Moriarty 8e Basic 01

8/13/2019 Moriarty 8e Basic 01

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Prentice Hall, 2009 1-1

Introduction

toAdvertising


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Questions Well Answer

What isadvertisingand whatare its key

components

?

What areadvertisingsmain roles,and what

are the mostimportant

types ofadvertising?

Who are thekey players

inadvertising?

How hasadvertisingevolved, and

how havethese

developments affected

currentadvertising?

CHAPTER KEY POINTS


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Defining Modern Advertising Advertising is the non-personal

communication of information usuallypaid for and usually persuasive in

nature about products, services orideas by identified sponsors throughthe various media.

A form of marketing communication (all the techniques marketers use toreach their customers and deliver theirmessages)

WHAT IS ADVERTISING?

In 2010,spending on

advertising$142

billionin the United

States and

$467billion worldwide


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Defining Modern Advertising

Five Basic Factors of Advertising 1. Paid communication2. Sponsor is identified3. Tries to inform or persuade4. Reaches a large audience5. Message conveyed through many different kinds

of largely nonpersonal mass media



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Components of Advertising

Strategy Creativeidea

Execution Media

The strategy is the logic and planning behind the ad thatgives it direction.

Advertisers develop ads tomeet objectives. Advertisers direct ads to

identified audiences. Advertisers create a

message that speaks to theaudiences concerns.

Advertisers run ads in themost effective media.



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Strategy

Creativeidea Execution Media

The central idea grabs theconsumers attention andsticks in memory.

Planning strategy requirecreative problem solving.

Research involves creativity. Buying and placing ads

requires creative thinking.




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Strategy


Effective ads are wellexecuted reflecting thehighest production values in

the industry. Clients demand the best

production the budgetallows.




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Strategy


Television, Internet,magazines, and other mediaare used to reach a broad

audience. Deciding how to deliver the

message requires creativity. How you say something and

where you say it is just asimportant as what you say.


ROLES AND TYPES OF ADVERTISING


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Marketing

Communication Economic Societal

Marketing is satisfyingcustomer wants and needs

by providing products

(goods, services, ideas). The marketing department.

is responsible for sellingthe product using the 4 Ps(product, price,

place/distribution, and promotion) and branddevelopment.

Roles of Advertising



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Marketing Communication Economic Societal

Roles of Advertising Advertising is a message

to a consumer about a product, designed to createa response.

It is also a form ofmarketing communication.

Uses mass communicationto transmit product

information to connect buyers and sellers in themarketplace.



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Marketing Communication Economic Societal

Because it reaches largegroups of people,advertising makesmarketing more cost-efficient and lowers pricesfor consumers.

Advertising creates ademand for a brand using

hard sell (persuading) andsoft sell (image building)techniques.

Roles of Advertising



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Marketing

Communication Economic Societal

Roles of Advertising Informs about innovations

and issues Helps us compare products Mirrors fashion and design

trends Teaches consumers about

new products

Helps shape consumer self-image Facilitates self-expression Presents images about

diversity in our world



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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 100 million consumers.

The 1984 commercial for the Apple McIntoshsold out the entire inventory in one day.

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

iPods.

The success of the new VW Beetle was largelybuilt on its ability to connect with the anti-statusimage of the original lowly Beetle.

The truth campaign informs teens thatTobacco kills 1,200 people a day.

Procter & Gambles Ivory Soap has beenadvertised continuously since the late 1800s.

Nike campaigns, with the Just do it personalachievement message, have helped increasesales by 300 percent during the 1990s.

Table 1:1 The Strengths of Advertising


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Types of Advertising Brand Advertising

Focused on long-term brand identity and image

Retail or Local Advertising Focused on selling merchandise in ageographical area

Direct Response Advertising

Tries to stimulate a sale directly Business-to-Business

Sent from one business to another



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Institutional Advertising Focused on establishing a corporate identity or

winning the public over to the organizations

point of view Nonprofit Advertising

Used by nonprofits like charities, hospitals,orchestras, museums, and churches for

customer, members, volunteers, and donors Public Service Advertising

Usually produced and run for free on behalf ofa good cause

Types of Advertising



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Advertiser(client)

Agency Media Supplier Audience

Advertiser Wants to send out a

message about its business Identifies a problem that

advertising can solve Selects the target audience,

sets the budget, andapproves the ad plan

Hires the agency

THE KEY PLAYERS


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Top Ten U.S. CategoriesCategory Total ad spend in

2006 (millions) Total ad spend

in 2005(millions)

Percentagechange 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

Misc. 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 & tourism 5,406.4 5,486.1 -1.5

Pharmaceuticals 5,285.4 4,645.8 13.8

THE KEY PLAYERS


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Top Ten U.S. Advertisers Company Total ad

spend in 2006(millions)

Total ad spendin 2005

(millions)

Percentagechange 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

THE KEY PLAYERS


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Advertiser(client)


Agencies have the strategicand creative expertise, mediaknowledge, talent, and

negotiating abilities tooperate more efficiently thanthe advertiser.

Some large advertisers have

in-house departments.

Agency

THE KEY PLAYERS


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Advertiser(client)


Media are channels ofcommunication that carry themessage to the audience.

Theyre vehicles, but also largemedia conglomerates like TimeWarner and Viacom.

Mass media advertising can be

cost effective because the costsare spread over the large numberof people the ad reaches.

Media

THE KEY PLAYERS


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Advertiser(client)


Service organizations that assistadvertisers, agencies, and themedia in creating and placing ads

by providing specialized services Artists, writers, directors,

photographers, producers, printers, freelancers, and

consultants

Supplier

THE KEY PLAYERS


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Advertising Timeline

Stage 1: Age of Print Stage 2: Emergence of Consumer

Society Stage 3: Modern Advertising Era Stage 4: Age of Agencies

Stage 5: The Creative Era Stage 6: The Accountability Era Stage 7: Age of Social Responsibility

THE DEVELOPMENT OF ADVERTISING


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The New Advertising

Electronic media are making advertisingmore intimate, interactive, andpersonalized.

Advertising must evolve to keep up withtechnology.

Creativity involves more than just the adsbig idea, but finding new ways to engageconsumers beyond traditional massmedia.

CURRENT DEVELOPMENTS


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Buzz is getting people to talk aboutthe event, idea or brand.

People contact companies byphone, the Internet, and throughfriends.

Advertising must change to alsobecome more interactive.

Interactivity



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IMC means unifying all marketing

communication messages and tools to send aconsistent, persuasive message promotingthe brands goals.

Stakeholders are also important in IMC. Synergy means messages have more impact

working jointly than on their own.

Integrated MarketingCommunication (IMC)



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The elimination of trade barriers inthe 1990s opened hugeinternational markets.

Agencies are forming multinationaloperations to to address thesemarkets.

Should advertisers practice local orglobal advertising?

Globalization



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Gets attention Creates a positive impression for a brand Separates the brand from the competition Influences people to respond in the desired

way An ad that works that is effective is one

where the target audience responds as theadvertiser intended.

What Makes an Ad Effective?



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EFFIE awards recognize effective advertising Others are Advertising and Marketing

Effectiveness (AME), Canadas CassieAwards, and London-based Institute ofPractitioners Awards (IPA)

Clios, the One Show, and the Cannes LionsAwards recognize creativity

Effectiveness and Awards Show



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Prentice Hall 2009 1-30

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Moriarty 8e Basic 01