ADVERTISING

Informs consumers about

the existence

and benefits of products / services

(to buy)

Purchases – influenced by advertising???

to advertise = inform in order to encourage people to buy or use the product

advertiser = a company or a person that advertises

advertisement (advert, ad) = a particular piece of advertising

Product / service more attractive/different

Advertising depends on the:

money - size of your advertising budget

size - of your market - locally, nationwide,

worldwide

type - of the target market

Firms advertise for four reasons:

1. make aware of new products

2. remind about existing products

3. persuade to switch from rival products

4. improve the image of the business

The ultimate aim: to sell more products

Advertising can be:

informative – describe the product in an impressive-sounding way (make you free to make up your own mind about the product)

persuasive – try to convince that you cannot survive without the product, play on fears and vulnerabilities, create desires

How companies advertise in the company

by own advertising departments

hiring advertising agencies• more resources• more knowledge

Hiring an advertising agency

The client company gives:

1. Budget - an amount of money

2. Brief – objectives of the advertising campaign

3. Advertising strategy – message / media

The advertising agency

1. Creates advertisements

2. Develops a media plan

3. Does research of the target market

Spending on advertising

a) a fixed percentage of current sales revenue

b) the comparative-parity method

Match the competitors’ spending

Excessive advertising is counter-productive

ADVERTISING MEDIA

1. Print media – newspapers, magazines, brochures, leaflets, journals

2. Broadcast media – TV, radio, cinema3. Endorsement – famous people speak on behalf of a product

4. Outdoor advertising – posters, billboards

5. Displays of logos – at stadiums, on clothes, bags, stationery etc.

6. Websites - e-commerce, video games

7. Transportation - public transport vehicles, stations, stops 8. Point of sale - window displays, product demonstration, stands

9. Skywriting

10. Sponsorships - racing cars, championships, sports events

11. Viral marketing – information about products is spread by people telling other people or sending on emails (buzz marketing)

Word-of-mouth advertising

Viral marketing(spreading commercial messages, like a virus, via peer-to-peer networks

on the internet – hotmail, blogs, online forums, YouTube)

Social networking

creates a “buzz”

idea – spreading quickly, at very little cost

Match up the verb-noun collocations:

1. to satisfy a) a new product

2. to develop b) attention

3. to inform c) needs

4. to build up d) a message

5. to draw e) blogs/online forums

6. to have f) consumers

7. to communicate g) sales

8. to create h) the target market

9. to increase i) advertisements

10. to launch j) an impact

11. to reach k) relationships

12. to set up l) a media plan

Put the following sequences of actions in the correct order:

1. Product: design, develop, distribute, launch, manufacture, sell, test

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2. Advertising: carry out campaign, develop advertisements, establish

media plan, receive advertising brief

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3. Distribution channel: end-user, manufacturer, retailer, wholesaler

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4. Product life cycle: decline, maturity, introduction, withdrawal, growth

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5. Consumer behaviour: awareness, loyalty, preference, trial purchase

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6. Consumer response: action, attention, desire, interest

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http://www.youtube.com/watch?v=SgNIIUD_oQg&feature=related

1. Why are social media so popular today?

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________http://www.youtube.com/watch?v=b7c27ikbR20

2. Make a short summary focusing on the part you like most.

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