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Introduction to

Advertising

PROF. (DR.) ANUPAM NARULA


B.Sc. (Math's), M.A (Eco.), PGDBM (MKTG), Ph.D. (Eco.)

DEAN,
MANGALMAY INSTITUTE OF MANAGEMENT STUDIES,
8 - KNOWLEDGE PARK-II ,
GREATER NOIDA
Chapter Outline
I. Chapter Key Points
II. What is Advertising?
III. Roles and Functions of Advertising
IV. The Key Players
V. Types of Advertising
VI. What Makes an Ad Effective?
VII. The Evolution of Advertising
VIII.The Current Advertising Scene

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Key Points
• Define advertising and explain its key components
• Discuss the roles and functions of advertising within
society and business
• Identify the key players and their roles in creating
advertising
• Explain the different types of advertising
• Summarize the characteristics of effective advertising
and explain why it is always goal directed
• Analyze the changes affecting the advertising
industry

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Defining Modern Advertising
• Advertising is paid • Five basic
persuasive components:
communication 1. Paid communication
• Uses Non-Personal 2. Sponsor is identified
mass media to reach 3. Tries to persuade or
influence
broad audiences to
4. Reaches a large
connect an identified
audience
sponsor with a target
5. Conveyed through
audience impersonal mass media

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Key Concepts of Advertising
• Strategy • The logic and planning
behind the ad
• Creative idea • Advertisers develop ads
to meet objectives
• Execution • Advertisers direct ads to
identified audiences
• Media • Advertisers create
messages that speak to
the audience’s concerns
• Advertisers run ads in
the most effective media
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Key Concepts of Advertising
• The central idea that
• Strategy grabs the consumer’s
• Creative idea attention
• Creativity drives the
• Execution entire field of
advertising
• Media

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Key Concepts of Advertising
• Effective ads adhere to
• Strategy the highest production
• Creative idea values in the industry
• Clients demand the best
• Execution production the budget
allows
• Media

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Key Concepts of Advertising
• Communication
• Strategy channels that reach a
• Creative idea broad audience
• How to deliver the
• Execution message is just as
important coming up
• Media with the creative idea of
the message

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Roles of Advertising
• Marketing • The process a business
uses to satisfy consumer
• Communication needs by providing
goods and services
• Economic – Product category
– Target market
• Societal – Marketing mix
– Brand

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Roles of Advertising
• Marketing • Can reach a mass
audience
• Communication • Introduces products
• Explains important
• Economic changes
• Societal • Reminds and reinforces
• Persuades

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Roles of Advertising
• Marketing • Moves from being
informational to
• Communication creating demand
• Advertising is an
• Economic objective means for
providing price-value
• Societal information, thereby
creating a more rational
economy

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Roles of Advertising
• Informs consumers
• Marketing about innovations and
issues
• Communication • Mirrors fashion and
• Economic design trends
• Teaches consumers
• Societal about new products
• Helps shape consumer
self-image
• Perpetuates self-
expression
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The Functions of Advertising
• Builds awareness of products and brands
• Creates a brand image
• Provides product and brand information
• Persuades people
• Provides incentives to take action
• Provides brand reminders
• Reinforces past purchases and brand
experiences
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The Key Players
• Advertiser • Uses advertising to send
out a message about its
(client) products
• Agency • Initiates the advertising
effort by identifying a
• Media marketing problem
• Approves audience,
• Supplier plan and budget
• Hires the advertising
• Audience agency

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The Key Players
• Advertiser • Has strategic and
creative expertise,
(client) media knowledge,
workforce talent, and
• Agency negotiating abilities
• Media – Advertising department
– In-house agency
• Supplier
• Audience
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The Key Players
• Advertiser • The channels of
communication that carry
(client) the message to the audience
• Are also companies or huge
• Agency conglomerates
• Mass media advertising can
• Media be cost effective because the
costs are spread over the
• Supplier large number of people the
ad reaches
• Audience
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The Key Players
• Advertiser • Assist advertisers,
agencies, and the media
(client) in creating and placing
the ads
• Agency • Vendor services are
• Media often cheaper than those
in-house
• Supplier
• Audience
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The Key Players
• The desired audience for the
• Advertiser advertising message
(client) • Data-gathering technology
improves accuracy of
• Agency information about customers
• Advertisers must recognize
• Media the various target audiences
they are talking to and know
as much about them as
• Supplier possible

• Audience
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Types of Advertising
• Brand advertising
• Retail or Local advertising
• Direct-Response advertising
• Business-to-Business advertising
• Institutional advertising
• Nonprofit advertising
• Public Service advertising

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What Makes an Ad Effective?
1. If it creates an impression for a product or
brand
2. If it influences people to respond in some
way
3. If it separates the product or brand from the
competition in the mind of the consumer

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What Makes an Ad Effective?
• Effective advertising Award Shows
messages will achieve • EFFIES, AME, IPA
the desired impact – Judge effectiveness
(objective) on the target
• CLIOS, One Show,
audience
Cannes
– Judge creative ideas
• Not all award-wining
ads are effective

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The Evolution of Advertising
• Age of Print
• Industrial Revolution and Emergence of
Consumer Society
• Modern Advertising Era
• Accountability Era

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The Current Advertising Scene
• Expanded view • Electronic media are
changing the media
• Integrated landscape
• New media are more
Marketing personal and interactive
Communication
• Globalization

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The Current Advertising Scene
• Expanded view • The practice of unifying
all marketing
• Integrated communication tools so
they send a consistent,
Marketing persuasive message
Communication
• Globalization

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The Current Advertising Scene
• Expanded view • Increasing globalization
of marketing programs
• Integrated • Advertisers are moving
into global markets and
Marketing agencies are forming
Communication huge multinational
operations
• Globalization

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