The document provides an overview of advertising and marketing communications concepts. It defines key terms like marketing, the marketing mix, communication, advertising, and sales promotion. It describes the different elements of the marketing communications mix like advertising, public relations, personal selling, etc. It also discusses concepts related to advertising like branding, brand awareness, brand attitude, and types of advertising. It outlines the key functions of an advertising agency like account management, creative services, marketing services, and administrative services. It explains how to set an advertising budget.

1. Basics
“Advertising and sales promotion”
By-
Pooja Dhaktod
1

2. 2

3. MARKETING
Marketing is
the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging
offerings
that have value for customers, clients, partners, and society at
large.
Approved October 2007
(AMA, www.marketingpower.com
3

4. COMMUNICATION
1. An act or instance of transmitting;
2. A verbal or written message;
3. A process by which information is exchanged
between individuals through a common system
of symbols, signs, or behavior; also : exchange
of information;
4. A technique for expressing ideas effectively
(as in speech); the technology of the
transmission of information (as by print or
4
telecommunication)

5. MARKETING COMMUNICATION
A process by which product information is transmitted to
the target audience
PRODUCT
INFORMATION
TARGET AUDIENCE
5

6. MARKETING MIX
PRODUCT PLACE
Product Different types of distribution
characteristics, options, channels, density of the
assortment, brand distribution system, trade
name, packaging, relation mix (policy of
quantity, factory margins, terms of delivery,
guarantee etc), merchandising advice
PRICE PROMOTION
List price, usual terms
of payment, usual Advertising
discounts, terms of Sales promotion
credit, long-term saving
campaigns Personal selling
PR 6

7. FUNCTIONS OF ADVERTISING
REMAINDING
INFORMING •Product
•Product Launch Sales Growth phase
phase •Competitive
•Explanations of positioning
Product’s
TARGET
features & benefits AUDIENCE
PURSUADING
•Product Maturity phase
•Applies to consumers’ memory
(brand specific) 7

8. 8

9. INTRODUCTION TO MARKETING
COMMUNICATION CONCEPT
 Modern marketing is management of 4 p’s
 Product, price, place and promotion
 In a sense the entire range of marketing process has a large
content of communication
 Eg- Product communicates a distinctive image as
youthfulness, glamour or prestige
 Dairy milk- lakme- Raymond's
 The brand name communicates the physical and
psychological attributes of the product- Dream flower talc
 The packaging communicates what the manufacturer thinks of
the convenience or beauty
 Price communicates the quality of the product
 There is communication between buyer and seller i.e. the
distribution channel 9

10.  Thus each element of marketing mix helps or hinders
communication and ultimately the sales
 Marketing Communication is thus a broader term than
promotional strategy
 However the most important element of marketing
communication is the planned promotional
communication
10

11. ADVERTISING
Paid form of non
personal communication
about an organization,
product, service or idea by
an identified sponsor.
11

12. ELEMENTS OF MARKETING COMMUNICATIONS
Direct Internet
advertising marketing/
marketing
interactive
Sales Publicity/publ
Personal selling
promotion ic relations

13. DECISIONS ON THE
MARKETING COMMUNICATION MIX
 Personal selling
 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
 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
13

14. 2
ADVERTISING MEDIA
Traditional Electronic
Advertising Media Advertising Media
 Television  Internet
 Radio  Computer modems
 Newspapers  Fax machines
 Magazines
 Books
 Direct mail
 Billboards 14
 Transit cards

15. 2
ADVERTISING
Advantages Disadvantages
15
 Ability to reach large number  Total cost is high
of people
 Cost per contact is low
 Can be micro-targeted

16. SALES PROMOTION
Marketing activities--other than
personal selling, advertising, and
public relations--that stimulate
consumer buying and
dealer effectiveness.
16

17. 2
SALES PROMOTION
Sales Promotion
Targets
End Company
Consumers Employees
Trade Customers
17

18. SALES PROMOTION
Free samples
Contests
Premiums
Trade Shows
Popular Tools
for Vacation Giveaways
Consumer Sales
Promotion Coupons 18

19. MARKETING COMMUNICATION THEORY
SENDER MESSAGE Channel MESSAGE RECIEVER
Barriers decoding
encoding or
Noise
FEEDBACK RESPONSE
19

20. The party sending
SENDER Major parties in communication
the message to another party
The set of messages Major
MESSAGE
the sender sends communication tool
Putting through One of
ENCODING
into symbolic form communication function
CHANNEL Communication channels Major
message is sent through communication tool
The process by which receivers
One of
DECODING assign meaning to the sender’s
communication function
transmitted symbols
RECEIVER The party receiving
Major parties In communication
the message (audience)
Set of reactions following One of
RESPONSE
exposure/reception of message communication function
NOISE (Un)planned static or distortion during process of communication
Part of response One of 20
FEEDBACK
transmitted back to the sender communication function

21. ADVERTISING AND BRANDIND
21

22. BRANDS
 A brand is a name, term, sign, symbol, or design which
is intended to identify the goods or services of one seller
or group of sellers and to differentiate them from those
of competitors.
BRAND AWARENESS
 Brand awareness is a marketing concept that enables
marketers to quantify levels and trends in consumer
knowledge and awareness of a brand's existence. At the
aggregate (brand) level, it refers to the proportion of
consumers who know about the brand
22

23. BRAND ATTITUDE AND FEELING
 Brand attitude is how company portrays the attitude of the brand and
how the consumers think about it
BRAND EQUITY
 The value premium that a company realizes from a product with a
recognizable name as compared to its generic equivalent. Companies
can create brand equity for their products by making them
memorable
BRAND IMAGE
 Brand image is the current view of the customers about a brand. It
can be defined as a unique bundle of associations within the minds
of target customers. It signifies what the brand presently stands for
BRAND PERSONALITY
 A brand personality is something to which the consumer
can relate, and an effective brand will increase its brand
equity by having a consistent set of traits
23

24. CUSTOMER BRAND DECISION MAKING
Problem Recognition
Information Search
Evaluating Alternatives
Feedback
Purchase
Post Purchase Evaluation 24

25. TYPES OF ADVERTISING
 Television
 Infomercials / Direct Marketing
 Radio advertising
 Press advertising
 Online advertising
 Billboard advertising
 In-store advertising
 Covert advertising
 Celebrity endorsements
25

26. ACCOUNT MANAGEMENT –AGENCY
OPERATION
 An advertising agency or ad agency is a service
business dedicated to creating, planning and handling
advertising (and sometimes other forms of promotion)
for its clients. An ad agency is independent from the
client and provides an outside point of view to the effort
of selling the client's products or services. An agency can
also handle overall marketing and branding strategies
and sales promotions for its clients
26

27. ACCOUNT PLANNING OR SERVICING A CLIENT
 There are several functions which an account planner
performs
1. Plans for the objective of the advertisement
2. Evaluates and selects selected feedbacks
3. Making objective clear and implementation
27

28. 2.CREATIVE SERVICES(PRODUCTION AND
DEVELOPMENT)

Creative review
board Clubbed with team
of art directors and
TV producers
Creative director
Copy Writers
Copy Supervisor
Broadcast
Production Art Studio
Department
28

29. 3. MARKETING SERVICES
A.MEDIA PLANNING AND BUYING
 The media department have Research analysts, Planners
and Buyers
 Analysts keep abreast of changes in media audiences,
cost and competitors spending. They test alternative
plans for reaching the clients best prospects
 Planners work closely with other members in
developing media strategy and schedule
 Buyers executes the plan. They look for best rate and
place to buy spot television and radio time and place the
orders.
29

30. B. ACCOUNT PLANNING AND RESEARCH
DEPARTMENT
 Planning- testing product concept-defining market
targets-developing marketing and test marketing and
measuring results are the functions of research
department
 People in research department design the projects,
interpret the data, and present findings
 Account Planning Department act as strategic specialists
who prepare comprehensive details about the consumers
needs and wants
30

31. 4.ADMINISTRATIVE SERVICES
 Finance Department
 PR Department
5. Internal Services
 The department which serves Other operations within the
agency are called internal services department
31

32. ADVERTISING BUDGET
 There are two ways to set a budget for your advertising
campaign:
 You can ask yourself what you can afford to spend,
 The Percent of Sales Method: The advertising campaign
budget is a constant percentage of desired sales. A car
manufacturer may spend less than 1% of sales, while a small
retailer may budget 3 -7% of sales. A jewelry store may
budget 8 -12% of sales, and other companies may budget 20%
or more.
 This method works as long as the advertising campaign
budget is set as a percentage of desired sales. If the budget is
set to actual sales, and sales drop, you do not want to cut your
advertising campaign budget, or you will get caught in a
downward spiral. 32

33.  The Task Objective Method: How much money do
you need to spend to reach the specific goals you have
outlined for the advertising campaign?
 This is especially effective when you are starting out, or
if you are trying to grow rapidly.
 Some advertising campaign strategies call for heavy
spending upfront in order to win long-term customers.
33

34.  The Historical Method: How much did you spend to reach
your sales goals in previous years or periods? You will find
that by tracking your ads, you will know in advance what you
need to do to accomplish your goals.
 Share of Market - Share of Voice: This method links market
share to advertising expenditure. A company with a 20%
market share would spend slightly more than 20% of the total
advertising amount spent in the market for that product or
service. For new companies, expenditures would be 1.5 times
the desired market share until that position is attained. [So if
you want 20% market share, you spend 30% of total
advertising amount in that market until you get it].
34

35.  Competitive Parity: With competitive parity you spend
in equal amounts to your competitors as a percentage of
market share. This is a self-defense method of budgeting
marketing and advertising expenditures
 The Combination Method: The best advertising
campaign budget you can set will be based on some
combination of all of the previous models. You want to
maintain a minimum level of advertising, fulfill specific
goals, maintain your market share, keep up with your
competitors, and compare everything to last year.
35

36. LETS START THE JOURNEY OF CREATIVITY
ANY QUESTIONS???
36