AN INTRODUCTION TO

ADVERTISING AND PROMOTION

Chapter 1
THE GROWTH OF ADVERTISING AND PROMOTION
Integral part of our social and economic system

Vital Advertising has evolved into a vital communication system for both consumers and
business

Major Role Deliver carefully prepared messages to target audiences

Promotional strategies It’s important role in the marketing programs of companies as they attempt to
communicate with and sell their products to their customers

Chapter 1 Role of Advertising and Promotional In

Marketing
 WHAT IS MARKETING?
Popular conception Other perspective
of Marketing of marketing
1 Involve sales 2 Consisting primarily in retailing
activities

American Marketing Effective

Association marketing
3 The process of planning and
4 Requires that managers
executing the conception, recognize the interdependence
pricing, promotion, and of such activities as sales and
distribution of ideas, goods, and promotion and how they can be
services to create exchanges that combined to develop a
satisfy individual and marketing program
organizational objectives
 MARKETING FOCUS
ON EXCHANGE
Advertising and promotion play an important role in the
exchange process by informing consumers of an
organization’s product or service and convincing them of its
ability to satisfy their needs or wants.
 1
THE MARKETING MIX
Often referred to as the “4Ps,” is a fundamental framework in marketing
that helps businesses develop and implement effective marketing
strategies
INTEGRATED MARKETING THE GROWING IMPORTANCE
COMMUNICATIONS OF INTEGRATED MARKETING
COMMUNICATIONS

marketers built strong barriers becoming increasingly important

around the various marketing and for businesses due to the following
promotional functions and planned, reasons such as clarity and
managed them separately consistency, cost effective, and
better result
ROLE OF PROMOTION
● To communicate with the target
audience about the product or
service being offered.
 THE PROMOTIONAL MIX
1. ADVERTISING

● is defined as any paid form of nonpersonal

communication about an organization,
product, service, or idea by an identified
sponsor.

PAID ASPECT
of this definition reflects the fact that the space or time for an advertising
message generally must be bought.
An exception to this is the public service announcement (PSA), whose
advertising space or time is donated by the media.
 NONPERSONAL
● component means advertising involves
mass media that can transmit message
to a large group of individuals, often at
the same time. (examples: television,
radio, magazines, newspaper)
WHY ADVERTISING IS IMPORTANT PART
IN PROMOTIONAL MIX?

COST - EFFECTIVE CAN BE USED TO

ABILITY TO STRIKE A
METHOD FOR CREATE IMAGES RESPONSIVE CHORD
COMMUNICATING AND SYMBOLIC WITH CONSUMERS
WITH LARGE APPEALS FOR A WHEN OTHER ELEMENTS
OF THE MARKETING
AUDIENCES COMPANY OR PROGRAM HAVE NOT
BRAND BEEN SUCCESSFUL
2. Direct Marketing
Indirect marketing organizations communicate directly with
target customers to generate a response and /or transaction.
Traditionally, direct marketing is not considered an element of
promotional mix, however, because it became such an integral
part of IMC program, it is viewed as a component of
promotional mix.
Direct marketing is much more than direct mail and mail - order
catalogs

DIRECT SELLING NEWSPAPERS AND

MAGAZINES

TELEMARKETING BROCHURES

DIRECT RESPONSE
ADS
Direct marketing tools and techniques are also being used
by companies that distribute their products through
traditional distribution channels or have their own sales
force. Direct marketing plays a big role in the integrated
marketing communications programs of consumer
products companies and business-to-business marketers.
3. SALES PROMOTION
Generally defined as those marketing activities that provide
extra value or incentives to the sales force, distributors, or
the ultimate consumer and can stimulate immediate sales.
 2 Major Categories of Sales Promotion

Consumer - oriented sales promotion

promotion- targeted to the ultimate user of a product or
service and includes coupons, sampling, premiums, rebates,
contests, sweepstakes, and various point-of-purchase
materials.
Trade - oriented sales promotion
Trade-oriented sales promotion- targeted towards marketing intermediaries such as wholesalers, retailers,
distributors. Promotional and merchandising allowances, price deals, sales contests, and trade shows are
some of the promotional tools used to encourage the trade stock and promote a company’s products.
Promotions and Sales
Promotion are different.
Sales promotion uses the marketing tools to educate and
reinforce the company’s brand and value to the customer.
While promotion involves disseminating information about a
product, product line, brand, or company. It is an element of
the marketing mix by which firms communicate with their
customers and includes all the promotional mix elements.
PUBLICITY/ PUBLIC
RELATIONS
 4. PUBLICITY

refers to nonpersonal The company or organization

communications regarding an attempts to get the media to
organization, product, service, or cover or run a favorable story
idea that is not directly paid for or on a product, service, cause or
run under identified sponsorship. event to affect awareness,
knowledge, opinions, and / or
behavior.
Techniques used to gain
publicity include news releases,
press conferences, feature
articles, photographs, films, and
videotapes.
 5. PUBLIC RELATIONS
“the management function which When an organization systematically
evaluates public attitudes, identifies the plans and distributes information in
policies and procedures of an individual an attempt to control and manage
or organization with the public interest,
the nature of the publicity it receives
and executes a program of action to
and its image, it is really engaging in
earn public understanding and
acceptance”. a function known as public relations.

Public relations uses publicity and a

variety of other tools, including
special publications, participation in
community activities, fund-raising,
sponsorship of special events, and
various public affairs activities, to
manage the organization’s image.
 6. PERSONAL SELLING
The final element of an organization’s promotional mix is
personal selling, a form of person-to-person communication
in which a seller attempts to assist and/or persuade
prospective buyers to purchase the company’s product or
service or to act on an idea.

PROMOTIONAL
MANAGEMENT

Involves coordinating the promotional mix elements to

develop a controlled, integrated program of effective
marketing communication.
 THE PROMOTIONAL PROMOTIONAL
REVIEW OF THE
PLANNING PROCESS PROGRAM SITUATION
MARKETING PLAN
Planning plays a ANALYSIS
fundamental role in the Before developing a The overall marketing
development and promotional plan, it is situation analysis, the
implementation of an important to understand promotional program
effective promotional where the company (or the situation analysis will
program. This involves brand) has been, its include both an internal
designing effective method current position in the and an external analysis.
to market products or market, where it intends to
services. go, and how it plans to get
there.
INTEGRATED MARKETING COMMUNICATION
PLANNING MODEL
 INTERNAL
ANALYSIS
The internal analysis assesses relevant areas involving the product/service offering and the
firm itself. The capabilities of the firm and its ability to develop and implement a successful
promotional program, the organization of the promotional department, and the successes
and failures of past programs should be reviewed.
The main objective of this type of analysis is to find out the strengths and weaknesses of
your organization.
EXHIBIT 1-12
 External analysis can help businesses
adapt to change and streamline their
EXTERNAL ANALYSIS current products to fit the needs of their
customer base better.

1 2 3 4

The external analysis focuses on

factors such as characteristics of
the firm’s customers,

The external analysis focuses on

factors such as characteristics of
the firm’s customers,

Market segments, An Important part of Of their characteristics

The external analysis
the external analysis and buying patterns,
focuses on factors positioning
is a detailed their decision
such as strategies, and processes, and factors
consideration of
characteristics of the competitors, as influencing their
customers in terms
firm’s customers, shown in Exhibit 1-12. purchase decisions.
 ANALYSIS OF THE
COMMUNICATION PROCESS
The promotional planner must think about the process consumers will go through in

2
responding to marketing Communications. The response process for products or
services where consumer decision making is characterized by a high level of interest is
often different from that for Low-involvement or routine purchase decisions. These
differences will influence the promotional strategy.
The promotional planner should recognize the different effects various types of
advertising messages might have on consumers and whether they are appropriate for
the product or brand.
An important part of this stage of the promotional planning process is establishing
Communication goals and objectives.
 BUDGET DETERMINATION
What will the promotional
program cost?

Two basic
How will the promotional
questions
program cost?
are asked at
The amount a firm needs to spend on promotion should be
determined by what must be done to accomplish its
this point
communications objectives. In reality, promotional budgets
are often determined using a more simplistic approach,
such as how much money is available or a percentage of a
company's or brand's sales revenue. At this stage, the
budget is often tentative. It may not be finalized until specific
promotional mix strategies are developed.
Developing the Integrated Communications Marketing Program
● generally the most involved and detailed step of the promotional planning
process.
● At this stage of the planning process, decisions have to be made regarding
the role and importance of each element and their coordination with one
another. TWO IMPORTANT ASPECTS OF
ADVERTISING PROGRAM:

MESSAGE MEDIA
DEVELOPMENT STRATEGY

often referred to as creative involves determining which

strategy, involves determining the communications channels will be used to
basic appeal and message the deliver the advertising message to the
advertiser wishes to convey to the target audience.
target audience.
 FINAL STAGE OF THE PROMOTIONAL PLANNING PROCESS

MONITORING EVALUATING CONTROLLING

This final stage of the process is designed to provide

managers with continual feedback concerning the
effectiveness of the promotional program.
The promotional planning process describes the steps
managers follow in planning, implementing, and evaluating
the promotional program.
 SITUATION ANALYSIS

COMPETITION

ORGANIZATIONAL BACKGROUND

CUSTOMER ANALYSIS AND TARGET MARKET

COMMUNICATION OBJECTIVES

INTEGRATED MARKETING COMMUNICATIONS

EXHIBIT 1-13
 EXHIBIT 1-
14
Outdoor advertising is part of
the marketing communications
program for the San Diego Zoo
THANK YOU