1. PROMOTION MIX
 Advertising
 Sales Promotion
 Public Relations
 Personal Selling
 Direct Marketing

2. UNIQUE
CHARACTERISTICS OF
ADVERTISING
 Image building
 Brand loyalty
 Awareness
 Long-term effect
 Indirect effect
 Medium is message

3. DEFINITION
 Paid form
 Non-personal presentation
 Promotion
 Identified sponsor

4. MYTHS
 Advertising is expenditure
 Advertising alone can sell a product
 Increasing ad spends can sell more
 Advertising is anti-social
 Advertising is misleading

5. CHARACTERISTICS OF A
GOOD AD
 Attention-getting
 Creates interest
 Relevant and credible
 Persuasive – delivers selling message
 High ad and brand recall
 Importance of tangible & intangible
elements

6. TYPES OF ADVERTISING
I. I. Advertising to consumers
 Brand advertising
 Retail advertising
 End-product advertising
 Direct-response advertising
 Institutional advertising

7. TYPES OF ADVERTISING
II. Business-to business advertising
 Trade advertising
 Industrial advertising
 Professional advertising
III. Non-product advertising
 Idea advertising
 Public Service advertising

8. THE ADVERTISING STAGES OF
A PRODUCT
1. Pioneering stage
– advertising to introduce an idea or concept
- build acceptance of idea, change habits
2. Competitive stage
- advertising to build brand preference
3. Retentive stage
- Reminder advertising to retain customers

9. THE( 5 M )ADVERTISEMENT
2. MISSION
3. MONEY
4. MESSAGE
5. MEDIA
6. MEASUREMENT

10. ADVERTISING CAMPAIGN
PROCESS
 Planning
 Execution
 Implementation
 Evaluation

11. ADVERTISING BUDGET
DECISIONS
Methods for advertising budget determination
4. Percentage of sales approach
• Allocating a fixed percentage (normally 5%) of previous year’s sales or of
predicted sales for advertising efforts.
• Advantages
- Simplicity
- Expenditures are directly related to funds available
• Disadvantages
- Assumes that advertising is a result of sales
- Conventional percentage of sales needs to be modified in certain
situations
- Difficulty of making accurate sales forecasts

12. ADVERTISING BUDGET
DECISIONS
2. “All-you-can-afford” method
• Ad budget is determined after all unavoidable
investments & expenses have been allocated
• Advantages
- Good for small firms with limited resources
- Advertising money is not wasted
• Disadvantages
- Assumes that sales is independent of advertising
- Looks at advertising as wasteful expenditure

13. ADVERTISING BUDGET
DECISIONS
3. Competitive parity method
• Match ad spends of competitors as closely as possible
• Advantages
- Spends optimal amount on advertising
• Disadvantages
- Assumes that competition is spending at an optimal level
- Compares small with big firms
- Ignores differences in the effectiveness of campaigns &
efficiency of media placements

14. ETHICS IN ADVERTISING
I What is deceptive advertising?
2. There is a misrepresentation, omission or
practice that is likely to mislead
3. The consumer is acting responsibly or
reasonably in the circumstances.
4. The practice is material and consumer injury is
possible, because consumers are likely to have
chosen differently if there was no deception.

15. DECEPTIVE ADVERTISING
1. There is a misrepresentation, omission or practice that is likely to
mislead.
• Claiming that a big difference exists when it does not
• Artificial product demonstrations
• Using an ambiguous phrase
• Promise of benefits that do not exist
• Implying that a product benefit is unique to a particular brand
• Incorrectly implying that an endorser uses and advocates a brand
• Omission of important information
• Making unsubstantiated claims

16. DECEPTIVE ADVERTISING
2. The consumer is acting responsibly and
reasonably in the circumstances
Deception will not be found if an
advertising claim will be unreasonably
understood by an insignificant and
unrepresentative segment of consumers

17. DECEPTIVE ADVERTISING
3. Materiality of the falsehood
• Ad must contain a material untruth
• The untruth is likely to cause public injury,
i.e., the ad has a tendency to induce action
detrimental to the consumer that might not
otherwise have been taken.

18. PUFFERY VS. DECEPTION
 Puffery is exaggeration and is not
considered to be deceptive
 Puffery within limits is permissible
 Puffery may take two forms-
4. Use of superlatives, e.g. “best, greatest,
perfect, amazing, wonderful.”
5. Exaggerated claims

19. ETHICS IN ADVERTISING
Is comparative advertising unethical?
Unfair comparisons-
 Disparagement
 Unsubstantiated claims
 Aspects compared not clear
 Incomplete information
 Substantiated but irreconciliable claims
 Information overload
 Artificial advantage on advertiser