Advertising is the process of promotion of the goods and services or ideas by paying a specific amount to the identified sponsor. Once the manager decide the target market and the needs of the buyer, they can make decision on the following factors:
- The mission or objective behind the advertisement
- What should be the budget of the advertisement
- What message should be delivered
- Through which media will the advertisement be delivered
- How would the result of advertisement be evaluated
There are different types of advertisements which are :
- Informative advertisement- these advertisements give some specific information about the product or service being advertised.
- Persuasive advertisement – this type of advertising persuade the customers to buy a particular product or service.
- Reminder advertising- Such type of advertisements are used to remind the customers about a particular event or happening.
- Reinforcement advertising- this type of advertisement are mainly for those products who have been newly modified.
How to set the budget of the advertisement
- Budget can be set based on the stages of the product life cycle
- Based on the consumer base and share in the market
- Based on the budget of the competitor
- Number of times the advertisement needs to be showcased
- Depending on any available substitute of the product
Steps required to design an effective advertising campaign
Three steps can be followed to design an ad campaign:
- Generating a message and then evaluating it
- Development and execution of the ad, which would include television, radio, print, film ads
- Review on the basis of social responsibility of that ad
What type of media should be selected
The selection of an appropriate media depends on the following variables :
- Media habit of the target audience
- Characteristics of the product
- Characteristics of the message
- Cost that need to be incurred
Major tools for consumer promotion
- Free samples of product given to the consumers
- Coupons on bulk purchases that can be enclosed with the product itself.
- Refund of cash offers
- Discounts on bundled products
- Gifts on every repeat purchases.
- Consumer loyalty programs
- Patronage Awards – Values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors.
- Trials for free
- Product Warranties – Explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer’s money during a specified period.
- Free home delivery and after sales services.