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Basics of advertising

Definition of Advertising
Advertising is defined as any Paid form of

Nonpersonal Presentation and Promotion of ideas, goods and services by an Identified Sponsor Using Mass Media to Persuade or Influence an Audience.

Functions of Advertising
Provide Product & Brand Information

Persuade & Provide Incentives To Take Action

Advertising Performs 3 Basic Functions

Provide Reminders and Reinforcement

Informative Advertising

(about new product, customer value, explanation of

product working, suggesting new uses of product, informing about price change, building brand and company image)
Persuasive Advertising Building Brand Preferences, encouraging switching to

your brand, changing customers perception about product, persuade customers to buy now.
Reminder Advertising
Maintaining customer relationships, reminding

customers about product uses, its future uses, where to buy from, etc.

History of Advertising
Can be traced back to recorded history

Archaeologists working in countries around

mediterranean sea have dug up signs announcing

various events and offers.


Romans painted walls to announce gladiator fights. Phoenicians painted pictures promoting their wares on

large rocks.
Greece towns cries announced the sales of cattle,

Roles of Advertising
Marketing Role
The role of marketing is to carry persuasive message to actual and potential customers

Communication Role

Advertising is a form of mass communication.

Economic Role

it makes customer stick to a product regardless of the price charged. Consumer values non-price features Informs us about new and improved products, teaches us how to use these innovations, etc.

Societal Role

Economic role
The Economic Role advertising is that it makes customer stick to a product regardless of the price charged. Consumer values nonprice features. Profits Help consumers assess value through: Price as well as through; quality Location and Reputation Opportunity

cost Such price value information helps people make more rational
decisions. Advertising decreases the likelihood that the consumer will switch to an alternative product regardless of the price charged.

Societal role
The Societal Role Informs people about new and
improved products and services that solve their

problems in a better way use of new technological


products.

It mirrors fashion and design trends and make life


more colorful.

Classifications of Advertising
By Target Audience
Consumer

By Geographic Area
Local (retail) Regional National

By Medium
Print Broadcast (electronic) Radio TV Out-of-Home Direct-Mail

By Purpose
Product
Nonproduct

Business

Commercial

Noncommercial
Action Awareness

International

Scope of Advertising
Management delimits the scope of advertising into the

following:

Product related advertising

it is concerned with conveying information about and selling a product or service.


Pioneering advertising: developing primary demand by conveying

about and selling a product category rather than a brand.


Competitive advertising: seeks to stimulate selective demand .

Useful when product has reached maturity stage.


Retentive advertising: useful when product has achieved a

favorable status in the market.

Institutional advertising

Communicates and sells the name and prestige of the company.


Public service advertising

directed at the social welfare of a community or a nation.

Types of Advertising
Interactive Advertising Public Service Advertising Institutional Advertising Business-toBusiness Advertising Direct-Response Advertising Brand Advertising

Retail or Local Advertising

Political Advertising
Directory Advertising

Brand Advertising
Focuses on development of a long term brand identity and image. Most visible advertising

Retail or Local Advertising:


Refer to a retailer or a manufacturer or distributor advertising

who offers products in a fairly restricted geographic area. It focus on store traffic, and creating distinctive image for the retailer. Message announces the facts about products available in nearby stores.
Political Advertising Politicians use advt. to persuade people to vote for them.

Directory advertising
It includes yellow pages, trade directories, organizational

directories, etc.
Direct Response advertising
May use any advertising medium, apart from others it tries to

stimulate a sale directly.


Business to Business advertising
Messages directed at retailers, wholesalers, distributors and from

industrial purchasers and professionals to other businesses but not to general consumers. Advertisements placed in publications and professional journals.

Institutional Advertising Also called corporate advertising Focus on establishing a corporate identity or winning the

public over to the organizational point of view.

Public service advertising Communicates a message for good cause as save trees, stop wasting water, stop drinking, etc. Usually created free of cost and media often donate time and space. Interactive Advertising: Delivered to individual consumers having access to computer and internet. Advertisers use web pages, banner ads, emails. Consumers can respond to ads or ignore it.

Five Players of Advertising


The Advertiser

The Advertising Agency


The Media The Vendor The Audience

Five Players of Advertising


The Advertiser is the individual or organization that usually

initiates the advertising process.


Uses advertising to send out a message about its products

Initiates the advertising effort by identifying a marketing problem Approves audience, plan and budget Hires the advertising agency .
need to get out the message Manufacturers Resellers

Individuals Institutions, Government Agencies

The Advertising Agency plans and implements part or all

of the advertising efforts.


May use an outside agency, or their own advertising

department or in-house agency.


Has strategic and creative expertise, media

knowledge, workforce talent, and negotiating

abilities.

The Media are the channels of communication that carry

the messages from the advertiser to the audience, i.e. television, magazines, radio, etc.
Are also companies or huge conglomerates Mass media advertising can be cost effective because

the costs are spread over the large number of people the ad reaches

Five Players of Advertising


The Vendors are a group of service organizations that

assist advertisers, advertising agencies, and the media, i.e. freelance copywriters, graphic artists, photographers, etc.
The Target Audience may be the purchaser or the

consumer of the product, or both. May need to design different ads for each group.
Critical to know as much about these target audiences as

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