Chap 001

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Chapter1What is Advertising

Today?

Defining advertising and introducing the

profession

Insert Bunny adp. 3Here

Objectives

Define advertising and differentiate it from

other forms of marketing

communications

Explain how advertising differs from

the basic human communication

process

Discuss advertising’s role in marketing

strategy

Define marketing and identify the four

elements of marketing

Differentiate consumer and business markets

Exchanges perception, satisfactionWhat is Advertising?

Usually paid for

Usually persuasive in nature

About products

From identified sponsors

The structured and composed nonpersonal communication

Advertising

Through various media

Communication: What makes Advertising Unique

Source

Formulates an idea

Encoding

Encodes it as a message

Message Channel

Sends it viaa channel

The human communication process

Communication: What makes Advertising Unique

Source Encoding Message Channel

Decoding

To be decoded

Receiver

By a receiverFeedback

The human communication process

Feedback

Sponsor

Author

Communication: What makes Advertising Unique

Applying the communication process to advertisingSource Message Receivers

Within the text of the advertisement

Persona Literary form1. Autobiography2. Narrative3. drama

Implied consumers

Sponsorialconsumers

Actual consumers

Source Dimensions

Legally responsible

Has a message for consumersSponsor

Copywriter, art director, or creative group

Creates the message but invisible to the audience

Author

Real or imaginary spokesperson

Represents the sponsorPersona

Message Dimensions

“I” tell a story about myself to “you,” the imaginary

audience

Autobiography

Third person tells a story about others to imagined

audience

Narrative

Characters act out events in front of imagined audience

Drama

Receiver Dimensions

Ad texts presume an audience

These implied consumers are not real

Implied consumers Gatekeepers who decide if the ad

will run

Sponsor’s executives

Sponsorial consumers

People in the real world who comprise the target audience

Actual consumers

Applying the Communication Process to Advertising

Redeemed Coupons

PhoneInquiries

IncreasedSales

SurveyResponses

Feedback and

Interactivity

Exchanges perception, satisfactionWhat is Marketing?

Process of planning and executing

The conception, pricing, distribution and promotion

Of ideas, goods, and services

To create exchanges that satisfy

Marketing

Perceived needs, wants, and objectives

Who shouldbe the targets

Advertising and the Marketing Process

Where advertising

should appear

Whatmediashould

be used

What the adsshould

accomplish

Marketing Strategy

Determines

Identifying Target Markets and Target Audiences

Total Market

Target

Market

Target

Market

Marketing Activities

Identifying Target Markets and Target Audiences

TotalAudience

TargetAudienc

e

TargetAudienc

e

Advertising

Types of Markets

Total Market

Industrial

ConsumerMarkets

Types of Markets

Total Market

Industrial

ConsumerMarkets

Types of Markets

Includes retailadvertising

Public service announcements

ConsumerMarkets

Types of Markets

ConsumerMarkets

Industrial

Also called Business-to-business

Trade advertisingProfessional advertising

Farm advertisingSpecialized BTB advertising:

Implementing Marketing Strategy

Marketing Strategy:A mix of controllable strategic elements:

Product

Pricing

Distribution

Communication

Insurance or tax prep

companies use service

advertising

Mass merchandise:

consumerpackage goods

advertising

Tech or science products use

high-techadvertising

The Product Element

For virtually every productspecialists use a specific

type of advertising

NO

The Price Element

Does the companycompete on price?

YES

Sale advertising

Clearance advertising

Loss-leader advertising

NO

The Price Element

Does the companycompete on price?

Imageadvertising

Regular price-lineadvertising

The Distribution Element

Global Marketers

Global advertising sends consistent messages

around the world

ItalyBrazilTurkeySpain

The Distribution Element

Other Global Marketers

International advertising tailors messages to

foreign markets

ItalyBrazilTurkeySpain

The Distribution Element

Nationaladvertising

Companies marketing in several regions

The Distribution Element

LocalAdvertising

Businesses and retailersoperating in a small

trading area

Communication Element

MarketingCommunications

(marcom)

All planned messagesThat companies create

And disseminate to supportmarketing

Advertising

Personal selling

Sales promotion

Public relations activities

Collateral materials

Communication Element

IntegratedMarketing

Communications

CollateralMaterials

SalesPromotion

ProductAdvertising

PersonalSelling

PublicRelations

Communication Element

IntegratedMarketing

Communications

CollateralMaterials

SalesPromotion

ProductAdvertising

PersonalSelling

PublicRelations