1. Chapter 1 Advertising Today?
William F. Arens Michael F. Weigold Christian Arens
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Chapter Overview
Stresses the importance of IMC to relationship marketing; introduces advertising and distinguishes it from other forms of marketing communication.

4. Chapter Objectives Define integrated market communications (IMC)
Explain the importance of relationship marketing
Explain how the basic human communication process is useful in advertising communication
Define advertising and distinguish it from other forms of marketing communications

5. Chapter Objectives
Define marketing and identify the 4 elements of marketing strategy
Illustrate advertising’s role in marketing strategy
Identify important categories under promotion: the communication element of strategy

6. Hillary Clinton Election Ad McCain/Obama Debate

7. Q. 1. Define Relationship Marketing.

8. Relationship Marketing
Relationship marketing – creating, maintaining, and enhancing long term relationships with stakeholders that result in exchanges of mutual value

9. Relationship Marketing
Goals
Manage customer/ company contacts
Maximize value of profitable customers
Use data to know customer

10. Q. 2. Why is it important for organizations to build relationships?

11. Importance of Relationships
Cost of lost customers Lifetime Customer Value (LTCV)
Cost of acquiring new customers
Value of loyal customers

12. Q. 3. What are the five levels of relationships?

13. Relationship Levels Transactional Reactive Accountable Proactive
Partnership

14. Customer/Profit Relationships
Profit Margins
Number of
Customers
High
Medium
Low
Many
Accountable
Reactive
Transactional
Proactive
Few
Partnership

15. IMC Tactics Mass media Target messages Consumer data Expectations
Less advertising in mass media
Target messages
Heavier reliance on targeted messages
Consumer data
Increased use of consumer data
Expectations
Changed expectations for marketing communication suppliers

16. Affects on Customer View
IMC helps company manage customer perceptions
News
Word of mouth
Web
Expert opinion
Gossip
CEO personality
Financial report
Product view

17. Dale Peterson Political Ad

18. Q. 4. What are the four sources of brand messages?

19. 4 Sources of Brand Messaging1.
Planned messages
(advertising, publicity releases)
Low impact 2.
Product messages
(product, price, packaging)
Great impact 3.
Service messages (employee interactions)
Positive or negative 4.
Unplanned messages (news stories, rumors, competitors remarks, disasters)
Company can influence

20. Dimensions of IMC The Integration Triangle Say Do Confirm
Planned messages
Unplanned messages
Product, service messages

21. Q. 5. Define Advertising.

22. What is Advertising? Structured, composed communication
Directed to groups
Paid for
Usually persuasive
About products
Identified sponsors
Transmitted through a communication medium

23. Dimensions of Advertising
Communication
Economic
Marketing
Social/Ethical

24. Q. 6. What are the four kinds of advertising media?

25. Communication Channels
Mass
Newspapers & Magazines
Radio & TV
Billboards

26. Communication Channels
Mass
Addressable
Direct Mail

27. Communication Channels
Mass
Addressable
Interactive
Billboards
Newspapers & Magazines
Radio & TV
Direct Mail
Mobile
Online

28. Communication Channels
Mass
Addressable
Interactive
Non- traditional
Billboards
Newspapers & Magazines
Radio & TV
Direct Mail
Mobile
Online
Shopping Carts
Tattoos
Blimps

29. Hudson Taylor ( )

30. Q. 7. What are the various elements in the human communication process?

31. Human Communication Process
Noise
Source
Encoding
Message
Channel
Decoding
Receiver
Feedback

32. Interactive Communication Model
Encoder
Source
Decoder
Message
Receiver
Feedback

33. Stern Communication Model

34. Q. 8. What three literary forms are used in advertising messages?

35. Communication: Message Dimensions
Autobiography
“I” tell a story about myself to “you,” the imaginary audience
Narrative
Third person persona tells a story about others to imagined audience
Drama
Characters act in front of imagined empathetic audience

36. Q. 9. Who are the sources and receivers in a message according to the Stern model?

37. Communication: Source Dimensions
Sponsor
Legally responsible
Has a message
Author
Copywriter, art director, creative group
Invisible to audience
Persona
Within the text
Lends voice or tone to ad
Real or imaginary spokesperson

38. Receiver Dimensions Implied consumers
Every ad or commercial assumes an audience of ideal consumers
Sponsorial consumers
Decision makers at the sponsor’s organization
They decide if the ad will run
Actual consumers
People in the real world who comprise the target audience

39. Feedback and Interactivity
Redeemed
Coupons
Feedback &
Interactivity
Survey
Responses
Phone
Inquiries
Increased
Sales
Visits to Web site
Visits to a store
Lets sender know if message received, understood Sender can tell when communication breaks down

40. The Marketing Dimension
Business Functional Divisions
Operations
Finance & Admin
Marketing
Defines advertising’s role in business
Only marketing has revenue generation as primary role

41. What is Marketing? The process of planning and executing…
Concepts, pricing, distribution, and promotion of
Ideas, goods, and services
To create exchanges that…
Satisfy the perceived needs, wants, and objectives of individuals and organizations

42. Advertising Classifications
Target Audience
Geographic Area
Medium
Purpose

43. Target Markets and Audiences
Consumer Markets
Retail & Public Service
Business/Industrial Markets
Trades, Professions, & Agriculture

44. Q. 10. How are the 4Ps related to advertising strategy?

45. Marketing: The 4 Ps Categories of goods or services Product
Price
Strategies for competitive pricing
Place
Distribution and geography
Promotion
Communication channels

46. Product Types of Marketing Communication Consumer High-Tech Goods
Advertising
High-Tech
Advertising
Service
Advertising

47. Price Types of Marketing Communication Image Advertising Loss-Leader
Regular
Price-line
Advertising
Sales and
Clearance
Advertising

48. Place Types of Marketing Communication Local Advertising Global
Regional
Advertising
International
Advertising
National
Advertising

49. Promotion Types of Marketing Communication Collateral Materials
Product
Advertising
Personal
Selling
Sales
Promotion
Public
Relations

50. Marketing: IMC Integrated Marketing Collateral Materials Sales
Promotion
Product
Advertising
Personal
Selling
Public
Relations

51. Frank Caliendo-Impressions of Bush and Clinton