Introduction to Advertising & Sales

Promotion

Bill Bernbach on Persuasion

"The truth isn't the truth until people believe you, and they can't believe you if they don't know what you're saying, and they can't know what you're saying if they don't listen to you, and they won't listen to you if

you're not interesting, and you won't be interesting unless you say things imaginatively, originally, freshly”.

David Ogilvy on Selling

“In the modern world of business, it is useless to be a

creative, original thinker unless you can also sell what you

create”.

Agenda

• What is Communication?• What is Promotional Mix?• What is Advertising?• Advertising’s Evolution• Roles & Functions• Key Players• Types of Advertising• Characteristics of Effective Advertising• Current Trends• What is Sales Promotion?

Definition of Communication

Communication refers to the act, by one or more persons,

of sending and receiving messages that are distorted

by noise, occur within a context, have some effect and provide some

opportunity for feedback.

Types of communication

Intrapersonal Communication You talk with yourself

Interpersonal Communication You talk with others Small Group and Organizational Communication You interact with others, solving problems,

developing new ideas, and sharing knowledge and experiences

Public Speaking/Communication Through Public Speaking/Communication, others inform and persuade you

Mass Communication Through Mass Communication you are entertained, informed, and persuaded by the mediator

Noise

EffectEffectSource

Encoder

Receiver DecoderMessages

Source Encoder

Receiver Decoder

Elements of Communication

Channels

Communication ContextAll communication takes place in a context that has at least 4 dimensions

Physical It is tangible or concrete environment in which communication takes place. Room,Park etc

Cultural Communicators’ Rules, Norms, Beliefs and attitude

Social-psychological Status relationships among the participants, the roles, the cultural rules of the

society.

Temporal Time of the day as well as time in history when communication takes place

Sources-Receivers

Each person involved in communication is both a Source (or speaker) and a receiver (or listener)

Source-Receiver Encoding-Decoding

Encoding Act of producing message. Example writing or speaking

Decoding Act of receiving messages. Example reading or listening

MessagesCommunications messages take many formsWe send and receive messages through any one or any combination of sensory organs.

Verbal oral or writtenNon-verbal other than oral or written, Clothes you wear, the way you talk, shake hands, nod your head,

comb your hair, sit and smile---all send messages.

Communication Channel

It is the medium through which the message passes

Vocal Channel Speak and listenVisual Channel SeeOlfactory Channel Smell odorsTactile Channel Touch

Feedback Messages

Messages sent back to the speaker reacting to what is said.Verbal and/or non-verbal

Feedback has 5 dimensions

Positive or NegativePerson-focused or Message-focused

Immediate or DelayedLow Monitoring (spontaneous and honest) or High Monitoring (saddarati

bayan)Supportive or Critical

Feedforward Messages

Verbal and/or non-verbalIt is information you provide before sending your primary messages revealing something about the message to come.

Preface of the book The opening paragraph of a chapter Movie Previews Magazine Covers Introduction in Public speeches Teaser ads

Communication Effects

Communication has always some effect on one or more persons involved in the communication act.

Type of effectsIntellectual or Cognitive Effects You may gain knowledge or learn how to analyze, synthesize,

or evaluate something

Affective Effects You may acquire or change your attitudes, beliefs, emotions,

and feelings.Psychomotor Effects You may learn new bodily movements as well as verbal or

non-verbal behaviors

Noise

Noise is a disturbance in communication that distorts the message.

Noise may be

Physical Others talking in the backgroundPsychological Preconceived ideasSemantic Misunderstood meanings

The purpose of Communication5 general purposes

To discoverOne of the major purposes of communication concerns personal discovery.

• Discover yourself• Discover others (interpersonal encounters)• Discover External world

To Relate One of our strongest motivations is to establish and maintain close relationship with others.

• Make or break Personal relationship• Make or break Social relationship

To helpTherapist, counselors, teachers, parents, and friends who often communicate to helpWe use this function of communication when:

• We constructively criticize• Express empathy• Work with others to solve a problem• Listen attentively and supportively to a public

speaker

To PlayWe spend a great of our communication behavior on play.Communication as play includes motives of pleasure, escape and relaxationWe hear comedians and friends largely because it is fun, enjoyable and exciting.

To persuadeThe mass media exist largely to persuade you to change your attitudes and behaviors

Definition of Marketing

An organizational function and set of processes for creating, communicating and delivering value to

customers and for managing customer relationship in ways that benefit the organization and its stake

holders.

What is Marketing Mix?The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectivesThe major marketing management decisions can be classified in one of the following four categories:

Product Price Place (distribution) Promotion

These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.

The firm attempts to generate a positive response in the target market by blending these four marketing

mix variables in an optimal manner.

ProductThe product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are

part of the offering.Product decisions include aspects such as function,

appearance, packaging, service, warranty, etc.

PricePricing decisions should take into account profit margins and the probable pricing response of

competitors. Pricing includes not only the list price, but also discounts, financing, and other options such

as leasing.

PlacePlace (or placement) decisions are those associated

with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical,

and facilitating functions.Distribution decisions include market coverage,

channel member selection, logistics, and levels of service.

PromotionPromotion decisions are those related to

communicating and selling to potential consumers. Since these costs can be large in proportion to the

product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth

the cost of acquiring them.

4Ps are marketing tools and communication about these 4Ps i.e.

Marketing communication is called promotion and so advertising is marketing communication

tool.

Communication activities that inform potential consumers about the

existence of goods, services, or ideas and persuade them to buy

PROMOTION

• PROMOTIONAL MIX: The most effective combination, or blend, of the marketing communication channels that a business uses to seen its messages to consumers

THE BEST BLEND

• Plays a key role in obtaining and keeping customers

• Enables businesses to communicate effectively with consumers

• Informs potential consumers about the existence of goods and persuades them to buy

IMPORTANCE OF PROMOTIONAL MIX

Promotion and Promotional Mix

• Promotion is persuasive communication– companies rely on promotion to inform

people about their products and services– companies use promotional techniques to

enhance their public image and reputation and persuade people that their products are valuable

– goals of promotional activities is summarized by the phrase AIDA

AIDA

• Attract Attention to product• Build Interest in product

• Create Desire for product• Ask for Action

• Exposure• Awareness• Knowledge• Preference• Trial• Repurchase

Product Promotion

• businesses use product promotion to convince prospects to select its products or services instead of a competitor’s brands

• explains – major features and benefits of the

product or service – where it is sold– advertise sales– introduce new offerings

• product promotion also helps companies foster good relations with existing customers, thereby enhancing their loyalty

Institutional Promotion

• used to create a favorable image for a business

• help the business advocate for change

• take a stand on trade or community issues

** do not directly sell a product or service these activities do foster a favorable image for the company

Promotional Mix

Advertising Non-personal Presentation by an Identified Sponsor

Personal Selling Personal Presentations by a Firm’s Sales Force

Sales Promotion Short-term Incentives to Encourage Sales

Public Relations Building Good Relations with Various Publics by obtaining Favorable Unpaid Publicity

Direct Marketing Direct Communications With Individuals to obtain an Immediate Response

What is Advertising?

Origin

• Latin root AD VERTER

• To turn towards• To attract attention

Definition

Advertising is a paid, mediated form of communication from an identifiable source, designed to persuade the

receiver to take some action, now or in the future

Elaboration

• Paid• Mediated form of communication• Identifiable source• Designed to persuade• The receiver• Take some action, now or in the

future

Illustration

Paid

Mediated

Identifiable Source

To persuade

Take action

Objectives of Advertising

• Provide information What the consumer needs to know

• Provide incentives to buy Tell them why

• Reminds and Re-enforces Repetition

Functions of Advertising• Create awareness of products & brands

• Provide product and brand information

• Create brand image

• Persuade / Convince people

• Provide incentives to take action

• Provide brand reminders

• Reinforce past purchases & brand experiences

Key Concepts• Strategy

Methodology of meeting objectives and addressing the market in the most effective manner. Strategy is the logic and

planning that gives the advertisement direction and focus

• Creative IdeaGrab your attention and sticks to your memory

• Creative ExecutionWhat makes the ad memorable?

• Effective & Efficient Media UseEffective ads are well executed, that means that details such as

photography, setting, printing and production values are all fine-tuned

How

What & Who

When

& Where

Advertising Effectiveness

Sound Strategy + Great Creativity = Effective Advertising

Strategy

Creative Idea

Execution

Media

Introduction to Advertising

Evolution of Advertising

• Prehistoric Era1.Age of Print 2.Industrial Revolution & Consumer

Society3.Modern Advertising Era4.Age of Agencies5.Creative Era6.Accountability Era

Timelines

1472 1622 1655 1662Mid 1400s

Printed Handbills First printed ad in English tacked

on London church doors

1st use of the term Advertising

1st print ad in London’s Weekly Relations News

London Gazette offers 1st

advertising supplement

1704

1st US newspaper to

carry ads

1841

Volney B. Palmer becomes the 1st ad sales agent

(Boston)

Age of Print

500 B.C.

Political & trade graffiti on

Pompeii walls

Pre-historic Era

3000 B.C.

Written Ad offering whole gold coin for

runaway slave

Timelines

1864 1880s 1888 1890s1850s

1st branded items such as Baker’s

Chocolate appears in stores

J. Walter Thompson forms JWT (1st account

executive)

Printer’s Ink, 1st US publication for advertising

profession

John Powers pioneers

copywriting; focuses on news

E. E. Calkins & R. Holder

develop image copy

Industrial Revolution & Consumer Society

1904-40s 1903 1908 19121900

Studies on the attention-getting

& persuasive qualities of advertising

Albert Lasker pioneers

‘Reason-Why’ copy

Start of celebrity endorsement

with Pepsi (Barney Oldfield)

1st Ad censor appointed by

Scripps-McRoe League of NPs

1st Truth in Advertising Act

passed

Modern Advertising Era

Timelines

1920s 1922 1940s-50s 1950s1917

American Association of Ad Agencies formed

1st ad testimonials by

movie stars appear

TV becomes leading

advertising medium

1st Radio ad solves radio’s

financing needs

Rosser Reeves develops USP

concept

Age of Agencies

1960s 1960s 1960s1960s

D.D. B. ‘Think Small’ campaign for VW / Visa’s ‘We try harder’

Ogilvy develops research-based

image advertising & storytelling

Bill Bernbach focuses on art of

persuasion

Leo Burnett creates brand

icons and inherent drama

Creative Era

90s-2000s 2000s1980s-90s

Mega mergers take place worldwide

IMC, niche marketing, interactive

media, mass customization…

Internet is the fastest growing

ad medium since TV

Accountability Era

Advertising in Pakistan• 1947 to 1950s

– Few foreign-based agencies– Press only available medium– Stunted growth of commerce & industry– Press ads from 50s

• 1960s onwards– Radio Pakistan launched commercial services– State-owned PTV launched in Lahore in 1964– 1979 PIA Ad

• 1980s– Strict censor laws on broadcast media– Memorable Pakistani TV Ads

Advertising in Pakistan

• 2000 onwards– PEMRA issued licenses to several

satellite channels– Adspend increasing 25% annually

(2007)– Consumerism on the rise

Roles of Advertising

• Marketing• Communication• Economic• Societal

Marketing & Communication Role

• Marketing Mix

• Mass communicate toto connect buyers & sellers

Advertising

Personal selling

Sales Promotion

Direct Marketing

PR

Collateral

Promotion

List price

Discounts

Allowances

Payment period

Credit terms

Price

Location

Transport

Coverage

Channels

Inventory

Place

Features

Style

Brand name

Packaging

Services

Product

Marketing Mix

Economic Role

• Economy grows Advertising flourishes

• 2 perspectives on how advertising creates economic impact– Informational role– Persuasion role

Societal Role

• Adds to our Aesthetic sense• New products and information• Helps us create self-image & express

ourselves through the things we use/wear– Has both negative & positive effects

Types of Advertising

Type Example

Brand Mirinda, Nestle Water

Retail/Local Advertising Hyperstar, Al-Fatah

Direct-Response Bestbuy, Real Estate Ads

Business to Business Medical advertising

Institutional / Corporate Bank Alfalah, MCB

Non-Profit Edhi Trust, Colleges

Public Service Anti-Smoking/Anti drugs

Political PML-N, Moonis Elahi

Directory Yellow Pages

Key Players

1. Advertiser / Client2. Advertising Agency3. Media4. Vendors / Suppliers5. Regulatory Bodies6. Target Audience

The Advertiser / Client

• Roles:– Identify marketing & communication

needs– Initiate advertising effort– Make decisions about target audience,

budget, when to advertise– Selects, evaluates pitch & hires agency– Approves advertising plan (strategy,

creative, media)

Advertisers / Clients

• Types of Advertisers– Government vs. Private– Product vs. Services vs. Ideas– MNC vs. National

The Agency

• Why use agency?– Strategic & creative expertise– Workforce talent– Media knowledge– Negotiation with media

• Types of agencies:– Multinational Vs. National Vs. Regional– Big Vs. Medium Vs. Small– Niche agencies

The Agency

• Agency-Client relationship– Advertising department

• Liaison role• Ex: Coca-Cola (SOHO Square), Warid

(Synergy),

– In-house agency• For more control over brand image / quick

results• Ex: Waves, fashion brands

The Media

• Channels of Communication / Media Vehicles– Newspaper, magazines, radio, TV

station, billboard company, etc.

• Media-agency relationship– Planning, buying, negotiating deals– Media mix

Vendors

• Specialized services– Artists, photographers, film directors,

printers, production studios, calligraphers, consultants, freelancers, etc.

– Example: Jami / Saqib Malik (Film director), Khawar Riaz / Qayyum (Photographer), Khawar Jawad (Composer)

Regulatory Bodies

• PEMRA• APNS• PBC• PAA

Target Audience

• Target audience:– Purchaser / Buyer / Customer– Consumer / User – Purchase influencers– Ex: Kellog’s target audience is kids and parents

• Interactive technology allows customization– Ex: Amazon.com shows you books you would like

Awards• Effectiveness Awards

– EFFIE Award / Advertising & Marketing Effectiveness (AME) Award / Institute of Practitioners (IPA) Award

• Creative Awards– CLIOS / Cannes Lion Award / The NY Art Director’s Award – Abby Award (India) / Aurora Advertising Awards (Pakistan)

• Media Planning– Adweek’s Media Plan of the Year

Current Trends in Advertising

• New Advertising – Digital Media (Internet, mobile communications, wireless) – Unconventional media & tactics

• IMC Approach– Unifying marketing communications– Creates synergy

• Globalization– Adaptation vs. standardization debate

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1959 Pakistani newspaper ads

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