Advertising is a vital tool in a communication mix. The chapter explains the importance, role of advertisement,techniques used in advertisement, media selections and finally elaborated the role of advertising agency. The advertising process can be end-up by an advertising agency.They are one who specialized in the mass area of this advertising in marketing. It generate the basic knowledge and awareness of the advertising and advertising agency.

1. Advertising Techniques and Role of
Advertising Agencies
Chapter- 03
Thivyaashani Sivasubramaniam
BBA(Hon),PGEDBM,DEF,CBF
Assistant lecturer, Department of Economics and Business
Studies,
Vavuniya Campus, University of Jaffna.

2. Objectives
To understand the Concept of Advertising
To understand about Advertising Media
To understand about Advertising Management and Advertising
Agencies

3. Man more often needs to be reminded rather than informed. (Dr Samuel Johnson)
Advertising is fundamentally persuasion and persuasion happens to be not a science,
but an art.(Bill Bernbach, Doyle Dane Bernbach agency)
Advertising draws a straight line from the manufacturer to the consumer.(‘Blue
Book’ definition, J. Walter Thompson agency, 1909)
You can’t have good advertising for a bad product. (Marcel Bleustein-Blanchet,
founder of the Publicis agency, France, 1926)
Advertising

4. The Concept Of Advertising
Mass communication is a process by which the message is transmitted to a large
group of individuals heterogeneous in nature, at about the same point in time.
The companies, especially those in consumer product markets, have to manage
various problems that face mass communication.
Advertising requires that mass communication should be focused and targeted, thus
problems of mass communication require control to achieve effective message
coverage.
Advertising must be managed and targeted when reaching out the large audience
groups.

5. Controllable Factors In Using Advertising
In using advertising through the mass media, certain elements of it have to be controlled to
achieve coverage effectiveness.
These elements are:
1. The need to reach various market segments.
2. The selection of appropriate communication media to reach target segments.
3. The design of persuasive messages for groups instead of an individual.
4. The delay in response that may occur when communicating with large groups.

6. ADVERTISING DEFINED – as any paid form of non-personal presentation and promotion of
goods, services or ideas by an identified sponsor.
NATIONAL ADVERTISING – it is advertising done by a manufacturer of industrial or consumer
products that are distributed on a national or regional basis.
LOCAL ADVERTISING – this form of advertising is restricted in geographical coverage, it
usually covers a city or metropolitan area with its message targeted at local retailers.
THE ADVERTISER – the advertiser is the organization or person that initiates an advertisement
and pays its cost. The advertisement must receive the final approval of the advertiser before its
publication or broadcast can occur legally

7. ADVERTISING AGENCIES – advertising agencies create and implement
national or local advertisements; they serve as middlemen between an advertiser
(the producer or source of the message) and the media vehicles, such as
newspapers, magazine, radio and television stations. They are a collection of
specialists engaged in the planning, creating and placing or advertising through
media.
They are specialized organizations which use audio visual aids to stimulate
human instincts and needs, so that consumers are favourably disposed to buying
the advertiser’s goods and services.

8. Strengths and Weaknesses of Advertising
Strengths of Advertising
1. It presents a set of controlled messages.
2. It has the ability to expose large groups of prospects as a low per prospect cost.
3. It can reach prospects that sales person cannot.
4. It helps to resell a product.
5. It can help to introduce a new product quickly.

9. Weaknesses Of Advertising
1. Advertisements are at the mercy of the media vehicles in regards to timing.
2. Reinforcement of the message can only be achieved through repetition which tends to increase cost
of advertisement.
3. The advertisement or messages is set and cannot adjust to the prospects reactions or answer his
objections to the product or service.
4. People do not believe fully the claims made for products or services in advertisement, because they
recognize the advertising message is designated to influence them.
5. Prospects’ buying reactions are usually delayed as they do not occur immediately the message is
exposed to prospective buyers.
Strengths and Weaknesses of Advertising

10. Evaluating An Advertisable Product
To evaluate how advertisable a product will be, some factors should be considered. They include:
1. The Product’s Demand: The presence of a favourable primary demand trend, that is, a demand for general
class of the product.
2. Product Differentiation: A chance for significant product differentiation.
3. Product Qualities: The importance to the prospect of hidden product qualities.
4. Type Of Advertising Appeal: The opportunity to use strong emotional appeals.
5. Message Funding Circumstances: Consider circumstances favouring the accumulation of sufficient funds
with which to advertise.
6. Consumer’s Perceived Risk: The perceived risk of trying a new product or brand.
7. Product’s Capability: The product’s capability of being presented effectively in the advertising media.

11. The Five M’s of Advertising

12. Advertising Objectives
An advertising objective (or goal) is a specific communications task and achievement level to be
accomplished with a specific audience in a specific period of time:
Informative
advertising
Persuasive
advertising
Reminder
advertising
Reinforcement
advertising

13. Informative advertising aims to create brand awareness and knowledge of new
products or new features of existing products. To promote its OnStar in-vehicle
safety, security, and information service that uses wireless and GPS satellite
technology, GM launched the “Real Stories” campaign in 2002.
Persuasive advertising aims to create liking, preference, conviction, and
purchase of a product or service. Some persuasive advertising uses comparative
advertising, which makes an explicit comparison of the attributes of two or more
brands.
Advertising Objectives

14. Reminder advertising aims to stimulate repeat purchase of products and
services. Expensive, four-color Coca-Cola ads in magazines are intended to
remind people to purchase Coca-Cola.
Reinforcement advertising aims to convince current purchasers that they made
the right choice. Automobile ads often depict satisfied customers enjoying special
features of their new car.
Advertising Objectives

15. Advertising Media
The advertising message should be carried to its target by the MEDIA through the use of
media vehicle.
Two factors are essential in planning the right media mix:
1. The consumers or advertising target to be reached.
2. The nature of the message to be conveyed.

16. Major advertising medias
1. PRINT MEDIA : Newspaper and Magazine
2. BROADCAST MEDIA : Television and Radio
3. ELECTRONIC MEDIA : Internet and World Wide Web.
4. OUTDOOR : Billboards, Painted Signs, Electric Displays, Mobile
Billboards, Signs and Spectaculars.

17. 5. DIRECT MAIL : Direct Mail Advertising
6. TRANSIT :Car Card Advertising, Outdoor Displays
Located on Buses (E.G. BRT), Within Vehicles,
Airports’ Interior And Exterior, Subways and
Train Stations.
7. BELOW THE LINE MEDIA : Directories, Specialty Advertising, Cinema,
Balloon Advertising, Stadium
Advertising, T-shirts and Vests, Rural
Advertising, Exhibition and Trade Fairs,
Premium Trading Deals, Point Of Purchase
Display, Packaging and Personified Town Cry
Out. (Stanley, 1977; Kleppner, 1983 And Belch
And Belch, 2004)

18. 1. PRINT MEDIA
NEWSPAPER
Newspapers are basically a local medium and specific newspapers are closely
identified with the communities in which they are published.
Local retailers use their local newspapers more frequently because local residents
use the newspaper as a shopping guide.
National advertisers use newspapers primarily for spot coverage of top markets,
National coverage can be secured by the use of multiple newspapers.

19. Print Media -Advantages
1. Newspaper penetrates their respective markets and highly concentrated markets.
2. Newspapers have a good reach of people of every age and income levels both in
cities and suburbs.
3. They carry current news items, their advertisement have a sense of urgency,
provide a perfect environment for immediate advertisement to express their news
value as readers expect to see items of real news interest.
4. Closing dates for advertisements in newspapers are the shortest in print media
thus advertisement can be inserted or changed practically soonest.
5. Newspaper advertising is particularly merchandisable to wholesalers and
retailers. Wholesalers and retailers usually appreciate the listing of authorized
dealers at the end of a newspaper

20. Print Media –Disadvantages
1. High cost per insertion when an extensive list of newspaper is used.
2. They have a short life and are often read hurriedly, exposure time of reader
to advertisement may be too short for absorption.
3. The generally poor quality of reproduction on newspaper stock (Newsprint)
either in black and white or in colour. The ROP (run of press/paper) is
improving in modern times but not as excellent as color production as in
magazines

21. Broadcast Media
1. Radio
Radio stations are either AM – amplitude modulation or FM – frequency modulation.
Form of Tactics used in radio
• Spot Advertising
• Announcer on Board
• Program intros and Extros
• Other sponsorships

22. Advantages of Radio
1. TIMING OF MESSAGE WITH NEWS: Radio programmes provide timelessness and the
opportunity for making an advertisement appear as news. Advertisements can be tied-in
almost immediately, with such events.
2. PERSONIFIED MEDIUM: Radio represents a personal medium that depends upon the
warmth and friendliness of the human voice.
3. WIDELY AVAILABLE MEDIUM: The mass use of radio by consumers both in urban and
rural areas enhances a wide reach. The availability of portable radio sets even on mobile phones
has enabled radio to become a medium which can be used anywhere.
4. SPEED AND GEOGRAPHIC FLEXIBILITY: Radio has a high degree of message delivery
speed and geographic flexibility. Advertiser can spot markets wherever there is a commercial
station and copy can be submitted up to air time.

23. 5. AUDIENCE SELECTIVITY: Radio offers the advertiser audience
selectivity through programme choice and time of broadcast. Radio is more
selective than television because most local stations have different programme
formats that are designed to attract specific market segment.
6. OFFERS LOWEST COST PER TIME: Messages expenditure results in
lower cost per time unit, reaching a larger audience in the shortest possible
time.
7. LOW AUDIENCE RESISTANCE TO EXPOSURE: Radio has been
found to produce greater retention of simple material and it is easily attended to
with little psychological resistance, especially among least educated audience.

24. Disadvantages of Radio
1. The life of a radio commercial is extremely short.
2. The time available for advertising in broadcast media is limited by the number of hours
stations are licensed to stay on the air – wanted time periods may already be occupied by
competitors or other advertisements.
3. Commercials and programmes wear out quickly in broadcast media because public tastes
change quickly.
4. Radio has a dispersed and fragmentized audience which makes it expensive and difficult
to secure effective coverage of a broad advertising target.

25. 5. While listening to the radio, many people perform some other activity – most receivers may not
achieve effective listening to messages.
6. Radio suffers from a scarcity of research data.
7. The costs of national coverage can become substantial.
8. Radio’s lack of visual presentation keeps it from being used for many products and services that
require visual demonstration, package identification. This is an advantage for television.
Disadvantages of Radio

26. Television
Television stations transmit in one of two ways:
1. Very High Frequency or VHF
2. Ultra High Frequency or UHF
VERY HIGH FREQUENCY (VHF): Is a band of transmission frequencies between
30 and 300 megahertz (MHz) MEGAHERTZ. It is a unit of frequency equal to one
million hertz or megacycle.
ULTRA HIGH FREQUENCY (UHF): Is a band of transmission frequencies
between 300 and 3000 megahertz.

27. Advantages of Television
1. Television provides timelessness and the opportunity for making an advertisement
appear as news.
2. Television is a personal medium that depends upon the warmth and friendliness of human
voice and appearance.
3. Television has a high degree of geographic flexibility. Advertiser can “SPOT” markets
wherever there is a commercial station.
4. Television offers the advertiser audience selectivity through programme choice and time of
broadcast. Television is basically a mass medium; its programme can also attract broad
demographic groups.
5. The television viewer is in a sense a captive before his or her set. Most viewers watch
commercials during viewing time thus providing adequate chance for message exposure.

28. Disadvantages of Television
1. The life of television commercial is extremely short..
2. The time available for advertising in broadcast media is limited by the number of hours
stations are licensed to stay on the air. Once advertising time is filled, they cannot add
extra time.
3. Commercials and programmes get outdated faster in broadcast media because public or
audience tastes change at a fast rate.
4. Television seldom offers much audience selectivity in terms of demographic factors
such as income. It is most difficult to pinpoint a specific, small advertising target with
precision.
5. The high costs of television may price small or medium-sized advertisers out of
contention for time slots, especially in regards to network or regional advertising.

29. 3. Electronic Media
Electronic media include the internet and World Wide Web. The internet consists
of computers and groups of computers that share information globally, a collection
of computer networks involving millions of users who share a compatible means
of interacting with one another to exchange information.

30. Internet Advertising
Advertising on the internet is more innovative than television, newspapers and
magazines, especially when sending advertisement messages for international
audience.
Internet provides advertisers with the opportunity to have discussion groups,
information on technical support, future directions and company background.
It can be used to advertise various services and products. Advertising through the
internet will boost a company’s image.

31. 4. Out door advertising
Out door advertising is growing with popularity due to several reasons
1. High levels of message durability
2. More room for creativity and attractive designs
3. Can capture audience on the move
4. Delivers the message fast and simply
5. Increases brand visibility

32. Four Qualities that make up a Good Advertisement
1. Attracts attention: Attractive COLORS,
BOLD HEADINGS, and pictures
2. Arouses interest: Good word choice
3. Creates desire: Uses propaganda techniques to make you believe you
want it or need it
4. Causes action: Gets results. Sells the product to the targeted audience.

33. Recognizing Propaganda Techniques
Bandwagon
Testimonial
Snob Appeal
Plain Folks
Patriotism
Facts and Figures
Expert
Logical Appeal

34. Bandwagon
Persuasive technique that invites you to join the crowd.
Everybody’s doing it.
Often uses weasel words
As a propaganda technique, the term bandwagon suggests an imaginary vehicle carrying
leaders or candidates of a cause or carrying large banners and/or posters. This group has a
huge group of people following behind and all are in support of that leader/candidate.
A bandwagon is a high, ornate wagon in which a band rides as in a circus parade.
Unfortunately, most of us like to swim with the sharks rather than stand alone, so we are
likely to be carried along.
Beware of this technique. It’s a lot easier to be joiner than to stand alone.

35. Testimonial
Statement endorsing an idea/product by a prominent person.
Product can be inside or outside particular field and use popularities such as Musical
artists, Sports giants and Actors/actresses
A company hires a famous celebrity figure to promote a particular product or topic.
This is particularly powerful
Example: Visit this link
https://youtu.be/y40ufTtccS4

36. Facts and Figures Statistics
In this persuasive technique, numbers, tables, and graphs are used to show
statistics of both sides.
Expert Opinions
They use experts such as doctors, dentists, engineers, fitness trainers to say
that they recommend this product.
Example: 4 out of 5 doctors prescribe Bayer aspirin/ Sensoden Tooth
Paste
Example: Visit it
https://youtu.be/5xq59_WlhHs?list=PLV0BquUMkeagWaYCfviH2QLH9ll9l
4KW8
Example: Visit it
https://youtu.be/xIhGlS099Uk?list=PLz5RuqWifD5X3X9DqyD
7lXBVBE2AN6DxY

37. Logical Appeal
Advertisers try to convince you to make the right decision, smart decision or best choice in
purchasing their product
Examples: It makes sense to buy this
• Choosy moms choose Panasonic Electronic Goods
• Save time and money with this
• Shop smart, buy here

38. Advertising Management and Advertising
Agencies

39. Advertising Management
Objective
Setting
Budget Decision
Media decision
Message
decision
Advertising
Evaluation

40. Objective Setting
Marketers should clearly identify the need of communications.
Budget Decision
Advertising objectives should meet the SMART criteria. Marketers should consider the elements
when arriving at a budget decision.
1. Stage of Product Life Cycle (PLC).
2. Market share & market growth rate.
3. Number of competitors operating in the market.
4. Extent of differentiation between competitive products in the market.

41. Most accepted ways of arriving at a promotional budget
1. Affordable method
A popular method adapted by small business start-ups which considers the promotional expenses
after allocating adequate funds to operational and capital expenses.
The disadvantage is that promotional aspects are considered to be the least priority.
2. Percentage of Sales
The most popular way in to consider the past years sales and decide the portion of promotional
budget for the next.
Even though this method considers the relationship between promotions and sales, it wrongly
bases promotions as a result of sales rather than sales as a result of promotions.

42. 3. Competitive Parity Method
Companies who use this method will monitor competitor advertising or get industry
spending estimates and determine their own marketing budget.
The main disadvantage of this approach is that the company will be assuming that what
competitor is doing is also suitable for itself. This assumption is invalid as the
companies will differ from each other.

43. 4. Objective-task method
The promotional budget is arrived at by considering what the company wants to
accomplish through its promotions.
This method allows management to clearly plan ahead and determine what is required
to be done to improve the performance of the company. Further this method allows
companies to monitor and control its promotional expenditure leading to more effective
use of funds.
The difficulty of this approach is determining the tasks necessary to achieve the set
objectives as there is no perfect science in arriving at the most effective actions. Thus
the method will heavily depend on the skill of the individual or team who be responsible
for planning promotional activities.

44. Participants in the Integrated
Marketing Communications
Process
Advertising
agency
Advertiser
Media
organizations
Collateral
services
Marketing
communication
specialist organizations

45. Organizing for Advertising and Promotion in the Firm
The way a company organizes for these efforts depends on several factors, including
its size,
the number of products it markets,
the role of advertising and promotion in its marketing mix,
the advertising and promotion budget,
marketing organization structure.

46. The advertising manager is responsible for all promotions activities except sales (in some
companies this individual has the title of Marketing Communications Manager).
1. The Centralized System

47. Advantage
A centralized organizational system is often used when companies do not have many different
divisions, product or service lines, or brands to advertise.
It easier for top management to participate in decision making
A centralized system may also result in a more efficient operation because fewer people are
involved in the program decision
Disadvantage
First, it is difficult for the advertising department to understand the overall marketing strategy for
the brand.
The department may also be slow in responding to specific needs and problems of a product or
brand.
As companies become larger, the centralized system may become impractical.
The Centralized System

48. 2. The Decentralized System
Brand manager who is responsible for the total management of the brand, including
planning, budgeting, sales, and profit performance.
(The term product manager is also used to describe this position.)
The brand manager, who may have one or more assistant brand managers, is also
responsible for the planning, implementation, and control of the marketing program

50. Advantage
Each brand receives concentrated managerial attention, resulting in faster response to both
problems and opportunities
The brand manager system is also more flexible and makes it easier to adjust various aspects of the
advertising and promotional program
Disadvantage
Brand managers often lack training and experience
Brand managers may focus too much on short-run planning and administrative tasks,
The Decentralized System

51. 3. In-House Agencies
Some companies, in an effort to reduce costs and maintain greater control over
agency activities, have set up their own advertising agencies internally.
An in-house agency is an advertising agency that is set up, owned, and operated by
the advertiser.
A major reason for using an in-house agency is to reduce advertising and promotion
costs
Time savings, bad experiences with outside agencies, and the increased knowledge
and understanding of the market that come from working on advertising and
promotion for the product or service day by day are also reasons.

53. Advertising Agencies
Many major companies use an advertising agency to assist them in developing,
preparing, and executing their promotional programs.
An ad agency is a service organization that specializes in planning and executing
advertising programs for its clients
Probably the main reason outside agencies are used is that they provide the client
with the services of highly skilled individuals who are specialists in their chosen
fields.
An advertising agency staff may include artists, writers, media analysts, researchers,
and others with specific skills, knowledge, and experience who can help market the
client’s products or services.

54. 1. Account management —They are mainly responsible for managing the relationship with the clients.
2. Planners — this is the strategic function of an agency. They are mainly responsible for establishing
the strategic direction to the brands handled by the agencies.
3. Creative — their main function is to arrive at creative concepts to grab attention of target consumers
and then communicate the core message effectively
4. Media – once the campaign development is finalized and approved by the client media department
will be solely responsible for planning and buying media for the campaign
5. Production – they are mainly responsible for the development of material for the concepts presented
by the creative department. This department is also called audio visual department in many agencies.
Many agencies recruit experts in the field to coordinate productions as many of the production work
especially for TV and radio are outsourced to specialist studios and production houses.
Functions of a Typical Advertising Agency

55. Decision criteria for selecting an Advertising Agency
1. Defining requirement
For an organization with skillful marketing team with experience will require only a minimum
input from an agency such as creative direction.
For some companies the requirement may be media placement, these type of organizations will
choose agencies who have a good media department.
Thus it is first 'and foremost necessary for the marketing manager to determine the exact
requirement for which the company requires out side support

56. 2. Determine a pool list of attractive agencies
Depending on the requirement company must arrive at a shortlist of agencies that
could enable them to meet the requirements.
Professional bodies within the advertising industry are also a good source to get
information on potential agencies.
For example in Sri Lanka, Sri Lanka Advertising Association who organizes the
Chilies advertising awards is a good source to get information.

57. 3. Credential Pitch
Once the short list is finalized companies can inform and invite agencies to come and present their
current and previous work, team member profiles.
This will provide the marketing team of the company a good idea on the capabilities of the
shortlisted agencies.
4. Issue full brief to the shortlisted agencies
Give a comprehensive idea on what is expected by the company in order for the agencies to present
their campaign
5. Full agency presentation or pitch
According to the brief given the agencies will present their campaigns to a panel of representatives
on of the client

58. It is essential that the company decides on a evaluation criteria depending on the expected
requirements beforehand
1. Have the agency understood the product, the market and the brand well?
2. Does the agency have adequate research and planning capabilities?
3. The choice of media, have they got it right?
4. The creativity of the concepts presented, is it right for the company and the brand profile? Does it relate to the target audience?
5. Does the campaign presented have 360 degrees approach including above the line, below, the line and other innovative media
such as online initiatives?
6. What will be their charges?
7. How a big deal would our company account be to them? Or do they have bigger clients than us? Are they too small or too big
for us?
8. How cost conscious are they?
9. Are they committed to measure effectiveness of the campaigns?
6. Analysis of the pitch

59. 7. Choosing the agency/awarding the winner
Companies should take in to account the hard work that has put by the agency
for the pitch in to consideration when communicating the succession or rejection
Also, when communicating to the winner together with all the pleasantries
company should also clearly communicate why they were chosen over the other,
so that the selected agency knows exactly what the client wants and expects out
of them.
8. Arriving at agreements
Once the agency is selected, it is essential to draw up contracts settling each
others interests so as to ensure a smooth agency client relationship

60. Pros and Cons of Outsourcing an Agency
Advantages
Access to vast pool of specialized resources including international networks.
An unbiased, objective view of the market and the need.
Ability to present a creative approach to marketing communications rather than a
traditional functional role.
Company can be benefited by the access to agencies local network in the media.
production houses etc.
Avoid overhead and staff costs of having an in house creative department.

61. Disadvantages
The risk of loosing the secrecy of a special project is greater due to the involvement of
several parties.
Marketing communications becoming too creative as a result may fail in effective
message delivery.
The process is lengthy with several levels of approvals, thus difficult to meet tight
deadlines.

62. Main Readings……………….
Belch .E George, Belch A. Michael “Advertising and Promotion – An integrated marketing
communication perspective” 7th edition
Olujimi, K. (2014), Marketing Communications, 1st edition. , Pub. by Bookboon.com
SLIM, Promotional Practice, Study Text - Postgraduate Diploma in Marketing