introduction to advertising

CHAPTER

Introduction to

Advertising

CHAPTER

1

Chapter 1: Introduction to Advertising

2

Outline

• The mandate for effectiveness

• What makes an ad effective?

• The world of advertising

• The five players of advertising

• The evolution of advertising


3

Be able to:

• Discuss the elements of effective advertising

• Define advertising and identify its types and roles

• Identify the five players in the advertising world

• Explain the evolution of the ad industry and the current issues it faces

Objectives


4

The Mandate for

Effectiveness

• Today advertising is in a bind– A down economy

– Tragedy of 9/11

– New technologies that threaten how advertising works

• Advertisers expect specific results that lead to sales

• Advertising must be effective


5

• Effective ads work on two levels: with consumers and with advertisers.– Consumers

• View ads for entertainment or out of curiosity

• May then learn the ad relates to a need• May receive an incentive to risk change• May find reinforcement for product

decisions

– Advertisers• Ads must gain consumers’ attention• Ads must hold attention long enough to

change consumer purchasing behavior

What Makes an Ad

Effective?


6

What Makes an Ad

Effective?


7

Strategy

• Advertisers develop ads to– Meet specific objectives

– Target a certain audience

– Speak to that audience’s most important concerns

– Appear in media that will reach the audience most effectively


8

Creativity

• The creative concept is the ad’s central idea– Grabs your attention

– Sticks in your memory

• Creativity drives the entire advertising field– Planning strategy

– Conducting research

– Buying and placing ads


9

Execution

• Effective ads are well-executed– Details, photos,

printing, production values have been finely tuned

– How you say it is as important as what you say


10

• The intended effects of advertising are important for evaluating effectiveness

• These goals include– Perception

• Will the ad be attended to and remembered?

– Learning• Will the audience understand the

message and make correct associations?

Ads Must Be

Goal-Directed


11

• These goals include (cont.)– Persuasion

• Does the ad change attitudes and touch emotions?

– Behavior• Will the audience try the product?

Ads Must Be

Goal-Directed


12

A Model of Key Effects


13

Message Effectiveness Factors

Message Effects

Surrogate Measures Communication Tools

Perception Exposure

Attention

Interest

Memory: recognition/recall

Advertising Media; PR

Adv; Sales Promotion

Adv; SP; PR

Adv; SP; PR

Learning Understand

Image and association brand links

PR, Personal Selling, DM, Adv

Adv, PR, POP

Persuasion Attitudes: Form or change

Emotions and involvement

Conviction: belief, commitment

PR, Personal Selling, SP

Adv, PR, Personal Selling

Personal Selling, Direct Marketing

Behavior Trial

Purchase

Repeat purchase, use more

SP; Personal Selling, DM




14

• Advertising defined:– A paid form of communication

– A sponsor is identified

– Tries to persuade or influence the consumer to do something

– Is conveyed through different mass media

– Reaches a large audience of potential consumers

– Is nonpersonal

The World of

Advertising


15

• Types of Advertising– Brand advertising: focuses on

developing a long-term brand identity and image

– Retail/local advertising: focuses on retailers or manufacturers that sell merchandise in a restricted area

– Political advertising: focuses on politicians attempting to persuade people to vote for them or their ideas

The World of

Advertising


16

• Types of Advertising (cont.)– Directory advertising: used by

people to find how to buy a product or service

– Direct-response advertising: uses any ad medium to directly stimulate a sale

– Business-to-business advertising: messages directed at retailers, wholesalers, distributors, purchasers and professionals

The World of

Advertising


17

• Types of Advertising (cont.)– Institutional advertising:

corporate advertising used to establish an identity or influence public opinion

– Public service advertising (PSA): communicates a message for a good cause

– Interactive advertising: delivered to individual consumers who have access to a computer and the Internet

The World of

Advertising


18

• Marketing role– Carry persuasive messages to

actual/potential customers

• Communication role– Advertising transmits market

information to match buyers and sellers in the marketplace

The Roles of

Advertising


19

• Economic role– Advertising may make consumers less

price sensitive, or

– Advertising may help consumers better assess value

• Societal role– Ads inform about new products, help

consumers compare products, mirror fashion, influence taste

The Roles of

Advertising (cont.)


20

Functions of

Advertising

• Advertising can function to:– Provide product and

brand information

– Provide incentives to take action

– Provide reminders and reinforcement


21

• Advertisers have turned to feature films to promote products (James Bond drives a particular foreign car, characters in other films drink a particular brand of beer or soda).

• Does this approach fulfill the three basic functions of advertising?

• How are the four major roles of advertising influenced by this approach?

Questions for

Discussion


22

• Advertiser– Organization that needs to advertise

• Advertising agency– Firms that plan and implement

advertising efforts

• Media– Channels that carry the message from

advertiser to audience

The Five Players of

Advertising


23

• Vendors– Service people/organizations that assist

advertisers, agencies, and media

• Target audience

The Five Players of

Advertising


24

• Age of print– Ads were primarily

classified in format

• Industrial revolution and emergence of consumer society– Social and technological

developments led to growth in importance and size of advertising

The Evolution of

Advertising


25

• Modern advertising: Agencies, science and creativity– Ad industry grew to

$500 million in billings

• Accountability era– Clients demand results

– Agencies linked to global business environment

The Evolution of

Advertising (cont.)


26

• Interactive advertising– Will technology change the face of

advertising?

– Is the promise of technology exaggerated?

– Implications of the failure of banner ads

Current Advertising

Issues


27

• Integrated marketing communications (IMC)– Unifying all marketing communications

tools to send a consistent persuasive message

• Consumer Power– Technology has given consumers

greater leverage

Current Advertising

Issues


28

• Globalization– Trade barriers have fallen in Europe

– Formerly communist nations have partially opened markets

– Should advertisers practice global or local advertising?

• Niche marketing– Advertisers target market segments

– New technologies make targeting groups possible

Current Advertising

Issues


29

• Critics charge advertising manipulates its audience, while supporters claim advertising seeks to persuade

• Which interpretation do you agree with?

• Why?

Questions for

Discussion

introduction to advertising

Documents

world of advertising

advertising world

sales advertising

players of advertising

ads chapter

advertising works advertisers

effective chapter

ad effective