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May 23, 2014

Marketing Lessons for SBI Clerks Online Exam : Advertising


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Advertising is the popular tool of promotion as it communicates in a persuasive manner about organization or products or services non-personally through paid medial. In general term, Advertising is to announce publicity. Advertising is derived from a Latin word 'adverto'. 'ad' means towards and 'verto' means I turn. Thus, advertising means to turn attention towards a specific thing. The advertisement should provide new information or support the information the audience already has in-order to capture their attention. It should be able to persuade them and influence their attitude and purchase behavior.

According to William J. Stanton, "Advertising consists of all the activities involves in presenting to a group, a non-personal, oral or visual, openly sponsored message regarding disseminated through one or more media and is paid for by an identified sponsor".

Several steps are involved in preparing an advertising campaign. The major steps are :
  1. Analyzing advertising target
  2. Defining advertising goals
  3. Determining advertising budget
  4. Selecting advertising media
  5. Deciding advertising message
  6. Evaluating advertising effectiveness
1. Analyzing Advertising Target : The group of people to whom the advertisement is aimed at must be analyzed thoroughly, with regard to their age, income, sex, occupation, education, location, buying habits, psychology, etc. This helps in preparing effective advertising campaign. In addition to this, market situation, competition level, product features should also be studied. For this, research and interviews are conducted to know which benefits are most desired by the buyers. This leads to selection of an effective appeal for advertising message. For example, the most desired benefits by the purchaser of toothpaste may be ranked as follows on the basis of a survey
  • Decay prevention
  • Bright teeth
  • Good taste and
  • Low price.
This helps in deciding the contents of advertising message.

2. Defining Advertising Goals : The objective of advertisement must be specifically and clearly stated as it provides direction to the campaign. For example if the firm aims at creating brand, preference, it must clearly state that it wishes to establish brand preference for product among 50 lakh people within a year or if it wishes to increase sales, it must clearly state that 30% discount is offered for 15 days.
The various goals of advertising can be
  1. To Increase Sales
  2. To Create Awareness
  3. To Enter New markets
  4. To Introduce New products
  5. To build-up Image
3. Determining Advertising Budget : Before actually carryi8ng out the advertisement campaign, it si essential to decide about advertising appropriation. The advertising appropriation is the total amount of money which is allocated for advertising in a specific time period by the top management. Advertising budget is the amount spent on specific activities like media, men and other auxiliary services. There is no standard norms for deciding the amount of advertising budget. It varies fro0m company to company, even within the same industry. Various factors like objectives of adverting, product class, stage of product life cycle, size of company, competition level, economic conditions, etc. from the basis for deciding the size of budget. Deciding about the advertising, budget is the most difficult question to be answered by the management because there is no formula to arrive at the right amount. The most commonly practiced methods followed for deciding the advertising budget are
  1. Percentage of Sales Method
  2. Affordable Method
  3. Competitive Parity Method
  4. Objective and Task Method
4. Selecting Advertising Media : Media selection refers to finding the most cost effecti9ve media to deliver the desired exposure to largest audience. For this, proper combination of reach, frequency and impact is sought. 'Reach' means the number of different persons exposed to a particular media, schedule at least once during the specific time period. 'Frequency' refers to the number of times within the specified time period than an average person is exposed to the message. 'Impact' is the qualitative value of an exposure though a given medium. Media planning and selection deals with identifying various media, considering factors governing media, evaluating each media, developing media-mix, approximating media resources and phasing media. The advertiser has to know the capacity of major media types to deliver reach, frequency and impact.

The major advertising media are - newspaper, magazines, direct mail, radio, television, cable, internet, posters, advertising boards, buses and train advertising and other outdoor means. A choice between these media is made after considering various variables like product, advertising objectives, message, market potential, distribution strategy, competition level, budget, media availability, etc. In order to satisfy various consumer preferences, met competitive pressures, adjust media availability and to maximize the message impact, the company goes for multimedia strategy. This strategy of media mix helps in optimum allocation of firm's advertising funds. The funds are so distributed over different media that the last rupee spent on any one media produces the same return as the last rupe3e spent on other medias

5. Deciding the Advertising Message : The advertising message is conveyed to the prospects through advertisement copy. Advertisement copy is all written or spoken matter expressed in words, figures, pictures or symbols to convey the desired message to the target consumers. in print media, an advertisement copy consists of headlines, sub headline, body of the copy, picture or illustration, caption, slogan , brand name and a closing idea. Few people read body copy, there fore, headline and graphic must summarize the selling proposition. Advertisement copy involves lot of creativity and imagination. The advertisement copy is generally prepared by specialists - copy writers, artists, and the layout men who have enough experience and knowledge to make the advertisement attractive and effective. The advertisement copy must contain all relevant information about he product features, uses, benefits, prices, availability, etc. Fore greater effect, persuasive picture and proper color combinations should be sued without any exaggeration. Advertisement copy should be able to capture attention of prospects and encourage factorisable response.

6. Evaluating Advertising Effectiveness : The effectiveness of advertising is measured to :
  • Determine the optimum level of advertising expenditure,
  • Known whether the campaign accomplished its objective, or should the campaign be stopped, continued or improved, and
  • evaluate the need for changes in advertising message and media.
There are mainly two measures of adverting effectiveness
  1. Communication Response and
  2. Sales Response
That's all for now friends. In our next post we shall discuss about another important topic "Personal Selling". Happy Reading :)

Bhavya Vasudevan
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  1. Admin mam.. xam date out..

  2. sbi clerk notification is out vacncy 5092 total


  4. Please check sbi site guys updates available on po and clerical post out

  5. SBI Clerk Recruitment 2014-15 notification out....Total 5092 vacancies.....All the best everyone....!!!!

  6. madam/sir could you please upload more difficult questions on DI like triangular graph,spider graph etc?


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