Advertising A welcome to Advertising for 2nd year students. Instructor: Mr. Bill Land Advertising Today’s Lesson Course Outline Course Description and introductory questions Advertisements Advertising in Context Brand and Marketing Mix Role of advertising Integrated communications Summary and Discussion Course Outline Module Code: MAR34-2 Module Name:Advertising: Theory and Practice Level and Section:2 Email:Adamsmith008@yahoo.ca Instructor’s Name: Bill Land Office Location: CAU Appointment Procedures: Please email 1 day in advance. Office hours will be announced later. Course Outline Description and Rationale Although advertising is an accepted part of every day life, there is still great debate as to how advertising works and the role it can and should perform within the marketing communication mix. This module enables the applicants to review this debate and apply the theories to the advertising in our media today. They will learn how to put together an advertising plan and will examine the ingredients of an effective advertisement and ways in which this effectiveness can be measured. Aims and Objectives To gain an understanding of the role of advertising within the Marketing Communications Mix To examine communication and advertising theories and their relationship with consumer behavior To develop knowledge of advertising strategy and planning To examine the importance and uses of creativity in advertising To gain an understanding of various production techniques To appreciate the complexities of evaluation Learning Outcomes The applicants will be able to: Identify the role of advertising within the Marketing Communications Mix Analyze advertisements in terms of creativity and execution Create advertising objectives and put together a plan to meet these objectives Examine marketing data, using appropriate techniques, and use the information to establish and solve marketing communication problems Understand the techniques and procedures involved with advertisement production Put together testing procedures for the evaluation of advertisements Grading Format in Details Class attendance 10% Presentation and assignment 30% Mid-term exam 20% Final exam 40% Outline Teaching Schedule Week1: chapter 1/2 Week 2:chapter 3/4 Week 3:chapter 4/5 Week 4:chapter 6/7 Week 5: chapter 7/8 Week 6: Mid-term Exam, chapter 8 Week 7: chapter 9/10 Week 8:chapter 11/12/13/14 Week 9: chapter 15/17* Week 10: chapter 18/19/Review Week 11: labour day holiday Week12: Final exam *Chapter 16 will be covered time permitting Required and Optional Textbooks other Course Materials or Resources Related Essential Reading: International Journal of White, R, Advertising, Fourth Organisational Behaviour Edition, London International Small Business Recommended Reading: Journal To be given at a later date Journal of Asia Pacific Business Journals: Journal of Business 国际广告 国际广告杂志社 Journal of Business Research (international advertising – Journal of International Chinese journal) Business Studies Asia Pacific Business Review Journal of International Columbia Journal of World Management Business Journal of World Business European Business Journal Journal of World Trade Harvard Business Review Journal of East West Business International Business Review Thunderbird International Business Review Course Description Although advertising is an accepted part of every day life, there is still great debate as to how advertising works and the role it can and should perform within the marketing communication mix. This module enables the applicants to review this debate and apply the theories to the advertising in our media today. They will learn how to put together an advertising plan and will examine the ingredients of an effective advertisement and ways in which this effectiveness can be measured Advertisements Advertisements are not just advertising. Def’n: a) To describe the process of using advertisements to sell things B) to refer to the industry that produces the ads. Advertisements ‘above – the-line’ – advertising in the media ‘Below – the – line’ – point of sale messages advertisements What is an advertisement? Advertising Anything that calls attention to a product or service Examples: - TV commercial - Newspaper/magazine ad - Poster - Clothing - Cigarette lighter, …. Advertising in Context Who engages in advertising? Businesses, governments, and individuals. Advertising in context Media advertising is becoming less, rather than more, important in the overall scheme of marketing communications. Chapter 13 will show us that this is not necessarily for good reasons but it is a fact. Advertising in context Fast-moving consumer goods (fmcg) - Key factor - - weekly feedback - Short term results from sales promotion - Budgets shift to below-the-line - Ie: various types of price cutting Advertising in context This can actually lead to an increase in the price elasticity of brands - therefore self-defeating In long run – consistent media advertising can build the strength of a brand. Brand and Marketing mix What is a Brand? It is a product whose producer has made every effert to make it uniquely desirable to potential buyers, consistently using every element in its presentation to do so. Brand and Marketing mix Why do companies do this? If done well, it makes the brand difficult to compete against. It develops an aura making it appear better than its competition. Brand and Marketing mix A brand is created by all the elements of the marketing mix working together. Creates a positive prejudice in people’s minds. Brand and Marketing mix Def’n – Marketing Mix: a range of tools and techniques that allows businesses to provide customers with what they want. It acts as a conduit for consumer demand to reach businesses. Thusly, turning this demand into profitable sales. Brand and Marketing mix These tools include: - Product formulation and variation - Packaging - Sales literature - The sales force - Pricing - Sales promotion - Direct mail - Advertising - Market research - Branding Brand and Marketing mix Components of the marketing mix 1) Net sales value 2) Costs and contribution 3) The marketing mix Net sales value Gross margin Cost of goods - Materials - Packaging - Manufacturing Costs and contribution Operating contribution Selling costs (the marketing mix) - Sales - Distribution - Communications - Research The marketing mix Sales and distribution costs The communications mix - Advertising - PR - Direct marketing - Promotions - Exhibitions - Etc. Role of Advertising Simply put: Advertising exists to help to sell things. It is mainly about brands It is mainly designed to create and strengthen consumer impressions of the brand Exception is public service advertising ADVERTISING Role of advertising Marketing The process a business uses to Communication satisfy consumer needs by Economic providing goods and services Societal • Product category • Target market • Marketing mix • Brand Role of advertising Marketing Can reach a mass audience Communication Introduces products Economic Explains Societal important changes Reminds and reinforces Persuades Role of advertising Marketing Moves from being Communication informational to creating demand Economic Advertising is an objective means Societal for providing price-value information, thereby creating a more rational economy Role of advertising Marketing Informs consumers about innovations Communication and issues Mirrors fashion and Economic design trends Teaches consumers Societal about new products Helps shape consumer self- image Perpetuates self- expression Integrated Communications Advertising is part of total continuum of communications about the brand. It may have a leading role and carry the greatest budget: but it can be merely cast in a supporting role for a campaign of activity centered around an event. The importance of advertising Involves a huge amount of money Work is done by relatively few people Major expense is for media time/space Companies spend only a small percentage of sales on advertising Types of advertising Product advertising—Tries to sell a specific product to final users or channel members • Pioneering advertising builds primary demand • Competitive advertising builds selective demand Corporate/institutional advertising—Tries to promote an organisation's image, reputation or ideas—rather than a specific product Major advertising media Magazine Television Newspaper Yellow Pages Radio Outdoors Cinema Internet The Functions of Advertising Builds awareness of products and brands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases and brand experiences The Key Players Advertiser Uses advertising to send out a message (client) about its products Initiates the Agency advertising effort by identifying a Media marketing problem Approves audience, Supplier plan and budget Hires the advertising Audience agency The Key Players Advertiser Has strategic and creative expertise, (client) media knowledge, workforce talent, Agency and negotiating abilities Media • Advertising department Supplier • In-house agency Audience The Key Players Advertiser The channels of communication that (client) carry the message to the audience Agency Are also companies or huge conglomerates Media Mass media advertising can be Supplier cost effective because the costs are spread Audience over the large number of people the ad reaches The Key Players Advertiser Assist advertisers, agencies, and the (client) media in creating and placing the ads Agency Vendor services are often cheaper Media than those in- house Supplier Audience The Key Players Advertiser The desired audience for the advertising (client) message Data-gathering Agency technology improves accuracy of Media information about customers Supplier Advertisers must recognize the various Audience target audiences they are talking to and know as much about them as possible Types of Advertising Brand advertising Retail or Local advertising Direct-Response advertising Business-to-Business advertising Institutional advertising Nonprofit advertising Public Service advertising What Makes an Ad Effective? 1. If it creates an impression for a product or brand 2. If it influences people to respond in some way 3. If it separates the product or brand from the competition in the mind of the consumer Conclusion Advertising agencies: how they work, how they are organized, and how to choose and use one. Advertising strategy: how to think about what the ads are trying to do, and understanding the people they are aimed at. How good advertisements can be created. conclusion Media: what is available, and how it is bought, sold and planned. Putting a campaign plan together. Judging advertisements and evaluating campaigns. The law, regulation and self-regulation Advertising internationally and globally If we have time – The relationship between advertising and the economy and society Summary and Conclusion Advertising is a core part of many companies’ marketing mix: the activities that link a brand to its market and its consumers or customers Traditionally, media advertising has taken the lion’s share of marketing communications budgets, at least for most consumer goods companies, since it is a cost-effective means of reaching large numbers of people. Summary and Conclusion As media and markets have fragmented, however, other forms of communication are gaining importance, and advertising is increasingly seen as just part of an integrated communications programme As such, advertising works together, and integrates with, a variety of other forms of communication. Questions for discussion Is advertising becoming more or less important to companies? Why should this be so? How might the marketing mix differ for a brand of frozen food, a charity and a bank?
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