advertising strategies of cigaette companies in india
...ency over time. Closely connect the brand with the advertising. What affect the intensity of feelings? Believability Empathy ATTITUDE TOWARDS THE ADVERTISEMENT Perhaps the simplest explanation of how a feeling advertisement works is that people like or dislike it as an ad, & this attitude gets transformed to or associated with the brand in the ads. In fact some researchers believe that attitude to the ads really has WHAT MAKES AN AD MORE LIKABLE According to an exhaustive review of the literature Muchling. Mc Can, studies have found attitude to the ad to be higher if the ad has – More credibility Smokes positive, likable feelings Uses humour Uses relevant or linked music, sex appeal, or other such exceptional devices. Uses likable and attractive celebrities. Use endorsers of the same race e target market Doesn’t have excessively high level of fear (it using fear appeals) Is for a brand the consumer already likes. Contains useful information, but not too much to make it bring. Is interesting and reasonable complex Contains information that is itself liked (e.g. About a special deal) Is placed in a media environment that it self is linked. Warmth in Advertising When audience is asked to describe advertisements one dimension that is used can be interpreted as perceived warmth .In advertising content, warmth can be experienced vicariously when one and more character in a commercial experiencing warmth a viewer might be reminded of a prior warmth experience by a commercial and be stimulated to relive it. Humor in advertising Humor is obviously not a feeling by it self, but it can evoke feeling such as urgency energy, cheer, joy and happiness. The potential then exists for the feelings engendered by this humor to become associated with the brand, there by effecting the attitude to ward to brand and perhaps its image /beliefs as well. However while humor can assists ads in some ways (such as gaining attention and creating likeability), it can heart the effectiveness of the ad in other ways (such as possibly interfering with copy —point communication), so it must be used with great care) BRAND EQUITY IMAGE AND PERSONALITY BRAND EQUITY A brand can have high equity or a value as a tradable asset for many reasons. According to David Aaker, brands have equity because they have high awareness, Many loyal consumers, a high reputation for perceived quality, proprietary brand assets Such assistance distribution channels or patents or the kind of brand association (such as personality association) Consumers prefer high equity brands because they find it easier to interpret what benefit the brand offer, feel more confident of its, and more satisfaction From using it .because of such consumer preference the brand can change a higher price command more loyalty and run more efficient marketing programs. BRAND PERSONALITY ASSOCIATIONS Joseph Plummer former research director of young and rubicama, indicate they are three components to a brand image ,attribute ,consequence. Brand personality - It is perhaps more inclusive to think of a brand’s image as encompassing all the associations that a customer has T.V. that brand all the thoughts, feelings and image — even the colors, sounds & smells that are mentally linked t that brand in the consumer’s memory. Brand personality is just like human personality goes beyond demographic descriptions. Importance of brand personality association: - (a) Importance to marketers:- For the advertiser the development & reinforcement of a personality for a brand serves to differentiate the brand from competition at a time when many brands are at or near parity in terms of technology, the only difference between brands is often the personality that is associated with them. Further a brand personality is often unique & non perceptible while competitors can match your brands features, price but they can’t duplicate your brand personality. (b) Importance to consumers: - (1) Consumer select brands because of the congruity between their self-image & the brands self definition rationale would be stronger in some product categories than in others. (2) Brand tells about social conspicuousness, luxury goods being relatively more about the user’s affluence. (3) As consumer is ‘ambiguous’ regarding its inherent quality level so they depend on the image created through advertising to make that determination. Implementing a brand personality strategy (a) Researching brand personality associations: - There are various ways to learn about the bran / personalities that consumers associate with the differentiate with é different brands in a product category as well as with the differentiate product category itself some are more direct and quantitative where as others are more indirect & qualitative. (b) Targeting a brand personality : The personality of scale ratings or associations. Obtained through the method just describe can next be compared to the target consumers ratings of his or her own personality both actual & aspired to & interferences can be drawn on which aspects of a brand’s personality need to be reinforced or changed through advertising. Executing brand personality strategy: - Key advertising element’s that contribute to a brands personality all the following: - (I) Endorser: - The choice of an endorser is often crucial because the personality of the endorser can get transferred to the brand with enough repetition where the characters are not real the casting becomes vital the people chosen to play a role need to be exactly right. (II) User (image): - The kind of brand user portrayed in the ad can also be very important. (III) Exceptional elements: - Elements such as choice (in broadcast ad) music, visual direction, pace & nature of editing, color schemes used and (in print ad) of color, layout, and typography can all contribute substantially to a brands personality. (IV) Symbols: - A very useful exceptional element is the use of an idiosyncratic brand symbol, such as Mc Donald’s golden arches ‘M’. (V) Consistency: - In addition to the content of the advertising one other basic principle is very important executing a brand personality strategy. It is the principle of predictability & consistency. Group influence & word of mouth advertising: - In this a potential consumer relies on the opinion of another to decide on brand adoption, adoption through such mechanism is part of what has been called the diffusion process. Informational influence strategy: - It is the most straightforward strategy implication is that the advertiser can attempt to single out the crucial innovator & opinion leadership segment & target promotion advertising messages to them using the appropriate credible sources as endorsers. Normative influences: - Reference group can influence consumers & not only through the provision of information perceived to be ‘expert’ but also through the provision of norms, standards, values, attitude and the like that are influential with those who belong to, aspire to, or identify with this reference groups. Creative Approaches - After an advertiser decides on the content of an ad the “What to say” decisions the task of creating the ad itself is usually handed off to the creative people at the ad agency. Rational creative approaches: - (a) Comparative advertising - It is form of advertising in which two or more named or recognizable brands of the same product class are compared and the comparison can be implicit or explicit. (b) Two sided & one sided comparative ad – A message is one sided if it present only positive arguments or attributes and two sided if a few qualification, usually about relatively minor attributes are presented. (c) Open ended & close ended compression Another relevant issue is wither conclusions and arguments should be spelled out explicitly in comparative ads or whether the receiver should be left to draw his or her own conclusions out superiority of the brand sponsoring the comparison. (d) Reputation advertising: - It refer to the process of explicitly stating competitive appeals & then ins ad of dealing exclusively with brand benefits reputation message a pear to work when: - (a) They are stimulating hen supportive messages. (b) They refute counter claims & thus make the competitive attacks appear less credible when they appear. (c) Reputation messages do contain some supportive information, even though less than supportive messages. Business to business ad: - Since ‘B’ to ‘B’ ads e usually written to an audience seeking problem solving or profit improving information they should usually be informative & offer specifies serious and offer case histories of how the advertised brand helped some one else in a similar situation. Advertising on the Internet Advertisers have now begun to advertise on the world web of computer networks that promises to become another avenue of electronic commerce. Advertise set up “Home pages” that can be accessed by “Web browser” software & occupy “store fronts” in online malls. ILLUSTRATING: - The activity of illustrating is of crucial importance for many consumer non durable products where pictures are used to convey a central idea & there is little or no need for long explanations or a recitation of copy points. Normally an artist will be involved in selecting materials or will actually draw original picture for the advertising. Copy testing strategy There are three factors that have to be addressed in copy testing. Should you copy test The first decision is really weather or not to spend money on research. It is interesting that in term of total advertising volume the usual decision is no. When and what should you test? Copy testing can be done at 1. The beginning the creative process 2. The end of the creative process. 3. The end of the production stage. 4. After the campaign been launched. What criteria should be used? What criteria or copy test should be used? Copy testing services can be distinguished by the nature of the response variable used in a test. Recognition It refers to whether a respondent, can recognize an advertisement as one he or she has been before. Recall It refers to measure of the proportion of a sample audience that can recall an advertisement these can be as two type —aided unaided recall. Media strategy Setting media budgets. Economic analysis in setting and allocating budgets. The decision is based on economic analysis. A firm can issue to add to the advertising budget for a specific brand or specific advertising medium as long as the increment expenditure there are exceeded by the marginal revenue they generate. Media Practices (allocating media budgets) The media plan identifies and details the media schedule that is to be used a media schedule specified show the media budget is to be spent although the level of details of a media schedule convey it can include the specification of up to the four types of media Factors- 1. Media class: this is the type of medium, such as television, radio, newspapers, magazines bill boards, and direct mail. 2. Media vehicles: this provides immediate environment for the advertisement it has following components Media terminology Reach and frequency Measuring print vehicle audience Measuring broadcast vehicle audience Using computerized media planning models. Other media data. There are other media vehicle attributes that are often relevant considerations - Unbiased ness - prestige - Expertness - mood created - Editorial “fit” - involvement 3. Media option This is a detail decryption of an advertisement ‘s characteristics other than the copy and the artwork used. It takes the following attribute under consideration — Advertisement size and color. Advertisement location. Copy execution. 4. Scheduling and time. This specifies how media options are seduced over time. Among this strategy are — • Fighting- period of total inactivity. • Continuous — ads spared evenly over time. • Pulsing — a continuous base augmented by intermittent bursts of heavy advertisements. Timing decisions include the selection of specific issue or time slots. ADVERTISING REGULATIONS It is fascinating a object and it is highly determined by political attitude. Certain ads regulations have come up against — Promotional practices of the tobacco &alcohol industry. Health claims in food advertising. Children’s ads and there participation in ads. Environmental “green claims”. DECEPTIVE ADVERTISING It exist when an advertisement is introduced in to the perceptual process of some audience and the out put of that process — Differ from reality of the situation Affect buying behavior to the detriment of the consumer. Misrepresentation or omission — It may occur due to following reasons: Suggesting that the small difference is important Artificial product demonstration Using an ambiguous phrase Making claims without substitutions Measure to check omissions are — Self regulation Affirmative disclosure Corrective advertising. ADVERTISING AND SOCIETY It can be studied under following head- 1) Nature and content of advertising Ethics— This has becomes a heated subject these days. Those product ads that are ethically wrong /not acceptable to society is being band or curtailed. Taste some critics believe that advertising is object able because the creativity beanie it is not good. Ads may not be omnipotent but may contend that it is too omnipresent or instructive. Advertising to children It has been in focus &in concern for many years Effects on value lifestyle negative ads on value &life style to be curtailed. UNISCO put together a sixteen-member time to study the “totality of communication problem in modem society”. The report that is known as acrid report, produced 82 recommendation directed largely at the potential danger of ads &the need for on advertising practices. ECONOMIC AFFECT OF ADVERTISEMENT It is unreasonable to separate the economics and social affect of advertisement. Some economic affects are :- Ads provide informational utility. It maintains or enhances brand equity. It supports the media. Provides employment It reduces distribution cost Provides product utility Stimulates introduction of new products. Advertising provides information to consumer and helps them to make better economic decisions. Cricketers in cigarette ads: HC notice to Govt. PRESS TRUST OF INDIA NEW DELHI, MAY 16: The Delhi High Court has issued notices to the Center, Information and Broadcasting Ministry and Director General, Doordarshan (DD), asking them to file replies to a petition seeking to ban the advertising of cigarette and tobacco products by Indian cricket players. A division bench comprising Justices Arun Kumar and Manmohan Sarin asked the respondents to file replies while fixing the next hearing for July 7. The petition, filed by the Voluntary Health Association of India (VHAI), sought a direction to the Board of Control for Cricket in India (BCCI) to cancel its contract with the Indian Tobacco Company (ITC) and prohibit the cricketers from wearing the company's logo during games. This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more. A ban on tobacco advertising and promotion has been recommended by both the World Health Organization and the World Bank indicating that the measure makes sense in both health and economic terms. These organizations recommend restrictions on tobacco advertising for the same reason that the tobacco industry spends vast amounts of money on it – because advertising increases sales and consumption of tobacco. Tobacco industry advertising has three main purposes. To acquire new users, to hold current users, and to re-acquire lapsed users of their products. These purposes contradict public health goals. The government’s policy is to ensure that young people do not start, that current smokers quit, and that ex-smokers remain tobacco-free. The Tobacco Industry Targets Children Children are a key market for the tobacco companies. The industry knows that most people start smoking as teenagers and that if they can get teenagers to start they have a customer for life, so they intentionally and systematically target children in their marketing and advertising. The industry has studied child psychology and is expert on when, how and why children smoke. Some of the best brains in advertising employ all the tools of modern communication to hook children to tobacco. Advertising glamorizes smoking - making it appear to be the ‘passport to success’ and the key to being slim and beautiful for young women. Of course, the tobacco industry denies that it wants children to smoke. They claim that they only market to adults. However their internal marketing documents reveal that the high school student is "the base of their business ". Another state: "If younger adults turn away from smoking, the industry must decline, just as a population which does not give birth will eventually dwindle." A third memo stated that the 14-24 age group “represents tomorrow’s cigarette business" and that "they will account for a key share of the total cigarette volume for at least the next 25 years.... Thus our advertising strategy becomes clear...Direct advertising appeal to younger smokers" And how should this appeal be framed? Their marketing advisers told them to exploit peer pressure, that Camel advertising should create "the perception that Camel smokers are non-conformist, self-confident and project a cool attitude, which is admired by their peers " The need to be seen as cool, a member of the in-group, is one of the strongest influences affecting the behavior of younger adult smokers. In other words, advertising must play on children’s social insecurities to get them to start smoking. Advertising Bans Reduce Smoking The tobacco industry spends R240 million a year on advertising and promotions yet claims that this does not influence either adults or children to smoke. This claim is ridiculous. Both the US and UK governments after examining the evidence have concluded that a ban on smoking results in a fall in smoking levels. In Norway, Finland, New Zealand and France - four countries with effective bans on tobacco advertising and promotions - cigarette sales decreased after advertising was totally banned to 1996. Smoking in the Workplace It is particularly important to ensure that workplaces are smoke-free. Many people spend more of their waking time at work than at any other place and in the course of a working life of 40 or more years, exposure to tobacco smoke at work can be considerable. Passive smoking causes lung cancer and heart disease in non-smokers. In recent years voluntary policies to restrict smoking in the workplace have greatly increased but large numbers of workers continue to be involuntarily exposed to the dangers of passive smoking. Over 70% of smokers and 90% of non-smokers support restrictions on smoking in public places. The policy will contribute to the achievement of a safer, healthier work environment. Free Samples The distribution of free samples of cigarettes encourages experimentation with tobacco products by children and young people. Teenagers are very price–sensitive and the availability of free cigarettes is an inducement to start smoking or to increase consumption. The tobacco industry has distributed free packets of cigarettes at shopping malls, technikons, colleges and clubs as part of its marketing strategy. Safer smoking While there is no such thing as a safe cigarette, it remains the goal of public health to make cigarettes less harmful for those who will not, or cannot, stop smoking. The Bill will enable the Minister to set upper limits on the emission products of cigarettes and to progressively lower the levels of harmful substances in smoke. A Tobacco Advertising Ban is Constitutional Almost every country in the world, including our own constitution, permits restrictions on freedom to protect the public welfare. Many countries with excellent democratic traditions, including France, Australia and Norway, have banned tobacco advertising for just this reason. Constitutional lawyers are of the view that the Bill will survive a challenge in the constitutional court. Sponsorship As more countries around the world move to ban tobacco advertising, tobacco companies are quick to divert their attention to the sponsoring of sports and cultural events. This gives them an ideal opportunity to reach large audiences of young people. In addition to cleverly circumventing tobacco advertising bans, companies attempt to use these events to improve their image. In many developing countries, rock concerts, with their enormous following of young fans, have been a magnet for tobacco industry sponsorship. In countries where cigarette advertising is banned or restricted, sponsoring live or televised concerts enables the companies to get around local regulations. In Taiwan, one multinational tobacco company sponsored a concert with a popular teen idol in which the only accepted admission "ticket" was five empty packets of the company's cigarettes. Through the promotion of sports events, tobacco companies gain widespread exposure for their brands and are able to link tobacco with health and athletic prowess. Young people seeing cigarette logos linked with health, excitement, speed and triumph are likely to lose sight of the reality of death, disease and addiction. A 1994 advertisement by Formula One race promoters directed to the tobacco industry claimed that the "...Formula One car is the most powerful advertising space in the world." Free Cigarette Giveaways With an addictive product, it doesn't take much to hook a new customer. For the tobacco companies, the expense of giving away free samples is overshadowed by the potential for long-term gains, especially from new young customers. Although some countries have already banned free cigarette samples, this practice still continues in many countries. At rock concerts and discos around the world, attractive young women hand out popular brands of international cigarettes. In some cases, those who accept a lit cigarette on the spot are rewarded with a free gift. A multitude of other examples where young people have been targeted for free cigarette samples have been reported around the world, particularly in less developed countries. When Children Become Walking Cigarette Advertisements Cigarette-Branded Merchandise Another popular means of keeping cigarette brands in the public eye and circumventing restrictions on advertising using cigarette logos on other products such as caps and T-shirts. Many of these products are popular with children around the world, and they soon become walking cigarette advertisements. Counter advertising can be a useful addition to a tobacco control campaign In countries around the world, young people are exposed to highly effective tobacco advertising on a daily basis. Tobacco companies spend billions of dollars each year to promote tobacco products, an amount which dwarfs the resources available to most tobacco control programmes. Thus, one important requirement for an effective prevention programme is to seriously limit the ability of the tobacco industry to hook a new generation of smokers through advertising. At the same time, a number of countries have produced anti-tobacco advertisements for distribution via mass media. Many of these ads are targeted at young people, with the aim of de-glamorizing tobacco. There are often possibilities for free distribution of these ads in the form of public service announcements. However, they are only useful if they are seen, and not broadcast only during times when most viewers are asleep. In some situations, carefully selected paid counter-advertising campaigns may be worth the cost. In the USA, Doctors Ought to Care (DOC) pioneered the concept of using paid counter advertising to ridicule brand name tobacco advertising and promotion. Health interests can never hope to match the spending by tobacco interests on paid media advertising, and probably should not try. However, paid media advertising, when used with precision, can be an effective tool in a comprehensive effort to discourage tobacco consumption. Market Research, Market Segments, Target Markets and the Tobacco Industry: As a consumer of a wide variety of products how do you think the producers of those products see you in terms of their marketing strategy? What would you like to be seen as? Part of the young trendy set? An 18-24 year old with sophisticated tastes and an understanding of quality, refinement and class? Or would you rather be viewed as a down-market slob? A set of documents was put onto the Internet by NHS Health Scotland which gave a revealing insight to the way in which marketing companies identify target markets and attempt to link products to those markets to meet the needs identified - exactly what the definition of marketing would suggest! NHS Health Scotland made these documents available after they were submitted to a House of Commons Health Select Committee investigating tobacco control. It should be noted at this stage that many of the documents came from advertising agencies working on behalf of tobacco firms rather than the tobacco manufacturers themselves. However, the information which they provided to tobacco firms enabled the latter to be able to develop marketing strategies that sought to target specific markets. The dangers of smoking have been known for many years. A woman with a cigarette in her hand reads a Health Education Council poster warning her against the dangers of smoking during pregnancy, 1974. The slogan reads 'Is it fair to force your baby to smoke cigarettes?' The examples below highlight the way in which a marketing company might segment the market and seek to develop products that meet particular needs. The first concerns the Gallagher Group PLC, manufacturers of the Silk Cut King Size brand amongst others. The background to the marketing report was that the brand was suffering from competition from Marlboro - produced by Philip Morris, but seemed to be popular amongst 18-24 year olds. The marketing company were attempting to assess the attitudes of this group to smoking and the image of Silk Cut in relation to other brands. The research was carried out in 1994. The company divided the market into 4 segments as follows: Slobs (27%) Aspiring Sophisticates (20%) Conservatives (28%) Worriers (25%) Each group was given a brief description that characterized their lifestyle and habits. Slobs were 'down market', likely to live with parents and would not have gone on to further education. They were seen as being unconcerned with diet, health, appearance or company promotions but wanted a 'strong' cigarette. Aspiring sophisticates were mainly 18-24 year old men. Less than a fifth of them would have gone on to higher education but would view their job as a career and were conscious of their image, enjoyed the pursuit of pleasure and viewed Marlboro as a 'trendy' cigarette that reflected their image. Conservatives were the least financially pressured of the segments; they were seen as being image and fashion conscious but had no distinct demographic or attitudinal characteristics. These groups were looking for a mild tasting cigarette. Worriers were predominantly women who were health conscious and concerned about their financial state, the environment and the future but not concerned unduly with their image. The second example highlights the fact that the way in which these segments are seen may influence the type of approach to the marketing strategy the firm might adopt. When thinking of appropriate advertising that would engage the prospective customer, a variety of strategies can be used. But if, as was reported, you believe that the target market are 'rough, unfocussed, insecure, brazen, inarticulate' as a group of Nottingham females were described, then the advertising needs to be carefully considered. This is further highlighted by the view that some groups of smokers needed to have advertising that did not go 'over their head' because they were described as 'not rocket scientists' who get frustrated at advertising that may be thought of as 'too sophisticated' as is emphasised by the following quote: 'L&B (Lambert and Butler) smokers are pretty down market - anything too clever will go over their heads. The advertising needs to be kept fairly easy' . Tobacco auction in North Carolina, July 29, 2003 - the smallest crop ever due to lawsuits against tobacco companies, dwindling demand, and increased availability of cheap foreign tobacco. Title: Tobacco Auctions Open In North Carolina. Strategies can be devised that seek to bring the prospective consumer into the brand. In some cases this can be carried out in what may be considered a slightly 'underhand way'. For example, the offering of gifts, vouchers or coupons could be viewed as ways to give the brand added value and a competitive advantage over its rivals; alternatively it could be a case of giving the impression that the customer is actually getting more than they really are. In one case, a suggestion was made to 'trick' cigar smokers into applying for a free pack of a brand when the intention was to provide a new brand and in the process get the customers names for the database! Other aspects of the documents cover the packaging, targeting female smokers in particular (the so-called 'pink pound'), students, the use of major events and activities to get the brand noticed, peer group endorsement, developing massive databases of consumer details and so on. In addition, the availability, ease of purchase and awareness of the brand were suggested as being crucial in maintaining and developing the business for cigarette manufacturers. Theory There are a number of theories related to this information - t...