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ADVERTISING AND PROMOTION
BYWELLS,BURNET AND MORIARTY
5TH EDITION
Introduction to Advertising
Part 1: FoundationsChapter 1
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Chapter Outline
I. Chapter Key Points
II. What is Advertising?
III. Roles and Functions of Advertising
IV. The Key Players
V. Types of Advertising
VI. What Makes an Ad Effective?
VII. The Evolution of Advertising
VIII.The Current Advertising Scene
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Key Points
Define advertising and explain its key components
Discuss the roles and functions of advertising withinsociety and business
Identify the key players and their roles in creatingadvertising
Explain the different types of advertising
Summarize the characteristics of effective advertising
and explain why it is always goal directed Analyze the changes affecting the advertising
industry
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Defining Modern Advertising
Advertising is paid
persuasive
communication that
uses mass media toreach broad audiences
to connect an identified
sponsor with a target
audience
Five basic
components:
1. Paid communication
2. Sponsor is identified3. Tries to persuade or
influence consumers
4. Reaches a large
audience (potentialcustomers)
5. Conveyed through
mass media
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Key Concepts of Advertising
Strategy
Creative idea
CreativeExecution
Creative Media
The logic and planningbehind the ad
Advertisers develop ads
to meet objectives Advertisers direct ads to
identified audiences
Advertisers create
messages that speak tothe audiences concerns
Advertisers run ads inthe most effective media
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Key Concepts of Advertising
Strategy
Creative idea
Execution
Media
The central idea that
grabs the consumers
attention
Creativity drives theentire field of
advertising
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Key Concepts of Advertising
Strategy
Creative idea
Creative
Execution
Media
Effective ads adhere tothe highest production
values in the industry
Clients demand the
best production the
budget allows
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Key Concepts of Advertising
Strategy
Creative idea
Execution
Creative Media
Communication
channels that reach a
broad audience
How to deliver themessage is just as
important coming up
with the creative idea of
the message
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Roles of Advertising
Marketing
Communication
Economic
Societal
The process a business
uses to satisfy consumer
needs by providing
goods and services Product category
Target market
Marketing mix
Brand
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Roles of Advertising
Marketing
Communication
Economic
Societal
Can reach a mass
audience
Introduces products
Explains importantchanges
Reminds and reinforces
Persuades
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Roles of Advertising
Marketing
Communication
Economic
Societal
Moves from being
informational to
creating demand
Advertising is anobjective means for
providing price-value
information, thereby
creating a more rational
economy
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Roles of Advertising
Marketing
Communication
Economic
Societal
Informs consumers aboutinnovations and issues
Mirrors fashion and designtrends
Teaches consumers aboutnew products
Helps shape consumer self-image (personalities /style)
effect self-expression(thingwe wear and use)
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The Functions of Advertising
Builds awareness of products and brands
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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The Key Players
Advertiser(client)
Agency Media
Supplier Audience
Uses advertising to sendout a message about its
products
Initiates the advertisingeffort by identifying amarketing problem
Approves audience,
plan and budget Hires the advertising
agency
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
Has strategic and
creative expertise,
media knowledge,
workforce talent, andnegotiating abilities
Advertising department
In-house agency
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
The channels of
communication that carry
the message to the audience
Are also companies or hugeconglomerates
Mass media advertising can
be cost effective because the
costs are spread over thelarge number of people the
ad reaches
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
Assist advertisers,
agencies, and the media
in creating and placing
the ads
Vendor services are
often cheaper than those
in-house
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
The desired audience for the
advertising message
Data-gathering technology
improves accuracy of
information about customers
Advertisers must recognize
the various target audiences
they are talking to and know
as much about them aspossible
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Types of Advertising
Brand advertising
Retail or Local advertising
Direct-Response advertising Business-to-Business advertising
Institutional /Corporate advertising
Nonprofit advertising Public Service advertising (PSAs)
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What Makes an Ad Effective?
1. Great ads are effective and effective ads are
ads that work.
2. If it creates an impression for a product or
brand
3. If it influences people to respond in some
way
4. If it separates the product or brand from the
competition in the mind of the consumer
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What Makes an Ad Effective?
Effective advertising
messages will achieve
the desired impact
(objective) on the targetaudience
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 Advertising
Age of Print (classified format / print media)
Industrial Revolution and Emergence of
Consumer Society ( because of numerous
social and technological developments)
Modern Advertising Era (agency era /
advertising industry grew and professional
advertising developed)
Accountability Era ( focus on effectiveness in
terms of sales)
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The Current Advertising Scene
Expanded view
Integrated
MarketingCommunication
Globalization
Electronic media
(internet / wireless) are
changing the media
landscape New media are more
personal and interactive
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The Current Advertising Scene
Expanded view
Integrated
MarketingCommunication
Globalization
The practice of unifying
all marketing
communication tools so
they send a consistent,persuasive message
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The Current Advertising Scene
Expanded view
Integrated
MarketingCommunication
Globalization
Increasing globalization
of marketing programs
Advertisers are moving
into global markets andagencies are forming
huge multinational
operations