intro to ad

CHAPTER

Introduction to

Advertising

CHAPTER

1

Chapter 1: Introduction to Advertising

2

Outline

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


3

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

Objectives


4

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


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

What Makes an Ad Effective?


7

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


8

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


9

Execution• Effective ads are well-

executed– Details, photos,

printing, production values have been finely tuned

– How you say it is as important as what you say


10

• 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?

Ads Must Be Goal-Directed


11

• These goals include (cont.)– Persuasion

• Does the ad change attitudes and touch emotions?

– Behavior• Will the audience try the product?

Ads Must Be Goal-Directed


12

A Model of Key Effects


13

Message Effectiveness FactorsMessage Effects

Surrogate Measures Communication Tools

Perception Exposure Attention InterestMemory: recognition/recall

Advertising Media; PRAdv; Sales PromotionAdv; SP; PRAdv; SP; PR

Learning UnderstandImage and association brand links

PR, Personal Selling, DM, AdvAdv, PR, POP

Persuasion Attitudes: Form or changeEmotions and involvementConviction: belief, commitment

PR, Personal Selling, SPAdv, PR, Personal SellingPersonal Selling, Direct Marketing

Behavior Trial Purchase Repeat purchase, use more

SP; Personal Selling, DMSP; Personal Selling, DMSP; Personal Selling, DM


14

• 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

The World of Advertising


15

• 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



16

• 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



17

• 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



18

• Marketing role– Carry persuasive messages to

actual/potential customers• Communication role

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

The Roles of Advertising


19

• 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 (cont.)


20

Functions of Advertising

• Advertising can function to:– Provide product and

brand information– Provide incentives to

take action– Provide reminders and

reinforcement


21

• 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?

Questions for Discussion


22

• 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

The Five Players of Advertising


23

• Vendors– Service people/organizations that assist

advertisers, agencies, and media• Target audience

The Five Players of Advertising


24

• 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

The Evolution of Advertising


25

• 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 (cont.)


26

• Interactive advertising– Will technology change the face of

advertising?– Is the promise of technology

exaggerated?– Implications of the failure of banner ads

Current Advertising Issues


27

• Integrated marketing communications (IMC)– Unifying all marketing communications

tools to send a consistent persuasive message

• Consumer Power– Technology has given consumers

greater leverage



28

• 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



29

• Critics charge advertising manipulates its audience, while supporters claim advertising seeks to persuade

• Which interpretation do you agree with?

• Why?

Questions for Discussion

intro to ad

Business

Transcript of intro to ad