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1、Introduction to Advertising,Part 1: FoundationsChapter 1,Chapter Outline,Chapter Key PointsWhat is Advertising?Roles and Functions of AdvertisingThe Key PlayersTypes of AdvertisingWhat Makes an Ad Effective?The Evolution of AdvertisingThe Current Advertising Scene,Key Points,Define advertising and e
2、xplain its key componentsDiscuss the roles and functions of advertising within society and businessIdentify the key players and their roles in creating advertisingExplain the different types of advertisingSummarize the characteristics of effective advertising and explain why it is always goal direct
3、edAnalyze the changes affecting the advertising industry,Defining Modern Advertising,Advertising is paid persuasive communicationUses nonpersonal mass media to reach broad audiences to connect an identified sponsor with a target audience,Five basic components:Paid communicationSponsor is identifiedT
4、ries to persuade or influenceReaches a large audienceConveyed through impersonal mass media,Key Concepts of Advertising,StrategyCreative ideaExecutionMedia,The logic and planning behind the adAdvertisers develop ads to meet objectivesAdvertisers direct ads to identified audiencesAdvertisers create m
5、essages that speak to the audiences concernsAdvertisers run ads in the most effective media,Key Concepts of Advertising,StrategyCreative ideaExecutionMedia,The central idea that grabs the consumers attentionCreativity drives the entire field of advertising,Key Concepts of Advertising,StrategyCreativ
6、e ideaExecutionMedia,Effective ads adhere to the highest production values in the industryClients demand the best production the budget allows,Key Concepts of Advertising,StrategyCreative ideaExecutionMedia,Communication channels that reach a broad audienceHow to deliver the message is just as impor
7、tant coming up with the creative idea of the message,Roles of Advertising,MarketingCommunicationEconomicSocietal,The process a business uses to satisfy consumer needs by providing goods and servicesProduct categoryTarget marketMarketing mixBrand,Roles of Advertising,MarketingCommunicationEconomicSoc
8、ietal,Can reach a mass audienceIntroduces productsExplains important changesReminds and reinforcesPersuades,Roles of Advertising,MarketingCommunicationEconomicSocietal,Moves from being informational to creating demandAdvertising is an objective means for providing price-value information, thereby cr
9、eating a more rational economy,Roles of Advertising,MarketingCommunicationEconomicSocietal,Informs consumers about innovations and issuesMirrors fashion and design trendsTeaches consumers about new products Helps shape consumer self-imagePerpetuates self-expression,The Functions of Advertising,Build
10、s awareness of products and brandsCreates a brand imageProvides product and brand informationPersuades peopleProvides incentives to take actionProvides brand remindersReinforces past purchases and brand experiences,The Key Players,Advertiser (client)AgencyMediaSupplierAudience,Uses advertising to se
11、nd out a message about its productsInitiates the advertising effort by identifying a marketing problemApproves audience, plan and budgetHires the advertising agency,The Key Players,Advertiser (client)AgencyMediaSupplierAudience,Has strategic and creative expertise, media knowledge, workforce talent,
12、 and negotiating abilitiesAdvertising departmentIn-house agency,The Key Players,Advertiser (client)AgencyMediaSupplierAudience,The channels of communication that carry the message to the audienceAre also companies or huge conglomeratesMass media advertising can be cost effective because the costs ar
13、e spread over the large number of people the ad reaches,The Key Players,Advertiser (client)AgencyMediaSupplierAudience,Assist advertisers, agencies, and the media in creating and placing the adsVendor services are often cheaper than those in-house,The Key Players,Advertiser (client)AgencyMediaSuppli
14、erAudience,The desired audience for the advertising messageData-gathering technology improves accuracy of information about customersAdvertisers must recognize the various target audiences they are talking to and know as much about them as possible,Types of Advertising,Brand advertisingRetail or Loc
15、al advertisingDirect-Response advertisingBusiness-to-Business advertisingInstitutional advertisingNonprofit advertisingPublic Service advertising,What Makes an Ad Effective?,If it creates an impression for a product or brandIf it influences people to respond in some wayIf it separates the product or
16、 brand from the competition in the mind of the consumer,What Makes an Ad Effective?,Effective advertising messages will achieve the desired impact (objective) on the target audience,Award ShowsEFFIES, AME, IPAJudge effectivenessCLIOS, One Show, CannesJudge creative ideasNot all award-wining ads are
17、effective,The Evolution of Advertising,Age of PrintIndustrial Revolution and Emergence of Consumer SocietyModern Advertising EraAccountability Era,The Current Advertising Scene,Expanded viewIntegrated Marketing CommunicationGlobalization,Electronic media are changing the media landscapeNew media are
18、 more personal and interactive,The Current Advertising Scene,Expanded viewIntegrated Marketing CommunicationGlobalization,The practice of unifying all marketing communication tools so they send a consistent, persuasive message,The Current Advertising Scene,Expanded viewIntegrated Marketing Communica
19、tionGlobalization,Increasing globalization of marketing programsAdvertisers are moving into global markets and agencies are forming huge multinational operations,Advertisings Role in Marketing,Part 1: FoundationsChapter 2,Chapter Outline,Chapter Key PointsWhat is Marketing?The Key Players and Market
20、sThe Marketing ProcessHow Agencies WorkInternational MarketingThe Dynamics of Modern Marketing,Key Points,Define the role of advertising within marketingExplain how the four key concepts in marketing relate to advertisingIdentify the key players in marketing and how the organization of the industry
21、affects advertisingList and explain the six critical steps in the marketing processSummarize the structure of the advertising agency industryAnalyze the changes in the marketing world and what they portend for advertising,What is Marketing?,The way a product is designed, tested, produced, branded, p
22、ackaged, priced, distributed, and promoted,Key Concepts in Marketing,The marketing conceptExchangeBrandingAdded value,Marketing should focus first on identifying the needs and wants of the customerTo compete effectively, marketers must focus on the customers problems and try to develop products to s
23、olve them,Key Concepts in Marketing,The marketing conceptExchangeBrandingAdded value,The act of trading a desired product or service to receive something of value in returnMoney is exchanged for goods,Key Concepts in Marketing,The marketing conceptExchangeBrandingAdded value,The process of creating
24、a distinctive and special meaning for a productBrand equity is reputation, meaning, and value that the brand name or symbol has acquired over time,Key Concepts in Marketing,The marketing conceptExchangeBrandingAdded value,A marketing or advertising activity makes a product more valuable, useful, or
25、appealing,The Key Players and Markets,The marketerSuppliers and vendorsDistributors and retailers,The organization, company, or manufacturer producing the product and offering it for saleThe advertiser or client (from the agencys point of view),The Key Players and Markets,The marketerSuppliers and v
26、endorsDistributors and retailers,Other companies that manufacture the materials and ingredients used in producing the product,The Key Players and Markets,The marketerSuppliers and vendorsDistributors and retailers,Various companies that are involved in moving a product from its manufacturer to the b
27、uyer,Types of Markets,MarketWhere the exchange between buyer and seller takes placeA particular type of buyerMarket shareThe percentage of the total market in a product category that buys a particular brand,Types of Markets,ConsumerBusiness-to-business (Industrial)InstitutionalChannel,The Marketing
28、Process,Conduct research and develop a situation analysisSet objectives for the marketing effortAssess consumer needs and wantsDifferentiate and position the productDevelop the marketing mix strategyEvaluate the effectiveness of the strategy,Marketing Mix Strategies,ProductPlacePricePromotion,The pr
29、oduct is both the object of the advertising and the reason for marketingProduct categoryA class of similar products,Marketing Mix Strategies,ProductPlacePricePromotion,The channels used in moving the product from manufacturer to buyer,Marketing Mix Strategies,ProductPlacePricePromotion,Based on the
30、cost of making and marketing the product and on expected profitCustomaryPsychological,Marketing Mix Strategies,ProductPlacePricePromotion,Use face-to-face contact between marketer and prospective customerUsed to create immediate sales,How Agencies Work,Full-Service AgenciesInclude the four major sta
31、ff functionsAccount managementCreative servicesMedia planning and buyingAccount planningAlso have accounting, traffic, production, and HR departments,Specialized AgenciesSpecialize in certain functions, audiences, industries or marketsCreative boutiqueMedia-buying services,How Agencies Work,Account
32、ManagementActs as a liaison between the client and the agencyResponsible for interpreting the clients marketing strategy,Creative DevelopmentPeople who writePeople who design ideas for ads and commercials People who convert these ideas into commercials,How Agencies Work,Media Planning/BuyingRecommen
33、ds to the client the most efficient means of delivering the messageResponsible for buying, planning, and research,Account PlanningGathers all information on the market and consumers and acts as the voice of the consumerPrepares comprehensive recommendations,How Agencies Work,Internal Agency Services
34、Traffic departmentPrint production department,Revenues and ProfitsCommissionFeeRetainer,International Marketing,An international brand is available virtually anywhere in the worldThe shift requires new tools for advertisers, including one language, one control mechanism, and one strategic planThe ch
35、oice of an agency depends on the decision to standardize messages or localize them to accommodate local cultures,The Dynamics of Modern Marketing,Integrated marketingAll areas of the marketing mix work closely together to present the brand in a coherent and consistent wayRelationship marketingMarket
36、ing that considers all the firms stakeholdersPermission marketingInviting prospective customers to self-select into a brands target market in order to receive marketing communication,Advertising and Society,Part 1: FoundationsChapter 3,Chapter Outline,Chapter Key PointsAdvertisings Social RoleReview
37、 and Regulation of AdvertisingAdvertisings Regulatory EnvironmentMedia Review of AdvertisingSelf-RegulationAdvertising EthicsDetermining What is Ethical,Key Points,Discuss the shape-versus-mirror debateAnalyze the legal topics that guide advertising practiceList the key regulatory agencies and their
38、 responsibilitiesExplain the way the advertising industry regulates itselfCritique the key ethical issues that challenge the practice of advertisingOutline three ways to determine if an advertising decision is ethical,Advertisings Societal Role,Does advertising create a materialistic culture or does
39、 it simply reflect it?Critics believe that advertising has the power to shape social trends and the way people think and actAdvertising professionals believe advertising mirrors values rather than sets themAdvertising can potentially shape and mirror values,Review and Regulation of Advertising,Copyr
40、ight ProtectionTrademarkCopyright,First AmendmentCommercial speechOnly truthful commercial speech is protected, not misleading or deceptive statements,Advertisings Regulatory Environment,Federal Trade CommissionRegulating deceptionRegulating substantiationRemedies for deception and unfair advertisin
41、g,Deceptive advertising misleads customers by making claims that are false,Advertisings Regulatory Environment,Federal Trade CommissionRegulating deceptionRegulating substantiationRemedies for deception and unfair advertising,The advertiser should have a reasonable basis for making a product claim,A
42、dvertisings Regulatory Environment,Federal Trade CommissionRegulating deceptionRegulating substantiationRemedies for deception and unfair advertising,Consent DecreesCease-and-Desist OrdersCorrective AdvertisingConsumer RedressAdvertising Agency Legal Responsibility,Advertisings Regulatory Environmen
43、t,Food and Drug AdministrationOversees package labeling, ingredient listings, and advertising for food and drugsWatchdog for drug advertising,Federal Comm. CommissionCan issue and revoke licenses to broadcasting stationsCan ban messages that are deceptive or in poor taste,Advertisings Regulatory Env
44、ironment,Other Regulatory BodiesBureau of Alcohol, Tobacco, and FirearmsU.S. Postal ServiceStates Attorneys General,International RegulationsMarketing practices vary in legal and regulatory restrictionsInternational advertisers should have someone in the country who knows the local laws,Media Review
45、 of Advertising,The media attempts to regulate advertising by screening and rejecting adsThe First Amendment gives any publisher the right to refuse to publishThe Advertising Review Council designed the standards and guidelines used by major television networks,Self-Regulation,Self-disciplineIndustr
46、y self-regulationSelf-regulation with outside help,Most advertisers and agencies have in-house review proceduresEvery element of a proposed ad should be evaluated by an in-house committee or lawyers,Self-Regulation,Self-disciplineIndustry self-regulationSelf-regulation with outside help,National Adv
47、ertising Review CouncilNational Advertising DivisionNational Advertising Review BoardNegotiates voluntary withdrawal of deceptive advertising,Self-Regulation,Self-disciplineIndustry self-regulationSelf-regulation with outside help,Local GroupsConsumer Groups,Advertising Ethics,A set of moral princip
48、les that guide actions and create a sense of responsible behavior,Six key issuesPoor taste and offensive advertisingStereotypingBody and self imageTargeting childrenMisleading claims and other message strategiesControversial products,Advertising Ethics,Poor Taste/OffensiveAdvertisers and media outle
49、ts must try to be sensitive to consumer objectionsCreating guidelines for good taste is difficultSex in advertising,Reinforcing StereotypesDiversity IssuesGender RolesRacial and Ethnic StereotypesSenior Citizens,Advertising Ethics,Body and Self ImageSelf-image advertising can contribute to self-impr
50、ovementCan also lead to dangerous practicesAdvertising mirrors and shapes the standard of attractiveness,ChildrenOne of the most controversial topics in the industryChildren are unable to evaluate advertising messages and make purchasing decisions,Advertising Ethics,Misleading ClaimsAdvertising clai
