© 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Chapter 1 What is Advertising Today? Defining advertising and introducing the profession Insert Bunny ad p. 3 Here

Objectives Define advertising and differentiate it from other forms of marketing communications Explain how advertising differs from the basic human communication process Discuss advertising’s role in marketing strategy Define marketing and identify the four elements of marketing Differentiate consumer and business markets

Exchanges perception, satisfaction What is Advertising? Usually paid for Usually persuasive in nature About products From identified sponsors The structured and composed nonpersonal communication Advertising Through various media

Communication: What makes Advertising Unique Source Formulates an idea Encoding Encodes it as a message MessageChannel Sends it via a channel The human communication process

Communication: What makes Advertising Unique Source EncodingMessageChannel Decoding To be decoded Receiver By a receiver Feedback The human communication process

Feedback Sponsor Author Communication: What makes Advertising Unique Applying the communication process to advertising Source Message Receivers Within the text of the advertisement Persona Literary form 1.Autobiography 2.Narrative 3.drama Implied consumers Sponsorial consumers Actual consumers

Source Dimensions Legally responsible Has a message for consumers Sponsor Copywriter, art director, or creative group Creates the message but invisible to the audience Author Real or imaginary spokesperson Represents the sponsor Persona

Message Dimensions “I” tell a story about myself to “you,” the imaginary audience Autobiography Third person tells a story about others to imagined audience Narrative Characters act out events in front of imagined audience Drama

Receiver Dimensions Ad texts presume an audience These implied consumers are not real Implied consumers Gatekeepers who decide if the ad will run Sponsor’s executives Sponsorial consumers People in the real world who comprise the target audience Actual consumers

Applying the Communication Process to Advertising Redeemed Coupons Phone Inquiries Increased Sales Survey Responses Feedback and Interactivity

Exchanges perception, satisfaction What is Marketing? Process of planning and executing The conception, pricing, distribution and promotion Of ideas, goods, and services To create exchanges that satisfy Marketing Perceived needs, wants, and objectives

Who should be the targets Advertising and the Marketing Process Where advertising should appear What media should be used What the ads should accomplish Marketing Strategy Determines

Identifying Target Markets and Target Audiences Total Market Targe t Mark et Targe t Mark et Marketing Activities

Identifying Target Markets and Target Audiences Total Audience Target Audienc e Target Audienc e Advertising

Types of Markets Total Market Industrial Consumer Markets

Types of Markets Total Market Industrial Consumer Markets

Types of Markets Includes retail advertising Public service announcements Consumer Markets

Types of Markets Consumer Markets Industrial Also called Business-to-business Trade advertising Professional advertising Farm advertising Specialized BTB advertising:

Implementing Marketing Strategy Marketing Strategy: A mix of controllable strategic elements: Product Pricing Distribution Communication

Insurance or tax prep companies use service advertising Mass merchandise: consumer package goods advertising Tech or science products use high-tech advertising The Product Element For virtually every product specialists use a specific type of advertising

NO The Price Element Does the company compete on price? YES Sale advertising Clearance advertising Loss-leader advertising

NO The Price Element Does the company compete on price? Image advertising Regular price-line advertising

The Distribution Element Global Marketers Global advertising sends consistent messages around the world Italy Brazil Turkey Spain

The Distribution Element Other Global Marketers International advertising tailors messages to foreign markets Italy Brazil TurkeySpain

The Distribution Element National advertising Companies marketing in several regions

The Distribution Element Local Advertising Businesses and retailers operating in a small trading area

Communication Element Marketing Communications (marcom) All planned messages That companies create And disseminate to support marketing Advertising Personal selling Sales promotion Public relations activities Collateral materials

Communication Element Integrated Marketing Communications Collateral Materials Sales Promotion Product Advertising Personal Selling Public Relations

Communication Element Integrated Marketing Communications Collateral Materials Sales Promotion Product Advertising Personal Selling Public Relations