1-1 Copyright © 2009 Pearson Education Canada CHAPTER 1 Advertising in a Marketing Communications Environment

1-2 Copyright © 2009 Pearson Education Canada Learning Objectives  Assess the role of advertising and its relationship to marketing and other elements of marketing communications  Identify distinctions among the various forms of advertising  Identify and define the seven components of integrated marketing communications Continued…

1-3 Copyright © 2009 Pearson Education Canada Learning Objectives (cont.)  Explain the conditions that are necessary for advertising to be effective  Identify the basic social and business issues confronting the marketing communications industry in Canada  Describe the roles that laws and regulations play in guiding marketing communications programs in Canada

1-4 Copyright © 2009 Pearson Education Canada The Importance of Advertising Advertising is undoubtedly the most visible form of marketing, and its an industry that is continuously evolving due to rapid changes in technology. Continued…

1-5 Copyright © 2009 Pearson Education Canada The Importance of Advertising (cont.)  Advertising is all around us  Consumers underestimate the influence it has on us  Plays a major role in achieving brand and company objectives by helping to attract new customers and retaining current customers

1-6 Copyright © 2009 Pearson Education Canada The Role of Advertising  Advertising is a paid form of marketing communication through the media that is designed to influence the thought patterns and purchase behaviour of a target audience.  Its primary role is to influence the behaviour of a target market (or target audience) in such a way that members of the target market view the product, service, or idea favourably.

1-7 Copyright © 2009 Pearson Education Canada Advertising and Integrated Marketing Communications

1-8 Copyright © 2009 Pearson Education Canada Integrated Marketing Communications Involves the coordination of all forms of marketing communications into a unified program that maximizes the impact upon consumers and other types of customers.

1-9 Copyright © 2009 Pearson Education Canada Integrated Marketing Communications (IMC)  It embraces many forms of communication:  Advertising  Public relations  Sales promotion  Personal selling  Event marketing and sponsorships  Direct-response communications  Interactive communications

1-10 Copyright © 2009 Pearson Education Canada IMC

1-11 Copyright © 2009 Pearson Education Canada Factors Affecting IMC  Multi-tasking consumers and new technologies  Media dollars moving toward digital media (Internet and mobile devices)  Database marketing allows consumers to be reached effectively and efficiently  Media planning is dominating over the creative component in advertising

1-12 Copyright © 2009 Pearson Education Canada The Forms of Advertising  Consumer Advertising  Business-to-Business Advertising  Product and Promotional Advertising

1-13 Copyright © 2009 Pearson Education Canada Consumer Advertising Persuasive communications designed to elicit a purchase response from consumers.  The major types of consumer advertising are:  National advertising  Retail advertising  End-product advertising  Direct-response advertising  Advocacy advertising

1-14 Copyright © 2009 Pearson Education Canada Business-to-Business Advertising Advertising directed by business and industry at business and industry.  The major types of business-to-business advertising are:  Trade advertising  Industrial advertising  Service-industry advertising  Corporate advertising

1-15 Copyright © 2009 Pearson Education Canada Product and Promotional Advertising Advertising that informs customers of the benefits of a particular brand.  Communicates a distinct reason why buying now is better than buying later

1-16 Copyright © 2009 Pearson Education Canada Conditions Necessary for Using Advertising Effectively For advertising to be effective, certain conditions should be positive.  Market and Product Demand  Product Life Cycle  Competitive Advantage  Competitive Environment  Product Quality  Management Commitment

1-17 Copyright © 2009 Pearson Education Canada Issues in Contemporary Advertising  Transition to IMC  Adapting to New Technologies  Reacting to an On-Demand Media Environment Continued…

1-18 Copyright © 2009 Pearson Education Canada Issues in Contemporary Advertising (cont.)  Reaching the Mobile and Multi-tasking Consumer  Changing Business Environment  The Delivery of Inappropriate or Controversial Messages

1-19 Copyright © 2009 Pearson Education Canada Sex in Advertising Using sex appeal in an appropriate manner and for appropriate products seems natural, but gratuitous sex is something consumers shouldn’t have to tolerate.  Do you agree or disagree? Explain your position

1-20 Copyright © 2009 Pearson Education Canada Extreme Advertising Depicting dangerous or disturbing situations in advertising messages has come under much scrutiny in recent years.  Do you believe this type of advertising encourages young people to get involved in risky activities like what is depicted in advertisements? Explain your position?

1-21 Copyright © 2009 Pearson Education Canada Laws and Regulations The marketing communications industry in Canada is highly regulated.  Regulation control comes from three primary sources:  Canadian Radio-Television Communications Commission (CTRC)  Advertising Standards Canada (ASC)  Competition Bureau

1-22 Copyright © 2009 Pearson Education Canada CTRC Independent public authority in charge of regulating and supervising Canadian broadcast and telecommunications  Governed by the Broadcasting Act and the Telecommunications Act.

1-23 Copyright © 2009 Pearson Education Canada ASC Industry body committed to creating and maintaining community confidence in advertising.  Its mission is to ensure the integrity and viability of advertising through self regulation.  The Canadian Code of Advertising Standards is the principal instrument of self-regulation. Continued…

1-24 Copyright © 2009 Pearson Education Canada ASC (cont.)  The Code addresses the following concerns about advertising:  Accuracy & clarity of messages  Disguised advertising techniques  Price claims  “Bait and Switch”  Guarantees  Comparative advertising  Testimonials  Professional & scientific claims  Imitation  Safety  Superstitions & fears  Advertising to children and minors  Unacceptable depictions & portrayals

1-25 Copyright © 2009 Pearson Education Canada Competition Bureau Responsible for the administration and enforcement of the Competition Act, a law that governs business conduct and marketing practices in Canada.  The Competition Act contains criminal and civil provisions to address false, misleading, and deceptive marketing practices.