This document provides an introduction and overview of advertising. It defines advertising as paid persuasive communication through mass media to reach broad audiences and connect a sponsor with consumers. The document outlines the basic components of advertising and what makes an ad effective, including strategy, creativity and execution. It also discusses different types of advertising, the roles and functions of advertising, key players in advertising, the evolution and history of advertising, and current issues facing the industry.

1. CHAPTER
Introduction to
Advertising
CHAPTER
1

2. 2
Advertising means different things to different
people.
 To the CEO of a multinational corporation, like
Pepsi, advertising is an essential marketing tool that
helps create brand awareness and loyalty and
stimulates demand.
 To the owner of a small retail shop, advertising is a
way to bring people into the store.
 To the art director in an advertising agency, it is the
creative expression of a concept.
 To scholars, advertising is an important cultural
artifact, text, and historical record.
What is Advertising?

3. 3
Simply put, advertising is about creating a
message and sending it to someone,
hoping they will react in a certain way.
A modern standard definition is:
Advertising is paid persuasive communication that
uses nonpersonal mass media – as well as other
forms of interactive communication - to reach
broad audiences to connect an identified sponsor
with a target audience.
What is Advertising?

4. 4
The 5 basic components of advertising are:
– It is a paid form of communication
– A sponsor is identified
– It tries to persuade or influence the
consumer to do something
– It is conveyed through different mass media
– It reaches a large audience of potential
consumers
– It is nonpersonal
What is Advertising? (cont.)

5. 5
• Effective ads work on two levels: with consumers
and with advertisers.
– Consumers
• View ads for entertainment or out of curiosity
• May then learn the ad relates to a need
• May receive an incentive to risk change
• May find reinforcement for product decisions
– Advertisers
• Ads must gain consumers’ attention
• Ads must hold attention long enough to change
consumer purchasing behavior
What Makes an Ad Effective?

6. 6
What Makes an Ad Effective?
Strategy
Creativity
Execution
Strategy:
Advertisers develop ads to:
– Meet specific objectives
– Target a certain audience
– Speak to that audience’s most important concerns
– Appear in media that will reach the audience most
effectively

7. 7
What Makes an Ad Effective?
Creativity
• The creative concept is the ad’s central idea
– Grabs your attention
– Sticks in your memory
• Creativity drives the entire advertising field
– Planning strategy
– Conducting research
– Buying and placing ads
Execution
• Effective ads are well-executed
– Details, photos, printing, production values are finely tuned
– How you say it is as important as what you say

8. 8
• The intended effects of advertising are important for
evaluating effectiveness. These goals include:
– Perception
• Will the ad be attended to and remembered?
– Learning
• Will the audience understand the message and
make correct associations?
– Persuasion
• Does the ad change attitudes and touch emotions?
– Behavior
• Will the audience try the product?
Ads Must Be Goal-Directed

9. 9
A Model of Key
Effects

10. 10
 Brand advertising: focuses on developing a long-term
brand identity and image
 Retail/local advertising: focuses on retailers or
manufacturers that sell merchandise in a restricted area
 Political advertising: focuses on politicians attempting
to persuade people to vote for them or their ideas
 Directory advertising: used by people to find how to
buy a product or service
 Direct-response advertising: uses any ad medium to
directly stimulate a sale
 Business-to-business advertising: messages directed at
retailers, wholesalers, distributors, purchasers and
professionals
Types of Advertising

11. 11
 Institutional advertising:
corporate advertising used
to establish an identity or
influence public opinion
 Public service advertising
(PSA): communicates a
message for a good cause
 Interactive advertising:
delivered to individual
consumers who have access
to a computer and the
Internet
Types of Advertising
(cont.)

12. 12
• Marketing role
– Carry persuasive messages to actual/potential customers
• Communication role
– Advertising transmits market information to match
buyers and sellers in the marketplace
• Economic role
– Advertising may make consumers less price sensitive, or
– Advertising may help consumers better assess value
• Societal role
– Ads inform about new products, help consumers
compare products, mirror fashion, influence taste
The Roles of Advertising

13. 13
Functions of Advertising
From the advertiser’s perspective:
1. Builds awareness for products and brands
2. Creates a brand image
3. Provides product and brand information
4. Persuades people
5. Provides incentives to take action
6. Provides brand reminders
7. Reinforces past purchases and brand experiences

14. 14
Types of Advertising
(based on objectives)
 Informative Advertising
 Persuasive Advertising
 Comparative Advertising
 Reminder Advertising
 Reinforcement Advertising
 Advocacy Advertising
 Teaser Advertising

15. 15
• Advertiser
– Organization that needs to advertise
• Advertising agency
– Firms that plan and implement advertising efforts
• Media
– Channels that carry the message from advertiser to
audience
• Vendors
– Service people/organizations that assist advertisers,
agencies, and media
• Target audience
Five Key Players of Advertising

16. 16
• Age of print
– Ads were primarily classified in format
• Industrial revolution and emergence of consumer
society
– Social and technological developments led to growth in
importance and size of advertising
• Modern advertising: Agencies, science and creativity
– Ad industry grew to $500 million in billings
• Accountability era
– Clients demand results
– Agencies linked to global business environment
The Evolution of
Advertising

17. 17
• Interactive advertising
– Will technology change the face of advertising?
• Integrated marketing communications (IMC)
– Unifying all marketing communications tools to send a
consistent persuasive message
• Consumer Power
– Technology has given consumers greater leverage
• Globalization
– Trade barriers have fallen in Europe
– Should advertisers practice global or local advertising?
• Niche marketing
– Advertisers target market segments
– New technologies make targeting groups possible
Current Advertising Issues