Marketing: A collection of activities aimed at managing customer needs and ensuring the fulfillment of these needs, often focused on a specific product or service.
Advertising: A tool in brand marketing that disseminates information about products, services, or ideas. It is:
Non-personal communication.
Usually paid for and persuasive.
Involves identified sponsors using various media.
Origin of 'Advertising': Derived from Latin "advertive", meaning "to turn the mind towards" something.
Historical Context: Earliest advertisements were done through word of mouth; modern advertising began with printed ads:
Example: First newspaper ad in 1704 selling a plantation in Oyster Bay, Long Island.
First Advertising Agency: Established in 1841 by Robert Palmer in the USA.
Television Advertising:
Became a key medium post-World War II.
First televised ad aired on July 1, 1941, for Bulova watches.
Golden Age of Advertising (1960s-1980s): Revolutionized by advertising legends like William Bernbach, David Ogilvy, and Mary Wells Lawrence.
Emergence of Digital Advertising in the 1990s:
First online ad in 1994 had a 44% click rate.
Development milestones: Yahoo's transformation in 1995, founding of DoubleClick in 1996, Google's AdWords in 2000.
First Indian Newspaper Ad: Published in the Bengal Gazette by James Augustus Hicky on January 29, 1780.
First Indian Ad Agency: Launched in the early 20th century, including notable agencies like the National Advertising Service in 1931.
First Indian TV Commercial: Aired in 1978 for Gwalior Suitings; first color TV ad in 1983 for Bombay Dyeing.
Defined by Webster: "To give public notice or announce publicity".
Key Elements:
Communication between organizations and consumers.
Information on product features and services.
Persuasion of consumers to promote buying behavior.
Focus on profit maximization through increased sales.
Non-personal format, providing a choice in products.
Prepared by professionals (art directors, producers, etc.) and essential for marketing strategy.
Four P's of Marketing:
Product: Goods/services offered, including features and policies.
Price: Cost based on consumer willingness to pay, including discounts.
Place: Distribution strategies for product availability.
Promotion: Includes both personal and non-personal communication activities.
Integrated Marketing Communication (IMC): A strategic process for developing coordinated and persuasive brand communication programs.
Four Main Roles:
Economic: Stimulates sales and profits.
Societal: Shapes societal values and relationships.
Marketing: Vital component of the marketing mix.
Communication: Links advertisers with consumers through various information channels.
Key Functions:
Informing: Provides information about products and services.
Persuading: Encourages consumer decision-making.
Reminding: Keeps the brand top-of-mind for consumers.
Building Brand Identity: Establishes and maintains brand recognition.
Generating Demand: Supports sales efforts and increases market visibility.
Principles:
Truth, Clarity, Originality, Effectiveness, Profitability.
Visual Principles:
Constancy, campaign duration, recurring tagline, uniform positioning, lucidity, creating effective flows.
AIDA Model: Developed by Elias St. Elmo Lewis, outlines the process of capturing consumer attention and guiding them through Interest, Desire, and Action stages.
Stages:
Attention: Capturing customer awareness.
Interest: Engaging customer interest in products.
Desire: Building a strong want for the product.
Action: Prompting consumer to take action (e.g., purchasing).
DAGMAR: Proposed by Russel H. Colley in 1961, outlines that each purchase prospect goes through:
Awareness, Comprehension, Conviction, Action.
AISDALSLove Model: An evolution of AIDA, focusing on additional consumer feelings and responses post-purchase.
Print Advertising: Newspapers and magazines, including flyers, brochures, and classified ads.
Broadcast Advertising: TV, radio, and internet ads; offers wide reach but is often costly.
Outdoor Advertising: Billboards and kiosks targeting high-traffic areas.
Covert Advertising: Subtle product placement in films and TV shows.
Public Service Advertising: Aimed at social causes and community benefit.
National Advertising: Targets consumers through various distributors without geographical constraints.
Retail Advertising: Targets consumers directly through stores.
Wholesale Advertising: Focuses on advertising for wholesalers.
Competitive Advertising: For products in growth stages, aiming for immediate sales.
Retentive Advertising: Maintains product visibility to ensure its status.
Campaign Themes: Organized series of advertisements conveying consistent ideas over time.
Influences Consumer Behavior: Reflects and shapes values and aspirations in society.
Builds Brands: Enlarges consumer awareness and loyalty.
Misleading Claims: Ethical concerns when advertisements are deceptive.
Puffery: Exaggerated claims that aren't likely to mislead.
Advertising Regulation: Governed by bodies like the Advertising Standards Council of India.
Advertising Agency Definition: An independent organization that develops, prepares, and places advertising media.
Agency Types: Includes full-service, creative boutiques, in-house agencies, and modular agencies.
Departments:
Accounts, Client Serving, Creative, Production, Media Planning, Research.
Roles: Each department plays a crucial role in developing effective advertising strategies.
Types:
Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly.
Importance: Helps analyze industry characteristics.
Key Objectives:
Reach, Frequency, Opportunity to See (OTS), Cost-Per-Rating Point (CPRP).
Differences with Personal Selling: Highlights distinctions in relationship, communication, and approaches.
Propaganda: Systematic efforts to manipulate perceptions and behaviors to achieve a desired outcome.
Online Advertising: Uses the internet for marketing messages. Includes web ads, pop-ups, display ads, and mobile ads.
Advertising Budget: Critical for promoting products and reaching target markets.
Factors Influencing Budget:
Frequency of advertising, competition, market share, and product life cycle stage.
Definition: Engaging with the public to build beneficial relationships.
Ethics and Laws: Standards of conduct for public relations practices outlined by agencies like PRSA.
Functions:
Managing public opinion, drafting strategies, managing social media, and dealing with government agencies.
Types of PR Agencies: Media relations, investor relations, customer relations.
Early Practices: Awareness of public opinion dates back to ancient Greece.
Ivy Lee and Edward Bernays: Pioneers in establishing public relations as a profession.
Role of PR: Gained prominence post-independence focusing on ethical communication strategies.
Engagement Strategies: Focus on building positive relationships and meeting public interests.
Measuring Effectiveness: Challenges in quantifying PR efforts compared to traditional advertising.
Crisis Phases:
Pre-crisis, crisis response, and post-crisis planning.
CSR: Integration of social and environmental concerns into business practices for public benefit.
Code of Ethics: Guide for ethical behavior in public relations highlighting honesty and fairness.
Copywriting Principles: Importance of clarity, brevity, and focusing on one main idea to convey the message.
Examples: Scientific, descriptive, narrative, and suggestive copy used to captivate audiences.
Effective Elements: Include attention-grabbing headlines, informative content, and engaging visuals.
Segmentation Process: Tailoring products and messages to specific consumer groups based on their similarities.
Advocacy and Lobbying: Utilizing brand messages to promote social causes and influence government policies.
Agency Benefits: Diverse expertise and broader industry connections.
Role in Elections: Use of strategic messages to influence public voting behavior.
Components: Content, audience engagement, and feedback mechanisms critical to success.
Dealing with Media during Crisis: Importance of controlling the narrative and managing public perception.
Four-Step Process: Defining problems, planning actions, implementing strategies, and evaluating results.
Role in Crisis: Effective messaging during crisis situations to maintain trust and reputation.
Maintaining Relations: Importance of strategic communication and relationship management in PR.
Code of Ethics: Guiding principles for maintaining integrity and transparency in public relations.
Legal Standards: Regulations around advertising practices focusing on consumer rights and privacy issues.
Effective Ad Copy: Importance of concise and compelling messaging in advertisements.
Types of Print Ads: Classified ads, display ads, and supplements – importance of effective layout and content.
Control and Credibility: Differences between advertising and publicity in terms of message control and credibility.
Historical Developments: Key figures and movements that influenced modern PR practices in India.