Chapter 1

• Define advertising and explain its key components

1-1
 Defining Modern Advertising
• Advertising is paid • Five basic
persuasive components:
communication 1. Paid communication
• Uses nonpersonal mass 2. Sponsor is identified
media to reach broad 3. Tries to persuade or
influence
audiences to connect an
4. Reaches a large
identified sponsor with
audience
a target audience
5. Conveyed through
impersonal mass media

1-2
 Key Concepts of Advertising
• Strategy • The logic and planning
behind the ad
• Creative idea • Advertisers develop ads
to meet objectives
• Execution • Advertisers direct ads to
identified audiences
• Media • Advertisers create
messages that speak to
the audience’s concerns
• Advertisers run ads in
the most effective media
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 Key Concepts of Advertising
• The central idea that
• Strategy grabs the consumer’s
• Creative idea attention
• Creativity drives the
• Execution entire field of
advertising
• Media

1-4
 Key Concepts of Advertising
• Effective ads adhere to
• Strategy the highest production
• Creative idea values in the industry
• Clients demand the best
• Execution production the budget
allows
• Media

1-5
 Key Concepts of Advertising
• Communication
• Strategy channels that reach a
• Creative idea broad audience
• How to deliver the
• Execution message is just as
important coming up
• Media with the creative idea of
the message

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 Roles of Advertising
• Marketing • The process a business
uses to satisfy consumer
• Communication needs by providing
goods and services
• Economic – Product category
– Target market
• Societal – Marketing mix
– Brand

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 Roles of Advertising
• Marketing • Can reach a mass
audience
• Communication • Introduces products
• Explains important
• Economic changes
• Societal • Reminds and reinforces
• Persuades

1-8
 Roles of Advertising
• Marketing • Moves from being
informational to
• Communication creating demand
• Advertising is an
• Economic objective means for
providing price-value
• Societal information, thereby
creating a more rational
economy

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 Roles of Advertising
• Informs consumers
• Marketing about innovations and
• Communication issues
• Mirrors fashion and
• Economic design trends
• Teaches consumers
• Societal about new products
• Helps shape consumer
self-image
• Perpetuates self-
expression
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 The Functions of Advertising
• Builds awareness of products and brands
• Creates a brand image
• Provides product and brand information
• Persuades people
• Provides incentives to take action
• Provides brand reminders
• Reinforces past purchases and brand
experiences
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 The Key Players
• Advertiser • Uses advertising to send
out a message about its
(client) products
• Agency • Initiates the advertising
effort by identifying a
• Media marketing problem
• Approves audience,
• Supplier plan and budget
• Hires the advertising
• Audience agency

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 The Key Players
• Advertiser • Has strategic and
creative expertise,
(client) media knowledge,
• Agency workforce talent, and
negotiating abilities
• Media – Advertising department
– In-house agency
• Supplier
• Audience
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 The Key Players
• Advertiser • The channels of
communication that carry
(client) the message to the audience
• Are also companies or huge
• Agency conglomerates
• Mass media advertising can
• Media be cost effective because the
costs are spread over the
• Supplier large number of people the
ad reaches
• Audience
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 The Key Players
• Advertiser • Assist advertisers,
agencies, and the media
(client) in creating and placing
• Agency the ads
• Vendor services are
• Media often cheaper than those
in-house
• Supplier
• Audience
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 The Key Players
• The desired audience for the
• Advertiser advertising message
(client) • Data-gathering technology
improves accuracy of
• Agency information about customers
• Advertisers must recognize
• Media the various target audiences
they are talking to and know

• Supplier as much about them as

• Audience
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 Types of Advertising
• Brand advertising
• Retail or Local advertising
• Direct-Response advertising
• Business-to-Business advertising
• Institutional advertising
• Nonprofit advertising
• Public Service advertising

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 What Makes an Ad Effective?
1. If it creates an impression for a product or
brand
2. If it influences people to respond in some
way
3. If it separates the product or brand from the
competition in the mind of the consumer

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 What Makes an Ad Effective?
• Effective advertising Award Shows
messages will achieve • EFFIES, AME, IPA
the desired impact – Judge effectiveness
(objective) on the target
• CLIOS, One Show,
audience
Cannes
– Judge creative ideas
• Not all award-wining
ads are effective

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 The Evolution of Advertising
• Age of Print
• Industrial Revolution and Emergence of
Consumer Society
• Modern Advertising Era
• Accountability Era

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 The Current Advertising Scene
• Expanded view • Electronic media are
changing the media
• Integrated landscape
• New media are more
Marketing personal and interactive
Communication
• Globalization

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 The Current Advertising Scene
• Expanded view • The practice of unifying
all marketing
• Integrated communication tools so
they send a consistent,
Marketing persuasive message
Communication
• Globalization

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 The Current Advertising Scene
• Expanded view • Increasing globalization
of marketing programs
• Integrated • Advertisers are moving
into global markets and
Marketing agencies are forming
Communication huge multinational
operations
• Globalization

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