MBA Marketing Communication Long Question Answer Sample Paper
MBA Marketing Communication Long Question Answer Sample Paper
Marketing Communication: Objectives of marketing communication, tonal areas of marketing communication.
Integrated Marketing Communication (IMC): Concepts and Process, Sing Management: Meaning, Nature and Scope of advertising, fiction of advertising, Process of advertising, Fundamentals of Tusking campaigns. The creative Brief, Advertising appeal. Advertising agencies—their role, functions.
LONG ANSWER QUESTIONS
Qus.1. Define marketing communication. What are its functional areas?
Ans. Marketing Communication
Marketing communication refers to the means adopted by the companies to convey message about the products and the brands they sell, either directly or indirectly to the customers with intention to persuade them to purchase.
In other words, the different medium that company adopts to exchange the information abs goods and services to the customers is termed as marketing communication,
The marketer uses the tools of marketing communication to create the brand awareness the potential customers, which means some image of the brand gets created in their minds them to make the purchase decision.
Marketing communication includes advertising, sales promotion events and expel. (sponsorship), public relations and publicity, direct marketing, interactive marketing, word marketing, personal selling. These tools of communication are collectively called as ma communication mix.
Functional Areas of Marketing Communication
Meriting is all about the activities which companies undertake to bring their to the market. products to the most common functional areas of marketing communication are as follows:
- Advertising : It is an indirect, paid method used by the firms to inform the customers about their and services via television, radio, print m Vision, radio, print media, online websites, etc. Advertising is one of the most wed methods of communication mix wherein the complete information about the mi and services can be communicated easily with the huge target audience coverage.
- Sales Promotion: The sales promotion includes the several short-term incentives to persuade stompers to initiate the purchase of the goods and services. This promotion technique not only in retaining the existing customers but also attract the new ones with the additional bonnets fees, discounts, paybacks, Buy-one get-one free scheme.co CRS, Day-one get-one free scheme, coupons, etc.
- Events and Experiences: Several companies sponsor the events such as sports, entertainment, profit or community events with the intention to reinforce their brand in the minds of the stompers and create a long-term association with them. The name of the firm sponsoring the event can he seen on the playground boundaries, player’s jerseys, trophies, awards in the entertainment shows, hoardings on stage, etc.
- Public Relations and Publicity: The companies perform several social activities with a view to wreathe their positive brand image in the market. The activities that companies are undertaking such as, constructing the public conveniences, donating some portion of their purchase to the child education, organizing the blood donation camps, planting trees, etc. are some of the common moves of enhancing the public relations.
- Direct Marketing: With the intent of technology, the companies make use of e-mails, fax, mobile phones, to communicate directly with the prospective customers without involving any third party in between
- Interactive Marketing: Interactive marketing has recently gained popularity as a marketing communication tool, wherein the customers can interact with the firms online and can get their queries resolved online.
- Word-of-Mouth Marketing: It is one of the most widely practiced method of communication tool wherein customer share their experiences with their peers and friends about the goods and services they bought recently. This method is very crucial for the firms because the image of the brand depends on what customer feels about the brand and what message he convey to others.
- Personal Selling: This is the traditional method of marketing communication wherein the salesmen approach the prospective customers directly and inform them about the goods and services they are dealing in. It is considered as one of the most reliable modes of communication because it is done directly either orally, i.e. face to face or in writing via e-mails or text messages.
Thus, marketing communication mix refers to the different tools that a firm can adopt to inform. persuade, and remind the customer about the product and services it sells.
Q.2. Describe the role of marketing communication. What are the tools for integrated marketing communication?
Ans. Role of Marketing Communication
Marketing communication is a strategic part of the marketing process and not merely a single thereof. Communication is the message that is relayed to the customer rather than the nuts and bolts of the technology that delivers it. Communicating with the customers enables to deliver the mesa them so that they will react to it. Marketing communication has the following roles:
- It influences consumer purchase in new product categories
- It plays an informative and a persuasive role over the life cycle of the new product category.
- The informative role of marketing communication is likely to have a much large uninformed consumers than with customers who are better informed.
- Business communicators should reinforce marketing, messages in ever communication issued and repeat that message in a consistent manner.
- Effective marketing communication is communication that gets to the point, plain a
The message is not complex nor is it vague. Because people are busier than ever the
their time is much more valuable and precious.
- To win the attention of potential customers in an era when business are competing multitude of message delivery vehicles (mobile, cable, internet, print) communication must be sharply tuned and succinctly expressed.
- Customer-centric marketing is successful marketing because customers need to feel the are more than just another sale.
- Customer-centric communication focuses on fulfilling customer needs and engage
customer as a brand advocate.
- Marketing communication encompasses all of the information that is put forth about
product, sometimes including internal information.
- Price lists, catalogs, promotional pieces, collateral material and a host of other tunic
marketing literature are all part of marketing communications and represent one of the most important aspects of the marketing of a product or service.
Tools for Integrated Marketing Communication
Each communication tool has its own unique characteristics and costs. The tools that marketers commonly use to achieve their communication objectives are:
- Advertising: Advertising can be used to build up a long-term image for a product or trigger quick sales. Advertising can efficiently reach geographically dispersed buyers. Certain forms of advertising (TV) can require a large budget, whereas other forms (newspaper) do not. Just the presence of advertising might have an effect on sales and consumers might believe that a heavily advertised brand must offer good value. Because of the many forms and uses of advertising, it is difficult to make generalization. Yet the following qualities can be noted:
(a) Pervasiveness: Advertising permits the seller to repeat a message many times. It allows the buyer to receive and compare the messages of various competitors. Large scale advertising
Says something positive about the seller’s size, power and success.
(b) Amplified Expressiveness: Advertising provides opportunities The goal of for dramatizing the company and its products throughout IMC plan is to artful use of print, sound and color.
(c) Impersonality: The audience does not feel obligated top returns and build long-term attention or respond to advertising. Advertising is a moon financial value. in front of, not a dialogue with the audience.
- Personal Selling: Personal selling is the most effective later stage of the buying process, particularly in building up buyer preference, conviction and a Personal selling has three distinctive qualities:
(a)Personal Interaction: Personal selling involves an immediate and interactive real between two or more persons. Each party is able to observe the others reactions.
(b)Cultivation: Personal selling permits all kinds of relationship to spring up, range matter-of-fact selling relationship to a deep personal friendship.
(c) Response: Personal selling makes the buyers Seeming makes the buyers feel under some obligation for having listened to the sales talk
- sales Promotion: Companies use sales promotion tools such as coupons, contests, premium like so as to draw a stronger and quicker buyer response. Sales promotion can be used for short costs such as to highlight product offers and boost sagging sales. Sales promotion tools offer three distinctive benefits:
(a) Communication: They gain attention and may lead the consumer to the product
(b) Incentive: They incorporate some concession inducement or contribution that gives value to
(c) Invitation: They include a distinct invitation to engage in the transaction now.
- Public Relations: Marketers tend to underuse public relations, yet a well-thought-out program innate with the other communication mix elements can be extremely effective. The appeared bloc relations and publicity is based on three distinctive qualities:
(a) High Credibility: News stories and features are more authentic and credible to readers than
( b) Ability to Catch Buyers Off Guard: Public relations can reach prospects that prefer to avoid salespeople and advertisements.
(c) Dramatization: Public relations have potential for dramatizing a company or product.
- Direct Marketing: The many forms of direct marketing like direct mail, telemarketing, internet marketing, etc. share three distinctive characteristics. Direct marketing is:
(a) Customized: The message can prepare to appeal to the addressed individual.
(b) Up-to-Date: A message can be prepared very quickly.
(c) Interactive: The message can be changed depending on the person’s response.
Qus.3. Discuss, in detail, integrated marketing communication process.
Ans. Integrated Marketing Communication Process
The steps of IMC process are:
Step 1 Review of Marketing Plan
Before developing a promotional programmed, it is important to understand where the company’s (or the brand) current position is in the market, where it intends to go and how it plan to get there. A marketing plan is a written document describing the overall marketing strategy and programmed developed for the Integrated organization, a particular product line or a brand.
marketing process Marketing plan included the following basic elements:
(a). A detailed situation analysis that consists of an internal a distinct and recognizable marketing audit and an external analysis of the market voice across a variety of competition and environmental factors.
(b) Specific marketing objectives that provide direction, time frame for marketing activities and a mechanism for measuring performance.
(c)A parroting strategy and programmed that include selection of target market(s) decisions and plans for the four elements of the marketing mix.
(d) A programmed for implementing the marketing strategy, including determining specific tasks to be performed and responsibilities.
(e) A process for monitoring and evaluating performance and providing feedback so that
Control can be maintained and any necessary changes can be made in the marketing sty or tactics.
A Promuonal programmed is an integral part of the marketing strategy. It will give an idée that advertising and other promotional mix elements will play in the overall marketing programmer.
- Promotional Programmed Situational Analysis
The next step in developing promotional plan is to conduct the situation analysis. A sites analysis involves the internal analysis and external analysis.
- Internal Analysis: Assesses relevant area involving the product/service offering and the fi itself. The capabilities of the firm and its ability to develop and implement a successful promotion programmed, the organization of promotional department and the success and failures of a programmers are reviewed.
The analysis study the relative advantages and disadvantages of performing the promotional functions. For example, the internal analysis may indicate that the firm is not capable of planning implementing and managing certain areas of the promotional programmed.
If this is the case, it would be wise to look for assistance from an advertising agency or some other promotional facilitator. If the organization is already using an advertising agency, the focus will be on the quality of the agency’s work and the results achieved by past and/ or current campaigns.
The other aspect of internal analysis is assessing the strengths and weaknesses of the firm or the brand from an image perspective. Often, the image of the firm that brings to the market will have a significant impact on its promotional programmed.
Another aspect of the internal analysis is the assessment of the relative strengths and weaknesses of the product or service in comparison to its competitors, unique selling points or benefits it has, its price, design, packaging to help the creative personnel to develop advertising message for the brand.
- External Analysis: It focuses its attention on the firm’s customers, market segments, positioning strategies and competitors. An important part of the external analysis is a detailed consideration of customers in terms of their characteristics and buying patterns, their decision processes and factors influencing their purchase decisions.
Attention must also be given to consumer’s perceptions and attitudes, lifestyles and criteria used in making purchase decisions often. Marketing research studies are necessary to answer some of these questions.
A key element of the external analysis is an assessment of the market. The attractiveness of various market segments must be evaluated and the decision made as to which segment (s) to target. Once the target markets are chosen, the emphasis will be on determining how the product should be positioned What image or place should it have in consumers’ minds?
The external phase of the promotional programmed situation analysis also includes an in-depth examination of both direct and indirect competitors. While competitors were analyzed in the over marketing situation analysis, even more attention is devoted to promotional aspects at this phase.
Focus is on the firm’s primary competitors; their specific strengths and weaknesses; segmentation, targeting and positioning strategies and the promotional strategies they employ. size and allocation of their promotional budgets, their media, strategies and the messages sending to the market place should also be considered.
Step 3. Analysis of Communication Process
This stage involves to know how the company can effectively communicate with consume target market. It involves the communication decision regarding the use of various sources, and channel factors. It involves the analysis of effects that various types of advertising message have on consumers and whether they are appropriate for the product or brand.
An important part of this stage of the promotional planning process is establishing communication objectives. Communication objectives refer to what the firm wants to accomplish with its goals and obi promotional – programmers.
The communicator objectives may include creating awareness or knowledge about a product and dilutes or benefits, creating an image or developing favorable attitudes, preferences or purchase intentions.
Step 4. Budget Determination
In budget determination, the two basic questions that should be asked includes what will the emotional programmer’s cost? How will these funds be allocated. Budget determination procedure wolves selecting the various budgeting approaches and integrating them. At this stage, the budget is ten tentative. It may not be finalized until specific promotional mix strategies are developed.
Step 5. Developing the Integrated Marketing Communications Programmed
At this stage, decisions are made regarding the role and importance of each element and their ordination with one another. Each promotional mix element has its own set of objectives and a budget and strategy for meeting them.
Decisions must be made and activities performed to implement the promotional programmers. Procedures are developed for evaluating performance and making any necessary changes.
Two important aspects of advertising programmed are the development of the message and media strategy. Message development, often referred to as creative strategy, involve determining the basic appeal and message that the advertiser wishes to convey to the target audience.
Media strategy involves determining which communication channels will be used to deliver the advertising message to the target audience. Decisions must be made regarding which types of media will be used (e.g. Newspapers, Magazines, Radio, Television, bill boards, etc.) as well as specific media selections such as particular magazines or TV programmed.
This task requires careful evaluation of the media options’ advantages and limitations, costs and ability to deliver the message effectively to the target market.
Once the message and media strategies have been determined, steps must be taken to implement them. Most large companies hire advertising agencies to plan and produce their messages and to evaluate and purchase the media that will carry their advertisement.
However, most agencies work very closely with their clients as they develop the advertisements and select media, because it is the advertiser that ultimately approves (and plays for the creative work and media plan.
Step 6. Mentoring, Evaluation and Control
This stage determine how well the promotional programmed is meeting communication objectives and helping the firm accomplish its overall marketing objectives. This stage is designed to provide managers with continual Feedback concerning the effectiveness of the promotional programmed which is used as input to subsequent promotional planning and strategy development.
Q.4. Explain the features and objectives of advertising.
Ans. Features of Advertising
The features of advertising are as follows:
- Communication: Advertising is a means of mass communication reaching the masses. It is a non-personal communication because it is addressed to masses.
- Information: Advertising informs the buyers about the benefits they would get when they purchase a particular product. However, the information given should be complete and true.
- Persuasion: The advertiser expects to create a favorable attitude which will lead to actions. Any advertising process attempts at converting the prospects into customers. It indirect salesmanship and essentially a persuasion technique.
- Profit Maximization: True advertising does not attempt at maximizing profits by inc cost but by promoting the sales. This way it won’t lead to increase the price of the product. Th higher sales approach rather than the higher-cost approach.
- Non-personal Presentation: Salesmanship is personal selling whereas advertising is non in character. Advertising is not meant for anyone individual but for all. There is absence o appeal in advertising.
- Identified Sponsor: A sponsor may be an individual or a firm who pays for the advertise The name of reputed company may increase sale of products. The product gets good market be its identity with the reputed corporate body.
- Consumer Choice: Advertising facilitates consumer choice. It enables consumers to up goods as per their budget requirement and choice. Right choice makes consumer happy and satisfied.
- Art, Science and Profession: Advertising is an art because it represents a field of create Advertising is a science because it has a body of organized knowledge. Advertising is now treated profession with its professional bodies and code of conduct for members.
- Element of Marketing Mix: Advertising is an important element of promotion mix. Advertising has proved to be of great utility to sell goods and services. Large manufactures spend cores of ripen on advertising.
- Element of Creativity: A good advertising campaign involves lot of creativity and imagination When the message of the advertiser matches the expectations of consumers, such a creativity makes way for successful campaign.
Objectives of Advertising
The purpose of advertising is nothing but to sell something-a product, a service or an idea. The real objective of advertising is effective communication between producers and consumers. The following are the main objectives of advertising:
- Preparing Ground for New Product: New product needs introduction because potential customers have never used such a product earlier and the advertisement prepares a ground for that new product
- Creation of Demand: The main objective of the advertisement is to create a favorable climate for maintaining or improving sales. Customers are to be reminded about the product and the brand. It may induce new customers to buy the product by informing them about its qualities since it is possible that some of the customers may change their brands.
- Facing the Competition: Another important objective of the advertisement is to face the competition. Under competitive conditions, advertisement helps to build up brand image and brand loyalty and when customers have developed brand loyalty, becomes difficult for the middlemen to change it.
- Creating or Enhancing Goodwill: Large scale advertising is often undertaken with the objective of creating or enhancing the goodwill of the advertising company. This, in turn, increases the market receptiveness of the company’s product and helps the salesmen to win customers easily.
- Informing the Changes to the Customers: Whenever changes are made in the prices, champ of distribution or in the product by way of any improvement in quality, size, weight, brand, packing they must be informed to the public by the producer through advertisement.
- Neutralizing Competitor’s Advertising is unavoidable to compete with our neutralize competitor’s advertising. When competitors are adopting intensive advertising as their promotional strategy it is reasonable to follow similar practices to neutralize their effects. In such cases, it is essential for the manufacturer to create a different image of his product. .
- Barring New Entrants: From the advertiser’s point of view, a strongly built image through long sing helps to keep new entrants away. The advertisement builds up a certain monopoly for the in which new entrants find it difficult to enter.
In short, advertising aims at benefiting the producer, educating the consumer and supplementing amen. Above all, it is a link between the producer and the consumer.
Qus5. Describe the benefits of advertising to various personnel of marketing. Explain the scope of advertising too.
Ans. Benefits of Advertising
Advertising broadens the knowledge of the consumers. With the aid of advertising, consumers find and buy necessary products without much waste of time. This speeds up the sales of commodities, eases the efficiency of labor in distribution and diminishes the costs of selling. The main bonnets of advertising may be narrated as follows:
- Benefits to Manufacturers
(a) It increases sales volume by creating attraction towards the product
(b) It helps easy introduction of new products into the markets by the same manufacturer.
(c) It helps to create an image and reputation not only of the products but also of the producer or advertiser. In this way, it creates goodwill for the manufacturer.
(d) Retail price maintenance is also possible by advertising where price appeal is the promotional Strategy.
(e) It helps to establish a direct contact between manufacturers and consumers.
(f) It leads to smoothen the demand of the product. It saves the product from seasonal
fluctuations by discovering new pattern and new usage of the product.
(g) It creates a highly responsive market and thereby quickens the turnover that results in lower inventory.
(h) Selling cost per unit is reduced because of increased sale volume. Consequently, product
overheads are also reduced due to mass production and sale..
(i) Advertising gives the employees a feeling of pride in their jobs and to be in the service of such a concern of repute. It thus, inspires the executives and worker to improve their efficiency.
(j) Advertising is necessary to meet the competition in the market and to survive.
- Benefits to Wholesalers and Retailers
(a) Easy sale of the products is possible since consumers are aware of the product and its quality.
(b) It increases the rate of the turn-over of the stock because demand is already created by
(C) It supplements the selling activities.
(d) The reputation created is shared by the wholesalers and retailers alike because they need not spend anything for the advertising of already a well advertised product.
(e) It ensures more economical selling because selling overheads are reduced.
(f) It enables them to have product information
- Benefits to Consumers
(a) Advertising stresses quality and very often prices. This forms an indirect guarantee to the consumers of the quality and price. Further large scale production assumed by advertising enables the seller to sell product at a lower cost.
(b) Advertising helps in eliminating This reduces tearing helps in eliminating the middlemen by establishing direct contra saucers and consumers. It results in cheaper goods.
(C) It helps them to know where and when the products are available. This reduces their shopping time. .
(d) It provides an opportunity to compare the merits and demerits of various substitute products.
(e) This is perhaps the only medium through which consumers could know the varied and new uses of the product.
(f) Modern advertisements are highly informative.
- Benefits to Salesmen
Salesmanship is incomplete without advertising. Adverts, Salesman in the distribution of goods. Sales is benefitted by the advertisement in following way.
(a) Introducing the product becomes quite easy and convenient because manufacture
Has already advertised the goods informing the consumers about the product and its quality
(b) Advertising prepares necessary ground for a salesman to begin his work effectively
Sales efforts are reduced.
(C) The contact established with the customer by a salesman is made permanent throw
effective advertising because a customer is assumed of the quality and price of the product.
(d) The salesman can weigh the effectiveness of advertising when he makes direct contact wit
- Benefits to Community or Society
(a) Advertising, in general, is educative in nature. In the words of the late President Roosevelt of the USA, ‘Advertising brings to the greatest number of people actual knowledge concerning useful things. It is essentially a form of education and the progress of civilization depends on education.’
(b) Advertising leads to a large-scale production creating more employment opportunities to the
public in various jobs directly or indirectly.
(C) It initiates a process of creating more wants and their satisfaction towards higher standard of living. For example, advertising has made more popular and universal the uses of such inventions as the automobiles, radios and various household appliances.
(d) Newspapers would not have become so popular and so cheap if there had been no advertisements. The cheap production of newspapers is possible only through the publication of advertisements in them. It sustains the press.
(e) It assures employment opportunities for the professional men and artist
(f) Advertising does provide a glimpse of a country’s way of life. It is, in fact, a running
commentary on the way of living and the behavior of the people and is also an indicator of some of the future in this regard.
Scope of Advertising
Advertising has scope in various areas:
- Institutional: It promotes organization’s image, ideas and political views.
- Advocacy: It promotes a company’s position on a public issue.
- Competitive: It points out a brand’s special features, uses and advantages relative to the competing brands.
- Product: It promotes product’s uses, features and benefits.
- Comparative: It compares two or more brands on the basis of one or more product characteristics.
- Remind: It reminds consumers about and established brand’s uses, characteristics and-
- Reinforcement: It assures users that they have chosen the right brand and tells them how to 8. Pioneer: It tries to encourage demand for a product category by informing potential buyers about the product.
Qus. 6. Describe the various bases of classification of advertising.
Ans. Classification of Advertising
Advertising can be classified on the following bases:
Classification on the Basis of Area Coverage
On this basis, advertising may be classified into the following four categories:
- Local Advertising: It is also known as ‘retail advertising’. It is undertaken by local retail stores, departmental stores, cooperative stores, selling clothes and other consumer goods and consumer Durables. It is directed at local customers. Media, used for local advertising, are shop decorations, local newspapers, magazines, posters, pamphlets, hoarding, new signs, local cinema houses, etc.
- Regional Advertising: It has wider coverage as compared to local advertising. It covers a particular region, which may be one state or more than one state, the people of which may be having a common tongue or using one common product. It is undertaken by manufacture or regional distributor of a product Media, used for regional advertising, include regional newspapers, magazines, radio, regional TV, outdoor media, etc. It is considered to be an ideal form of advertising for launching and marketing a new product in a specific region.
- National Advertising: It is generally undertaken by manufactures of branded goods for which advertising messages are communicated to consumers all over the country. Almost all 0° Advertising possible mass media, including national newspapers, radio and promotes the sale of television network, are employed for national advertising. Product goods, services, images, services and ideas, which have demand all over the country, are ideas through information suitable for national advertising. In India, Indian Airline Hindustan and persuasion. Lever Ltd., Vice, Godrej, Bajaj and Kirloskar are a few leading advertisers at national level. Likewise, detergents, soaps, toothpastes, cosmetics, scooters, cars and bicycles are some of the products which are advertised all over the country.
- International Advertising: This type of advertising is undertaken by those companies, which operate in more than one country, known as ‘multinational companies. Exporters, generally advertise their products and services in foreign countries, where ready markets are available. Air India and other airlines and multinational companies advertise their products and services all over the world. Coca-Cola and Pepsi are advertised globally, as the sales are almost all over the world. International advertising is extremely expensive, involving the services of professional advertising agencies in different countries.
- Classification on the Basis of Audience
On this basis, advertising may be classified into the following four categories:
- Consumer Advertising: This type of advertising is directed to the ultimate consumers of the consumer products, i.e. the individuals who buy or use the consumer products or services say, for. example, toilet soap, toothpaste, toothbrush, tea, textiles, etc. for themselves and for their families types of consumer products need continuous and extensive advertising on TV, radio and press.
- Industrial Advertising: This type of advertising is used by manufacturers and distributors industrial goods such as machinery, plants, equipments, spare parts and components and are directed at industrial users or customers. Such advertisements usually appear in trade journals, trade. dictionaries, business magazines and so on. The appeal made is tactual and rational.
- Trade Advertising: This kind of advertising is employed by manufacturers and/or distributor. to influence and persuade wholesalers and dealers (retailers) to stock and sell the goods of the advertiser by offering incentive schemes to them or by inviting dealership for their particular product(s).
- Professional Advertising: It is directed at professionals like doctors, professors, engineers and others, who are expected to recommend, prescribe or specify the advertised products to ultimate consumers. This is done through professional journals and representative of the advertisers.
III. Classification on the Basis of Media
On this basis, advertising may be classified into the following four categories:
- Print Media Advertising: The print media consists of newspapers, magazines, journals, handbills, etc. No newspaper or journal today, can survive without advertising revenue. Print media advertising, even today, is the most popular form and revenue derived by mass media from advertising has, therefore, been progressively increasing year after year. Print media appeals only to the sense of sight, i.e. eyes.
- Electronic or Broadcast Media Advertising: Electronic or broadcast media consists of radio, television, motion pictures, video and the internet. The radio is audio in nature, appealing only to the sense of sound (ears). Radio advertising is more effective in rural areas, as compared to urban regions. Television, as an advertising medium, is more attractive and effective because it is an audio-visual medium appealing to both the senses of sight sound (eyes and ears). Different methods such as, spot announcements, sponsored programmers, etc. are used for broadcasting advertising messages. However, 26 broadcasting media are very expensive form of advertising. Advertising is also undertaken through movies, video and the internet.
- Outdoor Media: This includes posters, neon signs, transit, Point of Purchase (POP), etc. Outdoor advertising can be a good supporting media to other forms of advertising. It is a good form of reminder advertising, especially, the POP advertising.
- Other Media: This includes direct mail, handbills, calendars, diaries, cinema advertising, internet and so on. These miscellaneous media can play an important supporting role to the major media such as television and newspapers.
- Classification on the Basis of Function
On this basis, advertising may be classified into the following three categories:
- Direct Action and Indirect Action Advertising: Direct action advertising is undertaken to obtain immediate response or action on the part of target audience. Examples include discount sales advertising, sale along with free gift offers, mail-order coupon sales, etc. The media used is mostly newspapers and television. Indirect action advertising is undertaken to influence the audience in respect of advertiser’s brand. The advertiser expects the target audience to prefer his brand as compared to competitors whenever a buying decision arises in future.
- Primary and Selective Advertising: Primary advertising is undertaken by trade association or operative groups. It is undertaken to create generic demand and for products and services. For the coffee board may advertise to consume more coffee. Selective advertising is undertaken By marketers of branded products. The advertiser intends to create selective demand for his brand/ Examples include Pepsi cola, Coca Cola.
- Product and Institutional Advertising. Advertising: Product or service advertising is undertaken to the sale of products and services either branded or unbranded, Institutional advertising skin to build name and goodwill of the organization. It is also known as corporate advertising or image advertising. It is mostly undertaken by large firms.
Classification on the Basis of Advertising Stages
On this basis, advertising may be classified into the following three different categories:
- Advertising at Pioneering Stage: Advertising at pioneering stage’ is undertaken to mar lance fully aware of the new brand of product an e new brand of product and to inform, influence and persuade them to buy or, e it by highlighting its unique features.
- Advertising at Competitive Stages: Once the brand survives the introductory stage, Chas, face a stiff competition with other well established brands in the market. At this stage, competitive advertising is undertaken to promote sales effectively.
- Advertising at Retentive Stage or Reminder Advertising: When the product has captured a barge share of the market, ‘retentive advertising’ is undertaken to maintain or retain the stable position in the market as long as possible. Moreover, if the same product is passing through the declining stage in the market, this type of advertising is used to remind the buyers about the product hence, it is also known as “reminder advertising’.
0.7. Give the fundamentals for a successful advertising campaign. Ans. Advertising Campaign Fundamentals
Fundamentals for a successful advertising campaign are as follows:
- Consider Who You are Targeting: Before one considers what type of advertising might work best to reach your desired target, you first must settle on who your target market is. Are you attempting to reach existing customers to inform them about improvements to your product? Are you trying to reach potential prospects who should be interested in your products? If you are considering a print component to your campaign, go through some of the industry publications. The type of editorial and ads in the publication should clue you in as to how others are approaching the market. Make sure that the copy and message of your ad is consistent with the target you are trying to reach, i.e. engineers look for more technical copy whereas top management might prefer a ‘less is more approach.
- Make Sure You Measure: This will be a fundamental aspect of almost every tactic we’re going to discuss in this series. It’s no secret that we are living in an era of accountability. Do not accept the idea that advertising, including print advertising, cannot be measured. In fact, there are numerous ways to track how your advertising campaign is performing. With our own clients, we’ve seen the use of special landing pages – URLs that can only be accessed by typing that specific URL into a browser. By thing a special URL to a specific ad, you can track with greater accuracy how many potential leads that ad is driving. With CRM software and web analytics, you can track the behavior of that special URL visitor and determine how many leads convert to sales. We’ve also seen clients use a dedicated e-mail address and even unique phone numbers.
3.Have an Objective: Too often, ads appear in a way that can best be described as haphazard, either in terms of the ad’s design, the ad’s placement or where the ad links to if it’s an online add Make you want your advertising to fulfill. If you are introducing a new sure you have a clear objective that you want your advertising to fulfill. If you are ire add creating a certain number of sample requests. If you product, perhaps you want to set a goal of your ad creating a certain number of sample hangar, make sure that your creative and your ad placement appeal are promoting a white paper or a webinar, make sure that your creative and your ad placement appeal to the people in your audience who would want that kind of content. Your objective willow important decision you will ultimately make about the ads you use in your campaign.
- Understand the Importance of Selecting Audited Publications: When considering part of your campaign, remember the importance of selecting audited publication where Audited publications (BPA Worldwide and ABC are the two leaders) provide the confidence of that the target audience you are trying to reach actually qualify for and receive the publication
Even if your ad showcases the best creative in the industry, if the right people are not see will not do you any good. Rather than advertise in publications just because they have the lowest the largest circulation, advertise in the publications that offer the best circulation for your audience.
- Weighing the Benefits of Frequency vs. Dominance: Some advertisers like to pepper a their audience on a monthly basis to make sure that their message gets through (we call frequency). Others like to do the big splash (think super bowl) and we call that dominance. B. approaches have merit.
Typically, if you have to choose between the two, general advertising principles dictate that strong program built on frequency is better use of your budget than a big splash but if your big splashes around the biggest trade show of the year where all of your customers and prospects are going to be then dominance may be the right prescription. As with most things in life, this issue is not black and white. Each case must be reviewed on the merits of each approach to see which is right for your company.
In the online world, remember that impressions are not the magic number you are looking for, even though that is a number many publications will promote to you. Impressions are simply the number of eyeballs that saw your add To accurately measure an online advertising campaign, it’s again helpful to dedicate a special landing to the advertising effort and then track that person’s behavior as they navigate through your website.
Qus.8. What are the functions of advertising agencies? Discuss about the client-agency relationship.
Ans. Functions of an Ad Agency
The main function of advertising agency is to see that its client’s advertising that leads to greater profits in the long run. The agency thus plans, prepares and places with advertising as the objective.
The main functions of a full-service advertising agency are as follows:
- Selection of Clients: The first and the foremost function of an advertising agency is to contact and select clients who are desirous of advertising their products, services or anything which they want to sell. The preference in contacting and choosing the clients is given to those firms which have sound values, able management, efficient operative products and services. The financial position, size and nature of business, efficient management and operative products, etc. must be given due weight.
- Media Selection: Media selection is another major function of the advertising agency. In making a media selection, several factors such as cost, circulation, population which it serves, audiences, nature of the product, types of customers and above all needs of the clients should be kept in mind.
- Advertising Planning: The third as well as the major function of advertising agency is advertising planning for its clients. For this purpose, the advertising agency requires a detain knowledge of the firm’s products, its advertising history, market conditions, channel of distribution, knowledge of competitors’ products and their advertising techniques, field to be covered, nature a type of consumers, etc. Next planning job is to decide about the advertising medium in which the Advertisement is to appear. The advertising message must be adapted to the medium in which it is to appear,
- Creative Function: The creative function starts when the planning function ends. It includes the ration of an advertising copy, layout, illustration, photographs, advertising messages, theme of easement, etc. These functions are performed by a varied group of creative people including tars, designers, artists, producers, photographers and grab saucers, photographers and graphic art specialists employed by the advertisement writers, design advertising agency.
- Research Function: It is the fifth major function of an advertising agency. It supports ions taken in the media and creative areas. In this connection, the advertising agency gathers a aloes actual information about the product, extent of market, competitors’ strategies and buyers habits, etc. that may help the creative personnel to make the advertising copy more attractive an effective.
6 Approval of the Client: As soon as the advertising copy, etc. are prepared, the next Tom the advertising agency is to show the copy to his client and obtain his approval. In case if any changes are suggested by the client, the same may be incorporated and thus the final approval should be taken from the client.
- Marketing Function: The advertising agency also performs marketing functions such as selecting target consumers, designing products and packages, developing channels of distribution strategy, determining prices and rate of discount, etc. It gives useful advice to its clients with regard to the nature and trend of the market conditions. Accordingly, the client produces goods keeping in his mind the prevailing conditions in the market.
- Evaluation Function: Simply drafting advertising copy and handing over the same to the media is not enough. The next major function of the advertising agency is to have an exhaustive evaluation of the advertising effects for the benefit of his client. In case of any deficiency, necessary suggestions should be given and the same be made effective after approval of the client.
- Coordination Function: The last but not the least important function of the advertising agency is to establish effective coordination with client’s sales force and distribution network to ensure the long running success of the advertising campaign. Each time the advertising agency contacts the client regarding advertising media to be used and the number of times the advertisement is to be repeated after giving effect to changes, if any, as suggested by the advertiser.
Agency Client Relationship
Agency client relationship must be that of mutual trust and confidence. The perfect relationship results in optimum advertising effectiveness at a reasonable cost and reasonable compensation for the agency. It is characterized by continuous and complete two way communication between individuals in the two organizations in an atmosphere of mutual trust. Interdependency of the advertiser and the agency helps in creating effective advertising as part of the company’s marketing effort. What the clients have to do?
- Treat the agency with courtesy at all times.
- Provide all possible information about the product that is to be advertised and about the
organization. This facilitates the agency to do their job much better.
- Not unnecessarily bargain for the fees charged by the agent…
4 Motivate the agency to do a good work. Agency charges such as media bills, fees and other paid well in time. In no way, the client should wait for the agency to remind of payment
- Not change the agency for the sake of change.
- Approve the proposals submitted by the agency. The client should not argue for the sal arguing.
- Give sufficient time to the agency to develop a good advertising campaign. The client
not put the agency unnecessarily in deadline crisis.
- Reduce disputes to a minimum.
- Finalize well in advance the charges for a particular plan or campaign.
- Up-date the agency with any information from his side that would help the agency to serve the client better.
Yet, whenever something goes wrong, the brunt of criticism comes on the agency and many times the relationship terminates. Many a times, there is a change just for the sake of change. Advertisers prefer an agency that is currently popular in the market, such as the Lint as Do and the Everest in India. Sometimes the agency itself voluntarily resigns 0 Advertising from an account on some ground or the other. There may be different alms at educating the puritans, opinions, thoughts, etc., or the agency may be wanting to customers, supplementing accept another competitive account.
Usually an agency keeps on abandoning consistently losing dealers to face competition accounts, i.e. those advertisers who make losses over the years. It but above all, it is a link may also resign when a client becomes over-bearing. Many between producer and
creative people in the field of advertising do not like to be simply consumer. dictated by their clients about their own professional work. If things go too far, such clients may be abandoned. However, client turnover is not a healthy practice as it puts both the parties to a loss. But under the unavoidable circumstances, there may be no other alternative but to turnover too another client.
Qus.9. Describe, in detail, the organization structure of an advertising agency.
Ans. Organization Structure of an Advertising Agency
The organization structure differs from agency to agency depending upon functions performed and size of the business. Because of the highly personalized nature of the advertising agency business, it is difficult to say which type of organizational structure would be suitable for it. Many agencies are organized according to the personal preferences of the management. Most large and medium sized agencies followed one of the two systems, the group system and the departmental system and some combine them.
- Group System: Under this system, the writers, artists, media planners, buyers and other specialists are assigned to a group of accounts. All are under the general direction of an account executive or group head.
- Departmental System: Under the departmental system, same type of specialists are grouped in the same department. For instance, all writers in the copy department, all artists in the art department and so on.
Since advertising agency is an independent business organization, it may be in the form of a sole proprietorship, partnership or joint stock company form of organization. However, an advertising agency of reasonable size may naturally adopt the Joint Stock Company form of organization. In such a case, it may have a Board of Directors under the Managing Director. Under the Board of Directors, we may have General Manager and the General Manager may have a number of Departmental Managers under his control. The number of Departmental Managers will vary from one advertising agency another advertising agency as per the nature and size of business. The organizational structure of large sized or reasonably sized advertising agency is as follows:
Departments of an Advertising Agency
The organization of an advertising agency may be divided in various departments entrusted with a specialized function to be performed under each departmental manager who is specialized in the task allotted to him. The main departments of a large sized or reasonably sized advertising agency are as follows:
- Contact Department: Contact department works under a senior executive officer known as the departmental manager. The main function of this department is to contact the new clients on one hand and maintain the existing clients on the other hand. A number of contact men work under him. They function as the liaison people between the agency and the client. The contact men represent the agency when in the advertiser’s office, they study the advertiser’s need and inform the various departments what is required by the respective clients.
- Art Department: This department is headed by the art manager who is assisted by artists, layout men and visualizes. A visualize is a person who prepares the rough layout of the advertisement which is later developed into a comprehensive layout. The art department is responsible for the physical appearance of the advertisement for preparing layouts, illustrations, photos and for specifying the types to be used.
- Media Department: This is a very important department which works under the supervision and control of a media manager. This department is entrusted with the work of selection of media for the advertiser according to the needs, directions and budget of the client. He remains in constant touch with different Medias
- Mechanical Production Department: It is also a very important department which works under the control of a technical manager. The main function of this department is to look after block-making, printing, proof-reading and such other technical jobs.
- Copy Department: This department is headed by a copy manager and is duly assisted by writers. This department is concerned with the preparation of a copy for all number of copy-writers. This department is concerned with advertisements. Copy-writing requires flair and fluency of language, imagination and a method of Ardent works closely with the art, research and accounts departments. It is also an important department.
- Research Department: In case of large sized advertising ager
int. In case of large sized advertising agencies, a separate research department is established under the supervision and control of a research manager manager is assisted by a number of analysts, investigators, marketing assistants, statistical
is department is to study markets, medias and other subjects of librarians, etc. The main function of this department is to study markets. medias Interest to the advertising agency. It helps better advertising for clients.
- Radio and TV Production Department: In case the advertising agency advertisements on the radio and television, it would have a separate department for this porn department works under the supervision and control of a manager who is duly assisted by a num assistants, musical consultants, script-writers, etc.
- Finance Department: The main function of finance department is to arrange and finance. Thus, this department is responsible for maintaining proper accounts, billing and collar dues from the clients, verifying whether the advertisement in the different media actually appeal the days it was scheduled, if so whether correctly, and whether the text was properly printed an, looking after all the routine matters relating to accounting, recording, etc.
- Merchandising Department: In case of large sized advertising agency, a separate merchandise department is established under the supervision and controls of a merchandising manager which specialist in displays, exhibits and preparation of various advertising ads
- Public Relations (PR) Department: In case of a large sized advertising agency, a separate public relation department is established under the supervision and control of a public relation officer-manager. The main function of this department is to establish and maintain contact and mutual understanding between the organization and the public. It performs a liaison work between the clients and the various sections of the public-customers, employees, shareholders, etc.