Advertising Scheduling (A&BM 27 Nov 2020)

Advertising Scheduling

Scheduling directly refers to the patterns of time in which the advertisement is going to run. It helps fixing up the time slots according to the advertiser so that the message to be delivered will reach target audience in a proper way with proper timings.

Media scheduling is one of the important decisions in advertising programme. Company should carefully decide on media timing for a maximum market response.

Media scheduling is simply a time-table showing:

(1) The time decision – when to advertise,

(2) The duration/space decision – how much to advertise each time, and

(3) The frequency to advertise the message through different media – how many times in a year (or specified time period) the message should be advertised in each of the media.

However, the first decision, i.e., time decision, is more relevant to media scheduling. Media scheduling calls for consideration of various factors to arrive at appropriate media timing. The decision is vital due to the fact that demand is subject to vary as per cyclical trend and/or seasons. To realize the maximum benefits of advertising costs, the most effective time is selected. Those executives or experts responsible to carry out advertising activities take a media scheduling decision.

 

Types Scheduling Strategies:

A company has following alternative scheduling strategies to decide on micro-scheduling:

 

1. Continuous Advertising:

This scheduling involves advertising the message evenly throughout a given period. For example, if company wants 48 television/radio spots, it will advertise 4 times in a month or once in a week, or on every Monday.

 

2. Concentrated Advertising:

This scheduling involves giving all the advertisement in a single period. Thus, the concentrated advertising means to spend the entire advertising budget within one flight. It is applicable when product is sold in one season, event, festival or holiday. For example, the company advertises 48 spots within four days during Diwali festivals, 12 times a day.

 

3. Fighting Advertising:

This scheduling involves giving advertisement at specific intervals. Company advertises for some period, followed by break of no advertisement, followed by the second flight of advertisement and likewise. Company with seasonal, cyclical, or infrequently purchase products follows such scheduling. Company with a limited fund prefers to advertise during a specific season or festival only.

 

4. Pulsing Advertising:

This scheduling is the combination of both continuous and fighting advertisements. It includes continuous advertising at low-weight level, reinforced periodically by waves of heavier activity. In other words, the company spends certain portion of advertising fund for continuous advertising, and the remaining fund for fighting advertisement.

For example, the company may advertise once in a day with a brief advertisement message. And, its detail advertisement appears for a week regularly after every three months. This timing is preferred by the financially sound companies.

 

The advertiser has to consider two types of media scheduling problems:

 

Macro-scheduling:

The macro-scheduling involves allocating advertising expenditure and frequency (repetition/reproduction of message) in relation to season or broad picture of business cycle. The macro-scheduling problem concerns with how to schedule advertising in relation to seasonal and business cycle trends.

The broad picture of seasonal and/or cyclical trend is considered. This is due to the fact that the demand is fluctuated as per seasons and/or business cycle. Therefore, it is desirable to vary advertising expenditures to follow seasonal patterns. Company, as per its calculation, can spend more or less during the season or particular phase of business cycle.

According to experts, advertising does not have immediate impact on consumer awareness, sales, or profits.

 

Micro-scheduling:

The micro-scheduling problem concerns with allocating advertising expenditure and frequency within a short period to obtain the maximum response or impact. In other words, the problem deals with how to distribute advertising expenditure within the given time.

For example, a company has decided to advertise specific message 60 times (that requires approximately Rs. 500000) through daily regional newspapers in a year. Now the question is to decide on which days/weeks/months/seasons the 60 times advertisement is to be allocated. Similarly, the same issue is related to radio or television spots.

 

Factors Affecting Advertising Scheduling:

The allocation of advertising expenditure/frequency over time depends on advertising objectives, nature of product, type of target customers, distribution channel, and other relevant marketing factors. But, mostly, following five factors are considered to decide on the timing pattern.

 

1. Buyer Turnover:

It shows the rate at which new buyers enter the market. The rule is, the higher the rate of buyer turnover, the more continuous the advertisement should be.

 

2. Purchase Frequency:

It shows the number of times during the specific period that the average buyer buys the product. The common rule is, the higher the purchase frequency, the more continuous the advertisement should be.

 

3. Forgetting Rate:

It shows the rate at which the buyer forgets the brand. The rule is, the higher the forgetting rate, the more continuous the advertisement should be.

 

4. Financial Condition of Company:

It shows an ability of a company to spend for advertisement. The rule is, the more is the ability to spend, the more continuous the advertisement will be.

 

5. Level of Competition:

Company facing a severe market competition will opt for more continuous advertisement through multiple media. The rule is, the more is the intensity of competition, the higher the frequency of advertisement will be.

International Marketing Research (IM 26 Nov 2020)

International Marketing Research

International Marketing Research Categories

International marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating internationally. International marketing managers need to constantly monitor the different forces affecting their international operations.

 

There are three general categories of research based on the type of information required.

1. Exploratory research deals with discovering the general nature of the problem and the variables that relate to it. Exploratory research is characterized by a high degree of flexibility, and it tends to rely on secondary data, convenience or judgment samples, small-scale surveys or simple experiments, case analyses, and subjective evaluation of the results.

 

2. Descriptive research is focused on the accurate description of the variables in the problem model. Consumer profile studies, market-potential studies, product-usage studies, attitude surveys, sales analyses, media research, and price surveys are examples of descriptive research. Any source of information can be used in a descriptive study, although most studies of this nature rely heavily on secondary data sources and survey research.

 

3. Causal research attempts to specify the nature of the functional relationship between two or more variables in the problem model. For example, studies on the effectiveness of advertising generally attempt to discover the extent to which advertising causes sales or attitude change.

 

Research topics usually include the following aspects:

1. Development of customer needs and customer desires

2. Customer´s perception of the company, compared to competitor companies

3. Performance and adequacy of marketing tools such as product and services, branding, direct sales and distribution channels, communications including internet marketing, pricing.

4. Marketing innovation: new business models and billing schemes, new variations of marketing tools, new technology applications.

5. Service quality of business relations between customers and sales persons or service technicians, to be examined by mystery shopping

6. Openness for and acceptance of new technology applications

7. Evaluation and selection of target markets – e.g. examining market potentials, market attractiveness, market barriers, intensity of competition, sales channels, customer segments and others more

8. Preparations for new sales market entry – e.g. profiling and prioritising of prospective customers, providing short lists of target customers, short lists of resellers, distributors, intermediaries, and logistics or other service facilities

9. Procurement out of new vendors – e.g. profiling, evaluation and selection of suppliers, clarification of detail questions such as transportation, custom duties, payment procedures, and others more

10. Shift of production – e.g. country comparison, execution of feasibility studies, later research for manufacturers, suppliers, manufacturing facilities, personnel and others more.

11. Identify new technology and applications abroad

12. Take-over of competitors in target markets, again creation of long and short lists, profiling, contacting, negotiating, due diligence and others more.

 

All these examples mean that accurate, complete, and up-dated pieces of information are delivered to come to sound decisions.

Usually, there is a clear geographical focus on specific country markets.

Why is International Market Research so important?

International Market Research shall identify new business opportunities and help assure a so-called area strategy which defines which geographical hemisphere needs to be covered.

Generally, market research intends to provide new ideas, comparisons, and control information for marketing deciders. These deciders are found not only in Marketing and Sales, Import and Export positions, but also in New Business Development, in a Strategy staff, in Corporate Planning departments and of course, within top management.

International Market Research provides an information base for strategic decisions. Here, competitive information needs to be available early, fast, and with the right filter.

 

What needs to be considered when executing International Market Research?

Strategic decision-making requires an outstandingly high-quality information base.

Therefore, international market research projects have to consider the following:

1. Globalization Experts are featured by product and industry knowledge, industry-specific experiences, methodological know-how like research methods, information access (e.g. to specializing commercial data bases), reputation (e.g. experts with door-opener-quality) and international experience, language skills, and others more

2. Competitive Information needs the right focus, but also needs to be provided fastly, and early enough in order to be effective.

3. information should be retrieved exclusively for your company – if all the industry enjoys the information there will not be any competitive gain procurement of information may be done by internal staff (“make”, e.g. sales force, internal research department), but also by such type of external market intelligence specialist who are working in the international field.

 

Main factors which influence the marketing research in different countries are

1. Cultural differences. Culture refers to widely shared norms or patterns of behavior of a large group of people. It is the values, attitudes, beliefs, artifacts and other meaningful symbols represented in the pattern of life adopted by people that help them interpret, evaluate and communicate as members of society. A company which works on the international market is in need of cross-cultural awareness. Cross cultural differences (language, non-verbal communication, different norms and values) may cause cross cultural blunders. There are examples of cultural blunders in the marketing mix.

 

Product. When a soft drink was launched in Arab countries, it has a label with six-pointed stars. The sales were very low as the stars were associated with Israel.

 

Price. An American firm was willing to set a reasonable price for the product they intended to sell to the Japanese. A detailed presentation was made to the Japanese businessmen, but it was followed by a deep silence. The Americans thought that the Japanese were going to reject the price and offered a lower price. The Japanese kept silence again. After that the Americans lowered the price again saying that it was the lowest they could sell at. After a brief silence the offer was accepted. Later the Japanese confessed that the first offered price was quite acceptable, but they had a tradition to think over the offer silently. An American company suffered great losses in this case.

 

Place. A company wanted to enter the Spanish market with two-liter drinks bottles and failed. Soon they found out that Spaniards prefer small door fridges and they could not put large bottles into them.

 

Promotion. Pepsico came to Taiwan with the ad ‘Come Alive with Pepsi’. They could not imagine that is it translated ‘Pepsi will bring your relatives back from the dead’ into Chinese.

2. Racial Differences. This refers to the differences in physical features of people in different countries. For example, types of haircut and cosmetic products differ greatly in various countries.

3. Climatic Differences. These are the meteorological conditions such as temperature range or degree of rain. For example, Bosch-Siemens adapted their washing machines to the markets they sell. In Scandinavia, where there are very few sunny days, they sell washing machines with a minimum spin cycle of 1,000 rpm and a maximum of 1,600 rpm, whereas in Italy and Spain a spin cycle of 500 rpm is enough.

4. Economic Differences. Economic development of various countries is different and when a company introduces a new product it adapts it to that new market. There are factors which show the level of economic development

Buying power and revenue of the market. In developed countries with higher income of revenue people prefer complicated product with advanced functions, while in poor countries simple product are preferable.

The infrastructure of the market. Such elements of the infrastructure of the country as transport, communication system and others influence the product. When Suzuki entering the Indian market the suspension was reinforced as the state of roads in India is very poor.

 

5. Religious Differences. Religion affects the product greatly and makes companies adapt their product to religious norms. If a company exports grocery product to Islamic countries it must have a special certificate indicating that the animal was slaughtered according to ‘Halal’ methods.

 

6. Historical Differences. Historical differences affect the consumer behavior. For instance, Scotch whiskey is considered fashionable in Italy and not very trendy in Scotland.

7. Language Differences. The correct translation and language adaptation is very important. For example, when Proctor & Gamble entered the Polish markets it translated properly its labels but failed. Later they found out that imperfect language must have been used in order to show that the company fits in.

 

Besides the differences mentioned above, there may be differences in the way that products or services are used, differences in the criteria for assessing products or services across various markets and differences in market research facilities and capabilities.

Media Vehicle in Advertising (A&BM 26 Nov 2020)

What Is "Media Vehicle" Advertising?

"Media vehicle" refers to specific methods of media used by companies to deliver advertising messages to targeted customers. Selecting the right mix of media vehicles is critical to reaching your audience and getting them to respond well to your ads.

 

Class Versus Vehicle

To understand a media vehicle, you need to compare it with the concept media class. A media class is a general category of media, such as television, radio, newspapers, magazines and the Internet. The vehicle is the specific TV or radio station, newspaper or print publication, or online website. Picking the right class based on benefits and drawbacks is an important first step. Then you need to select the right vehicle to reach your prospects.

 

Broadcast Vehicles

Television vehicles include networks such as Republic TV, Aaj Tak, Zee News, Network18, Star India, NDTV, Sony TV, ETV etc. Typically, small businesses can't advertise on the national network, but they often advertise on local network affiliate stations. You can also choose from hundreds of more niche cable networks, such as ETV (Bihar & Jharkhand), Sahara TV (Bihar & Jharkhand) etc. Radio is often more practical for small businesses. You normally have an array of vehicles in a local market that have various formats, such as pop music, country music and talk shows.

 

Print Vehicles

Newspapers are another prominent small-business class because of relatively low ad costs. Community newspapers can reach a local audience. Many small businesses also have access to state or regional publications. Magazines aren't quite as accessible for local companies. However, some regions have local magazines that offer entertainment, community events and themed topics. Even a local magazine ad can cost a few thousand Rupees, but magazine vehicles normally reach a very niche audience.

 

Digital Vehicles and Others

The other major traditional media class is online, or digital/interactive. This class includes thousands of online vehicles, along with mobile communication opportunities. Other supportive media options include billboards, directories, buses and benches. Many metro communities offer vehicle options within each of these categories. These supportive media are usually used to reinforce messages that are delivered through broader mass media. Billboards are relatively expensive, but they allow small companies to reach wide local marketplaces.

 

Types of Advertising Media

The types are: 1. Newspaper Advertising 2. Television Advertising 3. Radio Advertising 4. Magazine Advertising 5. Direct Mail Advertising 6. Transportation Advertising 7. Outdoor Advertising 8. Speciality Advertising 9. Personal Selling 10. Sales Promotion.

 

Type # 1. Newspaper Advertising:

The major advantage in advertising in Newspapers is that it covers a wide selected geographical market and broad coverage can sell a product in that spe­cific area. Newspaper advertisement is also flexible and timely, which can be changed as and when desired. Now-a-days Newspapers are the chief means of advertising.

 

Type # 2. Television Advertising:

The chief advantage of this is that the advertising message can be delivered and the product can be demonstrated to all at the same time.

Television advertising may be classed as a network, spot or local advertisement. Network advertising is directed toward large audiences covering a wide territory. Message can go to nationwide market at one time via network advertising and the cost of each message per listener is low since television reaches such a large potential audience.

 

Type # 3. Radio Advertising:

Advertising by means of radio gives the advantage of selecting the territory and audience to which the message is to be directed. It is also cheaper than TV advertising.

 

Type # 4. Magazine Advertising:

Today the large number of magazines is published which represents an important advertising medium. These are published weekly or fortnightly or monthly. A magazine advertisement has larger life than a Newspaper which is read and de­scribed daily.

A magazine is retained for a longer period and is usually read in a more leisurely manner. However, a disadvantage is that since the printing of a magazine is much more com­plex than that of a Newspaper, most advertisements have to be placed well in advance of the time they finally reach the reader.

 

Type # 5. Direct Mail Advertising:

Direct mail advertising is advantageous, if an advertiser desires to get a wide coverage for his products. The circulars announcing a grocer’s specials, the catalogue announcing a summer or winter sale of goods or a letter offering a special purchase are examples of Direct-mail Advertising.

There are two major advantages of this method:

(a) The message can be directed to specific customers and thus it is selective.

(b) It can be spread over a wide territory.

Since this method is cheaper and quicker, a larger number of small and medium size con­cerns also use it.

 

Type # 6. Transportation Advertising:

A variety of advertising messages are displayed on the different forms of public transports such as city buses, taxi cabs, tampoos, trucks, 3-wheelers etc. These types of advertising message are best suited to the big cities and towns where many people can notice the advertisement while going to and from work.

 

Type # 7. Outdoor Advertising:

Since a reader usually sees the message for only a matter of seconds, hence outdoor advertisements should be simple and to the point. These are used for products that are used frequently, are well known and whose message can be flashed quickly to the individual.

These messages are printed on bill-boards, painted signs or displayed on elec­tric poles etc. Since the message should be short, the advertiser’s trade mark, a slogan or a visualization of the package is usually presented.

 

Type # 8. Specialist Advertising:

Every year some advertisers have their names and mes­sages printed on wide variety of useful goods, specially at the time of “Deepawali festival” and “New Year” beginning. These goods are then distributed to the specific market segment chosen by the advertiser.

Such advertising is called “Specially Advertising”. Some examples of spe­cially advertising are; Hand bags, Pens, Ashtrays, Bottle caps, Key rings, Phone book covers, T- shirts, calendars, Bill folds etc.

 

Type # 9. Personal Selling:

Personal selling is an important part of marketing strategy. Per­sonal selling is the means by which customers are reached on a face to face basis. To be effec­tive, sales persons must have good knowledge of the products they sell and of the policies of their company. They should also gather information about actual customers.

 

Type # 10. Sales Promotion:

In addition to advertising and personal selling, sales promotion rep­resents another important means of creating an awareness of products “Sales Promotion” refers to those marketing activities, other than personal selling, advertising and publicity that stimu­lates consumers purchasing and dealer effectiveness such as displays, shows and exhibitions, premiums, contest, trading, coupons etc.