CHAPTER TWO

ADVERTISING

Learning Objectives
After reading this chapter, you will be able to:
1. Explain the meaning and key aspects of advertising.
2. Describe the types and characteristics of advertising communications.
3. Evaluate the functions of advertising.
4. Discuss the major advantages and disadvantages of advertising.
5. Discuss the major advertising decisions.
6. Assess the role of advertising agencies in firms.

Meaning of Advertising

Kotler and Armstrong (2006) define advertising as any paid form of non-personal presentation
and promotion of ideas, goods or services by an identified sponsor. The American Marketing
Association (1995) defines advertising as any paid form of non-personal communication about
an organization, product, service or idea by an identified sponsor. Assael (1990) defines
advertising as paid, ongoing, non-personal communication from a commercial source such as a
manufacturer or retailer. Several aspects of these definitions should be noted.

 The paid aspect of the definition reflects the fact that the space or time for advertising
message generally must be bought (the exception is where the advertising space or time is
donated by the media).

 The non-personal component shows that advertising involves mass media such as Television,
Radio, and Magazine through which a message can be transmitted to large groups of
individuals often simultaneously. The non-personal nature of advertising means that there is
generally no opportunity for immediate feedback from message recipients. Thus, before the
message is sent, the firm must strive to understand how the audience will interpret and
respond to it.
 The fact that an advertisement can be linked to a sponsor means that one can identify the
company that is advertising. The newspaper and TV firms will usually indicate that the
message is a firm’s feature. This distinguishes ads from publicity where it is impossible to
identify whether the company influenced the publication or airing of the message. According
to Shimp (2003) the identified sponsor could be business firm, non-profit organization and
individuals who hope to inform or persuade members of particular audience.
 Advertising is ongoing. This distinguishes it from sales promotion (e.g. coupons, sweepstakes
and contests, price off deals, bonus packs, sponsorships, exhibitions etc) which is short term
in nature.

Types of Advertising
Most advertising campaigns are designed to influence consumers to buy a particular brand.
According to Assael (1990) the following are the various types of advertising that a marketer can
use.
 Brand advertising is designed to maintain awareness of a brand among consumers and to
increase its market share. Marketers try to increase the share of their brands primarily by
attracting users of competing brands. Such brand advertising tries to stimulate selective
demand (demand for a particular brand e.g. Blue Band, Coke, Dettol etc).

 Product advertising tries to attract new users of a product. The objective is to make industry
pie (share) bigger. Such a strategy attempts to stimulate primary demand (demand for a
general product e.g. aspirin related drugs, margarine, cooking fat, cooking oil, beef, fish etc)
by advertising a product category. This type of advertising emphasizes product benefits.
Firms in the same industry also come together and engage in this type of advertising when
the demand for their general product is affected. In Kenya milk firms through Kenya Dairy
board came together to jointly promote milk as a result of decline in its consumption. The
same case applied to tea, where tea firms came together to promote it as healthy drink. This
was as result of decline in tea consumption because of onslaught of competition from soft
drinks firms’ like Coca Cola which have made many young people to prefer sodas instead of
tea.
 Corporate advertising. Firms frequently advertise their corporate name as well as brands.
According to Henry Assael (1990), there are three types of corporate advertising: patronage,
image and issue advertising. Many firms employ corporate-patronage advertising to
encourage customers to patronize their firms. Jubilee Insurance Company used CEOs from
Farmers Choice and other respected firms to encourage other firms to patronize its insurance
services. Firms often try to establish an identity through corporate image advertising. Bidco
Company, for instance, tries to convey the image of a firm with a wide range of products to
choose from. Corporate issue advertising states a company’s position on an issue of public
importance. Many firms are today engaging in corporate issues such as waste paper
management, Internally Displaced People (IDPs), and peace issues. Through its “Green
Goals 2010,” EABL aims to sensitize customers on the need to conserve the environment. Its
tagline reads, “Reduce-Reuse-Recycle; let’s go green.” The same case applies to YU Mobile
Company with its “eneza electronic top up”. Its tagline is “Go green with eneza electronic
top up, The eco-friendly way to top up your phone without using scratch cards-No Scratch
Cards, No Paper, Saving Trees, Cleaner and Greener Environment” (Daily Nation May 15,
2009).

 Cooperative advertising. Here, manufacturers offer retailers allowances to advertise their

products and permit them to use the retail store name in the ad (Assael, 1990). According to
Shimp (2003) cooperative advertising is an arrangement between a manufacturer and reseller
(either a retailer or an industrial distributor) whereby the manufacturer pays for all or some of
the advertising costs undertaken by the reseller on behalf of the manufacturer’s products.
Cooperative advertising helps manufacturers because it is a means to get retailers to stock
and more aggressively sell their products. It is a ‘push’ strategy. It is important to
manufacturers as a source of local advertising to balance their national advertising
campaigns. It also enables retailers to afford advertising in newspapers, radio, TV and other
media (Assael, 1990).

Characteristics of Advertising Communications

1. It has public presentation. Advertising communication is massive and public in nature.

 2. Persuasiveness. It seems to be everywhere all the time and it allows buyers considerable
time to think over their purchase decisions.

3. Has amplified expressiveness. By use of music, dramatic visualization and creative

expressiveness, advertising communications can dramatize and exaggerate a company’s
product offering.
4. Impersonality. Compared to personal selling, advertising communications is impersonal
and thus does not oblige the consumer to respond in any way. Viewers of advertising do
not feel the pressure that often goes with personal selling. This is often viewed as a
weakness in that it lacks immediate feedback and the company is never sure who is
actually receiving its message.

Characteristics of an effective advertising

According to Shimp (2003) at a minimum, effective advertising should satisfy the following
characteristics:

 It must extend from sound marketing strategy.

For advertising to be effective it must be compatible and integrated with all the other elements of
the marketing communication strategy (i.e. sales promotion, personal selling, direct marketing,
public relations, and publicity).

 Effective advertising must take customer’s view

Effective advertising must be designed in a way that relates to customers’ needs (benefits) and
not marketers’ needs. Consumers buy products because they provide benefits. They don’t buy
because of product features.

 Effective advertising is persuasive

An advertisement will be persuasive only if it provides benefits to the consumer and the
marketer.

 Advertising must find a unique way to break through the clutter

An effective ad must be designed in such a way that it can be able to break through the clutter.
There are so many advertisements and information in the media and consumers cannot be able to
pay attention to all these information. Thus, a good ad must be able to break the clutter and catch
customers’ attention.

 Good advertising should never promise more than it can deliver

This is important from ethical and repeat business point of view. Consumers resent advertisers
who deceive and may not pay attention to their future advertisements.

 Good advertising prevents the creative idea from overwhelming the strategy.
Advertisers should always remember that the main objective of advertising is to persuade and
influence consumers. They should know that humour or attractiveness in an ad is not there just to
entertain customers but they are there to persuade and influence them. An ad is ineffective if
consumers just remember the humour or beauty and not the selling information.

Functions of Advertising
Advertising performs various functions. These include:
 Informing
 Educating
 Entertaining
 Persuading
 Reminding
 Reassuring
 Assisting other marketing efforts
 Adding value

1. Information
Advertising creates product or service awareness. It tells consumers where to get the product or
service, the benefits, features and so on. It educates them on competing products and serves to
reduce consumers’ search time. It is mostly found at the introduction stage of the product life
cycle. Yoghurt manufacturers had to start by informing consumers of the product’s nutritional
benefits.

2. Entertainment
Entertainment includes pleasant event and message with the basic selling message, serving to
increase consumer attention, comprehension and learning of the primary message. Advertising
helps to pay for a lot of entertainment on TV and other media.

3. Persuasion
This becomes important in the competitive stage or the growth and maturity stage of the product
life cycle, where the company’s objective is to build selective demand for a particular brand.
Some persuasive ads use comparative advertising which makes an explicit comparison of the
attributes of two or more brands in an attempt to persuade customers to move to the competing
brand. Where comparative advertising (e.g. Axion versus bar soap or steel wool) is used, a
company should make sure that it can prove its claim of superiority and cannot be counter
attacked in a vulnerable area. For example, Dettol soap claims that it kills up to 99% of germs.
Can this be proved through laboratory testing? OMO claims that it is the strongest detergent for
the cleanest wash! Persuasive advertising convinces the prospective consumer to purchase the
brand even if on a trial basis. This is achieved by creating a favorable impression about a product
or service.

4. Reminder
This is important with mature products such as Coca-cola, Kimbo, Tusker, Guinness and OMO.
In Kenya, Coca-cola uses a lot of television and billboard advertisement to remind people to
purchase the drink. It previous slogan was ‘Always Coca-cola’. Its current one is ‘Brrr…”. A
Scotts Emulsion ad makes the claim that “…it’s as good as it’s always been…”. EABL strikes
the patriotic note by declaring, “Tusker …my country, my beer…”. The company also says of
Tusker, “It is also brewed to go with the good times.” The company credits Guinness with power
and strength. It tells consumers that this particular beer “…brings out the power in you!”

Because of its repetitive nature, reminder advertising continuously reminds people, both present
and potential users of the product, to continue using the brand.

5. Reassurance
It is related to reminder advertising. It seeks to assure current purchasers that they have made the
right choice. An Aqua fresh toothpaste ad says, “…is a high time you know that you made the
right choice…”. Automobile ads often show satisfied customers enjoying special features of a
new car. CIC insurance assures customers that …CIC will never break its promise… Continued
re-assurance helps to enhance consumer confidence in the brand and helps to reduce post
purchase dissonance.

6. Assistance to other company efforts

Advertising aids other marketing efforts. For instance, it generates leads to prospective
customers for the sales team. It reduces sales costs and legitimizes the sales effort. It also makes
prospective customers knowledgeable about consumer products and therefore reduces
presentation time for the salespeople.

7. Addition of value
Advertising communications add value to a product because it influences consumer perception of
the product. Due to the nature of advertising communications, some products are viewed as
stylish, prestigious, modern, masculine/feminine or even conservative.

Advantages and Disadvantages of Advertising

Advantages
There are several advantages of using advertising in the firm’s promotional mix.
1. Control. Since the company pays for advertising space, it can control what it wants to say,
when it wants and to some extent to whom the message is sent. The firm can even control
graphics, timing, and size (or length). Thus standard message in a chosen format can be
delivered to the target market.

2. Cost per contact is low. Advertising can also be a cost effective method for communicating
with large audiences as costs per contact through advertising is often quite low.

3. Ability to create images and symbolic appeals for products and services. This capability is
very important for firms selling products and services that are difficult to differentiate. For
instance, many consumers cannot distinguish one brand of beer or cigarette from another
based on taste. Thus, the image or psychological associations those consumers have of brand
becomes a very important part of their purchase decision.

4. Value in creating and maintaining brand equity. Brand equity can be thought of as a type of
intangible asset of added value or goodwill that results from the favorable image, impressions
of differentiation and/or strength of a brand name or trademark. The equity that results from a
strong company or brand is important because it allows a brand to earn greater sales volumes
and/or high margins that it could not earn without the name. This value also provides the
company with brand competitive advantage.

In many cases, the strong equity position a company and/or its brands enjoy is established,
created and reinforced (maintained) through advertising that focuses on the image, product,
attribute, service or other features of the company and its products or services. Firms such as
Coca-Cola, Unilever, EABL as well as strong (popular) brands like Kasuku, Kiwi, Kimbo,
Jogoo, and Coke enjoy strong brand equity that has been established and maintained at least
in part through advertising.

5. Ability to strive for a response when other elements fail. By use of humor, pleasant images,
unique images and celebrities, an advertisement can easily push the company in the market.
6. A large audience is attracted. In print, circulation is supplement by passing the copy of
newspaper or magazine from one reader to another.
7. A large number of alternative advertising media is available. The firm can match medium to
the target audience (market).
8. In print media (magazines and newspapers) the message can studied and restudied by the
audience.

Disadvantages
There are a number of disadvantages associated with advertising. These include:
1. High cost of producing and placing adverts. This reduces the access of small firms to certain
media, especially television.
2. The lack of direct feedback of most of advertising. It is difficult for the firm to determine how
well the message was received and whether it was effective.
3. Credibility and ease with which it can be ignored. Consumers usually treat advertising with
skepticism. Many perceive it as biased and are concerned by its intent to solicit sales.
4. Clutter. Advertising can be ignored easily. Not only are consumers skeptical about many of
the advertising messages they feel and hear; it is also relatively easy for them to select and
process only those ads that interest them. With so many messages competing for people’s
attention everyday, it is out of necessity that they ignore the vast majority of them. The high
level of “clutter” is a major problem in advertising. The numerous ads on TV, radio,
magazines and newspapers make it very difficult for firms to get their message noticed and
attended to by consumers.
5. The message is standardized and thus inflexible (except for the Web which is interactive).
The firm cannot focus on the needs of individual customers.
6. Wasted coverage because the media may reach large geographic areas where the firm’s
customers may not be residing.
7. Some media (e.g. TV) require long lead times before placing ads. This may prevent the firm
from taking advantage of certain events themes that could promote sales.
8. Some media have very high throwaway rates. For instance, Newspapers are thrown away
very fast unlike magazines that could be kept for some time.
9. Most ads are very brief, whether they are in print or electronic media. For instance, TV ads
are 30 seconds with very few details.

Major Advertising Decisions

In developing an advertisement program, marketing managers must always start by identifying
the target market and buyer motives. Then they can make the five major decisions in developing
an advertisement program known as the five Ms.

 Mission – what are the advertising objectives

 Money/budget – how much can be spent?
 Message – what message should be sent?
 Media – what media should be used?
 Measurement-how should be results be evaluated?

1. Setting Advertising Objectives

An advertising objective is a specific common task to be accomplished with a particular target
group at specific time period. They are classified in terms of their primary purpose. That is,
whether their aim is to inform, persuade or remind.

Informative advertising is heavily used in introducing a new product and the objective here is to
build initial primary demand. Other possible informative advertising objectives are suggesting
new uses for a product, informing the marketer of price changes, explaining how the product
works, describing available services, correcting false impressions, reducing customers fear and
building a company’s image.

Persuasive advertisement is used as competition increases. The objective is to build selective

demand possible. Persuasive advertising objectives include: building brand preferences,
encouraging switching to your brand, changing customers perception of product attributes,
persuading customer to buy now, or to receive a sales call.
Reminder advertisement is used for mature products. It keeps consumers thinking about the
product. Coca-Cola adverts are for reminding the consumer about product rather than informing
or persuading. Possible reminder advertising objectives include:
 Reminding consumers where to buy the product
 Keeping product in customers mind during off seasons,
 Maintaining the product on top-of-mind awareness

2. Setting the Advertising Budget

Although advertisement is treated as a current expense, part of it is really an investment that
builds up an intangible asset called brand equity. It has a carry over effect that lasts beyond the
current period. This involves deciding how much to spend on advertising for each product and
market. The company can use the following methods to determine total advertising budget.

(i) Marginal analysis

Marginal analysis involves investing resources as long as extra expenses are compensated by
higher extra returns. According to Pelsmacker, Geuens, and Bergh (2007), marketers should
invest in promotional or communications efforts as long as their marginal revenue exceeds the
marginal communications cost.

(ii) Inertia
This involves keeping communications budget constant year after year. The company ignores
market, competitive actions or consumer opportunities (Ibid). This method is not strategic.

(iii) Arbitrary allocation

This is one of the simplest methods of budgeting promotional resources (Ibid). The amount to be
spent is what the owner or the managing director decides. The amount to be spent depends on the
personal preferences of the owner or the managing director. This method is also not strategic and
it is the least appropriate. The method is mostly used in small companies.
(iv) Affordable
This involves setting advertising budget at a level where the company thinks it can afford. It is
mostly used by small firms that reason that a company cannot spend more than they have.
According to Kotler and Armstrong (2006) its disadvantages are:
 it ignores the effects of promotion on sales
 It tends to place advertising last among spending priorities, even in situations in which it is
important to the firms’ success like when launching a new product.
 It leads to an uncertain annual promotion budget, which makes long range market planning
difficult.
 It cannot result in overspending or under-spending

(v) Percentage of-sales method

This involves setting the advertising budget based on a certain percentage of current or
forecasted sales or as a percentage of the unit sales price. Its advantages are:
 It is simple to use
 It helps management think about the relationship between promotion spending, selling price
and profit per unit.

Its disadvantages are:

 It wrongly views sales as the cause of promotion rather than as the result. It is based on
availability of funds rather than on opportunities.
 It may prevent the increased spending sometimes needed to turn around falling sales.
 Because ads budget vary with year to year sales long-range planning is difficult
 It does not provide any basis for choosing a specific percentage, except what has been done
in the past or what competitors are doing.

(vi) Competitive
This involves setting the advertising budget based on what competitors are spending. Firms using
this method monitor the competitors’ ads or get industry promotion estimates from publications
or trade associations and then set their budgets on the industry average. The arguments for using
this method include:
 Competitors budget represent the collective wisdom of the industry.
 Spending what competitors spend helps prevent promotion wars.

Its disadvantages are:

 There are no grounds for believing that competition has better idea of what the company
should be spending on advertising.
 Each company has its own special promotion needs. This is because different firms differ.
 There is no evidence that budget based on competitive parity prevent promotion wars

(vii) Objective-and-task method

It is the most logical method of setting promotion budget. It involves a company setting
advertising budget based on what it wants to accomplish with advertising. It involves:
 Defining specific promotion objectives
 Determining the tasks needed to achieve these objectives
 Estimating the costs of achieving / performing these tasks
 The total of these costs is the proposed promotion budget

Its disadvantage is that it is most difficult to use because it is hard to figure out which specific
tasks will achieve specific objectives.

Factors to consider in setting Advertising Budget

There are five specific factors to consider when setting the advertisement budget (Kotler and
Armstrong, 2006).

a) Stage of the product life cycle. New products typically receive large advertisement budget to
build awareness and to gain customer trial. Established brands usually are supported with
lower advertisement budgets as a ratio to sales.

b) Market share and customer base. High-market-share brands usually require less
advertisement expenditure as a percentage of sales to maintain their share. To build market
share through market size, large advertisement expenditure is required. On the customer
 base, it is less expensive to reach consumers of a widely used brand than to reach consumers
of low-share brands.

c) Competition. In a market with a large number of competitors and high advertisement

spending, a brand must be advertised more heavily to be heard.

d) Advertisement frequency, time and size. The number of repetitions needed to put across the
brand’s message to consumers is very important. Advertisements at prime times are more
expensive, front and back page advertisement on a news paper are more expensive and so are
the large sized ads compared to the small ads.

e) Product substitutability- Brands in a commodity class such as cigarettes, beer, soft drinks etc,
require heavy advertising to establish a differential image. Advertising is also important
when a brand can offer unique physical benefits or features.

f) Economic conditions- According to Pelsmacker, Geuens, and Bergh (2007), economic

recessions will have serious consequences on communications budget. Consumers spend less
money and shrinking markets mean stronger competitive battles. Companies may react in
two ways with regard to promotional spending. Some try to economize in every possible
way. Others react by increasing their budget, believing that extra invest will drive sales up.

g) Unexpected opportunities and threats- Unexpected opportunities and threats in the market
might change strategic plans and communications budget (Ibid).

3. Developing the Advertising Message

It involves creating advertising message. Advertising succeeds not because of huge budgets but
because it is able to gain attention and communicate well. To gain and hold attention, ads
messages must be better planned, more imaginative, more entertaining and more rewarding to
consumers. This is because most TV’s now have remote channel switches and consumers will
switch to another channel without moving from where they are seated if adverts and materials on
TV are dull and not rewarding. Developing effective messages begins by identifying the benefits
that are going to be used as advertising appeals. This is because people are only going to react to
the product or company if they believe that they are going to benefit from it. Advertising
message should flow directly from broad company’s positioning strategy. After identifying the
benefits, the firm must develop creative concept or big idea that will bring the message to life in
distinctive and memorable way. At this stage, simple message ideas become great ads
campaigns. Many creative concepts are developed with hope that one of them will be turned into
advertisement campaign.

Message execution
To capture the target market’s attention and interests, the message can be presented in the
following styles.

a) Slice of life. It is a widely used ad format particularly with packaged goods. It is based on a
problem /solution-type approach. It tries to portray a real-life situation involving a problem
or conflict that consumers might face in their daily lives. The advertisements focus on how
the firm’s product or service can resolve the problem. Slice of life executions are often
criticized for being unrealistic and irritating to watch. This is because they remind consumers
of problems of a more personal nature such as dandruff, bad breath, body odour etc. This
style shows one or more “typical” people using the product in normal setting (e.g. two
mothers at a picnic discussing the nutritional benefits of Blue Band).

b) Lifestyle. This shows how a product fits into a particular lifestyle. An ad for a four-wheel car
traversing remote and rugged but beautiful terrain is a good example. The Hammer ad fits
well here. Sports cars and sports clothing depicts the sports lifestyle and the advertisements
show this kind of lifestyle.

c) Mood or image. It builds a mood or image around the product such as beauty, love or
coolness. There is no claim in the ad other than suggestions. Most ads by tourist firms
(Kenya Tourism Board) try to create such moods or images.
d) Musical. It shows one or more people or cartoon characters singing a song about the product.
These ads are very common in radio and TV.

e) Dramatizations. It is almost similar to slice of life. Its focus is on telling a short story with
the product or service as the ‘star or hero’. It also relies on problem-solution approaches. It
uses more excitement or suspense in telling the story. There are 5 basic steps to a dramatic
commercial
 Exposition-where the stage is set for the upcoming action.
 Conflict – it is a technique for identifying the problem.
 Rising action- it is the middle of the dramatic form where the story builds, the conflict
intensifies and the suspense thickens.
 Climax-where the problem is solved.
 Resolution-where the wrap-up is presented. In advertisement, it includes product
identification and call to action.

f) Humour. It can be used as a type of advertisement appeal as well as a way of presenting other
advertisement appeals. They are suitable for TV or radio. They are the best known and
remembered of all advertisement messages because they attract and hold consumers attention
and interest. It puts the consumer in a positive mood. An example is Lifebuoy ad is which is
featured on vernacular radio station dramatizing a husband who wonders why his children
were still scratching their bodies yet he had brought lifebuoy soap the previous night..! The
woman is portrayed to be ignorant of the fact that lifebuoy soap is now not for men, but for
the whole family’. The toss advertisement which featured on the radio vernacular station
dramatized two women. One visits the other and finds her talking to herself and she asks
“…..why are you talking to yourself’……The woman replies that the way her children were
dirtifying their clothes would make her hands tear away…the woman is finally introduced to
Toss detergent as the solution to her problem.

g) Personality symbol. It develops a central character or personality symbol to deliver the

advertisement message and with which the product or service can be identified. Personality
symbols can be used on fantasy characters or animals. Mambo Mbotela is used to advertise
 Supanet-washed or disinfected by Powertab! Michael power is almost synonymous with
Guinness beer. Marlboro cowboy is used to advertise Marlboro cigarettes.

h) Technical expertise. This style shows the company’s expertise in making the product. The
advertisement for Castrol GTX motor oil uses this type of appeal in proclaiming it is the only
brand to meet and exceed industrial performance standards.

i) Scientific evidence. This style presents survey or scientific evidence that the brand is better or
better liked than one or more other brands. Firms often cite technical information in their
advertisements, results of scientific or laboratory findings or endorsements by scientific
bodies or agencies as supportive evidence for their advertisement claims. Colgate-emphasis
the value of calcium to help prevent cavities and uses the phrase “….the one recommended
by dentists…” In USA Crest tooth paste has used scientific evidence to convince buyers that
it is better than other brands at fighting cavities. The P&G pampers are endorsed by the
paediatric association of Kenya. Nation Media quotes Audit Bureau of Circulation in noting
that nine out ten newspaper readers read Daily Nation.

j) Testimonial evidence or endorsement. The advertisement is presented by a person who

speaks on behalf of the product/service based on his or personal use or experiences with it.
This approach is very effective when the spokesperson delivering the testimonial is someone
with whom the target audience can identify with, or the person has a particular interesting
experience or story to tell. Testimonials must be based on actual use of the product or
service; spokesperson must be credible, recognizable or popular. For example, Jubilee
Insurance uses managing directors of major firms like Farmers Choice to endorse their
products by noting how they have been satisfied in using them.

A somewhat related but different execution technique from the testimonial is that of the
endorsement whereby a well-known or respected individual such as a celebrity or expert in
the product or service area speaks on behalf of the company or the brand. When endorsers
promote a company or its products or service, the message is not necessarily based on their
 personal use or experience. Many firms use actors or sports celebrities as product endorsers.
For example, Patrick Njiru, the famous rally driver used to endorse panadol.

k) Experiential advertising. This is a new form of advertising that is gaining popularity in

Kenya because firms have realized that mass advertising is not as effective as it used to be.
Consumers prefer advertisements that endear them emotionally to products. Thus
experiential advertising helps customers to experience the products. Participating in a live
consumer experience makes consumers more receptive to an ad the next time they see it. This
form of advertising has been used successfully in Kenya with the Kiwi- Art competition that
seeks to create a forum where students and pupils from different schools come together to
discuss art and the product. The participants get the opportunity to use the product. It has also
been used with women groups during get together parties where demonstrations on how to
cook with Royco have been done. This endears them to the product

l) Digital signage. This is a form of outdoor advertising in which content and messages
displayed on an electronic screen or digital sign, can be altered without modifying the
physical sign.

m) Fantasy. This is a form of ad style that creates imaginations and dreams around the product
or services.

n) Combinations. Many of the execution techniques discussed above can be combined to

present the advertisement messages. For instance animation is often used to create
personality symbols or to present a fantasy execution. It is therefore, the responsibility of the
creative specialist to determine whether more than one execution style can be used.

Other Key Considerations of advertisements

According to Kotler and Armstrong (2006) other message considerations include:

 i. Tone of the advert- Proctor & Gamble always uses a positive tone. Its ads say something
positive about its products. It avoids humour that might take attention away from the
message. However humour is important particularly where the there is a lot of ads clutter
.
ii. Words in the ad- The firm must use memorable and attention getting words in the ad. For
instance, rather than claiming that a “BMW is a well-engineered automobile” BMW uses
more creative and higher-impact phrasing: “The ultimate driving machine” Another US
company Hanes, instead of saying its socks lasts longer than less expensive ones, it
suggests, “Buy cheap socks and you’ll pay through the toes”

iii. Format elements of the ad- The firm must also consider the format of the adverts. Small
change in the ad design makes difference in its effect. Therefore the firm must consider
elements of the format like illustration, headline and copy.

Types of advertising message appeals

According to Clow and Baack (2004) advertisers usually select one of the following types of
appeals as they develop the advertisement message:
i. Fear
A fear appeal refers the consumer to a certain type of risk he or she might be exposed to and
which he or she usually can reduce by buying (e.g. insurance) or not buying (Do not drink and
drive!) the product advertised (Pelsmacker, Geuens and Bergh, 2007). Firms use fear to sell
several types of products. The most common are life insurance, shampoo, mouthwash,
toothpaste, mortgage, pension and home insurance.

For pension the pension company invokes the fear of impoverished old age, for home insurance
the fear of theft and loss of possessions and invasion of private space is invoked while for life
insurance the fear of leaving dependants and loved ones to fend for themselves in uncertain
future is invoked. Shampoos, mouthwash and toothpaste companies invoke the fear of dandruff
(for shampoo) and bad breath (mouthwash and toothpaste).
Fear appeal works because it increases viewers’ interest, attention and persuasiveness of the ad.
According to Pelsmacker, Geuens and Bergh (2007) the following are typical risks that might be
used in a fear appeal.
 Physical risk- This is the risk of bodily harm. It is often used for security alarms,
toothpaste, analgesics etc. An example is “When would install a security alarm? After
they have broken into your business?”

 Social- This is the risk of being socially disliked. It is used for such products as
deodorants, dandruff shampoo, mouthwash, toothpaste and many other unrelated
products.

 Time- This is the risk of spending a lot of time on unpleasant activity while the activity
can be performed in less time. For instance, a dish washing company might have an ad
that reads “Do you know most people spend X years washing their dishes?”

 Product performance- This is the risk that competitors’ products may not perform better
than company’s products. Dettol ad claims that the brand kills germs 100 percent.

 Financial - This is the risk of loosing a lot of money. This is mostly used by insurance
companies that want customers to buy their policies to avoid loosing money in case of
theft, accident or fire.

 Opportunity loss- This is the risk of consumers missing a special opportunity if they do
not act right away.

ii) Humour
Humour is one of the best methods for cutting through clutter. It is effective in getting and
keeping audience attention. Generally consumers enjoy ads that make them laugh. Clow and
Baack (2004) observe that the success of humour as ads tactic is based on three things. It causes
people to watch, laugh and remember.
iii) Sex
Sexual appeal is another way that advertisers use to cut through the clutter. According to Clow
and Baack (2004) sexuality has been used in advertising in five ways including:

 Subliminal techniques. This involves placing sexual cues or icons in advertisements

to affect a viewer’s subconscious mind. This is mostly used by perfume companies.
 Nudity or partial nudity. This is used mostly by undergarment (e.g. bra), lotions,
soaps and perfume companies.
 Sexual suggestiveness. For example, an ad could have the following words “Actress
XYZ is wearing ABC perfume and nothing else” with the upper part of the body
shown nude. This is an example of sexual suggestive messages.
 Overt sexuality. It is normally used for products that are sexually oriented.
 Sensuality. This involves portraying images of romance and love than raw sexuality.
These sensual ads target women who might respond to more of sensual suggestion
than an overt sexual approach. Messages like “Forever on lips never on hips” are
sensual. Kenchic had an ad with the following words “This Valentines, you will be
forgiven for thinking about breasts and thighs,” (Sunday Nation, February 14 2010).
This is sensual message.

Clow and Baack (2004) observed that studies show that sex and nudity increase attention
regardless of the gender of individual in the ad or the gender of the audience. Most people have
however criticized the use of sex appeal in ads. They regard as unethical way of advertising
products. The authors share the same opinion because the body of a human being is the temple of
Holy Spirit and thus should not be desecrated.

iv) Music appeals

Music is very important in advertising because it helps to capture the audience attention. It
conditions the listeners to the extent that every time they hear of the tune they are able to know
which product is being advertised. For instance in Kenya the ad for Sony sugar uses a song,
which goes like this “…You are …My sugar, My honey, My sweet……….Oh yes, Oh yes….”
Every time one hears this song, one remembers Sony sugar. Bic pen produced by Haco industries
uses a popular song in advertising ..Lean on me…when you are not strong….lean on Bic…
Blueband uses a musical song….Blue band gives them the energy to grow…energy…energy to
grow…
v) Rational appeals
Rational themes appeal to logical reasoning (Harrison, 2000). Rational appeals focuses on the
actual product or service, its features, quality, value, performance, price, delivery, package, after
sales services, warranties, etc. The goal of rational appeals is to provide information that is
needed by consumers to make the purchase decision. According to Clow and Baack (2004)
rational appeals are effective when consumers have very high levels of buying involvement and
are willing to pay attention to the ad. This is because rational appeals have the lowest attraction
appeal.

vi) Emotional appeals

According to Clow and Baack (2004) emotional appeals are based on three ideas:
 Consumers ignore most ads
 Rational appeals go unnoticed
 Emotional advertising can capture a viewer’s attention and help develop an attachment
between consumer and brand.
Emotional appeals attempt to rouse negative or positive feelings in an attempt to motivate
individuals (Harrison, 2000). Positive appeals focus on the use of humour, love, pride,
tranquillity, glamour, trust, reliability, friendship, happiness, security, serenity, protecting loved
ones, passion, enlightenment etc. Negative appeals focus on fear, guilt, anger and shame in
order to motivate consumers to buy the product or service.

vii) Scarcity appeals

This type of appeal assumes that when a product or service is in limited supply its value
increases. Scarcity appeals urge consumers to buy the product because its limitation. The product
may be limited in numbers or it may be available for a short time (Clow and Baack, 2004).
Scarcity appeal is used in a variety of situations. For instance, manufacturers may announce
discounts for a short duration to encourage retailers to stock more of a product, and sweepstakes
and contests are also for a short duration. Scarcity appeals in Kenya are mainly used by
supermarkets particularly at end months to encourage consumers to buy more than normal. They
portray the product to be in short supply and encourage consumer to rush to buy as the stock
lasts.
viii) Moral appeals
According to Harrison (2000) moral appeals can also be used in executing ads message. Moral
appeals work on an audience’s sense of what is right or wrong. Consumers bring their personal
values and morals to a buying situation. Increasing demand for ‘green products’ and buying from
‘socially responsible companies’ is an evidence of this behaviour. This has made companies to
use moral appeals in the ads messages.

Other appeals
According to Pelsmacker, Geuens, and Bergh (2007) other appeals include:

(i) Demonstration- Consumers are shown how the product works. Demonstration enables
the advertiser to focus on product attributes, benefits and uses.

(ii) Problem solution- Problem solution shows how a problem can be solved or avoided.
Problem solution is often combined with fear appeal to show consumers what happens
when the brand is not used.

(iii) Comparative advertising- Comparative advertising is used as a means of differentiating

one brand from another (i.e. competitors). For instance, in Kenya there is an
advertisement that tries to show the difference between and Axion brand. Another
example was the comparative advertising between Safaricom and Kencell (now Zain) a
few years ago regarding the issue of clarity of the networks. Kencell used the words
connected (next to its colours) and congested (next to Safaricom colours). Detergent
companies also use comparative advertising. For instance, Omo a leading detergent in
Kenya used to compare its effectiveness with that of a “white detergent”. Omo is blue in
colour while at that time its competitor’s detergents were white.

(iv) Warmth- These are advertising appeals that consist of elements evoking mild positive
feelings such as love, friendship, cosiness, affection and empathy. Warmth leads to more
 positive affective responses, less negative feelings such as irritation, a more positive
attitude toward ad and brand and sometimes an enhanced purchase intention. Females
react more to these kinds of appeals (Pelsmacker Geuens, and Bergh, 2007).

4. Selecting the media

According to Kotler and Armstrong (2006) selecting the media involves the following decisions:
 Deciding on reach, frequency and impact
 Choosing among major media types
 Selecting specific media vehicles
 Deciding on media timing

(i) Deciding on reach, frequency and impact

This involves deciding what reach, frequency and impact are needed to achieve advertising
objectives. Advertising reach is a measure of the percentage of people in the target market who
are exposed to the firm’s advertisement campaign during a given period of time. For instance, a
firm advertising campaign might try to reach 75% of the target market during the first half of the
year.

Advertising frequency is the measure of how many times the average person is exposed to the
message. The firm might want an average exposure frequency of four. This implies that the firm
wants an average person to be exposed to an ad four times a day. Advertising impact is the
qualitative value of a message exposure through a given medium. For the products that need to
be demonstrated, messages should be presented on the TV because it has more impact than
radio because TV uses sight and sound. The same message in one magazine (say Parent
magazine) may be more believable than in another (say Drum, Teacher, or the Lawyer
magazines). Generally speaking, the more reach, frequency and impact the firm seeks, the higher
the ads budget.

(ii) Choosing among major media types

The advertiser has to know the reach, frequency and impact of each of the major media types.
The major media types are newspapers, TV, direct mail, radio, magazines, outdoor and on-line.
Each of the media has its advantages and disadvantages.

a) Newspapers
Advantages
 It is flexible (i.e. short production time and creative options-sizes, shapes, formats, colour
etc.).
 It is timely.
 High believability.
 Broad acceptability.
 May have broad market coverage especially in developed countries.
 High reader involvement and ads they contain.

Disadvantages
 Has short life span.
 Has poor reproduction quality.
 Poor market coverage in developing countries.
 Lack of selectivity in terms of demographics and lifestyle characteristics.
 There is a lot of clutter.

b) Magazines
Advantages
 High demographic and lifestyle selectivity.
 High credibility and prestige.
 High quality reproduction.
 Long life span.
 Creative flexibility.
Disadvantages
 High cost.
 Limited reach and frequency.
 Long lead time needed to place an ad.
 There is a lot of clutter and competition.
 There is no guarantee of position.

c) Television
Advantages
 There is good mass market coverage (e.g. KBC TV).
 Low cost per exposure because of its ability to reach many people.
 Creativity and impact (it combines sight, sound and motion, appealing to all senses).
 Excellent medium of demonstrating a product or service.
 High captivity and attention because of its intrusive nature.
 High selectivity and flexibility. This is due to variations in the composition of audiences as a
result of program content, broadcast time and geographical coverage.
Disadvantages
 High costs.
 Lack of selectivity due its mass market nature.
 High clutter.
 Fleeting message. TV ads last only 30 seconds or less leaving the viewer with nothing
tangible to examine or consider.
 Limited viewer attention. There is no guarantee that viewers will be attentive to firm’s ads.
 Distrust and negative evaluation of TV ads.

d) Direct mail
Advantages
 Allows personalization.
 There is no ad competition within the same medium.
 Highly flexible in creativity.
 High audience selectivity.
 High segmentation capabilities.
 High frequency levels.
 It can be timely.
 Eliminates wastage coverage. Thus it is cost effective.
 High measure of ad effectiveness. Feedback is immediate and accurate.

Disadvantages
 High cost per exposure.
 Junk mail image.
 Targeting accuracy depends on the list used.

e) Radio
Advantages
 Low cost.
 High degree of audience selectivity through various programs and geographic coverage of
various radio stations.
 High flexibility because it has very short closing period. This means advertisers can change
their messages almost to the time it goes on air.
 It encourages listeners to use their imagination when processing an ad massage.
 Good local acceptance.
 Ability to use popular radio personalities to influence the market.

Disadvantages
 Creative limitations because of absence of visual image. The advertiser cannot show the
product, or demonstrate it.
 Fleeting exposure. It last for only few seconds and the audience is left with nothing tangible
to examine or consider.
 High level of audience fragmentation due to large number of stations. Many people are
listening to different radio stations at a go.
 Limited research data on radio listener-ship.
 Limited listener attention.

f) Out of home media

It includes outdoor (billboards and signs), transit (both inside and outside the vehicle),
skywriting and other media viewed outside the home

Advantages
 High level of creativity. They use large print, colours, and other elements to attract attention.
 High levels of frequency as consumers are able to see them many times.
 High geographical flexibility because they can be placed anywhere the government allows
(e.g. on highways, near malls, supermarket, on top of buildings, etc).
 Wide coverage of local markets because they are available day and night.
 Have high ability to create awareness because of its impact.
 High repeat exposure.
 Low message competition because it can be placed where there is no other billboards.
 Good position selectivity. The firm can chose where it wants its billboard to be placed.

Disadvantages
 Image problems. Some consumers highly disregard them.
 Little audience selectivity. Ability to select the right audience is limited. So wastage
coverage is high.
 Quick wear-out because of high frequency of exposure. That is people are likely to get tired
seeing the same message everyday.
 Exposure time is short. This is because people pass by outdoor ads fast. Lengthy message are
not likely to be effective.
 Accuracy in measuring outdoor ads reach, frequency and other effects is difficult.
 High cost involved.
 Creativity in outdoor advertising is limited compared to other media.
g) Internet
Advantages
 High audience selectivity.
 The cost is low.
 Global reach. Wide market coverage.
 Have interactive capabilities.
 Can be implemented immediately.
 Convenience.
 Multimedia capabilities
Disadvantages
 Impact is relatively low.
 Audience can control exposure.
 Audience is small especially in developing countries where majority of people do not have
enabling technologies (e.g. computers).
 High clutter.
 Privacy issues
 Need for continuous updating (website).
 Hard to measure results.

h) Yellow pages
The major directories with yellow pages in Kenya are Telcom directory, Postal directory and
Nation Business directory.
Advantages
 Low cost.
 Highly favourable to consumers because of they are non-intrusiveness.
 Used when consumer is making a buying decision or action.
 Widely available in urban centres in Kenya.
Disadvantages
 Long lead times. The ads have to be placed a long time before publications appear.
 They lack creativity found in other media like TV.
 They usually become outdated because directories are printed once a year. For instance
companies may close, change their addresses, telephone numbers or relocate to another place
before new editions are out.
 They are very localized or specific.

i) Movies theatres and Videos

Advantages
 High exposure among movie goers especially the teenagers and the youth.
 Positive mood especially if viewers like the movie can be carried over to the product or
service.
 Low cost of advertising in theatres.
 High ad recall rates.
 Low clutter.

Disadvantages
 The ads can be highly irritating and this may be carried to the product or service.
 The relative cost (cost per exposure) of reaching the consumers using this media is high. This
is because the audiences are few.

j) Flyers/circulars
These are single-page (flyers) and multiple page (circulars) ads distributed in parking lots or
right to consumer homes.

Advantages
 Very targeted audience
 Low costs
 Flexibility
 Speed
Disadvantages
 High throwaway rate
 Poor image to some customers
 High clutter
Flyers are suitable for small firms while circulars are used by large firms.

Factors considered when making media choices

 Media habits of target consumers

The firm should look for media that reach target consumers efficiently and effectively. For
instance, firms targeting middle class should use TV, newspapers and magazines. Direct mail
could also be used by placing sales literature in people’s post office letter boxes. XPAT LINK,
an advertising company in Kenya uses this kind of media. It distributes free advertising booklets
through post office letter boxes. Those targeting low income earners and people living in rural
areas particularly in Africa should use radio.

 Nature of the product

For example, fashion clothing is best advertised in color magazines (e.g. True love, Drum,
Adams etc) and automobile performance is best demonstrated on TV (NTV, Citizen, KBC, and
KTN).

 Types of messages
Different types of messages may require different media. A message announcing a major sale
tomorrow will require radio or daily newspapers while a message with a lot of technical data
might require magazines, direct mailing, an on-line ad or web site. A company selling expensive,
risky, and infrequently purchased products can differentiate their brand features by describing
brand benefits using the appropriate media using a long advertising copy in a daily newspaper
 Cost of the medium and cost per thousand exposures
Daily newspapers advertisements cost more and also reach fewer consumers in Kenya due to low
literacy levels and low incomes. Television is very expensive and it also reaches very few people
in a country like Kenya because most rural households still lack electricity. Radio ads cost much
less and reach many consumers in Kenya and Africa in general. The TV and radio advertising
rates depend on the time when the advertiser wants to place the advertisement. The
advertisements that come immediately before the news, those that interrupt the news and those
that come between 7pm and 9pm are far much more costly than those that come later at night.
This is because between 7pm and 9pm most families are at home watching or listening to various
media programs. After 9.30 pm or ten most people go to sleep. Advertisements on the TV or
radio also depend on the time the ad is aired (e.g. 30 second ads are more expensive than 10
seconds ads. In print media the rates depend on where the ad is placed. The ads inside the
newspaper or in the classified section cost far much less than those on front or back pages. It also
depends on the size and whether it is colored or black and white among other factors.

 Ability of the medium to target specific consumers

Some media such as particular magazines and TV channels target specific customers. The
Parents magazine targets the parents, the Tupike magazine targets those interested in cooking
and so is Susan Kamau’s Kenyan Kitchen magazine. The GTV and the DSTV normally target
the middle and upper income earners.

(i) Selecting specific media vehicles

The advertiser must choose the best general media vehicle (TV, radio, magazine, billboard etc),
and specific media within each general media type. The specific TV vehicles in Kenya include
NTV, KBC channel 1, KTN, Family, KBC channel 2 among others while specific Magazine
vehicles include Parents, Drum, True Love; Sokoni etc. specific newspapers vehicles include
Nation Daily newspaper, The People Daily, The East African Standard, The Kenya Times etc.
The specific radio vehicles include Easy FM, Inooro FM, Kass FM, Ramogi FM, Hope FM
among many others. In billboard industry specific firms include Adopt-a-light, Alliance media,
Eagle advertising, ENG and many others. Advertisers must compute the cost per thousand
persons reached by the vehicle. If a full page coloured advertisement in Nation newspaper costs
KShs 155,000 and its readership is 3.1 million people, the cost of reaching a group of 1000
persons is KShs 50 (155000/3100000*1000). The same advert in The Kenya Times may cost
KShs 81,000 but only reach only 15,000 persons–at a cost per thousand of about KShs 93. The
advertiser must rank each newspaper and magazine by cost per thousand and favour those
magazines and newspapers with the lowest cost per thousand for reaching target consumers.

In selecting specific media the advertiser must also consider the following other factors:

 Cost of producing ads for different media- Newspaper ads generally cost lesser than TV
ads. In selecting media vehicles, the advertiser must balance media cost measures against
several media impact factors.
 Balancing cost against the media vehicles audience quality- An ad for a baby lotion on
Parent Magazine would have high exposure compared to Nation newspaper which may
have low exposure.
 Audience attention- Readers of Nation Daily newspaper may pay more attention to ads
than do Standard newspaper readers.
 Editorial quality- For instance, most Kenyans tend to believe the Nation newspaper than
the Kenya Times.

(ii) Deciding on media timing

The firm must also decide how to schedule the advertising over the course of a year. Assume
sales of a product peak in January and drop in July (e.g. ice cream). The firms can vary its
advertising to follow the seasonal pattern, or to be the same throughout the year. Most firms do
some seasonal advertising. Some do only seasonal advertising such as ads for valentine, success
cards and Christmas cards.
Finally, the firm has to choose the pattern of the ads. This involves making decision on
advertising continuity and pulsing. According to Kotler and Armstrong (2006), advertising
continuity means scheduling ads evenly within a given period. Pulsing means scheduling ads
unevenly over a given time period. For instance three sixty five ads could either be scheduled
once per day during the year (i.e. continuity) or pulsed in several weeks or months. Pulsing
(advertising heavily over a short period) helps to create awareness that carries over to the next
ads period. Continuity is used to maintain a continuous level of advertising spending in the face
of intense competition. The danger of continuity is consumer wear-out, that is, decrease in the
effectiveness of advertising because of boredom and familiarity (Assael, 1990). Pulsing is most
relevant for new products to provide an initial burst and establish brand awareness. It is also used
for seasonal products to advertise more heavily during peak periods (ibid). Pulsing sometimes
used to support sales promotions (e.g. price or coupon incentives).

5. Evaluating the Effectiveness of Advertising

Firms should evaluate the effectiveness of their advertising programs. They should evaluate the
communication effects and the sales effects of an ad (Kotler and Armstrong, 2006). Measuring
the communication effects (or copy testing) involves evaluating whether the communication is
working well. It can be done before or after advert is printed or broadcasted. Before
measurements involves showing the consumers and asking them whether they like the ad and
measuring their like or dislike or attitude. After measurements involves measuring awareness,
knowledge and preference. According to Dillon, Madden, and Firtle (1994) the sale effect is hard
to measure because the following reasons:
(i) Advertising is only one element in the overall marketing mix and it is difficult if not
impossible, to unambiguously separate the effect of advertising from those of sales in
store promotions, personal selling, publicity, distribution, price and so on.
(ii) In certain firms advertising budget are fixed to sales volume, that is, advertising budget
are allocated as a fixed percentage of sales. In such cases, it may be impossible to isolate,
the effect of advertising because of the “chicken and egg” syndrome.
(iii) Even when advertising does affect sales directly, there usually is a lag between when the
advertising is run and when the products are purchased which makes measurement
difficult.
(iv) The effect of competitive activities, for example, new product introduction, coupons and
the like often cannot be separated from the effect of a given firms advertising.
(v) Advertising has a cumulative effect so that attempts to isolate the effects of a single
advert, especially for an established brand, can be very difficult.

Despite these problems, Kotler and Armstrong (2006) note that the sales effect of advertising can
be measured in two ways. One way is to compare past sales with advertising expenditures.
Another way is to conduct experiments.

Organizing the Advertising Effort

This involves answering the question – who will perform which ads tasks? Different firms
organize advertising functions differently. In small firms advertising is usually done by sales
department or sales people. In big organizations, an ads department may be created to handle
advertising. Its job may involve setting ads budget, working with an ads agency, handling direct
mail advertising, dealer displays and other ads not done by the advertising agency. Most big
firms use advertising agencies because they offer more benefits and expertise. Advertising
agencies are marketing services firms that assist firms in planning, preparing, implementing, and
evaluating all portions of their ads programs (Kotler and Armstrong, 2006). According to Clow
and Baack (2004) in making a decision on whether to use an advertising agency or in-house
department a firm considers the following factors:

 Size of the account- A small account is not attractive to advertising agencies because it
does not provide profit opportunities for them.

 Money that can be spent on the media- Smaller accounts are not attractive to ad agencies
because more money is spent on producing ads rather than purchasing media time and
space. According to Clow and Baack (2004), unless 75 percent of ad budget is spent on
buying media time and space, it may be wise either do the work in-house or use small ad
agencies to prepare various aspects of the ads campaign.
  Objectivity factor- An ad agency is more objective than in-house personnel who are
likely to be influenced by other members of the organization.

 Complexity of the product- For complex products, in-house personnel are preferred.
However, if products are generic or standard outside ad agencies should be used.

 Creativity issue- Generally ads agencies have more creativity than in-house personnel.
Thus when an organization is looking for creativity it will always engage an external ads
agency.

Advantages of Advertising Agencies

 They employ specialist who can perform ads tasks better than the company own staff
 They bring an outside point of view to solving the company’s problems.
 They bring a lot of experience from working with different clients and situations.

Due to these advantages, even firms with very strong ads department use ads agencies. Examples
of advertisement agencies in Kenya include: McCann Erickson, Gap promotion, Steadman,
Ogilvy & Mather, Ace Communications and Young and Rubicum among others.

Services offered by external advertising agencies

According to Clow and Baack (2004) ad agencies provide the following services to firms seeking
to refine their integrated marketing communication programs:
 Consulting and giving advice about how to develop target markets.
 Providing specialized services for business markets
 Providing suggestions on how to project a strong company image and theme.
 Supplying assistance in selecting company logos and slogans
 Preparations of advertisements
 Planning and purchasing media time and space.
Selection criteria for ad agency
According to Clow and Baack (2004) the following is the evaluation criteria in choosing an ad
agency:
 Size of the agency- The size of the agency should be comparable to the company hiring the
agency. Small companies should hire small agencies and vice versa.

 Relevant experience of the agency- The Company should choose an agency that has
experience in its industry. This is because the agency will be in a position to understand its
firm, customers, and marketing channel.

 Conflicts of interest- The Company should choose an agency that is not representing
competitors to avoid conflict of interest.

 Creative reputation and capabilities- The firm should choose ad agencies that have creative
reputation and capabilities. The information on creative reputation and capabilities could be
obtained by looking at the number of awards the company has won. Clow and Baack (2004)
observe that there is a positive relationship between winning wards and writing effective ads.

 Production and media purchasing capabilities- The firm should choose an ad agency that has
production and media purchasing capabilities. The firm should choose an ad agency that buys
media efficiently and is able to negotiate special rates, positions and desirable times.

 Other services available- The Company should choose an ad agency that offers other
services other than advertising. Other marketing communication services may include sales
promotion, public relations, direct marketing, personal selling, and publicity. The trend is for
ad agencies to offer all marketing communication services.

 Client retention rates- The firm would prefer an ad agency that has history of customer
retention. This is because customer retention implies high ad service quality and customer
satisfaction.
 Personal chemistry- Companies prefer ad agencies have similar values to the company.
Values such as quality, integrity, honest communication, and ethical behavior are highly
appreciated.

Discussion and Review Questions

1. What is the distinction between brand and product advertising? What is the purpose of each?
Under what circumstances would a manufacturer want to stimulate demand for a product
category as well as demand for the company’s brand?
2. As a manager of an advertising agency in Nairobi, you have been approached by a group of
women wishing to produce a series of programs on ‘Mothers Against Drunk Drivers
(MADD)’. Advise this group on the various ways in which the program can be executed.
3. Suppose that you are the advertising executive of a major advertising company in Nairobi.
Your client has approached you to advice her on how to go about the advertising budget for a
new toothpaste she wants to launch in Uganda in a few weeks time. Advise her on the basic
factors or issues she should consider in setting the advertising budget for the new toothpaste.
4. Why should a company hire an outside agency rather than produce all its ads in an ‘in house
agency’ which is less expensive?
5. How may a company evaluate the effectiveness of its advertising
6. What factors are likely to determine the level of a company’s advertising budget? How
should that budget be constructed?
7. Firms spend large sums of money on advertising; how can they justify such expenditure?
8. Examine the role of advertising as an element in the overall communication mix.
9. “The money spent on advertising of banking services would be better spent on improving the
product.” Discuss
10. Discuss the advantages and disadvantages of various advertising media.
11. Discuss the advantages and disadvantages of the following advertising appeals:
 Rational appeals
 Sexual appeals
 Fear appeals
12. Develop two print ads for the Transport Licensing Board targeting reckless drivers and
passengers with objective of reducing road accidents and overloading. Use any of the
advertising appeals discussed in this chapter to develop the ad.
13. Identify three TV, three billboards and three print ads that use sex appeal. Identify which of
the five ways sexuality is used as discussed in this chapter. List ten countries where a
marketer may not be able to use these kinds of ads because of religion, culture or government
regulations. Suggest what the marketer can do in these situations.