Advertising and Promotion Management
Advertising and Promotion Management
Week 1 Summary
1. Definition of Marketing
Marketing is a strategic process that involves identifying, anticipating, and satisfying
customer needs profitably. Different perspectives include:
● American Marketing Association (AMA):
○ Focuses on planning and executing the 4 Ps (Product, Price, Promotion,
Place) to facilitate exchanges that fulfill organizational and consumer
objectives.
● Philip Kotler:
○ Defines marketing as a blend of science and art, emphasizing value
creation by identifying unmet needs and quantifying market potential.
● Jerome McCarthy:
○ Views marketing as directing the flow of goods and services from
producers to consumers.
1. Product
2. Price
3. Place (Distribution)
4. Promotion
Promotion Communication
●
Example:
○ Product → Customer Solution: Instead of just selling a phone, Apple sells
an ecosystem (iCloud, App Store).
○ Price → Cost: Beyond the price tag, customers consider time, effort, and
emotional cost.
Definition
Historical Evolution
Components
Example: Pharma reps promoting to doctors. Example: Nike’s "Just Do It" campaign.
PLC Variations
7. Branding
● Definition: A name, symbol, or design that differentiates a product (AMA).
● Functions:
○ Builds loyalty (Apple fans).
○ Creates perceived value (Rolex = luxury).
○ Protects against competition.
Brand Equity
● The value a brand adds beyond functional benefits (e.g., Nike’s association with
athleticism).
9. Challenges in Advertising
● Ethical Issues: Misleading ads, stereotypes.
● Regulations: ASCI guidelines in India.
● Ad Fraud: Fake clicks, bot traffic.
● Privacy Concerns: Data misuse (GDPR compliance).
Detailed Summary of Advertising and
Promotion Management – Week 2
1. Understanding Communication
Definition of Communication
1. External Flow
2. Internal Flow
Definition
● AAAA: "A strategic plan that combines disciplines (advertising, PR, sales
promotions) for clarity, consistency, and maximum impact."
● Key Aspects:
○ Coordinates all promotional tools.
○ Ensures a unified brand image.
○ Uses data-driven strategies for customer engagement.
Evolution of IMC
● 1980s: Shift from ad-centric strategies to integrating PR, direct marketing, and
promotions.
● 1990s-Present: Digital integration (social media, AI-driven personalization).
IMC Tools
Importance of IMC
4. Positioning in Marketing
Definition
Positioning Strategies
By Ries & Trout
1. Strengthen Current Position (Reinforce existing perception).
2. Grab Unoccupied Position (Fill market gaps).
3. De-position Competitors (Highlight rivals’ weaknesses).
4. Re-positioning (Revitalize brand image).
5. Product Ladders (Rank brands in consumers’ minds).
By Subroto Sengupta
● Answer:
○ Who am I? (Brand identity).
○ What am I? (Functional benefits).
○ For whom? (Target audience).
○ Why me? (Competitive edge).
Positioning Approaches
Fixing Positioning
prices.
affordability).
Differentiation value).
6. Risky High Margins Overpriced without added value. Early iPhone competitors.
alternatives).
8. Loss of Market Share Low value at standard price. Outdated tech products.
Key Takeaways
1. Communication is the backbone of marketing, requiring clarity and feedback.
2. IMC integrates tools (ads, PR, sales promotions) for unified messaging.
3. Positioning defines a brand’s unique place in the market.
4. Bowman’s Clock helps strategize competitive pricing and value.
Detailed Summary of Advertising and
Promotion Management – Week 3
1. Product Advertising
2. Institutional Advertising
● Aims to create demand for a new product category (e.g., electric vehicles in early
stages).
4. Selective/Competitive Advertising
5. Comparative Advertising
6. Co-operative Advertising
● Jointly funded by manufacturers and retailers (e.g., Nike and Foot Locker
collaborations).
● Oral announcements, town criers, and visual signs (e.g., medieval shop symbols).
4. Consolidation (1900–1925)
● Professionalization of ad agencies.
● Radio ads emerged (e.g., 1920s jingles).
● Strong Theory: Ads change attitudes and behaviors (AIDA model: Awareness →
Interest → Desire → Action).
● Weak Theory: Ads reinforce existing preferences (e.g., loyal Coke buyers ignore
Pepsi ads).
● Key Insights:
○ Kids under 7 can’t distinguish ads from entertainment.
○ Ethical concerns led to regulations (e.g., bans on junk food ads).
● Traditional Stereotypes:
○ Women: Homemakers (e.g., detergent ads).
○ Men: Breadwinners (e.g., car ads).
● Modern Shifts: Gender-neutral campaigns (e.g., Dove’s “Real Beauty”).
1. Segmentation Types
3. Targeting Strategies
1. Perceptual Process
1. Selective Attention: Notice relevant ads (e.g., pet owners seeing pet food ads).
2. Selective Comprehension: Interpret based on beliefs (e.g., eco-friendly packaging
= “green” product).
3. Selective Retention: Remember appealing messages (e.g., catchy jingles).
2. Perceptual Mapping
3. Attribution Theory
4. Perceived Risks
Key Takeaways
1. Advertising Types: From product-focused to institutional.
2. Historical Evolution: Oral → digital → AI-driven.
3. Theories: Strong (persuasion) vs. Weak (reinforcement).
4. Segmentation: Geographic, demographic, psychographic.
5. Perception: Shapes brand loyalty and purchase decisions.
Stages Explained
Core Principles
Key Features
● SMART Objectives:
○ Specific: "Increase awareness from 30% to 50% in 6 months."
○ Measurable: Pre- and post-campaign surveys.
○ Targeted: Defined audience (e.g., "Urban women aged 25–34").
Criticisms
Criticisms
1. Differentiate
○ Highlight USP (e.g., "Patagonia = sustainable outdoor gear").
2. Reinforce
○ Consistency across touchpoints (e.g., McDonald’s golden arches globally).
3. Inform
○ Educate (e.g., IKEA’s assembly instructions).
4. Persuade
○ Call-to-action (e.g., "Limited stock! Buy now").
Marketing Applications
Key Takeaways
1. AIDA/DAGMAR: Linear consumer journeys; best for structured campaigns.
2. Hierarchy of Effects: Balances rational and emotional appeals.
3. DRIP Model: Long-term relationship-building.
4. Information Processing: Align ads with memory mechanisms for better recall.
Practical Tip: Combine models—use AIDA for quick conversions and DRIP for brand
loyalty. For example, Tesla uses AIDA for product launches ("Cybertruck reveal") and
DRIP for ongoing engagement ("Tesla Master Plan" blogs).
Comprehensive Summary of Advertising and
Promotion Management – Week 5
Lecture 21: Elaboration Likelihood Model (ELM)
● Developed by Petty & Cacioppo (1980), ELM explains how persuasion works
based on cognitive effort.
● Core Premise: Consumers process ads via two routes depending on their
motivation and ability to engage.
Assumptions
● Attitudes formed via the central route are more resistant to change and predict
behavior better.
● Example: A car buyer (high involvement) focuses on fuel efficiency (central
route), while a snack buyer (low involvement) picks based on packaging
(peripheral route).
Lecture 22: Innovation Adoption Model
1. Innovators (2.5%): Risk-takers (e.g., tech enthusiasts buying VR headsets early).
2. Early Adopters (13.5%): Opinion leaders (e.g., influencers using new skincare).
3. Early Majority (34%): Pragmatists (e.g., families adopting hybrid cars).
4. Late Majority (34%): Skeptics (e.g., seniors switching to smartphones).
5. Laggards (16%): Traditionalists (e.g., holdouts using feature phones).
Kim-Lord Grid
Five Components
Key Components
1. Evaluative Criteria: Attributes consumers value (e.g., phone battery life).
2. Importance Weights: Priority of attributes (e.g., camera > color for
photographers).
3. Consideration Set: Shortlisted brands (e.g., Samsung vs. iPhone).
4. Beliefs: Perceptions (e.g., "Volvo = safety").
Models
1. Shift Attribute Importance: Highlight neglected features (e.g., "5G speed
matters!").
2. Alter Beliefs: Correct misconceptions (e.g., "Our shampoo is sulfate-free").
3. Add New Attribute: Introduce innovations (e.g., "Now with vitamin E").
4. Global Brand Rating: "World’s #1 selling smartphone".
Example:
● Before: Consumers undervalue Tesla’s autopilot.
● After: Campaigns emphasize safety stats (central route).
Key Takeaways
1. ELM: Choose central route for high-involvement products, peripheral for
low-involvement.
2. Innovation Adoption: Target early adopters with trials (e.g., free samples).
3. FCB Grid: Match ad style to product type (rational vs. emotional).
4. Lasswell’s Model: Ensure all 5 components align (e.g., right channel for
audience).
5. MAAMs: Modify consumer beliefs about attributes to drive preference.
Practical Tip:
● Use ELM’s central route for B2B ads (detailed whitepapers) and peripheral route
for B2C (celebrity endorsements).
● Cognitive Stage (90% Awareness, 70% Knowledge) – Consumers learn about the
brand.
● Affective Stage (40% Liking, 25% Preference) – Emotional connection develops.
● Conative Stage (20% Trial, 5% Use) – Consumers take action (purchase, repeat
usage).
nt (Problem-Solving)
Low Informational (e.g., pain relief ads) Transformational (e.g., snack ads)
Final Takeaways
● Advertising budgets vary widely, from small amounts to billions (e.g., Procter &
Gamble, Ford).
● Budgeting is a critical decision that impacts brand success.
● Many firms treat advertising as an expense rather than an investment, leading to
cuts during financial downturns.
Marginal Analysis
Response Models
Two key models describe the relationship between ad spend and sales:
1. Concave-Downward Function
○ Diminishing returns: Each additional ad rupee generates fewer sales.
○ Best for mature markets where initial ads capture heavy users first.
2. S-Shaped Response Function
○ Slow start → Rapid growth → Plateau.
○ Threshold effect: Ads must reach a minimum level before impacting
sales.
○ Optimal spending is where marginal revenue = marginal cost (mid-curve).
Limitations:
● Difficult to isolate ad impact from other factors (e.g., pricing, distribution).
● Market conditions change, altering response curves.
Quantitative Models
Allocation Strategies
What is Creativity?
Creative Techniques
1. Brainstorming
○ No criticism → Wild ideas → Quantity over quality.
2. Analogy
○ Compare unrelated things (e.g., "Red Bull gives you wings").
3. Lateral Thinking
○ "Out-of-the-box" solutions (e.g., Dollar Shave Club’s viral video).
4. Right-Brain Thinking
○ Emotional, visual storytelling (e.g., Coca-Cola’s "Happiness" ads).
Final Takeaways
● Budgeting Methods: Balance theory (marginal analysis) with practical
approaches (objective-task).
● Creativity: Requires structured processes but thrives on innovation.
● Allocation: Depends on market conditions, competition, and brand goals.
● Testing & Adaptation: Essential for optimizing ad spend.
Advertising Appeals
Advertising appeals are strategies used to capture consumer attention and influence
feelings toward a product/service. They are categorized into:
1. Rational Appeals
○ Focus on logic, facts, and functional benefits.
○ Examples:
■ Feature Appeal (highlighting product attributes).
■ Competitive Advantage (direct/indirect brand comparisons).
■ Favorable Price (discounts, value propositions).
■ News Appeal (new product launches, updates).
■ Popularity Appeal (social proof, leadership claims).
2. Emotional Appeals
○ Target feelings, desires, and psychological needs.
○ Examples:
■ Fear Appeal (warning against risks, e.g., insurance ads).
■ Agony Appeal (highlighting discomfort to sell solutions, e.g., pain
relief creams).
■ Moral Appeal (aligning with ethical values, e.g., eco-friendly
products).
■ Transformational Advertising (associating brands with
emotions/lifestyles, e.g., Coca-Cola’s "Happiness" campaign).
Consistency in Branding
Key Concepts
● Media Plan: A strategy to allocate ad budgets across channels (TV, digital, print,
etc.).
● Reach: Unique audience exposed to an ad.
● Frequency: Number of exposures per audience member.
● GRP (Gross Rating Points): Reach × Frequency.
Key Questions
Cost Metrics
Types of Ad Copy
● Print:
○ Headlines must grab attention (e.g., "Do you make these mistakes in
English?").
○ Body copy should be concise and benefit-driven.
● TV:
○ Visuals dominate; script must sync with scenes.
○ Use storyboards for planning.
● Radio:
○ Simple language, repetition, and sound effects (e.g., jingles).
● Digital:
○ Interactive and direct-response focused (e.g., "Click to learn more").
Key Takeaways
Persuasion Testing
● Forced-Exposure Brand-Preference Change – Measures attitude shifts in
controlled settings.
● Theater Testing (McCollum Spielman) – Uses live audiences to gauge reactions.
Planning Cycle
1. Current Consumer Perception – Where is the brand in consumers' minds?
2. Market Position – Sales, competition, market share.
3. Reasons for Current Position – Strengths/weaknesses.
4. Future Goals – Desired brand positioning.
5. Strategy to Achieve Goals – Creative & media planning.
6. Single Key Benefit – Core message.
7. Desired Consumer Response – Action (purchase, loyalty).
8. Evaluation – Did the campaign succeed?
Research Methods
1. Firsthand Experience – Personal interaction with the product.
2. Observation – Studying consumer behavior.
3. Surveys – Quantitative data collection.
4. Experiments – Controlled ad testing.
5. Focus Groups – Qualitative insights.
Conclusion
Effective advertising and promotion management requires:
● Strategic copy testing to refine ads.
● Well-planned campaigns with clear objectives.
● Robust research to guide decisions.
● Continuous evaluation for improvement.
Role of PR
1. Corrects negative perceptions and enhances brand image.
2. Manages crises (e.g., scandals, product recalls).
3. Builds media relationships for positive coverage.
4. Engages in lobbying (influencing public policy).
Strengths of PR
● Personal Touch: Builds direct, emotional connections.
● Diverse Tools: Uses media, events, social media, CSR.
● Cost-Effective: Cheaper than paid ads but highly credible.
Weaknesses of PR
● Hard to Measure: Impact is qualitative (e.g., brand sentiment).
● Lack of Control: Media may alter messages.
● Talent Shortage: Skilled PR professionals are scarce.
Marketing PR (MPR)
● Supports marketing goals (e.g., product launches).
● Advantages: Cost-effective, credible, breaks ad clutter.
● Disadvantages: Uncontrolled media, no guaranteed coverage.
Lecture 52: Types of PR
1. Publications
○ Corporate brochures, annual reports, newsletters.
2. Videos/Films
○ Corporate films, training videos.
3. Sponsored Events
○ Sports (IPL), beauty pageants (Miss India).
4. Press Releases
○ Formal news announcements.
5. Interviews/Press Conferences
○ Direct engagement with media.
6. Buzz/Viral Marketing
○ Leverages word-of-mouth (e.g., viral social media challenges).
PR Strategies
● Proactive: Planned campaigns (e.g., CSR initiatives).
● Reactive: Crisis response (e.g., product recalls).
Lecture 54: PR Process
Measuring PR Success
● Media Monitoring: Track positive/negative coverage.
● Surveys: Gauge public perception.
● ROI: Link PR efforts to sales/engagement metrics.
Publicity
● Unpaid media coverage (positive or negative).
● Power: Highly credible (seen as "news").
● Challenges: No control over messaging.
Corporate Advertising
Promotes the company (not products). Types:
1. Image Advertising (e.g., Tata’s "We Also Make Steel").
2. Event Sponsorship (e.g., Red Bull sports events).
3. Advocacy Advertising (takes a stand on issues).
4. Cause-Related Ads (e.g., Pepsi’s sustainability campaigns).
Key Takeaways
1. PR builds trust through credible, non-paid communication.
2. Crisis PR is critical for damage control.
3. Corporate Ads shape long-term brand perception.
4. Measurement relies on media tracking and sentiment analysis.
●
● Bans advertisements for drugs claiming to treat diseases like cancer, diabetes, or
sexual disorders without medical validation.
● Prohibits ads promoting magical or superstitious remedies.
7. The Prize Competitions Act, 1955 & Prize Chits Act, 1978
● Total ban on tobacco advertising in any form (hoardings, films, print, etc.).
Conclusion
Advertising operates within a dual framework of law and ethics to balance business
interests with consumer protection. While laws like the Consumer Protection Act and
Drugs and Magic Remedies Act enforce legal boundaries, ASCI’s self-regulation
ensures ethical advertising practices. Advertisers must comply with both to maintain
public trust and avoid legal repercussions.