MAM

Advertising has to be backed by strategy and tactics

VARCA, Goa: Advertising has a limitation to its effectiveness and there is a need to be clear in strategies and tactics.


"Advertising effectiveness is no more than 41 per cent," said author and brand guru Prof John Philip Jones,.


Jones outlined four secrets of advertising - gatekeeper, continuity, medium-term effect and brand building.


Speaking at Goafest 2012, Jones said that if advertising campaign doesn’t have the immediate effect, one should stop it and launch a new campaign. He noted that there are few behavioural measures. �There is high involvement purchase like for products such as cars. Such products are highly priced and are not included in frequent purchase. At the time of buying such products, the consumers make rational choices and they are looking for advertisements which are not the same in low involvement purchase goods where the advertisements come looking for customers."


In the low involvement purchase, rational message is given within emotional envelope. These are low priced products and it’s the habitual choice that people usually make. �They don’t weigh pros and cons for this," he said.


According to Jones, most customers buy products (any brand) because the last box is empty. Most consumers have a repertoire of two to four brands in any category. Advertising can influence the choice of brand especially with message propinquity.


He said that the ad budget is a big trade off. Advertising and profits are both residuals, after payment of direct and indirect costs. Usually, advertising and profit amount are same. Sales effect of advertising increases and decreases. (10 per cent increase in advertising means 10 per cent reduction in profit and 10 per cent decrease in advertising means 10 per cent increase in profit).


Tentative budget consists of competitive, expenditure, brand history and econometrics. One has to decide if he can afford it. If yes, then one must go ahead with the ad campaign. But if it is unaffordable, then one must examine future sale and profit projection.


Internet has not been a very efficient ad medium, but continues to post strong growth. "Its growth would continue and it would be the No. 3 medium, after TV and direct mail," he said.


Jones concluded by saying that emotional appeal has immediate effect. But at the same time no ad can work if it is only emotional; it has to have some rational element.

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