advertising by rajeevrainbow

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What is advertising ? The American marketing association Chicago defines “advertisement is any paid form of non personal presentation of idea, goods & services by an identified sponsor”.

Why advertisements??

To attract 2) To distract 3) This is modernity

Setting the object

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Five M’S Mission: what are the advertising objectives? Money: how much money can be spend? Message: what message should be send? Media: which media should be used? Measurement: how should the result be evaluated?

1) Informative advertising: aims to create brand awareness & knowledge of new products or new feature of existing products.

2) Persuasive advertising: aims to create liking, preference, conviction, and purchase of a product or services. 3) Reminder advertising: aims to stimulate repeat purchase of products and services. 4) Reinforcement advertisement: aims to convince current purchasers that they made the right choice.

Deciding on the advertising budget:
The followings are some companies which spent a huge amount on advertisement
1 2

General motors

Total US ad Average ad spending(mn) spent per day
$3,934.8 $10,780,273 $ 6,475,342

Procter & $2,363.5 gamble

3 4

Ford motors PepsiCo ,

$2,345.2 $2,100.7

$6,425,205 $5,755,342

The factors to consider when setting the advertising budget are.
1) stage in the product life cycle: New products typically received large advertising budgets to build awareness & to gain consumer trail. Established brands usually are supported with lower advertising budget as a ratio to sales. 2) market share and consumer base: High market share brands usually require less advertising expenditure as a percentage of sales to maintain share. To build share by increasing market size requires larger expenditure.

3) competition and clutter: In a market with a large number of competitors and high advertising spending a brand must advertise more heavily to be heard. Even advertisements not directly competitive to the brand create a need for heavier advertising. 4) advertising frequency: The number of repetitions needed to put across the brand’s message to consumers has an important impact on the advertising budget. 5) product substitutability: Brands in less well differentiated or commodity like product classes require heavy advertising to establish a differential image.

Developing the advertising campaign

Message generation and evaluation: Creative development & execution: 1) television ads 2) print ads



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