, should be kept in mind while evaluating media options.

28. 1.6. Media scheduling method Media scheduling decisions are the decisions about the timing, continuity and size of the ads. We have to see when to advertise, for how long, and for what time period. We have to see the size and placement of our ad.

29. Methods for Scheduling Media: Continuous - advertising runs steadily and varies little over the campaign period. Fighting - alternates periods of advertising periods of no advertising. Pulsing - mixes continuous and fighting strategies by using a low level of advertising all year combined with heavy advertising during peak selling period.

30. Once the media planning and selection is accomplished to the satisfaction of both advertisers and agencies, the attention is diverted to the task of deciding the media scheduling. It concerns answering such questions as how many of each media vehicles space and time units be bought? Over what and time units, this will be bought? Over what period, should such buying be? Do we want a steady schedule or do we want a `pulsed' campaign, concentrating heavily in the beginning and later slowing down?

31. Thus , to an advertiser , the following six types of schedules are available . Steady pulse: Steady pulse is the easiest types of schedules to prepare. For instance , one ad per week for weeks or one ad per month. Seasonal Pulse: Seasonal nature of products dictate the use of seasonal pulse in advertising. Examples include ceiling fans; air- conditioners etc., in the months of winter and summer respectively. Period Pulse: Scheduling of media at regular intervals but not related to the, seasons of the year, is called the periodic pulse. Examples may include media scheduling of consumer durables goods.

32. Erratic Pulse: When advertising is spaced at irregular intervals, it is called erratic pulse. It is quite likely that the advertiser is Media Planning Concepts trying to cause changes in typical purchase cycles. For instance, ceiling fans, soft-drinks etc. Startup Pulse: It is quite common to see a heavily concentrated media scheduling to open either a new product or a new campaign. This is called as startup pulse.

33. Analyzing Reach, Frequency and Continuity Any thoughts on media scheduling will be dictated by a careful analysis of three factors of media. They are Reach, Frequency and Continuity (RFC). Several researches have been conducted on analyzing the data pertaining to RFC . Given below are some major findings which media planners would do well to remember Continuity assumes importance because advertising is often forgotten if not reinforced by continual exposure.

34. Repeated exposures are needed to impress a message on the memories of a large proportion of consumers. As number of exposure increases, the number of persons who remember it increase. An intensive `burst' of advertising is more likely to cause a large number of people to remember it, In many cases reaching as many people as possible may be as important as the task of reaching a fewer number of people but more frequently. It tests, therefore, the knowledge, perception and skills of any media planner.

35. Having gone through the complex process and components of Media Planning, advertisers and media strategists may evolve the following three types of plans . The National Media plan The Key Market plan and The Skim plan. National Plan: Largely applicable to marketers of national brands, the national plan seeks to reach the masses. Key Market Plan: In the case of national brands and regional brands, media strategists seek to cover effectively the key markets rather than spread over the entire market thin. This plan is most needed at the introduction stages of the product life - cycle (PLC).

36. Skim Plan: As most key market media plans concentrate on geographic areas, skim plans aim at a market from a demographic or psychographic perspective. In these plans, the markets first aim to skim off the cream of a segment and then sell it in general to the other markets. For instance, the first attempts of the marketers may be targeted at well-to-do segments. Later marketers may scale down to serve lower markets. Skim- media plans may also be prepared to target on customers with specific interests and enthusiasm.

37. Evaluating media vehicle characteristics A media vehicle refers to a specific method (like digital, radio, newspaper etc.) of media used by a business to deliver advertising messages to its target audience. The first step is to pick a suitable media class, that is, a general category of media, like radio, television, the Internet, newspapers or magazines. Let us first develop familiarity with the some of the major terms we generally use to describe the characteristics of various advertising media, which are as follows :  

38. Television The specific characteristics of Television are: It combination of sight, sound & motion and therefore it is impactful. It is a highly intrusive medium. Rapid growth of this medium provides immediate broad reach across all targets. It has high absolute costs but cost per thousand is moderate. However, it provides less efficient delivery against narrowly defined targets.

39. Radio The specific characteristics of Radio are: Radio can reach out to remote/isolated / far way audiences. Amongst all mass media it is most cost efficient. Radio has local market identification. Radio can reach mobile population, which is not approach-able by other mass media. Radio works as the Theatre of the mind as when you listen, it creates visual impressions of the same communication. Therefore, Radio is typically considered to be an excellent support medium and a reminder medium.

40. Newspapers The specific characteristics of Radio are: Newspapers have immediacy and therefore they have an announcement value. The other characteristic of newspaper is that it has a better scope for providing detailed information. There is a geographic flexibility in newspapers as a publication may have more than one edition, Newspapers also have special interest targeting opportunity through sections and/or supplements. Newspapers are also Vehicles for Coupon delivery.

41. Magazines From advertising point of view, the characteristics of Magazines are: Magazines have specific audience selectivity, as they are specialized. As you are aware there are magazines for women, children, corporate processionals etc. They have compatible editorial environment, i.e., contents v/s advertisements . Magazines have longer life span, corresponding with their periodicity. Magazines provide them opportunity for message scrutiny, and geographic and demographic flexibility.

42. Outdoor Media Out-door has specific characteristics like: It provides 24 hours exposure. It has a strong local market presence. Outdoor is cost efficient. It can be a good reminder media, alongside TV/Press campaign.

43. Interpersonal Media In addition to the conventional mass media, Interpersonal media can also be used for marketing communication. Those Interpersonal media are, Public Meetings & Lectures, Group Discussions, Home Visits and Demonstrations. More specifically, for social campaigns, industrial products or at the launch stage of consumer product, these media are quite useful.

44. 1.7. The Role of Advertising in Economic Development Value of Products Effect on Prices: Effect on consumer demand and choices: Effect on business cycle:

45. Chapter two

46. Meaning of Advertising Management Advertising Management is a managerial process aimed at managing the advertising activities of organization. It is one through which company’s monitor and controls their advertisement programs for attracting target audience. It is important process as it has an important role in developing better image of companies in market and increases their customer base. Without a proper advertising strategies and management processes, all marketing campaigns and promotions may go in vain.

47. Advertisement management process requires many steps to be followed to derive better results from advertisement activities. These steps include deciding advertising objective, setting advertising budget and strategies for doing campaigns, recognizing target audience, creating effective message and also measuring overall efficiency of whole advertisement activities. It continuously monitors the various promotional activities from time to time and take necessary steps if found necessary to ensure better results.  

48. Role of advertising management The following are some of advertising control significance (importance); Makes Advertisement Effective; Advertisement control has an important function in designing effective advertisement activities for agencies . Reduce Cost and Time; it is a manner that guarantees that organizations’ sources spent on promotional campaigns do now not cross in vain. Through designing a powerful marketing approach this process helps in attaining the preferred goals in much less & deliberate time .

49. Increase Profits; It facilitates in growing the customer base in the market. Through better promotional  strategies businesses  can increase higher patron retention rates. Measures and Monitors Advertisement Activities; Advertising control continuously videos display units & measures the effectiveness of diverse promotional sports of corporations. Increase Goodwill; Advertisement control facilitates in developing higher goodwill of agencies inside the market. Advertising is a medium through which agencies display their presence within the competitive marketplace. Help to Capture Market;

50. Advertising manager Advertising managers oversee a company's advertising initiatives and work with staff to create innovative, dependable brand-specific advertising campaigns. They assume a significant leadership position in shaping how potential customers and clients perceive a brand.   Advertising managers are in charge of planning and executing promotional campaigns for companies with the main goal of generating interest in a product or service. An advertising manager frequently acts as a point of contact between clients and advertising firms. People in this position work in fast-paced, innovative environments .

51. It is crucial to note that the job of an advertising manager is slightly different from that of a marketing manager , even though some people regard the two roles interchangeably. Marketing managers are in charge of organizing and carrying out the entire marketing programme . On the contrary , advertising managers oversee the planning and strategy for advertising alone, a crucial aspect of marketing. Both managers look after a company's branding process and try to forge a bond with its target market.

52. Core Advertising Manager Responsibilities/roles Here are some of the major advertising manager responsibilities you may encounter in this position: Choosing a target audience Budgeting Search engine marketing and optimization Handling advertisement campaigns Supervision and hiring

53. How to Become an Advertising Manager? If the professional life of an advertising manager intrigues you, you can follow these steps to begin on this career path: Complete bachelor's and master's degrees in a relevant discipline Get valuable certifications Professional Certified Marketer (PCM) Certified Advertising Specialist (CAS) Google Data Analytics Professional Certificate Accredited Business Communicator (ABC) Certified Social Marketing Associate (CSMA) Certified Management Accountant ( CMA) 3. Gain work experience in advertising : 4 . Hone your skills

54. The Brand and Marketing Mix American Marketing Association defines a brand as “A name, term, design, symbol, or any other feature that identifies/ differentiate one seller’s good or service as distinct from those of other sellers. 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”.

55. Brand is a known identity of a company in terms of what products and services they offer but also the essence of what the company stands for in terms of service and other emotional, non-tangible consumer concerns. To brand something is when a company or person makes descriptive and evocative communications , subtle and overt statements that describe what the company stands for. Each communication is deliberate in evoking emotion in the receiver to leave him/her with an essence of what the company or person stands for.

56. A good brand should deliver a clear message, provide credibility, connect with customers emotionally, motivate the buyer, and create user loyalty. Advertising becomes a dialogue that becomes an invitation to a relationship”. From the above all definitions, the role of branding is without a doubt imperative.

57. Promotion or Marketing of the product is one of the parts of the marketing mix which contributes to a brand and long term effective promotion of the product gives the brand impact among the customer. Brand is particular mark (logo) which is stickled in the mind. Properly planed marketing business is the only way to gain success and market value. Having the right people is essential because they are as much a part of your business offering as the products/services you are offering.

58. Here for promoting our brand considering marketing mix is an essential task. : Figure: 1: Marketing strategy.

59. Advertising and brand building Advertising has basic role for brand building some of the are: To make brand distinctive : brand building can be done through repetitive advertising. Constant innovation : Consumers need continuous innovation and new products. It is not always a new product even an improvement on the existing product is acceptable to the consumers. Through intensive advertising such brands are build which is time consuming. Domination of brand: brand building largely depends on the domination is creates on the competitors.

60. Prompt/quick availability : Prompt delivery of the product is one of the factors that ensure brand building. This is possible if there is proper coordination between the finance, production, and marketing department. Integration of new and old media: Consumers have ever changing demand. Due to availability of various media option the seller can push the product in the market by blend multiple media option.

61. Unit Three The Agency World

62. what is Advertising Agency An advertising agency , often referred to as a creative agency or an ad agency, is a business dedicated to creating, planning, and handling advertising and sometimes other forms of promotion and marketing for its clients. An ad agency is generally independent of the client; it may be an internal department or agency that provides an outside point of view to the effort of selling the client's products or services, or an outside firm. An agency can also handle overall marketing and branding strategies promotions for its clients, which may include sales as well.

63. Typical ad agency clients include businesses and corporations, non-profit organizations and private agencies. Agencies may be hired to produce television advertisements, radio advertisements, online advertising, out-of-home advertising, mobile marketing, and etc.

64. For example: “The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally stitch the cloth and deliver it to the customer.” Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be delivered and hands it over to the client. Advertising agencies are mostly not dependent on any organizations . These agencies take all the efforts for selling the product of the clients.

65. They have a group of people expert in their particular fields, thus helping the companies or organizations to reach their target customer in an easy and simple way. The first Advertising Agency was William Taylor in 1786 followed by James “ Jem ” White in 1800 in London.

66. Role of Advertising Agencies Creating an advertise on the basis of information gathered about product Doing research on the company and the product and reactions of the customers. Planning for type of media to be used, when and where to be used, and for how much time to be used. Taking the feedbacks from the clients as well as the customers and then deciding the further line of action All companies can do this work by themselves. They can make ads, print or advertise them on televisions or other media places; they can manage the accounts also. Then why do they need advertising agencies?

67. The reasons behind hiring the advertising agencies by the companies are: The agencies are expert in this field. They have a team of different people for different functions like copywriters, art directors, planners, etc. The agencies make optimum use of these people, their experience and their knowledge. They work with an objective and are very professionals. Hiring them leads in saving the costs up to some extent.

68. Planning, creating and producing the advertisements Media selection Research Strategic marketing planning and Sales promotion Events, trade shows Package design Public relationship Complete market analysis Develop an advertising plan Prepare a creative strategy Create advertising executions Handling billing and payments Integrate other marketing communications

69. Advertising Agency Structures Departmental system – Departments are grouped around functions and as per the need, specific department is called upon to serve the client. It provides employees the opportunity to develop expertise in servicing difference types of clients. Group system – Individuals are drawn from different functional areas and work as a group to serve a particular client. Each group is headed by an account executive. Employees become knowledgeable about a particular client which facilitates continuity in servicing

70. Full Service Advertising Agencies: They are large size agencies which offer their clients a full range of services in the area of marketing, communication and promotion. A Full Service Agency provides the following facilities to a client: Creative Services: The Creative Department is responsible for creation and execution of advertisements Copy writers are creative specialist responsible for creation of ideas, headlines, body.

71. Art department – Decides how the advertisement should look and prepare a layout or story board. Production department – Responsible for production of the advertisement Traffic department – Responsible for coordination of all the phases of production and ensuring that they meet media deadlines Account Services : An account executive acts as liaison between client and company. He/she is responsible for strategy development, understanding client’s business and needs, represent clients point of view to the agency and vice versa Marketing Services.

72. Research department – To gather, interpret and analyses data for a situation. Media department – To develop a media plan to reach the target audience in a cost effective manner Management and Finance Perform Functions of: Finance, Accounting, Human resources and Office management

73. Types of Advertising agency There are basically 5 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 . they are very innovative. The ads produced are very interactive, having very new concepts.

74. 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 whether the ad has been telecasted at opted time and place or not.

75. 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.

76. Advertising Agency Compensation The Compensation System of an advertising agency may take the following three forms 1. Commission – The agency is paid fixed commission from the media on any advertising space or time purchased for the advertiser (15%) outdoor media (16.66%). 2. Negotiated Fee – The agency and client negotiate some type of fee system or cost plus arrangement. It may be : Fixed fee method – Monthly fee based on the work being done Cost plus system – A Fee based on cost of work + mutual agreed margin or profit Incentive based system – The agency gets compensated on the basis of their performance criteria may be sales/market share/quality as agreed by the advertiser. Get compensated through media commission, fees, bonus etc. 3. Percentage charges – A mark up of percentage charges for various services from outside providers.

77. Selecting an Ads Agency Following are some points to be taken in account while selecting the advertising agency: Suitability : The advertising agency which suits the requirement of manufacturer or trader is selected depending upon the type of advertisement, location of agency, credit policies, etc. Location: , an agency which is located near the advertisers place is selected. And the size of agency in terms of personnel, projects, and services provided, the connections and relations with the various media considered, Its competitors also considered. Facilities and Services Provided : Some agencies have modern facilities of photography, typesetting, printing, filming etc. The agencies which provide maximum services with minimum costing preferred. Imagination: Imaginations and creative skills of the personnel of agency is duly considered. Creativity in photography, layout, copy writing, media etc. creates an identity and unique for the products and services of the advertiser.

78. Past Record: Past records of the agency in terms of number of clients, effectiveness, credit reputation, punctuality etc , past record helps to show whether the agency is reliable or not. Reputation: The reputation of the advertising agency helps in selection. The popularity of the agency depends upon successful presentation, good relations, prompt services etc. Management: Proper selection of advertising agency depends on the ownership and management and their policies. Rates Charged : The advertiser considers the rates charged by the agency. Normally, the rates depend on reputation, facilities provided techniques adopted etc. Size of the Agency: The size of the advertising agency must be considered. The larger the size, the more it is preferred, however, at times, small is beautiful because a small agency may give more attention to its client’s work.

79. How do Agencies get Clients? Competition – Unsatisfied clients of competitors Referrals – Word of mouth Presentations – Good presentations from creative team Client Agency Relationship Why Agency lose Clients Dissatisfaction Poor communication Unrealistic client demands New managers Conflict of interest due to mergers Change in client`s strategy Decline in sales of a client company Compensation Disagreement

80. Factors contributing to effective client agency relationship Not to Advertise for Immediate Competitive Unit : For better relationship in the long run, agency should not accept business from immediate competing rivals of clients. Prompt Payment: The client should pay the agency bills promptly, so that agency can make timely payment to media- owners and suppliers of advertisement material, professionals etc. Passing Down Cash Discounts to Clients : If media gives any cash-discount for making payment within stipulated time then such discount should be passed down to client , provide the client pays the agency bills by due date. Not to Blame Agency for Media–Lapses: The client should not blame agency for media- lapses related to ad-positioning.

81. Good Services: The advertising agency must provide good advertising and marketing services to its client. Written Agreement: All the terms and conditions between agency and client should be in writing so as to avoid any dispute in future. Frequent Contacts between Agency and Client: For maintaining smooth agency client relation, both the parties should interact with each other frequently.

82. 3.5 Managing Client –Agency Relationship Managing the relationship between an advertising agency and its clients is essential for the success of an advertising campaign. The following are best Practices for Managing Client-Agency Relationships: Establish Clear Expectations:  Ensure that both the client and the agency have a clear understanding of each other’s expectations, including project scope, timeline, and budget. Foster Communication:  Foster open and effective communication between the client and the agency, including regular check-ins, progress updates, and feedback sessions. Be Responsive:  Be responsive and proactive in addressing the client’s needs and concerns, including responding to emails and phone calls in a timely manner.

83. 4. Collaborate Effectively:  Foster collaboration between the agency and the client, including involving the client in the creative development process and seeking feedback throughout the campaign. 5. Measure Success:  Measure the success of the advertising campaign, including monitoring campaign performance and providing regular reports to the client.

84. Starting an advertising agency Starting an advertising agency can be done with a modest investment and may be run out of a home office. Ad agencies make money in a number of ways, and you must first decide what type of agency you wish to operate. Traditional advertising agencies create slogans and advertising copy to be used in print, billboard, radio, web and television ads in return for development fees and expenses. More specialized ad agencies deal strictly with web advertising. They may still create the ad copy, but are specialists in search engine optimization and keyword search tactics to get ads noticed and generate per-click income.

85. Requirements for an ad- agency Local business permit, state tax certificate and federal tax identification number Office with computer, printer, phone, fax, furniture and supplies Digital camera, photo scanner, graphic arts design program (optional) Marketing materials: cards, brochures, stationery, website

86. Steps to start an ad – agency Step 1 : Decide what type of advertising agency you wish to run, and list the services you will offer . Step 2: Obtain a local business permit from your town hall, state tax certificate from your state's business regulatory office and federal tax identification number from the Internal Revenue Service. Step 3 : Set up your office with computer, printer, phone, fax, furniture and supplies. Your office may be run from your home, but ensure that it is away from household noise and other distractions. A dedicated phone and fax line is recommended for professionalism, and you will require reliable high-speed Internet service .

87. Step 4: Purchase a digital camera, photo scanner and graphic arts design program such as the ad and printing industry standard, Adobe Creative Suite (optional). You may choose to outsource your design work, but will have to pay design fees .   Step 5 : Purchase business cards, stationery, brochures and other printed marketing materials from your local printer. Endeavor to buy locally to establish business relationships in your town. If you wish to have a website, purchase a domain and hosting package, and publish your site . Step 6: Create a list of local and regional businesses who may be interested in your services. Maintain the list on a spreadsheet or database program for reference and marketing purposes.

88. Step 7: Contact newspapers, magazines, television stations and other advertising media offices to request rate sheets. These sheets list the type and costs of advertising with their company. Step 8: Create and execute a marketing campaign to the companies on your prospect list. Your campaign may use elements of direct mail of marketing materials, emails and phone calls. Step 9 : Join local business organizations to network with other business owners and get your name out there. In the advertising business, relationships, visibility and creativity are the keys to getting your first account.

89. Unit Four Establishing Objectives and Budgeting for Ad

90. Setting strategic objective is a key element of crafting strategy. It is a very important exercise to ensure that the organization’s long term plans and goals are attained. It exhibits management’s commitment to action and outcomes. All objectives must meet the SMART criteria to be effective. The SMART methodology is a widely-used technique to frame meaningful objectives. SMART is an acronym that stands for: Specific : That is, they tell how much (e.g., 10%) of what is to be achieved (e.g., what behavior of whom or what outcome) Objectives must be measurable . It is always a good practice to quantify objectives rather than state it in qualitative terms.

91. Attainable: Objectives must be attainable that is, it must be achievable. Thus, setting objectives requires careful assessment and understanding of the capabilities of the organizational resources. Relevant: Objectives must be linked to the overall goals and mission of the organization. Objectives that are misaligned with the mission and goals of an enterprise will only result in confusion, misdirection, and waste of valuable organizational resources . Time bound: Each objective must have a stated time limit within which it must be accomplished. This is important in evaluating whether organization has been successful in achieving their objectives. Time constraints must be set taking into ‘consideration the environment in which the change must be achieved, the scope of the change expected, and how it fits into the overall work plan’

92. Establishing the Budget/Advertising Budgets The budget is an expression of the expenditure plan. It is estimated to meet the financial requirements of advertising plans so that advertising objectives with planned strategies may be realized within a given time frame. It is a statement of proposed advertising expenditure ; a guideline for allocating the available funds to the various functions and activities of advertising. The nature of the advertising budget, advertising appropriation, allocating advertising budget and retail advertising budget are the main decision areas of the advertising budget . An advertising budget is the money a company is willing to set aside to accomplish its marketing objectives. Advertising Budget is the amount of money which can be or has to be spent on advertising of the product to promote it, reach the target consumers and make the sales chart go on the upper side and give reasonable profits to the company.

93. Factors to be considered to ensure that the budget is in line with their promotional and marketing goals: Target consumer: Knowing the consumer and having their demographic profile can help guide advertising spend. Type of media that is best for the target consumer: Mobile or internet advertising via social media may be the answer, although traditional media, such as print, television, and radio may be best for a given product, market, or target consumer. Right approach for the target consumer: Depending on the product or service, consider if appealing to the consumer's emotions or intelligence is a suitable strategy. Expected profit from each dollar of advertising spending: This may be the most important question to answer, as well as the most difficult.

94. Approaches to advertising budget 1. Traditional Approach The traditional approach believes that money spent on Advertising is an Expenditure. The traditional approach is that money spent on advertising should be treated as an expenditure and hence should be debited to Profit and Loss Account of the business enterprise at the end of each year. Advertisers treat the cost of advertising like other costs appearing on the debit side of the Trading and Profit and Loss Account in order to earn more profits during a given period. That is why most accountants list the advertising expenditure as a business expense and the revenues authorities do accept this view for income purposes also. They further argue that press, radio and television advertisements have short life span and thus why the money spent on advertisement should not be debited to Profit and Loss Account in the same accounting year.

95. 2. Modern Approach Money Spent on Advertising is an Investment: The modern and the correct approach about the money spent on advertising is that it is an investment because advertising contributes not only the current sales but the future sales also; Creates image of the product or brand and of the advertiser; builds goodwill and confirms acceptance for future products also; and consequently serves as an investment towards future profits also. Joel Dean, a leading business economist, considered advertising as a capital investment rather than a current expenditure. Like other capital assets, the advertising provides larger returns in future also.

96. Process of advertising budget Advertising budget is prepared by the advertising manager of the company. The advertising budget process includes the following major steps: Collection of Data and Preparation of Advertising Budget: The starting point of any advertising budget process is the determination of the size of advertising appropriation. The requisite information keeping in view with the products, packaging, target markets, advertising copy, new product introductions, types of consumers, extent of competition along with the competitors‟ strategy, media selection etc. is gathered.

97. Having decided upon the above variables , the advertising manager takes a decision on the very important issue „ how much to spend‟ for advertising. Once the total expenditure is arrived at, the next step is the apportionment of this fund among various advertising units over a period. By advertising unit , we mean a specific advertisement delivered through various media vehicles. The fund allocation has to take into account the market potential within various segments, the time period and the geographical areas over which advertising will be spread in accordance with the overall advertising strategy.

98. 2. Presentation and Approval of the Budget: After the preparation of advertising budget, the next step in a budget making process, is to present the same before the top management through the chief of the marketing division for necessary approval. In some organizations, there is a separate budget committee, comprising of the representatives of the financial and other functional areas. The budget committee or the top management, as the case may be, will evaluate such proposed expenditure to achieve the targeted sales in a given budgeted period. Since advertising budget is employed to increase sales, the advertising budget must be compatible with the sales goals of the company. Besides increasing sales, it should be adequate enough for the new product to make a successful entry in the chosen segment of the market. After considering all these factors if satisfied, the budget committee or the top management, as the case may be, will finally accord his approval over the budget proposals and thus will return the same to the advertising manager for execution.

99. 3. Budget Execution: After the approval, the next step in budget making process is the execution of the budget. During the execution of the budget, the advertising manager has to exercise monitoring control so that the funds that have been allocated are spent in accordance to the approval plan and in economical manner. Whenever there are critical changes in the marketing situation, necessitating an adjustment in the advertising support, the necessary modifications should be effected in the advertising budget. That is why, advertising budgets should be flexible and provision is made for the contingency account to face the critical changes in the marketing environment. The advertising manager should be duly authorized by the budget committee or the top management for making the required modifications etc. as and when required.

100. 4. Control of Budget: The fourth and the last step in the budget making process is to have a control over the budget. It is the prime duty of the advertising manager to see whether the actual expenditure coincide with the budgeted expenditure or not. The advertising manager should also see that the amount appropriated for advertising is being used only on the item and activity as expressed in the budget. 5. Determining Advertising Appropriation: Advertising appropriation is that part of company‟ s budget which is to be spent or, say, invested on media, men and other advertising material so as to impersonally communicate with the target-prospective customers. Determining the appropriation advertising outlay is essential for the development of creative media strategies because in a large measure the tempo and tenor of the advertising campaigns depend on how much is available for spending ..

101. Factors influencing an advertising budget Before finalizing the advertising budget of an organization or a company, one has to take a look on the favorable and unfavorable market conditions which will have an impact on the advertising budget. The market conditions to watch out for are as follows: Frequency of the Advertisement Competition and Clutter, Market Share, Product Life Cycle Stage Corporate objectives, The product Life Cycle The budgeting period , The competitors strategies: Crisis management, The type of product: Scope of the market: The quality of the campaign:

102. Types of advertising budgets are: The process of budgeting is a decision making process that divides the total appropriation under different expenses heads. The various methods , which are used, for setting advertising budgets are: 1 . Percentage of sales method 2 . Unit of sales method 3 . Task and objective method 4 . The competitive parity method 5 . Brand history method 6 . All you can afford method 7 . The break even method 8 . The quantitative method

103. Each of these methods has certain advantages and disadvantages. In reality, a combination of these methods will be used. Percentage of Sales Method: The percentage of sales method is the most widely used method of setting the appropriation. it is based on the past years’ sales or on estimated sales for the coming year or on some combination of these two. This is simplest method, as it requires little decision making. Many companies in India use this method to arrive at a tentative/changing budget appropriation. But this method suffers from a basic drawback in that it does not take into account any specific need of the market situation. Moreover, when past sales are used to arrive at the current year’s budget, the figure may have more history historical value rather than current utility.

104. Advertising leads to sales and the amount of advertising expenditure depends upon the sales target and therefore, when the percentage of future sales is used the estimates are more realistic. In conclusion one can say that this method is not appropriate as market situations change rapidly and past sales alone are not an effective indicator of the company’s communication needs.

105. 2. Unit of Sales Method: The unit sales method also relates the advertising expenditure of sales. In this approach, a percentage of the price of each unit of the item sold is allocated to advertising. Thus a soap manufacturer might budget that a cake of soap costing Rs.6/- will have Rs.1.50 as the advertising expenditure. Thus , if the manufacturer sells one lakh units, his expenditure on that brand will be Rs . 1.5 lakh. This approach is useful as it links the price of a brand with its advertising expenditure. This approach is simple to plan and execute. However, it does not lead to efficient marketing since past sales determine how much a firm should spend on advertising, when in fact advertising is a tool to create sales and expand markets.

106. 3. Task Objective Method: This method is gaining more popularity because it provides a more logical basis for deciding advertising appropriation. The objective task method concentrates on the marketing/advertising objectives that are pre-decided and ask these questions: what is the role of advertising in obtaining these objectives? How much should we spend to achieve these objectives? Thus under this method a company launching a new product will decide to spend more money as it has to create immediate awareness amongst consumers.( for example Ranbaxy will spend more on its new product Olesan ). For an existing well know brand, the company may spend less on advertising (for example Ranbaxy will spend less to advertise its product Garlic Pearls.) As it is obvious in the above example, the objective task approach directs the efforts of manufactures to think through the objective while setting the budget.

107. 4. The Competitive Parity Method: This is the most controversial method and few executives admit that they use it while preparing the budget. In this approach an advertiser bases his budget decision primarily on the expenditures of competitors. That is they try to keep pace with their competitor’s advertising budgets. This method could be useful in deciding individual brand ad expenditures. It has the advantage of recognizing the importance of competitors and ensure that the competitors do not increase their ad expenditure to a level that affects the advertiser’s sales. But the approach has disadvantages. Firstly your objective may be different from that of your competitors. And secondly it assumes that your competitors are spending optimally. It also maintains the present market position rather than bringing any positive change for the company. If you want to overtake your competitors you may have to spend more than them and spend this money more efficiently.

108. 6. Brand History Method: Under this method the brand’s product life cycle is considered while setting the budget. Thus a brand at the introductory or pioneering stage will use more advertising appropriation than an established brand. Brands that are facing a decline may also use more advertising to add new life into it. For example: Close Up, the toothpaste manufactures by Hindustan Lever had a stagnating market share till recently. In 1990 its spent Rs . 3.45 corer on television advertising with its new theme close up: a mouth wash in tingling red and blue colors. The result was that close up has over taken Promise and is now number two in the toothpaste market behind Colgate .

109. 7. All You Can Afford Method: This approach means that the advertising budget will be decided on the basis of whatever money is left after all other fixed and unavoidable expenses have been allocated. This method seems to be illogical and unambitious but conservative management use this method as it is safe and ensure that there is no overspending. New entrepreneurs have no other option but to follow this method when they are short of funds. 8. The Break Even Method: The break even or the marginal analysis method attempts to quantify the advertising spending level that will offer an organization the highest additional gross profits. That is the firm cont1inues to spend on the advertising as long as the incremental expenditure are exceeded by the marginal revenue they generate, thus maximizing the gross profits of the firm.

110. 9. Experimental Method: In the experimental method varying advertising expenditures are used in different cities. For example: the advertising expenditure in Pune may be greater than the advertising expenditure in Hyderabad. Then sales in the two cities are compared to find out which is optimum level of expenditure look alike, was striking television commercial that immediately gained attention

111. 4.3. Consumer Expectation Sujan & Tybout (1988) observed that consumers face a complex choice environment with many brands that have both common and unique features. Furthermore, that consumers are also overwhelmed with ads and other communication efforts for brands. Consumers can manage such a complex marketing environment, because they know what to expect from brands, products, and ads to some extent. Existing knowledge about brands, products and ads is used to guide the perception of new marketing information and make inferences about new brands, products and ads (Fiske & Taylor 1984). Therefore, consumer expectations of advertising are important to understand how advertising works.

112. Consumer expectations, standing alone, do not take into account whether the proposed alternative design could be implemented at reasonable cost, or whether an alternative design would provide greater overall safety. Nevertheless, consumer expectations about product performance and the dangers attendant to product use affect how risks are perceived and relate to foreseeability and frequency of the risks of harm, both of which are relevant under Subsection (b). Such expectations are often influenced by how products are portrayed and marketed and can have a significant impact on consumer behavior. Thus, although consumer expectations do not constitute an independent standard for judging the defectiveness of product designs, they may substantially influence or even be ultimately determinative on risk-utility balancing in judging whether the omission of a proposed alternative design renders the product not reasonably safe .

113. The consumer expectations test is applied throughout products liability cases, including those involving design defectiveness. It is probably the central test for determining a product defect. The other major test that of weighing risk against utility, can be comfortably subsumed under consumer expectations. It is therefore a misapprehension to conclude that the importance of the consumer expectations test is declining.

114. Factors That Influence customer expectations of service Personal needs: Those states or conditions essential to the physical or psychological well-being of the customer, are pivotal factors that shape what customer desire in service. Lasting service intensifiers (Personal Service Philosophy): The customer’s underlying generic attitude about the meaning of service and the proper conduct of service providers. Derived Service Expectation: This occur when customer expectations are driven by another person or group of people. Temporary Service Intensifiers: It consists of short-term, individual factors that make a customer more aware of the need for service. For Example : Personal emergency situations in which service is urgently needed raise the level of adequate service expectation, particularly the level of responsiveness required and considered acceptable. Such as an accident and the need for automobile insurance or a breakdown in office equipment during a busy period.

115. Explicit service promises: these are personal and non-personal statements about the service made by the organization to customers. Explicit service promises are one of the few influence on expectations that are completely in the control of the service provider. All types of explicit service promises have desired service expectation. Implicit service promises: These are service-related cues that lead to inferences about what the service should and will be like. These quality cues are dominated by price and the tangibles associated with the service.(video of burj al arab ) Word of mouth communication: it tends to be very important in services that are difficult to evaluate before purchase and before direct experience of them. Past experience, the customer’s previous exposure to service that is relevant to the focal service, is another force in shaping predictions and desires.

116. Chapter five

117. Advertising Plan Outline Introduction / executive summary : a brief narrative overview of the situation, the recommended objectives and strategy, and the total budget expenditure. Situation analysis : Advertising Problem or Opportunity, More detailed discussion about the client organization, product, and market. Based on Marketing Plan, Business Plan and/or other research. Marketing Objectives . Succinct list of desired outcomes, including long- and short-term sales goals. Examples : To increase market share by 3% by year-end. To generate $40 million in sales of new product in first quarter. To become #1 brand in consumer awareness, preference and purchases in the U.S. by 2004 .

118. 3. Setting Advertising Objectives Two to four concise statements of communications (versus marketing) outcomes to be pursued. Examples : To create awareness of brand among 35% of consumers by year-end. To foster positive attitudes (preferences) among heavy users in the product category by 2005. To generate 10,000 sales leads by 2nd quarter. To stimulate 25,000 calls to customer order desk in March.

119. Considerations in formulating objectives Should be specific, measurable, attainable (realistic) and should state time frame for accomplishment . Should focus on behavior changes sought, i.e. Changes in awareness, understanding, interest, desire, conviction, actions. Should anticipate/focus on specific measures to be used: awareness studies, attitude studies, actions (inquiries, increase in average order sizes, repeat purchases, visits to store, 800-number calls, web site hits, etc.

120. 4. Target Audiences List of key audience segments to be reached. Priority of segments: e.g. primary, secondary, tertiary, heavy users v. other usage levels. Purchase roles for each segment: users, specifies, purchasers, approvers. Characteristics of each segment: geographic, demographic. Behavioral considerations for each segment: learning abilities, motivations (involvement, needs, concerns, and interests), attitudes, psychographics (lifestyles).

121. 5. Advertising creative strategy “Big Idea” – The overarching or dominant theme or copy/visual gimmick/device to be used in the campaign. Communication Strategy Directness of message: Hard sell v. soft sell, lecture v. drama. Appeal: head v. heart (rational v. emotional) Storytelling approach: Straightforward, demonstration, comparison, problem solution/avoidance, slice of life, spokesperson or endorser. Copy Elements: Slogans, tag lines Long v. short copy length? Direct response devices (if any): 800- numbers, coupons, web addresses Visual Elements Visual appeals. Illustrations: Photos, drawings, stills, motion; color black and white. Unique graphical considerations. Logo, trademarks, etc. Audio elements: Music, jingles, sound effects.

122. 6. Advertising media strategy Media to be used Traditional media: newspapers, magazine, television, radio, and out-of-home. Online media Specialized non-traditional (specify). Media objectives: reach, frequency, gross rating points Timing: Dates when ads to appear. Pattern/continuity of exposure: Continuous, flighting or pulsing, etc. Media availability concerns (Might media not be available when or where needed ?) Appropriateness to message Cost: Ad size/commercial length, production costs, media costs Cost efficiency against target audiences.

123. 7. Integrated marketing communications Sales Promotion Consumer: Price-off deals, coupons, refunds/rebates, sampling, contests and sweepstakes, premiums, ad specialties, continuity/loyalty programs Trade: Point-of-purchase, dealer kits, trade incentives/deals, contests, trade shows/exhibits/special events. Sales staff support: sales aids, audio- visuals, training. Direct Marketing/Response Direct mail, catalogs, online, telemarketing, direct response ads, infomercials Public Relations Publicity, events, sponsorships, speeches, cause-related marketing (philanthropy), publications, tours, web sites.

124. 8. Implementation/tactics : (Staffing, Calendar) Coordination of effort by account management/account service team Qualifications , experience of team. Tasks to be performed Key dates for implementation 9. Evaluation : conducting evaluative research. Budget: Proposed Spending/Allocation by Category Rationale for setting budget total:

125. Quiz What is advertising management? Discuss Role of advertising manager? Discuss components of advertising plan?