Introducti

on to 1
Advertisin
g
 Outline

• The mandate for effectiveness

• What makes an ad effective?
• The world of advertising
• The five players of advertising
• The evolution of advertising

Chapter 1: Introduction to Advertising 2

 Objectives

Be able to:
• Discuss the elements of effective
advertising
• Define advertising and identify its
types and roles
• Identify the five players in the
advertising world
• Explain the evolution of the ad
industry and the current issues it faces

Chapter 1: Introduction to Advertising 3

 The Mandate for
Effectiveness
• Today advertising is in a bind
– A down economy
– Tragedy of 9/11
– New technologies that threaten how
advertising works
• Advertisers expect specific results that
lead to sales
• Advertising must be effective

Chapter 1: Introduction to Advertising 4

 What Makes an Ad
Effective?
• Effective ads work on two levels: with
consumers and with advertisers.
– Consumers
• View ads for entertainment or out of
curiosity
• May then learn the ad relates to a need
• May receive an incentive to risk change
• May find reinforcement for product
decisions
– Advertisers
• Ads must gain consumers’ attention
• Ads must hold attention long enough to
change consumer purchasing behavior
Chapter 1: Introduction to Advertising 5
 What Makes an Ad
Effective?

Chapter 1: Introduction to Advertising 6

 Strategy

• Advertisers develop ads

to
– Meet specific objectives
– Target a certain
audience
– Speak to that audience’s
most important concerns
– Appear in media that
will reach the audience
most effectively

Chapter 1: Introduction to Advertising 7

 Creativity
• The creative concept is
the ad’s central idea
– Grabs your attention
– Sticks in your memory
• Creativity drives the
entire advertising field
– Planning strategy
– Conducting research
– Buying and placing ads

Chapter 1: Introduction to Advertising 8

 Execution
• Effective ads are well-
executed
– Details, photos,
printing, production
values have been finely
tuned
– How you say it is as
important as what you
say

Chapter 1: Introduction to Advertising 9

 Ads Must Be
Goal-Directed
• The intended effects of advertising are
important for evaluating effectiveness
• These goals include
– Perception
• Will the ad be attended to and
remembered?
– Learning
• Will the audience understand the
message and make correct
associations?

Chapter 1: Introduction to Advertising 10

 Ads Must Be
Goal-Directed
• These goals include (cont.)
– Persuasion
• Does the ad change attitudes and touch
emotions?
– Behavior
• Will the audience try the product?

Chapter 1: Introduction to Advertising 11

 A Model of Key
Effects

Chapter 1: Introduction to Advertising 12

 Message Effectiveness Factors
Message Surrogate Measures Communication Tools
Effects
Perception Exposure Advertising Media; PR
Attention Adv; Sales Promotion
Interest Adv; SP; PR
Memory: recognition/recall Adv; SP; PR

Learning Understand PR, Personal Selling, DM, Adv

Image and association brand links Adv, PR, POP

Persuasion Attitudes: Form or change PR, Personal Selling, SP

Emotions and involvement Adv, PR, Personal Selling
Conviction: belief, commitment Personal Selling, Direct Marketing

Behavior Trial SP; Personal Selling, DM

Purchase SP; Personal Selling, DM
Repeat purchase, use more SP; Personal Selling, DM

Chapter 1: Introduction to Advertising 13

 The World of
Advertising
• Advertising defined:
– A paid form of communication
– A sponsor is identified
– Tries to persuade or influence the
consumer to do something
– Is conveyed through different mass
media
– Reaches a large audience of potential
consumers
– Is nonpersonal

Chapter 1: Introduction to Advertising 14

 The World of
Advertising
• Types of Advertising
– Brand advertising: focuses on
developing a long-term brand identity
and image
– Retail/local advertising: focuses on
retailers or manufacturers that sell
merchandise in a restricted area
– Political advertising: focuses on
politicians attempting to persuade
people to vote for them or their ideas

Chapter 1: Introduction to Advertising 15

 The World of
Advertising
• Types of Advertising (cont.)
– Directory advertising: used by
people to find how to buy a
product or service
– Direct-response advertising: uses
any ad medium to directly
stimulate a sale
– Business-to-business
advertising: messages directed at
retailers, wholesalers,
distributors, purchasers and
professionals

Chapter 1: Introduction to Advertising 16

 The World of
Advertising
• Types of Advertising (cont.)
– Institutional advertising:
corporate advertising used to
establish an identity or influence
public opinion
– Public service advertising (PSA):
communicates a message for a
good cause
– Interactive advertising: delivered
to individual consumers who
have access to a computer and
the Internet

Chapter 1: Introduction to Advertising 17

 The Roles of
Advertising
• Marketing role
– Carry persuasive messages to
actual/potential customers
• Communication role
– Advertising transmits market
information to match buyers and sellers
in the marketplace

Chapter 1: Introduction to Advertising 18

 The Roles of
Advertising (cont.)
• Economic role
– Advertising may make consumers less
price sensitive, or
– Advertising may help consumers better
assess value
• Societal role
– Ads inform about new products, help
consumers compare products, mirror
fashion, influence taste

Chapter 1: Introduction to Advertising 19

 Functions of
Advertising
• Advertising can function
to:
– Provide product and
brand information
– Provide incentives to
take action
– Provide reminders and
reinforcement

Chapter 1: Introduction to Advertising 20

 Questions for
Discussion
• Advertisers have turned to feature films
to promote products (James Bond drives
a particular foreign car, characters in
other films drink a particular brand of
beer or soda).
• Does this approach fulfill the three basic
functions of advertising?
• How are the four major roles of
advertising influenced by this approach?

Chapter 1: Introduction to Advertising 21

 The Five Players of
Advertising
• Advertiser
– Organization that needs to advertise
• Advertising agency
– Firms that plan and implement
advertising efforts
• Media
– Channels that carry the message from
advertiser to audience

Chapter 1: Introduction to Advertising 22

 The Five Players of
Advertising
• Vendors
– Service people/organizations that assist
advertisers, agencies, and media
• Target audience

Chapter 1: Introduction to Advertising 23

 The Evolution of
Advertising
• Age of print
– Ads were primarily
classified in format
• Industrial revolution and
emergence of consumer
society
– Social and technological
developments led to
growth in importance and
size of advertising

Chapter 1: Introduction to Advertising 24

 The Evolution of
Advertising (cont.)
• Modern advertising:
Agencies, science and
creativity
– Ad industry grew to
$500 million in billings
• Accountability era
– Clients demand results
– Agencies linked to
global business
environment

Chapter 1: Introduction to Advertising 25

 Current Advertising
Issues
• Interactive advertising
– Will technology change the face of
advertising?
– Is the promise of technology
exaggerated?
– Implications of the failure of banner ads

Chapter 1: Introduction to Advertising 26

 Current Advertising
Issues
• Integrated marketing communications
(IMC)
– Unifying all marketing communications
tools to send a consistent persuasive
message
• Consumer Power
– Technology has given consumers
greater leverage

Chapter 1: Introduction to Advertising 27

 Current Advertising
Issues
• Globalization
– Trade barriers have fallen in Europe
– Formerly communist nations have
partially opened markets
– Should advertisers practice global or
local advertising?
• Niche marketing
– Advertisers target market segments
– New technologies make targeting
groups possible

Chapter 1: Introduction to Advertising 28

 Questions for
Discussion
• Critics charge advertising manipulates
its audience, while supporters claim
advertising seeks to persuade
• Which interpretation do you agree
with?
• Why?

Chapter 1: Introduction to Advertising 29