all about advertising from marketing book

2. ADVERTISING
&
PUBLIC RELATIONS
PREPARED BY
UMAIR

4. “Advertising involves
communicating the
company’s or brand’s
value proposition by
using paid media to
inform, persuade and
remind consumers”

5. Public relation involves
building good relations
with various company
publics-from consumers
and the general public to
the media, investor,
donor and government
publics.

6. .

7. 15 minutes could save you 15% or
more on car insurance!

8. Until about ten years ago, GEICO
was a little known NICHER in the
auto insurance industry. BUT
NOW, thanks in large part to an
industry changing advertising
campaign featuring a LIKEABLE
SPOKES-LIZARD and an enduring
tagline, GEICO has grown to
become a major industry player.
MIRACLES OF ADVERTISING

9.  GEICO was created in 1936
 Initially, GEICO stood for Government
Employees Insurance Company

10. Targeted customer
o Govt. Employees
o Non-Commissioned Military
Officers
For nearly 60 years GEICO
relied on:
 Direct mail advertising
Telephone

11. • 1994 GEICO took Decision of
Expansion.
• To increase its Customer Base GEICO
hired Martin Agency an advertising
firm.
• 1995, GEICO spent $10million on
advertising and launch its First
national TV, Radio and Print ads.
• In 1996, Warren Buffet bought the
company and told the marketing
group to “speed things up”

13.  Fastest growing major auto insurer in the U.S with
growth of 8.9% in 2008.
 23,000 Employees Associates.
 Provide 24 hours service, 7 days a week, 365 days a
year.
 Geico has assets of over $24.4 billions.

14. At the time, when Competitors
were using serious and
sentimental pitches, GEICO to
make its advertising stand out
decided to deliver its PUNCH
LINE with HUMOR.
The creative approach worked
and sales began to climb.

15. Difficulties in pronouncing
GEICO.
Use of GECKO ( Green Lizard)
Pop Culture Brand Icon.
One of American’s top two
favorite Icon.

17.  Life Insurance
 Auto Insurance
 Motorcycle Insurance
 Home and Renter’s
Insurance
 Boat Insurance
 Umbrella Insurance

18.  Get a rate quote for your
new car, cycle, boat, or
home
 Access your current policy
 Make changes to your
policy
 Pay your premiums in full
or installments
 File a claim

20. To keep its advertising fresh &
entertaining, GEICO has added
several new mini-campaigns.
 Good news
 Caveman
 www . Goldengecko . Com
And many more!

21. Spots address the
difficulties of
getting drivers to
switch insurance
companies.

22. Even A
Caveman Can
Do It

23. Designed to bring younger buyers to
the GEICO web site by showing them
how easy it is to purchase insurance
online.

24.  To appeal young drivers, GEICO
launched an internet website at
which it invites people to post
their own 15 second ads.
 RESTRICTIONS:
 The ads must use gecko.
 They must be funny.

25.  Low rates- competitive rates and
extensive discounts could save you 15% or
more
 Great Service- can be reached night or
day 365 days a year by phone or online,
deal directly with GEICO- not insurance
agents, get claims settled quickly and
fairly
 Financial strength- will always have
resources to pay your claims

26. .

28. Double digit profits in
past 5-years.
Changed the face of the
Auto Insurance Industry.

29.  Geico News Letters
 Geico Direct Magazine
 Geico Commercial
 Geico Careers
 Geico Merchandising

32. Environmental Safety & Pollution
Prevention
GEICO is concerned about the environment
and requires selected auto body repair shops
to pass an environmental and safety training
program.

35. A Word from Our Sponsor
Gecko-mania Sweeps Country
The GEICO Gecko has
become a force to be
reckoned with in the
advertising world and
was voted America's
favorite advertising icon
in 2005. Our small green
friend has traveled the
country spreading the
good news about GEICO
and has captivated
audiences of all ages

36. 15 minutes could save you 15% or
more on car insurance!

37. Setting Advertising Objectives
Setting Advertising Budget
Developing Advertising Strategy
Evaluating Advertising campaigns

38. OBJECTIVESETTING
Communication
Objectives.
Sales
Objectives.
BUDGETDECISIONS Affordable
Approach.
Percent of
Sales.
Competitive
Parity.
Objective and
Task.
ADVERTISING
STRATEGY
MESSAGE
DECISIONS:
• Message Strategy.
• Message Execution.
MEDIA
DECISIONS:
• Reach, Frequency,
Impact.
• Major Media Types.
• Specific Media
Vehicles.
• Media Timings.
ADVERTISING
EVALUATION
Communication
Impact.
Sales & Profit
Impact.
Return on
Advertising.

40. A specific communication task to
be accomplished with a specific
target audience during a specific
period of time.

41. Classification of Advertising Objectives
 Informative Advertising
 Persuasive Advertising
 Reminder Advertising

42.  Communicating customers value
 Telling the market about a new product
 Suggesting new uses for a product
 Explaining how the product works
 Describing available services
 Building a brand and company image

43.  Building brand preference
 Encouraging switching to your brand
 Changing customer’s perception of
product attributes
 Persuading customer to purchase now

44.  Reminding consumer that product may
be needed in the near future
 Keeping it in consumer’s mind during
off-seasons
 Reminding consumer where to buy it

46. After determining the advertising objectives, the
company next sets its advertising budget for
each product.

47. “The dollars and other
resources allocated to a
product or company
advertising programme”.
Advertising
Budget

48. Advertising Budget mostly
depends on;
1. Product Life Cycle Stage
2. Market Share
3. Competitors
4. Product Differentiations
5. Type of Product/Market

49.  New product typically needs large
advertising budget to build awareness
and to gain consumer trial.
e.g. Olper’s flavored milk: Owsum
 Mature brand usually require lower
budgets as a ratio to sales.
e.g. Medora.

50.  Building the market or taking share
from competitors requires large
advertising spending than simply
maintaining current share.
 Low-share brand usually needs
more advertising spending as a
percentage of sales.

51. Brands in a market with many competitors
and high advertising clutter must be
advertised more heavily to be noticed above
the noise in the market.
e.g. Nokia, Samsung & LG Mobiles

52.  Undifferentiated brands may require heavy advertising
to set them apart.
e.g. Mortein
 In differentiated brands the advertising can only be
used to point out the differences to consumers.
e.g. head&shoulders

53.  Business to consumers(B2C)
firms tend to spend too much
on advertising.
e.g. Nestle.
 Business to business(B2B)
firms generally underspend on
advertising and rely too heavily
on their sales forces to bring in
orders.
e.g. Paracitamol Medicines.

54.  The strategy by which the company accomplishes
its advertising objectives.
 It consists of two major elements
1. Creating advertising message
2. Selecting advertising media

55.  Advertising or marketing clutter refers to the
large volume of advertising messages that the
average consumer is exposed to on a daily basis.

57.  It bothers consumers.
 It makes audience’ attention lost.
 It causes big problem for advertisers.

58.  MORE THAN 250 TV CHANNELS TO CHOOSE
FROM

59.  More than 40 radio channels

60.  MADISON & VINE
 CREATIVE CONCEPT

62. MESSAGE STRATEGY
 What is marketing strategy?
 To decide what general message will
be communicated to consumers.
 What is the main purpose of
advertising?
 The purpose of advertising is to get
customers to think about or react to
the product in a certain way.

63. MESSAGE STRATEGY(CONT’D)
 Message must be
 plain
 Straight Forward
 Advertising must be Appealed
something
 Meaningful
 Believable
 Must be distinctive from Competitor

64. The approach, style, tone, words
and format used for executing and
advertising message.

65.  Slice-of-Life
 Life Style
 Fantasy
 Mood or Image
 Musical
 Personality Symbol
 Technical Expertise
 Scientific Evidence
 Testimonial Evidence

66.  Slice-of-Life
 This shows one or more persons using
the product in a normal setting.
 e.g.Nido

67.  Life Style:
 This shows how a product fits in with a
life style.
 e.g. Nokia

68.  Fantasy:
 This creates a fantasy about what might
happen in connection with the use of a
product.
 e.g.
 Dew ,
 Red Bull

69.  Mood or Image:
 This builds a mood or image around the
product or service such as beauty, love or
serenity.
 Fair & Lovely
 Ponds

70.  Musical:
 This shows people or cartoon
characters singing about the
product.
 Mortein

71.  Personality symbol:
This creates a character that
represents the product. The
character might be animated or real.
Safeguard

72.  Technical Expertise:
 This style shows the company’s
expertise in making the product.
 HELIX

73.  Scientific evidence:
 This style shows survey or scientific
evidence that the brand is better than
other brands.
 Sunsilk anti-hair fall

74.  Testimonial evidence or
endorsement:
 This style features a highly
likeable source endorsing
the product.
 The ordinary people saying
how much they like a given
product.
 Harpic

75. Tone
Words
Format Elements
Illustration
Headline
copy

76.  illustration
first thing readers
notice

77.  Headline:
 entice people to
read the copy.

78.  Copy:
 The main block of text
in the ad must be
simple but strong and
convincing.

80. Advertising Media:
 The vehicles through which advertising
messages are delivered to their intended
audience.

81.  Deciding on reach, frequency and impact.
 Choosing among major media types.
 Selecting specific media vehicle.
 Deciding on media timing.

82. Reach is a measure of percentage
of people in the target market who
are exposed to the ad campaign
during a given period of time.
Reach is most important when
launching new products, extensions
of well-known brands, or
infrequently purchased brands, or
going after an undefined target
market .e.g coolbank,olfruit etc.

83. Frequency is a measure of how many times
the average person in the target market is
exposed to the message.
Frequency is most important where there are
strong competitors, a complex story to tell, high
consumer resistance, or a frequent purchase-
cycle e.g. ufone, sunsilk, surf excel etc.

84. Impact is the qualitative value of a
message exposure through a given
medium.
For products that need to be
demonstrated, messages on television
may have more
impact than messages on radio
e.g. Nokia
Products for which consumers
provide
input on design or feature might be
better promoted at a website than
direct mail
e.g. jones soda

85. Media planners consider
 Target market media Habits.
 Product characteristics.
 Message Characteristics.
 Cost.
 Shift to “Narrowcasting”
from “shotgun”.
 Media multitaskers

86.  Television
 Newspaper
 Direct mail
 Magazine
 Radio
 internet

87. Medium
Television
Newspaper
Direct mail
Radio
Magazines
Outdoor
Internet
Advantages Limitations
Good mass marketing coverage; low cost High absolute cost; high clutter; fleeting
per Exposure; combine sight, sound and exposure; less audience selectivity
Motion; appealing to the senses
Flexibility ;timeliness; good local market Short life; poor production quality; small
Coverage; broad acceptability; pass- along audience
believability
High audience selectivity; flexibility; no Relatively high per exposure; “junk mail”
Ad competition within the same medium; image
Allows personalization
Good local acceptance; high geographic Audio only, fleeting exposure; low attention
And demographic selectivity; low cost (the half heard medium); fragmented
audience
High geographic and demographic Long ad purchase lead time; high cost; no
Selectivity; credibility and prestige; high guarantee of position
Quality reproduction; long life and good
Pass-along readership
Flexibility; high repeat exposure; low Little audience selectivity; creative
Cost, low message competition; good limitations
Positional selectivity
High selectivity; low cost; immediacy; Small demographic skewed audience;
Interactive capabilities relatively low impact; audience controls
exposure

88. Do you think that Is there any alternative
media for advertising any product

89.  Place Advertising
Marketers use creative and unexpected ad
placements to grab consumers’ attention such
as where they work, play, and shop.
Billboards
Public Spaces

90.  Billboards use colorful, digitally produced
graphics, backlighting, sounds, movement,
and unusual even three dimensional images.

93.  Advertisers are placing traditional traditional
TV and print ads in unconventional places
such as sports arenas, office and hotel
elevator, buses, stadiums, parking meters,
mugs, balloons, automobiles.

94.  Mugs
 Disposable cups
 Jars

95.  Stadium seats
 Billboards around stadium

101.  Product placement
Product placement has expended from movies
to all types of TV shows. Marketers pay a lot of
money so that their products make cameo
appearances in movies & on tv.
oIn Game Advertisement
oCovert advertising

102.  In-game advertising (IGA) refers to the use of
computer and video games as a medium in
which to deliver advertising

103.  Covert advertising, also known as guerrilla
advertising, is when a product or brand is
embedded in entertainment and media. For
example, in a film, the main character can
use an item or other of a definite brand.

104.  There are so many ways to communicate
with consumers at (p-o-p).In store
advertising includes ads on shopping carts,
cart straps, aisles, shopping bags etc

107. SPECIFIC MEDIA
VEHICLES
 Media Vehicle - a specific medium for the transmission of an
advertiser's message
 The media planner now must choose the best media vehicles on
these bases:
 Considerations for selecting Best media Vehicles:
 Favor those vehicles which have lower cost, for reaching most
of the target customer.
 LIKE:
 Today trend mobiles company is frequently using
local newspaper & bill board for advertising.

108.  Consider the costs of producing ‘ads’
for different media.
Examples:
1. For Candyland,Hoest sweets don’t
use higher cost vehicles.
2.For Land Cruiser, black beery,
motorbike don’t use lower cost
vehicles.

109.  Balance costs against several media
vehicle’s effectiveness factors:
 The planner should balance costs against
the media vehicle’s audience quality.
 The media planner should consider
audience attention or engagement.
 The planner should assess the vehicle’s
editorial quality.

110.  The advertiser must also decide how to schedule
the advertising over the course of year.
Some marketers do only seasonal advertising.
 Pattern of ads:
 Continuity
 Pulsing
 Continuity means scheduling ads evenly within a
given period.
 Pulsing means scheduling ads unevenly over a
given time period

111. Continuity
Continuous scheduling is a pattern of placing ads at a steady rate over
a period of time. There may be short gaps at regular intervals and also
long gaps. This pattern of advertising is prevalent in service and
packaged goods that require continuous reinforcement on the
audience for top of mind recollection at point of purchase. For
instance, LUX soaps, sell all year, but more in summer months.
Advantages:
 Works as a reminder
 Covers the entire purchase cycle
 Cost efficiencies in the form of large media discounts
 Positioning advantages within media

112. PULSING
Pulsing combines flighting (flighting involves
intermittent and irregular periods of advertising,
alternating with shorter periods of no advertising at all.)
and continuous scheduling by using a low advertising
level all year round and heavy advertising during peak
selling periods. For instance, under-arm deodorants, sell
all year, but more in summer months.
Advantages:
 Covers different market situations

113. Evaluating Advertising Effectiveness
Advertising accountability and return on advertising
investment have become hot issues for most companies.
Increasingly, top management is asking:
 How do we know that we’re spending the right
amount on advertising?
 What return are we getting on our advertising
investing?

114. Advertisers should regularly evaluate two types of
advertising results;-
• The communication effects
• The sales and profit effects

115. Measuring the communication effects of
an ad tells whether the ad and media are
communicating the ad message well.
Advertisement creators get so caught up in
designing a creative, cool advertisement that
they fail to effectively deliver a message that
will facilitate the success of their marketing
communications strategy.

116. it probably has a high level or at least
a substantial level of creativity in it.
usually creative advertisements have
two traits:
 Originality
 Appropriateness
It deals with how you deliver your
message to the consumers

117. originality
If it isn't very distinguishable from competitive
advertising, it won't be able to capture the
consumer's attention. (Change in behavior)
The jazz musician Charlie Mingus once said of
creativity and originality, "Creativity is more
than just being different. Anybody can play
weird, that's easy. What's hard is to be as
simple as Bach. Making the simple complicated
is commonplace, making the complicated
simple, awesomely simple, that's creativity."

118. Appropriateness
it must be appropriate for solving the marketing
objectives, which would probably include increasing
sales and profits. If the advertisement fails to meet
objectives it serves no purpose for both the marketing
plan and the company.
Example:
Good example can be SAFEGUARD they targeted
children by showing the cartoons (safeguard
commander)

119. Sales and profits effects of advertising
are often much harder to measure.
One way to measure the sales and profits effects of
advertising is to compare past sales and profits with
past advertising expenditures.

120. Another way is through experiments.
For example
Coca-cola could vary the amount it spends on
advertising in different market areas and measure the
differences in the resulting sales and profit levels.
More complex experiments could be designed to
include other variables, such as differences in the
ads or media used.

121. RUNNING A COUPON.
One satisfyingly concrete way of tracking how
many customers were exposed to advertising is
to use coupons.

122. “Marketers are tracking all kind of data and they still
can’t answer the basic questions”
about advertising accountability, says a marketing
analyst, “because they don’t have real models and
metrics by which to
make sense of it”
Thus, although the situation is improving as marketers
seek more answers, managers often must rely on large
doses of judgment along with quantitative analysis when
assessing advertising performance.

123. In developing advertising
strategy the company must
address two questions:
 How will the company
organize its advertising
function?
 How will the company adapt
its advertising strategies to
the complexities of
International Market?

124. These Considerations includes the following:
Other Advertising considerations
Organizing for Advertising International
Advertising Decision

125. Sales Departments
In
SMALL COMPANIES
Advertising Departments
In
Larger Companies

126.  Most large companies use outside advertising
agencies due to several advantages.
ADVERTISING AGENCY
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs.

127. Started in Mid-to-late 1800s by salespeople and
brokers who worked for the media and
received a commission for selling advertising
space to companies.

128.  As the time passed, the
salespeople began to help
customers prepare their ads.
 Eventually, they formed
agencies and grew closer to the
advertisers than to the media.

129.  Today agencies employs
specialists who can often
perform advertising tasks
better than the company's
own staff can.
 So today, even companies
with strong advertising
departments of their own
use advertising agencies.

131.  Largest U.S.A company with annual gross revenue
of more than $1.4 billion worldwide

132.  Includes several large
advertising, public
relations & promotion
agencies with combined
worldwide revenue of
almost $10.5 billion.

133.  International advertisers face
many complexities not faced
by domestic advertisers.
 The most basic issues is:
Adaptation of
Global Advertising

134. Adaptation of Global Advertising
(Cont’d)
Some large advertisers have attempted to
support their global brands with highly
standardized worldwide advertising

135.  JEEP
Jeep has created a worldwide image brand
image of ruggedness and reliability.

136. Coca Cola’s brand Sprite uses standardized
appeals to target the world’s youth.

137. Ads of Gillette’s Venus
Razors are almost
identical worldwide
with only minor
adjustments to suit
the local culture.

138.  Advantages of
Standardized
Advertising.
 Lower advertising cost
 Greater global advertising
coordination
 Consistent worldwide
image
 Disadvantages of
Standardized
Advertising
Ignores the fact that
country markets
greatly differ in their
 Cultures
 Demographics
 Economic Conditions

139. International advertisers
develop global advertising
strategies, that make their
worldwide advertising
efforts more efficient and
consistent.
e.g. COCA COLA

140.  Global advertisers face several special
problems.
Advertising Media Costs
& Availability
Regulation of
Advertising Practices

141.  Alcoholic Products:
Alcoholic products cannot be advertised
in Muslim Countries.

142.  Food Ads are Banned From Kid’s TV In
SWEDEN & Norway:
To play it safe McDonald’s advertises itself as a
family restaurant in Sweden.

143.  China bans sending e-mail
for advertising purposes
to people without their
permission.
 China also has restrictive
censorship rules for TV
and Radio advertising.
e.g. words “the best” are
banned, as are ads that
“violate social customs”

146. “Building good relations
with the company’s
various publics by
obtaining favorable
publicity, building a good
corporate image and
handling or heading off
unfavorable rumors”

148.  Press relations or press
agency:
“Creating and placing
newsworthy information in the
news media”
 Public affairs:
“Building and maintaining
national or local community
relations”

149.  Product publicity:
“Publicizing specific
products”
 Development:
“Public relations with
donors or Members of
not-for-profit
organizations to gain
support”

150.  Lobbying:
“Building relations with
legislators and
government officials”
 Investor relations:
“Maintaining relationship
with shareholders and
others in financial
community”

151. Strong impact on public awareness
at lower cost than advertising
Greater credibility than
advertising
Publicity is often under used.
Good public relations can be a
powerful brand building tool

153.  Public relations sometimes described as a
marketing stepchild because of its often
limited use.
 PR Department
Deals with various publics like
stockholders, employees, legislators, the
press etc.

154.  Anita Roddick built the Body Shop into a
major brand of beauty products:
“The birth of a brand is usually accomplished
with PR, not advertising. Our general rule is PR
first, Advertising second.PR is the nail &
Advertising is hammer”. (Anita)
 PR creates the credentials that provide the
credibility for advertising

155. News
Special
Events
Written
Materials
Public
Service
Activities
Web Site
Mobile
Marketing

156. News
PR professionals find or create
favorable news about the
company and its products or
people.
HEC grading system for different
institutions is quoted by the
institutions in their admission
advertisement.
 Special Events
 News Conferences.
 Musical shows.
 Awareness Seminars.

157. Written Materials
 Annual Reports
 Brochures
 Articles
 Magazines
Audiovisual
Material
 Films
 Slides & sounds programs
 DVD’s
 Online Videos

158.  Corporate Identity
Materials
 Logos
 Signs
 Stationary
 Business Cards
 Company Cars
 Public Service Activities
Companies can improve public goodwill by
contributing money and time to public service
activities.
 Charity Shows
 Public Awareness Campaigns

159. Mobile Marketing
Traveling promotional tours that
bring the brand to consumers.
e.g. Omore Advertising Vehicles

160. Web Site
People look to the Net for the
information, not salesmanship
and that’s the real
opportunity for public
relations