Introduction to

Advertising

Prentice Hall, © 2009

 WHAT IS ADVERTISING?

Defining Modern Advertising

• A complex form of communication using
objectives and strategies to impact
consumer thoughts, feelings, and actions.
• A form of marketing communication (all
the techniques marketers use to reach their
customers and deliver their messages).

Prentice Hall, © 2009 1-2

Defining Modern Advertising
Five Basic Factors of Advertising
1. Paid communication
2. Sponsor is identified
3. Tries to inform or persuade
4. Reaches a large audience
5. Message conveyed through many different kinds
of largely nonpersonal mass media

Principle:
An effective advertisement is one that can
be proven to meet its objectives.

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Four Components of Advertising

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 Four Components of
Advertising
1. Advertising Strategy
• The strategy is the logic
and planning behind the
ad that gives it direction.
• Advertisers develop ads
to meet objectives.
• Advertisers direct ads to
identified audiences.
• Advertisers create a
message that speaks to
the audience’s concerns.
• Advertisers run ads in
the most effective media.
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 Four Components of
Advertising
2. Creative Idea
• The creative concept is the
central idea that grabs the
consumer’s attention and
sticks in memory.
• Planning strategy requires
creative problem solving.
• Research involves
creativity.
• Buying and placing ads
requires creative thinking.

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 Four Components of
Advertising
3. Creative Execution
• Effective ads are well
executed reflecting the
highest production values
in the industry.
• Clients demand the best
production the budget
allows.

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 Four Components of
Advertising
4. Media Planning/Buying
• Television, Internet,
magazines, and other
media are used to reach a
broad audience.
• Deciding how to deliver
the message requires
creativity.
Principle:
In advertising how you say something and
where you say it is just as important as what
you say.
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 Four Roles of Advertising
1. The Marketing Role
• Marketing is satisfying customer wants and needs
by providing products (goods, services, and
ideas).
• The marketing department is responsible for
selling the product using the 4 Ps (product, price,
place/distribution, and promotion) and brand
development.

Principle:
A product can be services and
ideas as well as goods.
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 Four Roles of Advertising
2. The Communication Role
• Advertising is a message to a consumer about a
product, designed to create a response.
• It is also a form of marketing communication.
• Advertising uses mass communication to transmit
product information to connect buyers and sellers
in them marketplace.

Principle:
One of advertising’s most important strengths is
its ability to reach a large audience.

Prentice Hall, © 2009 1-10

Table 1.1 The Strengths of Advertising

Strengths Examples

Can reach a large audience A commercial in the Super Bowl can reach
more than 100 million consumers.

Introduces products and brands The “1984” commercial for the Apple McIntosh
sold out the entire inventory in one day.

Builds awareness of products The success of the launch of the iPod was due
and brands in part to the great silhouette posters that
showed people dancing to the music on their
iPods.

Creates brand images The success of the new VW Beetle was

largely built on its ability to connect with the
anti-status image of the original “lowly” Beetle.

Provides information The truth® campaign informs teens that

“Tobacco kills 1,200 people a day.”

Reminds and reinforces Procter & Gamble’s Ivory Soap has been
advertised continuously since the late 1800s.

Persuades Nike campaigns, with the “Just do it” personal

achievement message, have helped increase
sales by 300 percent during the 1990s.

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 Four Roles of Advertising
3. The Economic Role
• Because it reaches large groups of people,
advertising makes marketing more cost-efficient
and lowers prices for consumers.
• Advertising creates a demand for a brand using
hard sell (persuading) and soft sell (image
building) techniques.

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 The Economic Role

By focusing on images and emotional

responses, advertising encourages consumers
to make decisions based on nonprice benefits.

Advertising is a means to objectively

provide price-value information,
creating a more rational economy.

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 Four Roles of Advertising
4. The Societal Role
• Informs consumers about
innovations and issues
• Helps us compare products and
features
• Mirrors fashion and design trends
• Teaches consumers about new
products and how to use them
• Helps shape consumer self-image
• Facilitates self-expression
through purchases
• Presents images about diversity in
our world
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 Types of Advertising
• Brand Advertising
– Focused on long-term brand
identity and image
• Retail or Local Advertising
– Focused on selling merchandise
in a geographical area
• Direct Response Advertising
– Tries to stimulate a sale directly
• Business-to-Business
– Sent from one business to another

Principle:
All types of advertising demand creative, original
messages that are strategically sound and well executed.

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 Types of Advertising
• Institutional Advertising
– Focused on establishing a
corporate identity or winning
the public over to the
organization’s point of view
• Nonprofit Advertising
– Used by nonprofits like
charities, associations,
hospitals, orchestras, museums,
and churches for customer,
members, volunteers, and
donors
• Public Service Advertising
– Usually produced and run for
free on behalf of a good cause

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The Key Players: the Advertiser
• Wants to send out a
message about its business
• Initiates effort by
identifying a problem that
advertising can solve
• Selects the target audience,
sets the budget, and
approves the ad plan
• Hires the agency
– Agency of record (AOR)
does the most business;
manages other agencies
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 Key Players: Agency
• Agencies have the strategic and creative expertise,
media knowledge, talent, and negotiating abilities
to operate more efficiently than the advertiser.
• Some large advertisers have in-house departments.

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 Key Players: Media
• Media are channels of communication that
carry the message to the audience
• They’re vehicles, but also large media
conglomerates like Time Warner and
Viacom.

Principle:
Mass media advertising can be cost effective
because the costs are spread over the large
number of people the ad reaches.

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 Key Players: Suppliers
• Group of service organizations that assist
advertisers, agencies, and the media in creating
and placing ads by providing specialized services
• Artists, writers, photographers, directors,
producers, printers, freelancers, and consultants

Insert

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Key Players: Target Audiences
• People to whom an ad is
directed—their responses
determine if advertising is
effective.
• Targeting is the process of
identifying the people in
the desired audience.
• Interactive technology
allows ads to be
Insert
customized to the target
audience’s individual
needs.

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 Current Developments
The New Advertising
• Electronic media are making advertising
more intimate, interactive, and personalized.
• Advertising must evolve to keep up with
technology.
• Creativity involves more than just the ad’s
big idea, but finding new ways to engage
consumers beyond traditional mass media.

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 Current Developments
Interactivity
• Buzz is getting people to talk about the
event, idea or brand.
• People contact companies by phone, the
Internet, and through friends.
• Advertising must change to also become
more interactive.

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 Current Developments
Integrated Marketing Communication (IMC)
• IMC means unifying all marketing
communication messages and tools to send a
consistent, persuasive message promoting the
brand’s goals.
• Stakeholders are also important in IMC.
• Synergy means messages have more impact
working jointly than on their own.

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 Current Developments
Globalization
• The elimination of trade barriers in the
1990s opened huge international markets.
• Agencies are forming multinational
operations to to address these markets.
• Should advertisers practice local or global
advertising?

Video Snippet
Harley-Davidson talks
about the foundation of a
Prentice Hall, © 2009 global marketing strategy. 1-25
 Current Developments
What makes an ad effective?
• Gets attention
• Creates a positive impression for a brand
• Separates the brand from the competition
• Influences people to respond in the desired way

Principle:
An ad that works—that is effective—is one
where the target audience responds as the
advertiser intended.

Prentice Hall, © 2009 1-26

advertising and the marketing process
what is marketing?
... is a social and managerial process by which
individuals and groups obtain what they need
and want through creating and exchanging
values with others.
the marketing plan - stages
Research Stage
Strategic Stage
Tactical Stage
Implemental Stage
Evaluation Stage
ADVERTISING IS JUST THE TIP OF THE
ICEBERG !!!
Research Stage Strategic Stage Tactical Stage

Environmental Determine
Assessment Objectives Communication Price

Strategic
Consumer Distribution Product
Decisions
Assessment Mark. Mix

Creative & Timing/Size

Sales
Response PR POS
Promotion
Evaluation Creative
Dec.
PS ADVERTISING DM
REVISION.
Media Dec.

Implementation
Evaluation Stage
Stage
types of markets
• Consumer
• B2B
• Institutional
• Reseller
approaching the market …
• undifferentiated VS segmentation approaches
• product differentiation
• positioning
the 4 Ps of Marketing
• Product : • Promotion :
▫ Design & Development – Personal Selling
▫ Branding – Advertising
▫ Packaging
– Sales Promotion
▫ Maintenance
• Price – Direct Marketing
▫ Price copy – Marketing PR
▫ Psychological Pricing – POS
▫ Price Lining • People
▫ Value Determination – Motivation
• Placement
– Knowledge
▫ Distribution Channels
▫ Market Coverage • Performance
▫ Storage – ROI
the consumer audience
why consumer behaviour
• Information about consumers today may not be
correct tomorrow

• Consumers are affected by internal & external

influences

• Every pattern of behaviour has exceptions

target market: consumer decision process
• Social/Cultural Differences
▫ Culture
▫ Social Class
▫ Reference Groups
▫ Family
• The Decision Process
▫ Need Recognition
▫ Information Search
▫ Evaluative Alternatives
▫ Purchase Decision
▫ Post-purchase Evaluation
• Psychological Influences
– Demographics
– Age, Gender
– Education, Occupation
– Income, Ethnicity
– Geographic Location
– Perception
Selective Attention: attention to fewer
stimulations
Selective Retention: retention of related stimulis
Selective Distortion: Useless Information
– Learning
– Motivation & Needs
– Attitudes, Personality
– Lifestyles & Psychographics
account planning & research
 Exploratory

Strategic Creative

Advertising Media
Research
Before
Execution
Evaluative
After
Execution
strategic research
• … is an information gathering process that
enhances the design of a creative strategy

▫ Secondary Research: available resources

▫ Primary Research: customized research
outcome of a strategic research
• Strategy Document or Creative Brief
▫ Marketing Objective: campaign goal
▫ The Product: reactions or perceptions to the prod.
▫ The Target Audience: who to communicate
▫ Promise & Support
▫ Brand Personality
... strategy research … kinds
• diagnostic research: throwing out ideas and discussion
• early feedback
• contact methods
• survey research: structured questionnaire
• observation research
• cognitive psychology & Use of Metaphor
• content analysis: what is the competitor doing and how
can we do it better
• in-depth interviews: one-on-one
• focus groups
evaluative research
• whether the advertising worked ?
▫ Pre-launch
▫ Post-launch
evaluative research … kinds
• Memory Tests
▫ Recall Tests: (aided & unaided)
▫ Recognition Tests

• Persuasion Test
Ask about buying a specific product

Show Advertisement about product

Ask about purchase decision again

evaluative research … kinds
• Direct Response Counts
• Communication Tests:
Intended Message Delivered?

Not intended message delivered?

Target audience reactions to the

message

• Frame by Frame, In-Market Test, Brand

Tracking
how advertising works !
The message reception …
• the intended message is not always received
• One may also form a favourable or unfavourable
response to it
5 basic psychological categories
• Perception
• Awareness
• Understanding
• Persuasion
• Memorability
Perception: creating stopping power
• When a person perceives something, the
message has registered

▫ Exposure
▫ Attention: engaging minds
▫ Stopping Power: nailing attention
Awareness: Making An Impression
• ... means that the message has made an
impression on the viewer or reader, who can
subsequently identify the advertiser

▫ Attention: message design problem. Attention is

obtained by providing relevance, information and
involvement
 Copy:

Adopt. You will

receive than you can
ever give.
Awareness: Making An Impression
▫ Relevance: “make it worth my time and I’ll pay
attention to your message as long as it doesn’t
bore me”

▫ Interest: usually created by one of two things:

personal involvement or curiosity. Its also
momentary; it dies easily as attention shifts

▫ Involvement:
understanding: making it clear
• particularly important for ads that present a lot
of information being presented.

▫ Teaching, Learning, Knowing

▫ Association: e.g. Coca Cola & Food
Persuasion: attitude change & trial
• … a persuasive message tries to establish,
reinforce, or change an attitude, build an
argument, touch an emotion, or anchor a
conviction firmly in the potential customer’s
belief structure
Persuasion: attitude change & trial
• Appeals
• Attitudes & opinions
• Likability
• Arguments
• Emotions

• Conviction leads to trial

• retrial
Memorability: Locking Power
• Vampire Creativity: what was the product ?

• Repetition: something like repeating jingles;

taglines & slogans too

• Key Visual
how brand works …
• Brand Image: mental image that reflects the way
consumers perceive the brand
▫ Physical characteristics: logo, color, etc.
▫ Psychological characteristics: emotional
attachment
• Promise
• Building on Brand Equity: consistency over a
period of time
advertising planning & strategy
what is strategic planning?
• … it is the process of determining:
▫ objectives (what you want to accomplish)
▫ deciding strategies (how to accomplish obj.) &
▫ implementing tactics (which makes the plan come
to life)
 the marketing plan

Selecting Identify Select Develop Design Execute

Marketing Threats & Target Marketing Action Plans
Objectives Opportunities Markets Strategies Plans

Measure
Results/
Actions
 Advertising Planning and Decision Making

Situation Consumer/Market Analysis

Analysis Competitive Analysis

Role of Advertising, Sales

Marketing Force, Price, Promotion, Public
Program Relations

The Objectives/Segmentation/Positioning
Communication/ Advertising Message Strategy and Tactics
Persuasion Plan Media Strategy and Tactics
Process

“Facilitating” Agencies
Implementation Social and Legal Constraints

65
Typical Advertising or Campaign Plan Outline

I. Introduction
• Executive Summary or Overview is provided.
II. Situation Analysis
• Advertising Problems
• Advertising Opportunities
III. Key Strategy Decisions
• Advertising Objectives
• Target Audience
• Competitive Product Advantage
• Product Image and Personality
• Product Position

66
Typical Advertising or Campaign Plan Outline

IV. The Creative Plan

V. The Media Plan
VI. The Communication Plan
• Sales promotion
• Public relations
• Direct marketing
• Personal selling
• Sponsorships, merchandising, packaging, etc.
VII. Implementation and Evaluation
VIII. Evaluation
IX. Budget
 68

Situation Analysis
• Opportunity analysis: to spot and capitalize
on favorable demand trends
▫ examples of such trends
• Competitive analysis: to achieve and
maintain a “competitive advantage”
▫ examples of competitive advantages
• Target market selection
▫ examples of target marketing
• ==> Marketing plan (4Ps)
 69

Creative Platform & Message Strategy

• Creative platform is a document that outlines
the message strategy decisions for an individual
ad.
• Creative platforms combine the basic advertising
decisions – problems, objectives, and target
markets – with the critical elements of the sales
message strategy – main idea and details about
how the idea will be executed.
 70

Selling Premises
Advertisements that focus on the product
Product itself by looking at attributes.

Product is promoted on the basis of what

Benefit it can do for customers.

Promises that something will happen if

Promises you use the advertised product.

Based on logic and reasoning and clearly

Reason Why states a reason for the benefit gained.

Unique Selling A benefit statement that is both unique to

Proposition the product and important to the user.

Support Lends credibility to the selling premise.

 71

Setting Objectives
• Why set objectives?:
-- Planning and decision making
-- Communication
-- Measurement and evaluation
• Sales vs. Communication objectives
-- Problems with sales objectives
 When sales objectives are appropriate
-- Challenges with communication objectives
 72

Factors Related to Success of Advertising for New

Products

1.Communicating that something is

different about the product. Successful
introductory commercials communicated some point
of difference for the new product
2.Positioning the brand difference in
relation to the product category.
Successful commercials positioned their brand’s
difference within a specific product category. For
example, a new breakfast product was positioned as
the “Crispiest cereal”or a new beverage as the
“smoothest soft drink.”
 73

Factors Related to Success of Advertising for New Products

3.Communicating that the product

difference is beneficial to consumers.
Nearly all of the successful commercials linked a
benefit directly to the new product’s difference.
4.Supporting the idea that something
about the product is different and/or
beneficial to consumers. All the successful
commercials communicated support for the product’s
difference claim or its relevance to consumers.
Support took the form of demonstrations of
performance, information supporting a uniqueness
claim, endorsements, or testimonials.
 74

The Advertising Budgeting Methods

• Common budgeting method.
Historical Method • May be based on last year’s
with a percentage increase.
• Nothing to do with
advertising objectives.

Bottom-Up • Most common method.

Task-Objective Method: • Looks at objectives set for
each activity, and determines
the cost of accomplishing
each objective.

Method
• Compares total sales with the
Percentage-of-Sales total advertising (or
marketing communication)
budget during a previous time
period to compute a
percentage.
 75

The Advertising Budgeting Methods

Competitive Methods • Relates the amount invested
in advertising to the product’s
share of market.
• Must understand share-of-
mind.

Method • Allocates whatever is left over

All You Can Afford to advertising.
• Companies who use this don’t
value advertising very much.
media strategy
What is Media Planning?
• Media planning is the way advertisers identify
and select media options based on research into
the audience profiles of various media; planning
also includes scheduling and budgeting
What is Media Buying?
• Media buying is the task of identifying specific
vehicles, such as TV programs or Web sites,
negotiating the costs to advertise in them, and
handling the details of billing and payment
A good Media Plan
• Should include the media objectives and strategy
and factor in the marketing and advertising
objectives
• Factor in competitive activity
• Based on sound rationale - quantitative and
qualitative judgment
• Best ‘Media Mix’
• Address ‘Reach’
A good Media Plan
• Address ‘Frequency’
• Geographical regions
• Avoid wastage - places where product is not
available
• Optimum budget and allocation
• Scheduling
• Flow chart of all major actions
Sources of Media information
• Gallup (Diary System)
• People’s Meters
• Industry Sources (informative but unsure)
Choosing Media: Steps
• Deciding on Reach & Frequency
• Choosing among major media types
• Selecting specific media vehicles
• Deciding timing
• Deciding geographical media allocation
Reach
• Reach is the percentage of the media audience
exposed at least once to the advertiser’s message
during a specific time frame
Frequency
• Frequency is the number of times a person is
exposed to the advertisement during the specific
time frame
Reach & Frequency
• Reach is important when launching new
products or infrequently purchased brands
• Frequency is important where there are strong
competitors, a complex story to tell, high
consumer resistance or a frequent purchase
cycle
Impressions/Exposures
• In print media: Circulation x no. of readers per
issue = Actual readership
• TV/Radio: No. of households reached x no. of
viewers per household
• Gross impressions are the sum of the audiences
of all the media vehicles used during a certain
span of time
GRP
• Total audience delivery or weight of a specific
media schedule is counted by calculating the
total number of impressions
• Gross Ratings Points: Reach x Frequency
Choosing among major media types
• Target audience media habits
• Product characteristics
• Message characteristics
• Cost per thousand people reached (Print): Cost
of ad space/Estimated TA reached x 1000
• Cost per rating point (TV): Cost of commercial
time/Programme rating
Selecting specific vehicles
• Circulation: Number of copies sold or
distributed by a newspaper or periodical (ABC)
• Readership: Circulation x Average no. of readers
per newspaper
Selecting specific vehicles
• Viewership: No. of people who watch a given
programme on TV
• Listenership: No. of people who listen to a given
programme on radio
Scheduling: New Product launch
• Continuity: Evenly scheduled exposures during a
given period (Expanding markets and frequently
purchased)
• Concentration: Spend all the budget in a given
period (Seasonal products)
Scheduling: New Product launch
• Flighting: Advertising for a period followed by
no advertising (Limited budget)
• Pulsing: Continuous with low-weight levels
reinforced by heavy activity
Chapter 11
The Creative Side of Advertising

93
 94

What is Creative Advertising?

• Advertising tries to deliver the right message to the
right person at the right time and must have:
▫ Relevance – ideas have to mean something important
to the audience.
▫ Originality – one of a kind ideas that only one person
thinks of.
▫ Impact – a commercial with impact has the stopping
power that comes from an intriguing idea, something you
have never thought about before.
• This creativity leads to a Big Idea, which
expresses an original advertising thought, and
involves a mind shift.
 95

The Creative Concept

Creative
Strategy Concept Relevance
Message that
is Attention-
Getting and
Memorable & Originality
Serves as an
Umbrella for
Creativity a Series of
Ads in a Impact
Campaign
 96

Creative Pyramid

5. Action
5. Action
4. Desire
3.4.Credibility
Desire
3.2.Credibility
Interest
2. Interest
1. Awareness

1. Awareness
 97

Creating Original Ideas

• To create an original and unexpected idea, use the
following techniques:
▫ An unexpected twist.
▫ An unexpected association.
▫ Catchy phrasing.
▫ A play on words.
▫ Analogy and metaphor.
▫ Familiar and strange.
• To prevent unoriginal ideas, avoid the following:
▫ The common.
▫ The look-alike.
▫ Clichés and tasteless ideas.
 98

Advertising Execution
• Straight sell or factual message
• Scientific/technical evidence
• Demonstration
• Comparison
• Testimonial
• Slice of Life
 99

Advertising Execution (cont.)

• Animation
• Personality symbol
• Fantasy
• Dramatization
• Humor
• Combinations
 100

Words and Pictures

• Advertisers often use words in five situations:
▫ If the message is complicated.
▫ If the ad is for a high-involvement product.
▫ If the information needs definition and explanation.
▫ If a message tries to convey abstract qualities (such as
justice and quality).
▫ Slogans and jingles help lock in key phrases that cue a
brand image or remind of a brand feature.
 High Tolerance
For Ambiguity
Self-Disciplined Risk Takers
Internally Driven
Persistent Ego
Person
a Creative Alert, Watchful,
Self-Sufficient Characteristics of & Observant
Personal
Uses Intuition As
Self-Assertive Much as Logic
Good Sense of
Independent Humor
.
101
 102

The Psychological Impact of Color

RED—Symbol for Blue—Exudes
Blood and fire. High decisiveness. Can use
action and masculine with foods. Emotes
appeal. Can use with coolness (of temperature
some foods and attitude).
Brown—Symbol for Orange—Most
earth, woods,age, “edible” color, good
warmth, and comfort. with most foods.
Can use with most Evokes “autumn” and
products. warmth.
Yellow—Associated Black—Conveys
with exuberance. Eye
catching. Can use sophistication (fashion,
with some foods, technology). Seldom
particularly fruit used with foods. Eye-
catching contrast.
Green—Symbol for
health and freshness. Can
use with some foods,
particularly mint.