Chapter Number One Introduction Modular: Afjal Hossain, Assistant Professor, Department of Marketing, PSTU Kenneth K. Clow & Donald Baack “Integrated Advertising, Promotions and MCs” 2nd ed.

Why Study Advertising Course? To motivate you to creative To help you to introduce a product To know the role of advertising Grey Advertising, Mediacom, Adcom, Carrot, Clockwork, Interspeed Advertising, Asiatic Marketing Communications Ltd

Definition of Advertising Advertising is non-personal, paid announcements by an identified sponsor. The American Marketing Association defined advertising as: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Used to: Reach large audiences Create brand awareness Help differentiate a brand from competitors

Definition of Advertising cont’d In English … A structured form of communication employing both verbal and nonverbal elements that are composed to fill specific space and time formats typically directed toward groups of people (mass communication). Most is paid for by sponsors. Usually persuasive. Reaches us through a channel of communication.

Definition of Advertising cont’d “The structured and composed of nonpersonal communication, usually paid for products (goods, services, and ideas) by identified sponsors through various media” --- Arens & Schaefer (2007)

Why Advertising? There are several reasons for advertising some of which are as follows: Increasing the sales of the product/service Creating and maintaining a brand identity or brand image. Communicating a change in the existing product line. Introduction of a new product or service. Increasing the buzz-value of the brand or the company.

Types/ Classification of Advertising Marketers can accomplish this (product/ service/ experience based) in three ways: informative advertising: advertising simply provides basic information about a product.

Types/ Classification of Advertising cont’d Marketers can accomplish this in three ways: persuasive advertising: advertising tries to convince customers to purchase a product.

Types/ Classification of Advertising cont’d Marketers can accomplish this in three ways: comparative advertising: advertising that may include direct comparisons between the marketer’s product and its competitor’s offerings.

Types/ Classification of Advertising cont’d Marketers can accomplish advertising (based on media) in several ways: Print Advertising Advertising products via any paper form is called print advertising. Forms of print advertising: Newspapers Magazines Brochures Outdoor

Print Advertising cont’d newspaper/ magazine advertising Advertising products via newspapers or magazines is called newspaper/ magazine advertising. The newspapers/ magazines sell the advertising space according to: the area occupied by the advertisement the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership.

Types/ Classification of Advertising cont’d Outdoor Advertising The most common examples of outdoor advertising are: Banner billboards kiosks events and Tradeshows

Outdoor Advertising cont’d billboards The billboard advertising is used to grab the attention of the passers by.

Outdoor Advertising cont’d Kiosks The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the company’s products.

Outdoor Advertising cont’d Events Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products.

Outdoor Advertising cont’d Tradeshows The company can organize trade fairs, or even exhibitions for advertising their products.

Types/ Classification of Advertising cont’d Broadcast advertising The popular broadcast advertising media are: Flier Television radio and the Internet.

Print Advertising cont’d Fliers

Broadcast Advertising cont’d Television when advertisements have been placed via different satellite channels then it is television advertising. The cost of television advertising often depends on: - the duration of the advertisement - the time of broadcast (prime time/peak time), and - of course the popularity of the television channel.

Broadcast Advertising cont’d radio The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles.

Types/ Classification of Advertising cont’d Covert Advertising – Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) showcased in the entertainment show. Examples: Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report or Cadillac cars in the movie Matrix Reloaded.

Types/ Classification of Advertising cont’d Surrogate Advertising – Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Example: Fosters and Kingfisher beer brands.

Types/ Classification of Advertising cont’d Public Service Advertising – Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes. Example, AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on.

Types/ Classification of Advertising cont’d Celebrity Advertising Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.

Media of Advertising TV Radio Newspapers Magazines Outdoor boards Internet Mail Telephone Movies TV shows Retail Store

Advertising related terms Brand: Is a name, sign, symbol or combination of any of these to differentiate the products from the competitors. Brand Message: all the information and experiences that impact how customers and other stakeholders perceive the brand.

How Advertising Agency Work? The advertising agency convinced to make a purchase of a buyer by following the following steps: Awareness Knowledge Liking Preference Conviction The actual purchase

Advertising Appeals Advertising appeals are used to attract the customers about a product. Seven appeals are used: Fear (advertisers use some fear things to sell a variety of products. Ex: AIDS, , Pepsodent, Life-buoy Hand wash, Sanitation etc.

Advertising Appeals cont’d Humor: This type of appeal uses some fun to sell a product. This technique is used here to watch-laugh-remember. Ex: Magic tooth powder, Aktel easy load, Nokia etc.

Advertising Appeals cont’d Sex (Use some sexual clips to increase regularity. Ex: Lux, Meril, 7-up etc.

Advertising Appeals cont’d Music (use some music or song for getting the attention of listeners. Ex: Tiger, Frooto etc.);

Advertising Appeals cont’d Rational (use more information to sell the product. Ex: IBN Sina, Mina Bazar etc.);

Advertising Appeals cont’d Emotional (use emotional motion to sell the product. Ex: Banglalink, Grameenphone etc.

Advertising Appeals cont’d Scarcity (When there is a limited supply of a product, the value of that product increases. So, this appeal is used in occasionally. Ex: REHAB

The Presentation Plan Approach Presentation Demonstration Negotiation Closing Servicing the Sale

The Presentation Plan Cont’d Approach Initial Contact with the customer/prospect Must completely understand the decision-making process and the roles of each participant

The Presentation Plan Cont’d Prospect’s needs are assessed and matched to the company’s products The style and message of the presentation must be tailored to the audience

The Presentation Plan Cont’d 3. Demonstration Salesperson has the opportunity to tailor the communication effort to the customer Can show how the product can meet the customer’s needs

The Presentation Plan Cont’d 4. Negotiation Ensures that both the customer and the salesperson come away from the presentation winners

The Presentation Plan Cont’d 5. Close Ask for the Sale Must be culturally sensitive

The Presentation Plan Cont’d 6. Servicing the Sale To ensure Customer Satisfaction Implementation process must be outlined Customer service program established