This document discusses promotion and advertising as elements of the marketing mix. It defines promotion as communication methods used to inform customers about products and services. Promotion includes advertising, public relations, personal selling, sales promotion, and direct marketing. Advertising is any paid, non-personal presentation of ideas, goods or services by an identifiable sponsor. Successful advertising of financial services considers factors like target marketing, making the offering easy for customers, having a unique message, coordinating different media, creating memorable ads, and using direct marketing. Campaigns are planned based on reach, frequency and gross rating points.

1. CHAPTER V
PROMOTION ANDADVERTISING

2. Learning outcome
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On completion of this chapter, you should be ableto:
 Analyse the importance of advertising as an element of the marketingmix
Learning objectives
While working through this chapter, you will learn to:


 Analyse what is meant by promotion and advertising
 Illustrate the difficulties in advertising financial services
 Contrast the range of different approaches to advertising financial services
 Examine how customer behaviour analysis can be used to develop advertising
frameworks
Illustrate how advertising is measured in terms of reach, frequency and gross
rating point
Describe factors which help create successful advertising of financial services

3. 1) Introduction
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The word promotion implies that the seller is doing all
the talking, however in marketing-orientated
organisations this is all about two-way communication,
whereby the buyer responds to the seller's
communication because there is a 'call to action'. The
term 'marketing communications' has become popular.
It could be suggested that without promotion the
other Ps are useless.

4. 2) What are promotion and advertising?
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-Promotion can also be called 'promotional mix' and
consists of many different communication methods to
tell potential customers about the products on offer,
where to find them and at what price.
-Promotion is about telling the customers, brokers,
agents and potential customers about the product or
service we have developed to satisfy their needs and
wants.

5. Promotion has its own system of subdivision, the
promotional mix. In its most basic form, it consists of
the following five elements:
Advertising
Public relations
Personal selling
Sales promotion
Direct marketing
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6. Advertising
-Advertising is 'any paid form of non-personal
presentation and promotion of ideas, goods or services
by an identifiable sponsor'. (American Marketing
Association).
-This is the paid insertion of a message in a medium.
There is therefore no such thing as free advertising:
promotion which is 'free' might be classified as public
relations or word of mouth, but it is not advertising.
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7. Public relations
-Public relations are a planned and sustained set of
communications established to gain and maintain
goodwill and understanding between the
organisation and its markets.
-Public relations are all the activities that create a
positive image of the company and its brands
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8. Personal selling
-Personal selling is the presentation of information about a
product given directly by an individual representing the
provider of the product.
-Probably the most powerful marketing too is a salesperson
(such as a broker, agent or member of staff in the branch)
calling on prospective customers, or talking to those customers
who call in at the branch about the firm's products.
-The main disadvantage here is that it is probably the most
expensive tool, at least in terms of number of contacts made.
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9. Sales promotion
-Sales promotion is a range of techniques designed to
add value and achieve specific sales or marketing
objectives.
-This includes money-off discounts, buy-one-get-one-
free offers, and in fact anything intended to give a short-
term boost to sales.
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10. Direct marketing
-Direct marketing develops a direct relationship with the
customer and has been much improved since the development
of mobile and computer-based communication and data
capture tools such as customer relationship management
(CRM), SMS, call centres, mail order, loyalty cards, Twitter,
YouTube and Facebook.
-It can be defined as 'The planned recording, analysis and
tracking of customer behaviour to develop relational marketing
strategies' (Machattie, 2010).
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11. Word of mouth
-Word of mouth is informal communication between people.
People like to talk about products they have bought and
companies they have dealt with, so marketers try to ensure that
word of mouth is positive rather than negative.
-Positive word of mouth can be very persuasive in influencing
others to buy products from an organisation. However,
negative word of mouth is even more powerful.
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12. 3) Integrated marketing communications
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The promotional mix is similar to the marketing
mix in that one element cannot substitute for
another, and each element acts on the others to
create an overall effect.

13. 4) How advertising campaigns are carried out
Advertising campaigns are designed with reach, frequency and gross
rating point in mind.
Reach
Frequency
Gross rating point
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14. 5) The difficulties with advertising financial services
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Quality
Lack of knowledge by consumers
Lack of emotion for financial services
Lack of visibility
Governed by regulations
Prices not consistent

15. 6) Ways of advertising financial services
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Television
Cinema
Billboards
Press
Web advertising
Radio

16. 7) Measuring the success of advertisements
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Questionnaire-type surveys
In-depth interviews
Focus groups
Sales patterns
Pre-testing
Physiological measures

17. 8) Successful advertising
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Q U E S T I O N
With respect to the two recent advertising slogans
below. Which do you think is the most effective and
why?
Barclays Bank – 'Fluent in finance’
HSBC – 'The world’s local bank'

18. Target marketing
Making it easy for the customer
Being unique
Co-ordinated media
Memorable advertisements
Direct marketing
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