Advertising as a process Chapter 1 Advertising as a process

What is advertising? Three criteria must be met for a communication to classified as advertising: The communication must be paid for The communication must be delivered through mass media The communication must be attempting to persuade Ch 1: The process 2

Distinctions Within advertising? Advertisements Specific messages designed to persuade an audience Advertising Campaign An integrated series of ads and promotions that communicate a central theme or idea Integrated Brand Promotion (IBP) Coordinating promotional tools to build and maintain brand awareness, identity, and preference Ch 1: The process 3

Is this political message an advertisement or a public service announcement?

Advertising as a Communications Process Production: The advertiser and social context determine ad content. Accommodation and negotiation: The ways in which consumers interpret ads. Reception: The context of ad reception and the audience’s understanding of an ad result in a meaningful interpretation of the ad. Ch 1: The process 5

Audiences for Advertising Household Consumers Business Organizations The Trade Channel Professionals Government Ch 1: The process 6

Audience Geography Global International National Regional Local Ch 1: The process 7

This ad ran in Italy. Do you think this was a “global” ad or and “international” ad? What’s the difference?

Advertising as a Business Process: Role of Advertising in Marketing and Brand Promotion Advertising and the marketing mix Advertising in brand development and management: Advertising in market segmentation, differentiation, and positioning Advertising in revenue and profit generation: Ch 1: The process 9

The Marketing Mix Perceived Value Product Distribution Promotion Price Ch 1: The process 10

Advertising in Brand Development and Management The Brand Brand Extension Brand Loyalty Brand Equity Ch 1: The process 11

Advertising’s role in SDP marketing Positioning Segmentation (heterogeneous > homogeneous) Differentiation (perceived as different or unique) Distinct from other brands Occupies a “value” level External niche vs. internal Ch 1: The process 12

Revenue and Profit Generation Economies of scale Inelasticity of demand Ch 1: The process 13

Types of Advertising Primary demand stimulation Selective demand stimulation Direct response advertising Delayed response advertising Corporate advertising Ch 1: The process 14

Is this ad an example of primary or selective demand stimulation Is this ad an example of primary or selective demand stimulation? What’s the difference? Ch 1: The process 15

The Economic Effects of Advertising Gross Domestic Product Business Cycles Competition Prices Value Ch 1: The process 16

Integrated Brand Promotion (IBP) Coordinated promotional events reinforce one another Special Events Television Advertising C o u p n s Ch 1: The process 17