Advertising and Sales Promotion
UNIT - 1
Advertising
• According to American Marketing Association :
“Advertising is any paid form of non personal
presentation and promotion of ideas, goods, or
services by an identified sponsor.”
Yuvaraj.D
Marketing and Advertising
Characteristics of Advertising:
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1. Tool for Market Promotion:
There are various tools used for market communication, such as advertising, sales promotion,
personal selling, and publicity. Advertising is a powerful, expensive, and popular element of
promotion mix.
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2. Non-personal:
Advertising is a type of non-personal or mass communication with the target audience. A large
number of people are addressed at a time. It is called as non-personal salesmanship.
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3. Paid Form:
Advertising is not free of costs. Advertiser, called as sponsor, has to spend money for preparing
message, buying media, and monitoring advertising efforts. It is the costliest option of market
promotion. Company has to prepare its advertising budget to appropriate advertising costs.
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4. Wide Applicability:
Advertising is a popular and widely used means for communicating with the target market. It is not
used only for business and profession, but is widely used by museums, charitable trusts,
government agencies, educational institutions, and others to inform and attract various target
publics.
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5. Varied Objectives:
Advertising is aimed at achieving various objectives. It is targeted to increase sales, create and
improve brand image, face competition, build relations with publics, or to educate people.
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6. Forms of Advertising:
Advertising message can be expressed in written, oral, audible, or visual forms. Mostly, message is
expressed in a joint form, such as oral-visual, audio-visual, etc.
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7. Use of Media:
Advertiser can use any of the several advertising media to convey the message. Widely used media
are print media (newspapers, magazines, pamphlets, booklets, letters, etc.), outdoor media
(hoardings, sign boards, wall-printing, vehicle, banners, etc.), audio-visual media (radio, television,
film, Internet, etc.), or any other to address the target audience.
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8. Advertising as an Art:
Today’s advertising task is much complicated. Message creation and presentation require a good
deal of knowledge, creativity, skills, and experience. So, advertising can be said as an art. It is an
artful activity.
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9. Element of Truth:
It is difficult to say that advertising message always reveals the truth. In many cases, exaggerated
facts are advertised. However, due to certain legal provisions, the element of truth can be fairly
assured. But, there is no guarantee that the claim made in advertisement is completely true. Most
advertisements are erotic, materialistic, misleading, and producer-centered.
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10. One-way Communication:
Advertising involves the one-way communication. Message moves from company to customers,
from sponsor to audience. Message from consumers to marketer is not possible. Marketer cannot
know how far the advertisement has influenced the audience.
Marketing Communication
• The Marketing Communication refers to the means adopted by the
companies to convey messages about the products and the brands
they sell, either directly or indirectly to the customers with the
intention to persuade them to purchase.
• They tell or show consumers how and why a product is used, by
what kind of person, and where and when. Consumers can learn
about who makes the product and what the company and brand
stand for and whether they can get an incentive or reward for its
trial or usage.
Marketing Communications
• Marketing are means by which firms attempt to inform,
persuade, and remind consumers directly or indirectly
about the products or brands they sell. It represents the
voice of the company and and its brands and are means by
which they can establish a dialogue and build relationships
with customers.
• They tell or show consumers how and why a product is
used, by what kind of person, and where and when.
Consumers can learn about who makes the product and
what the company and brand stand for and whether they
can get an incentive or reward for its trial or usage.
• They can contribute to brand equity by establishing the
brand in memory and creating a brand image-as well as
drive sales and even affect shareholder values.
Marketing Communication Mix
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Advertising: It is an indirect, paid method used by the firms to inform the customers about their
goods and services via television, radio, print media, online websites etc. Advertising is one of the
most widely used methods of communication mix wherein the complete information about the
firm’s product and services can be communicated easily with the huge target audience coverage.
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Sales Promotion: The sales promotion includes the several short-term incentives to persuade the
customers to initiate the purchase of the goods and services. This promotion technique not only
helps in retaining the existing customers but also attract the new ones with the additional benefits.
Rebates, discounts, paybacks, Buy- one –get- one free scheme, coupons, etc. are some of the sales
promotion tools.
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Events and Experiences: Several companies sponsor the events such as sports, entertainment, nonprofit or community events with the intention to reinforce their brand in the minds of the
customers and create a long term association with them. The name of the firm sponsoring the
event can be seen on the playground boundaries, player’s jerseys, trophies, awards in the
entertainment shows, hoardings on stage, etc.
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Public Relations and Publicity: The companies perform several social activities with a view to
creating their positive brand image in the market. The activities that companies are undertaking
such as, constructing the public conveniences, donating some portion of their purchase to the child
education, organizing the blood donation camps, planting trees, etc. are some of the common
moves of enhancing the Public Relations.
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Direct Marketing: With the intent of technology, the companies make use of emails, fax, mobile
phones, to communicate directly with the prospective customers without involving any third party
in between.
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Interactive Marketing: Interactive Marketing has recently gained popularity as a marketing
communication tool, wherein the customers can interact with the firms online and can get their
queries resolved online. Amazon is one of the best examples of interactive marketing wherein the
customers make their choice and can see what they have chosen or ordered in the recent past.
Also, Several websites offer the platform to the customers wherein they ask questions and get the
answers online such as answer.com.
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Word-of- Mouth Marketing: It is one of the most widely practiced method of communication tool
wherein customer share their experiences with their peers and friends about the goods and
services they bought recently. This method is very crucial for the firms because the image of the
brand depends on what customer feels about the brand and what message he convey to others.
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Personal Selling: This is the traditional method of marketing communication wherein the salesmen
approach the prospective customers directly and inform them about the goods and services they
are dealing in. It is considered as one of the most reliable modes of communication because it is
done directly either orally, i.e., face to face or in writing via emails or text messages.
Thus, marketing Communication mix refers to the different tools that a firm can adopt to inform,
persuade, and remind the customer about the product and services it sells.
Developing & Managing Marketing Communications
Common Communication Platforms
Advertising
Sales Promotion
 Print and
 Contests, games
broadcast ads
 Packaging outer
and inserts
 Brochures
 Posters & leaflets
 Billboards
 Display signs
 POP displays
 Audio visual
material
 Logos
 Premiums and gifts
 Sampling
 Trade fairs
 Exhibits
 Demonstrations
 Coupons
 Rebates
 Low interest
financing
 Entertainment
Events/
Experience
s
 Sports
 Festivals
 Arts
 Causes
 Factory
tours
Public
Relations
Direct
Marketing
 Seminars
 Annual
reports
 Charitable
donations
 Publications
 Company
magazine
 Catalogs
 Mailings
 Tele-marketing
 E-shopping
 TV shopping
 E-mail
 Voice mail
Personal
Selling
 Sales
presentations
 Sales meetings
 Samples
 Trade fairs
 Incentive
programs
Marketing communication offer solutions to the following questions:
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Why shall the product be used?
How can the product be used?
Who can use the product?
Where can the product be used? And
When can the product be used?
Marketing communication includes Advertising, Sales Promotion, Events and
Experiences (sponsorship), Public Relations and Publicity, Direct Marketing,
Interactive Marketing, Word-of-Mouth Marketing, Personal Selling. These
tools of communication are collectively called as Marketing Communication
Mix.
• Levi Strauss & Co
Levi’s went back to their roots to create an effective, nostalgic
integrated campaign.
Their “Ready to Work” campaign reminded people that before
Levi’s became fashionable, it was, and still is, the #1 industrial
jeans brand.
The campaign’s multimedia focused around an industrial, allAmerican steel town in Pennsylvania. The imagery was a mix of
masculinity, classic industry, and the new faces of Levi’s
• Coca Cola
Coca Cola’s viral “Share a Coke” campaign is one of the most
recognizable and effective integrated marketing campaigns to date.
The brand used their clever campaign hashtag, #shareacoke, across all
social media channels and published effective videos that transformed
the phrase, into an all inclusive experience which highlighted a sense of
pride and sense of personal ownership.
Importance of advertising to Society
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1. Helpful in Generating More Employment:
Advertising is instrumental in generating more employment opportunities
and creating diverse kinds of jobs. It provides jobs to artists, screen printers,
block-makers, script-writers, painter, etc. Today, advertising has become a
profession. Some companies do only advertising job.
2. Helpful in Improving the Standard of Living:
Through the medium of advertising people get information regarding new
products. As people use these new and latest goods, their standard of living
gets a boost. Advertising is helpful in providing employment and increasing
income of the people. Both have a positive effect on their standard of living.
3. Helpful in Survival of Communication Media:
The main communication media are Newspapers, Magazines, T.V., Radio, etc.
Major source of their income is advertising. If these media of
communication do not get support of revenue from advertising, they cannot
survive for long. These media of communication keep the society well
informed. Their existence is of utmost important and they can survive only
by advertising.
• 4. Helpful in Creating Healthy Competition:
When a company gets its product advertised, it seeks to improve its
quality and lower its price. It is their endeavour to improve their
own product rather than finding fault with the product of their
rivals. In this way a healthy competition prevails in the market and
the entire society stands to gain from it.
• 5. Helpful in the Economic Development of the Country:
Today, the effect of advertising is no longer confined to the four
walls of the country, rather it has crossed the national boundaries.
Through the medium of satellite, domestic advertising messages
can be transmitted to the rest of the world. As a result, exportpotentials of the country get a big boost. Foreign exchange capacity
of the country increases and new industries develop. Thus,
advertising proves helpful in the economic development of the
country
Importance of advertising to
Consumers
• (1) The manufacturer is compelled to maintain the quality of the goods
advertised. Money spent on advertising being an investment the manufacturer naturally expects returns on such investment. This interest will be
forthcoming as long as the manufacturer maintains the quality and there by
the reputation of the goods so advertised. As soon as the quality of the
article drops the sale of the article will also decline.
• (2) Well-advertised goods are generally better in quality thus justifying
advertising although it cannot be denied that certain firms may advertise
worthless goods. In the latter case, however, the advertising expense will be
wasted in the long run.
• (3) Advertising also acts as an information service and educates the consumer. It enables him to know exactly what he wants and where to get it.
Advertising thus makes it possible for enjoyment of new amenities and
make the life of the consumer easier, more comfortable and pleasant.
• (4) Advertising stimulates production and reduces the cost per unit.
This reduction in the cost is generally passed on to the consumer
and that is why price of well-advertised goods are found to be
generally lower than other goods of the same quality which are not
so well advertised.
• (5) Advertising also makes it possible to sell direct to the consumer
by Mail Order Business. Thus, consumers in the out-of-the way
areas can also enjoy the comforts and luxuries available only in the
cities or towns. In this way advertising improves social welfare.
• (6) As manufacturers control the price of well-advertised goods
price- cutting is not available to the retailers and the shopkeeper
tries to attract customers by giving better and more satisfactory
service. This also is an additional benefit to the consumer brought
about by advertising.
Developing & Managing Marketing Communications
The Communication Process Models
• The following models are useful to understand fundamental
elements of effective communications:
1. Macro-model and
2. Micro-models.
• Macro-model has nine elements.
• Two represent major parties in communication – sender and
receiver.
Developing & Managing Marketing Communications
• Two represent major communication tools – message and media.
• Four elements represent major communication functions –
encoding, decoding, response and feedback.
• The ninth element is noise, the random & competing messages
that interfere with intended message.
• The more the sender’s field of experience overlaps with that of
the receiver, the more effective the message is likely to be.
Developing & Managing Marketing Communications
Field of Experience
Sender’s
field
Receiver’s
field
Developing & Managing Marketing Communications
Elements in the Communications Process
Sender
Encoding
Message
Decoding
Media
Noise
Feedback
Response
Receiver
Developing & Managing Marketing Communications
• During the communication process, following processes may be
operating:
 Selective attention,
 Selective distortion and
 Selective retention.
• Advertisers go to great lengths to gain consumers’ attention.
• Receivers will hear what fits into their belief systems. In long term
memory, consumers retain only a small fraction of the messages
that reach them.
Developing & Managing Marketing Communications
Micro – Models of consumer responses
• These concentrate on consumers’ specific responses to
communications. There are four classic response hierarchy
models:
 AIDA model,
 Hierarchy-of-effects model,
 Innovation adoption model and
 Communication model.
Developing & Managing Marketing Communications
• All models assume that the buyer passes through cognitive,
affective and behavioral stages. (Learn-feel-do)
• Learn-feel-do sequence is appropriate when consumers have high
involvement with a product category perceived to have high
differentiation. Eg: automobile or house
• Do-feel-learn is relevant when consumers have high involvement
but perceive little differentiation. Eg: airline ticket or computer
• Learn-do-feel is relevant when consumers have low involvement
and perceive little difference in the product category. Eg: salt or
batteries
Developing & Managing Marketing Communications
• Marketers can plan communications better by choosing the right
sequence.
• Assuming high involvement and high perceived differentiation, the
hierarchy of effects model can be illustrated in the context of
marketing communications as follows:
• Awareness: The communicator’s task is to make the target
consumers aware of the object.
• Knowledge: The consumers may be aware but do not have
sufficient information. The company may decide to select
developing brand knowledge as the communication objective.
Developing & Managing Marketing Communications
• Liking: If the consumers view the brand unfavorably based on the
perceptions created due to the problem with message execution,
company needs to revamp its communication strategy.
• Preference: If the consumers do not prefer the product, the
communicator needs to build preference by comparing quality,
value or performance with likely competitors.
• Conviction: The communicator builds conviction by informing that
the product provides best solution to the consumer’ problem.
• Purchase: The communicator must lead consumer to purchase by
offering lower price, premium or product trial.
Advertising Planning Process
• Percentage of Sales Method :
• It is a commonly used method to set advertising budget. In this
method, the amount for advertising is decided on the basis of sales.
Advertising budget is specific per cent of sales. The sales may be
current, or anticipated. Sometimes, the past sales are also used as
the base for deciding on ad budget.
• This method is based on the notion that sales follow advertising
efforts and expenditure. It is assumed that there is positive
correlation between sales and advertising expenditure. This is not
the scientific method to decide on advertising budget.
• Objectives and Task Method
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This is the most appropriate ad budget method for any company. It is a scientific
method to set advertising budget. The method considers company’s own
environment and requirement. Objectives and task method guides the manager to
develop his promotional budget by
 (1) defining specific objectives
 (2) determining the task that must be performed to achieve them and
 (3) estimating the costs of performing the task. The sum of these costs is the
proposed amount for advertising budget.
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The method is based on the relationship between the objectives and the task to
achieve these objectives. The costs of various advertising activities to be
performed to achieve marketing objectives constitute advertising budget.
• Competitive Parity Method
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Competition is one of the powerful factors affecting marketing performance. This
method considers the competitors’ advertising activities and costs for setting
advertising budget. The advertising budget is fixed on the basis of advertising
strategy adopted by the competitors.
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Thus, competitive factor is given more importance in deciding advertising budget.
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It is obvious that a company differs significantly from the competitors in terms of
product characteristics, objectives, sales, financial conditions, management
philosophy, other promotional means and expenses, image and reputation, price,
etc.
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Therefore, it is not advisable to follow the competitors blindly.
Marketing/advertising manager should take competitors’ advertising strategy as
the base, but should not follow as it is.
• Affordable Approach
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This is, in real sense, not a method to set advertising budget. The method is
based on the company’s capacity to spend.
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It is based on the notion that a company should spend on advertising as per its
capacity. Company with a sound financial position spends more on advertising
and vice versa.
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Under this method, budgetary allocation is made only after meeting all the
expenses. Advertising budget is treated as the residual decision.
If fund is available, the company spends; otherwise the company has to
manage without advertising.
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Thus, a company’s capacity to afford is the main criterion.
UNIT - 2
Creative Tactics
• After the creative approach, type of appeal and execution
style have been determined, attention turns to creating the
actual advertisement
• The design and production of advertising messages involve a
number of activities, among them writing copy, developing
illustrations and other visual elements of the ad, and bringing
all of the pieces together to create an effective message
Creative Tactics
For Print Ads
• Main components are headline, the body copy, the visual or
illustrations, and the layout (the way they all fit together)
• The headline and body copy portions of the ad are the
responsibility of the copywriters
• Artists often working under the direction of an art director,
are responsible for the visual presentation
• Art directors also work with the copywriters to develop a
layout of the various components
Print Ad Components
Headline:
Words in the Leading Position of the Ad
Subheads:
Smaller Than the Headline, Larger Than the Copy
Body Copy:
The Main Text Portion of a Print Ad
Visual Elements:
Illustrations Such As Drawings or Photos
Layout:
How Elements Are Blended Into a Finished Ad
Headlines
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‘Headline’ is the words in the leading position of the ad- the words that will be
read first or are positioned to draw the most attention
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Headlines are usually set in larger type and are often set apart from the body copy
or text position of the ad to give them prominence.
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Most advertising people consider the headline the most important part of a print
ad.
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Research has shown that headline is generally the first thing people look at in a
print ad. Only 20% readers go beyond the headline and read the body copy.
Headline must put forth the main theme, appeal or proposition of the ad in a few
words.
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Types of Headlines
Direct
• Straightforward and informative in terms in terms of the
message they are presenting and the target audience they are
directed towards
• Eg: Offering a specific benefit, making a promise or
announcing a reason the reader should be interested in the
product.
Indirect
• Not straightforward but indirect to generate curiosity and lure
readers into the body copy to learn an answer to get an
explanation
Headlines Help Select Good
Prospects
• Subheads : The secondary heads are called subheads which
are usually smaller than the main headline but larger than the
body copy.
• Their content reinforces the headline and advertising theme.
• Body Copy : The main text portion of the print ad is referred
to as the body copy
• While the body copy is usually the heart of the, getting the
target audience to read it if often difficult.
• Visual Elements : The illustration is often a dominant part of a
print ad and plays an important role in determining its
effectiveness
• It must attract attention, communicate an idea or image and
work in synergistic fashion with the headline and body copy to
produce an effective message.
• Layout : A layout is the physical arrangement of the various
parts of the ad
• The layout helps the copywriter determine how much space
he or she has to work with and how much copy should be
written
Print Ad Layout
Format
Arrangement of the elements on the printed
page
Size
Expressed in columns, column inches or portions
of a page
Color
Black & white or two-, three-, or four-color
printing
Printing
White
Space
Marginal and intermediate space that remains
unprinted
5. Creative Tactics
For TV commercials
Video
Audio
• Video : The video elements of a commercial are what is seen
on a TV screen
• A number of visual elements may have to be coordinated to
produce a successful ad.
• Decisions have to be made regarding the product, the
presenter, action sequences, demonstrations and the like as
well as setting the talent or characters who will appear in the
commercial
• Decisions regarding lighting , graphics and color are also to be
taken.
• Audio : Includes voices, music and sound effects
• Voices are used in different ways
• A common method is ‘voiceover’ : message is narrated by an
announcer who is not visible.
• Celebrities also do voiceovers
Common Jingles
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Mc Donalds : I am loving it
Humara Bajaj
Airtel’s Instrumental Ad
Titan’s Music
Media Planning and Strategy
Media
Terminology
Media Planning - A series of decisions involving
the delivery of messages to audiences.
Media Objectives - Goals to be attained by the
media strategy and program.
Media Strategy - Decisions on how the media
objectives can be attained.
Media - The various categories of delivery
systems, including broadcast and print media.
Broadcast Media - Either radio or television
network or local station broadcasts.
Media
Terminology
Print Media - Publications such as
newspapers and magazines.
Media Vehicle - The specific message carrier
Coverage - The potential audience that might
receive the message through the the vehicle.
Reach - The actual number of individual
audience members reached at least once by the
vehicle in a given period of time.
Frequency - The number of times the receiver
is exposed to vehicle in a specific time period.
Problems in Media
Planning
 Lack of information
 Inconsistent terms
 Serious time pressure
 Measurement problems
Developing the Media
Plan
Situation Analysis
Marketing Strategy Plan
Creative Strategy Plan
Setting Media Objectives
Determining Media Strategy
Selecting Broad Media Classes
Selecting Media Within Class
Media Use Decision
— Broadcast
Media Use Decision
— Print
Media Use Decision
— Other Media
Developing the Media
Plan
Analyze the Market
Establish Media Objectives
Develop Media Strategy
Implement Media Strategy
Evaluate Performance
Media Planning Criteria
Considerations
 The media mix
 Target market coverage
 Geographic coverage
 Scheduling
 Reach versus frequency
 Creative aspects and mood
 Flexibility
 Budget considerations
Target Audience Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
Coverage
Exceeding
Market
Three Scheduling Methods
Continuity
Flighting
Pulsing
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Effects of Reach and Frequency
1. One exposure of an ad to a target group within a
purchase cycle has little or no effect in most
circumstances.
2. Since one exposure is usually ineffective, the central goal
of productive media planning should be to enhance
frequency rather than reach.
3. The evidence suggests strongly that an exposure
frequency of two within a purchase cycle is an effective
level.
4. Beyond three exposures within a brand purchase cycle or
over a period of four or even eight weeks, increasing
frequency continues to build advertising effectiveness at
a decreasing rate but with no evidence of decline.
Effects of reach and frequency
5. Although there are general principles with respect
to frequency of exposure and its relationship to
advertising effectiveness, differential effects by
brand are equally important
6. Frequency response principles or generalizations
do not vary by medium.
7. The data strongly suggest that wearout is not a
function of too much frequency. It is more of a
creative or copy problem.
Marketing Factors Important to Determining Frequency
Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Target group
Television Characteristics
Disadvantages
Advantages
 Mass coverage
 High reach
 Impact of sight, sound,
and motion
 High prestige
 Low cost per exposure
 Attention getting
 Favorable image
Low selectivity
Short message life
High absolute cost
High production
costs
 Clutter
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Radio Characteristics
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Advantages
Disadvantages
Local coverage
Low cost
High frequency
Flexible
Low production costs
Well-segmented
audiences
 Audio only
 Clutter
 Low attention
getting
 Fleeting message
Magazines Characteristics
Advantages
Disadvantages
 Segmentation
potential
 Long lead time for ad
placement
 Quality reproduction
 High information
content
 Longevity
 Multiple readers
 Visual only
 Lack of flexibility
Newspapers Characteristics
Advantages
 High coverage
 Low cost
 Short lead time for
placing ads
 Ads can placed in
interest sections
 Timely (current ads)
 Reader controls
exposure
 Can be used for
coupons
Disadvantages
 Short life
 Clutter
 Low attentiongetting capabilities
 Poor reproduction
quality
 Selective reader
exposure
Outdoor Characteristics
Advantages
 Location specific
 High resolution
 Easily noticed
Disadvantages
 Short exposure
time requires short
ad
 Poor image
 Local restrictions
Direct Mail Characteristics
Advantages
 High selectivity
 Reader controls
exposure
 High information
content
 Opportunities for
repeat exposures
Disadvantages
 High cost/contact
 Poor image (junk mail)
 Clutter
Internet / Interactive Media Characteristics
Advantages
 User selects product
information
 User attention and
involvement
 Interactive relationship
 Direct selling potential
 Flexible message
platform
Disadvantages
 Limited creative
capabilities
 Web snarl (crowded
access)
 Technology limitations
 Few valid measurement
techniques
 Limited reach