McGraw-Hill/Irwin

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

Chapter 1
What is Advertising Today?
Defining advertising and introducing the profession

Insert Bunny ad p. 3 Here

Objectives
Define advertising and differentiate it from other forms of marketing communications Define marketing and identify the four elements of marketing Explain how advertising differs from the basic human communication process Discuss advertisings role in marketing strategy

Differentiate consumer and business markets

perception, Exchanges What is Advertising? satisfaction

The structured and composed nonpersonal communication

Advertising
Usually paid for Usually persuasive in nature About products From identified sponsors Through various media

Communication: What makes Advertising Unique

The human communication process
Source Encoding Message Channel

Formulates Encodes it as a message an idea

Sends it via a channel

Communication: What makes Advertising Unique

The human communication process
Source Encoding Message Channel

Decoding

Receiver

Feedback

To be decoded

By a receiver

Communication: What makes Advertising Unique



Applying the communication process to advertising

Source Message Receivers

Sponsor Author
Within the text of the advertisement

Persona

Literary form
1. Autobiography 2. Narrative 3. drama

Implied consumers Sponsorial consumers Actual consumers

Feedback

Source Dimensions
Sponsor
Legally responsible Has a message for consumers Copywriter, art director, or creative group

Author

Creates the message but invisible to the audience

Persona

Real or imaginary spokesperson Represents the sponsor

Message Dimensions
Autobiography
I tell a story about myself to you, the imaginary audience Third person tells a story about others to imagined audience Characters act out events in front of imagined audience

Narrative

Drama

Receiver Dimensions
Implied consumers Sponsorial consumers Actual consumers
Ad texts presume an audience Gatekeepers who decide if the ad will run These implied consumers are not real Sponsors executives People in the real world who comprise the target audience

Applying the Communication Process to Advertising

Redeemed Coupons

Feedback and Interactivity

Phone Inquiries

Increased Sales

Survey Responses

perception, Exchanges What is Marketing? satisfaction

Marketing

Process of planning and executing The conception, pricing, distribution and promotion Of ideas, goods, and services To create exchanges that satisfy Perceived needs, wants, and objectives

Advertising and the Marketing Process

Marketing Strategy Determines
Where advertising should appear What the ads should accomplish

What media should be used

Who should be the targets

Identifying Target Markets and Target Audiences

Marketing Activities
Targe t Mark et

Total Market

Identifying Target Markets and Target Audiences

Advertising
Target
Audienc e

Total Audience

Types of Markets

Consumer Markets

Total Market
Industrial

Types of Markets

Consumer Markets

Total Market
Industrial

Types of Markets

Consumer Markets

Includes retail advertising Public service announcements

Types of Markets

Also called Business-to-business

Professional Specialized BTB Trade advertising Farm advertising advertising advertising:

Consumer Markets

Industrial

Implementing Marketing Strategy

Marketing Strategy:
A mix of controllable strategic elements:

Product Pricing

Distribution Communication

The Product Element

For virtually every product specialists use a specific type of advertising

Mass merchandise consumer package goods advertising

Tech or science products use high-tech advertising

Insurance or tax prep companies use service advertising

The Price Element

Does the company compete on price? YES NO

Sale advertising Clearance advertising Loss-leader advertising

The Price Element

Does the company compete on price? NO

Regular price-line advertising

Image advertising

The Distribution Element

Global Marketers
Global advertising sends consistent messages around the world

Brazil Turkey Spain Italy

The Distribution Element

Other Global Marketers
International advertising tailors messages to foreign markets

Turkey Spain Brazil Italy

The Distribution Element

National advertising
Companies marketing in several regions

The Distribution Element

Local Advertising
Businesses and retailers operating in a small trading area

Communication Element
Marketing Communications (marcom)
All planned messages That companies create And disseminate to support marketing Advertising Personal selling Sales promotion Public relations activities Collateral materials

Communication Element
Integrated Marketing Communications

Collateral Materials

Product Advertising

Sales Promotion Personal Selling Public Relations

Communication Element
Integrated Marketing Communications

Collateral Materials

Personal Selling

Sales Promotion

Public Product Relations Advertising