McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1Advertising Today?

1-2

Chapter Overview

Identifies and explains economic,social, ethical, and legal issues

advertisers must consider

1-3

Chapter Objectives

Define marketing

Discuss advertising’s role in marketing

strategyExplain how advertising differs from basic human

communication

Define advertising

Explain the difference between consumer and

business markets

Distinguish it from other forms of marketing communications

Identify the elements of marketing strategy

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Advertising Goals

o Awareness o Comprehension

o Convictiono Action

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What is Advertising?o Structured, composed communication

o Directed to groupso Paid foro Usually persuasiveo About productso Identified sponsorso Transmitted through

advertising media

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Communication Channels

BillboardsNewspapers & Magazines

Radio & TV

Mass

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Communication Channels

Direct Mail E-Mail

AddressableMass

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Communication Channels

Direct Mail

E-Mail

Mobile Online

InteractiveAddressable

Billboards

Newspapers & Magazines

Radio & TV

Mass

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Communication Channels

Direct Mail

E-Mail

Mobile

Online

Shopping Carts

BlimpsTattoos

Non-traditional

Billboards

Newspapers & Magazines

Radio & TV

AddressableMass Interactive

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Dimensions of Advertising

Communication Marketing

Economic Social/Ethical

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Human Communication Process

Feedback

Noise

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Human Communication Process

Source Encoding Message

Decoding Receiver

Feedback

Channel

Noise

1-13

Stern Communication Model

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Communication: Source DimensionsSponsor

Author

Persona

• Legally responsible• Has a message

• Copywriter, art director,creative group

• Invisible to audience

• Within the text• Lends voice or tone to ad• Real or imaginary

spokesperson

1-15

Communication: Message DimensionsAutobiograph

y

Narrative

Drama

“I” tell a story aboutmyself to “you,” theimaginary audience

Third person persona tells a story about others to

imagined audience

Characters act in frontof imagined empathetic

audience

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Message: Autobiography

Autobiography:The woman in this ad directly addresses the

viewer

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Message: Narrative

Narrative:Off-camera

narrator describes the excitement of Detroit Red

Wing Hockey

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Message: DramaDrama:

Creates a scene so the reader receives the message by implication

This Lego ad requires little explanation

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Receiver DimensionsImplied

consumers• Every ad or commercial

assumes an audience of ideal consumers

Sponsorial consumers

• Decision makers at the sponsor’s organization

• They decide if the ad will run

Actualconsumers

• People in the real world who comprise the target audience

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Feedback and Interactivity

o Lets sender know if message received, understoodo Sender can tell when communication breaks down

Feedback & Interactivity

RedeemedCoupons

SurveyResponses

PhoneInquiries

IncreasedSales

Visits to Web site

Visits toa store

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The Marketing Dimension

Business Functional Divisions

Operations

Finance & Admin

Marketing

o Defines advertising’s role in business

o Only marketing has revenue generation as primary role

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What is Marketing?

• The process of planning and executing…• Concepts, pricing, distribution, and

promotion of• Ideas, goods, and services

• To create exchanges that… • Satisfy the perceived needs, wants,

and objectives of individuals and organizations

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Advertising Classifications

Target Target Audience

Geographic AreaGeographic Area

MediumMedium

Purpose

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Target Markets and Audiences

Business/Industrial MarketsTrades, Professions, & Agriculture

Consumer MarketsRetail & Public Service

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Consumer Advertising

Tide targets business

people who see the

benefit of wiping out

small stains

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B2B Advertising

Microsoft targets

business professionals that use Mac computers

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Marketing: The 4 Ps

Product

Price

Place

Promotion

Categories ofgoods or services

Strategies for competitive pricing

Distribution and geography

Communication channels

1-28

Marketing Communications (Marcom)

Collateral Materials

SalesPromotion

ProductAdvertising

PersonalSelling Public

Relations

Types ofMarketing

Communication

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Marketing: IMC

New media proliferation

More competition

Higher costs

Less-efficient advertising

Cynical, untrusting,

sophisticated consumers

Gaps between promise & delivery

Need for more relationship

building

Movement to establish

consistency among agencies & departments

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Marketing: IMC

Integrated Marketing

CollateralMaterials

SalesPromotion

ProductAdvertising

PersonalSelling

PublicRelations