Advertising and Merchandising

Definition of 'Advertising'
• Advertising is a means of communication with the users
of a product or service. Advertisements are messages paid
for by those who send them and are intended to inform or
influence people who receive them, as defined by the
Advertising Association of the UK.
• The activity or profession of producing information for
promoting the sale of commercial products or services.
Business dictionary
• "Advertising is the nonpersonal communication of
information usually paid for and usually persuasive in
nature about products, services or ideas by identified
sponsors through the various media."(Bovee, 1992, p. 7)
• Advertising is a paid, mass-mediated attempt to persuade.
Advertising Defined
• First, advertising is paid communication by a
company or organization that wants its information
disseminated.
• Second, advertising is mass mediated. This means it
is delivered through a communication medium
designed to reach more than one person, typically a
large number or mass of people.
• All advertising includes an attempt to persuade. To
put it bluntly, ads are communications designed to get
someone to do something. Even an advertisement
with a stated objective of being purely informational
still has persuasion in his core.
Advertising strategy
• Advertising is one element of the marketing mix: price (of the
brand), product (including service, packaging, brand-name and
design), place (distribution) and promotion (including
advertising, public relations, personal selling, gifts,
exhibitions, conferences and sales promotion). It works in
conjunction with others such as pricing policy, distribution,
and changes to the product or service, such as packaging. All
these elements work together to convey the brand’s values.
Advertising also encompasses a range of promotional
activities, from paid-for mass-media promotion to public
relations, sponsorship and sales promotion. There are many
reasons why marketers use advertising, but three fundamental
ones: firstly to improve long-term profits generally by
increasing sales; secondly to improve the image of the firm or
organisation; and thirdly to try to affect behaviour.
ATL and BTL technologies
• Above the line: 'brand building' based
advertising solely
• Below the line: direct, response driven
marketing solely
Above- or Below-the-Line? A Definition
• “Above-the-line” refers to those traditional marketing
channels that strive to reach a mass audience with
messages that reinforce a brand, communicate
general product information or inspire an emotional
response.
• “Below-the-line” initiatives, by comparison, act like
traditional direct marketing efforts – they aspire to
establish targeted relationships between marketers
and individual consumers, and offer comparable ease
in measurability.
It used to be that the following kinds of media
would be considered ATL marketing activity:

• Television
• Radio
• Newspaper/magazine ads

And the following kinds of marketing would be

considered BTL marketing activity:
• Door to door sales
• Telemarketing
• Direct mail
• Exhibitions
ATL, TTL, BTL
 Elements of successful below-the-line
marketing efforts:

• Perception – The extent to which a consumer feels that

he or she is engaged as an active participant in a
marketing dialogue, rather than a target of an aggressive
direct sales or branding effort
• Interaction – The extent to which consumers are
empowered to respond to marketing communications via
preferred channels that are both convenient and
accessible
• Measurability – The extent to which a marketer can
track the results of an individual initiative, determine
commensurate return-on-investment and adjust future
campaigns to provide for an enhanced chance of success
ATL and BTL
Above-the-Line Media…
Are tailored to reach a mass audience
Establish brand identity or reinforce
emotional concepts surrounding a
product or brand
May or may not drive customer
response
Are difficult – if not impossible – to
measure with any accuracy
Cater to the mass market
Below-the-Line Media…
Are targeted to individual consumers,
based on their expressed needs and
preferences
Issue a “call-to-action,” inspiring
specific customer activity or tailored
messages about a product or brand
Drive individual responses
Are highly measurable, allowing
marketers insight into their return-on-
investment, as well as those tactics
that are (and are not) working
Establish one-to-one relationships
between consumers and marketers
What is a Merchandising

• Merchandising is a marketing strategy to promote and increase

the sale of goods. Merchandising has a significant impact on
whether or not a customer chooses specific items by
influencing their emotions about the items displayed.
• According to American Marketing Association, merchandising
encompasses "planning involved in marketing the right
merchandise or service at the right place, at the right time, in
the right quantities, and at the right price.“
• The activity of promoting the sale of goods at retail.
Indicators of Merchandising
Sound Indicators

• Songs
• Background music
• Audio ads
• Verbal messages
Visual indicators
• Corporate colors
• Price tags
• Promotional materials
• Store performance
• Product placement
• External design
Color Blocking
Price tags
Point of sales
 Store performance
• Scales,
• Schemes,
• Arrows/Indexes, etc.
Product placement
Sensual indicators
• Enlightment
• Floor
• Aromamerchandising
Floor
Enlightment
Thank you