Advertising as a communication tool final

1. Advertising as a communication tool

2. Communication Defined as passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between senders and receiver.

3. Communication Feedback Models Channel/Message Is the method which communication travels from the source or sender to the receiver Personal channels – direct interpersonal Non- personal channels – mass communications Decoding Process of transforming the sender’s message back into thought Influenced greatly by the receivers frame of reference (perceptions, attitudes and values)

4. Communication Feedback Models Source/Encoder Is the person or organisation that has information to share with another person or group. Encoding Leads to development of a message that contains the information of meaning the source hopes to convey.

5. Communication Feedback Models Receiver Is the person(s) with whom the sender shares thoughts of information. Noise External factors that create unplanned distortion Feedback Receivers respond by hearing, seeing orn reading Feedback is sent back to the sender

6. Mass markets and Audiences Market segments Niche markets Individual and group audiences

7. The FCB Planning Model

8. Implications 1. Delineate the series of steps potenial purchasers must be taken through 2. Potential buyers may be in different stages of the hierarchy creating problems. 3. Useful for promotional planners

9. Summary Aim: to improve the way your brand is positioned in the consumer’s mind thereby giving you a better return on your advertising dollar by: 1 Deciding on the degree of involvement 2 Deciding on the degree of thinking/feeling experienced by the consumer prior to purchasing 3 Place your brand on the Grid 4 Plot your competitors (cluster or not?) 5 Is the current strategy right or need improving? 6 Player with the best position wins!

10. The FCB Grid

11. The FCB Grid

12. The Model of Cognitive Response

13. The IMC Model The theory of Integrated Marketing Communications (IMC) elegantly explains the relationships of marketing and branding (Schultz et al., 1996)

14. Integrated Marketing Communications (IMC) IMC is the organization, planning, and monitoring of marketing components and data to control and influence brand information, associations, and experiences. The goal is to incubate profitable relationships and dialog with patients and other groups. This is typically measured by internal and external surveys, focus groups, managerial accounting, trend analyses, referral indices, etc.

15. Marketing Communications (MC) This is an umbrella term for all communication avenues available for conveying marketing messages. These include advertising, public relations, sales promotions, direct response marketing, events, sponsorships, point-of-purchase materials, packaging, trade shows, customer service, and personal sales. MC is measured as the proportion of marketing dollars assigned to each avenue and the marketing return on investment (MROI) for each.

16. Integrated Marketing Communications (IMC)

17. The IMC Model The IMC Model “IMC builds the relationships that build brands.” (Duncan, 2002). It is impossible to talk about IMC without talking about brand. That is because brand building relies on creation and nurturing of profitable relationships to meet objectives, which is the goal of all IMC processes. IMC devises strategies to use MCs to create and build brand To over come the shortcomings of the Hierarchy of Effects model, professors, Shultz, Tannerbaum and Lauterborn devised the IMC model.

18. The Elaboration Likelihood Model (ELM) Addresses the differences in the way consumers process and respond to persuasive messages. High and Low elaboration when it comes to information processing

19. The ELM model

20. Summarizing the response process Individual responses to advertising are mediated or filtered by factors such as motivation ability to process information Advertising should be evaluated using three dimensions Product category Stage of life-cycle Target audience Competition Impact of marketing mix components

21. Summary IMC is based on basic (persuasive) communication theory Understanding consumer response Allows communication objectives to be set by considering response models.

22. Value of Objectives Communication – Objectives facilitate coordination of various groups working on the campaign Planning and Decision Making – Specific promotional objectives also guide the development of IMC plan. Measurement and Evaluation of Results – Objectives act as a benchmark for success or failure of the campaign and can be measured

23. Comparison of Marketing And Communication Objectives Marketing • Sales volume • Market share • ROI • Profit Communication • Market segments the company wants to target • The products FAB • The companies and competitors brands. • Ideas on how the brand should be positioned

24. A framework for studying how advertising works

25. Sales versus Communication Objectives To many companies the goal is SALES • Companies have increased pressure to make agencies more accountable for their performance. • Some have developed ROI information • Sales decline is not attributed to less advertising spend • May be due to other marketing mix variables

26. DAGMAR: Defining Advertising Goals for Measured Advertising Results 1. Awareness – making the consumer aware of the existence of the brand 2. Comprehension – developing and understanding of what the product is and what it will doe for the consumer 3. Conviction – developing a mental disposition in the consumer to buy the product. 4. Action – getting the consumer to purchase product

27. Consumers The institutions of Advertising Management Advertiser Media Advertisement

28. Thank you