CHAPTER 1
INTRODUCTION TO ADVERTISING
CHAPTER LEARNING OBJECTIVES
1. Discuss the elements of great advertising.
2. Define advertising and identify nine types and four roles of advertising.
3. Identify the five players in the advertising world.
4. Explain how key figures and events in advertising history affect advertising today.
5. Summarize current advertising trends.
CHAPTER OVERVIEW
In advertising today, it is no longer sufficient to just have creative ads. Professionals have learned that explicit objectives should drive the planning, creation, and execution of each ad. This not only makes good sense but it is also cost effective. Following this basic theme, this chapter introduces the wonderful world of advertising.
The first major subject discussed in the chapter is to examine the characteristics of great ads. Good or great ads work on two levels. First, the ads should satisfy the consumer’s objectives by engaging them and delivering a relevant message. At the same time, the ads must achieve the sponsors objectives. Therefore, the advertiser is responsible for meeting its own goals as well as those of the consumer. Several ideas for accomplishing this objective are presented. In summary, three broad dimensions characterize great advertising: strategy, creativity, and execution.
Exactly what is advertising? The chapter indicates that advertising is paid nonpersonal communication from an identified sponsor using mass media to persuade or influence an audience. This definition (though simple) has numerous complex parts. Each part is explained in context with goals, objectives, and effective strategy formulation. All advertising is not the same. In fact, nine different types are identified and discussed in this chapter. As will be seen later, special attention needs to be paid each individual form. No matter which type of advertising is present, four possible roles can be played by advertising in business and society (marketing, communication, economic, and societal). Each role is described with an example for the convenience of the reader.
Successful advertising is the result of the interaction of several players. Five (5) key players are identified in the chapter. The advertiser is the individual or organization that usually initiates the advertising process. This can be manufacturers, service providers, resellers, individuals, or institutions. The advertising agency are independent organizations that help to plan and implement part or all of the organization’s advertising effort. The media are the channels of communication that carry the messages from the advertiser to the audience. The fourth player in the world of advertising is the group of service organizations that assist advertisers, advertising agencies, and the media--the vendors. Lastly, the target audience is also part of the advertising process.
The introduction to the world of advertising would be incomplete without an examination of the history of advertising. The chapter presents an excellent summary of the major events that have impacted advertising over the years. As the story unfolds, the careful reader will be able to observe the impact of pioneers on the advertising industry and how successful promotion and communication techniques were developed.
The chapter concludes with a brief overview of several current advertising issues that will impact the players and industry in the next several years. Chief among these issues are interactive advertising, integrated marketing communication, globalization, niche marketing, customer empowerment, relationship marketing, and mass customization. The reader is encouraged to think about each of these issues as progress is made through the remainder of the text.
CHAPTER OUTLINE
1. What Makes An Ad Great?
a. Thanks to new technology that makes advertising more cost-effective, advertising
is now available to marketers of all size instead of well-financed marketing giants.
b. Explicit objectives should drive the planning, creation, and execution of each ad.
1). An ad is great to the extent that it achieves is objectives, not because it wins
awards.
2). Creativity for its own sake does not always lead to great advertising.
*****Use Class Project #2 Here; Use Power Point #1-3 Here*****
Characteristics of Great Ads
c. Good or great ads work on two levels:
1). The ads should satisfy the consumers’ objectives by engaging them and
delivering a relevant message.
2). Ads must achieve the sponsor’s objectives.
*****Use Figure 1-1 Here; Use Power Point #1-4 and #1-5 Here*****
d. Advertisers and consumers have different goals relating to advertising.
1). The advertiser is responsible for meeting its own goals and those of the
consumer.
2). A consumer, for example, may be interested in watching an ad for its
entertainment value or to satisfy curiosity. The ad is probably remembered
because it was entertaining.
3). The advertiser, on the other hand, wants consumers to buy and keep buying
their goods and services. The advertiser must gain the consumer’s attention
and awareness.
*****Use Figure 1-1 Here; Use Power Point #1-5 Here*****
4). To forge a relationship, the advertiser must understand the consumer well
enough to provide the information the consumer wants when needed.
e. Three broad dimensions characterize great advertising:
1). Strategy.
2). Creativity.
3). Execution.
*****Use Practical Tips #1 Here; Use Learning Objective #1 Here; Use Power Point
#1-6 Here*****
Strategy
f. Every great ad implements a sound strategy. The advertiser:
1). Develops an ad to meet specific objectives.
2). Carefully directs it to a certain audience.
3). Creates its message to speak to that audience’s most important concerns.
4). Runs it in media that will reach its audience most effectively.
Creativity
g. The creative concept is a central idea that grabs attention and sticks in your
memory.
1). A concern for creative thinking drives the entire field of advertising.
*****Use Key Term creative concept Here; Use Power Point #1-6 Here*****
Execution
h. Every great ad is well executed; the craftsmanship is impressive.
1). Good advertisers know that how you say it is just as important as what you say.
2). What you say comes from strategy, whereas how you say it is a product of
creativity and execution.
i. The ultimate test for the greatness of an ad is whether it achieved its goals.
*****Use Practical Tips #2 Here; Use Learning Objective #1 Here; Use Discussion
Question #1 Here; Use Hands-On Case Here; Use Power Point #1-6 and #1-7
Here*****
3. The World of Advertising
Defining Advertising
a. Advertising is paid nonpersonal communication from an identified sponsor using
mass media to persuade or influence an audience.
1). Although advertising delivered through interactive technology might be
considered personal rather than mass communication, it is still a far cry from
personal selling.
2). The costs for time in broadcast media, for space in print media, and for time
and space in interactive and support media are spread over the tremendous
number of people that these media reach.
*****Use Key Term advertising Here; Use Learning Objective #2 Here; Use Power
Point #1-8 Here*****
Types of Advertising
b. There are nine (9) major types of advertising:
1). Brand Advertising (national consumer advertising)--focuses on the
development of a long-term brand identity and image.
2). Retail or Local advertising--focuses on the store where a variety of products
can be purchased or where a service is offered. The message:
a). Announces products that are available.
b). Stimulates store traffic.
c). Tries to create a distinctive image for the store.
3). Political Advertising--using advertising to persuade people to vote for
politicians.
4). Directory Advertising--people refer to it to find out how to buy a product or
service (such as Yellow Pages advertising).
5). Direct-Response Advertising--can use any medium (such as direct mail); it tries
to stimulate a direct sale.
6). Business-to-Business Advertising--messages directed at retailers, wholesalers,
and distributors, as well as industrial purchasers and professionals (such as
lawyers).
7). Institutional Advertising (corporate advertising)--messages focus on
establishing a corporate identity or on winning the public to the organization’s
point of view.
8). Public Service Advertising--PSAs communicate a message on behalf of some
good cause (such as stop drunk driving).
9). Interactive Advertising--delivered to individual consumers who have access
to a computer and the Internet. Advertisements are delivered via Web pages,
banner ads, and so forth.
*****Use Key Terms Institutional Advertising and Interactive Advertising Here; Use
A Matter Of Effectiveness Box Here; Use Learning Objective #2 Here; Use
Power Point #1-9 Here*****
*****STATION BREAK #1--Have students learn more about Interactive Advertising
by having them go to the Burton Snowboards Web site at www.burton.com. This
intriguing site offers many examples of what is now “modern” advertising.
Have the students critique the Web site as to the features, the amount of
interactivity, and interest building ads. Does it make you want to try the
new sport? Use Power Point #1-10 Here*****
Roles of Advertising
c. Advertising can be explained in terms of the four roles it plays in business and in
society:
1). The Marketing Role--
a). Marketing is the process a business uses to satisfy consumer needs and
wants through goods and services.
b). A target market is the particular set of consumers that the company
chooses to direct its marketing effort towards.
c). Marketing communication--a method for communicating or promoting.
d). The marketing mix (4 Ps) consists of product, price, promotion, and place.
2). The Communication Role--advertising as a form of mass communication
transmits different types of market information to match buyers and sellers in
the marketplace. Advertising informs and transforms.
3). The Economic Role--
a). The market power model considers advertising to be a means of persuasion
that increases product differentiation and decreases consumers’ willingness
to substitute competing alternatives.
b). The model based on the economics of information theory assumes that price
elasticity is a function of consumer awareness and of qualitative knowledge
about close brand substitutes. Advertising is information under this model.
4). The Societal Role--
a). Informs us about new and improved products.
b). Teaches us how to use these innovations.
c). Helps us to compare products and features and make informed decisions.
d). It mirrors fashion and design trends and adds to our aesthetic sense.
e). Can advertising manipulate people? The argument can be made either way.
*****Use Key Terms marketing, target market, marketing communication, and
marketing mix (4 Ps) Here; Use A Matter of Principle Box Here; Use
Learning Objective #2 Here; Use Discussion Question #1 Here; Use Power Point
#1-11 Here*****
Functions of Advertising
d. Advertising performs three basic functions:
1). Product and Brand Information--this is the main function of
advertising.
2). Incentive to Take Action--provides consumers with reasons to switch brands
by presenting reasons through copy or graphics.
3). Reminder and Reinforcement--advertising must be constantly reminding the
consumer about the name of the brand or its benefits.
*****Use Table 1-1 Here; Use Power Point #1-12 Here*****
4. The Five Players of Advertising
a. There are five key players in the advertising world:
1). The advertiser.
2). The advertising agency.
3). The media.
4). The vendor.
5). The audience.
*****Use Learning Objective #3 Here*****
The Advertiser
b. The advertiser is the individual or organization that usually initiates the advertising
process. The advertiser makes the final decision about:
1). The target audience.
2). The media that will carry the advertising.
3). The size of the advertising budget.
4). The length of the campaign.
*****Use Key Term advertiser Here; Use Power Point #1-13 Here*****
The Advertising Agency
c. Advertisers hire independent agencies to plan and implement part or all of their
advertising effort.
1). An advertiser uses an outside agency because it believes the agency will be
more efficient in creating an individual commercial or a complete campaign.
2). Large advertisers are involved through:
a). The Advertising Department--most large businesses have one of these.
b). The In-House Agency--performs most, if not all, of the functions of an
outside advertising agency.
*****Use Key Term In-House Agency Here; Use Figure 1-2 Here; Use Discussion
Questions #3 and #4 Here; Use Suggested Class Project #1 Here; Use Power
Point #1-13 Here*****
The Media
d. The media are the channels of communication that carry the messages from the
advertiser to the audience. Media organizations are organized to do the following:
1). Sell space in print media.
2). Sell time in broadcast media.
3). Sell space and time in electronic and other support media.
4). Assist in media selection and analysis.
5). Help with ad production.
*****Use Key Term media Here; Use Power Point #1-13 Here*****
Vendors
e. Vendors assist advertisers, advertising agencies, and the media with tasks of putting
together an ad (such as artists, song writers, or musicians).
*****Use Key Term vendors Here; Use Power Point #1-14 Here*****
The Target Audience
f. The target audience has a direct bearing on the overall advertising strategy.
Especially the creative strategy and the media strategy.
*****Use Figure 1-1 Here (previously used); Use Learning Objective #3 Here; Use
Power Point #1-14 Here*****
5. The Evolution of Advertising
a. The history of advertising has been both dynamic and unpredictable.
*****Use Figure 1-3 Here; Use Power Point #1-15 Here*****
The Age of Print
b. Johannes Gutenberg’s printing press moved society toward a new level of
communication--mass communication.
1). Printed materials became more accessible to more people.
2). Literacy levels increased.
3). More businesses began to advertise.
The Industrial Revolution and Emergence of Consumer Society
c. The mid-1800s marked the beginning of the U.S. advertising industry.
1). The purpose of modern advertising was to devise an effective, efficient
communication system that could sell products to a widely dispersed
marketplace.
2). Early advertising experts (such as Volney Palmer--the first adman) functioned
as media brokers--they bought a large amount of advertising space at a
discount and then sold it to advertisers at a higher rate.
3). Agencies developed the role of convincing manufacturers to advertise their
products.
4). Most ads of this period were in magazines and newspapers.
5). Magazines became more popular because:
a). E.C. Allen introduced the People’s Literary Companion that appealed to
a large general audience.