Lecture14The promotional mix

& advertising
An outline of models of communication.
Identifying the strengths and weaknesses of
different forms of advertising
Understand how advertising fits into the
marketing mix

The basic marketing mix
Key Promotional
Mix Tools
Publicity

Personal
Selling
Direct
Marketing
Internet
and On-Line
Marketing

Sales
Promotion
Advertising
D Jobber, Principles and Practice of Marketing, 2001 McGraw-Hill 2
Definition of Advertising
Advertising can be defined as any paid
form of non-personal communication
transmitted through a mass medium.

The sponsor should be clearly identified and
the advertisement may relate to an
organisation, product or a service.
6
Developing Advertising Strategy
Identify and understand target audience
Marketing strategy
Define advertising objectives
Set the advertising budget
Message decisions Media decisions
Execute campaign
Evaluate advertising effectiveness
Integrated Marketing
Communications

Choice of promotional blend depends
on:
Resource availability and the cost of
promotional tools
Market size and concentration
Customer information needs
Product characteristics
Push versus pull strategies

4
The Communication
Process
Receiver
Encoded
message
Decoded
message
Transmission Source
Feedback
Noise
Noise
The Strong (1925) theory of communication

Three stages forming a logical flow of events driven by
marketing communications.

Advertising creates initial awareness, stimulates interest,
then desire for the product and then trial of the product.

Attitude and opinion are formed before consumer gets near
the product.
Communications Theory Models
AIDAS

Laveridge & Steiner model
Knowledge/Attitudes/Behaviour
Colleys DAGMAR model
Awareness/comprehension/conviction and
action

Consumer marketing communications
B2B marketing communications
Budgeting Methods
Arbitrary Budgets
Affordable Method
Percentage of
Past
Sales Method
Percentage of
Future
Sales Method
Competitive Parity
Objective and Task
Budgeting
Judgemental
Data-Based
Formulating the Advertising
Message
Message
Who are the target audience?
What you want to say?
Message Formulation

Objectives?
Consistency
Informative,
Persuasive,
Attention grabbing
Themes

Used in broadcast
media print, POS etc.
Standard theme or
various themes

Message Execution

Same across different
markets or varying
Cost Vs effectiveness
Factors influencing media selection
Advertising Media
High Impact
Sound, colour,
motion
Distractions
Expensive
High Reach
Low CPT
Wastage
Large no local stns
High reach
Sound only
Can focus on tgt
Low cost
High Freq
Difficult to make
impact
Selective audiences
Good for reaching
young
Captive audience
Good quality
and impact
Secondary medium
Wide range of
special int mags
Repeat readership
Good for building
familiarity
Readers more
receptive
Print quality impr
Quick and flexible
High Reach
Classified/Display
Local newspapers
useful targeting
Wastage high
Short shelf life
Lower print quality
High Freq
Low Reach
Secondary medium
Can be high impact
Simple messages
only
Awareness/
reinforcement
Captive audiences
Global reach
Low cost
Measurable
Interactive
Flexible
Sponsored
links
Impersonal
Intrusive
The Times (2012)
Business briefing
18 May, 38-9

Sources : Advertising
Statistics Yearbook 2009
Advantages and limitations of TV

Enables sellers to communicate to a broad range of
potentially large audiences.
Has a relatively low cost per thousand viewers.
Reaches a highly undifferentiated audience.
High coverage means high wastage.
Is a low involvement medium.
Amount of time allowed for advertising is usually strictly
controlled.
Advantages and limitations of radio
An important means of broadcast communication for
smaller companies operating within a restricted
geographic area.
Can play a valuable supportive role in extending reach
and increasing frequency.
Offers wide creative and imaginative advertising
possibilities.
Normally offers a low cost per time slot.
Low involvement medium.
Can be difficult to build reach and make an impact.
Advantages and limitations of cinema

Can be used to reach selected audiences.
Captive audiences.
Can obtain greater quality and impact to that of TV due
to size of screen and quality of sound.
Often used as a secondary medium.
Advantages and limitations of magazines

Can be presented and then examined selectively at
readers leisure.
Can be closely targeted to a tightly defined audience.
Reader is more likely to be receptive.
High quality advertising can be produced.
Advantages and limitations of newspapers

Quick and flexible way of reaching large audiences.
Wastage rates can be high.
Have a shorter life span to that of magazines.
Reproduction quality inferior to most magazines.
Summary
Communication is a 2-way process subject to
distraction and noise
Media selection depends upon the target market
and the stage in the buying process
Theoretical models formulate the communication
process
An effective message delivered via an effective
media makes an effective advertisement
Advertising Agencies manage the entire
communications process
Further reading Jobber and Ellis-Chadwick ch
14&15