Chapter 1

What is Advertising Today?

Chapter Objectives
Define advertising Distinguish it from other forms of marketing communications Explain how advertising differs from basic human communication Define marketing Identify the elements of marketing strategy Discuss advertisings role in marketing strategy Explain the difference between consumer and business markets
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Definition of Advertising
[text: page 8]

Advertising is: 1. the structured and composed 2. nonpersonal communication of information, 3. usually paid for and 4. usually persuasive in nature, 5. about products (goods, services, and ideas) 6. by identified sponsors 7. through various media. So if advertising is a form of communication, how does communication work?
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The Communication Model

(the instructors versionthe texts version: page 10)

Noise SENDER --------------ENCODES message Noise FEEDBACK MEDIUM --------------CARRIES message

Noise RECEIVER ---------------DECODES message

Noise
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Advertising is a Part of Marketing

Marketing is the process of planning and executing the conception, pricing, distribution, and promotion of ideas, goods, and services to create exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizations. [text: page 14] --Pre-2005 AMA Or more simply: Marketing is the process of planning the 4 Ps and implementing those decisions to create exchanges that satisfy all parties to the exchange.
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Advertising is a Part of Promotion

Promotion includes: Advertising: paid, nonpersonal messages Personal selling: paid, personal messages Publicity: unpaid, nonpersonal messages Public relations: ?? [image-building] Sales promotion: ?? [sales-encouraging] Word-of-mouth: unpaid, personal messages

Classification of Advertising
(see Exhibit 1-3 on page 17 in the text)

By audience: consumer and business (trade, professional, agricultural). By geography: local (retail), regional, national, and international. By medium: print, broadcast (electronic), out-of-home (outdoor), direct mail (DM*), interactive, and directory*. By purpose: product, institutional*, nonprofit, action, and branding*.
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Integrated Marketing Communications (IMC)

The basic idea is simple: have all communication originating from a firm carry a congruent tone and message. The implications, however, are tremendous. All of the firms departments and employees must coordinate and accept the message. Firms in the future are likely to compete on the message as well as on product, price, etc.
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Marketing: IMC
Integrated Marketing Communication
Collateral Materials Personal Selling Public Relations Sales Product Promotion Advertising People in the Business

Service Business Employee Processes Actions

Physical Evidence

Note: The instructor added the bottom four categoriesthey are NOT in your textbook. Every word on this slide is jargon.
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Direct Purposes of Advertisements

Sell product immediately*. Sell product in the future*. Attract customers to a retail location. Create an image for a company. Direct customers to where they may obtain the product. Create an image for a product or brand. Inform, persuade, or remind customers * In reality, except for direct marketing ads, ads DO NOT sell productthey create an image for a brand, or attract people to a store.

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Advertising Goals
Conviction Action

Awareness Comprehension
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Communication Channels
Mass
Newspapers & Magazines Radio & TV Billboards

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Communication Channels
Mass Addressable
Direct Mail E-Mail

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Communication Channels
Mass Addressable Interactive

Billboards Newspapers & Magazines Radio & TV

Direct Mail E-Mail

Mobile

Online

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Communication Channels
Mass
Billboards Newspapers & Magazines Radio & TV

Addressable
Direct Mail E-Mail Tattoos

Interactive
Mobile Online Blimps

Nontraditional
Shopping Carts

15 Instructors note: Directories are also a major communication channel.

Communication: Message Dimensions

Autobiograph y Narrative I tell a story about myself to you, the imaginary audience Third person persona tells a story about others to imagined audience Characters act in front of imagined empathetic audience
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Drama

Message: Drama
Drama: Creates a scene so the reader receives the message by implication This Lego ad requires little explanation

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Feedback and Interactivity

Redeemed Coupons Phone Inquiries Visits to Web site

Survey Responses

Feedback & Interactivity

Increased Sales Visits to a store

Lets sender know if message is received and understood Sender can tell when communication breaks down
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Where Marketing Fits in the Firm

Business Functional Divisions Operation s
o o

Finance & Admin

Marketing

Defines advertisings role in business Only marketing has revenue generation as primary role
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Target Markets and Audiences

Consumer Markets Retail & Public Service

Business/Industrial Markets Trades, Professions, & Agriculture

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Consumer Advertising
Tide targets business people who see the benefit of wiping out small stains
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Marketing: The 4 Ps
Product Price Place Promotion
Categories of goods or services Strategies for competitive pricing Distribution and geography Communication channels
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Marketing Communications (Marcom)

Types of Marketing Communication

Collateral Materials Personal Selling

Product Advertising Sales Promotion

Public Relations
(Includes publicity)

Every word on this slide is jargon.

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