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introduction to advertising

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  1. 1. Lecture III
  2. 2. <ul><li>Advertising is paid non personal communication from an identified sponsor using mass media to persuade or influence an audience. </li></ul>
  3. 3. Types of advertising : <ul><li>Brand advertising </li></ul><ul><li>Most visible type of advertising </li></ul><ul><li>Focuses on the development of long term brand identity and image </li></ul><ul><li>The best brands build an emotional connection with consumers, leading to customer loyalty. </li></ul>
  4. 4. <ul><li>Advertisers can also some times use humor to create brand awareness. </li></ul>
  5. 5. <ul><li>Retail or local advertising </li></ul><ul><li>That sell their products in restricted area. </li></ul><ul><li>Objectives tend to focus on stimulating store traffic. </li></ul><ul><li>Creating distinctive image for retailers. </li></ul>
  6. 6. <ul><li>Political advertising </li></ul><ul><li>To persuade people to vote for them </li></ul><ul><li>Focus more on image than on issue </li></ul>
  7. 7. <ul><li>Directory advertising </li></ul><ul><li>Yellow pages are major advertising vehicles </li></ul><ul><li>It is used by national advertisers as well as local retailers. </li></ul><ul><li>Trade directories </li></ul><ul><li>Almost 90% of those who consult yellow pages follow up with some kind of action </li></ul>
  8. 8. <ul><li>Direct response advertising </li></ul><ul><li>Tries to stimulate a sale directly </li></ul><ul><li>It has to provide some type of response or reply device to facilitate action. </li></ul>
  9. 9. <ul><li>Business to business advertising </li></ul><ul><li>Directed at people who buy products for business use </li></ul><ul><li>It is used to create brand awareness </li></ul><ul><li>Enhance the firms reputation </li></ul><ul><li>Support sales people </li></ul>
  10. 10. <ul><li>Institutional advertising </li></ul><ul><li>Also known as corporate advertising </li></ul><ul><li>Focus on establishing corporate identity </li></ul><ul><li>Purpose is to communicate company’s mission or philosophy </li></ul><ul><li>It does not call upon a consumer to act </li></ul><ul><li>to attract investors, to influence opinions, increase sales and to recruit and retain employees </li></ul>
  11. 11. <ul><li>Public service advertising </li></ul><ul><li>PSAs communicate a message on behalf of some good cause . </li></ul><ul><li>These are usually created free of charge </li></ul><ul><li>Media often donate space and time </li></ul>
  12. 12. <ul><li>Interactive advertising </li></ul><ul><li>Delivered to individual consumers who have access to the internet </li></ul><ul><li>WebPages , banner ads and emails </li></ul><ul><li>Consumer can respond to the ad or ignore it. </li></ul>
  13. 13. Roles of advertising <ul><li>The marketing role </li></ul><ul><li>The role of advertising within marketing is to carry persuasive messages to actual costumers </li></ul>
  14. 14. <ul><li>The communication role </li></ul><ul><li>Form of mass communication </li></ul>
  15. 15. <ul><li>The economic role : </li></ul><ul><li>Two aspects : </li></ul><ul><li>Advertising is so persuasive that is decreases the likelihood that a consumer will switch to an alternative product ,regardless of price charged. </li></ul>
  16. 16. <ul><li>Vehicle for helping consumers to assess value through price. </li></ul>
  17. 17. <ul><li>The social role : </li></ul><ul><li>Informs us about new and improved products </li></ul><ul><li>Consumer decisions </li></ul><ul><li>Adds to our aesthetic sense </li></ul>
  18. 18. Functions of advertising <ul><li>Provides product and brand information </li></ul><ul><li>Relevant information must be there </li></ul><ul><li>Information depends on the need of target audience </li></ul>
  19. 19. <ul><li>Provides incentives to take action </li></ul><ul><li>Mostly consumers are reluctant to change their buying behavior </li></ul><ul><li>Provides Reasons to switch brands </li></ul>
  20. 20. <ul><li>Provides reminders and reinforcement </li></ul><ul><li>Much advertising is directed at keeping current customer </li></ul><ul><li>Consumers forget why they bought a particular product </li></ul><ul><li>Must be constantly reminded about the brand , its benefits its value. </li></ul>
  21. 21. Characteristics of effective ads <ul><li>Effective ads work on two levels </li></ul><ul><li>Consumer’s objective </li></ul><ul><li>Advertiser’s objective </li></ul>
  22. 22. <ul><li>Initially a consumer may be interested in watching an ad for its entertainment value or to satisfy curiosity </li></ul><ul><li>If the ad is sufficiently entertaining ,the consumer may remember it. </li></ul><ul><li>However she may then learn that the ad relates to a personal need and provides relevant information about how to satisfy a need. </li></ul><ul><li>It may also offer enough incentive for the consumer to risk change. </li></ul><ul><li>Ad may reinforce her product decision . </li></ul>
  23. 23. <ul><li>Advertisers objective </li></ul><ul><li>Want consumers to buy and keep buying their products. </li></ul><ul><li>To move them to action they must gain their attention. </li></ul>
  24. 24. Three proportions of effective advertising : <ul><li>Strategy </li></ul><ul><li>Every effective ads implements a sound strategy </li></ul><ul><li>How to meet specific objectives </li></ul><ul><li>Directing it to certain audience </li></ul><ul><li>Satisfy audience </li></ul><ul><li>Media </li></ul>
  25. 25. <ul><li>Creativity </li></ul><ul><li>Ads central idea that grabs your attention </li></ul>
  26. 26. <ul><li>Execution </li></ul><ul><li>Everything is fine tuned </li></ul>
  27. 27. <ul><li>How you say something is just as important as what you say. </li></ul><ul><li>What you say – strategy </li></ul><ul><li>How you say – creativity </li></ul><ul><li>What you say + how you say = execution </li></ul>
  28. 28. Advertising must be goal directed <ul><li>perception </li></ul><ul><li>Learning persuasion </li></ul><ul><li>behavior </li></ul>
  29. 29. The five players of advertising <ul><li>The advertiser </li></ul><ul><li>The person or organization that “needs to get out a message” </li></ul><ul><li>Makes final decision about the target audience </li></ul><ul><li>About the media </li></ul><ul><li>Budget </li></ul>
  30. 30. <ul><li>The advertising agency </li></ul><ul><li>Advertisers hire independent agencies to plan and implement part or all of their advertising efforts. </li></ul><ul><li>This working is known as agency -client partnership </li></ul>
  31. 31. <ul><li>Advertiser uses outside agency because : </li></ul><ul><li>It believes that the agency will be more efficient </li></ul><ul><li>Strategic and creative expertise </li></ul><ul><li>Media knowledge </li></ul>
  32. 32. <ul><li>Large advertisers participate in the advertising process either through their advertising departments or through their in house agencies </li></ul>
  33. 33. <ul><li>Internal advertising department </li></ul>In house agency Research /planning Creative development Media Production Advertising Organization
  34. 34. <ul><li>advertising department </li></ul>External agencies Full service agency Media specialist Vendors Advertising Organization
  35. 35. <ul><li>The media </li></ul><ul><li>Channels of communication that carries message </li></ul>
  36. 36. <ul><li>Vendors </li></ul><ul><li>Specialist of the field </li></ul><ul><li>Freelancers and consultants </li></ul>
  37. 37. <ul><li>Why hire vendor ? </li></ul><ul><li>The advertiser may not have expertise in that area </li></ul><ul><li>They may be over loaded </li></ul><ul><li>Need of fresh perspective </li></ul><ul><li>Cost </li></ul>
  38. 38. The target audience <ul><li>All strategy starts with the customer </li></ul><ul><li>The term Target market denotes customer </li></ul>
  39. 39.   The advertising plan : <ul><li>An advertising plan matches the right audience to the right message and presents it in the right medium to reach the audience </li></ul><ul><li>Three elements summarize the heart of advertising plan : </li></ul>
  40. 40. <ul><li>Whom are you trying to reach </li></ul><ul><li>Targeting the audience </li></ul><ul><li>what do you say to them? </li></ul><ul><li>Message strategy </li></ul><ul><li>When and where you will reach them </li></ul><ul><li>Media strategy </li></ul>
  41. 41. <ul><li>Introduction </li></ul><ul><li>Not every one needs to read the entire advertising plan </li></ul><ul><li>Executive summary or over view of the plan </li></ul>
  42. 42. <ul><li>Situation analysis </li></ul><ul><li>First step of advertising plan is not planning </li></ul><ul><li>The research and analysis of important information and trends affecting market place, the competition , consumer behavior, the company it self and the product. </li></ul>
  43. 43. <ul><li>SWOT analysis </li></ul><ul><li>Strengths </li></ul><ul><li>Weakness </li></ul><ul><li>Opportunity </li></ul><ul><li>Threats </li></ul>
  44. 44. <ul><li>Advertising planning decisions </li></ul><ul><li>How to set objectives? </li></ul><ul><li>Identify the target audience </li></ul><ul><li>Create a competitive advantage </li></ul><ul><li>Establish brand image </li></ul><ul><li>Position a product </li></ul>
  45. 45. <ul><li>Advertising objectives </li></ul><ul><li>Every advertising campaign must be guided by specific clear objectives. </li></ul><ul><li>Advertising objectives are derived from marketing objectives as well as SWOT analysis. </li></ul>
  46. 46. <ul><li>Basic objective is to increase the sale of the product. </li></ul><ul><li>Advertising objectives fall in to four general categories: </li></ul><ul><li>Perception </li></ul><ul><li>Learning </li></ul><ul><li>Persuasion </li></ul><ul><li>behavior </li></ul>
  47. 47. <ul><li>Several models assume that consumers go through a series of steps when exposed to a cue. </li></ul><ul><li>Some describe the effects of advertising , others define how to determine goals. </li></ul>
  48. 48. <ul><li>AIDA MODEL </li></ul><ul><li>Analyze the customers journey from ignorance to purchase </li></ul><ul><li>Developed in 1898 </li></ul><ul><li>Describes the effects of advertising on consumer </li></ul>
  49. 49. <ul><li>Attract Attention </li></ul><ul><li>Create Interest </li></ul><ul><li>Develop desire </li></ul><ul><li>Promote Action </li></ul>
  50. 50. <ul><li>Attract Attention </li></ul><ul><li>The promotional objective at this stage is to get the product seen and talked about. </li></ul>
  51. 51. <ul><li>Interest </li></ul><ul><li>Create and stimulate buyer interest </li></ul><ul><li>This is achieved by creating an understanding of the benefits of the product </li></ul><ul><li>At this stage promotional message focus on how the product meets these needs </li></ul>
  52. 52. <ul><li>Desire </li></ul><ul><li>Induce a favorable attitude to the products especially in relation to the competing products. </li></ul>
  53. 53. <ul><li>Action </li></ul><ul><li>The action sought is for the costumer to purchase the product </li></ul><ul><li>Induce a purchase by stressing immediate desirability of the product </li></ul>
  54. 54. <ul><li>DAGMAR </li></ul><ul><li>Defining advertising goals for measured advertising results </li></ul><ul><li>Developed in 1961 </li></ul>
  55. 55. <ul><li>Begins with awareness, moves to comprehension ,then conviction and ends with action . </li></ul><ul><li>Awareness : result of advertising , the audience knows about the brand </li></ul><ul><li>Comprehension : recognition and understanding of the product </li></ul>
  56. 56. <ul><li>Conviction :the development of the preference for the product </li></ul><ul><li>Action : move towards the purchase </li></ul>
  57. 57. Targeting the audience <ul><li>Advertising planners describe the target audience in respect to their demographics </li></ul><ul><li>The plan might use descriptors </li></ul><ul><li>Each time you add a descriptor the target audience gets smaller because the group is defined more tightly. </li></ul>
  58. 58. <ul><li>Advertisers also create profiles of target audiences that include demographics, personality descriptors and life style traits. </li></ul>
  59. 59. <ul><li>Competitive advantage </li></ul><ul><li>Analyze the product in comparison to competing product </li></ul><ul><li>Feature analysis is a common way for this </li></ul>
  60. 60. <ul><li>List important features of your product and competitors product </li></ul><ul><li>How important each feature is to the target audience </li></ul><ul><li>How well product perform on that feature </li></ul>
  61. 61. <ul><li>Competitive advantage lies where product has strong feature ,that is important to target audience and the competitor has the weaker one </li></ul>
  62. 62. <ul><li>Brand personality </li></ul><ul><li>Brand personality is important to advertising because it is based on perception and image rather than concrete facts </li></ul>
  63. 63. <ul><li>Positioning strategy </li></ul><ul><li>Value , importance and ranking </li></ul>
  64. 64. <ul><li>Implementation </li></ul><ul><li>Executing the advertising plan is undoubtedly the most difficult part </li></ul><ul><li>“ success is in details” </li></ul>
  65. 65. <ul><li>Evaluation </li></ul><ul><li>How well advertising campaign meets its objective </li></ul>
  66. 66. <ul><li>Budget </li></ul><ul><li>total fund </li></ul><ul><li>Not always done at the end of plan </li></ul><ul><li>Constant flux </li></ul><ul><li>Determines how many targets and multiple campaign plans a company or brand can support. </li></ul>
  67. 67. <ul><li>Historical method </li></ul><ul><li>Objective task method </li></ul><ul><li>Percentage of sales method </li></ul><ul><li>Competitive methods </li></ul><ul><li>All you can afford </li></ul>
  68. 68. <ul><li>The creative strategy </li></ul><ul><li>The media strategy </li></ul>
  69. 69. Advertising and social responsibility <ul><li>Ethical issues: </li></ul><ul><li>Advocacy </li></ul><ul><li>Accuracy </li></ul><ul><li>Acquisitiveness </li></ul>
  70. 70. key issues in advertising <ul><li>Puffery </li></ul><ul><li>Taste and advertising </li></ul><ul><li>Stereotyping in advertising </li></ul><ul><li>Advertising to children </li></ul><ul><li>Advertising controversial products </li></ul>
  71. 71. Assignment  <ul><li>Select three print ads that you feel contain one or more of the ethical issues discussed , ask five people of different age gender and back ground how they feel about the ads, write a report on their opinions and include you own conclusions about the ads. </li></ul>