Elective fundamentals of advertising

fundamentals of advertisingUnit 714 min read

Marketing Communication & Advertising Strategies: Models, Channels & Managerial Roles

Unit 7 of Fundamentals of Advertising explores how businesses integrate advertising into broader marketing communication, covering the promotion mix (AIDA model, push/pull strategies), advertising vs. PR vs. sales promotion, advertising manager’s functions, and real-world applications in Nepali brands like eSewa, Daraz

TAKEAWAYS:

  • Marketing communication combines advertising, PR, sales promotion, and direct marketing to deliver a cohesive brand message (e.g., Daraz’s "Shop Smart, Save Big" campaign).
  • Push vs. pull strategies: Push (trade promotions to retailers) works for NTC’s SIM card deals, while pull (consumer ads) drives Khalti’s digital wallet adoption.
  • Advertising manager’s 5 key roles: Strategy planning, agency coordination, budget control, creative oversight, and performance analysis (critical for TU exam questions).
  • AIDA model (Attention-Interest-Desire-Action) is the backbone of ad message design—used in Pathao’s "Ride Now, Pay Later" ads.
  • Publicity ≠ advertising: Publicity is free/unpaid (e.g., Nepal Tourism Board’s viral "Visit Nepal 2020"), while advertising is paid (e.g., Thamel’s billboard ads).
  • Budgeting methods: Percentage-of-sales, competitive parity, and objective-and-task are tested in exams—Nepal’s banks use objective-and-task for loan product launches.

1. Marketing Communication: The Big Picture

Marketing communication is the process of using various tools to inform, persuade, or remind target audiences about a product/service. It’s not just ads—it’s a mix of controlled (advertising, sales promo) and uncontrolled (PR, word-of-mouth) tools.

The Promotion Mix (4Ps of Communication)

Every brand uses a combination of these 5 tools to reach customers. The mix depends on the product type, budget, and target audience.

Paid, mass media (TV, Digital, Print)AdvertisingShort-term incentives (Discounts, Contests)Sales PromotionFree, credibility-building (Press releases, Sponsorships)Public RelationsOne-to-one (Email, SMS, Telemarketing)Direct MarketingFace-to-face (Sales teams, Trade shows)Personal SellingPromotion Mix (5 Tools)
Hierarchical breakdown of the 5 promotion mix tools with real-world examples

Real-world example:

  • eSewa uses direct marketing (SMS/email reminders) + advertising (Facebook/YouTube ads) to push digital payments.
  • Daraz relies on sales promotions (cashback offers) + PR (influencer collaborations) to build trust.

2. Advertising vs. Other Communication Tools

Students often confuse advertising, publicity, and sales promotion. Here’s how they differ:

Tool Definition Paid? Control Example (Nepal) Exam Tip
Advertising Paid, non-personal message via media Yes High Ncell’s "Unlimited Data" TV ads Always paid and identified.
Publicity Free, third-party endorsement No Low Nepal Tourism Board’s viral posts No payment, but builds credibility.
Sales Promotion Short-term incentives to buy now Sometimes Medium Khalti’s "Refer & Earn" offers Time-bound (e.g., "Ends soon!").
Direct Marketing One-to-one, measurable communication Yes High Pathao’s personalized ride offers Trackable responses (e.g., clicks).

Why it matters:

  • Advertising is controllable (you choose the message, media, and timing).
  • Publicity is uncontrollable (e.g., a news report about a product recall).
  • Exam question alert: Always explain why a brand would choose one over the other. For example:

    "Nepal’s banks use advertising for loan products (high control) but rely on publicity for CSR initiatives (trust-building)."


3. Advertising Strategies: Push vs. Pull

Businesses use two broad strategies to move products through the channel:

A. Push Strategy

  • Goal: Push the product through the channel (manufacturer → wholesaler → retailer → consumer).
  • Tools: Trade promotions, discounts, sales force incentives.
  • Best for: B2B products (e.g., industrial machinery) or low-involvement goods (e.g., fast-moving consumer goods like Frooti drinks).
  • Example in Nepal:
    • NTC offers retailer incentives (e.g., free SIMs for bulk orders) to push prepaid cards.
    • Daraz sellers use push strategies by offering discounts to retailers to stock their products.

B. Pull Strategy

  • Goal: Create demand in consumers so they pull the product through the channel.
  • Tools: Mass advertising, consumer promotions, loyalty programs.
  • Best for: Branded consumer goods (e.g., Thums Up, Maggi, or Khalti).
  • Example in Nepal:
    • Khalti uses pull strategies with TV ads, influencer marketing, and cashback offers to make users demand digital payments from merchants.
    • Pathao runs "Ride Now, Pay Later" ads to pull riders onto their platform.

Worked Example: Ncell’s Strategy Ncell uses a mixed push-pull approach:

  1. Push: Offers retailer commissions to sell Ncell SIMs (push).
  2. Pull: Runs "Unlimited Data" ads targeting youth (pull). Exam tip: Always link strategies to real brands in Nepal.

4. The AIDA Model: Crafting Effective Ads

The AIDA model (Attention-Interest-Desire-Action) is the framework for designing ad messages. It’s tested in exams—know the stages and examples.

flowchart TD
    A["AIDA Model"] --> B["Attention"]
    A --> C["Interest"]
    A --> D["Desire"]
    A --> E["Action"]
    B -->|"Grab attention"| F["Bold headlines, visuals"]
    C -->|"Spark curiosity"| G["Benefits, not features"]
    D -->|"Create urgency"| H["Scarcity, social proof"]
    E -->|"Drive purchase"| I["Clear CTA: 'Buy Now', 'Limited Offer'"]

Real-world trace: Daraz’s "Big Billion Days" Ad

  1. Attention: "Biggest Sale of the Year!" (bold text + flashing discounts).
  2. Interest: "Up to 80% off on 10,000+ brands" (specificity).
  3. Desire: "Only 2 days left!" (urgency) + "Trusted by 10M Nepalis" (social proof).
  4. Action: "Shop Now" button + "Free shipping on orders above Rs. 1,000".

Exam tip: Always map a real ad to AIDA in your answers.


5. Cognitive vs. Conative Message Strategies

Ads use psychological triggers to influence buyers. Two key categories:

016.2532.548.7565Cognitive (Thinking)35Conative (Doing)65
Typical ad message strategy split (based on global benchmarks)

A. Cognitive Strategies (Thinking)

  • Goal: Appeal to rational, logical thinking.
  • Techniques:
    • Factual appeals (e.g., "Nepal’s #1 bank for low-interest loans").
    • Comparative ads (e.g., "Khalti vs. eSewa: Faster transactions").
    • Problem-solution (e.g., "Tired of traffic? Use Pathao’s bike taxis").
  • Example:
    • Nepal Investment Bank’s ads focus on ROI (Return on Investment) for loans.

B. Conative Strategies (Doing)

  • Goal: Motivate immediate action.
  • Techniques:
    • Scarcity ("Only 50 units left!").
    • Urgency ("24-hour flash sale!").
    • Incentives ("Buy 1, Get 1 Free").
  • Example:
    • Daraz’s "Lightning Deals" use countdown timers to trigger FOMO (Fear of Missing Out).

Comparison Table:

Strategy Appeal Type Example (Nepal) When to Use
Cognitive Rational Ncell’s "Best Network Coverage" ad High-involvement purchases (e.g., loans, phones)
Conative Emotional/Action Khalti’s "Pay in 3 seconds" ad Impulse buys (e.g., groceries, fast food)

Exam tip: Always give a Nepali example when explaining strategies.


6. Functions of an Advertising Manager

The advertising manager is the strategic leader who ensures ads align with business goals. Their 5 key functions (often asked in exams):

  1. Strategy Development

    • Aligns ads with brand positioning and marketing objectives.
    • Example: Nepal’s banks use ads to position themselves as "trustworthy" (e.g., NMB Bank’s "Bank of the Nation").
  2. Media Planning & Buying

    • Decides where and when to place ads (TV, digital, OOH).
    • Example: eSewa spends heavily on Facebook/Instagram for digital payments.
  3. Budget Management

    • Allocates funds using methods like:
      • Percentage-of-sales (e.g., 5% of revenue).
      • Objective-and-task (e.g., "Spend Rs. 5M to increase Khalti users by 20%").
  4. Creative Oversight

    • Works with agencies to ensure consistent branding.
    • Example: Thamel’s street ads must match brand guidelines (colors, slogans).
  5. Performance Analysis

    • Measures ROI using metrics like:
      • Click-through rates (CTR) (digital ads).
      • Sales lift (e.g., "Did Daraz’s ad boost sales by 15%?").

Mermaid Diagram: Advertising Manager’s Workflow

Goal DefinitionDefine campaignobjectives (e.g., branStrategy DevelopmentChoose push/pull,AIDA, cognitive/conatiMedia PlanningSelect channels(TV, digital, print) wBudget AllocationAllocate % tocreative, media, and pCreative BriefDevelop adcopy/visuals aligned wExecutionLaunch campaign(e.g., Daraz’s digitalMonitoringTrack KPIs (CTR,sales lift) and adjustFeedback LoopRefine strategybased on performance d
Advertising manager’s workflow timeline with key decision points

Exam tip: Always link functions to a real Nepali brand (e.g., "The advertising manager at Ncell would focus on digital media to target youth").


7. Types of Advertising Agencies

Ad agencies help brands create and place ads. Here are 5 common types (often asked in exams):

Type Specialization Example (Nepal/Global) When to Use
Full-Service Agency End-to-end (strategy, creative, media) McCann Nepal, Ogilvy Big brands (e.g., Nepal Airlines)
Creative Boutiques Focus on ad design & copywriting DDB Mudra, Grey Nepal Unique campaigns (e.g., Thamel’s street art ads)
Media Buying Agencies Specializes in purchasing ad space MediaMonks, Carat Brands needing cost-efficient media
Digital Agencies SEO, social media, programmatic ads AKQA, R/GA eSewa, Daraz (digital-first brands)
In-House Agencies Brands’ own ad teams Ncell’s internal creative team Long-term consistency (e.g., Nepal Tourism Board)

Exam tip: Always explain why a brand would choose one type over another.


8. Factors Affecting Advertising Budget

The advertising budget is not arbitrary—it depends on:

Factor Explanation Example (Nepal)
Marketing Objectives Aggressive growth? (Higher budget) vs. maintenance? (Lower budget) Khalti spends heavily to compete with eSewa.
Stage in Product Life Cycle New products need higher budgets for awareness. Nepal’s electric scooter brands (e.g., Hero Electric) run heavy ads at launch.
Competition More competitors = higher spend to stand out. Ncell vs. NTC in the telecom war.
Target Audience Broad reach (TV) = expensive; niche (digital) = cost-effective. Daraz uses Facebook ads for cost efficiency.
Nature of Product High-involvement (e.g., loans) needs persuasive ads; low-involvement (e.g., snacks) needs reminder ads. Nepal Investment Bank vs. Frooti.

Budgeting Methods (Exam Focus):

  1. Percentage-of-Sales: Simple but reactive (e.g., "Spend 5% of last year’s revenue").
  2. Competitive Parity: Match competitors’ spend (e.g., "If Ncell spends Rs. 200M, we spend Rs. 180M").
  3. Objective-and-Task: Most professional—set goals first, then budget (e.g., "Spend Rs. 10M to increase Khalti users by 15%").

In the Real World

  1. eSewa’s Push-Pull Strategy

    • Push: Offers retailer incentives (e.g., cashback for merchants using eSewa).
    • Pull: Runs "Pay in 3 Clicks" ads to make users demand eSewa over cash.
    • AIDA in Action: "Did you know? 80% of Nepalis now pay digitally!" (Interest → Desire).
  2. Daraz’s AIDA + Conative Triggers

    • Attention: "Big Billion Days – Up to 80% Off!" (bold visuals).
    • Desire: "Only 12 hours left!" (scarcity).
    • Action: "Shop Now" button + "Free shipping on Rs. 1,000+" (incentive).
    • Result: 300% increase in sales during the event.
  3. Ncell’s Cognitive vs. Conative Mix

    • Cognitive: "Best 4G Network in Nepal" (factual claim).
    • Conative: "Unlimited Data – Just Rs. 999!" (urgency + incentive).
    • Why it works: Appeals to both rational (network quality) and emotional (affordability) buyers.

Exam Tip

  1. Always use Nepali examples—examiners love real-world applications (e.g., eSewa, Daraz, Ncell).
  2. For AIDA questions, break down a real ad (e.g., "How does Daraz’s ‘Big Billion Days’ ad follow AIDA?").
  3. Push vs. pull: Push = trade promotions (B2B), Pull = consumer ads (B2C).
  4. Advertising manager’s role: Strategy + media + budget + creative + analysis—cover all 5 in answers.
  5. Budgeting methods: Objective-and-task is the gold standard—always explain how it works with an example.

Visual Summary

mindmap
  root((Marketing Communication & Advertising Strategies))
    AIDA Model
      Attention
      Interest
      Desire
      Action
    Push vs. Pull
      Push["Trade Promos (NTC, Daraz sellers)"]
      Pull["Consumer Ads (Khalti, Pathao)"]
    Advertising Manager
      Strategy
      Media Planning
      Budgeting
      Creative Oversight
      Performance Analysis
    Agencies
      Full-Service
      Digital
      Media Buying
    Budget Factors
      Objectives
      Competition
      Product Life Cycle
      Target Audience

Based on the TU BBS syllabus for fundamentals of advertising, unit 7.

Discussion

Loading…