INTRODUCTION TO ADVERTISING Definition. The Industry. Roles. Types. Evolution

Snippet Team Obama campaign in 2006 was woven round the theme –change- and the slogan ‘yes, we can’ Team Buhari capitalized on the change mantra with drive to ease of corruption, impunity, bad governance Team Obama spent $310m while Team Buhari spent N1.424bn How was this money spent? – print, TV, social media, radio, billboard, promotion, etc Most of Obama money was raised online

Before we define advertising… The whole business of marketing communications is building a relationship – relationship marketing Consumers can choose from a wide variety of products and services. As a result, the customer relationship—in which the sale is only the beginning—is the key strategic resource of the successful 21st-century business. Commitment to relationship marketing helps: identify, satisfy, retain, and maximize the value of profitable customers manage the contacts between the customer and the company to ensure their effectiveness develop a full view of the customer by compiling and analyzing customer data.

The importance of relationship The cost of loosing a customer – no amount of marketing can win back a lost loyal customer; word- of-mouth marketing can have snowballing effect The cost of acquiring new customer – defensive marketing cost less than offensive marketing because it is not easy to lure satisfied customer away from the competition The value of loyal customer – the longer customer stays with a product, the more they are willing to pay premium

Relationship could be Basic transactional relationship. The company sells the product but does not follow up in any way (Target). Reactive relationship. The company (or salesperson) sells the product and encourages customers to call if they encounter any problems Accountable relationship. The salesperson phones customers shortly after the sale to check whether the product meets expectations and asks for product improvement suggestions and any specific disappointments. This information helps the company continuously improve its offering Proactive relationship. The salesperson or company contacts customers from time to time with suggestions about improved product use or helpful new products Partnership. The company works continuously with customers (and other stakeholders) to discover ways to deliver better value

What then is advertising? Advertising is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media. X-ray each of the key concepts in the definition

Roles of advertising

Five Players of Advertising The Advertiser is the individual or organization that usually initiates the advertising process. The Advertising Agency plans and implements part or all of the advertising efforts. May use an outside agency, or their own advertising department or in-house agency. The Media are the channels of communication that carry the messages from the advertiser to the audience, i.e. television, magazines, radio, etc.

Five Players of Advertising The Vendors are a group of service organizations that assist advertisers, advertising agencies, and the media, i.e. freelance copywriters, graphic artists, photographers, etc. The Target Audience may be the purchaser or the consumer of the product, or both. May need to design different ads for each group. Critical to know as much about these target audiences as possible.

The Evolution of Advertising 1441- 1850 1850’s-1900 1900-1950’s 1920’s Age of Print Industrial Revolution & Consumer Society Science Rise of Agencies World War I-World War II 1950’s 1960’s-1970’s 1970’s- 1990’s Advertising Declines Reintroducing Consumers to Marketing Creative Era Accountability

Current Advertising Issues Interactive Advertising Integrated Marketing Communication Consumer Power, Relationship Marketing and Customization Globalization Niche Marketing

Some other Key Issues in Advertising 1. Message related issue such as misleading claims; puffery; comparative ad; endorsement/testimonials 2. Product related issues – controversial product; unhealthy/dangerous product; prescription drugs; tobacco; alcohol; gambling 3. Subliminal advertising Puffery – praising items to be sold with subjective and superlative opinion, exaggeration, different from misleading ad

Advertising and Social Responsibility Is advertising inherently good for society or not? People draw on the demand creation debate as well as the manipulation of the mind debate [shape vs mirror debate] and then the over-commercialization debate Ethical issues Advocacy Accuracy Acquisitiveness Is being ethical a problem?

Social Responsibility Public service announcements (PSAs) Ad Council Social marketing Other KEY social responsibility issues are Poor taste/offensive ad Sex in ad Portraying diverse people fairly & accurately – gender stereotypes; body image & self image; racial & ethnic stereotypes; cultural differences in global ad; age related stereotypes; advertising to children; gay/lesbianism; senior citizens

Advertising legal/Regulatory environment Government laws and regulations such as Trademark and copyright protection, APCON, NAFDAC, SON, NBC Industry self regulations - AAPN, OAPN, socially responsible Media review Public/community review – CPC, local groups; activists Competitive complaints Best advertising practices Protection of the advertising business Request students to get relevant codes for advertising practitioners such APCON, NBC,

Children’s Online Privacy Protection Act Enacted to Protect the Privacy Of Children When They Are Using the Internet Enacted to Protect the Privacy Of Children When They Are Using the Internet Enacted to Protect the Privacy Of Children When They Are Using the Internet Enacted to Protect the Privacy Of Children When They Are Using the Internet Places Restrictions on Collecting Information From Children Via The Internet Places Restrictions on Collecting Information From Children Via The Internet Places Restrictions on Collecting Information From Children Via The Internet Places Restrictions on Collecting Information From Children Via The Internet Relation to text This slide relates to material on p. 746 of the text. Summary Overview This slide relates to the Children’s Online Privacy Protection Act and summarizes the characteristics of this piece of legislation which are: Enacted to protect the privacy of children when they are using the Internet Places restrictions on collecting information from children on the Internet Privacy policies must be posted on home page and areas where information is collected Use of this slide This slide can be used to discuss the Children’s Online Privacy Protection Act. Concerns over online marketing to children led to the passage of this act, which the FTC began enforcing in April 2000. Privacy Policies Must Be Posted on Home Pages And Area Where Information Is Collected Privacy Policies Must Be Posted on Home Pages And Area Where Information Is Collected © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Segmentation Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them.

Positioning . A product’s position is the way the product is defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products. “Products are created in the factory, brands are created in the mind,” says a positing [sic] expert.