Review Chapters 1 - 4

What is advertising? “Advertising is a paid form of persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience), provide information about products (goods, services, and ideas), and interpret the product features in terms of the customer’s needs and wants.” How would any of you define modern advertising? How has it changed over time? It includes identification. Dating back to ancient times, advertising has identified a product and where it was sold. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Common types of advertising Brand advertising Focused on long-term brand identity and image Retail or local advertising Focused on selling merchandise in a geographical area Direct-response advertising Tries to stimulate an immediate customer response Let’s consider the different types of advertising. Brand advertising is focused on long-term brand identity and image. Retail or local advertising is focused on selling merchandise in a geographical area. Direct-response advertising tries to stimulate an immediate customer response. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Common types of advertising Nonprofit advertising Used by not-for-profit organizations to reach customers, members, volunteers, and donors Public service advertising Usually produced and run for free on behalf of a good cause Specialized advertising Used to address specific areas such as health care, green marketing, international campaigns Nonprofit advertising is used by not-for-profit organizations to reach customers, members, volunteers, and donors. Public service advertising is usually produced and run for free on behalf of a good cause. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Who are the key players? The message sponsor or advertiser The Organization The message sponsor or advertiser Likely to have a marketing team that initiates the advertising effort Hires the advertising agency Key players include the advertiser, or the organization sponsoring the message. They are likely to have a marketing team that initiates the advertising effort. They also hires the advertising agency. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Who are the key players? The Agency Creates, produces, and distributes the messages. Employs experts who are passionate about their work. Can negotiate the best media deals for clients. The agency creates, produces, and distributes the message. They employ experts who are passionate about their work. Agencies can also negotiate the best media deals for clients. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Who are the key players? The Media Channels of communication that deliver messages and engage audiences. Many are large media conglomerates such as Time Warner and Viacom. The mass media enable advertisers to reach many people with a single message in a cost-efficient manner. The media is another key player. Media comprise the channels of communication that carry the message to the audience. Many are large media conglomerates such as Time Warner and Viacom. Mass media enables advertisers to reach many people with a single message in a cost-efficient way. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

How are agencies paid? From three main sources: Commissions: based on media billings. Fees: based on an hourly rate or project. Also covers travel and various expenses. Retainers: A regular amount billed each month, based on projected work. How are agencies paid? From three main sources: Commissions: based on media billings. Fees: based on an hourly rate or project. Also covers travel and various expenses. Retainers: A regular amount billed each month, based on projected work. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Brand communication’s role in marketing Marketing managers manipulate the marketing mix, also called the four Ps: Product Place Pricing Promotion Marketing managers manipulate the marketing mix, also called the four Ps: Product Price Place Promotion Urban Decay cosmetics projects a street-smart attitude in their packaging and product names. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

How does the marketing mix send messages? Product Design, performance, and quality are key elements. Communication works to: build awareness of a brand. explain how the new product works. how it differs form competitors. The marketing mix includes the product. Design, performance, and quality are key elements. Communication works to build awareness of a brand, explain how the new product works, and how it differs form competitors. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

How does the marketing mix send messages? Pricing It is based on: What the market will bear. The competition. The economic well-being of the consumer. The relative value of the product. The consumer’s ability to gauge that value. The price sends a message! Pricing is another key element. It is based on what the market will bear, the competition, what the consumer can afford, the relative value of the product, and the consumer’s ability to gauge that value. The price always sends a message! Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

How does the marketing mix send messages? Place (distribution) It includes the channels used to make the product easily accessible to customers. The distribution channel also sends a message. The Internet raises new distribution questions related to “clicks or bricks.” Marketers may use a “push” or “pull” strategy. Place (distribution) includes the channels used to make the product easily accessible to customers. The distribution channel also sends a message. The Internet raises new distribution questions related to “clicks or bricks.” Marketers may use a “push” or “pull” strategy. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Brand position and promise Brand position identifies the location a product or brand occupies in consumers’ minds relative to competitors. Brand promise identifies key selling points for the product. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

A key principle “Brand relationships drive brand value.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Key debates and issues about brand communication practices Diversity and stereotypes As a class: What is a stereotype? How would you define it? Answer: A stereotype is a representation of a cultural group that emphasizes a trait or traits that may or may not communicate an accurate representation. As a class: What is a stereotype? How would you define it? Answer: A stereotype is a representation of a cultural group that emphasizes a trait or traits that may or may not communicate an accurate representation. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Key debates and issues about brand communication practices Sex appeals and body image Advertising that portrays people as sex objects is considered demeaning. Playing on consumers’ insecurities about their appearance can lead to dangerous practices. Responsible advertisers now use models of normal size and weight to reduce pressure on young people. Advertising that portrays people as sex objects is considered demeaning. Playing on consumers’ insecurities about their appearance can lead to dangerous practices. Responsible advertisers now use models of normal size and weight to reduce pressure on young people. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Key debates and issues about brand communication practices False advertising Misleading claims and puffery Comparative advertising Endorsements and demonstrations Dunkin Donuts hopes to convince coffee drinkers to switch from Starbucks based on results from a national taste test. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Adding interaction to brand communication Mass communication is traditionally a one-way process with the message moving from sender to receiver. Interactive communication is two-way—a dialogue—and is where marketing communication is headed. The source and receiver change positions as the message bounces back and forth between them. Mass communication is traditionally a one-way process with the message moving from sender to receiver. Interactive communication is two-way—a dialogue—and is where marketing communication is headed. The source and receiver change positions as the message bounces back and forth between them. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

The Emotional or Affective Facet: Feel Factors that drive the affective response Wants and desires Driven by emotions; based on wishes, longings, cravings. Excitement Our emotions and passions are aroused. This poster from the “Nightlife Navigators” campaign works to create a negative feeling about the financial impact of a DUI ticket. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall