Defining%20Modern%20Advertising

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Defining Modern Advertising

• A complex form of communication using objectives
  and strategies to impact consumer thoughts,
  feelings, and actions.
• A form of marketing communication (all the
  techniques marketers use to reach their customers
  and deliver their messages).

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Defining Modern Advertising

• Five Basic Factors of Advertising
• Paid communication
• Sponsor is identified
• Tries to inform or persuade
• Reaches a large audience
• Message conveyed through many different kinds of
  largely nonpersonal mass media

Principle An effective advertisement is one
that can be proven to meet its objectives.
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Four Components of Advertising
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Four Components of Advertising

• 1. Advertising Strategy
• The strategy is the logic and planning behind the
  ad that gives it direction.
• Advertisers develop ads to meet objectives.
• Advertisers direct ads to identified audiences.
• Advertisers create a message that speaks to the
  audiences concerns.
• Advertisers run ads in the most effective media.

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Four Components of Advertising

• 2. Creative Idea
• The creative concept is the central idea that
  grabs the consumers attention and sticks in
  memory.
• Planning strategy requires creative problem
  solving.
• Research involves creativity.
• Buying and placing ads requires creative thinking.

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Four Components of Advertising

• 3. Creative Execution
• Effective ads are well executed reflecting the
  highest production values in the industry.
• Clients demand the best production the budget
  allows.

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Four Components of Advertising

• 4. Media Planning/Buying
• Television, Internet, magazines, and other media
  are used to reach a broad audience.
• Deciding how to deliver the message requires
  creativity.

Principle In advertising how you say something
and where you say it is just as important as what
you say.
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Four Roles of Advertising

• 1. The Marketing Role
• Marketing is satisfying customer wants and needs
  by providing products (goods, services, and
  ideas).
• The marketing department is responsible for
  selling the product using the 4 Ps (product,
  price, place/distribution, and promotion) and
  brand development.

Principle A product can be services and ideas
as well as goods.
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Four Roles of Advertising

• 2. The Communication Role
• Advertising is a message to a consumer about a
  product, designed to create a response.
• It is also a form of marketing communication.
• Advertising uses mass communication to transmit
  product information to connect buyers and sellers
  in them marketplace.

Principle One of advertisings most important
strengths is its ability to reach a large
audience.
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Table 1.1 The Strengths of Advertising
Examples A commercial in the Super Bowl can
reach more than 100 million consumers. The
1984 commercial for the Apple McIntosh sold out
the entire inventory in one day. The success of
the launch of the iPod was due in part to the
great silhouette posters that showed people
dancing to the music on their iPods. The success
of the new VW Beetle was largely built on its
ability to connect with the anti-status image of
the original lowly Beetle. The truth campaign
informs teens that Tobacco kills 1,200 people a
day. Procter Gambles Ivory Soap has been
advertised continuously since the late
1800s. Nike campaigns, with the Just do it
personal achievement message, have helped
increase sales by 300 percent during the 1990s.
Strengths Can reach a large audience Introduces
products and brands Builds awareness of
products and brands Creates brand
images Provides information Reminds and
reinforces Persuades
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Four Roles of Advertising

• 3. The Economic Role
• Because it reaches large groups of people,
  advertising makes marketing more cost-efficient
  and lowers prices for consumers.
• Advertising creates a demand for a brand using
  hard sell (persuading) and soft sell (image
  building) techniques.

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The Economic Role
Advertising is a means to objectively provide
price-value information, creating a more rational
economy.
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Four Roles of Advertising

• 4. The Societal Role
• Informs consumers about innovations and issues
• Helps us compare products and features
• Mirrors fashion and design trends
• Teaches consumers about new products and how to
  use them
• Helps shape consumer self-image
• Facilitates self-expression through purchases
• Presents images about diversity in our world

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Types of Advertising

• Brand Advertising
• Focused on long-term brand identity and image
• Retail or Local Advertising
• Focused on selling merchandise in a geographical
  area
• Direct Response Advertising
• Tries to stimulate a sale directly
• Business-to-Business
• Sent from one business to another

Principle All types of advertising demand
creative, original messages that are
strategically sound and well executed.
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Types of Advertising

• Institutional Advertising
• Focused on establishing a corporate identity or
  winning the public over to the organizations
  point of view
• Nonprofit Advertising
• Used by nonprofits like charities, associations,
  hospitals, orchestras, museums, and churches for
  customer, members, volunteers, and donors
• Public Service Advertising
• Usually produced and run for free on behalf of a
  good cause

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The Key Players the Advertiser

• Wants to send out a message about its business
• Initiates effort by identifying a problem that
  advertising can solve
• Selects the target audience, sets the budget, and
  approves the ad plan
• Hires the agency
• Agency of record (AOR) does the most business
  manages other agencies

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Top Ten U.S. Advertising Categories1. Telecom2.
Auto, Non-Domestic3. Local Services and
Amusements4. Financial Services5. Miscellaneous
Retail6. Auto, Domestic7. Direct Response8.
Personal Care9. Travel Tourism10.
Pharmaceuticals
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Top Ten U.S. Advertisers1. Proctor Gamble2.
General Motors3. ATT4. Verizon
Communications5. Time Warner6. Ford Motor
Company7. Walt Disney8. Daimler Chrysler9.
Johnson Johnson10. News Corp
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Key Players Agency

• Agencies have the strategic and creative
  expertise, media knowledge, talent, and
  negotiating abilities to operate more efficiently
  than the advertiser.
• Some large advertisers have in-house departments.

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Key Players Media

• Media are channels of communication that carry
  the message to the audience
• Theyre vehicles, but also large media
  conglomerates like Time Warner and Viacom.

Principle 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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Key Players Suppliers

• Group of service organizations that assist
  advertisers, agencies, and the media in creating
  and placing ads by providing specialized services
• Artists, writers, photographers, directors,
  producers, printers, freelancers, and consultants

Insert
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Key Players Target Audiences

• People to whom an ad is directedtheir responses
  determine if advertising is effective.
• Targeting is the process of identifying the
  people in the desired audience.
• Interactive technology allows ads to be
  customized to the target audiences individual
  needs.

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Current Developments

• The New Advertising
• Electronic media are making advertising more
  intimate, interactive, and personalized.
• Advertising must evolve to keep up with
  technology.
• Creativity involves more than just the ads big
  idea, but finding new ways to engage consumers
  beyond traditional mass media.

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Current Developments

• Interactivity
• Buzz is getting people to talk about the event,
  idea or brand.
• People contact companies by phone, the Internet,
  and through friends.
• Advertising must change to also become more
  interactive.

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Current Developments

• Integrated Marketing Communication (IMC)
• IMC means unifying all marketing communication
  messages and tools to send a consistent,
  persuasive message promoting the brands goals.
• Stakeholders are also important in IMC.
• Synergy means messages have more impact working
  jointly than on their own.

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Current Developments

• Globalization
• The elimination of trade barriers in the 1990s
  opened huge international markets.
• Agencies are forming multinational operations to
  to address these markets.
• Should advertisers practice local or global
  advertising?

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Current Developments

• What makes an ad effective?
• Gets attention
• Creates a positive impression for a brand
• Separates the brand from the competition
• Influences people to respond in the desired way

Principle An ad that worksthat is effectiveis
one where the target audience responds as the
advertiser intended.
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Advertising and Ethics

• Proponents
• Encourages a standard of living improvement
• Produces jobs
• Promotes competition

• Critics
• Creates needs and faults
• More propaganda than information
• Promotes materialism

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Ethics in Promotion

• 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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Social and Ethical Criticisms of Promotion

• Advertising as untruthful or deceptive
• Advertising as offensive or in bad taste
• Advertising of personal productsSexual appeals
• Advertising and Children
• Social and Cultural ConsequencesMaking people
  buy things they dont needEncouraging
  materialismStereotypingAdvertisings influence
  on the media

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Social and Ethical Criticisms of Promotion

• Advertising as untruthful or deceptive
• General mistrust of ads
• Deliberately untruthful or misleading vs.
  puffery
• Problems often more at local level rather than
  national

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Puffery Some Examples
Presentations that praise the item to be sold
with subjective opinions, superlatives, or
exaggerations, vaguely and generally, stating no
specific facts
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Social and Ethical Criticisms of Promotion

• Advertising as offensive, in bad taste, or
  irritating
• Advertising of personal products
• Sexual appeals
• ??Suggestive, demeaning, raunchy

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Children and Promotion

• 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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Children and Promotion

• 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

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Children and Promotion

• while other studies argue that
• 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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Ethical Issues in Packaging and Branding

• Four Aspects
• 1) Label information
• 2) Packaging graphics
• 3) Packaging safety
• 4) Environmental implications

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Ethical Issues in Online Marketing

• Overlap with ethics on advertising and promotions
• Privacy is the most important ethical issue with
  online marketing
• Invade individuals privacy rights by selling
  information to other sources without the
  consumers consent

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Fostering Ethical Marketing Communications

• Act in a way that you would want others to act
  toward you

The Golden Rule
Take only actions that would be viewed as proper
by an objective panel of your professional colleag
ues
The Professional Ethics
Would l feel comfortable explaining this action
on television to the general public?
The TV test
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When is Regulation Justified - Benefits

• Consumer choice among alternatives is improved
  when consumers are better informed
• Product quality tends to improve in response to
  consumers changing needs and preferences
• Reduced prices resulting from a reduction in a
  sellers informational market power

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When is Regulation Justified - Costs

• Companies incur the cost of complying with a
  regulatory remedy
• Enforcement costs incurred by regulatory agencies
  and paid for by taxpayers
• Unintended side effects result from regulations
  at a cost to both buyers and sellers

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Regulation of Deceptive Advertising

• FTC will find a business practice
• deceptive if there is a representation,
• omission or practice that is likely to
• mislead the consumer acting
• reasonably in the circumstances, to
• the consumers detriment.

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Regulation of Unfair Practices

• Three major areas
• Offends public policy as it has been established
  by statutes
• Is immoral, unethical, oppressive, or
  unscrupulous
• Causes substantial injury to consumers,
  competitors, or other businesses.

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Suing Competitors
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Unfair Advertising

• Acts or practices that cause or are likely to
  cause substantial injury to consumers, which is
  not reasonably avoidable by consumers themselves
  and not outweighed by countervailing benefits to
  consumers or competition.

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Regulation of Product Labeling

• Food and Drug Administration (FDA)
• Responsible for regulating information on the
  packages of food and drug products
• Responsible for regulating ads for prescription
  drugs
• Requires advertisers to present a balanced
  perspective when advertising drugs

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Stereotyping

• Portrayal of women
• Gender stereotyping
• Portrayal of women as sex objects
• Role portrayal of women to reflect changing role
  in society
• Blacks and Hispanics
• Gays
• Elderly

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Do You Agree With Leo Burnett?

• It must be said that without advertising we
  would have a far different nation, and one that
  would be much the poorer-not merely in material
  commodities, but in the life of the spirit.
• These excerpters are from a speech given by Leo
  Burnett on the American Association or
  Advertising Agencies 50th anniversary, April
  20,1967

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Business Actions Toward Socially Responsible
Marketing

• Enlightened Marketing
• Enlightened marketing refers to a companys
  marketing effort supporting the best long-run
  performance of the marketing system and consists
  of five principles
• Consumer-oriented marketing
• Customer-value marketing
• Innovative marketing
• Sense-of-mission marketing
• Societal marketing

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Business Actions Toward Socially Responsible
Marketing

• Enlightened Marketing
• Consumer-oriented marketing means that a company
  should view and organize its marketing activities
  from the consumers perspective
• Customer-value marketing means that the company
  should put most of its resources into
  customer-value-building marketing
  investmentslong-term customer loyalty and
  relationshipsby continually improving the value
  consumers receive from the firms market
  offerings
• Innovative marketing requires the company to
  continually seek real product and marketing
  improvements

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Business Actions Toward Socially Responsible
Marketing

• Enlightened Marketing
• Sense-of-mission marketing means the company
  should define its mission in broad social terms
  rather than narrow product terms
• Societal marketing means the company makes
  marketing decisions by considering consumers
  wants and interests, the companys requirements,
  and societys long-run interests
• Views societal problems as opportunities
• Designs pleasing and beneficial products

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Business Actions Toward Socially Responsible
Marketing

• Enlightened Marketing
• Deficient products have neither immediate appeal
  nor long-term benefits
• Bad-tasting and ineffective medicine
• Pleasing products have high immediate
  satisfaction but may hurt consumers in the long
  run
• Cigarettes and junk food

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Business Actions Toward Socially Responsible
Marketing

• Enlightened Marketing
• Salutary products have low appeal but may benefit
  consumers in the long run
• Seat belts and air bags
• Desirable products give both immediate
  satisfaction and high long-term benefits
• Tasty and nutritious breakfast food