ADVERTISING MODULE

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
COURSE TITLE : ADVERTISING
COURSE CODE : MKM 105
COURSE DESCRIPTION :
This course includes topics on advertising and sales promotion such as planning and creation of advertising, the
numerous techniques of communication and persuasion employed in advertising and the strategy of effective
media selection and usage.

COURSE OBJECTIVES:
After the course, you are expected to:

1. Understand how the different vehicles of advertising and sales promotion are chosen, used and
implement.
2. Distinguish the duties and responsibilities of the advertising agency as compared to the
advertising department in a business organization.
3. Understand the proper coordination between the advertising agency and the advertising
department in the business organization.
4. Determine the role of advertising in achieving the objectives and goals of the business
organization.

COURSE CONTENTS:
MODULE 1 Introduction to Integrated Marketing Communication
MODULE 2 Developing the Integrated Marketing Communication Programs
MODULE 3 Special Topics and Perspectives

MODULE 1
Module Title : Introduction to Integrated Marketing Communication
Overview :
Integrated marketing communication refers to integrating all the methods of brand promotion to
promote a particular product or service among target customers. In integrated marketing
communication, all aspects of marketing communication work together for increased sales and
maximum cost effectiveness.
Coverage :
Topic 1 : Introduction to Integrated Marketing Communication
Topic 2 : The Role of IMC in the Marketing Process
Topic 3 : Introduction to Advertising

Topic 1
Title : Introduction to Integrated Marketing Communication

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Introduction :
Updates its coverage of IMC examples and fundamentals and continues to provide a model of the
marcom process that structures the text as well as provides a useful framework for comprehending the
strategic and tactical aspects of marketing communications

Topic Objectives:

 Appreciate the practice of marketing communications and recognize the marcom

tools used by practitioners.
 Differentiate among the following terms: the marketing mix, marketing
communications, the promotional mix and integrated marketing communication.
 Describe the philosophy and practice of integrated marketing communications
(IMC) and the five key features of IMC.
 Recognize the activities involved in developing an integrated communications
program.
 Identify obstacles to implementing an IMC program.
 Understand and appreciate the components contained in an integrative model of
marcom.

Topic Content:

The Primary Tools of Marketing Communications

The primary forms of marketing communications include many specific examples of promotional mix
and other communication elements, including traditional mass media advertising (TV, magazines, etc);
online advertising (websites, opt-in-email messages, text messaging, etc); sales promotions (samples,
coupons, rebates, premium items, etc); store signage, package labeling, and point-of-purchase
communications; direct mail literature, public relations and publicity releases; sponsorships of events
and causes; presentations by salespeople; social media and online marketing; various collateral forms
of communication devices. Table 1.1 provides a listing of possible marketing communication elements.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
The Integration of Marketing Communications
The logic underlying integration seems so clear and compelling that the student may be wondering:
What’s the big deal? Why haven’t firms practiced IMC all along? Why is there reluctance to integrate?
Good questions, all but what sounds reasonable in theory is not always easy to put into practice.
Organizations traditionally have handled advertising, sales promotions, mobile advertising, social
media, and other communication tools as virtually separate practices because different units within
organizations have specialized in separate aspects of marketing communications – advertising or social
media etc. – rather than having generalized knowledge and experience with all communication tools.
Furthermore, outside suppliers (such as advertising agencies, public relations, agencies, social media
firms, and sales promotion agencies, also have tended to specialize in single facets of marketing
communications rather than to possess expertise across the board. There has been a reluctance to
change from this single-functions, specialist model due to managerial parochialism and for fear that
change might lead to budget cutbacks in their areas of control and reductions in their authority,
perceived expertise and power.

IMC Practices and Synergy

Although there is movement toward increased implementation of IMC, not all
brand managers or their firms are equally likely to adopt IMC. In fact, experienced managers are more likely
than novice managers to practice IMC. Firms involved in marketing services (rather than products) and B2C
(versus B2B) companies are more likely to practice IMC. More sophisticated companies also
are likely adherents to IMC.

IMC is a goal worth pursuing because using multiple communication tools in conjunction with one another can
produce greater results than tools used individually and in an uncoordinated fashion. There is a synergistic effect
of using multiple well-coordinated marcom tools. A study of Levi Strauss ’ Dockers khaki pants illustrated this
value of synergy.

Using regression modeling and sales trajectories, researchers determined that the use of both TV and print
advertisements produced a synergistic effect on sales of pants that significantly added to the individual effects
of each advertising medium. Another study demonstrated that TV and online advertising used in conjunction
produced positive synergistic effects that were additional to each medium ’s individual effects. TV and online
advertising used together produced more attention, more positive thoughts, and higher message credibility than
did the sum of the two media when used individually.

Definitions of IMC

 Is a communications process for planning, creation, integration, and implementation of diverse

forms of marcom delivered to a brand’s targeted customers and prospects.
 Has as its goal influencing or affecting behavior of targeted audience.
 Considers all touch points a customer/ prospect has with the brand as potential delivery
channels for messages
 Requires that all of a brand’s communication media deliver a consistent message
 Has customer/prospect as its starting point for determining types of messages and media to
inform, persuade, and induce action

Key IMC Features

Key Feature #1: IMC Should Begin with the Customer or Prospect . This feature emphasizes that the marcom
process must start with the customer or prospect and then work backward to the brand communicator in
determining the most appropriate messages and media to employ for the brand. The IMC approach starts with
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
the customer (“outside-in”) to determine which communication methods that will best serve their needs and
motivate them to purchase the brand. It avoids an “inside-out” approach (from company to customer) in
identifying communication vehicles.

 Consumers in Control
 Outside-in approach: learn the media preferences and lifestyles of
customers/prospects to know the best contexts to reach them with brand
messages.
 Reduced Dependence on Mass Media
 Consumers are increasingly in control of their media choices for acquiring
information about brands.
Key Feature #2: Use Any Form of Relevant Contact. As carpenters, plumbers, and auto mechanics know, some
tools are more appropriate for a given task at hand. Similarly, a truly professional marketing communicator
selects the best tools (advertising, social media, publicity, etc.) for the job.

 360-Degree Branding

 A brand’s touch points should be everywhere the target audience is.

 Not All Touch Points Are Equally Engaging

 Surround customers/prospects with the message, but not to the point of being
irritatingly present.

Key Feature #3: Speak with a Single Voice. Since the early origins of IMC, it was clear that marketing
communications must speak with a single voice. Coordination of messages and media is absolutely critical to
achieving a strong and unified brand image and moving consumers to action. Failure to closely coordinate all
communication elements can result in duplicated efforts or, worse, contradictory brand messages.

 A brand’s positioning statement must:

 Present a clear idea of the brand in its target market’s mind

 Consistently deliver the same unified message across all media channels on all
occasions.

Key Feature #4: Build Relationships Rather Than Engage in Flings. Successful marketing communication
requires building relationships between brands and their consumers/customers. A relationship is an enduring
link between a brand and its customers. Successful relationships between customers and brands lead to repeat
purchasing and, ideally, loyalty toward a brand.

 Loyalty programs promote long-term relationships between customers and brands that lead to
customer retention.

 Experiential marketing programs can create brand experiences that make positive and lasting
impressions on customers.

Key Element #5: Don’t Lose Focus of the Ultimate Objective: Affect Behavior
A final IMC feature is the goal of affecting the behavior of the target audience. This means that marketing
communications ultimately must do more than just influence brand awareness or enhance consumer attitudes
toward the brand. Instead, successful IMC requires that communication efforts be directed at encouraging
some form of behavioral response. The objective, in other words, is to move people to action.

 The goal of IMC is to influence the target audience in such a way that the audience engages in a
specific desired behavior.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  The effectiveness of an IMC program is judged by its success in terms of its ultimate influence on
behavior.

Obstacles to Implementing the Key IMC Features

Brand managers typically use outside suppliers, or specialized services, to assist them in managing various
aspects of marketing communications. These include advertising agencies, public relations firms, sales
promotion agencies, direct advertising firms, social media firms, and special-event marketers. Herein is a major
reason why marketing communication efforts often do not meet the ideals previously described. Integration
requires tight coordination among all elements of a marcom program. However, this becomes complicated
when different specialized services operate independently of one another.

Advertising agencies, which traditionally have offered a greater breadth of services than do other specialists, are
well qualified to develop mass media advertising campaigns; most, however, do not also have the ability nor
scale to conduct direct-to-customer advertising, and even fewer have departments for sales promotions, special
events, and publicity campaigns. In the final analysis, although most marketers consider themselves proponents
of IMC, a major challenge facing brand marketers and their agencies is assuring that all marcom tools used in a
particular marketing execution are consistently executed.

The Marketing Communications Decision-Making Process

Figure 1.3 is a framework conceptualizing the various types of practical brand-level marcom decisions and the
outcomes desired from those decisions. The model consists of a set of fundamental decisions, a set of
implementation decisions, and program evaluation. The model in Figure 1.3 shows that fundamental decisions
(targeting, positioning, setting objectives, and budgeting) influence implementation decisions regarding the
mixture of communications elements and the determination of messages, media, and momentum. The expected
outcomes from these decisions are enhancing brand equity and affecting behavior. Subsequent to the
implementation of the marcom decisions, program evaluation—in the form of measuring the results from
marcom efforts, providing feedback (see dashed arrow in Figure 1.3), and taking corrective action—is essential
to determining whether outcomes match objectives. Corrective action is required when performance falls below
expectations.

The objective of marketing communications is to enhance brand equity, the goodwill that an established brand
has built up over its existence. In turn, improved brand equity is a means of moving customers to favorable
action toward the brand—i.e., trying it, repeat purchasing it, and, ideally, becoming loyal toward the brand.
Enhancing equity and affecting behavior depend, of course, on the suitability of all marketing-mix elements—
e.g., product quality and price level—and not just marcom per se. Marcom efforts nonetheless play a pivotal role
by informing customers about new brands and their relative advantages and by elevating brand images.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Fundamental Marcom Decisions
Targeting
Targeting lets marketing communicators deliver messages more precisely and prevent wasted coverage to
people falling outside the intended audience. Hence, selection of target segments is a critical step toward
effective and efficient marketing communications for both B2B and B2C companies. Companies identify
potential target markets in terms of demographics, lifestyles, product usage patterns, and geographic
considerations.

Positioning
A brand’s position represents the key feature, benefit, or image that it stands for in the consumer’s or the target
audience’s collective mind. Brand communicators and the marketing team in general must decide on a brand
positioning statement, which is the central idea that encapsulates a brand’s meaning and distinctiveness
vis-a-vis competitive brands in the product category. It should be obvious that positioning and targeting
decisions go hand in hand: positioning decisions are made with respect to intended targets, and targeting
decisions are based on a clear idea of how brands are to be positioned and distinguished from competitive
offerings.

Setting Objectives

Marketing communicators’ decisions are grounded in the underlying objectives to be accomplished for a brand.
For example, whereas mass media advertising is ideally suited for creating consumer awareness of a new or
improved brand, point-of-purchase communications are perfect for influencing in-store brand selection, and
personal selling is unparalleled when it comes to informing B2B customers and retailers about product
improvements. The most important question to pose is this: “What is the communications supposed to do or
accomplish?” The choice of appropriate marketing communications tools and media naturally
flows from the answer to this key question.

Budgeting
Financial resources are budgeted to specific marcom elements to accomplish desired objectives. Companies
used different budgeting procedures in allocating funds to marketing communications managers and other
organizational units. At one extreme is top-down budgeting (TD), in which senior management decides how much
each subunit receives. At the other extreme is bottom-up budgeting (BU), in which managers of subunits (such as
at the product category level) determine how much is needed to achieve their objectives; these amounts are
then combined to establish the total marketing budget.
Most budgeting practices involve a combination of top-down and bottom-up budgeting (e.g., a bottom-up/top-down process
[BUTD] or a top-down/bottom-up process [TDBU]).

A Concluding Point

The following statement serves as an important point to capture the preceding

discussion of fundamental marcom decisions. You regularly should pose questions to yourself—and to your
colleagues—such as these: Is our brand clearly positioned in the minds of consumers? What is the single most
important aspect that they associate with our brand? Is our communication directed to a
specific target? What specific objective is our advertising (or sales promotion, or event, etc.) attempting to
accomplish? Is our proposed strategy within the budget available, or do we need to request more budget?

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Marcom Implementation Decisions
The fundamental decisions just described are conceptual and strategic. Comparatively, the implementation
decisions are practical and tactical. Here is where the proverbial rubber hits the road. Marcom managers must
make various implementation decisions in the pursuit of accomplishing brand-level objectives
and achieving the brand’s positioning and targeting requirements. Initially they
must choose how best to integrate, or mix, the various communications elements to achieve objectives toward
the target market and within budget constraint. Then they must decide what types of messages will accomplish
the desired positioning, which media are appropriate for delivering messages, and what degree of
momentum is needed to support the media effort.

Mixing Elements

A fundamental issue confronting all companies is deciding exactly how to allocate resources among the various
marketing communications tools. For B2B companies, the mixture typically emphasizes, in the following order of
budgeting importance, direct mail, online marketing, trade shows, brand advertising, and telemarketing.37
For consumer goods marketers, mixture decisions are, in many respects, more complicated because greater
options are available. The issue boils down in large part to a decision of how much to allocate to advertising and
to sales promotions. (Note: In keeping with practitioner convention, the word promotion hereafter will be used

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
interchangeably with sales promotion.) The trend during the past two decades has
been toward greater expenditures on promotions and fewer on advertising.

Creating Messages

A second implementation decision is the creation of messages in the form of advertisements, publicity releases,
promotions, package designs, social media, and any other form of marcom message. Subsequent chapters will
address specific message issues relating to each marcom tool. Suffice it to say at this point that
systematic (versus ad hoc) decision making requires that message content be dictated by the brand’s positioning
strategy and aligned with the communications objective for the designated target audience.

Selecting Media

All marketing communications messages require an instrument, or medium, for

transmission. Although the term media is typically applied to advertising (television, magazines, radio, mobile,
Internet, etc.), the concept of media is relevant to all marcom tools. For example, personal sales messages can
be delivered via face-to-face communications or by telemarketing; these media alternatives have different costs
and effectiveness. Point-of-purchase materials are delivered via in-store signs, electronically, musically, and
otherwise. Each represents a different medium. Detailed discussions of media (especially advertising) are
reserved
for specific chapters later in the text.

Establishing Momentum

The word momentum refers to an object’s force or speed of movement —its impetus. A train has momentum as it
races down the tracks, a spacecraft has momentum as it is launched into orbit, a hockey player has momentum
when skating past the defensive opposition, a student has momentum when making good progress on a term
paper or when finished studying for an exam. Marketing communications programs also have, or lack,
momentum. Simply developing an advertising message, creating a buzz-generating viral campaign, or releasing
publicity is insufficient. The effectiveness of each of these message forms requires both a sufficient amount of
effort and continuity of that effort.

Marcom Outcomes
Based on our conceptual framework, the outcomes for a marcom program are twofold: (1) enhancing brand
equity and (2) affecting behavior. Figure 1.3 displays a double-headed arrow between these outcomes, which
signifies that each outcome can influence the other. For example, an ad campaign can result in enhanced brand

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
equity leading to trial behavior. Conversely, trial, via a free sample, may lead to more positive brand perceptions
and equity.

As established previously, a fundamental IMC principle is that marcom efforts must ultimately be gauged by
whether they affect behavior. Sales promotion is the marcom tool most capable of directly affecting consumer
behavior. However, excessive reliance on promotions can injure a brand ’s reputation by creating a
low-price and perhaps low-quality image. It is for this reason that marketing communicators often seek first to
enhance a brand’s equity as a foundation to influencing behavior.

Program Evaluation
The final step in the process is that a program evaluation must take place, accomplished by measuring the
results of marcom efforts against the objectives that were established at the outset. Regardless of the situation,
it is critical to evaluate the results of marcom efforts. Throughout the business world there is increasing demand
for accountability, which requires that research be performed and data acquired to determine whether
implemented marcom decisions have accomplished the objectives they were expected to achieve. Results can
be measured in terms of behavioral impact (such as increased sales) or based on communication outcomes
versus comparable time periods or control groups.

Measures of communication outcomes include brand awareness, message comprehension, attitude toward the
brand, and purchase intentions. All of these are communication (rather than behavioral) objectives in the sense
that an advertiser has attempted to communicate a certain message argument or create an overall impression.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 Quiz No. 1 Topic 1

Name:

Section:

TRUE OR FALSE

________1. Coordination of messages and media is absolutely critical to achieving a strong and unified brand image and
moving consumers to action.
________2. A positioning statement is the key idea that encapsulates what a brand is intended to stand for in its target
market’s mind.
________3. Successful marketing communication requires building relationships between brands and their
consumers/customers.
________4. One thing that has not changed in marketing communication practices is the dependence on mass media
advertising.
________5. The mixture of communications elements and the determination of messages, media, and momentum are all
fundamental decisions in the brand-level marcom decision process.
________6. The various types of brand-level marcom decisions include fundamental decisions and implementation
decisions.
________7. The objective of marketing communications is to enhance brand equity as a means of moving customers to
favorable action toward the brand.
________8. A brand has no equity if consumers are unfamiliar with it.
________9. Selection of target segments is a critical step toward effective and efficient marketing communications.
________10. A brand’s name is the central idea that encapsulates a brand’s meaning and distinctiveness relative to
competitive brands in the product category.
______

Activity on Topic 1

1. The combined use of different marcom tools—such as advertising a brand on TV along with sponsoring
an event—can produce a synergistic effect for a brand. What does the concept of synergy mean in
this context? Provide a practical illustration of how two or more marcom tools when used in
combination are capable of producing results greater than the sum of their individual contributions.

2. Assume you are in charge of fundraising for an organization on your campus—a student club, a social
fraternity or sorority, a business fraternity, a non-profit group, or any other such organization. It is your
job to identify a suitable project and to manage the project’s marketing communications. For the
purpose of this exercise, identify a fundraising project idea and apply the subset of the model involving
fundamental decisions. In other words, explain how you would position your fundraising project, whom
you would target, what objective(s) you would set, and how much (ballpark figure) you would budget for
marcom efforts.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Topic 2
Title : The Role of IMC in the Marketing Process
Introduction :
New chapter opener focuses on Creating a New Image for Buick” and discusses Buick’s attempt to
reposition the 100 + year old auto to appeal to a younger market. Updated IMC Perspective on
targeting Millennials; updated discussion of marketer’s attempts to reach Hispanic Market; updated
charts and graphs and new ads throughout the chapter.

Topic Objectives:

 Describe the role of advertising and promotions in an organization’s integrated

marketing program.
 Define target marketing
 Discuss the role of market segmentation in an IMC program.
 Describe positioning and repositioning strategies.
 Identify the marketing mix decisions that influence advertising and promotional
strategy.

Topic Content:

Introduction
Marketers know that to be successful they must understand their buyers and potential buyers and develop
specific strategies to best reach them. These include the identification of market opportunities, market
segmentation, target marketing and positioning and marketing program development. This model consists of
four major components: the organization’s marketing strategy and analysis, the target marketing process, the
marketing planning program development (which includes the promotional mix), and the target market. As
model shows, the marketing process begins with the development of a marketing strategy and analysis in which
the company decides the product or service areas and particular markets where it wants to compete. The
company must then coordinate the various elements of the marketing mix into a cohesive marketing program
that will reach the target market effectively.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Marketing to Lifestyle

Shows a print ad for Merrill shoes and relates to analyzing marketing opportunities. Marketing opportunities are
areas where there are favorable trends, where companies believe customer needs are not being satisfied, and
they can compete effectively. This ad shows how Merrell sees opportunity in the growing segment of “lifestyle”
shoes. used to show how companies need to capitalize on marketing opportunities. For instance the athletic
shoe industry has changed dramatically as we have seen an emergence of a new segment called “lifestyle”
shoes. Merrell is competing in this segment by using ads.

Target Marketing Process

The process by which marketers do this is referred to target marketing and involves four basic steps :
identifying markets with unfulfilled needs, segmenting the market, targeting specific segments and
positioning one’s product or service through marketing strategies.
• Identify markets with unfulfilled needs – this isolates consumers with similar lifestyles, needs,
and wants to find a common ground to more effectively provide them with products/services

• Determining market segmentation – dividing a market into distinct groups that have common
needs and will respond similarly to a marketing action.
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 • Selecting a market to target – determining how many segments to enter and which segments
offer the most potential.

• Positioning through marketing strategies – defined as the art and science of fitting the product
or service to one or more segments of the broad market in such a way as to set it meaningful
apart from competition.

Market Segmentation
It is not possible to develop marketing strategies for every consumer. Rather, the marketer attempts to identify
broad classes of buyers who have the same needs and will respond similarly to marketing actions. Marketing
segmentation is dividing a market into distinct groups that (1) have common needs and (2) will respond similarly
to a marketing section.

Bases for Segmentation

There are a number of methods that are available for segmenting markets. These methods can be
broken into two broad categories based on customer characteristics and aspects of the buying
situation. Segmentation based on customer characteristics includes:
• Geographic segmentation, which divides markets by geographic locations such as
nations, states, regions, or cities.
• Demographic segmentation which divides markets based on demographic variables
such as gender, age, education, race, and life stage.
• Socioeconomic segmentation, which divides markets based on socioeconomic variables
such as income, education, and occupation.
• Psychographic segmentation, which divides markets based on personality values or
lifestyle. SRI’s VALS 2 is a popular approach to lifestyle segmentation
Segmentation based on the buying situation includes:
• Behavioral segmentation which divides a market into groups according to their level of
involvement with and purchase behavior toward a product or service.
• Outlets which segments a market based on the type of store where a product is sold
such as convenience, supermarket, mass merchandiser, specialty
• Benefit segmentation divides markets on the basis of the specific benefits or outcomes
consumers want from a product or service.
• Usage segmentation which classifies customer based on their level of use of a product
or service including heavy, medium, and light users.
Developing a Positioning Strategy
A number of positioning strategies might be used by marketers. These include positioning on the basis of the
following:

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 • Attributes/Benefits – setting the brand apart from competition using specific characteristics or
benefits offered. Marketers attempt to identify salient benefits which are those that are
important to customers in their purchase decisions

• Price/Quality – using price as characteristic of the brand. High quality/image pricing can be
used as well as value pricing which reflects a very competitive price.

• Use/Application – associate the brand with a specific use. This approach can also be effective
way to expand usage of a product.

• Product Class – competition can come from outside the product class whereby a product is
positioned against another product category

• Product User – associating a brand with a type of person or group that uses a product or
service.

• Competitor – positioning a company or brand against a competitor. Often another form of

positioning is used as well to differentiate the brand.

• Cultural Symbols – use symbols that have acquired cultural meaning and associating a brand
with these symbols to differentiate it from competitors

Developing the Marketing Planning Program

The development of the marketing strategy and selection of a target market(s) tell the marketing department
which customers to focus on and what needs to attempt to satisfy. The next stage of the marketing process
involves combining the various elements of the marketing mix into a cohesive, effective marketing program. It
should be noted that the process includes a thorough understanding of the current situation and extensive
market research is often used to provide the needed information.

Provides an overview of the six steps involved in the development of a positioning platform which include:

1. Identify the Competitors – requires broad thinking and considering all likely competitors.
Competitors can be from other product classes.

2. Assess Perceptions of Competitors – Once competitors are defined, it must be decided how
they are perceived by consumers. Market research is used to assess which attributes are
important in the decision process.

3. Determine Their Positions – what are our competitors’ positions, as well as ours, in relation to
important product or service attributes

4. Analyze Consumer Preferences – what are consumers’ purchase motives and what attributes
are important to them? Determining a consumer’s ideal brand or product is one way to assess
this.

5. Make Positioning Decision – going through the first four steps should lead to a decision
regarding which position to assume in the marketplace.

6. Monitor the Position – assessing how well the position is being maintained in the marketplace

Branding and Packaging Work Closely Together

Branding and packaging are very important in creating an image for a product and must be coordinated to
present an image or position that extends beyond a product’s physical attributes. Many marketers rely on their
brand name and packaging to communicate with consumers and help create a position and/or image.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 • A brand name identifies a product or service and often communicates attributes and meaning.

• Brand equity refers to the intangible assets of added value or goodwill that results from the
favorable image, impression, and consumer attachment to a company, brand name, or
trademark.

• Packaging is an important part of brand’s identity. Traditionally, the package provided

functional benefits such as economy, protection, and storage. However, the role of packaging
has changed because of self-service in many stores and more buying decisions being made at
the point-of-purchase.

Pricing Must Be Coordinated with Other Factors

A firm must consider a number of factors in determining the price it charges for its product or service, including
costs, demand factors, competition, and perceived value. Pricing needs to be coordinated with the other
elements in the marketing mix to create an effective IMC program.

A number of pricing considerations are shown on this slide. These include:

• Price must be consistent with perceptions of the product

• Higher prices communicate higher product quality

• Lower prices reflect bargain or value perceptions

• Price, advertising and distribution must be unified in identifying the product position

• A product positioned as a high quality while carrying a lower price than competitors will
confuse customers

Distribution is a Vital Link in the Chain

Distribution decisions are among the most important made by marketers and often play a role in shaping the
image of a company or brand. This slide shows various distribution channel decisions marketers must make
including:

• Selecting the type of channels that will be used to distribute a product

• Managing the relationship with the channel members

• Motivating the channel members to stock and promote the company’s product

The “Middleman” Can Play a Key Role

The marketing channel intermediaries are critical to the success of a company’s marketing program. Brokers,
distributors, wholesalers, and retailers are all intermediaries or “middlemen” who play an important role in the
marketing process.

Push Versus Pull

In developing its marketing strategy a company can use either a push or pull strategy. Programs designed to
motivate the channel members and persuade them to stock merchandise, and promote a manufacturer’s
products are part of a push strategy. A push strategy tries to encourage resellers to order merchandise and
push it through to their customers. In contrast a promotional pull strategy involves spending money on
advertising and sales promotion efforts directed toward the ultimate consumer. The goal of a pull strategy is to
create demand among consumers and encourage them to request the product from the retailer. The decision to
use a push or pull strategy depends on a number of factors including the company’s relations with the trade, its
promotional budget, and demand for the firm’s products. Companies can often use both of these strategies
with the emphasis changing as the product moves through its product life cycle.
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 Quiz no. 2 Topic 2
Name: Score:
Section:

_____1.  According to the marketing and promotions process model, the marketing process begins with the: 
A. development of the marketing mix.
B. development of a marketing strategy and analysis.
C. development of the promotional mix.
D. determination of the target market.
E. establishment of marketing objectives.

_____2.  _____ is a detailed assessment of the current marketing conditions facing the company, its product
lines, or its individual brands. 
A. Strategic marketing plan
B. Integrated marketing communications plan
C. Situation analysis
D. Opportunity analysis
E. Competitive plan

_____3. _____ are defined as external areas where there are favorable demand trends, customer needs and
wants are not being satisfied, and where a company thinks it can compete effectively. 
A. Market opportunities
B. Market segments
C. Competitive advantages
D. Market strengths
E. Market plans

_____4. Offering quality products that command a premium price, providing superior customer service, having
the lowest production costs and lower prices etc. are ways of: 
A. achieving competitive advantage.
B. market segmentation.
C. mass marketing.
D. exploiting market opportunity.
E. undifferentiated marketing.

_____5. . _____ is something unique or special a firm possesses or does that gives it an edge over its
competitors. 
A. Brand quality
B. Brand equity
C. A competitive advantage
D. Brand power
E. A market opportunity

_____6. Directing a company's efforts towards one or more groups of customers who share common needs is
known as: 
A. target marketing.
B. competitive advantage.
C. positioning.
D. market segmentation.
E. branding.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
_____7. Dividing the market into units such as nation, states, town, counties etc. is known as: 
A. demographic segmentation.
B. psychographic segmentation.
C. quantified aggregation.
D. lifestyle aggregation.
E. geographic segmentation.

_____8. Which of the following is a geographic variable for segmentation of the market? 
A. Family size
B. Occasions
C. Cities
D. Age
E. Gender

_____9. Ramen has recently come up with instant soup packets which it advertises in the colder regions of Asia
and Europe. This is an example of: 
A. demographic segmentation.
B. psychographic segmentation.
C. sociocultural segmentation.
D. geographic segmentation.
E. undifferentiated marketing.

_____10. Division of the market based on age, sex, family size, income, and other measurable characteristics is
known as: 
A. demographic segmentation.
B. psychographic segmentation.
C. quantified aggregation.
D. lifestyle aggregation.
E. undifferentiated marketing.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Topic 3
Title : Introduction to Advertising
Introduction :
Explores concepts intended to appreciate and understand advertising roles in the marketing
organization’s products and services.
Topic Objectives:

 Describe the Evolution of Advertising

 Describe the nature and scope of advertising.
 Discusses the classification of advertising.
 Identify the stages in the Advertising Cycle.
 Describe the Advertising Triangle.

Topic Content:

Introduction
Advertising and other forms of promotion are an integral part of the marketing process in most organization.
Over the past decade, the amount of money spent on advertising, sales promotion and other elements of the
promotional mix has increased tremendously, both for the local and global firms. The basic task of marketing is
to combine the elements of promotional mix into a comprehensive program that facilitates exchange with a
target market.

The importance of integrated marketing communications, coordinating the various marketing and promotional
elements to achieve more efficient and effective communication programs. Reasons for the growing importance
of the integrated marketing communications perspective include a rapidly changing environment with respect to
consumers, technology and media.

Nature and Scope of Advertising

Advertising is a paid form of non-personal communication of information about goods, services, ideas or
institutions using mass media of communication with the intention to sell or secure favorable consideration.
Advertising is never free, it is always paid.

Basis of payment are time and space. Time is the basis of payment for broadcast advertising, and space is the
basis for print advertising. Per column centimeter is the unit of measurement for advertisement in print media
particularly those for magazine. Per agate line is the unit of measurement for advertisements also in print
media, but classified in newspaper.

As a marketing function, it is openly persuasive and convincing in order to sell or secure favorable consideration.
Companies spent millions of pesos in exchange for a recognition and patronage of their products or services.

Advertising and Sales Hexagon

Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying
goods and services to present and potential market. It includes activities that direct the flow of goods and
services from producer to consumer. Sales hexagon consists of elements where the general goal is to promote
product or service saleability. Advertising is one of the marketing tools to direct flow of goods or services to the
right target market.

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Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Personal selling is a direct, face to face contact among buyers, seller and product, intended to convince the
buyer to purchase the product offered for sale. Publicity a non- paid , non- personal communication of
information about products and services also uses the mass media. To create goodwill and build good image,
public relations is another element. Sales promotion includes activities that will promote increase in sales for the
product or service, by planning for freebies or samples, premiums, price-off and contest. Planning for the right
product or service at the right time, for the right market and price is merchandising as the final element of the
hexagon.

Classifications of Advertising

 According to Source or Origin. This traces back the party who requested for the preparation of
the advertisement, or the party who wants the advertising project be done. This is also known
as the advertiser, in the contract.
 According to Media Used. Media of mass communication serve as tools to communicate
information about products or services. Print media include newspapers and magazine.
Broadcast media are the television and the radio programs , where advertisements are placed
on the air to capture viewership or listenership. Outdoor media consist of painted bulletins,
posters, streamers, tarpaulins, spectacular and aerial signs. Transit media utilize public utility
vehicles. Field media use fleet of men and vehicle roaming around a residential area, with their
audio system, announcing the products they are marketing.
 According to Objective. Advertisements identifying the brand of the item for patronage is
known as promotional advertisements. Communicating message of public interest or seeking to
develop goodwill, also those mentioning the name of the organizations or business entity is
known as institutional advertising.
 According to Audience Targeted. Consumer advertising targets the ultimate users of the
product, convincing them to purchase the item for personal or household use. Industrial
advertising targets businessmen, convincing them to purchase the product advertising for use
in their operations. Trade advertising also targets businessmen, convincing them to buy the
product advertised for resell. Finally, professional advertising targets physicians, educators and
other groups for them to prescribe or recommend product advertised.

Stages in the Advertising Cycle

• Introductory Stage. It is used in launching publicity a product or services which is entirely new
or unknown to the market. First objective is to develop consumer awareness for an entirely
new product; Second, is to advertise an established product innovation.
• Competitive Stage. Seeks to urge the consumers to prefer the advertisers’ product or service
over other competing brands. In this stage, the advertiser emphasizes a selling point unique to
the product or service presented.
• Retentive Stage. Attempts to develop or establish consumer loyalty by keeping the buying
public reminded of the name or brand of the item. This is suitable for products who have
gained sufficient market share, but aims to hold on their consumer loyal group by periodically
repeating.

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Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
The Advertising Triangle

Advertiser. It is called the client, an account or sponsor. This can be anyone from among the
sources of advertisement, under the topic – classification of advertising according to the source
of origin.
Advertising agency. It is an independent service organization whose function is to provide
advertising, merchandising, and other promotional activities related to selling of the client’s
products, services or ideas.
Advertising media. It include the mass media of communication in broadcast, print, outdoor,
transit, field and movie.
The Advertising Agency
This is an independent service organization operating outside of the control of the advertiser or client.
• The Account Management Department. It is headed by Account Executive. This is the
department where the advertiser or client, or representative of the client’s advertising
department, communicates their requirements to the agency, for an advertising product.
• Research Department. It is responsible for gathering information under cases where data given
by the client may be insufficient, to start the project.
• Copy Department. Prepares the text or words of the advertisement. This may include the story
board for television commercial, or the script for radio, and the layout for print.
• Art Department. Translates the words into pictures. The department is responsible for
preparing the visual presentation of the advertisement. Pictures shall be created the illustration
of the advertisement.
• Media Department. Prepares the detailed media schedule, the list of media selected for the
delivery of the advertising message. The department may consist of two – the space buying
section – for print media; and the time buying section – for broadcast media.
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Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 • Production Department. It is responsible for handling the mechanical requirements of the
advertisement including preparing several copies of the mastertape, blue print for distribution
to media, typefacing, color reproduction
• Traffic Department. Sees to it that the advertisements are shown or published according to
schedule.
The Advertising Theme
The central buying incentive featured in an advertising message is the frame of reference,
serving as stimulus to an expected response from the audience. This stimulus called advertising
appeal.
The ideas created using a defined advertising appeal must be directly related to the product
benefits desires by the consumers, thus sales point must be developed.
To communicate these sales points capitalizing on features, advantages and benefits, the
advertisement may target any of these attention-getting factors: involuntary and voluntary.
Involuntary attention-getting factors holds that mental processes are directed toward
something else, and not focused on looking, listening or watching advertisement.
Voluntary attention-getting factor can be beneficial to the advertiser since the mental processes
of the consumer is really intended towards checking, looking or reading an advertisement.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 QUIZ NO 3 ON TOPIC 3
Name: Section: Score
I. Identification.
_______________1. Under the advertising triangle, the advertiser is called ____ upon completion of the project
and ready for media schedule.

_______________2. Elements that advertiser and advertising agency must agree to be called an account.

_______________3.

_______________4.

_______________5. The independent service organization providing services of advertising, merchandising and
other promotional activities related to the selling of client’s products, services or ideas.

_______________6. The dependent service organizations, a functioning division within a client or advertiser’s
company.

_______________7. The group responsible for preparing the text of words of an advertisement.

_______________8. This department is responsible for preparing the visual presentation of an advertisement.

_______________9. The department where the advertiser communicates their requirements to the agency.

_______________10. The department responsible for handling the mechanical requirements of the
advertisements.

Activity

 Show or bring print advertisements showing advertisement as persuasive; and advertisement

as informative.
 Interview an advertising practitioner, and write a description of the person’s specific job.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
MODULE 2
Module Title :Developing the Integrated Marketing Communication Programs
Overview :
Integrated Marketing Communications (IMC) is a strategic, collaborative, and promotional marketing function
where a targeted audience receives consistent and persuasive brand messaging through various marketing
channels in an integrated way to move buyer's through the decision making process. At the most basic level,
integrated marketing communications helps to ensure that marketers are using all of the available channels to
them to amplify a marketing campaign and/or brand messaging to reach their target audience, or buyer
persona.  The key to rolling out an effective campaign across multiple platforms is an integrated marketing
communications plan.
Coverage :
Topic 1 : Enhancing Brand Equity and Accountability
Topic 2 : Evaluation of Media: Television and Radio
Topic 3 : Evaluation of Media: Magazines and Newspaper

Topic 1
Title : Enhancing Brand Equity and Accountability

Introduction :
Marcom’s role in enhancing brand equity and influencing behavior. The topic emphasizes the
importance of achieving marcom accountability and includes discussion of return on marketing
investments and efforts to measure marcom effectiveness.
Topic Objectives:

 Explain the concept of brand equity from both the company’s and the customer’s
perspectives.
 What are some of the positive outcomes that result from enhancing brand equity?
 Describe the different models of brand equity from the customer’s perspective.
 Understand how marcom efforts must influence behavior and achieve financial
accountability.

Topic Contents:

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
For many online “market mavens,” it is really difficult to stay on top of all the new social media options, run
the latest apps, and have all the “need to know” content and information on a 24/7 basis. Beyond the obvious
(Facebook, YouTube, Twitter, Google, etc.), there are so many competing niche brands out there to consider! As
to the social media content, just a few hours off (for some that could be not checking overnight), might mean
missing that important blog, Facebook post, or breaking news Tweet.

Yet, trying to keep up with the latest social media brands and content, such as work connections (LinkedIn),
location-based check-ins (foursquare, Facebook Places, and Facebook Nearby Friends), lifestyle blogging (Word
Press), etc., can easily create overflowing inboxes and information overload, even for the most tech-savvy
consumer. Currently, many social media brands are vying to be the “owners” of different social media spaces.

Introduction
The previous chapter introduced the philosophy and practice of integrated marketing communications (IMC)
and then presented a framework for thinking about all aspects of the marcom process. You will recall that this
framework included four components: (1) a set of fundamental decisions (targeting, positioning, etc.), (2) a
group of implementation decisions (mixing elements, creating messages, etc.), (3) two types of outcomes
resulting from these decisions (enhancing brand equity and affecting behavior), and (4) a regimen for evaluating
marcom results and taking corrective action. This chapter focuses on the third component in this framework,
namely, the desired outcomes of marcom efforts for brands. The basic issues addressed are these: What can
marketing communicators do to enhance brand equity and, beyond this, affect the behavior of their present and
prospective customers? Also, how can marketing communicators justify their investments in advertising, sales
promotions, social media, and other marcom elements and demonstrate financial accountability? The chapter
first discusses the concept of brand equity and explores this topic from both company and customer
perspectives. A following section then addresses the importance of affecting behavior, including a discussion of
accountability.

Brand Equity
Before we discuss the important concept of brand equity, we should be clear
about the meaning of the term brand. The American Marketing Association defines a brand as a “name, term,
sign, symbol, design, or a combination of them intended to identify the goods or services of one
seller or group of sellers and to differentiate them from those of competition.”1 Thus, identification and
differentiation are important aspects of a brand. Also, a brand includes what is known as trade dress, which
refers to the appearance and image of the product, including its packaging, labeling, shape, color, sounds,
design, lettering, and style. Yet, a brand is more than just a name, term, symbol, and so on. A brand is everything
that one company’s particular offering stands for in comparison to other brands in a product category. A brand
represents a set of values that its marketers, senior company officials, and other employees consistently
embrace and communicate for an extended period.

So, what exactly is brand equity? For the purpose of our discussion, we define brand equity as the goodwill (i.e.,
equity) that an established brand has built up over its existence. As such, the concept of brand equity can be
considered both from the perspective of the organization that owns a brand and from
the vantage point of the customer.

A Firm-Based Perspective on Brand Equity

The firm-based viewpoint of brand equity focuses on outcomes extending from
efforts to enhance a brand ’s value to its various stakeholders (e.g., final consumers, retailers, wholesalers,
suppliers, and employees). As the value, or equity, of a brand increases, various positive outcomes result. These
include (1) achieving a higher market share, (2) increasing brand loyalty, (3) being able to charge premium
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
prices, and (4) earning a revenue premium. 5 Being able to charge premium prices means that a brand ’s elasticity
of demand becomes less elastic as its equity increases; that is, brands with more equity can charge higher prices
than brands with less equity.

A revenue premium is defined as the revenue differential between a branded item and a corresponding private-
labeled (store brand) item. With revenue equaling the product of a brand ’s net price volume, a branded good
enjoys a revenue premium over a corresponding private-label item to the degree it can
charge a higher price and/or generate greater sales volume. In equation form, the revenue premium for brand b
compared to a corresponding private-label item, pi, is as follows:

Revenue premium= (volumeb)(priceb)-(volumepl)(pricepl)

It has been demonstrated that grocery brands possessing higher equity generate higher revenue premiums. In
turn, there is a strong positive correlation between the revenue premiums brands enjoy and the market shares
they realize. The ability to charge higher prices and generate greater sales volume is due in large part to marcom
efforts that build favorable images for well-known brands and, in turn, less perceived risk and greater shopper
efficiency.

Finally, another form of firm-based brand equity is somewhat akin to the notion of revenue premium just
described. We might label this unique form “taste-premium” brand equity.

Table 2.1 presents study results in terms of three percentages for each of the five products: (1) the percentage
of children who considered the food/drink item with the McDonald’s packaging to taste the best, (2) the
percentage who thought the two versions tasted the same or gave no answer when asked “Tell
me if they taste the same, or point to the food (drink) that tastes the best to you,” and (3) the percentage who
considered the food/drink item in the plain white packaging to taste the best.

The percentages in Table 2.1 make it clear that the participating preschoolers preferred the taste of all five food
and drink items when they had McDonald ’s packaging over the identical food/drink items with plain-white
packaging.

The percentage of children preferring McDonald ’s french fries was a whopping 76.7 percent. Even for carrots,
which is not a McDonald’s menu item, 54.1 percent considered the sampled carrot better tasting when it was
served in a McDonald’s package versus the 23.0 percent who preferred the carrot when served in a plain white
package.

These results convincingly indicate brand equity in action. Simply placing products in well-identified McDonald’s
packaging led children to regard these items to be superior tasting in comparison to identical items in plain-
white
packages. These preferences were especially strong among those children who lived in homes with more
television sets and who more frequently ate food from McDonald’s. As will be indicated in the following section
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
on consumer based brand equity, these results demonstrate the role that the speak-for-itself and message-
driven approaches play in enhancing a brand ’s equity.

Dimensions of Brand Knowledge

From the perspective of the customer, a brand can be said to possess equity to
the extent that people are familiar with the brand and have stored in memory
favorable, strong, and unique brand associations. Such associations are the
particular thoughts and feelings that consumers have linked in memory with a particular brand. Thus, as
suggested by Keller’s “Dimensions of Brand Knowledge,” another way of thinking about brand equity is that it
consists of two forms of brand-related knowledge: brand awareness and brand image, as shown in Figure 2.2.

Brand awareness is an issue of whether a brand name comes to mind when

consumers think about a particular product category and the ease with which
the name is evoked.

Figure 2.2 shows two levels of awareness: brand recognition and recall. Brand
recognition reflects a relatively superficial level of awareness, whereas brand recall
indicates a deeper form. Consumers may be able to identify a brand if it is presented
to them on a list or if hints/cues are provided. However, fewer consumers are able
to retrieve a brand name from memory without any reminders.

Brand image represents the associations that are activated in memory when people think about a particular
brand. As shown in Figure 2.2, these associations can be conceptualized in terms of type, favorability, strength,
and uniqueness.

Relationships among Brand Concepts, Brand Equity, and Brand Loyalty

In order to build brand equity, as measured by the BAV’s pillars or the dimensions of brand knowledge, brand
managers often focus first on the development of the brand concept. The brand concept is the specific meaning

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
that brand managers create and communicate to their target market. (This often follows extensive research on
their target market’s interests and media habits.)

In turn, brand concept management (e.g., for McDonald’s, Facebook, Burton, Netflix, and Harley-Davidson)
represents the analysis, planning, implementation, and control of a brand concept throughout the life of the
brand. This development can be achieved with appeals to consumers’ functional,
symbolic, and/or experiential needs.

These appeal types all can help to develop a brand’s concept, hopefully, leading to enhanced brand equity and
long-term brand loyalty. Thus, the ultimate objective is to achieve brand loyalty, a consumer’s commitment to
continue using or advocating a brand, as demonstrated not only by repeat purchases, but also by other positive
brand behaviors (e.g., word-of-mouth advocacy, brand identification).16 Relationships among appeals used
to develop brand concepts, brand equity, and brand loyalty are depicted in Figure 2.3.

Figure 2.3. A favorable brand image, brand equity, and strong loyalty does not happen automatically. Sustained
marketing communications are generally required to create favorable, strong, and perhaps unique associations
about the brand

Brand-Related Personality Dimensions

Brands—just like people—can be thought of as having their own unique personalities. Research has identified
five personality dimensions that describe most brands: sincerity, excitement, competence, sophistication, and
ruggedness. That is, brands can be described as possessing some degree of each of these dimensions, ranging
from “the dimension doesn’t describe the brand at all to “the dimension captures the brand’s essence.”

The five brand-related personality dimensions are described and illustrated as follows.

 Sincerity—This dimension includes brands that are perceived as being down-to-earth, honest,
wholesome, and cheerful. Sincerity is precisely the personality that Disney has imbued in its brand.
 Excitement—Brands scoring high on the excitement dimension are perceived as daring, spirited,
imaginative, and up to date.
 Competence—Brands scoring high on this personality dimension are considered reliable, intelligent, and
successful.
 Sophistication—Brands that are considered upper class and charming score high on the sophistication
dimension.
 Ruggedness—Rugged brands are thought of as tough and outdoorsy.

Strategies to Enhance Brand Equity

The following discussion identifies three ways by which brand equity may be enhanced and labels these the (1)
speak-for-itself approach, (2) message-driven approach, and (3) leveraging approach.

Enhancing Equity by Having a Brand Speak for Itself

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
As consumers, we often try brands without having much, if any, advance knowledge
about them. Consumers form favorable (or perhaps unfavorable) brand-related associations merely by
consuming a brand absent any significant brand knowledge prior to the usage experience. In effect, the brand
“speaks for itself” in informing consumers of its quality, desirability, and suitability for satisfying their
consumption related goals.

Enhancing Equity by Creating Appealing Messages

Marcom practitioners can build positive brand-related associations via the power
of repeated claims about the features a brand possesses and the benefits it delivers. This type of brand-equity-
building can be thought of as the “message-driven approach.” Such an approach is effective if marcom messages
are creative, attention getting, believable, and memorable. Yet, we should note that the speak-for-itself and
message-driven approaches are not necessarily independent; that is, consumers ’ associations about the brand
can result from both first-hand experiences and message communications.

Enhancing Equity via Leveraging

A third equity-building strategy that increasingly is being used is “leveraging.” Brand associations
can be shaped and equity enhanced by having a brand tie into, or leverage, positive associations
that already exist through socialization in culture and society.

Leveraging Associations from Other Brands

Among other forms of leveraging, Figure 2.5 shows how a brand can leverage associations from
other brands. In recent years, two brands often enter into an alliance or a co-branding relationship that
potentially serves to enhance both brands’ equity and profitability.
Ingredient branding is a special type of alliance between branding partners. For example, Lycra, a brand of
spandex from DuPont, initiated a multimilliondollar global advertising effort to increase consumer ownership of
jeans made with Lycra.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Figure 2.5 Leveraging Brand Meaning from Various Sources

Leveraging Associations from People

Beyond leveraging a brand’s image by associating itself with another brand, Figure 2.5 points
out that a brand can leverage its equity by aligning itself with people, such as its own employees
or endorsers. A later chapter discusses the role of endorsers in detail, so nothing more will be
said at this time other than to note that brand associations with endorsers can be fabulously
successful (think Michael Jordan and Gatorade) or potentially disastrous (e.g., Tiger Woods
and his public acknowledgement of affairs and the brands that quickly dropped their relationships
with him—Accenture, AT&T, Gatorade, and Gillette).

Leveraging Associations from Things

Other forms of leveraging include associating a brand with things such as events (e.g., sponsorship of the World
Cup soccer championship) and causes (e.g., sponsorship of a save-Darfur rally). Again, no further discussion is
devoted to these topics at this point given that Chapter 21 describes these forms of association in depth.

Leveraging Associations from Places

Finally, a brand’s equity can be leveraged by being associated with places such as the channel in which a brand is
distributed or a country image (labeled country of origin in Figure 2.5). Leveraging a brand by emphasizing its
country of origin is a potentially effective way to enhance the brand’s equity. When a brand leverages its
country of origin, the potential exists for the brand to benefit from this association or possibly to suffer if the
country is perceived in a less than positive light. It obviously is in brand marketers ’ best interest that their
countries of origin are perceived favorably.

What Benefits Result from Enhancing Brand Equity?

• Increased consumer loyalty
• Long-term growth and profitability for the brand
• Maintain brand differentiation from competitive offerings
• Insulate brand from price competition
Difficulty of Measuring Marcom Effectiveness
Though most marketing executives agree that measuring marketing performance
is critically important, a problem resides with the difficulty of measuring marcom
effectiveness. Several reasons account for this complexity: (1) obstacles in identifying an appropriate measure,
or metric, of effectiveness; (2) complications with getting people throughout the organization to agree that a
particular measure is the most appropriate; (3) snags with gathering accurate data to assess effectiveness;
and (4) problems with determining the exact effect that specific marcom elements
have on the measure that has been selected to indicate effectiveness.

Choosing a Metric

An initial problem is one of determining which specific measures (also called metrics) should be used to judge
marcom effectiveness. Although a variety of metrics are available, not all may be equally appropriate for judging
how well a company’s marcom efforts have performed.

Possible options include changes in brand awareness before and after the aggressive marcom program is
undertaken, improved attitudes toward the automobile model, increased purchase intentions, and larger sales
volume compared to last year’s performance. None of these options is without problems.
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Gaining Agreement

As is generally the case when intelligent people are asked to select a particular solution to a problem, consensus
may be lacking. This is primarily due to the fact that individuals from different backgrounds and with varied
organizational interests often see their “world” differently or operate with varying ideas of
what best indicates suitable performance. For example, those in finance may be inclined to view things in terms
of discounted cash flows and net present values of investment decisions, whereas marketing executives have
historically tended to use measures of brand awareness, image, and equity to indicate success.36
Hence, arriving at a suitable system for measuring marcom performance requires gaining agreement from
different company officials, who likely have different views regarding how performance should be assessed.

Collecting Accurate Data

Whatever the measure chosen, any effort to meaningfully assess marcom performance necessitates having data
that are reliable and valid. Returning to the automobile illustration, suppose that sales volume is used to judge
the effectiveness of this year’s marcom efforts. It would seem a simple matter to measure how many units of
the automobile model have been sold during the present fiscal period. However, some of the units sold this year
are residual orders from last. Also, a number of the units sold are fleet sales to companies that are entirely
independent of the marcom efforts directed to consumers. How sales should be calculated can also be
problematic, given the difference between units sold to dealers and units moved through to end user
consumers. All in all, collecting accurate data is no slam dunk.

Calibrating Specific Effects

Our hypothetical automobile company will employ several marcom tools (e.g., advertising media, several events,
and periodic rebates) to persuade consumers to buy their cars. Ultimately, brand managers and other marketing
executives are interested in knowing more than just the overall effectiveness of the marcom
program. They also need to identify the relative effectiveness of individual program elements in order to make
better decisions in the future about how best to allocate resources. This is, perhaps, the most complicated
problem of all. How much relative effect does each program element have on, say, sales volume compared to
the effects of other elements? A technique called marketing mix modeling is increasingly being used for this
purpose.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 Quiz No. 1 Topic 1
Name: Section: Score:
I. True or False.
________1. A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods
and services of one seller or groups of sellers and to differentiate them from those of competition.
_________2. All organizations and their products can be considered brands.
_________3. The concept of brand equity is considered only from the perspective of the customer.
_________4. Brand equity occurs when the consumer considers two competing brands to be similar.
_________5. A firm-based viewpoint of brand equity focuses on outcomes extending from efforts to enhance a brand’s
value to is various stakeholders.
_________6. Revenue premium is defined as the revenue differential between a branded item and a corresponding
private labeled brand.
_________7. Brand equity from the customer’s perspective consists of two forms of brand-related knowledge: brand
awareness and brand image.
_________8. Brand image is an issue of whether a brand name comes to mind when consumers think about a particular
product category and the ease with which the name is evoked.
_________9. Brand recall reflects a relatively superficial level of awareness, whereas brand recognition indicates a
deeper form of awareness.
_________10. Brand associations can be conceptualized in terms of type, favorability, strength, and uniqueness.

Activity
 Provide examples of brands that in your opinion are positioned in such a way as to reflect
the five personality dimensions:
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness

 An ex-CEO of PepsiCo was quoted in the text as saying, “In my mind, the best thing a person can
say
about a brand is that it’s their favorite.” Identify two brands that you regard as your favorites.
Describe the specific associations that each of these brands hold for you and thus why they are two
of your favorites.

_____

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Topic 2
Title : Evaluation of Media: Television and Radio

Introduction :
Emphasis throughout the chapter on the changing role of television and how it is being impacted by
factors such as cord-cutting, multi-tasking, growth of online viewing and other factors.
Topic Objectives:

 Describe the role of television as an advertising medium and its advantages and
limitations.
 Discuss how television advertising time is purchased for network and local television as
well as cable television.
 Discuss how television viewing audiences are measured and developments in audience
measurement.
 Discuss the role of radio as advertising medium and its advantages and limitation.
 Discuss how radio advertising time is purchased.
 Discuss how radio audiences are measured and developments in audience
measurement.

Topic Contents:

Television Advertising
Producing commercials for television is the most expensive. As the technology of electronic
commercial production has soared, so have the costs and the complexity, resulting in greater
specialization in the production process. In the past, most agencies maintain in-house production
facilities. Now, they would rather sub-contract some of the services to cut on costs.
For a student of advertising, general advertising of the basic production concepts is still a must. We
need to know how commercials are made, why commercial production is so expensive, what methods
can be used to minimize expenses on production without sacrificing quality of output or effectiveness
of advertisements.
Script Development
Script for television advertisement is called the storyboard. This is divided into two parts: the audio and
video. The right side is the audio and the left side is the video; or another way is: the upper frame is the
video and the bottom frame is the audio. The video includes the camera action, scenes; whereas, the
audio includes the spoken words, the sound effects and music.
Scenes on the typical storyboard are sketched in frames by art director, and the audio printed on the
right or underneath of each scene. This will help the advertising agency and the client visualize the
concept, estimate the expense, present for approval and final guide for shooting. This is final vision of
what the advertisement will look like. Television advertisement goes beyond the use of words, but also
on believability, credibility and relevance.
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
David Ogilvy points out the following principles in TV Advertising:

 The opening should be a short, compelling attention getter – a visual surprise, compelling in action,
drama, humor or human interest.

 The demonstration should be interesting and believable-authentic and true to life; they should never
appear to be a camera trick.

 The commercial should be ethical, be in good taste, and not offend local mores.

 The entertainment should be a means to an end and not interfered with the message.

 The general structure of the commercial and the copy should be simple and easy to follow. The video
should carry most of the weight, but the audio must support it.

 The character should be the living symbol of your product – they should be appealing, believable and
most of all, relevant.

Visual Techniques for TV Commercial

 Spokesperson. Uses a ‘presenter’ standing infront of the camera delivering the copy directly to the
viewer.

 Testimonial.This should use a well known celebrity who is believable or satisfied customers.

 Demonstration. This should show how the product works and how to use it. It should be relevant.

 Close-up. a voice over is used than a presentation by someone on the screen, where a close-up or focus
is done on the product alone.

 Story-line. This is similar to making a miniature movie, except that the narration is done off-screen.

 Slice-of-life. This is a little play that portrays a real-life situation. This is based on the pattern of
presenting a ‘predicament-solution-happiness’.

 Customer interview. This involve non-professionals, an interviewer or off-screen voice asking a

housewife about her experience in using the product.

 Vignettes and Situations. This consists series of fast paced scenes showing people enjoying the product
advertised as they enjoy life.

 Animation. This may use computer-generated graphics and simulations, or cartoonist technique with
puppets or photo animation.

 Stop animation. Objects and animals, or the product itself is given life in this technique. This makes the
product walk, run, dance and do live tricks.

 Rotoscope. Animated and live action sequences are produced separately and then opticals are
combined.

Elements of Production

 Producing a television commercial involves three stages or steps:

 Preproduction. Includes all the work prior to the actual day of filming. The preparation of the
story board, selection of talents and casting, choosing and arranging of locations for indoor and
outdoor scenes, estimating costs, finding props and costumes.

 Production. Is the actual shooting of the advertisement which can be very long and tedious.
Shooting encompasses the work of filming or videotaping the scenes.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Post production. It is where the commercial is actually put together. Scenes are edited, music
and sound effects added, voices are dubbed and other last minute changes.

With the rising costs of commercial production, these are the factors:

 Superstar talent

 Location shooting

 Large cast-people and animals

 Animation

 Opticals, special effects, stop motion

 Studio shooting

 Set decoration

 Photographic equipment

 Legal requirements

 Night, week-end filming

Buying Television Time

 In buying television time, the advertisers determine available programs and rates, evaluate program
ratings, negotiate for the price, determine reach and frequency, sign of contracts and finally review the
affidavits of performance.

 The media buyer provides the sales representative the date about the advertiser’s media objectives and
target audience and requests for the list of available time slots along with the prices and program
ratings. This list is called avails.

 To determine most efficient program, cost per rating point (CPP) and the cost per thousand (CPT) must
be computer as follows:

Where: Cost per Rating Poing=Cost / Rating

Cost per Thousand = Cost/Thousands of people

Supposing the program “Deal or No Deal” has a rating of 5, reaches 400,000 people in the audiences,
and cost Php 30,000 for 30 second spot on Channel 2.

Then:

Cost/Rating Point=Php30,000 / 5

=Php 6,000.00

Cost per Thousand= Php 30,000 / 400,000

= Php 75

 Pre-emptive rates. Which allows the station to sell the spot for a higher price to another advertiser.

 Run-of-schedule positioning. Which means the stations chooses when to run the commercial.

 Affidavit of performance. Is an evidence that the commercials were aired as paid for.

 TV Household (TVHH). Is the number of households that own television sets.

 Household Using TV (HUTV). It is the percentage of homes in a given area that have one or more TV sets.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Program ratings or share of audience. It is the percentage of TV households in an area turned on to a
specific program.

Radio Advertising

The dramatic increases in media costs is one of the major concerns of advertisers. With the presence of
competition within the industry, radio advertising rate increases have been the lowest among the media. Radio
is a significant medium for advertisers appealing to the mass market and housewives.

The electrical impulses by a radio station refers to the signal. All signals are transmitted by electromagnetic
waves called radio waves. These differ from one another in frequency or the number of waves that pass a given
point in a given period of time. All electromagnetic wave shave height, known as amplitude, where in range can
be similar to the difference between an ocean wave and a ripple in a pond. On the basis of these dimensions,
the principle of amplitude modulation (AM) has variation in sound wave, while frequency remains constant. The
principle of frequency modulation (FM), sound wave varies with a corresponding variation in its frequency.

Drive time rate is an advertisement delivered at the discretion of the announcer, while special features
advertisements are delivered just in time with a traffic update, news report or time report. Radio
advertisements may be delivered live or pre-recorded. A live commercial is delivered in person by station
announcer, disc jockey, newscaster or station personality. Most radio stations accept these maximum word
length for live commercial scripts: 10 sec-25 words; 20 sec-45 words; 30 sec-65 words; and 60 sec-125 words.
The pre-recorded commercials are those produced by an agency, which had gone through talent selection,
musical scoring, sound track and voices recording, with a master tape for reproduction and distributing to radio
programs.

Steps in Radio Advertisement Production

 The advertiser selects a producer or agency.

 The producer or agency prepares bill of materials or cost estimates.

 The producer or agency selects a recording studio.

 The producer or agency selects talents.

 The producer or agency selects a musical director and background music.

 A rehearsal is scheduled.

 The studio records music and sound separately.

 The studio combines musical scoring and sound track with voices.

 The producer or agency prepares several copies taken from master tape for distribution to radio stations
or programs.

 The advertisement is now ready on the air!

Common Techniques in Radio Advertisement

 Straight Announcer Technique. An announcer or personality delivers the entire script.

 Two Announcer Technique. Two announcer alternative delivering sentences or groups of sentences of
advertising copy.

 Announcer-Actor Technique. Includes actor or actress voice giving reactions to the line delivered by the
announcer.

 Slice-of-Life Technique. A dialogue which reenacts a true-to-life scene involving the listener or talent in a
problem situation where possible solution is the advertised product or service.
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Jingle-Announcer Technique. A part of the copy is musical sound or song, combined with a line delivered
by the announcer which sets the product different from other advertisements on radio.

 Customer Interview Technique. The announcer may talk to an actual customer in the field or within his
studio booth, relating his experiences about the product or service advertised.

Qualities That Make Radio Advertisement More Effective

 Simplicity. Use short, simple, picture-building words.

 Coherence. Move from one topic to another; from one product feature to the next.

 Rapport. Always make use of the word “you”, referring to the listeners and customers over the radio.

 Believability. Adhere the truth in advertising; honesty in claims for features, benefits and advantages.

 Interest. Develop listeners desire to experience the product advertised.

 Distinctiveness. Make the advertisement unique with its tagline or slogan, music, sound or voices.

 Compulsion. Finally desire for action, attain listeners to act and buy the product or experience the
service advertised

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 Activity on Topic 2

A 20-seconder radio advertisement can run 45 words. Using Straigt announcer technique, prepare a radio
advertisement for these products. Practice reading the lines to check whether it will take 20 seconds to
deliver the advertisement effectively.

 Detergent bar
 School
 Fastfood chain
 Bank
Choose two local magazine advertisement, rewrite its layout into a:

 60-seconder radio commercial’, and;

 30-seconser radio commercial. Be sensitive with the number of words to use.

Rubrics on Radio Advertisement

Exceeds Meets Some Expectation Below

Expectation Expectation 20 points Expectation
35 points 30 points 15 points
Application of Exceeds Meets Some Below
Language expectations expectations expectations expectations
Knowledge
Present information Present an original Present a Present some Present an
in the form of a and persuasive successful elements of a advertisement only
radio ad. advertisement advertisement. successful in a limited way or
advertisement. copied an already
existing ad.
All required Exceeds Meets Some Below
elements expectations expectations expectations expectations
included.
Few necessary
All necessary All necessary Some of necessary elements included.
-attention getter
elements included - elements included. elements included.
-product name
additional
-argument
information given.
-counter argument
-call to action

Pronunciation, Exceeds Meets Some Below

Intonation, expectations expectations expectations expectations
clarity
Always spoke with Often spoke with Sometimes spoke Rarely spoke with
proper proper with proper proper
pronunciation, pronunciation, pronunciation, pronunciation,
intonation, clarity, intonation, clarity, intonation, clarity, intonation, clarity,
and loudness. and loudness. and loudness. and loudness. No
Great vocal variety Some vocal variety Hardly any vocal vocal variety used.
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 used to persuade used. variety.

Review and Exceeds Meets Some Below

practice expectations expectations expectations expectations
Shows evidence of Often shows Sometimes shows Rarely shows
rehearsal, practice, evidence of evidence of evidence of
and review. rehearsal, practice, rehearsal, practice, rehearsal, practice,
and review. and review. and review.

Source: https://www.rcampus.com/rubricshowc.cfm?code=YC27A8&sp=true

Topic 3
Title : Evaluation of Media: Magazine and News Paper

Introduction :
Discusses challenges facing the magazine industry. Updated discussion of how both magazines and
newspapers are being impacted by the Internet and digital media.
Topic Objectives:

 Describe how advertising space is purchased for magazines.

 Describe the newspaper audience and audience information and research for
newspaper.
 Discuss how advertising space is purchased for newspapers and rates are determined.

Topic Contents:
Magazine Advertising
Magazine is a paper back publication that is issued at regular intervals either weekly or monthly. It
contains stories, articles and other featured items of various writers, that may interest reader. A
publication which is one of the major national advertising medium to advertise goods and services.
Magazines are most permanent of all the mass media since they are kept for moths and advertising
message are seen a number of times.
An advertiser who plans to advertise in a particular magazine during the coming months will sign a
space contract in order to get the best rate. This is an agreement between the publisher and the
advertiser, according to which the advertiser is interested to advertise his product or service at the
current rate; at the specified size; page number; dates of insertion; position of the advertisement; and
upon the space contract, he sends an insertion order to the publisher that makes clear the instructions
from an advertiser authorizing the publisher to print an ad of specified size and given date at an agreed
rate.
Magazine Elements
Space magazine is general sold in terms of full pages and fractions thereof-half pages, quarter pages,
three columns, two columns or one column; or a total of per column centimeters.
Space buying designation of magazines consist of:
 First cover page. The front cover of the magazine; page one of the issue.
 Second cover page. The inside of the front cover; page two of the issue.
 Third cover page. The inside of the back cover; page forty-nine – if magazine has fifty pages.
 Fourth cover page. The back cover; page fifty – if magazine issue has fifty pages.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
When a magazine advertisement runs all the way to the four edges of the page leaving no white space
margin it is known as full bleed advertisement. A partial bleed advertisement leaves white space
margin on all or any of the four sides of the full page. When an advertisement is positioned on the
second cover page where an extra page spreads out when opening the page that gives a big spread
this is known as gatefold. A centerfold advertisement also called “multiple unit” ad is positioned on the
two middlemost pages of the magazine issue. Some advertisement may have return cards, coupons,
recipe booklets and this is called inserts.
In buying magazine space, the important dates that must be considered are the cover date, on sale
date, closing date. Cover data is the date appearing on the cover. The date on which the magazine is
issued is the on-sale date, wherein this is usually a week advance from the cover date. Closing date is
the deadline on which the blueprint or negative must be submitted to the publisher’s hands in order to
print the advertisement for particular issue.
Bulk discounts or frequency discounts may also be offered by the publisher based on the total time
number of space bought, usually within a year. Volume discounts are given based on total amount of
space bought.
Parts of Print Advertising
 Headline. Is commonly presented at the upper portion of the space, in big fonts and variety of
designs. It can be a news headline, taking the form of an announcement about the new product.
It maybe the words “new”, “introducing”, “narito na”. Command headline starts with an action
word encouraging the reader to take an immediate action to buy the product.
 Illustration. Is the visual part of the advertisement. This puts the words into pictures. Forms of
illustration can be photographic form, using the actual picture of product. A pen and ink drawing
using caricature or cartoonist technique. A matrix type, combining a photograph and cartoonist
illustration.
 Copy. These are the words of the advertisement. This features, benefits and advantages of the
item advertised in simple phrases, series of sentences or long paragraphs.
 Descriptive type which briefly describes the characteristics of the product or service and
satisfaction the consumer can experience out buying the item.
 Narrative type of copy presents series of action or steps, with individual caption for every
step of action.
 Expository type of copy uses long sentences, series of paragraphs to explain all
characteristics of item advertised.
 Product exposition consists of lines expounding on the product or service features,
advantages, benefits. Action line it is the clincher, which must motivate the reader to “act
now”.

 Layout. Integrates the first three parts into one whole advertisement. This places the
headline, illustration and copy in their proper spectrum.
 Billboard layout or poster type is dominated by big illustrations and minimal of
copy.
 Editorial layout on the extreme, has so much copy, without illustration. This
targets highly professional and educated segments which can visualize the
product from the paragraphs presented.
 Conventional layout is the most traditional, having the presence of the three parts
and space equally divided to headline, illustration and copy.
 Comic strip layout is done in pen-and-ink cartoonist technique presented in
humorous concept.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Photo-caption layout is presented in series of pictures, each photo with caption to
communicate the advertising message.
 Some advertisers find it economical to use omnibus layout, featuring all products
of single advertisers in one full page.

The Copywriter’s Terminology

 Headline. Refers to the words in the leading position of the advertisement, the words,
that will be read first or that are positioned to draw the most attention.
 Subhead. Are like little headlines. They usually appear in a smaller type size than the
headline, they almost invariably larger than the copy.
 Lead-in paragraph. Is the link between the headline, the subheads and the sales idea
presented in the copy.
 Interior paragraph. Are lines where interest and desire of the reader can be build up.
 Trial close. Is the initial asking for order.
 Close. It can be direct or indirect statement for consumers to do something.
 Boxes and panels. These are used for advertisements with coupons, special offers,
reply or order forms

Creative Art
 Art. In advertising refers to the whole visual presentation, how the words are arranged, the size
and style of type, photographs and illustrations and how they should be organized.
 Art directors. This are responsible for the visual presentation of the advertisement.
 Graphic designers. These are the people engaged in arranging various graphic elements
including type, illustrations, white space in the most attractive and effective way possible.
 Illustrators. These are the artist who paint or draw the pictures of advertisement.
 Production artist. Or paste up artists are responsible for assembling the various elements of an
ad and mechanically putting them together.
The Advertising Visual
 Principle of Balance. Balance is the arrangement of the elements as they are positioned on the
page-left side of the optical center versus the right and above the optical center versus below.
 Principle of movement. This causes the readers to look at the advertisement in the sequence
desired, such that the placement of people, or animals can cause their eyes to direct our eyes to
the next important element to be read.
 Principle of Proportion. Elements or parts of the advertisement should be given space based on
their importance.
 Principle of Contrast. This involves contrast in color, size or style.
 Principle of Continuity. This achieved by using the same design format, style and tone for the
advertisement.
 Principle of Unity. Balance, movement, proportion, contrast and color may contribute to the unity
of design.
 Principle of White Space. This is intended to focus attention on an isolated element, or to rest
the eyes of the reader for a colorful advertisement.
Visual Focus
 Package of the product. This will help consumers identify the product on the point of purchase
or selling shelves.
 Product itself. This should show the advertised item itself.
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Product in use. This should be demonstrate how the car is use with selling point on luxury or
economy.
 Product features. This should present product benefits, advantages, and features. It should
show a way to get customer’s attention and show how the advertised product or service will
benefit them.
 Product comparison. A brand advertised being compared with another competitor or other
brands.
 Product comparison. A brand advertised being compared with another competitor or other
brands.
 Humor. Most advertising is entertainment, humor can make positive and lasting impression.
 Testimonial. This can make the advertisement not just truthful but also believable as indorsed
by a well-known personality.
 Before and after. This may show variation of the illustration to recognize differences.
 Negative appeal. Quite effective to point out what happens if the advertised product is not used.
Illustrations of not using the product will be very compelling.

Psychological Impact of Color

Reaction to color, says Walter Marguiles “ is generally based on a person’s national origin or
culture.
 Violet and leaf green. Fall on the line between warm and cool.
 Red. Symbol of blood and fire.
 Brown. Masculine color, associated with earth woods, mellowness, age, warmth, comfort – the
essential male.
 Yellow. High impact to catch consumer’s eyes, particularly when used with black;
psychologically right for corn, lemon or sun tan products.
 Green. Symbols of health and freshness; popular for tobacco products especially mentholated.
 Blue. Coldest color, with most appeal; effective for frozen foods.
 Black. Conveys sophistication, high end merchandise and is used to stimulate expensive
products; goods as background and foil for other colors.
 Orange. Most edible color, especially in brown tinged shades, evokes autumn and good things
to eat.
Newspaper Advertising
Newspaper is a publication regularly printed and distributed, usually daily or twice a day, containing
news opinion, items of general interest and advertisements. This is usually the common advertising
medium for small firms and retailers as well as some corporations. Newspapers are dealing with a
population much different from that of a decade ago. Readers want more local news of the
neighborhood and suburb, and this is a feature making tabloids more attractive than standard
newspaper.

Types of Newspaper Advertising

1.Display Advertising

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Allowed to use any larger space desired

 Allowed to use color

 Measure per column centimeter

2. Classified Advertising

 Published under different headings: “Help wanted ads.”

 Uniform width, measured in terms of number of lines occupied

 Not allowed to use larger space and typeface.

 Not allowed to use color

3. 3. Classified Display Advertising

 “Box ads” about job vacancies

 Allowed to used larger space

 Allowed to use decorative border lines and company logo

 Not allowed to use color

 Measured per column centimeter

4. Legal Advertising

 Advertisement by government offices

 Measured per column centimeter

5. Amusement Advertising

 Advertisement of movies to be shown, concerts, stage plays and other activities’ schedules for relaxation
or pleasure.

6. Other newspaper Advertising

 Service termination notices

 Obituaries/death notices

 Anniversaries, birthday announcements and greetings.

The Rate Structure for Newspaper Advertising

1. Discount Rate. Open rate provides some discount structure classified as frequency discount or
bulk discount.
1. Frequency discount is based on unit or pattern of purchase in addition to total amount of space.

2. Bulk discount refers to sliding scale wherein the advertiser is charged proportionately based on
the advertisement purchased.

3. Flat rate offers a uniform charge for space without regard to the amount of space used or the
frequency of insertion, no discount is offered.

2. Run-of-paper rate (ROP). Includes rated quoted by a newspaper publisher which entitles the
advertisement to be positioned anywhere in the paper that the publisher chooses to place it.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 3. Combination rate. A special rate for newspaper, such as morning paper and an evening paper, set by
some publisher.

Activity on Topic 3

a. Bring to class a local magazine issue. Discuss before the class space buying designation on
cover pages and right hand pages.
b. Bring to class clippings of print advertisements showing various ways of using the magazine
space. Discuss before the class how these advertisements are measured, paid, and presented
over the space.
c. Bring a local magazine issue. Discuss why you believe advertisers had chosen the medium to
place their products or services.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
MODULE 3
Module Title : Special Topics and Perspective Topics
Overview :
Out-of-home media advertising is focused on marketing to consumers when they are "on the go" in public
places, in transit, waiting (such as in a medical office), and/or in specific commercial locations (such as in a
retail venue). OOH advertising formats fall into six main categories: billboards, street, roads, highways,
transit, and alternative. Direct response is a type of marketing designed to elicit an instant response by
encouraging prospects to take a specific action. Direct response advertisements must trigger
immediate action from prospects, since the goal is to generate leads quickly. The marketing
communication mix, sometimes referred to as the promotion mix, is a set of five tools that businesses
use to communicate with their customers, prospects and stakeholders. It doesn’t matter how large or
small your organization is, or what kind of products or services you sell, utilizing an effective marketing
communication mix can help you increase your revenue.

Coverage :
Topic 1 : The Advertising Media: Out of Home and Direct Response
Topic 2 : Other Elements of the Marketing Communications/Promotional Mix

Topic 1
Title : The Advertising Media: Out of Home and Direct Response

Introduction :
Out-of-home advertising (OOH) is any visual advertising media found outside of the home. This can
include billboards and signs, ads on street furniture like bus shelters or benches, in transit areas like
airports or train stations, and place-based ad media like you might see at a stadium or in the cinema.
These various formats account for thousands of locations and millions of screens around the world.
Direct response advertising is primarily interested in generating conversions. Keep in mind, the
primary purpose is to elicit a specific, immediate action (aka a “direct response”). This action could be
to download a resource, sign up for an account or free trial, schedule a demo, or even make a
purchase.
Topic Objectives:

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Discuss the outdoor advertising.
 Describe the forms of outdoor advertising and its other forms
 Illustrate Transit Advertising
 Discuss the direct response advertising, direct response media, direct media, home tv
shopping, telephone marketing, E-to-B-to I Advertising (Electronic to Business to
Internet), website and basic media strategy

Topic Contents:
Outdoor Advertising
This is the advertising medium that demands attention from the travelling public, particularly
advantageous for well-known brands. This provides the largest and most colorful display for an
advertiser’s trademark, product and slogan. Creative outdoor advertisement consider fewer words,
larger illustrations, bolder colors, simple background and clearer product identification.

Forms of Outdoor Advertising

 Poster Panels. These are standardized outdoor signs which measures 12 by 25 feet either
illuminated or un illuminated.
 Painted bulletins. Are outdoor signs that are painted rather than papered. These are more
permanents and expensive that poster panels, and usually placed in high traffic location.
 Spectaculars. Make use of lights, motion or action.

In choosing a location for outdoor, space position considers:

 Length of unobstructed approach-distance from which the outdoor advertisement is visible for
the commuters or pedestrians.
 The traffic – wherein the heavier the traffic , the better.
 The placement
 Size and type of outdoor advertisement.
 Immediate surroundings- what other outdoor advertisement are available in the same location.

Other Forms of Outdoor Advertising

 Some marketing communications company offer cost-effective advertising solution.
 They can take of advertising and marketing needs from conceptualization to media placement,
from printing to installation
 Roving billboards or sometimes called ‘porta panel’ may be inclusive of the following services:
 Maintenance
 Installation and dismantling
 Documentation required
 City permits

Transit Advertising
MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Potential customers are always exposed to wide array of message on buses, trains, taxis,
commuter stations, airports.
 They find themselves reading and re-reading those overhead advertisements on these public
utility vehicles. All of these are ‘transit advertising’.

 ‘Interior transit advertisement’ are found inside the public utility vehicles. Car cards are
commonly used, which may make two impressions a day, since the commuters go back
and forth on the same route with the same transit line
 ‘Exterior transit advertisement’ are obviously outside the public utility vehicles. Sold on
the number of displays, or units. Options for exterior displays are:
 King size-right side of the bus
 Queen size-left side
 Busorama-on top of PUV
 Travelling display-in front and back of the vehicle
 Headlight-in front of the vehicle
 Taillight-rear / back of the vehicle
 Shelter Advertising-Transit Ad- These are found in bus fleet station or public commuters
waiting sheds in national roads, which are negotiated with the engineering office of the
locality
 Total Unit Contract- Advertisers desiring to buy both the interior and exterior space of
the public utility vehicle enters an agreement.

Direct Response Advertising

This tool uses a two way communication and an immediate reply device, making it different from other
types of advertising. This can make use of mail, television or internet. It is interactive, since the
transaction takes place between the advertiser and consumer.

Direct Response Media: Direct Mail, Home TV Shopping, Telephone Marketing and Electronic
Business
 The direct mail is the common medium used in direct response advertising.
 The direct mail package includes the : envelope, letter, brochure, order form, act now and reply
envelope.
 The use of TV channels for Home TV Shopping is another media for direct response. This
differs from a traditional television advertisement in terms of format.
 The use of TV channels for Home TV Shopping is another media for direct response. This
differs from a traditional television advertisement in terms of format.
 The home tv shopping advertisement demonstrates how the product is used, the features and
advantages.
 Telemarketing is the used of landlines as amassive network linking almost every home and
business in the country.
 This is conceived to be personal medium, since the human voice is the most persuasive of all
tools presented.

Electronic Business: Internet Advertising

The internet consist of four components:

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Electronic mail. It is used to send messages using the internet, in the Layman’s term- it is
sending letters through internet linkages.
 Internet relay chat. Makes it possible for parties to talk electronically despite of the distance.
 Usenet. It is a group forum wherein members and interested parties share their knowledge.
 World Wide Web (www). It is the collection of data, making it accessible to search for
information of interest.
 Corporate home pages identify the company and the brand supporting the site.
 Virtual mall is another way to post advertisement in the internet. This is a gateway to a group of
internet storefronts that provide access to mall site.

Measuring the Effectiveness of the Internet

 Hits. The number of time a specific component of a site is requested. It could represent 100
people making one request or one person making 100 request. The primary value of hits is to let
the website owner know which part of the site are most and least popular.
 Viewers. The number of viewers to a site.
 Unique visitors. The number of different visitors to a site within a specified period of time.
 Clicks or clicks thru. The number of visitors to a site that click onto a banner and to retrieve
more information.
 Impression or page views. The number of time viewers view a page.
Some other measures…
 Online measuring. This gives information regarding demographics, psychographics, location of
web access and buying habits.
 Recall and retention. This determines whether viewers remember the ads they see, and recall
them using interviews.
 Nonresponse. Determines where consumers go once and they have exposed to and
advertisement but decide not click on it.
 Surveys. Research online and using traditional methods determine everything from site usage
to attitudes towards a site.
 Sales. The prime indicator of effectiveness is the number of sales generated.

 Tracking. This give information regarding site performance, including downtime and
speed. It analyzes shopping patterns, frequency of hits, number of repeat visitors and
the like over a period of time to assist advertisers in developing more effective
messages.

Basic Media Strategy

 Identify the marketing goal. This refers to the objective of the client for the product or service to
advertise. The marketing goals is the statement of what the marketer wants to attain within a
given period of time.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
  Identify the nature of copy. The copy consists of the text of the advertisement, stated in series of
sentences, paragraphs, or belief phrases.
 Identify the money available. The smaller the budget of the advertiser, the greater is the need
for resourcefulness.
 Identify the major characteristics of the target market. Main characteristics of the people to
reach, will identify the best media to use. This will determine the media hat the market is
frequently expose to.
 Identify where the product is distributed. Knowing the channels of distribution for the product or
service, identifying where it is available, will be guide for local media to advertise.
 Identify the reach, frequency or continuity. Reach refers to the total number of people whom the
advertiser wants to deliver the advertising message; frequency is the number of times the
advertisement shall be delivered within a given period; and continuity is the length of time the
advertising schedule or reservation runs.
 Identify the best timing for the advertisement. Some advertisement are under ‘steady program’
category, whereas others are under ‘seasonal program’. Steady program advertisement are not
selective in terms of the year. They can be placed over the media anytime of the day; any day of
the week; anytime of the year. Seasonal program advertisement are selective in terms of time,
day to advertise. These are the products where demand is highly selective and they purchase
on certain season of the year
 Identify special merchandising plan. This may include sales promotional plans for the product.
 Identify the best media combination. The effective way to determine the best media
combination for basic media strategy can be achieved after compliance with the eight preceding
items.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 Quiz No. 1 on Topic 1
Name: Section: Score:
Memory Recall.
_________1. Takes services of agents who call on prospects to offer product or service.
_________2. Process where in it is the customer who calls the company either to place orders or to
convey concerns.
_________3. Internet advertisements can be posted on these sites identifying the company and the
brand supporting the site.
_________4. A gateway to a group of internet storefronts that provide access to mall sites at a defined
category.
_________5. The number of times a specific components of a site is requested by internet prospects.
_________6. The number of times viewers view a page.
_________7. This determine whether viewers remember the ads they see on line.
_________8. The statement of what the marketer wants to attain within a given period of time.
_________9. Advertisements are selective in terms of time and day to advertise.
_________10. Sales promotional plans for the product which can be integrated within the advertising
layout.

Activity
Design your own out-of-home materials i.e. billboards, transit, or shelter related to the products
that assigned to your groups.
Rubrics on Creating a Billboard

Exceeds At Standard Approaching Not a Standard

Standards 30 points Standard 15 points

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
 35 points 20 points
Attractiveness & The billboard has The billboard has The billboard has The billboards
exceptionally attractive well organized formatting and
Organization attractive formatting and information. organization of
formatting and well-organized Some graphics material are
well-organized information. are colored, lacks confusing to the
information. Graphics are needed detail, reader.
Graphics are colored, have drawings are Graphics are
colorful, detailed, some detail, lacking effort & missing or are
neatly drawn & nicely drawn and are sometimes not neatly drawn
clearly related to related to the related to the with detail. Text
the text. Text is text. Text is text. Text is is is missing and or
bold, eye- typed or hand not typed is sloppy.
catching, typed written. properly or is
or NEATLY written in a
printed. manner which is
not appropriate
for this
assignment
Graphics & Text Graphics go well Graphics go well Graphics do not Graphics and or
with the text and with the text, but go with the text are
there is a proper there is a slight accompanying generally lacking.
balance of text imbalance text or appear to
and graphics. between text and be randomly
graphics. chosen.
Title Title can be read Title can be read Title can be read The title is too
from far away from far away from close by small and/or
and is quite and describes and describes the does not describe
creative. content well. content well. the content of
the billboard
well.
Grammar/Punctuatio Capitalization, There is 2 error There are 3 There are more
punctuation, and in capitalization, errors in than 4 or more
n grammar are punctuation, or capitalization, errors in
correct grammar. punctuation, or capitalization,
throughout the grammar punctuation, or
billboard. grammar
Source: https://www.rcampus.com/rubricshowc.cfm?sp=yes&code=FAW224&

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Topic 2
Title : Other Elements of the Marketing Communications / Promotional Mix
Introduction :
Marketing is a broad business function that includes product research and development,
merchandising and distribution processes and pricing, as well as communication or promotion. The
communication mix refers to specific methods used to promote the company or its products to
targeted customers. Some depictions of the promotional mix include five elements, while others add a
sixth – event sponsorship.
Topic Objectives:

 Discuss the sales promotion

 Differentiate the sales promotion devices
 Introduce the Introductory Sales Promotion Devices for Consumer
 Illustrate the sales promotion devices to increase use of an established product.
 Discuss the sales promotion devices for retail stores and trade.
 Differentiate public relations and publicity
 Discuss public relations, areas of public relations programs and basic steps in public relations.
 To illustrate the measuring effectiveness of public relations.
 Discuss the publicity, personal selling, combining personal selling and with other promotional
mix elements.
 Discuss the event marketing, point of purchase advertising and Directories and Yellow pages.

Topic Contents
Sales Promotion
The growing power of retail outlets, the decline in consumers buying loyalty, increase in buyers
awareness of promotion and rise in new product introduction, as well as fragmentation of the
consumer market, are just few of the reasons for the increase in concern for sales promotions

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Sales promotion can contribute to the long-term development and reinforcement of brand identity and
image; or can be designed to accelerate of promote purchases and generate immediate sales and
income for the firm.
Sales promotion as a tool in marketing gives rise to increase in product usage as well as expansion of
markets for a product or introduction of new product. Its objective are:
 To motivate consumers to try a new product or an improved model of an established product.
 To attract new customers
 To encourage present customers to use the product or service more frequently.
 To bear competitor’s promotional activity.
 To increase the amount of impulse buying by consumers.
 To get greater cooperation from retailers.

Generally, sales promotion is planned in order to increase sales. Specifically, its goal will depend on how it is
used, to whom it is directed and how it is transmitted. There are three forms and goals of sales promotion.

 Those sales promotion intended to increase sales of product being promoted and
communicated directly to the consumer.
 Those sale promotion whose goal is to make consumers buy a product at a specific retailer’s
place of business, aimed at the consumers through the retailers.
 Those sales promotion intended to motivate and stimulate channel of distribution like
wholesalers and retailers to handle a line of goods and to promote it more actively.

Allocation of resources is another aspect to planning sales promotion programs which include the procedure for
recording and administering expenditures and the budget allotted to be spent on sales promotion of devices.
The basic elements of a sound sales promotion plan consists of:

 Starting and closing dates of the sales promotion device.

 Anticipated date for its appearance on the shelves or floors of dealers or delivery to consumers.
 Regional variations in dates or terms of sales promotion
 Details on dates and kinds of advertising, direct mail or point of purchase material that will
support the promotion.
 Nature and extent of the offer or deal.
 Instructions to the sales force on how to handle the device.
 Anticipated costs of each element of the promotion.
 Recapitulation of competitive promotion activity and changes in competitive advertising and
merchandising.

Relationship of sales promotion to other marketing functions may be apparent in different forms. The
interaction of salesmanship, advertising and sales promotion is known as marketing or promotional blend, which
moves a product or service to consumers through more than one channel or vehicle of promotional
communication.

Sales Promotion Devices

Sales promotion devices have two main forms: those that are directed to ultimate consumers to increase
produce use and sales; and those directed to trade (wholesalers and retailers) stimulating dealership and
distributorship. Consumer sales promotion devices come in two objectives: those that are used during
introductory stage of the product, and those intended to increase use of product.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021
Introductory Sales Promotion Devices for Consumers

 Samples. It is the actual offering of a free product trial to a consumer. Characteristics of this
device are : trial size of the product to be sampled is offered to consumers, and the offering of
the product must be free.
 Coupons. It is a certificate that when presented for redemption at a retail store, entitles the
bearer to a stated saving on the purchase of specific product.

Sales Promotion Devices to Increase Use of an Established Product.

 Price-off promotion. These are devices which offer consumers a certain amount of money off
the regular price of a product and identify the amount of the reduction on the label or the
package. Price-off promotion is a strong trial-gaining device, often purchased in greater
quantities by the distributors in anticipation of more frequent purchases by consumers.
 Premium. It is an item or merchandise that is offered at cost at relatively low cost as a bonus to
purchasers of a particular product. Premium attract brand switchers and can also be used to
trade-up consumers to larger sizes of the product.
 Contest ad sweepstakes. Contest is a sales promotion device in which participants compete for
a prize or prizes on the basis of the skill in fulfilling a certain requirement, usually analytical or
creative.

Sales Promotion Devices for Retail Stores

 Trading stamps. These are given for purchases in a particular retail outlet. The value and
number of stamps that the buyer will receive depends on the value or amount of goods
purchased.
 Retailer coupons. These are distributed for products which the retailer carries and not only the
manufacturer’s brands. This can attract consumers to buy specified brands available at the
retailer’s outlet.
 Retail displays. These are also known as point-of-purchase (POP) or point-of-sale (POS). kinds
are outside signs, window display, counter pieces and display racks.
 Demonstration. Shows how a product works and attempts to make consumers purchase it.

Sales Promotion Devices to the Trade

 Deals or merchandise sales promotion devices. Aims at convincing retailers and obtaining retail
distribution of a product, for the retailers to carry merchandise and manufacturers. They can be
in the form of buying allowances, amount deducted from the face of the invoice for
merchandise offered; or free goods given o distributors at no cost depending on the amount of
ordered goods.
 Advertising and display allowances. These are trade deals inducing wholesalers and retailers to
promote a product through advertising and display. Cooperative advertisements mention the
manufacturer’s brand and retail outlets where the brand is available. Dealer-listing announces
the names and addresses of retailers who stock the product and who are cooperating in
promotion.
 Direct stimulants of retailers and retail salesmen. It is intended to push a manufacturer’s
products. This include push money, sales contests and dealer loaders, wherein premiums are
offered to retailers such as gifts given for big orders or display loaders.

MKM105 ADVERTISING
Compiled by: Prof. Leslie Ann U. Gamundoy
College of Business Administration and Accountancy
First Semester 2020-2021