Advertising and promotion

2. ADVERTISING AND
PROMOTION MANAGEMENT
[APM]
Birat Shrestha
BBA, September 2021
LACM, KU

3. 1. INTRODUCTION

4. Marketing and
Integrated Marketing Communication [IMC]

5. Marketing
• Market segmentation, targeting, positioning,
differentiation – value proposition – need identification of
targeted segments
• 4Ps or 7Ps – process of product planning, pricing,
placement or distributing, promoting of goods, services,
and ideas [people, process, physical evidence]
• Product/service offering as per the needs of segments
• Customer satisfaction
• Communicating the offerings – Marketing Communication
(Advertising)
• Product/brand positioning in selected segments
• Promoting the product, brand, or positioning

6. Integrated Marketing Communication
• One Voice Communication
– A way to promote a product using various methods
– Reaching the customer from every angle with the same message
– Coordinating between various marketing communication forms
– Creating the maximum communication impact
• Integrated Communication
– Creating a balance between long term brand image & short term sales

7. Marketing Communication Process
[General Communication System]
Source Encoding Message Channel Decoding Receiver
Noise
Noise
Feedback

8. Marketing Communication Process
[General Communication Components]
• Source
– Company
– Brand
– Spokesperson
• Message
– Content
– Creative strategy
– Way of execution
• Channel
– Electronic
• TV, Radio
• Digital
– Print
• Press Ads, magazine, newspapers
– Outdoor
• Hoarding boards, exhibitions, events
• Receiver
– Target audience
• Demography, psychography, social

9. Communication Process in Advertising
(organized form of communication form)
Sponsor
Source
Author
Persona
Message
Literary form
1. Autobiography
2. Narrative
3. Drama
Receiver
Implied consumers
Sponsorial consumers
Actual consumers
Feedback
Stern model of advertising communication process
(Barbara Stern, Rutgers University)
Within the text of advertisement

10. Advertising Communication System
• Source Dimension
– Sponsor – company/brand
– Author – copywriter, art director, creative team of Ad agency
– Persona – Voice over
• Message Dimension
– Autobiographical message – “I tell a story about myself to you”
– Narrative message – third person tells a story about other to an imaginary audience
– Drama message – the characters act out events in front of imagined empathic audience
• Receiver Dimension
– Implied consumers – imagined by the ad creators to be an ideal consumers, addressed
by the persona & are a part of the drama
– Sponsorial consumers – gatekeepers at sponsor company’s office, who decide if this Ad
message is going to go to persuade the real consumers.
– Actual consumers – targeted consumers to whom the message is meant
• Noise - other competing advertising messages
• Feedback & Interactivity– redeemed coupons, inquiries, visits, sales

14. Communication/Promotion Mix
• Advertising
• Sales Promotion
• Personal Selling
• Public Relation
• Publicity

15. Advertising
Advertising is the structured and composed
non-personal communication of information,
usually paid for and usually persuasive in nature,
about products (goods, services, and ideas) by
identified sponsors through various media
• Mass communication
• Impersonal communication
• Sponsor identified
• Paid in by the sponsor
• Informing & aspiring activity
• Media usage

16. Sales Promotion
 Demand stimulating activity
 Short run
 Consumer Promotion (pull)
 Coupons
 Sampling
 Price Packs
 Premiums & Gifts
 Sweepstakes & Contests
 Subsidized financing
 Trade Promotion (push)
 Off invoice
 Gifts & Frees
 Display schemes
 Slotting or facing allowances
 Sales-force Promotion
 Commissions
 Contests

17. Personnel Selling
• Door to door selling
• Touch & feel advantage
• Tailor the communication
message
• Product presentation,
demonstration and trial
• More of convincing and
persuasion

18. Public Relation
• News Stories & Media Editorial content
• Event, Programs & Sports Marketing
– Lux: Lux Miss Nepal; Sprite: Sprite Band Challenge
– Amul: Amul Voice of India; Bourvita: Bournvita Quiz Contest
– Coke: Sports; Shikhar: Music; Surya or Carlsberg: Golf
• Cause Related Marketing
– SCBNL : Seeing is Believing; Lifebuoy: Scholarship
– Rum Pum: Bravery award
• Press Releases/ Press Conferences
• Product Placements/ Product Plugs
– Coke: Call Kantipur; Ray-Ban Sunglasses: Top Gun movie
– Audi Car: Transportation movie; Cars in James Bond movies
– Nerolac, Exxon, Cadbury: Viruddh movie; Coke - Dhoom II

19. Publicity
• A form of Public Relation
• It is not paid for
• News and Articles
• Word-of-Mouth
• Greater credibility

20. Promotion Management
• Advertising
• Advertising and Publicity
• Advertising and Personal Selling
• Advertising and Sales Promotion
• Advertising and Public Relations
• Integrating Marketing Communication
– Advertising
– Sales Promotion
– Personal Selling
– Public Relations
– Publicity

21. Promotion Management
• Direct Marketing
– Database
• Events & Trade Shows
• Package Graphics
• Point Of Sale Materials
– Poster
– Shelf Talker
– Dangler
– Streamer
• Collateral
– Brochure
– Catalogue

22. Advertising as a Communication Tool
• Makes the product known
– Xerox - copier
– Red Label - whiskey
– Honda - bike
• VIPS formula
– VIB (Visual Identity Band)
– Visibility
– Identity
– Promise
– Single-mindedness
Standard Chartered Bank VIB

23. Advertising in a Communication Role
• Simplicity
– Easily understandable
• Words, symbols, graphics, liners
– Singapore girl - Singapore airlines
– Three stripes - Adidas
– Right swoosh - Nike
– Yellow M arches - McDonalds
– The real thing - Coke
– Cowboy - Marlboro
Assignment

24. Classification of Advertising

25. By Target Audience
• Consumer advertising B2C
• Business/Industrial advertising B2B
– Trade Advertising (to obtain greater distributions)
– Professional Advertising (to convince professional
people, to recommend or prescribe a product or a
service, to buy and use particular product or
equipment)
– Agricultural Advertising (agribusiness products
and equipments)

26. By Geographical Area
• Local advertising
• Regional advertising
• National advertising
• International advertising

27. By Medium
• Print media advertising
• Electronic (broadcast) media
advertising
• Outdoor media
• Direct-mail advertising
• Digital/interactive advertising
• Alternative/Ambient Media
– Place media
– Out-of-home (outdoor) media
advertising
– Transportation media advertising

28. By Purpose
• Product advertising
• Corporate or institutional (non-product)
• Commercial advertising
• Social/Non-commercial advertising
• Advocacy advertising
• Action advertising
• Awareness advertising

29. Social Awareness Ad

30. Advocacy Ad

31. Objectives of Advertising as a Marketing Tool
• To inform – communicate information about the
product, its features and its place of sale
• To persuade – induce consumers to try new
products and to suggest reuse
• To remind – increase product use
• To position the brand – identify products and
differentiate them from others
• To build value, brand preference, and loyalty
• To stimulate the distribution of product
• To lower the overall cost of sales

32. Functions of Advertising
• Economic Function
– Demand stimulation
– Creates the customer
– Product sales revenue
– Employment and entrepreneurship creation
– Aspires for better living standard
• Social Function
– Product information
– Product quality promise
– Remind about the product
– Social awareness
• Psychological Function
– Personality and self concept change
– Belief, opinions, perception and attitude change

33. Corporate Advertising
The broad area of non-product
Advertising aimed specifically at
enhancing a company’s image and
increasing lagging awareness.
It is promoting the company’s desired
image
– Public Relations Advertising
– Institutional Advertising
– Corporate Identity Advertising
– Recruitment Advertising
– Advocacy Advertising (to communicate
views on issues that affect businesses) –
Advertorials
Assignment

34. Questions/Answers/Discussions
Thank You/ Best Wishes