[MUSIC] Hello and welcome from wherever you are in the world. Now, today, we'll talk about the final element of the marketing mix we have not discussed. The final P is promotion, promotion. So what will we do today? We'll talk about the communications model which is actually the basis for marketing communication. It's a framework. Once you understand it, you'll understand how marketing communication works. We'll also talk about different types of marketing communications. And then, we'll talk about developing a communications plan. Now, where does promotion fade in? Well, this is the last of our lecture that deals with the entire marketing strategy process. We have one of the lecture coming up that talks about consumer behavior. But with regards to the marketing strategy process, this is the last one. So let's revisit this framework and see where promotion fits. Promotion is part of the value creation process. Two promotion efforts marked as a route to establishing the consumer's mind a perception of value for the product. One major element of promotion efforts of course is advertising. Let's look at advertising expenditure in the US and around the world. Now, advertising spending in the US it continues to outpay spending in other countries. As global advertising markets surpassed half a trillion US dollars in 2014. The United States remained unchallenged both in terms of total and per capita ads spend. According to Strategy Analytics, advertising expenditure reached $181 billion. Billion with a B, dollars [LAUGH], in the United States last year. Almost eclipsing the combined ad spend of the remaining top ten ad markets. In terms of per capita ad spend the US lead isn't quite as impressive but it's still significant with an average ad spend of $567 per person per capita. The United States, thus, edges out Australia and Norway with 486 and $472 per person, respectively. China, which recently surpassed Japan to become the second largest ad market overall has by far the lowest cap to spending of the top ten markets and that's not surprise given their huge population. So this shows you how important advertising is as a component of promotion and promotion spending. Now, this expanding Gen Advertising is really expected increase in the coming years In the US, for instance, spending is estimated to hit $220 billion. This includes digital, print, outdoor, radio, and television. Think of it, $220 billion, that's larger than the GDP of some economies. [SOUND]