Strategic Advertising Management: Chapter 1: What Are Advertising and Promotion?

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Percyauthor
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Strategic Advertising Management

Chapter 1: What are advertising
and promotion?
Textbook
Textbook
• Larry Percy & Richard Rosenbaurm-

Elliott (2016), Strategic Advertising
Management, Oxford Publication, Fourth
Edition, 9780198703655, 2016.
Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

“I’m sure I’m wasting at least
half of my advertising budget.
The trouble is I don’t know
which half!”
John Wanamaker

• What is advertising?
• What are the advantages and disadvantages of advertising?
• Advertising is part of which marketing mix strategy?

Defining Advertising
Advertise - make an announcement in a public

place; describe or present goods publicly with a view
to promoting sales
Advertisement - a public announcement (formerly by

the town-cryer, now usually in
newspapers, on posters, by
television etc.)
Source: New Shorter Oxford English

Dictionary

What is advertising?
• Any paid form of non personal presentation and promotion of ideas,

goods, or services by an identified sponsor.

Importance of advertising
• Procter & Gamble, the world’s largest advertiser, spent $5.2

billion on U.S advertising and $8.5 billion worldwide
• Advertising is used by:
- business firms,
- not-for-profit organizations
- professionals,
- social agencies,
- government…

The main objective of advertising
Establish need for a product category

Example
Advertising strategy: message decisions
Mood or image: This style builds a mood or image around the product or
service, such as beauty, love, or serenity.
23

Types of Advertising
• Brand advertising: type of advertising that aims to create

long-term brand or image and to identify the product
• Retail and local advertising: Type of advertising that

focuses on the retailer who sells products. It encourages
the customer to go somewhere to buy the products.
-Goal: get someone to go to the store
-Create specific image for retail
• Institutional/corporate advertising:
-Focus on corporate identity

-Save the earth (general electric)

Types of Advertising
-Example: general electric
-Example:
-Focus generalidentity
on corporate electric
-Example:
-Focus onadv.
-Advocacy general electric
corporate identity
-Focus
-Advocacy
-Save onadv.
the earth corporate identity
(general electric)
-Advocacy
-Save the earthadv.
(general electric)
-Save the earth (general electric)
• Interactive advertising: uses online or offline interactive

media to communicate with consumers and to promote
products, brands, services
• Public service advertising:

Type of advertising with social objectives. Example: don't
drink and drive
-Special case- tobacco/alcohol companies or governments
• Direct-response advertising: type of advertising to
stimulate sales directly (within the stores)

Advantages of advertising
-can reach audiences and masses of geographically dispersed buyers ,

- consumers tend to view advertised products as more legitimate,
- it allows the company to present its products through the artful use of
visuals, print, sound, and color.
- can be used to build up a long-term image for a product
- advertising can generate quick sales

Disadvantages of advertising
Advantages and Disadvantages of Advertising
Advertising is also very expensive
Advertising is impersonal and cannot be as directly persuasive as can

company salespeople.
can carry on only a one-way communication with the audience

Sequential models of advertising

Players in advertising
Players in Advertising
Advertiser: the person or organization that initiates the advertising process
(the company).
Advertising Agency: A marketing services firm that assists companies in planning,
preparing, implementing, and evaluating all or portions of their advertising
programs.
Media: tools used to store and deliver information or data: TV, Newspapers…
Vendors: consultants and self employed professionals provide a variety of services
likeartists and photographers.
Target Audience: the desired receivers of the advertising message.

Roles of Advertising
• Marketing role: is a process a business uses to satisfy the

consumers’ needs and expectations through products and
services.
• Communication role: Advertising is a form of mass
communication.
• Economic role: Improves standard of living and the economy
by generating material consumption.
• Societal role: informs customers about the new and
improved products, teaches customers how to use these
innovations..

Classifications of Advertising
By target By geographical By medium By purpose

audience area
- Product
Local (Retail) Print - Service
Consumer
Broadcast - Commercial
Regional (electronic) - Non
-Radio commercial
-TV
Out of home Action
National
Direct mail Awareness
International
Business

Objectives of Advertising
A specific communication task to be accomplished with a specific target
audience during a specific period of time.
The overall advertising objectives are communicating customer value and

making sales.

Other specific objectives of
Advertising
Advertising strategy: objectives setting

Typical Advertising Goals
• To build brand image
Leads to top-of-mind/top standard choice
• To inform, persuade
• To support other marketing efforts: promotions, special sales,
promotional campaign of a new product
Encourage action (visit retail shop, access website, send email
or telephone…).
Typical Advertising Goals
Media Types
Link to the
brand's website
47
DAGMAR model of Advertising
• “Defining advertising goals for measuring advertising

results” (Russen Colley).

• Awareness: The consumer must first be aware of a brand or

company
• Comprehension—he or she must have a comprehension of
what the product is and its benefits;
• Conviction—he or she must arrive at the mental disposition
or conviction to buy the brand;
• Action—finally, he or she actually buy that product.

• Awareness: If most of the target audience is uninformed about

a product or service, the communicator’s task is to build
awareness, perhaps just name recognition, with simple messages
repeating the product name. Consumers must become aware of
the brand.
• To create brand knowledge:
• What are the brand’s specific appeals, its benefits?
• In what way is it different than competitor’s brands?
• Who is the target market?

• Comprehension: it aims to let customers understand what the

product will do for them. Advertising that helps a customer
understand the benefits and features of the particular product
offered will increase comprehension about the product.
• a) What is your product about?
• b) What are product’s potential features and benefits of
product?
• c) What will the customer get from the product? And how?

• Conviction: A target audience might prefer a particular product

but not develop a conviction about buying it. The communicator’s
job is to build conviction among the target audience. He has to
convince the customer by telling him the benefits of the
product. After convincing, the next step starts i.e. action, which
is not controlled by the firm. The firm have to depend on the
customer.
• However, the previous actions of the firm will have a major role
to play. If the firm has been able to convince, the customer ad
have answered him satisfactorily and then the firm will
definitely be the winner of the day.

• Action: is not controlled by the firm. Firms have to depend on

the customer. However, the previous actions will have a major
role to play. If the firms have been able to convince, the
customer ad have answered him satisfactorily.

Advertising vs. Promotion
• Advertising and sales promotion are only one part of the

overall marketing mix
• Other key considerations include: product configuration,

pricing structure, and distribution

Advertising vs Promotion
• Advertising is part of the promotion strategy of the firm,

which is promotion is the variable of the Marketing Mix
• Advertising is done to build Brand image
• Sales promotion is used to push short-term Sales
• Advertising has long term effect
• Sales promotion has short term effects.

1-32
Advertising vs Promotion strategy

Personal selling/Adertising/Sales promotion
• What are the main differences between personal selling,

advertising and sales promotion?

1-34
• Personal selling is personal, advertising and sales promotion

are nonpersonal.
• Advertising is impersonal and cannot be as directly
persuasive as can company salespeople and carry on only a
one-way communication with the audience: the consumer
cannot react to give his opinion

1-35
• In personal selling, the audience perceives the message as

being delivered by the organization, whereas in advertising,
the audience typically perceives the medium, not the
organization, as being the source of the message.

1-36
Integrated Marketing Communications
• Integrated Marketing Communications ensures that all

forms of communications and messages are carefully linked
together. IMC means integrating all the promotional tools, so
that they work together in harmony.

1-37
Integrated Marketing Communications
• For example, when a firm introduce its new product, this

firm may use integrated marketing communications.
- Salespeople work on stores to ensure that customers’ special
needs were met.
-Advertising is created to generate awareness in consumers’
minds.
- Coupons are offered to consumers to create interest and
ensure more rapid sales.
- Tests in stores were offered to build excitement and word
of mouth.

1-38
Communication Methods
• Motorola uses the Internet for young customers,

telemarketers for old customers, and a field sales force for
all customers.

1-39
• Advertising uses impersonal mass media such as newspapers

and TV to give information to customers, while sales
promotions offer incentives to customers to purchase
products during a specific period. Salespeople provide paid
personal communication to customers. Communication also
occurs at no cost through word of mouth (communication
among buyers about the selling firm). In case of WOM, the
information is usually perceived as more credible than
information from paid communication sources.

1-40
• When using advertising, Internet sites, and sales

promotions, companies can determine the message’s exact
content and the time of its delivery. They have less control
over the communication delivered by salespeople and have
very little control over the content or timing of publicity and
word-of-mouth communication. Personal selling comes out on
top in flexibility because salespeople can talk with each
customer, discover the customer’s specific needs, and
develop unique presentations for that customer.

1-41
1-42
Advertising Management: Key Questions
• What is my target audience?

• How do they make decisions?
• What should be my brand positioning?
• How do I build brand equity? Companies can create brand
equity for their products by making them memorable, easily
recognizable, and superior in quality and reliability.
• What motivates behaviour?
• How do I best communicate?

How does advertising work?
Someone must:
• have an opportunity to see or hear the message

• pay attention to the message
• understand what is presented
• act upon the message in the desired manner

Basic communication effects
desired from advertising
Category Need
interest in the product category: the buyer's perception of
requiring something (a product or service) to remove or satisfy a
perceived difference between the current motivational state and
the desired motivational state"
Brand Awareness identification of the brand

in enough detail to enable
purchase or use
Brand Attitude what is known or felt about

a brand
Brand Purchase Intention desire to try or use the brand

Brand Attitude Strategies
Based upon two dimensions critical to consumer behaviour:

• the type of purchase decision - is it low or high involvement?
(the customer absolutely wants to buy the product: he is very
interested or not)
• the motivation that drives the decision - is it negative or
positive? (he don’t want to buy the product because of the
negative image he have about the product)

Advertising and Promotion in Social Media
80% of companies say they are planning to include social

media as part of their marketing communication
• Much of the context concerning a brand is user-generated
and not under the control of the firm (it is the customer who
gives opinions on the products on the facebook pages, social
media generates e-wom)
• Social media provide a new way of delivering advertising
and promotion messages

Advertising and promotion on the social
Media

Media Types
Fan page of Coca

Cola on Facebook,
48

• What criticisms of advertising you can
suggest?

Criticism of Advertising
• Advertising creates unnecessary desires

• Advertising is misleading
• Advertising insults our intelligence
• Advertising drives up the cost of products

Advertising terms
• The message theme is an outline of the key idea(s) the
advertising campaign wants to convey to its audience.
• A leverage point is the key element in the advertising that
taps into, or activates, a consumer’s personal value system
(connects to value)
• The appeal is the approach used to design the
advertisement that attracts attention or presents
information to the audience (attract attention)
• The executional framework explains how the message will
be delivered.

Costs of Advertising
Firms spend approximatively 15% in media buy
(advertising agencies), 10% in creative work and
75% in Ad production.

Oscar Mayer advertising Campaign

Unethical advertising

• The reason why this advertisement is unethical is
because baby is associated with cigarettes


because the image in the ad shows violence


because the image in the ad shows discrimination

Greenwashing
• Greenwashing is a form of manipulation that involves

changing the mindset of the public towards an organization
in order to give it a more environment-friendly image.

Greenwashing
McDonald's has rolled out a new green logo in France. But this green
logo does not reflect the reality of things. This firm claims to be a
champion of animal welfare. But the food chain continues to rely on
super fast growing chickens - which even in the best cases live
miserable lives. The foods also are not healthy and cause obesity.

Greenwashing
• This is an advertising of cigarettes that harm

health. The firm claims that these cigarettes are
natural and with menthol.

Convergence
• Reaching consumers with meaningful messages at a reasonable

cost has become more and more difficult.
• Finding a cost-efficient plan for reaching increasingly demanding
consumers is the major challenge of contemporary advertising.
• The forces of convergence dominate every advertising,
promotion, and marketing decision.

Convergence
• Convergence: the combination of various facets of marketing

functions in communication technology to create more
efficient and expanded synergies.
• Coming together or intersecting different components of
some related system
• Convergence has come to refer to three distinct thoughts:
- Technological convergence
- business convergence
- Content convergence

Convergence and the Advertising
Environment
• Technological Convergence:
The use of two or multiple technologies to gain synergies
Here consumers are listening to radio programs over the home
computer or watching movies through a DVD player connected
to the television set.

Environment

Environment
• Business convergence is usually referred to as consolidation.
One of the dominant trends of modern business is the
merging of company after company, including advertising
agencies and media companies. It includes an integrated
effort of multiple advertising agencies for the benefit of a
single company.

Environment
• Content Convergence: The primary expense of most
communication companies that represents an opportunity for
convergence is in the content area. Companies try to stretch
the use of communication content.
• It is used by different companies in the form of clipart,
music to reinforce the firm’s purpose.

Environment
• Each convergence contributes to the number of ways in
which different consumers would receive the advertising
messages. Advertisers must create a strong and attractive
messages to appeal the consumers in different ways

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Strategic Advertising Management

• Larry Percy & Richard Rosenbaurm-

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Advertise - make an announcement in a public

Advertisement - a public announcement (formerly by

Source: New Shorter Oxford English

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Any paid form of non personal presentation and promotion of ideas,

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Procter & Gamble, the world’s largest advertiser, spent $5.2

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Brand advertising: type of advertising that aims to create

• Retail and local advertising: Type of advertising that

-Focus on corporate identity

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Interactive advertising: uses online or offline interactive

• Public service advertising:

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

-can reach audiences and masses of geographically dispersed buyers ,

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Advertising is also very expensive

Advertising is impersonal and cannot be as directly persuasive as can

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Target Audience: the desired receivers of the advertising message.

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Marketing role: is a process a business uses to satisfy the

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

By target By geographical By medium By purpose

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

The overall advertising objectives are communicating customer value and

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• “Defining advertising goals for measuring advertising

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Awareness: The consumer must first be aware of a brand or

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Awareness: If most of the target audience is uninformed about

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Comprehension: it aims to let customers understand what the

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Conviction: A target audience might prefer a particular product

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Action: is not controlled by the firm. Firms have to depend on

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Advertising and sales promotion are only one part of the

• Other key considerations include: product configuration,

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Advertising is part of the promotion strategy of the firm,

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• What are the main differences between personal selling,

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Personal selling is personal, advertising and sales promotion

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• In personal selling, the audience perceives the message as

Percy & Rosenbaum-Elliott: Strategic Advertising Management, 4th

• Integrated Marketing Communications ensures that all