Chapter 1

Advertising as a process

What is advertising?
Three criteria must be met for a communication to classified as advertising:
The communication must be paid for The communication must be delivered through mass media The communication must be attempting to persuade
Ch 1: The process 2

Distinctions Within advertising?

Advertisements
Specific messages designed to persuade an audience

Advertising Campaign
An integrated series of ads and promotions that communicate a central theme or idea

Integrated Brand Promotion (IBP)

Coordinating promotional tools to build and maintain brand awareness, identity, and preference
Ch 1: The process 3

Is this political message an advertisement or a public service announcement?

Advertising as a Communications Process

Production: The advertiser and social context determine ad content. Accommodation and negotiation: The ways in which consumers interpret ads. Reception: The context of ad reception and the audiences understanding of an ad result in a meaningful interpretation of the ad.
Ch 1: The process 5

Audiences for Advertising

Household Consumers Business Organizations The Trade Channel Professionals Government
Ch 1: The process 6

Audience Geography
Global International National Regional Local

Ch 1: The process 7

This ad ran in Italy. Do you think this was a global ad or and international ad? Whats the difference?

Advertising as a Business Process: Role of Advertising in Marketing and Brand Promotion

1. Advertising and the marketing mix 2. Advertising in brand development and management: 3. Advertising in market segmentation, differentiation, and positioning 4. Advertising in revenue and profit generation:

Ch 1: The process 9

The Marketing Mix

Product Distribution

Promotion

Price

Ch 1: The process

Advertising in Brand Development and Management

1. The Brand
2. Brand Extension 3. Brand Loyalty 4. Brand Equity
Ch 1: The process

Advertisings role in SDP marketing

Segmentation
(heterogeneous > homogeneous)

Positioning

Distinct from other brands Occupies a value level External niche vs. internal

Differentiation
(perceived as different or unique)

Ch 1: The process

Revenue and Profit Generation

1. Economies of scale 2. Inelasticity of demand

Ch 1: The process

Types of Advertising
1. 2. 3. 4. Primary demand stimulation Selective demand stimulation Direct response advertising Delayed response advertising 5. Corporate advertising

Ch 1: The process 14

Is this ad an example of primary or selective demand stimulation? Whats the difference?

Ch 1: The process 15

The Economic Effects of Advertising

Gross Domestic Product Business Cycles Competition Prices Value

Ch 1: The process 16

Integrated Brand Promotion (IBP)

Coordinated promotional events reinforce one another

C o u p o n s

Ch 1: The process 17