CHAPTER 1

ADVERTISING IS:
Structured and composed
Usually paid for
Nonpersonal communication of oinformation
Usually persuasive in nature

Types of Media:
-Mass
Newspapers, Magazines
Radio & TV
Billboards
-Addressable
Direct Mail, Email
Interactive
Events
Kiosks
Websites
Nontraditional
Shopping Carts
Blimps
Tattoos

ADVERTISING: only part of the MARKETING MIX that deals with HUMAN
COMMUNICATION

Communication: STERN MODEL

Source Message Receivers

SOURCE:
1. SponsorAuthorPersona
2. Sponsor: Legally responsible, has a message
3. Author: Creator is invisible to audience, copywriter, art director or
creative group
Persona: Real or imaginary spokesperson, represents the sponsor (ex.
characters, words, images, endorsers, tone of voice, copy)

MESSAGE:
1. Autobiography: I tell a story about MYSELF to YOU, the imaginary
audience
2. NarrativeThird person tells a story
3. Drama: tells a story that is very very composed

RECEIVERS:
1. Implied Consumers: Ad texts presume an audience, ad uses implied
consumers, not real ones
2. Sponsorial Consumers: Gatekeepers who decide if the ad will run;
sponsors executives; you are the clients, make sure that the brand/ad is
in line with the brand/company
3. Actual Consumers: People in the real world who comprise the target
audience; who the ad is meant for

FEEDBACK and INTERACTIVITY
Lets sender know if message received and understood
SenderMessageReceiverNew MessageSender
Sender can tell when communication breaks down
-Redeemed Coupons
-Phone Inquiries
-Survey Responses
-Increased Sales

Advertising and Marketing Dimension
-Marketing is the only function with a primary revenue-generating role AND
creating that demand
-Advertising is the TOOL that Marketing uses

What is Marketing?
-create value for customers and capture value in return after creating good
relationships
-determine needs and wants, design customer driven marketing strategy, construct
marketing program that delivers superior value, build relationships, capture value
to achieve profits

Target Markets & Audiences
1. Consumer: Retail and Public Service
2. Business: Industrial, etc (B-B)
4 Ps
Marketing Communications
1. Collaterel Materials
2. Product Advertising
3. Sales Promotion
Integrated Marketing Communications
The need fo IMC:
1. Media proliferation, more competition, higher costs
2. Less-efficient advertising, cynical, untrusting, & sophisticated
consumers, gaps between promise and delivery (ex.
overpromising), need for more relationship buildingCREATING
AFFINITY AND BONDS WITH CONSUMERS
3. Movement toward establishing consistency among agencies and
departments

CHAPTER 2
EVOLUTION OF ADVERTISING

Principles of Free-Market Economics
1. Self-Interest
-People and orgs tend to act on their own self-interest
-People are acquisitive, they want more for less
-The idea of open competition between self-interest sellers and self-
interested buyers
-Its for the companys interest (profits) and the consumers interest (their
wants and needs)
2. Complete Information
-Access by buyers and sellers to all information at all times
-What products are available, at what quality, at what prices
-Need for options and TRANSPARENCY
-Having a WIDE RANGE of sellers
-Consumers should be able to CHOOSE alternatives
-Absence of externalities: sometimes the sale or consumption of products
may benefit or harm other people who are not involved in the transaction
(ex. environment)

Functions and Effects of Advertising

1. Identify & Differentiate Products (Branding)
a. Immediate association of products
2. Communicate Product Features and Availability
3. Induce Customers to try products and suggest reuse
4. Stimulate Product Distribution
5. Increase Product Use
6. Build Value, Brand Preference, & Loyalty
7. Reduce Overall Sales Cost

Ethical Advertising
-improve standards of living, inform availability, help us make personal statements,
impact people on a positive way

Old School Marketing: One way direction (company to consumer)
Todays Reality:
The Brand and Consumers talk to each other: BRAND CONVERSATION

Becoming Conversation Leaders
VISION: goes beyond
1. Has a unique point of view that leads the conversation in the category
2. People speak about the functional qualities of your brand
3. People know you exist, but they dont know who you are. They dont really
talk about you
4. People dont know who you are, and dont talk about you

Therefore..
There is a huge correlation to BUSINESS SUCCESS

Big Ideas that Change Conversations
1. Ideas that change, redirect or start a fresh conversation in the category

Hallmarks of Contagious Big Ideas that CHANGE the Conversation
1. FRESH POV
2. STORY-ABILITY
3. CO-CREATION allows for people to relate and contribute
4. SOCIAL CURRENCY campaigns that are shared and talked about