Advertising in Market: Key Concepts - MBA Executive, Gomal University

This essay provides a comprehensive overview of advertising in the market, focusing on its objectives, advantages, and disadvantages. It discusses informative, persuasive, and reminder advertising, as well as institutional advertising and public service announcements. The essay also delves into developing effective ads through creative strategies, including message and appeal types like informational and emotional appeals. Furthermore, it outlines the media plan, covering media objectives, evaluation, selection, implementation, and budgeting, with a detailed look at reach, frequency, and continuity. Different advertising media, such as television, radio, newspapers, online advertising, and their respective strengths and weaknesses, are evaluated. The essay concludes by examining media mix decisions, timing of media, and common advertising scheduling patterns like continuous advertising, flighting, and pulsing. Desklib provides students access to this and many other solved assignments.

Topic Name: Advertising in market:
Submitted by: Abdul Salam
Roll No 95805
MBA (Executive)
Gomal University Dera Ismail khan

Advertising: Pay to Play
Advertising is any paid form of communication from an identified sponsor or source that draws
attention to ideas, goods, services or the sponsor itself. Most advertising is directed toward groups
rather than individuals, and advertising is usually delivered through media such as television, radio,
newspapers and, increasingly, the Internet. Ads are often measured in impressions (the number of
times a consumer is exposed to an advertisement).
Advertising is a very old form of promotion with roots that go back even to ancient times. In recent
decades, the practices of advertising have changed enormously as new technology and media have
allowed consumers to bypass traditional advertising venues. From the invention of the remote
control, which allows people to ignore advertising on TV without leaving the couch, to recording
devices that let people watch TV programs but skip the ads, conventional advertising is on the wane.
Across the board, television viewership has fragmented, and ratings have fallen.
Print media are also in decline, with fewer people subscribing to newspapers and other print media
and more people favoring digital sources for news and entertainment. Newspaper advertising
revenue has declined steadily since 2000.[1] Advertising revenue in television is also soft, and it is split
across a growing number of broadcast and cable networks. Clearly companies need to move beyond
traditional advertising channels to reach consumers. Digital media outlets have happily stepped in to
fill this gap. Despite this changing landscape, for many companies advertising remains at the
forefront of how they deliver the proper message to customers and prospective customers.
The Purpose of Advertising
Advertising has three primary objectives: to inform, to persuade, and to remind.
 Informative Advertising creates awareness of brands, products, services, and ideas. It announces new
products and programs and can educate people about the attributes and benefits of new or established
products.
 Persuasive Advertising tries to convince customers that a company’s services or products are the
best, and it works to alter perceptions and enhance the image of a company or product. Its goal is to
influence consumers to take action and switch brands, try a new product, or remain loyal to a current
brand.
 Reminder Advertising reminds people about the need for a product or service, or the features and
benefits it will provide when they purchase promptly.
When people think of advertising, often product-focused advertisements are top of mind—i.e., ads
that promote an organization’s goods or services. Institutional advertising goes beyond products to
promote organizations, issues, places, events, and political figures. Public service announcements

(PSAs) are a category of institutional advertising focused on social-welfare issues such as drunk
driving, drug use, and practicing a healthy lifestyle. Usually PSAs are sponsored by non-profit
organizations and government agencies with a vested interest in the causes they promote.
Advantages and Disadvantages of Advertising
As a method of marketing communication, advertising has both advantages and disadvantages. In
terms of advantages, advertising creates a sense of credibility or legitimacy when an organization
invests in presenting itself and its products in a public forum. Ads can convey a sense of quality and
permanence, the idea that a company isn’t some fly-by-night venture. Advertising allows marketers to
repeat a message at intervals selected strategically. Repetition makes it more likely that the target
audience will see and recall a message, which improves awareness-building results. Advertising can
generate drama and human interest by featuring people and situations that are exciting or engaging.
It can introduce emotions, images, and symbols that stimulate desire, and it can show how a product
or brand compares favorably to competitors. Finally, advertising is an excellent vehicle for brand
building, as it can create rational and emotional connections with a company or offering that translate
into goodwill. As advertising becomes more sophisticated with digital media, it is a powerful tool for
tracking consumer behaviors, interests, and preferences, allowing advertisers to better tailor content
and offers to individual consumers. Through the power of digital media, memorable or entertaining
advertising can be shared between friends and go viral—and viewer impressions skyrocket.
The primary disadvantage of advertising is cost. Marketers question whether this communication
method is really cost-effective at reaching large groups. Of course, costs vary depending on the
medium, with television ads being very expensive to produce and place. In contrast, print and digital
ads tend to be much less expensive. Along with cost is the question of how many people an
advertisement actually reaches. Ads are easily tuned out in today’s crowded media marketplace.
Even ads that initially grab attention can grow stale over time. While digital ads are clickable and
interactive, traditional advertising media are not. In the bricks-and-mortar world, it is difficult for
marketers to measure the success of advertising and link it directly to changes in consumer
perceptions or behavior. Because advertising is a one-way medium, there is usually little direct
opportunity for consumer feedback and interaction, particularly from consumers who often feel
overwhelmed by competing market messages.
Developing Effective Ads: The Creative Strategy
Effective advertising starts with the same foundational components as any other IMC campaign:
identifying the target audience and the objectives for the campaign. When advertising is part of a
broader IMC effort, it is important to consider the strategic role advertising will play relative to other
marketing communication tools. With clarity around the target audience, campaign strategy,

and budget, the next step is to develop the creative strategy for developing compelling advertising.
The creative strategy has two primary components: the message and the appeal.
The message comes from the messaging framework discussed earlier in this module: what message
elements should the advertising convey to consumers? What should the key message be? What is
the call to action? How should the brand promise be manifested in the ad? How will it position and
differentiate the offering? With advertising, it’s important to remember that the ad can communicate
the message not only with words but also potentially with images, sound, tone, and style.
Marketers also need to consider existing public perceptions and other advertising and messages the
company has placed in the market. Has the prior marketing activity resonated well with target
audiences? Should the next round of advertising reinforce what went before, or is it time for a fresh
new message, look, or tone?
Along with message, the creative strategy also identifies the appeal, or how the advertising will
attract attention and influence a person’s perceptions or behavior. Advertising appeals can take many
forms, but they tend to fall into one of two categories: informational appeal and emotional appeal.
The informational appeal offers facts and information to help the target audience make a
purchasing decision. It tries to generate attention using rational arguments and evidence to convince
consumers to select a product, service, or brand. For example:
 More or better product or service features: Ajax “Stronger Than Dirt”
 Cost savings: Wal-Mart “Always Low Prices”
 Quality: John Deere “Nothing runs like a Deere”
 Customer service: Holiday Inn “Pleasing people the world over”
 New, improved: Verizon “Can you hear me now? Good.”
The following Black+Decker commercial relies on an informational appeal to promote its product:
The emotional appeal targets consumers’ emotional wants and needs rather than rational logic and
facts. It plays on conscious or subconscious desires, beliefs, fears, and insecurities to persuade
consumers and influence their behavior. The emotional appeal is linked to the features and benefits
provided by the product, but it creates a connection with consumers at an emotional level rather than
a rational level. Most marketers agree that emotional appeals are more powerful and differentiating
than informational appeals. However, they must be executed well to seem authentic and credible
to the the target audience. A poorly executed emotional appeal can come across as trite or
manipulative. Examples of emotional appeals include:
 Self-esteem: L’Oreal “Because I’m worth it”

 Happiness: Coca-Cola “Open happiness”
 Anxiety and fear: World Health Organization “Smoking Kills”
 Achievement: Nike “Just Do It”
 Attitude: Apple “Think Different”
 Freedom: Southwest “You are now free to move about the country”
 Peace of Mind: Allstate “Are you in good hands?”
 Popularity: NBC “Must-see TV”
 Germophobia: Chlorox “For life’s bleachable moments, there’s Chlorox”
The following Heinz Ketchup commercial offers a humorous example of an ad based entirely on an
emotional appeal:
Developing the Media Plan
The media plan is a document that outlines the strategy and approach for an advertising campaign,
or for the advertising component in an IMC campaign. The media plan is developed simultaneously
with the creative strategy. A standard media plan consists of four stages: (a) stating media objectives;
(b) evaluating media; (c) selecting and implementing media choices; and (d) determining the media
budget.
Media objectives are normally started in terms of three dimensions:
 Reach: number of different persons or households exposed to a particular media vehicle or
media schedule at least once during a specified time period.
 Frequency: the number of times within a given time period that a consumer is exposed to a
message.
 Continuity: the timing of media assertions (e.g. 10 per cent in September, 20 per cent in
October, 20 per cent in November, 40 per cent in December and 10 per cent the rest of the
year).
The process of evaluating media involves considering each type of advertising available to a
marketer, and the inherent strengths and weaknesses associated with each medium. The table below
outlines key strengths and weaknesses of major types of advertising media. Television advertising is
a powerful and highly visible medium, but it is expensive to produce and buy air time. Radio is quite
flexible and inexpensive, but listenership is lower and it typically delivers fewer impressions and a
less-targeted audience. Most newspapers and magazines have passed their advertising heydays and
today struggle against declining subscriptions and readership. Yet they can be an excellent and cost-

effective investment for reaching some audiences. Display ads offer a lot of flexibility and creative
options, from wrapping busses in advertising to creating massive and elaborate 3-D billboards. Yet
their reach is limited to their immediate geography. Online advertising such as banner ads, search
engine ads, paid listings, pay-per-click links and similar techniques offers a wide selection of
opportunities for marketers to attract and engage with target audiences online. Yet the internet is a
very crowded place, and it is difficult to for any individual company to stand out in the crowd.
Selection and Implementation
The media planner must make decisions about the media mix and timing, both of which are restricted
by the available budget. The media-mix decision involves choosing the best combination of
advertising media to achieve the goals of the campaign. This is a difficult task, and it usually requires
evaluating each medium quantitatively and qualitatively to select a mix that optimizes reach and
budget.
Unfortunately, there are few valid rules of thumb to guide this process, in part because it is difficult to
compare audiences across different types of advertising media. For example, Nielsen ratings
measure audiences based on TV viewer reports of the programs watched, while outdoor (billboard)
audience-exposure estimates are based on counts of the number of automobiles that pass particular
outdoor poster locations. The “timing of media” refers to the actual placement of advertisements
during the time periods that are most appropriate, given the selected media objectives. It includes not
only the scheduling of advertisements, but also the size and position of the advertisement.
There are three common patterns for advertising scheduling:
1. Continuous advertising runs ads steadily at a given level indefinitely. This schedule works well
products and services that are consumed on a steady basis throughout the year, and the
purpose of advertising is to nudge consumers, remind them and keep a brand or product top-of-
mind.
2. Flighting involves heavy spurts of advertising, followed by periods with no advertising. This
type of schedule makes sense for products or services that are seasonal in nature, like tax
services, as well as one-time or occasional events.
3. Pulsing mixes continuous scheduling with flighting, to create a constant drum-beat of ads, with
periods of greater intensity. This approach matches products and services for which there is
year-round appeal, but there may be some seasonality or periods of greater demand or
intensity. Hotels and airlines, for example, might increase their advertising presence during the
holiday season.
Budget

When considering advertising as a marketing communication method, companies need to balance
the cost of advertising–both of producing the advertising pieces and buying placement—against the
total budget for the IMC program. The selection and scheduling of media have a huge impact on
budget: advertising that targets a mass audience is generally more expensive than advertising that
targets a local or niche audience. It is important for marketers to consider the contribution advertising
will make to the whole. Although advertising is generally one of the more expensive parts of the
promotion mix, it may be a worthwhile investment if it contributes substantially to the reach and
effectiveness of the whole program. Alternatively, some marketers spend very little on advertising
because they find other methods are more productive and cost-effective for reaching their target
segments.
Anatomy of an Advertisement
Advertisements use several common elements to deliver the message. The visual is the picture,
image, or situation portrayed in the advertisement. The visual also considers the emotions, style, or
look-and-feel to be conveyed: should the ad appear tender, businesslike, fresh, or supercool? All of
these considerations can be conveyed by the visual, without using any words.
The headline is generally what the viewer reads first—i.e., the words in the largest typeface. The
headline serves as a hook for the appeal: it should grab attention, pique interest, and cause the
viewer to keep reading or paying attention. In a radio or television ad, the headline equivalent might
be the voice-over of a narrator delivering the primary message, or it might be a visual headline,
similar to a print ad.
In print ads, a subhead is a smaller headline that continues the idea introduced in the headline or
provides more information. It usually appears below the headline and in a smaller typeface.
The body copy provides supporting information. Generally it appears in a standard, readable font.
The call to action may be part of the body copy, or it may appear elsewhere in a larger typeface or
color treatment to draw attention to itself.
A variety of brand elements may also appear in an advertisement. These include the name of the
advertiser or brand being advertised, the logo, a tagline, hashtag, Web site link, or other standard
“branded” elements that convey brand identity. These elements are an important way of establishing
continuity with other marketing communications used in the IMC campaign or developed by the
company. For example, print ads for an IMC campaign might contain a campaign-specific tagline that
also appears in television ads, Website content, and social media posts associated with the
campaign.
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