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intro to ad

  1. 1. Introduction to Advertising CHAPTER 1
  2. 2. Outline <ul><li>The mandate for effectiveness </li></ul><ul><li>What makes an ad effective? </li></ul><ul><li>The world of advertising </li></ul><ul><li>The five players of advertising </li></ul><ul><li>The evolution of advertising </li></ul>
  3. 3. <ul><li>Be able to: </li></ul><ul><li>Discuss the elements of effective advertising </li></ul><ul><li>Define advertising and identify its types and roles </li></ul><ul><li>Identify the five players in the advertising world </li></ul><ul><li>Explain the evolution of the ad industry and the current issues it faces </li></ul>Objectives
  4. 4. The Mandate for Effectiveness <ul><li>Today advertising is in a bind </li></ul><ul><ul><li>A down economy </li></ul></ul><ul><ul><li>Tragedy of 9/11 </li></ul></ul><ul><ul><li>New technologies that threaten how advertising works </li></ul></ul><ul><li>Advertisers expect specific results that lead to sales </li></ul><ul><li>Advertising must be effective </li></ul>
  5. 5. <ul><li>Effective ads work on two levels: with consumers and with advertisers. </li></ul><ul><ul><li>Consumers </li></ul></ul><ul><ul><ul><li>View ads for entertainment or out of curiosity </li></ul></ul></ul><ul><ul><ul><li>May then learn the ad relates to a need </li></ul></ul></ul><ul><ul><ul><li>May receive an incentive to risk change </li></ul></ul></ul><ul><ul><ul><li>May find reinforcement for product decisions </li></ul></ul></ul><ul><ul><li>Advertisers </li></ul></ul><ul><ul><ul><li>Ads must gain consumers’ attention </li></ul></ul></ul><ul><ul><ul><li>Ads must hold attention long enough to change consumer purchasing behavior </li></ul></ul></ul>What Makes an Ad Effective ?
  6. 6. What Makes an Ad Effective ?
  7. 7. Strategy <ul><li>Advertisers develop ads to </li></ul><ul><ul><li>Meet specific objectives </li></ul></ul><ul><ul><li>Target a certain audience </li></ul></ul><ul><ul><li>Speak to that audience’s most important concerns </li></ul></ul><ul><ul><li>Appear in media that will reach the audience most effectively </li></ul></ul>
  8. 8. Creativity <ul><li>The creative concept is the ad’s central idea </li></ul><ul><ul><li>Grabs your attention </li></ul></ul><ul><ul><li>Sticks in your memory </li></ul></ul><ul><li>Creativity drives the entire advertising field </li></ul><ul><ul><li>Planning strategy </li></ul></ul><ul><ul><li>Conducting research </li></ul></ul><ul><ul><li>Buying and placing ads </li></ul></ul>
  9. 9. Execution <ul><li>Effective ads are well-executed </li></ul><ul><ul><li>Details, photos, printing, production values have been finely tuned </li></ul></ul><ul><ul><li>How you say it is as important as what you say </li></ul></ul>
  10. 10. <ul><li>The intended effects of advertising are important for evaluating effectiveness </li></ul><ul><li>These goals include </li></ul><ul><ul><li>Perception </li></ul></ul><ul><ul><ul><li>Will the ad be attended to and remembered? </li></ul></ul></ul><ul><ul><li>Learning </li></ul></ul><ul><ul><ul><li>Will the audience understand the message and make correct associations? </li></ul></ul></ul>Ads Must Be Goal-Directed
  11. 11. <ul><li>These goals include (cont.) </li></ul><ul><ul><li>Persuasion </li></ul></ul><ul><ul><ul><li>Does the ad change attitudes and touch emotions? </li></ul></ul></ul><ul><ul><li>Behavior </li></ul></ul><ul><ul><ul><li>Will the audience try the product? </li></ul></ul></ul>Ads Must Be Goal-Directed
  12. 12. A Model of Key Effects
  13. 13. Message Effectiveness Factors SP; Personal Selling, DM SP; Personal Selling, DM SP; Personal Selling, DM Trial Purchase Repeat purchase, use more Behavior PR, Personal Selling, SP Adv, PR, Personal Selling Personal Selling, Direct Marketing Attitudes: Form or change Emotions and involvement Conviction: belief, commitment Persuasion PR, Personal Selling, DM, Adv Adv, PR, POP Understand Image and association brand links Learning Advertising Media; PR Adv; Sales Promotion Adv; SP; PR Adv; SP; PR Exposure Attention Interest Memory: recognition/recall Perception Communication Tools Surrogate Measures Message Effects
  14. 14. <ul><li>Advertising defined: </li></ul><ul><ul><li>A paid form of communication </li></ul></ul><ul><ul><li>A sponsor is identified </li></ul></ul><ul><ul><li>Tries to persuade or influence the consumer to do something </li></ul></ul><ul><ul><li>Is conveyed through different mass media </li></ul></ul><ul><ul><li>Reaches a large audience of potential consumers </li></ul></ul><ul><ul><li>Is nonpersonal </li></ul></ul>The World of Advertising
  15. 15. <ul><li>Types of Advertising </li></ul><ul><ul><li>Brand advertising: focuses on developing a long-term brand identity and image </li></ul></ul><ul><ul><li>Retail/local advertising: focuses on retailers or manufacturers that sell merchandise in a restricted area </li></ul></ul><ul><ul><li>Political advertising: focuses on politicians attempting to persuade people to vote for them or their ideas </li></ul></ul>The World of Advertising
  16. 16. <ul><li>Types of Advertising (cont.) </li></ul><ul><ul><li>Directory advertising: used by people to find how to buy a product or service </li></ul></ul><ul><ul><li>Direct-response advertising: uses any ad medium to directly stimulate a sale </li></ul></ul><ul><ul><li>Business-to-business advertising: messages directed at retailers, wholesalers, distributors, purchasers and professionals </li></ul></ul>The World of Advertising
  17. 17. <ul><li>Types of Advertising (cont.) </li></ul><ul><ul><li>Institutional advertising: corporate advertising used to establish an identity or influence public opinion </li></ul></ul><ul><ul><li>Public service advertising (PSA): communicates a message for a good cause </li></ul></ul><ul><ul><li>Interactive advertising: delivered to individual consumers who have access to a computer and the Internet </li></ul></ul>The World of Advertising
  18. 18. <ul><li>Marketing role </li></ul><ul><ul><li>Carry persuasive messages to actual/potential customers </li></ul></ul><ul><li>Communication role </li></ul><ul><ul><li>Advertising transmits market information to match buyers and sellers in the marketplace </li></ul></ul>The Roles of Advertising
  19. 19. <ul><li>Economic role </li></ul><ul><ul><li>Advertising may make consumers less price sensitive, or </li></ul></ul><ul><ul><li>Advertising may help consumers better assess value </li></ul></ul><ul><li>Societal role </li></ul><ul><ul><li>Ads inform about new products, help consumers compare products, mirror fashion, influence taste </li></ul></ul>The Roles of Advertising ( cont .)
  20. 20. Functions of Advertising <ul><li>Advertising can function to: </li></ul><ul><ul><li>Provide product and brand information </li></ul></ul><ul><ul><li>Provide incentives to take action </li></ul></ul><ul><ul><li>Provide reminders and reinforcement </li></ul></ul>
  21. 21. <ul><li>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). </li></ul><ul><li>Does this approach fulfill the three basic functions of advertising? </li></ul><ul><li>How are the four major roles of advertising influenced by this approach? </li></ul>Questions for Discussion
  22. 22. <ul><li>Advertiser </li></ul><ul><ul><li>Organization that needs to advertise </li></ul></ul><ul><li>Advertising agency </li></ul><ul><ul><li>Firms that plan and implement advertising efforts </li></ul></ul><ul><li>Media </li></ul><ul><ul><li>Channels that carry the message from advertiser to audience </li></ul></ul>The Five Players of Advertising
  23. 23. <ul><li>Vendors </li></ul><ul><ul><li>Service people/organizations that assist advertisers, agencies, and media </li></ul></ul><ul><li>Target audience </li></ul>The Five Players of Advertising
  24. 24. <ul><li>Age of print </li></ul><ul><ul><li>Ads were primarily classified in format </li></ul></ul><ul><li>Industrial revolution and emergence of consumer society </li></ul><ul><ul><li>Social and technological developments led to growth in importance and size of advertising </li></ul></ul>The Evolution of Advertising
  25. 25. <ul><li>Modern advertising: Agencies, science and creativity </li></ul><ul><ul><li>Ad industry grew to $500 million in billings </li></ul></ul><ul><li>Accountability era </li></ul><ul><ul><li>Clients demand results </li></ul></ul><ul><ul><li>Agencies linked to global business environment </li></ul></ul>The Evolution of Advertising ( cont .)
  26. 26. <ul><li>Interactive advertising </li></ul><ul><ul><li>Will technology change the face of advertising? </li></ul></ul><ul><ul><li>Is the promise of technology exaggerated? </li></ul></ul><ul><ul><li>Implications of the failure of banner ads </li></ul></ul>Current Advertising Issues
  27. 27. <ul><li>Integrated marketing communications (IMC) </li></ul><ul><ul><li>Unifying all marketing communications tools to send a consistent persuasive message </li></ul></ul><ul><li>Consumer Power </li></ul><ul><ul><li>Technology has given consumers greater leverage </li></ul></ul>Current Advertising Issues
  28. 28. <ul><li>Globalization </li></ul><ul><ul><li>Trade barriers have fallen in Europe </li></ul></ul><ul><ul><li>Formerly communist nations have partially opened markets </li></ul></ul><ul><ul><li>Should advertisers practice global or local advertising? </li></ul></ul><ul><li>Niche marketing </li></ul><ul><ul><li>Advertisers target market segments </li></ul></ul><ul><ul><li>New technologies make targeting groups possible </li></ul></ul>Current Advertising Issues
  29. 29. <ul><li>Critics charge advertising manipulates its audience, while supporters claim advertising seeks to persuade </li></ul><ul><li>Which interpretation do you agree with? </li></ul><ul><li>Why? </li></ul>Questions for Discussion