Basics of advertising

Definition of Advertising Advertising is defined as any Paid form of Nonpersonal Presentation and Promotion of ideas, goods and services by an Identified Sponsor Using Mass Media to Persuade or Influence an Audience.

Functions of Advertising Provide Product & Brand Information Persuade & Provide Incentives To Take Action Advertising Performs 3 Basic Functions Provide Reminders and Reinforcement

Informative Advertising (about new product, customer value, explanation of product working, suggesting new uses of product, informing about price change, building brand and company image) Persuasive Advertising Building Brand Preferences, encouraging switching to your brand, changing customer’s perception about product, persuade customers to buy now. Reminder Advertising Maintaining customer relationships, reminding customers about product uses, its future uses, where to buy from, etc.

History of Advertising Can be traced back to recorded history Archaeologists working in countries around mediterranean sea have dug up signs announcing various events and offers. Romans painted walls to announce gladiator fights. Phoenicians painted pictures promoting their wares on large rocks. Greece towns cries announced the sales of cattle, crafted items and even cosmetics. Modern advertising is a far cry from these early efforts.

Roles of Advertising Marketing Role Communication Role Economic Role The role of marketing is to carry persuasive message to actual and potential customers Economic Role Advertising is a form of mass communication. Societal Role it makes customer stick to a product regardless of the price charged. Consumer values non-price features Informs us about new and improved products, teaches us how to use these innovations, etc.

Economic role The Economic Role advertising is that it makes customer stick to a product regardless of the price charged. Consumer values non-price features. Profits Help consumers assess value through: Price as well as through; quality Location and Reputation Opportunity cost Such price value information helps people make more rational decisions. Advertising decreases the likelihood that the consumer will switch to an alternative product regardless of the price charged.

Societal role The Societal Role Informs people about new and improved products and services that solve their problems in a better way – use of new technological products. It mirrors fashion and design trends and make life more colorful.

Classifications of Advertising By Target Audience By Geographic Area By Medium By Purpose Consumer Business • Local (retail) • Regional • National • International Print Broadcast (electronic) – Radio – TV Out-of-Home Direct-Mail • Product • Nonproduct • Commercial • Noncommercial • Action • Awareness

Scope of Advertising Product related advertising Management delimits the scope of advertising into the following: Product related advertising it is concerned with conveying information about and selling a product or service. Pioneering advertising: developing primary demand by conveying about and selling a product category rather than a brand. Competitive advertising: seeks to stimulate selective demand . Useful when product has reached maturity stage. Retentive advertising: useful when product has achieved a favorable status in the market.

Institutional advertising Communicates and sells the name and prestige of the company. Public service advertising directed at the social welfare of a community or a nation.

Types of Advertising Interactive Advertising Brand Advertising Public Service Advertising Retail or Local Advertising Institutional Advertising Political Advertising Business-to- Business Advertising Directory Advertising Direct-Response Advertising

Retail or Local Advertising: Brand Advertising Focuses on development of a long term brand identity and image. Most visible advertising Retail or Local Advertising: Refer to a retailer or a manufacturer or distributor advertising who offers products in a fairly restricted geographic area. It focus on store traffic, and creating distinctive image for the retailer. Message announces the facts about products available in nearby stores. Political Advertising Politicians use advt. to persuade people to vote for them.

Directory advertising It includes yellow pages, trade directories, organizational directories, etc. Direct Response advertising May use any advertising medium, apart from others it tries to stimulate a sale directly. Business to Business advertising Messages directed at retailers, wholesalers, distributors and from industrial purchasers and professionals to other businesses but not to general consumers. Advertisements placed in publications and professional journals.

Institutional Advertising Also called corporate advertising Focus on establishing a corporate identity or winning the public over to the organizational point of view.

Public service advertising Communicates a message for good cause as save trees, stop wasting water, stop drinking, etc. Usually created free of cost and media often donate time and space. Interactive Advertising: Delivered to individual consumers having access to computer and internet. Advertisers use web pages, banner ads, emails. Consumers can respond to ads or ignore it.

Five Players of Advertising The Advertiser The Advertising Agency The Media The Vendor The Audience

Five Players of Advertising The Advertiser is the individual or organization that usually initiates the advertising process. Uses advertising to send out a message about its products Initiates the advertising effort by identifying a marketing problem Approves audience, plan and budget Hires the advertising agency . need to get out the message Manufacturers Resellers Individuals Institutions, Government Agencies

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. Has strategic and creative expertise, media knowledge, workforce talent, and negotiating abilities.

The Media are the channels of communication that carry the messages from the advertiser to the audience, i.e. television, magazines, radio, etc. Are also companies or huge conglomerates Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches

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.

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