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					     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?