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  1. 1. Advertising A welcome to Advertising for 2 nd year students. Instructor: Mr. Bill Land
  2. 2. Advertising Today’s Lesson <ul><li>Course Outline </li></ul><ul><li>Course Description and introductory questions </li></ul><ul><li>Advertisements </li></ul><ul><li>Advertising in Context </li></ul><ul><li>Brand and Marketing Mix </li></ul><ul><li>Role of advertising </li></ul><ul><li>Integrated communications </li></ul><ul><li>Summary and Discussion </li></ul>
  3. 3. Course Outline <ul><li>Module Code: MAR34-2 </li></ul><ul><li>Module Name:Advertising: Theory and Practice </li></ul><ul><li>Level and Section:2 </li></ul><ul><li> </li></ul><ul><li>Instructor’s Name: Bill Land </li></ul><ul><li>Office Location: CAU </li></ul><ul><li>Appointment Procedures: Please email 1 day in advance. Office hours will be announced later. </li></ul>
  4. 4. Course Outline <ul><li>Description and Rationale </li></ul><ul><li>Although advertising is an accepted part of every day life, there is still great debate as to how advertising works and the role it can and should perform within the marketing communication mix. This module enables the applicants to review this debate and apply the theories to the advertising in our media today. They will learn how to put together an advertising plan and will examine the ingredients of an effective advertisement and ways in which this effectiveness can be measured. </li></ul>
  5. 5. Aims and Objectives <ul><li>To gain an understanding of the role of advertising within the Marketing Communications Mix </li></ul><ul><li>To examine communication and advertising theories and their relationship with consumer behavior </li></ul><ul><li>To develop knowledge of advertising strategy and planning </li></ul><ul><li>To examine the importance and uses of creativity in advertising </li></ul><ul><li>To gain an understanding of various production techniques </li></ul><ul><li>To appreciate the complexities of evaluation </li></ul>
  6. 6. Learning Outcomes <ul><li>The applicants will be able to: </li></ul><ul><li>Identify the role of advertising within the Marketing Communications Mix </li></ul><ul><li>Analyze advertisements in terms of creativity and execution </li></ul><ul><li>Create advertising objectives and put together a plan to meet these objectives </li></ul><ul><li>Examine marketing data, using appropriate techniques, and use the information to establish and solve marketing communication problems </li></ul><ul><li>Understand the techniques and procedures involved with advertisement production </li></ul><ul><li>Put together testing procedures for the evaluation of advertisements </li></ul>
  7. 7. Grading Format in Details <ul><li>Class attendance 10% </li></ul><ul><li>Presentation and assignment 30% </li></ul><ul><li>Mid-term exam 20% </li></ul><ul><li>Final exam 40% </li></ul>
  8. 8. Outline Teaching Schedule <ul><li>Week1: chapter 1/2 </li></ul><ul><li>Week 2:chapter 3/4 </li></ul><ul><li>Week 3:chapter 4/5 </li></ul><ul><li>Week 4:chapter 6/7 </li></ul><ul><li>Week 5: chapter 7/8 </li></ul><ul><li>Week 6: Mid-term Exam, chapter 8 </li></ul><ul><li>Week 7: chapter 9/10 </li></ul><ul><li>Week 8:chapter 11/12/13/14 </li></ul><ul><li>Week 9: chapter 15/17* </li></ul><ul><li>Week 10: chapter 18/19/Review </li></ul><ul><li>Week 11: labour day holiday </li></ul><ul><li>Week12: Final exam </li></ul><ul><li>*Chapter 16 will be covered time permitting </li></ul>
  9. 9. Required and Optional Textbooks other Course Materials or Resources Related <ul><li>Essential Reading: </li></ul><ul><li>White, R, Advertising, Fourth Edition, London </li></ul><ul><li>Recommended Reading: </li></ul><ul><li>To be given at a later date </li></ul><ul><li>Journals: </li></ul><ul><li>国际广告 国际广告杂志社 </li></ul><ul><li>(international advertising – Chinese journal ) </li></ul><ul><li>Asia Pacific Business Review </li></ul><ul><li>Columbia Journal of World Business </li></ul><ul><li>European Business Journal </li></ul><ul><li>Harvard Business Review </li></ul><ul><li>International Business Review </li></ul><ul><li>International Journal of Organisational Behaviour </li></ul><ul><li>International Small Business Journal </li></ul><ul><li>Journal of Asia Pacific Business </li></ul><ul><li>Journal of Business Journal of Business Research </li></ul><ul><li>Journal of International Business Studies </li></ul><ul><li>Journal of International Management </li></ul><ul><li>Journal of World Business </li></ul><ul><li>Journal of World Trade </li></ul><ul><li>Journal of East West Business </li></ul><ul><li>Thunderbird International Business Review </li></ul>
  10. 10. Course Description <ul><li>Although advertising is an accepted part of every day life, there is still great debate as to how advertising works and the role it can and should perform within the marketing communication mix. This module enables the applicants to review this debate and apply the theories to the advertising in our media today. They will learn how to put together an advertising plan and will examine the ingredients of an effective advertisement and ways in which this effectiveness can be measured </li></ul>
  11. 11. Advertisements <ul><li>Advertisements are not just advertising. </li></ul><ul><li>Def’n: a) To describe the process of using advertisements to sell things </li></ul><ul><li>B) to refer to the industry that produces the ads. </li></ul>
  12. 12. Advertisements <ul><li>‘ above – the-line’ – advertising in the media </li></ul><ul><li>‘ Below – the – line’ – point of sale messages </li></ul>
  13. 13. advertisements <ul><li>What is an advertisement? </li></ul>
  14. 14. Advertising <ul><li>Anything that calls attention to a product or service </li></ul><ul><li>Examples: - TV commercial </li></ul><ul><li>Newspaper/magazine ad </li></ul><ul><li>Poster </li></ul><ul><li>Clothing </li></ul><ul><li>Cigarette lighter, …. </li></ul>
  15. 15. Advertising in Context <ul><li>Who engages in advertising? </li></ul><ul><li>Businesses, governments, and individuals. </li></ul>
  16. 16. Advertising in context <ul><li>Media advertising is becoming less, rather than more, important in the overall scheme of marketing communications. </li></ul><ul><li>Chapter 13 will show us that this is not necessarily for good reasons but it is a fact. </li></ul>
  17. 17. Advertising in context <ul><li>Fast-moving consumer goods (fmcg) </li></ul><ul><li>Key factor </li></ul><ul><li>- weekly feedback </li></ul><ul><li>Short term results from sales promotion </li></ul><ul><li>Budgets shift to below-the-line </li></ul><ul><li>Ie: various types of price cutting </li></ul>
  18. 18. Advertising in context <ul><li>This can actually lead to an increase in the price elasticity of brands </li></ul><ul><li>- therefore self-defeating </li></ul><ul><li>In long run – consistent media advertising can build the strength of a brand. </li></ul>
  19. 19. Brand and Marketing mix <ul><li>What is a Brand? </li></ul><ul><li>It is a product whose producer has made every effert to make it uniquely desirable to potential buyers, consistently using every element in its presentation to do so. </li></ul>
  20. 20. Brand and Marketing mix <ul><li>Why do companies do this? </li></ul><ul><li>If done well, it makes the brand difficult to compete against. It develops an aura making it appear better than its competition. </li></ul>
  21. 21. Brand and Marketing mix <ul><li>A brand is created by all the elements of the marketing mix working together. </li></ul><ul><li>Creates a positive prejudice in people’s minds. </li></ul>
  22. 22. Brand and Marketing mix <ul><li>Def’n – Marketing Mix: a range of tools and techniques that allows businesses to provide customers with what they want. It acts as a conduit for consumer demand to reach businesses. Thusly, turning this demand into profitable sales. </li></ul>
  23. 23. Brand and Marketing mix <ul><li>These tools include: </li></ul><ul><li>Product formulation and variation </li></ul><ul><li>Packaging </li></ul><ul><li>Sales literature </li></ul><ul><li>The sales force </li></ul><ul><li>Pricing </li></ul><ul><li>Sales promotion </li></ul><ul><li>Direct mail </li></ul><ul><li>Advertising </li></ul><ul><li>Market research </li></ul><ul><li>Branding </li></ul>
  24. 24. Brand and Marketing mix <ul><li>Components of the marketing mix </li></ul><ul><li>Net sales value </li></ul><ul><li>Costs and contribution </li></ul><ul><li>The marketing mix </li></ul>
  25. 25. Net sales value <ul><li>Gross margin </li></ul><ul><li>Cost of goods </li></ul><ul><li>Materials </li></ul><ul><li>Packaging </li></ul><ul><li>Manufacturing </li></ul>
  26. 26. Costs and contribution <ul><li>Operating contribution </li></ul><ul><li>Selling costs (the marketing mix) </li></ul><ul><li>Sales </li></ul><ul><li>Distribution </li></ul><ul><li>Communications </li></ul><ul><li>Research </li></ul>
  27. 27. The marketing mix <ul><li>Sales and distribution costs </li></ul><ul><li>The communications mix </li></ul><ul><li>Advertising </li></ul><ul><li>PR </li></ul><ul><li>Direct marketing </li></ul><ul><li>Promotions </li></ul><ul><li>Exhibitions </li></ul><ul><li>Etc. </li></ul>
  28. 28. Role of Advertising <ul><li>Simply put: Advertising exists to help to sell things. </li></ul><ul><li>It is mainly about brands </li></ul><ul><li>It is mainly designed to create and strengthen consumer impressions of the brand </li></ul><ul><li>Exception is public service advertising </li></ul>
  30. 30. Role of advertising <ul><li>Marketing </li></ul><ul><li>Communication </li></ul><ul><li>Economic </li></ul><ul><li>Societal </li></ul><ul><li>The process a business uses to satisfy consumer needs by providing goods and services </li></ul><ul><ul><li>Product category </li></ul></ul><ul><ul><li>Target market </li></ul></ul><ul><ul><li>Marketing mix </li></ul></ul><ul><ul><li>Brand </li></ul></ul>
  31. 31. Role of advertising <ul><li>Marketing </li></ul><ul><li>Communication </li></ul><ul><li>Economic </li></ul><ul><li>Societal </li></ul><ul><li>Can reach a mass audience </li></ul><ul><li>Introduces products </li></ul><ul><li>Explains important changes </li></ul><ul><li>Reminds and reinforces </li></ul><ul><li>Persuades </li></ul>
  32. 32. Role of advertising <ul><li>Marketing </li></ul><ul><li>Communication </li></ul><ul><li>Economic </li></ul><ul><li>Societal </li></ul><ul><li>Moves from being informational to creating demand </li></ul><ul><li>Advertising is an objective means for providing price-value information, thereby creating a more rational economy </li></ul>
  33. 33. Role of advertising <ul><li>Marketing </li></ul><ul><li>Communication </li></ul><ul><li>Economic </li></ul><ul><li>Societal </li></ul><ul><li>Informs consumers about innovations and issues </li></ul><ul><li>Mirrors fashion and design trends </li></ul><ul><li>Teaches consumers about new products </li></ul><ul><li>Helps shape consumer self-image </li></ul><ul><li>Perpetuates self-expression </li></ul>
  34. 34. Integrated Communications <ul><li>Advertising is part of total continuum of communications about the brand. It may have a leading role and carry the greatest budget: but it can be merely cast in a supporting role for a campaign of activity centered around an event. </li></ul>
  35. 35. The importance of advertising <ul><li>Involves a huge amount of money </li></ul><ul><li>Work is done by relatively few people </li></ul><ul><li>Major expense is for media time/space </li></ul><ul><li>Companies spend only a small percentage of sales on advertising </li></ul>
  36. 36. Types of advertising <ul><li>Product advertising—Tries to sell a specific product to final users or channel members </li></ul><ul><ul><li>Pioneering advertising builds primary demand </li></ul></ul><ul><ul><li>Competitive advertising builds selective demand </li></ul></ul><ul><li>Corporate/institutional advertising—Tries to promote an organisation's image, reputation or ideas—rather than a specific product </li></ul>
  37. 37. Major advertising media <ul><li>Magazine </li></ul><ul><li>Television </li></ul><ul><li>Newspaper </li></ul><ul><li>Yellow Pages </li></ul><ul><li>Radio </li></ul><ul><li>Outdoors </li></ul><ul><li>Cinema </li></ul><ul><li>Internet </li></ul>
  38. 38. The Functions of Advertising <ul><li>Builds awareness of products and brands </li></ul><ul><li>Creates a brand image </li></ul><ul><li>Provides product and brand information </li></ul><ul><li>Persuades people </li></ul><ul><li>Provides incentives to take action </li></ul><ul><li>Provides brand reminders </li></ul><ul><li>Reinforces past purchases and brand experiences </li></ul>
  39. 39. The Key Players <ul><li>Advertiser (client) </li></ul><ul><li>Agency </li></ul><ul><li>Media </li></ul><ul><li>Supplier </li></ul><ul><li>Audience </li></ul><ul><li>Uses advertising to send out a message about its products </li></ul><ul><li>Initiates the advertising effort by identifying a marketing problem </li></ul><ul><li>Approves audience, plan and budget </li></ul><ul><li>Hires the advertising agency </li></ul>
  40. 40. The Key Players <ul><li>Advertiser (client) </li></ul><ul><li>Agency </li></ul><ul><li>Media </li></ul><ul><li>Supplier </li></ul><ul><li>Audience </li></ul><ul><li>Has strategic and creative expertise, media knowledge, workforce talent, and negotiating abilities </li></ul><ul><ul><li>Advertising department </li></ul></ul><ul><ul><li>In-house agency </li></ul></ul>
  41. 41. The Key Players <ul><li>Advertiser (client) </li></ul><ul><li>Agency </li></ul><ul><li>Media </li></ul><ul><li>Supplier </li></ul><ul><li>Audience </li></ul><ul><li>The channels of communication that carry the message to the audience </li></ul><ul><li>Are also companies or huge conglomerates </li></ul><ul><li>Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches </li></ul>
  42. 42. The Key Players <ul><li>Advertiser (client) </li></ul><ul><li>Agency </li></ul><ul><li>Media </li></ul><ul><li>Supplier </li></ul><ul><li>Audience </li></ul><ul><li>Assist advertisers, agencies, and the media in creating and placing the ads </li></ul><ul><li>Vendor services are often cheaper than those in-house </li></ul>
  43. 43. The Key Players <ul><li>Advertiser (client) </li></ul><ul><li>Agency </li></ul><ul><li>Media </li></ul><ul><li>Supplier </li></ul><ul><li>Audience </li></ul><ul><li>The desired audience for the advertising message </li></ul><ul><li>Data-gathering technology improves accuracy of information about customers </li></ul><ul><li>Advertisers must recognize the various target audiences they are talking to and know as much about them as possible </li></ul>
  44. 44. Types of Advertising <ul><li>Brand advertising </li></ul><ul><li>Retail or Local advertising </li></ul><ul><li>Direct-Response advertising </li></ul><ul><li>Business-to-Business advertising </li></ul><ul><li>Institutional advertising </li></ul><ul><li>Nonprofit advertising </li></ul><ul><li>Public Service advertising </li></ul>
  45. 45. What Makes an Ad Effective? <ul><li>If it creates an impression for a product or brand </li></ul><ul><li>If it influences people to respond in some way </li></ul><ul><li>If it separates the product or brand from the competition in the mind of the consumer </li></ul>
  46. 46. Conclusion <ul><li>Advertising agencies: how they work, how they are organized, and how to choose and use one. </li></ul><ul><li>Advertising strategy: how to think about what the ads are trying to do, and understanding the people they are aimed at. </li></ul><ul><li>How good advertisements can be created. </li></ul>
  47. 47. conclusion <ul><li>Media: what is available, and how it is bought, sold and planned. </li></ul><ul><li>Putting a campaign plan together. </li></ul><ul><li>Judging advertisements and evaluating campaigns. </li></ul><ul><li>The law, regulation and self-regulation </li></ul><ul><li>Advertising internationally and globally </li></ul><ul><li>If we have time – The relationship between advertising and the economy and society </li></ul>
  48. 48. Summary and Conclusion <ul><li>Advertising is a core part of many companies’ marketing mix: the activities that link a brand to its market and its consumers or customers </li></ul><ul><li>Traditionally, media advertising has taken the lion’s share of marketing communications budgets, at least for most consumer goods companies, since it is a cost-effective means of reaching large numbers of people. </li></ul>
  49. 49. Summary and Conclusion <ul><li>As media and markets have fragmented, however, other forms of communication are gaining importance, and advertising is increasingly seen as just part of an integrated communications programme </li></ul><ul><li>As such, advertising works together, and integrates with, a variety of other forms of communication. </li></ul>
  50. 50. Questions for discussion <ul><li>Is advertising becoming more or less important to companies? Why should this be so? </li></ul><ul><li>How might the marketing mix differ for a brand of frozen food, a charity and a bank? </li></ul>