What is Advertising & Types

8/8/2019 What is Advertising & Types

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Introduction to Advertising

:role ,functions , importance



Chapter Goals

To gain an understanding of:

The nature of advertising

The importance of advertising to thefirm and society

Different types of advertising

Development of advertising campaigns



Communication tools: t he promotional

mix

Advertisin

gSales

promotionDirect

marketin

g

Publicity

and PR

Sponsorship Personalselling

short-term

incentives

to encourage

sales

non-personal communication by an identified sponsor,

transmitted to target audience via (mass) media

creating, developing

direct relationships

with individual

customers

Making³news´; building

goodwill, understanding

between organisations &

publics

Informing, persuading

potential customers through

personal communication

supporting event, person,

etc, to enhance sponsor¶s

awareness, image, etc.

etc..



Advertising

It is any paid form of nonpersonalpresentation and promotion of ideas,goods, or services by an identifiedsponsor.



T he Nature of Advertising advertising is distinguished from other

forms of promotion as follows

it has a verbal and/or visual message

the sponsor of the message is identified delivery is through recognizable media

there is payment by the advertiser to the

media for carrying the message advertisers are increasingly being able to

reach specific audiences with tailor-mademessages



There are three goals ofadvertising. These goals are to:

Inform, Persuade, and Remind.



5M OF ADVERT ISING

MISSION.

MONEY.

MESSAGE. MEDIA.

MEASUREMENT.



M ISSION

Sales goals.

Advertising objective.



M ONEY

Stage in PLC.

Market share & consumer base.

Competition. Advertising frequency.

Product substitutability.



M ESSAGE

Message generation.

Message execution.

Social responsibility review.





M EASURE M EN T

COMMUNICATION IMPACT.

SALES IMPACT



Ty pes of advertising

Product advertising Tries to sell aspecific product to final users orchannel members

Pioneering advertising builds primarydemand

Competitive advertising builds selective

demand Corporate/institutional advertising

Tries to promote an organisation'simage, reputation or ideas rather thana s ecific roduct



W hat is Being Advertised?

product advertisingproduct advertising is designed topromote the sale of a specific product orservice:

may be directdirect--actionaction, quick-response may be indirectindirect--actionaction over a longer

time

institutional advertisinginstitutional advertising promotes the firm

or tries to create a positive image: may promote customer service

or send a public service message



Role of Advertising

Simply put: Advertising exists tohelp to sell things.

It is mainly about brands It is mainly designed to create and

strengthen consumer impressions

of the brand Exception is public service

advertising



AIDA M odel

getAttention, hold Interest, arouseDesire, and then obtain Action.



Role of advertising

Marketing

CommunicationEconomic

Societal

The process abusiness uses to

satisfy consumerneeds byproviding goodsand services

Product category

Target market

Marketing mix

Brand



Role of advertising

Marketing

CommunicationEconomic

Societal

Can reach a massaudience

Introducesproducts

Explainsimportantchanges

Reminds andreinforces

Persuades



Role of advertising

Marketing

Communication

Economic

Societal

Moves frombeinginformational to

creating demand Advertising is an

objective means

for providingprice-valueinformation,thereby creating

a more rational



Role of advertising

Marketing

Communication

Economic

Societal

Informs consumersabout innovationsand issues

Mirrors fashion anddesign trends

Teaches consumersabout new products

Helps shapeconsumer self-image

Perpetuates self-



Integrated Communications

Advertising is part of totalcontinuum of communications

about the brand. It may have aleading role and carry the greatestbudget: but it can be merely cast in

a supporting role for a campaign ofactivity centered around an event.



T he importance of advertising

Involves a huge amount of money

Work is done by relatively few

people Major expense is for media

time/space

Companies spend only a smallpercentage of sales on advertising



T he Functions of Advertising

Builds awareness of products andbrands

Creates a brand image

Provides product and brandinformation

Persuades people

Provides incentives to take action

Provides brand reminders

Reinforces past purchases and brand



T he Key Players

Advertiser(client)

Agency

Media

Supplier

Audience

Uses advertising tosend out a messageabout its products

Initiates theadvertising effort byidentifying amarketing problem

Approves audience,plan and budget

Hires the

advertising agency



T he Key Players

Advertiser(client)

AgencyMedia

SupplierAudience

Has strategic andcreative expertise,media

knowledge,workforce talent,and negotiatingabilities

Advertising department

In-house agency



T he Key Players

Advertiser(client)

AgencyMedia

SupplierAudience

The channels ofcommunication thatcarry the message tothe audience

Are also companiesor hugeconglomerates

Mass mediaadvertising can becost effectivebecause the costs arespread over the

large number of



T he Key Players

Advertiser(client)

AgencyMedia

SupplierAudience

Assist advertisers,agencies, and themedia in creating

and placing theads

Vendor servicesare often cheaperthan those in-house





W hat M akes an Ad Effective?

1. If it creates an impression for aproduct or brand

2. If it influences people to respondin some way

3. If it separates the product or

brand from the competition in themind of the consumer



Summar y and Conclusion

Advertising is a core part of manycompanies¶ marketing mix: theactivities that link a brand to its market

and its consumers or customers

Traditionally, media advertising hastaken the lion¶ s share of marketing

communications budgets, at least formost consumer goods companies, sinceit is a cost-effective means of reaching

large numbers of people.



Summar y and Conclusion

As media and markets havefragmented, however, other forms ofcommunication are gaining importance,

and advertising is increasingly seen as just part of an integratedcommunications programme

As such, advertising works together,and integrates with, a variety of otherforms of communication.

Documents

What is Advertising & Types