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Introduction to AdvertisingIntroduction to Advertising

Chapter 1

Part One:Part One:FoundationsFoundations

• Part 1 provides the ‘bigpicture of advertising’

• Examines advertisingand marketing and theirplace in society

Chapter OutlineChapter Outline

I. Chapter Key PointsII. What is Advertising?III. Roles and Functions of AdvertisingIV. The Key PlayersV. Types of AdvertisingVI. What Makes an Ad Effective?VII. The Evolution of AdvertisingVIII.The Current Advertising Scene

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Key PointsKey Points• Define advertising and explain its key

components• Discuss the roles and functions of advertising

within society and business• Identify the key players and their roles in

creating advertising• Explain the different types of advertising• Summarize the characteristics of effective

advertising and explain why it is always goaldirected

• Analyze the changes affecting the advertisingindustry

The Mandate for EffectivenessThe Mandate for Effectiveness

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Defining Modern AdvertisingDefining Modern Advertising

• Paid persuasivecommunication

• Uses nonpersonalmass media toreach broadaudiences

• Connects anidentified sponsorwith a targetaudience

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Five Basic ComponentsFive Basic Components

1. Paid communication2. Sponsor is identified3. Tries to persuade or influence4. Reaches large audience5. Conveyed through impersonal mass

media

Key Concepts of AdvertisingKey Concepts of Advertising

Figure 1.1

StrategyStrategy

• Advertisers direct ads toidentified audiences

• Advertisers createmessages that speak tothe audience’s concerns

• Advertisers run ads inthe most effective mediato reach the audience

• The logic and planning behind the ad that give itdirection and focus

• Advertisers develop ads to meet objectives

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Succeeding Through StrategySucceeding Through Strategy

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Creative IdeaCreative Idea

• The central idea thatgrabs the consumer’sattention

• Creativity drives theentire field ofadvertising

ExecutionExecution

• Effective ads adhereto the highestproduction values inthe industry

• Clients demand thebest production thebudget allows

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MediaMedia• Communication channels

that reach a broadaudience

• How to deliver themessage is just asimportant as coming upwith the creative idea ofthe message

The Marketing RoleThe Marketing Role

TargetMarket

Brand

MarketingMix

Product Category

Marketing

Video Snippet

Dunkin’ Donuts explainsits marketing philosophy

The Communication RoleThe Communication Role

Nike campaigns have helped increasesales by 300% during the last decade

Persuades

Pepsi-Cola has been advertisingcontinuously over the last 50 years

Reminds and reinforces

MTN Cellular’s ads explain changes inits technology

Explains importantchanges

Windows 98 was simultaneouslyintroduced in multiple world markets

Introduces products

A commercial on the Super Bowlreaches 150 million consumers

Can reach a massaudience

ExamplesStrengthsStrengths of Advertising as a Marketing Technique

Table 1.1

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The Economic RoleThe Economic Role

Advertising is a means to objectively provideprice-value information, creating a morerational economy

Advertising decreases the likelihood that aconsumer will switch to an alternate product

regardless of price

The Societal RoleThe Societal RoleInforms consumers about innovations and issues

Mirrors fashion and design trendsTeaches consumers about new products

Helps shape consumer self-imagePerpetuates self-expression

The Functions of AdvertisingThe Functions of Advertising

• Builds awareness of products andbrands

• Creates a brand image• Provides product and brand information• Persuades people• Provides incentives to take action• Provides brand reminders• Reinforces past purchases and brand

experiences

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Key Players: AdvertiserKey Players: Advertiser• Uses advertising to

send out a messageabout its products

• Initiates effort byidentifying a problemthat advertising cansolve

• Approves audience,plan and budget

• Hires the agency

Key Players: AdvertiserKey Players: Advertiser

11. Direct-response companies12. Home-furnishings,

appliances, supplies13. Insurance and real estate14. Computers, software,

Internet15. Government, politics, and

organizations16. Apparel17. Beer, wine, and liquor18. Audio and video equipment

and supplies19. Sporting goods, toys, and

games20. Entertainment and events

1. Automotive2. Retail3. Movies, media, and

advertising4. Food, beverages, and

confectionery5. Medicines and proprietary

remedies6. Financial services7. Telecommunications8. Toiletries, cosmetics, and

personal care9. Airline travel, hotels, and

resorts10. Restaurants

Biggest U.S. Advertisers in Terms of Categories

Table 1.2

Key Players:Key Players:AgencyAgency

• Has strategic andcreative expertise,media knowledge,workforce talentand negotiatingabilities

Figure 1.2

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Key Players: MediaKey Players: Media• Channels of communication that carry the message to the

audience• Are also companies or huge conglomerates• Cost effective because the costs are spread over a large number of

people

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Key Players: SupplierKey Players: Supplier• Assist advertisers, agencies and the media in creating

and placing the ads• Vendor services are often cheaper than those in-house

Key Players: Target AudienceKey Players: Target Audience

• The desired audience for the advertisingmessage

• Data-gathering technology improvesaccuracy of information about customers

• Advertisers must recognize the varioustarget audiences they are talking to andknow as much about them as possible

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Types of AdvertisingTypes of Advertising• Brand advertising• Retail or Local advertising• Direct-Response

advertising• Business-to-Business

advertising• Institutional advertising• Nonprofit advertising• Public Service advertising

What Makes an Ad Effective?What Makes an Ad Effective?

1. If it creates animpression for aproduct or brand

2. If it influencespeople to respond

3. If it separates theproduct or brandfrom thecompetition

Pepsi: ItPepsi: It’’s the Cola (and its the Cola (and it’’s effective)s effective)

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Award ShowsAward Shows

• Award Shows• EFFIES, AME, IPA

– Judge effectiveness

• CLIOS, One Show,Cannes– Judge creative ideas

• Not all award-winingads are effective

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The Evolution of AdvertisingThe Evolution of Advertising

Figure 1.3

The Evolution of AdvertisingThe Evolution of Advertising

Figure 1.3 continued

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The Evolution of AdvertisingThe Evolution of Advertising

Figure 1.3 concluded

The Current Advertising Scene:The Current Advertising Scene:Expanded ViewExpanded View • Electronic

media arechangingthe medialandscape

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The Current Advertising Scene:The Current Advertising Scene:Integrated Marketing CommunicationIntegrated Marketing Communication

• Unifying allmarketingcommunication toolsso they send aconsistent, persuasivemessage

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The Current Advertising Scene:The Current Advertising Scene:GlobalizationGlobalization • Advertisers are

moving intoglobal markets

• Agencies areforming hugemultinationaloperations

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