Transcript Lecture 2

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ADVERTISING MANAGEMENT
Lecture 2
CAMPAIGN MANAGEMENT
Prof Soumitra Mookherjee
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PRODUCT – MARKET ANALYSIS
Overview
Whether you are starting a new business or launching a new product,
conducting a marketing analysis is the first step. Knowing the market's needs and
how it is currently serviced provides you with key information that is essential in
developing your product/service and marketing plan.
Although the quality of the product is critical, the company who wins the
marketing game generally will capture the larger share of the market.
It is critical to identify your target markets/ segments
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PRODUCT – MARKET ANALYSIS
Conducting a market analysis will help firms to:
1.
2.
3.
Prepare to enter a new market
Launch a new product/service
Start a new business
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PRODUCT – MARKET ANALYSIS
The goal of a market analysis is to determine the attractiveness of a market and
to understand its evolving opportunities and threats
The following dimensions of a market analysis may be useful :
1.
Market size and future prospects
2.
Market growth rate and profitability
3.
Industry cost structures
4.
Distribution channels
5.
Market trends
6.
Key/ Critical success factors
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SELLING/ ADVERTISING OBJECTIVES
In the matter of advertising objectives 2 distinct schools of
thought emerge:
1.
The Sales School
2.
The Communication School
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SALES SCHOOL
Many managers view sales as the only meaningful objective
for promotional plans. Their view is that the only reason an
organization spends money on promotion is to sell its products or
service.
Sales turnover is the first and most obvious measure
In the consumer markets and the FMCG sector, market share
movement is more sensitive barometer of performance.
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COMMUNICATION SCHOOL
The aim of a communication campaign is to enhance the image
or reputation of an organization or product.
Consequently, promotional efforts are seen as communication
tasks, such as the creation of awareness or positive attitudes
towards the organization or product.
Thus the communication objectives basically seek to move
people to action and induce them to purchase the products.
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COMMUNICATION SCHOOL: INFLUENCE
Cognitive: This stage basically involves communication that deals
with cognition or knowledge. It deals with creating knowledge,
perception, ideas and awareness
Affective: This stage deals with the emotions or the affections.
Conative/ behaviour:. In this case the person on the basis of his
preference or dislike for the product would either purchase it or
reject the product.
e.g. A person wants to buy a TV set, he may after having
understood his desire, collect different types of information and
after having being convinced -finally make the purchase.
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COMMUNICATION SCHOOL: INFLUENCE
E.g. A person wants to buy a TV set, he collects different types
of information and after being convinced - make the purchase.
Consumers develop relationships with their brands and products,
which sustains the notion that a series of stages occur between
the point of awareness and the point of product purchase.
Effective advertising should sell, but should also communicate
with the consumer on an emotional level.
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ADVERTISING CAMPAIGN
An advertising campaign is a series of messages that share a single
idea and theme which make up an Integrated marketing Communication
(IMC). Advertising campaigns appear in different media across a specific
time frame.
The critical part of making an advertising campaign is determining a
champion theme.
The campaign theme is the central message that will be communicated in
the promotional activities. The campaign themes are usually developed
with the intention of being used for a substantial period.
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ADVERTISING CAMPAIGN
Coordinated series of linked advertisements (broadcast
usually through several media channels) that may last from a
few weeks and months to years.
1.
2.
3.
Focus on a common theme
Are directed at a particular segment of the population and
Are aimed at achieving a specific objective (such as
awareness or market share).
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ADVERTISING CAMPAIGN
An advertising campaign is a specific course of action designed to
advertise a company, cause, or product that employs coordinated series
of marketing tools in order to reach the target audience.
The end purpose of any ad campaign is to boost awareness and generate
demand. The structure of the advertising campaign will often depend on
the nature of the product or cause and the target audience.
Both print and electronic media are often used to generate attention and
enthusiasm for the subject of the campaign. In the modern era electronic
media refers to television and radio broadcasts, and includes online
banner ads, text messaging, and email advertisements.
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ADVERTISING CAMPAIGN
PRINT MEDIA: Advertisements placed in newspapers and magazines are
a time-honored method of reaching the target audience.
In order to ensure that the desired consumers are reached, the print
advertisements will often appear in print media that is geared toward
those consumers.
ELECTRONIC MEDIA: Television and radio commercials remain a viable
means of attracting the attention of buyers and creating demand for
various products and services.
CREATE AN IMPRESSION AND ENTICE POTENTIAL CONSUMERS
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ADVERTISING CAMPAIGN
Many companies design advertising campaigns to current clients that rely
on NEWER tools as text messaging or email advertising.
For example, a telephone SERVICE PROVIDER may notify existing
customers of upcoming specials on bundled services by sending a text
message to the client’s cell phone. As an alternative, the service provider
may notify the customer of upcoming sales or new products and services
via email.
REAL ESTATE FIRMS/ HEALTH CARE PRODUCTS: COMMUNICATE VIA
E-MAIL AND SMS ALERTS ON NEW UPCOMING PROJECTS,
ADDITIONAL SERVICES/ PRODUCT HIGHLIGHTS
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CAMPAIGN PLANNING PROCESS
Effective campaigning means using the minimum amount of effort to
achieve the maximum impact. Planning is critical to making your campaign
focused and effective.
External factors play a significant role in campaigns. Try to predict how
the external environment or the area you are working in might change.
Resources: Can be organised in many different ways and the people you
are seeking to change can be influenced in many different ways.
Your campaign may not succeed or have the impact you desire if you
haven’t given sufficient thought to planning
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CAMPAIGN PLANNING PROCESS
Four critical stages of good campaigning are:
CAMPAIGN CYCLE
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Campaigns are viewed cyclically. Campaign planning is better
understood using the Campaign Cycle concept
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CAMPAIGN PLANS: CRITICAL COMPONENTS
Hypotheses - what are you testing?
Objectives - what are you hoping to achieve? Make sure objectives are SMART
Target audience - who are you targeting? Try to be as specific as possible.
Message - what's your offer and why would the customer take it up?
Response - how do you want people to respond? Are you pointing them to a
specific website or phone number? Are you including a reply paid envelope?
Budget - what is the overall budget for this campaign and what response do you
need to achieve for a positive ROI?
Timings - when is the campaign going to launch and when will the offer end?
Measurement - how are you going to measure the success of the campaign?
Measures could include direct responses (ie: phone calls, website visits) as well as
more sophisticated measures such as ROI.
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ADVERTISING PLAN: KEY COMPONENTS
The components of Advertising Plan are :
1.
2.
3.
4.
5.
6.
Identifying target Audience/ Segment
Setting up Advertising Objectives
Finalize Advertising Budget
Create Message Strategy
Develop Media Strategy
Create Image and personality of products
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DAGMAR APPROACH
DAGMAR:
Stands for Defining Advertising Goals for
Measuring Advertising Results. It is basically an approach to
advertising planning for quantifying goals and using those goals
to measure performance.
An advertising objective involves a communication task, intended
to create awareness, impart information, develop attitudes or
induce action.
DAGMAR APPROACH
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UNAWARE
AWARE
COMPREHENSION & IMAGE
ATTITUDE
ACTION
Communication Process under
DAGMAR MODEL
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DAGMAR : COMMUNICATION PROCESS
At some point of time, the individual will be unaware of the
product or offer in the market. The initial communication task of
the advertising activity is to increase consumer awareness.
The second step of the communication process is comprehension
of the product or offer and involves the target audience learning
something about the product or offer. In what way does it
differ from its competitors? Whom is it supposed to benefit?
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DAGMAR : COMMUNICATION PROCESS
The third step is the attitude (or conviction) step. The action phase
involves some move by the buyer such as trying a brand for the
first time, visiting a showroom, or requesting information.
The important concept of the approach is that the advertising
goal be specific. It should be a written, measurable task
involving a starting point, a defined audience, and a fixed
time period.
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DAGMAR : MEASURABLE OBJECTIVES
For a promotional campaign, there must be an objective, which
is measurable.
e.g. a YELLOW PAGE/ JUST DIAL
advertisement, the
measurement could be the number of phone calls received
before and after the ad was published or the number of
referrals through yellow pages.
The measurable objective must be written, clear & unambiguous.
e.g. Increase awareness of our store by 10% - not any vague
statement
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DAGMAR : BENCHMARK CHANGE
The objectives/ GOALS should specify how much change or
movement is being sought such as increase in awareness
levels, creation of favorable attitudes or number of
consumers intending to purchase the brand, etc.
A benchmark is also a prerequisite to the ultimate
measurement of results, an essential part of any planning
program and DAGMAR in particular.
e.g. Increase awareness of our store from the current level of 20%
to 30%
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DAGMAR : DEFINED TARGET AUDIENCE
Not everyone is going to buy your product. So, CRUCIAL TO
identify your target audience, to whom you are going to aim
your ad campaign.
E.G. If you are selling premium cars. High value consumer
durables you should target customers who have high net worth
and are sophisticated.
The specific goal may be defined as follows:
e.g. Increase awareness of our store from the current level of 20%
to 30% among the owners of product A
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DAGMAR : DEFINED TIME PERIOD
An advertising campaign CANNOT run for eternity. There should
be a fixed time period, six months or a year, within which you
should aim at attaining certain goals. There should also be some
time allocated td to test the campaign, make amendments, if
required to the campaign.
E.G. Increase awareness of our store from the current level of 20%
to 30% among the owner of product X within the next six months.
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DAGMAR : MEASURING RESULTS
AWARENESS:
Awareness of the existence of a product is necessary before the
purchase behavior can be expected.
Awareness needs to be created, developed, refined or
sustained, according to the characteristics of the market and
particular situation facing an organization at any point of time.
DAGMAR : MEASURING RESULTS
AWARENESS
TRADE OFF
–
INVOLVEMENT
HIGH
Involvement
High
Low
Sustain current
levels
of
awareness
Refine
awareness
Awareness
LOW
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Build awareness
quickly.
Create
association
of
awareness
of
product
with
product
class
need
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DAGMAR : MEASURING RESULTS
Comprehension
Awareness on its own may not be sufficient to stimulate a purchase.
In attempting to persuade people to try a different brand, it may be necessary to
compare the product with other products and provide an additional usage benefit,
such as cost reduction e.g. Pharma products, Automobiles, Beverages, Telecom, etc
Conviction
Buyers are convinced that a particular product in the class should be tried at the
next opportunity. To do this, audience’s beliefs about the product have to be
moulded and this is often done through messages that demonstrate the
product’s superiority over a rival
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DAGMAR : MEASURING RESULTS
Action
Communication must finally encourage buyers to engage in
purchase activity, and this really tests the success of an
advertisement campaign.
MEASURES: Use of toll free numbers, direct mail activities and
coupons.
E.g. Tupperware, Aqua Guard, are famous in Indian cities as a result
of its personal selling efforts.
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CREATIVE ADVERTISING STRATEGY
Creative strategy:
The following are some things you would want to cover:
-
How are we going to present the message? Through a celebrity?
A brand character?
Any Musical touch to communicate emotion? If so, what songs?
HAMARA BAJAJ
-YMCA FOR RELIANCE 3G
-TIC TAC
-AIRCEL – conectivity everywhere
-
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MEDIA STRATEGY
Identify your target audience AND then find the best media, at
the best time, to reach them.
One will get the best return on advertising by conveying action
induced/ specific message in front of people through appropriate
media during the decision making and buying cycle.
BUDGET ALLOCATION
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Illustrative budgeting methods:
Task method of budgeting: Spend what it takes to do the job Right
Annual allocation. Start with a base, and increase it by x% yearly
Percent of sales: Aggressive marketers, especially in consumer
markets, can spend 10-15% of sales on advertising
Business to business environment: 10% of sales would be
considered aggressive, on average.
Industry Benchmarks: Matching Competitors levels