1. C ONCEPT & G ROWTH OF A DVERTISING Lecture 1

2. A DVERTISING M ARKETING Marketing Advertising

3. M ARKETING “Marketing is about indentifying and meeting human and social needs”. “Marketing is meeting needs profitably” “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”

4. U NDERSTANDING N EEDS, W ANTS & D EMANDS Needs are the basic human requirements like air, food, water, clothing, etc.

5. U NDERSTANDING N EEDS, W ANTS & D EMANDS Needs become Wants when they are directed to specific object that might satisfy the need. Like someone who needs food may want to eat ‘Biryani’.

6. U NDERSTANDING N EEDS, W ANTS & D EMANDS Demands are wants for specific products backed by an ability to pay.

7. U NDERSTANDING V ALUE A product or service is sold only when it offers certain benefits to the customers. The customer chooses between different oproducts and selects one which he/she perceives delivering the maximum value. Therefore, Value reflects the sum total of the perceived tangible and intangible benefits and costs to customers. Value increases with quality and service…decreases with price. “Itni worth nahi hai…”

8. U NDERSTANDING STP S egmentation T argeting P ositioning

9. S EGMENTATION Segmentation is the process of dividing the market based on customers’ geographical, psychographical, behavioral and demographic characteristics and needs. Segmenting consists of four sub activities. These are: 1. determining who the actual and potential customers are 2. identifying segments 3. analyzing the intensity of competitors in the market 4. selecting the attractive customer segments

10. T ARGETING After the most attractive segments are selected, the company must define the segments. Following sub activities form the basis for deciding which segments will actually be targeted: 1. defining the abilities of the company and resources needed to enter a market 2. analyzing competitors on their resources and skills 3. considering the company’s abilities compared to the competitors' abilities 4. deciding on the actual target markets.

11. P OSITIONING Positioning is the way by which the marketer tries to create a distinct image of the product or service into the minds of the customers. Positioning attempts to sell the benefits of the product or service to the customer by targeting his mind.

12. U NDERSTANDING STP T HROUGH A DS Eg. Surf Excel & Tata Nano ads

13. I N CLASS A CTIVITY Implement the STP concept to launch a product / service in your class.

14. U NDERSTANDING USP USP – Unique Selling Proposition

15. U NDERSTANDING USP Each advertisement must say to the audience “Buy this product for this specific benefit” This ‘specific benefit’ is the Proposition of the product. The proposition must be one that the competition doesn’t or cannot offer. It must be strong enough to move the masses.

16. USP E XAMPLES Head & Shoulders – Get rid of dandruff Volvo - Safety Dominos – Hot pizza at your door steps in 30 minutes or free Indigo Ad Air Deccan Ad

17. W HAT IS A DVERTISING ?? It is an A ct of B ringing a P roduct or S ervice to the A ttention of the C onsumer… Advertising is a paid, non-personal communication of information from an identified sponsor using mass media to persuade or influence an audience so as to maximize profits.

18. W HAT IS NOT A DVERTISING ?? >Offering premiums to stimulate sales >Entertaining customers through various activities like shows, music, etc. >Use of exhibitions and demonstrations at shows and fairs >Use of samples and activities involving personal selling >Talk shows, etc.

19. W HY D O W E U SE A DVERTISING ??? > To inform and educate people about the products and services offered. (Eg. Amway Ad) > To make the brand name familiar to the public >To Enhance the brand image >To Differentiate the product/ service in competition to others >To Enhance sales >To tell the public about improvements in the product / service >To reinforce customer confidence in his/ her purchase (>>>Incredible India Campaign) Give examples of the commercials where you saw the above concepts being used.

20. U NDERSTANDING THE F EATURES OF A DVERTISING >It is a Paid Form of Marketing >It is a Non-personal presentation and promotion by the advertiser to the prospect/ customer >It is used to promote Products, Services as well as Ideas. (Eg. Ideas…??? Government of NCT Ad + Chidiya Song) >Advertising is undertaken by an identified company or individual >The contents are controlled by the advertiser. >It is a persuasive form of communication in order to achieve the advertiser’s objectives

21. U NDERSTANDING THE F EATURES OF A DVERTISING >It is both science and arts. The theories learnt in the classrooms are practically implemented in designing ad campaigns >It involves creativity >Its an investment by the company / individual >It is goal-oriented to achieve something

22. L ETS S EE S OME P RINT A DS.

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24. H OW A DVERTISING W ORKS What is the job of Advertising??? >Increase Sales? >Enhance Brand Image? >To inform about the product / services? >To differentiate? No matter what the objective is, advertising definitely tries to deal with the maintenance or changing of attitude of the customers.

25. H OW A DVERTISING W ORKS / C OMMUNICATION R ESPONSE S EQUENCE In order to maintain the attitude of the customers and to persuade, the advertising message must cross through the following five steps: STEP 1: The message must be presented to the target audience first. STEP 2: The target audience must pay attention to the message. STEP 3: After they have paid attention, they must comprehend what is shown to them.

26. H OW A DVERTISING W ORKS / C OMMUNICATION R ESPONSE S EQUENCE STEP 4: Once the Target Audience has understood the message, he must yield to the arguments shown in the message…Else he would not consider the message credible. STEP 5: Once they have accepted the argument, they must behave as desired by the message.

27. A DVERTISEMENT P LANNING A company lays a marketing plan as per its profit objectives. The marketing plan states how the marketing communication efforts will help meet those objectives. Planning sequence shall be as follows: Step 1: Objectives for Target Audience Action >Non-users shall try the product >Existing users shall continue the use or shall use more frequently Step 2: Communication Effects >The planning manager decides how to position the brand and which communication effects need to be established in the minds of the target audience. >These communication effects will lead to action

28. A DVERTISEMENT P LANNING Step 3: Processing >Once the communication objectives have been determined, the next step is to design a creative strategy in order to achieve the communication objective. >At this stage the manager decides how the target audience will comprehend the advertisement Step 4: Exposure >At this stage the manger decides how best to expose the advertisement to the target audience >Which media to be used? >Where to reach the target audience

29. C ONSUMER R ESPONSE S EQUENCE VS A DVERTISEMENT P LANNING Planning always starts with the end in mind. Advertisement planning is done to achieve a desired action from the Target Audience. While CRS describes the Target Audience responds to a particular advertisement. Their sequence is just opposite to each other. PlanningCRS Step 1Target Audience Action BehaveStep 4 Step 2Communication Effects Yield Retain Step 3 ProcessingAttention Comprehend Step 2 Step 4ExposurePresentedStep 1

30. H IERARCHY OF A DVERTISEMENT ’ S E FFECTIVENESS 100% Target Audience 75% Aware of the Product 50% Shows Some Interest In the Product 30% Preferred the Product 25% Purchased the Product 15% Repurchased

31. S OME D O ’ S A BOUT A DVERTISING Advertising should be Informative Advertising should be Entertaining Advertising should be Involving

32. S OME D ON ’ TS A BOUT A DVERTISING >Never over promise or over claim about your product >Never show something that might insult your customer >Never try to compare your product or disrespect your competitors >Even if you show your competitors, it should be memorable and not in a bad taste. Eg. Sprite Ad

33. B ENEFITS OF A DVERTISING Benefits To Manufacturers >Introducing new products and creating awareness >Helps to create regular demand >Helps in expanding the customer base >Helps in creating more demand >Helps in Fighting market competition >Establishes a favorable image for the product

34. B ENEFITS OF A DVERTISING Benefits to the Customers >Informs and educates about the product >Helps in comparing products and making choices easier >Reduces prices due to large scale production Benefits to the Society >Generates employment >Improves standard of living by providing new and improved products >Important source of revenue for the press >Helps to solve social problems

35. C RITICISM OF A DVERTISING >It is assumed that large amounts spent on advertisements are transferred to the customers as higher prices. >It creates artificial needs and encourages wasteful production >It is deceptive and misleading >Sometimes it is offensive and in bad taste >Consumption of harmful products >Discontented society

36. A SSIGNMENT Make a folder of Print Ads and comment to incorporate the concepts learnt in today’s class…

37. O RIGIN & D EVELOPMENT OF A DVERTISING >Egyptians used papyrus to make sales messages and wall posters. >Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia

38. O RIGIN & D EVELOPMENT OF A DVERTISING >Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. >The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BCE. >Out-of-home advertising and billboards are the oldest forms of advertising.

39. O RIGIN & D EVELOPMENT OF A DVERTISING >As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. >Fruits and vegetables were sold in the city from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the customers. Eg. Town Crier

40. O RIGIN & D EVELOPMENT OF A DVERTISING – P EARS C ASE S TUDY >In 18 th Century, with the development of the press, Advertising started appearing in the newspapers in England in the Weekly newspapers. >Later handbills were introduced >Thomas J. Barratt from London has been called "the father of modern advertising“. >Working for the Pears Soap company, he created an effective advertising campaign and Pears Soap became the world's first legally registered brand and is therefore the world's oldest continuously existing brand. >An advertising tactic that he used was to associate the Pears brand with high culture and quality. He developed a series of adverts of well groomed middle-class children, associating Pears with domestic comfort and aspirations of high society.

41. O RIGIN & D EVELOPMENT OF A DVERTISING – P EARS C ASE S TUDY >Barrat established Pears Annual in 1891, a magazine which promoted contemporary illustration and colour printing and in 1897 added the Pears Cyclopaedia a one-volume encyclopaedia. >From the early 20th century Pears was famous for the annual "Miss Pears" competition in which parents entered their children into the high-profile hunt for a young brand ambassador to be used on packaging and in consumer promotions. >He recruited scientists and the celebrities of the day to publicly endorse the product.

42. O RIGIN & D EVELOPMENT OF A DVERTISING – P EARS C ASE S TUDY >Barratt introduced many of the crucial ideas that lie behind successful advertising and these were widely circulated in his day. >He constantly stressed the importance of a strong and exclusive brand image for Pears and of emphasizing the product's availability through saturation campaigns. >He also understood the importance of constantly re-evaluating the market for changing tastes and mores, stating in 1907 that "tastes change, fashions change, and the advertiser has to change with them. An idea that was effective a generation ago would fall flat, stale, and unprofitable if presented to the public today. Not that the idea of today is always better than the older idea, but it is different - it hits the present taste.

43. D EVELOPMENT OF A DVERTISING IN US >Advertising increased dramatically in the United States as industrialization expanded the supply of manufactured products. In order to profit from this higher rate of production, industry needed to recruit workers as consumers of factory products. It did so through the invention of mass marketing designed to influence the population's economic behaviour on a larger scale. >Advertising was also used as a vehicle for cultural assimilation, encouraging workers to exchange their traditional habits and community structure in favour of a shared "modern" lifestyle. >In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. >When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows.

44. S ELF S TUDY > Public service advertising in WW2 > Commercial television in the 1950s > Media diversification in the 1960s > Cable television from the 1980s >On the Internet from the 1990s

45. THANK YOU