Introduction To Advertising -

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Introduction to AdvertisingChapter 1Part One:Foundations Part 1 provides the ‘bigpicture of advertising’ Examines advertisingand marketing and theirplace in societyChapter OutlineI. Chapter Key PointsII. What is Advertising?III. Roles and Functions of AdvertisingIV. The Key PlayersV. Types of AdvertisingVI. What Makes an Ad Effective?VII. The Evolution of AdvertisingVIII.The Current Advertising Scene1

Key Points Define advertising and explain its keycomponents Discuss the roles and functions of advertisingwithin society and business Identify the key players and their roles increating advertising Explain the different types of advertising Summarize the characteristics of effectiveadvertising and explain why it is always goaldirected Analyze the changes affecting the advertisingindustryThe Mandate for EffectivenessVisit theSiteDefining Modern Advertising Paid persuasivecommunication Uses nonpersonalmass media toreach broadaudiences Connects anidentified sponsorwith a targetaudience2

Five Basic Components1. communicationSponsor is identifiedTries to persuade or influenceReaches large audienceConveyed through impersonal massmediaKey Concepts of AdvertisingFigure 1.1Strategy The logic and planning behind the ad that give itdirection and focus Advertisers develop ads to meet objectives Advertisers direct ads toidentified audiences Advertisers createmessages that speak tothe audience’s concerns Advertisers run ads inthe most effective mediato reach the audience3

Succeeding Through StrategyVisit theSiteCreative Idea The central idea thatgrabs the consumer’sattention Creativity drives theentire field ofadvertisingExecution Effective ads adhereto the highestproduction values inthe industry Clients demand thebest production thebudget allows4

Media Communication channelsthat reach a broadaudience How to deliver themessage is just asimportant as coming upwith the creative idea ofthe messageThe Marketing ixBrandVideo SnippetDunkin’ Donuts explainsits marketing philosophyThe Communication RoleStrengths of Advertising as a Marketing TechniqueStrengthsExamplesCan reach a massaudienceA commercial on the Super Bowlreaches 150 million consumersIntroduces productsWindows 98 was simultaneouslyintroduced in multiple world marketsExplains importantchangesMTN Cellular’s ads explain changes inits technologyReminds and reinforcesPepsi-Cola has been advertisingcontinuously over the last 50 yearsPersuadesNike campaigns have helped increasesales by 300% during the last decadeTable 1.15

The Economic RoleAdvertising decreases the likelihood that aconsumer will switch to an alternate productregardless of priceAdvertising is a means to objectively provideprice-value information, creating a morerational economyThe Societal RoleInforms consumers about innovations and issuesMirrors fashion and design trendsTeaches consumers about new productsHelps shape consumer self-imagePerpetuates self-expressionThe Functions of Advertising Builds awareness of products andbrands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases and brandexperiences6

Key Players: Advertiser Uses advertising tosend out a messageabout its products Initiates effort byidentifying a problemthat advertising cansolve Approves audience,plan and budget Hires the agencyKey Players: AdvertiserBiggest U.S. Advertisers in Terms of Categories1.2.3.AutomotiveRetailMovies, media, andadvertising4. Food, beverages, andconfectionery5. Medicines and proprietaryremedies6. Financial services7. Telecommunications8. Toiletries, cosmetics, andpersonal care9. Airline travel, hotels, andresorts10. Restaurants11. Direct-response companies12. Home-furnishings,appliances, supplies13. Insurance and real estate14. Computers, software,Internet15. Government, politics, andorganizations16. Apparel17. Beer, wine, and liquor18. Audio and video equipmentand supplies19. Sporting goods, toys, andgames20. Entertainment and eventsTable 1.2Key Players:Agency Has strategic andcreative expertise,media knowledge,workforce talentand negotiatingabilitiesFigure 1.27

Key Players: Media Channels of communication that carry the message to theaudience Are also companies or huge conglomerates Cost effective because the costs are spread over a large number ofpeopleVisitthe SiteKey Players: Supplier Assist advertisers, agencies and the media in creatingand placing the ads Vendor services are often cheaper than those in-houseKey Players: Target Audience The desired audience for the advertisingmessage Data-gathering technology improvesaccuracy of information about customers Advertisers must recognize the varioustarget audiences they are talking to andknow as much about them as possible8

Types of Advertising Brand advertising Retail or Local advertising Direct-Responseadvertising Business-to-Businessadvertising Institutional advertising Nonprofit advertising Public Service advertisingWhat Makes an Ad Effective?1. If it creates animpression for aproduct or brand2. If it influencespeople to respond3. If it separates theproduct or brandfrom thecompetitionPepsi: It’It’s the Cola (and it’it’s effective)Visit theSite9

Award Shows Award Shows EFFIES, AME, IPA– Judge effectiveness CLIOS, One Show,Cannes– Judge creative ideas Not all award-winingads are effectiveVisit the site – www.clioawards.comThe Evolution of AdvertisingFigure 1.3The Evolution of AdvertisingFigure 1.3 continued10

The Evolution of AdvertisingFigure 1.3 concludedThe Current Advertising Scene:Expanded View Electronicmedia arechangingthe medialandscapeVisit theSiteThe Current Advertising Scene:Integrated Marketing Communication Unifying allmarketingcommunication toolsso they send aconsistent, persuasivemessage11

The Current Advertising Scene:Globalization Advertisers aremoving intoglobal markets Agencies areforming hugemultinationaloperationsVisit theSite12

Creative Idea The central idea that grabs the consumer’s attention Creativity drives the entire field of advertising Execution Effective ads adhere . The Evolution of Advertising Figure 1.3 continued. 11 The Evolution of Advertising Figure 1.3 concluded The Curre

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