Unit 1

Who is the advertiser?

• Company which is promoting a branded product or service (warehouses,
supermarket chains, ideas, etc.).
• Organization (government or NGO) is promoting social, ecological,
cultural, economical values and behaviours (government: public
service announcement PSA).
• Private person or small business is trying to find (a)
sellers/buyers for single object or limited number of objects (eBay,
real estate or apartment ad) or (b) personal contacts (job posting,
‚classified ads‘ or ‚local ads‘)
Number of Receivers
• Individuals = direct marketing & personal selling
• Disperse, unnumbered audience (i.e. the ‚public‘ or ‚masses‘) = mass
communication
Status of Receiver
• Consumers (B2C)
• Professionals (e.g., medical service, lawyers, scholars)
• Business partners (B2B; e.g. wholesalers, retailers)
Integration of ad in media vehicle
• Fully integrated (e.g., TV commercial, radio spot, newspaper or
magazine ad)
• Partially integrated (brochure inside newspaper)
• medium (e.g., outdoor billboards)
Push vs. pull ad strategy
• Individual receives ad without intention & might find ad brothering
(all examples above) Individual receives ad without intention (‚push‘)
• Individual demands ad by intention (catalogues, brochures, newsletter)
All kinds of ‚classical‘ mass media advertising share the same
characteristics:• Company advertising branded product
• Receivers are consumers (B2C)
• Disperse, unnumbered audience
• Advertiser only addresses part of the whole population=target audience)
and Within target audience definition, whole population is
addressed
• Ad is fully integrated in media vehicle
An advertising company can choose between
• In-house advertising operation
Necessitates employing an advertising staff
Only profitable in case of large and continuous advertising
• Full-service advertising agencies
Advantages: In-depth knowledge and skills, coordination of all
advertising & marketing efforts
Disadvantages: loss of control; larger clients are favored over
small clients
• Purchase services a la carte from specialists (boutiques)
Advantages: Use services only when needed, potential cost
efficiencies
Disadvantages: Specialists approach client problems in a
stereotyped fashion, complex coordination of different boutiques
Creative services: develop advertising copy & campaigns; copywriters,
production people, creative directors
Media services
• Media planning: develop overall advertising strategy for reaching the
target audience with the given budget (where to advertise, when,
how often?)
• Media buying: buy ad space from media vehicles
•Research services: study customers‘ buying habits, preferences,
monitor current media scene, conduct & monitor research on ad effects
etc. = market research
•Account management: ‚interface‘ between client and agency 􀃎 client
does not need to interact directly with different departments & specialists
 Product or brand advertising
 • Advertising for product/brand with the basic objective to increase
 sales (i.e. product awareness, liking, etc.)
 Corporate image advertising
 • Advertising affects image of company as innovative, modern, strong,
 globally acting, etc
 • No product or brand involved
 • Idea: positive image of company will be transferred to products
 Issue or advocacy advertising
 • Company takes a position in a controversial social or political issue
 • Idea: image transfer (compare sponsorship)
 Definition
 Superiority claims based on unique physical feature or benefit of product
 Conditions
 • Most useful when point of difference cannot be readily matched by
competitors, i.e. product has unique characteristic or can uniquely satisfy need
Whenever applicable, USP is the most successful strategy
 Example
 • Smart as only prestigious micro car on the market
 Definition
 • Claims based on psychological differentiation between individuals
 • Associating product with positive symbols, e.g., freedom,
 individuality, cleverness, coolness, inventiveness, creativity
 • Transfer from symbol to brand (􀃆 image of brand)
 Conditions
 • Best for homogeneous goods where differences are difficult to
 develop
 Examples
 • Cigarettes, canned food, detergents
 Definition
 Attempts to evoke stored experiences of prospects to give
product relevant meaning or significance
 Example: „Do you know the situation? You wash last week‘s
dishes and your dish liquid isn‘t strong enough for all that
grease!“
 Conditions
 Only works if consumer shares experience/s
 Attempts to provoke involvement or emotion
through ...
Positive emotions, e.g., humor, love, friendship
Ambivalent emotions
Negative emotions, e.g. fear, shame
 Conditions
 Best suited to products that are naturally associated
with emotions
 Examples
 Jewellery, cosmetics, fashion, cars, mobile phoning
(„Call your family at home!“)
• Advertising is a paid form of communication, although some form of
advertising such as public service announcements use donated space and
time.
• Not only is the message paid for but the sponsor is identified
• Most advertising tries to persuade or influence the consumer to do
something
• Advertising reaches to large audience of potential consumer
• The message is conveyed through many different kinds of mass media
which are non personal.
 Institute of practitioners in advertising
definition says; advertising presents the most
persuasive possible selling message to the
right prospect for the product or service at
the lowest possible cost
 Here we refer to 4 broad factors
 Strategy,
 creative idea,
 creative execution and
 creative media use
 Good advertisers know that how you say something and
where you say it is just as important as what you say. What
you say and where you say comes from strategy, where as
how you say it is a product of creativity and execution.
Strategy, the creative idea, its execution, and the media
used all determine the effectiveness of an advertisement.
 Four Roles of Advertising
 1. Marketing
 2. Communication
 3. Economic
 4. Societal
 Functions of Advertising
 1. Build awareness of products and brands
 2. Creates brand image
 3. Provides product and brand information
 4. Persuades people
 5. Provides incentives to take action
 Provides brand reminders
 Reinforces past purchases and brand experiences
 The advertiser
 The advertising agency
 The media
 The suppliers (Vendors)
 The target audience
 Geographical spread
 Target Group
 Public awareness advertising
 Product advertising
 Service advertising
 Corporate/Institutional advertising
 Public service advertising
 Non-profit advertising

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