According to Colley, “Advertiser`s job, purely and simply, is to communicate to a defined audience, information and a frame of mind that stimulates action. Advertising succeeds or fails depending upon how well it communicates the desired information and attitudes to the right people, at the right time and at the right place.”

Colley also stated the features of a good advertising objective, they are:

• Advertising Objectives must be stated in specific and measurable communication tasks.
• It must specify a target audience
• It must set a standard or benchmark and specify the desired change against which results can be measured
• It must specify a time period for achieving the objectives

According to DAGMAR Approach, advertising objectives must involve specific communication objectives which can be measured to determine the success or failure of an advertising campaign. Under DAGMAR Approach, communication objectives are based on hierarchy of effects model and are divided into four stages:

(1) Awareness: At this stage the targeted audience becomes aware about the brand or product.

Advertiser`s Objective – Make people aware about the product.

(2) Comprehension: At this stage the customers get more information about the product and understands the benefits of using the product.

Advertiser`s Objective – Provide information about the product.

(3) Conviction: At this stage a customer evaluates different products and plans to buy the product.

Advertiser`s Objective – Create a favourable mental disposition to buy the product.

(4) Action: This stage involves the actual purchase of a product by the customer.

Advertiser`s Objective – Motivate the customer to buy the product.

DAGMAR Approach example

Example of an Advertising Objective Statement using DAGMAR Approach:

A company selling study material of brand X, sets the following advertising objective:

To increase among 50,000 students in Lucknow, who are preparing for CAT, the ability to identify brand X as one of the best study material and persuade them that it will help them to clear CAT examination of 2017, from present 5% to 25% in 6 months. 

Advertiser`s Objectives:

• Target Audience: 50,000 students in Lucknow preparing for CAT
• Communication Objectives: Ability to identify brand X as one of the best study materials and persuade that it will help to clear 2017 CAT Exam
• Desired Change: From present 5% to 25%
• Time Horizon: Six Months

DAGMAR Approach – Advertising Objectives Checklist

Colley also developed a checklist of 52 specific advertising tasks to establish objectives, few of which are:

• Perform complete selling function
• Advertise a special reason to buy
• Remind people to buy
• Simulate impulse sales
• Create awareness about product or brand existence
• Create favourable emotional disposition towards the product
• Impart information regarding benefits and superior features of the product
• Combat and offset competitive claims
• Correct false impressions, wrong information and other obstacles to sales
• Aid sales force with sales promotion and selling activities and boost their morale
• Establish brand recognition and acceptance

Reference: Advertising and Sales Promotion – S.H.H. Kazmi and Satish K Batra

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The main task of media planners is to select the most appropriate media channels that can effectively communicate the advertising message to a targeted audience. Hence, it is essential for media planners to: 

• Keep up with latest media trends
• Keep up with New technological developments
• Determine long and short term effects of different media
• Analyse Strengths and Weaknesses of different media

Factors determining Media selection

• Nature of product
• Market requirements
• Advertising objectives
• Distribution strategy
• Nature of message and appeal
• Advertising Budget
• Competitors choices
• Media availability
• Penetration
• Size and Nature of business

Types of Media / Media Classification

 Media can be classified into four types:

• Print Media (Newspapers, Magazines)
• Broadcast Media (TV, Radio)
• Outdoor or Out of Home (OOH) Media
• Internet

Print Media

(i) Newspaper

• Newspaper is a major source of information for a large number of readers.
• It may be National or local, daily or weekly newspaper.
• Newspapers allow presentation of detailed messages which can be read at reader’s conveyance.
• It allows prompt delivery of detailed coverage of news and other information with interesting features for readers.
• It is a high involvement media as readers are required to devote some effort in reading the message.
• It is available to masses at a very low cost.

Classification of Newspapers

• National Newspapers
• Daily newspapers (Local/Regional)
• Special Audience newspapers

Types of Ads in Newspapers

• Classified advertisement – Advertisements arranged according to product or service
• Display advertisement – Ads that use illustrations, photos, visual elements, may be National or Local.
• Special Inserts – Tender notices, Public notices, Shifting of office etc.
• Free Standing Insert – Pre-printed ad inserted in newspapers folds that fall out when the reader opens it and attract immediate attention

Advantages

• Flexibility
• Geographic and language selectivity
• Widespread coverage
• Offers penetration
• Reader involvement
• Cheap media with high frequency
• High repetitive value and quick response

Disadvantages

• Poor Presentation and Quality
• Short life span
• Limited selectivity with regard to lifestyles
• Hard to reach illiterate and poor people

(ii) Magazines

• A Magazine is a specialized advertising media that serves educational, informational, entertainment and other specialized needs of consumers, businesses, and industries.
• A Magazine allows presentation of a detailed ad message along with photos, illustrations, colours etc.
• It is a high involvement media as readers pay a premium price for it and magazines are not dumped after reading.
• Magazines can be classified into Local/Regional/National or Weekly/Monthly/Quarterly Magazines.

Types of Magazines

Consumer magazines – Magazines bought by general public for information and entertainment. It can be used to reach a specific target audience. It may be a –

• General Interest Magazine      
• Glamour Magazine
• Film Magazine
• Special Interest Magazine
• Women Lifestyle Magazine

Business Publications – Business magazines includes publications such as trade journals for businesses, industries or occupations. It may be published weekly monthly or quarterly. Generally, readership includes business managers and executives, businessmen, business students etc. It may be categorized into –

• Business Publications
• Professional Publications
• Trade Journals
• Industrial and Institutional Publications

Advantages

• Long Life
• Better reproduction
• Highly selective, avoids waste of circulation
• Can create image, prestige or reputation
• Reader involvement
• Allows services like `split runs’
• Can reach specialized groups

Disadvantages

• High cost
• Limited reach and frequency
• Long response time
• Low flexibility
• May face competition

Broadcast Media

(i) Television Advertising

• TV is a principal source of information and entertainment for people exposed to mass media.
• It is believed to be the most authoritative, influential, exciting medium for reaching very large audience.
• It combines visual images, sound, motion and colour to achieve viewer’s empathy.
• It allows development of creative and imaginative ad messages in a unique way.
• It is considered intrusive in nature as the audience have no control over the nature and pace of advertisements.

Advantages

• Powerful audio-visual media
• Wide coverage with effective cost
• Attention – intrusive in nature
• High selectivity and flexibility

Disadvantages

• High cost
• Short lived message
• Limited attention by viewers
• Zapping – changing channels
• Zipping – fast-forwarding commercial to avoid commercials
• Intrusive in nature

(ii) Radio

• Radio is a premier mass medium for users and advertisers.
• It has a wide spread reach.
• It delivers the ad message to a large number of people across the length and breadth of a country.
• Commercial broadcasting is undertaken in major cities even rural areas.
• Radio time in India is usually sold in slots of 7, 10, 15, 20 or 30 seconds.
• It is one of the most personal medium and offers selectivity, cost efficiency and flexibility advantages over other media.
• Efficiency of a radio ad depends upon the precision of script, accompanying sounds and level of distortion

According to Rebecca Piirto: “In some ways radio listeners act more like magazine subscribers than television viewers. They tend to listen habitually, at predictable times, to stations with narrowly targeted formats. They are loyal, identifiable and much cheaper to reach than TV audience.”

Advantages

• Wide coverage
• Helps to reach lower income people, illiterate people
• Mental imagery – encourages audience to use imagination
• Offers high selectivity
• Cost efficient
• Flexible

Disadvantages

• Lack of visual elements
• Short lived message
• Audience fragmentation
• Limited research data
• Clutter – Too many ad messages 

Support Media

(i) Outdoor advertising

• It is usually used as a supportive medium by advertisers.
• It includes bill boards, boarding, neon signs posters etc.
• It can generate considerable reach and frequency level at low cost.
• Useful when introducing a new product.
• Helps to remind the customers.
• Helps to generate sales at point of purchase/point of sale.

Advantages

• Point of Place (POP) Advantage
• Geographic flexibility
• Continuity
• Efficient and cheap
• Flexible and Creative impact

Disadvantages

• Limited message
• Wastage in terms of coverage
• Limited effectiveness
• Message fades due to over exposure over time
• Public criticism

(ii) Transit Advertising

• Uses billboards, neon signs and electronic messages.
• It is targeted at users of various modes of transportation.
• Advertising rates depend on the amount of traffic which passes every day.

Advantages

• Long exposure
• Exposure frequency
• Geographic selectivity
• Low cost

Disadvantages

• Waste coverage
• Creative limitations
• Audience mood
• Image of advertiser – effect is difficult to measure
• Brief message

(iii) Cinema and Video Advertising

• Cinema is a popular source of entertainment comprising of audience from all classes and socio-economic groups of society.
• Films are watched by a significant number of people everyday.
• It involves use of cinema halls and video tapes to deliver the ad message.
• Commercials are shown before films and previews carrying ad message.
• Advertisers may prepare a presentation for projection or 35mm ad films based on a script.
• Similar to TV, it also combines sight, sound, colour and movement to deliver a creative message.
• Video rentals include messages by local advertisers.
• Advertisement can also be displayed by cable operators.

Advantages

• Large exposure
• Audience mood
• Selectivity
• Recall
• Lack of clutter

Disadvantages

• Audience irritation
• Limited reach
• Limited frequency

Internet

• Internet is a worldwide medium that provides means of exchanging information through a series of interconnected computers.
• It is a rapidly growing medium of advertising.
• It is a future medium which offers limitless advertising opportunities.
• It involves use of world wide web to showcase a website or e-commerce portal to the world.
• Advertising through internet involves email marketing, social media marketing, online ads and mobile marketing.
• It provides a sophisticated graphic user interface to users.
• It is accessible to anyone with a computer and broadband connection.

Type of Internet Advertisements

• Websites – Online Brochure of product/services, Virtual Office
• Ad buttons – Icons which provide link to advertiser`s website
• Ad banners –  Creative & Dynamic Display ads
• Sponsorship – Companies sponsor bloggers to write about them.
• Classified ads – Similar to newspaper ads
• E-mail – Electronic mails carrying ad message

Advantages

• Interactive medium
• Global medium
• Generates immediate response
• Provides high selectivity and flexibility
• Gives detailed information (in depth info and reviews)
• Reaches B2B users easily

Disadvantages

• Lack mass media efficiency
• Targeting and research costs are high
• Slow downloads
• Cost of PC is high
• Security is a primary concern
• Not persuasive

Also Read: Steps to develop a Media Plan, Media planning & Strategy development Activities

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A Media Plan involves the various tasks like market analysis, setting certain media objectives, developing media plan & strategies and conducting a follow up to accomplish the pre-determine business or advertising objectives.

The goal is to formulate a particular combination of media that would enable the advertiser to communicate the message effectively to a large audience at lowest cost.

Steps to Develop a Media Plan

(1) Market analysis and Identifying target market –

It involves:

(i) Selecting a target audience and determining the market potential.

An Index number is a good indicator of market potential.

Index = % of users in demographic segment     X 100

             % of population in same segment

An Index number of more than 100 means that the product usage is more in that segment than the segment which has an Index number of 100 (average) or less than 100.  Media planners may focus on segments which have an Index of less than average, average or more than average depending upon their overall strategy.

(ii) Studying the Internal and external factors affecting the media plan

Internal factors:

• Advertising budget
• Managerial and administrative capabilities
• Media expertise
• Organizational Objectives

External factors:

• Rising cost of media
• Changes in technology
• Competitive environment
• Legal and government policies

(iii) Determining the Geographic area and Timing of advertisement

This is done through estimation of:

• Brand development Index
• Category development Index

• High BDI and CDI – Good Sales Potential for product category as well as the brand.
• High BDI and Low CDI – Brand is selling but the product category is not selling. Must advertise and monitor for sales decline.
• Low BDI and High CDI – High potential for product category, Brand is not doing well. Reasons for poor brand performance must be determined to make a decision.
• Low BDI and Low CDI – Poor Sales potential. Must not advertise.

(2) Establishing Media Objectives

The next step to in developing a media plan is setting Media Objectives in terms of –

• Coverage – The potential audience that might get exposed to the message through a media vehicle
• Reach – It refers to the different people or household exposed to a particular media vehicle at least once during a specific time period.
• Frequency – It refers to the number of times within the specified time period an average person is exposed to the message.
• Gross Rating Points – It refers to the total weight of a media effort in quantitative terms.
• Continuity – Timings of the media insertions.

Frequency = Total exposure/Total Reach

Gross Rating Points (GRP) = Reach x Frequency

A trade-off between reach and frequency is very common.

(3) Develop and Implement Media Strategy

It involves decision making regarding:

(i) Media Mix – It refers to the combination of media that enables the advertiser to communicate the message effectively to the target audience at lowest cost.

Factors affecting Media mix-

• Product characteristics
• Advertising objectives
• Media budget
• Individual preference
• Increasing coverage, reach or frequency levels

(ii) Geographic coverage

• Geographic locations
• Regional differences in consumption, language, taste etc.

(iii) Scheduling – It is concerned with timing in inserting of advertisements in the selected media. There are three approaches to scheduling –

a. Continuity – It refers to a continuous pattern of advertising, which may be daily, weekly or monthly. It is used when product recall is elicited easily with an advertising message and delayed at non-exposure. It is suitable for product categories consumed on regular basis without being affected by seasonal fluctuations.

Advantages  – Acts as a constant reminder, Covers entire buying cycle, Allows for discounts

Disadvantages – High costs, Possibility of over exposure

b. Flighting – It is a less regular schedule of ad message. There are inter-minted periods of advertising and a more than one advertisements. Advertisements are run to influence the purchase cycle. It is suitable for consumer products both durable and non-durable.

c. Pulsing – It is the combination of the above two approaches. Continuity is maintained but stepped up during certain periods and different advertisements are run to influence purchases during different life cycle stages of the product.

Advantage – Motivates customers to avail seasonal benefits.

The decisions on scheduling strategy are based on:

• Brand awareness
• Buying cycles
• Available budget

(iv) Media Reach and Frequency –

Media planners have to make a compromise to strike a perfect balance between reach, frequency and the number of advertising cycles in the planning period. The aim could be to either reach a lot of people a few times or a few people lot of times. Hence there is a trade between reach and frequency. A few strategies are:

• High frequency – Low reach is used for frequently purchased product
• High Reach – Low frequency is used for infrequently purchased products mainly consumer durable goods
• In some cases Reach is kept constant and advertising frequency may be increased or decreased by reducing or increasing the number of ad cycles. It depends on the purchase cycle of the product.

Reach may be increase in situations –

• When introducing new product
• Introducing a new use for the product
• To promote the image of the company
• To grab creative attention

Frequency must be increased when –

• Competitions is using high frequency to reach the same segment
• When reaction is desired within a limited time period
• When the message is not easy to remember
• If the product or brand is not noticeably differentiated

(v) Qualitative Aspects of Media Vehicle attributes to be considered are –

• Expertise
• Prestige
• Mood created
• consumer involvement
• unbiased approach

(vi) The last step in developing a media plan is to determine the relative cost in terms of  –

• Cost per thousand Impressions (CPM)
• Cost per rating point (CPRM)

(4) Evaluation and Follow up

An evaluation is empirical to determine the effectiveness of advertising. The two main questions that have to be answered are:

• How successful were the strategies in achieving media objectives?
• Was the media plan successful in accomplishing advertising objectives?

After a thorough analysis the success or failure of the media plan is determined and the results are used to modify the current strategy and also act as a reference for to build future strategies.

Also Read: Media Planning and Strategy 

The post Media Plan – Steps to Develop a Media Plan – Advertising appeared first on BBA|mantra.

Media simply refers to a vehicle or means of message delivery system to carry an ad message to a targeted audience.

Media planning involves setting certain media objectives and strategies to accomplish the pre-determine business or advertising objectives. The goal is to formulate a particular combination of media that would enable the advertiser to communicate the message effectively to a large audience at lowest cost.

Some common terms associated with media planning are Reach, Frequency and Coverage.

• Reach refers to the number of different people who are exposed at least once to an advertising medium in a given period of time.
• Frequency refers to the number of times an audience is exposed to an advertising medium in a given period of time.
• Coverage refers to the potential audience that may get exposed to an advertising medium in a given period of time.

Media Planning and Strategy Development Activities

Media Planning and Strategy Development involves a series of sequential activities which are:   

(1) Conducting Situation analysis – It involves defining the marketing problem and conducting SWOT analysis of the company as well as the competitors.

(2) Formulating a Marketing Strategy – It involves:

• Studying the internal and external factors affecting media plan
• Conducting Target Market Segmentation
• Making Marketing mix decisions

(3) Formulating an Advertising Strategy – It involves determining the behavior and attitude of target audience and taking decisions regarding:

• The product information to be communicated
• Product positioning
• Media to be used
• Ad copy, Advertising message and Advertising Appeal

(4) Setting media objectives – This step involves setting media objectives in terms of coverage, reach and frequency of advertisements.

(5) Determining media strategy – It involves the task of selecting the best alternative or strategy to effectively achieve the advertising objective and setting guidelines for media.

(6) Selection of media – It involves comparison and selection of media. The media selected may be Broadcast media, Print Media, Outdoor Media or Support Media or a combination of these mediums.

Also read: Steps to Develop a Media Plan

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An Advertising Budget refers to the amount of money allocated towards advertising of a brand or product.

While developing an advertising strategy, it is empirical to set advertising objectives which are significantly influenced by the advertising budget. Advertising objectives are important for decision making and to have a point of reference or standard against which the results can be measured. A business may choose a sales objectives or communication objectives for the purpose of developing an advertising budget.

(i) Sales Objectives – The objective is to increase the sale of products or to compliment the selling efforts of the sales department. The objective may be changed from time to time depending upon the volume of sales which may be influenced by –

• Price of products
• Advertising and Promotion
• Personal selling
• Competition
• Consumer tastes
• Product quality
• Economy
• Technology
• Direct action advertising

(ii) Communication objective – The objective is to create awareness, develop interest or to change an attitude. For this purpose a business may choose to –  

• Increase the % of target customers who associate a special feature or benefit with company’s brand
• Increase number of customers who prefer company’s brand over competing brands
• Increase company’s brand usage among existing members
• Encouraging a brand trial among targeted customers

Basis of Advertising Budget

The various factors that have to be studied before setting the advertising budget are –

• Market size and Potential
• Product life cycle stage
• Market share
• Intensity of competition
• Advertising frequency
• Product differentiation strategies

Many businesses consider advertising as an expense rather than an investment, hence it is important to use a theoretical basis and budget allocation methods to make an effective advertising budget.

The Theoretical basis for creating an advertising budget is Economic Marginal Analysis. According to Economic Marginal Analysis a firm should continue to increase its advertising budget for a particular brand or for a certain target market as long as the (MR) Marginal Revenue exceeds the Incremental Expenditure (IE). However this basis takes into account the two assumptions which are:

• Advertising is solely responsible for sale
• Sales are a direct result of advertising and the deviation can be measured accurately

Due to these assumptions this model is rarely used as it is not practical to that assume advertising alone determine sales as there are many other environmental factors that affect sales.

Most advertiser support one of two models of advertising to sales response function namely the Concave downward function or the S-shaped function.

Picture Credits: Advertising and Sales Promotion – S.H.Kazmi, Satish.K.Batra

Concave downward function curve – As the amount of advertising increases it incremental value decreases following the law of diminishing marginal utility i.e. advertising effects start diminishing quickly. Hence less advertising money may needed for optimum sales.

S-shaped function curve – Initial expenditure on advertising has a very little effect on sales. After a certain point increment in advertising expenditure lead to increased sales but the gain in sales continue only up to a point and after that there is no effect on increased expenditure on sales. Hence it suggests that less budget has a minimal impact and a high budget may not necessarily have a high impact.

Advertisers must advertise and spend in the area of rising curves where maximum return on advertising expenditure can be accomplished.

Approaches to Advertising Budget

Methods of Advertising Budget

(i) The affordable method – All you can afford –

• It is a simple method
• Whatever is left out of the financial budget is allocated to advertising
• After making all business expenditures the amount left is allocated to advertising
• No consideration is given to advertising objectives or goals
• Chances of over or under spending are high
• A common method in small firms or firms with primary focus on new product development

(ii) Arbitrary Allocation Method –

• There is no theoretical basis of creating a budget
• Budget is allocated on the basis of what is felt necessary by decision makers
• It lacks systematic thinking
• There is no relationship with advertising objectives
• Managers believe that some amount must be spent on advertising and pick up a figure

(iii) Percentage of sales method –

• It is a commonly used method by large and medium sized companies
• Budget allocated depends upon the total sales figure i.e. high sales = high budget, low sales = low budget
• The basis of budget allocation is the total sale of brand or product. It may be:
  • A fixed percentage of last year’s sales figure is allocated as the budget.
  • A fixed percentage of projected sales figures of the next year
  • A fixed amount of the unit product cost is taken as advertising expense and multiplied by the number of projected sales unit.

Advantages

• It is simple, straight forward, easy to implement
• Expenditures are directly related to funds available.

Disadvantages

• It ignores that less advertising may decline sales or potential of advertising in rising sales
• It can lead to over or under spending
• It is difficult to predict sales for new products
• Decrease in sales leads to decrease in advertising budget which may be needed

(iv) Competitive parity method –

• Budget is based on competitors expenditure, advertisers decide budget matching competition’s % of sales allocation
• Information of competitor`s budget is available in trade journal and business magazine
• The basis is that collective wisdom of many firms may generate an advertising budget optimum or close to optimum
• It leads to competitive stability
• It minimizes chances of promotional wars

Disadvantages

• Each firm allocates budget according to its own specific goals
• It ignores the contribution of media and creative executions
• Information is gathered when money is spent

(v) Objective and Task method

In this method the selling objectives and budget decision are linked and considered simultaneously. It involves –

• Defining the advertising communication objectives to be accomplished
• Deciding specific strategies and tasks necessary to achieve them
• Estimating the costs involved in putting these activities in operation
• The total of these costs is taken as the base to determine the advertising budget.

Advantages

• The method develops budget from ground up which is a proper managerial approach
• It does not rely on past sales or future sale forecasts
• It considers all factors under advertiser’s control

Disadvantages

• It is difficult to implement
• It requires managerial involvement and high skills
• It attempts to introduce variables such as awareness, knowledge, attitude formation etc.
• It is difficult to estimate all costs and determine all tasks necessary to achieve the set objectives

(vi) Pay out planning

• It is useful when introducing a new product
• The aim is to spend heavily to achieve increased awareness and product acceptance
• It estimates the investment value of advertising by linking it to other budgeting methods
• The idea is to predict the amount of revenue the product will generate and the costs it will incur over a period of time
• The advertising budget is determined on the basis of rate of return desired
• Preparing a payout plan depends upon accuracy of sales forecast, factors affecting market, estimated costs
• Initially the advertising expenditures will be high and eventually will reach a break-even point and then will show decline and increase in sales following the S shaped Function

Advantages

• It is useful and logical planning tool

Disadvantages

• It cannot account for uncontrolled factors e.g. – competition, changes in government policies, new technology

(vii) Quantitative Models

• Advertisers use quantitative methods such as mathematical and statistical models to allocate advertising budget
• Multiple regression analysis is used to determine the effect of advertising expenditure on sales.
• Experimentation and formal analysis is required to use this method
• It is an expensive and time consuming method

(viii) The Experimental approach –

• It is an alternative to quantitative models
• The Advertising manager conducts tests or experiments in one or more selected market areas
• The Advertising strategy is tested in market areas with similar population, brand usage, market share
• Different advertising expenditure levels are kept for each market
• Brand awareness and sales levels are measured before and after
• Results are compared and variation of influence of advertising expenditure studied
• The feedback results determine the advertising budget levels
• Manager may decide a certain budget level according to the advertising objectives

Disadvantages

• It is expensive and time consuming
• It ignores uncontrollable factors
• It not universally accepted

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Planning a Creative Strategy – This is one of the most challenging jobs in the Advertising. The planning stage involves in-depth research on the target audience, product, positioning and the communications media to create advertising briefs, advertising message and formulate various tactics to address the targeted audience. It involves decision making regarding the target audience, product positioning, advertising appeals, ad message, type of media etc. according to the business objectives of the advertiser.   

Development of Creative Strategy – Based on the inputs received from the planning stage, earlier assessments and campaigns; unique selling propositions are framed for the advertiser`s products. At this stage a thorough analysis is conducted on the market conditions, consumer approaches and competition performance to create an ad copy, storyboards, verbal & non-verbal elements, work plan, creatives tactics etc. It involves development of a financial as well as creative strategy for the advertising campaign. 

Execution of Creative Strategy – At this stage the Advertising Agency or the Marketing Communications Team takes all relevant efforts to execute the Marketing and advertising strategy planned during the earlier stages. Pre-testing of advertisements are conducted before the actual execution to estimate the likely impact of the ads and the effectiveness of the advertising campaign.

Evaluation of Creative Strategy – Any strategy is successful only when it achieves the purpose of its formulation. This stage involves evaluation of effectiveness of the executed strategy through various post-testing methods. These methods differ from one media to another. Post-testing is conducted to estimate the net return on investment and determine the effectiveness of the advertising campaign. All Post evaluation observations are recorded in a common database for future reference and implementation for other projects.

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• By thinking logically, evaluating the products in detail and determining the effectiveness of the product from various sources
• By thinking emotionally, without in-depth assessments about the products

The Elaboration Likelihood Model (ELM) model suggests that consumers must take a middle route to the above mentioned two routes to make balanced decisions. Such balanced decision making will have a positive impact on decisions regarding products bought for a long term.

According to the Elaboration Likelihood Model (ELM), people tend to listen to speeches made by others or see programs that are persuasive in nature. The same speaker or program may not interest people at other points of time. This shows that people are persuaded or form opinions during different events or occasions. Persuasion, as per the Elaboration Likelihood Model (ELM) is divided in to two types namely Central Route and Peripheral Route.

Central Route to Persuasion

This concept substantiates the attitude of customers to listen to the speech or witness the program telecast in Television if the subject matter discussed interests them. They listen to the speech even if the same is delivered by a speaker who is not their favourite just to hear to the facts and figures spoken by them. They listen to information communicated through the speech. The attention that they pay to details communicated is intense and deep. Such consumers base their decisions pertaining to purchase on the details they accumulate from listening to the speech. They take purchase decision in a well-informed manner. This is the base concept of central route to persuasion as substantiated by the Elaboration Likelihood Model (ELM).

Peripheral Route to Persuasion

Many a times people listen to a speech or view a person talk without paying much attention to the details they share. Instead, they get carried away by the name and fame of the personality who is presenting the data. They feel impressed with the mannerisms exhibited by the person. They tend to feel persuaded with their buying decisions which are mostly based on things that are superficial in nature. This is termed as Peripheral route to persuasion as substantiated by the Elaboration Likelihood Model (ELM).

It is important for advertising agencies to take the Elaboration Likelihood Model (ELM) into consideration to assess the attitudes of customers to make an effective advertising strategy.

Also read: Foote, Cone and Belding Model – FCB Grid Model, Kim Lord Grid Model – Cognitive Response Model

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Kim Lord Grid Model works on the basis of customer responses elicited by advertisements that are highly effective. The customer responses elicited through advertisements have a direct connection with the consumer’s attitude towards the message communicated and also projects the purchasing intention of the consumers and the brand they want to go in for.

Kim Lord Grid Model – Cognitive Response Model (CRM)

According to the Kim Lord Grid Model, three types of responses that are cognitive in nature are elicited from consumers.  They are:

• Source Oriented Thoughts
• Product/Message Thoughts
• Advertisement Execution Thoughts

• Source Oriented Thoughts – As per Kim Lord Grid Model, Cognitive Responses are elicited due to Source Oriented Thoughts. Source Oriented Thoughts refer to the basic source through which a consumer gets information about a brand or product. When negative impressions prevail about the source person or company, selling the product becomes difficult. However, when the information about products and brands come from a reliable source it is considered as a genuine one and acts as a positive influence over advertising and selling of the product or brand. It is a good idea to hire a reputed personality as a spokesperson or brand ambassador to exert positive influence about the product or brand.

• Product/Message Thoughts – The Product / Message Thoughts as per the Kim Lord Grid Model refers to all the pertinent information given to the target segment or a set of consumers about the product. Such messages can be of two types namely Support arguments and Counter Arguments. While Support Arguments provide all positive details about the product in a highlighted manner, Counter Arguments generally tend to put down the product or brand in bad light in front of the customers. Counter Arguments arise due to various reasons like the negative impression of the source from which the support arguments arise or negative attitude of customers as their favourite brand is getting attacked.

• Advertisement Execution Thoughts – Kim Lord Grid Model substantiates how a live advertisement can make or break the good impression of a consumer in a short time. Even those customers who do not have the intention of buying a particular product may get an idea to go in for the product if the advertisement impacts them in a positive manner. On the contrary, even the customer who is under the impression to buy a product may defer from doing so if the quality of the advertisement has a negative impact on the minds of consumers. Hence all the attributes of an advertisement like the ad copy, ad message, colours, the graphic and visual effects created to make an impact on the consumer or the tone of voice and modulations used are very crucial to make an effective impact.

Consumer decision to purchase a product or choose the product belonging to a particular brand depends on mix and match of various factors. A consumer who has received information about a product from a reliable source may still feel discouraged due to inferior quality of advertisements displayed. It is important that all aspects of advertisements are handled with enough care to exert high levels of influence over the minds of consumers.

Also Read: Foote, Cone and Belding Model – FCB Grid Model, Elaboration Likelihood Model

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The Foote, Cone and Belding Model was designed in a grid format based on ‘Think and Feel’ as the base factors. On the basis of these two factors, the involvement levels of consumers are classified as either High Involvement or Low Involvement.

The four quadrants in the FCB Grid divide products and the motivation to buy those products into four categories on the basis of involvement and decision making pattern of consumers regarding those products. It also suggests different marketing and advertising strategies to target each quadrant effectively.

Characteristics of FCB Grid

• Foote, Cone and Belding Model is used to assess the thinking and feeling patterns of consumers which act as the basis of strategizing advertisements

• The two basic elements used for the assessment in Foote, Cone and Belding Model are Thinking and feeling

• The FCB Grid is based on the Split Brain Theory which substantiates and emphasizes on the working of Left Brain and Right Brain in human beings

• The Horizontal Row in the Foote, Cone and Belding Model shows that the behaviour of the consumers tend to move towards thinking emotionally from being rational over a period of time

• The Vertical rows of the FCB grid shows how consumer interests or behaviour shifts from high involvement to low involvement and from low involvement to high involvement over a period of time

• The FCB Grid helps Advertisers to formulate effective advertising strategy for each quadrant.

• The first quadrant in the FCB Grid helps the advertising agencies to formulate Informative Strategies
• The second quadrant in the FCB Grid helps the them to formulate Affective Strategies
• The third quadrant in helps the advertising agencies to  formulate Habit formation strategies
• The fourth quadrant in the Foote, Cone and Belding Model helps the them formulate satisfaction Strategies

Four Quadrants of FCB Grid

Characteristics of FCB Grid – Quadrant 1

The top left quadrant which falls under the ‘Think’ and ‘High Involvement’ categories is termed as Quadrant One. It symbolizes the deep thinking and high involvement levels shown by consumers before making a purchase decision. The value that a customer attaches with a particular need or product, decides the purchase decisions that fall under this Quadrant. For instance, a high cost product that is bought once in a life time will fall in this quadrant owing to the money invested in the purchase. Some examples of products whose purchase involves high involvement and thinking are investments in Financial and Insurance products, purchasing a house or land and purchase of jewelry.

Demonstration acts as the key driver in Quadrant one. The quality exhibited in Quadrant one is ‘Learn, Feel Do’. The best strategy to advertise products that lie in this quadrant is to provide customers with complete information about the product including practical demonstrations if possible. The most suitable media strategy to impress Customers who belong to this quadrant is providing them Infomercials, Printable and Long copy formats. This is the reason why the first quadrant is also termed as Informative Quadrant.

Characteristics of FCB Grid – Quadrant 2

Quadrant Two includes products that require high involvement and whose purchase decisions are based on feelings of customers. Such purchases are driven by emotions and are for satisfying self and satisfying one’s ego. Such purchase decisions calls for convincing self during the decision making process. Some products that calls for High Involvement as well as feeling that kindles the desire in consumers are beauty products, car for the family and dress material.

Impact acts as the key driver in Quadrant two. The quality exhibited in Quadrant two is ‘Feel, Learn, Do’ pattern. The best strategy to advertise these products is to provide, visuals that will have a high impact on customers. The most suitable media strategy to impress Customers who belong to this quadrant is displaying attractive images in print media and Television channels which impact consumers visually. This is the reason why the second quadrant is also termed as Affective Quadrant.

Characteristics of FCB Grid – Quadrant 3

Quadrant Three in the above grid signifies the regular purchases that happen as a habit or necessity to live life. For instance, monthly groceries purchase fall under this category. This type of purchase is done with low levels of involvement and very little amount of thinking since the customer has formed a habit. Not much thinking is required for purchase of products that are brought again and again. Examples for products that are purchased with low levels of involvement and very little thinking effort are monthly groceries, vessel cleaners etc.

Reminder acts as the key driver in Quadrant Three. The quality exhibited in Quadrant three is ‘Do, Learn, Feel’ pattern. The best strategy to advertise these products is to focus on symbolic means and visual elements that will have high impact on the consumers. The most suitable media strategy to impress Customers who belong to this quadrant is Reminder advertisements and repetition of the same, Jingles and slogans that are highly catchy.  This is the reason why the third quadrant is also termed as Habitual Quadrant.

Characteristics of FCB Grid – Quadrant 4

Quadrant Four in the above grid points out to purchases made by consumers with low levels of involvement and feelings. Buying things just for the heck of purchasing or yielding to peer pressure fall under this category of purchase. Such purchases are personal preferences and can be momentary decisions. The products that fall under this category are those that are bought in an impulsive manner or for personal satisfaction. Some such products are eatables from a new food joint unable to resist the aroma, perfumes that spread heart warming fragrance or personal preferences regarding cigarettes, alcohol  etc.

Attention acts as the key driver in Quadrant Four. The quality exhibited in Quadrant Four is ‘Do, Feel Learn’ pattern. The best strategy to advertise these products is to focus on customer impulses and preferences. The most suitable media strategy to impress Customers who belong to this quadrant is through Newspapers and Bill Boards. This quadrant is termed as Satisfaction Quadrant.

Key advantages of using Foote, Cone and Belding Model

• Foote, Cone and Belding Model is very rational and logical

• It is highly realistic since it is based on human psychology

• The model is consistent since it does not involve discussions about changing consumer attitude but just exhibits their purchase related behaviour

• Though the model discusses only about the consumer behaviour, it is capable of exerting influence over consumer mentality on purchase related decisions. This is achieved through the insight provided by the grid on the purchase pattern of each consumer. This change in mentality makes consumers think of alternatives during their next purchase.

• A consumer who studies his purchase pattern through the Foote Cone and Belding Model tends to understand the non-rationale manner in which some of his purchase decisions were made. This brings about a change in his behaviour making him think rationally before making a purchase rather than harping on lateral thoughts.

• From a sales point of view, all four quadrants clearly point out the customer behaviour in terms of decision making pertaining to purchases. This helps sales department to focus on the target audience represented by each quadrant for its own product lines.

Also Read: Kim Lord Grid – Cognitive Response Model (CRM), Elaboration Likelihood Model

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Response Hierarchy Models provide clarity pertaining to the response that is elicited from a customer at different stages of his journey right from lack of awareness to purchasing the product.

There are five Response Hierarchy Models that substantiate the behaviour of consumers across three stages of awareness namely; Cognitive Stage, Affective Stage and Behavioural Stage. 

The five response hierarchy models are:

• AIDA Model
• Hierarchy of Effects Model
• Innovation Adoption Model
• Information Processing Model
• Operational Model

Five Response Hierarchy Models

(1) AIDA Model – The AIDA Model is one of the moat established models among the Response Hierarchy Models. The expansion of AIDA is Attention, Interest, Desire and Action. Organizations use AIDA Model to elicit the required response from targeted customers through Advertisements. AIDA Model can be effectively used to stimulate different emotions of customers.

• Attention: The model substantiates that attracting the attention of the customer acts as the first point in the response eliciting process from customers.

• Interest: Raising the interest levels of consumers once they are attracted towards a product or service is the next logical step in eliciting response from them

• Desire: Convincing the customers to buy the products or services being advertised is the next step. It is during this phase that a customer feel convinced that the products or services being advertised will be useful for them and shows a desire to buy the product.

• Action: Taking the final purchase decision and buying the product that is being advertised is the final step in the process of customer response.

As per the AIDA Model, attracting the attention of customers takes place in the Cognitive Stage. Kindling the interest of customers and making them realize their desire to go in for the product which happens in the Affective Stage and the action of buying the products and services happens in the third stage which is termed as Behavioural Stage.

(2) Hierarchy of Effects Model – Hierarchy of Effects Model which was formulated by Gary A Steiner and Robert J Lavidge substantiates consumer behaviour through a six step process. According to the Hierarchy of Effects Model, every customer passes through six phases before the final purchase is made. The six phases that a customer travels through as per Hierarchy of Effects Model are Awareness, knowledge, Liking, Preference, Conviction and Purchase.

• Awareness is the stage at which customers become aware about the product and start to understand about the brands that sell the product and the different models available.

• Knowledge is the second stage of the process in which the customers gain more knowledge about the product or brand. In order to ensure that their brand is visible to prospective customers, advertisers must carry our all possible efforts to highlight the positive aspects of their product.

• Liking is the third phase where customers tend to develop a liking for the product. This liking must be aroused by advertisers by highlighting the appropriate emotional appeals related to the product.

• Preference is the phase where a customer is clear about the product, model and brand choices he wants to go in for. It is the responsibility of advertisers to make constantly reinforce the positive aspects of their brand in the minds of the customers.

• Conviction is the phase at which the consumers have made up their mind to go in for a particular brand and product. It is the responsibility of the advertisers to guide customers towards making a choice of brand, product and store etc.

• Purchase is the final stage as per the Hierarchy of Effects Model at which the customer purchases the product.

The three stages under which the above six phases fall are as follows.

• Cognitive Stage – This is where the thinking process happens. The first two steps of Awareness and Knowledge falls under this stage.
• Affective Stage – This is the stage where the customer evaluates the product. Liking and Conviction phases fall under this stage.
• Conative Stage – Also known as Behavioural Stage, the action of purchasing the product happens during this stage.

(3) Innovation Adoption Model – Innovation Adoption Model takes into consideration the various phases that a customer goes through to accept innovation in products and services. It is a simple model which substantiates that customers accept new innovative products and services by passing through five stages namely Awareness, Interest, Evaluation, Trial and Adoption.

• Awareness is the phase at which the customers becomes aware about the new product introduced in the market

• Interest is the phase at which information about the new product spreads in the market and kindles the interest of customers to know more about the product.

• Evaluation is the phase at which customers evaluate the new product or service to have an in depth understanding about it

• Trial is the phase at which customers try the product in order to take a final decision about purchasing the product

• Adoption is the final phase at which the customers accept the product and its features and finally buy it.

(4) Information Processing Model – This model, like the other response hierarchy models substantiates that consumers go through a series of phases before making the final purchase decision. It emphasizes on six phases namely Presentation, Attention, Comprehension, Yielding, Retention and Behaviour.

• Presentation is the first phase at which a customer becomes aware about a need and looks for a product that can satisfy the need

• Attention is the second phase at which a product grabs the attention of the customer

• Comprehension is the phase at which the consumer compares and evaluates different products and brands to select the product that meets his/her requirements

• Yielding is the phase at which the customer settles down for a specific brand and its product that they have selected at after in depth research

• Retention is the phase at which the customer remembers key factors and attributes about specific brands and their products that they want to purchase

• Behaviour is final phase at which the customer finally purchases the product he/she selected

(5) Operational Model – This is a simple model that works on the basis of three activities namely Cognitive Activity, Affective Activity and Conative Activity and involves three stages that are Non-evaluative thinking, Evaluative thinking and Action.

• Non-Evaluative Thinking falls under the Cognitive Activity. This is the stage where the consumer gets exposed to different brands and various models of product they wish to buy.

• Evaluative Thinking phase falls under the Affective Activity Stage in which the customer evaluates different products and compares the same with similar ones for making a choice among various alternatives available

• Action is the phase in which the customer takes the final decision to purchase the product and buys it for consumption. This phase falls under the Conative Activity, also referred to as Behavioural stage.

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