Faculty Member & Research Scholor, Department of Business Admn& Research SSGM College of Engg, Shegaon (MS) at Department of Business Administration & Management, SSGM College of Engg, Shegaon (MS)
Five Basic Components of
Advertising
Advertising is a paid form of communication.
The sponsor is identified.
Advertising tries to persuade or influence the
consumer to do something.
Advertising reaches a large audience of
potential consumers.
The message is conveyed through many
different kinds of mass media, which are
largely nonpersonal.
Four Fundamental Elements of
Effective Advertising
Advertising strategy
The logic and planning behind the advertisement
that gives it direction and focus.
Develop the ad to meet specific objectives.
Creative idea
The ad’s central idea that grabs your attention
and sticks in your memory.
E.g. 愛之味分解茶 vs. 古道油切 vs. 黑松茶花
Four Fundamental Elements of
Effective Advertising
Creative execution
The details, the photography, the writing, the
acting, the setting, the printing, and the way the
product is depicted all reflect the highest
production values available to the industry.
E.g. 曼仕德咖啡, 奇美廣色域 – 1, 2, Corona.
Creative media use
Every message has to be delivered somehow.
E.g. traditional media, outdoor and transportation
media, and the Internet.
Two Techniques to Persuade
Consumers
Hard-sell approach – use reasons to
persuade consumers, e.g. NOW Magazine.
Soft-sell approach – build image for a brand
and touch consumers’ emotions, e.g. Aqualis.
Four Roles of Advertising -
Marketing
The process a business uses to satisfy
consumer needs by providing goods and
services
Product category
Target market
Marketing mix
Brand
Four Roles of Advertising -
Communication
Can reach a mass audience
Introduces products
Explains important changes
Reminds and reinforces
Persuades
Four Roles of Advertising -
Economic
Moves from being informational to creating
demand
Advertising is an objective means for
providing price-value information, thereby
creating a more rational economy
Signaling high quality
Four Roles of Advertising -
Societal
Informs consumers about innovations and
issues
Mirrors fashion and design trends
Teaches consumers about new products
Helps shape consumer self-image
Perpetuates self-expression
The Functions of Advertising
Building awareness of products and brands
Creating a brand image
Providing product and brand information
Persuading people
Providing incentives to take action
Providing brand reminders
Reinforcing past purchases and brand
experiences
The Key Players
Advertiser
Advertising agency
Media
Supplier
Target audience
Advertiser
Uses advertising to send out a message
about its products
Initiates the advertising effort by identifying a
marketing problem
Approves audience, plan and budget
Hires the advertising agency
Advertising Agency
Has strategic and creative expertise, media
knowledge, workforce talent, and negotiating
abilities
In 2002-2003 ad agency gross income was
$10.6 billion worldwide. (Advertising Age)
Advertising Age - Agency Family Trees
Advertising Agency
Advertising department
Act as a liaison between the marketing
department and the advertising agencies and
other vendors.
Agency-of-record
In-house agency
Perform most, and sometimes all, of the functions
of an outside advertising agency.
Media
The channels of communication that carry the
message to the audience
Are also companies or huge conglomerates
Mass media advertising can be cost effective
because the costs are spread over the large
number of people the ad reaches
Supplier
Assist advertisers, agencies, and the media
in creating and placing the ads
Vendor services are often cheaper than those
in-house.
The Target Audience
The desired audience for the advertising message
Data-gathering technology improves accuracy of
information about customers
Advertisers must recognize the various target
audiences they are talking to and know as much
about them as possible
Purchasers are not always the product users.
Interactive technology has created a new world of
targeting and ads can now be customized to
individual consumers to some extent.
Types of Advertising
Brand advertising
The most visible type of advertising
Focusing on the development of a long-term
brand identity and image.
Institutional advertising
It is also called corporation advertising or image
advertising.
Focusing on establishing a corporate identity or
winning the public over to the organization’s point
of view.
Types of Advertising
Retail or local advertising
Focusing on retailers or manufacturers that sell
their merchandise in a certain geographic area.
Objectives: stimulating store traffic and creating a
distinctive image for the retailer.
Direct-response advertising
Trying to stimulate a sale directly.
The consumer can respond by telephone, mail or
the Internet, and the product is delivered directly
to the consumer by mail or some other carrier.
Types of Advertising
Business-to-business advertising
B2B advertising is sent from one business to
another.
Advertisers place most business advertising in
professional publications or journals.
Types of Advertising
Nonprofit advertising
Not-for-profit organizations advertise for customers,
members, and volunteers, as well as for donations and
other forms of program participation.
Public service advertising
Communicating a message on behalf of some good cause,
e.g. stopping drunk driving or preventing child abuse.
These advertisements are usually created by advertising
professionals free of charge and the media often donate
the necessary space and time.
The Evolution of Advertising
Age of print (1441~1850)
Industrial revolution and emergence of
consumer society (1851~1900)
Modern advertising era (1901~1915)
Agency era (1916~1960)
Creative era (1961~1980)
Accountability era (1981~)
Age of Print (1441~1850)
Ads were primarily like classified advertising
in format and print media carried them.
Objective: delivering information.
Primary medium: newspaper.
Industrial Revolution and Emergence
of Consumer Society (1851~1900)
Advertising grew in importance and size
because of numerous social and
technological developments.
Purpose: devising an effective, efficient
communication system that could sell
products to a widely marketplace.
National media developed as the country’s
transportation system grew.
Modern Advertising Era
(1901~1915)
The format of advertisement was getting to
be similar to the modern one.
The emergence of advertising agency with
simple service
Agency Era (1916~1960) &
Creative Era (1961~1980)
Agency era: the advertising industry grew
and organizations specializing in modern
professional advertising developed.
Creative era: showcasing an emphasis on
new creative practices to compete in a
crowded marketplace and build demand for
brands.
Accountability Era (1981~)
The beginning of the industry-wide focus on
effectiveness
Clients wanted ads that produced sales so
the emphasis was on research and
measurement.
The Current Advertising Scene
Interaction
Integrated marketing communication (IMC)
Globalization
Interaction
Electronic media, such as the Internet and
wireless communication, are changing the
media landscape
New media are more personal and interactive
Integrated Marketing
Communication
IMC is the practice of unifying all marketing
communication tools so they send a
consistent, persuasive message promoting
company goals.
Globalization
In the early 1990s the trade barriers
throughout much of Europe came down,
making it the largest contiguous market in the
world.
Eastern Europe, India, Russia, and China
have at least partially opened their markets to
international marketing.
The advertising question is whether to
practice global or local advertising.