Advertisement management

Advertisement
Management
Copyright © 2008 - 2012
managementstudyguide.com. All rights
reserved.

Objective
Describe in brief the history of Advertising
Explain what is Advertising Management
Describe the Advertising Management Process
Describe the various media options
Differentiate between Left – Right Brain Ads
Explain the Persuasion Process of Advertising
Explain the various Strategies for Demand Generation
Describe the Types of Advertising
Explain what is Global Advertising
Explain what is Relationship Marketing
Copyright © 2008 - 2012
reserved.

Introduction
Look at the various advertising campaigns used by Coca Cola through different decades.
1880
1900
1920
1960
1980
2000
2010
Copyright © 2008 - 2012
reserved.

Introduction
2010
2000
1980
1960
1920
1900
1880
Do you notice that the style
and approach of the
campaign has kept on
changing over the years?
So, what is advertising? Why
does it change? What is
advertising management?
Let us try to understand more about
advertising and its management and
gain answer to the above questions.
Copyright © 2008 - 2012
reserved.

History of Advertising
In the olden days, there
were three forms of
advertising that were used
prior to the time advent of
the printing press.
They were:
Advertising has long
been used since the
olden days. However,
it was not the same
form of advertising as
seen today.
Copyright © 2008 - 2012
reserved.

History of Advertising
Trademarks
Trademarks were used by
various craftsmen. The
craftsmen placed such
individual marks or
trademarks on goods such as
pottery, clothes etc. As the
popularity of an artisan spread
by word of mouth, the buyers
used to identify and buy
products by using the
distinctive mark.
Signs
Signs were placed beside the
shop on a wall. Each shop
had an inscription on the
wall next to entrance. This
sign would tell the passerby
of the wares or service
offered by the shop,
whether it sold wine,
pottery, bread etc.
Town Criers
Town criers were also used for
advertising. Men would paid to
hold placards and to move through
the streets to announce to the
citizens of important news and
other public events.
Copyright © 2008 - 2012
reserved.

What is Advertising
The word ‘Advertising’ is derived
from the Latin word, ‘Advertrire’
which means “to turn to”.
Thus, advertising is any paid form of
non-personal presentation and
promotion of ideas, goods or
services by an identified sponsor.
Copyright © 2008 - 2012
reserved.

What is Advertising
It is an extremely powerful tool for
communicating to the masses and hence to
potential customers.
It has proven to be a vital marketing tool to
help sell goods, services, images and ideas
by using channels of information and
persuasion.
Copyright © 2008 - 2012
reserved.

What is Advertising Management
The process of the complete planning, execution, control and monitoring of
advertising campaign is known as advertising management.
Thus, advertising management involves:
Planning
Decision-
making
Control
Copyright © 2008 - 2012
reserved.

Formulating
Budgets
Advertising Management Process
The following are the steps of the advertising management process:
Copyright © 2008 - 2012
reserved.

Steps in Advertising Campaign Management
Steps in
Advertising
Campaign
Management
Review communication market analysis
Copyright © 2008 - 2012
reserved.

Framework of Advertising Planning and Decision-Making
Marketing Programme
Integrated Marketing Company Plan
Advertising Plan
Implementation
Situation Analysis
Copyright © 2008 - 2012
reserved.

Functions of Advertising
Functions of advertising can be divided into two types:
Functions of
Advertising
Primary
Functions
Secondary
Functions
Let’s look at each in detail.
Copyright © 2008 - 2012
reserved.

Primary Functions
To increase Sales
To persuade Dealers
To help Dealers
To increase Per capita
use
To increase
receptiveness of new
product or model
To provide insurance
for manufacturer’s
business
To build
confidence in
Quality
To eliminate
seasonal
fluctuations
Copyright © 2008 - 2012
reserved.

Secondary Functions
To encourage salesmen
and lend them moral
support
To furnish information
To impress executives
To impress workers
To provide a
feeling of security
Copyright © 2008 - 2012
reserved.

Role of Advertising
Advertising plays several roles and caters to various needs of both the consumer as
well as the manufacturer. Some of the roles that advertising fulfils are:
Role of
Advertising
Let’s look at each in detail. Copyright © 2008 - 2012
reserved.

Role of Advertising
Role of
Advertising
Informing
• Inform the market
about a new product
• Suggest new uses for a
product
• Inform the market of a
price change
• Explain how the
product works
• Describe available
services
• Correct false
impressions
• Reduce buyers’ fears
• Build company image
• Increase consumer
awareness
• Create positive brand
images
• Increase demand for
existing brandsCopyright © 2008 - 2012
reserved.

Role of Advertising
Role of
Advertising
Persuading
• Help to build brand
preference
• Encourage switching
to your brand
• Change buyers’
perception of product
attributes
• Persuade buyers to
purchase now
• Persuade buyers to be
open to a sales call
• Persuade customers to
try advertised
products and services
Copyright © 2008 - 2012
reserved.

Role of Advertising
Role of
Advertising
Reminding
• Remind buyers about
the future need of the
product
• Remind buyers where
to buy it
• Keep it alive in the
buyers’ mind during
off seasons
• Keeps a company’s
brand fresh in the
consumer’s memory
Copyright © 2008 - 2012
reserved.

Role of Advertising
Role of
Advertising
Assisting Other
Company Efforts
• Acts as an integral
and important
aspect of the
marketing
communications
strategy
• Facilitates other
company efforts in
the marketing
communications
process
Copyright © 2008 - 2012
reserved.

Impact of Advertising
There are various impacts that advertising has on different areas. Advertising has an
impact on a country’s economy, society, culture, and political system.
Copyright © 2008 - 2012
reserved.

Key Advertising Personnel
Client
Marketing
Manager
Traffic
Manager
Creative
Director
Account
Executive
Copyright © 2008 - 2012
reserved.

Key Advertising Personnel
Traffic
Manager
Creative
Director
Creative
Executive
Media
Buyers &
Planners
Copyright © 2008 - 2012
reserved.

Institutions Involved in Field of Advertising
Government
Competition
Control Inst.
Ad Agency
Media
Research Agency
Facilitating Inst.
Advertiser
Market / Consumer Behavior
Copyright © 2008 - 2012
reserved.

Advertising Objectives
There are several categories of advertising objectives that guide advertising strategy:
What features and
benefits should to be
emphasized? What
emotions to be evoked
in the consumer for the
product?
Copyright © 2008 - 2012
reserved.

Developing Advertising Objectives
There are three important considerations to be kept in mind while developing
advertising objectives. They are:
Behavioral Decisions:
These are the behavioral decisions that the
advertising must influence.
Target Segment:
The target segment considered while
developing the advertising objectives.
Decision Making Process:
Decision making process should occur before
the communication to influence behavior.
Copyright © 2008 - 2012
reserved.

Defining Media
Media can be defined by considering the following aspects:
Frequency
Cost per
Thousand
Pulsing
Reach Gross Rating
Points (GRP)
Flighting
reserved.

Defining Media
Frequency
Cost per
Thousand
Pulsing
Reach Gross Rating
Points (GRP)
Flighting
Reach is the number of different persons or households that are
exposed to a particular media schedule at least once during a
specified time period.
Copyright © 2008 - 2012
reserved.

Defining Media
Frequency
Cost per
Thousand
Pulsing
Reach Gross Rating
Points (GRP)
Flighting
Frequency is the number of times within the specified time
period that an average person or household is exposed to the
message.
Copyright © 2008 - 2012
reserved.

Defining Media
Frequency
Cost per
Thousand
Pulsing
Reach Gross Rating
Points (GRP)
Flighting
Gross Rating Points (GRP) is the reach multiplied by the average
frequency.
Copyright © 2008 - 2012
reserved.

Defining Media
Frequency
Cost per
Thousand
Pulsing
Reach Gross Rating
Points (GRP)
Flighting
Cost Per Thousand is the calculated cost it takes to reach one
thousand people in the target audience from that particular
media vehicle.
Copyright © 2008 - 2012
reserved.

Defining Media
Frequency
Cost per
Thousand
Pulsing
Reach Gross Rating
Points (GRP)
Flighting
Flighting refers to advertising for some period, followed by a gap
with no advertising, and then followed by a second flight.
Copyright © 2008 - 2012
reserved.

Defining Media
Frequency
Cost per
Thousand
Pulsing
Reach Gross Rating
Points (GRP)
Flighting
Pulsing is a continuous advertising at low weight levels reinforced
periodically by waves of heavier activity. Pulsing uses the strength of
continuous advertising and flights to create a balanced scheduling strategy.
Copyright © 2008 - 2012
reserved.

Media Options - Direct Marketing
Direct Marketing aims to reach a highly
targeted group within a specific
geography, with optimum cost-efficiently
as possible.
Copyright © 2008 - 2012
reserved.

Disadvantages
• Consumer Avoidance:
Consumer may tend to
throw away the mail
unopened. It has been
found that almost half of all
mail gets thrown away.
• Image: The mailers are
generally considered to be
“junk mail”.
• Timing: It is a time
consuming process as it the
bulk mail takes 3-10 days to
be delivered.
• Cost: The mailing costs
continue to rise.
• Reach: It is difficult to get
new customers.
Advantages
• Targetability: It can target
specific groups by location,
product usage, interests etc.
• Cost: It is a cost-efficient
option. The controlling costs
are generally very low.
• Timing: There are no
outside media deadlines.
• Versatility: It is versatile as
it can convey a personalized
and detailed message.
• Reach: It has a reach
towards all households.
• Measurement: Its response
rate can be easily measured.
• Environment: It provides a
tangible environment and
hence, saves consumer
time.
Copyright © 2008 - 2012
reserved.

Media Options - Newspaper
Newspaper is a mass media option used
to reach adults who are above 35 years
of age with a complex, detailed message
or to advertise product.
Copyright © 2008 - 2012
reserved.

Disadvantages
• Cost: It is a bit costlier to
advertise in leading
newspapers that have a wide
reach.
• Reach: The reach is limited
only to the consumers who
may read that particular
newspaper.
Advantages
• Reach: It has a reach of a large
mass audience.
• Delivery Form: It has a tangible
form of delivery.
• Prestige: It is a traditional
medium with wide acceptance.
People tend to consider
newspapers to be a credible
medium. Its readers are usually
people with higher income and
education levels.
• Versatility: It gives the option to
choose the ad size and timing.
• Message: The ad can be placed
using illustrations as well as a
detailed message.
• Targetability: It can reach
various target customers as there
are various newspapers that
cater to different sections
through different zone editions.
Copyright © 2008 - 2012
reserved.

Media Options - Radio
Radio as a media option is used to reach
a narrow target with frequency to build
awareness.
Copyright © 2008 - 2012
reserved.

Disadvantages
• Reach: It is not a suitable
option to reach out to broad
demographics.
• Clutter: The message may
get cluttered due to the
presence of too many
advertisers.
• Senses: The ad can only be
audio and there is n
accompanying visual to
capture consumers’
attention.
Advantages
• Frequency: It helps to
create a top of the mind
awareness in the customer’s
mind.
• Demographically Selective:
The target can be selected
by combine age or sex and
the listening preferences to
better target.
• Emotional: It helps to
create a one-on-one
relationship.
• Timing: It provides for a
flexible message delivery
due to the option of 24-
hour air time
• Cost: The rates are
negotiable and prove to be
an efficient, low cost option.
Copyright © 2008 - 2012
reserved.

Media Options - Cable
Cable is used to reach narrow target
groups with single exposure in chosen
geography.
Copyright © 2008 - 2012
reserved.

Disadvantages
• Reach: It has a partial
reach. It is not suitable for
rural areas where cable has
not reached.
• Clutter: The message may
get cluttered due to the
presence of too many
advertisers and the
availability of high air-time.
• Measurement: It is difficult
to measure due to the
limited research in this
medium.
Advantages
• Growing Medium: It is a
growing medium with
increasing subscribers.
• Frequency: It helps to
create a top of the mind
awareness in the customer’s
mind.
• Senses: It helps to use both
visual and audio in the ads.
• Cost: It is a low-cost local
medium.
• Geographically Selective: It
can be customized to target
particular market areas.
• Demographically Selective:
It can be used to target
specific consumer groups.
Copyright © 2008 - 2012
reserved.

Media Options - Outdoor Billboard
An outdoor billboard is a mass reach
medium designed to reach adults who
are above 18 years of age with a
“reminder” or “directional” message.
Copyright © 2008 - 2012
reserved.

Disadvantages
• Impact: It is susceptible to
minimal viewing by
consumers and also low
recall by consumers.
• Targetability: It is not
efficient for small, narrow
target audiences.
Advantages
• Cost: It is a low-cost option.
• Reach: It has a large mass
audience appeal.
• Environment: It can be
used to advertise using
different sizes to demand
attention. The billboards are
on display 24-hours and 7
days a week.
• Frequency: It is highly
visible.
• Versatility: It can be used
to target specific geography
with a variety of messages.
Copyright © 2008 - 2012
reserved.

Other Media Considerations
Yellow Pages
• It serves like a search engine
which people look for.
• The display costs of ads may
be quite high.
• It has a reduced reliance due
to other information search
tools such as Internet.
Telemarketing
• It has a fixed number of
outbound call objectives
that are decided ahead of
time.
• It requires the motivation of
staff through direct
incentives.
• It is crucial to train staff on
handling rejections.
Event Marketing
• It helps to build relationships.
• There are bleak chances of sales
at the time of event. The event
itself may generate leads only.Copyright © 2008 - 2012
reserved.

Media Reach Approaches
There are various approaches that can be used to reach the different segments of the
masses such as:
Controlled Coverage:
This uses niche media to reach out to only a
specific desired segment of the masses.
Example: Trade magazines.
Customer Selection:
This uses mass media to reach out directly to the
masses.
Example: Television.
Copyright © 2008 - 2012
reserved.

Left – Right Brain Ads
There are two types of ad development approaches used:
Left Brain
Advertisement
• The “Left brain”
advertisements
are created to
appeal to the
logical, rational
side of brain.
• The left side of
the brain deals
with numbers,
letters, words,
and concepts
Right Brain
Advertisement
• The“Right-
brain”
advertisements
are created to
appeal to the
emotional side
of brain.
• The right side of
the brain deals
with abstract
ideas, images,
and feelings.Copyright © 2008 - 2012
reserved.

Persuasion Process of Advertising
The Persuasion Process of Advertising works through a variety of advertising effects
such as follows:
All of the above effects helps create a positive attitude towards the brand and leads
to a desirable purchase behaviour.
Copyright © 2008 - 2012
reserved.

Push Technique
The Push Technique is used to push
the product into the market. There
are various methods used for
pushing a product such as use of:
• Displays, racks, stand at point of
sale
• Trade deals, special displays
• Dealer premiums, prizes, gifts
• Advertising materials, mats,
inserts
• Push money
• Collaterals, catalogs, manuals
• Trade shows, conventions,
meetingsCopyright © 2008 - 2012
reserved.

Pull Technique
The Pull Technique is used to pull
consumers towards product by directly
offering something to the consumers.
There are various methods used for
pulling consumers such as use of:
• Free Sampling
• Free trials
• Discount Coupons
• Premiums or gifts
• Contests, sweepstakes
• Price-off deals
• Refunds/rebates
• Frequency/loyalty programs
• Point-of-purchase advertising
Copyright © 2008 - 2012
reserved.

Push Versus Pull Techniques
The major difference between the push and pull techniques is the manner in which
the information of the product flows.
• In the push technique, the information flows downwards from the producer to
the consumer.
• Whereas in the pull technique, as the consumers are directly pulled the
information moves upwards from consumer to the producer as shown in the
figure.
Copyright © 2008 - 2012
reserved.

Strategies for Demand Generation
In the increased consumption
strategy the market dynamics
are such that the sales
increases due to growth in
demand product form
expansion. The strategy
involves product expansion
incorporating new use
applications.
In the defensive strategy the
market dynamics are such
that the sales increases due
to growth in demand because
of old customers staying loyal
to the brand and buying the
product. The strategy
involves recalling important
brand features, reinforcing
user experience and through
consumer promotions.
In the offensive strategy the
market dynamics are such that
the sales increases due to
growth in demand because of
new customers buying the
product. The strategy involves
increasing primary demand as
well as secondary demand.
Offensive Strategy
There are various strategies used in advertising for generating demand such as
follows:
Copyright © 2008 - 2012
reserved.

Hierarchy of Effects Model - DAGMAR
Let's take a look at
the various
hierarchical effects
that are achieved
through DAGMAR.
DAGMAR is a hierarchy of
effects model that is used
to achieve an effect in
consumers from
‘unawareness’ to ‘action’.
Hence, DAGMAR Approach is
used as a communication task
to be accomplished amongst a
defined audience in a
specified period of time.
Copyright © 2008 - 2012
reserved.

Hierarchy of Effects Model - DAGMAR
Cognitive
Aware
Comprehension & image
Attitude
Action
Unaware
Affective
Behavioral
Copyright © 2008 - 2012
reserved.

Purpose of DAGMAR
The following are the various purpose of DAGMAR:
Help to
perform the
complete
Selling
function
•
Announce a
special reason
for ‘buying
now’
•
Helps to create
awareness of
the brand
•
Help to tie in
with some
special buying
event
•
To create brand
image and
remind people
to buy
•
To help correct
false
impressions or
misinformation
• • • • •
Copyright © 2008 - 2012
reserved.

Limitations of DAGMAR
There are a few limitations of DAGMAR which are as follows:
Limitations
This model does not help to measure
sales.
It only gives a broad outline which
does not specify details.
Measurement is a problem in this
model.
There are other factors that may affect
goals.
The model may not hold good in all
situations.
Copyright © 2008 - 2012
reserved.

Types of Advertising
••••
Standard Advertising
Primary & Selective Demand Advertising
Co-Operative Advertising
Social Advertising
Copyright © 2008 - 2012
reserved.

The aim of the standard type of advertising is to
persuade consumers to purchase certain products and
services.
The motive is to create a need and desire for a product
in the consumer and then sell the product to him.
Copyright © 2008 - 2012
reserved.

Primary demand advertising is designed to stimulate
demand among consumers for a category of product.
Examples: silk & products made from silk.
Selective demand advertising is designed to stimulate
demand for individual brands. Example: silk cloth of a
particular company.
Copyright © 2008 - 2012
reserved.

Co-operative advertising promotes products of two or
more firms. The firms whose products are advertised
share the cost of advertising.
Example: A manufacturer and a few retailers may
advertise for a product and share the cost of
advertising.
Copyright © 2008 - 2012
reserved.

Social Advertising
Social Advertising
Social advertising is a type of public relations
advertising and as such is usually for a non-product and
non-profit purposes. The main focus is on some matter
of social importance.
Copyright © 2008 - 2012
reserved.

Manner of Distribution
There are various manners in which the
advertising may be scheduled and
presented the consumers such as:
• Continuous schedule: In a continuous
schedule, the advertisement is
scheduled to appear continuously in
front of the consumer.
• Flighting schedule: A Flighting schedule
calls for advertising for some period,
followed by a gap with no advertising,
and then followed by a second flight.
• Pulsating schedule: A Pulsating schedule
is continuous advertising at low weight
levels. Such advertising is reinforced
periodically by waves of heavier activity.
Pulsating uses a mix of both continuous
and flighting schedules and uses the
advantages of both to create a balanced
scheduling strategy.
Copyright © 2008 - 2012
reserved.

Budgeting Methods
Objective-and-Task Method
Competitive Parity Method (Match Competitors Method)
Affordability Method
Percent-of-Sales Budgeting
There are various methods used for deciding the budget of the advertising.
They are:
reserved.

Competitive Parity Method
(Match Competitors Method)
Percent-of-Sales BudgetingPercent-of-Sales Budgeting
In this method, a brand’s advertising
budget is set by a company by simply
deciding the budget as a fixed percentage
of past or anticipated sales volume of the
brand.
Copyright © 2008 - 2012
reserved.

The objective-and-task method is
considered to be the most sensible and
defendable advertising budgeting method.
In this method, it is decided as to what
specific role the company expects
advertising to play for a brand and the
company then sets the budget accordingly.
Copyright © 2008 - 2012
reserved.

Competitive Parity Method (Match Competitors Method)
In this method the budget for a brand is
decided by setting advertising budget by
basically following what competitors are
doing.
Copyright © 2008 - 2012
reserved.

In this method, the budget is decided as only
the funds that remain after budgeting for
everything else are spent on advertising.
This method is generally followed only by the
most unsophisticated and impoverished firms.
However, in real life it has been found that
usually affordability and competitive
considerations are always taken into account
and influence the budgeting decisions of all
companies.
Copyright © 2008 - 2012
reserved.

Global Advertising
Advertising has seen a gigantic growth over the decades.
Advertising has gone through five major stages of
development: domestic, export, international, multi-national,
and global.
In present day, global advertising is also gaining ground and is
claiming as much importance for a brand as its domestic
advertising.
The approach to global advertising is slightly different from
that to domestic advertising. The following are the three
primary and fundamentally different approaches to the
development of global advertising executions:
• Transit ads are used as they can reach a target audience in
well defined geographic areas
• The use of web-based directories because they offer
convenience and speed
• The use of event sponsorship to target well-defined
audiences
Hence, we can see that global marketing forces companies to
communicate and think globally.Copyright © 2008 - 2012
reserved.

Key Characteristics of Global Advertising
The following are some of the key characteristics of global advertising:
High coordination across markets
and Less local autonomy
Knowledge is centralized to some
extent
Global product teams and ad
agency
Systematic development of inter-market
segments
Cultural relativity
Copyright © 2008 - 2012
reserved.

Phases of Global Marketing
The following are the different phases of global marketing:
Market extension
International
advertising is secondary
to domestic advertising.
Example: P&G, Polaroid,
Whirlpool
Multi-domestic
International
advertising is equivalent
to domestic advertising.
Example: Ford prior to
1996
Global
There is no difference
between international
advertising and
domestic advertising.
Example: IBM, Coke,
McDonalds
Copyright © 2008 - 2012
reserved.

Challenges in Global Advertising
There are various challenges that are faced in global advertising such as:
Foreign-exchange
Shifting borders
Technological pirating
Cultural differences
Unstable governments and Corruption
Copyright © 2008 - 2012
reserved.

Relationship Marketing
Look at the expression given below.
Total
Revenue
Value of
Referrals &
Advertising
Costs
Customer
Value
Hence, we see that for every new customer that a company gets, it has to spend
some amount in referrals as well as advertising. It has been found that on an average
it costs 5 times more to get a new customer than retain one.
So, a marketing strategy that is employed by almost all companies is that of
relationship marketing or the strategy of growing relationships with one’s existing
customers.
Copyright © 2008 - 2012
reserved.

It is important to identify your
customers. For this purpose, various
methods are used such as providing
an incentive to customers to identify
themselves and provide information.
It is important that the company
should define for itself as to how it
will use the collected information
before launching the program. The
company can then use the
information strategically to increase
quality of the relationship such as to
increase loyalty, sales or referrals.
Copyright © 2008 - 2012
reserved.

Differentiating the customers is as
important as identifying them. By
differentiating the customers, a
company can differentiate the value
that a particular customer holds for a
brand. It is crucial that a company
differentiates between its most
profitable customers who provide the
highest lifetime value and those with
the best growth opportunity who
offer the most unrealized future
value. It is also vital that the
customers should be differentiated on
the basis of their needs, desired
service level and the preferred
contact method.Copyright © 2008 - 2012
reserved.

It is also vital to make groups and
define buckets of similar customers to
make tailored action possible. It is
important to profile each segment
and define key elements to help
enhance the relationship such as for
more loyalty, more share of wallet,
more referrals, more positive word of
mouth.
Copyright © 2008 - 2012
reserved.

A key element of relationship
marketing is to relate to the customer.
It is important that a brand should
cater to individual needs. A company
can build relationships by using its
knowledge of the customer to alter
the way it treats the customer.
Copyright © 2008 - 2012
reserved.

Culture in Advertisement
• •
Culture plays an
important part in
advertising.
It is vital that the
advertisements are in-
sync with the culture of
the place or else they may
fail to have the impact
that they sought to have
on the consumers.
Let's take a look at how
culture can affect an ad
campaigns.
•
Copyright © 2008 - 2012
reserved.

Examples of Culture in Advertisement
Thus, we see that understanding the culture of a place is very important to design a
successful ad campaign that will be effective and appeal to the masses.
Pepsi’s “Come alive with
the Pepsi generation’
was translated into
“Pepsi brings your
ancestor’s back from
the grave” in China
The Coca-Cola name in
China was read as “Ke-
kou-ke-la” meaning
“Bite the was tadpole”
later changed to “Ko-
kou-ko-le” meaning
happiness in the mouth.
In Italy, Schweppes
Tonic water was
translated into
Schweppes Toilet
water”
Copyright © 2008 - 2012
reserved.

Segmentation
Segmentation is a crucial part of the advertising process. Segmentation is the
decision about which consumers the advertising should target.
The following steps should be performed to decide upon the market segmentation:
Identify
markets with
unfulfilled
needs
Determine
market
segmentation
Select market
to be targeted
Position the
brand through
marketing
strategies
Copyright © 2008 - 2012
reserved.

Steps of Segmentation Process
The following are the steps of the segmentation process:
Group consumers according to
their needs.
Group marketing actions, usually
the products offered, available
to the organization.
Develop a market/product grid
to relate the market segments to
the firms’ products and actions.
Select the product segments
toward which the firm directs its
marketing actions.
Take marketing actions to reach
target segments.
Copyright © 2008 - 2012
reserved.

Bases for Segmentation
Geographic Segmentation
State - region - country - climate
Demographic Segmentation
Age, sex, income, education, occupation, social class
Psychographic Segmentation
Activities, Interests & Opinions, Values & Lifestyles, Personality traits
Behavioristic Segmentation
Usage, loyalties. use occasions
Benefit Segmentation
Types of specific needs or wants to be satisfied.
Copyright © 2008 - 2012
reserved.

Invention of ROI
The advent of ROI instilled a new
confidence in companies to get a
chance to measure the outcome
of the advertising money that
they had spent.
ROI helped companies to actually attach
a figure to the impact that their
advertising was having on the
customers.
The invention of
“Return On
Investment” or
“ROI” brought about
a new wave in the
field of advertising.
Copyright © 2008 - 2012
reserved.

Case Study
H&G Inc. has been a sturdy player
in the field of Switchgears in
Europe for the last five decades. It
is currently ranked number one in
its field in several countries of
Europe. Much of its success is
attributed to its powerful
advertising campaigns. It has been
involved in international marketing
also but to a very small extent.
However, now H&G Inc. plans to
reinvent its image and present itself
to the US and Asian markets. H&G
Inc. faces tough competition from
the existing companies in those
countries who enjoy a large market
share in the field of switchgears of
the US and Asian markets.
1. What is the strategy that
you think H&G Inc.
should employ to
reinvent its image?
2. How can H&G Inc.
design a powerful
advertising campaign
that caters solely to the
US and Asian markets?
Copyright © 2008 - 2012
reserved.

Summary
In this module you learnt that:
The process of the complete planning, execution, control and monitoring of
advertising campaign is known as advertising management.
Advertising has an impact on a country’s economy, society, culture, and political
system.
The following are the three primary and fundamentally different approaches to the
development of global advertising executions:
• Transit ads are used as they can reach a target audience in well defined geographic
areas
• The use of web-based directories because they offer convenience and speed
• The use of event sponsorship to target well-defined audiences
Segmentation is a crucial part of the advertising process. Segmentation is the
decision about which consumers the advertising should target.
The following are the steps of the advertising management process:
• Advertising Strategy - Setting Objectives, Formulating Budgets, Creating Ad
messages & Selecting Ad Media and Vehicles
• Strategy Implementation
• Assessing Ad Effectiveness
Copyright © 2008 - 2012
reserved.

Advertisement management

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Advertisement management

Similaire à Advertisement management (20)

Plus de Gia Tri Tien

Plus de Gia Tri Tien (18)

Dernier

Dernier (20)

Advertisement management