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
Essential Reading:
or Resources
International
 White, R, Advertising, Fourth
Edition, London
 Recommended Reading:
 To be given at a later date
 Journals:
 国际广告 国际广告杂志社
 (international advertising –
Chinese journal)
 Asia Pacific Business Review
 Columbia Journal of World
Business
 European Business Journal
 Harvard Business Review
 International Business Review
Related
 Journal of
Organisational Behaviour
 International Small Business
Journal
 Journal of Asia Pacific
Business
 Journal of Business
Journal of Business Research
 Journal of International
Business Studies
 Journal of International
Management
 Journal of World Business
 Journal of World Trade
 Journal of East West Business
 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
Can reach a mass
 Marketing 

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
 Audience
 Hires the advertising
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
 Media are often cheaper
than those in-
 Supplier house

 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?