MARKETING 2204 - ADVERTISING

CHAPTER 1 – INTRODUCTION TO create multiple copies with ease and speed.

ADVERTISING This was also the first step in a progression of
What is Advertising? technological and social changes that resulted
in the development of the mass communication
- It is a complex form of communication that media that advertising uses to reach a
operates with objectives and strategies leading widespread mass audience.
to various types of impact on consumer The word advertisement first appeared around
thoughts, feelings, and actions. 1655, and by 1660 publishers frequently used
- It is a type of marketing communication that the word as a heading in newspapers for
refers to all the communication techniques commercial information. In appearance these
marketers use to reach customers and deliver ads resembled either handbills or what today
messages. That includes public relations and we call classified ads. Ad announcements
sales promotion to direct marketing, events continued to dominate newspapers until the
and sponsorships, packaging, and personal 1800s.
selling. • Promotion. Technological and social change
- It's about creating a message and sending it speeded up in the late 1700s with the Industrial
to someone in the hope that he or she will react Revolution. This period had a huge impact on
in a certain way. business because it brought the efficiency of
- It's a message delivered by media. If the machinery to the production and distribution of
consumers react as the advertiser intended, goods. People needed to know about these
then the ad is presumed to be effective. goods, so along with mechanization and the
- It is about creativity. Wende Zomnir explains opening of the frontier came new
that it's about generating big, creative ideas communication media, such as magazines and
with which people connect—ideas that come catalogs.
from having a passion for the brand and the • Sales. As advertising people became more
business. professional, they also became more concerned
- It’s a huge industry that has been around for about the science of advertising—about making
hundreds of years, so inevitably it has gotten ads and defining the standards of effective
more complex and refined. advertising. In the early 20th century,
- It is a message designed to promote a advertising was referred to by advertising
product, service, or idea. legend Albert Lasker as "salesmanship in print
- Its purpose is to sell products or services. driven by a reason why."
Evolution of the Definition of Advertising How people come to know about a product,
how they feel and think about a brand, and how
Some say advertising is simply a way to sell a they develop loyalty to favorite brands.
product to announce what products are Advertising Media
available, who made them, and where you go - Advertising reaches people through various
to buy them. forms of mass communication.
• Identification. The earliest forms were - Newspapers - Television - The Internet
simple images on walls and stores. Advertising - Magazines - Radio - Direct Mail
throughout prehistory, through the Dark Ages, AIDA
and into the medieval period was effective - Advertising is designed to inform, influence,
communication if it merely identified a place of or persuade people.
business and the type of goods available, such - To be effective, advertising must first
as an image of a loaf of bread for the baker or a Attract, Interest, Desire, Action
shoe for the cobbler. The purpose of this kind of
advertising was to identify manufacturers and Defining the Modern Practice of
stores. Advertising
• Information. Advertising changed during the
Renaissance when advances in printing - Modern definition of advertising includes other
technology led to an increase in literacy. A big important factors, such as media, audience,
advance came to Europe with the invention of and goals.
movable type by Johannes Gutenberg in 1455. - Advertising is a paid form of persuasive
That invention was important because its communication that uses mass and interactive
mechanized printing and made it possible to media to reach broad audiences to connect an
identified sponsor with buyers (a target • Creative execution. Effective ads are also
audience) and provide information about well executed. That means that the details—the
products (goods, services, and ideas). photography, the writing, the acting, the
Five basic factors of advertising: location where the ad is set, the printing, and
1. Advertising is usually paid for by the the way the product is depicted—all reflect the
advertiser, although some forms of advertising, highest production values available to the
such as public service announcements (PSAs), industry. Advertising often sets the standard or
use donated space and time. establishes the cutting edge for printing,
2. Not only is the message paid for, but the broadcasting, and Internet design because
sponsor is identified. clients demand the best production their
3. Advertising generally reaches a broad budget allows.
audience of potential consumers, either as a • Media planning and buying. Every
mass audience or smaller targeted groups. message has to be delivered somehow. Most
4. Most advertising seeks to inform consumers advertisers use media that reach a broad
and make them aware of the product or audience, such as television, magazines, or the
company. In many cases, it also tries to Internet. Deciding how to deliver the message
persuade or influence consumers to do sometimes can be just as creative as coming
something. Persuasion may involve emotional up with the big idea for the message.
messages as well as information. Principle:
5. The message is conveyed through many In advertising, how you say something and
different kinds of mass media, which are where you say it are just as important as what
largely nonpersonal. In other words, you say.
advertising isn't directed to a specific person.
Principle: ROLES AND TYPES OF ADVERTISING
An effective advertisement is one that can be The four primary roles advertising plays in
proven to meet its objectives. business and in society: marketing,
Four Components of Modern Advertising communication, economic, and societal.
The Marketing Role
Strategy, Creative Idea, Creative The process a business uses to satisfy
Execution, and Media Planning and consumer needs and wants by providing
Buying. Each demands creative thinking from goods and services is called marketing.
the advertising professionals who are The marketing department or manager is
responsible for development and responsible for selling a company's product,
implementation. which can be goods, services, or an idea
These four areas are also the fundamental (support an organization, vote for a candidate).
concepts professionals use to analyze the Products are also identified in terms of their
effectiveness of their advertising efforts. product category. For example, Louis Vuitton is
• Advertising strategy. The logic and in the handbag category, Kawasaki is in the
planning behind the advertisement, strategy is motorcycle category.
what gives it direction and focus. The The tools available to marketing managers are
advertiser develops the ad to meet specific the product (design, performance), its price,
objectives, carefully directs it to a certain the place where it is made available
audience, creates a message to speak to that (distribution), and its promotion. These are
audience's most important concerns, and runs collectively referred to as the marketing mix or
it in media that will reach this audience most the four Ps. Advertising is one of the most
effectively. important promotion tools.
• Creative idea. The creative concept is the Marketing professionals are also involved with
ad's central idea that grabs your attention and the development of a brand, which is the
sticks in your memory. The word creative distinctive identity of a particular product that
describes a critical aspect that drives the entire distinguishes it from its competitors. Colgate,
field of advertising. Planning the strategy calls for example, is one brand of toothpaste and
for imaginative problem solving: The research Crest is another. They are produced by
efforts need to be creative, and the buying and different companies and compete directly
placing of ads in the media require creative against one another.
thinking. Principle:
A product can be services and ideas as well as brand and touch consumers' emotions. An ad
goods. trumpeting a special reduced price on a tire or
The Communication Role claims about its performance is an example of
Advertising is a form of communication. In a a hard-sell approach. On the other hand, the
sense, it is a message to a consumer about a long-running Michelin ad campaign that
product. It gets attention, provides information showed a baby sitting inside a Michelin tire is a
and sometimes a little bit of entertainment, and soft-sell; it symbolizes the brand's safety and
tries to create some kind of response, such as a reliability with an image that touches your
sale. emotions.
In reality, most advertising is not as personal or In the first, advertising is seen as a vehicle for
as interactive as a conversation because it helping consumers assess value through price
relies mostly on mass communication, which is cues and other information, such as quality,
indirect and complex. As a form of mass location, and reputation. Advocates of this
communication, it transmits product school view the role of advertising as a
information to connect buyers and sellers in the means to objectively provide price/value
marketplace. In its branding role, it transforms information, thereby creating more rational
a product by creating an image that goes economic decisions. By focusing on images and
beyond straightforward facts. emotional responses, the second approach
It is also a form of marketing communication. appeals to consumers making a decision on
All of these tools and techniques have different nonprice benefits. This is presumed to be the
strengths and weaknesses, and they are used way images and psychological appeals can be
to accomplish different objectives. The most used to influence consumer decisions. This type
important strengths of advertising derive from of advertising is believed to be so persuasive
its ability to reach a large audience. That's why that it decreases the likelihood a consumer will
it is so important in introducing a new product, switch to an alternative product, regardless of
building awareness, and creating a brand the price charged.
image. It also delivers information that people
can use in making product decisions. The Societal Role
Advertising is useful for established products Advertising also has a number of social roles. It
where it can remind loyal customers of the mirrors fashion and design trends and adds to
satisfying experience they had with the brand. our aesthetic sense. Advertising has an
Finally, it is an important way to deliver a educational role in that it teaches about new
persuasive message about a brand and create products and their use. It helps us shape an
positive beliefs and feelings about it. image of ourselves by setting up role models
Principle: with which we can identify, and it gives us a
One of advertising's most important strengths way to express ourselves in terms of our
is its ability to reach a large audience. personalities and sense of style through the
The Economic Role things we wear and use. It also presents
Advertising's economic contributions come images capturing the diversity of the world in
from its advantage as a mass-marketing tool. which we live.
The more people know about a product, the Types of Advertising
higher the sales—and the higher the level of Different types of advertising have different
sales, the cheaper the product. In other words, roles. There are seven major types of
most economists presume that, because it advertising:
reaches large groups of potential consumers, • Brand. The most visible type of advertising is
advertising brings cost efficiency to marketing national consumer, or brand, advertising. Brand
and lower prices to consumers. advertising focuses on the development of a
Advertising tends to flourish in societies that long-term brand identity and image.
enjoy some level of economic abundance, in • Retail or local advertising. A great deal of
which supply exceeds demand. In these advertising focuses on retailers or
societies, advertising extends beyond a manufacturers who sell their merchandise in a
primarily informational role to create a demand certain geographical area. In the case of retail
for a particular brand. This is done through two advertising, the message announces facts
techniques: HARD-SELL approaches that use about products that are available in local
reasons to persuade consumers and SOFT- stores. The objectives focus on stimulating
SELL approaches that build an image for a store traffic and creating a distinctive image for
the retailer. Local advertising can refer to a varied industry. But there are some
retailer or a manufacturer or distributor who commonalities. All types of advertising demand
offers products in a fairly restricted geographic creative, original messages that are
area. strategically sound and well executed, and all
• Direct-response advertising. Direct- of them are delivered through some form of
response advertising can use any advertising media. Furthermore, advertisements can be
medium, including direct mail, but the message developed as single ads largely unrelated to
is different from that of national and retail other ads by the same advertiser or as a
advertising in that it tries to stimulate a sale campaign, which means a set of ads is
directly. The consumer can respond by developed as part of an advertising plan. These
telephone, mail, or over the Internet, and the related ads are variations on the campaign
product is delivered directly to the consumer theme, and they are used in different media at
by mail or some other carrier. The evolution of different times for different segments of the
the Internet as an advertising medium has audience.
been particularly important for direct-response Another commonality is that all the various
advertising. types of advertising involve a number of people
• Business-to-business advertising. in different roles.
Business-to-business (B2B) advertising is Principle:
marketing communication sent from one All types of advertising demand creative,
business to another. It includes messages original messages that are strategically sound
directed at companies distributing products as and well executed.
well as industrial purchasers and professionals The Key Players
such as lawyers and physicians. B2B is not The players include the advertiser (referred
directed at general consumers. Advertisers to by the agency as the client), the
place most business advertising in professional agency, the media, the suppliers, and, of
publications or journals. course, the target audience, which is the
• Institutional advertising. Institutional ultimate focus of all advertising professionals'
advertising is also called corporate advertising. efforts.
These messages focus on establishing a The Advertiser
corporate identity or winning the public over to Advertising begins with the advertiser, the
the organization's point of view. Many of the company or organization that uses advertising
tobacco companies are running ads that focus to send out a message about its business. The
on the positive things they are now doing, and advertiser is the number-one key player.
the ads for America's pharmaceutical The advertiser initiates the advertising effort by
companies showcasing leukemia treatment are identifying a marketing problem advertising
also adopting that focus. can solve. Advertising was essential to the
• Nonprofit advertising. Not-for-profit success of this new product. Advertiser also
organizations, such as charities, foundations, makes the final decisions about the target
associations, hospitals, orchestras, museums, audience and the size of the advertising
and religious institutions use nonprofit budget. This person or organization approves
advertising for customers (hospitals, for the advertising plan, which contains details
example), members (the environmentally outlining the message and media strategies.
focused Sierra Club), and volunteers (Red Finally, the advertiser hires the advertising
Cross), as well as for donations and other forms agency. As the client, the advertiser is
of program participation. responsible for monitoring the work and paying
• Public service advertising. Public service the bills for the agency's work on its account.
advertising communicates a message on behalf An agency-of-record (AOR) that does most
of a good cause, such as stopping drunk driving business and may even manage the other
or preventing child abuse. Advertising agencies. Tasks performed by the company's
professionals usually create these in-house advertising department include the
advertisements, also called public service following: select the agencies; coordinate
announcements (PSAs), free of charge, and the activities with vendors, such as media,
media often donate the necessary space and production, and photography; make sure the
time. work gets done as scheduled; and determine
We see that there isn't just one kind of whether the work has achieved prescribed
advertising. In fact, advertising is a large and objectives.
The Advertising Agency services. Members of this group include artists,
Advertising agency creates, produces, and writers, photographers, directors, producers,
distributes the advertising. Advertisers hire printers, as well as self-employed freelancers
independent agencies to plan and implement and consultants.
part or all of their advertising efforts. Target Audiences
This working arrangement is known as the Final set of players are the people for whom the
agency-client partnership. An advertiser uses advertising is designed. In general, we speak of
an outside agency because it believes the consumers as people who buy and use
agency will be more efficient in creating an products to satisfy their needs and wants. We
advertisement or a complete campaign than also talk about target audiences, a more
the advertiser would be on its own. Agencies specific group of people to whom an
have strategic and creative expertise, media advertisement is directed and whose responses
knowledge, workforce talent, and the ability to determine if the advertising is effective.
negotiate good deals for clients. Advertising strategy starts with identifying the
Some large advertisers have in-house people who are the desired audience for the
departments. advertising message. This is called targeting.
PURCHASERS ARE NOT ALWAYS THE
CONSUMER OF THE PRODUCT. In the case of
cold cereal, for example, parents may purchase
the cereal, but kids consume it and definitely
influence the purchase.
The Development of Advertising
An Advertising Timeline
• Stage 1: Age of print. Ads of these early
years look like what we call classified
advertising today. Their objective was to
An in-house agency performs most of the deliver information. The primary medium of this
functions of an outside advertising agency. age was the newspaper, although handbills and
The Media posters were also important. Because of the
The emergence of mass media has been a printing press, literacy levels increased, and
central factor in the development of advertising that encouraged more businesses to advertise.
because mass media offers a way to reach a • Stage 2: Emergence of consumer
widespread audience. society. By the end of the 19th century
The media is composed of the channels of advertisers began to give their goods brand
communication that carry the message from names and the purpose of advertising during
the advertiser to the audience. We refer to this period was to create demand for the new
these media as vehicles because they deliver brands. This period was the beginning of what
messages, but they are also companies. (Note we now recognize as the advertising industry.
that media is plural when it refers to various The powerhouse agency was Lord & Thomas,
channels, but singular-medium–when it refers which came from the historic partnership of
to only one form, such as a newspaper.) John E. Kennedy and Albert Lasker. Their
Each vehicle (newspaper, radio or TV station, mantra—advertising is "salesmanship in
billboard company, etc.) has a department that print"—became the guiding principle of the
is responsible for selling ad space or time. industry.
Advantage of mass-media advertising is that it • Stage 3: Modern advertising era. In the
can reach a lot of people with a single message early 20th century, modern professional
in a very cost-efficient form. advertising adopted scientific research
Principle: techniques. Advertising experts believed they
Mass-media advertising can be cost effective could improve advertising by blending science
because the costs are spread over the large and art.
number of people the ad reaches. • Stage 4: Age of agencies. The agency
The Suppliers world and management of advertising
The group of service organization assist developed rapidly after World War I.
advertisers, advertising agencies, and the Consumers were desperate for goods and
media in creating and placing the ads-the services, and new products were loading up the
suppliers, or vendors, who provide specialized marketplace.
• Stage 5: The creative era. The creative from an advertiser to a target audience, but
power of agencies culminated in the 1960s and that is all changing in the 21st century. People
1970s in a period marked by the resurgence of are contacting companies through the Web or
art, inspiration, and intuition. by phone, and they are talking to one another a
"There are a lot of great technicians in circle of comments about products and brands.
advertising. However, they forget that Inevitably, that means advertising must change
advertising is persuasion, and persuasion is not to also become more interactive.
a science, but an art. Advertising is the art of Integrated Marketing Communication
persuasion." A major trend affecting advertising is
• Stage 6: The accountability era. Starting integrated marketing communication, which is
in the 1970s, this period began an industry– another factor in expanding the scope of what
wide focus on effectiveness. Clients wanted ads we refer to as "new advertising." The important
that produced sales, so the emphasis was on thing to remember is that all these other areas
research and measurement. To compete, deliver messages, just as advertising does, and
advertising agencies recognized that it is important to have them all work together
advertising had to pay its own way and prove to create a coherent brand message.
its value. After the Internet economy downturn, Integrated marketing communication
accountability became even more important, (IMC) is the practice of unifying all marketing
and advertisers demanded proof that their communication messages and tools so they
advertising was truly effective. send a consistent, persuasive message
• Stage 7: Age of social responsibility. By promoting the brand's goals.
the late 1990s, corporations were challenged Stakeholders are important because they talk
by shareholders and others in the community to each other and it is important that they have
not only for reasons of financial accountability, positive and consistent things to say about a
but also on questions of social responsibility brand.
and insensitivity to diverse viewpoints. In companies that use IMC, marketers
Companies began to think seriously about how coordinate all these marketing communication
they could be better corporate citizens and not messages to create synergy, which means
let their drive for profits get in the way of their individual messages have more impact working
responsibility to society. jointly to promote a product than they would
Current Developments working on their own. The goal is to create
Advertising continues to be a dynamic strategic consistency across all messages a
profession. Long-time concerns the need for customer receives.
creativity, effectiveness, and social Globalization
responsibility–continue. This trend toward more consistent
The New Advertising communication is complicated by the
Electronic media, such as the Internet and increasing globalization of marketing programs.
wireless communication, are changing media As advertisers move into these markets, ad
landscape and making more intimate, agencies are forming large multinational
interactive, and personalized forms of operations with international research and
communication much more important to media-buying capabilities.
advertisers. This "new advertising" challenges - The elimination of trade barriers in the 1990s
the mass orientation of older forms of opened huge international markets
advertising even as it opens up new business Should advertisers practice local or global
opportunities. So, the "new advertising" also is advertising?
concerned with word-of-mouth and how to get Principle:
people talking about the brand. New An ad that works-that is effective is one where
advertising is advertising that is more personal the target audience responds as the advertiser
and interactive and more likely to employ intended.
creative new uses of communication beyond What Makes an Ad Effective?
traditional mass media. The most important characteristic is that
Interactivity advertising is purposeful: It is created to have
The interest in buzz is an indication of another some effect, some impact on the people who
trend that affects advertising, and that is read or see the message.
interactivity. Advertising's original definitions - Gets attention
assumed a form of one-way communication - Creates a positive impression for a brand
- Separates the brand from the competition - The process of creating a distinctive and
- Influences people to respond in the desired special meaning for a product
way - Brand equity is reputation, meaning, and
Principle: value that the brand name or symbol has
An ad that works—that is effective—is the one acquired over time
where the target audience responds as the - Emotional Branding
advertiser intended. - Branding is a special case of added value
because the value it adds is purely
psychological.
Principle:
CHAPTER 2 – ADVERTISING’S ROLE IN Effective branding transforms a product by
MARKETING creating a special meaning based on an
What is Marketing? emotional connection.
The way a product is designed, tested, Added Value. A marketing or advertising
produced, branded, packaged, priced, activity makes the product more valuable,
distributed, and promoted. useful, or appealing to the consumer.
KEY CONCEPTS IN MARKETING
The Marketing Concept: Focus on TYPES OF MARKETS
Consumers Market
- Marketing should focus first on identifying the - Where the exchange between buyer and
needs and wants of the consumers rather than seller takes place
on finding ways to build and sell products that - A particular type of buyer
consumers may or may not want. Market share
- To compete effectively, marketers must focus - The percentage of the total market in a
on the customers’ problems and try to develop product category that buys a particular brand
products to solve them
- Consumer is a general term for people who Consumer markets. Consumer markets
buy and use products and services. While consist of people who buy products and
customer refers to someone who has services for personal or household use. As a
purchased a specific brand or visited a specific student, you are considered a member of the
retailer. Customers have a closer link to a consumer market
brand or a store because they have taken Business-to-business (industrial, trade)
action by buying or visiting. markets. Business-to-business (B2B) markets
- The marketing concept involves two consist of companies that buy products or
steps: (1) determine through research what services to use in their own businesses or in
the customer needs and wants and (2) develop, making other products. Ads in this category
manufacture, market, and service goods that usually are heavier on factual content than on
fill those needs and wants-that is, create emotional appeals.
solutions for customers' problems. Institutional markets. Institutional markets
- Marketing concept is at the heart of modern include a wide variety of nonprofit
marketing. organizations, such as hospitals, government
Principle: agencies, and schools, that provide goods and
A company that operates with a marketing services for the benefit of society. Such ads are
concept philosophy similar to business-to- business ads in that they
focuses on satisfying its customers’ needs and are heavy on copy and light on emotional
wants. appeals.
Exchange Channel markets. The channel market is
- The act of trading a desired product or service made up of members of the distribution chain,
to receive something of value in return which is made up of the businesses we call
- Money is exchanged for goods or services resellers, or intermediaries. Resellers are
- Marketing also facilitates communication wholesalers, retailers, and distributors who buy
exchange. finished or semi-finished products and resell
- Product Differentiation. A product can be them for a profit. Channel marketing, the
differentiated in a variety of ways. process of targeting a specific campaign to
Branding members of the distribution channel, is more
important now that manufacturers consider
their distributors to be partners in their
marketing programs.
AFFILIATE MARKETING (Ex. Mini Cooper x
Puma)

Push, Pull, and Combination Strategies

THE MARKETING PROCESS

1. Conduct research and develop a situation
analysis (SWOT Analysis)
2. Set objectives for the marketing effort
3. Assess consumer needs and wants
4. Differentiate and position the product
5. Develop the marketing mix strategy
6. Evaluate the effectiveness of the strategy
Marketing Research
- Marketing process begins with marketing
research into markets, product categories, THE KEY PLAYERS AND MARKETS
consumers, and the competitive situation. The Marketer
- Monitoring the external environment is - The organization, company, or manufacturer
particularly important. producing the product and offering it for sale
- The objective for planners is to know as much- The advertiser or client (from the agency’s
as they can about the marketplace so they can point of view)
make informed and insightful strategic Suppliers and vendors
decisions. - Other companies that manufacture the
- Marketing research is focused on gathering materials and ingredients used in producing the
information from already existing and
product
published secondary research as well as from - Their work determines the quality of the final
primary research, which is original research product. This can be very complex
undertaken to answer specific questions. Distributors and retailers
- Consumer information is extremely critical for
- Various companies that are involved in
most brands. moving a product from its manufacturer to the
buyer
MARKETING MIX STRATEGIES
Product
Principle: - The product is both the object of the
Marketing research is about more than just the advertising and the reason for marketing
compilation of information; it also produces - Product category
insights into marketing situation and consumer - A class of similar products
behavior. Place
Four Components of the Marketing Mix - The channels used in moving the product
from manufacturer to buyer
Price
- Based on the cost of making and marketing
the product and on expected profit (Customary,
Psychological)
Promotion
- Use face-to-face contact between marketer The idea is to engage customers in ways that
and prospective customer create lasting bonds with a brand.
- Used to create immediate sales Guerilla Marketing
HOW AGENCIES WORK The idea is to create a buzz, or word of mouth,
Full-Service Agencies about the brand.
- Include the four major staff functions
- Account management. Acts as liaison
between client and agency. Responsible for
interpreting the client’s marketing strategy
- Creative services. Includes copywriters, art Digital Marketing
directors, & producers. People who write, Uses the internet to conduct e-business,
design ideas for ads and commercials, and including ordering and selling products.
convert these ideas into commercials Viral Marketing
- Media planning and buying. Recommends to
the client the most efficient means of delivering
the message to the target audience.
Responsible for buying, planning, and research. Mobile Marketing
- Account planning. Developing an advertising
message that focuses on the consumers’
perspective and relationship with the brand.
Gathers all information on the market and
consumers and acts as the voice of the
consumer. Prepares comprehensive
recommendations Social Network Marketing
- Also have accounting, traffic, production, and
HR departments
Specialized Agencies
- Specialize in certain functions, audiences,
industries or markets
- Creative boutiques. Usually small (2 or 3
people to a dozen or more) that concentrate on INTERNATIONAL MARKETING
preparing creative execution of the idea. - An international brand is available virtually
- Media-buying services. Specialize in the anywhere in the world
purchase of media for clients. - The shift requires new tools for advertisers,
EMERGING MARKETING STRATEGIES including one language, one control
Relationship marketing mechanism, and one strategic plan
- The choice of an agency depends on the
decision to standardize messages or localize
them to accommodate local cultures

CHAPTER 3 – ADVERTISING AND SOCIETY

What is Advertising’s Role in Society?
DEMAND CREATION DEBATE
Permission marketing Does advertising create demand for products
people don’t need?
SHAPE-VERSUS-MIRROR DEBATE
Can advertising manipulate people’s choices?
Other Social Responsibility Issues
- Poor taste and Offensive Advertising
Might not bother adults but would make them
uncomfortable if children were watching.
- Sex in Advertising
Ads for cosmetics and lingerie fall into gray
area because sex appeals for these products
Experience Marketing are usually relevant.
Portraying Diverse People Fairly and - Consent Decrees
Accurately - Cease-and-Desist Orders
- Gender Stereotypes - Corrective Advertising
- Body Image and Self-image (ex. Dove - Consumer Redress
commercial) - Advertising Agency Legal Responsibility
- Racial and ethnic stereotypes Food and Drug Administration
- Cultural differences in global advertising - Oversees package labeling, ingredient
- Age related stereotypes listings, and advertising for food and drugs
- Advertising to Children - Watchdog for drug advertising
Message Related Issues Federal Comm. Commission
- Misleading Claims - Can issue and revoke licenses to broadcasting
- Puffery (exaggerated, subjective opinions, stations
stating no specific facts) - Can ban messages that are deceptive or in
- Comparative Advertising poor taste
- Endorsements Other Regulatory Bodies
- Demonstrations - Bureau of Alcohol, Tobacco, and Firearms
- U.S. Postal Service
Product Related Issues - States’ Attorneys General
- Advertising Controversial Products
International Regulations
- Marketing practices vary in legal and
regulatory restrictions
- International advertisers should have
someone in the country who knows the local
- Unhealthy or dangerous products laws
MEDIA REVIEW OF ADVERTISING
- The media attempts to regulate advertising by
screening and rejecting ads
- The First Amendment gives any publisher the
right to refuse to publish
- Prescription Drugs - The Advertising Review Council designed the
standards and guidelines used by major
television networks
DETERMING WHAT IS ETHICAL
The social ethic
- The “Golden Rule”
REVIEW AND REGULATION OF - Social responsibility motivates a business to
ADVERTISING make a positive impact on society
Copyright Protection The professional ethic
- Trademark - Industry standards help with a decision about
- Copyright what is ethically correct
First Amendment - A code of standards identifies how
- Commercial speech professionals should respond when facing an
- Only truthful commercial speech is protected, ethical dilemma
not misleading or deceptive statements The Personal ethic
ADVERTISING’S REGULATORY - Personal judgment and moral reasoning rests
ENVIRONMENT on an intuitive sense of right and wrong
Federal Trade Commission - Advertising professionals must be aware of
Regulating deception industry standards as well as ethical questions
- Deceptive advertising misleads customers by
making claims that are false CHAPTER 4 – HOW ADVERTISING WORKS
Regulating substantiation How advertising Works as
- The advertiser should have a reasonable basis Communication?
for making a product claim Effective advertising is a message to a
Remedies for deception and unfair consumer about a brand.
advertising The Communication Model
The Facets Model of Effects

Advertising as Communication

- Does a more complete job of explaining how

advertising creates consumer responses.
- Useful in both setting objectives and
Adding Interaction to Advertising evaluating advertising effectiveness
- Advertisers must learn to receive (listen) - The six facets come together to make up a
and send information not overcome the unique customer response to an advertising
impersonal nature of mass message.
communication. See/Hear: The Perception Facet
- The Internet has created opportunities for - Perception: the process by which we receive
Web sites, chat rooms, email, and blogs to information through our five senses and assign
interact meaning to it.
- Two-way interaction is an objective of - Selective perception: consumers select
Integrated Marketing Communications messages to which they pay attention.
- Now, feedback is occurring in real time.
- Through personal selling, customer service,
online marketing, response devices, toll-free Principle:
numbers, and email. For an advertisement to be effective, it first has
Traditional Approaches to get noticed or at least register on some
- AIDA (Attention, Interest, Desire, Action) minimal level on our senses.
- Think-Feel-Do
- Domains
- Messages have various impacts on
consumers simultaneously (perception,
learning, and persuasion).
- Problems
- They presume a predictable set of steps.
- Some effects are missing—brand linkage and
motivation.
- Brand communication is the most important. See/Hear: Key Factors Driving Perception
Exposure
- Media planners want consumers to see or
hear the message.
Selection and attention
- Selective attention: consumers choose to
attend to the message.
Interest and relevance - To creatively communicate its new seating in
- Interest: receiver mentally engages with the coach, American Airlines used the
ad or product. left-brain/right brain approach in this ad.
- Relevance: message connects on some Understand: Factors Driving the Cognitive
personal level. Response
Awareness Need
- An ad makes an impression; it registers with - Something you think about.
the consumer. - Ad messages describe something missing in
Recognition consumer’s lives.
- Recognition: people remember the ad. Cognitive Learning
- Recall: people remember what the ad said. - Presenting facts, information, and
Feel: The Affective or Emotional Facet explanations leads to.
- Affective responses mirror our feelings understanding.
about something. - Comprehension: process by which we
- “Affective” describes something that understand, make sense
stimulates wants, touches the emotions, and of things, or acquire knowledge.
elicits feelings. Differentiation
- Subliminal effects are message cues given - The consumer’s ability to separate one brand
below the threshold of perception. from another, based on an understanding of a
competitive advantage.
Recall
- A measure of learning or understanding.
- You remember the ad, the brand, and the
copy points.
Connect: The Association Facet
- Association: Using symbols to communicate.
- The primary tool used in brand
communication.
- Brand linkage reflects the degree to which the
associations presented in the message, as well
Feel: Factors Driving theAffective as the consumer’s interest, are connected to
Response the brand.
Wants
- Driven by emotions; based on desires, wishes,
longings, cravings.
Feelings
- Emotional appeals based on humor, love, or
fear.
Liking (the brand and the ad)
- If you like the ad, those positive feelings
transfer to the brand.
Resonate Connect: Factors Driving Association
- A feeling that the message rings true. Symbolism
- Consumer identifies with the brand on a - A brand takes on a symbolic meaning.
personal level. - It stands for certain, usually abstract,
Principle: qualities.
A positive response to an ad is important Conditional Learning
because advertisers - Thoughts and feelings associated with the
hope that liking the ad will increase liking the brand.
brand. - Beer is about sporting events, beach parties,
Understand: The Cognitive Facet and pretty women.
- Cognition: how consumers search for and Transformation
respond to information; learn and understand - A product is transformed into something
something. special, differentiated by its brand image
- It’s a rational, “left-brain” approach. symbolism and personality.
Principle: - Presenting negative messages about an
Advertising creates brand meaning through unwanted behavior and creating incentives to
symbolism and association. These meanings stimulate the desired behavior.
transform a generic product into a specific Do anti-drug ads lead to increased drug
brand with a distinctive image and personality. usage?
Believe: The Persuasion Facet
Persuasion: influencing or motivating the The Power of Brand Communication
receiver of a message to believe or do Interaction and Impact
something. - The effects are interdependent.
Attitude: an inclination to react in a given way. - They are not all equally effective in all
Attitudes become beliefs when people are situations.
convinced. Strong and Weak Effects
Principle: Strong Theory: advertising can persuade
Advertising employs both rational arguments people who had never bought a brand to buy it
and compelling emotions to create persuasive once, and then repeatedly.
messages. Weak Theory: advertising has a very limited
Believe: Factors Driving Persuasion impact on consumers and is best used to
Motivation reinforce existing brand perceptions, rather
- Something (e.g., hunger) prompts one to act than change attitudes.
in a certain way.
Influence
- Opinion leaders, bandwagon appeals, and Principle:
word of mouth. Advertising has delayed effects in that a
Involvement consumer may see or hear an advertisement
- High involvement vs. low involvement. but not act on that message until later when in
Conviction a store.
- Consumers achieve a state of certainty
(belief) about a brand. CHAPTER 5 – CONSUMERS AS THE
Loyalty AUDIENCE
- Brand loyalty is both attitude and action. Why is consumer behavior important to
Believability and Credibility advertiser?
- Believability, credibility, source credibility. What did you bought last weekend?
Act: The Behavior Facet What are your considerations before buying it?
- Behavior: the action response. How Does Consumer Behavior Works?
- Involves a number of actions including: Consumer behavior
- Trying or buying the product - Describes how individuals or groups select,
- Visit a store purchase, use, or dispose of products – as well
- Return an inquiry card as describing the needs that motivate these
- Call a toll-free number behaviors
- Click on a Web site Principle:
- Direct action vs. indirect action Buyers may not be the users and users may
Act: Factors Driving the Behavioral not be the buyers. Buyers and users often have
Response entirely different needs and wants.
Try Influences on Consumer’s Buying Decision
- Important for new or expensive products. Process
Buy
- Advertising stimulates sales by the “a call-to-
action”.
Contact
- Consumers respond by contacting the
advertiser.
Advocate and Refer
- Advocacy: speaking out on a brand’s behalf.
- Referral: a satisfied customer recommends a
favorite brand.
Prevent
Social Influences
Demographics
- The statistical, personal, social, and economic
characteristics that describe a population
Characteristics
- Age (different age, different need)
- Sexual orientation (product preferred)
Cultural Influences - Gender (masculine or feminine)
Culture - Family Status
- a way of life - Education (media used)
- Learned and passed on from one gen. to - Occupation (type of product)
another - Income (purchasing power)
- Norm - Race and ethnicity (type of product)
- Core value: a sense of belonging, excitement, - Geography (type of product)
fun & enjoyment, warm relationships, self- Age
fulfillment, respect from others, a sense of - The greatest generation
accomplishment, security, self-respect - The silent generation
Advertiser matches the core value and the ad - Baby boomers
appeal. - Generation jones
Tangible items: art, literature, building, - Gen X
furniture, food, clothes, etc. - Gen Y or echo boomers
Intangible concept: history, knowledge, moral, - Millennium Generation
tradition, language etc. Psychological Influences
Social Influences Perception/State of Mind
Social Class - Affects how people perceive information as
- The position a person and his/her family hold well as determines the particular pattern of
within society consumer behavior (experience, friend, brand
- Determined by such factors as income, message, mental stage)
wealth, education, occupation, etc. Needs & Wants
Family - Basic driving forces that motivate us to do
- Two or more people who are related by blood, something
marriage, or adoption and live in the same - Need: e.g. choose a hotel when traveling
household - Want: e.g. choose the most expensive hotel
Household Needs
Lifestyle Innate Needs and Acquired Needs

Cultural and Social Influence

Reference Groups
A group of people who are used as a guide for
behavior in specific situations
1) provide info
2) a means of comparison
3)they offer guidance Psychological Influences
Attitudes and Values
- Attitudes impact motivations
- Influence how consumers evaluate products,
institutions, retail stores, and advertising
Ad: should focus on establishing, changing,
reinforcing, or replacing them
Personality
- Distinctive characteristics that make people or
brands individual
- Brand personalities make them distinctive
from their competitors
e.g. old-fashioned, lively, efficient, helpful,
warm, dependable, risk taking
Ad: enhance brand personality
Brand Personality
Nike has an active lifestyle, inspirational,
exciting, cool personality
The Innovation Diffusion
Psychographics
🡪 complex consumer profiles 🡪 how people
make the decisions
Lifestyle: The way people allocate, time, money
& energy + Psychological: Perception,
Motivation and Needs, Attitudes, Personality
Hobbies, vacation, entertainment, club
membership, fashion, family,
job, food, trend, etc.
Behavioral Influences
Usage behavior
- How much of a product category or brand
customers buy Consumer Decision Process
- Usage Rate: Light users, Medium users, 1. Need recognition
Heavy users (how much they buy) - The consumer recognizes the need/want for a
- Brand relationship: Nonusers, Ex-users, product
Regulars, First timers, Loyal users, Switchers - Advertising should activate or stimulate this
Innovation and adoption need
- How willing people are to be innovative and Source of problem recognition:
try something new - Out of stock
- Innovators, Early adopters, Early majority, - Dissatisfaction
Late majority, Laggards - New needs or wants
- perceived risk: evaluate what u gain & what - Related product purchase
u have to lose if the p/d does not work - Market-induced recognition
Yankelovich Monitor’s MindBase - New products
2. Information search
- Can be casual or formal
- Advertising helps the search process by
providing information and making it easy to
find, as well as remember
Personal source: friend, relatives, co-worker
VALS Framework Market-controlled source: ad. salespeople,
display
Public source: print articles, news reports
Personal experience: handling, examining,
testing, using
3. Evaluation of alternatives
- Consumers compare various products and
reduce the list of options
- Advertising helps sort out products on the
basis of tangible and intangible features
Tangible: size, features, color, durability, - Advertising media is a huge industry with
package, taste, others almost $195 billion in spending
Intangible: Style, quality, image, prestige, PHILIPPINE RATE- TV AD
warranty, brand name, others
4. Purchase decision
- Often a two-part decision
- Select the brand
- Select the outlet from which to purchase
- In-store promotions affect these choices
5. Post-purchase evaluation
- The customer reconsiders and justifies the
purchase BASIC MEDIA CONCEPTS
- Determines whether the customer will keep Media mix
the product, return it, or refuse to buy the - The way various types of media are
product again strategically combined in an advertising plan
- Ad- reassures Cognitive Dissonance– the Media vehicle
feeling of dissatisfaction with the product - A specific TV program, newspaper, magazine,
Involvement Decision Process or radio station or program
Low Involvement MEDIA MIX AND VEHICLE
Need Recognition -> Evaluation of Alternatives
-> Purchase Decision -> Post-Purchase
Evaluation
High Involvement
Need Recognition -> Information Search ->
Evaluation of Alternatives -> Purchase Decision
-> Post-Purchase Evaluation
Segmenting and Targeting Planning and Buying
Media planning
- Dividing the market into groups of people who
have similar characteristics in certain key - The way advertisers identify and select
product-related issues. media options
Media buying
- Identifying the group that might be the most
profitable audience and the most likely to - Identifying specific vehicles, negotiating the
respond to marketing communication costs to advertise in them, and handling billing
To segment or not to Segment? and payment
Target Profile of Oishi Green tea Reach and Frequency
Demographics Reach
- Primary: 15-20 years old - The percentage of the media audience
- Both male & female exposed to the advertiser’s message during a
- Students& first jobber specific time frame
- Monthly income: 5000-10000 Frequency
- Nationwide - The number of times a person is exposed to
Psychographics the advertisement
- People who are trendy Impressions
- People who are open minded - The opportunity for one person to be exposed
- People who are health-conscious one time to an ad
Behavioral - In print, impressions estimate the actual
- People who usually drink green tea readership
- Always try something new - In broadcast, impression estimates viewers for
- Go fitness TV and listeners for radio
Media Key Players
CHAPTER 6: PRINT AND OUT-OF-HOME Who are involved?
MEDIA - Media Salespeople
THE MEDIA INDUSTRY - Media reps or brokers
- Media-delivered news, information; - Media researchers
advertising make the news and information - Media planners
possible - Media buyers
- Media buying companies - Upscale magazines provide an ideal place for
PRINT MEDIA CHARACTERISTICS the image advertising of luxury products
- Print advertising includes printed TYPES OF MAGAZINES
advertisements in newspapers, magazines, Audience focus
brochures, posters, and outdoor boards - Consumer magazines
- Print provides more detailed information, rich - Business magazines
imagery, and a longer message life - trade papers
NEWSPAPER BASICS - industrial magazines
- Used by advertisers trying to reach a local - professional magazines
market - Farm magazines
- Primary function is to carry news
- Market selectivity allows newspapers to target
specific consumer groups
Structure of the Industry
- Frequency of publication
- Format and size
- Circulation
NEWSPAPER BASICS
DISTRIBUTION AND CIRCULATION
Types of Circulation
- Traditional delivery
- Subscription
- Through newsstand purchases or home
- Single Copy Sales
delivery
- 3rd Party
- Nontraditional delivery (controlled circulation)
Frequency of Publication
- Hanging bagged copies on doorknobs
- Dailies
- Inserting magazines in newspapers
- Weeklies
- Delivering through professionals
- Sunday Editions
- Direct delivery
- Business or Organization Newspaper
MAGAZINE ADVERTISING
Editions
Format
- Morning
- Double-page spread
- Evening
- Gutter
- All-day
- Bleed page
- Special Interest
- Gatefold
Format Size
- Photo essay ad
- Broadsheet
Technology
- Tabloid
- Has enabled magazines to distinguish
themselves from one another
DOUBLE PAGE SPRREAD

Types of Advertising
- Classified
- Display
- Supplements GUTTER
Newspaper Readership
- Tends to be highest among older people and
people with a higher educational level
- Measuring the newspaper audience
MAGAZINE BASICS
- Most magazines today are special interest
publications aimed at narrower target audience
- Specialty magazines seem to have an edge BLEED PAGE
over more general publications in terms of
maintaining growth
GATEFOLD
OUTDOOR ADVERTISING
- This medium can provide reminders to the
target audience
- Directional; it acts as primary medium when
the board is in close proximity to the product

PHOTO ESSAY AD

Printed Posters Painted

Bulletin

MAGAZINE READERSHIP MEASUREMENT

ON-PREMISE SIGNS
- Magazine rates
- Based on guaranteed circulation that a
publisher promises to provide
- Magazine circulation
- The number of copies of an issue sold

DIRECTORY ADVERTISING
- Books that list names, phone numbers, and
addresses of people or companies
- Tells people where to go to get the product or
service they want POSTERS
- Reaching an audience already in need of
something
- Yellow Pages
- Other Directories

KIOSKS

OUT-OF-HOME ADVERTISING
Includes everything from:
- Local business that wants to sell locally
- Regional or national business that wants to
remind or reinforce
- Product requires little information and little
demonstration
- Small to moderate budget
Use Directories If…
- Local business or can serve local customers
- Want to create action
- Want to allow comparisons or provide basic
TRANSIT ADVERTISING
inquiry and purchase information
- Small to moderate budget

PACKAGING
- Both a container and a communication vehicle
- The last ad a customer sees before making
the decision to buy
- Constant brand reminder once on the shelf at
home or in the office

USING PRINT ADVERTISING

Use Newspapers If…
- You are a local business
- Desire extensive market coverage
- Product is consumed in a predictable manner
- No need to demonstrate the product
- Moderate to large budget
Use Magazines If…
- Well-defined target audience
- Want to reinforce or remind audience
- Product must be shown accurately and
beautifully
- Need to relate moderate to extensive
information
- Moderate to large budget
Use Out-of-Home If…