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Introduction toAdvertising
PROF. (DR.) ANUPAM NARULA
B.Sc. (Math's), M.A (Eco.), PGDBM (MKTG), Ph.D. (Eco.)
DEAN,
MANGALMAY INSTITUTE OF MANAGEMENT STUDIES,8 - KNOWLEDGE PARK-II ,
GREATER NOIDAGREATER NOIDA
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Chapter Outline
I. Chapter Key Points
II. What is Advertising?
III. Roles and Functions of Advertising
IV. The Key Players
V. Types of Advertising
VI. What Makes an Ad Effective?
VII. The Evolution of Advertising
VIII.The Current Advertising Scene
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Key Points
Define advertising and explain its key components
Discuss the roles and functions of advertising withinsociety and business
Identify the key players and their roles in creatingadvertising
Explain the different types of advertising
Summarize the characteristics of effective advertising
and explain why it is always goal directed Analyze the changes affecting the advertising
industry
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Defining Modern Advertising
Advertising is paid
persuasive
communication
Uses Non-Personalmass media to reach
broad audiences to
connect an identified
sponsor with a target
audience
Five basic
components:
1. Paid communication
2. Sponsor is identified3. Tries to persuade or
influence
4. Reaches a large
audience5. Conveyed through
impersonal mass media
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Key Concepts of Advertising
Strategy
Creative idea
Execution
Media
The logic and planningbehind the ad
Advertisers develop ads
to meet objectives Advertisers direct ads to
identified audiences
Advertisers create
messages that speak tothe audiences concerns
Advertisers run ads inthe most effective media
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Key Concepts of Advertising
Strategy
Creative idea
Execution
Media
The central idea that
grabs the consumers
attention
Creativity drives theentire field of
advertising
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Key Concepts of Advertising
Strategy
Creative idea
Execution
Media
Effective ads adhere to
the highest production
values in the industry
Clients demand the bestproduction the budget
allows
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Key Concepts of Advertising
Strategy
Creative idea
Execution
Media
Communication
channels that reach a
broad audience
How to deliver themessage is just as
important coming up
with the creative idea of
the message
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Roles of Advertising
Marketing
Communication
Economic
Societal
The process a business
uses to satisfy consumer
needs by providing
goods and services Product category
Target market
Marketing mix
Brand
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Roles of Advertising
Marketing
Communication
Economic
Societal
Can reach a mass
audience
Introduces products
Explains important
changes
Reminds and reinforces
Persuades
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Roles of Advertising
Marketing
Communication
Economic
Societal
Moves from being
informational to
creating demand
Advertising is anobjective means for
providing price-value
information, thereby
creating a more rational
economy
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Roles of Advertising
Marketing
Communication
Economic
Societal
Informs consumersabout innovations andissues
Mirrors fashion anddesign trends
Teaches consumersabout new products
Helps shape consumerself-image
Perpetuates self-expression
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The Key Players
Advertiser(client)
Agency Media
Supplier Audience
Uses advertising to sendout a message about its
products
Initiates the advertisingeffort by identifying amarketing problem
Approves audience,
plan and budget Hires the advertising
agency
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
Has strategic and
creative expertise,
media knowledge,
workforce talent, andnegotiating abilities
Advertising department
In-house agency
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
The channels of
communication that carry
the message to the audience
Are also companies or hugeconglomerates
Mass media advertising can
be cost effective because the
costs are spread over thelarge number of people the
ad reaches
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
Assist advertisers,
agencies, and the media
in creating and placing
the ads
Vendor services are
often cheaper than those
in-house
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The Key Players
Advertiser
(client)
Agency
Media
Supplier
Audience
The desired audience for the
advertising message
Data-gathering technology
improves accuracy of
information about customers
Advertisers must recognize
the various target audiences
they are talking to and know
as much about them aspossible
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Types of Advertising
Brand advertising
Retail or Local advertising
Direct-Response advertising Business-to-Business advertising
Institutional advertising
Nonprofit advertising Public Service advertising
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What Makes an Ad Effective?
1. If it creates an impression for a product or
brand
2. If it influences people to respond in some
way
3. If it separates the product or brand from the
competition in the mind of the consumer
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What Makes an Ad Effective?
Effective advertising
messages will achieve
the desired impact
(objective) on the targetaudience
Award Shows
EFFIES, AME, IPA
Judge effectiveness
CLIOS, One Show,
Cannes
Judge creative ideas
Not all award-winingads are effective
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The Evolution of Advertising
Age of Print
Industrial Revolution and Emergence of
Consumer Society
Modern Advertising Era
Accountability Era
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The Current Advertising Scene
Expanded view
Integrated
Marketing
Communication
Globalization
Electronic media are
changing the media
landscape
New media are morepersonal and interactive
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The Current Advertising Scene
Expanded view
Integrated
Marketing
Communication
Globalization
The practice of unifying
all marketing
communication tools so
they send a consistent,persuasive message
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The Current Advertising Scene
Expanded view
Integrated
MarketingCommunication
Globalization
Increasing globalization
of marketing programs
Advertisers are moving
into global markets andagencies are forming
huge multinational
operations