Introducti on to Advertisin g

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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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Objectives
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

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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What Makes an Ad Effective?
• 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
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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

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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 wellexecuted
– Details, photos, printing, production values have been finely tuned – How you say it is as important as what you say

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Ads Must Be Goal-Directed
• 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?

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Ads Must Be Goal-Directed
• These goals include (cont.)
– Persuasion
• Does the ad change attitudes and touch emotions?

– Behavior
• Will the audience try the product?

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A Model of Key Effects

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Message Effectiveness Factors
Message Effects Perception Surrogate Measures
Exposure Attention Interest Memory: recognition/recall Understand Image and association brand links Attitudes: Form or change Emotions and involvement Conviction: belief, commitment Trial Purchase Repeat purchase, use more

Communication Tools
Advertising Media; PR Adv; Sales Promotion Adv; SP; PR Adv; SP; PR PR, Personal Selling, DM, Adv Adv, PR, POP PR, Personal Selling, SP Adv, PR, Personal Selling Personal Selling, Direct Marketing SP; Personal Selling, DM SP; Personal Selling, DM SP; Personal Selling, DM

Learning Persuasion

Behavior

Chapter 1: Introduction to Advertising

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The World of Advertising
• 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
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The World of Advertising
• 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
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The World of Advertising
• 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
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The World of Advertising
• 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
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The Roles of Advertising
• Marketing role
– Carry persuasive messages to actual/potential customers

• Communication role
– Advertising transmits market information to match buyers and sellers in the marketplace

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The Roles of Advertising (cont.)
• 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

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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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Questions for Discussion
• 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?

Chapter 1: Introduction to Advertising

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The Five Players of Advertising
• 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

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The Five Players of Advertising
• Vendors
– Service people/organizations that assist advertisers, agencies, and media

• Target audience

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The Evolution of Advertising
• 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

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The Evolution of Advertising (cont.)
• 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
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Current Advertising Issues
• Interactive advertising
– Will technology change the face of advertising? – Is the promise of technology exaggerated? – Implications of the failure of banner ads

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Current Advertising Issues
• Integrated marketing communications (IMC)
– Unifying all marketing communications tools to send a consistent persuasive message

• Consumer Power
– Technology has given consumers greater leverage

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Current Advertising Issues
• 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
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Questions for Discussion
• Critics charge advertising manipulates its audience, while supporters claim advertising seeks to persuade • Which interpretation do you agree with? • Why?

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