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PRINCIPLES OF ADVERTISING LECTURES PART 2

Presentation · September 2016

DOI: 10.13140/RG.2.2.11018.29121

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PRINCIPLES OF
ADVERTISING
Part 2: Creativity in
Advertising and
Advertising Media
LECTURES 6 - 11
by
Zane Asher Green
 PRINCIPLES OF
ADVERTISING

LECTURE 6
The Creative Aspect of
Advertising
Creative Concepts or Creativity in
Advertising
Creative specialists are finding it more and
moredifficult to come up with
big ideas that will break through
the clutter and still satisfy the concerns of
risk-adverse clients (clients who do
not want to take any creative
risks). Yet, their clients continually challenge
them to find the creative message
that will strike a responsive
chord with the target audience.

2
 CREATIVE CONCEPTS OR CREATIVITY IN
ADVERTISING
James Webb Young’s Creative Process

A Technique for producing Ideas

Get raw material and data, and
Immersion
immerse yourself in the problem

Take the information, work it over,

Digestion
wrestle with it in your mind

Turn the information over to the

Incubation
subconscious to do the work

Illumination A-HA EFFECT (EUREKA)

Study the idea, evaluate it,

Verification
reshape it for practical usefulness
3
CREATIVE CONCEPTS OR CREATIVITY IN
ADVERTISING
Lateral Thinking
Lateral thinking is the ability to use your
imagination to look at a problem in a fresh
way and come up with a new solution.
Without lateral thinking, companies can’t
innovate and create new products – they’re
just stuck with doing the same old thing,
perhaps more efficiently than before, but they
won’t be able to lead the way.
Any company that wants to stay ahead of
the competition needs to recruit graduates
who are capable of lateral thinking.
4
 Characteristics of a Power Idea
Taken from the Universal Advertising Standards developed by the former
D’Arcy, Masius Benton & Bowles agency
Power ideas often become the central theme of the
advertising message and the basis around which the
campaign is planned and executed.

Likely to
Describable in
attract the
a simple word
prospect’s
or phrase
attention

Lets
prospects Revolves
vividly around the
experience clinching
the goods benefit
Allows you to
brand/describe
the advertising
 The Only Rule in Advertising

Numerous guidelines have

been developed for creating
effective advertising, but
there are no rules, no
formulas, no “right way.”
Given the same problem,
a dozen creative talents
would solve it a dozen
different ways.
If there were a secret
There are no rules formula for successful
advertising, everyone
would use it. Then
there’d be no need for
creative people.
CREATIVE CONCEPTS OR CREATIVITY IN
ADVERTISING
Storytelling
The most attention-getting ads are
those that actually tell a short story,
featuring characters having some sort
of a problem that can only be resolved
by the product or service being
promoted.

Stories can create emotional

journeys that make us want
to act….

7
 DEVELOPMENT IN CREATIVE STRATEGY
what the advertising
A creative strategy focuses on
message will say or communicate and guide the
development of all messages used in advertising
campaign. Following are the major approaches to creative
strategy development:

USP Approach
Brand Image Approach
Inherent Drama Approach
Positioning Approach

Group Task: List examples of Ads based on these approaches

of creative strategy development
8
DEVELOPMENT IN CREATIVE STRATEGY
USP Approach

Unique Selling Proposition

Benefit Unique Strong

Buy this Must be unique to this Promise must be

product/service and brand or claim; strong enough or
you get this benefit something rivals can't attractive enough to
or reward or don't offer move people

9
DEVELOPMENT IN CREATIVE STRATEGY

Brand Image Approach

Creates a favorable mental picture
of a product or firm in the minds
of consumers.
This image aims to associate the
advertised product and/or firm with
certain lifestyles or values. Its three
basic functions are to:
1. Increase consumer awareness,
2. Convert the awareness into
familiarity, and
3. Use the familiarity to influence
consumer buying behavior.

10
DEVELOPMENT IN CREATIVE STRATEGY

Inherent/Inbuilt Drama Approach

Inherent Messages are generally

Drama presented in a warm,
emotional way

Focus on consumer benefits

with an emphasis on the
dramatic element in
expressing them

If you don’t use

this, then……
11
DEVELOPMENT IN CREATIVE STRATEGY

Establish a particular place in

Positioning the customer’s mind for the
product or service

Positioning Based on product attributes/

Approach benefits, price/quality, use or
application, type of user,
type of problem solved

With this approach, advertising is used to establish a

particular place in the customer’s mind for the product
or service. This can be done on the basis of product/service
attributes or benefits, price/quality, use or application, type
of user or the ability to solve a problem. 12
DEVELOPMENT IN CREATIVE STRATEGY

To attract the attention of

consumers
Advertising
Appeals
To influence consumer feelings
towards a product,
service or cause

The way an appeal is turned

into an advertising message
Execution
Style

The way the message is

presented to the consumer
13
 Types of Informational/Rational Appeals
Rational appeals focus on the consumer’s practical,
functional, or utilitarian need for using the product or
service. These messages emphasize the features of the
product or services and/or benefits or reasons for owning or
using a particular brand

Feature: Focus on dominant traits/characteristics of

the product

Competitive: Makes comparisons to other brands

Price: Makes price offer the dominant/main point

News: News announcement about the product

Popularity: Stresses the brand’s popularity

14
 A Rational Appeal

The ad suggests that the

bar provides consumers
with the power they need
to do the activities they
love. It informs them that
the Advantage Bar
contains 90% less sugar
and 70% more protein and
fiber than its rival,
PowerBar.
The ad focuses on the
consumer’s practical,
functional, or utilitarian
need for the product.

15
 Emotional Appeals

Appealing to Personal States or Feelings

Safety Sorrow, Grief
Security Pride
Fear Achievement
Love Accomplishment
Self-esteem
Affection
Embarrassment
Happiness, Joy
Self-actualization
Nostalgia or
Pleasure
Reminiscence
Ambition
Sentiment
Comfort
Excitement

16
 Appealing to Social-Based Feelings

Approval Affiliation

Acceptance Embarrass-
ment

Status Social-Based Belonging

Feelings

Respect Involvement

Rejection Recognition

Emotional Appeals
17
 Transformational Ads

Feelings Images
The ads
create . . .
Meanings Beliefs

Richer Warmer
It must make
the product use
More experience . . . More
Exciting Enjoyable

Transformational advertising can differentiate a

product or service by making the consumption
experience more enjoyable and/or meaningful.
18
 Creative Execution Styles
A number of ways in which creative specialists can
present the advertising message:
Straight sell Animation

Scientific/Technical Personality Symbol

Demonstration Imagery

Comparison Dramatization

Testimonial Humor

Slice of life Combinations

Group Task: List examples of Ads using these execution styles

19
 Straight Sell or Factual Image

A straightforward presentation of information about a product or

service. This type of execution is often used with
informational/rational appeals, where the focus of the message is
the product or service and its specific attributes and/or
benefits. 20
Mentadent Uses a Demonstration Ad

Demonstration advertising is
designed to illustrate the key
advantages of a product or
service by showing it in actual
use or in some staged
situation.

Mentadent Replenishing
White toothpaste uses the
demonstration technique to
show how the brand’s Liquid
Calcium technology replaces
the surface enamel to whiten
teeth and guard against
stains.
21
 Slice-of-Life Execution
• Slice-of-life is a widely used
advertising format generally
based on a
problem/solution
approach.
• Slice-of-life ads are
irritating, as they remind
consumers of a personal
nature, such as dandruff,
bad breath, body odor, and
laundry problems.
• With a slice-of-death
advertising, the slice-of-
Listerine used a slice-of- life ad is used in
life commercial to conjunction with a fear
introduce a new Natural appeal. The focus is on the
Citrus flavor of the popular negative consequences
mouthwash. that result from not using
the product or service.
22
 Animation
Rotoscoping is an
animation technique in
which animators trace
over footage, frame by
frame, for use in live-
action and animated films.
Originally, recorded live-
action film images were
projected onto a frosted
glass panel and re-drawn
by an animator.
Animation is an advertising technique that has become
popular in recent years, especially for commercials targeted
to children. Some advertisers have also begun to mix
animation with real people, as in the ad where Michael
Jordan and Bugs Bunny trounced a foursome on the
basketball court.
23
 Personality Symbol

Personality
figures can
also be
animated
characters and
animals

Duracell bunny
Advertising execution that
involves developing a central
character or personality symbol
that can deliver the advertising
message and with which the
product or service can be
identified.
24
 Imagery Advertising

1. These advertisements
use imagery executions
whereby the ad consists
primarily of visual
elements such as
pictures, illustrations,
and/or symbols
rather than
information.
2. An imagery execution is
used when the goal is to
encourage consumers
to associate the
brand with the
A print ad for Jeep, which symbols, characters,
associates the Jeep Wrangler and/or situation
with images of the outdoors shown in the ad.
and adventure.
25
 Print Advertising Copy Elements

Headline
Words in the Leading Position of the Ad

Subheads
Smaller Than the Headline, Larger Than the Copy

Body Copy
The Main Text Portion of a Print Ad

Visual Elements
Illustrations Such As Drawings or Photos

Layout
How Elements Are Blended Into a Finished Ad

26
 TV Advertising Copy Elements

Audio
Dialogue, monologue, voices, music and sound effects

Video (Visual Elements)

Graphics, actors, models, scene setting, lights, action

Radio Advertising Copy Elements

Audio (Theatre of the mind)

Dialogue, monologue, voices, music and sound effects

Individual Task: Harvesting – Reflect on what you learnt today

27
PRINCIPLES OF
ADVERTISING

LECTURE 7
Advertising Production
 Advertising Production

Production is what happens

between the time an ad idea has
been approved and the time it
finally appears in its proper
medium, i.e., print, broadcast,
Internet, etc.

2
 Print Advertising Production
Print advertising includes sales brochures, coupons,
fliers, business cards, billboards and ads in
magazines and newspapers. The print advertising
production process involves the following elements:
Copy Elements
1. The copy or text must communicate in clear,
concise and focused language.
2. Start with a headline that grabs the reader's attention,
sparks interest in your product and conveys your
message concisely. Potential customers have only
seconds to read your billboard.
3. Even in brochures or catalogs, keep body copy brief
and on point. Include the company signature ---
your identifying slogan and/or logo. Use fonts
(typefaces) that support or match with your
message and are easy to read.
3
 Print Advertising Production
Graphic Elements
1. Photography, illustration and logo symbols
(like Nike's swoosh raise interest in any ad).
2. Integrate these graphic elements with your
headline and copy for maximum effect.
3. A study by Texas State University showed that
more attention goes to pictures than words and
human models get the most attention in
magazine ads. This indicates the value of using
models that match or appeal to your target
audience to create an immediate connection
between your product or service and your
potential customer.
4. Inconsistency between your headline and your
illustration will confuse the viewer and reduce
the ad's impact.
4
 Print Advertising Production
Color vs. B&W
1. Color printing costs more than black and white.
2. Full-color printing uses four inks and four runs
through the press for each page.
3. Two-color printing is a cheaper color option,
appropriate for some applications like
newsletters and visiting cards.
Layout
1. The layout is the way you put all the elements
together to create the final ad.
2. Your layout needs a 1. focal point --- usually the
picture or headline --- for readers' eyes to land
on, 2. then the white space, 3. graphic and 4.
text elements should lead them through the copy
to the 5. company signature.
3. Make the final layout match the ad's ultimate
printed appearance in every detail. 5
 Print Advertising Production
Size and Shape
1. Newspaper and magazine placement fees are based
on ad size.
2. The exact dimensions may vary by publication, but
are priced as fractions of a page (half page or
quarter page, column by cm).
3. Special locations, like the back cover, cost more.
4. Use appropriate size and shape of ad, linked to
purpose and corporate image, for non-publication
print advertising like brochures, inserts or fliers.
Paper and Ink
For print ads other than in magazines or newspapers,
choose paper with a composition, weight and finish
that contributes positively to your advertising image.
Traditional inks contain volatile organic compounds;
consider using soy-based inks if they will give the result
you want. 6
 Print Advertising Production
Placement
1. Where you place your print advertising affects its
success. An auto parts dealer will get more
response running his ad in an automotive
magazine or classified section than in a fashion
magazine.
2. Direct mail solicitations generate leads more
effectively than magazine ads do.

7
 TV Advertising Production
Planning the Commercial
The various elements of a TV commercial are brought together
in a SCRIPT, which is a written version of a commercial
providing a detailed description of its video and audio content.
1. AUDIO COMPONENTS
• Copy to be spoken by the voices
• Music
• Sound effects
2. VIDEO COMPONENTS
• Camera Shots and angles: Extreme close-up,
Close-up, Medium shot, Long shot, Pan, Zoom, etc.
• Scenes
• Transitions
The script shows how the video corresponds to the audio
portion of the commercial.

Once the basic script has been developed, the writer and
art director produce a STORYBOARD.
8
 TV Advertising Production
Planning the Commercial
1. The STORYBOARD contains still drawings of the
video scenes and descriptions of the audio that
accompanies each scene. Like a print layout, the
storyboard provides those involved in the ad
production and its approval a fair idea as to how
the final commercial will look like.
2. In some cases, an ANIMATIC (a videotape of the
storyboard along with the soundtrack) may be
produced if a more finished form of the
commercial is needed for client presentations
or pretesting.

9
TV Advertising Production

COLOURED STORYBOARD

10
 TV Advertising Production
Production Stages for TV Commercials
Once the storyboard or animatic of a
commercial is approved by the client, the
next step is production. Following are the
three stages of the production process:

All work before actual

Preproduction
shooting, recording

Period of filming, taping, or

Production
recording

Work after spot is filmed or

Postproduction recorded
 TV Advertising Production
Preproduction Tasks

Select a director

Choose
Preproduction
production
meeting
company

Preproduction
Production
timetable Bidding /
• Set construction Tenders
• Location
• Agency and
client approvals Cost estimation
• Casting and timing
• Wardrobes
 TV Advertising Production
Production Tasks

Production

Location
Timing (Night Talent
(outdoors, set
or weekends) arrangements
design)
 TV Advertising Production
Postproduction Tasks
Editing: Cut, dissolve, Processing: quality-
superimpose graphics or text improvement image processing, 3D
over a shot, voiceover, Rendering, CODECS

Release/ Sound
shipping effects
Postproduction
Audio/video
Duplicating
mixing

Approvals Opticals/SF/X
These are the final activities to be completed prior to the
release of the commercial.
 Radio Advertising Production
Script
• Begin with an attention-grabbing statement. It's crucial
to stand out as quickly as possible in radio advertising.
• Creating a mix of emotional factors and logical
requests is the most effective way to draw listeners.
• Do not over-complicate your commercial time.
• Make a compelling offer that causes listeners to consider
your product.
• Include the answer to "What's in it for me?" Listeners
want to know why they should try your product.

Find a voice-over talent

• Radio voices tend to have lower tones and can be
described as rich and full.
• Some radio commercials use voice-over artists with
high-pitched, loud voices in order to garner the most
attention.
 Radio Advertising Production
Set up studio time
• Record your commercial in a rented studio for the
best possible production value, crystal clear voice
quality.

Edit the ad
• Cut it down to your allotted time.
• If you have a 60-second commercial slot, your
commercial should be 60 seconds long.
• Add sound elements to enhance the scene.
 Internet Advertising Production
• Advertising production on the internet follows the same
process as print and broadcast advertising, i.e., the
advertising concept results from research, planning and
creative collaboration.
• Interactive advertising is one part creativity, one part
technology and one part business.
• The graphic designer, programmer and copywriter work
together to produce the Internet advertisement.
Web Development Guidelines
1. Design goes beyond just the aesthetics. Yes, you want a website
to be visually attractive, but you must also bear in mind that a
website is not a work of fine art. In all cases, avoid VAMPIRE
CREATIVITY.
2. The images should be interesting, unique, and high quality
3. Is the color scheme attractive and eye-catching?
4. Text includes the use for messaging as well as the
descriptions, instructions, and labels
5. How smoothly and easily can people navigate through your
website?
 Internet Advertising Production
Web Development Guidelines
6. Always design a second version of the website for
smartphones that is more or less the same as that to be
viewed on monitor screens.
7. Leave ample white space to avoid visual fatigue and give
the site a neat clean look. And remember less is always
more. So don’t overcrowd the design.
8. Use web safe fonts like Ariel, Verdana, Tahoma, Georgia,
etc.
9. Encourage interaction by offering customer a means for
posting comments, questions or complaints as well as
immediately receive additional information.
10.The website should work in the same way as a trade show
exhibit, enhancing corporate image, generating leads,
and enabling direct sales through online ordering.
11.Register website on major search engines.
12.Draw attention to your site by holding contests and
giveaways.
13.The URL must always be promoted in other media.
 PRINCIPLES OF
ADVERTISING

LECTURE 8
Advertising Media
Planning and Selection
 Media Planning
Media Planning entails seeking answers to a set of questions by
the advertiser:

QUESTION ANSWER
Who do we want to communicate Target Audience
with?
Who are these people? Markets
How many people to reach? Reach
How many times? Frequency
Which media? Media selection (TV)
Which vehicles? Vehicle selection (AAJ TV, PTV,
BBC, etc.)
Which month and what time of Scheduling
the day?

2
 Media Planning

Media A series of decisions involving the delivery

Planning of messages to audiences

Media Goals to be attained by the media strategy

Objectives and program

Media Decisions on how the media objectives can

Strategy be attained

Various categories of delivery systems,

Media
including broadcast and print media

Broadcast Either radio or television network or local

Media station broadcasts
 Media Planning

Print Publications, such as newspapers,

Media magazines, direct mail, outdoor, etc.

Media The specific carrier within a medium

Vehicle category

Number of different audience members

Reach
exposed at least once in a time period

The potential of audience that might

Coverage
receive the message through the vehicle

Number of times the receiver is exposed to

Frequency
the media vehicle in a time period
 Developing the Media Plan

Situation Marketing Creative

analysis strategy plan strategy plan

Setting media objectives

Determining media strategy

Selecting broad media classes

Selecting media within class

Media use decision Media use decision Media use decision

— broadcast — print — other media
 Developing the Media Plan

The Situation Analysis

Purpose: To understand the marketing problem.
An analysis is made of a company and its
competitors on the basis of:
1. Size and share of the total market.
2. Sales history, costs, and profits.
3. Distribution practices.
4. Methods of selling.
5. Use of advertising.
6. Identification of prospects.
7. Nature of the product.
 Developing the Media Plan

The Marketing Strategy Plan

Purpose: To plan activities that will solve one or more of
the marketing problems. Includes the determination of:
1. Marketing objectives.
2. Product and spending strategy.
3. Distribution strategy.
4. Which elements of the marketing mix are to be used.
5. Identification of “best” market segments.
 Developing the Media Plan

The Creative Strategy Plan

Purpose: To determine what to communicate
through advertisements. It includes the determination
of:
1. How product can meet consumer needs.
2. How product will be positioned in advertisements.
3. Copy themes.
4. Specific objectives of each advertisement.
5. Number and sizes of advertisements.
 Developing the Media Plan

Setting Media Objectives

Purpose: To translate marketing objectives and
strategies into media objectives to be
accomplished.

Determining Media Strategy

Purpose: To translate media objectives into general
guidelines or strategies that will determine the
media planner’s selection and use of media. The
best strategy alternatives should be selected.

Selecting Broad Media Classes

Purpose: To determine which broad class of media
best fulfills the criteria. Involves comparison and
selection of broad media classes such as newspapers,
magazines, radio, television, and others. The analysis is
called intermedia comparisons. Audience size is
one of the major factors used in comparing the various
media classes.
 Developing the Media Plan

Selecting Media within Classes

Purpose: To compare and select the best media within
broad classes, again using predetermined criteria. Involves
making decisions about the following:
1. If magazines were recommended, then which magazines?
2. If television was recommended, then
• Broadcast or cable television?
• Network or spot television?
• If network, which program(s)?
• If spot, which markets?
3. If radio or newspapers were recommended, then which
markets shall be used?
 Developing the Media Plan
Media use decisions— broadcast
1. What kind of sponsorship (sole, shared, participating, or
other)?
2. What levels of reach and frequency will be required?
3. Scheduling: On which days and months are commercials to
appear?
4. Placement of spots: In programs or between programs?
Media use decisions— print
1. Number of ads to appear and on which days and months.
2. Placements of ads: Any preferred position within media?
3. Special treatment: Gatefolds, bleeds, color, etc.
4. Desired reach or frequency levels.

Media use decisions— other media

1. Billboards
• Location of markets and plan of distribution.
• Kinds of outdoor boards to be used.
2. Direct mail or other media: Decisions related to those
media.
 Target Audience Coverage

Population excluding target market

Target market
Media coverage
Media overexposure

Target Full Partial Coverage

Market Market Market Exceeding
Proportion Coverage Coverage Market

Optimal goal leaving some some coverage

customers may be wasted
without
exposure
 Three Scheduling Methods
Continuous pattern of advertising; every day, every week, or every month.
Most suitable for appropriate with food products, household products and
products consumed on an ongoing basis

Continuity
Intermittent periods of
advertising and no
advertising. For seasonal Flighting
products or those that are
consumed during certain
periods

Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Combination of the first two; continuity is maintained but at
certain periods advertising is increased. These experience little
sales variation from period to period, but might see some increase
in certain times such as cold beverages in the hot summer months
 Reach and Frequency

A. Reach of One Program B. Reach of Two Programs

total audience reached by two programs

total audience reached by one program (including duplicated reach)

C. Duplicated Reach of Both D. Unduplicated Reach of Both

duplicated reach only (those total reach less

that were exposed more than duplication (exposed only
once) once)
Determining Relative Cost of Print Media

Cost per thousand (CPM)

Cost of ad space
CPM = (absolute cost) X 1,000
Circulation

The overall objective of the

advertiser is to deliver the
message to the target audience
at the lowest rate with the least
waste.
 Media Buying

Media buying differs from

“earned” or “owned” media. It
falls into the “paid” media
category and plays an essential
role in marketing. Media buying is
the acquisition of media real
estate for the most
advantageous spaces and
timeslots.
Purchasable media options span
from newspaper ads to prime
time TV slots to online banner
ads.
 Media Buying

There are three integral aspects of the media buying process:

1. Networking: Media purchasers must be able to develop

and nurture relationships with important channel
owners. Airtime is not unlimited and in order to get the
optimal spaces, it is important to know the right
people.
2. Investigation: Find the latest, greatest, and most
appropriate venues for placing clients’ ads. Keeping up
on the media trends is an essential task when it comes to
media buying.
3. Negotiation: Media buyers should not only be able to
negotiate fair prices for the media slots. But also find
deals or extras to profit clients.
PRINCIPLES OF
ADVERTISING
LECTURE 9
Direct Marketing /
Direct Response
Advertising
 Direct Marketing

The total of activities by which the seller directs efforts to a

target audience using one or more media for the purpose of
soliciting a response by phone, mail, or personal
visit from a prospect or customer

TV Selling
Radio

Direct Mail
Telemarketing

Direct Selling Magazine and Newspaper

Direct Marketing Combines With . . .

Advertising

Public
Internet Relations

Direct
Marketing
Support Personal
Media Selling
Sales
Promotions
 Growth of Direct Marketing

Direct marketing is one of the fastest growing forms of

promotion in terms of dollar expenditures. A number of
factors have led to this extraordinary growth. They include:
1. Consumer credit cards, which make it easy for
consumers to purchase.
2. Direct-marketing syndicates/groups that specialize in
list development.
3. The changing structure of American society and the
market. We are a money-rich, time-poor society. We
have more disposable income, but the increased
popularity of physical fitness, do-it-yourself
repairs, and home entertainment have reduced the
time available for shopping.
4. Technological advances, that make it easier for
consumers to shop and for marketers to reach targeted
consumers through direct marketing.
5. Miscellaneous factors, including changing values,
more sophisticated marketing techniques, and the
DM’s improved image.
 Direct Response Advertising

Direct Response Media

Infomercials Telemarketing

Print, catalogs Broadcast

Teleshopping TV Spots

Home shopping Direct Mail

 A Direct Response Print Ad

Direct mail letters:

• Employ attention-
getting openings;
• Communicate product
benefits;
• Establish a personal
relationship by using
the receiver’s name in
the salutation, a real
person’s signature, a
friendly tone, and
you-oriented
language; and
• Close with a final pitch.
 Catalog Marketing

Guidelines for Designing Great Catalogs

1. Show the customer the lifestyle they can attain and
desire and you will sell more product.
2. The copy should not only describe the product in
sufficient detail that the consumer can make a
buying decision but it should tell the reader how this
item will help them achieve the lifestyle they want
(Targeting Lifestyles).
3. Tailor your catalog design to appeal to your audience.
A business-to-business catalog (B2B) should be
very different than a business-to-consumer (B2C)
catalog. Catalogs for young people will have a
different look than a catalog for older folks.
Make the style of your catalog match the style
desires of your audience.
 Catalog Marketing

Guidelines for Designing Great Catalogs

4. A rule of thumb in catalog design is the larger the
product photo the greater the product's sales. Then
support the product photo with compelling copy.
5. A great photo is "worth a thousand words" but a poor
photo can persuade a customer to not buy your product.
Don't risk it by economizing on good photography. It
would be better to show fewer products on fewer
pages to save on printing than to cut your sales with
poor photos.
6. Readers typically look to the top right first then sweep
across the page to the other side. If they don't see
something compelling they'll flip the page. Therefore put
your most appealing products (which are typically
your products that generate the most profit) on the
outside top corners.
 Catalog Marketing

Guidelines for Designing Great Catalogs

7. To keep a clean and consistent look use no more than 2 to
3 fonts throughout your catalog. Further, keep text
spacing and placement next to images consistent.
Use the same style of text consistently for common
elements like product name, product description, etc.
8. Once a successful look has been established resist
the urge to change for next issues. Repetition brings
brand identity recognition and brand recognition
brings acceptance and sales.
9. Formats such as a standard full-size, slim-jim or digest-
size catalog in whole signature page counts tend to be
the most economical catalog designs to print and
mail.
10.Printing in even signature page quantities, such as 16,
32, 48, 64, etc., will provide the most pages for the
dollar.
 Nonprofit Direct Marketing
Non-profits raise money with well-conceived Direct Mail
and Telemarketing programs geared to reaching the right
people with the right offer.
Guidelines for Successful Nonprofit Direct Marketing
1. Neuroscientists have observed in the lab that making a gift to
charity lights up a pleasure center in the human brain. A
good direct mail letter, therefore, “models” that act for the reader,
by suggesting it repeatedly. The reader begins to envision the gift,
and in envisioning starts to feel the pleasure.
2. “You” is the most important word. It is classed among the top
20 or so “power words” in advertising because of its magical
ability to raise more money.
3. Effective direct mail appeals aren’t really about how wonderful
the charity is. They are, instead, about how wonderful donors
are. Making donors feel important is Job #1. It’s called
“donor-centricity.” It’s exactly like “customer-centricity.”
4. You wear your heart on your sleeve. Sounding corporate or
technical will not raise as much money as sounding warm
and welcoming.
 Nonprofit Direct Marketing

Guidelines for Successful Nonprofit Direct Marketing

5. Researchers in fundraising have found that so-called
“social information” – such as how much others have
given – leads to bigger and more gifts from average
donors.
6. Use bullet lists and ultra-short paragraphs … because
they make it easier to skim or glance through quickly.
7. Good direct mail appeals have a few standard components.
They always have “entertainment value” (often a
story: “Let me take you into my world.”); that’s what keeps
people reading. They have multiple requests for a
gift. They have a conversational tone: the letter
signer talks directly to the letter recipient. The pronouns
“I” and “you” are abundantly present.
PRINCIPLES OF
ADVERTISING

LECTURE 10
Sales Promotion
The Role of Sales Promotion in Marketing
1. Marketers strive for the right promotional mix
(advertising, sales promotion, personal selling and
public relations) to make sure that the product is
well received in the market.
2. Sales promotion is an inducement, stimulus,
encouragement or incentive to the sales force,
distributors, or ultimate customer with the
primary objective of creating immediate sales.
There are three important aspects of sales
promotion:
• An extra incentive to buy, such as coupons,
rebates, etc. to provide an extra reason to
buy
• Acceleration tools to speed up sales
• Targeting different consumers or
businesses
 Sales Promotion & Promo Mix
The purpose of all marketing communications
(promotional mix) is to help the company
achieve its marketing objectives. Typical marketing
objectives include:
• Introducing new products;
• Inducing present customers to buy more;
• Maintaining sales in off-seasons;
• Obtaining greater shelf space; and
• Combating competition.
Some consider sales promotion as
supplementary, as it bridges the gap between
advertising and personal selling. In reality it is
much more than supplementary and has great
potential due to the following reasons:
 Sales Promotion & Promo Mix
1. Growing power of retailers. Manufacturers used to have
most of the power, now retailers through technology and
private labeling have more.
2. Declining brand loyalty. Consumers are purchasing more
on the basis of price and value.
3. Increased promotional sensitivity. Consumers want to
save money and respond well to promotions that provide
them the opportunity to do so.
4. Brand proliferation. Many new brands offer little
differentiation.
5. Fragmentation of consumer markets. Traditional mass
media advertising has become less effective and sales
promotion is a way to reach market segments.
6. Short-term focus. Sales promotion is seen as a way of
generating an immediate increase in sales.
7. Increased accountability. Managers are under pressure
to produce sales results.
8. Competition. Promotions are seen as way to gain a
competitive advantage.
9. Clutter. Sales Promotion offers can break through the
clutter and attract attention.
 Sales Promotion & Promo Mix
Sales Promotion Advertising Publicity Personal selling

Impersonal Impersonal Impersonal and Personal, as there is

Personal a presence of human
element. A
relationship is
developed between
the buyer and seller
Paid Form Paid Form Not paid by sponsor Paid Form

Message is in the Message is in the Message is to a Message is in the

hands of the sponsor hands of the great extent in the hands of the
sponsor hands of the media sponsor

Vehicles include: Mass media: Vehicles include: Salesperson,

contests, product newspaper, News, Speeches, company’s
samples, coupons, magazines, Events, Written representatives or
Materials,
sweepstakes, Internet, agents
Public Service
rebates, tie-ins, self- television, radio, Activities, etc.
liquidating billboards, etc.
premiums, trade
shows, trade-ins, and
exhibitions

One-way One-way Both one-way and Two-way

communication communication two-way communication
communication
depending on the
vehicle used
 Types of Sales Promotion

Consumer-Oriented Trade-Oriented
Samples Contests, incentives
Coupons Trade allowances
Premiums Point-of-purchase displays
Contests/sweepstakes Training programs
Refunds/rebates Trade shows
Bonus Packs Cooperative advertising
Price-off deals

Loyalty programs

Event marketing
Objectives of Consumer-Oriented Promotions

To increase
consumption of
an established
brand

To defend
To obtain trial (maintain)
and purchase Objectives current
customers

Enhance IMC
To target a
efforts and build
specific segment
brand equity

Brand equity is the value of carrying a

well-known brand name
 Sampling

Sampling Works Best When

The product can

The products be broken into a The purchase
are of small piece or cycle is
relatively low size that reflects relatively
unit value the full features short
and benefits
 Sampling Methods

Door-to-door

Methods Direct mail

In-store
On package

Event

Newspaper/magazine insert

Internet sites
Distributing Samples With Newspapers
Armor All Uses On-Package Samples
 Couponing

The Nearly
oldest and 240 billion
most widely used distributed each
sales promotion tool year in the US

85% of
consumers
use coupons;
21% use them regularly
Coupons are Most Often Used With…

Disposable Laundry
Cereal
Diapers Soap
 Types of Coupons
1. In/Outside Coupons: Placing coupons either inside or on
the outside of the package is a distribution method that
accounts for just over 1 percent of the coupons
distributed.
• Bounce-back coupons are redeemable for the next
purchase of same brand, and are an incentive to
repurchase the brand.
• Cross-ruff coupons are redeemable on the purchase
of a different product, usually by the same company
• Instant coupons are attached to the package so they
can be redeemed at the time of purchase of a
purchase
2. In-store coupons come in many forms and can be found in
various locations:
• Tear-off pads
• Handouts
• On-shelf
• Register printouts, based on products being
scanned for purchase.
 Premiums

1. A premium is an offer of an item, merchandise, or service,

either free or at a low cost, that is an extra incentive for
customers.
2. There are two basic types of premiums:
a. Free premiums are small gifts or merchandise that is
included in the product package. Free premiums are
popular in the fast food restaurant industry, and
companies like McDonalds and Burger King use
premiums in their kids meals to attract children.
b. Self-liquidating premiums require the customer to pay
for some or all of the cost of the premium item,
merchandise or service. Self-liquidating premiums are
designed, not necessarily to make money, but to cover
costs and offer value to the consumer.
Airline Miles are a Popular Incentive
 More Consumer-Oriented Promotions
1. Contests and sweepstakes are an increasingly popular consumer-
oriented promotion because they generate excitement among
consumers who have a “pot of gold” mentality.
2. Refunds, also known as rebates, are offers by the manufacturer to
return a portion of the product purchase price, usually after the
consumer supplies some proof of purchase. Consumers are
generally receptive to rebate offers, particularly as the size of the
savings increases. Rebates enhance the likelihood of repeat purchase of
the brand.
3. Bonus packs offer the consumer an extra amount of a product at
the regular price by providing larger containers or extra units.
4. Price-off deals simply reduce the price of the product, with the
reduction typically printed right on the packaging.
5. Loyalty programs are one of the fastest-growing areas of sales
promotion. They offer consumers the ability to accumulate points for
purchasing their products or services. The points can then be traded
for some sort of reward. Example: K&N, airlines, etc.
6. Event marketing is a type of promotion where a company or brand
is linked to an event or where a themed activity is developed
for the purpose of creating experiences for consumers and
promoting a product or service.
 Trade Oriented Promotions

Obtain distribution for new

products
Objectives
Maintain support for
established brands

Encourage display of
products
Build retail
inventories/merchandise
 Types of Trade Oriented Promotions

Contests and Incentives

1. Manufacturers may develop contests or special incentive programs
to stimulate greater selling effort and support from
resellers and sales personnel.
2. Manufacturers often sponsor contests for resellers and use
prizes such as trips or valuable merchandise as rewards for
meeting sales quotas or other goals.
3. Manufacturers often devise incentives or contests for sales
personnel. These programs may involve cash payments
made directly to the retailer’s or wholesaler’s sales staff to
encourage them to promote and sell a manufacturer’s
product. These payments are known as push money (pm)
or spiffs. For example, an appliance manufacturer
may pay a $25 spiff to retail sales personnel for
selling a certain model or size. In sales contests,
salespeople can win trips or valuable merchandise for
meeting certain goals established by the
manufacturer.
 Types of Trade Oriented Promotions

Trade Allowances
Buying Allowances
These discounts are often in the form of an off-invoice allowance,
percase amount or percentage
which means a certain
is deducted from the invoice. A buying allowance can
also take the form of free goods; the reseller gets extra
cases with the purchase of specific amounts (for
example, 1 free case with every 10 cases purchased).

Promotional Allowances
Manufacturers often give retailers allowances or discounts for
performing certain promotional activities in
support of their brands. These merchandising allowances
can be given for providing special displays away from the
product’s regular shelf position, running in-store promotional
programs, or including the product in an ad.
 Types of Trade Oriented Promotions

Trade Allowances
Slotting Allowances In recent years, retailers have been
a special allowance for agreeing to
demanding
handle a new product. Slotting allowances, also
called stocking allowances, introductory allowances, or
street money, are fees retailers charge for providing a
slot or position to accommodate the new product.

Buy-back Allowance
When introducing a new product,
manufacturing sometimes offer retailers a
buy-back allowance for the old product that
has not been sold.
 Types of Trade Oriented Promotions

Display and POP Materials

1. Point-of-purchase (POP) displays are an important
promotional tool because they can help a manufacturer
obtain more effective in-store
merchandising/selling of products.
2. These include end-of-aisle displays, banners,
posters, shelf cards, motion pieces, and stand-
up racks, among others.
3. Point-of-purchase displays are very important to
marketers since many consumers make their
purchase decisions in the store. In fact, some
studies estimate that nearly two-thirds of a
consumer’s buying decisions are made in a
retail store. Thus, it is very important for
marketers to get the attention of consumers, as
well as to communicate a sales or promotional
message, through POP displays.
 Types of Trade Oriented Promotions

Sales Training Programs

1. Another form of manufacturer-sponsored promotional
assistance is sales training programs for reseller personnel.
Many products sold at the retail level require knowledgeable
salespeople who can provide consumers with information about
the features, benefits, and advantages of various brands and models.
Cosmetics, appliances, computers, consumer electronics, and
sporting equipment are examples of products for which consumers
often rely on well-informed retail sales personnel for assistance.
2. Manufacturers provide sales training assistance to retail
salespeople by conducting classes or training sessions that
retail personnel can attend to increase their knowledge of a
product or a product line.
3. Another way manufacturers provide sales training assistance to retail
employees is through their own sales force. Sales reps educate
retail personnel about their product line and provide selling
tips and other relevant information.
4. Manufacturers also provide resellers detailed sales
manuals, product brochures, reference manuals, and
other material.
 Types of Trade Oriented Promotions

Trade Shows
1. Another important promotional activity targeted to resellers is
the trade show, a forum where manufacturers can
display their products to current as well as prospective
buyers.
2. A number of promotional functions can be performed at trade
shows, including demonstrating products, identifying
new prospects, gathering customer and
competitive information, and even writing orders
for a product.
3. Trade shows are particularly valuable for introducing new
products, because resellers are often looking for new
merchandise to stock.
4. Shows can also be a source of valuable leads to follow
up on through sales calls or direct marketing.
 Types of Trade Oriented Promotions

Cooperative Advertising
1. Here the cost of advertising is shared by more than
one party.
2. The most common form of cooperative advertising is the trade-
oriented form, vertical cooperative advertising, in which a
manufacturer pays for a portion of the advertising a
retailer runs to promote the manufacturer’s product and
its availability in the retailer’s place of business.
Manufacturers generally share the cost of advertising run by the
retailer on a percentage basis (usually 50/50) up to a certain
limit.
3. The amount of cooperative advertising the manufacturer pays for
is usually based on a percentage of dollar purchases. If a
retailer purchases $100,000 of product from a
manufacturer, it may receive 3 percent, or $3,000, in
cooperative advertising money.
PRINCIPLES OF
ADVERTISING

LECTURE 11
Internet Advertising
 The Internet
• The Internet officially began with the connection of two
computers in 1969, and now consists of over 1
billions users worldwide. What changed the Internet
the most was development of the World Wide Web, which
is the business component of the net.
• The first advertisements were introduced on the Web
via HotWired in 1994, in the form of banner ads.
• Growth of the Web and Web-based advertising continued
until 2000, when there was a “bust” and advertising
expenditures dropped by 25 percent.
• As the number of users of the Net continued to rise, a new
crop of advertisers came on board, including
many Fortune 100 companies.
• By 2006, advertising expenditures had exceeded $16.2
billion, with spending projected to reach $60.0 billion
by 2014.
2
 The Internet
Why the rapid adoption of the Internet?
No other medium, other than black-and-white
television, has been adopted as rapidly as the
Internet. Today an estimated 71 percent of households
in North America are connected. The reasons for this
phenomenon vary:
1. The general public has a desire for information,
control of that information, speed, and
convenience.
2. Businesses are looking for effective customer
targeting, and more direct feedback.
3. Technology has also contributed to adoption of
the Internet by facilitating high-speed access,
instituting security that increased confidence in
the medium, and two-way communication flow.

3
 Internet Communications Objectives

Create
Awareness
Gain Generate
Consideration Interest

Create Buzz
Objectives Disseminate
Information

Create an
Stimulate Trial Image
Create a Strong
Brand
 The Internet and IMC

Advertising

Sales Promotions
The Internet site
should be Personal Selling
integrated with:

Public Relations
Research studies have shown that by
integrating the Internet with other IMC
components, overall communication is
more effective. In addition, getting Direct Marketing
visitors to come to ones website may
require effective use of other IMC
program elements.
Internet Marketing Pros and Cons

Advantages

Target Marketing Sales Potential

Message Tailoring Creativity

Interactive Capabilities Exposure/Speed

Information Access Complement to IMC

 Internet Marketing Pros and Cons

Disadvantages

Measurement problems Privacy

Annoyance Poor reach

Clutter Irritation

Potential for deception

 E-commerce

1. E-commerce continues to grow at a very fast

pace.
2. Walmart.com, the online sales channel for Wal-
Mart, recorded over 500 million visitors and
$1.17 billion in sales in 2005, and expected a 40
percent increase in visitors in 2006.
3. Circuit City allows customers to order online and
pick up merchandise at the store.
4. Amazon and eBay have Internet sites only.
5. The huge growth of E-commerce is expected to
continue, in both business-to-business
and consumer markets.
Ebay is a Popular E-Commerce Site
 Web Advertising
A well designed Website
To attract visitors to the site and have them return to it
requires a combination of creativity, effective marketing,
and continual updating of the site.

Huggies website goes well beyond providing information.

• The site has additional objectives, such as developing a long-term
relationship with parents, establishing a brand image for the
products, and supporting sales.
• The HUGGIES Baby Network provides expectant mothers with
encouragement and ideas as to how to be happy and healthy.
• The site also provides information to be used once the baby has
been born, including how to create a nursery, games to play
with the baby, and more.
• The site is designed to develop one-on-one relationships by
offering useful information and product samples to anyone
who sends in his or her name, address, and e-mail address.

10
 Web Advertising
Hot Websites
Adweek magazine publishes a Web site Hot List, which lists
the top sites and what makes them effective. For instance:
1. Facebook has 16.5 million unique visitors per month who
spend an average of 67 minutes on the site.
2. MySpace attracts the 18 to 25 demographic and has over
60 million unique visitors per month.
3. YouTube is the leading user-generated video site with
over 50 million unique visitors per month.
4. TMZ.com offers real-time Hollywood celebrity gossip.
5. Disney.com is an innovative, interactive site for both kids
and parents
6. Veoh is a diverse virtual community of independent
publishers.
7. Funny or Die is a comedy-video Web site that combines
user-generated content with original, exclusive content.
8. Discovery.com brings viewers engaging stories and
extraordinary experiences from around the world.

11
 Web Advertising

Snapple attempts to use the Web to generate interest in their site

as well as in their product. Snapple, in its attempt to attract
visitors and hold their interest, has created a fun site with many
places to visit while learning about Snapple product. An
information center, games, product information, sales items, and
even an opportunity to personalize the site are all available.
12
 Web Advertising
Many Web sites are
designed to reflect the
image a company
wants to portray.
This slide shows the
consumer website
www.akademiks.com
which is an excellent
example of a website
used for image
building.
Not all companies
have been successful
in creating a brand
image on the Internet.
Branding and
image-creating
strategies must be
specifically adapted
to this medium. Which other website goes well beyond
providing information and how so?
13
 Web Advertising
ADVANTAGES
1. Web advertising can expand awareness of your company and
bring in an entirely new set of potential customers.
Individuals who never set foot in your retail location may
be passionate online shoppers who would enjoy shopping
on your website.
2. You can offer online discount coupons to encourage your
in-store customers to visit your website, resulting in
additional sales.
3. Using an effective pay per click campaign or effective
search methods, your company website can draw visitors
from around the globe -- or you can keep it local if you
prefer.
4. If your business has a limited marketing budget, web
advertising offers several free or low-cost means of
marketing.
5. If you need help, you can search online for a web designer and
writer to help you create attractive and interesting web
pages.
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 Web Advertising
6. You can look for free online classified advertising sites
and online business directories in which you can
place a listing. Email advertising can also be relatively
inexpensive depending on how many subscribers you want
to reach.
DISADVANTAGES
1. Search engine marketing can consume a lot of time and
effort.
2. Social media is free but may not lead much traffic to
your site. Paid advertising, such as banner ads and pop-
ups, can be expensive, and may be more suited to larger
companies, such as national banking chains and vehicle
manufacturers.
3. Web surfers often find web advertising annoying and click
away or simply ignore it.
4. While all this new technology that drives efficiency is exciting,
without sound strategy and design, you'll simply be wasting
your money. Therefore, one needs expert insight.
15
 Web Advertising

Various forms of advertising that can be done on the Internet

include:
1. Banners—the most common form of ads that appear on
web pages, they appear as side panels, skyscrapers, or
verticals
2. Sponsorships—companies pay to sponsor a section of
the site, or the sponsor provides dollars in return for name
association and also provides content
3. Pop-Ups/Pop-Unders—ads that appear underneath the
Web page and become visible only when the user leaves
the site
4. Interstitials—ads that appear on the screen while you
are waiting for the site’s content to download (Site
loaders).
5. Links—a link to a different site that provides related or
similar information or materials

16
 Web Advertising

6. Paid Search—the fastest growing form of advertising on

the Internet; advertisers pay only when a consumer clicks
on an ad or link from a search engine page
7. Behavioral Targeting—based on the targeting of
consumers according to their web-surfing behaviors
8. Contextual Ads—ads based on the content of the
website on which they appear
9. Rich Media—a broad range of interactive digital media
that exhibit dynamic motion through video, audio, and
animation
10.Blogs—a regularly updated website or web page,
typically one run by an individual or small group, that is
written in an informal or conversational style.

17
 Internet Directory Advertising
1. As a local business, attracting new customers can be a major
challenge. Quickly disappearing are the days when people go to
the Yellow Pages to find local businesses. Today, people are
turning to the internet as a way to find trusted business
recommendations. One way local businesses can get found
is through inclusion in online directories.
2. Yellow Pages directories have made a smooth transition into
Internet advertising.
3. Yellow pages also offer links to other webpages and search
engines and enable consumers to conduct business
transactions, such as orders for merchandise, restaurant
reservations, or service requests.
4. Local business directories for local listing include: Google,
Bing, Yahoo, Yelp, Better business Bureau, Whitepages, etc.

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View publication stats

Internet Customer Service

1. Internet makes customer service more immediately and
constantly available (24/7/365) through online chatting,
discussion forums, email support, FAQs, online query
forms (Internet users who send online queries to
customer service departments generally receive
response via the Internet).
2. A company may provide new product introduction
via internet, including product demonstrations that may
be downloaded by the customers.
3. Trade show and seminar schedules may be disseminated to
customers online.
4. Electronic tracking systems can help determine the
status of customer shipment (Ex: TCS).

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