1. Introduction to Advertising & Sales Promotion

2. Bill Bernbach on Persuasion
"The truth isn't the truth until people believe you, and they can't believe you if they don't know what you're saying, and they can't know what you're saying if they don't listen to you, and they won't listen to you if you're not interesting, and you won't be interesting unless you say things imaginatively, originally, freshly”.

3. David Ogilvy on Selling
“In the modern world of business, it is useless to be a creative, original thinker unless you can also sell what you create”.

4. Agenda What is Communication? What is Promotional Mix?
What is Advertising?
Advertising’s Evolution
Roles & Functions
Key Players
Types of Advertising
Characteristics of Effective Advertising
Current Trends
What is Sales Promotion?

5. Definition of Communication
Communication refers to the act, by one or more persons,
of sending and receiving messages that are distorted
by noise, occur within a context, have some effect and provide some opportunity for feedback.

6. Types of communication
Intrapersonal Communication You talk with yourself
Interpersonal Communication You talk with others
Small Group and Organizational Communication You interact with others, solving problems, developing new ideas, and sharing knowledge and experiences
Public Speaking/Communication Through Public Speaking/Communication, others inform and persuade you
Mass Communication Through Mass Communication you are entertained, informed, and persuaded by the mediator

7. Elements of Communication
Effect
Source Encoder
Receiver Decoder
Channels
Source Encoder
Receiver Decoder
Effect
Messages
Noise

8. Communication Context
All communication takes place in a context that has at least 4 dimensions
Physical It is tangible or concrete environment in which communication takes place.
Room,Park etc
Cultural Communicators’ Rules, Norms, Beliefs and attitude
Social-psychological Status relationships among the participants, the roles, the cultural rules of the
society.
Temporal Time of the day as well as time in history when communication takes place

9. Source-Receiver Encoding-Decoding
Sources-Receivers
Each person involved in communication is both a Source (or speaker) and a receiver (or listener)
Source-Receiver Encoding-Decoding
Encoding Act of producing message. Example writing or speaking
Decoding Act of receiving messages. Example reading or listening
Messages
Communications messages take many forms
We send and receive messages through any one or any combination of sensory organs.
Verbal oral or written
Non-verbal other than oral or written, Clothes you wear, the way you talk, shake hands, nod your head,
comb your hair, sit and smile---all send messages.

10. Communication Channel Feedback has 5 dimensions
It is the medium through which the message passes
Vocal Channel Speak and listen
Visual Channel See
Olfactory Channel Smell odors
Tactile Channel Touch
Feedback Messages
Messages sent back to the speaker reacting to what is said.
Verbal and/or non-verbal
Feedback has 5 dimensions
Positive or Negative
Person-focused or Message-focused
Immediate or Delayed
Low Monitoring (spontaneous and honest) or High Monitoring (saddarati bayan)
Supportive or Critical

11. Feedforward Messages Verbal and/or non-verbal
It is information you provide before sending your primary messages revealing
something about the message to come.
Preface of the book
The opening paragraph of a chapter
Movie Previews
Magazine Covers
Introduction in Public speeches
Teaser ads

12. Type of effects Communication Effects
Communication has always some effect on one or more persons involved in the communication act.
Type of effects
Intellectual or Cognitive Effects You may gain knowledge or learn how to analyze, synthesize,
or evaluate something
Affective Effects You may acquire or change your attitudes, beliefs, emotions,
and feelings.
Psychomotor Effects You may learn new bodily movements as well as verbal or
non-verbal behaviors

13. Noise
Noise is a disturbance in communication that distorts the message.
Noise may be
Physical Others talking in the background
Psychological Preconceived ideas
Semantic Misunderstood meanings

14. The purpose of Communication
5 general purposes
To discover
One of the major purposes of communication concerns personal discovery.
Discover yourself
Discover others (interpersonal encounters)
Discover External world
To Relate
One of our strongest motivations is to establish and maintain close relationship with
others.
Make or break Personal relationship
Make or break Social relationship

15. To help
Therapist, counselors, teachers, parents, and friends who often communicate to help
We use this function of communication when:
We constructively criticize
Express empathy
Work with others to solve a problem
Listen attentively and supportively to a public speaker
To Play
We spend a great of our communication behavior on play.
Communication as play includes motives of pleasure, escape and relaxation
We hear comedians and friends largely because it is fun, enjoyable and exciting.
To persuade
The mass media exist largely to persuade you to change your attitudes and behaviors

16. Definition of Marketing
An organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stake holders.

17. What is Marketing Mix?
The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives
The major marketing management decisions can be classified in one of the following four categories:
Product
Price
Place (distribution)
Promotion
These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.

18. The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.
Product
The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.
Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.
Price
Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

19. Place
Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.
Distribution decisions include market coverage, channel member selection, logistics, and levels of service.
Promotion
Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them.

20. 4Ps are marketing tools and communication about these 4Ps i. e
4Ps are marketing tools and communication about these 4Ps i.e. Marketing
communication is called promotion and so advertising is marketing communication
tool.

21. PROMOTION
Communication activities that inform potential consumers about the existence of goods, services, or ideas and persuade them to buy

22. THE BEST BLEND
PROMOTIONAL MIX: The most effective combination, or blend, of the marketing communication channels that a business uses to seen its messages to consumers

23. IMPORTANCE OF PROMOTIONAL MIX
Plays a key role in obtaining and keeping customers
Enables businesses to communicate effectively with consumers
Informs potential consumers about the existence of goods and persuades them to buy

24. Promotion and Promotional Mix
Promotion is persuasive communication
companies rely on promotion to inform people about their products and services
companies use promotional techniques to enhance their public image and reputation and persuade people that their products are valuable
goals of promotional activities is summarized by the phrase AIDA

25. AIDA Attract Attention to product Build Interest in product
Create Desire for product
Ask for Action
Exposure
Awareness
Knowledge
Preference
Trial
Repurchase

26. Product Promotion
businesses use product promotion to convince prospects to select its products or services instead of a competitor’s brands
explains
major features and benefits of the product or service
where it is sold
advertise sales
introduce new offerings

27. product promotion also helps companies foster good relations with existing customers, thereby enhancing their loyalty

28. Institutional Promotion
used to create a favorable image for a business
help the business advocate for change
take a stand on trade or community issues
** do not directly sell a product or service these activities do foster a favorable image for the company

29. Promotional Mix
Advertising Non-personal Presentation by an Identified Sponsor
Personal Selling Personal Presentations by a Firm’s Sales Force
Sales Promotion Short-term Incentives to Encourage Sales
Public Relations Building Good Relations with Various Publics by obtaining Favorable Unpaid Publicity
Direct Marketing Direct Communications With Individuals to obtain an Immediate Response

30. What is Advertising? Latin root AD VERTER To turn towards
Origin
Latin root
AD VERTER
To turn towards
To attract attention

31. Definition
Advertising is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future
This is the traditional definition of advertising commonly followed in academic circles.
Richards, J.I. and C.M. Curran (2002), "Oracles on 'Advertising': Searching for a Definition," Journal of Advertising, 31(2),

32. Elaboration Paid Mediated form of communication Identifiable source
Designed to persuade
The receiver
Take some action, now or in the future
Mediated communication is that which is conveyed to an audience through print, electronic, digital or any other method other than direct person to person contact (so this includes mass media as well as other new digital media/new media and outdoor media)
Identifiable Source - Teasers do not identify the source at the outset, but they are always a part of a larger campaign and thus the source is identifiable at some point in time.
Designed to persuade or influence people – sometimes it just increases awareness or informs – but nevertheless it is strategic communication driven by goal-oriented objectives, i.e. to make the audience take some action (now or in the future)
Receiver is a large audience of potential customers
See. Think. Do as 1.

33. Illustration
Paid
Mediated
Identifiable Source
To persuade
Take action

34. Objectives of Advertising
Provide information What the consumer needs to know
Provide incentives to buy Tell them why
Reminds and Re-enforces Repetition

35. Functions of Advertising
Create awareness of products & brands
Provide product and brand information
Create brand image
Persuade / Convince people
Provide incentives to take action
Provide brand reminders
Reinforce past purchases & brand experiences

36. Key Concepts
Strategy
Methodology of meeting objectives and addressing the market in the most effective manner. Strategy is the logic and
planning that gives the advertisement direction and focus
Creative Idea
Grab your attention and sticks to your memory
Creative Execution
What makes the ad memorable?
Effective & Efficient Media Use
Effective ads are well executed, that means that details such as photography, setting, printing and production values
are all fine-tuned
What & Who
How
When
& Where

37. Advertising Effectiveness
Strategy
Creative Idea
Execution
Media
Sound Strategy + Great Creativity = Effective Advertising

38. Introduction to Advertising

39. Evolution of Advertising
Prehistoric Era
Age of Print
Industrial Revolution & Consumer Society
Modern Advertising Era
Age of Agencies
Creative Era
Accountability Era

40. Timelines Pre-historic Era Age of Print 500 B.C. 3000 B.C. 1472 1622
Political & trade graffiti on Pompeii walls
Pre-historic Era
3000 B.C.
Written Ad offering whole gold coin for runaway slave
1472
1622
1655
1662
Mid 1400s
Printed Handbills
First printed ad in English tacked on London church doors
1st use of the term Advertising
1st print ad in London’s Weekly Relations News
London Gazette offers 1st advertising supplement
1704
1st US newspaper to carry ads
1841
Volney B. Palmer becomes the 1st ad sales agent (Boston)
Age of Print
Age of Print also called the Pre-Industrial Age started off when the Gutenberg Press was invented in the early 1400s in Germany. Before this, reading & writing was not common and most communication was carried out through symbols, drawings or WOM.
The Printing Press was a watershed invention in the history of communication & various media developed & started carrying advertising – starting with handbills, posters, magazines & finally newspapers.
Advertising was mostly classified advertising for various commodities & its purpose was to deliver information
By the mid-1800s newspaper advertising had become very common and Volney Palmer became the first guy to purchase large volumes of ad space in NPs and sell them to advertisers.

41. Industrial Revolution & Consumer Society Modern Advertising Era
Timelines
1864
1880s
1888
1890s
1850s
1st branded items such as Baker’s Chocolate appears in stores
J. Walter Thompson forms JWT (1st account executive)
Printer’s Ink, 1st US publication for advertising profession
John Powers pioneers copywriting; focuses on news
E. E. Calkins & R. Holder develop image copy
Industrial Revolution & Consumer Society s
1903
1908
1912
1900
Studies on the attention-getting & persuasive qualities of advertising
Albert Lasker pioneers ‘Reason-Why’ copy
Start of celebrity endorsement with Pepsi (Barney Oldfield)
1st Ad censor appointed by Scripps-McRoe League of NPs
1st Truth in Advertising Act passed
Modern Advertising Era
Industrial Revolution
The industrial revolution took place in the 1800s when machine replaced animal & a number of social, technological developments took place
Mass production of manufactured goods started & people moved to the cities to work in industries & the need for these goods increased with that.
Transportation networks grew as well and so did the need for effective & efficient communication systems to sell those goods in a dispersed marketplace.
With the rise in supply and demand, ‘brands’ started emerging and ‘consumerism’ grew.
Modern Era:
Advertising industry formally took shape formally and innovations & research started.
Advertisement evolved from being just informative to more reason-based & it became to be defined as “salesmanship in print, driven by reason why.”
As advertising grew, its social roles & effects also increased.
Thus arose the need to self-regulate the industry to avoid dishonesty, excessive puffery & unjustified claims so as to win back their credibility with consumers.

42. Timelines Age of Agencies Creative Era Accountability Era 1920s 1922
1940s-50s
1950s
1917
American Association of Ad Agencies formed
1st ad testimonials by movie stars appear
TV becomes leading advertising medium
1st Radio ad solves radio’s financing needs
Rosser Reeves develops USP concept
Age of Agencies
1960s
D.D. B. ‘Think Small’ campaign for VW / Visa’s ‘We try harder’
Ogilvy develops research-based image advertising & storytelling
Bill Bernbach focuses on art of persuasion
Leo Burnett creates brand icons and inherent drama
Creative Era
Agencies:
Agencies grew in number and started competing on specializations.
Even media options grew, with the first Radio ad being aired in 1922 and TV advertising emerging in the 1940s.
Advertisements starting employing various new techniques such as testimonials to promote the products.
Creative:
Advertising continued to evolve well into the 60s and 70s and a number of new creative practices emerged for brand building in an increasingly crowded market
The 60s was also the time when the big daddies of advertising really defined the future of advertising.
With changing economies & increasing competition, advertising strategies have evolved from product differentiation to unique selling propositions to market segmentation to competitive positioning.
Accountability:
With media proliferation and market fragmentation, emerged the need for accountability.
90s-2000s
2000s
1980s-90s
Mega mergers take place worldwide
IMC, niche marketing, interactive media, mass customization…
Internet is the fastest growing ad medium since TV
Accountability Era

43. Advertising in Pakistan
1947 to 1950s
Few foreign-based agencies
Press only available medium
Stunted growth of commerce & industry
Press ads from 50s
1960s onwards
Radio Pakistan launched commercial services
State-owned PTV launched in Lahore in 1964
1979 PIA Ad
1980s
Strict censor laws on broadcast media
Memorable Pakistani TV Ads

44. Advertising in Pakistan
2000 onwards
PEMRA issued licenses to several satellite channels
Adspend increasing 25% annually (2007)
Consumerism on the rise

45. Roles of Advertising
Marketing
Communication
Economic
Societal

46. Marketing & Communication Role
Marketing Mix
Mass communicate to
to connect buyers
& sellers
Advertising
Personal selling
Sales Promotion
Direct Marketing PR
Collateral
Promotion
List price
Discounts
Allowances
Payment period
Credit terms
Price
Location
Transport
Coverage
Channels
Inventory
Place
Features
Style
Brand name
Packaging
Services
Product
Marketing Mix

47. Economic Role Economy grows  Advertising flourishes
2 perspectives on how advertising creates economic impact
Informational role
Persuasion role

48. Societal Role Adds to our Aesthetic sense New products and information
Helps us create self-image & express ourselves through the things we use/wear
Has both negative & positive effects

49. Inform

50. Persuade through incentive

51. Reinforce / Remind

52. Types of Advertising Type Example Brand Mirinda, Nestle Water
Retail/Local Advertising
Hyperstar, Al-Fatah
Direct-Response
Bestbuy, Real Estate Ads
Business to Business
Medical advertising
Institutional / Corporate
Bank Alfalah, MCB
Non-Profit
Edhi Trust, Colleges
Public Service
Anti-Smoking/Anti drugs
Political
PML-N, Moonis Elahi
Directory
Yellow Pages

53. Key Players Advertiser / Client Advertising Agency Media
Vendors / Suppliers
Regulatory Bodies
Target Audience

54. The Advertiser / Client
Roles:
Identify marketing & communication needs
Initiate advertising effort
Make decisions about target audience, budget, when to advertise
Selects, evaluates pitch & hires agency
Approves advertising plan (strategy, creative, media)

55. Advertisers / Clients Types of Advertisers Government vs. Private
Product vs. Services vs. Ideas
MNC vs. National

56. The Agency Why use agency? Types of agencies:
Strategic & creative expertise
Workforce talent
Media knowledge
Negotiation with media
Types of agencies:
Multinational Vs. National Vs. Regional
Big Vs. Medium Vs. Small
Niche agencies

57. The Agency Agency-Client relationship Advertising department
Liaison role
Ex: Coca-Cola (SOHO Square), Warid (Synergy),
In-house agency
For more control over brand image / quick results
Ex: Waves, fashion brands

58. The Media Channels of Communication / Media Vehicles
Newspaper, magazines, radio, TV station, billboard company, etc.
Media-agency relationship
Planning, buying, negotiating deals
Media mix

59. Vendors Specialized services
Artists, photographers, film directors, printers, production studios, calligraphers, consultants, freelancers, etc.
Example: Jami / Saqib Malik (Film director), Khawar Riaz / Qayyum (Photographer), Khawar Jawad (Composer)

60. Regulatory Bodies
PEMRA
APNS
PBC
PAA

61. Target Audience Target audience:
Purchaser / Buyer / Customer
Consumer / User
Purchase influencers
Ex: Kellog’s target audience is kids and parents
Interactive technology allows customization
Ex: Amazon.com shows you books you would like

62. Awards Effectiveness Awards Creative Awards Media Planning
EFFIE Award / Advertising & Marketing Effectiveness (AME) Award / Institute of Practitioners (IPA) Award
Creative Awards
CLIOS / Cannes Lion Award / The NY Art Director’s Award
Abby Award (India) / Aurora Advertising Awards (Pakistan)
Media Planning
Adweek’s Media Plan of the Year

63. Current Trends in Advertising
New Advertising
Digital Media (Internet, mobile communications, wireless)
Unconventional media & tactics
IMC Approach
Unifying marketing communications
Creates synergy
Globalization
Adaptation vs. standardization debate

64. Back

65. 1959 Pakistani newspaper ads

66. Back

67. Brand ad