lecture 1_sem 2

8/12/2019 Lecture 1_sem 2

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Business Communication


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Advertising is non-personal communication that is paid

for by an identified sponsor, and involves either mass

communication via newspapers, radio, TV and othermedia (e.g., billboards, bus stop signage) or direct-to-

consumer communication via direct mail.


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There are 3 basic ways by which companies can add

value to their offerings:

by innovating

by improving quality

by altering consumer perception


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Making the product available only at selected in places

where young adults like to party.

They also make use of consumer educators, who drive

around in a silver, Red Bull off-road vehicle, passing out free

samples who anyone who looks like they need a boost ofenergy.

They sponsor extreme sporting events: snowboarding,

skateboarding, mountain biking.


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Advertising adds value to brands by influencing consumerperception. Effective advertising causes brands to beviewed as more elegant, more stylish, more prestigious,

perhaps superior to competitive offerings, and in general, ofhigher quality.

In the USA advertising is also perceived as an investment.That is why in 2010, just before the 2nd wave of the

economic crisis, US companies invested approximately$250billion on advertising. The biggest advertisingspenders, besides the USA, are Japan, Germany, the UnitedKingdom, France and Canada.


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The advertising processfor a particular brand can be

understood as a development and implementation of an

advertising strategy, which has 4 major activities:

setting the objectives

budgeting, positioning, planning message strategy

developing media strategy

assessing advertising effectiveness.


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The logic and planningbehind the ad

Advertisers develop ads tomeet objectives

Advertisers direct ads toidentified audiences

Advertisers create messagesthat speak to the audiences

concerns Advertisers run ads in the

most effective media

StrategyCreative ideaExecutionMedia


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Strategy

Creative

ideaExecution

Media

The central idea

that grabs the

consumersattention.

Creativity drives

the entire field of

advertising.


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Strategy

Creative

ideaExecution

Media

Effective ads adhere

to the highest

production values in

the industry.

Clients demand the

best production thebudget allows.


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Strategy

Creative idea

ExecutionMedia

Communication

channels that reach a

broad audience.How to deliver the

message is just as

important as comingup with the creative

idea of the message.


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Marketing

Communication

EconomicSocietal

The process abusiness uses to

satisfy consumer

needs by providing

goods and services

Product category

Target market

Marketing mix

Brand


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Marketing

Communication

EconomicSocietal

Can reach a massaudience

Introduces products

Explains importantchanges

Reminds and

reinforces Persuades


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Marketing

Communication

EconomicSocietal

Moves from being

informational to

creating demand

Advertising is an

objective means for

providing price-

value information,thereby creating a

more rational

economy


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Marketing

Communication

EconomicSocietal

Informs consumersabout innovationsand issues

Mirrors fashion anddesign trends

Teaches consumersabout new products

Helps shapeconsumer self-image

Perpetuates self-

expression


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There are 3 major reasons for setting advertising objectives:

1. The process of setting objectives literally forces top

marketing and advertising management to agree on the

course advertising is to take for the following planning

period, as well as the tasks it is intended to accomplish for a

brand.

2. Objective setting guides the budgeting, message creation,

and media selection aspects of advertising strategy.

3. Advertising objectives provide standards against which

results can be measured.


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If too little money is spent on advertising, sales volume

will not be as high as it could be, and profits will bereduced.

Companies set objectives by using judgment,

applying experience with similar situations or using

simple rules of heuristics. Among the heuristics we canmention:percentage-of-sale method, and objective-

and-task method.


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Percentage-of -sale method involves allocating a fixedpercentage of past or anticipated sales revenues to

advertising. For example, a company may allocate 5%

of the next fiscal periods anticipated sales on

advertising. If sales are estimated to $100 million forthe upcoming year, the advertising budget will be

$5million.


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The objective-and-task methodinvolves the following

3 step procedure:

Specifying the objectives that a particular

advertisement or entire ad campaign is intended to

accomplish

Identifying the specific tasks that must be

accomplished in order to reach those objectives Accumulating anticipated costs to achieve the specific

task.

The outcome of this process should be enough to

achieve critical objectives.


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Builds awareness of products and brands

Creates a brand image

Provides product and brand information

Persuades people

Provides incentives to take action

Provides brand reminders

Reinforces past purchases and brand

experiences


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Advertiser(client)

AgencyMedia

Supplier

Audience

Uses advertising tosend out a messageabout its products

Initiates theadvertising effort byidentifying amarketing problem

Approves audience,plan and budget

Hires the advertising

agency


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Advertiser

(client)

AgencyMedia

SupplierAudience

Has strategic and

creative expertise,

media knowledge,workforce talent, and

negotiating abilities

Advertising

department

In-house agency


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Advertiser

(client)

AgencyMedia

SupplierAudience

The channels of

communication that carry

the message to the audience Are also companies or huge

conglomerates

Mass media advertising can

be cost effective because

the costs are spread over

the large number of people

the ad reaches.


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Advertiser

(client)

AgencyMedia

SupplierAudience

Assist advertisers,

agencies, and the

media in creatingand placing the

ads

Vendor servicesare often cheaper

than those in-

house


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Advertiser

(client)

AgencyMedia

SupplierAudience

The desired audience for the

advertising message

Data-gathering technology

improves accuracy ofinformation about customers

Advertisers must recognize

the various target audiencesthey are talking to and know

as much about them as

possible


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Brand advertising

Retail or Local advertising

Direct-Response advertising

Business-to-Business advertising

Institutional advertising

Nonprofit advertising

Public Service advertising


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Brand managers work with the advertising agencies toformulate specific meanings for their brands. This

positioning also establishes how the brand is to be

thought of by members of the target market and how

the brand is to be perceived relative to competitive

brands in the product category.


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Absolut Vodka has built a reputation for beingcosmopolitan, Nike, considered the brand for ser ious

athletes, while Belgian chocolates are quality sweets.


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1. If it creates an impression for a productor brand.

2. If it influences people to respond in

some way.

3. If it separates the product or brand from

the competition in the mind of theconsumer.


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Advertisers use a vast array of techniques to presenttheir brands in the most favorable light and persuade

customers to contemplate purchasing their brands.

Frequently employed techniques include:

Informational ads

(such as automobile ads in the

classified pages of a newspaper)


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Taste the Rainbow (?)

Two for me none for you (?)

Have a break, have a Kit Kat (?)Probably the best beer in the world(?)

Unlike any other (?)


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Im lovin it (?)

Have it your way (?)

Sense and simplicity (?) Ideas for life (?)

Inspire the World, Create the Future

(?)


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Most recommended toothpaste forsensitive teeth (?)

Number 1 recommended by dentists (?)

Three in one protection for your family

(?)


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Hungry? Grab a Snickers (?)

Only smarties have the answer (?)

A Mars a day helps you work, rest and

play (?)

The Ultimate Driving Machine (?)

Great Taste, Zero Sugar (?)


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Humorous executions (e.g. most Budweiser ads; Holiday

Inns advertising campaign with the thirty-somethingslacker who lives at home with his parents and

grandmother).


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Sex appeal (Emporio Armani fragrance ads) and

Celebrity endorsements (e.g. McDonalds

advertisement featuring Kobe Bryant)


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1. I t extends from sound marketing strategy. Advertisingcan be effective only if it is compatible with otherelements of the Integrated Marketing Communication.

2. It takes the consumers view. Consumers buy product

benefits, not attributes. Therefore, advertising must bestated in a way that relates to the consumer needs,wants, and values and not strictly in terms of productcharacteristics

3. I t is persuasive. Persuasion usually occurs when thereis a benefit for the consumer, and not just for themarketer.


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4. I t f inds a unique way to break through competi tive

clutter. Advertisers continuously compete with each

other in order to catch consumers attention. This is not

easy if we take into consideration the massive number

of print advertisements, broadcast commercials, and

other sources of information available daily to

consumers.

Indeed, the situation in television advertising has been

characterized as audiovisual wallpaper, which implies

sarcastically that consumers pay just about as much

attention to commercials as they do to the detail in theirown wallpaper after it has been on the walls for a

certain period of time.


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I t never promises more than it can deliver. This point

speaks for itself, both in terms of ethics and in terms of

smart business sense. Consumers learn quickly when

they have been deceived and resent it.

I t prevents the creative idea from overwhelming the

strategy.The purpose of advertising is to persuade and

influence; the purpose is not to be cute for cutessake

or humorous for humors sake. The ineffective use of

humour results in people remembering the humor but

forgetting the selling message.


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Effective advertising is usually creative. Itdifferentiates itself from the mass of advertisements,

and it is easier to give examples of creative

advertisements than to define them.

1. TheIntel Insideapplication of ingredient branding

whereby this chip manufacturer convinced many

computer purchasers that Intel chips substantially

enhanced computer quality.


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2. Absolut vodkas continuing magazine campaign thatfocuses on this brands hip image by portraying the

brands unique bottle shape in trendy situations.


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3. The milk moustache campaign that associates drinking

milk with a wide variety of interesting and respectable

celebrities.


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Advertising message should be delivered to the right

customers at the right time, and with sufficient

frequency. As a result, advertising messages stand a

chance of being effective only if the media strategy

is effective.

Creative advertisement is more effective when placedin media whose characteristics enhance the value of the

advertising message and reach the customer.


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Besides determining which media to use (television,radio, magazines, etc), the media planner must also

pick the vehicleswithin each medium (e.g., specific

magazines or TV programs), and decide how to allocate

the budget among the various alternatives.

Additional decisions involve determining when to

advertise, choosing specific geographical locations, and

deciding how to distribute the budget over time and

across geographic locations.


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A successful media strategy requires that the targetaudience be clearly pinpointed. Target audiences areusually selected based on:

geographic factors (ads are aimed at people residing in

urban areas), demographic consideration (ads directed to women

between the age of 18 and 49)

product-usage concerns (ads are focused on heavy

product users), lifestyle/psychographic characteristics (ads are directed

to people with active, outdoor lifestyle)


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A second aspect of media strategy is establishing specificobjectives. There are 4 major objectives, fundamental tomedia planning: reach, frequency, continuity, cost. Mediaplanners seek answers to the following types of questions:

What portion of the target audience do we want to see (read,hear) the advertising message?reach

How often should the target audience be exposed to theadvertisement?frequency

When are the best times to reach the target audience?

continuity What is the least expensive way to accomplish the other

objective? - cost


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Advertisers have 4 major mass media from which tochoose: television, radio, magazines and newspapers.

Each medium possesses various strengths and

weaknesses.

Besides these four means of media we should also

mention the Internet, which is used for:

Placing banner advertisement

Posting e-mail messages For conveying company and brand information via the

creation of home pages.


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The Internet is a potentially invaluable advertising

medium for advertisers. Compared to other media, the

Internet is an interactive mediumin that consumers

seek out information and devote their time to a

particular home page, banner ad, or e-mail

advertisement if it offers informational, educational or

recreational value. The Internet may be considered the

Yellow PagesLet your mouse do the walking.


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Expanded view

Integrated

MarketingCommunication

Globalization

Electronic media

are changing the

media landscape

New media are

more personal and

interactive


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Expanded view

Integrated


Globalization

The practice of

unifying all

marketing

communication

tools so they send

a consistent,persuasive

message


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Expanded view

Integrated


Globalization

Increasing

globalization of

marketing programs

Advertisers aremoving into global

markets and agencies

are forming hugemultinational

operations


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THANK YOU

lecture 1_sem 2

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