Advertising

Advertising Todays Lesson

 

     

Course Outline Course Description and introductory questions Advertisements Advertising in Context Brand and Marketing Mix Role of advertising Integrated communications Summary and Discussion
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Advertising


Definition:Definition:-

A process of delivering a message about ideas, goods and services, through the media, paid by an identifiable sponsor.

Advertising


Anything that calls attention to a product or service

Examples: - TV commercial - Newspaper/magazine ad - Poster - Clothing - Cigarette lighter, .

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Advertisements


Advertisements are not just advertising. Defn: a) To describe the process of using advertisements to sell things B) to refer to the industry that produces the ads.

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Advertisements


above the-line advertising in thethe media Below the line point of sale messages

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Advertising in Context


Who engages in advertising? Businesses, governments, and individuals.

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The importance of advertising

  

Involves a huge amount of money Work is done by relatively few people Major expense is for media time/space Companies spend only a small percentage of sales on advertising

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Types of advertising


Product advertising Tries to sell a specific product to final users or channel members
Pioneering advertising builds primary demand Competitive advertising builds selective demand

Corporate/institutional advertising Tries to promote an organisation's image, reputation or ideas rather than a specific product
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Objectives of advertising


To cause awareness . To persuade To create image. To remind

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The meaning of objectives

Awareness
Teaching: Name, pacakaging&labels, Claims,promise,usa ge. Brand Association: Logos, slogans,jingles etc

Persuasion
Emotional: whats best for your lifestyle, status, self perception. perceptual: Brand attributes

Image
Outstanding: Attracting attention, difference from compettiors. Interest: Creating Involvement Remembering: Brand and logos.

Differentiation: In characteristics

Behavior: Motivation for buying, repeated purchase.

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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

Course Description


Although advertising is an accepted part of every day life, there is still great debate as to how advertising works and the role it can and should perform within the marketing communication mix. This module enables the students to review this debate and apply the theories to the advertising in our media today. They will learn how to put together an advertising plan and will examine the ingredients of an effective advertisement and ways in which this effectiveness can be measured
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Advertising in context


Media advertising is becoming less, rather than more, important in the overall scheme of marketing communications. Chapter 13 will show us that this is not necessarily for good reasons but it is a fact.

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Advertising in context
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FastFast-moving consumer goods (fmcg) Key factor - weekly feedback Short term results from sales promotion Budgets shift to below-the-line below-theIe: various types of price cutting
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Advertising in context


This can actually lead to an increase in the price elasticity of brands - therefore self-defeating selfIn long run consistent media advertising can build the strength of a brand.
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Brand and Marketing mix

 

What is a Brand? It is a product whose producer has made every effert to make it uniquely desirable to potential buyers, consistently using every element in its presentation to do so.

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Brand and Marketing mix



Why do companies do this? If done well, it makes the brand difficult to compete against. It develops an aura making it appear better than its competition.

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Brand and Marketing mix



A brand is created by all the elements of the marketing mix working together. Creates a positive prejudice in peoples minds.

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Brand and Marketing mix



Defn Marketing Mix: a range of tools and techniques that allows businesses to provide customers with what they want. It acts as a conduit for consumer demand to reach businesses. Thusly, turning this demand into profitable sales.

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Brand and Marketing mix

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These tools include: Product formulation and variation Packaging Sales literature The sales force Pricing Sales promotion Direct mail Advertising Market research Branding
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Brand and Marketing mix



Components of the marketing mix Net sales value Costs and contribution The marketing mix

1) 2) 3)

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Net sales value

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Gross margin Cost of goods Materials Packaging Manufacturing

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Costs and contribution

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Operating contribution Selling costs (the marketing mix) Sales Distribution Communications Research

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The marketing mix

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Sales and distribution costs The communications mix Advertising PR Direct marketing Promotions Exhibitions Etc.
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Role of Advertising


 

Simply put: Advertising exists to help to sell things. It is mainly about brands It is mainly designed to create and strengthen consumer impressions of the brand Exception is public service advertising
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ADVERTISING

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Role of advertising
Marketing  Communication  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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Role of advertising
Marketing  Communication  Economic  Societal




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Can reach a mass audience Introduces products Explains important changes Reminds and reinforces Persuades
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Role of advertising
Marketing  Communication  Economic  Societal



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Moves from being informational to creating demand Advertising is an objective means for providing priceprice-value information, thereby creating a more rational economy

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Role of advertising
Marketing  Communication  Economic  Societal




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Informs consumers about innovations and issues Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer selfselfimage Perpetuates selfselfexpression 31

Integrated Communications


Advertising is part of total continuum of communications about the brand. It may have a leading role and carry the greatest budget: but it can be merely cast in a supporting role for a campaign of activity centered around an event.

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The importance of advertising

  

Involves a huge amount of money Work is done by relatively few people Major expense is for media time/space Companies spend only a small percentage of sales on advertising

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Types of advertising


Product advertising Tries to sell a specific product to final users or channel members
Pioneering advertising builds primary demand Competitive advertising builds selective demand

Corporate/institutional advertising Tries to promote an organisation's image, reputation or ideas rather than a specific product
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Major advertising media

       

Magazine Television Newspaper Yellow Pages Radio Outdoors Cinema Internet

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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 In-

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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 ininhouse

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The Key Players

Advertiser (client)  Agency  Media  Supplier  Audience



The desired audience for the advertising message DataData-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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Types of Advertising
      

Brand advertising Retail or Local advertising DirectDirect-Response advertising Business-toBusiness-to-Business advertising Institutional advertising Nonprofit advertising Public Service advertising
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What Makes an Ad Effective?

1.

2.

3.

If it creates an impression for a product or brand If it influences people to respond in some way If it separates the product or brand from the competition in the mind of the consumer

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Conclusion


Advertising agencies: how they work, how they are organized, and how to choose and use one. Advertising strategy: how to think about what the ads are trying to do, and understanding the people they are aimed at. How good advertisements can be created.
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conclusion


 

  

Media: what is available, and how it is bought, sold and planned. Putting a campaign plan together. Judging advertisements and evaluating campaigns. The law, regulation and self-regulation selfAdvertising internationally and globally If we have time The relationship between advertising and the economy and society
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Summary and Conclusion



Advertising is a core part of many companies marketing mix: the activities that link a brand to its market and its consumers or customers Traditionally, media advertising has taken the lions share of marketing communications budgets, at least for most consumer goods companies, since it is a costcost-effective means of reaching large numbers of people.
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Summary and Conclusion



As media and markets have fragmented, however, other forms of communication are gaining importance, and advertising is increasingly seen as just part of an integrated communications programme As such, advertising works together, and integrates with, a variety of other forms of communication.

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Questions for discussion



Is advertising becoming more or less important to companies? Why should this be so? How might the marketing mix differ for a brand of frozen food, a charity and a bank?

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