introduction to advertising
DESCRIPTION
Introduction to AdvertisingTRANSCRIPT
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
Chapter 1: Introduction to Advertising
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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
Chapter 1: Introduction to Advertising
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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
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• 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?
Chapter 1: Introduction to Advertising
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What Makes an Ad
Effective?
Chapter 1: Introduction to Advertising
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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
Chapter 1: Introduction to Advertising
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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
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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
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• 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
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• 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
Chapter 1: Introduction to Advertising
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A Model of Key Effects
Chapter 1: Introduction to Advertising
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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
SP; Personal Selling, DM
SP; Personal Selling, DM
Chapter 1: Introduction to Advertising
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• 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
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• 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
Chapter 1: Introduction to Advertising
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• 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
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• 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
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• 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
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• 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.)
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Functions of
Advertising
• Advertising can function to:– Provide product and
brand information
– Provide incentives to take action
– Provide reminders and reinforcement
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• 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
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• 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
Chapter 1: Introduction to Advertising
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• Vendors– Service people/organizations that assist
advertisers, agencies, and media
• Target audience
The Five Players of
Advertising
Chapter 1: Introduction to Advertising
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• 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
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• 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.)
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• 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
Chapter 1: Introduction to Advertising
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• 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
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• 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
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• Critics charge advertising manipulates its audience, while supporters claim advertising seeks to persuade
• Which interpretation do you agree with?
• Why?
Questions for
Discussion