Monday, March 7, 2016

Excerpts from Article - Management of Advertising

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor (Kotler).

Fives Ms (5 Ms) of advertising.

Mission - Money - Message - Media - Measurement

Mission: the objectives of the advertisement
Money: how many needs to be spent or how much can be spent?
Message: What is the message to be sent to get the desired response?
Media: What media should be sued?
Measurement: What are the evaluation criteria for results of the advertisement?

Objectives of Advertising

One classification of objectives is to inform, persuade or remind or reinforce.

Advertising Budget Decision - Five specific factors

Stage in the production life cycle
Market share and customer base size
Competition and clutter
Advertising frequency
Product substitutability

Adaptive-control method of setting advertising budgets

Adaptive-control method of setting advertising budgets involves tests with some market segments having low, some having high, and some present level of advertising.

Advertising Elasticity‌

Advertising Elasticity‌, % increase in sales for % increase in advertising expenditure has to be calculated.

Generating advertising messages and selecting

Advertisers use four-step process to generate advertising messages and select the appropriate message.
1. Message generation
2. Message evaluation and selection
3. Message execution
4. Message social responsibility review

Deciding on the Media

Media selection involves finding the most cost-effective media to deliver the desired number of exposures to the target audience.

Evaluating Advertising Effectiveness

Advertisers try to measure the communication effect of an advertisment - its effect on awareness, knowledge or preference and sales effect.

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