Marketing communication: principles and practice

ADVERTISING KNOWLEDGE
The process of creating value from intangible assets is termed knowledge
management. Of course, knowledge is not the only intangible asset of a
market mechanism. This is a formalized approach to the creation, acquisition,
combination, deployment, and distribution of knowledge. Today, this
‘building’ work can be facilitated by intranet and extranet connections.
In advertising practice, the ability to bring together apparently discon-
nected ideas is what is often referred to as creative input. Research data,
problem definitions, and this associative ability combine to create communi-
cation solutions to the marketer’s problems. 
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Codified knowledge can be classified and stored in databases for future
retrieval. A book is an example of codification of knowledge. Market
segmentation and benchmarking data are documented and can be drawn
upon by several people in project work. Tacit knowledge is available to a
person, and those with whom they interact, in working, but may not be
communicable through speech and writing. It is ‘out of awareness’, but
nonetheless in dialogue with others, that the holder of such knowledge can
make a significant contribution to design, problem-solving, and other creative
tasks. Teamworking is a way of deploying tacit knowledge.
Advertising and design agencies are knowledge brokers. The problem is
identified and a match (similarities and differences) is sought with previously
solved problems. Solutions are adapted and adopted accordingly. Skills are
essential, but marketers need knowledge and experience in combination.
WHAT CAN ADVERTISING ACCOMPLISH?
Advertising can contribute to profits by: encouraging people to buy a
particular brand and thus to pay higher prices; increasing consumption;
increasing opportunity to purchase by increasing distribution; improving
targeting (reducing costs); and obstructing market entry by competitors (East,
1997).
Five basic desirable effects from advertising effort can be thought of as
communication objectives (these will be discussed more fully in chapter
fifteen):
1 Arouse need by forging connections between the product category (e.g.
instant coffee or car) and consumer/buyer values.
2 Contribute to brand awareness (e.g. Maxwell House instant coffee).
3 Enhance the liking of the brand so that it is preferred over other brands.
4 Encourage people to ‘instruct themselves to buy’.
5 Facilitate purchase by answering such questions as ‘how much will it cost?’,
‘where can I get one?’, and ‘how can I pay?’.