Introduction to Advertising

History and Roles

What is Advertising?

Advertising is:
Paid, Nonpersonal Communication From An Identified Sponsor Using Mass Media to Persuade or Influence an Audience.

Defining Modern Advertising

Advertising is paid persuasive communication Uses nonpersonal mass media to reach broad audiences to connect an identified sponsor with a target audience
Five basic components:
1. 2. 3.

4.

5.

Paid communication Sponsor is identified Tries to persuade or influence Reaches a large audience Conveyed through impersonal mass media
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Advertising Campaigns

A series of coordinated advertisements

Single advertisement placed in multiple media

Several different advertisements with a similar look, feel, and message

The Evolution of Advertising

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Age of Print

1850s1900
Industrial Revolution & Consumer Society

19001950s
Age of Science

1920s

Rise of Agencies

World War IWorld War II

Advertising Declines

1950s
Reintroducing Consumers to Marketing

1960s1970s
Creative Era

1970s1990s
Accountability Era

Historical Roles of Advertising

The Pre-industrial Age (up to start of 19th century)

The Industrializing Age (To WW1)

The Industrial Age (1900s to 1970s)

The Post Industrial Age (Starting 1980)

The Global Interactive Age

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Historical Roles of Advertising

The Pre-industrial Age (up to start of 19th century)

History of Advertising in America

Early America: 1600s to 1850 Rural communities, small towns
One blacksmith One general store People were self-reliant

Larger towns, cities

Multiple stores, services

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Kinds of Advertising
Before 1850
Signs on store fronts Posters Word of mouth

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Kinds of Advertising
1850-1920
Signs, posters, word of mouth Cards http://scriptorium.lib.duke.edu/dynaweb/ea a/databases/ephemera/@Generic__BookT extView/13685

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Catalogs Cookbooks Billboards

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Posters

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Historical Roles of Advertising

The Industrializing Age (Mid 1700s Europe /
1800s in U.S. To WW1)

Mass production / Need for mass consumption

Cost people less to buy products than to make them Manufacturers were concerned with production

Historical Roles of Advertising

The Industrial Age (1900s to 1970s)

Luxury

goods developed

Manufacturers

changed from a production orientation to a sales orientation

Historical Roles of Advertising

The Post Industrial Age (Starting 1980)

Age

of social responsibility / Quality of life issues advertising

Lifestyle

Historical Roles of Advertising

The Global Interactive Age

Growth

(Last 15 years)

in world markets

Roles of Advertising
Marketing Role
Marketing is the process a business uses to satisfy consumer needs and wants through goods and services.

Communication Role

Advertising is a form of mass communication. Improves standard of living and the economy by generating material consumption. Informs us about new and improved products, teaches us how to use these innovations, etc.

Economic Role

Societal Role

Roles of Advertising
Marketing Communicati on Economic Societal
The process a business uses to satisfy consumer needs by providing goods and services

Product category Target market Marketing mix Brand

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Roles of Advertising
Marketing Communicati on Economic Societal
Can reach a mass audience Introduces products Explains important changes Reminds and reinforces Persuades
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Roles of Advertising
Marketing Communicati on Economic Societal
Moves from being informational to creating demand Advertising is an objective means for providing pricevalue information, thereby creating a more rational economy

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Roles of Advertising
Marketing Communicati on Economic Societal
Informs consumers about innovations and issues Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer selfimage Perpetuates selfexpression

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Types of Advertising
Interactive Advertising Public Service Advertising Institutional Advertising Business-toBusiness Advertising Direct-Response Advertising Brand Advertising

Retail or Local Advertising

Political Advertising
Directory Advertising

Classifications of Advertising
By Target Audience
Consumer

By Geographic Area
Local (retail) Regional National

By Medium
Print Broadcast (electronic) Radio TV Out-of-Home Direct-Mail

By Purpose
Product
Nonproduct

Business

Commercial

Noncommercial
Action Awareness

International

Functions of Advertising
Provide Product & Brand Information

Provide Incentives To Take Action

Advertising Performs 3 Basic Functions

Provide Reminders and Reinforcement

The Functions of Advertising

Builds awareness of products and brands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases and brand experiences

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The Key Players

Advertiser (client) Agency Media Supplier Audience

Uses advertising to send out a message about its products Initiates the advertising effort by identifying a marketing problem Approves audience, plan and budget Hires the advertising agency

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The Key Players

Advertiser (client) Agency Media Supplier Audience

Has strategic and creative expertise, media knowledge, workforce talent, and negotiating abilities

Advertising department In-house agency

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The Key Players

Advertiser (client) Agency Media Supplier Audience

The channels of communication that carry the message to the audience Are also companies or huge conglomerates Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches

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The Key Players

Advertiser (client) Agency Media Supplier Audience

Assist advertisers, agencies, and the media in creating and placing the ads Vendor services are often cheaper than those in-house

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The Key Players

Advertiser (client) Agency Media Supplier Audience

The desired audience for the advertising message Data-gathering technology improves accuracy of information about customers Advertisers must recognize the various target audiences they are talking to and know as much about them as possible

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Current Advertising Issues

Interactive Advertising
Integrated Marketing Communication Globalization Niche Marketing Consumer Power, Relationship Marketing and Customization

History of Indian Advertising

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Pre Independence
Press advertisements largely imported goods which had reached Indian shores

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1930s
The talkies and radio emerge as media Colour movies

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1940s
2nd World War Famine Fight for Independence

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1950s
Watershed years for Indian advertising Industrial revolution in the Nehruvian era 1st survey of the rural market (Wood) Burmah Shell vans used for advertising Cinema advertising began Kolkata gets the privilege of Indias first ad club Leading ad agency - Press Syndicate National created the Murphy baby

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1960s
Indias first Advertising Convention (1960) Advertising to to be Indian in thought and content Shift to marketing orientation Professionalisation within agencies 1st Asian Advertising Congress at New Delhi Research data generated
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Contd
MRI (Market Rating Indices) Shop Audits NRS (National Readership Survey) I and II Creativity was emphasized Photography find increasing use Social marketing
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1970s
Media boom Special magazines 2nd Asian Advertising Congress at New Delhi Lifestyle studies, positioning Rural marketing
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1980s
Indianisation of western advertising Public sector advertising Expansion and diversification of agencies Aug 15th 1982 Colour TV introduced Radio commercials introduced NRS III by IMRB Colour Printing more popular
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Contd
Regional broadcasts, expansion of radio Formation of Indian chapter of International Advertising Association Formation of Advertising Standard Council of India (ASCI) Adoption of a new code Concept of sponsored programmes on TV
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1990s
NRS IV ( 2 surveys ORG and IMRB-MARG) Niche magazines Emphasis on Direct marketing Satellite TV CNN 1st channel to be beamed to India Star bouquet Zee bouquet DD Metro to counter satellite channels

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Contd
DD Audience surveys Movie channels and pay channels FM Radio Emphasis on Brand Equity Internationalization of Advertising NRS V IRS (Indian Readership Survey) survey Consumer Tracking and Satisfaction studies
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2000
NRS VI Internationalization of domestic agencies Net Advertising The role of the advertising agency changing to that of a marketing consultant
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Value of Objectives

Communication Focus and Coordination

They help to orient everyone involved toward one, common goal. They serve as criteria for developing plans and making decisions.

Plans and Decisions

Measurement and Control

They provide the standards and benchmarks for evaluating results.

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Types of Objectives
1. Marketing versus Communication Objectives

Statements of what is to be accomplished by the overall marketing program within a given time period.

Need to be quantifiable such as sales volume, market share, profits, or ROI. Need to be realistic, measurable and attainable

2. Sales versus Communication Objectives

Statements of how much sales is to be accomplished by the overall promotional program within a given time period.

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Not all Ads are Designed to Achieve Sales

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Problems With Sales Objectives

Sales are a function of many factors, not just advertising and promotion.
Effects of IMC tools such as advertising often occur over an extended time period.

Sales objectives provide little guidance to those responsible for planning and developing the Ad program
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Many Factors Influence Sales

Product Quality

Promotion

Competition

Technology

SALES

Distribution

The Economy

Price Policy

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When Sales Objectives Are Appropriate

For

promotional efforts that are direct action in nature and can induce an immediate behavioral response.
Sales promotion Direct response advertising Retail advertising for sales or special events

When

advertising plays a dominant role in a firms marketing program and other factors are relatively stable

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Sales Objectives are Appropriate for Direct Response Advertising

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Communication Objectives
The primary goal of an Ad program is to communicate and planning should be based on communications objectives such as: brand awareness, knowledge, interest, attitudes, image and purchase intention
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Advertising and Movement Toward Action

Related behavioral dimensions Movement toward purchase Types of promotions and advertising at each step

Conative
1. Realm of motives. 2. Ads stimulate or direct desires.

Purchase

Point of purchase Retail store ads, Deals Last-chance offers Price appeals, Testimonials

Conviction

Affective
1. Realm of emotions. 2. Ads change attitudes and feelings

Preference
Liking

Competitive ads Argumentative copy

Image copy Status, glamour appeals

Announcements Descriptive copy Classified ads Slogans, jingles, skywriting Teaser campaigns
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Cognitive
1.Realm of thoughts. 2. Ads provide information and facts.

Knowledge

Awareness

Inverted Pyramid of Communications Effects

90% Awareness

70% Knowledge
40% Liking

25% Preference
20% Trial 5% Use
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The DAGMAR Approach

Define Advertising Goals for Measuring Advertising Results

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Characteristics of Objectives
Good Objectives Should Include:

Concrete, Measurable Communication Tasks Well-Defined Target Audience Have an Existing Benchmark Measure Specify Degree of Change Sought Specific Time Period

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Legitimate Problems

DAGMAR Difficulties

Questionable Objections Sales Objectives Are Needed

Response Hierarchy Problems

Doesn't always define the process people use to reach purchase/use.

Sales are all that really counts, not communications objectives. The research and efforts cost more then the results are worth. Too many rules and structure curb genius.
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Costly and Impractical

Attitude - Behavior Relationship

Attitude change doesn't always lead to change in actions or behavior.

Inhibition of Creativity

Ethics in Advertising
Ethics: Moral principles and values that govern the actions of and individual or group.

Not all issues can be regulated A marketing or promotion action may be legal but not considered ethical Marketers must make decisions regarding the appropriateness of their actions Companies are scrutinized for their ethics

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Advertising and Ethics Two Viewpoints

Proponents
Advertising

Critics
Advertising

Provides information Encourages a standard of living improvement Produces jobs Promotes competition

Creates needs and faults

More propaganda than information

Promotes materialism

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Social and Ethical Criticisms of Advertising

Advertising as untruthful or deceptive

General mistrust of ads Deliberately untruthful or misleading vs. puffery Problems often more at local level rather than national Advertising of personal products Sexual appeals Suggestive, demeaning, raunchy Advertising and Children

Advertising as offensive or in bad taste

Shock advertising Social and Cultural Consequences

Making people buy things they dont need Encouraging materialism Stereotyping Advertisings influence on the media
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Many people found Benettons Death Row ad campaign offensive

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American Advertising Federation Advertising Principles 1. Truth

Advertising shall reveal the truth, and shall reveal significant facts, the omission of which would mislead the public. 2. Substantiation Advertising claims shall be substantiated by evidence in possession of the advertiser and the advertising agency prior to making such claims.

3. Comparisons
Advertising shall refrain from making false, misleading, or unsubstantiated statements or claims about a competitor or his products or service. 4. Bait advertising Advertising shall not offer products or services for sale unless such offer constitutes a bona fide effort to sell the advertised products or services and is not a device to switch consumers to other goods or services, usually higher priced.

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5. Guarantees and warranties

Advertising of guarantees and warranties shall be explicit, with sufficient information to apprise consumers of their principal terms and limitations or, when space or time restrictions preclude such disclosures, the advertisement shall clearly reveal where the full text of the guarantee or warranty can be examined before purchase. 6. Price claims Advertising shall avoid price claims that are false or misleading, or savings claims that do not offer provable savings. 7. Testimonials Advertising containing testimonials shall be limited to those of competent witnesses who are reflecting a real and honest opinion or experience.

8. Taste and decency

Advertising shall be free of statements, illustrations, or implications that are offensive to good taste or public decency.
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Advertising and Children

Children's TV Watching Behavior

Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year
Television is an important source of information for children about products
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Some studies have shown

Children lack experience and knowledge to evaluate advertising critically They can not differentiate between commercials and program (fantasy vs. reality) Children are vulnerable to advertising

while other studies argue

Children must learn through the consumer socialization process; need to acquire skills to function in the marketplace Acquired skills have helped teens evaluate ads and recognize persuasion techniques
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Social and Cultural Consequences of Advertising

Does advertising encourage consumption, or merely reflect our societys need for it?
Advertising and its related arts thus help develop the kind of man

the goals of the industrial system requireone that reliably spends his income and works reliably because he is always in need of more John Kenneth Galbraith To blame advertising now for those most basic tendencies in American history is to miss the pointThe people who have created modern advertising are not hidden persuaders pushing our buttonsthey are just producing an especially visible manifestation, good and bad, of the American way of life. Stephen Fox
The Mirror Makers: A History of American Advertising and Its Creators
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Social and Cultural Consequences of Advertising

Advertising

makes people buy things they

dont need

Advertising may encourage materialism Information versus persuasion dichotomy

Does advertising really have that much power?

Freedom of choice

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Advertising and Stereotyping

Portrayal

of women

Gender stereotyping Portrayal of women as sex objects Role portrayal of women to reflect changing role in society

Blacks Gays

and Hispanics

Elderly
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