CMayeJ368PPT_2Advertising'sRoleinWorld

CMayeJ368PPT_2Advertising'sRoleinWorld - 
...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 9/12/10
 Principles
of
Advertising
 ©
2010
Carmen
Maye
 Advertising ’s
Role
in
Business
 ©
2010
Carmen
Maye
 Key
Terms
 •  •  •  •  •  •  Client/Sponsor
 •  Advertising
 Advertising
Campaign
•  •  Marketing
 •  Marketing
Mix
 Integrated
Marketing
 •  •  Communications
 Integrated
Brand
 Promotion
 Brand
 Brand
Equity
 Brand
Loyalty
 Brand
Extension
 Demand
Stimulation
 1
 9/12/10
 Advertising ’s
Role
 •  Recall
Definition(s)
of
Advertising
 –  A
paid,
mass‐mediated,
attempt
to
persuade.
 (O’Guinn,
et.
al)
 –  Any
paid
form
of
nonpersonal
communication
 about
an
organization,
product,
service,
or
idea
by
 an
identified
sponsor.
(Belch
and
Belch,
quoting
 Ralph
Alexander)
 Advertising ’s
Role
 •  Not
Advertising

 Advertising ’s
Role
 •  Not
Advertising
(This
is
a
PSA)
 2
 9/12/10
 A
Communications
Process
 •  Production
 
 •  Accommodation
and
Negotiation
 
 •  Reception
 
 Reception
 Advertising ’s
Role
 •  •  •  •  •  Advertising
plays
key
role
in
society,
economy.
 Crucial
to
the
marketing
of
goods,
services.
 $250–$350
billion
spent
in
U.S.
annually.
 Almost
$300
billion
spent
on
promotions.
 Billions
of
dollars
more
spent
outside
U.S.
on
 ads,
promotions.
 3
 9/12/10
 Advertising ’s
Role
 •  Marketing
 –  the
activity,
set
of
institutions,
and
processes
for
 creating,
communicating,
delivering,
and
 exchanging
offerings
that
have
value
for
 customers,
clients,
partners,
and
society
at
large.
 
 
 

 —American
Marketing
Association
(AMA)
 Advertising ’s
Role
 •  Marketing ’s
Changing
Focus*
 –  Old
Focus:
exchange‐based
transactions
 –  New
Focus:
sustained
customer
relationships
 –  New
Term:
Relationship
Marketing
 –  New
Term:
Customer
Relationship
Management
 (CRM)
 *
Belch
and
Belch,
Advertising
and
Promotion
 Advertising ’s
Role
 •  Part
of
the
Marketing
Mix
(Four
Ps)
 1.  2.  3.  4.  Product
 Price
 Place
 Promotion
 *
Belch
and
Belch,
Advertising
and
Promotion
 4
 9/12/10
 Advertising ’s
Role
 •  Integrated
Marketing
Communications
 –  Marketing
communications
planning
that
recognizes
 the
added
value
of
a
comprehensive
plan
that
 evaluates
the
strategic
roles
of
a
variety
of
 communication
disciplines—for
example,
general
 advertising,
direct
response,
sales
promotion,
and
 public
relations—and
combines
these
disciplines
to
 provide
clarity,
consistency,
and
maximum
 communications
impact.
(Emphasis
added.)
 —
American
Association
of
Advertising
 Agencies
 Advertising ’s
Role
 •  Integrated
Brand
Promotion
 –  Similar
concept
with
greater
emphasis
on
building
 brand
identity,
equity,
loyalty.
 Advertising ’s
Role
 •  Create
Brand
Identity
 –  Name,
term,
sign
symbol
or
any
other
feature
that
 identifies
one
seller ’s
goods
or
service
as
distinct
 from
those
of
other
sellers.
 –  More
than
a
trademark.
 5
 9/12/10
 Advertising ’s
Role
 •  Create
Brand
Loyalty
 –  Preference
by
a
consumer
for
a
particular
brand
 that
results
in
continual
purchase
of
it.
 •  Create
Brand
Equity
 –  The
intangible
asset
of
added
value
or
goodwill
 that
results
from
the
favorable
image,
impressions
 of
differentiation,and/or
the
strength
of
 consumer
attachment
of
a
company
name,
brand
 name,
or
trademark.
 Advertising ’s
Role
 •  Introduce
Brand
Extensions
 –  Adaptation
of
existing
brand
to
a
new
product
 area.
 Brand
Extension
 6
 9/12/10
 IMC
and
IBP
 •  Why
would
marketers
adopt
an
IMC
or
IBP
 approach?
 Advertising ’s
Role
 •  Market
Segmentation
 –  The
process
of
breaking
down
a
large,
widely
 varied
(heterogeneous)
market
into
submarkets,
 or
segments,
that
are
more
familiar
 (homogeneous)
than
dissimilar
in
terms
of
what
 the
consumer
is
looking
for.
 Advertising ’s
Role
 •  Market
Differentiation
 –  Creating
a
perceived
difference,
in
the
mind
of
the
 consumer,
between
an
organization’s
brand
and
 the
competition’s.
 7
 9/12/10
 Advertising ’s
Role
 •  Market
Positioning
 –  Designing
a
brand
so
that
it
can
occupy
a
distinct
 and
valued
place
in
the
target
consumer ’s
mind
 relative
to
other
brands
and
communicating
this
 distinctiveness
through
advertising
 Positioning
 •  External
Position
 –  Relative
to
all
the
competitive
brands
on
the
 market.
 •  Internal
Position
 –  Relative
to
the
other
similar
brands
a
firm
 markets.
 Positioning
 8
 9/12/10
 Advertising ’s
Role
 •  Generating
Revenue
&
Profit
 –  Contributes
to
the
process
by
attracting
target
 audiences
and
communicating
value.
 –  Can
help
create
economies
of
scale.
 –  Can
help
create
inelasticity
of
demand.
 Demand
Stimulation
 •  Primary
 –  Attempt
to
create
demand
for
entire
product
 category.
 •  Selective
 –  Attempt
to
create
demand
for
a
particular
 company’s
brand.
 Demand
Stimulation
 9
 9/12/10
 Demand
 Stimulation
 Types
of
Advertising
 •  Direct
Response
 –  Asks
consumers
to
act
immediately.
 Types
of
Advertising
 •  Delayed
Response
 –  Attempts
to
develop
awareness
and
preference
 over
time.
 10
 9/12/10
 Types
of
Advertising
 •  Corporate
Advertising
(versus
Brand)
 –  Attempt
to
create
favorable
attitude
toward
a
 company
as
a
whole.
 Economic
Effects
 •  Gross
Domestic
Product
(GDP)
 –  The
measure
of
the
total
value
of
goods
and
 services
produced
within
an
economic
system.
 –  Advertising
contributes
to
overall
demand
for
 goods
and
services.
 Economic
Effects
 •  Business
Cycles
 –  Advertising
can
have
stabilizing
effect
in
times
of
 recession.
 11
 9/12/10
 Economic
Effects
 •  Competition
 –  Advertising

may
stimulate
competition,
motivate
 firms
to
produce
better
products,
etc.
 –  BUT,
advertising
costs
can
also
be
a
barrier
to
 entry.
 Economic
Effects
 •  Prices
 –  Advertising
costs
do
not
necessarily
contribute
to
 higher
prices
for
products.
 –  Advertising
makes
it
convenient
for
consumers
to
 shop!
(Time
is
money.)
 Economic
Effects
 •  Value
 –  Perception
by
the
consumer
that
the
brand
 provides
satisfaction
beyond
the
cost
of
obtaining
 the
brand.
 –  Creates
symbolic
value
and
social
meaning.
 12
 9/12/10
 Value
 Have
you
bought
a
 bottle
of
water
lately?
 13
 ...
View Full Document

  • Fall '10
  • Konkle
  • Marketing, Communications
 Integrated
Brand
 Promotion
 Brand
 Brand
Equity
 Brand
Loyalty
 Brand
Extension
 Demand
Stimulation, Advertising ’s
Role
Ask a homework question - tutors are online