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What is advertising?
ADVERTISING is complex form of communication that operates with objectives and strategies leading to various types of impact on consumers thoughts, feelings, and actions TERM 2
Marketing communication
DEFINITION 2 o Marketing communication is a type of advertising, which communication techniques marketers use to reach their consumers and deliver their messages TERM 3
EVOLUTION OF THE DEFINITION OF
ADVERTISING: INDENIFICATION
DEFINITION 3 advertising in the form of a sign goes back to thousands of years TERM 4
INFORMATiON
DEFINITION 4 advertising changed during the Renaissance when advances in printing technology led to an increase in literacy TERM 5
PROMOTION
DEFINITION 5 technological and social changes speeded up in the lated 1700s with the Industrial Revolution
P.T. Barnum
and manufactures of patent medicines were among the advertising pioneers who made dramatic changes in the field by moving it from information to hype TERM 7
Sales
DEFINITION 7 advertising people became more professional, and also became more concerned about the science of advertising--- making ads that worked on defining the standards of effective advertising TERM 8
Who usually pays for advertising?
DEFINITION 8 ADVERTISING is a paid for of persuasive communication that uses the mass and interactive media to reach broad audiences in order to connect an indentified sponsor with buyers (a target audience) and provide information about products (goods, services, and ideas) TERM 9
(1) Components of Advertising?
DEFINITION 9 STRATEGY: The logic and planning behind the advertisement, strategy is what gives it direction and focus TERM 10
(2) Components of Advertising?
DEFINITION 10 CREATIVE IDEA (concept): Creative concept is the ads central idea that grabs your attention and sticks in your memory
Hard-sell
approaches that use reasons to persuade consumers TERM 17
Soft-sell
DEFINITION 17 approaches that build an image for a brand and touch consumers emotions TERM 18
4 PRIMARY ROLES OF ADVERTISING
DEFINITION 18
- SOCIETAL ROLE: o Advertising mirrors fashion and design trends and adds to our aesthetic sense o Educational role in that it teaches about new products and their use o Helps us shape an image of ourselves by setting up role models with which we can identify o Presents images capturing the diversity of the world in which we live TERM 19
BRAND ADVERTISING
DEFINITION 19 o Most visible type of advertising to consumers o Focuses on development of a long-term brand identity and image o Examples: Apple iMac, Coca Cola, Nike TERM 20
RETAIL OR LOCAL ADVERTISING
DEFINITION 20 o Focuses on retailers or manufactures who sell their merchandise in a certain geographic area o Retail advertising messages announces facts about products that are available in local stores o Objectives: focus on stimulating store traffic and creating a distinctive image for the retailer o Local advertising: refers to a retailer or manufacture or distributor who offers products in a fairly restricted geographic area
DIRECT-RESPONSE ADVERTISING
o Using any advertising medium, including direct mail, with specific purpose of stimulating a sale directly o Consumers can respond by telephone, mail, over the Internet, and the product is directly delivered to the consumer by mail or some other carrier o Evolution of the Internet TERM 22
BUSINESS-TO-BUSINESS (B2B) ADVERTISING
DEFINITION 22 o Marketing communication sent from one business to another o Including messages directly at companies distributing products as well as industrial purchasers and professionals such as lawyers and physicians o NOT directed at general consumers TERM 23
INSTITIONAL ADVERTISING (corporate
advertising)
DEFINITION 23 o Messages focus on establishing a corporate identity or winning the public over to the organizations point of view o Example: Tobacco companies are running ads that focus on the positive things they are now doing o Example: Americas pharmaceutical companies showing casing leukemia treatment are also adopting that focus TERM 24
NONPROFIT ADVERTISING
DEFINITION 24 o Not-for-profit organizations such as charities, foundations, associations, hospitals, orchestras, museums, and religious institutions o Example: members of Sierra Club and volunteers of the Red Cross o Donations and other forms of program participation TERM 25
PUBLIC SERVICE ADVERTISING
DEFINITION 25 o Communicates a message on behalf of a good cause, such as stopping drunk driving or stopping child abuse o Advertising professionals usually create these free of charge advertisements and the media often donates the necessary space and time public service announcement (PSAs)
THE DEVELOPMENT OF ADVERTISING
*The advertising industry has evolved in a dynamic fashion. In some cases, it has reflected social trends; in other instances, it has influenced social trends. *The evolution of advertising can be divided into seven stages, which reflect historical eras and the technological changes that led to different philosophies and styles of advertising. TERM 32
Stage 1: Act of print
DEFINITION 32 Objective: delivers information Primary medium: the newspaper, although handbills, and posters were also important Printing Press: effects were literacy levels increased and encouraged more businesses to advertise TERM 33
Stage 2: Emergence of consumer society
DEFINITION 33 Brand names: at the end of the 19th century advertisers began to give them good brand names Importance of this period: created demand for these new brands This period was the beginning of what we now recognize as the advertising industry. TERM 34
Stage 3: Modern advertising era
DEFINITION 34 Modern professional advertising adopted scientific research techniques TERM 35
Stage 4: Age of
Agencies
DEFINITION 35 Developed rapidly after WWI Consumers were desperate for goods and services New products were loading up the marketplace
Stage 5: The creative era
1960s and 1970s in a period marked by resurgence of art, inspiration, and intuition Largely in response to the emphasis on research and science, this revolution was inspired by 3 creative geniuses: Leo Burnett Ogilvy William Bernbach TERM 37
Stage 6: The accountability era
DEFINITION 37 Starting in the 1970s began an industry-wide focus on effectiveness Clients wanted ads that produced sales, so the emphasis was on research and measurement TERM 38
Stage 7: Age of social responsibility
DEFINITION 38 Late 1900s Charges of using sweatshops in low-wage countries and an apparent disregard for the environment concerned critics Companies changed their way of thinking TERM 39
INTEGRATED MARKETING COMMUNICATION
(IMC)
DEFINITION 39 Is the practice of unifying all marketing communications messages and tools so they send a consistent, persuasive message promoting the brands goals TERM 40
Synergy
DEFINITION 40 means individuals messages have more impact working jointly to promote a product then they would working on their own
Marketing Concept
is the philosophy that suggests marketing should focus first on identifying the needs and wants of the customer rather than on finding way to build and sell products that customers may or may not want. TERM 47
Consumer
DEFINITION 47 people who buy and use products TERM 48
Customer
DEFINITION 48 someone who has purchased a specific brand or visited a specific retailer TERM 49
Exchange
DEFINITION 49 is the act of trading a desired product or service to receive something of value (money) in return TERM 50
Product Differentiation
DEFINITION 50 where a brand is different from its competitors and superior in some way, there is competitive advantage. A product can be differentiated in a variety of ways o Price o Design o Performance o Distribution o Brand image
Added Value
means a marketing or advertising activity make the product more valuable, useful, or appealing to the consumer. Marketing and advertising activities are useful to consumers and marketers because they add value to a product Beyond advertising, other marketing mix factors add value, including convenience, price, useful features and high quality TERM 52
Branding
DEFINITION 52 Branding is the way marketers create a special meaning for a product. TERM 53
Brand Image
DEFINITION 53 is the result of communication and the consumers personal experience with the product TERM 54
Trademark
DEFINITION 54 when a brand name or brand mark is legally protected through registration with the Patent and Trademark Office of the Department of Commerce TERM 55
Brand equity
DEFINITION 55 refers to value based on the brands reputation and meaning that brand name has acquired over time
4. Channel markets:
Made up of members of the distribution chain, which is made up of businesses what we call resellers, or intermediaries. Resellers = wholesalers, retailers, and distributors who buy finished or semi-finished products and resell them for a profit Ex: Microsoft and its retailers TERM 62
Channel marketing
DEFINITION 62 the process of targeting a specific campaign to members of the distribution channel TERM 63
MARKETING
PLAN
DEFINITION 63 is a document that proposes strategies for using marketing elements to achieve marketing objectives. TERM 64
Research
DEFINITION 64 o Research the consumers market and the competitive marketplace and develop a situation analysis or a SWOT analysis (strengths, weaknesses, opportunities, threats) TERM 65
2. Set objectives
DEFINITION 65 o Set objectives for the marketing effort
3. Assess consumer needs
o Assess consumers needs and wants relative to the product, segment the market into that are likely to respond; target specific markets TERM 67
4. Differentiate and position
DEFINITION 67 o Differentiate and position the product relative to the competition TERM 68
5. Develop the marketing mix
strategy
DEFINITION 68 o Develop the marketing mix strategy: select product design and performance criteria, pricing, distribution, and marketing communication TERM 69
6. Evaluate the effectiveness of the strategy
DEFINITION 69 o Evaluate the effectiveness of the strategy TERM 70
MARKETING RESEARCH
DEFINITION 70 The marketing process begins with marketing research into markets, product categories, consumers, and the competitive situation.
Direct Marketing
distribute products directly without the use of a reseller TERM 77
Cooperative (co-op) Advertising
DEFINITION 77 producers share with the resellers the cost of placing an advertisement TERM 78
Pull strategy
DEFINITION 78 directs marketing efforts at the consumer and attempts to pull the products through the channel by intensifying consumer demand TERM 79
Push strategy
DEFINITION 79 directs marketing efforts at resellers, and success depends on the ability of these intermediaries to market the product, often done with advertising TERM 80
Price Copy
DEFINITION 80 focus of much retail advertising, designates advertising copy devoted to this type of information
Customary pricing
expected pricing, uses a single, well-known price for a long period of time TERM 82
Psychological pricing
DEFINITION 82 uses advertising to manipulate the customers judgment of value TERM 83
Guerilla marketing programs
DEFINITION 83 promote the brand on the street and on the feet of its devotees TERM 84
Personal Sales
DEFINITION 84 use face-to-face contact between marketer and a prospective customer, rather than contact through media TERM 85
MARKETING INDUSTRY KEY PLAYERS
DEFINITION 85
- The Marketer 2. Suppliers and Vendors 3. Distributors and Retailers 4. Marketing Partners
Supply Chain
The network suppliers who produce components and ingredients used by a manufacture to make its products TERM 92
Distribution Chain
DEFINITION 92 The companies involved in moving a product from the manufacturer to the customer TERM 93
Types of
Agencies
DEFINITION 93 The biggest agencies are called full-service agencies Include 4 major staff functions: o Account management o Creative services o Media planning o Account planning which may include research Many agencies do not follow the traditional full-service agency approach. They specialize in a wide variety of areas. TERM 94
Creative boutiques
DEFINITION 94 ad agencies, usually small (2-3 people to a dozen or more), that concentrate entirely on preparing the creative execution of the idea or creative product TERM 95
Media-buying services
DEFINITION 95 agencies that specialize in the purchase of media for clients
Account Management
o Functions as a liaison between the client and the agency TERM 97
Commission
DEFINITION 97 is the traditional form of compensation, basing the amount an ad agency chargers its client as a percentage of the media cost TERM 98
Fee System
DEFINITION 98 comparable to the system by which advertisers pay their lawyers and accountants TERM 99
Retainer
DEFINITION 99 amount billed per month is based on the projected amount of work and hourly rate charged (common in PR agencies) TERM 100
Value billing
DEFINITION 100 the agency is paid for its creative and strategic ideas
