Advertising 1/26/15 10:03 PM Marketing • What’s the difference between advertising and marketing? • Marketing is a much larger process • Focuses on the market as a whole • Advertising is focused in one branch of marketing • Four P’s of Marketing • Product • Place • Price • Promotion • Advertising is only part of the promotion • Promotes product – does not develop • Has nothing to do with the price of the product • Has nothing to do with the placement of the product Quick Overview of Advertising • Major Jobs • Creative • What you think about when you think of advertising • These are designers, artists, those that come up with the ideas • Create and design the advertisements that you see • Media Planning • Media planner • Media buyer • These people crunch numbers and decide distribution of ads • Look for cheap solutions • Use metrics • Try to hit the target audience • A lot of entry level jobs here • Account • Deal with clients • Get new clients • Keep relationships with old clients • Make sure account is running smoothly • Etc.• (Most jobs fall into one of these categories) • Research • Administrative & PR • Media Outlets • You can also work for the media outlets themselves • Try to get advertisers to use your medium or media • Brands • Simplest definition: the identity of a product • Campaigns • A coordinated and organized effort to present a coherent advertising message and theme across media • ROI • Target Audience • The audience most likely to purchase a particular product • Determined through research • Demographics, Psychographics Common Metrics • Reach • Frequency • Ratings • Share • Click-Through’s • CPM • Awareness • Behaviors • ROI • Stands for return on investment • Gain-cost/cost • Advertisers pay a lot of money for spots • Want to make sure it actually sells • Many ads are aimed at: • Attitudes • Beliefs, etc. • Not actual behavior • How do you measure this?History of Advertising • From earliest societies to Greeks to Colonial America to the Industrial Revolution • Advertising has been around for centuries • Mainly in newspapers • Paintings on barns • Grew to magazines, TV • Etc. Development of Brands • Brands didn’t exist until about Civil War times • Brands • 1. Standardized the product and made it predictable • 2. Provided a product identity for advertisers • Brought about packaging • Led to agencies • Etc. Earning Potential • Media Planning • Entry level = $25-$40,000 • Mid Level = about $57,000 • Executive Level = about $60,000+ • Creative • Entry = $33-$41,000 • Mid = about $51,000 • Executive = about $60,000+ • Account • Entry = about $40,000 • Mid = $45-$60,000 • Executive = $65,000+ Types of Agencies • Full service agency • Main functions:• Planning • Creation and execution • Coordination • Advertising process: • Accounts person contacts company or company contacts accounts and ask for proposal • Account executives meet with the company to discuss goals, budget, timetable, etc. • Situation analysis • Research on potential customers • Potential campaign ideas are born • Storyboards, scripts, etc. are created • Presentation of idea • If company is chosen: • Ads are actually produced • Media plan is designed • Ads get to the public • Campaign evaluations begin • Process begins anew • Creative boutique • Small • Focus on one aspect of advertising (likely creative) • May hire other groups to do the rest of the functions • Persuasion: • Central vs. peripheral • Choice depends on two things: • Willingness • Ability to think • Hi watt – very willing and able to think (use arguments) • Low watt – not willing or able to think (use cues) • Individual vs. cultural • Individual • Focus on appeals and emotions • Benefit the individual• Cultural • Focus on norms • Do not be left out • Simple persuasion techniques • Foot in the door – small requests that add up • Door in the face – ask a large request, knowing you’ll be denied, then ask a smaller request • Bait and switch – bait someone with a great deal, then when they get to store switch to a more expensive product • Specialist agency • In-house agency or department Main Challenges in Advertising • Clutter, clutter, clutter • Advertisers at least need your attention • How do you create an ad that is attention grabbing, yet still focuses on your persuasive plan and goals? Exciting Times for Advertising • Exciting times for mass communication in general • Dawn of the digital age • More opportunities to reach audience in a creative and even interactive way • Much more development on the horizon • Digital era brings new challenges • Fragmentation • Clutter • Ad skipping • Endless changes • Audience economics Advertising Research • Advertising effects • Consumer and lifestyle research • Qualitative vs. quantitative research• Assessing target audience Advertising Effects • Four levels of understanding: • Awareness of brand or company • Comprehension of the product and what it will do for them • Conviction that you should buy the product • Action • Ways to studies these levels: • Audience research • Gathering basic data about the audience • Media research • Study the characteristics of a medium; what it can and cant do • Copy research • Compare reactions of sample audiences Consumer and Lifestyle Research • Consumer research • Study the consumer, likes, dislikes, etc. • Lifestyle research • Trends in behaviors and buying patterns • This is applied research • Meant to stimulate sales, not uncover theories of human behavior Quantitative vs. Qualitative Research • Quantitative research – using statistics and numbers to generalize to a population • Mass surveys, etc. • Qualitative research – using individual data to define a phenomenon • Interviews, focus groups, etc. Assessing Target Audience • Audience segments • Product-oriented vs. user-orientedCriticisms of Advertising • Economics • Doesn’t help you make wise choices • Raises the price of products • Possibly