Topic

“Marketing Communication &

Advertising”
To gain an understanding of:
 The role of marketing communications
 Different forms of marketing communications
 The concept of integrated marketing
communications
 The communication process
 Designing and budgeting for the marketing
communications mix
 Considerations in developing a marketing
communications campaign
 Regulation of marketing communications

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Purposes of Marketing
Communications
 not only informs, but is also used to differentiate
the seller’s products/services
 may also be effective in affecting the price
elasticity of demand (nonprice competition)
 the marketing communications strategy of a firm
must be coordinated and linked with concepts
such as target segments, positioning,
differentiation, and image
 requires a closely coordinated approach

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Marketing Communications
 Informs, persuades and reminds
 Is part of the marketing mix
 Includes all the means by which a
company communicates directly with
potential customers.
 Attempts to influence feelings, beliefs, or
behaviour.

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Marketing Communication
Methods
 Personal selling: The direct presentation of a
product to a prospective customer by a
representative of the selling organization.
 Advertising: A paid, impersonal mass
communication with a clearly-identified sponsor.
 Sales promotion: Demand-stimulating activity
designed to supplement advertising and facilitate
personal selling.

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More Methods
 Public relations: A planned communication
effort by an organization to contribute to
generally favourable attitudes and opinions
toward an organization and its products.
 Publicity: A special form of public relations that
involves news stories about an organization or
its products.

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Integrated Marketing
Communications
 A strategic business process used to plan, develop,
execute, evaluate coordinated communication within
an organizations publics, requiring:
 Awareness of audience’s media habits and
preferences
 Understanding of audience’s knowledge and beliefs
about the product
 Use of coordinated media blend linked to a specific
objective
 Key is a single, coordinated message and image
thrust

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Basic Communication Elements
 A message
 A source of the message
 A communication channel
 A receiver
Communication process components:
• Encoding • Response
• Decoding • Feedback
• Noise

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The Communications Process
 communications requires a channel, with a sender
and a receiver, to handle the message
 a message is first encoded by the sender
 the communications channel is then used to
deliver the message to the sender
 the sender decodes the message, based on his or
her frame of reference and experience
 may be a need for a response and feedback
 the process can be interrupted by noise

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 MESSAGE
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 There are many forms of encoding

Encoding
Encoding

Verbal
Verbal Graphic
Graphic Musical
Musical Animation
Animation

•• Spoken
Spoken •• Pictures
Pictures • Arrange- •• Action/
Action/
Word
Word ment Motion
Motion
•• Drawings
Drawings
•• Written
Written • Instrum- •• Pace/
Pace/ Speed
Speed
Word
Word •• Charts
Charts entation
•• Shape/
Shape/
•• Song
Song Lyrics
Lyrics • Voices Form
Form
Inside the Communications
Process
 The act of encoding allows that messages can
take many forms.
 The methods of transmitting a message are
limited only by the imagination and creativity
of the sender.
 How the message is decoded depends on its
form and the capability and interest of the
recipient.
 Without measurable objectives, the
effectiveness of a message cannot be
evaluated.

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Considerations in Designing
Marketing Communications Mix
 Target market
 Readiness to buy, knowledge, liking, preference,
conviction (belief)
 Purchase
 Geographic scope
 Type — consumer or middleman
 Concentration

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More Considerations

 Nature of the product

 Unit value
 Degree of customization
 Presale and postsale service
 Stage of the product life cycle
 Amount of money available for promotion

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Push or Pull Strategy
 a push strategy directs communication efforts at
channel members; a pull strategy directs
promotion at the end consumer
 many products, such as business products, are
promoted with a push strategy, involving
personal selling and use of trade promotions
 most consumer products would rely more
heavily on a pull strategy where promotion is
directed at the consumer to stimulate demand

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Choosing a Push or
Pull Strategy
 A push strategy is directing the
communication primarily at the
middlemen that are the next link
forward in the producer’s distribution
channel.
 A pull strategy has the communication
directed at the end users — primarily
consumers.

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 An Illustration
Producer
Producer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer

PUSH STRATEGY

Producer
Producer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer
PULL STRATEGY

Product flow Communication effort

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Defining Modern Advertising
 Five basic
 Advertising is paid
components:
persuasive
1. Paid communication
communication
2. Sponsor is identified
 Uses nonpersonal mass
3. Tries to persuade or
media to reach broad influence
audiences to connect 4. Reaches a large
an identified sponsor audience
with a target audience 5. Conveyed through
impersonal mass
media
Key Concepts of Advertising

 Strategy  The logic and planning

behind the ad
 Creative idea  Advertisers develop ads
to meet objectives
 Execution  Advertisers direct ads to
identified audiences
 Media  Advertisers create
messages that speak to
the audience’s concerns
 Advertisers run ads in the
most effective media
Key Concepts of Advertising

 The central idea that

 Strategy grabs the consumer’s
 Creative idea attention
 Creativity drives the
 Execution entire field of
advertising
 Media
Key Concepts of Advertising

 Effective ads adhere to

 Strategy the highest production
 Creative idea values in the industry
 Clients demand the
 Execution best production the
budget allows
 Media
Key Concepts of Advertising

 Communication
 Strategy channels that reach a
 Creative idea broad audience
 How to deliver the
 Execution message is just as
important coming up
 Media with the creative idea
of the message
Roles of Advertising

 Marketing  The process a business

uses to satisfy
 Communication consumer needs by
providing goods and
 Economic services
 Societal  Product category
 Target market
 Marketing mix
 Brand
Roles of Advertising

 Marketing  Can reach a mass

audience
 Communication  Introduces products
 Economic  Explains important
changes
 Societal  Reminds and reinforces
 Persuades
Roles of Advertising

 Marketing  Moves from being

informational to
 Communication creating demand
 Advertising is an
 Economic objective means for
 Societal providing price-value
information, thereby
creating a more
rational economy
Roles of Advertising
 Informs consumers
 Marketing about innovations and
issues
 Communication  Mirrors fashion and
design trends
 Economic  Teaches consumers
 Societal 
about new products
Helps shape consumer
self-image
 Perpetuates self-
expression
The Functions of
Advertising
 Builds awareness of products and brands
 Creates a brand image
 Provides product and brand information
 Persuades people
 Provides incentives to take action
 Provides brand reminders
 Reinforces past purchases and brand
experiences
The Key Players
 Uses advertising to
 Advertiser send out a message
(client) about its products
 Initiates the advertising
 Agency effort by identifying a
marketing problem
 Media  Approves audience,
plan and budget
 Supplier  Hires the advertising
agency
 Audience
The Key Players

 Has strategic and

 Advertiser creative expertise,
(client) media knowledge,
workforce talent, and
 Agency negotiating abilities
 Advertising department
 Media  In-house agency

 Supplier
 Audience
The Key Players
 The channels of
 Advertiser communication that carry
the message to the
(client) audience
 Are also companies or
 Agency huge conglomerates
 Mass media advertising
 Media can be cost effective
because the costs are
 Supplier spread over the large
number of people the ad
 Audience reaches
The Key Players

 Assist advertisers,
 Advertiser agencies, and the
(client) media in creating and
placing the ads
 Agency  Vendor services are
 Media often cheaper than
those in-house
 Supplier
 Audience
The Key Players

 The desired audience for

 Advertiser the advertising message
(client)  Data-gathering technology
improves accuracy of
 Agency information about
customers
 Media  Advertisers must recognize
the various target
 Supplier audiences they are talking
to and know as much
 Audience about them as possible
 Types of Advertising
 Virtually any medium can be used for advertising. Commercial
advertising media can include wall paintings, billboards,
street furniture components, printed flyers and rack cards, radio,
cinema and television adverts, web banners, mobile telephone
screens, shopping carts, web popups, skywriting, bus stop benches,
human billboards, magazines, newspapers, town criers, sides of
buses, banners attached to or sides of airplanes ("logojets"), in-flight
advertisements on seatback tray tables or overhead storage bins,
taxicab doors, roof mounts and passenger screens, musical stage
shows, subway platforms and trains, doors of bathroom stalls,
stickers on apples in supermarkets, shopping cart handles, posters,
and the backs of event tickets and supermarket receipts. Any place an
"identified" sponsor pays to deliver their message through a medium
is advertising.
Digital advertising
Television advertising / Music in advertising
A television advertisement or television commercial is a span of
television programming produced and paid for by an organization that
conveys a message. Advertisement revenue provides a significant portion
of the funding for most privately owned television networks. The vast
majority of television advertisements today consist of brief advertising
spots, ranging in length from a few seconds to several minutes.
Advertisements of this sort have been used to sell every product
imaginable over the years, from goods and services to political campaigns.
Music in advertising
Music in Advertising means integrating music in (mass) electronic media
advertisements in order to enhance its success. Music for this purpose provides
different characteristics which makes it especially interesting for usage in
advertisements.

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 Radio advertising Radio advertising is a form of advertising via
the medium of radio. Radio advertisements are broadcast as radio
waves to the air from a transmitter to an antenna and a thus to a
receiving device. Airtime is purchased from a station or network
in exchange for airing the commercials.
Online advertising Online advertising is a form of promotion that
uses the Internet and World Wide Web for the expressed purpose
of delivering marketing messages to attract customers. Examples
of online advertising include contextual ads that appear on search
engine results pages, banner ads, in text ads.
Product placements Covert advertising, also known as guerrilla
advertising, is when a product or brand is embedded in
entertainment and media. For example, in a film, the main
character can use an item or other of a definite brand, as in the
movie Minority Report, where Tom Cruise's character John
Anderton owns a phone with the Nokia logo clearly written in the
top corner, or his watch engraved with the Bulgari logo. 18 -
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Physical advertising
Press advertising :
Press advertising describes advertising in a printed medium such as a
newspaper, magazine, or trade journal. This encompasses everything from
media with a very broad readership base, such as a major national
newspaper or magazine, to more narrowly targeted media such as local
newspapers and trade journals on very specialized topics. A form of press
advertising is classified advertising, which allows private individuals or
companies to purchase a small, narrowly targeted ad for a low fee
advertising a product or service. Another form of press advertising is the
Display Ad, which is a larger ad (can include art) that typically run in an
article section of a newspaper.
Billboard advertising:
Billboards are large structures located in public places which display
advertisements to passing pedestrians and motorists. Most often, they are
located on main roads with a large amount of passing motor and pedestrian
traffic; however, they can be placed in any location with large amounts of
viewers, such as on mass transit vehicles and in stations, in shopping malls
or office buildings, and in stadiums. 18 -
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Mobile billboard advertising
Mobile billboards are generally vehicle mounted billboards or digital
screens. These can be on dedicated vehicles built solely for carrying
advertisements along routes preselected by clients, they can also be
specially equipped cargo trucks.
In-store advertising:
In-store advertising is any advertisement placed in a retail store. It
includes placement of a product in visible locations in a store, such as at
eye level, at the ends of aisles and near checkout counters, eye-catching
displays promoting a specific product, and advertisements in such places
as shopping carts and in-store video displays.
Celebrity branding
This type of advertising focuses upon using celebrity power, fame,
money, popularity to gain recognition for their products and promote
specific stores or products. Advertisers often advertise their products, for
example, when celebrities share their favorite products or wear clothes by
specific brands or designers. Celebrities are often involved in advertising
campaigns such as television or print adverts to advertise specific or
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What Makes an Ad Effective?

1. If it creates an impression for a product or

brand
2. If it influences people to respond in some
way
3. If it separates the product or brand from the
competition in the mind of the consumer
The Evolution of
Advertising
 Age of Print
 Industrial Revolution and Emergence of
Consumer Society
 Modern Advertising Era
 Accountability Era
The Current Advertising
Scene
 Expanded view  Electronic media are
changing the media
 Integrated landscape
 New media are more
Marketing personal and
Communication interactive
 Globalization
The Current Advertising
Scene
 Expanded view  The practice of
unifying all marketing
 Integrated communication tools
so they send a
Marketing consistent, persuasive
Communication message

 Globalization
The Current Advertising
Scene
 Expanded view  Increasing
globalization of
 Integrated marketing programs
 Advertisers are moving
Marketing into global markets
Communication and agencies are
forming huge
 Globalization multinational
operations