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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 advertising’s role in marketing strategy Explain the difference between consumer and business markets

nonpersonal communication of information. usually persuasive in nature. 3. 5. usually paid for and 4. services. through various media. So if advertising is a form of communication. how does communication work? 3 . the structured and composed 2. by identified sponsors 7. and ideas) 6.Definition of Advertising [text: page 8] Advertising is: 1. about products (goods.

The Communication Model… (the instructor’s version…the text’s version: page 10) Noise SENDER --------------ENCODES message Noise FEEDBACK MEDIUM --------------CARRIES message Noise RECEIVER ---------------DECODES message Noise 4 .

Advertising is a Part of Marketing… “Marketing is the process of planning and executing the conception. distribution. goods. pricing. and services to create exchanges that satisfy the perceived needs.” 5 . wants. and promotion of ideas. 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.

Advertising is a Part of Promotion… Promotion includes: Advertising: paid. nonpersonal messages Public relations: ?? [image-building] Sales promotion: ?? [sales-encouraging] Word-of-mouth: unpaid. nonpersonal messages Personal selling: paid. personal messages 6 . personal messages Publicity: unpaid.

nonprofit. direct mail (DM*). broadcast (electronic). and directory*. institutional*. By medium: print. By geography: local (retail). and branding*. regional. out-of-home (outdoor).Classification of Advertising… (see Exhibit 1-3 on page 17 in the text)     By audience: consumer and business (trade. By purpose: product. agricultural). professional. 7 . action. and international. interactive. national.

 Firms in the future are likely to compete on “the message” as well as on product. price. are tremendous. 8 . The implications.Integrated Marketing Communications (IMC)   The basic idea is simple: have all communication originating from a firm carry a congruent tone and message.  All of the firm’s departments and employees must coordinate and accept “the message”. however. etc.

9 . Every word on this slide is jargon.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 categories—they are NOT in your textbook.

persuade. or attract people to a store.  Sell product in the future*.  Inform.  Direct customers to where they may obtain the product. ads DO NOT sell product—they create an image for a brand.  Create an image for a product or brand. except for direct marketing ads.  10 .Direct Purposes of Advertisements Sell product immediately*. or remind customers * In reality.  Create an image for a company.  Attract customers to a retail location.

Advertising Goals  Conviction  Action   Awareness Comprehension 11 .

Communication Channels Mass Newspapers & Magazines Radio & TV Billboards 12 .

Communication Channels Mass Addressable Direct Mail E-Mail 13 .

Communication Channels Mass Addressable Interactive Billboards Newspapers & Magazines Radio & TV Direct Mail E-Mail Mobile Online 14 .

.Communication Channels Mass Billboards Newspapers & Magazines Radio & TV Addressable Direct Mail E-Mail Tattoos Interactive Mobile Online Blimps Nontraditional Shopping Carts 15 Instructor’s note: Directories are also a major communication channel.

” the imaginary audience Third person persona tells a story about others to imagined audience Characters act in front of imagined empathetic audience 16 Drama .Communication: Message Dimensions Autobiograph y Narrative “I” tell a story about myself to “you.

Message: Drama Drama: Creates a scene so the reader receives the message by implication This Lego ad requires little explanation 17 .

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 18 .

Where Marketing Fits in the Firm Business Functional Divisions Operation s o o Finance & Admin Marketing Defines advertising’s role in business Only marketing has revenue generation as primary role 19 .

Target Markets and Audiences Consumer Markets Retail & Public Service Business/Industrial Markets Trades. Professions. & Agriculture 20 .

Consumer Advertising Tide targets business people who see the benefit of wiping out small stains 21 .

Marketing: The 4 Ps Product Price Place Promotion Categories of goods or services Strategies for competitive pricing Distribution and geography Communication channels 22 .

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. 23 .

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