learner guide for -...

Learner Guide

for

Marketing Communications 2 (MC201) Marketing Communications (MC)

2011

The copyright of all IMM Graduate School of Marketing material is held by the IMM

GSM. No material may be reproduced without prior written permission from the IMM

GSM.

Revised: October 2010

IMM GSM© of 116 MC201/MC

Table of contents

SECTION A

1. Word of welcome………………………………………………………... 3

2. How to use this guide…………………………………………………... 5

3. Purpose and overall learning outcomes…………………………...... 6

4. National Qualifications Framework specifications…………….……. 7

5. Pre-knowledge……………………………………………………..…... 7

6. Relationship with other modules………………………………………. 8

7. Prescribed textbook…………………………………………………….. 8

8. Curriculum……………………………………………………….……..… 9

9. Specific learning outcomes…………………………………………..... 11

10. Critical cross-field outcomes……………………………….………….. 13

11. Assessment details…………………………………………….……..… 15

SECTION B

1. Study Unit 1: The concepts, challenges and processes of integrated

marketing communications communication and marcom’s role ….. 18

2. Study Unit 2: IMC and its fundamental decisions ………………….. 32

3. Study Unit 3: Advertising management ……………………….......... 46

4. Study Unit 4: Sales promotion management ……………………..... 82

5. Study Unit 5: Other marcom tools ………………………………….... 93

6. Study Unit 6: Marcom restraints ……………………………………... 104

7. Study Unit 7: Formulating a marcom plan ………………………….. 107

8. Bibliography:………………………………………………….………… 116


SECTION A

1. Word of welcome

Welcome to the exciting module of marketing communications – a subject that

opens up a world of understanding of the myriad communication messages you

see and hear every day. Even today, as you watched television, paged through a

magazine, listened to the radio or surfed the net or chatted on Twitter, you were

faced with numerous marketing messages aimed at promoting a service or

product, or persuading you to take a certain action or to accept an offer. Now, as

you enter the field of marketing communications (marcom), you will begin to

understand not only how these messages are planned and executed, but also

how to use this understanding to produce effective marketing communication

strategies for reaching your target audience.

The field of marcom is ever changing. Brand and product managers continually

endeavour to obtain an advantage over competitors and try to achieve large

market shares and profits for the brand or products they manage.

Every product or service that you want to market requires a systemised strategy

of marketing communication. If others are unaware of your products or services,

how can they be interested in buying or using them? Your marketing

communication could range from a simple advertising message to a process of

spurring others on to ‘take a chance’ with your product.

The latter is what sales promotions are all about. Your approach could even be

more sophisticated than this. When you truly understand who your potential

customers are and what makes them act; when you really understand who these

people are, and how they live and what they desire, then you can plan a direct


marketing campaign. It gets even more intricate than this. People will trust your

messages only if they trust you, and for this you need to build relationships. This

can be done through thorough and continuous building of public relations.

Sometimes you will need to partner with other well-known and respected brands

to enhance the perception of your trustworthiness in the market-place. This

entails sponsorships which you will come to understand in the course of this

module. This is the essence of marketing communication.

It is important to remember that our understanding of marketing communication is

not static; it evolves as technology develops and as we become more

sophisticated in our communication. With every new channel through which

people communicate, comes not only new challenges but new opportunities

through which marketers can convey messages. Think, for instance, how the

Internet, your mobile phone and email have transformed your world and put you

in touch with people who could become your customers. Think about the recent

developments in the area of social networking and the online revolution with

Twitter, Facebook, Linkedln and many others.

As you enter this journey of uncovering Integrated Marketing Communication

(IMC), realise that you will learn more than what these various channels of

marketing entail. You will also learn how to strategically think about how to

manage the marketing communication mix, and to optimise your communication

with the world by evaluating potential strategies. Keep in mind that this will entail

major decisions, including planning your integrated campaign, determining the

budget, selecting the media through which the campaign will be launched, and

coordinating the whole process. It will also involve the management of

relationships with many stakeholders but, in the end, the reward of effective

marketing communication holds the promise of more than just improved profits.

South Africa is more than ever ready for creative, original and passionate

marketers who can master the art of integrated marketing communication in an


ethical and conscious way. We trust that this learning experience will equip you

to be one of them!

2. How to use this guide

The Marketing Communications module is designed to be a combination of

theory and practice. It focuses on the theory behind and application of marcom.

Experience has shown that most students taking this module will be brand or

product assistants or managers, rather than suppliers, especially at the earlier

stages of their careers. The goal then is to instil in you a healthy sense of

respect for, and understanding of marcom. We aim to make you a confident

marcom specialist. The most effective way to achieve this will be to ensure that

you understand and enjoy the module.

The learner guide is especially designed for a student who studies at a distance.

The guide will provide an overview of the total curriculum and will indicate the

learning outcomes, which are essentially the core of this guide. It will provide you

with each major topic that has to be covered, along with the learning outcomes

for each topic, which are systematically explained. The guide will also indicate

how the learning material must be prepared for assessment.

The learner guide should be studied in conjunction with the textbook and does

not replace the textbook.

At the end of each study unit you will find some typical examples of examination

questions which should be used for self-evaluation.


The following icons appear in all of the learning guides of the IMM Graduate

School of Marketing:

indicates the learning units in the prescribed textbook that you

need to study.

indicates the self-evaluation questions.

3. Purpose and overall learning outcomes

The aim of this module is to expand your knowledge of the role of an integrated

marketing communication strategy in an organisation and the role marketing

communications play within IMC. Emphasis will be placed on the key areas of the

‘what’, ‘how’ and ‘where’ of IMC; reaching the targets of IMC; advertising

management; sales promotion management; and supportive marketing

communication tools, such as public relationships and sponsorships. These are

the primary elements of all marketing communication activities.

Over and above an understanding of the terminology of marketing

communication theory, this course aims to develop both a strategic and practical

understanding of the implementation of the module. As you develop your

knowledge, it is essential that you also focus on how to implement this

knowledge – a critical characteristic required of any first-class brand manager.

indicates learning outcomes


To achieve these goals, you will not only have to carefully follow the guidance

and instructions of this learner guide, but you will need to observe, in your every

day life, how these principles are implemented, and critically evaluate their

effectiveness. The assignment described later in this learning guide, as well as

the examinations, will evaluate to what extent you have succeeded in reaching

the objectives of this course.

4. National Qualifications Framework (NQF) specifications

This module forms a compulsory module for the BBA in Marketing Management

as well as the Diploma in Marketing Management.

In terms of the new National Qualifications Framework (NQF) it is designed as a

20-credit module offered on NQF level 6.

The IMM Graduate School of Marketing regards Marketing Communications 2 as

a second year module.

5. Pre-knowledge

Marketing Communications 2 requires a thorough understanding of the principles

of marketing (Marketing 1), Business Communications 1 and Business

Management 1 and, for this reason it is a second year module.

It is also assumed that you will be sufficiently computer literate and that you will

be able to operate the Internet when attempting this module.

A sound knowledge in the use of the Harvard Referencing System is compulsory

before attempting this module.


6. The relationship with other modules

By now you have come to know marketing as an innovative activity of an

organisation through which ideas, brand, products and services are conceived,

priced, promoted and distributed to satisfy consumer needs, and through which it

is possible to anticipate, and even create, the consumers’ future needs. With that

in mind, it’s easy to see that marcom stands at the centre of marketing, as an

integral part of marketing strategy development.

You may want to think of marcom as the bridge between marketing strategy and

the market-place (consumers).

7. Prescribed textbook

The prescribed textbook for this course is:

Shimp, T.A. 2010. Integrated Marketing Communications in Advertising and

Promotion. 8th edn. Thomson/South-Western College.

The textbook is written in a clear and systematic manner. Always start your

studies by consulting the learner guide and then study the relevant learning units

in the prescribed textbook. It is unlikely that you will pass this module if you have

only consulted the learner guide without studying the content of the textbook.

This textbook should be supplemented by exploring South African examples and

other relevant reading material.

Additional reading is vital for success in Marketing Communications 2. You

should routinely be checking the latest information of marcom aspects supplied

via the Internet, quality newspapers and the marketing press. You should further

explore various examples of marketing communication elements in all forms of

media, whether you are watching television, listening to radio stations or reading


newspapers and/or other printed publications, i.e. magazines, or engaging online

via the World Wide Web, through Facebook, Linkedln or Twitter or various other

marketing related blogs, in order to identify relevant examples which can illustrate

marketing communication theory in practice.

In addition to the prescribed textbook, it would be useful to consult the following

book both for assignments, and for practical application in a marcom role:

Koekemoer, L. (Ed.) 2004. Marketing Communications. Lansdowne: Juta

Academic.

8. Curriculum

In line with the purpose of the module described above, this course has been

divided into seven study units as depicted in the table below:

Study Unit Description Chapters

1 The concept, practice, challenges and processes

of integrated marketing communications and

marcom’s role in introducing new brands

1,2,3

2 Integrated marketing communication and its

fundamental decisions:

Targeting

Positioning

Objective setting and budgeting

4, 5, 6

3 Advertising management:

Creating effective and creative advertising

messages

Message appeals and endorsers

Measuring advertising message effectiveness

Planning for and analysing advertising media

Using traditional advertising media

Internet advertising

Using other advertising media

7, 8, 9, 10,

11, 12, 13

& 14


4 Sales promotion management:

Sales promotion and the role of trade

promotions

Sampling and couponing

Premiums and other promotions

15, 16, 17

5 Other marcom tools:

Marketing-orientated public relations and word-

of-mouth management

Event and cause sponsorships

Signage and point-of-purchase communications

18,19,20

6 Marcom constraints:

Ethical, regulatory and environmental issues

21

7 Formulating a marcom plan Addenda

The first study unit lays a foundation for an understanding of the marcom mix in

terms of what it is, the process thereof and the environment in which it takes

place. In essence, it is finding out what IMC is all about, including the role that

marcom plays in achieving acceptance for new products and how marketing

communicators facilitate product adoption and diffusion. It is essential that you

familiarise yourself with the contents of this study unit as it will facilitate your

learning during the remaining study units. Study Unit 2 is an exploration of all

elements of targeting IMC, and builds a foundation for understanding the nature

and function of marcom by providing a thorough overview of four fundamental

marcom decisions: targeting, positioning, objective setting and budgeting. Study

Unit 3 focuses on a key element of the marketing mix, namely advertising

management. Various elements of advertising management are covered in detail.

During Study Unit 4, time should be allowed for an exploration of the field of sales

promotion management. Study Unit 5 covers the other less prominent than mass-

media advertising and sales promotions’ marcom tools. These tools play

important roles in persuading consumers and influencing their behaviour and

include public relations and word-of-mouth management, event and cause


sponsorships and signage and point-of-purchase communications. Study Unit 6

covers the all important aspect of ethical, regulatory and environmental issues of

marketing communications. The final study unit allows for an in-depth

understanding of how to formulate a marcom plan.

9. Specific learning outcomes

There are a number of specific learning outcomes for this module, as indicated

per study unit in the table below.

Study

Unit

Description Specific Learning Outcomes

1 Fundamental

aspects of

integrated

marketing

communications

After studying this unit, you should be able to:

Identify and explain the fundamentals of IMC.

Explain the model of the ‘marcom’ process.

Discuss the framework for comprehending strategic and

tactical aspects of marketing communications.

Explain marcom’s role in enhancing brand equity and

influencing consumer behaviour.

Explain the importance of achieving marcom

accountability.

Discuss the principle of ‘return on marketing investment’.

Understand the methods used to measure marcom

effectiveness.

Explain the role of marcom in facilitating the potential

success of new brands.

Explain the process of brand naming and developing

packaging.

2 Fundamental

marcom

decisions based


Explain marcom targeting.

Understand and explain the positioning process.


on the marcom-

process model

Integrate the concept of positioning with the

fundamentals of consumer behaviour.

Explain the concept of meaning creation.

Set marketing objectives.

Establish a marketing budget.

3 Advertising

management


Discuss the role of messages, media and measurement.

Explain the advertising management process.

Present an argument for investing or disinvesting in

advertising.

Explain and apply the fundamentals of advertising

creativity and its importance.

Understand the specific forms of creative messages and

be able to apply these concepts.

Understand the various measures of advertising

effectiveness.

Explain media planning and analysis.

Develop a media plan.

Explain the concepts, terms and metrics for each

specific media type.

Analyse traditional media (newspapers, magazines,

radio and TV).

Analyse Internet advertising.

Explain other forms of media including direct mail and

database marketing, videogame advertising, brand

placement, cinema advertising.

4 Sales promotions After studying this unit, you should be able to:

Discuss the characteristics of trade-orientated

promotions.

Understand the concept of sales promotions.

Explain the generalisations regarding trade-promotion


effectiveness.

Describe consumer-orientated forms of sales

promotions.

5 Other marketing

communications

tools


Understand marketing-orientated public relations.

Explain the importance of word-of-mouth and the

management thereof.

Discuss events sponsorships and cause-related

marketing.

Understand on-premise business signage.

Understand out-of-home (off-premise) advertising.

Explain in-store point-of-purchase advertising.

6 Constraints of the

marcom process


Understand and discuss ethical issues in marketing

communications.

Identify marcom related regulatory and environmental

issues.

7 Formulating a

marketing

communications

plan


Develop a detailed marketing communications plan for a

student selected product (new or established).

You are encouraged to use the above information for the planning in advance of

your studies and to avoid ‘cramming’. It is always wise to set up your own study

timetable so that you can manage your time effectively. When planning your

studies, please keep the submission date for the assignment in mind.

10. Critical cross-field outcomes

The critical cross-field outcomes, also known as transferable skills as identified

by the South African Qualifications Authority (SAQA), are essential for your


development as a student within the education and training system, regardless of

the specific area of learning. It is these outcomes that are deemed critical for

your development in the capacity of life-long learning.

The critical cross-field outcomes adopted by SAQA are as follows:

(1) Identify and solve problems in which responses display that responsible

decisions using critical and creative thinking have been made.

(2) Work effectively with others as a member of a team, group, organisation

and community.

(3) Organise and manage oneself and one’s activities responsibly and

effectively.

(4) Collect, analyse, organise and critically evaluate information.

(5) Communicate effectively using visual, mathematical and/or language skills

in the modes of oral and/or written presentation.

(6) Use science and technology effectively and critically, showing

responsibility towards the environment and health of others.

(7) Demonstrate an understanding of the world as a set of related systems by

realising that problem-solving contexts do not exist in isolation.

(8) Reflecting on and exploring a variety of strategies to learn more

effectively.

(9) Participating as responsible citizens in the life of local, national and global

communities.

(10) Being culturally and aesthetically sensitive across a range of social

contexts.

(11) Exploring education and career opportunities.

(12) Developing entrepreneurial opportunities.


The transferable skills identified in this module are as follows:

Taught Practised Assessed

Problem solving X X X

Working in teams X X

Self-management X

Information gathering/research

skills

X X X

Communication skills X X X

Analytical skills X X X

Learning strategies X X X

Responsible citizenship X X

Cultural sensitivity X X

Career development X

Entrepreneurship X

11. Assessment details

There are two assessments involved in terms of the Marketing Communications

2 module:

• Assignment: The assignment contributes 20% to the overall mark for the

module. Assignments will focus on selected chapters, and need to be

typed. Please ensure that you adhere to the general rules of the IMM

Graduate School of Marketing pertaining to the style and format of

assignments. You will be issued with a separate brief in this regard.

• Examination: The exam incorporates all content covered in the workbook

and constitutes 80% of the final mark for the Marketing Communications 2

module. The duration of the examination is three hours and the paper will


count 100 marks. The examination paper will consist mainly of paragraph

and essay type answers and could be based on answering a relevant case

study.

Examination results are usually released within six weeks of writing the

examination and are released in the form of symbols only. The final mark,

consisting of an assignment mark and an examination mark, is released in the

form of a final percentage (mark out of 100). The grading system is as follows:

Percentage Scale Description

75% or more Pass with Distinction

50% - 74% Pass

0% - 49% Fail

A timetable of the assessment programme for the semester, including dates for

the assignment to be submitted during the course of the year, is available in the

Calendar of Events for that year. Please refer to the current issue of the IMM

GSM Prospectus. This document and the Student Yearbook provide details of

the IMM GSM assessment policy.


SECTION B

Shimp (2010) contains a thorough description of each of the study units of this

module. These study units of the learner guide will therefore only highlight key

elements of the module. Carefully study the learning units from the textbook in

accordance with the learning outcomes described below. In order to emphasise

the practical relevance of this module, the textbooks’ concepts will be illustrated

with the use of an applied example. When you study the module, you should

also think beyond this example to understand the intricacies of integrated

marketing communication (IMC).

The example is based on the following scenario:

Imagine you are newly appointed to the marketing department of a prestigious

fashion house. Your role is to market the company’s new and latest product:

customised designer jeans. Where do you start? How will you let the world

know about this wonderful product? Let’s find out through the module of

Marketing Communication.


Study Unit 1: The concept, practice, challenges and processes of

integrated marketing communication and marcom’s role in introducing new

brands

1.1 Introduction

This study unit consists of three main learning units, viz. an overview of

promotional management and integrated marketing mix; the process of marketing

communication; and marketing communication’s (marcom’s) role in the

introduction of new brands.

It is essential that you fully understand the first study unit in preparation for the

rest of the modules. Ensure that you have achieved the learning outcomes

outlined below, which will facilitate your learning over the following weeks that

you dedicate to this module.

Specific learning outcomes


• Identify and explain the fundamentals of Integrated Marketing Communications

(IMC).

• Explain the model of the ‘marcom’ process.

• Discuss the framework for comprehending strategic and tactical aspects of

marketing communications.

• Explain marcom’s role in enhancing brand equity and influencing consumer

behaviour.

• Explain the importance of achieving marcom accountability.

• Discuss the principle of ‘return on marketing investment’.

• Understand the methods used to measure marcom effectiveness.


• Explain the role of marcom in facilitating the potential success of new brands.

• Explain the process of brand naming and developing packaging.

To summarise, your first task is to thoroughly familiarise yourself with what

marketing communication is, why it is important in the context of marketing, how

the whole process forms an integrated activity, how your marketing

communication mix decision and brand management could build brand equity,

and what the parameters are in which you can operate, in terms of marketing

communication.

1.2 Overview of integrated marketing communications

Study reference:

Study Shimp 2010: Chapter 1.

1.2.1 An introduction to marketing communications

Marketing communication is critical to the overall success of marketing and as

such of a successful brand. A good starting point is to understand the concepts

of brand equity and brand management. Once you understand these, you need

to understand what is meant by the marketing communication mix as a set of

methods that you need to learn to use. It is a special blend of means through

which you will be able to reach your target market, comprising advertising, sales

promotions, public relations, personal selling and direct marketing. Each of these

elements of the marketing mix has a number of associated tools. At this stage, it

is only important to gain a basic understanding of what these tools are, and also

to understand the 4Ps of the marketing mix for a brand. More emphasis will be

placed on the various tools during the latter modules.

The specific chapter discusses the nature of marcom, particularly at the brand


level. Whereas the ‘4P’ characterisation has led to widespread use of the term

‘promotion’ for describing communications with prospects and customers, the

term marcom is preferred by most practitioners and educators, and it is used to

refer to the collection of advertising, sales promotion, public relations, event

marketing, and other communication devices; comparatively, the term promotions

is used to refer to sales promotions.

1.2.2 The tools of marketing communications

Your first step in this learning unit is to identify the six elements of

marcom. You will find more information on this in Chapter 1 of Shimp (2010: 7-8).

Make sure that you understand the meaning of each of these elements, and that

you can identify real world examples. When you look at advertising, for instance,

you will find a clear definition, a brief description, its purposes, the various types,

and its relation to the consumer. It is also a good idea to look at the South African

scenario pertaining to these elements and apply this to the theory at hand.

1.2.3 The integration of marketing communications

It is important to realise that the various components of marketing communication

are blended and integrated, and are rarely used separately. It is critical to

understand the concept of Integrated Marketing Communications (IMC) and why

this has become the latest trend in the marcom field. IMC is the philosophy and

practice of carefully coordinating a brand’s diverse marketing communication

elements. The payoff of implementing an IMC approach is that you can generate

synergy, that is, combine multiple methods to yield more positive communication

results than would be achieved by using the tools individually.


1.2.4 The key IMC features

There are five key IMC features that need to be understood and applied

practically. These elements must work together to ensure that the consumer

doesn’t get conflicting messages regarding your company or brand. Advertisers,

web designers and sale people, for instance, need to work together to get one

message out to the market. The textbook provides an interesting example of

how one US company has used principles from IMC to focus its marketing

communication. Consider South African examples where the principles of IMC

have been applied.

When taking the example of WOW jeans into consideration, you need to take

each of the five features of IMC into account. For example:

Feature 1: The customer buying WOW jeans will be the starting point for all

marketing communication activities – thus considering the communication

methods that will best serve those customer’s needs – possibly considering

advertising in fashion magazines, sponsoring fashion shows where these

customers frequent, hosting special fashion events at venues like FashionTV etc.

Feature 2: Use any and all marcom tools that are up to the task, i.e. advertising

on fashion television shows or in fashion magazines, i.e. Glamour, special poster

advertising inside malls or in those stores that sell WOW jeans, online advertising

on popular websites, i.e. Facebook, sponsoring a fashion show at Sandton City,

hosting special events at popular venues.

Feature 3: Speak with a single voice – if you decide for example to focus your

positioning statement of WOW jeans as ‘sexy and stylish’ this message should

be carried across all possible media – from television advertising to magazine or

online advertising as well as at special events, sponsorships etc.

Feature 4: Building relationships – consider creatively crafted loyalty programmes

for customers buying WOW jeans, i.e. when buying your second pair of Wow

jeans you obtain a special ‘WOW jeans VIP customer card’ for free entrance at

the annual Jhb. international fashion show.


Feature 5: Affecting behaviour – your ultimate goal is to get prospective WOW

jeans customers to move into action and buy their first WOW jeans and to

ultimately become WOW jeans brand custodians.

1.2.5 The marketing communications decision-making process

An understanding of IMC leads you to the next important

fundamental concept: the process of marcom. Familiarise yourself with the useful

model of the process of marketing communication as explained in the latter

portion of Chapter 1, namely the marcom decision-making process. See the

example below on WOW jeans and how the decision-making process has been

applied to WOW jeans.

This model involves having a proper understanding of the environment in which

the communication must take place. This environment must not only be

monitored, but it must also be managed. You need to go through a process of

making decisions about the brand, ranging from the target market, to messages

and selected media (for the messages), to evaluating your efforts. All these

activities, if appropriate, result in the enhancement of your brand equity. Shimp

(2010: 20-27) goes into detail regarding these four elements of the marketing

communication process. Make sure you fully understand the interrelations

between the target market, your objective, and your budget, as well as the

specific choices you need to make in terms of mixture of elements, the message,

the media, and maintaining momentum. An understanding of the evaluation

process is also critical in determining whether outcomes match objectives and

what corrective action is required.


We can briefly look at how this applies to Wow jeans. Your first undertaking will

be to ask yourself how you could structure your organisation so that you meet the

needs of your customers and the consumers of the product, and do it better than

your competitors. What could be done to make a retail store stock your jeans as

opposed to those of your competitor or to also stock WOW jeans? What is it

about your jeans that people want? Is ‘WOW jeans’ considered to have more

trendy cuts with more modern styles or are WOW jeans even more glamorous

than competitive brand jeans as well as being competitively priced?

At this stage it should be clear that marketing communication is not an isolated

activity; it requires a full understanding of business and all the elements that

impact on it. So, with managing the environment, proactively deal with the

environment, rather than react to it. For instance, you may ask yourself

questions such as: “Are there any technological developments that will help me

to customise my product without compromising cost, quality or speed?’ Or ‘With

the increase in the size of the market of young black professionals, how could I

better promote my customised jeans?”

When you look at Wow jeans you may, for instance, decide that your target

market is the end consumer in South Africa, LSM 8-10, between the ages of 20-

26 years-old living in Gauteng and Western Cape, in a professional work

environment, where your objective is to successfully introduce your new brand,

within the first six months since launch date achieving a brand awareness level of

10% in the fashion garments market, making use of both bottom up and top down

processes of budgeting.

Your specific choice being made as per the above-mentioned example may then

be to employ a pull strategy due to the high level of customisation of your

product. Experts in marketing believe that there are basically two strategies

relevant to the promotional mix that can be followed in any industry (Kotler &

Armstrong 2005): through push strategies the marketer pushes the product


through the channels of distribution to the final consumer. The product is

marketed to the members of the channel (for instance, retailers and wholesalers)

and not the end consumer; on the other hand, pull strategies may be used to

market to the final consumer directly. It is called a pull strategy as the demand or

need from the consumer draws the product through the distribution channel.

For further examples, page through a magazine and find an example of each of

these modes of marketing, and begin to gain tips on how to use them. Look at

the images used to persuade. Also look at the various terms of sale that are on

offer. Try to find different examples of how the consumer may be induced to buy

or act through the various offers.

1.3 The challenges faced by marcom: Enhancing brand equity,

influencing behaviour and being accountable

Study reference


1.3.1 Introduction

In studying Chapter 2 of Shimp (2010), we start to focus on the third component

of the marcom process, namely the desired outcomes of marcom efforts.

The basic issues addressed in this chapter include the following:

• What marketing communicators can do to enhance the equity of their brands

• How can marketing communicators justify their investments in advertising,

promotions and other marcom elements and demonstrate financial

accountability.

You will begin to realise what marketing communicators can do to enhance the

equity of their brands and, beyond this, to affect the behaviour of their current


and prospective customers. You will also realise the important aspect of how to

justify investment in any marcom effort and how to demonstrate financial

accountability for planned marketing investments. You need to familiarise

yourself with the concept of brand equity and to explore this topic from both a

company and a customer perspective.

Each year, The Sunday Times Business Times, in association with TNS since

2009, conducts a survey to determine the top brands in South Africa. It is always

interesting to see how Coca-Cola has been consistently ranked at the top of the

list. According to Ian Sobal, commercial leadership director of Coca-Cola SA this

has been achieved because “we are always relentlessly focused on our

consumers and continuously looking for ways to better understand them and their

needs, desires and behaviours so we can effectively meet their needs”. 1

1.3.2 Brand equity

It is critical to understand brand equity from a customer

perspective – i.e., favourable, strong and unique brand associations are formed

when a customer is familiar with a brand. Understand the two forms of brand-

related knowledge, namely brand awareness and brand image and the impact

thereof on brand equity.

1 Sunday Times Business Times Top Brands in Association with TNS, August, 2009


1.3.3 Brand image and personalities

When looking at the WOW jeans example, consider what brand personality could

be associated with this brand. Shimp (2010) covers five different brand

personalities – which one would you choose for WOW jeans? You also need to

pay further attention to how brand equity could be enhanced for your WOW jeans

brand.

1.3.4 Characteristics of world-class brands

Shimp (2010) identifies ten traits that are shared by the world’s strongest brands.

Select examples of brands that you are familiar with and rate them according to

these ten characteristics.

You also need to understand why it is important to measure the effectiveness of

marketing communication efforts, and to influence behaviour. This will ultimately

equip you, as a future marketer, to gauge the financial accountability of any

marketing communication effort, and to assist you when requesting increased

budgets from your organisation’s financial department.

1.4 Facilitating the success of new brands

Study reference


1.4.1 Facilitating the success of new brands

This chapter in Module 1 deals with the role of marcom in successfully

introducing new products and the functions of brand names, packages, store

signage and point-of-purchase (POP) communication in introducing new products

and facilitating the growth of mature products.


1.4.2 Marcom and brand adoption

Innovation is at the core of the survival of organisations. But this is only true

when these innovations are communicated to the market-place and adopted and

diffused. With this in mind, it is evident how critical it is to understand the

concepts and processes of adoptions and diffusion. Ensure that you make a

thorough study of this. Introducing new brands is critical for achieving continued

growth and long-term success, and this chapter examines general factors that

influence the likelihood of new brands being accepted in the market-place and

their successful economic lives.

Let’s explore these concepts in terms of an example. Imagine an innovation in

the form of a mobile phone that allows you to not only hear the voice of the

person you are speaking to, but to also see a projected image of the person in

front of you while you are speaking. Would you adopt the product? Keep in mind

that, in the adoption process model, you don’t only want someone to become

aware of your product through advertising, but you also want that person to try it

if the price is right, and to ensure that he/she is so satisfied as to come back for

more. You need to consider the four determinants of the awareness class, the

trier class and the repeater class.

1.4.3 Brand characteristics that facilitate adoption

In deciding whether you want to adopt the new product, you will probably (and

unknowingly) revise your attitude in terms of the following elements:

1. Is this new mobile better than my current mobile? (relative advantage)

2. Is it compatible with my way of doing things? (compatibility)

3. Is it difficult to use? (complexity)

4. Could I borrow and use it for a while before I buy it? (trialability)

5. Will I be seen with it? (observability)


Diffusion deals with how the innovation is accepted by the broader market-place

(not only the individual). Make sure that you understand the various categories

of adopters, and how to manage the diffusion process.

1.4.4 Brand naming

The next session pays attention to two aspects that play a key role in influencing

new product success, namely, developing brand names, and logos and designing

packages. These initial elements are responsible for a brand’s image.

The requirements of a good brand name

You need to explore the requirements for a good brand name as good

brand names can create excitement, elegance, exclusiveness and

influence consumers’ perceptions and attitudes. The brand name is the

single most important element found on a package and plays an influential

role in determining whether new brands succeed. The brand name

identifies the product and differentiates it from others on the market. A

good brand name can evoke feelings of trust, confidence, security,

strength, durability, speed, status and many other desirable associations.

The brand-naming process

You further need to explore the steps involved in arriving at a good brand

name. A good brand name must satisfy several fundamental

requirements: it must describe the product’s benefits, be compatible with

the product’s image and be memorable and easy to pronounce.

The role of logos

Related to the brand name is a graphic design element called a brand

logo. Students need to understand the role logos play in identifying

brands.


1.4.5 Packaging

Marcom specialists need to understand the crucial communications role

performed by brand packaging. The packaging is perhaps the most important

component of the product as a communications device. It reinforces associations

established in advertising, breaks through competitive clutter at the point of

purchase and justifies price and value to the consumer. Package design relies on

the use of symbolism to support a brand’s image and to convey desired

information to consumers.

Packaging structure

Students need to familiarise themselves with the components that form

part of the packaging structure and how these structural elements interact

harmoniously to evoke within buyers the set of meanings intended by the

brand marketer.

The VIEW model

Package designs can be evaluated by applying the VIEW model which

contains the elements of visibility, information, emotional appeal and

workability. You need to familiarise yourself with the VIEW model which is

a useful packaging development framework and which describes the

visual, informational, emotional and functional features that determine

packaging success. It will be useful to use an example of a new product,

such as a fruit juice, and apply the VIEW model in the development of the

packaging.

Designing a package

Take the VIEW model process one step further by considering the five-

step package design process described in Shimp (2010).


1.5 Conclusion

Having completed this study unit, you should have a good understanding of

integrated marketing communication, the process of marketing communication

and the context in which it takes place as well as the role of marcom in

introducing new brands.

The following self-assessment questions are examples that may be used to

gauge your understanding of the module so far. Also refer to the discussion

questions found at the end of each chapter in Shimp (2010).


Self-assessment exercise

1. Describe the philosophy and practice of integrated marketing communications

(IMC).

2. Present and explain the five key features of IMC by using a practical example

of a product of your choice that has, in your mind, applied the IMC key

features effectively.

3. Introduce a framework that illustrates the activities involved in developing an

IMC programme.

4. Present a model of brand equity from the customer’s perspective, using a

practical example to illustrate your understanding of the model.

5. Explain the innovation-related characteristics that influence adoption of new

products.

6. Explain efforts employed by marketing communicators to manage the

diffusion process.

7. Choose a grocery product category and analyse the various brands in this

category in terms of their packaging features designed to attract consumers’

attention. Identify the packaging features that make some brands in this

category more or less attention-getting than others.

8. Explain the activities involved in the brand-naming process of any new

product of your choice.

9. Explain marcom’s role in facilitating the introduction of new brands.

10. Describe the various elements underlying the creation of effective packages.

11. Explain the VIEW model for evaluating package effectiveness by applying a

practical example of a new packaging design you have come across recently.

12. Describe the five-step package design process.


Study Unit 2: IMC and its fundamental decisions

2.1. Specific learning outcomes

This study unit builds a foundation for understanding the nature and function of

marcom by providing practical and theoretical overviews of four fundamental

marcom decisions: targeting, positioning, objective setting and budgeting. By

studying this unit you will be able to develop an understanding of how the nature

of people, where they live, and their behaviour, influence marcom.

Specific learning outcomes:


• Explain marcom targeting.

• Understand and explain the positioning process.

• Integrate the concept of positioning with the fundamentals of consumer

behaviour.

• Explain the concept of meaning creation.

• Set marketing objectives.

• Establish a marketing budget.

2.2. Marcom targeting

Study reference



This chapter deals with the importance and methods of targeting as the key

element in effective marketing communications by exploring behaviourgraphic,

demographic, psychographic and geodemographic audience-defining

characteristics of market communication, buyer behaviour, persuasion, and the

adoption or diffusion of marcom. The chapter focuses on four sets of consumer

characteristics that singularly or in combination influence what people consume

and how they respond to marcom: behaviourgraphics, psychographics,

geodemographics, and demographics.

Because people differ in their understanding of communication, marketing

communication is not equally effective in different populations. This applies to

factors such as age, generation, or ethnic population (demographics). It also

applies to lifestyles, activities, interests and opinions (psychographics), the areas

in which people live (geographic), and geodemographics (based on demographic

characteristics of consumers who reside within geographic clusters, such as

postal code areas and neighbourhoods). Think for a moment how you would

change your communication if you wanted to sell a piece of furniture to a young

black professional living in Soweto, who spends his time mostly abroad, and to a

former army general living in the Karoo, who spends most of his time alone.

2.2.2 Behaviourgraphics

This section refers to information about the audience’s behaviour

– in terms of past purchase behaviour or online search activity in a particular

product category or related categories.

2.2.3 Demographics

Demographics reflect measurable population characteristics such as age, income

and ethnicity. Carefully read through the prescribed textbook sections dealing


with demographic factors of marketing communication (some of this information

is predominantly applicable to the American society and should be read from the

perspective of having a broader understanding of the concept). One of the key

requirements for you, as a marketing communicator, is to source information

regarding your customer, specifically relevant to the South African market.

Generic information is available on the Internet. Try to find information on the

following modules:

1. Generation X and generation Y

2. Number of people living with HIV/Aids in South Africa and Africa

3. Age distributions of the South African population

4. Rural versus urban households in South Africa

5. The SAARF Living Standards Measures (LSM) 2and how this can be applied

in the targeting process

Statistics South Africa will be able to provide useful information in this regard.

2.2.4 Psychographics

Psychographics captures aspects of consumers’ psychological makeup and

lifestyles including their attitudes, values, motivations and lifestyles.

VALS segments

In terms of psychographic targeting, make sure that you understand both

Values and Lifestyles (VALS), and especially the VALS classification

2 The SAARF LSM (Living Standards Measure) has become the most widely used

marketing research tool in southern Africa. It divides the population into 10 LSM

groups, 10 (highest) to 1 (lowest). Previously eight groups were used but this

changed in 2001 when the new SAARF Universal LSM consisting of 10 groups was

introduced.

The SAARF LSM is a unique means of segmenting the South African market. It cuts

across race and other outmoded techniques of categorising people, and instead

groups people according to their living standards using criteria such as degree of

urbanisation and ownership of cars and major appliances. Source: http://www.saarf.co.za/LSM/lsms.htm


model, which can be used in psychographic targeting.

It will be a useful exercise to apply the AIO components model to yourself.

This will give you an understanding of yourself as a consumer. In terms of

the VALS groupings, you may also want to tentatively ask yourself

whether principles, status or action play a more important role in your

buying decision. Notice how specific age groups tend to be oriented

towards different things. For instance, if you are oriented towards action,

you could be described as an experiencer because you have high levels of

energy and love social activities. We then expect that you will spend your

money on items such as music, iPods, gym membership, etc.

Yankelovich Mindbase segments

Shimp (2010) also introduces you to Yankelovich’s Mindbase

psychographic segmentation scheme which consists of eight general

segments and 32 specific segments. To truly appreciate the types of

questions used to identify individuals’ segment membership, read more on

the following website: http://www.yankelovich.com.

2.2.5 Geodemographics

Geodemographic targeting is a way of clustering consumers in terms of both

demographics and lifestyle indicators. The premise underlying geodemographic

targeting is that people who reside in similar areas, such as neighbourhoods,

also share demographic and lifestyle similarities. Read through this section in

Shimp (2010) and make sure that you understand its purpose and use.

2.3 Marcom positioning

Study reference



In this study unit you will learn the importance of brand positioning from a

marcom practitioner’s point of view as well as examine positioning from a

customer’s point of view. A brand’s positioning represents the key feature,

benefit, or image that it stands for in the target audience’s collective mind. The

positioning statement is described as the central idea that encapsulates a brand’s

meaning and distinctiveness. A good positioning statement must reflect a brand’s

competitive advantage and motivate customers to action.

2.3.2 Positioning in theory: A matter of creating meaning

In the theoretical discussion, semiotics, signs, and meaning are covered with the

focus on how brands draw meaning from the culturally constituted world.

It is important to be able to determine if your communication is carrying the

correct message (semiotics), if it is persuasive, and if you are overcoming

barriers to the effective transmission of your message. In this regard, make sure

that you understand the terms ‘semiotics’, ‘sign’, ‘meaning’ and the uses of

meaning transfer, signal relations, sign relations and symbol relations, as defined

in Shimp (2010).

Koekemoer (2004) defines meaning as “the subjective perceptions (or thoughts)

and affective reactions (or feelings) evoked when a person is presented with a

sign or stimulus object.”3 This is easy to illustrate. Can you draw a symbol of

which you are proud (for example, a religious symbol)? Messages are carried in

signs, signals, symbols and figurative language. Find as many signs or symbols

that marketers use to enhance the understanding of their message as possible.

Page through magazines and try to decipher some of the ‘feeling’ messages and

some of the ‘knowledge’ messages that the advertisers are trying to convey.

Keep in mind that different images will evoke different feelings or thoughts in

3 Koekemoer, L. (Ed.) 2004. Marketing Communications. Lansdowne: Juta Academic.


different subgroups of the population. Can you think of images that are used to

convey messages and that could offend some cultural groups in South Africa?

For instance, if you were to advertise ‘flesh-coloured stockings’ what exactly will

the colour be? When you consider the meaning of messages, you need to

consider your audience. Figurative language, especially, should be used with

caution as it may have different meanings in different cultures.

2.3.3 Positioning in practice: The nuts and bolts

In practice, brands can be positioned based on benefits (i.e.,

functional, symbolic, or experiential needs) or on attributes (i.e., product-related

and non-product-related).

You need to understand the important role of brand positioning and what this

positioning conveys to the customer. Firstly, the marketing communicator wishes

to create a specific meaning for the brand and to have that meaning clearly

lodged in the consumers’ memory. Secondly, the brand’s meaning in consumers’

memories stands in comparison to what they know and think about competitive

brands in the category.

As previously mentioned a good positioning statement must reflect a brand’s

competitive advantage and motivate customers to action.

You should familiarise yourself with the four possible outcomes identified from an

attempted brand positioning – as potential ‘loser’, ‘winner, ‘swimming up the river’

or a ‘promotes-competitors’ prospect.

You should be clear on how to apply the framework for brand positioning, and by

applying Figure 5.4 on p. 133 of Shimp (2010), in conjunction with keeping the

previous terminology in mind as per Study Unit 1, you will be able to pursue the


options available for positioning brands. Use the WOW jeans example whilst

attempting to do this exercise.

You need to be clear about the various types of brand associations which include

brand attributes, benefits and an overall evaluation or attitude toward the brand.

Brand attributes could be product-related or non-product related.

Benefit positioning

You should be able to understand how a brand can be positioned in terms

of its benefits, where a brand is positioned in terms of functional, symbolic

and experiential needs.

Attribute positioning

You should also be able to understand how a brand can be positioned in

terms of its attributes, where a brand is positioned based on product-

related features or in terms of usage or user imagery.

Repositioning of a brand

Brand sometimes must be repositioned in order to grow and prosper.

2.3.4 Implementing positioning: Know thy consumer

With the above-mentioned understanding of positioning, you are

now ready to explore the fundamentals of consumer choice behaviour. Simply

put, why does someone choose to buy something and actively or passively

choose not to buy something else? To intelligently answer this question, you will

need to compare two distinct views on the way the consumer processes

information in choice behaviour, namely:

1. The consumer processing model (which sees the consumer as a logical

and analytical decision maker)


2. The hedonic experiential model (which sees the consumer as having a

desire for fun, fantasy and feelings).

Most of your time in this study unit should be spent on understanding these two

models. You should also know the similarities and differences between the two.

The Consumer Processing Model (CPM)

The stages of the CPM that are relevant to marcom are: (1) exposure, (2)

attention, (3) comprehension, (4) agreement, and (5) and (6) retention and

search/retrieval of stored information.

The Hedonic Experiential Model (HEM)

While the CPM perspective views consumers from a rational perspective,

the HEM perspective concentrates more on the emotional aspect of

consumer processing. From this perspective, products are more than

mere objective entities and are, instead, subjective symbols that

precipitate feelings and promise fun and the possible realisation of

fantasies.

Think of your WOW jeans example – product related attributes would refer to the

colours, sizes, and specific design features of the jeans. Non-product related

attributes would refer to the pricing of the jeans, the packaging, etc.

Benefits could be functional, symbolic or experiential. Again, let us consider the

WOW jeans example. The functional benefit would refer to the fact that it is a

clothing item that is worn to cover your bare body, protect you from the cold, etc.

The symbolic benefit could be the association with a certain elite group of

consumers who all wear WOW jeans. The experiential benefit could be how the

WOW jeans make you feel, i.e. elegant, sexy, etc.


2.4 Marcom objective setting and budgeting

Study reference


Returning to the model of the marcom process provided in Chapter 1, you will

recall that the framework describes various forms of fundamental and

implementation decisions. We continue with this theme as related specifically to

advertising objective setting and budgeting. Intelligent objective setting and an

adequate budget are critical for success. It is therefore important that, in studying

Chapter 6 of Shimp (2010), you equip yourself with the processes of setting

marcom objectives and budgeting.

2.4.2 Setting marcom objectives

For a full appreciation of marcom objective setting you are required to firstly

consider the process of communications from a customer’s perspective.

Objectives provide the foundation for all remaining decisions. The objectives that

marketing communications in its various forms must accomplish are varied, but

regardless of the objective, there are three major reasons why it is essential that

objectives be established prior to making the all-important implementation

decisions regarding message selection, media determination and how the

various marcom elements should be mixed and managed. Students should be

familiar with these three reasons (Shimp 2010).

The hierarchy of marcom effects

A framework called the hierarchy of effects is appropriate for

accomplishing the above-mentioned understanding and you should

familiarise yourself with this process. This framework takes into

consideration the target audience’s degree of experience with the

particular brand before commencing with a marcom campaign.


Let us pause for a moment to question: “How does advertising work?”

The answer lies in an understanding of the hierarchy of effects. As an

advertiser, you want to move prospective consumers from being unaware

of your product on the one side of the continuum, to at least believing in,

or having a positive attitude to your product so that eventually they will

become loyal to your brand, on the other side of the continuum.

Spend some time considering brands you know and try to find brands of

which you are aware, some of which you were unaware (ask yourself

why), your expectations of brands that you have not used, brands that you

have tried but did not like, brands you believe in or have a positive attitude

towards, and brands to which you are totally loyal to the extent that you

won’t use the competing brand. In the last instance, ask yourself why you

have chosen this brand.

To use the example of our Wow jeans again, imagine your task is to apply the

hierarchy of effects metaphor to move your friends through the entire process

from being totally unaware of WOW jeans to becoming brand loyal to WOW

jeans. By studying the learning unit on objectives in Shimp (2010), you will

develop a comprehensive understanding of how to go about setting the most

appropriate marcom objectives based on your friend’s degree of experience with

WOW jeans.

The objective for a brand’s marcom campaign at any point in time will

depend on where in the hierarchy consumers are located. Different

consumers may be at different levels, you should however focus on the

level where the most consumers are located as the main focus area.

Requirements for setting suitable marcom objectives

In addition, you will have to ensure that your objectives meet a number of

specific requirements as set out in Shimp (2010: 162-163).


Sales versus pre-sales objectives

Once you have a clear understanding of the above-mentioned

requirements, read the final learning unit of the chapter and explore

whether you believe it is good to use sales volume in setting advertising

objectives by comparing the traditional view with the heretical view and the

accountability perspective.

2.4.3 Marcom budgeting

An understanding of marcom objective setting will ultimately let you move to the

next level of the decision-making process, i.e. proper budgeting, and you will be

exposed to the various practical budgeting methods at your disposal.

Budgeting in theory

Ensure that you understand the following:

• How to budget in order to ensure profit maximisation by making

sure that marginal revenue (MR) is exactly equal to, and not lower

or higher than, marginal cost (MC).

• How to consider advertising objectives, competition and available

funds when making budgeting decisions.

Budgeting in practice

Consider the various budgeting methods available. Familiarise yourself

with each method and start thinking which method you would use to

determine an optimal marcom budget for WOW jeans.

Percentage of sales budgeting

Criticism towards this specific budgeting method

Objective-and task budgeting

The steps involved when applying this specific method


Competitive parity method

It is necessary to understand the concepts of share of market (SOM) and

share of voice (SOV) and their relationship.

• Four general SOM/SOV situations – consider Figure 6.5 in

Shimp (2010) when studying the four SOM/SOV

situations.

• The role of competitive interference.

Budgeting via the affordability method

2.5 Conclusion

This concludes the study unit that deals with the nature and function of marcom

by providing practical and theoretical overviews of four fundamental marcom

decisions: targeting, positioning, objective setting and budgeting. These activities

are the bedrock of all subsequent marcom decisions. Marcom strategy built on a

weak foundation is virtually guaranteed to fail. Let us not forget the mantra

introduced in Chapter 1: All marcom should be (1) directed at a particular target

market, (2) clearly positioned, (3) created to achieve a specific objective and, (4)

undertaken to accomplish the objective within budget constraints.

The following self-assessment questions are examples that may be used to

gauge your understanding of the module so far. Also refer to the discussion




1. Discuss the importance of targeting marcom to specific consumer groups

and realise that the targeting decision is the initial and most fundamental of

all marcom decisions.

2. Explain the role of behaviourgraphics in targeting consumer groups by

using a practical example of a brand of your choice that could use

behaviourgraphics as the most appropriate targeting method.

3. Describe the nature of psychographic targeting and the VALS system by

choosing eight magazine advertisements that reflect each of the VALS

groupings and explaining why you chose that specific magazine

advertisement for each VALS grouping.

4. If you were to design a geodemographic study for a new range of upmarket

golfing equipment, what would you consider to be part of this specific

study?

5. Explain the concept of positioning and the role it plays in directing the

implementation of marcom decisions

6. Explain how you could use the SAARF LSMs as a targeting tool within the

South African context.

7. Describe how brands are positioned in terms of various types of benefits

and attributes.

8. How would you say is your favourite brand of non-alcoholic beverage being

positioned and why would you say that?

9. Explain each of the following concepts: perceptual encoding; feature

analysis and active synthesis. Using a consumer packaged good of your

choice, explain how package designers have used concepts of feature

analysis in designing the package.


10. Explicate two perspectives that characterise how consumers process

information and describe the relevance of each perspective for brand

positioning.

11. Understand the process of marcom objective setting.

12. Describe what constitutes a good marcom objective and provide at least

three examples of such objectives.

13. Apply the hierarchy-of-effects model and its relevance for setting marcom

objectives to a relatively unknown consumer packaged good of your choice.

14. Understand the nature and importance of marcom budgeting.

15. Some critics contend that the use of the percentage-of-sales budgeting

technique is illogical. Explain.

16. Explain the relation between a brand’s share of market (SOM) and share of

voice (SOV).


Study Unit 3: IMC and its fundamental decisions

3.1 Specific learning outcomes



• Discuss the role of messages, media and measurement.

• Recognise the various functions that advertising performs.

• Explain the advertising management process.

• Present an argument for investing or disinvesting in advertising.

• Understand the functions advertising agencies perform and how they are

compensated.

• Explain and apply the fundamentals of advertising creativity and its

importance.

• Understand the specific forms of creative messages and be able to apply these

concepts.

• Understand the various measures of advertising effectiveness.

• Explain media planning and analysis.

• Develop a media plan.

• Explain the concepts, terms and metrics for each specific media type.

• Analyse traditional media (newspapers, magazines, radio and TV).

• Analyse Internet advertising.

• Explain other forms of media including direct mail and database marketing,

videogame advertising, brand placement, cinema advertising.


3.2 Overview of advertising management

Study reference


3.2.1 Introduction

Do you know how advertising works? It is critical to understand the fundamentals

of the role and importance of advertising. This chapter describes the functions

that advertising performs and provides an overview of the advertising

management process as well as the financial aspects of advertising.

In devising your advertising strategy, you need to align it to the overall marketing

strategy. This results in strategy implementation and should follow an

assessment of the effectiveness of the advertising. As part of the advertising

strategy itself though, you need to first set your objectives, budget and determine

your message and media strategies. We have already covered objective setting

and budgeting in Study Unit 2. It is now important to start focusing on the

message itself, the media and advertising measurement.

The magnitude of advertising

Before we start considering the theory behind advertising management, let

us first consider the magnitude of advertising and what companies are

spending on their annual advertising budgets. An extremely insightful

document to familiarise yourself with is the annual OMD South Africa

MediaFacts which is published annually as part of Tony Koenderman’s

AdReview. The OMD MediaFacts 2009 indicated that a total of R24 426.1

million was spend on above-the-line only Adspend during 2009 in South

Africa, with TV accounting for R10 487.6 million of the total Adspend.4 You

may want to read the full document to gain further insight into the latest


media spends. Visit

http://www.omdmedia.co.za/samediafacts2010.pdf for more information.

Advertising functions

You need to fully comprehend the five critical communications functions of

advertising. This will enable you to understand how to manage the

advertising process and will form the basis of any advertising strategy.

Advertising management process

It is critical that you fully understand the overall advertising management

process from a client perspective. Figure 7.2. in Shimp (2010: 191) may

assist you in this regard.

The role of advertising agencies

You also need to familiarise yourself with the role of advertising agencies

and the various functions they perform.

Agency compensation

Also understand the various options available in terms of agency

compensation.

3.2.2 Ad-investment considerations

When considering ad-investment, there are various theories that need to be

considered. You should understand the reasoning behind each of these and be

able to put an argument on the table as to why you would consider advertising

expenditure for your specific brand.

In the next study unit, the notion of creative advertising strategy will be examined.

4 OMD Media facts 2010



1. Explain the magnitude of advertising and the percentage of sales revenue

companies invest in this marcom tool.

2. Describe circumstances when each of the five advertising functions

described in Chapter 7 of Shimp (2010) might be more important than the

others and provide reasons why you would say that.

3. Explore the advertising management process from the perspective of clients

and their agencies.

4. Present arguments for and against using advertising agencies.

5. Explore the issue of when investing in advertising is warranted and when

disinvesting is justified.

6. Examine advertising elasticity as a means for understanding the contention

that “strong advertising is an investment in the brand-equity bank.”

3.3 Creating effective and creative advertising messages

Study reference


3.3.1 Introduction

Before you consider what creativity is all about, ask yourself what is required for

advertising to be effective. Shimp (2010) provides at least five indicators of

effective advertising. These may be translated into the following questions that

could help you determine whether your advertising is effective.

1. Is this in line with our marketing strategy to raise awareness of the brand?

2. Is this portrayal meeting my needs, or my potential customers’ needs?

3. Will it persuade?


4. Is it unique and will it draw attention?

5. Is it promising more than it can deliver?

6. Will people remember the product, or only the message?

Going back to Wow jeans, let’s pretend that you aim to advertise the jeans

through posters placed on university campuses. You opt to portray your favourite

movie star wearing the jeans, customised with his name imprinted on the left leg.

Use the above-mentioned questions to determine whether your choice of

advertising message is effective:

1. Is this in line with WOW jeans marketing strategy to raise awareness of WOW

jeans?

2. Is this portrayal meeting the needs as set out in WOW jeans’ marketing

strategy, or is it portraying meeting the potential customers’ of WOW jeans

needs?

3. Will the message persuade potential customers to buy WOW jeans?

4. Is the message unique and will it draw attention?

5. Is the message promising more than it can deliver?

6. Will people remember the product or brand, i.e. WOW jeans, or only the

message?

3.3.2 Creating effective advertising

You need to understand the meaning of effective advertising and be able to apply

the general characteristics5 being associated with effective advertising to various

advertising messages.

Shimp (2010) provides good practical examples of creative advertising that could

assist you in better understanding the concept of creativity.

5 These characteristics are a mixture of Shimp, T.A.’s (2010) views and perspectives presented

by Jewler, A.J. 1985. Creative Strategy in Advertising. Belmont, Calif: Wadsworth. pp. 7-8; and Schultz, D.E., and Tannenbaum, S.I. 1998. Essentials of Advertising Strategy. Lincolnwood, Ill.: NTC Business Books. pp. 9-10.


Creativity – the CAN elements

Shimp (2010) also covers three common features of creative ads – the

CAN elements – thus explaining that creative advertisements share three

common features. To test this theory, browse through magazines or listen

to your favourite radio station or watch some television programmes and

judge the advertisements you are exposed to on these three elements.

Getting messages to ‘stick’

Students also need to be able to explain what is meant with sticky ads –

thus having a lasting impact. Consider the six features that are applicable

to any type of message that will make those messages be more ‘sticky’.

There are some good examples of creative and sticky ads in Shimp (2010:

213-217). Spend some time going through magazines or watching

television to find even more creative executions that you consider being

sticky.

Advertising successes and mistakes

The foregoing section of this study unit focuses on the general features of

creativity and ‘sticky’ advertising. It is however useful to also consider a

conceptual framework that identifies the conditions under which

advertising campaigns are likely to succeed or fail. Study Figure 8.2 in

Shimp (2010: 218) to fully understand the importance of an appropriate

value proposition. Having a convincing message is a necessary condition

for creating effective advertising. However, the advertisement must also

be effectively executed.

Think of what the value proposition is for your WOW jeans brand and what

possible creative executions could fall under a successful campaign or a

complete disaster.


3.3.3 Constructing a creative brief

With the above-mentioned considerations in mind, study the format

to use in formulating a creative brief – which is a document designed to channel

copywriters’ and other creatives’ efforts toward a solution that will serve the

interest of the client6. It will be useful to choose an example and try to implement

the proposed minimum questions that need to be answered in a creative brief.

Choose any product for this activity. The textbook also provides a practical tool

or framework that will assist you in constructing a creative brief.

You may consider using the WOW jeans example that you are now so familiar

with. Take your chosen practical example and construct a creative brief to be

able to fully understand the concept.

3.3.4 Alternative styles of creative advertising

Table 8.1 in Shimp (2010: 223) provides a short summary of the six different

styles and groups divided into three categories. It will be useful to page through

magazines or watch television and select six different advertisements that you

could link to each of the six different styles and compare them with each other.

These alternative styles provide a useful aid to understanding the different

approaches available to advertisers and the factors influencing the choice of

creative style. It would, however, be incorrect to think of these approaches as

pure and mutually exclusive as sometimes advertisers may consciously or

unconsciously use two or more styles simultaneously.

Finally, it is important to recognise that, whatever creative style is chosen, it must

be clearly positioned in the customer’s mind. Effective advertising must establish

6 Shimp (2010)


a clear meaning of what the brand is and how it compares to competitive

offerings.

3.3.5 Mean-end chaining and the method of laddering as guides to creative

advertising formulation

Another exciting topic that you will find in Chapter 8 is the concept of

mean-end chaining and the method of laddering as guides to creative advertising

formulation.

The nature of values

Understand the ten basic values that adequately represent the important

human values people in a wide variety of culturally diverse countries

share.

Which values are most relevant to advertising?

You further need to understand how the attributes of a product bring

certain consequences for the consumer and reinforce his/her personal

values.

Advertising applications of means-end chains: The MECCAS model

In this sense, also examine the difference between terminal values and

instrumental values. Mobile phones, for instance, are sold, based not only

on their performance, but also on their appearance. A consumer may

choose a certain phone because it allows him/her to be noticed

(consequence) which supports the terminal value of social recognition.

Study how this chaining method is used in advertising. Table 8.3 in Shimp

(2010) may assist you in this regard.


Identifying means-end chains: The method of laddering

Students need to be familiar with the concept of laddering and the

linkages between attributes, consequences and values and why the

concept of laddering is important from a marketer’s point of view.

Laddering forces advertisers to identify how consumers relate product

attributes to more abstract states such as benefits and values. This will

ensure the advertiser places emphasis on communicating benefits and

implying value’s end states rather than focusing on attributes per se.

3.3.6 Corporate image and issue advertising

A final requirement from this study unit is for you to be able to explain the

differences between image advertising and issue advertising in corporate

advertising.


1. Describe the factors that promote creative and effective advertising.

2. Apply the features of a creative brief to a practical example of your choice.

3. Explain alternative creative styles that play a role in the development of

advertising messages by using practical examples of magazine

advertisements to illustrate each of the different styles.

4. Explain the concept of means-ends chains and their role in advertising

strategy.

5. Explain the MECCAS model and its role in guiding message formulation by

selecting a newspaper advertisement and applying the MECCAS model to the

advertisement.

6. Using the laddering procedure, select a product category of your choice,

interview one individual, and construct that person’s hierarchical map or

ladder for two product attributes that are important to that person.


7. Explain the role of corporate image and issue advertising by using practical

examples to illustrate each concept.

8. Select two advertising campaigns that have been on television for some time.

Describe in detail what you think their creative message styles are.

3.4 Selecting message appeals and picking endorses

Study reference

Study Shimp 2010: Chapter 9, pp. 240-278.

3.4.1 Introduction

This unit surveys some of the common approaches that are used in creating

advertising messages. In line with creativity and creative messages in

advertising, the advertiser may use methods such as the endorsement of a

celebrity, or emotional and other appeals, to elicit action from his/her audience.

Enhancing consumers’ motivation, opportunity and

ability to process advertisements

Familiarise yourself with the issue of how advertisers increase consumers’

motivation, opportunity and ability (MOA) to process advertising

messages. Figure 9.1 in Shimp (2010) provides you with a framework on

how marketing communicators can enhance the MOA factors. You need to

be able to discuss and illustrate each of the six strategies using practical

examples.

Motivation to attend to messages

As illustrated in Figure 9.1, one of the communicator’s objectives is to

increase the consumer’s motivation to attend to the message and to

process brand information. You need to firstly fully comprehend the


attention component – thus voluntary attention and involuntary attention

and be able to provide examples of both forms of attention.

Motivation to process messages

You need to be familiar with the concept of enhanced processing

motivation and how to enhance consumer’s motivation to process brand

information.

Opportunity to encode information

You need to be familiar with the concept of how to get consumers to

encode information.

Opportunity to reduce processing time

You need to be familiar with the concept of how to take extra measures to

reduce processing time required of the consumer to read, listen to, and

ultimately discern the meaning of a marcom message.

Ability to access knowledge structures

You need to be familiar with the concept of a brand based knowledge

structure and how to facilitate consumer accessing of knowledge

structures.

Ability to create knowledge structures

You need to be familiar with the concept of a brand based knowledge

structures and how to create knowledge structures for information that

marketers want consumers to have about their brand and the use of

concretisations, demonstrations or analogies to facilitate learning by

appealing to exemplars. Find practical examples of magazine

advertisements and newspaper advertisements that illustrate how

concretising, demonstration or analogy was used.


3.4.2 The role of celebrity endorsers in advertising

Why do you think advertisers use celebrities to endorse their products? Why do

golfers wear branded shirts? By having a celebrity endorse your product, you

associate your product with attractiveness and credibility. But this is only true in

certain circumstances. Find at least six requirements for advertising

endorsements to be successful. Also establish when regular people can be used

effectively in advertising endorsements. Pay special attention to the TEARS

model as well as the ‘no tears’ approach of endorsement models.

Endorser attributes: The TEARS model

You need to be familiar with the five components in the TEARS model of

endorser attributes and be able to judge various celebrity endorsement

advertisements based on these five attributes to determine the

effectiveness of the specific endorsement.

Endorser selection considerations: The ‘no tears’ approach

You also need to be familiar with the factors being used by marketers in

selecting celebrity endorsers, thus the ‘no tears’ approach.

Consider the WOW jeans example. Identify two possible celebrities that you

would like to approach to endorse WOW jeans. Follow the ‘no tears’ approach to

compare the two celebrities of your choice and to help you determine which of

the two celebrities would be the most appropriate to approach.

Consider the WOW jeans example again. You have now determined which

celebrity you would like to approach, using the ‘no tears’ approach and she/he

has agreed to become a celebrity endorser for WOW jeans. Using the TEARS

model, determine the effectiveness of this person as an endorser of WOW jeans.


3.4.3 The role of humour in advertising

You need to familiarise yourself with humour in advertising and

how humour can be used effectively and under the correct circumstances. Find

examples of advertisements where humour was used and explain the

effectiveness or ineffectiveness of the usage of humour in those advertisements.

3.4.4 Appeals to consumer fears

You need to familiarise yourself with how appeals to consumer fears are used in

advertising, especially as a means of enhancing motivation. Find examples of

advertisements where humour was used and explain the effectiveness or

ineffectiveness of the usage of humour in those advertisements.

Fear appeal logic

Understand why fear appeal is used in advertisements and provide

examples of where fear appeal was used effectively.

Appropriate intensity

Understand the appropriate use of fear appeal and find advertisements

where it was used appropriately and where it was used inappropriately.

The related case of appeals to scarcity

Understand the theory behind using appeals to scarcity as a persuasion

method and the theory behind psychological reactance. Explain where in

the world scarcity is more used as an influence tactic than anywhere else

and why.


3.4.5 Appeals to consumer guilt

Understand why guilt appeal is used in advertisements and provide

examples of where guilt appeal was used effectively and where it was used

ineffectively.

3.4.6 The use of sex appeal

The use of sex appeal in advertising

Understand why sex appeal is used in advertisements and provide

examples of where sex was used effectively and where it was used

ineffectively.

What role does sex appeal play in advertising?

Understand the potential roles that sex appeal may play in advertising and

provide examples of where it was used appropriately.

The potential downside of sex appeal in advertising

Understand the potential hazards of using sex appeal inappropriately and

provide examples where it was used inappropriately.

3.4.7 Subliminal messages and symbolic embeds

Understand the possible use of subliminal messages and symbolic embeds in

advertising.

Why it is unlikely that subliminal advertising works?

Students need to understand the argument why subliminal advertising may not

work as well as be able to provide a unique situation where subliminal stimuli

may influence brand choice. Be prepared to express your opinion (with


motivation) on the effectiveness of both subliminal messages and the embedding

of hidden symbols.

3.4.8 The functions of music in advertising

Understand the role that music plays in advertising and provide

examples of the effective and ineffective use of music in advertising.

3.4.9 The role of comparative advertising

Understand the role of comparative advertising and whether it is more effective

than other message appeals or not. You need to be able to discuss the suitable

use of comparative advertising.

3.4.10 Conclusion towards message appeals

When studying the various methods of appeals used in advertising, try to

establish, for yourself, when these appeals will be effective (for instance,

endorsement, fear, humour, sexual undertones, consumer guilt and music) and

when you believe these attempts would fail.

The following self-assessment questions are examples that can be used as a

gauge of your understanding of this learning unit. Also refer to the discussion

questions found at the end of the relevant chapters in Shimp (2010).



1. Using the concepts of attractiveness, expertise and trustworthiness, explain

what makes Natalie du Toit an effective endorser. Do the same for Wayne

Rooney.

2. Find examples of magazine advertisements that illustrate each of the

following: (a) an effort to increase consumers’ motivation to process brand

information, and (b) an attempt to enhance consumers’ opportunity to

encode information. Justify why your chosen examples are good

illustrations.

3. Attractiveness as an attribute of endorsers includes but is not restricted to

physical attractiveness. Many would regard Rafael Nadal as attractive. In

what ways other than physical attractiveness might he be considered

attractive?

4. Explain the requirements for an effective endorser using examples of well-

known endorsers to illustrate each requirement.

5. Discuss the factors that enter into the endorser-selection decision.

6. Discuss the role of Q-ratings in selecting celebrity endorsers.

7. Describe the role of humour in advertising and select three advertisements

where humour was used effectively.

8. Explain the logic underlying the use of appeals to fear in advertising.

9. Explain the nature of appeals to guilt in advertising and provide three

examples of guilt appeal advertisements.

10. Discuss the role of sex appeal in advertising, including the downside of such

usage. Provide one magazine advertisement where sex appeal was used

inappropriately.

11. Explain the meaning of subliminal messages and symbolic embeds.

12. Apply the role of music in advertising by using a practical example to

illustrate the concept.


13. Explain the role of comparative advertising and the considerations that

influence the use of this advertising.

3.5 Measuring advertising message effectiveness

Study reference


3.5.1 Introduction to advertising research

The way in which marketers decide if research programmes are effective is

through research. The findings of the research can assist in further strategic

planning to ensure that advertising reaches its objectives. There are two main

streams of advertising research. Media research measures the effectiveness of

media, and message research measures the effectiveness of the message.

Understand the difference between these two streams. For example, it is readily

accepted that the evening news has high ratings and is a very effective media

vehicle of advertising (read through the example of media research measures in

Shimp (2010)). On the other hand, message-based measures assess the

message itself to see how effective it has been. There are many types of

message based measures, depending on the function of the message. They

may include measuring recollection or recognition of the message or a part

thereof, emotional reaction to it, physiological reactions, or buying behaviour.

Work towards understanding these techniques and their functions. Remember

too that the choice of technique depends mostly on the objective of the

advertising campaign, and that more than one method is normally preferable.

Industry standards for message research and what brand managers

and ad agencies want to learn from message research


Be familiar with the nine message-testing principles (Positioning

Advertising Copy Testing (PACT) that represent useful guides to how

advertising research should be conducted.

3.5.2 Two general forms of message research

Message research comes in two general forms: qualitative and

quantitative.

Qualitative message research

You also need to fully understand the various measures that are used in

qualitative message research with specific reference to the Zaltman

Metaphor Elicitation Technique (ZMET).

Qualitative message research

You also need to fully understand the various measures that are used in

quantitative message research.

3.5.3 Measures of recognition and recall

Measures of recognition and recall are equally important and should be fully

understood.

Starch readership service

Understand the Starch readership service and what it offers.

Bruzzone tests

Understand the Bruzzone test and how it works.


Day-after recall testing

Understand the various day-after recall testing methods available and how

these methods work.

3.5.4 Measures of emotional reactions

It is also important to understand the emotional reaction

measurements via physiological arousal and ensure you have a full

comprehension of (1) brain imaging, (2) self-report measures and (3)

physiological measures. Make sure you have a comprehensive understanding

of the two testing devices used for physiological testing and for what specific use

each of these devices is applied.

3.5.5 Measures of persuasion

Also pay attention to measures of persuasion and the methods being used in this

type of research.

3.5.6 Measures of sales response

Also pay attention to measures of sales response and the methods being used in

this type of research.

3.5.7 Other measures of sales response

Also pay attention to other major conclusions about television advertising that

can be drawn from RSC’s research that has used the ARS Persuasion method.


3.5.8 Conclusion

Remember, no single technique for measuring advertising effectiveness is ideal,

nor is any particular technique appropriate for all occasions. The choice of

technique depends on the specific objective an advertising campaign is intended

to accomplish.


1. Explain the rationale and importance of advertising research.

2. Describe the various research techniques used to measure consumers’

recognition and recall of advertising messages.

3. Illustrate measures of physiological arousal to advertisements.

4. Explicate the role of persuasion measurement, including pre- and post-

testing of consumer preference.

5. Explain the meaning and operation of single-source measures of

advertising effectiveness.

3.6 Planning for and analysing advertising media

Study reference


3.6.1 Introduction

The creative messages explained earlier are of little use unless advertising media

are selected that will effectively reach the intended target audience. The


following few chapters are devoted to various media considerations. Chapter 10

explores the media planning process and the various factors that go into

selecting media.

3.6.2 Media terminology

Firstly, you need to familiarise yourself with some useful media

terminology, i.e. media versus vehicles and the difference between these

terminologies.

3.6.3 Messages and media: A hand-in-glove relation

Secondly, you need to understand that advertising messages and

media considerations are inextricably related. The choice of media and vehicles

is, in many respects, the most complicated of all marketing communications

decisions due to the variety of decisions that must be made. It is thus critical to

understand the interrelation between media and messages.

3.6.4 Selecting and buying media and vehicles

It is furthermore useful to examine how the advertising industry makes buying

decisions related to media and vehicles. There are various media planning

models and the student should be aware of these.

3.6.5 The media-planning process

You need to familiarise yourself with the media planning process and the various

factors that go into making media-selection decisions. Figure 11.1 in Shimp


(2010: 321) provides a good summary of the model of the media-planning

process.

By studying this study unit you will be able to answer the question about how you

can motivate your choice in marketing media and vehicles. Firstly, it is important

to understand how the media strategy relates to the marketing strategy. The

media strategy is one of a series of decisions. Even before you define your

media strategy you will have decided on your advertising objectives, your budget,

and your message. The four components of the media strategy include:

1. The target audience selection

2. Objective specification

3. Media and vehicle selection

4. Buying the media.

3.6.6 Selecting the target audience

Effective media strategy requires first that the target audience be pinpointed.

Refer back to Chapter 4 when target audience selection characteristics were

explained.

3.6.7 Specifying media objectives

Having pinpointed the target audience, the next media-planning

consideration involves specifying the objectives that an advertising schedule is

designed to accomplish during the planned campaign period. Specific media

technical terms need to be fully comprehended:

Reach

Students need to understand exactly what reach means and what the

determinants of reach are.


Frequency

Students need to understand exactly what frequency means and what the

concept of frequency distribution is.

Weight

Students need to understand exactly what weight means. Furthermore,

the following terminology and concepts related to weight need to be fully

understood:

• Ratings

• Gross Rating Points (GRPs)

• Target Rating Points (TRPs)

and

• How to determine GRPs in practice

• The concept of effective reach

• How many exposures are needed

• Effective reach planning in advertising practice

• An alternative approach: Frequency value planning.

Continuity

Students need to understand exactly what continuity means. Furthermore,

the following terminology and concepts related to continuity need to be

fully understood:

• Continuous scheduling

• Pulsing

• Flighting.

Recency planning

Students need to understand exactly what recency planning (a.k.a the

shelf-space model) means. Furthermore, the following terminology and

concepts related to recency planning need to be fully understood:

• The powerful first exposure


• Influencing brand choice

• Optimising weekly reach

• Toward reconciliation.

Cost considerations

Students need to understand exactly what cost considerations mean in

terms of media planning. Furthermore, the following terminology and

concepts related to cost considerations need to be fully understood:

• Cost per thousand (CPM)

• CPM-TM.

The necessity of making trade-offs

Trade-offs are necessary because media planners operate under the

constraint of tight media budgets. Hence optimising one objective requires

the sacrifice of other objectives. Students need to be aware of this and be

able to understand the importance thereof.

3.6.8 Media-scheduling software

Various media-scheduling software is available to assist media

planners during the process. Students need to be aware of this and be able to

follow a step-by-step process to select the ‘best’ vehicles from a large set of

media options available. Follow the example being illustrated and explained in

Shimp (2010: 341-346).

3.6.9 Review of media plans

It is useful to consider various media plans to appreciate the various components

that form part of the entire media planning process. The textbook provides


excellent practical examples that will assist you in understanding how to develop

a media strategy and review a media plan – see The Diet Dr Pepper Plan, the

Saab 9-5’s Media Plan, and the Olympus Camera Media Plan for further

reference. It would be useful to read through these and understand each plan.

(Shimp 2010: 346-354).

3.6.10 Media strategy

You also need to be able to devise a media strategy. Select a practical example

(possibly WOW jeans) and apply this to the development of such a media

strategy. Special consideration should be applied to the six media objectives and

their interdependence.


1. Describe the major factors used in segmenting target audiences for media

planning purposes.

2. Explain the meaning of reach, frequency, gross rating points, target rating

points, effective reach, and other media concepts.

3. Discuss the logic of the three-exposure hypothesis and its role in media and

vehicle selection.

4. Describe the use of the efficiency index procedure for media selection.

5. Distinguish the differences among three forms of advertising allocation:

continuous, pulsed, and flighted schedules.

6. Explain the principle of recency and its implications for allocating advertising

expenditures over time.

7. Perform cost-per-thousand calculations.

8. Interpret the output from a computerised media model.

9. Review actual media plans.


3.7 Using traditional advertising media

Study reference


3.7.1 Introduction

When planning your media campaign, there are at least four types of traditional

media that you may consider using: television, radio, magazines and

newspapers. Within each medium there are also various vehicles that may carry

your message. Each medium has unique qualities with strengths and

weaknesses. This study unit focus on these four types of traditional media.

It is important to recognise that the choice of which medium is ‘best’ to use

depends entirely on the advertiser’s objectives, the creative needs, the

competitive challenge and the budget available. The ‘best’ medium or

combination of media is determined by conducting a careful examination of the

advertised brand’s needs and resources.

3.7.2 Newspapers

Newspapers as a medium offer various vehicles that may carry your message.

Newspapers also have unique qualities with strengths and weaknesses. You

should be familiar with all these aspects of newspapers as a medium.

3.7.3 Magazines

Magazines as a medium offer various vehicles that may carry your message.

Magazines also have unique qualities with strengths and weaknesses. You


should be familiar with all these aspects of magazines as a medium.

Furthermore, ensure you are familiar with magazine audience measurement and

the importance of customised magazines.

3.7.4 Radio

Radio as a medium offers various vehicles that may carry your message. Radio

also has unique qualities with strengths and weaknesses. You should be familiar

with all these aspects of radio as a medium. Furthermore, ensure you are familiar

with radio audience measurement

3.7.5 Television

Television as a medium offers various vehicles that may carry your message.

Consider the specific strengths and weaknesses of dayparts i.e. daytime; fringe

time and prime time. Understand the difference between network television

advertising, spot television advertising, syndicated advertising, cable advertising

and local television advertising. Television also has unique qualities with

strengths and weaknesses. You should be familiar with all these aspects of

television as a medium.

Infomercial

Understand the role infomercials play as an alternative to the

conventional, short form of television advertising.

Brand placement in television programmes

Understand the role (as well as advantages of) brand placement plays as

an alternative to the conventional, short form of television advertising.


Television audience measurement

Furthermore, ensure you are familiar with television audience

measurement and the various measurement techniques and options

available, i.e. Nielsen’s People Meter; Nielsen’s Diary Panels; Nielsen’s

local people meters; away from home viewer measurements and the new

challenger to Nielsen.


1. Describe the four major traditional advertising media.

2. Discuss newspaper advertising and its strengths and limitations.

3. Evaluate magazine advertising and its strengths and limitations.

4. Discuss radio advertising and its strengths and limitations.

5. Discuss television advertising and its strengths and limitations.

6. Assume you are brand manager for a new product line of ladies’ cosmetics

focusing on the teenage youth market. Assume you have R500 000 to invest

in a two-month magazine advertising campaign. Which magazines would you

choose for this campaign? Justify your choices.

7. Assume you are the manufacturer of costume jewellery items. Your most

important time to sell these jewellery items is during February just before

Valentine’s Day. You are in the process of developing media strategy aimed

at specifically university students and young professionals straight out of

university or technikon. With an annual budget of R3 million, what media and

specific vehicles would you use for this campaign? How would you schedule

the advertising over time?


3.8 Employing the Internet for advertising

Study reference


3.8.1 Introduction

Various electronically driven media may now also be used, such as the Internet.

These forms of advertising have one major advantage over other media – they

can be interactive. To how many of these forms of advertising media have you

been exposed in the last seven days? Can you think of any one that has made a

conscious impact on you?

It is important to realise that the Internet’s exact role as an advertising medium is

in a state of flux – new technologies are continually emerging and marketers are

experimenting with various uses of online advertising. Upon completion of this

chapter you will have developed an appreciation of the scope and potential of the

Internet as a viable advertising medium – a medium that will undoubtedly

continue to steal advertising spend from the traditional ad media.

Internet: Individualisation and interactivity

Individualisation and interactivity are key features of the Internet and

should be fully understood.

The Internet compared to other ad media

The Internet as an advertising medium offers various vehicles (advertising

formats) that may carry your message on the Internet (see table 13.1 on

p. 396 of Shimp (2010) for a quick reference to these advertising formats).

The Internet also has unique qualities with strengths and weaknesses


compared to other ad media. You should be familiar with all these aspects

of the Internet as a medium.

3.8.2 Websites

You should be familiar with all aspects related to websites as a possible Internet

advertising format.

3.8.3 Display or banner ads

You should be familiar with all aspects related to display or

banner-ads as a possible Internet advertising format. Ensure you can explain

click-through rates as well as standardisation of banner-ad sizes.

3.8.4 Rich media: Pop-ups, interstitials, superstitials and video ads

You should be familiar with all aspects related of the various forms of rich media

available as possible Internet advertising formats.

3.8.5 Blogs, podcasts and social networks

You should be familiar with all aspects related of the various forms of blogs,

podcasts and social networks available as possible Internet advertising formats.

3.8.6 Email advertising

You should be familiar with all aspects related of the various forms

of email advertising as possible Internet advertising formats.


Opt-in emailing versus spam

Understand the difference between opt-in emailing versus spam and

consider the illegal practice of phishing.

Email magazines (E-zines)

Understand e-zines (sponsored email) and try and find examples of

e-zines on the Internet.

Wireless email advertising

Understand wireless email advertising and the role of Wi-Fi in making this

format possible. Consider the challenge for Internet users in locating

hotspots where wireless Internet connection is possible.

The special case of mobile phones

Understand mobile phones as an advertising format and be familiar with

the reasons why mobile phones offer a potentially attractive advertising

medium.

Search Engine Advertising (SEA)

Understand SEA.

The fundamentals of SEA

Ensure you fully comprehend the fundamentals of SEA.

Purchasing keywords and selecting content-orientated websites

Ensure you fully appreciate the various forms of SEA and how they are

used. You also need to be aware of the pitfalls of using SEA.

Advertising via behavioural targeting

Understand the essence of online behavioural targeting.


Measuring Internet ad effectiveness

Ensure you understand the various measurement techniques being used

to measure the effectiveness of Internet ad performance.


1. Appreciate the magnitude, nature and potential for Internet advertising.

2. Explain the two key features of Internet advertising: individualisation and

interactivity.

3. Explain how Internet advertising differs from advertising in conventional mass-

oriented advertising media, as well as how the same fundamentals apply to

both general categories of ad media.

4. Explain the various forms of Internet advertising: display ads, rich media,

email advertising, web logs, search engine advertising, and advertising via

behavioural targeting – try and find practical examples of each form.

5. Explain the importance of measuring Internet advertising effectiveness and

the various metrics used for this purpose.

3.9 Using other advertising media

Study reference


3.9.1 Introduction

This chapter deals with the general topic of ‘other’ advertising media which were

not previously covered. These ‘other’ advertising media generally are insufficient


for performing the full marketing communications tasks that are necessary to

build a brand’s equity and to generate sales volume to achieve a reasonable

return on investment. They do however fulfil a valuable supplementary role to

support a complete IMC programme.

Refer to table 14.1 in Shimp (2010: 422) for a framework for various forms of

other advertising being discussed in this section.

Word-of-mouth advertising and buzz generation are outside the scope of the

present chapter and will be covered in Chapter 18. Out-of-home advertising,

external store signage and point-of-purchase advertising will be covered in

Chapter 20.

3.9.2 Direct advertising via postal mail

Consider some of the alternative advertising media such as direct

advertising and, in particular, postal mail advertising (p-mail).

Illustrations of successful p-mail campaigns

Consider some of the alternative advertising media such as direct

advertising and, in particular, postal mail advertising.

The distinctive features of p-mail

Ensure you fully comprehend the distinctive features of p-mail compared

to mass forms of advertising.

The users of p-mail and the functions p-mail accomplishes

Ensure you are aware of examples of companies that use p-mail as an

advertising medium and that you understand the functions that can be

achieved through the implementation of a p-mail campaign.


The special case of catalogs and audiovisual media

You should understand the two rather unique forms of p-mail, i.e. catalogs

and audiovisual media.

The use of databases, lifetime-value analysis and the practice of data

mining

You should appreciate the role of database marketing, data mining and

lifetime-value analysis.

3.9.3 Brand placements in movies and television programmes

You should appreciate the importance of branded entertainment and brand

placements in various venues, i.e. movies, television, etc.

3.9.4 Yellow-pages advertising

Understand the value of yellow-pages advertising.

3.9.5 Video-game advertising (a.k.a. advergaming)

Recognise the growth and role of video-game advertising (advergaming).

3.9.6 Cinema advertising

Understand the role of cinema advertising.

3.9.7 Potpourri of alternative advertising media

Appreciate the potential value of various ‘alternative’ ad media.

Can you think of another medium of advertising that is not described in your

prescribed or recommended textbook?


3.10 Conclusion

For you to be able to manage the choice of advertising media, you will need to

understand all the strengths and weaknesses associated with each medium. A

useful technique is to draw a table in which you can capture the characteristics,

strengths and weakness of each of these media. From your analysis, you will

see just how many media are used in advertising.


1. Explain why postal mail advertising is an efficient and effective ad medium.

2. Discuss p-mail’s five distinctive features compared to mass forms of

advertising.

3. Explain the role of database marketing, data mining, and lifetime-value

analysis.

4. Describe the role of audio-video advertising.

5. Explain the value of yellow-pages advertising.

6. Discuss the growth and role of videogame advertising (advergaming).

7. Apply branded entertainment and brand placements in various venues

through the use of practical examples (movies, TV, etc.).

8. Can you recall any prominent brand placements in movies you have seen

recently? What were these placements? Were the products ‘positioned’ in

positive or negative contexts? How successful, in your opinion, were these

placements?

9. Describe the role of cinema advertising and web films.


10. What are your views on both the appropriateness and the effectiveness of

placing advertisements in restrooms?

11. Identify two ‘spaces’ advertisers are not currently using that could be used for

placing ad messages. What kind of brands would appropriately advertise on

each of your suggested spaces, and what would be an appropriate target

audience for messages placed on each space.


Study Unit 4: Sales promotion management


This study unit deals with an overview of sales promotion, with emphasis on

trade-related sales promotions and customer-related sales promotion.



• Discuss the characteristics of trade-orientated promotions.

• Understand the concept of sales promotions.

• Explain the generalisations regarding trade-promotion effectiveness.

• Describe consumer-orientated forms of sales promotions.

4.2 Sales promotion management

Study reference


Sales promotions, in essence, are incentives to buy. The incentive is targeted

either at (a) trade (wholesalers and retailers), directly at (b) the consumer, or

even at (c) the company’s own sales force.

This study unit overviews sales promotions by explaining the targets of

promotional efforts and the reasons underlying the rapid growth of promotions. It

also provides an outline of sales promotion’s capabilities and limitations.


4.2.1 Introduction

Make sure that you have a thorough grasp of the definition and nature of sales

promotions as well as the three groups of targets for sales promotions.

4.2.2 Increased budgetary allocations to promotions

Formulate an informed opinion as to why sales promotion is growing in

importance compared to advertising. There is much evidence of the positive

effect that sales promotions may have. Price-oriented promotions have been

shown to achieve short-term results such as increasing market share, and

encouraging customers to switch brands and to start using products on trial. Non-

price promotions again can meet longer-term goals such as improving the brand

image, resulting in more positive brand associations and even increasing loyalty

to a brand.7

Make sure you can explain the importance of sales promotions in terms of pull

and push theories, the balance of power that is beginning to lie with the retailer,

increased brand parity, increase in price sensitivity, reduced brand loyalty, the

fragmentation of the mass market, short-term consumerism, and simply the way

consumer’s love sales promotions.

4.2.3 Sales promotion’s capabilities and limitations

With the above-mentioned understanding of the role and usefulness of sales

promotions, make sure that you also equip yourself with an understanding of why

sales promotions are not always the right choice, on the one hand, and when

they would be really profitable, on the other hand. Be sure that you can explain

7 Lee, C. W. 2002. “Sales promotion as strategic communication: The case of Singapore”. Journal

of Product and Brand Management 11(2).


the nature of the market that supports profitable sales promotions. Make sure

you understand the capabilities and limitations of sales promotions.

4.2.4 The role of trade promotions

The next section focuses primarily on the role of trade promotions. Ensure you

understand what trade promotions are as well as the scope and objectives of

trade promotions. They are incentives to buy, aimed at retailers, wholesalers and

other intermediaries.

There are nine objectives of trade promotions listed in Shimp (2020). This is of

the essence in the understanding of trade promotions and should be studied.

It may be worthwhile, at this stage, to identify exactly what is meant by

wholesalers and retailers. Kotler and Armstrong (2005) describe them as follows:

retailers sell directly to their customers, but the wholesalers’ customer is buying

for business purposes – either to sell it or use it in the business process.8 There

are a number of wholesale functions that you may be able to think of, such as

selling and promoting, buying to build a range of products, bulk-breaking,

warehousing, transporting, financing, risk bearing, supplying market information,

and providing management services and advice.

Ingredients for a successful trade promotion programme

Ensure that you can describe the elements of a successful trade-promotion

programme.

4.2.5 Trade allowances

A more detailed discussion is required for the various forms of trade allowances.

8 Kotler, P., and Armstrong, G. 2005. Principles of Marketing. 7

th edn. New Jersey: Pearson/

Prentice Hall.


It will be useful to make a summary for yourself of the key qualities of the types of

trade allowances described in Shimp (2010) as well as to be able to explain the

undesirable consequences of off-invoice allowances: forward buying and

diverting. In your summary, focus on the definition of the type of trade deal,

subcategories and definitions, when it is used, or its function.

Undesirable consequences of off-invoice allowances: Forward

buying and diverting

You also need to fully understand the notable developments that hold

important implications for trade allowances. Two of these represent major

changes in the interrelations between manufacturers and retailers.

Effects to rectify trade allowance problems

The final three reflect more specific practices on the part of manufacturers.

4.2.6 Generalisations about promotions

Researchers have vigorously studied the functioning and effectiveness of sales

promotions during the past two decades and empirical efforts have enabled

researchers to draw some tentative conclusions. These nine conclusions

represent consistent evidence regarding different facets of promotion

performances and need to be fully understood.

4.3 Consumer-oriented sales promotions – sampling and couponing as

well as premiums and other promotions

Study reference

Study Shimp 2010: Chapters 16 and 17.

4.3.1 Introduction

At the heart of understanding customer-oriented sales promotion is what


marketers want to achieve through this type of promotion and what reward the

consumer reaps. The three objectives for marketers are trial impact, customer

holding/loading and image reinforcement. Consumers again receive either an

immediate reward or a delayed reward. Make sure that you thoroughly

understand this rationale that underpins sales promotions, that is, why consumer

promotions are used, as well as the objectives that brand managers hope to

accomplish by using consumer oriented promotions and why consumers are

receptive to promotional efforts.

Various techniques and tools are associated with the above-mentioned

objectives and rewards. Ensure that you can link these techniques to, on the one

hand, one of the three objectives the marketer may have and, on the other hand,

the immediate or delayed reward they hold for the consumer. Refer to Table 16.1

in Shimp (2010) for a summary of this. It is, however, important to emphasise that

the classification of promotional tools in Table 16.1 is necessarily simplified.

Promotions are capable of accomplishing more than a single objective. You also

need to understand that manufacturers use consumer-orientated sales

promotions to leverage trade support. You also need to realise that coupons and

premiums are found in more than one cell of the table because these techniques

achieve different objectives, depending on the specific form of delivery vehicle.

Your next step would be to summarise the various sales promotion methods with

specific reference to sampling, couponing, premiums and other promotions in

more depth. Drawing up a table to summarise these methods may be a useful

tool in helping you prepare for your final assessment.

4.3.2 Sampling

Read through this section and make sure you identify the

definition, techniques, assessment methods, functions and limitations of

sampling.


Major sampling practices

Read through this section ensure you understand the three prudent

practices associated with sampling.

When sampling should be used

Read through this section ensure you understand the ideal circumstances

when sampling should be used.

Sampling problems

Read through this section ensure you understand the problems associated

with sampling.

4.3.3 Couponing



couponing.

Point-of-purchase couponing

Read through this section and make sure you understand the three forms

of point-of-purchase couponing.

Online couponing

Read through this section and make sure you understand online

couponing.

The coupon redemption process and misredemption

Read through this section and make sure you understand couponing

redemption and misredemption.


4.3.4 The role of promotion agencies

Read through this section and make sure you understand the role of promotion

agencies and the rise of the online promotion agency.

4.3.5 Premiums



premiums.

Free-with-purchase premiums

Read through this section and make sure you understand free-with-

purchase premiums.

Mail-in offers

Read through this section and make sure you understand mail-in offers.

In-, on-, and near-pack premiums

Read through this section and make sure you understand in-, on- and

near-pack premiums as well as the special case of ‘Buy X, Get 1 Free’

offers.

Self-liquidating offers

Read through this section and make sure you understand self-liquidating

offers.

Phone cards

Read through this section and make sure you understand phone cards.


4.3.6 Price-offs

Read through this section and make sure you identify the definition, techniques,

regulations and limitations of price-offs.

4.3.7 Bonus packs

Read through this section and make sure you understand bonus packs as a

sales promotional tool.

4.3.8 Games

Read through this section and make sure you understand games as a sales

promotional tool.

4.3.9 Rebates and refunds

Read through this section and make sure you understand rebates and refunds as

a sales promotional tool.

4.3.10 Sweepstakes and contests

Read through this section and make sure you understand sweepstakes and

contests as sales promotional tools.

4.3.11 Continuity promotions

Read through this section and make sure you understand continuity promotions

as a sales promotional tool.


4.3.12 Overlay and tie-in promotions

Read through this section and make sure you understand overlay and tie-in

promotions as a sales promotional tool.

4.3.13 Retailer promotions

Read through this section and make sure you understand retailer promotions as

a sales promotional tool.

4.3.14 Evaluating sales promotion ideas

The next section deals with the evaluation of sales promotions

and you need to familiarise yourself with the procedure to follow for the

evaluation of promotion ideas as well as the characteristics of a post-mortem

analysis.

Although this learning unit takes up little space in your prescribed textbook, it is

still essential. You need to be able to explain and apply the three-step method

that may be used to determine if your sales promotion is going to be successful.

These steps embody the identification of objectives and the reaching of

agreement, as well as a five-point system to evaluate the sales promotion idea.



1. Assume that you are working in the marketing department of Bakers

Biscuits. The company is developing a new cracker. You are convinced that

promotion is the best way to launch this new product. Explain what the term

‘promotion’ means, discuss how it differs from advertising, and list the types

of promotions appropriate for each of the potential targets of sales promotion

for this type of product.

2. Discuss three things sales promotion can accomplish and three things sales

promotion cannot accomplish.

3. Explain how retailers can charge manufacturers slotting allowances when

many people feel that these allowances are a form of bribery.

4. Explain forward buying and diverting. Who benefits or loses from these

practices?

5. Describe the fundamentals of a pay-for-performance program. Why could

this program be better for the retail system than the traditional system of

trade allowances?

6. Name and describe the types of rewards consumers receive when using

sales promotions.

7. Assume that you work in the marketing department for a manufacturer of

gum. They have recently developed a brand of sugarless gum that keeps its

flavour for hours. The target market is teens. Discuss the various distribution

methods used to deliver samples. Which do you recommend for this?

8. Assume that you work in the marketing department for a company that

manufactures dog food. Explain why you think the use of coupons would be

effective and what can be done to maximise the redemption rate.

9. Describe the coupon redemption process and how misredemption can

occur.


10. Define what a premium is, and name and describe the four types of

premiums.

11. Assume that you are the marketing director for a computer parts

manufacturer that wants to use rebates as a promotional tool. Explain what

rebate fraud is and how you would possibly control this problem.

12. Compare and contrast price-off promotions and bonus packs.

13. Compare and contrast overlay and tie-in promotions and give an example of

each.

14. One strength of promotions is that results can be measured to assess the

success of a promotional programme. Name and describe the five

characteristics by which completed promotion programs can be judged.


Study Unit 5: Other marcom tools


The post-modern world of work offers several ‘new’ marketing communication

tools, such as public relations, word-of-mouth management, and sponsorship

marketing and signage and point-of-purchase communications. This study unit

provides an overview of these supportive marketing communication tools.



• Understand marketing-orientated public relations.

• Explain the importance of word-of-mouth and the management thereof.

• Discuss events sponsorships and cause-related marketing.

• Understand on-premise business signage.

• Understand out-of-home (off-premise) advertising.

• Explain in-store point-of-purchase advertising.

5.2 Marketing-orientated public relations and word-of-mouth

management

Study reference



5.2.1 Introduction

Public relations (PR) deals with exactly that – building good relations with the

public. ‘Public’ does not only include customers but also employees,

shareholders, the government, environmental officials, etc. When PR is focused

on overcoming bad images and problems with stakeholders of the company, we

refer to it as ‘general public relations’. It is important that you understand the

difference between marketing PR and advertising.

Marketing-orientated public relations (MPR)

However, marketing PR deals specifically with the relationship between

the company and consumers.

Proactive MPR

It can take on the form of a proactive tool where, as a PR person, you

actively build the company’s product and brands, through editorials, for

example. You should be fully aware of the role of proactive MPR and the

difference between proactive and reactive MPR.

Reactive MPR

When rumours and negative publication emerge against your company,

you have to resort to reactive PR to prevent negative outcomes for the

company. Understand the most dramatic factors underlying the need for

reactive MPR.

To support your learning of the theory relating to PR, page through various

newspapers and magazines to identify examples of both proactive and

reactive PR. The prescribed and recommended textbooks also give

examples of PR and the rumours that may drive them.


Crisis management

Understand the importance of crisis management when dealing with

reactive MPR.

Rumours and urban legends

Ensure you fully comprehend the types of commercial rumours and how to

control them.

Once you feel comfortable with your understanding of MPR as a marketing tool,

you may proceed to study the marketing communication tool of word-of-mouth

influence.

5.2.2 Word-of-Mouth (WOM) influence

It is important to realise the role that word-of-mouth can play in the

adoption process.

Strong and weak ties

Familiarise yourself with the themes of strong and weak ties.

The role of opinion leaders in WOM dissemination

Familiarise yourself with the role opinion leaders play in terms of WOM

influence.

The prevention of negative WOM

Understand the devastating effect of unfavourable WOM on a brand’s

image.


5.2.3 Creating buzz

The following two concepts must be studied:

Creating an epidemic

It is important to understand the concept of creating an epidemic and the

specific rules associated with this, namely, the law of the few, the

stickiness factor and the power of the context. All these play an important

role in the ultimate adoption process.

Igniting explosive self-generating demand (ESGD)

When further investigating Buzz creation, you also need to familiarise

yourself with the concept of ESGD and the key principles associated with

ESGD. Think of how you can apply these principles to the mobile phone

example in this learning unit, and also pay special attention to how you

could use the Internet to create buzz for this new product.

5.3 Event and cause sponsorships

Study reference


5.3.1 Introduction

We are all familiar with sponsorship of sports events. Have you ever stopped to

think why certain companies have their brands splashed all over a sports

stadium, or why companies would sponsor a superstar to wear their products? As

part of marketing, companies sponsor events and people to achieve the

companies’ own objectives which could be, for instance, to support brand

building.


Sponsorships per se are one of the fastest growing tools to reach one’s target

audience. Companies spend billions of US dollars every year on sponsorships.

An important advantage of sponsorships to remember is that they allow you to

reach audiences with similar demographics and lifestyles – all at the same time.

When the company brand is linked to the sponsored event, the consumers’

attention is immediately obtained. With a clear link between the sponsor and the

event, there is evidence that the consumer will develop positive attitudes towards

the sponsor too.9

5.3.2 Event sponsorship

You must be able to discuss the differences between cause-

related marketing and event marketing. Event sponsorship allows for the linking

of your brand to something that people respect and love, such as cultural, athletic

or entertainment events.

Selecting sponsorship events

Ensure you understand the factors to consider when selecting an event to

sponsor.

Creation of customised events

Ensure you understand the development of own events and the reasons

why marketers choose to customise their own events rather than

sponsoring events another organisation conducts.

Ambushing events

Ensure you understand ambush marketing and the reasons why it takes

9 Roy, D.P., and Cornwell, B. 2003. “Brand equity’s influence on responses to event sponsorship”.

Journal of Product and Brand Management 12(6).


place. You can consider the recent 2010 FIFA World Cup™ as a perfect

example of how ambush marketing was not allowed at all.

Measuring the success of events

Appreciate the importance of measuring sponsorship performance.

5.3.3 Cause sponsorship

A company may be serving, through cause-related sponsorship, a specific cause

of helping a group in order to produce revenue for itself. Find examples to

illustrate your understanding of how cause-related marketing operates. There

are a few examples in Shimp (2010); however, it is necessary to consider more

local examples also.

The benefits of Cause-Related Marketing (CRM)

Ensure you fully understand the benefits associated with CRM.

The importance of fit

Ensure you fully understand the importance of finding the most

appropriate fit between the cause and your organisation.

Accountability

Understand that accountability is a key consideration for cause-orientated

as well as event orientated sponsorships

5.4 Signage and point-of-purchase communications

Study reference



5.4.1 Introduction

This section examines communicating with consumers at the POP or close to it.

Three general forms of marcom are covered: out-of-home advertisements (e.g.

billboards), on-premise signage, and in-store POP messages. Two general

forms of ‘outside’ marcom messages are delineated: (1) out-of-home

advertisings or off-premise ads, and (2) on-premise business signage, with the

difference being that on-premise signage communicates information about

products and services in close proximity to the store, and off-premise signage

provides information about goods and services that are available elsewhere.

These important aspects typically receive little coverage in marcom texts

although they are growing in importance as part of the overall marcom mix.

5.4.2 On-premise business signage

You need to familiarise yourself with on-premise business signage

and the important role this can play in the overall marcom mix. Just think of

something like a financial institution and how important in-branch signage is to

direct clients to the right areas. Or consider your nearest fast-food outlet, e.g.

McDonalds and/or KFC: walk into the outlet and look at the effective or ineffective

use of their on-premise signage.

Out-of-Home (OOH) (off-premise) business signage

Appreciate the role and importance of OOH or off-premise advertising.

It is important to familiarise yourself with the various types of out-of-home

advertising, their strengths and limitations, and how to measure audience

size and characteristics.


Billboard ads’ forms, strengths and limitations

Ensure you are fully aware of the various forms of billboard advertising.

You also need to understand the strengths and limitations associated with

billboard advertising.

Measuring the effectiveness of billboard advertising

Appreciate the importance of measuring billboard audience size and

characteristics. Shimp (2010) has a wonderful example of a case study on

billboard effectiveness.

5.4.3 Other forms of OOH advertising

Understand that there are many other forms of OOH advertising that can be

considered.

5.4.4 Point-of-Purchase (POP) advertising

Appreciate the role and importance of point-of-purchase advertising. Refer to the

following aspects:

The spectrum of POP materials

Understand the categories associated with POP materials. When you

read through the various tools that may be used to communicate at the

POP, strive to understand why these techniques are useful. Think, for

instance, of interactive displays and how they can give the consumer

greater confidence in his/her decision. Also find out why displays are

effective. Keep in mind that the POP moment is one of the best to

communicate with the potential customer, and that the decision to buy in a

specific shop may very well be due to the displays and other POP

materials that are available to assist the customer to make the decision.


What does POP accomplish?

Understand what POP can accomplish. There are four key functions of

POP tools. Prepare yourself to be able to describe how these materials

can inform the consumer, remind the consumer through the encoding

specificity principle, encourage the consumer to buy, and boost retail sales

through the principles of merchandising or the arrangement of the

merchandise in a specific way.

POP’s influence on consumer behaviour

Understand the various ways in which POP can influence consumer

behaviour.

Shimp (2010) indicates that there is clear evidence that POP materials can

increase sale volumes. A POP occurs when the consumer, with his/her money,

meets the product at the same time in the same place. If you think back to our

example of WOW designer jeans, a POP moment would be when you walk into a

group of young wealthy consumers who love your jeans and have money on

them to buy. We have all experienced the sales frenzy that can result! The

motives for this include excitement and the deep need for us to explore. Keep in

mind that you do not have to be physically present, but you can communicate the

quality of your product through materials such as displays, signs and coupons at

the place and time of purchase.

Evidence of in-store decision making

Review evidence of POP’s role in influencing consumer’s in-store

decision making.

Evidence of display effectiveness

Examine empirical evidence revealing the effectiveness of POP displays.

Think of the last time you were inside a Pick n Pay or Shoprite Checkers

and how a specific POP display for a well-known brand caught your


attention. You may need to explain the effectiveness of POP displays to

your financial director one day and need to consider the scientific evidence

available to substantiate your argument.

The use and non-use of POP materials

Understand why POP materials are often never used or used incorrectly

by retailers.

Measuring in-store advertising’s effectiveness

Appreciate the importance of measuring audience size and demographic

characteristics for out-of-home as well as in-store advertising messages.

5.5 Conclusion

This concludes the study unit that deals with public relations, the role of WOM,

buzz creation, event and cause sponsorships, and signage and point-of-purchase

communications.

The following self-assessment questions are examples that can be used as a

gauge of your understanding of the study unit. Also refer to the discussion




1. Explain the nature and role of marketing public relations (MPR).

2. Explain the differences between proactive and reactive MPR.

3. Describe the types of commercial rumours and how to control them.

4. Describe the role of ‘buzz’ in facilitating product adoption.

5. Be aware of event sponsorships and how to select appropriate events. Use

practical examples to illustrate the concept.

6. Explain the nature and role of cause-oriented marketing sponsorship.

7. Explain the role and importance of out-of-home, or off-premise, advertising.

8. Explain billboard advertising’s strengths and limitations.

9. Describe the role and importance of on-premise business signage.

10. Illustrate the various forms and functions of on-premise signage.

11. Describe the role and importance of POP advertising.

12. Describe the tasks that POP advertising accomplishes.

13. Review evidence of POP’s role in influencing consumers’ in-store decision

making.

14. Examine empirical evidence revealing the effectiveness of POP displays.

15. Explain the importance of measuring audience size and demographic

characteristics for out-of-home as well as in-store advertising messages.


Study Unit 6: Marcom constraints

6.1 Environmental, regulatory and ethical issues in marketing

communication

Study reference


6.1.1 Introduction

This section examines three major topics: (1) ethical issues in marketing

communications, (2) the regulation of marcom practices, and (3) environmental

matters and their implications for marketing communications.



• Understand and discuss ethical issues in marketing communications.

• Identify marcom related regulatory and environmental issues.

6.1.2 Ethical issues in marketing communications

The issue of ethics must not be overlooked in any business module. Take some

time to think about what your values are, and what you would find offensive in

marketing communication. These values should guide your decisions in

marketing communication. By thinking about your values, and answering the

following questions, you should gain a sense of the type of ethical decision that

the marketing communicator needs to consider.


1. Is it appropriate to advertise the use of alcohol to teenagers?

2. Does advertising manipulate people to buy products they would normally not

buy?

3. Are naked bodies offensive in advertising?

4. Does advertising sometimes make you feel unattractive or ‘not good enough’?

5. Can you think of examples of companies marketing unsafe products?

6. Do companies oversell the value of the product on its packaging?

Some people may perceive advertising as intrusive or pervasive. Some

advertising may be seen as offensive, false, misleading or even unfair. Countries

such as Australia, New Zealand, the UK and the USA, may regulate themselves

in terms of advertising.10 What is the situation in South Africa? Refer to

information on the Industry Complaints Commission.

Carefully study the specific section in this study unit dealing with ethical issues in

Shimp (2010). At the end of this study unit, write down guidelines that you will

use as a marketing communicator to guide the ethical considerations of your

communication.

6.1.3 Regulation of marketing communications

The specific regulation of marketing communication described in

Shimp (2010) is not applicable in the South African context, but gives a general

perspective. Your task is to search relevant South African websites to determine

environmental regulations that could affect your marketing communication.

6.1.4 Environmental marketing communications

10

Harker, D. 1998. “Achieving acceptable advertising: An analysis of advertising regulations in


To understand environmental issues in marketing communication, it is essential

to understand what is meant by green marketing, and how marketers can help

overcome environmental problems. Think, for instance, how, through

advertising, you can sponsor a cause for environmental conservation; think of

logos that are used on products to indicate environmental friendliness. After

reading this learning unit in your textbook, assemble examples of green

marketing from magazines or product packaging in your home.

five countries”. International Marketing Review 15(2).


Study Unit 7: Formulating a marcom plan

7.1 Specific learning outcome

Specific learning outcome


• Develop a detailed marketing communications plan for a selected product

(new or established).

The following framework will provide you with a thorough background to the

development of a marcom plan and is applicable to help you formulate a detailed

plan for either an established brand or a new brand.

For clarity of expression, keep in mind that a brand represents a specific

organisation’s entry into a particular product category. The brand may be a

product, a service, a not-for-profit programme, or any other type of offering to a

market-place. Whatever the nature of the brand, a marcom planner formulates a

plan in an effort to gain, maintain, or build his or her brand’s share of market in a

competitive product category. Marcom planning entails the activities described in

the following learning units.11

7.2 Framework for the formulation of a marcom plan

7.2.1 Situation and SWOT analyses

Initial aspects of a marcom plan involve performing a situation analysis and

conducting a SWOT analysis. A SWOT analysis is versatile and can be applied

11

Shimp, T.A. 2007. Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. 7th edn. Thomson, South Western.


throughout the planning and control process, but is particularly helpful at this

early audit stage when trying to get a balanced picture across a number of

variables.

To get maximum value from any SWOT analysis:

• Be systematic, work through your checklist to ensure all aspects have been

considered.

• Question assumptions – particularly about what is a strength and why.

• Quantify and benchmark to ensure your analysis is as objective as possible.

• Prioritise so that you can see which the critical factors are.

• Set quantified objectives and specific action plans to tackle identified

weaknesses.

Situation analysis – a situation analysis involves detailed examinations of (1)

competitive brands in the product category in which the marcom planner’s brand

competes, (2) the customers that purchase brands within the category, and (3)

environmental factors (the economy, social-cultural developments, pressing

regulatory issues, etc.) relevant to the category and to the brand’s growth

prospects within the category.

In conducting a situation analysis, you would want to know everything possible

about competitive brands and their marcom programmes and marketing

practices. For example, how are competitive brands priced? What advertising

messages are they using? How are they scheduling media? How are the brands

packaged? What forms of sales promotions are they using? How extensively are

they using the Internet as a marcom medium? In addition to providing answers to

these and other pertinent questions, it would be important to determine each

brand’s market share and growth trends and to identify their competitive

advantages and disadvantages. With growing global competition, it is

increasingly important that the situation analysis investigates competitive

alternatives other than just domestic brands.


A study of customers would include their reasons for buying or not buying in the

category; the size of the customer base for your brand and competitive brands;

characteristics of the customer base for your brand and competitive brands (in

terms of demographics, psychographics, etc.); changes, if any, in customer

behaviour, and anticipated developments that might affect customer behaviour

over the foreseeable future.

An environmental analysis would inspect all factors external to a company and its

brands that influence the product category and its constituent brands. This would

include a study of economic trends; investigation of social-cultural developments

pertinent to the category; and, perhaps, an analysis of regulatory matters that

impinge on the brand’s success potential.

SWOT analysis – a SWOT analysis is a natural extension of the situation

analysis and involves studying the opportunities and threats facing the product

category and your brand, along with an objective analysis of your brand’s

strengths and weaknesses compared to competitive brands.

7.2.2 Marcom strategy: The fundamental decisions

As detailed in learning unit 1, a brand manager must make four

fundamental marcom decisions: targeting, positioning, objective setting, and

budgeting. These decisions provide the strategic foundation for the brand and

guide subsequent decisions in implementing the marcom programme.

Targeting

The initial fundamental decision is the choice of primary, and perhaps

secondary, groups of customers to whom the brand will appeal. The

targeting decision provides a clear-cut picture of the type of customer to

whom the brand is most likely to appeal and who is most likely to purchase


it. As described in learning unit 2, targeting can be based on any

combination of buyographic, demographic, geographic, and psychographic

characteristics. Research is generally needed to identify appropriate bases

for targeting a brand’s marcom efforts. Based on this analysis, the brand

manager ultimately should estimate the number of consumers that

comprises the target market. It is important not to be too general in

targeting (e.g. claiming that all women represent the target market rather

than just those women who fall in a restricted age group and a particular

socio-economic stratum). At the same time, it is critical that the targeting

decision not be exclusionary. That is, do not eliminate any particular

group(s) from your market specification unless you have compelling

reasons for doing so.

It is important to note that the size of your target market as specified here

will undoubtedly be smaller than the size of the market you will specify in

your subsequent media analysis. This is because market-size

specification for media purposes is typically very broad as defined by, for

example, ‘all adults aged 18-49’. A well-defined target market (including

psychographic and demographic features) is critical for message-

development purposes, whereas the market specification for media-

analysis purposes is more encompassing and, thus, larger. Please realise

that this seeming conflict is because (1) media vehicle data are typically

restricted to demographics and, (2) by specifying large target markets, the

‘numbers’ (GRPs, reach, etc.) are more impressive. In sum, in this

learning unit you should keep in mind the distinction between the target

market for message-development purposes and that for media- and

vehicle-selection determination. For further details, see learning unit 2 or

Chapter 4 of Shimp (2010).


Positioning

Having identified the target market, a brand manager now can specify how

a brand is to be positioned. In other words, in this learning unit of the

marcom plan, the challenge is to create a specific meaning for the brand

vis-à-vis the positioning strategies used by competitive brands. A

positioning strategy should be based on a brand’s competitive advantage

with respect to specific product attributes or benefits. Because brand

sometimes has no functional or utilitarian superiority over competitive

offerings, oftentimes it is necessary to position brands in terms of

psychological imagery. For further details, see learning unit 2 or Chapter 5

of Shimp (2010).

Objective setting

A marcom programme is created for a specified time period which may be

as short as a 13-week business quarter or, more typically, for an entire

year. As such, a marcom programme can be conceptualised as a

campaign or, in other words, as an integrated set of marketing

communication activities that has planned starting and ending dates. The

campaign for a brand is undertaken to achieve a particular objective or set

of interrelated objectives. Hence, a brand manager must initiate a

campaign by identifying what objective(s) the marcom programme is

intended to accomplish during the campaign period. As covered in

learning unit 2, these objectives can be conceptualised in terms of

achieving different levels in a hierarchy of effects. The specific objective(s)

to be established for the marcom campaign depend on a research-based

determination of where a brand is presently situated on the hierarchy and

where it can realistically be expected to ‘climb’ during the campaign

period and in light of the amount of investment, or budget, which is to be

spent on the brand. For further details, see learning unit 2 or Chapter 6 of

Shimp (2010).


Budgeting

The budgeting and objective-setting decisions are inextricably linked, as

described in learning unit 2. The budget amount imposes a constraint on

how lofty the marcom accomplishments for a brand might be during the

campaign. At the same time, more ambitious objectives require larger

budgets. It thus follows that budgeting and objective-setting are entirely

interactive decisions. Because companies often set budgets using

relatively straightforward procedures (e.g. investing a set percentage of

anticipated revenue in the marcom programme), the budgeting decision

can be a rather simple determination or, when more analytical budgeting

processes are employed (e.g. the objective-and-task method), may require

considerable research and deliberation. For further details, see learning

unit 2 or Chapter 6 of Shimp (2010).

The budgeting decision should be based on considerations such as

product category revenue prospects, competitive spending levels,

SOV/SOM considerations, financial practicalities, etc. Budget formulation

should consider the interplay between marketing imperatives and financial

obligations. In setting a budget, a brand manager can be very aggressive,

very conservative, or somewhere in-between. Whatever strategy is

chosen, one must fully rationalise the chosen budget level and realise that

the overall marcom budget is a critical determination inasmuch as all other

decisions will be influenced by the amount of available budget resources.

7.2.3 Marcom implementation

Moving from strategy formulation – that is, the previous set of

targeting, positioning, objective-setting, and budgeting determinations – the

challenge now is one of moving from the level of strategy to implementation, or

tactic specification. Implementation consists of the following decisions:

determining the mixture of marcom tools, creating messages, selecting media


and vehicles, and determining what must be done to maintain momentum behind

the marcom programme. (Parenthetically, for new brands, the brand

management team along with the marketing department or product category

group must first determine an appropriate brand name and, for many products,

develop appropriate packaging. See learning unit 2 for details.)

Determining the mixture of marcom tools

Advertising, sales promotions, marketing-oriented public relations, and

event and cause sponsorships, are the major marcom tools that can be

mixed to achieve campaign objectives. Determining an appropriate

mixture is a complex decision that requires a combination of art and

science. The mixture decision is influenced by budgetary resources,

competitive activity, and the type of objectives that must be achieved

during the campaign and, frankly, managerial faith in what works best.

Whatever the determining factors, the mixture of marcom tools should be

continually evaluated to best accommodate current market-place

dynamics. For further details, see learning unit 3 or Chapters 7-9 of Shimp

(2010).

Creating messages

The positioning strategy previously created for the brand must be

implemented in the form of a specific message execution for each marcom

tool. For example, a brand of bottled water may be positioned in terms of

a brand imagery that suggests that users of this brand are sexy. To

implement this positioning, a humorous message might be designed to

convey this notion. Alternatively, a subtle emotional message could be

devised, showing users of your brand consuming the product and while

meeting a romantic interest. As covered in Shimp (2010: Chapters 10 and

11) brand managers have a variety of message execution formats at their

disposal. Importantly, and in line with the IMC imperatives specified in

Chapter 1, it is critical that all marcom tools “speak with a single voice” by


employing the same consistent message in a seamless fashion. For

further details, see learning unit 2 or Chapters 10-11 of Shimp (2010).

Selecting media and vehicles

For each marcom tool (advertising, sales promotions, etc.), brand

managers must select the general media for delivering messages and pick

specific vehicles within each medium for reaching the target market. For

example, with advertising as the marcom tool, managers have available

media categories such as online, television, radio, newspapers, and

magazines. With the television medium, vehicle options include the

numerous programmes that are broadcast on network and cable TV. In

the area of sales promotions, media and vehicles can be thought of as the

types of promotions selected to accomplish specific objectives during the

campaign. Coupons, rebate programmes, sweepstakes, contexts, games,

and premiums are just some of the available options. As always, media

and vehicles must be selected that are best capable of reaching the target

market and delivering the brand positioning message in view of available

budgetary resources.

Maintaining momentum

Marketing communicators sometimes invest heavily in advertising and

promoting a brand over a brief time period. During this period impressive

gains in brand awareness and market share are often realised. However,

when the programme is suspended, the gains often erode rapidly and

return to baseline levels. It is critical, therefore, that brand managers

determine, in advance, how momentum is to be maintained. This often

means investing in cheaper media and vehicles over an extended period

rather than blowing out the budget in a short span of time. The availability

of Internet advertising is an extremely valuable medium for maintaining

momentum. Regular event sponsorship also serves well to maintain

momentum.


7.2.4 Marcom programme evaluation

Given the objectives established, formal efforts are needed to track a brand’s

performance against these objectives, determine whether the objectives are

being accomplished and, if not, what changes in the marcom programme are

needed in order to accomplish the specified objectives within budget constraint.

Chapters 12 and 14 in Shimp (2010) provide in-depth coverage of measurement

methods that are used for assessing advertising effectiveness. Methods for

assessing sales promotion and event marketing effectiveness are presented in

Chapters 19 and 20 in Shimp (2010).

The final set of self-assessment questions are once again examples that can be

used as a gauge of your understanding of the last study unit in this module. Also

refer to the discussion questions found at the end of the relevant chapters in

Shimp (2010).


Select a product or brand of your choice. Formulate a detailed marcom plan for

this product/brand.


Bibliography

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Harker, D. 1998. “Achieving acceptable advertising: An analysis of advertising

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Koekemoer, L. (Ed.) 2004. Marketing Communications. Lansdowne: Juta

Academic.

Kotler, P., and Armstrong, G. 2005. Principles of Marketing. 7th edn. New Jersey:

Pearson/Prentice Hall.

Lee, C. W. 2002. “Sales promotion as strategic communication: The case of

Singapore”. Journal of Product and Brand Management 11(2).

Proctor, T., and Kitchen, P. 2002. “Communication in post-modern integrated

marketing”. Corporate Communications: An International Journal 7(3). pp. 144-

154.

Roy, D.P., and Cornwell, B. 2003. “Brand equity’s influence on responses to

event sponsorship”. Journal of Product and Brand Management 12(6).

Shimp, T.A. 1997. Advertising, Promotion and Supplemental Aspects of

Integrated Marketing Communications. Florida: Dryden Press.

Watjatrakuk, B., and Drennan, J. 2005. “Factors affecting e-mail marketing

sourcing decisions: A transaction cost perspective”. Journal of Marketing

Management 21(7-8). pp. 701-724.

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