Advertising And Sales Promotion

Defining Advertising
 Advertising

Advertising is the business of forming opinions and preferences.

It is an art of persuasion. A circle of Influence.
 Advertising

• Advertising is a form of communication intended to persuade an audience

(viewers, readers or listeners) to purchase or take some action upon
products, ideals, or services.

• It includes the name of a product or service and how that product or

service could benefit the consumer, to persuade a target market to
purchase or to consume that particular brand.

• These brands are usually paid for or identified through sponsors and
viewed via various media.

Wikipedia definition
 For Next Session

– Movie Trailers, DVDs, Inserts etc.

Read about the roles and functions of

advertising
WBM, Chapter 1.
 Four Key Pillars Of Advertising

• Strategy:
Logic and planning behind the advertisement that gives it direction and reason.

• Creative Idea:
The central idea, which engages, grabs and connects with the audience.

• Creative Execution:
Final form of the communication – the look, feel, colour, words, production etc.

• Media:
The space which carries the communication. TV, Print, OOH, Internet etc.

Wikipedia definition
 Essence Of Advertising

– Movie Trailers, DVDs, Inserts etc.

Creativity
 Environment : Social, Economic, Political, Global, Cultural

Company/Brand

Advertising Public Direct Digital Retail WOM

Relations Marketing

Consumer/Recipient

Environment : Social, Economic, Political, Global, Cultural

 Environment : Social, Economic, Political, Global, Cultural

Company/Brand

One, Single Idea

Advertising Public Direct Digital Retail WOM

Relations Marketing

Consumer/Recipient

Environment : Social, Economic, Political, Global, Cultural

Case HBO Voyeur
Case Obama’s Campaign
Tools Of Integrated
Marketing Communications

Advertising
Public Relations
Word of Mouth
Direct Marketing
Web Marketing
Retail Marketing
Touch Point
CRM
Types Of Advertising
 Types of Advertising

• Brand Advertising
• Retail or Local Advertising
• Direct-Response Advertising
• Institutional Advertising
• Business-to-business Advertising
• Corporate Advertising
• Surrogate Advertising
• Comparative Advertising
• Subliminal Advertising
Who All Are Involved In Communication Process
 Participants in Communication Process

Advertiser Advertising Media Marketing Collateral

(client) Agency Organisations Communication Services
Specialists
Print Production
Direct Marketing TV Production
Sales Promotion Events
Interactive Model Agencies
Public Relations
 Participants in Communication Process

Advertiser Advertising Media Marketing Collateral

(client) Agency Organisations Communication Services
Specialists

Marketing Head

Category Head
(Detergents)

Brand Manager 1 Brand Manager 2

(Ariel) (Tide)

Executives Executives
 Participants in Communication Process

Advertiser Advertising Media Marketing Collateral

Communication
(client) Agency Organisations Specialists Services

Account Mgt. Strategic Planning Creative Production

Vice Presidents Vice President Creative Director

Creative Group
Account Directors Planning Directors
Head

Account
Planners
Managers Art/Copy Team Art/Copy Team

Account Planning
Executives Executives
 Participants in Communication Process

Advertiser Advertising Media Marketing Collateral

Communication
(client) Agency Organisations Specialists Services

Vice President Vice President

Media Planning Media Buying

Planning Directors Media Buyers

Media Planners Scheduling Executives

Media Planning
Executives
 Types Of Agencies

In-house Full Service Creative Media Specialist

Agencies Agencies Boutiques Agencies
 Agency Compensation

Media Fixed Fee Fee-commission Cost Plus Incentive Based

Commission Method Method Agreement Compensation
 How Advertising Works

The Facets Model of Effective Advertising

 Effective Advertising Creates Six Types Of
Consumer Responses

1. Perception
2. Cognitions
3. Affective/Emotion
4. Association
5. Persuasion
6. Behavior
 Effective Advertising Creates Six Types Of
Consumer Responses

1.Perception
Perception is the process by which we receive information though our five senses and assign
meaning to it.
When consumer s respond by selecting messages to which they pay attention, it is called
selective perception

The components of Perception

Exposure: Making contact

Selection and Attention : Creating stopping power
Interest and Relevance : Creating pulling power
Awareness: Making an impression
Recognition : Making a mental note
 Effective Advertising Creates Six Types Of
Consumer Responses

2. Cognition
Cognition refers to how consumers respond to information, learn, and understand
something. It is a rational response to a message.

The components of Cognition

Needs: Matching product features to consumer needs

Information: Facts and features of the product
Learning : Creating understanding
Differentiation : Understanding the difference between competitive products
Recall : Locking information in memory
 Effective Advertising Creates Six Types Of
Consumer Responses

3. The Affective Or Emotional Response

Affective is something that stimulates wants, touches the emotions, and creates feelings

The components of Affective Response

Wants: Creating desires

Emotions: Affecting feelings
Liking: Creating positive feelings for the ad and the brand
Resonance: Appeal to self interest
 Brand World: Finding Brand Differences

• Imagine you are flying over a country. That country is a brand. This exercise is like
writing a summary of that country (brand) . Usual things to write about are

• What is the colour of the country.

• What type of people live there. How do they look. What do they wear. How old
are they. What kind of music they listen to, what do the eat etc.
• The whole idea of doing this is to get a picture canvas of the brand. It also helps
us in establishing how well differentiated one brand is from another.

• Do an exercise with three motorcycle brands – Harley Davidson, Yamaha, And

Royal Enfield
• Do an exercise with Coca-Cola and Pepsi
• Do an exercise with Nike and Puma
Positioning
 The Game Of Perceptions

• Who makes the best athletic footwear? Why?

• What manufacturer makes the best use of technology in their
footwear?
• Whose shoes are the most comfortable?
• Whose shoes are the best value?
• Whose shoes would you not consider wearing?

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 The Game Of Perceptions

• Who makes the best mobile phones?

• What phone manufacturer makes the best use of technology
in their phones?
• Who makes the best business phones?
• Whose phones are the most stylish?
• Whose phones are the best value for money?
• Whose phones would you not consider buying?

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 Positioning

• Positioning has come to mean the process by which marketers try to

create an image or identity in the minds of their target market for
its product, brand, or organization. It is the 'relative competitive
comparison' their product occupies in a given market as perceived by the
target market.

• Although there are different definitions of Positioning, probably the most

common is: "A product's position is how potential buyers see the
product", and is expressed relative to the position of competitors.
 Positioning

• What most will agree on is that Positioning is something

(perception) that happens in the minds of the target market.
It is the aggregate perception the market has of a particular
company, product or service in relation to their perceptions
of the competitors in the same category.
• It will happen whether or not a company's management is
proactive, reactive or passive about the on-going process of
evolving a position. But a company can positively influence
the perceptions through enlightened strategic actions.
 Positioning Concepts/Types Of Positioning

• Functional positions
– Solve problems
– Provide benefits to customers
– Get favorable perception by investors (stock profile) and lenders

• Symbolic positions
– Self-image enhancement
– Ego identification
– Belongingness and social meaningfulness
– Affective fulfillment

• Experiential positions
– Provide sensory stimulation
– Provide cognitive stimulation
 Positioning Statement

• Also referred to as a brand strategy, positioning strategy, or brand positioning

statement, a positioning statement is a description of the core target audience to
whom a brand is directed, and a compelling picture of how the marketer wants
them to view the brand.

• A well-constructed positioning statement is an invaluable means of bringing focus

and clarity to the development of a marketing strategy and tactics. How? Because
every decision that is made regarding the brand is judged by how well it supports
the positioning statement---from the brand name, the product itself, and
packaging, to advertising, promotions, etc.
 Elements Of A Positioning Statement

• Target Audience: the attitudinal and demographic description of the core prospect to
whom the brand is intended to appeal; the group of customers that most closely represents
the brand’s most fervent users.

• Frame Of Reference: the category in which the brand competes; the context that gives
the brand relevance to the customer.

• Benefit/Point of Difference: the most compelling and motivating benefit that the
brand can own in the hearts and minds of its target audience relative to the competition.

• Reason to Believe : the most convincing proof that the brand delivers what it promises.

Template for a Positioning Statement:

For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of
difference) because only (brand name) is reason to believe).
 Effective Positioning Statement

Criteria for Evaluating a Positioning Statement 

•  Is it memorable, motivating and focused to the core prospect?

• Does it provide a clear, distinctive and meaningful picture of the brand that
differentiates it from the competition?
• Can the brand own it?
• Is it credible and believable?
• Does it enable growth?
• Does it serve as a filter for brand decision making?
 Positioning Statement

• Good examples of positioning statements identify the target customers, their

problem, your value proposition, and key competitors. 
• For [target end user]
• Who wants/needs [compelling reason to buy]
• The [product name] is a [product category]
• That provides [key benefit].
• Unlike [main competitor],
• The [product name] [key differentiation]
 Positioning Statement

BMW
• Positioning Statement: - 'BMW offers classy, high-
performance cars for the driving enthusiast, providing a
better driving experience than any of our competitors.‘
• Tag Line: The ultimate driving machine
Positioning Statement
Positioning Statement