1. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 1 Advertising Today?

2. 1-2 Chapter Overview Identifies and explains economic, social, ethical, and legal issues advertisers must consider

3. 1-3 Chapter Objectives Define marketing Discuss advertising’s role in marketing strategy Explain how advertising differs from basic human communication Define advertising Explain the difference between consumer and business markets Distinguish it from other forms of marketing communications Identify the elements of marketing strategy

4. 1-4 Advertising Goals o Awareness o Comprehension o o Conviction o o Action

5. 1-5 What is Advertising? o Structured, composed communication o Directed to groups o Paid for o Usually persuasive o About products o Identified sponsors o Transmitted through advertising media

6. 1-6 Communication Channels Billboards Newspapers & Magazines Radio & TV Mass

7. 1-7 Communication Channels Direct MailE-Mail Addressable Mass

8. 1-8 Communication Channels Direct Mail E-Mail Mobile Online Interactive Addressable Billboards Newspapers & Magazines Radio & TV Mass

9. 1-9 Communication Channels Direct Mail E-Mail Mobile Online Shopping Carts Blimps Tattoos Non- traditional Billboards Newspapers & Magazines Radio & TV Addressable Mass Interactive

10. 1-10 Dimensions of Advertising CommunicationMarketing EconomicSocial/Ethical

11. 1-11 Human Communication ProcessSourceEncodingMessageChannelDecodingReceiver Feedback Noise

12. 1-12 Human Communication Process Source Encoding Message Decoding Receiver Feedback Channel Noise

13. 1-13 Stern Communication Model

14. 1-14 Communication: Source Dimensions Sponsor Author Persona Legally responsible Has a message Copywriter, art director, creative group Invisible to audience Within the text Lends voice or tone to ad Real or imaginary spokesperson

15. 1-15 Communication: Message Dimensions Autobiography Narrative Drama “I” tell a story about myself to “you,” the imaginary audience Third person persona tells a story about others to imagined audience Characters act in front of imagined empathetic audience

16. 1-16 Message: Autobiography Autobiography: The woman in this ad directly addresses the viewer

17. 1-17 Message: Narrative Narrative: Off-camera narrator describes the excitement of Detroit Red Wing Hockey

18. 1-18 Message: Drama Drama: Creates a scene so the reader receives the message by implication This Lego ad requires little explanation

19. 1-19 Receiver Dimensions Implied consumers Every ad or commercial assumes an audience of ideal consumers Sponsorial consumers Decision makers at the sponsor’s organization They decide if the ad will run Actual consumers People in the real world who comprise the target audience

20. 1-20 Feedback and Interactivity o Lets sender know if message received, understood o Sender can tell when communication breaks down Feedback & Interactivity Redeemed Coupons Survey Responses Phone Inquiries Increased Sales Visits to Web site Visits to a store

21. 1-21 The Marketing Dimension Business Functional Divisions OperationsFinance & Admin Marketing o o Defines advertising’s role in business o o Only marketing has revenue generation as primary role

22. 1-22 What is Marketing? The process of planning and executing… Concepts, pricing, distribution, and promotion of Ideas, goods, and services To create exchanges that… Satisfy the perceived needs, wants, and objectives of individuals and organizations

23. 1-23 Advertising Classifications Target Target Audience Geographic Area Medium Purpose

24. 1-24 Target Markets and Audiences Business/Industrial Markets Trades, Professions, & Agriculture Consumer Markets Retail & Public Service

25. 1-25 Consumer Advertising Tide targets business people who see the benefit of wiping out small stains

26. 1-26 B2B Advertising Microsoft targets business professionals that use Mac computers

27. 1-27 Marketing: The 4 Ps Product Price Place Promotion Categories of goods or services Strategies for competitive pricing Distribution and geography Communication channels

28. 1-28 Marketing Communications (Marcom) Collateral Materials Sales Promotion Product Advertising Personal Selling Public Relations Types of Marketing Communication

29. 1-29 Marketing: IMC New media proliferation More competition Higher costs Less-efficient advertising Cynical, untrusting, sophisticated consumers Gaps between promise & delivery Need for more relationship building Movement to establish consistency among agencies & departments

30. 1-30 Marketing: IMC Integrated Marketing Collateral Materials Sales Promotion Product Advertising Personal Selling Public Relations