A Passion for the Business Introduction to Advertising A Passion for the Business Chapter 1

SURPRISE QUIZ?

Who am I? Veni Vidi Vici

Questions We’ll Answer CHAPTER KEY POINTS Questions We’ll Answer What is advertising and what are its key components? How has advertising evolved? What are advertising’s main roles? Who are the key players in advertising?

Defining Modern Advertising WHAT IS ADVERTISING? Defining Modern Advertising The Evolution of the Definition of Advertising Identification Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store.

Lincoln Cathedral-1400 A.D.

Defining Modern Advertising WHAT IS ADVERTISING? Defining Modern Advertising The Evolution of the Definition of Advertising Identification Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store. Information Gutenberg’s movable type mechanized the printing process leading to mass communication.

Defining Modern Advertising WHAT IS ADVERTISING? Defining Modern Advertising The Evolution of the Definition of Advertising Identification Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store. Information Gutenberg’s movable type mechanized the printing process leading to mass communication. Promotion The Industrial Revolution led to surplus goods, improved transportation, and the need for new media.

When supply outstrips demand Wants vs. Needs Need to create preference

http://www.youtube.com/watch?v=DXRaboSo70A&feature=related

Defining Modern Advertising WHAT IS ADVERTISING? Defining Modern Advertising The Evolution of the Definition of Advertising Identification Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business, manufacturer, or store. Information Gutenberg’s movable type mechanized the printing process leading to mass communication. Promotion The Industrial Revolution led to surplus goods, improved transportation, and the need for new media. Brand Sales Advertisers became concerned about making ads that worked and defining standards of effective advertising.

Defining Modern Advertising WHAT IS ADVERTISING? Defining Modern Advertising A type of communication intended to impact consumer thoughts, feelings and actions. A form of marketing communication

Defining Modern Advertising WHAT IS ADVERTISING? Defining Modern Advertising Five Basic Factors of Advertising Paid communication Sponsor is identified Tries to inform or persuade Reaches a large audience Message conveyed through many different kinds of largely nonpersonal mass media

What is your book’s definition? “Advertising is a paid form of communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience) and provide information about products (goods, services, ideas).”

Let’s have a working definition Advertising is a sponsored media message intended to persuade you to think, do, or buy something.

Components of Advertising WHAT IS ADVERTISING? Components of Advertising Strategy Creative idea Execution Media The strategy is the logic and planning behind the ad that gives it direction.

Components of Advertising WHAT IS ADVERTISING? Components of Advertising Strategy Creative idea Execution Media The central idea grabs the consumer’s attention and sticks in memory.

Components of Advertising WHAT IS ADVERTISING? Components of Advertising Strategy Creative idea Execution Media Production Values

Components of Advertising ROLES AND TYPES OF ADVERTISING Components of Advertising Strategy Creative idea Execution Media Television, Internet, magazines, and other media are used to reach a broad audience.

ROLES AND TYPES OF ADVERTISING Roles of Advertising Marketing Communication Economic Societal Marketing is satisfying customer wants and needs by providing products (goods, services, ideas).

ROLES AND TYPES OF ADVERTISING Roles of Advertising Marketing Communication Economic Societal Advertising is a message to a consumer about a product, designed to create a response.

ROLES AND TYPES OF ADVERTISING Roles of Advertising Marketing Communication Economic Societal Cost-efficient and lowers prices for consumers. Advertising creates a demand for a brand using hard sell (persuading) and soft sell (image building) techniques.

ROLES AND TYPES OF ADVERTISING Roles of Advertising Marketing Communication Economic Societal Informs about innovations and issues Helps us compare products Mirrors fashion and design trends Helps shape consumer self-image Facilitates self-expression Presents images about diversity in our world

ROLES AND 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 a sale directly Business-to-Business Sent from one business to another

Brand ad Ariel Ad

Brand or Retail? Burger King

ROLES AND TYPES OF ADVERTISING Institutional (Corporate) Advertising Focused on establishing a corporate identity or winning the public over to the organization’s point of view Nonprofit Advertising Used by nonprofits like charities, hospitals, orchestras, museums, and churches for customer, members, volunteers, and donors Public Service Advertising Usually produced and run for free on behalf of a good cause

Honda Asimo ad

PSA from Best of T1 2006/2007 reel

Advertiser Advertiser (client) Agency Media Supplier Audience THE KEY PLAYERS Advertiser Advertiser (client) Agency Media Supplier Audience Wants to send out a message about its business

THE KEY PLAYERS Top Ten U.S. Advertisers

Agency Advertiser (client) Agency Media Supplier Audience THE KEY PLAYERS Agency Advertiser (client) Agency Media Supplier Audience Agencies have the strategic and creative expertise, media knowledge, talent, and negotiating abilities to operate more efficiently than the advertiser. Some large advertisers have in-house departments.

Top Agencies McCann-Erickson BBDO JWT Y&R DDB O&M Grey Campbell-Ewald Draft FCB TBWA Saatchi & Saatchi Leo Burnett

Homework Visit the sites of the top 5 ad agencies Write a paragraph about which one impressed you the most and why. Email to Kate (cc: me) before next class.

Inside an ad agency

Media Advertiser (client) Agency Media Supplier Audience THE KEY PLAYERS Media Advertiser (client) Agency Media Supplier Audience Media are channels of communication that carry the message to the audience. They’re vehicles, but also large media conglomerates like Time Warner and Viacom. Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches.

Supplier Advertiser (client) Agency Media Supplier Audience THE KEY PLAYERS Supplier Advertiser (client) Agency Media Supplier Audience Service organizations that assist advertisers, agencies, and the media in creating and placing ads by providing specialized services Artists, writers, directors, photographers, producers, printers, freelancers, and consultants

Audience Advertiser (client) Agency Media Supplier Audience THE KEY PLAYERS Audience Advertiser (client) Agency Media Supplier Audience People to whom an ad is directed —their responses determine if advertising is effective. Targeting is the process of identifying the people in the desired audience.

THE DEVELOPMENT OF ADVERTISING Advertising Timeline Stage 1: Age of Print Stage 2: Emergence of Consumer Society Stage 3: Modern Advertising Era Stage 4: Age of Agencies Stage 5: The Creative Era Stage 6: The Accountability Era Stage 7: Age of Social Responsibility

Evolution of Products Commodities Products Trademarks Brands Lovemarks?

Bill Bernbach: “Rules are what the artist breaks. The memorable never emerged from a formula.”

The greatest commercial ever made 1984

The New Advertising (Model) CURRENT DEVELOPMENTS The New Advertising (Model) Electronic media are making advertising more intimate, interactive, and personalized. Advertising must evolve to keep up with technology. Creativity involves more than just the ad’s big idea, but finding new ways to engage consumers beyond traditional mass media.

CURRENT DEVELOPMENTS Interactivity People contact companies by phone, the Internet, and through friends. Buzz is getting people to talk about the event, idea or brand. 40% of brand buzz takes place online.

Pet Blog

Integrated Marketing Communication (IMC) CURRENT DEVELOPMENTS Integrated Marketing Communication (IMC) IMC means unifying all marketing communication messages and tools to send a consistent, persuasive message promoting the brand’s goals. Synergy means messages have more impact working jointly than on their own.

What Makes an Ad Effective? CURRENT DEVELOPMENTS What Makes an Ad Effective? Gets attention Creates a positive impression for a brand Separates the brand from the competition Influences people to respond in the desired way An ad that works—that is effective—is one where the target audience responds as the advertiser intended.

If you remember one thing Effectiveness is the target audience responding as the advertiser intended

Vicky’s Corner