1. Advertising as a process
Chapter 1
Advertising as a process

2. 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

3. 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

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

5. 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

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

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

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

9. 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

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

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

12. 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

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

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

15. 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

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

17. 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