Introduction to Advertisment

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Introduction to

Advertising

Advertising Principles

and Practices


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Prentice Hall, © 2009 1-2

Part One: FoundationsPart One: Foundations

• Provides an introductionto advertising—its role,key players, and history

• Defines advertising’s rolein marketing includingkey players and newdevelopments

• Eamines advertising’srelationship to societyincluding regulations andethics in advertising

(Insert new book cover)


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!uestions "e’ll #nswer !uestions "e’ll #nswer

• "hat is advertising and what are its

key components$

•"hat are advertising’s main roles, andwhat are the most important types of

advertising$

• "ho are the key players in advertising$

• %ow has advertising evolved, and how

have these developments affected

current advertising practice$1-3Prentice Hall, © 2009


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Exhibit 1.1 here

Stills from truth® commercial

• "hat was the purpose

of this campaign$

• "hat was the message$

• "hat media did this

campaign use$

Visit the

Site

1-4Prentice Hall, © 2009


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Prentice Hall, © 2009

Definitions of #dvertisingDefinitions of #dvertising

• #dvertising is any aid form of non-ersonal presentation and promotion ofideas, goods and services &y an identi!iedsonsor" # 'otler

• #dvertising is a paid, mass mediatedattempt to persuade

• (salesmanship in print)• *u&stitute for a human salesman


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Prentice Hall, © 2009 1-$

Defining +odern #dvertisingDefining +odern #dvertising

• # comple form of communication using

o&ectives and strategies to impact

consumer thoughts, feelings, and actions-

• # form of marketing communication .allthe techni/ues marketers use to reach their

customers and deliver their messages0-

WHAT IS ADVERTISING?


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Prentice Hall, © 2009 1-%


&he 'volution o! Advertising• 1dentification

2 *imple images found in ancient 3a&ylonia,Egypt, 4reece, and 5ome identified a &usiness, manufacturer, or store-

• 1nformation 2 4uten&erg’s mova&le type mechani6ed

printing leading to mass communication-

• Promotion 2 7he 1ndustrial 5evolution led to surplus

goods, improved transportation, and theneed for new media-

• *ales 2 #dvertisers &ecame concerned a&out

making ads that worked and definingstandards of effective advertising-


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Prentice Hall, © 2009 1-(


Princile)

#n effective advertisement is one that can

&e proven to meet its o&ectives-

*ive +asic *actors o! Advertising

8- Paid communication

9- *ponsor is identified

- 7ries to inform or persuade;- 5eaches a large audience


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Four =omponents of #dvertisingFour =omponents of #dvertising


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Four =omponents ofFour =omponents of

#dvertising#dvertising1" Advertising Strateg

• 7he strategy is the logicand planning &ehind the adthat gives it direction-

• #dvertisers develop ads tomeet o&ectives-

• #dvertisers direct ads toidentified audiences-

• #dvertisers create amessage that speaks to theaudience’s concerns-

• #dvertisers run ads in themost effective media-


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#dvertising#dvertising2" reative Idea

• 7he creative concept is the

central idea that gra&s the

consumer’s attention and

sticks in memory-

• Planning strategy re/uires

creative pro&lem solving-

• 5esearch involves

creativity-

• 3uying and placing ads

re/uires creative thinking-


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#dvertising#dvertising

3" reative '.ecution

• Effective ads are well

eecuted reflecting the

highest production valuesin the industry-

• =lients demand the &est

production the &udget

allows-


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#dvertising#dvertising

4" /edia Planning+uing

• 7elevision, 1nternet,

maga6ines, and other

media are used to reach a &road audience-

• Deciding how to deliver

the message re/uires

creativity-

Princile)

In advertising ho ou sa soething and

here ou sa it is ust as iortant as hat

ou sa"


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Four 5oles of #dvertisingFour 5oles of #dvertising

1" &he /areting 5ole

• +arketing is satisfying customer wants and needs &y providing products .goods, services, andideas0-

• 7he marketing department is responsi&le forselling the product using the ; Ps .product, price,

place>distri&ution, and promotion0 and &randdevelopment-

Princile)

# product can &e services and

ideas as well as goods-


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2" &he ounication 5ole

• #dvertising is a message to a consumer a&out a product, designed to create a response-

•1t is also a form of marketing communication-• #dvertising uses mass communication to transmit

product information to connect &uyers and sellersin them marketplace-

Princile)

One of advertising’s most important strengths is

its a&ility to reach a large audience-


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Prentice Hall, © 2009 1-1$

Strengths

Can reach a large audience

Introduces products and brands

Builds awareness of productsand brands

Creates brand images

Provides information

Reminds and reinforces

Persuades

Examples

A commercial in the Super Bowl can reachmore than !! million consumers"

#he $%&' commercial for the Apple cIntoshsold out the entire inventor* in one da*"

#he success of the launch of the iPod was duein part to the great silhouette posters thatshowed people dancing to the music on their

iPods"

#he success of the new +, Beetle waslargel* built on its abilit* to connect with theanti-status image of the original $lowl* Beetle"

#he truth. campaign informs teens that$#obacco kills /0!! people a da*"

Procter 1 2amble3s Ivor* Soap has beenadvertised continuousl* since the late &!!s"

4ike campaigns/ with the $5ust do it personalachievement message/ have helped increasesales b* 6!! percent during the %%!s"

Table 1.1 Te Strengts !" Advertising


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3" &he 'conoic 5ole

• 3ecause it reaches large groups of people,advertising makes marketing more cost?efficientand lowers prices for consumers-

• #dvertising creates a demand for a &rand usinghard sell .persuading0 and soft sell .image

&uilding0 techni/ues-


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Prentice Hall, © 2009 1-1(

7he Economic 5ole7he Economic 5ole

#dvertising is a means to o&ectively#dvertising is a means to o&ectively provide price?value information, provide price?value information,

creating a more rational economy-creating a more rational economy-

3y focusing on images and emotional3y focusing on images and emotional

responses, advertising encourages consumersresponses, advertising encourages consumers

to make decisions &ased on nonprice &enefits-to make decisions &ased on nonprice &enefits-


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4" &he Societal 5ole

• 1nforms consumers a&outinnovations and issues

• %elps us compare products andfeatures

• +irrors fashion and design trends

• 7eaches consumers a&out new products and how to use them

• %elps shape consumer self?image• Facilitates self?epression through

purchases

• Presents images a&out diversity inour world


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7ypes of #dvertising7ypes of #dvertising

• 3rand #dvertising 2 Focused on long?term &rand

identity and image

• 5etail or @ocal #dvertising

2 Focused on selling merchandisein a geographical area

• Direct 5esponse #dvertising 2 7ries to stimulate a sale directly

• 3usiness?to?3usiness

2 *ent from one &usiness to another

Princile)

#ll types of advertising demand creative, original

messages that are strategically sound and well eecuted-


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7ypes of #dvertising7ypes of #dvertising

• 1nstitutional #dvertising 2 Focused on esta&lishing a

corporate identity or winningthe pu&lic over to theorgani6ation’s point of view

• Aonprofit #dvertising 2 Bsed &y nonprofits like

charities, associations,hospitals, orchestras, museums,and churches for customer,

mem&ers, volunteers, anddonors

• Pu&lic *ervice #dvertising 2 Bsually produced and run for

free on &ehalf of a good cause


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7he 'ey Players: the #dvertiser 7he 'ey Players: the #dvertiser

• "ants to send out amessage a&out its &usiness

• 1nitiates effort &y

identifying a pro&lem thatadvertising can solve

• *elects the target audience,sets the &udget, andapproves the ad plan

• %ires the agency

2 #gency of record .#O50does the most &usinessCmanages other agencies


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7op 7en B-*- #dvertising7op 7en B-*- #dvertising

=ategories=ategoriesCategory

Total ad spend in

2006 (millions) Total ad spend

in 2005

(millions)

Percentage

change from

2005

Telecom $9,431.1 $8,550.5 10.3%

Auto, non-domestic 8,726.7 8,832.8 -1.2

Local services and amusements 8,687.0 7,879.2 10.3

Financial services 8,681.8 8,508.8 2.0

Miscellaneous retail* 8,322.9 8,258.0 0.8

Auto, domestic 7,615.2 8,625.1 -11.7

Direct response 6,376.1 6,087.0 4.7

Personal care 5,717,2 5,654.1 1.1

Travel and tourism 5,406.4 5,486.1 -1.5

Pharmaceuticals 5,285.4 4,645.8 13.8


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7op 7en B-*- #dvertisers7op 7en B-*- #dvertisers

Company Total ad

spend in 2006

(millions)

Total ad spend

in 2005

(millions)

Percentage

change from

2005

Procter & Gamble $3,338.7 $3,230.9 3.3%

General Motors 2,294.8 3,008.0 -23.7

AT&T 2,203.8

1,684.7

30.8

Verizon Communications 1,944.2 1,761.6 10.4

Time Warner 1,824.6 2,073.5 -12.0

Ford Motor Company 1,699.5 1,567.0 8.5

Walt Disney 1,430.4

1,418.3

0.9

DaimlerChrysler 1,421.4 1,591.5 -10.7

Johnson & Johnson 1,302.8 1,623.4 -19.8

News Corp 1,266.8 1,298.5 -2.4


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• #gencies have the strategic and creative epertise,

media knowledge, talent, and negotiating a&ilities

to operate more efficiently than the advertiser-

• *ome large advertisers have in?house departments-

'ey Players: #gency'ey Players: #gency


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• +edia are channels of communication that

carry the message to the audience

• 7hey’re vehicles, &ut also large media

conglomerates like 7ime "arner andiacom-

'ey Players: +edia'ey Players: +edia

Princile)

+ass media advertising can &e cost effective

&ecause the costs are spread over the large

num&er of people the ad reaches-


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• 4roup of service organi6ations that assist

advertisers, agencies, and the media in creating

and placing ads &y providing speciali6ed services

• #rtists, writers, photographers, directors,

producers, printers, freelancers, and consultants

'ey Players: *uppliers'ey Players: *uppliers

Insert


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Prentice Hall, © 2009 1-2(

• People to whom an ad isdirected—their responsesdetermine if advertising iseffective-

• Targeting is the process ofidentifying the people inthe desired audience-

• 1nteractive technologyallows ads to &ecustomi6ed to the targetaudience’s individualneeds-

'ey Players: 7arget #udiences'ey Players: 7arget #udiences

Insert


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=urrent Developments=urrent Developments

&he 7e Advertising

• Electronic media are making advertisingmore intimate, interactive, and personali6ed-

• #dvertising must evolve to keep up withtechnology-

• =reativity involves more than ust the ad’s &ig idea, &ut finding new ways to engage

consumers &eyond traditional mass media-


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Interactivit

• Buzz is getting people to talk a&out theevent, idea or &rand-

• People contact companies &y phone, the1nternet, and through friends-

• #dvertising must change to also &ecomemore interactive-


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Integrated /areting ounication 8I/

• 1+= means unifying all marketing

communication messages and tools to send a

consistent, persuasive message promoting the &rand’s goals-

• *takeholders are also important in 1+=-

• Synergy means messages have more impact

working ointly than on their own-


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:lo;ali


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=hat aes an ad e!!ective>

• 4ets attention

• =reates a positive impression for a &rand

• *eparates the &rand from the competition• 1nfluences people to respond in the desired way

Princile)

#n ad that works—that is effective—is onewhere the target audience responds as the

advertiser intended-


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'!!ectiveness and Aards Shos

• EFF1E awards recogni6e effective advertising-

• Others are advertising and marketing effectiveness.#+E0, =anada’s =assie #wards, and @ondon?

&ased 1nstitute of Practitioner’s #wards .1P#0-

• =lios, the One *how, and the =annes @ions #wardsrecogni6e creativity-

Visit the

Site


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P ti H ll © 2009 1 3(

7he 7ruth a&out the7he 7ruth a&out the truthtruthGG =ampaign=ampaign

• Did the campaign work

for the client$

• "hat is the evidence

that it worked$

Documents

Introduction to Advertisment