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Advertising MANAGEMENT

Advertising MANAGEMENT. Lecture 2 CAMPAIGN MANAGEMENT Prof Soumitra Mookherjee. PRODUCT – MARKET ANALYSIS. Overview

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Advertising MANAGEMENT

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  1. Advertising MANAGEMENT Lecture 2 CAMPAIGN MANAGEMENT Prof SoumitraMookherjee

  2. PRODUCT – MARKET ANALYSIS Overview Whether you are starting a new business or launching a new product, conducting a marketing analysis is the first step. Knowing the market's needs and how it is currently serviced provides you with key information that is essential in developing your product/service and marketing plan. Although the quality of the product is critical, the company who wins the marketing game generally will capture the larger share of the market. It is critical to identify your target markets/ segments

  3. PRODUCT – MARKET ANALYSIS Conducting a market analysis will help firms to: Prepare to enter a new market Launch a new product/service Start a new business

  4. PRODUCT – MARKET ANALYSIS The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats The following dimensions of a market analysis may be useful : Market size and future prospects Market growth rate and profitability Industry cost structures Distribution channels Market trends Key/ Critical success factors

  5. Selling/ advertising objectives In the matter of advertising objectives 2 distinct schools of thought emerge: The Sales School The Communication School

  6. SALES SCHOOL Many managers view sales as the only meaningful objective for promotional plans. Their view is that the only reason an organization spends money on promotion is to sell its products or service. Sales turnover is the first and most obvious measure In the consumer markets and the FMCG sector, market share movement is more sensitive barometer of performance.

  7. COMMUNICATION SCHOOL The aim of a communication campaign is to enhance the image or reputation of an organization or product. Consequently, promotional efforts are seen as communication tasks, such as the creation of awareness or positive attitudes towards the organization or product. Thus the communication objectives basically seek to move people to action and induce them to purchase the products.

  8. COMMUNICATION SCHOOL: INFLUENCE Cognitive: This stage basically involves communication that deals with cognition or knowledge. It deals with creating knowledge, perception, ideas and awareness Affective: This stage deals with the emotions or the affections. Conative/ behaviour:. In this case the person on the basis of his preference or dislike for the product would either purchase it or reject the product. e.g. A person wants to buy a TV set, he may after having understood his desire, collect different types of information and after having being convinced -finally make the purchase.

  9. COMMUNICATION SCHOOL: INFLUENCE E.g. A person wants to buy a TV set, he collects different types of information and after being convinced - make the purchase. Consumers develop relationships with their brands and products, which sustains the notion that a series of stages occur between the point of awareness and the point of product purchase. Effective advertising should sell, but should also communicate with the consumer on an emotional level.

  10. ADVERTISING CAMPAIGN An advertising campaign is a series of messages that share a single idea and theme which make up an Integrated marketing Communication (IMC). Advertising campaigns appear in different media across a specific time frame. The critical part of making an advertising campaign is determining a champion theme. The campaign theme is the central message that will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used for a substantial period.

  11. ADVERTISING CAMPAIGN Coordinated series of linked advertisements (broadcast usually through several media channels) that may last from a few weeks and months to years. Focus on a common theme Are directed at a particular segment of the population and Are aimed at achieving a specific objective (such as awareness or market share).

  12. ADVERTISING CAMPAIGN An advertising campaign is a specific course of action designed to advertise a company, cause, or product that employs coordinated series of marketing tools in order to reach the target audience. The end purpose of any ad campaign is to boost awareness and generate demand. The structure of the advertising campaign will often depend on the nature of the product or cause and the target audience. Both print and electronic media are often used to generate attention and enthusiasm for the subject of the campaign. In the modern era electronic media refers to television and radio broadcasts, and includes online banner ads, text messaging, and email advertisements.

  13. ADVERTISING CAMPAIGN PRINT MEDIA: Advertisements placed in newspapers and magazines are a time-honored method of reaching the target audience. In order to ensure that the desired consumers are reached, the print advertisements will often appear in print media that is geared toward those consumers. ELECTRONIC MEDIA: Television and radio commercials remain a viable means of attracting the attention of buyers and creating demand for various products and services. CREATE AN IMPRESSION AND ENTICE POTENTIAL CONSUMERS

  14. ADVERTISING CAMPAIGN Many companies design advertising campaigns to current clients that rely on NEWER tools as text messaging or email advertising. For example, a telephone SERVICE PROVIDER may notify existing customers of upcoming specials on bundled services by sending a text message to the client’s cell phone. As an alternative, the service provider may notify the customer of upcoming sales or new products and services via email. REAL ESTATE FIRMS/ HEALTH CARE PRODUCTS: COMMUNICATE VIA E-MAIL AND SMS ALERTS ON NEW UPCOMING PROJECTS, ADDITIONAL SERVICES/ PRODUCT HIGHLIGHTS

  15. CAMPAIGN PLANNING PROCESS Effective campaigning means using the minimum amount of effort to achieve the maximum impact. Planning is critical to making your campaign focused and effective.  External factors play a significant role in campaigns. Try to predict how the external environment or the area you are working in might change. Resources: Can be organised in many different ways and the people you are seeking to change can be influenced in many different ways. Your campaign may not succeed or have the impact you desire if you haven’t given sufficient thought to planning

  16. CAMPAIGN PLANNING PROCESS Four critical stages of good campaigning are:

  17. CAMPAIGN CYCLE Campaigns are viewed cyclically. Campaign planning is better understood using the Campaign Cycle concept

  18. CAMPAIGN PLANS: CRITICAL COMPONENTS Hypotheses - what are you testing? Objectives - what are you hoping to achieve? Make sure objectives are SMART Target audience - who are you targeting? Try to be as specific as possible. Message - what's your offer and why would the customer take it up? Response - how do you want people to respond? Are you pointing them to a specific website or phone number? Are you including a reply paid envelope? Budget - what is the overall budget for this campaign and what response do you need to achieve for a positive ROI? Timings - when is the campaign going to launch and when will the offer end? Measurement - how are you going to measure the success of the campaign? Measures could include direct responses (ie: phone calls, website visits) as well as more sophisticated measures such as ROI.

  19. ADVERTISING PLAN: KEY COMPONENTS The components of Advertising Plan are : Identifying target Audience/ Segment Setting up Advertising Objectives Finalize Advertising Budget Create Message Strategy Develop Media Strategy Create Image and personality of products

  20. 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.

  21. UNAWARE AWARE COMPREHENSION & IMAGE ATTITUDE ACTION Communication Process under DAGMAR MODEL DAGMAR APPROACH

  22. 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?

  23. DAGMAR : Communication process The third step is the attitude (or conviction) step. The action phase involves some move by the buyer such as trying a brand for the first time, visiting a showroom, or requesting information. The important concept of the approach is that the advertising goal be specific. It should be a written, measurable task involving a starting point, a defined audience, and a fixed time period.

  24. 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

  25. 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%

  26. 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

  27. 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 td 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.

  28. DAGMAR : MEASURING RESULTS 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.

  29. DAGMAR : MEASURING RESULTS

  30. DAGMAR : MEASURING RESULTS 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 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

  31. DAGMAR : MEASURING RESULTS 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.

  32. 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

  33. MEDIA STRATEGY 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.

  34. BUDGET ALLOCATION 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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