Advertising

&
Brand Management
 Advertising
1st Session – 2nd Feb 2014
 Origin
• The word advertising has its origin from
a Latin word ‘advertire’ which means to
turn to.

• The dictionary meaning of the word is

‘to announce publicly or to give public
notice.’
 What is Advertising?

"Advertising is any paid form of non-

personal communication, which is
persuasive in nature about products,
services or ideas by identified sponsors
through various media."
 Non-Personal
• Advertising is a form of mass
communication, So it is non-
personal.
 Paid Communication
• Advertising is a paid form of
communication.

• The time and space of some forms

of advertising, such as public service
announcements (PSAs) are donated
by the media.
Persuasive Communication
• Advertising tries to persuade or
influence the consumer to purchase
something.

• Although in some cases the point of

the message is simply to make
consumers aware of the product or
company.
 Sponsor
• The advertisement will be given by an
identified sponsor.
– Eg.
• Manufacturer
• Retailer
• Wholesaler
• Government
• NGO
• Corporates etc
 Media
• The message is conveyed through many
different kinds of mass media reaching a
large audience of potential consumers.
– Print
– Radio
– Television
– Digital Media
– Outdoor Media
– Transit Advertising
 Transit Advertising
• Transit advertising is the mounting of advertising
material (Branding) on a mobile medium with
view of reaching a wide audience in different
market areas.

• This is more effective as compared to other

mediums like billboards which are static.

Exterior Side Panel - Advertising on the sides of a

bus is a popular way to reach pedestrians on the
sidewalk and other vehicles in traffic. Side panel
adverts are great at attracting the attention of
potential customers especially at the bus stops or
on the road.
 Transit Advertising
• Exterior Rear Side (Back Branding) - A well
designed advert mounted at the back of the bus is
clearly visible to the vehicles following the bus or
pedestrians on the sidewalk.
• Full Wrap (Whole bus Branding) - The advert is
wrapped all over the bus using vinyl or by
painting. This is a moving billboard with a much
larger audience and costs less than a billboard.
• Interior Advertising - The adverts inside transit
buses are ideal marketing opportunity for
business. The adverts are placed at highly visible
places.
 How Advertising Works??
• The job of ads is remembrance
• Influence the purchase decision
• Planning is the most crucial part
• Hammering is essential for advertising
effectiveness
 Functions of Advertising
• As a tool of marketing
• As a means of communication
 Marketing Tool
• It is used as a tool for selling the
products, ideas and services of the
identified sponsor i.e. advertiser,
through non-personal intermediaries
or media.
• It supplements the voice and
personality of the individual
salesman.
 Communication
• It informs the prospective buyers and users
about the product and the producer.

• It thus, serves as a communication link

between the producer and the prospective
buyers who are interested in seeking the
information.

• Surely, advertising may be taken as the most

efficient means of reaching people with
product information.
 Audiences for Advertising

• Household Consumers
• Business Organizations
• The Trade Channel
• Professionals
• Government
 Types of Advertising
• The basis of classification can be diverse:
– Geographical Spread
– Target Group
– Political Advertising
– Financial Advertising
– Public Relations Advertising
 Geographical Spread
• National Advertising: Some manufacturers
may think that their target is, the entire
country. They select media with a countryside
base.
• Generally large, established firms belong to
this category. Among them are Unilever
Pakistan, Nestle Pakistan, P&G, etc.
 Geographical Spread
• Local Advertising: Small firms may like to
restrict their business to State or regional
level. Some firms first localize their
marketing efforts and once success has been
achieved, they spread out to wider horizons.
 Geographical Spread
• Global Advertising: Multinational firms
treat the world as their market. Firms such
as National IBM or Sony or Ford advertise
globally, e.g., in periodicals like Times,
Readers Digest etc.
 Target Group
• Consumer Advertising: A very substantial
portion of total advertising is directed to
buyers of consumer products who purchase
them either for their own use or for their
households.
• This type of ad is also called brand
advertising
 Industrial Advertising
• Industrial advertising on the other hand
refers to those advertisements which are
issued by the manufacturers/distributors
to the buyers of industrial products.
• Eg: Tractors
Cement
Refineries
 Trade Advertising
• Advertisements, which are directed by
the manufacturers to the distribution
channel members, such as
wholesalers or retailers, are called
trade advertising.
• The objective of such advertising is’ to
promote sales by motivating the
distribution channel members to stock
more or to attract new retail outlets.
Red Gold was introduced in late 2012

A new 4-color foodservice trade

ad in support of ready to
serve Redpack Tomato Products.

The ad appears regularly in the

national trade publications.
 Professional Advertising
• There are certain products for which the
consumers themselves are not responsible
for the buying choice.

• The classic examples are pharmaceuticals

where the decision is made by doctors while
the consumers are the patient.

• Eg: Glucose Meters

 Political Advertising
As most of the political advertising is directed
to public, it comes under the category of
public relations advertising. Political
advertising is created either by political
parties or candidates.

Mostly we come across such advertising at the

time of elections. Election advertising either
lists the achievements of the party of
candidate or propagates their ideological
basis.
 Financial Advertising
• When public limited companies’
invite the general public to subscribe
to the share capital of the company, it
is called financial advertising.

• In a broader sense, it includes all

advertising by financial industry such
as banks, car loan companies,
insurance companies, non-banking
financial companies etc.
 Directory Advertising
• The best known form of directory
advertising is the Yellow Pages,
although many different kinds of
directories perform the same
function.
 Direct-Response Advertising
• Direct-response advertising can use any
advertising medium, including direct mail, but
the message is different from that of national
and retail advertising in that it tries to stimulate
a sale directly.

• The consumer can respond by telephone or

mail, and the product is delivered directly to
the consumer by mail or some other carrier.
 Business-to-Business
Advertising
• Business-to-business advertising includes
messages directed at retailers, wholesalers,
and distributors, as well as industrial
purchasers and professionals such as lawyers
and physicians.

• Advertisers-place most business advertising

in business publications or professional
journals.
 Institutional Advertising
• Institutional advertising is also called
corporate advertising.

• These messages focus on establishing a

corporate identity or winning the public to the
organization’s point of view.

• Designed to enhance a company’s image

rather than promote a particular product
 Interactive Advertising
• Interactive advertising is delivered to individual
consumers who have access to a computer and
the Internet.
• Advertisements are delivered via Web pages,
banner ads, and so forth. In this instance, the
consumer can respond to the ad, modify it,
expand it, or ignore it.
Public Relations Advertising
(PRA)
Organizations these days are concerned with
the type of image they project they have to
communicate their objectives to the
general public.
They also have to Intake the public
understand what their activities are. Public
relations, in short, try to build rapport with
various constituents of public such as
employees, customers, local authorities,
pressure groups, vendors, customers,
shareholders, government and public at
large.
 Public Relations Documentary of
K&N’s

Watch Video:

http://www.kandns.com/TheKandNsWay-video.htm
 Other Types
• Informative Advertising
• Persuasive Advertising
• Reminder Advertising
• Celebrity Testimonial
• Co-operative Advertising
• Retail Advertising
What is an Advertising Agency?
• An advertising agency or ad agency or advert agency is a
service based business dedicated to creating, planning,
and handling advertising (and sometimes other forms
of promotion) for its clients.

• An agency can also handle

overall marketing and branding strategies and sales
promotions for its clients.

• Agencies may be hired to produce television

commercials, radio commercials, Online
Advertising, Mobile Advertising , print advertising as part
of an advertising campaign.
Types of Advertising Agencies
• Full service agencies
• Creative agencies
• Specialized agencies
• In-house advertising agencies
• Digital agencies (formerly known as interactive
agencies or new media agencies)
• Search engine agencies (known as SEO agencies)
• Social media agencies
• Healthcare communications agencies
• Medical education agencies
 Types of Advertising Agencies

• Full Service Agencies:

These agencies are involved in planning, creating, producing
advertisements, performing research and selecting media.

Some full service agencies also provide non-advertising related services

including strategic market planning, direct market promotion programs,
interactive marketing and web site design, and public relations.

• Creative Agencies:
Creative agencies specialize in "creative" or design-based business
models and are also known as a "creative boutique". Their basic interest
is in the creation of the advertisement or branding.

The client who chooses to use a design only based advertising agency
must assume some of the advertising purchasing. These are activities
that are routinely handled by an agency with a media buying option.
 Types of Advertising Agencies

• Specialized agencies:
These agencies specialized in a particular activity of the whole
communication process. They may specialize in certain
functions (copy, art, media), audiences (minority youth) or
industries (health, computers) or in a marketing
communication area (direct marketing, sales promotion,
public relation). These type of agencies may serve one client
only.

• In-house advertising agencies:

An In-House agency is a team within a company that focuses
on selling the company's product; they will handle all aspects
of the brand.
 Types of Advertising Agencies

• Digital agencies (formerly known as interactive agencies or

new media agencies):

Interactive agencies offers a mix of web design / web development, search

engine marketing, internet advertising, or e-business/e-
commerce consulting, AR Advertising.

They provide specialized advertising services for the digital space [Internet,
kiosks, CD-ROMs, DVDs, lifestyle devices (iPod, PSP, and mobile)].

They deliver services such as strategy, creative, design, video, development,

programming (Flash and otherwise), deployment, management, and
reporting.

There are 4 elements for digital media - Digital media Planning, Social
Media, Web design and applications and Digital PR.
 Types of Advertising Agencies

• Search engine agencies (known as SEO agencies):

Lately, pay per click (PPC) and search engine optimization (SEO)

firms have been classified by some as "agencies" because they
create media and implement media purchases of text-based (or
image-based, in some instances of search marketing) ads.

This relatively young industry has been slow to adopt the term
"agency", however with the creation of ads (either text or
image) and media purchases (largely for PPC and contextual
advertising), these search agencies are technically known as
advertising or media agencies.
 Types of Advertising Agencies

• Social media agencies:

Social media agencies specialize in promotion of brands in the
various social media platforms like blogs, social networking
sites, Q&A sites, discussion forums, and micro blogs. The three
key services of social media agencies are:
- Social media marketing
- Online reputation management

• Healthcare communications agencies:

Specialized in strategic communications and marketing services
for the Healthcare and Life Science industries.

These agencies distinguish themselves through an

understanding of the strict labeling and marketing guidelines
mandated by the U.S. Food and Drug Administration (FDA) and
industry group guidelines.
 Types of Advertising Agencies

• Medical education agencies:

Medical education agencies specialize in creating

educational content for the healthcare and life science
industries.

These agencies typically specialize in one of two areas:

- Promotional education – education and training materials

tied to the promotion of a given product or therapy

- Continuing medical education – accredited education and

training materials created for continuing physician and
medical professional education