Advertising DefinedAdvertising Defined

Advertising is the non-personal communication of information, usually

paid for and usually persuasive in nature, about products (goods and

services), or ideas by identified sponsors through the various media.

— AMA

Classification of AdvertisingClassification of Advertising

GeographicGeographicAreaArea MediumMedium PurposePurpose

• Advertising can be classified by target audience, geographic area, medium, and purpose.

TargetTargetAudienceAudience

Classification of AdvertisingClassification of Advertising

TargetTargetAudienceAudience

GeographicGeographicAreaArea MediumMedium PurposePurpose

• Consumer advertising: Aimed at people who buy the product for their own or someone else’s personal use.

• Business advertising: Aimed at people who buy or specify goods and services for use in business:– Industrial– Trade– Professional– Agricultural (farm)

TargetTargetAudienceAudience

Classification of AdvertisingClassification of Advertising

MediumMedium PurposePurposeGeographicGeographic

AreaArea

• Local (retail) advertising: Advertising by businesses whose customers come from only one city or local trading area.

• Regional advertising: Advertising for products sold in one area or region, but not the whole country.

• National advertising: Advertising aimed at customers in several regions of the country.

• International advertising: Advertising directed at foreign markets.

MediumMedium

Classification of AdvertisingClassification of Advertising

GeographicGeographicAreaArea PurposePurpose

• Print advertising (newspaper, magazines, brochures, flyers)

• Electronic advertising (television, radio: commercials; Internet)

• Outdoor advertising (billboards, kiosks, public transport, events)

• Direct-mail advertising (through the Postal Service and by e-mail)

• POP (point of purchase) advertising

TargetTargetAudienceAudience

Classification of AdvertisingClassification of Advertising

GeographicGeographicAreaArea MediumMediumTargetTarget

AudienceAudiencePurposePurpose

• Product advertising: Intended to promote goods and services.

• Non-product (corporate or institutional) advertising: Intended to promote firm’s mission or philosophy rather than a product.

• Commercial advertising: Intended to promote goods, services, or ideas with the expectancy of making a profit.

Classification of AdvertisingClassification of Advertising

GeographicGeographicAreaArea MediumMediumTargetTarget

AudienceAudiencePurposePurpose

• Non-commercial advertising: Sponsored by or for a charitable institution, civic group, or religious or political organization.

• Action advertising: Intended to bring about immediate action on the part of the reader.

• Awareness advertising: Intended to build the image of a product or familiarity with the product’s name and package.

Non-product Advertising

• Idea Advertising: influence special interest group & generate public opinion.

For e.g. environmental issues, population explosion, dowry, child labor, human rights etc

Non-product Advertising

• Service advertising -Marketing of service

For e.g. Medical and healthcare services, financial services, educational services, transportation services, hospitality services,

Non-product Advertising

• Surrogate advertising: when the laws of country do not permit advertising of a certain product category, the surrogate advertisement give shelter to that product by brand extension.

For e.g. soda for alcoholic drink

Roles of Advertising

Marketing RoleMarketing Role

Communication RoleCommunication Role

Economic RoleEconomic Role

•Marketing is the process a business uses to satisfy consumer needs and wants through goods and services.

Societal RoleSocietal Role

•Advertising is a form of mass communication.

•Improves standard of living and the economy by generating material consumption.

•Informs us about new and improved products, teaches us how to use these innovations, etc.

Advertising’s role in marketing

• Marketing is a process—a series of actions or methods that take place sequentially—aimed at satisfying customer needs profitably.

• This process includes developing products, pricing them strategically, making them available to customers through a distribution network, and promoting them through sales and advertising activities.

4Ps (marketing mix): product, pricing, place (distribution) & promotion (communication)

Advertising’s role in marketing• Advertising is one of the numerous

tools used in the promotion, or communication aspect of marketing. (a promotional or communication tool)

Functions of Advertising • To identify products and differentiate them from

others. (branding)• To communicate information.• To induce consumers to try new products and to

suggest reuse. (new and repeated consumers)• To stimulate the distribution.• To build brand awareness, preference and loyalty.• To lower the cost of sales.

What makes a good advertisement?

Listening: • p.31

Product Reasons for liking

_______________________

_____________________________________________________________

_______________________

________________________________________________

What makes a good advertisement?

Creative and effective ads should seek to:

Attract attention and retain attention. Communicate the key benefits Achieve the objective of the advertising

strategy. Avoid errors, especially legal ones.

• Questions:

1. Outdoor advertising is increasing in many countries. Is this a good thing?

2. What products do you think are suitable for outdoor advertising?

3. Make a list of the advantages and disadvantages of the major media.