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Rs
Advertising and the
marketing function
|Mian Co-operative Store
MAIN CO-0PERATIVE STORE
Near Sports olfice
MC. University ol Sargodha
20 SEP 2019
HISTERSItÝ OF SARGODHA 0309-6021199,0312-0922222
OKAFo-DVERISING
X1. Introduction
Marketing
the firfal
is more than just
distribyting from the manufacturer
and the customer. It comprises all the stagesgoods
between creation of the product to
after-market
advertising. which follows the eventual
The stages are sale. One of
one of Me links is like links.in a chain, and
the
these stages is
weak.
other stage, or link, and eachAdvertising is therefore as chain willbreak if
The or service itself,dpends on the othier for importart'as every.
tion; areproduct
all reflected in' its, naming, packaging,
success.
pricing
an organisatíon,
Without advertising, which has been called theand distribuof
fo the
distributors or sellersadverti_ing, the products or services lifeblood
and on'to:the çonsumers or users. cannot low
: so A.successful national economy
thát factory production is depends on
spending powër, and the maintairied, advertisingpromoting
people' sales
are employed and have
stóps there is a recession. money goes round and round. When tüs
advertising does its job,InSimilarly,
Third prosperous countries are those
process
are poop and World countries and in Russia, inwhich
advertising is
the population are young minimal, especially when a large economie's
non-earniers: proportion of
Early forms
Adverti_ing belongs to the modern industrlal
.which are,d eveloping and bcoming world, and to those countries
shopkeeper stall-holder had only to show
by,
or industrialised. In the past when 'a
advertising we it
äs
ing were 'signa such äsknow
and shout his goods to pås_ers
the iYin today hardly existèd. Early
sign, the forms of advertis
red-aDd-white' striped barber's pol.
extent of advertising marks

DEFINITIONS

6. Marketing
marketing as: h
The (British) Chartered Institute of Marketing defines satistyiy
management' process responsible for,identifying, anticipating and
customer requirements profitably'.
7. Analysis
From this definiion it is ear that odern maiketing is based on the conce.
people are likely to buy.
of producing and selling at a profit whatcamcorders
Sometimes, as with new products like and hoDe compùter
it is necèssary to anticipate what the market will accept. There is a diferenc
4
 VERTISNG-ANO THEMAASTANGHNCTION

therefore, between a marketing-orintated company and a sales-orientated

company. The latter seeks to'sellwhat it has produced, without first identi
fying, anticipaing and consequently _atisfying cuetomer requirements.)
In developing countris the cohceplöf 'marketing' is often misunderstood
and wrongly applied to-what is in.fact 'selling'. In such countries there is a
seller's market for imported, assembled or male-under-licernce products which
may have satisfied the original home, m¡rkets but have not been designed
for an identified buyer's market. Few foreign motor-cars, for instance, are
specially designed to satisfy overseas markets, and they are advertised and
sold, not marketed. Cradually, however, this situation is changing as mar
keting research is introducèd and indigenous industry develops:
The.Japanese were very clever marketrs when they first introduced
motor-cars like Datsuns to Britain. They exported mnotor-cars which wereof
'a shape that was,familiar to British motorists. The first Datsun to arrive in
Britain in 1969 looked remarkably like the Ford Cortinas. That was good
marketing
8. Advertising
The Institute of Practitioners in Advertising defiiition says, 'advertising
pre_ents the most persuasive possible selling message to the tight prospects
for the product or service at the lowest possible cost';.

9. Analysis
Here wehaye acönbinätion of creativity,marketing resèarch and economic
media buying. Advrtising may cost a lot of morney but that cost is justified
if it works effectively and economícally. Agood advertising campaign is
one which is plarned and conducted so that it achieves the desired results
withín an acceptable budget. Many advertising campaigns cost nillions of
pounds, but that is relative to the size of the arket'and the.volume of sales
required to maintain constant output,of a factory'a production capacity;
whether it be a detergent or a motor-car.

COSTS

10. Who pays fo, advertising?

In Seriticisns of advertising costs were mentioned .and in 9referernce was
made to economic dvertising. Where doesthe mioney-come from to pay fot
advertising, is its cost jistified, and would prices fall if advertising ceased?
These questions can be answered as follow..
(a) The cOst of advertising is met in the price paid by the consumer, and is
butone of the marny costs' e.g. those, arising from research and development,.
ADVERTISING

raw materials, manufacture and distribution, which have to be recovered

before a proit cun-be made-Adverticing is one of. the- dástribuhon costs
which include-salesmen,-delivery, and retail profit. It is therefore an
investmient. If the product falls, the. manufacturer has to pay all the costs
including advertising. Normally, however, it is the cansumer who pays for
advertising.
(b) The cost of advertising is theréfore justiied in two ways: it enables the
consumer to enjoy the product (and, where there is competition betweeD
rival products, to have a choice), and it also enables the manufacturer or
supplier to enjoy a proit.
(c) Generally, prices fallas advertising increase_ demánd. If advertising
were to be stopped demand wòuld also fall off. Either the product would
fail to sell, or the price would have -to be increased as it would be mnore
costly to produce and distribute asnratter quantity
fatiskai conteat
-11. Advertising expenditure figures
The total annualexpenditure on advertising in the UK is just under £12 bn
at current prices; at constantprices, just under £10bn. This is according to
the Advertising Association's Advertising Statistics Yearbook.
To the above must be added further expenditure on
below-the-line'
media, i.e: direct mail, exhibitions, sales literature and other forms of advertia
ing, plus sales promotion. Reliable figures for these items are not
anda realistic grand total is not possible, except that about available
spent on direct mail and £700 million 'on exhibitions and £530 million is
The figures in Table 1.1 reveal the shows.
Therecession hit advertising but dóminance of press advertising.
by the continuing growth of nevertheless people have to at, as seen
been heavy with nany new supermarket chains,and food
food products being launched.advertising has
Table 1.2 signify this. The igures in

Tabl 1.1

£ million
Press %
TV 6,413 60.60
Outdoor
Radio
and ransport 3,333
426
31.50
4.00
Cinema
344.
73
3.25
Totals 0.65

Source: Advertising Statlstics £10,589 100.00

Yearbook, The Advertising Asoclatlon 1996
6
 1"ADVERTISING AND THE MARKETING FUNCTION
Table 1:2 Adspends of selected food brands 1992/93
£000s
Allinson wholemeal bread 1,190
Anchor butter 2,420
Batchelor's Cup-a-Soup 3,000
Birds Eye Steakhouse beefburgers. 1,110
Helímari's light mayonnaise 1,950
Homepride sauces 2,040
McVitie's Hobnobs 260
Kellogg's Pop Tarts 4,380
-Nescafé-Cappuccine- 2,840
Pringles snacks 1,510.
Wall's Cornetto 1,410

'ADVERTISING AND THE MARKETING MIX

12. The marketing mix/
To contimue with the acount of the relationship betweeri advertising and
the marketing fünction, the approach taken to the marketing mix will nÍ
be th» conventional one; but is less academic and more in line with what
actually happens in. the marketing world. It is designed as a chronological
sequence of actions.

13.-Definition
The riarketing miz,or the markettng strategy, is the combination of stages or
elements necessary to the planning and execution of the total marketing
operation. It should not be confused with the product mix which is the range
of products or services a company may market, such as a range of cakes,
biscuits and confectionery. Nor _hould it be confused, with the media mix
which is the range of advertising media that may be used in an advertising
campaign, ég. national newspapers, women's nagåzines, posters and com
m¹rcial television.

14. Four Ps
The (Four Ps concept of.the.marketing mix, as intjpduced.by E. Jerome
McCarthy, developed by Philip Kotier, and wËdely ådopted, by marketirg
téachers,creates four.divisions of the mix, namely, Product, Place, Price and
Promotion. Advertising comes under Promotion, but'sU does Publicity which
is the American authors' rarrow interpretation of public relations. The fault
with this oversimpliication is that àt destroys the sequential linking of the
7
 ADVERTISING

nmeauselemnentsafsthesnixAdzertisingis-divarcadfrom
elemènts to which it ls
related,
under different headings.
'P'
anumber-of
e.g. price arnd
distribution potwhich are
The 'Four Ps' concept is a handy,
elementary version of the marketing mix,
but its apparent simplicity is misleading
below in 15. and a more logjcal mix is given
As willbe stated.in the next chapter on
the advertising department, the.
appointment of an advertising agency should be
made as early as
so that it may advise on early
stages of the. mix such as branding, possible
product
image, pricing, and
keting people turn topackaging. Unfortunaely,
advertising with a
this rarely happens and mar
an ideal advertising ready-made product which is not
proposition.
15. Alogical marketing mix
A more sensible presentation of the mix -is to
finish a t the end. In this way advertising can bestart at the beginning and
associated with other ele
ments. Although not every product or service will
the following is an' omibus marketing mix of 21 include, very element,
elrnents.
(a) Conception, invention, innovation or mnodification of
This includes reseårch and product or service.
development.
(b)· The standard product life cycle and its
recycled, leapfrog andstaircase versions (seevariations,
e.g. the continuous,
Figures 1.2-1.6).
(c). Marketing research.
(d) Naming and branding.
(e) Creation and promotion of
product image.
() Market segmentation.
(g) Pricing.
(h) Prodåct mix, rationalisation and standardisation.
(i) Packaging.
(j) Distribution.
(k) Sales force operations.
( Market educatibn.
(ri) Corporate and financial public relations.
(n).Industrial relations.
(o) Test marketinig.

8
 1--ADVERTISING-AND THE MARKETING FUNCTION

Development Introduction Growth Maturity Saturation Decline

Figure 1.2 Standard product life cycle

IntroductiÍn ContinuoUs overall growth

Figure 1.3 Continuous proguct life cýcle

Introduction Growth Maturity: Decline Revival Maturity Decline.

Figure 1.4 Recycled' product life cycle

Model A Model B
Figuré 1.5 Leapfrog effect product life,cycle
 ADVERTISING
Maretuse D
Market æse C
<Markt use B
Market use A

Figure 1.6 Staircase effect prodüct life cycle

(p) Advertising
(q) Advertising research.
(r) Sales promotion
(s) The after-market.
() Maintaíning customer interest and loyalty.
(u) On-going PR activity.
16. Advertising involvement
Although advertising is listed a[ a single element it is associated with almost
every other element, borrowing from them or interpreting them.
(a) The volume, emphasis and timing of advertising will, depend on the
product life cycle situation. For instance, at the introductory or recycling
stages, the 'weight of advertising will be heavier than at the maturity or
decline stages.
(b)" Marketing research will provide evidence of motives, preferences and
attitudes which will influence not only the copy platforim or advertisng
therne but the choice of mediathrough whiçh to expre_s it
() Naming and branding may be initiated by the advertising department
or agency, and clearly plays an impartant role in
.adertisement design.
. (d) The product image will be
projected'b÷ advertising.and. PR..
(e) The market-segment-will decide the:tone or 'style of
choice of media. advertising, and te
(() Pricing can play an important part in thà appal 1oF the copy. Is the-'
product'value, for mony, a bargain or. a luxury? Pricing can be a ven
competitive sales
legislation preventsargument,
the People
control of are very
prices, price conscious.
indications of likely orEven thoug
"list' prices
can be important aspects of
advertising appeals.
10
 1ADVERTISINGAND T&E MAKKETING FUNGIION

product
(g) The product mix has many applications. -In advertising, one separate
may. be assoçiated with anther, or.each brand, may require a.
campaign.
(h) Packaging is a vital aspect ofadvertisihg, as when pack recogrütion is.
point-of-sale, as in.
sought. It is itself a fórm ofadvertising, especiallyat the
a supemárket.when the package often has to identify the product
and
literally sell it off the shelf.
Increasingly. Eco-labelling will be looked for as proof that a product is
environimentally friendly. There are schemes in many countries for approv
ing products. so that they may carry E marks.
(6) Distribution involves trade advertising such as-direct-mail, in the trade
press arnd at exhibitions.
(;) The sales force has to be familiarised with advertising campaigswhich
will support their efforts in the ield.
() Marketeducahion is a piblic relations activity aimed at creating a favour
able market situation in which advertising will work.
(1) Corporate and financial public relations often uses institutional advertis
ing in the business press. The corporate image may be the theme of institu
tional advertising.
(m)Test marketing requiresa miniature advertising campaign simnulating
the future national campaign.
(n) Advertising research /ncludes copy-testing, circulation and readership
surveys and statistics, recall tests, tracking studies and cost-per-réply and
cost-per-conversion-to-sales figures.
(o) Sales promotion can augment or even replace traditional adverising.
. (p) The after-market calls' for adverti_ing to make customers aware of
post-sales services.
(q). The maintenance of customer interest and loyalty ma÷ be achieved
by ádvertising which promotes additional uses and accessories, or simply
reminds.
(r) On-going publiç relations activities help to bridge gaps between advert
ising campaigns, arnd help to maintain long-term bränd recógnítion.
The, markèting 1mix described aböye is. trçe.of industrialised countries,
but even, then 'varies-in application. between North America and Europe
because of geographic, -social, political and ethnic, considerations: There
are also subtle differences between iNorth AmericaH/European marketing
'situationsand those of Japan.For example; Japanese advertising places more
:-emphasis on promoting the name rather than the qualities of the produt.
.11
mula: Visibility, Identity, noticed. The identity of the adVerbser.or.
easily either ton :
must be visible, thatis, be obyious and not hidden by too cleve
product orservice, must must be made
presentation or bad design.
The offer (the promise)
concentrate onits cleat.;y.
purpose
this the advertiserhent should
To achieveall
say too. many different things.
trying to
not be confusing by

21. yalue of simplicity that is remnembered is the git.

An advertisement can be so clever that- allnot.the advertiser, the produ
interestinig-piçturè,
mick orperhaps'a very most brilliant advértísing campaigns was baaede
or the offer. One ofthe Please": with itsdouble meaning, the custoe
the simple sayingPlayers thoae two words when buying
cigarettes. Cee
being encourajged to i_e
but not noticeablyso! studied'in detail, but are glanged at,
Advertisemrnts are not always
on television 'or heard on the radio very brietly.
in passing, or seen
imessage must have instant impact.

14
 |MionCo-onerative Store
e208EP 2014
UNIVKSITY OFSARGODHA
0305-6021199 0 5 , )
1 AVERTISING AND THE MARKETING FUNCTION
22. Changing attitudes
The gbjectpf adverti_ing is
to persuade people to buy usually
to change or ínfuernce attitudes. lt aims
product A instead of product B, or to prornote
the habit'of continuing to buy' product A.(they are unlikely to buy both
product Aand product B). For example
a simple selling pYoposition ha_ to be in the case of anew ball-point pen,
converted into the idea that the pen
makes arn ideal gift or award. This principle
for Parker pens which contrasts with that forcan be seen in the adyertising
sale display .advertising and the packing of theTempo,
first in
including point-of
a presentation case
and the second on a dispenser card.
Today, nany products, services plus causes and
ised whieh would not have been acceptable or evensocial issues, are advert
years ago. The prime examples have been the official'permissible
camnpain
not many
to edicate
people about AIDS, ànd the commercial campaigrns for, condoms. There
have also 'been environmental' canpaigns (ofteH 'using direct mail) for
Greenpeace and Friends of the Earth:
There is also a more intellectual attitude towards
some people are prepared to pay higher prices for purer,manyproducts
and
healthier or safer
-ones. With threats to the ozone layer and with fears about pollution, there
has bèen the 'green'campaign,:but-sadly a number of. manufacturers and
retailers have exploited this issue. The Advertising Standards Authority has
published warnings about this. See also 18:38, A Shade Less Green.

23. Inducing.action
The exariple abov shows that advertising is not just concerned with'giving
information. It must do so in'such ani interesting, oriinal; characteristic and
persuasive way-that-the'consumer is urged to take action. This action inay
be to il in a, coupon, telephone an enquiry or order, go to a shop, or
remember, the product next time heor she needs to buy, say, a drink, a car,.
aholiday, or an insurance policy. In thecase of the ball-point pen, advertis
ing can help thebuyer to iake the appropriate purchase,
24. Communication barriers'
IIreaders, listeners or viewer_ misunderstand the advertising message, the:
carmpaign ís a waste of time and money. The ease with wich people mis.
tunderstaDd has been discovered during marketing rgseatch surveys. People
who wer asked. whether they 'owned a car ofteni said 'no' if they drove a
company car. Similarly,when asked whether they owned ahouse they said
'no' if they were buying one with abuilding society, or bank loan. In advert
ising, we have to be çareful, not to set up unintëritional communication
barriers. We may know what we mean - but do other people? We must
never ássume -that popl know what we are talking about, and this is
15
 different from reading the instructions on a package, which
fish. This is very vital.
slowly, although'dlarity is still copy, but most
is done more carefully and
on writing advertisement large,display
A lot-of time may be spent
quick impression from the
réaders are 'glancers' and get ainterest mÍre
Only if these display lines them do they.stop. to read the
the more
lines. Consequently, the shorter the copy
detailed copy in smaller type: - provided, of corse, that it is
message be conveyed
likely will a cortect
written without ambiguities.

26. Words and pictutes e-g.

quickly is to use a jingle or slogan,
One way to convey à message Another solution is a picture,
'British Airways Takes Good Care of You accompanied by a picture of a
e.g. the British Airways slogan is usually
girl has-become synonymous with
Smiling BA air hostess. The Singapore
Singapore Airlines.
used in television advertisements
Both forms (of expression have been
whích have established catch-pBrases such as-the Aeelwich'_ 'm with the.
saying, American Express? Thatll do
Woolwich'; the American Express campaign'slogan,'Do, tnore'. Anpther, which
hicely, sir'; and the more recent years, isAh, Bisto! with the two children
has survived for mor than forty
of the gravy.
sriffing the aromacommuication.depends,very often on a merging of words
" Thus, effective
1.8.
and pictures, as indicated in Figurelever
Madern advertising makes very use of words. For instance, a typ
is to use words in,an ingenious way so that the reader is challenged
içal, use Examples are:
to stop and think about the meaning.
Quick-Fit fitter' (car exhaust itting service).
'You can't get better than a
do-it-yourself supplies).
"Al this wöod from one bränch (Do-it-all It has a cigar
"Admittedly the Audi S2 differs rom its rally counterpart.
lighter.'
. Finish Thirst' (Lucozade).

27. Problems of press advertising

Messags ar said to be more readily.seen than heard, and visual messages
effort of reading. This
hay greater impact. than those which equire th

Ve~ba! - Nog-vèrbal
Meaning syimböls
syrbols
"words pictures
Figurë 1.8 Interaction of words and'pictures to,convey meaning
17
 ADVERTISING

tends to make written and read intornation thÇ hardest to accept and recal.
tpiestha-pregs=edeertising tastoovezcoMeariyProbTemsre6peialy
in multi-ethnic societies orwhere there .is a low level of iteracy. Yet the
muli.
Press remain_ one of the' most effective advertising media. There are
·adverising media in
On Crculation newspapers'which are pimaryliteracy-grows,Nigeria
neNorth,:while the press expands. in the Southas
under
being an excellent example. The nature of prss advertising is bestbenefts
stood wherit is renembared that it is a static medium, lacking the
colour.
of sound and movement and often'without the impact and realism of
rad again.:
It has theadvantage that the message. can be retained and

28. Advertising skills

How are these problerns of press advertising overcome; and why doesmess the
press reMain sucha dominant means of commuricating advertising
ages? These questions form the themes of later chapters about copywriting.
layout and press media, but in this introductory chapter here are two simpl
answers. First, creative skills are used to make jpress advertising làrger than
ife, e-g: big type, slogans, size of space, dramatic pictures Second, niews
papers aAd magazines reach either massor speciaist readerships relatively.
cheaply and efficiently."

29. Heart of advertising

These two reasons piovide an insight into the heart of advértising and the
special skills involved. Creativity to attract' and win the attention, the interest
and eventually the action of consumers, and the most'cost-effetive chojce
and use of innumerable media, are the.characteristics of succssful advertis
ing. All this calls fot interaction between the three sides of advertising: the
adverti_er, the advertising agency and the media owner.

30. Importance of ideas

The skills necessary in press advertising a<so apply to other media such as
radio, television, outdoor, direct mail,
exhibitions, point-of-sale display and.
sales literature. Ideas are needed in order to communicate marketing m¹ss.
ages, and biying and planning skills arë required'to
media 'efféctively. Çampaigns have to be planned exploit
and
communication
battles. They are a blend of strategy- and executed as.sales
resources.
31. Reconsideration of definition
This brings us back to
a.reconsideration of the definition in 8: 'adyertisu
presents the most persuasive possible selling message to the right'prospeca
18
 FAUVERTSINO-ND

Marketing
planning.

Adverti[ing strategy

creative Media

|Advertising
campalgns
and media, the two essential
Figure 1.9 Advertising: creativity
requirements for,effective campaigns
service at the lowest possible cost'. These two require
for the product or remembered
and the best use of media - should be
merits creativity
the study of this subject, and the
throughout the reading of this book, Figure 1:9.)
practice of advertising itself. (See

32. Changesand developments changes and developments in advert

and 1990s have seen mote
The 1980s from the.
Apart
previous 200 years.tränsformation
occurred during the of
ising than had newspaper production, and the of
technological changes in
under thé Broadcasting Act 1990, the advent
British radið and, telvision London a more important advertising
has made
the single European marketBerkeley Square has replaced Madison Avenue. This
centre.than New YoLk. for continental
become the advertisiig springboard
is beause London has adyert
Európe. European coimpanries. whihuse otherUnilever.
There are, of course, many Buitoni, Beneton ahd ieven
to inention only BMW, Amêricarn.
ising centres, par-European advertising'agencies - often those.of
But foriany premierbase. three-fold.
"origin -London is the advantages 'are.
However, LondorD's marketing communication.:
lariguage is the langúage.of
(a) The English making of television .comimercials,
expertise;especially in
.

the
(b) Creatiye ényy of Furope,
which is the 19
 Mars Confectionery
10.
Source A.C Nielsen Media International
,

CAMPAIGN
BASICS OF AN ADVERTISING
Acampaign should followa five-point plan:
given sales
(1)What exactly is to be achieved? Do we aim to achieve, say, a
target?
(2) When is this to be achieved?,This week - over the year? -
(3) What is the strategy? Will the extra sales.cöme from new or existing
custormers or by. switching customers from other brands?
(9) What tactics shall be used? What creative ideas and media?
(5) How much will this cost? It it a good investment?
20