1-1 Introduction to Advertising A Passion for the Business Chapter 1.

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Introduction to Advertising

A Passion for the Business

Chapter 1

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SURPRISE QUIZ?

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Who am I?

Veni Vidi Vici1-15

Questions We’ll Answer

• What is advertising and what are its key components?

• How has advertising evolved?• What are advertising’s main roles?• Who are the key players in advertising?

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CHAPTER KEY POINTS

Defining Modern Advertising

The Evolution of the Definition of Advertising• Identification

– Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store.

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WHAT IS ADVERTISING?

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Lincoln Cathedral-1400 A.D.

Defining Modern AdvertisingThe Evolution of the Definition of Advertising• Identification

– Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store.

• Information – Gutenberg’s movable type mechanized the printing

process leading to mass communication.

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WHAT IS ADVERTISING?

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Defining Modern AdvertisingThe Evolution of the Definition of Advertising• Identification

– Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store.

• Information – Gutenberg’s movable type mechanized the printing

process leading to mass communication.• Promotion

– The Industrial Revolution led to surplus goods, improved transportation, and the need for new media.

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WHAT IS ADVERTISING?

When supply outstrips demand

• Wants vs. Needs• Need to create preference

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• http://www.youtube.com/watch?v=DXRaboSo70A&feature=related

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Defining Modern AdvertisingThe Evolution of the Definition of Advertising• Identification

– Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store.

• Information – Gutenberg’s movable type mechanized the printing

process leading to mass communication.• Promotion

– The Industrial Revolution led to surplus goods, improved transportation, and the need for new media.

• Brand Sales– Advertisers became concerned about making ads that

worked and defining standards of effective advertising.1-28

WHAT IS ADVERTISING?

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Defining Modern Advertising

• A type of communication intended to impact consumer thoughts, feelings and actions.

• A form of marketing communication

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WHAT IS ADVERTISING?

Defining Modern Advertising

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Five Basic Factors of Advertising

1. Paid communication

2. Sponsor is identified

3. Tries to inform or persuade

4. Reaches a large audience

5. Message conveyed through many different kinds of largely nonpersonal mass media

WHAT IS ADVERTISING?

What is your book’s definition?

“Advertising is a paid form of communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience) and provide information about products (goods, services, ideas).”

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Let’s have a working definition

Advertising is a sponsored media message intended to persuade you to think, do, or buy something.

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•Strategy•Creative idea

•Execution•Media

• The strategy is the logic and planning behind the ad that gives it direction.

WHAT IS ADVERTISING?

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•Strategy

•Creative idea

•Execution

•Media

• The central idea grabs the consumer’s attention and sticks in memory.

WHAT IS ADVERTISING?

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•Strategy

•Creative idea

•Execution

•Media

• Production Values

WHAT IS ADVERTISING?

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•Strategy

•Creative idea

•Execution

•Media

• Television, Internet, magazines, and other media are used to reach a broad audience.

ROLES AND TYPES OF ADVERTISING

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•Marketing

•Communication

•Economic

•Societal

• Marketing is satisfying customer wants and needs by providing products (goods, services, ideas).

ROLES AND TYPES OF ADVERTISING

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•Marketing

•Communication

•Economic

•Societal

• Advertising is a message to a consumer about a product, designed to create a response.

ROLES AND TYPES OF ADVERTISING

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•Marketing

•Communication

•Economic

•Societal

• Cost-efficient and lowers prices for consumers.

• Advertising creates a demand for a brand using hard sell (persuading) and soft sell (image building) techniques.

ROLES AND TYPES OF ADVERTISING

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•Marketing

•Communication

•Economic

•Societal

• Informs about innovations and issues

• Helps us compare products• Mirrors fashion and design

trends• Helps shape consumer self-

image• Facilitates self-expression• Presents images about

diversity in our world

ROLES AND TYPES OF ADVERTISING

Types of Advertising

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• Brand Advertising– Focused on long-term brand identity and image

• Retail or Local Advertising– Focused on selling merchandise in a

geographical area

• Direct Response Advertising– Tries to stimulate a sale directly

• Business-to-Business– Sent from one business to another

ROLES AND TYPES OF ADVERTISING

Brand ad

• Ariel Ad

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Brand or Retail?

• Burger King

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Types of Advertising

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• Institutional (Corporate) Advertising– Focused on establishing a corporate identity or

winning the public over to the organization’s point of view

• Nonprofit Advertising– Used by nonprofits like charities, hospitals,

orchestras, museums, and churches for customer, members, volunteers, and donors

• Public Service Advertising– Usually produced and run for free on behalf of

a good cause

ROLES AND TYPES OF ADVERTISING

Advertiser

•Advertiser (client)

•Agency•Media•Supplier•Audience

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• Wants to send out a message about its business

THE KEY PLAYERS

Top Ten U.S. Advertisers

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THE KEY PLAYERS

Agency

•Advertiser (client)

•Agency•Media•Supplier•Audience

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• Agencies have the strategic and creative expertise, media knowledge, talent, and negotiating abilities to operate more efficiently than the advertiser.

• Some large advertisers have in-house departments.

THE KEY PLAYERS

Top Agencies

• McCann-Erickson• BBDO• JWT• Y&R• DDB• O&M

• Grey• Campbell-Ewald• Draft FCB• TBWA• Saatchi & Saatchi• Leo Burnett

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Homework

• Visit the sites of the top 5 ad agencies• Write a paragraph about which one

impressed you the most and why.• Email to Kate (cc: me) before next class.

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Inside an ad agency

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Media

•Advertiser (client)

•Agency•Media•Supplier•Audience

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• Media are channels of communication that carry the message to the audience.

• They’re vehicles, but also large media conglomerates like Time Warner and Viacom.

• Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches.

THE KEY PLAYERS

Supplier

•Advertiser (client)

•Agency•Media•Supplier•Audience

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• Service organizations that assist advertisers, agencies, and the media in creating and placing ads by providing specialized services

• Artists, writers, directors, photographers, producers, printers, freelancers, and consultants

THE KEY PLAYERS

Audience

•Advertiser (client)

•Agency•Media•Supplier•Audience

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• People to whom an ad is directed —their responses determine if advertising is effective.

• Targeting is the process of identifying the people in the desired audience.

THE KEY PLAYERS

Bill Bernbach:

“Rules are what the artist breaks. The memorable never emerged from a formula.”

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The greatest commercial ever made1984

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What Makes an Ad Effective?• Gets attention• Creates a positive impression for a brand• Separates the brand from the competition • Influences people to respond in the desired

way• An ad that works—that is effective—is one

where the target audience responds as the advertiser intended.

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CURRENT DEVELOPMENTS

If you remember one thing

Effectiveness is the target audience responding as the advertiser intended

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Vicky’s Corner

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