ch01-intro to adv

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Chapter 1

Introduction to Advertising


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Learning Objectives

Definition and roles of advertising

Major players of advertisingAn overview of what makes effectiveadvertising

Current advertising issues


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EXH4-9


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$ %

Main media 110,956

Other media etc. 76,573Grand total 187,529Main media

Newspapers 41,670 37.6Magazines 9,821 8.9Television 44,519 40.1Radio 13,491 12.1Outdoor 1,455 1.3

Total 110,956 100.0

U.S. Advertising Volume, 1997 ($ million)

SOURCE:Reprinted with permission from the May 18, 1998, issue ofAdvertising Age. Copyright Crain

Communications Inc., 1998.


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What is Advertising?

Advertising is:

(1) Paid,

(2) Nonpersonal Communication,

(3) From An IdentifiedS

ponsor(4)Using Mass Media,

(5) To Persuade or Influence an Audience.


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Roles and Functions of Advertising

To identify and differentiate from other offerings

To communicate information about the product

To induce consumers to try new products and to

suggest reuse

To stimulate the distribution of a product

To increase product use

To build value, brand preference, and loyalty

To lower the overall cost of sales


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Roles of Advertising (contd)

To associate feelings with brand

To link brand with peers and group norms

(And. More?)

To

To

To

To


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A model of the communication/persuasionprocess

Awareness/Familiarity

with Brand

Information re Brand

Attributes or Benefits

Creation of BrandImage/Personality

Association of

Feelings with Brand

Linkage of Brand

With Peers/Experts

and roup orms

eminder or

Inducement about

Brand Trial




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The Classifications of AdvertisingBy

Target audience

By

Geographic

Area

By

Medium

By

Purpose

Consumer

Business

-Trade

-Professional-Agriculture

Local (retail)

Regional

National

Global

Print

Broadcast

(electronic)

- Radio- TV

Out-of-Home

Direct-Mail

Internet

Product

Nonproduct

Commercial

Non-commercial

Action

Awareness

Teaser


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Advertiser

Government

ompetition

Advertising

Agency

Media

Research

Suppliers

Markets and onsumer ehavior

ontrol

Institutions

acilitating

Institutions

Figure 1-1 Major institutions involved in the ield o advertising management


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Five Players of AdvertisingAdvertiser

(Client)

AdvertisingAgency

Media

Organization

Suppliers

Target

Audience

Marketing strategy and final approval

Creative and media plan

Audience delivery

Marketing communication specialists,collateral services

Receivers of marketing communications


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Name great advertising

campaigns or great ads:


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What Makes Effective Advertising?

Extension from sound marketing strategy

Focus on consumers view

Persuasive

Break through the clutter

Never promise more than deliverable

The creative idea not overwhelming the strategy


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Broad Dimensions That

Characterize Great Advertising

StrategyStrategyStrategyStrategy CreativityCreativityCreativityCreativity

ExecutionExecutionExecutionExecution

The ultimate test for the greatness of an ad is whether itachieved its intended objectives.


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Good or Great Ads Work on Two Levels

Achieve the Sponsors

Objectives

Satisfy the Customers

Objectives by Engaging

Them & Delivering a

Relevant Message

Characteristics of Great Ads


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Interest

Knowledge

Attitude Change

Behavioral Change/ Trial

Repurchase/Commitment/Reminder

Identify Personal Needs

Gather RelevantInformation

Support Risk AssociatedWith Attitude Change

Enhance Need Reduction

Reinforce Trial andNeed Reduction

Dual Process of Great Advertising:

Reaching Objectives (Fig. 1.1)ADVERTISING

OBJECTIVES

Satisfy Curiosity/Memory/Entertainment

CONSUMERSOBJECTIVES

Attention/ Awareness


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Interactive Advertising

Integrated Marketing Communication

Consumer Power, Relationship Marketingand Customization

Globalization

Niche Marketing

Current Advertising Issues


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Differential Promotion Intensity/Investment

Historical

Marketing

New

MarketingMass

Communications

(One Message

Fits All)

Customized

Communications

(Discrete Messages

Targeted According

To Customer

Profile)

Undifferentiated Promotion Intensity/Investment (Same for all)

Marketing on the Average

Marketing on the Differences


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Growing Importance of IMC

Reduced faith in mass media advertising

Increased reliance on highly targetedcommunication methods

Greater demands imposed on marketingcommunications suppliers

Increased efforts to assess communications

return on investment


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Growing Importance of IMC

Fragmented media environment

Changes in media buying practices

Price conscious consumers

Technology


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How SW Airlines UsedHow SW Airlines Used

the Concept of IMCthe Concept of IMC

(video case)(video case)


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Review

Definition and roles of advertising

Major players of advertising

An overview of what makes effectiveadvertising

Current advertising issues

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