CHAPTER

Introduction to Advertising

Outline
The mandate for effectiveness What makes an ad effective? The world of advertising The five players of advertising The evolution of advertising

Chapter 1: Introduction to Advertising

Objectives
Be able to: Discuss the elements of effective advertising Define advertising and identify its types and roles Identify the five players in the advertising world Explain the evolution of the ad industry and the current issues it faces
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The Mandate for Effectiveness

Today advertising is in a bind
A down economy Tragedy of 9/11 New technologies that threaten how advertising works

Advertisers expect specific results that lead to sales Advertising must be effective

Chapter 1: Introduction to Advertising

What Makes an Ad Effective?

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
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What Makes an Ad Effective?

Chapter 1: Introduction to Advertising

Strategy
Advertisers develop ads to
Meet specific objectives Target a certain audience Speak to that audiences most important concerns Appear in media that will reach the audience most effectively
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Creativity
The creative concept is the ads central idea
Grabs your attention Sticks in your memory

Creativity drives the entire advertising field

Planning strategy Conducting research Buying and placing ads

Chapter 1: Introduction to Advertising

Execution
Effective ads are wellexecuted
Details, photos, printing, production values have been finely tuned How you say it is as important as what you say

Chapter 1: Introduction to Advertising

Ads Must Be Goal-Directed

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?

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Ads Must Be Goal-Directed

These goals include (cont.)
Persuasion
Does the ad change attitudes and touch emotions?

Behavior
Will the audience try the product?

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A Model of Key Effects

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Message Effectiveness Factors

Message Effects Perception Surrogate Measures
Exposure Attention Interest Memory: recognition/recall

Communication Tools
Advertising Media; PR Adv; Sales Promotion Adv; SP; PR Adv; SP; PR

Learning
Persuasion

Understand Image and association brand links

Attitudes: Form or change Emotions and involvement Conviction: belief, commitment Trial Purchase Repeat purchase, use more

PR, Personal Selling, DM, Adv Adv, PR, POP

PR, Personal Selling, SP Adv, PR, Personal Selling Personal Selling, Direct Marketing SP; Personal Selling, DM SP; Personal Selling, DM SP; Personal Selling, DM

Behavior

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The World of Advertising

Advertising defined:
A paid form of communication A sponsor is identified Tries to persuade or influence the consumer to do something Is conveyed through different mass media Reaches a large audience of potential consumers Is nonpersonal
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The World of Advertising

Types of Advertising
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

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The World of Advertising

Types of Advertising (cont.)
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
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The World of Advertising

Types of Advertising (cont.)
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 17

Chapter 1: Introduction to Advertising

The Roles of Advertising

Marketing role
Carry persuasive messages to actual/potential customers

Communication role
Advertising transmits market information to match buyers and sellers in the marketplace

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The Roles of Advertising (cont.)

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

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Functions of Advertising
Advertising can function to:
Provide product and brand information Provide incentives to take action Provide reminders and reinforcement

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Questions for Discussion

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). Does this approach fulfill the three basic functions of advertising? How are the four major roles of advertising influenced by this approach?

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The Five Players of Advertising

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

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The Five Players of Advertising

Vendors
Service people/organizations that assist advertisers, agencies, and media

Target audience

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The Evolution of Advertising

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
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The Evolution of Advertising (cont.)

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

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Current Advertising Issues

Interactive advertising
Will technology change the face of advertising? Is the promise of technology exaggerated? Implications of the failure of banner ads

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Current Advertising Issues

Integrated marketing communications (IMC)
Unifying all marketing communications tools to send a consistent persuasive message

Consumer Power
Technology has given consumers greater leverage

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Current Advertising Issues

Globalization
Trade barriers have fallen in Europe Formerly communist nations have partially opened markets Should advertisers practice global or local advertising?

Niche marketing
Advertisers target market segments New technologies make targeting groups possible
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Questions for Discussion

Critics charge advertising manipulates its audience, while supporters claim advertising seeks to persuade Which interpretation do you agree with? Why?

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