Slide 1Slide 2ObjectivesWhat is Advertising?Communication: What makes Advertising UniqueSlide 6Slide 7Source DimensionsMessage DimensionsReceiver DimensionsApplying the Communication Process to AdvertisingWhat is Marketing?Advertising and the Marketing ProcessIdentifying Target Markets and Target AudiencesSlide 15Types of MarketsSlide 17Slide 18Slide 19Implementing Marketing StrategyThe Product ElementThe Price ElementSlide 23The Distribution ElementSlide 25Slide 26Slide 27Communication ElementSlide 29Slide 30© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinChapter1What is Advertising Today?Defining advertising and introducing the professionInsert Bunny adp. 3HereObjectivesDefine advertising and differentiate it from other forms of marketing communicationsExplain how advertising differs from the basic human communication processDiscuss advertising’s role in marketing strategyDefine marketing and identify the four elements of marketingDifferentiate consumer and business marketsExchangesperception, satisfactionWhat is Advertising?Usually paid forUsually persuasive in natureAbout productsFrom identified sponsorsThe structured and composed nonpersonal communicationAdvertisingThrough various mediaCommunication: What makes Advertising UniqueSourceFormulates an ideaEncodingEncodes it as a messageMessage ChannelSends it viaa channelThe human communication processCommunication: What makes Advertising UniqueSourceEncoding Message ChannelDecodingTo be decodedReceiverBy a receiverFeedbackThe human communication processFeedbackSponsorAuthorCommunication: What makes Advertising UniqueApplying the communication process to advertisingSourceMessageReceiversWithin the text of the advertisementPersonaLiterary form1. Autobiography2. Narrative3. dramaImplied consumersSponsorialconsumersActual consumersSource DimensionsLegally responsibleHas a message for consumersSponsorCopywriter, art director, or creative groupCreates the message but invisible to the audienceAuthorReal or imaginary spokespersonRepresents the sponsorPersonaMessage Dimensions“I” tell a story about myself to “you,” the imaginary audienceAutobiographyThird person tells a story about others to imagined audienceNarrativeCharacters act out events in front of imagined audienceDramaReceiver DimensionsAd texts presume an audienceThese implied consumers are not realImplied consumersGatekeepers who decide if the ad will runSponsor’s executivesSponsorial consumersPeople in the real world who comprise the target audienceActual consumersApplying the Communication Process to AdvertisingRedeemed CouponsPhoneInquiriesIncreasedSalesSurveyResponsesFeedback and InteractivityExchangesperception, satisfactionWhat is Marketing?Process of planning and executingThe conception, pricing, distribution and promotionOf ideas, goods, and servicesTo create exchanges that satisfyMarketingPerceived needs, wants, and objectivesWho shouldbe the targetsAdvertising and the Marketing ProcessWhere advertising should appearWhatmediashouldbe usedWhat the adsshould accomplishMarketing StrategyDeterminesIdentifying Target Markets and Target AudiencesTotal MarketTargetMarketTargetMarketMarketing ActivitiesIdentifying Target Markets and Target AudiencesTotalAudienceTargetAudienceTargetAudienceAdvertisingTypes of MarketsTotal MarketIndustrialConsumerMarketsTypes of MarketsTotal MarketIndustrialConsumerMarketsTypes of MarketsIncludes retailadvertisingPublic service announcementsConsumerMarketsTypes of MarketsConsumerMarketsIndustrialAlso called Business-to-businessTrade advertisingProfessional advertisingFarm advertisingSpecialized BTB advertising:Implementing Marketing StrategyMarketing Strategy:A mix of controllable strategic elements:ProductPricingDistributionCommunicationInsurance or tax prepcompanies use service advertisingMass merchandise:consumerpackage goods advertisingTech or science products usehigh-techadvertisingThe Product ElementFor virtually every productspecialists use a specific type of advertisingNOThe Price ElementDoes the companycompete on price?YESSale advertisingClearance advertisingLoss-leader advertisingNOThe Price ElementDoes the companycompete on price?ImageadvertisingRegular price-lineadvertisingThe Distribution ElementGlobal MarketersGlobal advertising sends consistent messages around the worldItalyBrazilTurkeySpainThe Distribution ElementOther Global MarketersInternational advertising tailors messages to foreign marketsItalyBrazilTurkeySpainThe Distribution ElementNationaladvertisingCompanies marketing in several regionsThe Distribution ElementLocalAdvertisingBusinesses and retailersoperating in a small trading areaCommunication ElementMarketingCommunications(marcom)All planned messagesThat companies createAnd disseminate to supportmarketingAdvertisingPersonal sellingSales promotionPublic relations activitiesCollateral materialsCommunication ElementIntegratedMarketingCommunicationsCollateralMaterialsSalesPromotionProductAdvertisingPersonalSellingPublicRelationsCommunication