Class Notes: Lecture 1
From Advertising to Marketing
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What is Advertising?
Advertising a paid communication used to persuade someone to buy a product or service of an identified
sponsor
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Job of advertising: get the right message to the right person at the right time and place
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30 second TV commercials: useful in evoking emotion because of sight and sound
Print advertising: effective if product needs considerable explanation, or if the advertiser wants people
to have a chance to look at the product in more detail
o Ie) life insurance (considerable explanation)
o Ie) clothing, diamond ring (looking at product in detail)
Outdoor advertising: used to plant/remind consumers about a product so its planted in your mind in
your mind so you remember it when you're in the store
o Obviously not good for conveying info, this is more to do with branding I think
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Every case of advertising creates a message meant to a target audience (specific, defined group of people)
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Advertising is part of a much larger business function: marketing
o We may not always be aware of marketing tactics, but we are always aware of advertising
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Who uses Advertising
All companies and organizations use advertising in order to be a part of the cultural conversation
o Advertising is more accessible and feasible to all now, because digital media has driven down its price
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Although all companies need advertising, not all are equal in the marketplace
o We are most aware of the following because of their heavy spending across media platforms:
• Consumer package companies: tide, axe, crest
• Telecommunications: AT&T, Version
• Car Manufacturers
• Cosmetics
• And many others like entertainment, alcohol, pharmaceuticals, etc.
o Beyond these tangible things, advertising can also promote services
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In a more indirect sense, advertising works to promote out social and cultural ideas like politics, religion,
education, and the arts.
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How do they come up with ideas for ads
Traditional advertising agencies have four departments that work together to make ads that are informative,
entertaining, and appealing to the target market.
i.Account Management group: oversees everything that has to do with the brand
• Must know business as well as client does, and are in daily contact with the advertiser (client)
• Must know how much product is sold, who the competitors are, the trends of sales, and major
issues that are or could affect the product sales or category overall
• This knowledge is necessary, because advertising exists to solve a business problem: this could be
simple like introducing a product, or difficult like changing peoples perception of a brand.
• Ex) Nike has historically dominated the account management segment, but lately faces
competition from Under Armour
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How under armour has become #2 in the account management category:
Expanded product line to suit women: the company has been known primarily for
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mens athletic apparel, but then expanded to produce footwear and apparel for
clothing
Used supermodel and principle dancer for American ballet in their ads
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Tagline "I will what I want," which aligns with the popular movement of
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women empowerment
Purchased fitness aps such as my fitness pal and endomondo, which gave them
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access to diet and workout data for millions of active, health conscious people.
This moved them from a little-known athletic company to a ubiquitous tech
company
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The decision for Nike to make about how to maintain their #1 spot in account planning :
should they get currently users to like their product more? Steal customers from under
armour? Or acquire a find a way to draw in a new market? These are all decisions that
are made by the next department, research
ii.Research or account planning group: knowing what is going on from a business perspective is market
research
• Marketing research: information that enables advertisers to understand what consumers think
about their product (or about their competitors product), and how they engage with it
iii.Creative group
iv.Media group
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