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What is Advertising?
form of non-personal communication transmitted through media usually paid for usually persuasive about products (goods, services, ideas) usually identified sponsor
Al Lasker
"salesmenship in print driven by a reason why." one of the most influential men adv-giving lots of facts and reasons
"The truth well told." changes-becoming more emotional 1950's
Shelly Lazarus
CEO of Ogilvy and Mather "We're in the brand transformation business." to change what we think about the product
Marketing Communications
Advertising-creating awareness and interest Public Relations-creating exposure for your client Sales Promotion-incentives to take action NOW ex. coupons Personal Selling-most effective; face-to-face traditional sales Direct Response-respond directly to the marketer Sponsorship-linkin…
Evolution of Advertising
PRINT (1700s) --> Radio (1920s) --> TV (1940s) --> online to mobile (1980s to present)
Eras of Advertising
Pre-marketing Mass Communication Research Interactive
Pre-Marketing Era
primarily symbols and signs; town criers, tablets (clay) First English AD 1472; First AD in US newspaper 1704 early ads promoted migration to US (not very exciting) Ben Franklin in the "Advertising Hall of Fame" for buying the Pennsylvania Gazette and made FULL pages of Ads (1750s) ea…
Mass Communication Era
everything comes together: mass transportation, production, media, and markets railroads; boats bringing over more people and the market evolved>>concentrated market package and seal goods allowing you to brand your products and ship them safely Penny Press-Rotary Press (1830s) MASS pr…
Mass Comm. Era Cont...
magazines take off-serving national and regional markets appeal 1841= 1st ad person-Volney Palmer; newspaper broker=buy a page for cheap and sell parts to individual advertisers to make a profit 1869= 1st ad agency-NW Ayer & Sons; introduced commission system (15%) and full-service agen…
MCE: Big Agencies ruled the day
two dominated US pre-ww2 Lord and Thomas J. Walter Thompson
Lord and Thomas
Albert Lasker invented the soap opera targeted Lucky Strike to women needed a reason "why" Emphasized "hard selling" John E. Kennedy "salesmanship in print driven by a reason why." -just like a sales presentation Claude Hopkins tookover 1920s; copywriter; wrote book 'scientific adve…
J. Walter Thompson
Stanley Resor (strategist) and wife Helen Landsdowne (copywriter) bought in 1916 took small agency and 'blew it up' to the first international/global agency-London 1927 top agency in the 1920s suggestive ads emphasized emotional appeals (visuals) emphasized through psychology and sug…
Research Era
1920-2000 first talk of "positioning" Industrial optimization Golden Age of Radio & TV Database marketing takes off Mergers on Mad Ave
1920s-1950s "golden age" for radio true national medium-connected rural areas to the rest of the nation Beginning of NBC (formed by GE, RCA, and Westinghouse-all produced equipment), CBS, and ABC First ad was a 10 minute talk about RE firm for $50 Sponsorships at first that quickly mo…
Dr. John Watson
1878-1958 PhD, Psychologist Father of “Behaviorism” Shenanigans at Johns Hopkins in 1920 VP at JWT by 1924 Brought research expertise to advertising
The "Creative Revolution"
1950s and 60s Bill Bernbach Eschewed quantitative research, the “hard sell,” and “speaking to the mind.” Emphasis on “intuition” and aesthetic appeal Paired writers and artists Be creative above all else.
DDB's VW campaign
Doyle Dane Bernbach Ad Age’s “Most Influential” campaign of the century Began in 1960 Took VW from “zero” to top import
TV's Golden Age
quickly supplanted other media: 1946 7,000 TV homes in US; 1952 17,000,000; today over 110 million dominated by "big three"-NBC, ABC, CBS The 30-second spot by 1958, dominant form of home entertainment Last 50 years: 2400 hours/year watched; 7 hours/day; #2 activity; #1 transmitter of…
Interactive Era
year 2000-present now a dialog vs. monolog interactive nature of new media diminishment of 30-second spot Hot new areas: social networks and mobile
Today's issues
Globalization “Permission” marketing ROI = Return on Investment-->John Wanamaker (a famous retailer from the old days) said, “Half the money I spend on advertising is wasted...The problem is, I don't know which half.” Internet advertising and key-word searches offer precise measurement…
How does Advertising Work?
MR about product connects to Target Audience it's what we use to let them know what we have to offer (signage/packaging/price, PR, Sales digital/social, Promos/sweepstakes/events)
Hierarchy of Effects
lots of variations--AIDA model model of how persuasion can take place explains how people come to buy things (and how advertising works) get ATTENTION generate INTEREST motivate/stir up emotions DESIRE feel they need to take ACTION also can be awareness, comprehension, conviction, …
Funnel Metaphor
Awareness > opinion > Consideration > Preference > Purchase Awareness > Attitude > Favorability > intent > Preference both start with large number of potential consumers and each level weeds out some until you get to the bottom: the ones left want to (will) buy your product
Advertising Strengths
Create Awareness breaking through the clutter getting/maintaining brand in memory bank 2. Building Brands giving/shaping a products identity communicating a products utility establishing emotional connection
Breaking through clutter to make people aware of your product/service 1. No previous awareness ad spiral: pioneering or competitive stages 2. Previous Awareness goal: to maintain "top-of-mind" awareness Ad spiral: retentive stage; competitive stages
what grabs our attention?
Images bikinis, beagles, and babies people like looking at people animals Emotional info. fear evoking, sensual, music Calling People Out speak to peoples needs, interests, biases, desires, values Theory of Selective Perception News; New information
Does Awareness matter?
market share is linked to awareness levels "just getting noticed will help you reach people interested in your product" and "keep people thinking about your product" "Advertising creates awareness that increases selling. You have to make money from it."
Building Brands
branding- giving/shaping a product's identity Shelly Lazarus- "we're in the brand-transformation business and that's where we're at our best..." Positioning-perceptions in the minds of consumers about the product relative to the competition; advertising can influence what the product me…
Brand Building with Info. Communicating "utility"
teaching/educating/persuading how a brand can fulfill needs and wants much advertising is about proving or demonstrating how brands fulfill needs Utility: the ability of a product to fulfill a need or solve a problem (can help us do something practical or solve problems eg. faster, save…
Brand Building with Feelings connecting brands with emotion
"Emotion" is the buzzword of the advertising industry color everything we do/think advertisers try to associate their products with compelling emotions drives our behavior the most discrete emotions: by imagery, music, etc.
Fear and Advertising
"Fear factor gets Brink's buzz--and a sales boost" ex. home security systems protect against two out of every three burglaries; crimes increase during recessions -cut costs (spent less for ads)
Consumer "brand" scan
*brand awareness *info. about the brand *emotions *brand's personality *how it compares to competition
Celebrity "seeding"
placement is extremely common awareness/brand meaning/endorsement seeding-ex. you see a celeb. wearing ugg boots..they become the new "must have" item
Business of advertising
Suppliers Media Advertisers Ad Agency
those that contribute specialized services to get advertising produced includes printers, film/video production houses, marketing research firms, web designers, photographers, etc. (behind the scenes)
1/2 of advertising industry advertisers need media channels print (newspapers, magazines) electronic (tv, cable, radio) Digital interactive (internet, mobile) out-of-home (outdoor, transit) direct mail promotional products (to raise awareness)
local, regional, national, multinational, global ex. state or North America or China, etc. advertising done inhouse (mainly fashion), outsourced (hire agency), or a hybrid invest $500 billion annually
Top Advertisers
Global: Procter and Gamble beauty and grooming household care products sustainability > every product brand has to be associated with a cause US: AT&T Top category: Retail (then auto) Top holding company: WPP (largest) Top independent agency: Richards group
The Advertising Agency
independent organization of creative types and business folks who specialize in developing and preparing marketing and advertising plans, ads, and promotional tools hundreds in US (most large agencies are owned by 6 large holding companies) range from local to international Range from …
Advantages of Agencies
offer outside, objective perspective have close connections with suppliers media expertise saves clients time and money Advertisers only use agencies out of self interest. Agencies pay for themselves.
The "Pitch"
one of the most important aspects of agency life pitch= a "new business" presentation clients put their accounts into "review" (invite agencies to bid for their account; agencies invest much time and money into the pitch)
Holding Companies
can hold more than one brand within the same category if you use a holding company, you can use multiple agencies if you hire an independent agency then you can only use them
Minorities on Mad Ave.
multiculturalism>problem on madison avenue (got sued for under representing minorities) Biz believes too little multiculturalism in-house (set targets and strategically recruit eg. BBDO) WHY IMPORTANT? top 3 minorities=20% of total US buying power hispanic buying power growth 300% 35…
Typical Jobs within Agency
Account Executives Account Planners and Researchers Creatives Media planners and buyers
Account Executives
aka the "AE" or "suits" link agency and client (interact with client; need to look professional) Draw up objectives and goals (working on goals and strategies) Pitch new business
Account Planners
relatively new function consumer/customer focused (interests, values, goals, tastes, likes, dislikes, etc.) voice of the agency (focus groups, surveys, in depth interviews) conduct/analyze research to find out what the consumer wants (makes sure it shows up in the advertising)
people who take the goals (AE) and research (planners) and turn it into creative messages typical jobs: copywriters, art directors, and creative directors they get the most attention and win the awards
Media Planners and Buyers
decide how to best reach the target market bulk (80%) of ad campaign money goes to media purchases connect the agency to the media outlets
Pioneering stage
the advertising stage of a product in which the need for such a product is not recognized and must be established or in which the need has been established but the success of a commodity in filling that need has to be established purpose: to educate consumers about the new product or ser…
Competitive Stage
stage a product reaches when its general usefulness is recognized but its superiority over similar brands has to be established in order to gain preference
Retentive stage
reached when its general usefulness is widely known, its individual qualities are thoroughly appreciated, and it is satisfied to retain its patronage merely on the strength of its past reputation most profitable for the product

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