Advertising is a paid form of persuasive communication that uses mass and interactive media to
teach broad audiences in order to connect an identified sponsor with buyers (a target audience),
provide information about products (goods, services, and ideas), and interpret the product features
in terms of the customer’s needs and wants.
Advertising basic functions
Identification (Recognition)
- Identifies a product
Information
- Advances in printing technology expanded literacy, making commercial messages
available to the masses
Persuasion
- With widespread marketing, recognizable brand names became more important
Key components:
1. Strategy
The logic behind an advertisement stated in objectives that focus on areas such as sales,
emotional appeal, or brand reputation
2. Message
The concept behind a message and how it is expressed based on consumer insights
3. Media
Targets prospective buyers by matching their profiles to media audiences
4. Evaluation
Based on strategic objectives and professional standards
8 Common types of advertising
1. Brand advertising Focused on long-term brand identity and image
2. Retail or local advertising Focused on selling merchandise in a geographical area
3. Direct-response advertising Tries to stimulate an immediate customer response
4. B2B advertising Sent from one business to another
5. Institutional advertising Establish a corporate identity
6. Non-profit advertising To reach customers, members, volunteers, donors etc.
7. Public service advertising Produced/run for free on behalf of a good cause
8. Specialized advertising Address specific areas (health care, green marketing etc.)
Is advertising the only tool?
Other tools Together these tools are known as marketing communication, or marcom.
Publicity
Public relations
Direct-response
Specialties
What roles does advertising play?
Marketing and communication roles
It transforms a product into a distinctive brand by creating a brand image
Economic and societal roles
Advertising works to create demand for brand and lower prices for consumers
Advertising shapes our self-image and sense of style with things we wear and use
All advertising:
, Demands creative, original messages
Must be strategically sound, well executed
Is delivered through some form of media
“Advertising generates cost efficiencies by increasing demand among large groups of people,
resulting in higher levels of sales and ultimately, lower prices”
Who are the key players?
1. The organization
The message sponsor or advertiser
Likely to have a marketing team that initiates the advertising effort
Hires the advertising agency
2. The agency
Creates, produces, and distributes the messages
Employs experts who are passionate about their work
Can negotiate the best media deals for clients
3. The media
Channels of communication that deliver messages and engage audiences
Many are large media conglomerates such as Time Warner and Viacom
The mass media enable advertisers to reach many people with a single message in a cost-
efficient manner
4. Professional suppliers and consultants
Provide specialized services to advertisers and agencies
Includes artists, writers, photographers, producers, printers, and vendors who supply
user-generated content online
Types of agencies
1. Full services agencies
Encompasses account management, creative services, media planning and account
planning
2. In-house agencies
Is a part of the advertiser’s organization: helps to control costs and maintain control over
brand image
3. Specialized agencies
Specialize in certain functions, audiences, industries or markets
4. Creative boutiques
Small agencies that work only on the creative execution of an idea or product
5. Media-buying services
Specialize in the purchase of media for clients
6. Agency networks and holding companies
Large conglomerations of agencies under a central ownership
One or more agency networks, usually with multiple offices
How are agency jobs organized?
The five main areas:
1. Account management
2. Account planning and research
3. Creative development and research
4. Media research, planning, and buying
5. Internal operations
Account management
This team acts as a liaison between the client and agency
, The account executive interprets the clients’ marketing research, strategy for the agency
Account planning and research
This team gathers market intelligence and acts as the voice of the consumer
Strategic specialists research consumers’ wants, needs and brand relationships
Creative development and production
Includes copywriters, art directors, and producers
Media research, planning, and buying
This department provides research, planning and buying services
Internal operations
Includes traffic, print production, finance, and human resources
How are agencies paid?
From three main sources:
1. Commissions: based on media billings
2. Fees: based on an hourly rate or project. Also, covers travel and various expenses
3. Retainers: A regular amount billed each month, based on projected work
Two recent trends:
1. Based on performance: the agency is paid a percentage of the client’s sales or marketing
budget
2. Value billing: the agency is paid for its creative and strategic ideas rather than for executions
and media placements
Chapter 2 – Brand Communication
Marketing communication involves these tools and functions:
Advertising
Public relations
Sales promotion
Direct response
Events and sponsorships
Point of sale
Digital media
Brand communication’s role in marketing Marketing managers manipulate the marketing mix,
also called the four Ps. (Product, place, pricing, promotion) Japan specific tastes & preferences
A key Principe with brand massages:
“The challenge is to manage all of the messages delivered so that they work together to present the
brand in a coherent and consistent way”
The most common types of markets:
1. Consumer The forgotten continent, Africa’s food market is
2. Business to business likely to be worth more than $1 trillion by 2030
3. Institutional
4. Channel
How does the marketing mix send messages
Product
, Design, performance and quality are the key elements
Communication works to:
- Build/maintain awareness of a brand
- Explain how the new product works
- How it differs from competitors
Pricing
Is based on:
Pricing example:
What the market will bear
The competition
The economic well-being of the consumer Tibetan mastiffs were the must-have status
The relative value of the product symbol for China’s new billionaires with a
The consumer’s ability to gauge that value price of $20,000 per dog
Place (distribution) Place example:
Includes the channels used to make the product
easily accessible to customers Renault INDIA introduces $4700 Kwid.
The distribution channel also sends a message
Product OK, price OK, promotion OK,
The internet raises new distribution questions
related to “clicks or bricks”
distribution in India is a challenge.
Marketers may use a “push” or “pull” strategy
A key principle
“Every part of the marketing mix, not just marketing communication, sends a message”
Nike packaging completely in line with the product image (Nike air, air bag!)
How does the marketing mix send messages?
Added value
Information from the marketing mix and marketing communication can add value to a
product
Added value makes a product more useful or appealing to a consumer or distribution
partners
What is the role of communication in branding?
- There are many different types of tennis shoes, and the advertising challenge is to
create a distinctive brand image for the product
How does a brand acquire meaning?
Meaning-making cues and images are what marketing communication delivers to brands
This perception, called brand meaning, is the one aspect of a brand that can’t be copied
A brand, then, is basically perception loaded with emotions and feelings, what is in the
brain!
How does branding transformation work?
Successful brands:
Are distinctive
create an association
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