CHAPTER 3:

ADVERTISING
 Learning outcomes of the chapter

• explain what advertising is

• differentiate between the types of advertising
• apply perceptual space management
• formulate an advertising strategy using the COMPASS
approach
• explain the campaign, creative and executional brief
• describe the elements involved in the creative process
• understand how the advertising budget is set
• evaluate and measure advertising
• understand the role of ethics in advertising and
communication.
 Introduction

• Advertising could form part of IMC.

• People are most aware of advertising as a marketing
communication tool.
• Could be placed on various platforms.
• The following slide provides a comparative overview of
South Africa’s top 20 advertisers during 2015 and 2016.
 Introduction

Course: setting
objectives Legal and
ethical issues
Orientation: relating to
Market analysis advertising

Mapping:
The
brand
COMPASS
positioning and
approach to
message
developing Advertising
management ADVERTISING
an defined
advertising
Plotting: action strategy
plan and Types of
budgeting advertising
Consumer
Alignment: behaviour
channel
strategy
Target The conversion Perceptual
Success: audience process management
evaluation and
measurement
 Advertising defined

“…a compensated type of communiqué that is conveyed by

means of various media from a known source about a
company, a product or a service or an idea and is intended to
motivate the receiver to act favourably.”
 Advertising defined

• Advertising is not free – the source of the advertising has to

pay for it.
• The message carried in the advertising needs to be
conveyed through a medium or channel. This channel is the
media that an organisation chooses to utilise; it can be
through television, radio or online channels – such as social
media – as well as several other channels.
• The source of the message must be known; the receiver
must therefore be able to tell who the advertising message is
from.
• The communication is persuasive in nature, in the sense that
it encourages the receiver to act.
 Types of advertising
Click on the green arrow to see an example
• Institutional advertising Click on the arrow again to hide

• Product advertising

• Retail advertising

• Direct-response advertising

• Business-to-business advertising

• Non-profit advertising

• Public service advertising

• Specialised advertising
Branding concepts
 The consideration of brand
essence in advertising
• Brand essence is the platform that guides the creation of an
organisation’s communication.
• Communication mix = how best the communication techniques
at disposal are utilised to ensure the consumer has a good
understanding of the message.
• For example Apple – ‘think different’ / Volvo – ‘safety’.
• Brand essence is not a tagline nor is it openly stated to the
public.
• It is felt by consumers.
• Advertising takes the essence of the brand and communicates
it to the market in such a way that it inspires them to choose
that product or service over a competitor.
 Consumer behaviour

The decision-making process It is important for marketers

• need recognition to understand thoroughly
• search for information the process of decision
• evaluation of alternatives making by the consumer
and how the marketing
• choice
communication strategy can
• post-purchase evaluation
influence it.
Factors that can influence the decisions
• their beliefs
• attitudes
• the environment and family
• demographics
• psychographics
 Consumer behaviour

Target audience
• who they are (demographics and psychographics)
• where they are (geographics)
• the number – that is, the market size (in numbers or rand
value)
• their purchasing and usage habits
• their expectations
• their knowledge and image perception of competitive
products
• their attitudes to competitive products or services, and their
prices, selling outlets and advertising
• the specific needs of and/or problems facing the target
audience.
 Consumer behaviour

Hierarchy of effects model

Indicates the influence which marketing communication can
have on the consumer’s decision-making process.

• AIDA model (attention, interest, desire and action)

• DAGMAR model (defining advertising goals for measuring
advertising results)
• Lavidge and Steiner model (awareness, knowledge, liking,
preference, conviction, purchase)
• Stimulus-response model (read, believe, remember, action)
• Foote, Cone and Belding (FCB) model (think, feel and do)
• Information-processing model
 Consumer behaviour

• Models provide frameworks of how customers might move

from one stage to another – “laddering” effect.

• Recognition → interest → liking → conviction → action

• Three main groups

• Cognitive
• Affective
• Conative stages

The emphasis and type of communication depends on the

specific behaviour dimension targeted and
communication/advertising objectives.

• The hierarchy of effects is usually used in planning the

advertising strategy and formulating advertising objectives.
 Consumer behaviour

Conversion process

• Most important processes for a marketer to understand.

• Basis for all strategy – affects communication and action
plan.
• Take the consumer from unknown/convert into brand
advocate/loyalist.
• The steps in process allow focus of efforts and
communication to ensure the consumer goes through each
vital step (not losing them along the way).
• Eventually converting the market into a strong and loyal
consumer base.
Click on the green arrow to see a diagram of the conversion process
Click on the arrow again to hide
 Consumer behaviour

Perceptual management
• Perception is reality – it is not necessary for you to have the
best product offering, but rather that people perceive/believe
that you do.
• Perceptual space management helps map the different
perceptions of products or competitors within the
consumer’s mind.
• Allows consumers to map different offerings or determine
which product or service is right for them.

• The blind taste test

• Point of parity
 Advertising strategy

Implementation of advertising needs to be planned to ensure its

effectiveness.
 Advertising strategy
COMPAS

STEP 1 Setting the objectives

Most advertising or
combination objectives
are based on four
areas: to inform, to
persuade, to remind
and to reinforce.
 Advertising strategy
COMPAS

STEP 2 Evaluating the market

• Three main aspects marketers should

evaluate relating the market include:
 environment (macro and micro level)
 consumers (demographic
profiling/psychographic profiling/
insights – and insight mining)
 competition (direct
competitors/indirect
competitors/communication
competitor)
 Advertising strategy
COMPAS

STEP 3 Mapping
Brand and communication architecture and
message management
• Brand architecture
• how all the different components of a
brand fit together.
• how a portfolio of brands is structured
to have a definite identity.
• Briefing the communication agency (campaign
brief/creative brief/executional brief)
• Creative development (creative process/consumer
insight)
 Advertising strategy
COMPAS
Step 3: Mapping

Creative development
 Advertising strategy
COMPAS
Step 3: Mapping
Creative development

Product insight Consumer insight

• product usage • moving from demographics
• competitor landscape to psychographics to change
• category understanding the consumer’s perception or
behaviour.
• consumer connection
• consumer insight builds
• real life
relevancy into the creative
• context platform.
• culture

Once these two elements have been addressed and agreed

upon, the process to determine a creative idea starts.
 Advertising strategy
COMPAS
Examples Step 3: Mapping
Creative development

Click on the numbers to see an example

Click on the number again to hide
 Advertising strategy
COMPAS
Step 3: Mapping

Evaluating the creative idea and execution

• Impact
• Creative platform
• Message
• Brand
• Final check
 Advertising strategy
COMPAS

STEP 4 Plotting

The execution and rollout of the plan

attached to the execution

• Action plan
– when will the creative message be
sent out
• Budget
– Objective-and-task method (zero-
based)
– Percentage-of-sales method
– Competition-matching method
– Arbitration method
 Advertising strategy
COMPAS
STEP 5 Alignment
Development of the channel/media and
rollout plan

• Once drafted, the plan is given to media

specialists to analyse and to draft a media
plan.
• Advertising is the start of the channel plan that allows media
to contribute and give ideas on how to achieve the given
objective.
• Document not set in stone.
• Once the plan has been agreed upon and signed off by all
parties, it becomes actionable.
• It should remain flexible, with the ability to add, remove,
rethink, change and improve.
• After the first five steps in COMPAS process, the plan is
ready for execution.
 Advertising strategy
COMPAS
STEP 6 Success
Measurement and evaluation of the
campaign

• Three principles of communication

tracking:
– Noting
– Likeability
– Recall

The combination of these three elements

determines the success of the campaign.
Tracking and evaluation is used to
improve communication over time
(approximately every six months).
 Legal and ethical issues relating
to advertising

• Advertising must be truthful – no false perceptions.

• Not offensive to the viewer or reader.
• Industry bodies – e.g. Advertising Standards Authority of
South Africa (ASASA).
• Most agencies are members of the ASASA/comply with a
code of ethics and guidelines.
• Provide channel through which consumers can voice their
concerns or questions.
• ASASA provides guidelines for the implementation of
advertising.
 Legal and ethical issues relating to advertising

• Advertising guidelines are specific/relate to categories such

as cosmetics, educational course, financial advertising,
competitions, charitable course, etc. (available on the
ASASA website).
• Some issues are based on commercial moral law (e.g.
gender discrimination, racism, the use of children,
communication, validity of an offer, full disclosure).
• These issues may cause a lot of damage to the brand.
• Many organisations have been negatively impacted because
of their advertising being perceived as offensive (e.g. H&M).
• Ethical issues ensure that consumers receive
communication that is truthful, fair and that is a true
representation of who they are.
• Target market must be at the centre of communication.
 Conclusion
• Advertising could be impactful.
• Ability to reach many consumers.
• Need to be creative to attain and retain the attention of the
consumer.
• COMPAS process is an effective guide through the process of
developing an advertising strategy.
• Consumers are exposed to an overflow of advertising
messages from varying entities.
• Most creative messages will be noticed and responded to.
• An understanding of the consumer is needed in developing
concepts that evoke action.