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Advertising ASSAD SAROBI MBA (Finance) M.Sc ( Economics)

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Presentation on theme: "Advertising ASSAD SAROBI MBA (Finance) M.Sc ( Economics)"— Presentation transcript:

1 Advertising ASSAD SAROBI MBA (Finance) M.Sc ( Economics)

2 ADVERTISING Advertising. is creating a message and sending it to some one, hoping they will react in a certain way. Advertising. is paid persuasive communication that uses no personal mass media. as well as other forms of interactive communication to reach broad audiences to connect an identified sponsor with a target audience

3 Key concepts of Advertising In describing advertising we refer to four broad factors.streategy,creative idea, creative execution and creative media use. lets see more specially what these four elements are 1.Advertising strategy. Strategy is the logic and planning behind the advertisement that gives it direction and focus. Every effective add implements a sound strategy.

4 Conti….. The advertiser develops the add to meet specific objectives, carefully directs it to a certain audience, creates its message to speak to that audience’s most important concerns, and runs it in media( print, broadcast, or the internet, for instance) that will reach its audience most effectively.

5 Conti………. Creative idea : The creative concept is the ad’s central idea that grabs your attention and sticks in your memory. for example connects two innovative products in a way that relates to the emotional connection. Volkswagen owners have with their cars.

6 Conti……. The word creative describes a critical aspect of advertising that drives the entire field of advertising. Planning the strategy call for imaginative problem solving. The research efforts need to be creative, and the buying and placing of ads in the media require creative thinking.

7 Conti…… Creative execution : Effective ads are well executed. That means that the details, the photography, the writing, the acting, the setting, the printing, and the way the product is depicted all reflect the highest production value available to the industry.

8 Conti……. Advertising often sets the standard or establishes the cutting edge for printing, broadcasting, and internet design because clients demand the best production their budget allows. Creative media use : Every message has to be delivered somehow. Most advertisers use media communication channel that reach a broad audience, such as television, magazines, or the internet.

9 Conti… Deciding how to deliver the message sometimes can be just as creative as coming up with the big idea for the message, a point we’ll discuss more in Good advertisers know that how you say something and you say it is just as important as what you say.what you say it comes from strategy, where as how you say it is a product of creativity and execution.

10 Conti…… Strategy, the creative idea, its execution, and the media used all determine the effectiveness of an advertisement. Types of Advertising. Advertising is complex because so many different advertisers try to reach so many different types of audience. we can consider seven major types of advertising. 1.Brand Advertising. The most visible advertising is national consumer,or brand advertising.

11 Conti…… For example,Dell. Apple Macintosh etc focuses on the development of long term brand identity and image Retail or local advertising. its focus on retailers or manufacturer. that sell their merchandise in a certain geographical area. the message delivers about those products which are available in near by stores.

12 Conti…. Direct advertising : Direct response advertising can use any advertising medium, including direct mail, but the message is different from that of national and retail advertising in that it tries to simulate a sale directly. The consumer can respond by telephone or mail, and the product is delivered directly to the consumer by mail or some other carrier.

13 Conti…. Of particular importance in direct response advertising has been the evolution of the internet as an advertising medium. Business to business advertising : Business to business advertising (B2B) is sent from one business to another. For example, it includes message directed at companies distributing products, as well as industrial purchasers and professionals such as lawyer and physicians.

14 Conti…… B2B is not directed at general consumers. Advertisers place most business advertising in professional publications or journals. The ad for interland is an example of a typical business to business ad. Institutional advertising : Institutional advertising is also called corporate advertising.

15 Conti…….. The message focus on establishing a corporate identity or winning the public over to the organization’s point of view. Many of the tobacco companies are running ads that focus on the positive things they are now doing, and the leukemia ads for American's pharmaceutical companies are also adopting that focus.

16 Conti…….. Nonprofit advertising : Not for profit organizations, such as charities, foundations, associations, hospitals, museums, and religious institutions, advertise for customers (hospitals, for example), members and volunteers (the red cross), as well as for donations and other from of program participation.

17 Conti……. Public service advertising : Public service announcements (PSAs) communicate a message on behalf of some good cause. Such as stopping drunk driving (for example, messages from mothers against drunk driving) or preventing child abuse. child labor.

18 Conti… These advertisements are usually created by advertising professionals free of charge and the media often donate the necessary space and time.

19 CHAPTER#02

20 Role and function of Advertisement In order to better understand how advertising works, lets consider the four roles advertising plays in business and in society; 1.marketing. 2.communication 3.economic 4.societal

21 conti…… 1.marketing role The process a business uses to satisfy consumer needs and wants by providing goods and services is called marketing. the tools available to marketing include the product(designed,packing,performance,its price and distribution). Marketing also includes a method for communicating this information to consumer called marketing communication or promotion.

22 Conti…… Marketing professionals are also involved with the development of a “BRAND "which is the distinctive identity of a particular product that distinguishes it from its competitors. 2.communication role. Advertising is a form of mass communication, it transmits different types of market information to connect buyers and sellers in the market place. communication includes as sales promotion, public relations, direct response, events and sponsorships and personnel selling.

23 Conti…….. 3.economic role. There are two of view about the way advertising creates economic impact. in first,advertising is seen as a vehicle for helping consumer, through price as well as other information (quality, location and reputation) in second advertising is seen as so effective that it decreases the likelihood that a consumer will switch to an alternative product, regardless of the product charged.

24 Conti…… Societal Role. It informs us about new and improved products, helps us products and features, and generally keeps us informed about innovations and issues. it has an educational role in that it teaches about new products and how to use them. it gives us a way to express ourselves in term of our personalities and sense of style through the things we wear and use.

25 Key players in advertising Following are the key players in advertising 1.Advertiser 2.Advertising Agency 3.Advertising Department 4.The Media 5.The suppliers/vendors 6.Target Audience

26 Conti……. 1.Advertiser. The person or organization that uses advertising to send out a message about its products. the advertiser also makes the final decisions about the target audience and size of the advertising budget. it also approve the advertising plan, which contains details outlining the message and media strategies. the advertiser become agency’s client.

27 Conti……. 2.Advertising Agency Advertising agency promote the advertising. Advertiser uses an outside agency because it believes the agency will be more efficient in creating an advertisement or complete campaign than the advertiser would be on its own. successful agency such as Arnold Worldwide typically have strategic and creative expertise, media knowledge, workforce talent.

28 Conti…….. 3.Advertising Department Most large businesses have advertising department. its task is to facilitate interaction between the company’s marketing department and agencies. Tasks performed by the advertising department include the following, it selects agencies, coordinates activities with purchasers,media,production,photography,make sure the work gets done as schedule.

29 Conti……… 4.Media Media player compose of channels of communication that carry the message from the advertiser to the audience, and in case of internet it carries the response from audience. local news paper, local TV channels,magzines and pump lets all are media sources

30 Conti……. 5.suppliers/vendors Vendors whose provide specialized services. members of this group include artists,writer,photographer,directors,producer,pri nters 6.Target Audience Target audience are the key players in the field of advertising if there is no concept of audience there will be no concept of advertising.

31 Conti……. CHAPTER # 03 Advertising and society

32 Chapter#03 Advertising’s social Role Advertising takes place in a public forum in which business interests,creativity,consumer needs meet. sometimes ads are controversial. economic role is also important in the way it creates demand. which means people want or feel a need to buy and use a product. “DEMAND CREATION” which means using an external message to drive people to feel a need.

33 Conti……… Advertising role’s in shaping or mirroring society What drivers consumers to behave or believe as they do? Is it advertising, or is it other forces? Why do women buy cosmetics, for example ? Are they satisfying a deep cultural need for beauty or were they manipulated by advertising to believe in the hope that cosmetics offers? Or have their family and friends socialized them to believe they look better with cosmetics than without ?

34 Conti……. On the other hand,advertising professionals tend to believe that the best they can do is spot trends and then develop advertising messages that connect with them. If people are interested in saving money, then you will see ads that use frugality as an advertising strategy. Advertisers believe advertising mirrors values rather than sets them.

35 In facts, advertising and society’s values are probably interactive. So the answer to the debate may simply be that advertising both mirrors and shapes values. Advertising planners spend huge amounts of money and time trying to identify people’s motivations before they develop message strategies. They must then be searching for something deeper than the impact of a previous ad.

36 Advertising’s Regulatory Environment: In addition to the federal trade commission, the food and drug administration and the federal trade commission (FTC) is the primary agency governing the advertising industry. It main focus with respect to advertising is to identify and eliminate ads that deceive or mislead the consumer. Some FTC responsibities are to Initiate investigations against companies that engage in unfair competition or deceptive practices.

37 Conti………. Regulate acts and practices that deceive business or consumers and issue cease and desist orders where such practices exist. Cease and desist orders require that the practice be stopped with in 30 days (cease and desist order given to one firm is applicable to all firms in the industry). Find people or companies that violate either (1)a trade rule or (2) a cease and desist order given to any other firm in the industry.

38 Fund the participation of consumer groups and other interest groups in rule making proceedings.

39 Regulation Deception : Ultimately, advertisers want their customers to trust their and advertising, so many take precautions to ensure that their messages are not deceptive, misleading, or unreasonable. Deceptive advertising is advertising intended to mislead consumers by making claims that are false or by failure to make full discloser of important facts, or both. The current FTC policy on deception contain three basic elements:

40 (1): Misleading : Where there is representation, omission, or practice, there must be a high probability that it will mislead the consumer. (2) : Reasonableness : The perspective of the “reasonable consumer” is used to judge deception. The FTC tests reasonableness by looking at whether the consumer’s interpretation or reaction to an advertisement is reasonable.

41 (3): Injurious : The deception must lead to material injury. In other words, the deception must influence consumers decision making about products and services.


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