PART ONE Foundations INTRODUCTION TO ADVERTISING Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1 Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-2 Questions? What is advertising? What are the roles/functions of ad? What/who are the key players in ad? What are the types of ad? What is effective ad? Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-3 WHAT IS ADVERTISING? - Defining Modern Advertising Advertising: Paid persuasive communication that uses non-personal mass media & other forms of interactive communication to reach broad audiences to connect an identified sponsor with a target audience Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-4 WHAT IS ADVERTISING? - The Key Concepts of Advertising Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-5 WHAT IS ADVERTISING? - The Key Concepts of Advertising Objective: what you want to achieve Strategy: logic+planning direction Creative idea: idea that grabs attention & sticks in the memory Creative execution: the ad is produced (photography + writing + acting+ setting) Creative media: communication channel that the ad is delivered target audience Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-6 ROLES & FUNCTIONS OF ADVERTISING Advertising has evolved – many roles The Marketing Role Identify maker of goods Provide their commercial information Create product demand HOW? 1. Hard-sell approach - reasons to persuade 2. Soft-sell approach - build image for brand & touch ADVERTISING Principles and Effective IMC consumers’ emotions Practice Wells, Moriarty, Burnett & Lwin 1-7 ROLES & FUNCTIONS OF ADVERTISING Marketing - development of a brand Distinctive identity of product that distinguishes it from its competitors Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-8 ROLES & FUNCTIONS OF ADVERTISING The Communication Role Advertising Form of mass communication Information to connect buyers & sellers in market Informs & transforms product Create image beyond straightforward facts Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-9 ROLES & FUNCTIONS OF ADVERTISING Marketing communication Advertising Sales promotion Public relations Direct response Events & sponsorships Packaging & Personal selling Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-10 ROLES & FUNCTIONS OF ADVERTISING The Economic Role Advertising creates economic impact HOW? 1. Help consumers assess value – price, quality, location & reputation 2. Stimulate the competition Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-11 ROLES & FUNCTIONS OF ADVERTISING The Societal Role 1. Informs about new & improved products 2. Helps compare products & features 3. Informs about innovations & issues Mirrors fashion & design trends - aesthetic sense Educational role - new products & how to use them Shapes self-image - role models we identify with Express personalities & style - things we wear & use Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-12 ROLES & FUNCTIONS OF ADVERTISING Advertising - basic functions: 1. 2. 3. 4. 5. 6. 7. Builds awareness of products & brands Creates a brand image Provides product & brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases & brand experiences Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-13 THE KEY PLAYERS Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-14 THE KEY PLAYERS Advertising industry - complex - different organisations 1. Advertiser Person/organisation - “needs to get out a message” Makes final decisions - target audience, media, budget size & campaign period Hires ad agency & pays the bills Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-15 THE KEY PLAYERS Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-16 Brand Ad GUCCI LOUIS VUITTON PRADA FENDI CASIO ROLEX TAG HEUER CHARRIOL PANASONIC TOSHIBA LG MITSUBISHI MERCEDES BENZ HONDA NISSAN DIESEL NIKE ADDIDAS LEVI’S LEE BLACKBERRY MOTOROLA IPHONE S& P SWENSEN MK etc. Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-17 THE KEY PLAYERS 2. Advertising agency or department Plan & implement their advertising efforts Believed - more efficient - ad or campaign Strategic & creative expertise, media knowledge, staff talent, negotiate good deals Experts in specialisation areas Passionate about advertising Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-18 Top Agencies Wells, Moriarty, Burnett & Lwin Xth Edition ADVERTISING Principles and Effective IMC Practice 1-19 THE KEY PLAYERS Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-20 THE KEY PLAYERS 3. Media player Channels of communication - carry message from advertiser to audience Internet - from audience back to advertiser Mass media - reach mass audience Media - channels of communication or media vehicles - companies Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-21 THE KEY PLAYERS 4. Suppliers, or vendors Assist advertisers, ad agencies & media to create & place ads Array of suppliers mirrors - variety of tasks put together ad Why hire a vendor? 1. 2. 3. 4. Advertisers - no expertise in area May be overloaded Want fresh perspective Cheaper than services of someone in-house Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-22 THE KEY PLAYERS 5. The Target Audience Customer or prospective ones Character of target audience - direct bearing on overall advertising strategy Purchasers - not always product users Critical - recognise & know well - target audiences Interactive technology - ads customised to individuals Customisation is growing - important to know target audience & create ads that speak to individual needs Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-23 TYPES OF ADVERTISING 1. 9 major types of advertising: Brand Advertising - most visible Long-term brand identity & image Use humor – eg Visa Gold (Exhibit 1.7) Mass target (national & international) Retail or Local Advertising 2. Retail: i. ii. iii. Message – products in area Objectives - stimulate store traffic & distinctive image for retailer Local Retailer/manufacturer/distributor - offers products - restricted geographic area Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-24 Brand Ad GUCCI LOUIS VUITTON PRADA FENDI CASIO ROLEX TAG HEUER CHARRIOL PANASONIC TOSHIBA LG MITSUBISHI MERCEDES BENZ HONDA NISSAN DIESEL NIKE ADDIDAS LEVI’S LEE BLACKBERRY MOTOROLA IPHONE S& P SWENSEN MK etc. Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-25 TYPES OF ADVERTISING Political Advertising 3. Politicians - vote for them or their ideas Direct-Response Advertising 4. Use any medium Message - stimulate sale directly Telephone/mail response - product delivered direct Evolution of the Internet - advertising medium Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-26 TYPES OF ADVERTISING Business-to-Business Advertising 5. Directed at retailers, wholesalers & distributors Most business advertising in publications or professional journals Institutional Advertising – corporate advertising 6. Establish corporate identity or win public over to its point of view Eg: Nike - reinforce brand image - ad campaign for the Paralympics (Exhibit 1.8) Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-27 TYPES OF ADVERTISING 7. Nonprofit Advertising Not-for-profit organizations - charities - advertise for customers, members, volunteers, donations 8. Public Service Advertising Public service announcements PSA Message - good cause - eg stop drunk driving Ad creation, space & time - free of charge 9. Interactive Advertising Individual consumers - access to computer & Internet Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-28 WHAT MAKES AN AD EFFECTIVE Ad that creates the impact (goal oriented) 2 levels 1) relevant message that catches attention, interests, remains in memory 2) ad achieves marketing objective Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-29 AD wins the award? Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-30 End of the Lesson Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-31