Chapter 1
Advertising Today?
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Overview
Identifies and explains economic,
social, ethical, and legal issues
advertisers must consider
1-2
Chapter Objectives
Define advertising
Distinguish it from other
forms of marketing
communications
Explain how advertising
differs from basic human
communication
Define marketing
Identify the elements
of marketing strategy
Discuss advertising’s
role in marketing
strategy
Explain the difference
between consumer and
business markets
1-3
Advertising Goals
o
o
o
o
Conviction
Action
Awareness
Comprehension
1-4
What is Advertising?
o
Structured, composed communication
o
o
o
o
o
o
Directed to groups
Paid for
Usually persuasive
About products
Identified sponsors
Transmitted through
advertising media
1-5
Communication Channels
Mass
Newspapers
& Magazines
Radio & TV
Billboards
1-6
Communication Channels
Mass
Addressable
Direct Mail
E-Mail
1-7
Communication Channels
Mass
Addressable
Interactive
Billboards
Direct Mail
Mobile
Newspapers
& Magazines
E-Mail
Online
Radio & TV
1-8
Communication Channels
Mass
Addressable
Interactive
Billboards
Direct Mail
Mobile
Newspapers
& Magazines
E-Mail
Online
Tattoos
Blimps
Radio & TV
Nontraditional
Shopping
Carts
1-9
Dimensions of Advertising
Communication
Marketing
Economic
Social/Ethical
1-10
Human Communication Process
Noise
Source
Encoding
Message
Channel
Decoding
Receiver
Feedback
1-11
Human Communication Process
Noise
Source
Encoding
Message
Decoding
Channel
Receiver
Feedback
1-12
Stern Communication Model
1-13
Communication: Source Dimensions
Sponsor
Author
Persona
• Legally responsible
• Has a message
• Copywriter, art director,
creative group
• Invisible to audience
• Within the text
• Lends voice or tone to ad
• Real or imaginary
spokesperson
1-14
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
1-15
Message: Autobiography
Autobiography:
The woman in
this ad directly
addresses the
viewer
1-16
Message: Narrative
Narrative:
Off-camera
narrator
describes the
excitement of
Detroit Red
Wing Hockey
1-17
Message: Drama
Drama:
Creates a scene
so the reader
receives the
message by
implication
This Lego ad
requires little
explanation
1-18
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
1-19
Feedback and Interactivity
Redeemed
Coupons
Phone
Inquiries
Visits to
Web site
o
o
Feedback &
Interactivity
Survey
Responses
Increased
Sales
Visits to
a store
Lets sender know if message received, understood
Sender can tell when communication breaks down
1-20
The Marketing Dimension
Business
Functional Divisions
Operations
o
o
Finance &
Admin
Marketing
Defines advertising’s role in business
Only marketing has revenue
generation as primary role
1-21
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
1-22
Advertising Classifications
Target Audience
Geographic Area
Medium
Purpose
1-23
Target Markets and Audiences
Consumer Markets
Retail & Public Service
Business/Industrial Markets
Trades, Professions, & Agriculture
1-24
Consumer Advertising
Tide
targets
business
people who
see the
benefit of
wiping out
small stains
1-25
B2B Advertising
Microsoft
targets
business
professionals
that use Mac
computers
1-26
Marketing: The 4 Ps
Product
Categories of
goods or services
Price
Strategies for
competitive pricing
Place
Distribution and
geography
Promotion
Communication
channels
1-27
Marketing Communications (Marcom)
Collateral
Materials
Personal
Selling
Types of
Marketing
Communication
Public
Relations
Product
Advertising
Sales
Promotion
1-28
Marketing: IMC
Less-efficient
advertising
New media
proliferation
More
competition
Higher costs
Cynical,
untrusting,
sophisticated
consumers
Gaps between
promise &
delivery
Movement to
establish
consistency
among agencies
& departments
Need for more
relationship
building
1-29
Marketing: IMC
Integrated Marketing
Collateral
Materials
Personal
Selling
Public
Relations
Sales
Promotion
Product
Advertising
1-30
