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Task
3: Determine Advertisement Budgets Strategically Manufacturer's advertising investments in any category can be described with a statistical regression known as the Advertising Intensiveness Curve (AIC). This shows that small brands must over-advertise (with their share of voice exceeding their share of market). On the other hand, large brands can afford to under-advertise (with their share of voice below their share of market). This is a measure of the above-average profitability of large brands. But there are strict limits. Any reduction below these limits will invariably lead to a loss in market share. Cases are available to illustrate this point. Task
4: Media Continuity, Not Concentration Any policy of media deployment must be based on evidence of the incremental effect of extra advertising exposures on sales of a brand. The vast weight of existing evidence supports the view that a single advertising exposure can produce sales and more exposures generate diminishing returns. This means that short-term media concentration produces sales that are more and more expensive to achieve. This is therefore uneconomic. At the same time, any gaps in a manufacturer's annual media schedule will leave the brand vulnerable to the competition from other brands in the marketplace. When schedules are based on short-term concentration, there are inevitably going to be long gaps between the periods of high advertising weight ~ a highly inefficient way of employing media budgets. Since the mid 1990s, it has been realised by the majority of American advertisers that the most effective and economic media policy is to reduce the weight of the short-term bursts of advertising and to deploy the money on a relatively continuous basis across a year. A number of individual cases are available to demonstrate this point. And more recently, aggregated data from Media Marketing Assessment, based on rigorous econometric evaluation, have shown clearly that continuity is the best policy. Task
5: Use Promotions Tactically A basic problem with promotions is that they encourage a general disloyalty to brands on the part of consumers. An even worse problem is that promotions have no long-term effects. They are different from advertising in this respect, because advertising can produce a long-term effect, which can be added to its medium-term effect, with a beneficial effect on a brand's ROI. One proven system of improving the benefit of trade and consumer promotions is to use such promotions together with consumer advertising, in a mutually supporting role. Cases are available to demonstrate that this can be to the long-term benefit of brands. All
the analysis that are referred to here are based on manufacturers and
advertising agencies using good and experienced judgement in developing
their advertising plans. As already mentioned, such plans should also
be based on the best research that the market research industry in the
country is able to provide. In many cases, the research lessons learned
at great expense in developed countries can also be applied at least approximately
to less developed ones. This is generally the policy of the leading multinational
advertisers.
TATA INFOTECH - TOTAL SOLUTIONS TOTAL COMMITMENT |
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