underpin any sales and marketing activities. A brand strategy can be clearly described with this concept in place. · GTM strategy A go-to-market approach focuses on market offerings in order to achieve market growth, sales, and profitability goals across the product lifecycle. To be truly effective in achieving your business goals, your GTM and brand strategy must be inextricably connected. · Customers Your brand is identified by your customers because it is the memory of an experience associated with your product, service, or organisation. To remain current and important, you must have a strong understanding of your customers' changing needs. · Competitors In order to position your brand in preparation for strategic and tactical marketing campaigns, you must understand and identify your own brand, just as you must understand and define your own. Step 3: Analyze Online metrics Examination of past and current brand success is essential for brand management purposes, including brand growth, repositioning, and new brand development, for existing and established brands. It also has an effect on campaign plans and tactical marketing campaigns that will be implemented in the future. There are a number of metrics and KPIs that can be used to evaluate brand perception, and some of the most important are described below. Others are protected under tracking in the results section and can be added to this section if further research is required. Awareness The brand awareness metric tests the brand's name recognition or exposure, which can be achieved in real time using the internet and different methods. Many KPIs can be used for this, including search volume, which monitors your brand by name, site traffic, which measures the level of interest around your brand, social noise, which examines your social media presence, and organic reach, which counts the number of unique accounts that have seen a post or a particular piece of content. 51 CU IDOL SELF LEARNING MATERIAL (SLM)
Familiarity The familiarity metric is a higher bar than recognition because it measures a potential customer's knowledge and understanding of your brand. That includes your brand's mission and values, or at least how the audience perceives them. The better the brand is on almost every level, the higher the brand recognition. Consideration The consideration metric is based on buying intent and is an essential phase in a customer's purchasing journey. It is also important to measure this in order to understand why your (potential) consumers want to buy your brand, what is keeping them from doing so, and how they can be motivated further to make a purchase. Step 4: Define Brand values For a new brand or startup, values are the cornerstone of your community, service, product, and communications, and they must be established simultaneously with the growth of your business, product, or service. Brand values are the uncompromising truths and guiding principles that express what you stand for, and they are the primary driving force behind your brand, company, behaviours, and decisions for existing organisations. Brand pillars The identification of the key company product and service pillars that make up the backbone of your brand is the first step in developing a strong brand strategy. These foundations become the non-debatable, non-subjective universal truths that will drive the brand for the rest of its life. They can enhance the brand's visual profile by representing its intent and providing clarity by concentrating on core elements that when combined produce something compelling, distinct, and important. Key differentiators Differentiation must be a top priority in the marketing campaign as branding becomes more competitive. Being better than other brands is no longer enough to gain a competitive edge, so it's critical to recognise and improve the main differentiators. These differentiators will combine to form a comprehensive collection of unique features and benefits that will serve as the framework for creating and sustaining your competitive edge. Positioning statement 52 CU IDOL SELF LEARNING MATERIAL (SLM)
A brand positioning statement is a short section of text that clearly explains what your business stands for and why it exists. It's similar to your elevator pitch. It should provide information about what you sell, who your target audience is, how you compare to rivals, and your value proposition. If you have all of the basics of your brand in place, such as the brand essence, core values, and key differentiators, as well as your brand pillars, you can craft your positioning statement. Step 5: Prepare Attributes Creating your brand attributes will enable you to reflect your company's brand characteristics, which will aid in the development and creation of your brand identity. These characteristics can combine to form a set of features that illustrate the physical and personality characteristics of your brand as expressed in photographs, behaviour, or assumptions. Relevance, consistency, credibility, motivation, and appeal are examples of attributes. Brand essence Your brand essence is the soul and heart of your business. It may be an intangible trait, a mantra, or a few well-articulated phrases that become a brand's tagline. Developing a brand essence can become a crucial building block to branding success, whether you have an existing brand or are creating a new one. It will assist you in defining your brand, giving it sense and added value, and allowing you to stand out from the competition. Personality The human characteristics you give your brand will become the driving force behind the overall brand experience, and the brand personality you develop for your product or service will become the human characteristics you give to your identity. Establishing a brand personality is an important part of the brand management process since it is a distinct attribute that can bring the brand to life, resulting in positive interactions and relationships rather than transactional activities. Content strategy Early in the branding process, defining a content plan will aid in improved decision-making and close-knit communication. Goals should be included in the content plan, as well as the details required to guide the strategic marketing decisions. Clear goals that are consistent with the brand's target demographic, consumer journey, platforms, and messaging should be described. 53 CU IDOL SELF LEARNING MATERIAL (SLM)
Step 6: Create Brand name Choosing a brand name is a challenging challenge, and having a well-defined narrative will help you get it right. This necessitates thorough planning, and the steps for doing so are outlined in this brand management process. You're ready to begin the naming process once you've completed the exercise of exploration and positioning, which includes the different elements needed to create a new brand, as well as your brand values and pillars. There are a few steps to take to ensure you get it right, but your brand name is essentially your storey condensed into its simplest form. It must embody something, be able to catch people's attention, be timeless, indestructible, simple to say and remember, and allow for brand extensions, taglines, and slogans. Messaging What you say and how you say it is arguably the most important thing after identifying who you are and what you are as a brand. As a consequence, messaging must be at the forefront of everything you do, both in writing and in person. Your brand's message is the overarching value proposition that runs across all of the internal and external communications. It's what inspires, persuades, and motivates people to connect with your brand, attracting and eventually retaining them as employees and customers. Tone of voice Your brand's tone of voice is its mood, or how it interacts with its target audience. In written form, the brand style is created by combining personality and tone of voice, but tone is what distinguishes the average from the best in the long run, and it must be consistent throughout all of your brand communications. Trademarks Protecting your newly created asset after establishing your brand identity is a crucial move that should be taken early in the branding process. Step 7: Design Logo and tagline Your logo design is the most important part of your brand identity, and it must represent your company's values and ideas while being created. It should be concise, distinct, and easily identifiable in the minds of your target audience. Your tagline is an expression of your brand; 54 CU IDOL SELF LEARNING MATERIAL (SLM)
it should be memorable and meaningful, and it should support your brand's overall positioning in a way that conveys life and personality. Unlike a campaign-based brand slogan, the tagline should be consistent and become synonymous with your brand over time. Graphic style Your brand's graphic design is how it is visually depicted, and it must be carefully considered. To achieve the perfect look and feel for your brand identity, your logo and graphic style should be established together. In order to create a visual style that will resonate with the target audience, brand attributes should be checked. Key elements such as typography, photography, graphic images, symbols, and illustrations will be used to visually reflect the brand's essence, values, and personality. Colour Palette The brand management process involves brand characteristics and strategic analysis to help determine your brand's colour palette. Although certain colours evoke specific emotions, predicting consumer response to colour appropriateness is much more important than the colours themselves. The colours, once established, will reinforce the brand's values as well as the personality of the goods and services it provides. Guidelines The aim of guidelines is to ensure continuity and brand credibility across all marketing and communications by defining the criteria and requirements of your brand's visual and descriptive identity. Step 8: Produce Promotions Marketing promotion is a crucial and all-encompassing way of bringing the brand and core values into the public eye. It focuses on the wider aspect of promotion, including the four components of your company's marketing mix (product, price, promotion or distribution). Advertisements, press releases, web pages, and personal sales campaigns are all examples of advertising practises aimed at growing consumer recognition. Campaigns and slogans Brand marketing strategies are well-thought-out, strategic, and laser-focused activities aimed at achieving a particular objective, such as increasing awareness of a new product or 55 CU IDOL SELF LEARNING MATERIAL (SLM)
gathering consumer input. They usually use a mix of platforms, such as email, pay-per-click, ads, and social media, to reach customers in a number of ways. Slogans are used to give the advertisement a clear and consistent theme in order to spread the main message. A campaign should run for six weeks to have the greatest effect, and no longer than eight weeks to avoid being too popular with its target audience. Media mix The media mix, which is used to promote the brand and meet its marketing goals, is made up of a variety of advertising platforms. As distribution channels diversify and consumer experiences become more nuanced, selecting the right channels, where to promote them, and when to promote them takes more consideration. In order to deliver a highly successful and fully integrated media plan, it's important to first understand the consumer profile through segmentation and personas. Apps Mobile is the most targeted, personalised, and real-time marketing platform available, and Apps should be an integrated promotional element for your brand because they provide a unique way to engage your customers. Step 9: Rollout Advertising and publicity When it comes to raising awareness, brand advertising encapsulates the brand's meaning, ideals, and personality, and is used to build a relationship and bond with your target audience over time. Direct response advertisement is used to elicit an immediate response from prospects and persuade them to act. Using publicity in the mix can be a strong and cost- effective brand-building method, and it can also be a cost-effective replacement for brand ads for smaller businesses. Web and e-commerce Your website is a storefront that conveys everything about your brand and ideals in a single glance. And, in order to be effective online, your brand must be immediately identifiable, engaging, and genuine. To do so, the website or online e-commerce store must have the essential ingredients for success in order to have a unique user experience. Clear calls to action, a refined user interface, highly impactful, appropriate, engaging notifications and tools, and all of this should be supported by a completely optimised and integrated SEO structure. 56 CU IDOL SELF LEARNING MATERIAL (SLM)
Email marketing Since email marketing gives you full control about what, how, where, and how you interact with your customers, it can be an efficient way to boost brand awareness and sales. It will allow you to form direct connections with your audience and, if properly set up, will help you maximise the return on your marketing campaign. Social media All modern-day brands must have a social media presence in order to communicate with their customers. Quality content, born out of your brand's core values and personality, should be at the heart of all your communications strategies to effectively make this relation. Delivering high-value content, imagery, and information through your preferred outlets can provide a voice for your brand's messages, resulting in deep customer engagement. Step 10: Monitor Association A brand's connections are the unique thoughts and impressions it evokes. Brand attitude and distinction can be used to determine the effect of brand affiliation. Experience The secret to good brand management is to create a meaningful and memorable brand experience for your customers through the multiple touchpoints you and your company have with them. Analysis of social media, subscriptions, database volume, and sales are all used to determine its efficacy. Purchasing Your sales funnel is one of the most critical business metrics that needs careful consideration. It is how you acquire, convert, close, and maintain customers. The measures at the end of the purchase process, regardless of how the sales funnel is segmented, calculate conversion rates and costs and tell you a lot about your customers' shopping habits. Loyalty Brand loyalty is an important component of brand marketing because it is an indicator of how likely customers are to want to do business with you. Surveys with established metrics that gather input from current customers are the most powerful way to quantify brand loyalty. 57 CU IDOL SELF LEARNING MATERIAL (SLM)
Track and adjust Tracking brand output should be a central and essential part of the brand management process, whether you're introducing a new brand or in the middle of a promotional campaign rollout. Although some marketing components can be learned and modified over time, other web-based aspects can be evaluated and adjusted in real time in response to customer actions or market conditions to improve their effectiveness. 3.12 ETHICS IN ADVERTISING Ethics refers to \"good behaviour\" or \"conduct that is appropriate for the society and time period.\" Various forms of behaviour and actions are regarded as “good” or “bad” by popular consensus. In other words, ethics refers to the moral concepts and values that guide an individual group's acts and decisions. Ethics is a choice between right and wrong, between good and evil. It is regulated by a collection of moral principles that apply at a specific time, in a specific place, and in a specific society. In the end, ethics is linked to group behaviour, thus establishing standards for a person to obey in accordance with the group norms. Target marketing is a good example of how a particular action can be legal but still be unethical. There is no law banning tobacco firms from selling their goods to Africans and Americans, but there is one in India, but it only applies to Doordarshan. Similarly, alcoholic beverage firms market their products to not only college students but also underage drinkers. Alcohol-related issues have risen as a result of these ads. Another serious problem in the advertising industry today is advertisements that expose pornography. Advertisements that promote permissiveness and objectify women are widely panned in society. As a result, even advertisement has ethical significance. In advertising communication, the mixing of art and reality is regulated by ethical standards. An advertising must be honest and ethical in today's dynamic and buyer's market. When an advertisement is dishonest, the organization's reputation loses. The reality in advertising must be seen from the consumer's perspective rather than from a legal standpoint. The advertising industry has been chastised for making false or exaggerated statements about the products, goods, and services it promotes. It is often accused of glorifying those unhealthy behaviours or tendencies, as well as promoting a consumerism society. 58 CU IDOL SELF LEARNING MATERIAL (SLM)
It is, however, incredibly difficult to draw a straight line between what is true and what is false. However, the efficacy of an advertising is measured by its effects and customer acceptance. The product must live up to its promises. Advertisements should be tasteful and not vulgar. It has to be accurate. Gambling is immoral as well. Celebrities promoting a product and sharing misleading information are often chastised. Since advertising is a social mechanism, it must adhere to time-tested social standards and should not offend our moral sensibilities. In a nutshell, ethics are codes of conduct or morality principles that direct us toward the correct or best course of action in a given situation. Ethics differ from individual to person and society to society. Bear in mind that everybody has different experiences, beliefs, and interests. You may see no problem with advertising for cigarettes, alcohol, or sexually explicit advertisements, but many other students, like myself, condemn these acts on moral and ethical grounds. You'll have to come to your own conclusions on what's right and wrong. 3.13 SUMMARY Integrated Marketing Communication (IMC) entails organising the different promotional elements and other marketing activities that interact with a company's consumers in order to provide a coherent positioning and marketing message. The message must be packaged in the correct format so that the sender can deliver the correct message to the recipient. Because television and print have the highest retention, marketers use them the most. After decoding the letter, the recipient is the one who makes the decision. To put it another way, the recipient is your final client. Non-personal messages about a product or service that are not paid for or operated under the auspices of a sponsor are referred to as public relations. 3.14 KEYWORDS Build Relationships: A partnership is a long-term bond between a company and its customers. Cost effective: Integrated marketing communication allows for the most efficient use of resources. Increased profits: it also boosts profits by improving performance. Restrict creativity: IMC has the ability to limit creativity. Advertising: Advertising is any type of non-personal contact about a company or its products that is paid for by a specific sponsor. 59 CU IDOL SELF LEARNING MATERIAL (SLM)
3.15 LEARNING ACTIVITY Find out the components of integrated marketing communication programme of HUL, P&G and ITC. ___________________________________________________________________________ ___________________________________________________________________________ _________________. Advertising aims either at informing, persuading, or reminding consumers about a product or service. For accomplishing each of these objectives, collect three ads that address at least one of these objectives. Do you think the ads are effective? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________. 3.16 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is meant by integrated marketing communication? 2. Define integrated marketing communication 3. List the features of integrated marketing communication 4. State the framework of communication model. 5. What is meant by brand management? 6. List the process of brand management Long Questions 1. Describe the evolution of integrated marketing communication 2. Explain the features of integrated marketing communication 3. Discuss the advantages and disadvantages of integrated marketing communication. 4. Explain the marketing communication model 5. Discuss the tools of integrated marketing communication 6. Explain the principles of brand management 7. Discuss the process of brand management 8. Describe the ethics in advertising 60 CU IDOL SELF LEARNING MATERIAL (SLM)
B. Multiple choice Questions 1. The concept of ______________ suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. a. Public relations b. Integrated market planning c. Integrated marketing communications d. Global cultural imperatives 2. If a company wants to build a good “corporate image,” it will probably use which of the following marketing communications mix tools? a. Advertising b. Public relations c. Direct marketing d. Sales promotion 3. _________________ is direct communications with carefully targeted individual consumers to obtain an immediate response. a. Personal selling b. Public relations c. Direct marketing d. Sales promotion 4. Which of the following major promotional tools use the telephone, mail, fax, E-mail, and the Internet to communicate directly with specific consumers? a. Advertising b. Public relations c. Direct marketing d. Sales promotion 5. IMC, as presented in the text and in context with promotion, stands for_______ a. International manufacturing capacity. b. International monetary consistency. 61 CU IDOL SELF LEARNING MATERIAL (SLM)
c. Integrated marketing communications. d. Integrated marketing corporations. Answers 1.(c) 2. (b) 3. (c) 4. (b) 5. (c) 3.17 REFERENCES Reference Books: R1 S. A. Chunawalla, Advertising: An Introduction Text, Himalayan Publishing House, New Delhi. R2 Belch, G. E. & Belch, M. A, Advertising and Promotion: An integrated marketing communications perspective, 9th Edition, Tata McGraw Hill, Noida. Textbooks: T1 Wells W., Burnet J. and Moriarty, S. Advertising: Principles & Practice, Pearson Education Ltd, United kingdom. T2 S.A. Chunawalla, KC Sethia, Foundations of Advertising, Himalayan Publishing House, New Delhi. . 62 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 4: ADVERTISING AGENCY 63 Structure 4.0 Learning Objectives 4.1 Introduction 4.2 The organizations in advertising 4.3 The people in advertising 4.4 Major players in advertising 4.5 Advantage of using agencies 4.6 Selecting an agency 4.7 Agency selection criterion 4.8 Agency accreditation 4.9 Agent client relationship 4.10 Brand manager 4.11 Major roles of a brand manager 4.12 Challenges faced by brand manager 4.13 Summary 4.14 Keywords 4.15 Learning Activity 4.16 Unit End Questions 4.17 References 4.0 LEARNING OBJECTIVES After studying this unit, students will be able to: Discuss the major players in advertising Describe the advantage of using agencies Explain the selection criteria of the agencies Discuss the major roles of a brand manager Describe the challenges faced by brand manager CU IDOL SELF LEARNING MATERIAL (SLM)
4.1 INTRODUCTION An advertiser firm can entrust the planning of a marketing campaign to an advertising agency. The advertising agency is a self-contained company that offers professional services in advertising and marketing in general. An advertising agency is defined as “an entity that consists of the acquisition as a principal of the right to use space or time in advertising media and the administration of advertising appropriations made by advertisers on behalf of the advertisers.” As a consequence, it is a business founded solely to provide advertising services. A modern advertising agency can have the specialised expertise, skills, and experience needed to create a successful marketing campaign. There are authors, musicians, media experts, analysts, television producers, account executives, and other professionals on staff. These experts collaborate to fully comprehend the advertiser's advertising strategy specifications and create effective advertising plans and strategies. The facilitating institution of the advertising industry is the advertising agency. Large advertising agencies organise different activities and maintain a hierarchical structural partnership between various departments because they offer a full range of services to advertisers, from the creation of an idea to the exposure and printing of an advertisement.. 4.2 THE ORGANIZATIONS IN ADVERTISING The advertising industry is classified into four categories. Advertisers and agencies are the two most significant categories. Advertisers vary in size and type from large multinational corporations to small independent retailers, and from service organisations to labour unions to political action committees. The third category, medial, sells time and space to deliver the advertiser's message to the target audience. Photographs, illustrators, photographers, digital service bureaus, colour film separators, video production houses, and other suppliers that assist both advertisers and agencies in preparing promotional materials are included in the last category, the suppliers. Suppliers may include consultants, research firms, and other technical services who work with both advertisers and agencies. 4.3 THE PEOPLE IN ADVERTISING Many people associate ads with copywriters and art directors who work for advertising agencies. Even if it's only one guy, most businesses have an advertisement department. A company's advertisement role includes a large number of people: Primary advertising decisions are made by company owners and top executives. Sales and marketing staff are actively active in the creative process, aiding in the selection of an ad agency, and reviewing potential ad campaigns. 64 CU IDOL SELF LEARNING MATERIAL (SLM)
Advertisements, brochures, and other materials are created by artists and authors. Product engineers and designers provide feedback on the creative process as well as information on similar products. Administrators assess the expense of advertising campaigns and assist in budgeting. Clerical personnel are in charge of coordinating various advertising activities. 4.4 MAJOR PLAYERS IN ADVERTISING Advertising is a multifaceted profession. It serves a number of purposes and covers a wide range of sub-disciplines that necessitate specialised skills. Advertising conveys a message, a concept, or a belief. It's possible that the message is commercial or social in nature. There are five main players in the advertisement communication process: Advertiser Advertising Agency Media Suppliers Target Audience The Advertiser A letter about the advertiser's goods or services must be sent out. The advertiser hires an advertising agency to help them advertise. In industry jargon, an advertiser is referred to as an \"Account.\" The advertiser, or the individual or organisation who starts the advertisement process, is the first step. The target audience, media, advertisement budget, and campaign length are all decided by the advertiser. The advertiser starts the advertisement process by finding a business challenge that can be solved by advertising. Remember the storey of the Volkswagen Beetle, also known as the Worm (the Doyle Dane Bernbach advertising agency). The Advertising Agency 65 CU IDOL SELF LEARNING MATERIAL (SLM)
Advertisers employ agencies to help them organise and execute their marketing campaigns. Agencies have the skills to develop a plan, including strategic and creative experience, media awareness, staff talent, and the ability to negotiate favourable terms for their clients. Ad companies are in charge of producing commercials for their clients. The firm acts as a liaison between the marketing department and the advertisement agency, as well as other vendors. Media The media are the contact networks that bring messages from the advertiser to the viewer. It is divided into two categories: mainstream and niche media. Print, broadcast, out-of-home, and interactive media are all forms of media. People become more conscious as a result of the media, and this knowledge prompts them to think. The cost of mass media is usually low. Example: \"Let's make some news if there isn't any.\" Let's make it a point of contention. The public would be required to pay attention.“ Suppliers Suppliers are a category of professional service providers that assist marketers, advertising agencies, and media in the production and placement of advertisements by offering specialised services such as: Offer a wide range of services, such as copywriting, jingle writing, photography, and market analysis. The advertiser may lack experience in their profession, be overburdened, or need a fresh perspective. Suppliers are needed because no agency can afford to maintain all of the facilities on a long-term basis. Vendor facilities are frequently less expensive than maintaining a permanent in-house facility. Target Audience The word \"target audience\" refers to a group of people who are expected to receive the advertiser's message. They are made up of people with similar characteristics who have been established as being likely to purchase an advertiser's product. The identification of the client or potential customer—the target audience for the advertising message—is the starting point for all advertising. 66 CU IDOL SELF LEARNING MATERIAL (SLM)
The target audience's personality has a strong impact on the overall advertisement strategy. Purchasers aren't always the ones that use the stuff. Example: In the case of baby goods, parents buy them and their children use them. Kellogg's product must have two distinct target markets. They create one commercial for the target audience of children and another for the target audience of parents.. 4.5 ADVANTAGE OF USING AGENCIES 1. Using agencies provides a range of advantages to the marketer. An advertisement and marketing firm typically has a wealth of experience working with a variety of issues. 2. The lessons learned by the organisation when interacting with other clients are important inputs for marketers. 3. An agency can hire specialists in different areas of advertising plan and strategy planning and execution. 4. The individuals are not part of the marketer's management team. They add critical and impartial perspectives to the problem-solving of ads and other marketing issues. 5. Marketers should take advantage of the media's discounts for agencies. This is a good incentive for them to hire an agency because the media costs aren't affected significantly. 6. Since a large or medium-sized advertising agency may spread the expenses of its employees over multiple customers, the organisation typically does not have as many types of specialists as a large or medium-sized advertising agency. For the same sum of money, it may accomplish more. 7. An agency should have an objective, outside perspective to the organisation if the agency members are not behaving as \"yes men\" in order to retain the advertiser's account. 8. The business will also benefit from the agency's experience with a range of other goods and customers. 9. Another benefit is that the corporation is under more pressure to deliver positive results than the company's own department. It is simple to end a partnership between an agency and a client; however, it is more challenging to get rid of an inefficient advertising department. 10. The way agencies are compensated; using an agency does not cost the advertiser even a single paisa. 67 CU IDOL SELF LEARNING MATERIAL (SLM)
4.6 SELECTING AN AGENCY The value of compatibility should be kept in mind when choosing an advertising agency. It takes a long time for an organisation to understand the issues and gather the information required for a client's smooth operation. Despite the fact that this is a long-term commitment, it pays off handsomely. As a consequence, an organisation should not be changed regularly. (i) Choose an agency and (ii) Get the best out of an agency. Choosing an Agency The department should be able to think independently on a range of issues rather than relying on preconceived ideas that it is reluctant to change to solve them. The company should have prior experience marketing products and concepts. It should be able to produce more than expected performance. The business should be financially stable and willing to fund both local and national marketing campaigns. The size of the department should not be taken into consideration. A large agency is not always superior to a small agency. The agency should not be afraid to correct the advertiser if it thinks he is mistaken. To solve problems, the department should be able to use both science and brainpower. Choose an organisation that intends to make a profit from an account rather than one that claims to operate on a no-profit-no-loss basis. Getting the best out of an Agency If good service is required from the department, it should be given all available details. The advertiser can go to some length to keep the agency guessing. The department should be pushed to deliver results. Criticism should not be solely negative when it is given. It can also be advantageous. Unnecessary data should be avoided at all costs. Instead of expecting the agency to contact the junior employees, the advertiser should assign a special individual to serve as a representative between his business and the agency. 68 CU IDOL SELF LEARNING MATERIAL (SLM)
The advertiser should grant the agency the right to deviate from the standard in its presentations if appropriate. If the agency does additional work, it should be compensated accordingly. To come up with fresh ideas, the advertiser should look at the work his agency does with other clients. It's past time for top management to view ads as a fundamental capital investment, a long- term investment that does not always produce immediate results. The management should unerstand that advertising serves two purposes.. It must sell products today and the company's name in order for tomorrow's products to sell as well. 4.7 AGENCY SELECTION CRITERION The following are some considerations to make when choosing an advertising agency: Suitability The advertising agency that best meets the needs of the producer or trader is chosen based on the type of advertisement, the agency's position, credit policies, and other factors. Usually, an agency close to the advertiser's location is chosen. This will assist you in contacting the department. Second, the scale of the agency is taken into account in terms of staff, programmes, and services rendered. Finally, there are the interactions and partnerships with different media. Fourth, policies such as conservative policies, outgoing policies, and so on are considered. Finally, the advertising considers whether or not the agency has accounts with rivals. Facilities and Services Provided Some agencies have new photography, typesetting, printing, and filming equipment. The agencies that provide the most services for the least amount of money are preferred. Imagination The agency's personnel's imaginations and artistic talents are taken into account. Creativity of photography, designing, copywriting, media, and other areas gives the advertiser's goods and services a distinct identity. Past Record The agency's track record in terms of number of customers, profitability, and credit credibility, among other things, aids in the selection process. The advertiser inquires into the agency's timeliness, punctuality, and track record in order to assess whether or not the agency is trustworthy. 69 CU IDOL SELF LEARNING MATERIAL (SLM)
Reputation The advertising agency's prestige assists in the selection process. Timeliness, a successful presentation, good connections, timely service, and other factors all contribute to the agency's popularity. Management The ownership and management of the company, as well as their practises, play a role in selecting an advertising agency. Their policies, which affect selection, can be conservative or dynamic. Rates Charged The advertiser takes into account the agency's fees. In certain cases, the prices are dictated by the prestige of the organisation, the services it provides, the strategies it hires, and so on. As a result, an advertiser will prefer an agency that will offer the resources he needs while remaining within his budget. Size of the Agency It is important to understand the advertising agency's size. The bigger the agency, the better; nevertheless, small can be beautiful because a small agency can devote more time to its clients' work. 4.8 AGENCY ACCREDITATION The Indian Newspaper Society, Doordarshan, and All India Radio all accredit advertising agencies, granting them professional status. The media owners offer credit to approved organisations. They pass this profit on to their customers, who also have access to credit. Furthermore, such agencies must adhere to the media owners' code of ethics. This means that the customer receives at least a basic level of support from the Ad Campaign. When an institution is granted accreditation, it ensures that it has met the following requirements: (a) With Doordarshan / AIR and the Indian Newspapers Society, the agency has met the minimum business limits. (b) During the time of provisional accreditation, the organisation has demonstrated its creditworthiness. (c) The organisation has followed the accreditation rules set out by the media. 70 CU IDOL SELF LEARNING MATERIAL (SLM)
4.9 AGENCT CLIENT RELATIONSHIP The relationship between the agency and the client must be one of mutual trust and confidence. The ideal partnership yields maximum advertisement effectiveness at a reasonable cost and fair compensation for the advertising agency. It is defined by continuous and complete two-way communication between individuals in the two organisations in a mutually trusting environment. The advertiser and the agency's interdependence aids in the development of successful ads as part of the company's marketing campaign. What are the clients' responsibilities? : 1. Always treat the organisation with respect. 2. Have as much detail as possible about the promotional product and the company. This makes it far easier for the department to do its job. 3. Don't haggle about the agency's rates unless it's absolutely necessary. 4. Encourage the department to do its best work. Media costs, commissions, and other expenditures incurred by the agency must be charged on time. The client does not wait for the firm to remind him or her to pay. 5. Do not change the department just to change it. 6. Accept the plans that the department has submitted. The client should avoid arguing just to argue. 7. Provide enough time for the client to create an effective promotional strategy. The client should not place the agency in a time rush unnecessarily. 8. Keep disagreements to a minimum. 9. Complete the charges for a specific strategy or campaign far ahead of time. 10. Provide the agency with any details from his end that will assist the agency in better serving the client. When something goes wrong, though, the entity bears the brunt of the blame, and the relationship always ends. Many times, a transition is made simply for the sake of change. Advertisers prefer an agency that is already well-known in the industry, such as Lintas and Everest in India. On occasion, the firm will voluntarily withdraw from a client account for different reasons. There could be various puritans, views, ideas, and so on, or the organisation could decide to take on another competitive account. Typically, an organisation would leave regularly losing accounts, i.e., advertisers that consistently lose money over time. When a client becomes overbearing, it may resign. Many talented people in the advertising industry dislike having their professional work dictated to them by their clients. Such clients can be abandoned if things get out of hand. Client turnover, on the other hand, is not a good idea since it places both parties at a disadvantage. However, in certain inevitable cases, there might be no choice but to move to a new client. 71 CU IDOL SELF LEARNING MATERIAL (SLM)
4.10 BRAND MANAGER The application of marketing strategies to a particular product, product line, or brand is known as brand management. It aims to enhance the customer's understanding of the product's worth, thus growing brand franchise and brand equity. In comparison to marketing personnel manager positions, \"Brand Managers\" also have line-management responsibility for a brand's P&L (Profit and Loss) profitability. In many organisations, brand management is seen as a wider and more strategic position than marketing alone. 4.11 MAJOR ROLES OF A BRAND MANAGER Analyze the market and its operation, including the market's overall growth drivers, as well as the output of different market segments within it, in relation to the competition. Ensure that the brand's platform is sustained and that the brand's standards and branding are maintained. Make suggestions for future brand strategy, including positioning, extensions, and other variables. Monitor the marketing mix, which includes price, advertising, packaging, and other factors. Evaluate brand efficiency by comparing spending to volume, benefit, and other variables. 4.12 CHALLENGES FACED BY BRAND MANAGER The following are some of the obstacles that brand managers face: 1. Savvy Customers: Customers and companies are becoming more familiar in marketing and knowing how it works. Because of the well-developed media industry, corporations' marketing actions and motivations have gained more coverage. Many people feel that persuading customers of conventional communications is more complicated now than it was in the past. Others assume that customers' perceptions of goods, services, and brands have shifted. For example, Saatchi and Saatchi's Kevin Roberts argues that businesses must go beyond brands to build \"confidence marks\"—a name or emblem that emotionally links a business with its customers' expectations and aspirations. 72 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Brand Proliferation: The proliferation of new labels and products, as a result of the increase of line and brand extensions, is another major shift in the branding climate. As a result, a single brand name may now be associated with a range of goods of varying degrees of similarity. Crest Mint, Crest for Kids, Crest Baking Soda, and Crest Multi Care Advanced Cleaning have all been added to Procter & Gamble's original Crest toothpaste line. 3. Media Fragmentation: The fragmentation of conventional advertising media, as well as the rise of digital and non-traditional media, promotion, and other communication alternatives, is a major shift in the marketing climate. Advertisers are increasingly opting for 15-second slots rather than the conventional 30- or 60-second spots, resulting in more cluttered commercial breaks on network television. Marketers are increasingly investing in non-traditional and emerging ways of communication, such as digital and electronic media, sports and event sponsorship, in-store advertisements, and mini billboards in transit buses and other locations. 4. Increased Competition: Factors on both the demand and supply sides have led to the rise in competitive intensity. On the demand side, many goods and services have achieved maturity, if not decline, in terms of consumption. As a result, brand revenue growth can only come at the expense of rivals by gaining some of their market share. 5. Increased Costs: As the cost of launching a new product increases, so does the cost of launching a new product. It will be difficult to match the amount of investment and support that brands have received in previous years. 6. Greater Accountability: Stock investors search for reliable and solid earnings results as a symbol of a company's long-term financial health. As a result, marketing executives can find themselves in a position where they must make decisions with immediate benefits but long- term consequences. Furthermore, many of these same managers have had rapid job turnover and promotions in the past, and they do not expect to stay in their current roles for long. These multiple organisational stresses can promote fast fixes, which may have negative long- term implications. 4.13 SUMMARY A modern advertising agency has specialised expertise, skills, and experience that are needed to produce an effective advertising campaign. An advertiser company can delegate the advertising campaign to a group of experts known as an advertising agency. The department should be able to think independently on a variety of issues rather than relying on preconceived ideas that it is unable to alter to solve them. If good service is required from the department, it should be given all available details. 73 CU IDOL SELF LEARNING MATERIAL (SLM)
The agency's track record in terms of number of customers, profitability, and credit credibility, among other things, aids in the selection process. 4.14 KEYWORDS Advertiser: A letter about a product or service must be sent out. Advertising agency: is in charge of creating advertisements for their clients. Media: refers to the contact networks that bring messages from the advertiser to the viewer. Target audience: a collection of people who are supposed to hear the advertiser's message. Brand management: is the use of marketing tactics to promote a particular product, line of products, or brand. 4.15 LEARNING ACTIVITY A study on how brand management differ from strategic brand management? Clinic Plus vs Pantene Guides the communication effort ___________________________________________________________________________ ___________________________________________________________________________ _______________________________. Communicates the brand identity with richness and texture ___________________________________________________________________________ ___________________________________________________________________________ ____________________________. If the brand is specified only in terms of attribute associations, very little meaningful guidance is provided. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________. 4.16 UNIT END QUESTIONS 74 A. Descriptive Questions CU IDOL SELF LEARNING MATERIAL (SLM)
Short Questions 75 Short Questions 1. Outline the organizations in advertising 2. State the people in advertising 3. List the key players in advertising 4. Discuss the criteria for the granting of accreditation to an agency. 5. Discuss the agency client relationship 6. Write short note on brand manager Long Questions 1. Explain the advantages of using agencies 2. Explain about the agency selection 3. Explain the criteria for agency selection 4. Discuss the major roles of a brand manager 5. Describe the challenges faced by the brand manager. B. Multiple choice Questions 1. Advertisement aims at _________ a. Product selling b. Marketing c. Customer relations d. Mass communication 2. Series of advertisement messages that share a single idea or theme is a. Advertisement Campaign b. Advertisement Group c. Advertisement Cluster d. Advertisement Series 3. Which of the following is more of personal medium of advertisement? a. Internet Advertisement b. Broadcast Media CU IDOL SELF LEARNING MATERIAL (SLM)
c. Direct Mail Advertising d. Print Media 4. Out of the following which one is not a brand. a. Coca Cola b. Microsoft c. Company d. None of the above 5. Which one are not the characteristics of a brand. a. Expected b. Augmented c. Potential d. General Answers 1. (d) 2. (a) 3. (c) 4. (c) 5. (d) 4.17 REFERENCES Reference Books: R1 Belch, George E. and Belch Michael A, Introduction to Advertising and Promotion. 3rd ed. Chicago. Irwin, I995. R2 Hard, Norman, The Practice of Advertising Oxford, Butterworth Heinemann, 1995 Textbooks: T1 Rogers Everett M, Diffusion of Innovation, Free Press, 1962. S H H Kazmi, Marketing Management, Excel Books, New Delhi. T2 S.A. Chunawalla, KC Sethia, Foundations of Advertising, Himalayan Publishing House, New Delhi 76 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 5: MARKET RESEARCH 77 Structure 5.0 Learning Objectives 5.1 Introduction 5.2 Meaning & Definition 5.3 Objectives of Market Research 5.4 Why Market Research is Important 5.5 Features of Market Research 5.6 Types of Market Research 5.7 Process of Market Research 5.8 Benefits of an Efficient Market Research 5.9 Market Research Tips 5.10 Why does Every Business Need Market Research 5.10 Summary 5.11 Keywords 5.12 Learning Activity 5.13 Unit End Questions 5.14 References 5.0 LEARNING OBJECTIVES After studying this unit, students will be able to: Explain the objectives and importance of market research Explain the features of market research Classify the types of market research Explain the process of market research Describe the benefits of an efficient market research CU IDOL SELF LEARNING MATERIAL (SLM)
5.1 INTRODUCTION Marketing is a fast-paced, ever-changing market operation. Due to numerous crises such as commodity and energy shortages, inflation, economic recessions, high unemployment, dying industries, dying businesses, terrorism and war, and the impact of rapid technological changes in some industries, the role of marketing has changed drastically. Such developments, such as the Internet, have compelled today's marketing executives to become more market-driven in their strategic decision-making, necessitating a formalised method of gathering reliable and timely information about consumers, goods, the industry, and the overall environment. Marketing research is a method that can assist them in this endeavour. Marketing research is a process or collection of processes that connects suppliers, consumers, and end users to marketers through data that is used to recognise and define marketing opportunities and challenges, create, refine, and analyse marketing behaviour, track marketing results, and improve understanding of marketing as a process. Marketing research defines the data needed to resolve these problems, establishes a data collection system, manages and implements the data collection process, analyses the results, and communicates the findings and their implications. It is the systematic compilation, documenting, and study of qualitative and quantitative data on marketing-related issues. Marketing research aims to determine and evaluate how shifting elements of the marketing mix affect consumer behaviour. Expert practitioners may wish to differentiate between market research and marketing research because market research is concerned specifically with markets, whereas marketing research is concerned specifically with marketing processes. 5.2 MEANING & DEFINITION Market research is the method of personally interviewing potential consumers to assess the feasibility of a new service or product. Market research helps a business to determine its target market and gain views and other input from customers about their interest in a product or service. This form of research can be done in-house, by the business, or by a market research firm that specialises in the field. Surveys, product testing, and focus groups can all be used to do this. For their time, test subjects are normally rewarded with product samples and/or a small stipend. Market research is a significant aspect of a new product or service's research and development (R&D). \"Marketing research is the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem in the field of marketing.\"- Green and Tull 78 CU IDOL SELF LEARNING MATERIAL (SLM)
5.3 OBJECTICES OF MARKET RESEARCH A market research project typically has three main goals. Administrative: Assist a company or business's growth by ensuring adequate preparation, coordination, and management of both human and material resources, and thereby meeting all relevant consumer needs at the required time. Social: Provide a necessary product or service to satisfy a customer's unique needs. When a product or service is consumed, it should satisfy the needs and desires of the consumer. Economical: Assess the degree of economic success or failure a business may have when new to the market, or even launching new goods or services, and thereby provide assurance to any measures to be taken. 5.4 WHY MARKET RESEARCH IS IMPORTANT Conducting research is one of the most effective ways to improve customer loyalty, lower churn, and grow your company. Here are some of the reasons why market research is crucial and should be considered by every company: Valuable information: It offers data and opportunities about the appeal of current and new goods, allowing companies to prepare and strategize more effectively. Customer-centric: It assists in deciding what consumers need and want. Understanding consumers and their needs can help companies design goods or services that better serve them. Marketing is customer-centric. Forecasts: Companies can predict their production and sales by knowing their customers' needs. Market research may also assist in deciding the best inventory stock to have on hand. Competitive advantage: Market analysis is a crucial method for performing comparative studies in order to remain ahead of the competition. Businesses should come up with business plans to help them stay ahead of the competition. 5.5 FEATURES OF MARKET RESEARCH 1. Systematic and continuous activity/process: MR is a never-ending process. This is understandable, since new marketing concerns are expected to occur from time to time in the process of product and service marketing. All marketing issues cannot be solved with only 79 CU IDOL SELF LEARNING MATERIAL (SLM)
one form of analysis. In the same way, new research programmes would be needed to address new marketing issues and challenges. 2. Wide and comprehensive in scope: Marketing research is broad in scope because it encompasses all facets of product and service marketing. Some of the areas covered by MR include the launch of new goods, the identification of potential customers, the selection of effective marketing strategies, the analysis of market competition and customer desires, the development of a suitable advertisement campaign, and sales promotion steps. 3. Emphasizes on accurate data collection and critical analysis: Relevant data should be obtained objectively and reliably in marketing research. The information obtained must be correct. It should be examined in a methodical manner. This will give you a complete picture of the problem as well as potential solutions. 4. Offers benefits to the company and consumers: Marketing analysis is advantageous to the company that funds it. It increases the company's sales and benefit. It also improves the market's competitiveness and builds goodwill. It allows a business to adopt customer-centric marketing policies. Marketing research efforts often provide consumers with more agreeable products and a higher level of satisfaction. 5. Commercial equivalent of military intelligence: MR is a form of commercial intelligence operation. It encourages marketing events that are pre-planned. It's similar to military intelligence, in which a detailed analysis of the situation is undertaken before any military action is taken. Marketing analysis serves as a management intelligence source. 6. Tool for managerial decisions: MR functions as a tool in the hands of management for finding, assessing, and solving marketing issues. It's a tool for making choices. It proposes potential options for managers to consider and choose from. Marketing research is a tool to help judgement, not a replacement for it. 7. An applied research: MR is information that has been applied. It is concerned with a particular marketing issue and offers possible options as well as the potential outcomes of each choice. 8. Reduces the gap between the producers and consumers: Market analysis is an important component of competitive marketing. It's helpful for finding out what customers want and expect. It bridges the gap between producers and customers by tailoring marketing activities to meet their needs. 9. Marketing research has limitations: Marketing research is not an exact science. Only potential ideas are suggested to the marketing manager for consideration and selection. 10. Use of different methods: MR can be carried out in a variety of ways. Data can be gathered in a number of ways, including surveys and other methods. The researcher must choose a method that is appropriate for the research project. This decision is critical since the process used for analysis determines the consistency of the final product. 80 CU IDOL SELF LEARNING MATERIAL (SLM)
5.6 TYPES OF MARKET RESEARCH Primary market research and secondary market research are the two forms of market research. 1. Primary Market Research Primary market analysis is a mechanism in which companies or businesses contact end users directly or hire a third party to conduct relevant studies in order to collect data. It is a mixture of qualitative and quantitative research approaches. The information gathered may be qualitative (non-numerical) or quantitative (numerical) (numerical or statistical data). There are two forms of information that can be gathered during primary market research: exploratory and specific. Exploratory research is a type of open-ended research in which an issue is studied by asking open-ended questions in a thorough interview format, usually with a small sample of people. The sample size is limited to 6-10 people in this study. Relevant research, on the other hand, is more focused and is used to solve problems that exploratory research has found. Primary market analysis, as previously mentioned, is a mixture of qualitative and quantitative market research. The data for a qualitative market research study is semi-structured or unstructured, and it is obtained using some of the most traditional qualitative research methods, such as: Focus groups: One of the most widely used qualitative research techniques is focus groups. A focus group is a small group of people (6-10) who are usually asked to engage in online surveys. The best thing about focus groups is that the data can be gathered online, without having to communicate with the group members directly. However, since it is used to gather complex data, this approach is more costly. One-to-one interview: As the name indicates, this approach requires personal contact in the form of an interview, in which the researcher asks the respondents a series of questions in order to obtain information or data. The questions are often open-ended and written in a way that encourages answers. This approach is highly reliant on the interviewer's skill and expertise in asking questions that elicit responses. Ethnographic research: This form of in-depth study takes place in the respondents' natural environments. This approach necessitates the interviewer adapting to the respondents' natural environment, which may be a city or a remote village. Geographical limitations may be a stumbling block when performing this form of analysis. Ethnographic studies will last anywhere from a few days to several years. 81 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Secondary Market Research Secondary research makes use of data collected by third parties such as government departments, the media, and chambers of commerce. Newspapers, magazines, books, company websites, free government and nongovernment agencies, and so on all publish this content. The following are examples of secondary sources: Public sources: such as libraries, are fantastic places to find free content. Government libraries typically have free resources, and a researcher may record the information that is available. Commercial sources: Commercial sources are costly, despite their reliability. Commercial sources of knowledge include local newspapers, magazines, journals, and television. Educational Institutions: While not a common source of knowledge, most universities and educational institutions are a rich source of data because they perform more research projects than any other industry. 5.7 PROCESS OF MARKET RESEARCH At any stage of the marketing research process, systematic preparation is needed. Each stage's procedures are methodologically sound, well recorded, and, to the extent practicable, prepared ahead of time. The scientific method is used in marketing research, in which data is obtained and evaluated to test preconceived ideas or theories. Marketing research should be performed impartially in order to provide truthful information that represents the true state of affairs. Although the researcher's research philosophy will still affect the research, it should be free of the researcher's or management's personal or political prejudices. The Marketing Research Process in Summary: Step 1: Problem Definition Step 2: Development of an Approach to the Problem Step 3: Research Design Formulation Step 4: Field Work or Data Collection Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation 82 CU IDOL SELF LEARNING MATERIAL (SLM)
Step 1 - Problem Definition Define the problem and the research goals. In every marketing research study, the first step is to identify the issue, taking into account the study's intent, relevant context information, what information is required, and how it will be used in decision-making. Discussions with decision-makers, interviews with industry experts, secondary data analysis, and possibly qualitative polling, such as focus groups, are all part of this point. In marketing research, there are three types of targets that can be used: 1. Exploratory research • May be used to help describe a challenge or identify potential opportunities. • In-depth interviews and focus groups are often used. 2. Descriptive research It's a tool for evaluating a business situation (i.e., potential for a specific product or consumer attitudes). Informal interviews and surveys are among the tools used. 3. Causal research It's used to see if there's a correlation between cause and effect. Usually, by guesswork.. Step 2: Development of an Approach to the Problem Formulating an empirical or theoretical context, analytical models, research questions, hypotheses, and defining characteristics or factors that may affect the research design are all part of the second phase. Discussions with management and industry experts, case studies and simulations, secondary data analysis, qualitative research, and realistic considerations drive this method. Step 3: Research Design Formulation A research design is a model or structure for conducting marketing research. Its aim is to design a study that will test the hypotheses of interest, evaluate potential answers to the research questions, and provide the information required for decision making. There are also decisions to be taken on what data should be collected from the respondents (e, g, by conducting a survey or an experiment). In order to select the most suitable respondents for the analysis, a questionnaire and sampling plan are also developed. Formulating a research design entails the following steps: • Analyzing secondary data (based on secondary research) • Qualitative analysis 83 CU IDOL SELF LEARNING MATERIAL (SLM)
• Quantitative data collection techniques (survey, observation, and experimentation) • Identify the information required • Procedures for estimation and scaling • Questionnaire layout • Method of sampling and sample size • Data analysis strategy Step 4: Field Work or Data Collection Field work, also known as data collection, involves a field force or personnel that performs interviews in the field (focus groups, in-home, mall intercept, or computer-assisted personal interviewing), over the phone (telephone or computer-assisted telephone interviewing/CATI), or via the mail (traditional mail and mail panel surveys with pre-recruited households). The field force should be properly selected, educated, supervised, and evaluated in order to reduce data collection errors. When a consumer goods company hires a market analysis firm to perform in-home ethnographies and in-store shop-alongs in order to collect primary research results, this is an example of data collection. Step 5: Data Preparation and Analysis The process of reviewing, cleaning, transforming, and modelling data with the aim of illustrating useful details, suggesting conclusions, and assisting decision-making is known as data analysis. Data analysis has many aspects and methods, encompassing a wide range of techniques in various business, scientific, and social science fields under a variety of names. Data mining is a form of data analysis that focuses on information discovery and modelling for predictive rather than descriptive purposes. Databases are used by advertisers to extract specific data that defines consumer patterns, attributes, and habits. Business intelligence is a type of data analysis that focuses on business information and relies heavily on aggregation. Some people divide data analysis into descriptive statistics, exploratory data analysis (EDA), and confirmatory data analysis in statistical applications (CDA). CDA focuses on confirming or falsifying existing theories, while EDA focuses on finding new features in the data. The use of statistical or structural models for predictive forecasting or classification is the subject of predictive analytics. Text analytics is a type of unstructured data that uses mathematical, linguistic, and structural techniques to extract and classify information from textual sources. Both of these are examples of data processing. Data is carefully edited, coded, transcribed, and checked during this step of the study process so that it can be properly analysed. Market analysis methods that are statistical are used. The findings' validity is also checked to ensure that the data correctly measures what it is intended to measure. Frequently, the research team will schedule a debriefing session with the client to go over the highlights of the data and brainstorm new suggestions for implementing the 84 CU IDOL SELF LEARNING MATERIAL (SLM)
findings. When a customer hires a market research firm and wants to be fully active in the research process, this is what usually happens. Helpful tips to keep in mind during data analysis: • Disseminate the conclusions. • When analysing data, strive to avoid bias. • Just because the findings don't support the original theories doesn't mean they're useless. Step 6: Report Preparation & Presentation The entire project should be reported in a written report that discusses the specific research questions identified, explains the methodology, research design, data collection, and data analysis procedures used, and presents the results and main findings during the Report Preparation & Presentation process. This permanent record is also useful since it can be readily accessed by those who were not interested in the report. The results should be presented in an easily understandable format so that they can be used in the decision-making process quickly. In addition, to increase transparency and effect, an oral presentation to management should be made using tables, figures, and graphs. The following elements would be present in a good presentation, but they are not limited to them: Final results (based on the perspectives gleaned from the data gathered) that effectively meet the research's initial objectives. Suggestions on how to put the study to use. Maps, graphs, and other visual elements that help illustrate key points and make the presentation more digestible and memorable. A formal research report presentation typically includes the following: Table of Contents Executive Summary Background Research Objectives Research Methodology Highlights of Fieldwork Data Collected Appendix (including Respondent Screening Instrument and Questionnaire) Findings/Insights Recommendations/Implications and Action Plan 85 CU IDOL SELF LEARNING MATERIAL (SLM)
5.8 BENEFITS OF AN EFFICIENT MARKET RESEARCH Make well-informed decisions: The manner in which management makes decisions affects an organization's growth. Management can make strategic decisions based on collected findings that back up their insight and expertise using market research techniques. Market research is useful for determining market patterns, but it should be conducted on a regular basis to gain a comprehensive understanding of the customers. Gain accurate information: Market analysis offers real and reliable knowledge that can help the company plan for any potential mishaps. Through thoroughly researching the market, a company will inevitably advance and, as a result, will gain an advantage over its current rivals. Determine the market size: A researcher should determine the size of the market that must be protected in order to make a profit while selling a product or service. Choose an appropriate sales system: Select a precise sales system depending on what the consumer demands, and the product/service can then be placed in the market accordingly. Learn about customer preferences: It's crucial to understand how consumers' preferences (and tastes) change over time so that the business can adapt to their preferences, buying patterns, and income level. Based on the particular needs of customers, researchers will decide the type of product that must be produced or sold. Gather details about customer perception about the brand: Market research aids a researcher in determining how consumers view an entity or brand, in addition to collecting data. Analyze customer communication methods: Market analysis can be used to help you communicate with existing and future customers. Productive business investment: It's a perfect investment for any organisation because it offers useful insights and teaches researchers how to get on the right track to make the sales they need. 5.9 MARKET RESEARCH TIPS The following are some industry market research suggestions: Define the objective of your research Before you embark on your research mission, consider what you want to accomplish next with your business. Do you want to increase foot traffic to your business? Or do you want to improve your sales? Or do you want to turn one-time buyers into regulars? Identifying your target will assist you in tailoring the rest of your research and possible marketing materials. Having a research goal will help you figure out what kind of data you'll need. 86 CU IDOL SELF LEARNING MATERIAL (SLM)
Learn About Your Target Customers The most important thing to keep in mind is that your organisation caters to a particular form of client. Defining your specific customer has a number of benefits, including helping you figure out what vocabulary to use in your marketing materials and how to approach developing relationships with them. You will identify the right goods and services to market to your target customer if you take the time to define them. You want to learn everything you can about your target market. This knowledge can be gathered through observation and analysis into the types of customers that visit your type of company. For instance, knowing their age and income is beneficial. What do they make a living doing? What is their marital status and level of education? Recognize that knowing who you serve helps you define who you do not Let's look at a classic example from Dan Kennedy, the master of copywriting. He argues that if you're opening a fine dining steakhouse based on decadent cuisine, you know you're not going to cater to vegetarians or dieters right away. You can develop better marketing campaigns that appeal to your target customers now that you have this knowledge. It's good to remove those consumers from your target market. In reality, knowing who you don't cater to can be crucial to your small business's growth. What is the explanation for this? Simply put, being small has the advantage of allowing you to engage deeply with a particular consumer segment. You want to concentrate your resources on the right customer who is already compelled to buy your product. Spreading yourself too thin by attempting to be all things to all people would only dilute your central message. Keep your attention on your target customer instead. Define them, dig deep, and you'll be able to find out how your goods and services will better serve them. Learn from your competition This works for both brick and mortar and online businesses because it helps you to put yourself in the shoes of your customer and gain a fresh perspective on your company. Take a look around the site and in your community. If possible, pay a visit to one of your competitors' stores. If you own an Italian restaurant, for example, eat at another Italian restaurant in your neighbourhood or in the next township. Look for what's being done right and wrong when you observe the company from the eyes of a customer. Do you see any areas that need to be addressed or improved? In contrast, how are you doing things? What is the product's and customer service's quality? Are the customers satisfied? Take a good look at their target market as well. Who else is coming to their store? Are they the same types of people who give you money? You will get a lot of details by asking these questions and conducting in-person research to help you identify your unique selling place and build even better deals for your customers. 87 CU IDOL SELF LEARNING MATERIAL (SLM)
Get your target customers to open up and tell you everything Since it allows you to get into your customer's brain, a successful customer survey is one of the most useful market research tools. Take criticism as a learning tool to guide you in the right direction, but bear in mind that some suggestions can be harsh. It's easy to make a survey. Inquire about what your client feels you're doing well and what you might do differently. You may also ask them what kinds of goods and services they'd like to see you add, which will provide you with invaluable insight into how to better monetize your company. Many customers would be more than happy to have input. Customers who complete surveys will also receive a bonus, such as a special coupon for their next purchase. 5.10 WHY DOES EVERY BUSINESS NEED MARKET RESEARCH One of the most important ways to gain insight into the client base, rivals, and the overall market is to perform market research. The aim of market research is to provide your organisation with the data it needs to make informed decisions. It's particularly crucial for small companies trying to figure out whether a new business concept is feasible, expanding into new markets, or introducing a new product or service. Here are some examples of how market research can support small businesses.. Competition According to a Business Insider report, 72 percent of small businesses prioritise sales development. Businesses can gain insight into competitor behaviour by conducting studies. You can learn how to put your product or offering by studying the strengths and weaknesses of your competitors. Small companies must consider what goods and services rivals provide, as well as their price point, in order to be competitive. Customers Many small companies believe they have a good understanding of their customers, only to find out later that their expectations were incorrect. You can build a profile of your average customer by conducting research and learning about their purchasing preferences, how much they're willing to spend, and which features appeal to them. Furthermore, and even more importantly, you will discover what motivates others to choose your product or service over one offered by a rival. Opportunities Market research may be used to find future prospects, whether they are goods or services. You can gain insights into complementary goods and services by learning more about your customers. Consumer needs evolve over time, driven by emerging technologies and changing circumstances, and you can discover new needs that aren't being met, which can lead to new market opportunities. 88 CU IDOL SELF LEARNING MATERIAL (SLM)
Forecast Customers and a small business are also influenced by the success of the local and national economies. When customers are concerned, they are less likely to spend money, which has an impact on the company. Businesses will learn whether customers are positive or pessimistic about the economy's trajectory by performing market research and making changes when required. For example, if the economy appears to be deteriorating, a small business owner may decide to delay the launch of a new product. 5.11 SUMMARY Market research is the method of evaluating the feasibility of a new service or product by conducting direct consumer research. Valuable data offers knowledge and opportunities about the appeal of current and new goods, assisting companies in planning and strategizing appropriately. Appropriate data should be obtained critically and reliably in marketing research. Primary market analysis is a method in which companies or businesses contact end users directly or hire a third party to conduct relevant studies in order to collect data. At all stages of the marketing research process, systematic preparation is needed. A research design is a model or method for performing marketing research. 5.12 KEYWORDS Focus group: one of the most widely used observational analysis techniques is the focus group. Public sources: Public outlets, such as libraries, are fantastic places to find free content. Commercial sources: Commercial sources are costly, despite their reliability. Business intelligence: this term refers to data analysis that is heavily based on aggregation and focuses on business data. Market analysis: may be used to identify potential markets, whether they are goods or services. 89 CU IDOL SELF LEARNING MATERIAL (SLM)
5.13 LEARNING ACTIVITY Prepare a questionnaire to find if the consumers appreciate your new product as compared to the older ones or not. ___________________________________________________________________________ ___________________________________________________________________________ __________________________. List the records to be considered while conducting a historical research in analysing the sales aspect of a television brand ___________________________________________________________________________ ___________________________________________________________________________ _________________________. 5.14 UNIT END QUESTIONS 90 A. Descriptive Questions Short Questions 1. Explain the objectives of market research 2. Discuss the importance of market research 3. List the types of market research 4. List the process of market research 5. Outline the tips for market research Long Questions 1. Explain the features of market research 2. Classify the types of market research 3. Explain the process of market research 4. Describe the benefits of an efficient market research 5. Why does every business need market research B. Multiple choice Questions 1. _________ is conducted to solve a problem. a. Action Research b. Market Research c. Product Research d. Scientific Research CU IDOL SELF LEARNING MATERIAL (SLM)
2. ____________ research is generally used by philosophers. a. Market Research b. Product Research c. Conceptual Research d. Action Research 3. Business research comes within the purview of__________ a. Market Research b. Product Research c. Actionable Research d. Field Research 4. Which among the following is not an objective of advertising research? a. Improve the efficiency of an ad b. Develop advertising plans c. Evaluate impact of an ad d. To avoid wastage of money 5. The _______defines what information is needed to solve the problem. a. Research plan b. Research objective c. Sample design d. Data analysis Answers 1. (a) 2. (c) 3. (a) 4. (b) 5. (b) 5.15 REFERENCES Reference Books: R1 Belch, George E. and Belch Michael A, Introduction to Advertising and Promotion. 3rd ed. Chicago. Irwin, I995. R2 Hard, Norman, The Practice of Advertising Oxford, Butterworth Heinemann, 1995 Textbooks: 91 CU IDOL SELF LEARNING MATERIAL (SLM)
T1 Rogers Everett M, Diffusion of Innovation, Free Press, 1962. S H H Kazmi, Marketing Management, Excel Books, New Delhi. T2 S.A. Chunawalla, KC Sethia, Foundations of Advertising, Himalayan Publishing House, New Delhi. 92 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 6: ADVERTISING AGENCY 93 Structure 6.0 Learning Objectives 6.1 Introduction 6.2 Meaning & Definition 6.3 Types of Advertising Agency 6.4 AIDA model & DAGMAR approach 6.5 Functions of an Advertising Agency 6.6 Factors affecting the Client Agency Relationship 6.7 Principles of Agency Client Relationship 6.8 Principles of Agency Media Relationship 6.9 Selection of an Advertising Agency 6.10 Structure of an Advertising Agency 6.11 Methods of Remunerating an Advertising Agency 6.12 Role of the Advertising Agency 6.13 How Agency Get Clients 6.14 Types of Agency Organization 6.15 Advertising Department Organization 6.16 Summary 6.17 Keywords 6.18 Learning Activity 6.19 Unit End Questions 6.20 References 6.0 LEARNING OBJECTIVES After studying this unit, students will be able to: Describe about advertising agencies Explain the types of advertising agencies. CU IDOL SELF LEARNING MATERIAL (SLM)
Discuss the functions of advertising agency. Explain the various factors affecting the client agency relationship. Identify the role of advertising agency 6.1 INTRODUCTION A producer or trader selects an advertising agency to show the commercial on his behalf. Advertisers who lack the capacity to carry out promotional campaigns enlist the assistance of advertising agencies that specialise in those areas. Advertising is ingrained in our social and economic structures. It has developed into an essential form of contact for both customers and companies. Advertising's primary goal of preparing, promoting, and placing advertisements in front of target audiences has earned it a significant role in today's dynamic society. Advertising is used by anyone from small companies to large organisations to advertise their products and services. 6.2 MEANING & DEFINITION The word \"advertising agency\" refers to an organisation that offers advertising services to clients in order to raise visibility and promote them. People with advanced expertise and experience of communications, advertisement, and customer behaviour work for these agencies. These professionals pool their abilities to produce advertisements for their clients. As a result, an advertising agency is a professional entity that assists its clients in effectively using advertising to advertise their products and services. “Advertising agency is a marketing service firm that assists its clients in planning, preparing, implementing and evaluating various activities of advertising campaign.”- Philip Kotler “Advertising agency is a group of persons who have a specialization in advertising. It includes ad copywriters, ad designers, media selectors and advisors for various advertising issues”- Rozer and Borton 6.3 TYPES OF ADVERTISING AGENCY There are several different sizes, shapes, and styles of advertising agencies. Full Service Agencies Account planning, analysis, creative services, marketing planning, and development of advertisement content for print, television, and outdoor media are all examples of advertising 94 CU IDOL SELF LEARNING MATERIAL (SLM)
services. Public relations, brand identity preparation, packaging, arranging fairs, exhibits, and training materials are only a few examples of non-advertising roles. “Attracting and retaining the very best talents, delivering multiple programmes that may require an interrelated approach, and providing an impartial analysis of ideas from an outside viewpoint based on widespread experience” are some of the advantages of a full service organisation. Full-service agencies are further divided by Bov'ee and Arens into two specialist areas, namely, General Consumer Agencies are a form of general consumer agency that is willing to serve a wide range of accounts such as soaps, detergents, cereals, oils, and automobiles. An industrial agency serves a customer or a corporation that manufactures products to be sold to other companies. Computer hardware, precision equipment, furnaces, generators, and x-ray equipment are all examples of this type of equipment.. A LA Carte Services A La Carte facilities, or order as you wish, can be obtained from a full-service agency or from small specialty shops that use the a la carte or boutique moniker. Business to Business Agencies Technical expertise and the ability to translate that knowledge into precise, convincing communications are required for business and industrial ads. The majority of B2B ads is published in trade journals or other industry publications. Business companies usually charge their clients service fees because commissions do not always offset the expense of the agency's services. The House Agency A house agency is an advertising agency that a corporation employs to manage its advertising needs. Such organisations receive media attention based on the accreditation requirements. Lintas and Mudra Communications, two of the top agencies in India, began as house agencies for Hindustan Lever Ltd. and Reliance, respectively. 6.4 AIDA MODEL & DAGMAR APPROACH AIDA Model 95 CU IDOL SELF LEARNING MATERIAL (SLM)
Elmo Lewis introduced the AIDA model as a marketing idea to illustrate how personal selling works. In terms of phases of customer engagement with the message, the AIDA Model specifies the processes for achieving promotional targets. Attention, Interest, Desire, and Action are the phases. 1. Attention In today's media-saturated world, marketers must be fast and straightforward in order to capture the attention of their target audiences. Advertising must be eye-catching in order for viewers to pause and read or watch what the advertiser has to say next. Ads are enticing because they use powerful words and images. 2. Interest After catching the interest of a portion of the target audience, it is important to keep them engaged with the advertising in order for them to fully comprehend the message. It is more difficult to pique the reader's or audience's curiosity than it is to pique their attention. Advertisers must remain based on viewer needs in order to gain audience interest. 3. Desire AIDA's Interest and Desire components work together. As the advertiser piques the audience's attention, he must also show how what he is selling will support them in a realistic way. This is accomplished by appealing to their individual needs and desires. Linking features and advantages is a good way to increase the reader's appetite for the advertiser's product. Hopefully, the offering's main features have been optimised to provide a particular value to members of the target market. 4. Action Finally, the advertiser must decide which action he wants the viewer to take—trial, buy, repurchase, or something else. DAGMAR approach to setting advertising objectives Defining Advertising Goals for Measured Advertising Results (DAGMAR) is an acronym for Defining Advertising Goals for Measured Advertising Results. Russell Colley created the DAGMAR Model in 1961 as a tool for setting advertising goals and evaluating advertising results. The ultimate aim of advertising, according to the DAGMAR Model, is to build knowledge, impart information, establish attitude, and induce action through communication. 96 CU IDOL SELF LEARNING MATERIAL (SLM)
1. Awareness It is important to familiarise the target audience with the product or business before anticipating buying behaviour. The advertisement activity's initial communication goal is to raise customer awareness of the product or bid. 2. Comprehension Only awareness will not entice a purchase; adequate knowledge and information about the product or organisation is needed. This phase includes educating the target audience about the product, company, or bid. Here, the advertisement activity's communication mission is to educate the customer about the commodity - its features, advantages, and uses. 3. Attitude or Conviction A sense of conviction is formed at this stage. Buyers are pushed to a place where they are persuaded that a particular product in the class should be tried at the next opportunity by generating curiosity and choice. At this point, the advertisement activity's communication role is to shape the audience's expectations about the product, which is mostly achieved by messages that show the product's superiority over a competitor or through explaining the advantages of using the product. 4. Action Finally, contact should enable the customer to make a purchase. 6.5 FUNCTIONS OF AN ADVERTISING AGENCY The primary aim of an advertising agency is to ensure that its clients' advertising results in improved profits over time. As a consequence, the agency schedules, prepares, and places ads with the target in mind. The following are the key duties of a full-service advertising agency: Clients are chosen: Selection of Clients An advertising agency's first and most important purpose is to contact and choose clients who want to advertise their goods, services, or something else they want to sell. Firms with strong principles, capable management, and effective operational products and services are given priority in contacting and selecting clients. The financial situation, the size and nature of the market, effective management, and operational items, among other factors, must all be considered. 97 CU IDOL SELF LEARNING MATERIAL (SLM)
Media Selection Another important feature of an advertising agency is media selection. Several considerations should be considered when selecting a media outlet, including cost, distribution, population served, audiences, product nature, consumer types, and, most importantly, client needs. Advertising Planning The third and most significant role of an advertising agency is to prepare ads for its clients. The advertising agency would need a thorough understanding of the company's products, advertising history, market dynamics, distribution channel, knowledge of competitors' products and advertising strategies, area to be covered, nature and form of customers, and so on. The next step in the planning process is to choose the advertising medium in which the commercial will appear. The advertisement message must be tailored for the medium in which it will be transmitted. Creative Function When the preparation function is finished, the creative function begins. It involves the development of advertising copy, layout, illustration, photos, advertising messages, and the advertisement's theme, among other items. The advertising agency employs a diverse community of talented people to perform these tasks, including authors, designers, architects, creators, photographers, and graphic art specialists. Research Function It is an advertising agency's fifth main feature. It backs up decisions made in the media and creative industries. In this regard, the advertising agency collects and analyses actual information about the product, market size, competitor tactics, and consumer preferences, among other things, that can assist the creative team in making the advertising copy more appealing and successful. Approval of the Client Following the preparation of the promotional copy and other materials, the advertising agency's next step is to present the copy to his client and gain his approval. Any improvements proposed by the client can be implemented, and the client's final approval should be obtained. 98 CU IDOL SELF LEARNING MATERIAL (SLM)
Marketing Function The advertising agency also handles marketing tasks such as identifying target customers, designing goods and packages, establishing distribution networks, deciding prices and discount rates, and so on. It offers valuable guidance to its clients on the essence and pattern of market conditions. As a consequence, the customer develops products while keeping existing business trends in mind. Evaluation Function It is not enough to simply write promotional copy and hand it over to the media. The advertising agency's next big role is to do a thorough analysis of the advertising impact for the good of his client. If there is a deficiency, the requisite recommendations should be given, and the changes should be implemented after the client's approval. Coordination Function The advertising agency's final but not least significant role is to create effective cooperation with the client's sales force and distribution network in order to ensure the advertising campaign's long-term success. Any time the advertising firm contacts the client about the advertising media to be used and the amount of times the commercial will be replicated after the advertiser's suggested improvements have been introduced. 6.6 FACTORS AFFECTING THE CLIENT AGENCY RELATIONSHIP The client-agency relationship is affected by a number of factors. The four Cs can be used to categorise them. Chemistry Communication Conduct and Changes Chemistry This is a factor that agencies are acutely aware of, and they wine and dine their clients in the hopes of changing it. Clients who are astute do the same. Communication 99 CU IDOL SELF LEARNING MATERIAL (SLM)
Poor communication, which both agencies and marketers complain about, leads to misunderstandings about goals, strategies, tasks, and expectations, as well as poor advertisement. Conduct Regardless of country, frustration with agency performance is the most common explanation for switching agencies. A service, like a product, has a life cycle. Changes Every relationship undergoes changes. Unfortunately, some of them have a negative impact on the agency-client relationship. It's possible that the client's market position or practises will change, or that new management will take over. It's likely that departments would lose key employees. The medium by which the advertiser's message is delivered is the crucial link between the business that makes a product or provides a service and the potential consumer. While the plural word media is widely used to refer to media outlets such as television, radio, newspapers, and magazines, it may also refer to other forms of mass communication. We can now separate advertising media into six distinct groups. Print, electronic, out-of-home, direct mail, digital interactive, and other media are all examples of different types of media. 6.7 PRINCIPLES OF AGENCY CLIENT RELATIONSHIP • The organisation does not promote a competitor's commodity that is a near substitute; • The client gives the agency permission to charge him for all of his advertising expenses; • The media commission is retained by the agency; • Any cash discount provided by the media is passed on to the client; • The firm is not held accountable for media blunders such as preparation, timing, and so on. 6.8 PRINCIPLES OF AGENCY MEDIA RELATIONSHIP Payment to the media is solely the responsibility of the agency; The department does not take a cut of the media commission; The media does not discriminate between agencies and adheres to a common approach for all of them. The media should not change the promotional content without the agency's permission. 100 CU IDOL SELF LEARNING MATERIAL (SLM)
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