INTRO TO ADVT & SALES MANAGEMENT DETAIL.ppt

Introduction to ADVERTISEMNT AND SALES

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Introduction to Advertising

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What Makes an Ad Great?
Explicit objectives should drive the
planning, creation, and execution of
each ad.
An ad is great to the extent that it
achieves its objectives, not because it
wins awards.
Creativity for its own sake does not
always lead to great advertising.

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Good or Great Ads Work on Two Levels
Achieve the Sponsor’s
Objectives
Satisfy the Customer’s
Objectives by Engaging
Them & Delivering a
Relevant Message
Characteristics of Great Ads

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What is Advertising?
Advertising is Paid, Nonpersonal
Communication From An
Identified Sponsor Using Mass
Media to Persuade or Influence
an Audience.

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Roles of Advertising
Marketing Role
Communication Role
Economic Role
•Marketing is the process a business
uses to satisfy consumer needs and
wants through goods and services.
Societal Role
•Advertising is a form of mass
communication.
•Two main views about advertising,
either the market power model or the
economics of information theory.
•Informs us about new and
improved products, teaches us how
to use these innovations, etc.

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Provide Product &
Brand Information
Provide Incentives
To Take Action
Provide
Reminders and
Reinforcement
Advertising
Performs 3 Basic
Functions
Functions of Advertising

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Five Players of Advertising
The Advertiser is the individual or organization
that usually initiates the advertising process.
The Advertising Agency plans and implements
part or all of the advertising efforts.
May use an outside agency, or their own advertising
department or in-house agency.
The Media are the channels of communication
that carry the messages from the advertiser to
the audience, i.e. television, magazines, radio,
etc.

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Five Players of Advertising
The Vendors are a group of service
organizations that assist advertisers,
advertising agencies, and the media, i.e.
freelance copywriters, graphic artists,
photographers, etc.
The Target Audience may be the purchaser or
the consumer of the product, or both. May
need to design different ads for each group.
Critical to know as much about these target
audiences as possible.

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Interactive
Advertising
Public Service
Advertising
Institutional
Advertising
Business-to-
Business
Advertising
Brand
Advertising
Retail or Local
Advertising
Political
Advertising
Direct-Response
Advertising
Directory
Advertising
Types of Advertising

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Age of
Print
Industrial
Revolution &
Consumer Society
Age of
Science
Rise of
Agencies
Advertising
Declines
Reintroducing
Consumers to
Marketing
Creative
Era
Accountability
Era
The Evolution of Advertising
1441-
1850
1850’s-
1900
1900-
1950’s
World War I-
World War II
1950’s 1960’s-
1970’s
1970’s-
1990’s
1920’s

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Interactive Advertising
Integrated Marketing Communication
Consumer Power, Relationship Marketing
and Customization
Globalization
Niche Marketing
Current Advertising Issues

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Practical Tips # 2
Ogilvy’s Advertising Tenets
Here are some advertising tenets that
David Ogilvy offers: (11)
“Never write an advertisement you wouldn’t
want your own family to read.”
“The most important decision is how to position
your product.”
If nobody reads or looks at the ads, “it doesn’t
do much good to have the right positioning.”
“Big ideas are usually simple ideas.”
“Every word in the copy must count.”

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Advertising as Art, Science,
Business Practice
“The written word is the deepest dagger you can drive into a
man’s soul.”
-British writer Indra Sinha
“Advertising is of the very essence of democracy. An election
goes on every minute of the business day across the counters
of hundreds of thousands of stores and shops where the
customers state their preferences and determine which
manufacturer and which product shall be the leader today, and
which shall lead tomorrow.”
- Bruce Barton, chairman of BBDO agency

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Advertising as Art, Science,
Business Practice
“I browse for an original thought, usually
while on the bog, and the sense of
achievement in finding exactly the phrase
you’re looking for is a pleasure that
transcends the most spectacular of dumps.”
-Neil French, “Worldwide Creative Godfather” to all the
companies in the WPP Group, on his fondness for
quotation anthologies.

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1.      Advertising and Product :  A product is normally a set of physical
elements, such as quality, shape, size, colour and other features. The
product may be of very high quality .At times, the product is so
designed that it requires careful handling and operations. Buyers must
be informed and educated on the various aspects of the product. This
can be effectively done through advertising. Thus, advertising plays the
role of information and education.
2.       Advertising and Price : The price is the exchange value of the
product. A marketer may bring out a very high quality product with
additional features as compared to competitors. Advertising can
convince buyers regarding the superiority of the brand and thus its
value for money
3.       Advertising and Place : Place refers to physical distribution and
the stores where the goods are available.  To facilitate effective
distribution and expansion of market, advertising is of great
significance. Thus advertising do help in effective distribution and
market expansion.

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4.       Advertising and Promotion : Promotion consists of advertising,
publicity, personal selling and sales promotion technique. Advertising can
play a significant role to put forward the claim of seller, and to counter the
claims of competitor also help to develop brand image and brand loyalty.
5.       Advertising and Pace : Pace refers to the speed in marketing
decisions and actions. It involves among other things the launch of new
products or brand variations at greater speed than before. As and when
new brands are launched, advertising plays an important role of informing,
educating and persuading the customers to buy the product. 
6.       Advertising and Packaging : The main purpose of packaging is
protection of the product during transit, and preservation of quality and
quantity. Nowadays, marketers take lot of efforts to develop and design
attractive packages as they carry advertising value. It also carries an
assurance of quality and creates confidence in the minds of customers to
buy the product.

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.      Advertising and Positioning : Product
positioning aims at creating and maintaining a
distinct image of the brands in the minds of
the customers. Through advertising the
marketer can convey the positioning of the
brand and accordingly can influence the
buying decision of the target audience. 

19. DAGMAR APPROACH
DAGMAR: Stands for Defining Advertising
Goals for Measuring Advertising Results. It is
basically an approach to advertising planning for
quantifying goals and using those goals to
measure performance.
An advertising objective involves a communication
task, intended to create awareness, impart
information, develop attitudes or induce
action.
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21. The second half of the 20th century witnessed the mark of this method. After
World War II, advertising
 expenses increased massively (
i.e., 33 times). From
1961 to 1992, the sales of cable and direct-satellite televisions multiplied
by
 
11 times. Increased advertisements also hyped the competition among the
rivals.
During this situation, the American advertising business saw a boost
in
 advertising budget, increasing from $12 billion to $130 billion.
This concept has enabled marketers to increase the utility of their
advertisements. The purpose of this advertising approach was not only to
sell products but also to build a strong audience. Therefore, it focused more
on developing relations with the customers.
Many companies are using the
 DAGMAR marketing model to deliver their
motive to the people. Through this approach, companies could easily deliver
their message to consumers. Hence, it played a vital role in building
 brand
equity
 and corporate image.
Thus, the DAGMAR approach has a lot of perks to offer to the companies.
This model increases the productivity of a company's communication efforts.
It helps a company save money compared to salesperson advertising.
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22. Defining the Advertising Goals
Often companies consider advertising and marketing goals the same.
Advertising is a part of marketing that deals with brand image. Although
they aim to generate sales, in reality, they differ from each other.
Therefore, it is important to define the advertising goals of the company.
And, to define them, they must clearly understand what they want to
achieve from this advertisement.For example, a soap detergent
company wants to increase its sales from 10% to 15%. So, their
advertising goal will highlight that their detergent is better than other
companies.
Measuring advertising results refers to
systematically analyzing and evaluating a particular advertisement.
First, it helps the company to understand the effectiveness of its
advertisement. Then, it answers questions like how many customers
saw their ads, the number of leads and sales generated, and other
similar questions
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23. DAGMAR : MEASURABLE
OBJECTIVES
For a promotional campaign, there must be an
objective, which is measurable.
e.g. a YELLOW PAGE/ JUST DIAL 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.
The measurable objective must be written, clear &
unambiguous.
e.g. Increase awareness of our store by 10%
- not any vague statement
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24. DAGMAR : BENCHMARK CHANGE
The objectives/ GOALS should specify how much
change or movement is being sought such as
increase in awareness levels, creation of
favorable attitudes or number of consumers
intending to purchase the brand, etc.
A benchmark is also a prerequisite to the ultimate
measurement of results, an essential part of
any planning program and DAGMAR in particular.
e.g. Increase awareness of our store from the
current level of 20% to 30%
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25. DAGMAR : DEFINED TARGET
AUDIENCE
Not everyone is going to buy your product. So,
CRUCIAL TO identify your target audience, to
whom you are going to aim your ad
campaign.
E.G. If you are selling premium cars. High value
consumer durables you should target customers
who have high net worth and are sophisticated.
The specific goal may be defined as follows:
e.g. Increase awareness of our store from the
current level of 20% to 30% among the
owners of product A 25

26. DAGMAR : DEFINED TIME PERIOD
An advertising campaign CANNOT run for eternity.
There should be 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 to test the campaign, make
amendments, if required to the campaign.
E.G. Increase awareness of our store from the
current level of 20% to 30% among the owner
of product X within the next six months.
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27. DAGMAR : Communication
process
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.
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. In what way does it differ from its competitors? Whom
is it supposed to benefit?
The third step is the attitude (or conviction) step.
The final step is to take action i.e. enact the buying
decision. This step motivates the customers to buy the
product.
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29. DAGMAR Process
AWARENESS:
Awareness of the existence of a product is
necessary before the purchase behavior can be
expected.
Awareness needs to be created, developed,
refined or sustained, according to the
characteristics of the market and particular situation
facing an organization at any point of time.  
 
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30. DAGMAR Process
Comprehension
 
Awareness on its own may not be sufficient to stimulate a
purchase.
In attempting to persuade people to try a different
brand, it may be necessary to compare the product with
other products and provide an additional usage benefit,
such as cost reduction e.g. Pharma products,
Automobiles, Beverages, Telecom, etc
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31. DAGMAR Process
Conviction
Buyers are convinced that a particular product in the class should be
tried at the next opportunity. To do this, audience’s beliefs about the
product have to be moulded and this is often done through
messages that demonstrate the product’s superiority over a
rival. Here, the customers will decide whether they should buy the
product or not. They often make choices through comparison with
similar products. Then, if the customer finds the product interesting
and worthy, they might try it. At this stage, the advertisement tries
to convey its message to the target audience.
For example, in
 2020, Facebook Meta, another technology company,
projected an advertisement where two users helped a lady to start her own
business. Slowly, many users joined hands and helped her grow her shop with
the help of Facebook.
For example, before launching a new iPhone, Apple, a company specializing in
consumer electronics, tries to push its ads among the target audience. As a
result, it creates hype about the product. So, the customer buys the product if
they find it interesting.
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32. DAGMAR Process
 
Action
Communication must finally encourage buyers to
engage in purchase activity, and this really
tests the success of an advertisement
campaign.
MEASURES: Use of toll free numbers, direct
mail activities and coupons.
E.g. Tupperware, Aqua Guard, are famous in
Indian cities as a result of its personal selling
efforts.
 
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33. CREATIVE ADVERTISING
STRATEGY
 
Creative strategy:
The following are some things you would want to
cover:
- How are we going to present the message?
Through a celebrity?
- A brand character?
- Any Musical touch to communicate emotion? If so,
what songs?
-HAMARA BAJAJ
-YMCA FOR RELIANCE 3G
-TIC TAC
-AIRCEL – conectivity everywhere
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34.  
Identify your target audience AND then find the
best media, at the best time, to reach them.
One will get the best return on advertising by
conveying action induced/ specific message in
front of people through appropriate media during
the decision making and buying cycle.
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MEDIA STRATEGY

35.  
Illustrative budgeting methods:
Task method of budgeting : Spend what it takes to
do the job Right
Annual allocation. Start with a base, and increase
it by x% yearly
Percent of sales: Aggressive marketers, especially
in consumer markets, can spend 10-15% of sales on
advertising
Business to business environment : 10% of sales
would be considered aggressive, on average.
Industry Benchmarks : Matching Competitors levels
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BUDGET
ALLOCATION

36. Example
In
 2014, a soft drink company, Coca-Cola, devised a twist
advertisement campaign to deliver a beautiful message. They
manufactured coke bottles that would open when two people twisted
them. Earlier, people were shy to make friends, but after this initiative,
they had to talk with others to open the bottle. Here, Coca-Cola
targeted college students.
Thus, there were many coke vending machines installed in Australian
institutions. Students brought the coke bottle but were confused with
the opening system.
 After realizing the twist, they reached out to
another classmate for help. With this process, they started making
friends.
In this manner, the company hit its advertising objective of
encouraging coke sales by creating bonds between people. As a result,
they were successful in achieving their campaign goals.
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38. What is Primary Demand
Advertising?
Primary demand advertising is
 
promoting any product or category in
general.
The main objective of this type of advertising is to
 
educate consumers
on the existence and benefits of new products 
or to draw newfound
attention to existing product categories.
It is usually opted for by brands that have
 
products within the earlier
stages of a product life cycle, 
but it has also been successfully used in
various
 campaigns to 
revive
 
the popularity of a product.
Because the technological world is growing rapidly, tech companies
often benefit from
 
educating consumers with primary demand
advertising before
 
reaching for selective demand advertising.
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39. Primary demand advertising is also most
commonly
 
funded
 by a group or union
 
of
organisations in a shared industry instead of being
funded by a single brand.Primary demand
advertising can allow market shareholders to reap
the following benefits:
overall
 
market expansion
larger
 
product awareness 
or interest, and
a more
 
informed
 
customer base.
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40. What is Selective Demand Advertising?
Selective demand advertising is
 
promoting a specific
brand 
of an existing product or product category.
It aims to
 
position
 
a brand in a positive light compared
to others and
 
create a desire for what that specific
brand has to offer. 
Unlike primary demand
advertising, its purpose is to expand 
one brand's
share
of the market,
 
not the market as a whole.
This type of advertising is
 
used by brands that are
competing with others 
in an already established
market and is used to
 
persuade 
consumers to buy their
product over another brand's.
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41. For example, the car rental brand
 
Avis 
ran a
campaign to level the playing field between its brand
and competitor Hertz with the comparative
slogan
 
“We Try Harder.”
Selective demand advertising is funded and owned by
the brand that is campaigning with it. Because of
this, it receives the full
 
ROI 
for the
initiative.Selective demand advertising provides the
following benefits:
expanded
 
market share
heightened
 
customer loyalty, 
and
increased
 
sales and revenue.
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