moriarty 8e basic 01
TRANSCRIPT
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Introduction
toAdvertising
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Questions Well Answer
What isadvertisingand whatare its key
components
?
What areadvertisingsmain roles,and what
are the mostimportant
types ofadvertising?
Who are thekey players
inadvertising?
How hasadvertisingevolved, and
how havethese
developments affected
currentadvertising?
CHAPTER KEY POINTS
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Defining Modern Advertising Advertising is the non-personal
communication of information usuallypaid for and usually persuasive in
nature about products, services orideas by identified sponsors throughthe various media.
A form of marketing communication (all the techniques marketers use toreach their customers and deliver theirmessages)
WHAT IS ADVERTISING?
In 2010,spending on
advertising$142
billionin the United
States and
$467billion worldwide
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Defining Modern Advertising
Five Basic Factors of Advertising 1. Paid communication2. Sponsor is identified3. Tries to inform or persuade4. Reaches a large audience5. Message conveyed through many different kinds
of largely nonpersonal mass media
WHAT IS ADVERTISING?
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Components of Advertising
Strategy Creativeidea
Execution Media
The strategy is the logic and planning behind the ad thatgives it direction.
Advertisers develop ads tomeet objectives. Advertisers direct ads to
identified audiences. Advertisers create a
message that speaks to theaudiences concerns.
Advertisers run ads in themost effective media.
WHAT IS ADVERTISING?
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Strategy
Creativeidea Execution Media
The central idea grabs theconsumers attention andsticks in memory.
Planning strategy requirecreative problem solving.
Research involves creativity. Buying and placing ads
requires creative thinking.
Components of Advertising
WHAT IS ADVERTISING?
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Strategy
Creativeidea Execution Media
Effective ads are wellexecuted reflecting thehighest production values in
the industry. Clients demand the best
production the budgetallows.
Components of Advertising
WHAT IS ADVERTISING?
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Strategy
Creativeidea Execution Media
Television, Internet,magazines, and other mediaare used to reach a broad
audience. Deciding how to deliver the
message requires creativity. How you say something and
where you say it is just asimportant as what you say.
Components of Advertising
ROLES AND TYPES OF ADVERTISING
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Marketing
Communication Economic Societal
Marketing is satisfyingcustomer wants and needs
by providing products
(goods, services, ideas). The marketing department.
is responsible for sellingthe product using the 4 Ps(product, price,
place/distribution, and promotion) and branddevelopment.
Roles of Advertising
ROLES AND TYPES OF ADVERTISING
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Marketing Communication Economic Societal
Roles of Advertising Advertising is a message
to a consumer about a product, designed to createa response.
It is also a form ofmarketing communication.
Uses mass communicationto transmit product
information to connect buyers and sellers in themarketplace.
ROLES AND TYPES OF ADVERTISING
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Marketing Communication Economic Societal
Because it reaches largegroups of people,advertising makesmarketing more cost-efficient and lowers pricesfor consumers.
Advertising creates ademand for a brand using
hard sell (persuading) andsoft sell (image building)techniques.
Roles of Advertising
ROLES AND TYPES OF ADVERTISING
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Marketing
Communication Economic Societal
Roles of Advertising Informs about innovations
and issues Helps us compare products Mirrors fashion and design
trends Teaches consumers about
new products
Helps shape consumer self-image Facilitates self-expression Presents images about
diversity in our world
ROLES AND TYPES OF ADVERTISING
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Strengths
Can reach a large audience
Introduces products and brands
Builds awareness of productsand brands
Creates brand images
Provides information
Reminds and reinforces
Persuades
Examples
A commercial in the Super Bowl can reachmore than 100 million consumers.
The 1984 commercial for the Apple McIntoshsold out the entire inventory in one day.
The success of the launch of the iPod was duein part to the great silhouette posters thatshowed people dancing to the music on their
iPods.
The success of the new VW Beetle was largelybuilt on its ability to connect with the anti-statusimage of the original lowly Beetle.
The truth campaign informs teens thatTobacco kills 1,200 people a day.
Procter & Gambles Ivory Soap has beenadvertised continuously since the late 1800s.
Nike campaigns, with the Just do it personalachievement message, have helped increasesales by 300 percent during the 1990s.
Table 1:1 The Strengths of Advertising
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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 ageographical area
Direct Response Advertising
Tries to stimulate a sale directly Business-to-Business
Sent from one business to another
ROLES AND TYPES OF ADVERTISING
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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, hospitals,orchestras, museums, and churches for
customer, members, volunteers, and donors Public Service Advertising
Usually produced and run for free on behalf ofa good cause
Types of Advertising
ROLES AND TYPES OF ADVERTISING
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Advertiser(client)
Agency Media Supplier Audience
Advertiser Wants to send out a
message about its business Identifies a problem that
advertising can solve Selects the target audience,
sets the budget, andapproves the ad plan
Hires the agency
THE KEY PLAYERS
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Top Ten U.S. CategoriesCategory Total ad spend in
2006 (millions) Total ad spend
in 2005(millions)
Percentagechange from
2005
Telecom $9,431.1 $8,550.5 10.3%
Auto, non-domestic 8,726.7 8,832.8 -1.2
Local services and amusements 8,687.0 7,879.2 10.3
Financial services 8,681.8 8,508.8 2.0
Misc. retail* 8,322.9 8,258.0 0.8
Auto, domestic 7,615.2 8,625.1 -11.7
Direct response
6,376.1 6,087.0 4.7
Personal care 5,717,2 5,654.1 1.1
Travel & tourism 5,406.4 5,486.1 -1.5
Pharmaceuticals 5,285.4 4,645.8 13.8
THE KEY PLAYERS
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Top Ten U.S. Advertisers Company Total ad
spend in 2006(millions)
Total ad spendin 2005
(millions)
Percentagechange from
2005 Procter & Gamble $3,338.7 $3,230.9 3.3%
General Motors 2,294.8 3,008.0 -23.7
AT&T
2,203.8 1,684.7 30.8 Verizon Communications 1,944.2 1,761.6 10.4
Time Warner 1,824.6 2,073.5 -12.0
Ford Motor Company 1,699.5 1,567.0 8.5
Walt Disney 1,430.4
1,418.3
0.9
DaimlerChrysler 1,421.4 1,591.5 -10.7
Johnson & Johnson 1,302.8 1,623.4 -19.8
News Corp 1,266.8 1,298.5 -2.4
THE KEY PLAYERS
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Advertiser(client)
Agency Media Supplier Audience
Agencies have the strategicand creative expertise, mediaknowledge, talent, and
negotiating abilities tooperate more efficiently thanthe advertiser.
Some large advertisers have
in-house departments.
Agency
THE KEY PLAYERS
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Advertiser(client)
Agency Media Supplier Audience
Media are channels ofcommunication that carry themessage to the audience.
Theyre vehicles, but also largemedia conglomerates like TimeWarner and Viacom.
Mass media advertising can be
cost effective because the costsare spread over the large numberof people the ad reaches.
Media
THE KEY PLAYERS
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Advertiser(client)
Agency Media Supplier Audience
Service organizations that assistadvertisers, agencies, and themedia in creating and placing ads
by providing specialized services Artists, writers, directors,
photographers, producers, printers, freelancers, and
consultants
Supplier
THE KEY PLAYERS
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Advertising Timeline
Stage 1: Age of Print Stage 2: Emergence of Consumer
Society Stage 3: Modern Advertising Era Stage 4: Age of Agencies
Stage 5: The Creative Era Stage 6: The Accountability Era Stage 7: Age of Social Responsibility
THE DEVELOPMENT OF ADVERTISING
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The New Advertising
Electronic media are making advertisingmore intimate, interactive, andpersonalized.
Advertising must evolve to keep up withtechnology.
Creativity involves more than just the adsbig idea, but finding new ways to engageconsumers beyond traditional massmedia.
CURRENT DEVELOPMENTS
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Buzz is getting people to talk aboutthe event, idea or brand.
People contact companies byphone, the Internet, and throughfriends.
Advertising must change to alsobecome more interactive.
Interactivity
CURRENT DEVELOPMENTS
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IMC means unifying all marketing
communication messages and tools to send aconsistent, persuasive message promotingthe brands goals.
Stakeholders are also important in IMC. Synergy means messages have more impact
working jointly than on their own.
Integrated MarketingCommunication (IMC)
CURRENT DEVELOPMENTS
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The elimination of trade barriers inthe 1990s opened hugeinternational markets.
Agencies are forming multinationaloperations to to address thesemarkets.
Should advertisers practice local orglobal advertising?
Globalization
CURRENT DEVELOPMENTS
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Gets attention Creates a positive impression for a brand Separates the brand from the competition Influences people to respond in the desired
way An ad that works that is effective is one
where the target audience responds as theadvertiser intended.
What Makes an Ad Effective?
CURRENT DEVELOPMENTS
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EFFIE awards recognize effective advertising Others are Advertising and Marketing
Effectiveness (AME), Canadas CassieAwards, and London-based Institute ofPractitioners Awards (IPA)
Clios, the One Show, and the Cannes LionsAwards recognize creativity
Effectiveness and Awards Show
CURRENT DEVELOPMENTS
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall